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us stock market, stock split
Begin Part 3 of 4
PRE-ANNOUNCEMENTS REMAINING PLAYS
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LOW (Lowe's--$71.00; -1.50): Forecast to announce a split on 5-25-01 at its annual shareholder meeting.
http://biz.yahoo.com/p/l/low.html
BACKGROUND: Last announced a split on 5-29-98 in conjunction with its annual shareholder meeting. The stock price was $75. Prior to that announced a split on 3-4-94 at a stock price for $64. The annual shareholder meeting is scheduled for 5-25-01 at 10:00 ET at which time no additional shares will be increased. The company has sufficient shares for a 3:2 split.
STATUS: LOW made an outstanding move Monday, gapping up on huge volume with earnings, hitting a high of 73.70. Today the stock pulled back, showing a doji, holding over the gap up point (69.60) and comfortably over the breakout point from its cup with handle (64.94). Quite a run, and going into Friday's forecast we will see if the stock can hold here or if it gives up a bit more and heads back toward the gap-up point (10 day MVA at 67.41). It has made quite a run already, so we will need it to hold on with the pullback, and we would be cautious with upside positions going into the split.
BUY POINT: On a move back up after a lower volume (down to 3.65 million today; average 3.38 million) pullback, looking for it to hold the 70 range.
POSITION: Stock and/or July $65 calls to buy (LOW GM).
MIKE (Michaels Stores--$37.35; -0.11; optionable): Wildcard Forecast to announce a split on 5-30-01 after the market opens in conjunction with earnings.
http://biz.yahoo.com/p/m/mike.html
BACKGROUND: Based upon our research it does not appear that MIKE has ever split its stock. The annual shareholder meeting was on 9-13-00 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Broke from a cup with handle pattern last week, and has moved somewhat laterally the last few sessions, hitting an intraday high Monday of 37.95. The stock showed a doji today as volume spiked way up to 481,400 (average 236,300), and it looks like MIKE is going to pull back again and visit its 10 day MVA (36). We will look for it to hold on there and continue to show strength, then as we go toward the announcement we will look for a strong move back up.
BUY POINT: A move back up on increased volume after a lower volume pullback that holds above 36.
POSITION: Stock and/or June and September $30 calls to buy (IKQ FF - low open interest, and IKQ IF).
BMET (Biomet--$44.93; -0.66; optionable): Medical equipment. Working on a date for this one.
http://biz.yahoo.com/p/b/bmet.html
BACKGROUND: Last announced a 3:2 split on 7-6-00 at a stock price of $29. The annual shareholder meeting was on 9-16-00 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: BMET has really charged back after a disappointing drop from its breakout from an ascending wedge. The stock made another strong move Monday to a new high (45.60), pulling back today on lower volume while testing the level of last week's dojis at its low of 44.20. It has made quite a move up, so we will see if the stock will consolidate here a bit.
BUY POINT: After holding support at the 44 range and perhaps consolidating in a sideways move, a strong move up back on increased volume near the average (down to 1.11 million today; average 1.8 million).
POSITION: Stock and/or July $40 calls to buy (BIQ GH).
ADVP (Advancepcs--$67.00; +0.95; 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 just keeps moving, making another new closing high Friday. It tested down to its 10 day MVA at its low of 63.43, but yet again the stock has absolutely no volume behind these moves up (down to 403,500; average 891,000). Volume has been low for several weeks on the stock, which broke out from an ascending wedge in March and then broke out last week from a flat base formed over that pattern. The low volume is a recipe for a pullback, and the more extended it gets on low volume moves up the more severe the drop could be. We are protecting profits, and we will see if any selling that comes along stays tepid on a pullback, looking for such a retreat to hold the 64 range.
BUY POINT: A move up after a light-volume pullback that holds and perhaps consolidates at the 63-64 range, looking for above average volume.
POSITION: Stock and/or June $60 calls to buy (QVD FL).
