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Begin Part 2 of 4

TEAM TRADES

KOSP set off an early alert and was testing the 27 level at 9:01. This was a strong move up early in the day, after the stock had tested the recent breakout. Volume was up to 127,000 (previous volume was 180,100; avg. is 61,000). The stock pulled back to test 27 again (had hit a high earlier at 27.20). We decided to take positions here since the stock was moving pretty well. It was trading at 26.98 by 27.24 with volume ramping up to 218,000, really moving. We put in a stop loss at 25.

At 1:28 CT the stock was at 28.15 on volume of 307,000. We liked how this move was looking, since the stock was getting ready to beat the earlier breakout high of 28.87. That might pose some resistance, but with volume higher than that of the previous session (307,000), it might have a chance to take it out. KOSP did just that, shooting past the high right before 2:00 on a volume surge, and the stock ran up to a high of 29.49 before closing back down at 29.29. Volume ended up at almost 400,000, just huge. Looks like a good chance the breakout will continue.

BORL: Picked up some more BORL on the pullback to 11.91 early in the session. We were waiting for the pullback, we got it, and then we moved in at $12.01. We may get more of a pullback coming after such a strong move, but we look for it to hold above the pivot point at 11.61.

AMGN: Thought about selling some covered calls on AMGN at the close as it was showing some topping signs, but decided to let it alone and see if it holds at 67.55, the handle high. The move higher was not on strong volume, and that is why we were thinking about it. If it breaks back down into the handle, we will have to consider if we want to hold the stock or wait for a stronger volume breakout.

AVCI: We bought this the other day at about 10.25, and we are looking for it to roll up to sell some calls. It hit 11.60 on the high but pulled back to close with a 0.64 gain. Volume was higher and the candlestick pattern was a shooting star doji. We are looking for a move over $12 tomorrow and will wait for the trigger then to sell the calls. We would like a move to $14. We will see.

THE PLAYS: Some big breakouts already this week, with IVX, GENZ and BMET adding to the ranks today, and pre-splits LH and JNJ making great moves!

PRE-ANNOUNCEMENT PLAYS FOR THIS WEEK: No announcements scheduled for this week, but there are some more exciting ones coming up.

BEST PLAYS: Besides the plays set forth below best plays, there are some other stocks that also look good. These include Pre-Announcements CHV, FISV and ADVP; Pre-Splits ESRX, SDS and LOW; Continuing Candidates ITG and RJR; and Post-Split WFMI.

PRE-ANNOUNCEMENT BEST PLAYS:
1) BMET - Another strong move to a new high
2) FITB - Another new high as it continues the breakout
3) CEFT - Needs some volume to breakout

BMET (Biomet--$46.63; +1.28; optionable): Medical equipment. Forecast to announce a split with a board meeting 6-29-01.
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: Broke out yet again, moving out of a small ascending wedge it had formed after having broken from a similar, larger pattern. Volume was again solid on the move, coming in sharply higher at 2.08 million (average 1.8 million). Relative strength has broken out, and the stock shows strong money flow and relative strength.
BUY POINT: Up from here on continued strong volume.
POSITION: Stock and/or October $40 calls to buy (BIQ JH).

FITB (Fifth Third Bancorp--$60.98; +0.40; optionable): Forecast to announce a split on 6-21-01 in conjunction with earnings. At this time the company cannot confirm the date.
http://biz.yahoo.com/p/f/fitb.html
BACKGROUND: Last announced a 3:1 split on 6-20-00 at a stock price of $61. The annual shareholder meeting was on 3-20-01 at which time authorized shares were increased.
STATUS: Broke out of its cup with handle, and continued the move today after testing back to 60 (breakout point was 59.23) at its low. The stock closed above the December highs in the left side of its cup, at 60.88, as volume dipped a bit but remained strong at 2.5 million (average 1.77 million). We will see if it runs from here or if it will again test the breakout. The stock shows excellent relative strength, money flow and buying.
BUY POINT: A continued move up on continued strong volume.
POSITION: Earnings play. Stock and/or July and August $55 calls to buy (FTQ GK and FTQ HK).

