Weekly Newsletter 01-20-07

     
by Don Shapray

Weekly Stock Analysis

Briggs & Stratton Corporation

Briggs & Stratton Corporation produces air cooled gasoline engines and engine powered outdoor equipment worldwide. It operates in two segments, Engines and Power Products.

The Engines segment produces engines used primarily in the lawn and garden equipment industry, as well as in the industrial, construction, agricultural, and other consumer applications. This segment also manufactures replacement engines and service parts and sells them to sales and service distributors. It sells its products through its worldwide sales force through direct calls on customers.

The Power Products segment offers generators, pressure washers, snow throwers, and lawn and garden powered equipment. It sells its products through multiple channels of retail distribution, including consumer home centers, warehouse clubs, mass merchants, and independent dealers. The company has strategic relationship with Mitsubishi Heavy Industries. Briggs & Stratton was founded in 1908 and is based in Wauwatosa, Wisconsin

Price Targets:      
Mean: $29.00 High: $34.00
Median: $528.00 Low: $24.00

Don's Recommendation

Bullish Orientated Diagonal Put Spread
Buy Jul Puts - Sell Feb Puts
 

Union Pacific Corporation

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. The company has approximately 32,426 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways, and provides corridors to Mexican gateways. It offers transportation services for agricultural products, automotive, lumber, steel, paper, food, chemicals, coal, and industrial products, as well as for finished vehicles and intermodal containers.

The company also provides container and trailer traffic services primarily for shipper agents and consolidators, as well as for truckload carriers. Union Pacific was founded in 1862 and is headquartered in Omaha, Nebraska.

Price Targets:      
Mean: $101.60 High: $115.00
Median: $102.00 Low: $88.00

Don's Recommendation

 Put Bullish Diagonal Spread
Buy Aug Puts - Sell Feb Puts

Don's experience and expertise in options trading stretches back to the mid-seventies, before CBOE had even come into existence.

He was initially hired as the National Operations Manager for Charles Schwab & Company. As one of the few people with any expertise in the newly sanctioned field of options trading, he would often represent both buyers and sellers!

During this time he also starred in his own weekly television show, "It's Your Option", and it is from this following that he has built his highly successful advisory service, Ascent Option Spreads.

 

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