stock split, stock research

Begin Part 4 of 4

CECO (Career Education--$49.00; -0.10; no options):
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 has again pulled back to its 50 day MVA (48.56) after having made a rather weak move up from that level last week. It closed just above the 50 day with a doji Friday, and overall the action has not been encouraging since the stock made a break from an ascending wedge last month. It is now back in the range of that pattern, but volume picked up on the doji (332,000; average 253,000) after light volume selling, so it could potentially regroup here and try again.
BUY POINT: Aggressive Over 51 on increased volume.
POSITION: Stock only.

CHIC (Charlotte Russe--$37.00; +0.25; 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 hitting 38.80 at its high the stock has come back a bit. Friday it tested its 10 day MVA at its low of 35.50, pulling back up to show a doji. We will look for it to hold here for a move back up with increased volume (way down Friday at 166,000; average 325,000). It has made quite a move this year, and might need to consolidate a bit more before making a move.
BUY POINT: Aggressive After holding here, a strong move back up on increased volume near the average.
POSITION: Stock.

FHCC (First Health Group--$51.50; -1.40; 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 made a move up this week, but was not ready, Friday pulling back to close at its 10 day MVA. Volume was light on the selling, so we will see if it can hold and make a higher low here, looking for aggressive positions on a strong move back over 53, but it could need to consolidate a bit more.
BUY POINT: Over 53 on increased volume near the average (414,000; Friday 272,200).
POSITION: Stock.

GENZ (Genzyme--$106.34; -1.53; 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. Having its problems coming back (it dropped after announcing the issuance of some convertible notes recently), but is gradually making headway. It made a move up from 100 the latter part of the week, but volume was rather weak and it pulled back Friday. The selling volume was even weaker though (1.76 million; average 2.75 million), and it closed in the range of recent levels while tapping the 10 day MVA at its low of 105.04. We will see if it can hold this range 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.
POSITION: Stock and/or July $105 calls to buy (GZQ GA).

IFIN (Investors Fin Services--$70.10; -0.90; 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 company does not have sufficient shares for a 2:1 split.
STATUS: Finally tried a move back up this week from its steadily declining handle. Handles are supposed to decline, but it had been doing so for four weeks, and its double bottom was only 5 weeks long. The move up this week was hampered by low volume, however, and after reaching up to 73.41 Thursday the stock pulled back a bit Friday, showing a doji at confluence of moving averages (10 day at 70.17, 50 day at 69.82). We will see if it can hold here, and with some volume we could still see a solid, playable 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 (342,000; Friday 116,000).
POSITION: Stock and/or July $65 calls to buy (FLQ GN).

GNTX (Gentex--$29.06; +0.96): 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), but it has been a low volume breakout. Friday it continued up after having taken a breather Thursday, moving on lighter volume on the move up (330,500; average 417,000). It has not shown the strength it should on a breakout, so we will see if it pulls back, holding the 28-28.50 range for another try at a stronger move. 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).

ITG (Investment Tech Group--$53.89; -0.71; optionable):
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 early this month. Coming off of a star doji Thursday the stock pulled back, but volume was tame and the move held in the range of March-April highs. We will see if it can hold here or at the 10 day MVA (52.55) for a move back up. The recent high is 57.24, the early March intraday high. Might try to form a handle here.
BUY POINT: A move back over 55 after holding here, looking for near average volume on that move (232,000; Friday 92,000).
POSITION: Stock and/or July $50 calls to buy (ITG GJ).

KMI (Kinder Morgan--$58.75; +0.76; 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: Looks to have held the 18 day MVA (57.95), making a higher low in keeping with its ascending wedge pattern. It pushed up slightly from that level Friday, but for positions we want a breakout. The highs are at 60, made in early March, April and now this week.
BUY POINT: Breakout 60.13 on above average volume (667,000; Friday 604,500).
POSITION: Stock and/or August $55 calls to buy (KMI HK).

MERQ (Mercury Interactive--$69.62; +1.04; optionable): No announcement Friday with its annual shareholder meeting.
http://biz.yahoo.com/p/m/merq.html
STATUS: MERQ is holding up after it made a strong move in the tech rally Wednesday. The moves up have continued, but the candlesticks are narrowing and the volume has dropped off (2.26 million Friday; average 5.3 million), indicating that momentum is just about gone. It could pull back here, and we would look for it to hold the 10 day MVA (65.23) on that move, setting it up for a jump with the next strong market rally. If we do get such a rally, it could continue up from here, but we would need to see strong volume behind the move. The recent high from early May, from where the pullback to the 50 day MVA (60.04) began, is at 73.25.
BUY POINT: Pullback A move up in a strong market after a pullback that holds support 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).

