stock split, stock research

Begin Part 3 of 4

NVDA (Nvidia--$81.64; +2.83; optionable): Semiconductor. Forecast to announce a split May 22 after the close with earnings.
http://biz.yahoo.com/p/n/nvda.html
BACKGROUND: The company last announced 5-16-00 after the close with earnings. Price was at $94, but the stock rose $8.74 that day in anticipation.
STATUS: NVDA battled back today, reaching up to 85 before pulling back to close between its 18 and 10 day MVA's (81.27 and 82.44, respectively). The recent high from which it rather abruptly fell last week was 95.28, but we will see if the stock can hold a move back over the 10 day and stay there, consolidating for a run back up at its high as we go toward the forecast. It was leading today, and we like what we saw.
BUY POINT: Aggressive In a tech rally, a move back over 84 on increased volume (up to 5.2 million today; average 5 million).
POSITION: Earnings play. Stock and/or June and September $80 calls to buy (RVU FP and RVU HP).

OMC (Omnicom--$89.75; -0.14; optionable) Wildcard Forecast to announce a split on 5-22-01 in conjunction with its shareholder meeting.
http://biz.yahoo.com/p/o/omc.html
BACKGROUND: Last announced a split on 12-16-97 at stock price of $70. The annual shareholder meeting is scheduled for 5-22-01 at 10:00 ET at which time no additional shares will be authorized. The company has sufficient shares for a 2:1 split.
STATUS: The stock formed a cup pattern with a little double-bottom configuration in March-April, and since has pulled back into a handle. It reached up toward the handle high of 92.70 today, hitting up to 92.50 before retreating back to close. Volume was higher than we have seen of late, coming in about average at 1.05 million. Trying to make a move and holding strong over its 10 day MVA (89.65), so we will see if it can break out as we head into the forecast.
BUY POINT: Breakout 92.82 on volume of 1.5 million.
POSITION: Both: Stock and/or July $90 calls to buy (OMC GR).

CEC (CEC Entertainment--$50.31; -0.04; optionable): Forecast to announce a split on 5-22-01 in conjunction with earnings.
http://biz.yahoo.com/p/c/cec.html
BACKGROUND: Last announced a 3 for 2 split on 6-24-99 at a stock price of $40.
STATUS: Another stock we are looking at for an announcement next week, and it is holding on strong now over its 10 day MVA (49.86) after rebounding from a bit of a fall from its high of 53.70. The stock had made a strong, gapping breakout move in mid-April, and held support before closing that gap on last week's test. The move back up was strong, and the stock has consolidated on lower volume over the 10 day (down to 135,100 today; average is 214,500). We will see if it can make a strong move off of today's doji. Care with positions, diligently using stops.
BUY POINT: Aggressive A strong move up on increased volume. Breakout Over 53.70 on above average volume.
POSITION: Earnings play. Aggressive Stock and/or June and September $45 calls to buy (CEC FI and CEC II low open interest for both options, however). Breakout Stock and/or June and September $50 calls to buy (CEC FJ and CEC IJ).

ADVP (Advancepcs--$60.32; +0.78; optionable): Health services. We are working on a date for this one.
http://biz.yahoo.com/p/a/advp.html
BACKGROUND: Last announced a 2 for 1 split on 10-12-99 at a stock price of $50. The annual shareholder meeting was on 12-7-00 at which time no additional shares were authorized. The company does not have sufficient shares for a 2 for 1 split, but does have sufficient shares for a 3 for 2 split.
STATUS: ADVP has been moving laterally since breaking from a recent consolidation range, holding over the highs of that range and its 10 day MVA (60.16). The stock showed a doji today as volume continued to be low at 561,500 (average 879,000). From this consolidation ADVP could be ready to make another strong jump; however, we will need to see a spike in volume on a move. Volume has been low on the most recent attempts to jump out of the pattern.
BUY POINT: Aggressive Over 62.50 on above average volume.
POSITION: Stock and/or June $60 calls to buy (QVD FL).

FDC (First Data--$64.71; -0.34; optionable): Working on a forecast date. Earnings were announced on 4-12-01.
http://biz.yahoo.com/p/f/fdc.html
BACKGROUND: Last split was a 2 for 1 on 11-18-96 at a stock price of $80. The annual shareholder meeting was on 1-11-01 at which time authorized shares were increased. The company has sufficient shares for a 2:1 split.
STATUS: FDC has tightened down in its pattern but remains above its breakout point of its former saucer pattern (64), showing consecutive loose dojis in the range of its short-term MVA's (10 day at 65.31). It looks as if it is forming a double handle. The pullback needs to hold here; it started the retreat from its high of 67.90. If it can hold here we will look for the stock to push back up and try a new high.
BUY POINT: Breakout Over 67.90 on above average volume (1.85 million; today 1.35 million). Aggressive After holding here, a move back over 66 on stronger volume near the average.
POSITION: Breakout Stock and/or August $65 calls to buy (FDC HM). Aggressive Stock and/or August $60 calls to buy (FDC HL).

