stock split, stock research

Begin Part 3 of 4

LEN (Lennar--$42.95; +0.05; 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: Showing weakness now as it has given up its up trendline (connecting lows from mid-March to early May) and recent support at the 18 day MVA (43.11). The stock had made a nice, steady move up after testing a breakout from a saucer pattern in late March, and is now struggling to hold support at early May low (42; the 50 day MVA is at 41.26). The stock reached 43.95 at its high today, but volume was weak and it pulled back down to close. We will need to see a strong recovery for positions.
BUY POINT: Aggressive A move over 45.25 on increased volume (today 651,400; average 794,300).
POSITION: Stock and/or August $40 calls to buy (LEN HH).

CORS (Corus Bankshares--$51.40; +0.10; 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. Continues in a gradually descending consolidation, holding over its 18 day MVA (51.26) as it moves in something of a pennant pattern. Volume has steadily tapered the last few sessions as the stock has been unable to hold its intraday moves up (reaching 52.10 today). 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.

CNL (Cleco--$47.11; +0.85): Utility. Splits 2:1 effective 5-22-01.
http://biz.yahoo.com/p/c/cnl.html
STATUS: Made a strong move up off of its tight consolidation over its 50 day MVA (45.82) Wednesday, but has followed it up with a couple of tight dojis. Going toward the split we will see if the stock, which has its recent high from April at 48.47, can make a final run after this rest. Has been in a rather tight range since early this year, broken in March-April by a run up to the recent high and down below 42.
PLAY: Aggressive On a move up from here, stock.

FIC (Fair Isaac--$72.76; -0.24; 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. Was in a promising, tight consolidation at the top of a flying plateau, but is hanging on now after a strong drop back on Tuesday. The stock managed to hold its 18 day MVA (70.56) for support, bouncing from that level and closing just over its 10 day MVA (72.46) today with a doji. It made quite a run before this consolidation, and it might need more time.
BUY POINT: A move over 75 on above average volume.
POSITION: Stock only.

APPB (Applebee's--$44.05; +0.32; optionable): Announced a 3:2 stock split last week! It is effective June 12.
http://biz.yahoo.com/a/appb.html
STATUS: Continues to creep upward along its 10 day MVA (43.15). Not much going on here, as the stock has been in a steady uptrend, moving over 30% in the last three months, and has already made four runs on this particular climb. Volume has increased on recent moves, but still is below average at 368,700 (average 395,600). We will see if it builds a strong consolidation here, and as we get closer to the split we will see if it can make a good move.
BUY POINT: Aggressive A move up on above average volume, with stock and/or August $40 calls to buy (AQB HG), carefully protecting positions.

SDS (Sungard Data--$61.00; -1.00; optionable): Announced a 2:1 split Monday, effective June 18.
http://biz.yahoo.com/p/s/sds.html
STATUS: Broke out of its cup with handle Wednesday, but after gapping up and hitting a high of 64.50 the stock reversed its field and pulled back on even bigger selling volume (2.15 million; average 917,300). Much of the latter part of the cup base was built on rather weak volume, and although we got a nice surge on the breakout, the heavy selling today is a concern. Sometimes happens after a big run on a split announcement. We will see if it can hold the breakout point of 60, which it tapped today at its low, and hold to consolidate a bit more before charging back up.
BUY POINT: After holding 60 on this pullback and perhaps consolidating a bit, we will look for a strong move back over 62, with stock and/or July $55 calls to buy (SDS GK).

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.

ACF (Americredit--$52.46; +2.44; optionable): Credit Services.
http://biz.yahoo.com/p/a/acf.html
BACKGROUND: Last announced a 2 for 1 split on 8-18-98 at a stock price of $35. The annual shareholder meeting was on 11-7-00 at which time no authorized shares were increased. 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: ACF has made a great move since pulling back to test its 18 day MVA (45.84). That move provided a shakeout after the stock dipped out of its lateral consolidation formed following its April breakout, and it has made four consecutive moves up as volume increases each session (up to 2.11 million today; average 895,300). It has been a remarkable run, but it is a bit too extended at the moment, so we will see if it comes back to test its recent work.
BUY POINT: A move up after a lower volume test of the 49-50 range. We would carefully protect positions on such a move.
POSITION: Stock and/or August $45 calls to buy (ACF HI).

