An Uncovered Gem

Keep Riding the Best of the Nasdaq

By Bryan Bottarelli
Wednesday, September 26, 2007 3:09 PM EDT
Wed, 26 Sep 2007 19:09:00 GMT

Dear Bottarelli Research Member,

Today has been a bullish day across the board, but oddly enough the NASDAQ 100 (NDX) is only major market index hitting new 52-week highs. Take a look at today’s chart:

NDX

As I’ve been reporting in part alerts, companies like Research In Motion (RIMM – NASDAQ), Amazon (AMZN – NASDAQ), Garmin (GRMN – Nadaq) and Apple (AAPL – NASDAQ) have been widely hailed for fueling this tremendous upside run, but I’ve spent the entire day studying the other 96 components of the NASDAQ 100, and I must tell you: I’ve uncovered a true diamond in the rough.

The company is called Millicom International Cellular SA (MICC – NASDAQ) and they provide mobile telecommunication services to 14.9 million subscribers in 16 foreign countries, including El Salvador, Guatemala, Honduras, Bolivia, Colombia, Paraguay, Chad, Ghana, Mauritius, Senegal, Sierra Leone, Cambodia, and Sri Lanka. Since they’re based out of Luxembourg, I bet you that not a single NDX floor trader can identify this company as part of the 100-top companies on the NASDAQ. But when I pulled up the chart, I witnessed a very bullish technical formation that warranted the immediate purchase of calls. Take a look:

MICC

As you can see, the stock has just now popped above the critical crossing of the 50-day and the 200-day moving averages — which signals strong upside ahead. What’s more, the MICC options string looks very reasonably priced. That’s why I now consider MICC the very best upside candidate within the very strong NDX, so let’s get positioned to ride the upside now! Here’s the play:

PLAY: Buy the MICC October 80 Calls (CQD JP) at or under $5.00, good for the day. Current bid/ask spread is $4.40 to $4.80. Place a protective stop limit at $2.40.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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