BofA Merrill Lynch Makes Key Changes To ‘Most Attractive Buy List’ (GPS, VOD, APC, AXP, LVS, UPS)

Gap Inc. (NYSE: GPS) and the ADR shares of Vodafone Group PLC ADS (NYSE: VOD) were added to the list, while the following stocks were booted from the list: Anadarko Petroleum Corp. (NYSE: APC), American Express Co. (NYSE: AXP), Las Vegas Sands Corporation (NYSE: LVS), and United Parcel Service Inc. (NYSE: UPS).

Today’s report shows that the primary objective of the list is to generate superior risk-adjusted returns over the S&P 500 benchmark over the long term through both tactical and strategic stock selection. The list was introduced in February 2006 and it was designed to identify stocks that are attractive based upon technical analysis.

The technical report noted the following:

• Gap Inc. has a ten-year base or bottom in place that projects into the low $40s with eventual upside potential back to the old highs in the low $50s not ruled out. Keep in mind that Gap shares have rallied substantially and are now above $35.00 even after a 2% drop.
• Vodafone broke out from a year and a half long base that supports the case for a rally into the $33 to $36 area. Its ADR is trading at $29.45 so far today.

JON C. OGG