stock recommendation, stock pick

Begin part 3 of 3

THE PLAYS

Good movers Wednesday: AVNX; BEAS; CMVT; DRIV; GEMS; KYPH; MROI; NEOF; VRTS

Tuesday night play results:
CMVT: Super breakout higher.
ONT: Gapped higher but gave back the move. Still solid.
SSYS: Gapped higher and gave it back. Want it to hold here at 45.
MROI: Nice volume breakout.

New Plays for Thursday:

Upside:

Play Date: 09/03/2003
MRVC (MRV Communications--$2.5; +0.3; no options): Semiconductor integrated circuits
http://biz.yahoo.com/p/m/mrvc.html
STATUS: Cup. MRVC is forming the right side of a 3 month cup base, blasting higher Wednesday on a huge volume surge. Accumulation in the base is a solid 3 to 1 (3 up weeks on rising volume to 1 down week on rising volume), money flow is shooting higher, and money flow is heading for a breakout. It may form a handle as it reaches up to 2.60, but on a continued strong volume move we are willing to start positions. Then if it does form the handle we can complete the buy as it makes the breakout.
Volume: 4.366M Avg Volume: 793.318K
BUY POINT: $2.58 Volume=1M Target=$3.45 Stop=$2.35
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/mrvc.html

Play Date: 09/03/2003
NVAX (Novavex--$6.15; -0.05; no options): Biotechnology
http://biz.yahoo.com/p/n/nvax.html
STATUS: Double bottom w/handle. Biotechnology is starting to show life again, and NVAX has set up this nice 2.5 month base sporting excellent 4 to 1 accumulation (4 up price weeks on rising volume to 1 down price week on rising volume). The past three sessions it has been moving laterally over the 10 day MVA (5.93), forming the handle to the base. This is the point where it shakes out the last sellers and clears the way higher. Money flow is strong as is relative strength. This is NVAX' first good base off of the October low and we want to pick it off as it makes a strong volume breakout.
Volume: 291.835K Avg Volume: 201.136K
BUY POINT: $6.49 Volume=302K Target=$8.12 Stop=$5.93
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/nvax.html

Continuing plays that look ready:

Play Date: 09/03/2003
AVNX (Avanex--$5.25; +0.44; no options): Semiconductor integrated circuits
http://biz.yahoo.com/p/a/avnx.html
STATUS: Cup w/handle. The overall SOX may be pulling back, but AVNX is moving higher. It is making the breakout from a 3 month base showing positive 4 to 3 accumulation, very strong money flow and relative strength is breaking out. Strong volume move Wednesday.
Volume: 2.957M Avg Volume: 875.818K
BUY POINT: $5.35 Volume=1M Target=$6.65 Stop=$4.75
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/avnx.html

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SUBSCRIBER PORTFOLIO: Here is the revamped portfolio. A very good mix of stocks that will provide some very interesting plays in the weeks and months ahead. Right now we are just putting them in, and when they provide a buy point that is when we will start to move into positions. That is the key to any purchases, i.e., wiaitng for them to provide the entry points and not just a shotgun buy.

AVID, DIS, GTRC, KKD, LPNT, OCR, TGT, UTSI

GTRC 08/09 Test 18 35.56 +0.79 33.4 41.48 491K 700K 32.02
Current. Nice move up on higher volume.

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Good Investing!
Jon L. Johnson and The Daily 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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