Options Wonderland

[Fox13]

Back to Batteries…Thu July 15, Barron’s on Line: “Wunderlich Securities analyst Theodore O’Neill this morning picked up coverage of both A123 AONE)#and Ener1 #(HEV) with Hold ratings, taking a cautious stance on the outlook for the lithium-ion battery makers....Of the three companies who have received DOE funding, O’Neill notes that only Johnson Controls #(JCI) has a record of serving the auto industry or has the infrastructure in place to service it. He says both AONE and HEV are starting from about the same point, and both are developing near-term capacity to supply 24,000 electric vehicle batteries per year for the same customer set. The analyst says they have an equal chance of success - but that both are behind JCI in infrastructure and customers.”

OK…but this company, founded in 1885, is too diversified to come up with revolutionary inventions. With a P/E = 16.7 it looks solid. Now, let’s look at JCI on one of my favorite TA constructions. It looks like a decisive level for the immediate direction is just above 28.