stock watch, stock split

Begin Part 3 of 4

THQI (THQ Inc.--$54.60; -2.50; optionable): Forecast to announce a split on 7-26-01 in conjunction with earnings. At this time the company cannot confirm this date.
http://biz.yahoo.com/p/t/thqi.html
BACKGROUND: Last announced a 3:2 split on 10-26-99 in conjunction with earnings. The stock price was $44. Prior to that announced a 3:2 split on 7-23-98 in conjunction with earnings. The stock price was $33. The annual shareholder meeting was on 7-21-00 at which time no additional shares were authorized; however, the company has sufficient shares for a 2:1 split.
STATUS: Has been a strong performer, breaking from a cup with handle in January and making several trend runs since then, going steadily upward. We have been looking for a pullback and possible test of the 50 day MVA (46.85), but it has continued to show strength, although today it pulled back on strong volume after showing topping signs with a couple of dojis in preceding sessions. The stock closed on the 10 day MVA, and it has tapped down recently to the 18 day, currently at 52.90. Strong stocks typically test their 50 day MVA's periodically, and we will see if THQI finally pulls back a bit or consolidates as it goes toward its forecast date.
BUY POINT: After a pullback and perhaps a consolidation in the 47-50 range, a strong move back up on continued strong volume.
POSITION: Stock and/or September $40 or $45 calls to buy (QHI IH or QHI II).

ATK (Alliant Techsystems--$92.25; -2.50; 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, but the last week has peeled back steadily. ATK had formed a lateral consolidation since early May, but today's move took it back below the 50 day MVA (94.19), tapping the May low at the intraday low of 91.50. We will see if the stock can make a quick turnaround to bring it back over the key support of the 50 day and back into the consolidation. Nothing for Friday.

ADVP (Advancepcs--$59.61; +0.31; optionable): Health services. We are working on a date for this one.
http://biz.yahoo.com/p/a/advp.html
BACKGROUND: Last announced a 2 for 1 split on 10-12-99 at a stock price of $50. The annual shareholder meeting was on 12-7-00 at which time no additional shares were authorized. 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: ADVP pulled back hard last week, but the last few days has made a bit of a recovery, climbing back over its 50 day MVA (59.17). However, volume was big on the selling back, bigger than the low volume that plagued the stock on its steady move up in May. Consequently, we will continue to look for weakness. Off of the tight doji just under its 10 and 18 day MVA's (59.74 and 60.49), we will see if ADVP sells back down on big volume (down today to 602,200; average 840,800). The recent low on the last move was 54.57, and we will look closely at that level on selling back. Below that is the next level of support at the 50 range from November, March and April highs.
BUY POINT: A strong move back below the 50 day on above average selling volume.
POSITION: August $70 puts to buy (QVD TN).

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

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: The stock was trying to form something of a pennant pattern, squeezing between its 50 day MVA to the downside (23.28) and its 18 day to the upside (24.56). Today, however, USPH fell hard through the 50 day, hitting all the way down to 20.40 before recovering to close. Volume was big at 379,200 (average 188,000), so we will see if the late upward momentum can sustain to push the stock back up into its recent range.
PLAY: Aggressive: Over the 18 day MVA. Breakout: Over 26.50 on above average volume. Stock only.

MTON (Metro One--$57.37; +1.32; 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 54.95 and 53.05). The stock tapped a new high today at 58.70, pulling back a bit to close as volume dipped (292,700; average 448,700). The stock has some pre-split momentum, but we must be cautious as it could be due to test back toward its 50 day MVA (46.46). Still, we want to catch the move up. Relative strength has broken out, and the stock shows excellent money flow.
PLAY: On a continued move up from here with stock and/or August $50 calls to buy (KQM HJ).

LOW (Lowe's--$75.96; +1.41): Splits 2:1 on July 2.
http://biz.yahoo.com/p/l/low.html
STATUS: Has been strong since breaking from a cup with handle in May, trending up along its short-term MVA's (10 and 18 day at 74.92 and 73.18, respectively). It has really taken off the last four sessions from the 18 day MVA, and is somewhat extended at the moment, past 5% beyond its breakout from a small ascending wedge and at about the level over the 10 day where we have seen prior pullbacks. A bit extended at this point, so for new positions we will watch for LOW to come back and test the 10 day, looking for a strong move back up off of that level.
PLAY: A move up after a lower volume (up to 3.7 million today; average 3.12 million) pullback to test the 10 day MVA, with stock and/or August $70 calls to buy (LOW HN - low open interest).

