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Begin Part 3 of 3

POST-SPLIT BEST PLAYS:
1) MKC - Interesting pattern

MKC (McCormick & Company--$26.28; -0.19; optionable): Food & beverage. Split 2:1 effective April 9.
http://biz.yahoo.com/p/m/mkc.html
STATUS: Since its split in April MKC has come back for a couple of visits to its 50 day MVA (25.43), forming a pennant. It made a nice bounce last week from the 50 day, clearing the short-term MVA's (18 day at 25.95) but holding up the last two sessions with consecutive low-volume dojis over that support. Today it tapped the 18 day at its low, but pulled back up to close as volume dipped to 187,200 (avg. 268k). If it holds the 18 day it also hold the prior high in the pattern, and we could get a good move from there. The high (April) is 27.25. Target: 32
PLAY: Over 26.72 on volume of 360k, with stock and/or September $25c to buy (MKC IE).

WATCHLISTS:

PRE-ANNOUNCEMENTS WATCHLIST: AROW, BMS, BRL, EDMC, MUR, SLM, STU and XL.

PDCO ($48.90; -0.22): Researching a date. Took a slight rest today as volume fell off but remain above average. Riding positions toward the target of 57 and pulling up stops to protect profits.

ABC ($78.45; +0.37): We are researching a forecast date. Little change today as ABC continues to drift up the 10 day on steady, below average volume. Still looking for a solid surge, and on a move to 79.80 on minimum volume of 1.4m we are looking at stock and/or August $75 calls to buy (ABC HO).

PRE-SPLITS WATCHLIST: Watching MI (6/15), RYAN (5/30), RNR (5/31), FBC (6/3), ESI (6/6), CPS (6/7), UPC (6/7), APPB (6/12), MI (6/15), PMI (6/18), YUM (6/18) and PNRA (6/25).

GG ($23.21: +1.05): Splits 2:1 May 29. GG made a new closing high today and hit our target (23) but is still showing some volatility on falling, but strong, above average volume. Riding positions through the split on continued strength.

RYAN ($27.43; +0.29): Splits 3:2 effective 5-30-02. Tried to bounce up from the 18 day (27.02) today, but not much action. Still riding positions as long as support holds and looking for the momentum to continue into the split.

RYL ($112.20; -1.90): Splits 2:1 effective 5-31-02. The momentum stalled and RYL sold back to the 10 day to close as volume increased slightly, but remained below average. Overall the stock is holding within the recent consolidation, so we will see if that continues through the split.

SRCL ($68.01; -0.59): Splits 2:1 effective June 3. Volume has continued to drop as SRCL briefly tested through the 50 day (67.12) today. It did pull up to close, so we will see if it can hold on here. The aggressive can look for a move over 70.20, with August $65 calls to buy (URL HM).

ALC ($37.97; +0.02): Splits 2:1 effective 6-4-02. Yet another doji today, the third in a row as ALC hold over prior high an the 10 day MVA (37.37). Holding positions, and the aggressive can play a move over 38.80, with stock.

IFIN ($75.42; -0.03): Splits 2:1 effective 6-17-02. Yet another intraday test of the 50 day (74.66), but IFIN pulled back up to close. As we've noted, IFIN often shows rather choppy action before a solid move, but it may take some a session or two to set up the aggressive play: a move over 77, with July $75c to buy (FLQ GO).

STJ ($84.00; -0.94): Splits 2:1 effective June 29. Still in the uptrend, moving on light volume as it pulled back today toward support of the 18 day MVA (83.44). Looking for a hold and continued trend. On a hold of the 18 day, we can look at a play on a bounce. Target: 93

BER ($58.64; -1.01): Splits 3:2 on or about July 3. Continuing to move in something of an ascending wedge pattern, today falling out of its lateral consolidation of dojis, and closing just over the rest of its 50 day MVA (58.30). Watching this support carefully as a breach will take it out of pattern of higher lows. If it can hold, we are looking for the upward swing to set up the move over the pattern high of 61.20 on volume of 160k, with October $55c to buy (BER JK - 62 OI).

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 ASD, BBBY, CYN, ETH, ETN, EXPD, GNSS, GOSHA, INVN, KRB, MGA, MMM, MTG, PII, RCII, RUS, STI, TGH and TGIC.

