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Begin Part 3 of 3

RNR (Renaissancere Holdings--$117.50; +2.10; optionable): P & C insurance. Announced the split Thursday! Splits 3:1 effective May 31.
http://biz.yahoo.com/p/r/rnr.html
STATUS: Got a bounce on the announcement news, but a tough day in the market to move. RNR has been solid, giving us some nice plays going toward the split announcement. It most recently broke from a small cup in April, tested the move, and hit 122.50 before dropping back. It has been holding the short-term MVA's (10 & 18 day at 115.04 and 113.40), and moved up from the 10 day Friday as volume was sharply upat 288k (avg. 231k). Closed at the buy point for the bounce, play, and we are looking for a move with options up to a target of 126. Will protect profits carefully on the move, as RNR has been a bit volatile.
BUY POINT: Still a buy to 119 on increased volume. Stop: 113.
POSITION: July $110 calls to buy (RNR GB - 30 open interest).

LLL (L-3 Communications--$129.35; -1.04; optionable): Splits 2:1 effective 5-21-02.
http://biz.yahoo.com/p/l/lll.html
STATUS: Made a nice move to a new high this week, blasting out of its recent consolidation over the 18 day MVA (124.42). The past two sessions it has pulled back on lighter volume (much lighter Friday at 693k; avg. 791k). The light volume is good action on a breakout test, and LLL has been stingy in giving up gains, showing loose dojis on the pullbacks and holding over the prior pattern highs at 126. Riding positions, and if we get a hold over 127 we can look for new or additional positions toward the target of 145.
PLAY: After a hold here or over 127, a move over 131.50, with July $125 calls to buy (LLL GE).

MCHP (Microchip Tech--$42.21; -1.96; optionable): Splits 3:2 effective 5-9-02.
http://biz.yahoo.com/p/m/mchp.html
STATUS: Dropped back hard, holding the 50 day MVA (42.25) to close after having hit a low of 41.47. MCHP survived a drop to this support last week and bounced back up to 46, but it has come back again quickly, and this time on bigger volume of 3.85m (avg. 2.29m). Going toward the split, but the momentum is down. The aggressive can look at a put play on a strong breach of the 50 day, with the favorite entry point being on, if it happens, a test of the 50 day after an initial drop. Target 37 (200 day MVA at 36.75).
PLAY: Aggressive: Through 41.47 on continued strong volume, with June $50 puts to buy (QMT RJ - one OI as yet).

CONTINUING CANDIDATES BEST PLAYS: INVN still set up for a possible put.
1) FITB - Setting up an ascending wedge

FITB (Fifth Third Bancorp--$68.94; -0.03; optionable): Regional bank.
http://biz.yahoo.com/p/f/fitb.html
BACKGROUND: Last announced a 3:2 split on 6-20-00 at a stock price of $61. The annual shareholder meeting was on 3-19-02 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Has slowed on the bounce just short of its high (69.70), but is holding over the short-term MVA's (18 day at 63.26). FITB tested the 18 day at its low before showing a tight doji on increased volume (1.77m, the avg.). The stock has shown solid support at its 50 day MVA its last two moves down, and this time we look for the stock to hold the short-term MVA's, setting up the breakout. Target: 80.
BUY POINT: 69.80 on volume of 2.3m. Stop: 66.50.
POSITION: August $65 calls to buy (FTQ HM).

POST-SPLITS BEST PLAYS:
1) CHS - Trying to move

CHS (Chico's Fas--$37.48; -0.18; optionable): Apparel stores.
http://biz.yahoo.com/p/c/chs.html
STATUS: Formed something of a reverse head and shoulders out of what was a little double bottom pattern (the latter being the head of the rev. h & s). The right shoulder kept extending in a handle-type consolidation, but CHS moved up this week with increasing volume, making a strong move Thursday to a new closing high. Friday CHS held pat with a doji, as volume dropped back to a light 331k (avg. 596k). Could be just a rest here, and still a buy up to 39. Targeting 44.
PLAY: Still a buy up to 39 on above average volume, with August $35 calls to buy (CHS HG).

WATCHLISTS:

PRE-ANNOUNCEMENTS WATCHLIST: BRL, GTK, LE, LSTR, MUR, PDCO, SLM, and STU.

BMS ($55.02; +1.12): We are researching a date. Continued up, prompting an exit from plays after making it back through the 50 day MVA (54.18). We will keep an eye on it, as it could be setting up a double bottom.

