Food Producer Stock Positioned for a Boost!

By: Jeff Neal | Mon, Jan 4, 2010
Print Email

1/4/2010 6:47:24 PM

Trading Approach

Identifying fundamentally stellar stocks poised technically to breakout for big profits.

Company Description

ConAgra Foods (CAG) operates as a food company in North America and internationally. It operates in two segments, Consumer Foods and Commercial Foods.. The company was founded in 1919 and is headquartered in Omaha, Nebraska.

Fundamental Picture

This company has stellar fundamentals led by impressive earnings growth and expanding operating margins.

Technical Outlook

ConAgra has a nice long-term uptrend in place, which is being confirmed by the recent bullish MACD crossover. Combine this with a strong fundamental profile makes this stock an attractive trade opportunity.

Trading Action Plan for the Week

Stock Entry: Buy shares of ConAgra (CAG) at 22.98 or better.

Option Entry: Buy the March 22.5 call (CAGCK) at 1.10 or better.

Profit Target Exit: 25.30.

Please note that we will use this price as an initial guide but we will gradually move up our trailing stop to realize as much of the breakout as possible while protecting our profits.

Stop-loss Exit: 21.70.

As the stock starts to breakout we will move the trailing stop up to protect any accrued profits on our stock and option positions.

Review of Open Positions

Trade Date Symbol Trade Trade Comments
11-23-09 HIG Long the stock at 25.16 and long the January 25 call at 1.60. Keep the profit target at 41 and keep the stop at 23. Will look to roll the option or exit this week due to the fact that we are approaching expiration.
12-28-09 BBD Long the February 20 call at 1.65 and long the stock at 20.95. Keep the profit target at 27 and move the trailing stop to 22.20 to protect profits.

Special Stock Trader Subscriber Deal

Not a subscriber? Sign up here and receive a free copy of my eBook "Stock Trading Secrets From The Pros" - which contains insight from my interviews of over 100 of the industry's top traders. You also get my weekly stock and option trade recommendations and a monthly professional trader insight article.

If you have you have any questions please do not hesitate to e-mail me at:



Jeff Neal

Author: Jeff Neal

Jeff Neal

Jeff Neal

Jeff Neal has been actively and successfully trading the markets since 1996. He holds an MBA in Finance from the University of Indianapolis and a bachelor's degree in Computer Science from Indiana University. Jeff is a veteran trader consistently posting profits by strategically applying options to the stock and ETF markets. As an expert risk manager Jeff combines technical analysis, fundamental analysis and options to create an optimal risk to reward profile. Jeff has been a longtime trading mentor and a prolific writer that has had many articles published. He is an author having featured articles in Futures magazine and Stocks and Commodities magazine. Over the years Jeff has interviewed many of the top traders in the business discussing the secrets of their trading success. In addition to his trading and writing experience, he also was a radio show market correspondent discussing the best stocks and options for the week. Jeff is passionate about trading the markets and as a mentor he constantly emphasizes that concentrating on risk management has been the cornerstone of his trading success.

Mission Statement: Uncovering high reward opportunities while effectively managing risk through superior trade planning and execution.

Important Disclosure: Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.

Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.

In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.

For a complete understanding of the risks associated with trading, see our Risk Disclosure.

Copyright © 2009-2011 Jeff Neal

All Images, XHTML Renderings, and Source Code Copyright ©