Play FLR Calls

Bottom-Fish A Great Company

By Bryan Bottarelli
Friday, February 08, 2008 10:29 AM EST
Fri, 8 Feb 2008 15:29:00 GMT

PLAY: Buy the FLR March 120 calls (FLR CD) at or under $6.00, good for the day. Place a protective stop limit at $3.30.

Dear Bottarelli Research Member,

As you probably know, I’m rather bullish on engineering and construction stocks. Using the unrelenting flow of foreign oil money as the catalyst, pent up global demand for engineering and infrastructure services are found in virtually every facet of development, and that puts a company like Fluor (FLR – NYSE) in prime position to handsomely capitalize on this growing trend.

FLR

Having said that, the stock has gotten beat up in 2008. In later October, for example, the stock traded for $170 per share. And three months later, the stock is trading for $110. But now, I’m seeing signs of near term support. First off, the stock just increased its quarterly dividend 25% to $0.25 per share, and this has attracted some buyers. They also have an earning report due on February 28th, and this could spark buying activity as well. But what’s really attractive about FLR is that the stock has not traded this low since the last major sell-off in August of 2007. During this August selling, shares of FLR closed the day at $113.44. But by the end of October (less than two months later) they hit a new high of $170. Now that’s what a call a recovery!

Jump back to today’s prices, and you can see why investors are taking notice. With the stock now trading for $111.75, it sure looks like a super-attractive entry price, so let’s go ahead and establish a position in FLR March calls now!

PLAY: Buy the FLR March 120 calls (FLR CD) at or under $6.00, good for the day. Place a protective stop limit at $3.30.

And just so everyone is on the same page, we’ll continue to implement our “sniper selling” tactic on this play.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

© 2012 CSR Group, LLC. All rights reserved. Published in USA.

Information, opinion, research, and commentary contained herein is obtained from sources believed to be reliable; their reliability, however, cannot be guaranteed. The maxim of Caveat Emptor applies — let the buyer beware. Bottarelli Research does not provide individual investment advice, act as an investment advisor, or individually advocate the purchase or sale of any security or investment.

Investments recommended in this service should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Bottarelli Research reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscriber’s initials will be used unless express written permission has been granted to the contrary.

CSR Group, LLC expressly forbids its writers from having a financial interest in any security recommended to readers. Furthermore, all employees and agents of CSR Group, LLC and its affiliate companies must wait 24 hours before following a published recommendation.

Bottarelli Research alerts contain time-sensitive information, and are published and distributed to members with urgency. Because of this, not all published materials can be adequately proofread, and an occasional spelling or grammar error may exist.


Other Options Alerts From February 2008