AROW ($32.79; +0.04): Researching a date. Rested on very low volume (5200) Friday after blasting up this week from the 29 level (50 day MVA). On a test of 32 we can look at positions on a move back up.

MHK ($66.30; +0.54): Forecast to announce a split at its May 16 shareholder meeting.
Edging up along the 10 day MVA (64.96) on steady, below average volume in the handle to a cup dating back to mid-March. Will likely test back again toward 64-65, and from there we will watch for a breakout. The buy point is 67.05 on volume of 965k, with stock and/or August $60 calls to buy. Target: 79.

KSS ($71.80; -0.70): Forecast to announce a split on 5-16-02 after the market closes in conjunction with earnings or on 5-21-02 in conjunction with its annual shareholder meeting. Continued down Friday, testing the 50 day MVA (71.44, just below recent price support at 72) Friday as volume picked up a bit but remained below average. Volume has not been big on the selling, so we will see if the institutions step in and give it a boost.

BBBY ($36.70; -0.17): Researching a new date. Edged back a bit more but still held the 10 day (36.45) as volume remained steady and below average Friday. Riding current positions as long as support holds (18 day is at 36), and watching to see if it can generate a bounce it can sustain for more than one session. Target 42.

CTAS ($51.80; -0.56): Working on a new date. Another test of the 18 day Friday at CTAS' low of 50.94. It again pulled back up to close as volume shot up to 1.3m
(avg. 994k). As we noted earlier, the price/volume action is not solid and with this set up, we will wait for a more stable consolidation to set up a solid move up before we look at new positions. Riding existing positions is a bit wild given the intraday volatility, but it has steady support at the 50 day (49.84).

XL ($92.56; +0.69): Slight relief bounce Friday as volume fell to 695k (avg. 826k). Still targeting 88 (200 day MVA) with existing puts. A little tight with new positions given the current deltas and prices of the puts.

PRE-SPLITS WATCHLIST: Watching IFNY (5/14), BBY (5/13), MCHP (5/9), IFIN (6/14).

PNRA ($71.64; -0.16): Splits 2:1 effective June 25. A great move this week, and closed it Friday buy holding its own after a bit of a gap up and pullback on much lighter volume (328k; avg. 431k). Riding positions, and if we get a low volume test of 70 we can look at new or additional options positions on a strong move back up, with June $65 calls to buy (UPA FM - only 2 open interest). Target: 76.

ABM ($38.86; +0.61): Splits 2:1 effective 5-7-02. ABM is in a handle to its cup pattern (dating back to July 2001). Thursday ABM tried to break from the handle, but pulled back to close. It moved up Friday, stopping short of the buy point as volume fell off to 47,500 (avg. 76k). We can still look at positions on a breakout, but will ride with caution through the split. 39.33 on volume of 100k or better, with stock.

WTSLA ($34.78; -0.98): Splits 3:2 effective May 10. Made a steady, impressive run up from its September lows (13.70), hitting a high of 39.28 in early April. Since then it has pulled back to test the 50 day twice (now at 34.17), dipping toward that level. Looking for WTSLA to hold and produce a solid bounce. After showing it can hold here, the aggressive can play a move over 36, with stock and/July $30 calls to buy.

STZ ($61.20; -0.04): Splits 2:1 effective 5-14-02. Made a nice breakout earlier this week and after hitting 62.50, is now holding over the 61 level in a brief (2-day) consolidation. The stock dipped back a bit Friday on huge volume (4.06 million, avg. 235k), huge because STZ moved from the S&P SmallCap 600 to the S&P MidCap 400. We will see if it can hold 60 and set up a continuation of the move.

FULT ($25.36; +0.07): Splits 5:4 effective 5-21-02. FULT tried to move again Friday, but could not make much headway following Thursday's gap up and doji. It is holding over the recent consolidation, but we are still waiting to see if it can mount a solid run, holding positions taken on the initial move.

ANN ($43.52; -0.55): Splits 3:2 effective 5-21-02. As expected, ANN tested back toward the 50 day (42.80) Friday. Looking for it to hold there, and waiting to see if we get a stronger bounce. The aggressive can look at a move over 44.80, with June $40 calls to buy (ANN FH).

