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Begin Part 3 of 4

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--$50.09; -0.26; 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 3:2 split.
STATUS: ACF is trying to make a move back up from the 50 day MVA (46.92), but has slowed and turned a bit laterally after climbing over its 18 day MVA (49.60). Friday saw it form another doji as volume dipped back sharply (777,700; average 1.04 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 above average volume.
POSITION: Stock and/or August $45 calls to buy (ACF HI).

ASFC (Astoria Financial--$57.52; -0.57; optionable): Savings and Loan.
http://biz.yahoo.com/p/a/asfc.html
BACKGROUND: Last split its stock in 1996 with the split at a price of $56. The annual shareholder meeting was on 5-16-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: ASFC has rallied, tapping up to its high of 58.50 intraday Thursday before pulling back Friday. The drop was on volume that was strong and only slightly lower than what we saw the preceding session (648,700; average 355,000), and lighter volume would have been a better sign of strength. Nonetheless, it is holding for the moment over its early-June high of 57.50 and its 10 day MVA (57.09), and we will see if it can hold. It has been in a handle (formed just after breaking from a saucer), and with the recent move up the stock has formed another saucer out of the handle. Target on breakout: 67.
BUY POINT: Aggressive: A move up on continued strong volume after holding the 10 day MVA. Stop: 53.09. Breakout: Over 58.50 on continued strong volume volume. Stop: 54.40.
POSITION: Both buy points: Stock and/or July $55 calls to buy (AQR GK).

CBH (Commerce Bancorp--$68.40; 0.00; optionable):
http://biz.yahoo.com/p/c/cbh.html
BACKGROUND: Last announced a 5:4 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 2:1 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 (67.48) this week, although it was not a strong move. However, it managed to hold at least for now, showing a doji Friday just over its 18 day MVA (68.23). We will see if it holds; it will take a strong move in either direction to entice us. On a move down through support, the recent low was 66.10, and we would target the 200 day MVA (61.62) with a put play. It could hold off of this pattern, but we will not look at upside possibilities for now.
BUY POINT: A move below 66 on above average volume (up to 116,000 Friday; average 154,700).
POSITION: August $75 puts to buy (CBH TO).

CHBS (Christopher & Banks--$33.15; -0.31; optionable): No announcement this week.
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: Is now struggling after taking a fall back from its May high at 47.50. It made a bit of a move up with earnings Thursday, but gapped up and pulled back Friday, indicating a drop ahead. It has a ways to go before we are interested, although still in split range. Nothing for now.

KMP (Kinder Morgan--$68.03; -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 (69.33), and now is trying to hold its 50 day MVA (68.47). After trying a bounce up from that support earlier in the week it has pulled back down below it, showing consecutive loose dojis just under that level, but holding recent lows at 68. Volume has been rising but it is still below average (119,000 Friday; average 140,300), so we will see if the stock can hold 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--$54.47; -2.95; optionable):
http://biz.yahoo.com/p/m/merq.html
STATUS: Has fallen back out of its recent range, and a climb back this week could not get past resistance at the 10 day MVA (57.29; 50 day ahead at 60.51). Friday MERQ pulled back from that resistance, as we thought it might, but volume remained lower than we would want on entering a play (2.67 million; average 4.6 million). We will see if the downward move continues, looking for more selling volume in a weak volume. The recent low was 51.
BUY POINT: In a weak market, a move through 51 on increased volume near the average. 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).

POST SPLITS REMAINING PLAYS:

BAX (Baxter International--$52.58; -1.42; optionable): Health Services. Split 2:1 effective 5-30-01.
http://biz.yahoo.com/p/b/bax.html
STATUS: BAX made a great run post-split, finally pulling back Friday off of Thursday's high of 54.50. It tested all the way down to 51 (its trendline connecting April-May lows) before recovering, moving on continued strong volume (3.37 million; average 1.62 million). Looking for it to hold the 52 range on this pullback (10 day MVA at 51.58) and for volume to settle down a bit. After a rest and consolidation, we could see some more. The recovery Friday was solid.
PLAY: A move up after the stock holds the 52 range on lower volume, with stock and/or August $50 calls to buy (BAX HJ).

BRCD (Brocade--$37.54; -2.46; optionable (UBF): Telecom
http://biz.yahoo.com/p/b/brcd.html
STATUS: Fell back below its recent rolling range this week, but like MERQ the stock hit resistance that turned it back at the 10 day MVA (39.57; 50 day at 41.33). Again, not a lot of selling volume on Friday's drop back, and the recent low is just ahead at 34.34. If we get some stronger selling in the market, BRCD could still be a put play, with some room to the downside once it clears the recent low. We would target 30 initially.
PLAY: In a weak Nasdaq, a drop below 34.34 on increased volume near the average (15.3 million; Friday down to 10.5 million), with August $50 puts to buy (UBF TJ). In this market we will carefully be ready for a bounce back.

CAKE (Cheesecake Factory--$25.60; -1.07; optionable): Restaurant. Splits 3:2 effective 6-19-01.
http://biz.yahoo.com/p/c/cake.html
STATUS: After blasting up Thursday to close just under its early May high at 26.80, CAKE pulled back again Friday. However, after moving all the way back down to Thursday's low near the 50 day MVA (24.24), it managed a move back up to close. That much is encouraging, but we could still get a move back down before a sustained move up. We will see if it can hold the 25 level for that move.
PLAY: Aggressive: After a pullback that holds the 25 range, a move back up on increased volume, with stock and/or October $23.38 calls to buy (OCF JX).

