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Begin part 3 of 3

THE PLAYS

Good moves Wednesday: ESMC; GILTF; IPT; MAMA; RATE; WOOF; OMNI

Tuesday night play results:
GILTF: Surging on tremendous volume.
ESMC: Another one surging on outstanding trade.
NSS: Still getting ready on strong volume.

New plays for Thursday:

Upside:

Play Date: 03/17/2004
AWRE (Aware, Inc.--$4.09; +0.23; no options): Business software
http://biz.yahoo.com/p/a/awre.html
STATUS: Breakout test. Tapped down to the 50 day MVA (3.72) on the Wednesday low and then rebounded to pose a modest gain. Volume rose but was still below average as it did . AWRE is testing the breakout 19 week base, exploding higher 2 weeks back on strong trade. It has tested the 50 day on much lower, below average volume, showing very few sellers as it made the test. Accumulation in the base is a solid 6 to 1 (6 up price weeks on rising volume to 1 down price week on rising volume). That shows solid money moving into the stock during the base. Money flow is surging ahead of price, and we are looking for AWRE to follow it higher.
Volume: 54.384K Avg Volume: 64.454K
BUY POINT: $4.22 Volume=97K Target=$5.12 Stop=$3.92
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/awre.html

CNMD (Conmed--$29.03; +0.63; optionable): Medical appliances
http://biz.yahoo.com/p/c/cnmd.html
STATUS: Flying plateau. CNMD broke out from a 3 month base in November and rallied straight up to 30. It needed a breather and started on the next base, the current 6 week pattern that has formed over the 18 day MVA (28.54). Volume backed off this month as the range narrowed, just what you want to see. Volume spiked Friday and again Wednesday. Solid 3 to 0 accumulation in the pattern (3 up price weeks on rising volume to 0 down price weeks on rising volume). The stock was on the move Wednesday but gave back some of the gain. Very solid with relative strength already breaking out ahead of price; a very bullish sign. Strong money flow as well. Looking for it to make the breakout and follow the money flow.
Volume: 276.728K Avg Volume: 153.59K
BUY POINT: $29.62 Volume=230K Target=$35 Stop=$27.55
POSITION: KQD HF - Aug. $30c (45 delta) &/or Stock
http://www.investmenthouse.com/cd/cnmd.html

Continuing ready to move again:

Play Date: 03/17/2004
TKO (Telkonet--$4.55; +0.47; no options): Information technology software
http://biz.yahoo.com/p/t/tko.html
STATUS: Breakout test. TKO is another stock with a big breakout to start the month and that tested the breakout during the recent selling. Volume faded all the way down as the stock sold back to the 18 day MVA (4.12). It tapped that level this week and then spiked above average Wednesday as TKO jumped back up. Excellent money flow is leading the way, and we are ready to move in as it continues the breakout move on strong trade.
Volume: 598K Avg Volume: 366.636K
BUY POINT: $4.66 Volume=500K Target=$5.62 Stop=$4.29
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/tko.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, EBAY; GTRC, HD; KKD, LPNT, OCR, TGT, TJX; UTSI, XMSR

XMSR: Making the breakout on strong, above average volume.

COH: Holding at support at 40 and trying to start the rebound. Will need more volume.

EBAY: Still forming up quite nicely in its 8 week 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.

Upside:

HZO: In a continuing rally up the short term MVA. It has rallied up the 50 day since breaking out in October. This one really burns us because we saw the pattern but did not believe it. Some day that Hatteras is going to be in the boat slip.

CEC: Chuck-E-Chez. Just split and is making a nice test of the 18 day MVA. Held that level Wednesday with a nice, tight doji as volume spiked. Could be ready to continue the breakout that started in late February. This is its first real test.

Downside:

MMPT: Low volume bounce up to the 10 day MVA after a hard tank lower last week. In position to roll over. No options so a straight short sale.

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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