RYL ($115.91; +0.96): Splits 2:1 effective May 31. Continued up Friday, but showing signs of slowing as volume fell below average and the gains continued to decrease in size, as Friday RYL showed a loose doji. A great run thus far and we are ready to protect profits. On a pullback, support at the short-term MVA's is below at 105-110.

MI ($63.68; -0.23): Splits 2:1 effective 6-15-02. Edging up and holding over the 10 day MVA (63.22). Still riding positions, but watching the volume and stops carefully as MI makes its way toward the high of 64.24. A bit of a pullback and consolidation would not hurt after this move.

PMI ($83.50; +0.75): Splits 2:1 effective 6-18-02. Pushed back up Friday, as volume picked up some, but remained below average. PMI is just below the former highs (84.45) in its erratic three-week consolidation. The aggressive can play a move over the high with volume of 420k, with June $80 calls to buy (PMI FP - 31 open interest).

GG ($19.11; +0.53): Splits 2:1 on a date TBA. Gapped up, but closed with a "hanging man" doji as volume fell to just above the average. Off of this pattern we are watching out for a test and looking to see it hold on that move 18-18.50.

CONTINUING CANDIDATES WATCHLIST: When splits are not announced, we will keep the best split prospects on the report rather than continue to carry all of them in case there is a an unexpected announcement. We will continue to monitor the stocks that are trimmed and add them again when we ascertain a revised split announcement date. These include AHC, CPS, CYN, DHR, DIAN, DRYR, ESI, ETN, GOSHA, HB, INVN, JCI, KRB, MMM, STI, TGH, TGIC and YUM.

ACDO ($61.60; -0.53): A solid move early this week, but still testing back to end the week, dipping through the 18 day (61.08) intraday but holding to close as volume continues to fall and is now below average. As long as support holds, we will continue to ride remaining positions, looking for another bounce and continued move.

APPB ($40.72; +0.26): Closed the week with a loose "hanging man" as volume fell below average once again. Still riding existing positions toward the target of 46, but Thursday's move was not all that strong, and we are exercising caution with short-term positions and watching for a pullback to hold over 40.

ASD ($75.46; -0.31): Volume continued to fall Friday as ASD lost a bit of ground and closed with a loose doji that held over the 10 day. Given the low volume breakout Thursday, we are watching out for a pullback and exercising care with existing positions.

AZO ($75.50; -0.70): In a cup with handle dating back to December. AZO hit the left-side (and all-time) high of 80 on its recent run, but abruptly pulled back and now is consolidating over the 10 day MVA (75.55; 18 day at 74.35). Setting up a handle and looking for a hold of support.

ETH ($41.02; -0.78): As expected, pulled back Friday (briefly testing through the 10 day at 40.69), pulling back from Thursday's bounce as the below average volume continued to fall. Still looking for a better handle to form and set up a move out of this double bottom.

KLAC ($52.78; -2.43): Continued down on a very nice put play. KLAC went through the target (54), resting to close just over its 200 day MVA (52.49). Volume continued to be strong at 17.98 million, and we will be ready to take profits on any remaining positions with a bounce.

MTG ($71.43; -0.79): Made a good bounce from the 50 day (69.39) early in the week, but lost steam and is holding on, moving somewhat laterally the last three sessions. Looking for a hold and a bounce to resume the move, targeting 80. The aggressive can look at a move over 73 on volume of 700k, with June $70 calls to buy (MTG FN).

PII ($75.50; -0.39): Looks to be forming another flag pattern. Since its March breakout, PII has formed two flags and broken out solidly from each. It is consolidating again over support (10 day MVA at 73.93), and because flags often occur in threes, we will see if this one develops.

RCII ($61.56; +0.44): Made a big gapping breakout with earnings, and RCII is holding in a low-volume consolidation over 60. We could still see a test back as the stock has been unable to continue its move.

RUS ($37.11; -0.30): Great breakout but we are protecting profits at this point. The move has been very strong but has slowed a bit, and off of today's doji we are wary of a pullback that has strength of volume behind it. After such a strong move we do not want to lose the gains.

SRCL ($72.10; +0.60): SRCL powered up to a new all-time high of 73.85 on Thursday. It fell back from 73.85 to close, but Friday held on with a loose doji on much lighter volume (185k; avg. 271k). Protecting profits on short-term positions, but on a pullback will look for continued low volume and a hold of 68 (March highs and the 10 day MVA).

