Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

I have us finally breaking 1330 before this earning season is over, and while I expect both QCOM and MERQ to have relatively good news, they may be dragged into the mud with the rest. I would go ahead and buy both for the earnings play at the bottoms of their respective ranges ($31.25 and $31.5 respectively) but you must have stop losses under last week's lows, particularly QCOM which right now is broken and could easily make new reaction lows without going back above $32.5/$33. The best you could expect from QOM is probably a run to $34 or so. For few weeks play, I think on balance these are dangerous plays here. I think that playing the like of TARO and TEVA on retrenchment or even BSTE and COCO (with stops as well) are less dangerous, particularly BSTE since it had a serious retrenchment fro the run above $34.

Zeev