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Free Stock Split Email Notices       Investing Q & As       Glossary

- Few fireworks on options expiration.
- Major indexes fail again to take out the 50 day MVA while smallcaps post a solid advance.
- Michigan sentiment lower than expected, but stabilizing.
- Pullback to near term support before another run attempt.
- Subscriber Questions.
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2) Stock Splits

Playing stock splits can be very profitable, but it takes know-how.

Our stock split service focuses on three main types of plays:

1) pre-announcement (where we forecast an upcoming split prior to the company making the announcement); 2) pre-split (these plays are made in the days leading up to the actual split day); and 3) post-split plays (plays made after the actual stock split where the stock is showing continued or renewed strength).

We play pre-split plays as short-term plays. We get in when the technical indicators show us things look right, grab as much as we can, and get out, always being conscious of resistance and support. These stocks are highly volatile at this time, and can turn on you quickly. Don’t let good profits disappear. Watch for turns, especially when a stock trades in a wide range and finishes off its high. That is a sign these stocks often give you that they are running out of steam. We usually get out and ask questions later. We can always get back in. We like to play in the money calls, preferably two strike prices in the money as this usually gives us a greater delta (the percent an option will mover versus the stock’s movement). We prefer deltas of 75 or better. This means if the stock moves 1 point, the option should move three-fourths of that point. That means up or down.

Remember, wait to see the stock start to move up. Don't just blindly make a play and don’t try to guess tops and bottoms. We can look at indicators to give us a clue as to what will happen, but we need the stock to confirm it for us. Here's a pre-split play to watch and our current analysis.

Chart by StockCharts.com

TSCO (Tractor Supply--$61.07; +0.06; no options): Urban ranchers. Splits 2:1 on 8-20-02.
Company Profile
STATUS: Breaking over the 50 day MVA (60.47). Tried to start the move Friday and we may have got a bit overeager jumping in, but near the split date with a bit of decent action Friday. It ended up showing a doji and holding above the 50 day MVA. Looks ready for a pre-split move into the split Tuesday that can give us a good run. This is also one we think buyers will come into after the split occurs. It is making a lot of money but is rather pricey on an absolute basis for many investors. We have seen many economically sensitive stocks run right into and through their splits, and TSCO has set up a two-week consolidation in a narrow range to prepare for it.
Volume: 81.5K Avg Volume: 137.041K.
BUY POINT: $61.55 Volume=202K Target=$70 Stop=$57.24.
POSITION: Stock (no option chain).

Click here for more information on our Stock Split Report!

A slew of Russian companies, inspired by a recent successful Initial Public Offering by dairy firm Wimm-Bill-Dann, is rushing to do the same in a flashback to 1997 when issuing a Eurobond was the fashion.

The 1998 economic crisis killed the Euromania. And those who managed to make issues before the crisis had problems trying to service their debts after the rouble was devalued.

(This IPO story is continued on our website in the IPO Forum.)