stock recommendation, stock picking

Begin part 3 of 3

THE PLAYS

Good movers Tuesday: ARQL; CHU; FMTI; OHI

Monday night play results:
ADIC: Took a lower volume breather.
QTWW: Tried the move, but lower volume in the selling market. Still looks super.

New Plays for Wednesday:

Play Date: 01/27/2004
ATGN (Altigen Communications--$4.40; 0.00; no options): Telecom equipment
http://biz.yahoo.com/p/a/atgn.html
STATUS: Testing the breakout. ATGN is easing back to test the 18 day MVA (4.30) on very low, below average volume. That is exactly what you want to see on a test as that shows very few sellers. It broke out of a 16 week base in early January, the base showing strong 5 to 2 accumulation (5 up weeks on rising volume to 2 down weeks on rising volume). That set the stage for the breakout and a run. It is making its first test of that run, a great place to enter. Money flow is still strong and well ahead of the price. Showing a doji over the 18 day MVA, an indication that the pullback is nearly over.
Volume: 26.158K Avg Volume: 74.136K
BUY POINT: $4.62 Volume=111K Target=$6 Stop=$4.42
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/atgn.html

Play Date: 01/27/2004
NABI (Nabi Biopharma--$15.60; -0.01; optionable): Biotechnology
http://biz.yahoo.com/p/n/nabi.html
STATUS: Flying plateau. NABI is moving laterally in a tight range over the 10 day MVA (14.81). These patterns form after strong breakouts; it is a strong consolidation because the stock does not want to pullback but hold onto its gains. It broke from a 10 week flat base showing strong 5 to 2 accumulation in the base. Outstanding money flow moving up again ahead of the price, leading higher. Relative strength broke out and looks ready to breakout again.
Volume: 643.661K Avg Volume: 529.409K
BUY POINT: $16.06 Volume=794K Target=$19.28 Stop=$14.78
POSITION: NIQ FC - June $15c (62 delta) &/or Stock
http://www.investmenthouse.com/cd/nabi.html

Continuing that are ready for another move.

Play Date: 01/27/2004
NANO (Nanometrics--$20.64; +0.08; optionable): Scientific & technical instruments
http://biz.yahoo.com/p/n/nano.html
STATUS: Testing the 18 day MVA. NANO broke out of a 3.5 month flat base to start January, racing higher on excellent volume. It has moved laterally the past two weeks, coming back to test the 18 day MVA (19.73) Tuesday and then rebounding as volume spiked higher. This stock has been a winner for us and we are looking at picking it up on another jump higher on continued strong trade. Aggressive over 21, breakout over 22.
Volume: 1.333M Avg Volume: 545.5K
BUY POINT: $21.06 Volume=1M Target=$25.25 Stop=$19.59
POSITION: QNK FD - June $20c (61 delta) &/or Stock
http://www.investmenthouse.com/cd/nano.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

XMSR: Got ugly, plunging through the 50 day MVA on a sharp volume spike. Under a lot of distribution the past three sessions.

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.

Downside:

ICCI: Has rallied back to the 200 day MVA after a long base, but is failing at that level on some rising volume. Not a lot of downside here but there is room to sell. Bear in mind it has made a long base, albeit weaker as it formed below the 200 day MVA. That means it could fail, but you want to take your gain and move on with these.

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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