stock ticker, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Wednesday: BEIQ; BID; LSCP; NAVR; OLGC; SNIC

Wednesday night play results:
AXCA: Still looks solid, ready to move.
LSCP: Big volume move higher though it did give much of it back.
SNIC: Nice break higher on strong volume.

New plays for Thursday:

Upside:

Play Date: 06/02/2004
KNSY (Kensey Nash Corp.--$34.34; +2.70; no options): Medical instruments
http://biz.yahoo.com/p/k/knsy.html
STATUS: Breakout test. KNSY surged out of an 8 month cup with handle base in mid-April, racing higher on very strong volume. It peaked near 35 and then spent the next 5 weeks testing the move, pulling back toward the 50 day EMA (30). KNSY is shot higher on strong, above average volume, continuing the breakout move. Looking for this strong stock to continue the move toward the target. That is our initial target, but if it is running strong we will let it continue beyond that level.
Volume: 212.698K Avg Volume: 144.636K
BUY POINT: $34.55 Volume=215K Target=$40 Stop=$32.13
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/knsy.html

Play Date: 06/02/2004
VTA (Vesta Insurance Grp--$6.25; +0.26; no options): Property and casualty Insurance
http://biz.yahoo.com/p/v/vta.html
STATUS: Test 18 day EMA. VTA broke out in early April, tested, and has started a move up the 18 day EMA (5.96). This is its second test of the 18 day since the breakout test, and stocks tend to make 4 to 5 such bounces up the 18 day before coming back for a deeper test. Excellent money flow and a relative strength breakout corroborates the move. Wednesday volume jumped back up to average as VTA jumped off the 18 day. Looking for a further volume move to enter.
Volume: 302.5K Avg Volume: 340.818K
BUY POINT: $6.38 Volume=450K Target=$7.54 Stop=$5.93
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/vta.html

Play Date: 06/02/2004
QQQ (QQQ Options--$36.42; -0.08; optionable): NASDAQ 100 Trust
http://biz.yahoo.com/p/q/qqq.html
STATUS: Double bottom w/handle. We are looking at this as an option play, looking to make a 34% gain or so on the breakout. If we buy 10 contracts, that returns us about $1000 profit on a successful move. The NASDAQ 100 is setting up nicely for a breakout, and that is why we are looking at this play. We typically use options on the QQQ because it leverages our return as opposed to the slow moving QQQ shares.
Volume: 103.56M Avg Volume: 110.543M
BUY POINT: $36.72 Volume=125M Target=$38 Stop=$35.55
POSITION: QQQ II - Sept. $35c (78 delta)
http://www.investmenthouse.com/cd/qqq.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.

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

GTRC: Nice lateral test of the break higher, holding its gains on lower, below average volume. The next move higher on volume is a buy point.

DNA: Gapped higher but gave back most of the move. Still, it looks ready to start its next leg.

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:

TUNE: Tried to breakout in late April, but failed. It has held up well, setting up again for another breakout attempt.

GMXR: Hit 8 in late April, sold, and had rallied back. Trying to move through, but no volume as it makes the second top, showing a doji. This low volume move back to the prior high is not a good sign and can indicate a double top.

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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