Tuesday, July 04, 2006

Trade Ideas: CNA

Little to do on a light trading day. A few stocks made low volume appearances on the Trade Ideas scan. Top of the list was CNA Financial Corp (CNA).

CNA Financial Corporation provides commercial, property, and casualty insurance products in the United States. It offers standard and excess property coverage, as well as boiler and machinery; standard casualty insurance products, such as workers compensation, general and product liability, and commercial auto coverage through traditional products to a range of businesses. The company also offers hull, cargo, primary and excess marine liability, and marine claims and recovery products and services. In addition, it provides management and professional liability insurance and risk management services to various professional firms, including architects and engineers, realtors, accounting firms, law firms, and technology firms, as well as offers small, medium, and large contract and commercial surety bonds; and vehicle warranty service contracts

The stock has been riding the 40-week average since early 2005. But it is now in the process of developing a right-hand base from highs of $35. Projected target price is $41 although the stock has bearish point-n-figure target of $25 (with no supporting price pattern; a move to $35 will trigger a breakout). Stops can go on a loss of $34.





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