Full Position Update

Plus, Gearing Up for Next Week

By Bryan Bottarelli
Friday, March 24, 2006 11:17 AM EST
Fri, 24 Mar 2006 16:17:00 GMT

Dear Bottarelli Research Member,

I’ll keep today’s update short, simply because our three open positions continue to slowly move in the properly-forecasted direction.

On the call side, our bullish diabetes play on Becton Dickinson (BDX – NYSE) keeps trying hard to push towards a new 52-week high. Acting as the world’s largest makers of diabetes products, I’m hoping the company will gain worldwide exposure by their decision to collaborate with three-time Olympian and 10-time Olympic Medalist Gary Hall, Jr. through the 2008 Beijing Games.

The relationship makes sense because Gary Hall, Jr. is a type I diabetic who personally uses BDX’s products. According to Hall, “As someone living with type I diabetes…BD makes the diabetes care products that help me to control my diabetes. Managing my care helps me live the life I want to live and compete at a gold medal level.”

BDX

Another interesting BDX note: Over the weekend, I spent time with my buddy who’s a drug salesman for Eli Lilly, and he told me that he wants to leave the drug business and transition over into diabetes medical supply sales because the diabetes market segment is growing at a much faster rate than his particular drug sales segment.

It makes sense — since diabetes represents such a growing and urgent medical condition in America. I took this as a telltale indication that BDX is well positioned for further upside growth and shareholder appreciation. Hold your BDX June 60 Calls (NDX FL).

Our other upside play on Scotts Miracle-Gro (SMG – NYSE) is also inching higher. After once again testing — and finding support — at the $46.00 level yesterday, I still think the stock is positioned to rally up to the $48.00 level, as represented by the 50-day moving average.

SMG

No matter if the stock calls this level support or resistance, this move will give you a solid gain on your SMG June 45 Calls (SMG FI).Hold the calls, and maintain your “busy man” sell at $4.50.

And finally, Frontline (FRO – NYSE) is literally toying with setting a new low. Now that the stock has dipped under the $35 level, I’m looking for a continued drop that could move the stock into the $33.50 range. This would be a welcome sign for your FRO May 35 Puts (FRO QG) which continue to trade right at your entry price. As I mentioned in a past alert, it may be a good idea to set a “busy man” sell price of $2.40 to capitalize on any quick down-moves.

FRO

QUICK ADMINISTRATIVE NOTE: I’ll be traveling on Monday, so there will be no alerts that day. But when I return to the command center on Tuesday, I have a full arsenal of potential trades lined up and ready to go. That means come early next week, you can gear up for another exciting round of trading!

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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