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us stock market, stock split
Begin Part 2 of 3
THE PLAYS:
Good movers: WHI moving well. AZO tanking as we wanted; JILL shooting up; ESRX, BGEN, CYMI tanking on the put plays as well.
BONUS PLAYS:
Downside revisited:
JCI (Johnson Controls--$80.51; -1.13; optionable): Auto parts
http://biz.yahoo.com/p/j/jci.html
STATUS: Put. Tested the 50 day MVA Monday on the high and closed right at the 200 day MVA (82). Tuesday it gapped lower and tried to overtake the 200 day, but failed on the moved, closing at the session low. Volume ramped up to above average levels on the reversal. Looking weaker and ready to resume the fall we were anticipating last week.
Volume: 519.9K Avg Volume: 468.909K
BUY POINT: $80.11 Volume=500K Target=$76.05 Stop=$85
POSITION: JCI TQ - Aug. $85 put (-65 delta) OR JCI VR - Aug. $90 put (-70 delta)
http://www.investmenthouse.com/cs/jci.html
ROOM (Hotel Reservations--$44.83; -0.68; optionable): Hotel reservations on the net
http://biz.yahoo.com/p/r/room.html
STATUS: Put. ROOM showed a tight doji Tuesday below the 200 day MVA (45.97) after closing well off the high Monday while failing to take out the 200 day. Volume was lower and still below average. Looking for the stock to turn back here at double resistance from the 200 day and prior price lows.
Volume: 441K Avg Volume: 927.954K
BUY POINT: $44.35. Volume=950K Target=$38.85 Stop=$46.25
POSITION: URD TJ - Aug. $50 put (-70 delta)
http://www.investmenthouse.com/cs/room.html
NEW PRE-ANNOUNCEMENT
CLE (Claires Stores--$22.14; -0.06; optionable): Forecast to announce a split on 8-22-02 in conjunction with earnings. At this time the company has not specified a time for the release.
BACKGROUND: Last announced a 3:2 split on 8-14-96 in conjunction with earnings at a price of $30. The annual shareholder meeting was on 6-27-02 at which time no additional shares were authorized. The company has sufficient shares for a 2 for 1 split.
http://biz.yahoo.com/p/c/cle.html
STATUS: Apparel. CLE is moving through an 11-week cup with handle base that is the tail end of a larger base dating back to May 2001. The retail sector is looking very good with solid earnings pre-announcements, and though we are early on this one as far as the forecast date and the price. Still, it is in a good pattern, and on a breakout this would be a good entry point going into the forecast split date.
Volume: 243.6K Avg Volume: 213.636K
BUY POINT: $23.15 Volume=320K Target=$27.85 Stop=$21.45
POSITION: CLE KD - Nov. $20 call (72 delta) and/or stock
http://www.investmenthouse.com/cs/cle.html
OTRKB (Oshkosh Truck--$58.75; -0.86; no options): Forecast to announce a split on 7-25-02 before the market opens in conjunction with earnings.
BACKGROUND: Last announce a 3 for 2 split on 7-26-99 in conjunction with earnings. The stock price was $55. The annual shareholder meeting was on 2-8-02 at which time no additional shares were authorized. The company has sufficient shares for a 3 for 2 or 2 for 1 split.
http://biz.yahoo.com/p/o/otrkb.html
STATUS: Cup w/handle. OTRKB is working through a somewhat volatile base as it filed an 8K in June announcing some changes in accounting and financial statements. In the market hysteria, it was pounded down $8. The next day it shot back up when saner heads prevailed. It has since moved through the rest of the 8-week base. A breakout from the base would put OTRKB at a new high. Not a bad entry point for a split play.
Volume: 102.2K Avg Volume: 89.863K
BUY POINT: $62.55 Volume=135K Target=$78.55 Stop=$57.55
POSITION: Stock (no option chain)
http://www.investmenthouse.com/cs/otrkb.html
PRE-ANNOUNCEMENT PLAYS
CHBS (Christopher Banks--$43.49; +0.09; optionable): Forecast to announce a split on 7-17-02 in conjunction with a board meeting or on 7-31-02 in conjunction with its annual shareholder meeting. The company will not confirm the board meeting date, but based upon our research this is the date for the meeting.
http://biz.yahoo.com/p/c/chbs.html
BACKGROUND: Last announced a 3 for 2 split on 11-14-01 in conjunction with a board meeting. The stock price was $38.76. The annual shareholder meeting is scheduled for 3:00 CT on 7-31-02 at which time no additional shares were authorized. The company has sufficient shares for a 3 for 2 split.
STATUS: Ascending wedge. Moving well the past week, rising on strong, above average volume Monday and Tuesday. CHBS got an early buy from us Tuesday on the heels of its strong move Monday, but then it reversed and closed at the session low with a doji on the candlestick pattern. That can indicate a change in momentum, and we do not like to see them just as a stock is breaking out as it can indicate a reversal could be coming. It still held positive on the close, a small plus. We want to see it hold above 42 on any testing of the move, but would really prefer it hold the line here on the breakout and continue up. It has very good accumulation at 3 to 1 during the wedge.
Volume: 585.6K Avg Volume: 371.363K
BUY POINT: New positions: $44.05 Volume=606K Target=$52.35 Stop=$39.50
POSITION: URH IG - Sept. $35c (81 delta) and/or stock
http://www.investmenthouse.com/cs/chbs.html
HUG (Hughes Supply--$42.98; +0.13; optionable): Plumbing supply. Still no firm date on this one yet, but it is moving quite well.