BBT (BB&T--$36.83; -0.17; 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: Is gradually making its way back up toward the highs in its January-February consolidation range (38.25 high in late December). It bounced up in Wednesday's rally from the 18 day MVA (36.10), but eased back slightly today with a doji. Volume has not been very strong, level today at 587,200 (average 812,800), and we will need more strength on a move up for positions.
BUY POINT: Aggressive A move over 37.25 on above average volume.
POSITION: Stock and/or June $35 calls to buy (BBT FG).

CBH (Commerce Bancorp--$69.95; +0.95; 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: CBH is trying to make its way toward a breakout. It caught support on a pullback in its handle just below its 18 day MVA (67.97), and volume has finally come into play on this move up (up to 188,300 today; average 156,000). It was a steady but unspectacular move up the right side of its cup base, but is looking pretty good at the moment. Looking for a breakout.
BUY POINT: Breakout: 70.48 on volume of 230,000.
POSITION: Stock and/or June $65 calls to buy (CBH FM).

CECO (Career Education--$49.10; -0.90; no options): Did not get the announcements.
http://biz.yahoo.com/p/c/ceco.html
BACKGROUND: Last announced a 2 for 1 split on 8-1-00 in conjunction with earnings. The stock price was $57. The annual shareholder meeting is scheduled for 5-11-01 at 1:00 pm CDT at which time additional shares will be authorized. The company has sufficient shares for a 2 for 1 split without increasing authorized shares.
STATUS: CECO made a weak move from its 50 day MVA (48.50), barely clearing the 10 day (50.25) before running back again. Today it dipped down to 47.55 before pulling back up to close over support. Not an encouraging move as the stock is back in the range of April's ascending wedge, from where it broke in late April but quickly turned back after hitting 55. Still, the lower volume may just be a shakeout; we don't want to give up prematurely.
BUY POINT: Aggressive Over 52 on average or better volume (250,600; average 184,100).
POSITION: Stock only.

CHIC (Charlotte Russe--$36.75; 0.00; no options):
http://biz.yahoo.com/p/c/chic.html
BACKGROUND: Based upon our research it does not appear that CHIC has ever split its stock, but apparel stocks tend to split at this level. The annual shareholder meeting was on 2-13-01 at which time no additional shares were authorized. The company has sufficient shares for a 2 for 1 split.
STATUS: Apparel. CHIC is another stock that broke out Wednesday, but after that solid move the stock gapped up slightly and reversed after hitting as high as 38.80. Again, we will look for it to hold here, or at least at the 10 day MVA (recent support at 35.16) for a move back up with continued strong volume (up to 713,900 today; average 314,000). The pattern today indicates a drop, so holding support is key.
BUY POINT: A strong move back up after showing us that it has caught support in the 35-36 range.
POSITION: Stock.

FHCC (First Health Group--$52.90; +0.32; no options):
http://biz.yahoo.com/f/fhcc.html
BACKGROUND: Last announced a 2:1 split on 5-19-98 at a stock price of $29.57. The annual shareholder meeting was on 5-16-00 at which time no additional shares were authorized. The next annual shareholder meeting is scheduled for 5-22-01.
STATUS: Recently broke from a cup pattern (dating to December), but after gapping up to 55.15 the stock has come back to test that break twice. It is trying to move again from its 18 day MVA (50.58), but the moves are shrinking and volume rocketed up on today's loose doji (1.07 million; average 398,000). Could be the start of a move back up or turning back over, and we will see if it goes all the way back to the 18 day. It might need to consolidate a bit.
BUY POINT: Over 54 on continued strong volume.
POSITION: Stock.

GENZ (Genzyme--$107.87; +3.64; optionable):
http://biz.yahoo.com/p/g/genz.html
BACKGROUND: Last split a 2:1 in July 1996, at a price of $47. The annual shareholder meeting on 5-25-00 at which time no additional shares were increased. The company has sufficient shares for a 2:1 split.
STATUS: Biotechnology. Had been very strong, but after announcing the issuance of some convertible notes the stock abruptly dropped two weeks ago. It dipped back into the range of the high in the left side of its former cup pattern, and has made a move up the last two sessions, but volume has been weak so it is not that encouraging. The high on the breakout was 111.50. We will see if it can hold the 105 range (10 day MVA at 104.74) and consolidate for a move back up.
BUY POINT: Aggressive After holding the 10 day in a consolidation, a strong move over 108, looking for volume near the average of 2.7 million (down to 2 million today).
POSITION: Stock and/or July $105 calls to buy (GZQ GA).

