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Begin Part 4 of 4

PRE-SPLITS REMAINING PLAYS: With these stocks we keep an eye out, waiting for the start of a pre-split run.

DFXI (Direct Focus--$39.20; -0.80; optionable): Announced a 3:2 split, effective 8-14.
http://biz.yahoo.com/p/d/dfxi.html
STATUS: DFXI has sold back rather hard, taking out its 50 day MVA (42.44) Wednesday with sharply higher volume, and is now holding just over its up trendline connecting January and May closing lows, at 38.60. The split is Tuesday, so there is but one day for a move, and not much room before hitting the resistance of the 50 day. Only a quick play, and for the very aggressive.
PLAY: Very aggressive: A move over 40, with stock and/or September $35 calls to buy (DQF IG - low open interest).

KMP (Kinder Morgan--$74.06; +0.54: optionable): Splits 2:1 effective September 4.
http://biz.yahoo.com/p/k/kmp.html
STATUS: Finally got the breakout move on Thursday, and Friday the stock moved up a bit more and made a new closing and all-time high (intraday high at 74.09). The pattern Friday was a loose doji with lower volume (114,300; average 111,600), so we will see if it was merely resting or if it is going to test the breakout after this short move. We will watch it carefully as we have seen a lot of short-lived breakout attempts in this market. Target: 82.
PLAY: From here: Over 74.50 on increased volume, with stock and/or September $70 calls (KMP FN). Stop: 63.40.

FRK (Florida Rock Industries--$51.75; +0.75; no options): Announced a 3:2 stock split last week, effective September 4.
http://biz.yahoo.com/p/f/frk.html
STATUS: After breaking out of a brief cup (6 weeks long, mid-March to May), FRK moved into a shallow saucer, breaking out to a new all time high (56.40) in mid-July. It has steadily dropped since then, over the course of the last week giving up a promising pennant pattern. It appears to have support at the 50 day MVA (49.76), which is also at the level of the left side highs in the saucer. Friday FRK moved up a bit but could not climb over resistance of the short-term MVA's (10 day at 51.84), as volume was up but below average (37,900; average 44,700). We will see if it can gather strength for a run up going into the split. The builders are having a hard time. Initial target: 65.
BUY POINT: Aggressive: Over 52.50 on average or better volume. Stop: 48.83.
POSITION: Stock only.

CECO (Career Education--$60.47; -2.53; no options): Announced a 2:1 stock split, with the effective date TBA.
http://biz.yahoo.com/p/c/ceco.html
STATUS: CECO made a good move after the announcement last week, hitting a new high (67.09) but pulled back. It tried a move Friday, hitting up to 64, but ultimately pulled back, closing near the 50 day MVA (59.16). The 50 day has been strong support for the stock, and it has ridden that level since the beginning of the year. We will see if it can hold and make a higher low, losing some of the recent volatility and moving back up in what is potentially shaping up as a pennant pattern.
PLAY: After holding the 50 day, a move back over 65 on stronger than average volume, with stock only. Stop: 60.45.

CONTINUING CANDIDATES REMAINING PLAYS: When splits are not announced, we will keep the best split prospects on the report rather than continue to carry all of them in case there is a an unexpected announcement. We will continue to monitor the stocks that are trimmed and add them again when we ascertain a revised split announcement date.

ACF (Americredit--$60.01; -0.14; optionable): Credit Services.
http://biz.yahoo.com/p/a/acf.html
BACKGROUND: Last announced a 2:1 split on 8-18-98 at a stock price of $35. The annual shareholder meeting was on 11-7-00 at which time no authorized shares were increased. The company does not have sufficient shares for a 2:1 split, but does have sufficient shares for a 3:2 split.
STATUS: ACF has dipped back from its recent breakout (high 64.90), but has been able to hold strong over its 18 day MVA (59.92) and the range of its July highs. After earnings Tuesday evening the stock gapped up but pulled back on very heavy volume, but it has refused to give ground. Volume dipped back Friday as the stock made a slight move (828,500; average 1.04 million). We will see what ACF does here; it has been very strong and made a big rise over the past year, so we are mindful that it could go either way, and with any move to the upside we will be careful to protect our positions. Target on a new breakout: 70.
BUY POINT: Aggressive: A bounce over 62 (10 day MVA at 60.57) on above average volume. Stop: 57.66.
POSITION: Stock and/or November $55 calls to buy (ACF KL).

ACS (ACS Inc.--$77.70; -0.78; optionable):
http://biz.yahoo.com/p/a/acs.html
BACKGROUND: Last announced a 2:1 split in October 1996 at a stock price of $60. The annual shareholder meeting was on 10-26-00 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: ACS has been steadily trending up for the past year, and made a nice run into earnings, but dropped back off with the announcement last week, and has since continued to come back to test its mid-July breakout over the June high at 77.50. It is now showing a consolidation below the short-term MVA's (10 day at 79.24), holding over the 50 day (76.48). Volume has been low (down to 236,600; average 764,000) and it may need to consolidate a bit before it continues up, especially given its steep run up into earnings. Still well within split range.
BUY POINT: Aggressive: If it can hold and consolidate, a move back over 80 with above average volume. Stop: 74.40. We will carefully watch the high at 86 as a possible resistance point where we could take profits.
POSITION: Stock and/or October $75 calls to buy (ACS JO).

