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us stock market, stock watch
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Read this report online in full color with graphs at
http://www.investmenthouse.com/weekend/010503.htm
1) MARKET SUMMARY
Stocks buck some bad news, avoid a sell off.
- Market holds Thursday rally in spite of earnings warnings.
- Bush stimulus plan to be announced. An opportunity missed?
- Market rebound last week helped but did not change the market character.
- Subscriber Questions.
http://www.investmenthouse.com/1weekendmarketsummary.htm?123 "> Click here or on link for our full Weekend Market Summary
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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.
FRX (Forest Labs--$106.07; +6.07; optionable): Drugs
STATUS: Tested 50 day MVA. Exploded higher Friday with a big gap as expected on the good earnings alert. The gap made it very hard to enter. It is interesting to note that the move almost completely reversed the gap down at the first of December. What we would prefer to see is a breather here, a day or two of rest and then the start back up. That would be the best entry point.
Volume: 3.227M Avg Volume: 1.952M
BUY POINT: Pullback to 104 to 105. Volume=3.1M Target=$115 Stop=$98
POSITION: FHA BS - Feb. $95c (63 delta) and/or Stock.
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Learn more about our Stock Split Report - Forbes.com Best of the Web Online Edition says: ". . . seek out the Stock Split Report . . ."
http://www.investmenthouse.com/1stocksplits1.htm
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3) Technical Play
SOHU (Sohu.com--$7.08; +0.52; no options): Internet information provider
STATUS: Breakout. SOHU is one of the group of internet stocks that have been surging since October. It has formed the current 6-week cup base showing accumulation at 3 accumulation weeks to 0 distribution weeks (7 to 0 since September), and Friday provided a solid, above average volume breakout to a two year new high. Money flow matches the stellar accumulation. Looking for more here as these have been providing us great returns.
Volume: 802.113K Avg Volume: 535.863K
BUY POINT: $7.15 Volume=800K Target=$9 Stop=$6.65
POSITION: - Stock (no option chain).
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Learn more about our Technical Trader Report!
http://www.investmenthouse.com/1tech1.htm
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4) Covered Call Play
LEH - Lehman Brothers Holdings, Inc. is currently trading at $55.8. The February $55 Calls (LEHBK) are trading at $3.40. That provides a return of about 5% if LEH is above $55 on expiration Friday in February.
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Learn more about our Covered Calls Service!
http://www.investmenthouse.com/1coveredcalls1.htm
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5) IPOs
Technology security firm Spectra Systems Corp. on Thursday withdrew plans for an initial public offering of as much as $60 million, citing volatile market conditions.
The Providence, Rhode Island-based company withdrew an IPO registration statement originally filed with the Securities and Exchange Commission in Sept. 2002. It had not set the size or price of the proposed offering.
This IPO column is continued at:
http://www.investmenthouse.com/1ipo.htm
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BOOK STORE SPECIAL OFFERS!
We are now offering "Special Offers" each week in our Book Store! You will not find these specials on our web site. They are only available by clicking the link below in this Weekend Newsletter!
http://www.investmenthouse2.com/cntdir.asp?name=BookStoreSpecials
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The foregoing is commentary for informational purposes only. All statements and expressions are the opinions of Online Investment Services, LP., or Split Ventures, Ltd. This information is 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 the related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolios of writers for this issue may, in some instances, include securities mentioned herein and on the related 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. No one associated herewith receives compensation in any manner from any of the companies that are discussed in this newsletter or on the related websites.
Copyright 1997 - 2003 by Online Investment Services, LP. - All Rights Reserved.
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