stock recommendation, stock pick

Begin part 3 of 3

THE PLAYS

Good movers Thursday: GEMS; TRA

Wednesday night play results:
GEMS: Nice breakout on volume.
TLGD: Gapped lower but rallied back to the 200 day MVA. Could not hold a move over that level.
UTSI: Churning under the 10 day MVA on strong trade. Still looks ready to fall.

New Plays for Thursday:

Upside:

Play Date: 10/23/2003
AMSWA (American Software--$5.95; -0.06; no options): Application software
http://biz.yahoo.com/p/a/amswa.html
STATUS: Testing the breakout. Coming back on very low volume the past two sessions, testing the breakout from a 12 week cup base. Accumulation is a strong 5 to 2 (5 up price weeks on rising volume to 2 down weeks on rising volume) and a relative strength breakout on the move. Nice, orderly pullback. May come back further to test the 10 day MVA (5.64) before resuming the move, but AMSWA is right over the August high and at a good point to rally.
Volume: 110.268K Avg Volume: 119.909K
BUY POINT: $6.12 Volume=150K Target=$7.45 Stop=$5.62
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/amswa.html

Play Date: 10/23/2003
INTC (Intel--$31.22; -0.3; optionable): Semiconductors
http://biz.yahoo.com/p/i/intc.html
STATUS: Testing the 18 day MVA. INTC reported excellent results and guidance a week back, but with the KLAC news it gapped down Thursday to test the 18 day MVA (30.67) on lower, below average volume. What this looks like more than anything is an opportunity to get into the stock at a bit lower price that filled the gap.
Volume: 48.298M Avg Volume: 54.549M
BUY POINT: $31.75 Volume=65M Target=$38 Stop=$30.54
POSITION: INQ DF - April $30c (65 delta) &/or Stock
http://www.investmenthouse.com/cd/intc.html

Continuing that look solid: CHS; GIGM; IDT

Play Date: 10/13/2003
DKS (Dicks Sporting Goods--$45.68; +0.58; no options): Sporting goods stores
http://biz.yahoo.com/p/d/dks.html
STATUS: Testing the breakout. DKS has been stepping higher, breaking out two weeks back, moving laterally for a few sessions, breaking higher again, moving laterally, etc. It is now moving laterally again after a nice move up Monday. Thursday DKS was starting higher though on low volume. This one steps up rapidly, and we want to be ready for the next break higher. A market leader back on track after the breakout from a nice 9 week cup with handle base. Still a good place to move in and pick it up.
Volume: 193.8K Avg Volume: 431.09K
BUY POINT: New: $45.88 (orig. $44.68) Volume=603K Target=$55.38 Stop=$41.55
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/dks.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

No write-ups this evening.

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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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