stock split, stock recommendation

Begin Part 3 of 3

WATCHLISTS:

PRE-ANNOUNCEMENTS WATCHLIST: AROW, LE, LSTR, MUR, PDCO, SLM, STU and XL.

BMS ($51.96; -2.19): We are researching a date. Got a gap through the put buy point today, with volume spiking up to 552k (avg. 281k). It is right at support from recent lows, and we will see if BMS will bounce a bit from this support, giving another chance to take positions on a move back down. After a bounce fails at 53, on a drop through 52, an aggressive put with continued strong volume, and July $60 puts to buy (BMS SL - 20 OI). Target 49.50.

KSS ($73.55; +0.45): Forecast to announce a split on 5-21-02 in conjunction with its annual shareholder meeting. The momentum is failing for KSS, which showed a trend reversal gap out of its short-term downtrend. After a second consecutive doji today on decreasing volume (1.72m), we will see if it pulls back a bit to set up something before next week's shareholder meeting.

CTAS ($55.17; -0.53): Researching a date. Looking good as it trends up now, puling back the last two sessions but hold over its 10 day MVA (54.37) today on lighter, though still strong volume of 1.4m. Looking for a hold and continued trend toward the 65 target.

BRL ($68.50; -0.25): Still holding over the 50 day MVA (67.41) for now, testing that level at its low today but closing with a doji on lighter volume. We will see if BRL can hold the 50 day or if it gives it up.

MEG ($67.37; +0.60): Forecast to announce a split on 5-24-02 in conjunction with its annual shareholder meeting. It has bounced back up from the 50 day MVA (64), but not convincingly. Not much of a pattern at the moment, we will see if the stock holds here to set up a move going toward the forecast (18 day MVA at 67).

BBBY ($35.83; -0.09): Researching a new date. With the strong retail sales BBBY ran back up Tuesday from its 50 day MVA (34.85), and now holds the short-term MVA's (and former pattern highs near 36) with consecutive dojis a as volume held steady and below average. Needs to set up more.

PRE-SPLITS WATCHLIST: Watching GTK (5/24), MI (6/15), SU (5/23), RNR (5/31), SRCL (6/1), ESI (6/6), FBC (6/21), UPC (6/7) and GG (TBA).

COCO ($56.74; -0.54): Splits 2:1 effective 5-28-02. Could not sustain the move up from the test of the former highs at 55. Holding up, however, and we are still looking for a move over 58, with August $55 calls to buy (UCS HK).

APPB ($40.67; -0.16): Split 3:2 effective June 12. Made a solid breakout last month from its December-April range, and has held up, showing a pennant pattern over the 10 day MVA (40.19). It hit our buy point, although without the volume we wanted. We will see if it can continue to hold the 40 level.

RYL ($108.31; -5.44): Splits 2:1 effective 5-31-02. Did not follow through on the bounce, dropping back with the homebuilding sector today, giving up its 18 day MVA (110.18). Not good at the moment.

FULT ($25.10; -0.16): Splits 5:4 effective 5-21-02. Could not make the move, and would be an aggressive play on a move into the split, over 25.57, with stock.

ATK ($106.00; -0.85): Splits 3:2 on or about June 11. Continues dropping back, with volume strong but the point gains light - that can indicate bottoming, with the 50 day below at 103.34. The aggressive can look at a move over 108.50, with August $100 calls (ATK HT).

ZRAN ($39.17; -0.24): Splits 3:2 effective 5-23-02. Made quite a move up with the rally, and is holding up pretty well. We will look for the stock to hold the 50 day MVA (36.67), setting up for the next move.

PMI ($86.30; +0.35): Splits 2:1 effective June 18. Continued up, but could not make a breakaway, instead closing with a doji. For existing positions we could see a dip back, watching for a hold of 84 to show another run.

YUM ($64.61; -0.29): Splits 2:1 effective June 18. YUM made the move Wednesday, but did not continue today, although it held up with a slight pullback on lighter volume. Still targeting 68.

PNRA ($67.41; -1.03): Splits 2:1 effective June 25. Looks like a possible visit to the 50 day MVA again (at 65.24). Looking for a hold that can set up a new play for this strong leader.

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 AZO, CYN, DHR, DIAN, DRYR, ETH, ETN, EXPD, GOSHA, JCI, KRB, MGA, MHK, MTG, RCII, RUS, STI, TGH, and TGIC.