FDC (First Data--$66.15; -1.07; 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 made a big breakout move last Wednesday after having to come back again to test the breakout from its saucer pattern, but has come right back once more to test it again. The stock sold back to its 18 day MVA today (65.93), although volume was not heavy at 1.25 million (average 1.83 million). We will if it can hold here, gaining a bit of strength again for a strong move back up over the breakout high of 68.76.
BUY POINT: After showing us that it can hold here, a move back over 68 on above average volume.
POSITION: Stock and/or August $65 calls to buy (FDC HM).
LEN (Lennar--$40.11; -0.09; 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: Dropped heavily Monday, tanking through its 50 day MVA (41.24) and then hitting as low as 38.58 today before recovering to show a doji. It had shown weakness after a good move up after testing a breakout from a saucer pattern in late March, but is not a play now. We will see if it can catch itself and recover as we go toward the split. Still in range, and plenty of time.
CORS (Corus Bankshares--$51.40; -0.20; 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 to tighten in something of a pennant, holding over its 18 day MVA (51.38) the last few sessions and showing a doji today. Volume has dwindled down to very low levels as the stock crouches in the lateral pattern (7200 today; average 21,600). It could be getting ready to make a move, but it has disappointed before. 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.
STT (State Street--$114.69; +1.37; optionable): Banking. Splits 2:1 effective 5-31-01.
http://biz.yahoo.com/p/s/stt.html
STATUS: Made a strong breakout last week from its pennant/handle to a cup, and took out resistance at the 200 day MVA (112.28) Monday with a modest move. The stock continued up today, but showed a loose doji that could signal a move back to support. We will see if it can hold the 200 day on a pullback, looking to try and catch another run from there.
PLAY: A move up after a pullback that holds the 200 day, with stock and/or June $110 calls to buy (STT FB).
PKI (Perkinelmer--$75.11; +0.94; optionable): Technical Services. Splits 2:1 effective 6-1-01.
http://biz.yahoo.com/p/p/pki.html
STATUS: Broke out from its little pennant pattern last week and has made a very nice move, but is showing some weakness as it makes smaller moves up as volume drops (507,400 today; average 682,800). Coupled with today's doji, PKI is geared for a pullback, so we will see if it can hold the 10 day MVA at 70 and give us another move from there.
PLAY: A move back up after a pullback that holds the 70 level, with stock and/or June $65 calls to buy (PKI FM).
APPB (Applebee's--$45.05; -0.28; optionable): Announced a 3:2 stock split last week! It is effective June 12.
http://biz.yahoo.com/a/appb.html
STATUS: Continues its steady move up along its 10 day MVA (43.94). 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 is still below average, up on today's doji at 331,400 (average 392,000). Looks like a pullback to the 10 day MVA is imminent, and we will see if it can build a strong consolidation there, and as we get closer to the split we will see if it can make a good move.
BUY POINT: Aggressive A move up after a successful test of the 10 day MVA, looking for stronger volume near the average on the move up, with stock and/or August $40 calls to buy (AQB HG), carefully protecting positions.
SDS (Sungard Data--$62.65; +0.61; 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 last week and, after reaching a high of 64.50 on an intraday run Thursday, the stock has pulled back a bit. It caught support, however, in the current range of its 10 day MVA (60), but the moves back up have been on weak volume (down to 441,900 today; average 938,500). Looking like it needs to pull back and consolidate a bit before making another strong move. That is fine, as it has made a big run from the lows in its cup, the 44 level hit back in March.
BUY POINT: After holding 60 on a 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--$54.20; -0.68; 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 when it was back at 44 (currently 47.60, in the range of its recent highs before its last move). The stock hit up to close at 55 Monday, again moving up on strong volume, but slowed to a doji today (volume decreased to 1.38 million; average 960,300). It is too extended to chase, but it looks like a pullback so we will see where it holds. The 10 day MVA is at 50.25. For new positions we will need to see it catch support and consolidate.
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).
