The Playbook 100

ACI @ $52.11 (Arch Coal) is engaged in the mining, processing and marketing of coal with low Sulfur content in the Eastern and Western U.S. Earnings are expected to grow 97% this year and another 41% in 2009 to $3.36 a share. We are establishing half a position here and will add the remaining half on a pull back to the $47 level. Our stop loss will be set at $45. We like the LEAP listed below, for those that like to invest in options instead. 

IPO's and New Issues

ATAI @ $10.36 (ATA Inc.) is a Chinese provider of test-based educational programs, computer-based testing services and test preparation software. They came public last month at $10 and we feel establishing half a position here, with the remaining half purchased on a pull back to $9 with give us a great opportunity to make money going forward. We will set our stop loss at $8.50.

Options

OSE AF @ $24.10 (Arch Coal January 2009 $30 Call) is in the money by $22.11 and charging less than $2 in time value for the next ten months. We are buying these instead of the stock due to the compelling risk to reward ratio and will entertain writing calls against our position once Arch breaks out to new highs above $55. Once the stock gets to the $60 level, we will write the near term $65 or $70 Calls to increase our return.

This newsletter has been sent to you for informative purposes only and in no event should be construed as a representation by The Stock Playbook or its employees as an offer to sell or solicitation of an offer to buy any securities. The factual information given is taken from sources we believe to be reliable, but is not guaranteed as to its accuracy or completeness. The opinions expressed should be given only such weight as opinions warrant.  employees and/or family members may have a position in the securities mentioned and may make purchase and/or sales of such securities from time to time in the open market or otherwise Recipients of The Stock Playbook prohibited from, directly or indirectly, distributing, forwarding , plagiarizing or copying any part of this message without expressed written consent from The Stock Playbook. Some content may have been based, at least in part, on material gathered from Investor's Business Daily ® and/or YAHOO!®