AHC ($83.17; +0.02): Little change today as AHC tested back through the 10 day (82.58) intraday before pulling up to close with a doji over that support. Volume held steady but remained below average. Still looking for AHC to hold the 81-82 range and for the uptrend to continue. Still holding existing positions as long as support holds, and we will see if it can set up a bounce from the 18 day.

CAKE ($39.01; -0.76): Gave up the 50 day (39.35) today as volume increased, but remained below average. It did pull up of the intraday low of 38.71, so we will see if it can catch itself and can set up a recovery. Looking weak, but has been a strong stock. Former pattern highs (double bottom) at 38.

DIAN ($62.05; +0.71): Tapped toward the buy point for a new put (below the up trendline at 60), but rebounded again on light volume (114k). Still need to see a move below 60 on average (293k) or better volume, with August $70p to buy (UID TN - no OI as yet).

FITB ($64.88; -0.71): Hit the buy point again today. Looking to continue riding existing positions to the initial target of 62.50.

KLAC ($55.01; +0.58): Could not manage a move today, gapping up slightly on lower volume (9.4m; avg. 11.8m), showing another doji. It held the 200 day MVA (52.84) Friday, and that level continues to show strong support. We were looking KLAC as an aggressive trading play, but did not get the move.

KSS ($73.93; -1.19): Tested the 50 day MVA at its low of 72.90 today, recovering today to close. It is back below the April highs, but we are looking for KSS to hold support here and set up.

MEG ($64.54; -0.76): Did not get the split announcement, and MEG continues to flirt with its 50 day MVA, today closing on that support. The aggressive play remains a move over 67 with above average volume. Stock only

MHK ($67.00; -1.30): A strong breakout move last week, but it has pulled back. It is still trying to hold the prior highs at 67-68, closing today on the 18 day MVA. Rather low volume on the retreat, but we do not want it to bleed through this level. Holding positions as it holds support. It will have to show us it can hold before we look at new positions.

THC ($72.03; +1.45): Announced a 3:2 stock split, effective June 29! After its solid move up, THC has drifted back, and is consolidating over its 50 day MVA (69.97). Looking for a hold of support, and the aggressive play a move over 73 on above average volume (1.8m; down today at 916k), with stock and/or August $70c to buy (THC HN).

WEN ($36.51; -0.59): Pulled back some more today, but volume was light and WEN is still over the 50 day (36.23). Looking for the stock to hold and set up a bounce play, and continue its trend along the short-term MVA's.

POST SPLITS WATCHLIST: Watching ABM, AMAT, ANN, CHBS, CHS, COCO, DF, FAST, FULT, GTK, ICUI, MCHP, OPTN, PFCB, SONC, SU, UOPX, WTNY, WTSLA and ZRAN.

ACS ($55.70; -0.66): Holding up, and could be forming a choppy double bottom with handle pattern. We will let it set up some more.

APOL ($35.35; -0.39): Gave up the 50 day Wednesday, and has hung on with dojis under that level the last two sessions. Protecting positions from a strong drop.

BBY ($46.50; +0.40): Split 3:2 effective 5-13-02. Bounced a bit today, but only managed a doji on continued low volume. Still targeting 44.25 on this put play.

JEC ($38.95; -0.24): Split 2:1 April 2. Holding the 50 day now (38.47) and past highs. A decent test, and on a move back over 40 (short-term MVA's) with above average volume (213k), a chance to add to stock holdings or play September $35c to buy (URH IG).

LLL ($61.81; -1.69): Split 2:1 effective 5-21-02. Gapped down and continued, but still closed above the 50 day MVA (61.25). Volume remained below the average, so we will see if it can hold the key support and set up again.

PRHC ($24.12; +0.19): Split 3:2 effective 5-1-02. The handle to the double bottom is extending, drifting back up after having tested the 50 day (23.04). Volume remains very low, not sufficient for aggressive positions. We will see if it can set up better.

STZ ($27.38; -0.05): Split 2:1 effective 5-14-02. Still consolidating under the 50 day MVA (28.03), today showing a doji on higher volume. Still looks like it could give in to selling and drop through 27 on continued strong volume, with July $30p to buy (STZ SF).

WLP ($71.62; +0.62): Has made a strong recovery back over the 50 day MVA (69.11). Still could fall, but not a play at the moment.

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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