SRCL ($70.55; -2.41): Announced the split today! Splits 2:1 effective June 1. SRCL has made a great run, the type of run we typically see with our split candidates in the months and weeks before the announcement. After such a run, we often will not see an immediate move on the announcement, and indeed SRCL pulled back today to close just over the support of its 18 day MVA (69.93). Volume was up on the selling as well (306k; avg. 243k), so we look for it to hold after the announcement and set up a pre-split run.

ASD ($76.70; -0.54): Steadily trending up, riding existing positions but protecting profits (18 day MVA below at 75.27).

CAKE ($41.15; -0.55): Did not get the announcement. Still holding the 18 day MVA (41) after dipping back today. Still looking for a move over 42.25 on above average volume, with stock and/or July $40 calls to buy (CFQ GH). Stop: 39.29 (7%). Target 49.50.

ETN ($86.21; -1.04): Broke out of a small ascending wedge Wednesday on good volume, but immediately pulled back today on low volume. Still looking pretty good, and on a move over 87.85 with increased volume, stock and/or July $85 calls to buy (ETN GQ). Target: Run to 100. Stop: 82.50

FITB ($67.63; -0.05): Still holding the 50 day MVA (67.16), and we look for a continued hold to avoid the bearish descending wedge.

INVN ($18.43; -0.47): Dropping again, although selling volume is light (1.44m). Still weak, and we are looking for a continued fall toward the target of 15.

KLAC ($61.05; +1.03): Holding the vicinity of the 50 day MVA (60.38), pushing back up over that level today on light volume. Has hit the target on our play, and we could get a drop from here. We will see if it can set up again.

MMM ($129.41; -0.09): Hit our buy point Monday, but volume was just steady and average, not generating a strong breakout. It is holding with consecutive dojis, and we will see it continues up or gives us a test, looking for a hold of 127.50. Target: 145.

PII ($72.79; -0.47): Continues gradually dipping, now at the highs in its previous flag pattern (now in the 3rd). The aggressive can play a move over 75, with September $70 calls to buy (PII IN).

THC ($71.80; +0.45): Has been unable to make a strong bounce from the 50 day MVA (69.53). After its strong run, it could need some more time to consolidate. Aggressive: Over 72.40 (short-term MVA's) on volume of 2m or better. Stop: 68. Stock and/or August $70 calls to buy (THC HN).

POST SPLITS WATCHLIST: Watching ABM, ACS, CHS, DF, FAST, ICUI, MKC, OPTN, PFCB, SONC, STZ, UOPX, and WLP.

AMAT ($26.64; +1.06): Holding up after its solid move preceding earnings. They were solid, so we are looking for AMAT to hang around and set up another move. We can keep playing these techs, understanding they are not in good patterns and are undergoing base-building. AMAT's earnings help.

APOL ($37.55; -0.40): Split 3:2 effective 4-26-02. Gapped up on huge volume Tuesday as it was added to the S&P 500 to replace WCOM. Holding now, and we will look for a continued hold of 37.

BBY ($48.25; +0.50): Split 3:2 effective 5-13-02. After hitting the put buy point and taking a ride down, BBY reversed with the strong retail sales numbers but is again stymied under the 10 day and 50 day MVA's (48.34 and 49.57). Looking for BBY's move to stall here and resume the downward move. Target 45.25.

CHBS ($40.54; -0.42): CHBS continues to hold up, and we will look for a hold of 40 as we ride positions to a target of 46.

JEC ($40.30; -0.80): Split 2:1 April 2. Did not get the bounce off the dojis, instead pulling back again, closing on the 18 day with lighter volume. Not a bad move, and we can still look at a buy point of 41.55 on continued strong volume, with July $37.50 calls to buy (JEC GU).

MCHP ($32.50; -0.15): Split 3:2 effective 5-9-02. Like AMAT, holding up, and we are looking for MCHP to hang around, holding the 31 range to set up a move.

PRHC ($23.22; -0.75): Split 3:2 effective 5-1-02. Still holding the 50 day (28.86), today pulling back on heavier volume, tapping that level at its low. We will see if it can hold on here. If it forms more of a lateral consolidation we could see another strong run.

WTNY ($37.23; -0.92): Split 3:2 effective 4-10-02. Hit the aggressive buy point but could not keep going, pulling back today to the 18 day MVA (36.93). The 18 day has been solid support, so we will look for a continued hold and trend up. The resistance is at the recent highs at 38.75.

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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