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--$50.35; +0.50; 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 (46.79), and has slowed down a bit after taking out its 18 day MVA (49.55). Today the stock showed a second consecutive loose doji, with volume still strong at 1.3 million (average 1 million). ACF has been very strong over the past year, forming a base-on-base pattern (consecutive cups with handle), and recently hit a high of 55. Looks as if it is just taking a rest right here.
BUY POINT: After holding support at the 18 day, a move back over 51 on increased volume.
POSITION: Stock and/or August $45 calls to buy (ACF HI).

CBH (Commerce Bancorp--$68.40; +0.70; 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. It has managed to move back over the 50 day MVA (67.44), although not in convincing fashion (volume down to 71,800 today; average 158,000). We could get a test back from here, and will see if it can hold support at the 50 day. If it drops back below the 50 day, we could still have a put play. Nothing for Friday.

CHBS (Christopher & Banks--$33.46; +2.26; optionable): No announcement with earnings today.
http://biz.yahoo.com/p/c/chbs.html
BACKGROUND: Last announced a 3:2 stock split on 1-17-01 at a price of $34. Before that CHBS also had 3:2 splits in July of 2000 at $35 and in December 1999 at $26.
STATUS: Gapped down and then made a solid move back up on earnings. The stock moved on solid volume (803,000; average 500,800), hitting up to 34.55 before pulling back below the 10 day MVA (33.93) to close. Not in a position to jump aboard now, as it has taken a serious drop and faces quite a bit of resistance.

IGT (International Game Technology--$63.45; +0.85; 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 but is holding support at an older trendline connecting September-January closing lows, at 62. It bounced up a bit from that level today, but it has been on a solid run and might need to consolidate a bit before making another move. Still shows good relative strength and solid buying.
BUY POINT: Breakout: Over 66.04 on above average volume (down to 799,100; average 820,600).
POSITION: Stock and/or July $60 calls to buy (IGT GL).

ITG (Investment Tech Group--$46.87; -0.48; 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 tapped the 200 day MVA at its low Wednesday, but its bounce was short-lived, pulling back today. Dropping.

KMP (Kinder Morgan--$68.26; +0.23):
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 (69.48), and now is trying to hold its 50 day MVA (68.49) but is not having much success. It tried a bounce up Monday but drew back and today showed a doji just under that level. There has not been a lot of volume (100,600 today; average 141,400), 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, but the oil and gas sector is just not as strong as it was.
BUY POINT: A move back over 72 on above average volume.
POSITION: Stock and/or September $70 calls (KMP FN).

MERQ (Mercury Interactive--$57.42; +0.11; 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 its move back up has been on steadily decreasing volume (down to 2.6 million today; average 4.67 million). Today it showed a tight doji just under the resistance of its 10 day MVA (57.92), and that pattern sets up for a fall if we get a weak market. In that instance, we can look at a put play.
BUY POINT: In a weak market, a move down on increased volume near the average. 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 $70 puts to buy (RQB TN).

MMM (Minnesota Mining--$116.34; -2.26):
http://biz.yahoo.com/p/m/mmm.html
BACKGROUND: Last announced a 2:1 split on 3-15-94 in conjunction with a board meeting. The stock price was $102. The annual shareholder meeting is scheduled for 5-8-01 at 10:00 am CT at which time no additional shares will be authorized.
STATUS: Was in a promising consolidation, but dropped back the last three sessions, with strong selling the last two days. Today it gapped down below its 50 day MVA (117.80), indicating serious weakness, with volume hitting up to 3.85 million (average 2.18 million). It has support at 115 from the lows in its early-May handle. We will see if it moves back up to test the 50 day; if it fails, we can look at a put play on strong selling. Our initial target on a downside play would be the 200 day MVA, at 106.98.
BUY POINT: A move back down on continued strong selling volume after a failed test of the 50 day MVA.
POSITION: August $130 puts to buy (MMM TF).

NVDA (Nvidia--$91.71; +1.70; optionable): Semiconductor.
http://biz.yahoo.com/p/n/nvda.html
BACKGROUND: The company last announced 5-16-00 after the close with earnings. Price was at $94, but the stock rose $8.74 that day in anticipation.
STATUS: NVDA has made at least four trend runs up its trendline connecting March and May closing lows, but finally has dropped back. The stock dropped rather heavily to its 50 day MVA (84.91) earlier this week, but managed a strong bounce up, as we would expect from a leading stock. It tried to move up again today, but encountered trouble at its 10 day MVA (91.77), so we will see in market strength if the stock can sustain the move back up toward the high at 100.
BUY POINT: Aggressive: After showing that it can hold the 50 day, perhaps consolidating a bit, a strong move back over 95 on continued strong volume.
POSITION: Stock and/or September $90 calls to buy (RVU IR).

End Part 3 of 4

stock watch
stock split