6/20/2010 9:37:56 AM
Company Description
Dolby Laboratories, Incorporated (DLB) develops and delivers products and technologies for the entertainment industry worldwide. The company offers products and services for content creators, which include encoding products and services for moviemakers, music studios, and video game designers; encoders, decoders, and processors for television producers and broadcasters; and mastering and packaging services for digital cinema business. The company was founded in 1965 and is based in San Francisco, California.
Fundamental Picture
Dolby has strong fundamentals with fine return on equity and outstanding sales growth..
Technical Outlook
The Dolby stock has recently bounced off its 50-day exponential moving average and has resumed its long-term uptrend. This continued uptrend is also being confirmed by the bullish MACD crossover.
Trading Action Plan for the Week
Stock Entry: Buy shares of Dolby (DLB) at 67.24 or better.
Option Entry: Buy the September 65 call at 5.85 or better.
Profit Target Exit: 82.
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: 59.99.
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 Entry Date | Symbol | Trade | Trade Comments |
| 5-31-10 | INTU | Long the stock at 35.51 and long the October 35 call at 2.90. | Keep the profit target at 41 and move the stop to 36.80 to protect profits. |
| 6-9-10 | DDS | Long the stock at 25.30 and long the August 22.5 call at 4.60. | Keep the profit target at 38 and move the stop to 26.40 to protect profits. |
| 6-14-10 | OC | Long the stock at 32.50 and long the August 30 call at 4.0. | Keep the profit target at 40 and keep the stop at 29. |
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