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Begin part 3 of 3

THE PLAYS

Good movers Thursday: ATRM; BEIQ; NAVR; ULGX

Wednesday night play results:
AKAM: Held steady on lower volume, forming something of a handle to the solid move to this stage.
MACE: Gapped higher but could not continue the move.
SMTC: Continued to move higher, but the volume backed way off so we waited to see if it comes back some for a better entry point.

New plays for Friday:

Upside:

Play Date: 05/27/2004
SBSE (SBS Technologies--$18.70; +0.44; no options): Business software services
http://biz.yahoo.com/p/s/sbse.html
STATUS: Breakout test. SBSE shot out of a 16 week cup with handle base 7 sessions back, surging on strong volume. It is now making its first test of that move, pulling back toward the 10 day EMA (17.86) Wednesday, then jumping higher Thursday on very solid, rising volume. Strong stocks make 4 to 5 bounces off the 10 or 18 day EMA before a further rest is needed. That makes this a good entry point for the stock. Strong 5 to 2 accumulation in the pattern (5 up price weeks on rising volume to 2 down price weeks on rising volume). Money flow is surging higher ahead of price and relative strength is ready to break out.
Volume: 217.16K Avg Volume: 91.5K
BUY POINT: $19.05 Volume=200K Target=$22.88 Stop=$17.72
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/sbse.html

Play Date: 05/27/2004
SWW (Sitel--$3.15; +0.16; no options): Management services
http://biz.yahoo.com/p/s/sww.html
STATUS: Cup w/handle. Volume has surged this week as SWW makes a run toward a breakout from its 15 week base. Solid 5 to 3 accumulation in the base shows money moved into the stock and sets a good foundation for a good breakout and run. Strong money flow leading higher ahead of price, and relative strength is ready for another breakout.
Volume: 427.4K Avg Volume: 135.909K
BUY POINT: $3.24 Volume=204K Target=$4.06 Stop=$3.01
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/sww.html

Play Date: 05/27/2004
ZEUS (Olympic Steel--$13.61; 0; no options): Steel and iron
http://biz.yahoo.com/p/z/zeus.html
STATUS: Double bottom w/handle. After a solid breakout in October and run to early April ZEUS needed a rest. It formed this nice 7 week base near the 50 day EMA (12.29) and is now pulling back to form the handle where the last sellers are shaken out. Excellent money flow leading higher ahead of price even as it makes the pullback to form the handle. Volume jumped Thursday as it gapped lower but then recovered. Looks ready for another breakout as the metals improve once more.
Volume: 218.29K Avg Volume: 168.727K
BUY POINT: $14.31 Volume=253K Target=$17.18 Stop=$13.31
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/zeus.html

Continuing upside plays:

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.

ALDN, BRCM, CECO, COH, DNA, EBAY, GTRC, LPNT, TGT

TGT: volume is creeping back up as it comes off the 50 day EMA. Could give us an entry if it can move past 45 on strong trade.

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:

BFAM: Nice cup forming along the 50 and 200 day SMA. About 50K average daily trade.

EFJI: One we have looked at before. Showing excellent volume as it comes off the 50 day EMA test.

MIPS: Nice cup with handle and started the breakout Wednesday on big volume. Turned back Thursday on lower trade but still holding the handle.

TYC: A nice breakout as it shows it is turning it around after the looting.

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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