STJ ($82.73; -1.36): STJ powered up again Thursday on big volume, but after pulling back to close well off of its intraday high (85.10) that was over its upper channel trendline, we were expecting a pullback Friday. We got it, but not too bad as volume decreased markedly to 723k (avg. 709k). Carefully riding positions, wary of the trendline. Prior pattern highs and the 10 day MVA are at 82.

THC ($73.60; +0.25): Holding up in an erratic lateral pattern after its steady move up. Still over the 18 day MVA (72), and it could set up again for a move, but for now we are protecting profits.

POST SPLITS WATCHLIST: Watching ACS, DF, MKC, OPTN, and WLP.

AMAT ($22.17; -0.70): Split 2:1 effective 4-17-02. Continued the drop in the weak market, touching through the target Friday (low of 21.65, target 21.80). AMAT tapped the 200 day MVA at its low, and might visit that level again, giving another chance to take profits.

APOL ($36.90; -0.39): Split 3:2 effective 4-26-02. Continued pulling back Friday, dipping to close below the 18 day MVA (37.26). Volume was again lighter on the selling (1.03m; avg. 1.06m), so we will see if it can make a recovery. However, we are prepared for a possible test of the 50 day at 35.24, and will shed any remaining short-term positions on a continued bleeding back.

CHBS ($38.00; -0.51): CHBS made a very sharp breakout in early April from a cup pattern, and has held up well in a consolidation. It started a move Thursday, but after gapping up Friday it pulled back again, with volume remaining light (245k; avg. 475k). We will see if it can again catch support at the 18 day (37.09) and set up.

ICUI ($41.97; +2.68): Split 3:2 effective March 18. A lot of volatility lately, Friday blasting up yet again. ICUI made a big move in mid-April on to pull back abruptly after hitting a high of 42.42). Volume was up Friday (95,600; avg. 73,700) but not at the wild levels we seen on the April moves. Holding any existing positions, but a bit wild here for new ones.

JEC ($40.26; -0.19): Edging up rather than giving us the strong move on the test we were looking for. The volume has been very light as it took out what would have been our buy point at 40. Carefully riding positions at this point, looking for a pullback to hold support (10 day MVA at 39.53; 18 day at 38.80).

PFCB ($37.38; -0.65): Split 2:1 effective 5-2-02. Broke out nicely Thursday, but Friday gapped up to a new high (39.68) and reversed. Volume was well down but still strong at 793,300 (avg. 383,200), and this type of candlestick typically indicates a continued pullback. Again, this is one that we are looking at to show post-split strength, so we will ride positions on a lower-volume test of support (prior consolidation highs at 37 and 18 day MVA at 36).

PRHC ($24.46; -0.46): Split 3:2 effective 5-1-02. Made an excellent move going into the split, breaking from its 'flying w' double bottom with handle, running from the 21.50 level. It has pulled back post-split, and is testing its left-side (February) highs in the pattern. Friday it tapped the 18 day MVA at its low of 23.65, closing just over the 10 day. Looking for the test to hold here, setting up a continued move up. Holding existing positions on a continued hold of support.

SONC ($29.94; +0.24): Split 3:2 on February 11. Was setting up well on the test of its breakout from a double bottom with handle, but has gapped up each of the last two session, moving on light volume (Friday 221,500; avg. 328,500) and showing dojis. Off of Friday's loose doji we could see a pullback to support (18 day is at 28.84), and we will see if it can set up a bit better. Suffered a downgrade after the breakout, so could need some time to settle down.

UOPX ($31.50; -0.02): Split 4:3 effective 4-26-02. Showing a bit of erratic behavior post-split, but holding the 18 day MVA (30.97). After a gap up and reversal Wednesday, UOPX has dipped back slightly, holding support and Friday showing a loose doji as volume spiked back up to 309,800 (avg. 185k). Could get a bounce, and we are riding positions toward the target of 34.50.

WTNY ($38.05; +0.05): Split 3:2 effective 4-10-02. Strong move off the test of its March high. Today's 'hanging man' doji on continued strong volume (163,600; avg. 46k) could signal a test back, and we will look for that move to hold the 37 range (10 day MVA at 36.58).

Good Investing!
Jon L. Johnson and the Stock Split Report Staff.

All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Online Investment Services, LP or its paid consultants and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Partners of Online Investment Services, LP or its paid consultants may, in some instances, include securities mentioned herein and on our web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors.

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