CEFT (Concord EFS--$51.34; +1.15; optionable): NEW INFORMATION Forecast to announce a split on 7-25-01 in conjunction with earnings. At this time the company cannot confirm this date, but based upon our research this is the date for the release.
http://biz.yahoo.com/p/c/ceft.html
BACKGROUND: Last announced a 3:2 split on 8-26-99 at a stock price of $37. Prior to that announced a 3:2 split on 5-14-98 in conjunction with its annual shareholder meeting. The annual shareholder meeting is scheduled for 5-24-01 at 9:30 am CST at which time additional shares will be authorized.
STATUS: Has broken out from an ascending wedge and then a larger cup pattern (from early March, with highs at 50), and has more recently pulled laterally over the 50 level (and 10 day MVA, at 49.91). The stock made a move today, hitting a new high at 51.50 intraday, but volume was rather weak, though up at 2.64 million (average 3.8 million). Excellent relative strength.
BUY POINT: A move over 51.50 on above average volume.
POSITION: Stock and/or September $45 calls to buy (EQF II).

PRE-SPLIT BEST PLAYS: Remember, we try to grab these as they break out of good patterns or as they start a run right before the split. Not looking for home runs, but looking for those $3 to $4 moves running into the split. Not huge money, but it can be very steady.
1) JNJ - Making a strong pre-split move
2) LH - Still could go

JNJ (Johnson&Johnson--$102.19; +2.05; optionable): Drugs. Splits 2:1 effective June 12.
http://biz.yahoo.com/p/j/jnj.html
STATUS: JNJ has blasted up the last two sessions, today moving up to close over its high from last month (at 102, made on a breakout from a cup with handle) and from last July. A solid pre-split run, and we look ahead to the late-January high of 105.94 as the next major level of resistance. Relative strength is trying to break out, and money flow is solid.
PLAY: A move up, with stock and/or July $95 calls to buy (JNJ GS).

LH (Laboratory Corp--$159.15; +4.15; optionable): Health Services. Splits 2:1 effective June 11.
http://biz.yahoo.com/p/l/lh.html
STATUS: Has made an outstanding pre-split move, running up the past week from the 130 range. Today the move continued, with volume increasing and remaining at very strong levels at 1.2 million (average 455,300). At its high the stock hit 161.40, near the February high of 162 (the high in the left side of a cup). We need to be wary, however, as the stock is at resistance, closed off its high, and has shown decreasing point gains. However, the decreasing moves have still been impressive and supported by volume, so we will continue to watch the stock to see how it handles the 162 level. On a strong move over that mark, we will look for more, but keeping careful stops in place to protect profits.
PLAY: A move over 162 on continued strong volume, with stock and/or July $155 calls to buy (LH GK).

CONTINUING CANDIDATE BEST PLAYS: Some puts in here.
1) ACF - Still in a nice consolidation on support
2) NVDA - Ascending wedge over a breakout
3) MIKE - Successful test of the breakout
4) KMP - Another nice consolidation
5) GNTX - Looking to move again

ACF (Americredit--$52.00; -0.20; 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 is one of the stocks that have made a very strong run for us on the report, making a great move mid-May. From the high established at 55 the stock has gradually pulled back, and it has now shown five consecutive dojis over the 10 day MVA (51.93). Volume has been generally below average on the move (860,500; average 962,500), with one spike up last week. We are looking for a strong move out of this consolidation, and we will be careful in using stops as the stock makes its move, protecting profits, and watching the action as it approaches the resistance at 55.
BUY POINT: A move over 53 on above average volume.
POSITION: Stock and/or August $50 calls to buy (ACF HJ).

NVDA (Nvidia--$93.62; +4.67; optionable): Semiconductor.
http://biz.yahoo.com/p/n/nvda.html
BACKGROUND: The company last announced 5-16-00 after the close with earnings. Price was at $94, but the stock rose $8.74 that day in anticipation.
STATUS: NVDA is in a bullish pattern, an ascending wedge formed after its recent breakout from a cup with handle. The stock caught support at its up trendline (connecting March-May closing lows, at 89; 18 day MVA is at 49.97) and made a move up today on increased, though still below average, volume (4.1 million; average 5.6 million) as the chips rallied. The stock is approaching upper resistance at 95-96, so we will look for a breakout over that level. Initial target on the move: $107-110.
BUY POINT: 96.68, on volume of 7.5 million.
POSITION: Stock and/or September $90 calls to buy (RVU IR).

KMP (Kinder Morgan--$71.44; -0.01):
http://biz.yahoo.com/p/k/kmp.html
BACKGROUND: Based upon our research it does not appear that KMP has ever split its stock. KMP is a master limited partnership and therefore does not have annual shareholder meetings.
STATUS: The stock is holding steady in a tight, lateral consolidation over its 18 day MVA (71.11). KMP has made a strong run, with two good surges after breaking out of a saucer pattern last month with a gap. It hit a high of 73.99 on the last move, and has retreated a bit from there. Volume has been light in this consolidation, down today at 83,100 (average 137,500). We are looking good for another leg up from here out of this flat, tight consolidation.
BUY POINT: Aggressive A move back over 72.50 on increased volume near the average.
POSITION: Stock and/or September $70 calls (KMP FN).

