stock recommendation, stock option

Begin part 3 of 3

THE PLAYS

Good movers Wednesday: AIRN; AVAN; BRKT; CORI; ONNN; SYMM; TGA

Monday nigh play results:

ARQL: Still testing back, forming a new handle.
CORI: Breaking higher on huge trade.
FLO: Low volume bounce up to test the 50 day MVA. Needs to roll over on more volume here.

New Plays for Thursday:

Upside:

Play Date: 01/14/2004
OPNT (Opnet Tech--$17.72; +0.25; no options): Internet software and services
http://biz.yahoo.com/p/o/opnt.html
STATUS: Ascending triangle. Wednesday OPNT was trying a breakout move, rallying to 18.85 on the high but then reversed to give most of the move back. Still, it is a very nice 7 week base sporting strong 3 to 0 accumulation (3 up price weeks on rising volume to 0 down price weeks on rising volume). Money flow is storng and continues to move higher ahead of price. OPNT is ready for the breakout move, and we just need to be patient and let it make the next breakout, wanting it to be holding the move toward the close.
Volume: 462.941K Avg Volume: 170.045K
BUY POINT: $18.22 Volume=255K Target=$21.85 Stop=$16.91
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/opnt.html

Play Date: 01/14/2004
PKZ (Petrokazakhstan--$24.52; -0.34; optionable): Kazakhstan oil and gas exploration
http://biz.yahoo.com/p/p/pkz.html
STATUS: Testing the breakout. PKZ broke out from a 9 week cup with handle base to start the new year, blasting higher on outstanding volume. Accumulation in the base is a strong 5 to 2, setting the foundation for a good breakout and run. It rallied to 25.78 on the high and has pulled back to the 10 day MVA (24.07) and held. It started to rebound Wednesday, but volume was still below average. We want to see that volume hike up above average as the move continues.
Volume: 341.3K Avg Volume: 497.59K
BUY POINT: $24.92 Volume=746K Target=$29.95 Stop=$23.16
POSITION: PKZ EE - May $25c (53 delta) &/or Stock
http://www.investmenthouse.com/cd/pkz.html

Continuing play ready to start up again:

Play Date: 01/14/2004
CTRA (Centra Software--$4.86; +0.17; no options): Business software
http://biz.yahoo.com/p/c/ctra.html
STATUS: Testing the breakout. CTRA is moving laterally over the 10 day MVA (4.62) after a tremendous breakout move 8 sessions back that took it out of a solid 4 month base that formed along the 50 day MVA (4.01). Volume has dropped off well below average the past three sessions as it moves laterally, indicating no selling. In these flat breakout tests (a.k.a., flying plateaus), when the 10 day MVA rises up to meet the stock that typically starts the next move. Money flow is excellent and is still moving up ahead of price even as the stock moves laterally.
Volume: 123.693K Avg Volume: 226.727K
BUY POINT: $5.04 Volume=305K Target=$6.32 Stop=$4.61
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/ctra.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.

AVID, COH, DIS, GTRC, KKD, LPNT, OCR, TGT, UTSI, XMSR

DIS: Nice flying plateau after the breakout. Volume is starting to surge the past two sessions, indicating it may be ready to make the next move higher. A strong volume move over 25 is the next entry point.

XMSR: Holding at the 18 day MVA and rebounding on a huge volume surge. Looks ready to continue the move after the breakout test.

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. We are including 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.

AGIX: Formed a reversed head and shoulders over the 200 day MVA in November and December and then broke higher a week back. It has rallied up to 18, right below the October high. It may move laterally the next few sessions to consolidate and then make the next move.

CLN: Preparing for the breakout from the 7 month base. Volume has been jumping the past two weeks, a sign that the stock is getting ready to make a move. This is one that is on our watchlist as well.

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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