PLAY BG and DE

Establish October Calls Now

By Bryan Bottarelli
Friday, September 21, 2007 10:21 AM EDT
Fri, 21 Sep 2007 14:21:00 GMT

Dear Bottarelli Research Member,

While I typically don’t enter too many new trades on a Friday, I would like to introduce two new positions on strong, established companies that look poised to continue their fantastic upside trends.

The first company is Bunge (BG – NYSE). Based out of White Plains, New York, the company operates three segments that are extremely hot right now: Agribusiness, Fertilizer, and Food Products. If you look across the board, companies in this business segment like Monsanto (MON — NYSE) & Potash of Saskatchewan (POT – NYSE) are all breaking out to all time highs, and it’s only a matter of time before Bunge experiences a strong break out as well. Take a look:

BG

As you can see, the stock is engaged in a very strong upside trend — and its’ now flirting with a breakout above the $100.00 level. Going into next week, I feel we’ll witness a similar upside move, so let’s go ahead and get positioned to ride this upside now!

PLAY: Buy the BG October 100 Calls (BG JT) at or under $4.00, good for the day. Current bid/ask spread is $3.70 to $3.90. Place a protective stop limit at $2.00.

Also looking strong is John Deere (DE – NYSE). The Moline, Illinois maker of heavy agricultural and construction equipment made a push up towards the $150.00 level and has since pulled back a bit, offering is a nice entry point for continued upside momentum. If you listen to CEO Robert Lane, you’ll hear nothing but bullish forecasts going forward — with strong orders and demand well into the foreseeable future. Similar to BG above, let’s use this little dip on DE to establish an upside position going into October.

DE

PLAY: Buy the DE October 145 Calls (DE JI) at or under $5.40, good for the day. Current bid/ask spread is $5.10 to $5.30. Place a protective stop limit at $2.40.

Another stock that quietly hit a new 52-week high is 3M (MMM – NYSE). The Minnesota-based conglomerate makes everything from touch screen displays to Post-It notes, and this new high offers you a very strong indication that the overall economy is prosperous. After all, 3M is involved in selling virtually everything consumer-related, and if sales are strong, you know that any “recession” fears are overblown. That’s just something to think about the next time Alan Greenspan gives an interview!

MMM

Should anything else come up, I’ll be out with further updates. But until then…

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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