LEN (Lennar--$42.73; -0.58; optionable): Materials and construction. Forecast to announce a split on 6-19-01 in conjunction with earnings. At this time the company cannot confirm this date.
http://biz.yahoo.com/p/l/len.html
BACKGROUND: Last announced a 3 for 2 split in 1994 at a stock price of $33. The annual shareholder meeting was on 4-3-01 at which time no additional shares were authorized. The company has sufficient shares for a 2 for 1 split.
STATUS: Since breaking from a saucer pattern in March, the stock pulled back and has established a trendline as it moves back up. It has made a new high on the run, hitting 46.69 at its intraday high last week but closing way off of that level and since then turning back down below the trendline (at 45). Today the stock closed back below its 18 day MVA (43.16), tapping near recent pattern lows at 42 intraday. Not an encouraging move, so we will see if LEN can hold 42 and manage a move back up. It could take a little time, but there is plenty before the announcement.
BUY POINT: Aggressive A move over 45.25 on increased volume (today 705,900; average 786,000).
POSITION: Stock and/or August $40 calls to buy (LEN HH).

CORS (Corus Bankshares--$51.40; +0.19; no options): We are working on a new date.
http://biz.yahoo.com/p/c/cors.html
BACKGROUND: Last announced a split in 1995 at stock price of $44. The annual shareholder meeting was on 4-26-00 at which time no additional shares were authorized. The company has sufficient shares for a 2 for 1 split.
STATUS: Banking. Not looking too good at this point, but it is holding on in the lower levels of its recent consolidation range. It has been all over the place recently, teasing us a bit with a tight pattern in recent weeks, but is not showing any strength. However, it made a move up to 52 Monday on a big volume surge, but could not hold it, and today showed lower volume on a doji on its 10 day MVA (51.35), but the 19,500 volume was more than we have seen lately with the exception of Monday (average 21,400). We will need to see a break over recent highs to be interested.
BUY POINT: Over 52.50 on above average volume. Breakout of the pattern: 53.88.
POSITION: Stock.

PRE-SPLITS REMAINING PLAYS: With these stocks we keep an eye out, waiting for the start of a pre-split run.

CHS (Chico's Fashion--$48.13; +1.53; optionable): Declared a 3:2 stock split, effective May 17.
http://biz.yahoo.com/p/c/chcs.html
STATUS: Made a little move today going toward the split, jumping out of its series of dojis. A nice little move, and we will see if it can do some more going into the split. Protect positions carefully as we are wary of a reversal, especially as the stock is in a fourth run up the trend.
BUY POINT: Aggressive A continued move up from here.
POSITION: Stock and/or June $45 calls to buy (CHS FI under 100 open interest).

IVX (Ivax--$35.50; -0.90; optionable): Generic drugs. Splits 5:4 on May 21.
http://biz.yahoo.com/p/i/ivx.html
STATUS: The stock broke from a cup pattern in late April, making a rather abrupt climb up the right side of that base, but pulled back early this month in a ragged handle. It tried to hold in the range of a February consolidation, but today dropped back below its 18 day MVA at (35.80). It needs to stop the drop (50 day MVA at 34.55) with the split next week. Does not look promising, so we will see if it can turn it on the next couple of days.
PLAY: Aggressive A move back over 36, with stock and/or June $35 calls to buy (IVX FG).

FIC (Fair Isaac--$71.88; -2.10; no options): Splits 3:2 effective June 4.
http://biz.yahoo.com/p/f/fic.html
BACKGROUND: On 6-25-95, FIC issued a 100% stock dividend equivalent to a 2 for 1 split. The price at the time of the dividend was $56. The annual shareholder meeting was held 2-6-01 at 9:30 PST. Authorized shares were not increased, but the company has sufficient shares for a 2 for 1 split.
STATUS: Business services. Has been in a promising, tight consolidation at the top of a flying plateau, but dropped back today to close just below its 10 day MVA (72.25). The fall was on strong, much higher volume of 175,300 (average 75,600), and it could be that FIC is not ready to make another strong move. It has been moving very well, breaking out in late April, but it could need to rest a bit. We will see if it can hold on its 18 day MVA (70) and consolidate again for a move up.
BUY POINT: Aggressive After a successful test of 70, a move back up on continued strong volume.
POSITION: Stock only.

