stock recommendation, stock pick

Begin part 3 of 3

THE PLAYS

Good movers Wednesday: PARS; TELM; TTP; PDYN; WMGI; NXTL

Tuesday night play results:
DRRX: Continued its business of forming the handle.
QLGC: As did most big techs, it gapped higher but gave it all back and more on very strong trade.
GIGM: Gapped up and looked good but gave two-thirds of the move back.

New Plays for Thursday:

Upside:

Play Date: 10/15/2003
CTCH (Commtouch Software--$0.94; +0.05; no options): Business software
http://biz.yahoo.com/p/c/ctch.html
STATUS: Flat base. Software is performing, and CTCH may be low in price but it has good average volume and a good pattern to break higher from and make us a nice gain. It is working on breaking out of a 3 month base showing excellent 5 to 1 accumulation (5 up weeks on rising volume to 1 down week on rising volume). It has moved laterally over the 50 day MVA (0.79), and the past week volume has jumped to mostly above average as it made a move up off of that level. Very strong money flow, and we are looking for the stock to follow money flow higher.
Volume: 206.1K Avg Volume: 180.318K
BUY POINT: $1.02 Volume=270K Target=$1.38 Stop=$0.95
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ctch.html

Play Date: 10/15/2003
NXG (Northgate Exploration--$1.79; +0.02; no options): Gold mining
http://biz.yahoo.com/p/n/nxg.html
STATUS: Cup. NXG was a new issued in July and promptly ralllied up to 1.80 in early September before forming the current 4 week base, its first base since coming public. We really like to pick up initial offerings after their first base as that gets rid of the early profit takers and sets the stage for stronger and longer moves. Volume surged Tuesday and Wednesday as it rallied toward the breakout. Strong money flow and relative strength ready to make the breakout.
Volume: 1.289M Avg Volume: 456.045K
BUY POINT: $1.84 Volume=684K Target=$2.45 Stop=$1.71
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/nxg.html

Continuing that look solid: DRXX; LCCI; NYB; ONNN; ORCL; VSV

Play Date: 10/08/2003
LCCI (LCC Intl.--$5.87; +0.11; no options): Telecom wireless communications
http://biz.yahoo.com/p/l/lcci.html
STATUS: Testing the breakout. LCCI shot higher last week on a strong volume surge, breaking out of a short 6 week cup with handle base showing 3 to 0 accumulation, strong money flow, and a relative strength breakout. This week it has moved to test that breakout, falling back to the 10 day MVA (5.76) on lower, below average volume. Looking for it to hold here and then blast back over 6 on above average volume.
Volume: 28.1K Avg Volume: 77.863K
BUY POINT: $6.08 Volume=111K Target=$7.62 Stop=$5.69
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/lcci.html

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SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they set up well.

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

AVID 08/09 Test 18 52.06 -1.97 0 0 963K 0 0
Making the 50 day MVA test after running up the short term MVA since April. A strong volume move from here over 55 is the next entry point.

OCR 08/09 Cup hdl 36.65 +0.21 36.54 43.85 717K 1.2M 34.78
Buy Not Issued. Tested the 10 day MVA and rallied showing a doji on higher, but average volume. Did not like the intraday action and need to see a better break on stronger 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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