ASW (ACLN Ltd--$37.81; +0.06; no options): Former ACLNF (Shipping).
http://biz.yahoo.com/p/a/aclnf.html
BACKGROUND: Last announced a 5:4 split on 8-14-00 at a stock price of $39. The company has sufficient shares for a 2:1 split.
STATUS: ASW has shown some volatility, but has been making higher lows since dipping back to test a breakout from a cup with handle pattern in June. After a solid bounce from the 50 day MVA (33.42) early this month, ASW held the short-term MVA's (18 day at 35.72) on a pullback and bounced up Thursday. Volume was not that great, however, and Friday the stock could only show a doji on slightly lower volume of 133,900 (average 140,400). The pattern could indicate another pullback, and we would look for that move to hold the 36-37 range, but we will also look for a move out to a new high over 39.55. Excellent relative strength and money flow. Target on a breakout: 48, but with the volatility we have seen we could take profits before that point on a good move that weakens or reverses.
BUY POINT: Pullback: After a test that holds 36-37, a move over 38 on increased volume. Stop: 35.34. Breakout: 39.68 on above average volume. Stop: 36.90.
POSITION: Stock only.

BRL (Barr Laboratories--$79.78; +0.78; optionable): No announcement, but a bounce with earnings.
http://biz.yahoo.com/p/b/brl.html
BACKGROUND: Last announce a 3:2 split on 5-31-00 with a board meeting. The stock price was $52. The annual shareholder meeting 10-26-00 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Has steadily peeled back after a breakout attempt from a small pennant pattern (hitting a high of 90.60). It tried a bounce up with earnings Tuesday, but could not climb back over the 10 day MVA (81.03), and has continued gradually back, holding over the June high at 77 (and the 50 day MVA at 75.39). The selling back we have seen started with what could have been an over-reaction to some analysts' opinions on generic Prozac sales, so we will see if it can hold for a move back up. The recent (and all-time) high is 90.60. Target on a breakout: 100.
BUY POINT: Aggressive momentum: 83.50 on increased volume (up to 836,800 Friday; average 803,300). Stop: 77.66.
POSITION: Stock and/or November $80 calls to buy (BRL KP).

BRO (Brown & Brown--$47.85; -0.09; no options): Insurance Brokers. http://biz.yahoo.com/p/b/bro.html
BACKGROUND: Last announced a 2:1 split on 7-26-00 in conjunction with its regularly scheduled board meeting. The stock price was $48. The annual shareholder meeting was on 4-18-01 at which time authorized shares were increased.
STATUS: BRO has pulled into another tight, lateral consolidation after having failed on last week's breakout attempt. It continues to hold over its 18 day MVA (47.68) and right in the range of its consolidation range before the breakout. It has shown three dojis in a row, but volume has picked up substantially the last two sessions, coming in Friday at 85,600 (average 46,700). Perhaps the volume surge presages another big move. Excellent relative strength and very solid money flow. Target on a breakout: 60.
BUY POINT: Breakout: A move back over 50 on continued strong volume. Stop: 46.50. Aggressive: 48.80 on continued strong volume. Stop: 45.38.
POSITION: Stock only.

CBH (Commerce Bancorp--$74.11; +0.86; optionable): http://biz.yahoo.com/p/c/cbh.html
BACKGROUND: Last announced a 5:4 split on 6-29-98. The stock price was $54.63. The annual shareholder meeting was on 6-20-00 at which time no additional shares were authorized. The company has insufficient shares for a 2:1 split.
STATUS: CBH had been moving in a shallow consolidation, looking very promising, but sold back out of the pattern Thursday. However, in a show of strength it held the 50 day MVA (72.72) and made a slight move back up Friday, with volume spiking way up at 183,800 (average 138,000). It faces the short-term MVA's (10 day at 74.96) and the high at 78. We are looking for the stock to recover quickly from this test of the 50 day (not an unusual move for a strong stock). Target: 86.
BUY POINT: Aggressive: A move back over the 10 day on continued strong volume. Stop: 69.75. Breakout: 78.12 on continued strong volume. Stop: 72.65.
POSITION: Both buy points: Stock and/or September $75 calls to buy (CBH IO).

