Buy OMAB at $21.25 or Better

The Hot IPO Trader
Thursday, November 30, 2006
By Louis Basenese

Email – #87

** Buy OMAB at $21.25 or Better

Grupo Aeroportuario Centro Norte (Nasdaq: OMAB) has pulled back more than 5% from yesterday’s highs, making now an appropriate entry point.

Remember the company shares many similar fundamentals with PAC, which closed out its first day of trading 33% higher than the offer price – and then proceeded to climb roughly 40%.

As it stands now, OMAB is just 17% above the offer price, making this opportunity all the more attractive.

Tack on news that Empresas ICA (Mexico’s largest construction company, and the largest stakeholder in OMAB) announced plans to boost its stake to more than 50% in the company – and we get the added bonus of a takeover play.

The additional interest is just another catalyst for rising share prices in the weeks ahead.

Action to Take:

Buy Grupo Aeroportuario Centro Norte (Nasdaq: OMAB) at $21.25 or better and place a sell stop at $17 for protection.

Keeping with our discipline, let’s set some profit targets.

Profit Target 1 : Sell half of your position if shares climb 20% above your entry.

Profit Target 2 : Sell half of your remaining position if shares climb 40% above your entry. Let the remaining half (or 1/4 of your original position) ride.

Elsewhere, in yesterday’s alert, I failed to mention that we stopped out of our remaining shares of eHealth, Inc . (Nasdaq: EHTH) last week after the CIBC “under-perform” rating thwarted investor enthusiasm for the stock.

However, we can’t complain – our stop loss prevented us from losing any money. And, in just five weeks, we were able to lock in a 20% gain in half our position (compared to a 2.5% up-tick for the S&P 500).

Good investing,

Louis Basenese

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Stock

Current Price

Comments

GRUPO AEROPORTUARIO (Nasdaq: OMAB)

NEW

Buy at $21.25 or better. Place sell stop at $17.

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