trade stock, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Thursday: AMZN; AVAN; CKR; CYTO; DRIV; MRVC; PTN; QCOM; SSYS; STEL; UNTD; YHOO

Wednesday night play results:
AVAN: Solid volume as AVAN gapped higher.
NXTL: Backed off from the breakout. Still in good shape.
IRM: Higher volume as it sold hard but recouped some of the loss.
LNUX: Gapped higher but lower volume and gave back most of the move.

New Plays for Friday:

Upside:

Play Date: 09/18/2003
IMCO (Impco Technologies--$7.63; -0.22; optionable): Auto: just about anythign to do with fuel systems.
http://biz.yahoo.com/p/i/imco.html
STATUS: Testing the breakout. And yet another stock testing the recent breakout. That is what happens in a rising market, and we love a good breakout test that 'proves up' the breakout. IMCO exploded out of an 8 week cup w/handle base 5 sessions back and has spent this week coming back to test the breakout on lower and lower trade. That indicates there is not dumping, just some mild profit taking. Accumulation in the base is an oustanding 4 to 0 (4 up weeks on rising volume to 0 down weeks on rising volume). That is combined with surging money flow and a relative strength breakout indicating a solid breakout move. It may come back to fully test the 10 day MVA (7.41) before turning back up. Very solid. Auto dollar sales may be lower, but unit sales are huge.
Volume: 218.44K Avg Volume: 142.545K
BUY POINT: $7.88 Volume=225K Target=$9.85 Stop=$7.33
POSITION: IQZ KU - Nov. $7.50c (59 delta) &/or Stock
http://www.investmenthouse.com/cd/imco.html

Play Date: 09/18/2003
SCMR (Sycamore Networks--$5.07; -0.03; optionable): Networking & communicaiton hardware
http://biz.yahoo.com/p/s/scmr.html
STATUS: Testing the breakout. SCMR blasted higher 5 sessions back, breaking out from basically flat base from June to August (matching the overall market's lateral move during that time). During that period accumulation was solid at 3 to 1, setting the foundation for a good breakout. After the breakout SCMR has edged back this week, tapping the 10 day MVA (4.84) on the Thursday low and rebounding to close basically flat on rising, above average volume. 4.84) on the Thursday low and rebounding to close basically flat on rising, above average volume. A very solid breakout and nice breakout test. This looks as if it is going to be successful. On a further move on volume, that will be our entry point.
Volume: 4.653M Avg Volume: 1.788M
BUY POINT: $5.22 Volume=2M Target=$6.55 Stop=$4.79
POSITION: SMZ AA - Jan. $5c (58 delta) &/or Stock
http://www.investmenthouse.com/cd/scmr.html

Continuing plays that look ready:

Play Date: 08/25/2003
NEOF (Neoforma--$16.45; +0.05; optionable): Internet software
http://biz.yahoo.com/p/n/neof.html
STATUS: Flying the plateau. NEOF broke from an 8 month double bottom with handle base to starte the month, exploding higher on tremendous volume. It rallied up to 16 and has since moved laterally on mostly lower volume with occassional volume spikes. Thursday was one of those volume spides as NEOF again tested toward the 10 day MVA (16.01) and rebounded. Excellent money flow and accumulation. Looking for a breakout from this lateral move on continued strong trade for new positions.
Volume: 162K Avg Volume: 90.954K
BUY POINT: New: 16.78 (orig. $14.22) Volume=106K Target=New positions: $20.12 (orig. positions to take some gain: $16.97) Stop=$14.25
POSITION: QZX AC - Jan. $15c (63 delta) &/or Stock
http://www.investmenthouse.com/cd/neof.html

Play Date: 07/30/2003
SBUX (Starbucks--$29.58; +0.47; optionable): Expensive coffee
http://biz.yahoo.com/p/s/sbux.html
STATUS: Testing the breakout. SBUX is making the move, rallying Thursday on rising, above average volume. Still a buy as it moves out of the 3 week lateral consolidation.
Volume: 3.382M Avg Volume: 3.081M
BUY POINT: New: $29.78 (orig. $29.55) Volume=6M Target=$35.45 Stop=$28.28
POSITION: SQX AF - Jan. $30c (44 delta) &/or Stock
http://www.investmenthouse.com/cd/sbux.html

Continuing plays that still look good: QRSI; WFR; LSI

* * *
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

No write-ups tonight.

* * *

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.

trade stock
stock recommendation