stock split, stock research

Begin Part 4 of 4

KMI (Kinder Morgan--$57.99; -0.63; optionable): Gas Utility.
http://biz.yahoo.com/p/k/kmi.html
BACKGROUND: Last announced a 3:2 split in October 1998 at a stock price of $50. It also split 3:2 in the $40 range in 1993. The annual shareholder meeting was on 5-9-00. We are currently unable to determine if any additional shares were increased.
STATUS: Tried to break its ascending wedge, but could not sustain the move that looked promising after solid volume kicked in Wednesday. Today saw the stock dip down near its 50 day MVA (56.22) before reversing and closing back at the 18 day (57.86), as volume came back in (865,500; average 654,100). It can maintain its pattern if it holds here, and we would still be looking for a breakout.
BUY POINT: Breakout 60.13 on continued strong volume.
POSITION: Stock and/or August $55 calls to buy (KMI HK).

MERQ (Mercury Interactive--$68.58; +1.41; optionable): No announcement today with its annual shareholder meeting.
http://biz.yahoo.com/p/m/merq.html
STATUS: As you would expect, MERQ made a strong move in the tech rally Wednesday, blasting up in its handle on good volume. It made a slight move today, resting on lower volume (3.77 million; average 5.26 million). If we get a pullback we will see if it can hold the 10 day MVA (64.26) for a run back up in a continuation of the rally. From here we would need to see a market rally and stronger volume. The current handle pullback has been a gradual drop from a recent run that hit 73.25.
BUY POINT: Pullback A move up in a strong market after a pullback that holds supot at the 10 day MVA. From here In a rally, a move back up on increased volume.
POSITION: Pullback Stock and/or July $60 calls buy (RQB GL). From here Stock and/or July $65 calls to buy (RQB GM).

MMM (Minnesota Mining--$122.70; -1.79):
http://biz.yahoo.com/p/m/mmm.html
BACKGROUND: Last announced a 2:1 split on 3-15-94 in conjunction with a board meeting. The stock price was $102. The annual shareholder meeting is scheduled for 5-8-01 at 10:00 am CT at which time no additional shares will be authorized.
STATUS: A big breakout move Wednesday out of its cup with handle pattern, and MMM has established a new high and is still on our announcement radar screen. It hit 127 today before dropping back, moving on continued very strong volume (up to 4 million; average 2.3 million). The breakout point was 121.92, and we will see if it can hold that level on a breakout test, moving down on lower volume. From there we can look at positions on a continued run back up.
BUY POINT: A move back up on continued strong volume after a lower volume pullback that holds the 122 range.
POSITION: Stock and/or July $120 calls to buy (MMM GD).

SRCL (Stericycle--$44.65; -0.69; optionable): Did not get the announcement.
http://biz.yahoo.com/p/s/srcl.html
BACKGROUND: Based upon our research it does not appear that SRCL has ever split its stock. The annual shareholder meeting was on 5-11-00 at which time no additional shares were authorized. The company has sufficient shares for a 2 for 1 split.
STATUS: Could not continue the strong move made last Friday off of the 50 day MVA (42.52). Monday saw the stock reach 48.30 but pull way back to close with a loose doji, and since then the stock has crept back on low volume, holding support at the 10 day MVA (44.14) with three more consecutive dojis. Encouraging that it is holding well, and we will look for a strong move.
BUY POINT: Aggressive After holding support here, a strong move back up over 46 with above average volume (way down to 74,500 today; average 229,000).
POSITION: Stock and/or August $40 calls to buy (URL HH).

POST SPLITS REMAINING PLAYS:

CAH (Cardinal Health--$70.09; +0.09; optionable): Splits 3:2 effective 4-23-01.
http://biz.yahoo.com/p/c/cah.html
STATUS: Broke out to a new high last Friday (out of its 2001 range), and since has come back to test its 10 day MVA (68.93), tapping that level at its lows the last four sessions. Looking for it to hold the 10 day, above the high in the left side of the small saucer it has formed since early March.
PLAY: Over the recent high of 70.70 on increased volume (1.63 million today; average 1.44 million), with stock and/or September $66.63 calls to buy (CKJ IX). Target: 75.50 to 79.

CHKP (Check Point--$57.02; +2.83; optionable (KEQ): Security Software. Split 3:2 effective February 13.
http://biz.yahoo.com/p/c/chkp.html
STATUS: pushed back up today but after tapping the 10 day MVA at its high of 59.45 could only manage a doji. Not looking good, and we are dropping.

CHS (Chico's Fashion--$35.02; +1.73; optionable): Split 3:2 effective May 17.
http://biz.yahoo.com/p/c/chcs.html
STATUS: Made nice move going into the split and continued up today with very solid volume (up to 717,400; average 510,000). A good run, coming after the stock tested the breakout from a cup pattern, but a bit out of range now with an almost 10 percent move beyond the breakout. We will see if it comes back and tests the 32-33 range on lower volume, and we can look at it there for continued strength post-split.
BUY POINT: A move up after a lower volume pullback that holds the 32-33 range.
POSITION: Stock and/or August $30 calls to buy (COJ HF).

