Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

EXPE- OptionInvestor.com came out this weekend with a new CALL play on EXPE. Although I disagree I thought I would share their opinion.

EXPE - Expedia, Inc. $70.39 (+0.60 last week)

Company Summary:
Expedia is a provider of online travel services for leisure and
small business travelers, offering one-stop shopping and
reservation services with real-time access to schedules, pricing
and availability. The company's global travel marketplace
includes direct-to-consumer Websites offering travel-planning
services at Expedia.com, Expedia.co.uk, Expedia.de, Expedia.nl
and Expedia.it. In addition, the company provides
travel-planning services through its telephone call centers and
through private label travel Websites through its WWTE business.
WWTE is a division of Travelscape, Inc., one of EXPE's wholly
owned subsidiaries.

Why We Like It:
Travel-related stocks got pummeled throughout the months of
December and January as economic uncertainty had bulls in this
sector moving to the sidlelines ahead of earnings. But the
earnings weren't as bad as expected and we've seen a fair amount
of improvement in these stocks in recent weeks. Announcing
earnings that handily beat analyst forecasts on February 5th,
shares of EXPE initially sold off, trapping the bears below $60
and then promptly shooting skyward. After one more dip in the
middle of February, EXPE has really been on a tear. First
clearing the 200-dma, the next surge took the stock through the
50-dma (currently $64.98) and then through the $68 level this
past week. What initially looked like short-covering, now
appears to be genuine buying in anticipation of the stock's
upcoming split. That's right, EXPE is due to split 2-for-1 on
Monday, and that is likely part of the catalyst for the bullish
action in the stock. What happens after the split is where the
rubber meets the road. We don't want to enter before the split,
and that means waiting until it is trading split adjusted on
Tuesday. Over the past several days, EXPE has been finding
support just above the $68 ($34 post-split) level, and we need
that level to continue supporting the stock after the split. The
10-dma (currently $68.30) should reinforce that support level.
Look for a dip and bounce from that level on Tuesday to provide
the best entries. Should buyers continue to bid the stock after
the split, momentum traders can consider new entries on a
breakout over $71 ($35.50 post-split), so long as buying volume
remains strong. Place stops initially at $67.50 ($33.75
post-split). Note that the push through the $70 level over the
past two days has taken the stock through the PnF chart's bearish
resistance line and the current column of X indicates substantial
upside still to come. Our target for the play will be $77.50,
where the stock found resistance in late November. We've listed
pre-split option strikes for the play this weekend and will
update them with post-split strikes on Tuesday.

*** March contracts expire in two weeks ***

BUY CALL MAR-70 UED-CN OI=4629 at $2.75 SL=1.25
BUY CALL APR-70*UED-DN OI=3047 at $5.00 SL=3.00
BUY CALL APR-75 UED-DO OI=2036 at $2.60 SL=1.25

Average Daily Volume = 2.05 mln
http://www.optioninvestor.com/charts/charts.asp?symbol=EXPE