Good Morning, Take Profits!

Southern Copper Soars on TakeOver

By Bryan Bottarelli
Monday, November 20, 2006 9:57 AM EST
Mon, 20 Nov 2006 14:57:00 GMT

Dear Bottarelli Research Member,

This morning, two major metals plays are teaming up. Freeport-McMoRan Copper & Gold (FCX – NYSE) has agreed to acquire Phelps Dodge (PD – NYSE) in a $25.9 billion in cash and stock. The deal is pushing all the major metals plays higher, including our PCU January 52.5 Calls (PCU AX). After entering these calls for $2.73, they’ve traded as high as $4.70 this morning, good for a 72% gainer. Go ahead and take your profits off the table now!

PLAY: Sell your PCU January 52.5 Calls (PCU AX) at or above $3.60. good for the day.

I’m also watching developments in silicone breast maker Allergan (AGN – NYSE), which received FDA approval over the weekend and Charles Schwab (SCHW – NASDAQ), which should experience upside as more retail investors jump back into the markets. I’m also keeping an eye on NASDAQ Stock Market (NDAQ – NASDAQ), which should get a lift with the major upside we’ve seen on other exchanges. I’ll let you know the moment something happens. Until then, congrats on your early morning PCU gains!

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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