EMLX (Emulex--$43.74; +0.87; optionable (UMQ): Computer Hardware: Peripherals
http://biz.yahoo.com/p/e/emlx.html
STATUS: EMLX used the rally Wednesday to move back up in its handle, following up today with a tight doji. It is holding above its 10 day MVA (40.59), with the handle high ahead at 47.85. We can look at positions on a strong move back up from the 10 day if we get a lower volume pullback. On a breakout, the 200 day MVA is resistance ahead at 54.49.
PLAY: Pullback A move up after holding the 10 day MVA on a lower volume pullback, with stock and/or July $35 calls to buy (UMQ GG).

JNPR (Juniper--$53.44; -4.45; optionable (JUX): Computer Hardware http://biz.yahoo.com/p/j/jnpr.html
STATUS: Is struggling now under its 50 day MVA (59.71). It made a move up toward that level Wednesday, but promptly pulled back today on much bigger volume (43.9 million; average 28.6 million). It has been in a decent consolidation, but resistance above is firm, and the high volume pullback is not encouraging. We will see if it can rebound strong, but anything sooner than a break of the 50 day is aggressive. No positions for Friday.

PPDI (Pharmaceutical Prod Dev--$33.69; +0.88): Health services. Split 2:1 on 5-14-01.
http://biz.yahoo.com/p/p/ppdi.html
STATUS: Made a very nice pre-split move for us, and showed strength with a good move Wednesday. It looks to have topped now, gapping up Thursday but closing with a doji as volume was very big (2.28 million; average 444,500). From this move we can expect a pullback, looking for it to hold the 10 day MVA (31.53). We will look at its then. No positions for Friday.

PFGC (Performance Food--$26.80; -0.08; optionable): Food wholesale. Split 2:1 on 5-1.
http://biz.yahoo.com/p/p/pfgc.html
STATUS: Made a big gap up Wednesday from just below its 50 day MVA (26.16). The stock has made some decent moves after dipping below that support, but after the gap up it pulled back on strong volume. It held its short-term MVA's today (18 day at 26.73), in the range of its April consolidation. A bit wild here after the split, and not much of a pattern. Dropping.

RMCI (Right Mgmt Consultants--$20.51; +0.08): Business Services. Split 3:2 effective April 9.
http://biz.yahoo.com/p/r/rmci.html
STATUS: Is well past its breakout now, climbing the 10 day MVA steadily. Not really at an entry point now, so we can protect existing positions for a pullback. Dropping.

SEBL (Siebel--$49.18; +1.34; optionable) (SGW): Application Software
http://biz.yahoo.com/p/s/sebl.html
STATUS: SEBL is looking good, making the move we were expecting in the rally Wednesday. It blasted up on big volume from its 50 day MVA (42.58) Wednesday, closing near the recent high (49.50) in what shaped up as a low-level handle to a forming cup. The stock reached 50.02 today, showing a loose doji on lower volume of 16.6 million (average 18.4 million). Looking for it to hold strong in a pullback.
PLAY: Pullback A move up on increased volume after holding the 46 range on a lower volume drop (10 day MVA at 44.89). From here Over 50 on increased volume in a rally. For either, stock and/or August $40 or $45 calls to buy (SGW HH).

SOTR (Southtrust Corp--$24.27; +0.20; optionable): Banking. Split 2:1 effective 5-14-01.
http://biz.yahoo.com/p/s/sotr.html
STATUS: Tested its break from an ascending wedge made in late April, and finally was able to make a move out of its recent range along its short-term MVA's this week (10 day at 23.67). It could be topping as its reaches back toward its breakout high of 24.60, tapping 24.49 before showing a tight doji. We will see where the stock catches support on a pull back.
PLAY: A move back up on continued strong volume (1.38 million today; average 913,200) after holding support at the 10 day MVA or higher, with stock and/or September $20 calls to buy (SHQ ID).

STZ (Constellation Brands--$37.91; +1.01; optionable): Wineries. Split 2:1 May 15.
http://biz.yahoo.com/p/s/stz.html
STATUS: Has really blasted up after the split, making a huge move Wednesday and following up with more today. Volume was huge as the stock tapped up to 38.35 before retreating. Has made quite a move from below 34 to jump aboard now, although it is still within 5% of its April high of 37 (which had been, before this rally, shaping up as the head of a head and shoulders). It is an aggressive play from here, with perhaps the safer move waiting for a pullback to support to rest.
PLAY: Aggressive A move up from here on continued strong volume (379,200 today; average 173,000), with stock and/or July $35 calls to buy (STZ GG very low open interest). Safer A move up after a lower volume pullback that holds the 37 level, with stock and/or July $35 calls to buy (STZ GG).

Good Investing!
Jon Johnson and the Stock Split Report Staff.

All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Online Investment Services, LP or its paid consultants and are 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 our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Partners of Online Investment Services, LP or its paid consultants may, in some instances, include securities mentioned herein and on our 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.

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