us stock market, successful investing

Free Stock Split Email Notices       Investing Q & As       Glossary

- Impressive recovery as investors sort through more news and cover ahead of any weekend surprises.
- Jobs report impressive in its weakness.
- Energy recession seems baked in the cake if no further stimulus for business investment.
- Indexes have set up a short double bottom to try and start something much bigger.
- Subscriber Questions.
See full story.

Try "The Daily" with no risk for 2 weeks!

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

ANPI (Angiotech Pharmaceutical--$40.2; +1.81; optionable): Drug manufacturer.
Company Profile
STATUS: Breakout. In a defensive market drug and medical stocks are considered safe havens, and we have seen these stocks form up and start good moves. ANPI had been in a serious downtrend for a year, but in late February it broke that downtrend, tested that break in early March with a move down to the 18 day MVA (37.90), and then blasting higher Friday on a big volume surge. We really like to see successful breakout tests as they show the stock has plenty of support to survive some selling on post-breakout profit taking as well as drive it back up. Solid move and we are looking to get on board.
Volume: 291.226K Avg Volume: 103.736K
BUY POINT: $40.33 Volume=156K Target=$45.85 Stop=$37.96
POSITION: AUJ FH - April $40c (55 delta) &/or Stock.

Click here for more information on our Stock Split Report!

Not too long ago, a leading online financial media provider carried the sub-headline to its IPO story: “If five big IPOs materialize, more than $1 billion in fees could be up for grabs on Wall Street.”

Now that’s enough to catch anybody’s eye.

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