stock ticker, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Thursday: ERICY; LIFC; NFLX

Wednesday night play results:
SNIC: Started up but volume was not there. Still looks solid.
OEX: Struggling below the 18 day MVA.
CYPB: Low volume as it edged over the 10 day MVA. Still weak but may test the 18 day MVA first.
JNPR: Nice doji over the 10 day MVA. Amazing strength in a selling market.

New plays for Friday:

Upside:

Play Date: 02/05/2004
PRGO (Perrigo--$18.00; +0.73; optionable): Drug related products
http://biz.yahoo.com/p/p/prgo.html
STATUS: Test breakout. PRGO broke out from a 6 month cup with handle base in early January, raced higher and tested the 18 day MVA (17.01). Got a big wild this week, gapping higher but falling back to support at the 10 day. It held, and then Thursday exploded higher on huge volume, holding the gain. Its net more than doubled and it is getting a favorable reception. Looking to move in on a continued breakout move.
Volume: 875.088K Avg Volume: 343.727K
BUY POINT: $18.18 Volume=516K Target=$21.85 Stop=$16.98
POSITION: IQP EW - May $17.50c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/prgo.html

Play Date: 02/05/2004
YHOO (Yahoo!--$46.1; +1.15; optionable): Internet portal, etc.
http://biz.yahoo.com/p/y/yhoo.html
STATUS: Test 50 day MVA. YHOO is making a full test of the January breakout from an 11 week base that formed originally right at . . . the 50 day MVA (45.08). After some weakness in the larger nets, strength is returning (EBAY enjoyed a nice day Thursday). Thursday YHOO was up off of a Wednesday doji, moving higher on rising, slightly below average volume. Looking for an above average volume break over the short term MVA (10 and 18 day MVA at 46.34 and 46.49, respectively).
Volume: 9.428M Avg Volume: 9.941M
BUY POINT: $46.75 Volume=12M Target=$53.75 Stop=$44.96
POSITION: GBO EI - May $45c (61 delta) &/or Stock
http://www.investmenthouse.com/cd/yhoo.html

Downside:

Play Date: 02/05/2004
AVID (Avid Technology--$43; +1.07; optionable): Electronic equipment
http://biz.yahoo.com/p/a/avid.html
STATUS: Put. AVID collapsed at the end of January, tanking through the 200 day MVA (45.16) on a volume crescendo. It held at 42 and is bouncing back toward the 200 day. It hit 44.42 on the high and faded back. Still think it will make a further move higher to test the 200 day, and when it rolls back over after that test, that is when we move in.
Volume: 1.121M Avg Volume: 588.863K
BUY POINT: $44.45 Volume=600K Target=$40.35 Stop=$45.25
POSITION: AQI OI - Mar. $45p (-62 delta)
http://www.investmenthouse.com/cd/avid.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 perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.

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

XMSR: Hit the target on the put and returned us a nice gain.

TGT: Reported solid same store sales. Perhaps this could push it out of its lethargy, but it is mired in a long flat base.

SUBSCRIBER WATCHLIST

We continually receive ideas for potential plays from subscribers. Many times they are already on our watchlists, other times not. We always take a look and sometimes find a gem or two, or more. We don't necessarily endorse these, but want to provide a forum for subscribers with ideas that may appeal to other subscribers. We may just put on the ticker or we might describe our thoughts as to why or why not we think it is a buy or sell. This is a way we can all learn a bit more and maybe find a few more candidates to make us some good money.

MEDT: Testing the breakout from a 5 month shallow cup base. Showed a doji Thursday at the 10 day MVA.

Downside:

IMAX: Turning down at the 10 day MVA as it continues its drop below the 200 day MVA.

POWI: A bit extended to the downside and needs to bounce to the 10 day MVA and then it will be ready.

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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