stock split, stock research

Begin Part 3 of 4

ATK (Alliant Techsystems--$95.71; +0.29; optionable): Forecast to announce a split on 8-7-01 in conjunction with its annual shareholder meeting.
http://biz.yahoo.com/p/a/atk.html
BACKGROUND: Last announced a 2:1 split on 11-2-00 in conjunction with earnings. The stock price was $89. The annual shareholder meeting is scheduled for 8-7-01 at 2:00 pm CT at which time additional shares will be authorized.
STATUS: Has made a strong, steady move since its last split in November, and since early May has been moving in a lateral consolidation between 95 and 101, right in split range. The stock has pulled back the last few sessions, testing its 50 day MVA at its low of 94.51 today on higher volume, always a good sign as this is an important support level. It is right in the low range of the consolidation, so we will see if we get the move back up again.
BUY POINT: Aggressive: A move back over 98.75 on increased volume (up to 153,400 today; average 183,600). Breakout: Over 102 on above average volume.
POSITION: Aggressive: Stock and/or August $95 calls to buy (ATK HS). Breakout: Stock and/or November $100 calls to buy (ATK KT).

FDC (First Data--$66.10; -0.85; optionable): Working on a forecast date. Earnings were announced on 4-12-01.
http://biz.yahoo.com/p/f/fdc.html
BACKGROUND: Last split was a 2 for 1 on 11-18-96 at a stock price of $80. The annual shareholder meeting was on 1-11-01 at which time authorized shares were increased. The company has sufficient shares for a 2:1 split.
STATUS: FDC is moving in a rolling range between 64 and 69, holding in that pattern since breaking from a cup with handle in April. Today it was only able to reach up to 67.77 before pulling back down on sizable volume (1.74 million; average 1.62 million), so we will see if it is coming back to test the lows in the range (or, as last trip down, the 50 day MVA at 65.06).
BUY POINT: Breakout: 69 on continued strong volume.
POSITION: Stock and/or August $65 calls to buy (FDC HM).

PRE-SPLITS REMAINING PLAYS: With these stocks we keep an eye out, waiting for the start of a pre-split run.

New Pre-Split Plays:

FHCC (First Health--$50.45; +1.54; optionable): Insurance Broker. Splits 2:1 effective 6-26-01.
http://biz.yahoo.com/p/f/fhcc.html
STATUS: We followed FHCC as a pre-announcer and then let it go after the announcement, but now it is making an impressive move back up. Today saw the stock move beyond its 50 day MVA (48.86) as volume screamed up to 2.48 million (average 474,000). The move started back at 46, but it still looks good and clearly has momentum. We are watching possible resistance at the recent high of 51.83 as the stock makes its way back toward its high of 55.15.
PLAY: A continued move, with stock and/or August $45 calls to buy (FHQ HI - low open interest).

USPH (U.S. Physical Therapy--$24.00; -0.66; no options): Health Services. Splits 3:2 effective June 29.
http://biz.yahoo.com/p/u/usph.html
STATUS: After hitting a high of 32.05 last month the stock has pulled back to the 50 day MVA (23.30), which is serving as lower support now as the stock moves in a pennant pattern. The highs are constrained by the short-term MVA's (18 day at 24.95) although some recent intraday highs have reached over 46. Today the stock pulled back again from the upper resistance, so we will see if it can hold again and make another run at breaking out.
PLAY: Aggressive: Over the 18 day MVA on increased volume (174,900; average 188,000). Breakout: Over 26.50 on above average volume. Stock only.

Continuing Pre-Split Plays:

LNCR (Lincare Holdings--$63.95; +0.95; optionable): Health Services. Splits 2:1 effective 6-25-01.
http://biz.yahoo.com/p/l/lncr.html
STATUS: Has made a strong move back up after having tested its 50 day MVA (57.91) last week. However, the move has lost momentum, showing consecutive dojis as it approaches the recent high of 65.88. Looking for a drop back off of the dojis, but we will see if the stock can hold the 10 day MVA (62.03) this time, watching for a strong move back up from there. Of course, with the split next Monday we are watching for a move from here as well. Relative strength has broken out and buying is good.
PLAY: From here: A move over 64.25. Pullback: A move up after holding the 10 day MVA on a pullback. Positions for both buy points with stock and/or August $60 calls to buy (LQN HL).

DAKT (Daktronics--$28.79; +1.04; no options): Scientific & Technical Instruments. Splits 2:1 effective June 25.
http://biz.yahoo.com/p/d/dakt.html
STATUS: Made an outstanding pre-split move from its 50 day MVA (26.37) recently, but the last week has pulled back. It is holding over the 50 day but is battling its 10 day MVA above at 29.59 after having given up that support last Friday. Today showed a doji under that resistance, which is not a bullish pattern. However, with the split approaching we will see if we get a strong move, although it is not promising.
PLAY: A move back over the 10 day MVA, with stock.

MTON (Metro One--$56.37; +1.27; optionable): Telecom. Splits 3:2 effective June 29.
http://biz.yahoo.com/p/m/mton.html
STATUS: Has been trending up strong since breaking from a cup with handle in April, riding its short-term MVA's (10 and 18 day at 54.04 and 52.14). The stock tapped a new high today at 58.47, but could not hold on, pulling back to close with a 'tombstone' doji. That pattern signals a pullback, so we will see it MTON can hold its 10 day MVA for a move back up. Relative strength has broken out, and the stock shows excellent money flow.
PLAY: On a move up after a pullback holds the 10 day MVA, stock and/or August $50 calls to buy (KQM HJ).

CONTINUING CANDIDATES REMAINING PLAYS: When splits are not announced, we will keep the best split prospects on the report rather than continue to carry all of them in case there is a an unexpected announcement. We will continue to monitor the stocks that are trimmed and add them again when we ascertain a revised split announcement date.

