stock recommendation, stock pick

Begin part 3 of 3

THE PLAYS

Good movers Wednesday: AMSWA; CYPB; GNSC; ONNN; RIC; WMGI; CHS; NXTL

Tuesday night play results:
OPSW: Still working in a very nice pattern.
VOD: Continued the move on solid volume.
AMSWA: Stellar breakout.

New Plays for Thursday:

Upside:

Play Date: 10/29/2003
BRKS (Brooks Automation--$25.96; +0.19; optionable): Chip equipment
http://biz.yahoo.com/p/b/brks.html
STATUS: Cup. BRKS is working through an 8 week base showing excellent 4 to 1 accumulation (4 up weeks on rising volume to 1 down week on rising volume). It used the 50 day MVA (22.96) as support for the base, another indication of institutional support. Volume has started to swell the past week as it begins to form the right side of the base. We are willing to pick it up here on a strong volume move as the chips are solid.
Volume: 945.355K Avg Volume: 954.454K
BUY POINT: $26.25 Volume=1.4M Target=$31.55 Stop=$24.32
POSITION: BQE DE - Apr. $25c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/brks.html

Play Date: 10/29/2003
CCRD (Concord Communcations--$16.99; +0.09; optionable): Telecom processing systems
http://biz.yahoo.com/p/c/ccrd.html
STATUS: Testing the breakout. Broke from a 3 month base two weeks back, rallying over 18 o n the high as it surged on strong trade. It has since pulled back to test the move, holding over the 18 day MVA (16.33) on the lows. Volume has started to move back up the past two sessions, jumping up Wednesday with a big volume spike on a small price gain. That kind of action is a 'get ready' spike, indicating accumulation and that the stock is ready to resume the move higher. Solid 4 to 2 accumulation in the base, and money flow is rallying higher even as the stock moves laterally in the test. Ready to make the next move.
Volume: 369.77K Avg Volume: 101.909K
BUY POINT: $17.22 Volume=153K Target=$20.72 Stop=$16.26
POSITION: UCD DW - April $17.50c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/ccrd.html

Continuing that look solid: GEMS; NOOF; OPSW; TELM

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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 52.35 +1.83 0 0 734K 0 0
Rallying to test the 50 day MVA after the breakdown. It either breaks back over here or fails.

KKD: If it can break over 44.75 on volume it could be ready yet again.

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SUBSCRIBER WATCHLIST

We continually receive ideas for potential plays from our subscribers. Many times they are already on our watchlists, other times not. We always take a look at them and sometimes find a few pearls. This weekend we are starting a new feature where we include some subscriber choices that could develop into plays. We are not necessarily endorsing these, but want to provide a forum for subscribers with ideas that may appeal to their portfolio. Typically we will put these on without commentary, but if we see something we really like or dislike we will point it out. That way we can maybe come up with some new plays, find some plays that may fit your style, and have another great educational tool to discuss problems or good aspects about stocks our subscribers are looking at.

Member pick: IDTI has formed a 6 week cup and handle. Accumulation appears solid at 2:1. Price today approached the breakout point > 19.76 on higher, but slightly less than average volume. BO with volume > 2.5 m would target 19.

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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