APPB (Applebee's--$43.20; -0.10; optionable): Announced a 3:2 stock split last week! It is effective June 12.
http://biz.yahoo.com/a/appb.html
STATUS: Has been looking good in a strong, steady uptrend and last Thursday finally made the split announcement. The stock has pulled laterally now, with several dojis and low volume characterizing the last few sessions. It is holding its 10 day MVA (42.78), showing a doji after hitting a new high at 44.01 intraday. Does not look bad, but we are wary as it already has made four runs on this run since breaking out in late March. We will see if it can hold the 10 day and make a move back up to a new high, carefully protecting positions.
BUY POINT: A move over 44 on above average volume (401,300; today 213,700), with stock and/or August $40 calls to buy (AQB HG).

CONTINUING CANDIDATES REMAINING PLAYS: 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.

IGT (International Game Technology--$53.50; -0.25; optionable):
http://biz.yahoo.com/p/i/igt.html
BACKGROUND: Based upon our research, it does not appear that IGT has ever announced a split. The annual shareholder meeting was on 3-5-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: The stock broke from a small cup with handle in April but after hitting 59 it has gradually pulled back, closing the gap it made on the breakout move. The handle was not a good one, but now it is forming a better one with a descending angle. Volume has been low, as we would like in such a pattern, but today we got a spike up to 783,200 (average 685,000) as the stock showed a doji. It could be ready to make a move back up in the pattern.
BUY POINT: Aggressive Over the 10 day MVA (54.51) on increased volume. Breakout: 57.88
POSITION: Aggressive Stock and/or July $50 calls to buy (IGT GJ).

RJR (RJ Reynolds--$59.00; +0.28; optionable): Tobacco.
http://biz.yahoo.com/p/r/rjr.html
BACKGROUND: Based upon our research it does not appear that RJR has ever split its stock. The annual shareholder meeting is scheduled for 4-25-01 at 9:00 ET at which time no additional shares will be authorized. The company has sufficient shares for a 2:1 split.
STATUS: Has fallen back after having made a nice breakout move from a saucer with handle pattern. It gapped down Monday and is holding under its 18 day MVA (58.90) with consecutive dojis. It has some support at 58 from mid-saucer highs), so we will see if the stock can rebound and try another move toward its breakout high of 62.70.
BUY POINT: Aggressive A move back over 61 on above average volume (434,800; today down to 231,800).
POSITION: Stock and/or August $55 calls to buy (RJR HK).

BBT (BB&T--$36.22; +0.37; optionable): Banking. Did not get an announcement with earnings.
http://biz.yahoo.com/p/b/bbt.html
BACKGROUND: The company has declared 21:20 splits in 1996 and 1997. The annual shareholder meeting was on 4-25-00 at which time no additional shares were authorized. The company has insufficient shares for a 2 for 1 split, but just enough for a 3:2 split.
STATUS: Made a strong move recently over April consolidation highs, but has pulled back to test those highs. It held on at the 18 day MVA (35.90), and pushed back up from that level a bit today. Volume remains quite low, however, at 423,400 today (average 817,700). Not looking too bad, but for positions we want to be convinced with a strong move back up that takes out the recent high on the move, at 36.74.
BUY POINT: A move over 36.74 on above average volume.
POSITION: Stock and/or June $30 calls to buy (BBT FG).

CBH (Commerce Bancorp--$67.79; +0.68; optionable):
http://biz.yahoo.com/p/c/cbh.html
BACKGROUND: Last announced a 5 for 4 split on 6-29-98. The stock price was $54.63. The annual shareholder meeting was on 6-20-00 at which time no additional shares were authorized. The company has insufficient shares for a 2 for 1 split.
STATUS: It was a steady but unspectacular move up the right side of its cup base, and consequently the stock struggled against the resistance of the left side of that pattern. It has fallen back to form a handle, and is holding just under its 10 day MVA (68.04). Volume was low on the drop back and remains that way (80,500; average 155,800), so we will see if it can hold on and make a move back up. Not looking particularly strong, but could still do something with this pattern.
BUY POINT: Breakout: Over 71 on volume of 230,000.
POSITION: Stock and/or June $65 calls to buy (CBH FM).

End Part 3 of 4

stock split
stock research