BACKGROUND: Based upon our research it does not appear that HUG has ever split its stock. The company has sufficient shares for a 2 for 1 split.
http://biz.yahoo.com/p/h/hug.html
STATUS: Cup w/handle. Drifting back toward the 18 day MVA (42.25) after stalling at 44. Nice pullback as volume falls well below average. This is decent action at least after the breakout reversed last week. Now we let it consolidate a bit more above the 18 day MVA, and look for another move higher on some strong volume.
Volume: 99.4K Avg Volume: 184.045K
BUY POINT: New positions at 44.95 (original positions $43.09). Volume=250K Target=$52 Stop=$39.50
POSITION: HUG JG - Oct. $35 call (82 delta) HUG JH - Oct. $30 call (66 delta)
http://www.investmenthouse.com/cs/hug.html
URBN (Urban Outfitters--$34.41; -0.1; optionable): Forecast to announce a split on 8-15-02 before the market opens in conjunction with earnings.
BACKGROUND: URBN last split its stock 2 for 1 in June 1996. At the time of the announcement the stock price was $35. The annual shareholder meeting was on 6-25-02 at which time no additional shares were authorized, but URBN has sufficient shares for a 2 for 1 split.
http://biz.yahoo.com/p/u/urbn.html
STATUS: Testing the 50 day MVA. Retail apparel. URBN tried to make a move higher on the good retail earnings preannouncements, rallying on above average volume. It could not hold the high (35.50), however, showing a doji on the close. Again, this pattern has a bit of a toppy look to it. It needs to blast off through 35 on much stronger volume. It looked as if it was going to give the move Tuesday, but did not have the muscle.
Volume: 274.8K Avg Volume: 262.227K
BUY POINT: $35.55 Volume=395K Target=$42.75 Stop=$31.75
POSITION: URQ LF - Dec. $30c (72 delta) and/or stock.
http://www.investmenthouse.com/cs/urbn.html
PRE-SPLITS BEST PLAYS: Remember, we try to grab Pre-Splits as they break out of good patterns or as they start a run right before the split. Not looking for home runs, but looking for those $3 to $4 moves running into the split, watching for topping signs and potential resistance. Not huge money, but it can be very steady. We set our initial stops at the 7-8% range below the purchase price (or just below obvious support), and move them up on a move to preserve our profits.
Upside:
ACMR (A.C. Moore--$45.59; +0.59; no options): Splits 2:1 on 8-1-02
http://biz.yahoo.com/p/a/acmr.html
STATUS: Continued its move up off the 50 day MVA on more above average volume. Not a bad move, but it has some minor resistance at 46 that turned it back on the high Tuesday. Need to see it move over this with some continued stronger volume. Aggressive positions can be taken on a strong move over 46; then on the breakout from the cup with handle pattern that has formed.
Volume: 153.1K Avg Volume: 101.045K
BUY POINT: New positions: Aggressive: 46.10. Breakout: 48.05 (original buy point $44.29). Volume=100K Target=$48.55 (initial). Breakout: 48.01. Stop=$41.75
POSITION: Stock (no option chain)
http://www.investmenthouse.com/cs/acmr.html
ANFI (American National--$16.28; +0.40; no options): Splits 5:4 on 7-19-02
http://biz.yahoo.com/p/a/anfi.html
STATUS: Continued its move off of the 50 day MVA Tuesday, on rising, above average volume. Looking solid on this move. New positions can still be taken here.
Volume: 98.6K Avg Volume: 74.045K
BUY POINT: $16.04 Volume=100K Target=$19.25 Stop=$14.74
POSITION: Stock (no option chain)
http://www.investmenthouse.com/cs/anfi.html
MYE (Myers Industries--$16.49; -0.06; no options): Rubber and Plastics. Splits 5:4 on 9-3-02
http://biz.yahoo.com/p/m/mye.html
STATUS: Cup w/handle. Again, a long way from the split, but the pattern continues to improve. Tuesday it showed a doji that tested the simple 50 day MVA on the low (16.29) and then closed right on top of the 18 day MVA. Volume was lower on the test lower in the handle. Looks ready to make the move higher.
Volume: 17.7K Avg Volume: 47.681K
BUY POINT: $17.85 Volume=71K Target=$21.55 Stop=$16.25
POSITION: Stock (no option chain)
http://www.investmenthouse.com/cs/mye.html
CONTINUING CANDIDATES
Downside
ACDO (Accredo Health--$43; -0.03; optionable): Health services
http://biz.yahoo.com/p/a/acdo.html
STATUS: Put. Tapped the 10 day MVA on the high (44.59) and reversed, giving back the gain on rising, above average volume. Looks ready to roll back down here.
Volume: 1.188M Avg Volume: 777.045K
BUY POINT: $42.95 Volume=800K Target=$39.05 Stop=$47.50
POSITION: DZU TJ - Aug. $50 put (-70 delta)
http://www.investmenthouse.com/cs/acdo.html
POST-SPLITS BEST PLAYS:
Upside
FNF (Fidelity National Financial--$28.40; -0.57; optionable): Title Insurance
http://biz.yahoo.com/p/f/fnf.html
STATUS: Put. FNF is heading the lower now. Double topped in late June and Tuesday broke below the 50 day MVA on rising, above average volume. Some support at 28, but it looks to drop to near 25 on this move. Quick and fast.
Volume: 654.9K Avg Volume: 542.545K
BUY POINT: $28.19 Volume=650K Target=$25 Stop=$30
POSITION: FJFTG - Aug. $35 put (-85 delta)
http://www.investmenthouse.com/cs/fnf.html
End Part 2 of 3
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us stock market
stock split
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