Add PCU Calls

A Triple Digit Winner?

By Bryan Bottarelli
Wednesday, August 20, 2008 10:35 AM EDT
Wed, 20 Aug 2008 14:35:00 GMT

PLAY: Buy the PCU September 25 Calls (PCU IE) at or under $1.20, good for the day.

Dear Bottarelli Research Member,

Over the last few months, some of the best stocks that I follow have gotten mercilessly beaten down. Names like Fluor (FLR – NYSE), Foster Wheeler (FWLT – NASDAQ), Companhia Vale (RIO – NYSE), & Petroleo Brasileiro (PBR – NYSE) are just a few that make this list. But another beaten-down name that I’d like to play right now comes in the form of Southern Copper (PCU – NYSE).

PCU

The combination of a stock split and a 30% share price decline has now made the PCU options string more attractively valued than I’ve ever seen before. And now that we’re seeing an up-tick in metals prices, we could have an opportunity to make a strong winner. Therefore, let’s add PCU calls now!

PLAY: Buy the PCU September 25 Calls (PCU IE) at or under $1.20, good for the day. Place a protective stop limit at $0.40, but to not place a pre-determined sniper sell at this time. If PCU moves up as I expect, then our profits can easily reach the triple digits. Therefore, we’ll try to hit a bigger winner on this play.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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