ACF (Americredit--$49.52; +1.92; 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 trying to make a move back up from the 50 day MVA (46.51). The stock fell out of a promising consolidation recently but found support at the 50 day, and today gapped up and reached 50.60 at its high but pulled back to close. That can indicate a further drop in the works, so we will see if ACF can hold here (10 day MVA at 49) or if it must retest its 50 day. A bit of consolidation here would not be a surprise.
BUY POINT: After holding support, a move back over 51 on increased volume (up to 1.13 million today; average 1 million).
POSITION: Stock and/or August $45 calls to buy (ACF HI).

CBH (Commerce Bancorp--$66.50; -0.30; optionable):
http://biz.yahoo.com/p/c/cbh.html
BACKGROUND: Last announced a 5 for 4 split on 6-29-98. The stock price was $54.63. The annual shareholder meeting was on 6-20-00 at which time no additional shares were authorized. The company has insufficient shares for a 2 for 1 split.
STATUS: Has formed a bearish head-and-shoulders pattern after not being able to do much with its breakout from a cup with handle. After giving up the 50 day MVA (67.39) last week the stock has consolidated a bit under that level, showing tight patterns on low volume (up to 121,400 today; average 158,300). We will see if the stock can climb back up or if it will dip back, and on stronger selling on a move down we will look at a put play with a target at the 200 day MVA (61.38), watching the March high at 64. There was some strength with regional banks today, so we will see how it responds.
BUY POINT: A move back below 66 on above average volume.
POSITION: August $75 puts to buy (CBH TO).

CECO (Career Education--$53.00; -0.95; no options):
http://biz.yahoo.com/p/c/ceco.html
BACKGROUND: Last announced a 2 for 1 split on 8-1-00 in conjunction with earnings. The stock price was $57. The annual shareholder meeting is scheduled for 5-11-01 at 1:00 pm CDT at which time additional shares will be authorized. The company has sufficient shares for a 2 for 1 split without increasing authorized shares.
STATUS: The stock has been making its way up steadily along its 50 day MVA (50.83), and after a solid bounce last week the stock reached up near its high of 56.10 but has pulled back. Today it gapped up to 55 before pulling back on low volume (107,900; average 273,000), holding its 18 day MVA (52.72). We will see if it can hold here, but the pattern has been to test the 50 day. Target: On a break to a new high, the 60 range.
BUY POINT: Aggressive: After a test back toward the 50 day MVA, a move back up on increased volume near the average. Breakout: Over 56.10 on above average volume.
POSITION: Stock only.

IGT (International Game Technology--$63.23; -0.50; optionable):
http://biz.yahoo.com/p/i/igt.html
BACKGROUND: Based upon our research, it does not appear that IGT has ever announced a split. The annual shareholder meeting was on 3-5-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: IGT has made two solid moves up since breaking from its cup with handle in May. After hitting a high of 66.04 the stock pulled back the past week, but after tapping back to 60.23 Friday (the old trendline connecting September-January closing lows) the stock has made a move back up, today dipping back slightly on low volume (530,100; average 820,600). Has made quite a run, so we will be careful with positions. Good relative strength and solid buying.
BUY POINT: Breakout: Over 66.04 on above average volume.
POSITION: Stock and/or July $60 calls to buy (IGT GL).

ITG (Investment Tech Group--$47.75; -0.90; optionable):
http://biz.yahoo.com/p/i/itg.html
BACKGROUND: Last announced a split on 11-19-97 at a stock price of $70, and in December 1995 at $65. The annual shareholder meeting is scheduled for 5-16-01 at 1:00 pm ET at which time no additional shares will be authorized. The company has sufficient shares for a 2:1 split.
STATUS: ITG has steadily dropped back from its recent levels in the 55 range, and out of an erratic, ugly cup pattern. It is trying to find support, but after a rebound Friday the stock has fallen back the last two sessions, albeit on very low volume (72,500 today; average 229,700). For current put positions, we can ride them carefully although the action could indicate some support; on increased selling the stock has some fairly recent lows in the 46 range (our original put target), and the 200 day MVA at 44.76.
BUY POINT: Aggressive: After a failed bounce up toward 50, a move back down with increased volume near the average.
POSITION: August $60 puts to buy (ITG TL).

KMP (Kinder Morgan--$69.15; -0.61):
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: Fell back out of the tight, lateral consolidation it had formed over its 18 day MVA (69.82), and now is trying to bounce from its 50 day MVA (68.52) but is not having much success. It bounced up Monday but has drew back today from its 18 day MVA. Not much volume on the move (down to 70,900 today; average 141,300), so we will see if the stock can again hold the 50 day and try to move. It has made quite a move over the past year, more recently making a strong move up out of a saucer pattern in April, hitting a breakout high of 73.98. It has to come back with something sustained.
BUY POINT: A move back over 72 on above average volume.
POSITION: Stock and/or September $70 calls (KMP FN).

MERQ (Mercury Interactive--$54.84; +3.47; optionable):
http://biz.yahoo.com/p/m/merq.html
STATUS: Has fallen back out of its recent range. Monday it tapped near support from the March high at 50, but gapped up today. However, it could not do anything with the move up, showing a doji for the day as volume swelled (5.1 million; average 4.67 million). On a move down, perhaps with a gap, we will see if it can hold 50. We are not looking at anything right off, but if we get a bounce back up that fails after an initial drop back, we can look at put plays.
BUY POINT: After an initial move down and bounce up toward 55, selling back on continued strong volume. The initial target is 50. On a move below 50, we can look at plenty of room on a move down with the market.
POSITION: August $65 puts to buy (RQB TM).

End Part 3 of 4

stock split
stock research