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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers Monday: AIR; EBAY; GLNB; LCAV; RHAT; GMR
Weekend play results:
GNLB: Blasted higher on outstanding volume.
IONA: Still testing the 18 day MVA on low volume. Looks so good.
CHS: Edged up to the 50 day MVA and stopped as it had very low volume.
New Plays for Tuesday:
Upside:
Play Date: 12/22/2003
ADCT (ADC Telecom--$2.85; +0.14; no options): Telecom equipment
http://biz.yahoo.com/p/a/adct.html
STATUS: Double bottom with handle. The current 15 week base that has formed roughly over the 200 day MVA (2.50) is part of a larger 8 month base, but the action during the latter stages ahs been excellent. Accumulation during the base is a solid 4 to 2 (4 up weeks on rising volume to 2 down weeks on rising volume), and money flow is shooting higher. Volume has jumped the past two sessions as ADCT has started the breakout attempt. Looking for it to follow it up and out of the pattern.
Volume: 30.989M Avg Volume: 17.317M
BUY POINT: $2.98 Volume=26M Target=$3.85 Stop=$2.77
POSITION: - Stock (January options only)
http://www.investmenthouse.com/cd/adct.html
Downside:
Play Date: 12/22/2003
LEXR (Lexar Media--$16.3; -0.48; optionable): Flash cards ('digital film') and memory keys
http://biz.yahoo.com/p/l/lexr.html
STATUS: Put. LEXR formed a head and shoulders October through November, and then broke through the 50 day MVA (18.51) on heavy volume. It tanked to 14 and rebounded to the 18 day MVA (17.29). It fell and rebounded to the 18 day MVA again. It is finding resistance at this point, and it is starting lower again. It can fall to the recent low near 14 and make us a nice return. We like not asking it to necessarily plow new ground lower, but if it does, we will let it and go along for the ride.
Volume: 2.894M Avg Volume: 3.644M
BUY POINT: $15.97 Volume=4M Target=$13.95 Stop=$16.68
POSITION: EQG NW - Feb. $17.50p (-61 delta)
http://www.investmenthouse.com/cd/lexr.html
Continuing:
Play Date: 12/11/2003
YHOO (Yahoo!--$42.6; +0.49; optionable): Internet information
http://biz.yahoo.com/p/y/yhoo.html
STATUS: Reverse head and shoulders. Still working on the 10 week base, coming off support at 40 after tapping that level last week. YHOO is moving up off that level but volume is not coming with it. The nets were performing better Monday, but we need to see more volume from YHOO as it makes the run to the breakout
Volume: 7.489M Avg Volume: 12.505M
BUY POINT: $44.35 Volume=17M Target=$53.25 Stop=$42.22
POSITION: YHQ DV - Apr. $42.50c (56 delta) &/or Stock
http://www.investmenthouse.com/cd/yhoo.html
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.
Still looking for some fresh blood. Please forward any favorites that you feel would be good, solid inserts.
AVID, COH, DIS, GTRC, KKD, LPNT, OCR, TGT, UTSI, XMSR
Not much change in these on Monday.
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.
VRC: One of the stocks on our energy watchlist. Oil services stock trying to make the breakout from a 7 month cup with handle base, surging Thursday on tremendous volume but then coming back to test the move. It was rebounding Monday but volume was below average. Accumulation is 9 to 7, money flow is surging. It is definitely one to consider if you are looking for energy stocks that are not overextended.
NOVL: A nice play that gapped up to start November, rallied to near 10, and then worked laterally to consolidate its move. After 4 weeks of lateral movement it is trying to make the breakout with volume spiking higher at the end of last week. Volume was lower on Monday's move, but looks ready. A higher volume romp through 10 is a good entry point.
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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stock recommendation
stock investment information
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