IFIN (Investors Fin Services--$71.00; +0.60; optionable):
http://biz.yahoo.com/p/i/ifin.html
BACKGROUND: Last announced a 2:1 split on 5-15-00 in conjunction with a board meeting. The stock price was $82. Prior to that announced a 2:1 split on 2-18-99 in conjunction with a board meeting. The stock price was $40.76. The stock reported earnings January 11. The annual shareholder meeting was on 4-18-00 at which time authorized shares were increased. The company does not have sufficient shares for a 2:1 split.
STATUS: Has continued to gradually move down in a consolidation in the bottom of its handle to a double bottom pattern. The handle has now extended a month, and Wednesday the stock made a bit of a move off of the support of its 200 day MVA (67.16). However, after reaching 73.41 today it pulled back to close with a doji over a confluence of moving averages (10 day at 70.14). Looking for it to hold here, as it has already dropped more than we would like in this protracted consolidation. However, it is still a pattern from which we could see a solid move. The stock has some recent resistance at 75, with the handle high at 80.
BUY POINT: Aggressive A move back up on above average volume (337,500; today up to 316,600).
POSITION: Stock and/or July $65 calls to buy (FLQ GN).

GNTX (Gentex--$28.10; -0.33): No announcement, but the stock broke out.
http://biz.yahoo.com/p/g/gntx.html
BACKGROUND: Last announced a 2:1 split on 5-21-98 in conjunction with its annual shareholder meeting (the company has announced three splits with shareholder meetings). The stock price was $35. The annual shareholder meeting is scheduled for 5-16-01 at 4:30 ET at which time no additional shares will be authorized. The company has sufficient shares for a 2 for 1 split.
STATUS: GNTX broke out of its long handle (almost as long as its cup, which started in early March) Wednesday. It pulled back today, with price/volume action not being what we would like below average on the breakout, with sharply higher volume on the pullback today (624,900; average 407,700). We will see if it can hold here at 28, looking for the stock to catch its feet and make a strong move up, with volume behind it this time. A strong move up could put it right in split range.
BUY POINT: After holding 28, a strong move back up on continued strong volume.
POSITION: Stock and/or September $25 calls to buy (GXQ IE).

IGT (International Game Technology--$57.09; +1.54; 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: Made a strong bounce up from support at the 50 day MVA (53.46) Wednesday, continuing the move up today. The stock broke from a small cup with handle in April but after hitting 59 it had gradually pulled back, closing the gap it made on the breakout move. A solid handle, but today's move up was on much lighter, below average volume (634,700; average 702,500), so we will see if it can find the strength again or if it will rest.
BUY POINT: Pullback A move up on increased volume after holding the 56 range on a pullback. Breakout: 57.88 on volume of 1.05 million or better.
POSITION: Pullback Stock and/or July $50 calls to buy (IGT GJ). Breakout Stock and/or July $55 calls to buy (IGT GJ).

ITG (Investment Tech Group--$54.60; +0.08; optionable): Wildcard Forecast to announce a split on 5-16-01 in conjunction with annual shareholder meeting.
http://biz.yahoo.com/p/i/itg.html
BACKGROUND: Last announced a split on 11-19-97 at a stock price of $70, and in December 1995 at $65. The annual shareholder meeting is scheduled for 5-16-01 at 1:00 pm ET at which time no additional shares will be authorized. The company has sufficient shares for a 2:1 split.
STATUS: Made a promising move up the last few days, running from a little consolidation it formed after making a move out of a pennant pattern. Showed a topping sign today, a star doji as volume increased to 282,500 (average 227,800). Looks to be pulling back, and we will see if it can hold the 10 day MVA (52.26) for a move back up. The recent high is 57.24, the early March high. Might try to form a handle here.
BUY POINT: A move up on continued strong volume after a lower-volume pullback that holds the 10 day MVA.
POSITION: Stock and/or July $50 calls to buy (ITG GJ).

End Part 3 of 4

stock split
stock research