DGX (Quest Diagnostics--$68.05; -3.95; optionable): Health services. Split 2:1 June 1.
http://biz.yahoo.com/p/d/dgx.html
STATUS: Another stock that made a strong move Thursday, actually a strong move up all week, but that pulled back with some conviction Friday. Volume was down but still strong at 1.04 million (average 424,300), but the stock held to close over recent consolidation highs in the 67.50 range. We will see if it can continue to hold, with the 10 day MVA below at 66.06, and watch for DGX to continue to show strength. It has held up strong after the split and the recent move was very strong. Target: 80.
PLAY: Looking for it to hold the 66-67 level, playing a move back up on continued strong volume, with stock and/or August $65 calls to buy (DGX HM).

EMLX (Emulex--$32.70; -0.11; optionable (UMQ): Computer Hardware: Peripherals
http://biz.yahoo.com/p/e/emlx.html
STATUS: EMLX is struggling below resistance in the form of several moving averages, showing a second doji under its 10 day Friday (33.56; 50 day at 36.09). It has been holding 30 at its lows, so we will see if, in a weak market, the stock makes a move back below the 30 level. Our initial target will be in the 25-27 range.
PLAY: In a weak market, a drop back below 30 on average or better volume (down to 3.95 million Friday; average 66.26 million), with August $40 puts to buy (UMQ TH).

FIC (Fair Isaac--$53.37; -1.01; no options): Split 3:2 effective June 5.
http://biz.yahoo.com/p/f/fic.html
STATUS: Business services. The stock has made a great run for us since breaking out from a cup with handle in January back in the 35 range. After a couple of more patterns, the stock is now making steady progress up its short-term MVA's (53.17 and 52.46, respectively), in a little ascending wedge now. It pulled back Friday on low volume and held the 10 day, a higher low again if it can hold. We will see if it can breakout yet again, but with any positions we will use care with stops as it has made quite a big run. Still shows strong money flow and buying.
PLAY: Aggressive: A move over 55 on average or better volume (95,300; average increased volume, with stock.

JNJ (Johnson&Johnson--$52.39; -0.63; optionable): Drugs. Split 2:1 June 12.
http://biz.yahoo.com/p/j/jnj.html
STATUS: Showed a classic topping sign Wednesday with a 'tombstone' doji (doji after finishing off the intraday high), and it dropped off of that pattern. Friday JNJ gapped down and tapped its 18 day MVA (51.43; at its early June high) at its low before managing to push back up. JNJ has been strong, moving along an uptrend since late March, and making a move post-split before the recent pullback. It could have some more strength ahead, with volume on the recovery Friday up to 10.47 million (average 5.84 million). We will see if it can hold the 18 day and make a strong move back up toward the recent high at 54.20.
PLAY: Aggressive: A move over 52.80 (Friday's high) on continued strong volume, with stock and/or October $50 calls to buy (JNJ JJ). Stop: 49.10 (50 day MVA at 49.69).

LH (Laboratory Corp--$79.30; +0.30; optionable): Health Services. Split 2:1 June 11.
http://biz.yahoo.com/p/l/lh.html
STATUS: Pulled back post-split but has held strong over its 18 day MVA (76.90), wedging over that level in a handle to a cup (dating from early March). It moved up off of a Wednesday doji, but the move was not strong, with volume decreasing and coming in rather low on a doji Friday, formed after testing back toward the 18 day. We will see if it can keep the strength and take out the recent high. Still showing solid relative strength, money flow and buying.
PLAY: Aggressive: After holding support here, move back over 81 (recent pre-split high at 82.50) on increased volume (443,600 Friday; average 488,300), with stock and/or August $75 calls to buy (LH HO). Breakout: 82.63 on volume of 720,000, with stock and/or August $80 calls to buy (LH HP).

SEBL (Siebel--$42.26; -2.50; optionable) (SGW): Application Software
http://biz.yahoo.com/p/s/sebl.html
STATUS: After getting hammered last week (and falling out of a head-and-shoulders pattern), SEBL made a move back up but has been stymied again its 50 day MVA (44.73). Friday it pulled back from that level, but not on severe selling volume (down to 10 million; average 16.7 million). We will see if it has the power to push back up, but if the market shows more weakness this one could pull right back down again to the recent low at 36. We will need to see some more enthusiastic selling to take positions.
PLAY: A move back through 40 on average or better volume, with August $55 puts to buy (SGW TK).

WFMI (Whole Foods--$26.70; -0.09; optionable): Grocery Stores. Split 2:1 June 5.
http://biz.yahoo.com/p/w/wfmi.html
STATUS: Has formed a long handle to a cup pattern, and it was in a nice, flat consolidation until dropping back this week. It hit down to its 10 day MVA (26.34), showing a bullish 'shooting star' doji over that level. The stock hit up to its 10 day MVA at its intraday high of 27.25 before pulling back, moving on low volume (300,300; average 484,000). Looking for a bounce back after this shakeout.
PLAY: Aggressive: Over the recent consolidation high of 28.50 on above average volume. Breakout: 29.55 on volume of 720,000, with stock and/or August $27.50 calls to buy (FMQ HY).

Good Investing!
Jon Johnson and the Stock Split Report 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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