stock recommendation, stock pick

Begin part 3 of 3

THE PLAYS

Good movers Wednesday: AMSC; ARQL; AVAN; BRKT; GMR; PPHM; SMTL; TSCO

Tuesday night play results:
INFA: Gapped higher but gave the move back.
PTEK: Another gap higher but volume was too low to support a further move.
UTEK: Still in the pattern as it posted a slight loss on lower volume. After this NASDAQ dip it looks ready to go.

New Plays for Thursday:

Play Date: 01/21/2004
ABGX (Abgenix--$15.33; +0.34; optionable): Biotechnology
http://biz.yahoo.com/p/a/abgx.html
STATUS: Cup w/handle. Volume surged Wednesday as ABGX is showing some volume spikes as it looks ready to make the breakout from the handle to its 18 week base. Accumulation in the pattern is a solid 6 to 3 (6 up weeks on rising volume to 3 down weeks on rising volume). Money flow is strong as well, surging higher as the stock moved laterally the last 8 sessions. Very nice base consolidating the move up from the low for the stock in February. Nice pattern.
Volume: 3.223M Avg Volume: 1.228M
BUY POINT: $15.98 Volume=1.8M Target=$19.18 Stop=$14.74
POSITION: AZG GC - July $15c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/abgx.html

Play Date: 01/21/2004
NTOP (Net2phone--$7.53; -0.22; optionable): Telecom on the web
http://biz.yahoo.com/p/n/ntop.html
STATUS: Testing the breakout. NTOP surged out of a 14 week cup base to start the month, showing excellent volume as it made the breakout. After reaching over 8 it has come back to test the move on lower, below average volume. Wednesday NTOP tapped the 18 day MVA on the intraday low (7.41) and rebounded to cut some of the loss. Money flow remains very strong during the pullback, and we are looking for NTOP to hold here and start the next leg higher, but we want to see volume spike up as it does.
Volume: 826.365K Avg Volume: 1.52M
BUY POINT: $8.06 Volume=2.3M Target=$9.75 Stop=$7.49
POSITION: QEN GU - July $7.50c (58 delta) &.or Stock
http://www.investmenthouse.com/cd/ntop.html

Play Date: 01/21/2004
RTI (RTI Intl. Metal--$16.47; +0.98; optionable): Industral metals mining
http://biz.yahoo.com/p/r/rti.html
STATUS: Breakout test. RTI has come back on low, below average volume to test the breakout from a 21 month cup base. After a nice breakout and run up to 19 it has come back to test the 50 day MVA (15.01). Wednesday volume shot back up as the stock moved off of that level, posting a solid gain. A good place to pick up the stock.
Volume: 245.9K Avg Volume: 79.454K
BUY POINT: $16.68 Volume=119K Target=$20 Stop=$15.98
POSITION: RTI FC - June $15c (76 delta) &/or Stock
http://www.investmenthouse.com/cd/rti.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

AVID: Forming a lateral consolidation over the 10 day MVA as it prepares for the next stage of the move.

UTSI: Breaking the 50 day MVA. Not looking good.

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.

DITC: In a strong uptrend over the 10 day MVA, galloping higher Tuesday but then fading back with the other telecoms Wednesday on lower volume. A bit extended.

RCKY: A leader we have been trying to find a way to get in. After a lateral move for the past week it raced higher Tuesday on strong volume and then paused Wednesday.

Downside:

LENS: Continuing downtrend that is bouncing on low volume back toward the 10 day MVA up at 8 but already appears to be running out of steam.

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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