ASFC (Astoria Financial--$57.94; +0.49; optionable): Savings and Loan.
http://biz.yahoo.com/p/a/asfc.html
BACKGROUND: Last split its stock in 1996 with the split at a price of $56. The annual shareholder meeting was on 5-17-00 at which time no additional shares were authorized. The company has sufficient shares for a 2 for 1 split. The next annual shareholder meeting is scheduled for 5-16-01 at 9:30 ET.
STATUS: Has pulled back to test the breakout from a saucer pattern, and is trying to move back up but has the same problem it has encountered in recent weeks on attempts to move up: volume. Today's move had volume of 245,800 behind it, well below the average of 388,500). We need to see a break over 58.50 on above average volume.
BUY POINT: Breakout Over 58.50 on above average volume.
POSITION: Stock and/or July $55 calls to buy (AQR GK).
CEC (CEC Entertainment--$54.10; -1.30; optionable): No announcement 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: Has made a very solid move back up since testing its gap up breakout made in mid-April. The stock made a move up again Monday going into earnings, and hit a new high to open today (55.50) before dropping back. The higher volume on the drop (261,000; average 225,800) indicates a continued pullback, and we will see if it can hold the 10 day MVA at 52.45. However, the stock has made an extended run up and might need to go back and visit lower levels of support. Not much of a play now, so we will see where it finds support and look for a consolidation to build strength again.
BUY POINT: A move up after the stock pulls back and consolidates, perhaps in the 52 range.
POSITION: Stock and/or June and September $50 calls to buy (CEC FJ and CEC IJ low open interest for both options, however).
CECO (Career Education--$50.20; +0.60; 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 is making another weak move off of its 50 day MVA (48.60) as it tightens in a pennant pattern. The stock showed continuing weak volume today on its modest move up (197,700; average 252,300). The overall the action has not been encouraging since the stock made a break from an ascending wedge last month and hitting up to 55, but the overall pattern is not bad, holding support and we will see if it can make a strong move out of this pattern.
BUY POINT: Aggressive Over 51.62 on increased volume.
POSITION: Stock only.
CHIC (Charlotte Russe--$33.39; -5.76; 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 broke to a new high Monday, but volume was low and the stock tanked back hard today. It dropped back through its 10 and 18 day MVA's (35.50 and 34.50, respectively), and volume on the drop was massive at 1.35 million (average 328,700). It is back in the range of support from the lows in its recent handle and highs in its former saucer. We will see if it can hold on and recover.
GNTX (Gentex--$30.21; +0.956): 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), and after a rather weak beginning to the move the stock has really been strong the last two sessions. Volume on today's move was up at a strong 874,400 (average 419,600). Too extended to chase now, so we will see if it can give us a pullback to test the breakout, which was at 28.44. A continued move on this breakout, perhaps after a pullback, will put the stock right back in split range.
BUY POINT: After holding 29 on a test on volume a strong move back up on continued strong volume.
POSITION: Stock and/or September $25 calls to buy (GXQ IE).
IFIN (Investors Fin Services--$71.91; +0.01; 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: The stock is trying to make a move back up in its long handle, making its way back over its 50 day MVA (70) last week. The handle is a bit out of proportion to its double bottom pattern, as it is now about as long. However, we will see if it can manage a move back up, as volume spiked up the last couple of sessions (431,500 on today's doji; average 343,800). If it can hold support over 70 we will see if it can finally make a solid move. The stock has some recent resistance at 75, with the handle high at 80.
BUY POINT: Aggressive A move over 73.50 on increased volume.
POSITION: Stock and/or July $70 calls to buy (FLQ GN).
IGT (International Game Technology--$61.90; -0.33; 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: A great breakout move this past week, and today the stock reached 63.50 before pulling back somewhat. It was a high-volume breakout from a long handle to a cup with a double-bottom configuration, and now it looks like it needs to take a rest, perhaps testing back toward the breakout level of 59.
BUY POINT: A move up on continued strong volume (down to 1.02 million; average 759,000) after holding a test of the breakout.
POSITION: Stock and/or July $55 calls to buy (IGT GJ).
End Part 3 of 4
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us stock market
stock split
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