GNTX (Gentex--$31.15; -0.11): 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 has been powerful, breaking out of a cup with handle and then, after a bit of a test, blasting back up again last week. It has pulled laterally the last three sessions, showing dojis after reaching up toward 32 at its highs (31.75 today, recent high at 31.84). Volume has dipped back below the average on the lateral move, today coming in at 300,000 (average 442,000). It could revisit the 10 day MVA (30.28), but we will also keep our eyes open for a move out of this pattern with some good volume. The stock is steadily making its way back up into split range.
BUY POINT: From here A move over 32 on above average volume. Pullback A strong move up after a low-volume retreat that holds the 10 day.
POSITION: From here Stock and/or September $30 calls to buy (GXQ IF). Pullback Stock and/or September $25 calls to buy (GXQ IE).

MIKE (Michaels Stores--$40.59; +1.79; optionable): No announcement this week, but broke out.
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: After a brief, low-volume profit-taking pullback Monday, the stock continued its breakout move today, running back up over the breakout high and closing just below the high in the left side of its cup (41.19). Volume moved back up over the average, showing strength. We will look for a continued move, keeping our eyes on the 41.19 level as possible resistance. We have a target of about 46 on this one.
BUY POINT: A continued move on strong volume (today 308,000; average 248,000).
POSITION: Stock and/or September $35 calls to buy (IKQ IF).

POST-SPLIT BEST PLAYS:
1) GENZ - Broke out!
2) PKI - Strong move
3) SEBL - Held 50 day
4) BRCD - Good move back over resistance

GENZ (Genzyme--$57.22; +2.48; optionable): Split 2:1 effective 6-4-01.
http://biz.yahoo.com/p/g/genz.html
STATUS: Biotechnology. Showing no 'post-split blues,' GENZ broke out today, moving out of the lateral consolidation it had formed since breaking from a cup pattern in April. Volume, which had been rather low on recent attempts to move up, spiked higher on the move, coming in at 5.38 million (average is 2.8 million). A strong move, and it is still a buy up to 58.54. Excellent relative strength and money flow, with good buying.
PLAY: A buy up to 58.54 with continued strong volume, with stock and/or October $55 calls to buy (GZQ JK).

PKI (Perkinelmer--$37.22; +2.32; optionable): Technical Services. Split 2:1 6-4-01.
http://biz.yahoo.com/p/p/pki.html
STATUS: Another stock moving with strength post-split, PKI shot up from its 18 day MVA (34.63) after having shown consecutive dojis on that level. PKI had just tested its breakout from a pennant pattern, holding that support (and its 50 day MVA, at 33.45) for this move up. Volume supported the move, coming in stronger at 838,400 (average 642,000). The stock hit up to 38.27 at its intraday high, just eclipsing the pre-split breakout high of 38.13.
PLAY: A move over 38.25 on continued strong volume, with stock and/or September $35 calls to buy (PKI IG).

BRCD (Brocade--$43.49; +4.24; optionable (UBF): Telecom
http://biz.yahoo.com/p/b/brcd.html
STATUS: BRCD was able to push back over its 50 day MVA (41.66), and volume moved back up on the run as well (13.7 million; average 14.4 million). This one is one of those that is pretty strong when the techs move up, but has been weak in Nasdaq weakness as well. We were watching it for a put, but the strength today makes us more confident in an upside, if the market can make a move as well. We will protect upside positions with stops.
BUY POINT: In a stronger market, a move up with above average volume and stock and/or October $40 calls to buy (UBF JH).

SEBL (Siebel--$49.33; +2.53; optionable) (SGW): Application Software
http://biz.yahoo.com/p/s/sebl.html
STATUS: SEBL recovered quickly from its drop below the 50 day MVA (45), and made a pretty good move up today. Volume was below average but up at 13.4 million (average 18.4 million), and the stock touched over over some resistance from April and May levels at 50 (high of 50.89). In a rally SEBL is strong and could make another solid move toward recent highs at 55.90.
PLAY: In a strong market, a move back over 50 with increased volume near the average, with stock and/or August $45 calls to buy (SGW HI).

End Part 2 of 4

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