Seaspan Corp. (SSW)
(7/23/07)

Seaspan (not to be confused with the cable tv channel) is container transportation line out of Hong Kong.  Because of its strategic location in the Asian market, interest in the company has started perking up among US investors, especially since April.  Since hitting a Wave (2) low in February, the stock has nearly doubled in price, and the advance appears to have some more upside remaining.  Sentiment readings are also moderate, so excessive investor optimism isn't yet being suggested.

The company started trading on the NYSE in August 2005, and after producing a partly sideways Wave (1) pattern, and then slumping in a sharp Wave (2) decline, the advance pattern began to develop very impulsively.  The strong upside movement suggests the stock is in a "third of a third wave" advance, which has some resistance at 38.47, but would more ideally push on towards higher resistance levels at the 41-42 area.  Indeed, the completion of the full impulse pattern offers higher highs at least at 45, but more of the pattern needs to develop to be certain, and a pullback would still be likely beforehand in any case.  Although it's not really a high beta stock, volatility has picked up, especially after the company reported strong quarterly earnings this past week.  There is support at 34, and we like the stock for an entry while it remains above this. 

For an option play, you can consider the November 2007 $35 Call (symbol SSWKG), currently selling for $3.50 with a nice Delta of 0.72.  

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