SRCL (Stericycle--$43.99; -0.66; optionable):
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 (42.66), pulling back this week but holding near its 10 day MVA (44.11). Volume was stronger on the selling (232,500; average 230,200), so we will see if it can hold here or if it will take another trip to the 50 day. The stock has made close to a 50% move since January, so perhaps needs to consolidate its gains a bit before making a strong move.
BUY POINT: Aggressive After holding support here, a strong move back up over 46 with increased volume.
POSITION: Stock and/or August $40 calls to buy (URL HH).

POST SPLITS REMAINING PLAYS:

CAH (Cardinal Health--$69.74; -0.35; optionable): Splits 3:2 effective 4-23-01.
http://biz.yahoo.com/p/c/cah.html
STATUS: Has held steady over its 10 day MVA (69.07; in the range of the highs in its saucer pattern formed beginning early March), testing down to that level at its lows this week, after having broken out to a new high. The 10 day has proven to be solid support as the stock consistently taps at it and pulls back up to close, continuing that action Friday as the stock retreated slightly on low volume (780,500; average 1.47 million). Looking pretty good here, perhaps biding its time, building strength for another surge upward.
PLAY: Over the recent high of 70.70 on average or better volume, with stock and/or September $66.63 calls to buy (CKJ IX). Target: 75.50 to 79.

CHS (Chico's Fashion--$34.45; -0.57; optionable): Split 3:2 effective May 17.
http://biz.yahoo.com/p/c/chcs.html
STATUS: Made a solid move going into the split and on the actual split Thursday. Friday saw the stock tap a new high at 36.70, but the momentum was lost and CHS pulled back to close. Volume was lower, however, coming in at 525,800 (average 520,800). It was a nice 15% move on the breakout even with the intervening split, so we might see a pullback here that catches the 10 day MVA (32.23). From that level we will see if it can avoid a post-split slump and mount another move; however, it is a third-stage breakout from a small cup with handle that formed after the stock had already made a nice move up in a larger cup base, so the end of the run could be near.
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).

JNPR (Juniper--$54.81; +1.37; optionable (JUX): Computer Hardware http://biz.yahoo.com/p/j/jnpr.html
STATUS: Is struggling now under its 50 day MVA (59.52), although JNPR is holding its 200 day MVA as support (at 51.34). The pattern Friday, following a drop Thursday on big volume, was a doji, so we will see if it can hold, but anything sooner than a break of the 50 day is aggressive. The stock is in a gradually descending consolidation that saw a high near 70 in mid-April.
PLAY: Aggressive A move over 55.55 (10 day MVA) on increased volume (down to 20 million Friday; average 29 million), with stock and/or July $50 calls to buy (JUX GJ). Safer Over the 50 day MVA, with stock and/or July $55 calls to buy (JUX GK).

MKT (Advanced Marketing--$17.40; -0.60; no options): Basic Materials. Split 2:1 effective 5-14-01.
http://biz.yahoo.com/p/m/mkt.html
STATUS: Made a great run going into the split on a breakout from a nice, tight pennant pattern. The stock hit a breakout high of 19.36, and has now pulled back, but could not hold support at the 10 day MVA (17.62), giving away that level Friday and dropping to close over the 18 day (17.26). Still comfortably over the former breakout point at 16.91, and with reduced volume selling (48,400; average 46,200) we will see if it can hold on, avoid post-split blues and make a move back up.
PLAY: A move over 18 on increased volume, with stock.

PPDI (Pharmaceutical Prod Dev--$34.45; +0.76): 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 following the split as well. Wednesday saw a solid breakout move, and since we have seen two sessions of diminished gains, with volume decreasing sharply Friday (984,800; average 479,000) but remaining well above average. It looks to have topped now, pulling back to close Friday off of the intraday high of 35. Still looking for a pullback and a hold at the 32-33 range (10 day MVA at 32.06).
PLAY: A move up after a lower-volume pullback to the 10 day MVA holds, with stock and/or July $30 calls to buy (PJQ GF).

SEBL (Siebel--$49.21; +0.03; optionable) (SGW): Application Software
http://biz.yahoo.com/p/s/sebl.html
STATUS: SEBL is still looking pretty good, holding on the last couple of sessions after having sprung from the 50 day MVA (42.84) in Wednesday's rally. It hit 50.02 at its high Thursday, above its April and early May highs in what has shaped up as a low-level handle to a forming cup. We will see if it can continue to hold up (10 day MVA below at 45.68), watching for a move back up in a rally.
PLAY: Over 50 on increased volume (down to 10.5 million; average 18.6 million) in a rally, with stock and/or August $40 or $45 calls to buy (SGW HH).

SOTR (Southtrust Corp--$24.26; -0.01; 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 23.78). After that good move Wednesday the stock has been able to show consecutive dojis, Friday testing the 10 day at its low. We will look for SOTR to hold the 10 day and make a solid move back over its recent high at 24.60.
PLAY: A move over 24.60 on increased volume (1.15 million; average 934,000), with stock and/or September $20 calls to buy (SHQ ID).

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.

stock split
stock research