CEFT (Concord EFS--$56.39; +2.38; optionable): Did not get the announcement with earnings.
http://biz.yahoo.com/p/c/ceft.html
BACKGROUND: Last announced a 3:2 split on 8-26-99 at a stock price of $37. Prior to that announced a 3:2 split on 5-14-98 in conjunction with its annual shareholder meeting.
STATUS: CEFT had pulled back into a consolidation at its 50 day MVA (54.36), threatening a head and shoulders pattern, but showed some strength Friday by pushing back up on increased volume. The move took the stock back over the 50 day and the short-term MVA's (18 day at 55.78), although it pulled back from its high of 57.40. A positive move to reverse the negative momentum that started at earnings. Looking for it to hold the 18 day and continue up past its late-July consolidation (the all-time high is 61.65). The business services sector has been strong, so we will instead see if CEFT can recover. Target on a breakout: 72.
BUY POINT: Momentum: Over 58.30 on above average volume (3.4 million; Friday 3.1 million). Stop: 54.22.
POSITION: September $55 calls to buy (EQF IJ).

EXPD (Expeditors International--$54.99; -0.34; optionable):
http://biz.yahoo.com/p/e/expd.html
BACKGROUND: Last announced a 2:1 split on 5-6-99 at a stock price of $62.50. The annual shareholder meeting was on 5-9-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: After tapping all the way up to its 50 day MVA (57.84) on earnings Tuesday, EXPD fell right back to support at the 200 day (54.68, with its July low). Friday the stock showed its second consecutive loose doji over that level, moving on low volume (196,000; average 464,400). Not a promising pattern, and we are still looking for EXPD take out the 50 day (over the short-term MVAs) before we can commit to positions. Even then, there is quite a bit of resistance ahead, with the stock's down trendline (from its May highs) at 60, and the July highs at 62. This may take some time.
BUY POINT: Aggressive: A move to 58.40 on above average volume. Stop: 54.31. POSITION: Stock and/or November $55 calls to buy (URP KK - very low open interest).

FNM (Fannie Mae--$84.40; +0.49; optionable): Mortgage Investment.
http://biz.yahoo.com/p/f/fnm.html
BACKGROUND: Last announced a 4:1 split in 1996, splitting at $120.
STATUS: Continuing in its long handle to a cup. FNM is trying to recover within the pattern (begun in late June, high of 87.87), and is currently holding the 50 day MVA (83.29). It moved up a bit Friday but could not make much headway as volume remained rather low (2.18 million; average 3 million). The handle will be a saucer pattern itself if it can continue back up. We will be patient and continue to look for a surge back up to the handle high and beyond. Relative strength has broken out. Target on breakout: 100.
BUY POINT: Aggressive: A move over 86 on above average volume. Stop: 80. Breakout: 90 on volume of 4.5 million. Stop: 83.70.
POSITION: Aggressive: Stock and/or September $80 calls to buy (FNM IP). Breakout: Stock and/or September $85 calls to buy (FNM IQ).

MIKE (Michaels Stores--$38.94; -0.31; optionable):
http://biz.yahoo.com/p/m/mike.html
BACKGROUND: Based upon our research it does not appear that MIKE has ever split its stock. The annual shareholder meeting was on 9-13-00 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: After the recent breakout move, (out of an extended handle to a cup), MIKE has given it all back with some strong selling. It is now back in the range of its June-July consolidation, just under the 50 day (39.55), showing dojis the last three sessions. However, Friday's pattern was of the 'hammer' variety, touching 37.76 at its low and then move up to close with big volume (376,800; average 227,700). Perhaps it will mount a move off of this pattern, but for positions we will need to see a sustained move over resistance. The 18 day MVA is at 40.60, and the high in the pattern is at 44.69.
BUY POINT: Aggressive: To 42 on continued strong volume. Stop: 39.06.
POSITION: Stock and/or September $40 calls to buy (IKQ IH).

POST SPLITS REMAINING PLAYS:

ESRX (Express Scripts--$54.03; -0.72; optionable): Split 2:1 June 25.
http://biz.yahoo.com/p/e/esrx.html
STATUS: After falling back from the mid-July breakout (high 61.45), ESRX was showing some signs of recovery, but could not sustain it, falling back last Wednesday into the recent consolidation range just under the short-term MVAs (18 day at 54.77). The stock is in the tip of a pennant, moving laterally as it holds over the 50 day MVA (53.06) and recent lows. It tried a move Friday, hitting up to 55.95, but volume was not there and it pulled back to close (692,000; average 459,000). Volume has favored the downside moves in this pattern, so it could take a bit of time before the stock musters a move back up. Previous breakout target: 64.
PLAY: Aggressive: After holding here, a move to 56.50 on above average volume with stock and/or November $50 calls to buy (XTQ KJ). Stop: 52.55. Safer: 58.82 on above average volume with stock and/or November $55 calls to buy (XTQ KK). Stop: 54.70.

GENZ (Genzyme--$54.44; -0.72; optionable): Biotechnology. Split 2:1 effective 6-4-01.
http://biz.yahoo.com/p/g/genz.html
STATUS: Could not sustain last week's gain, and has pulled back to the range of the 50 day MVA (54.84), Friday closing back below that level on lower volume (2.96 million, average 3.28 million). GENZ has been erratic, but has generally held in the 50-60 range since mid-April. We will see if it can settle down and make a move it can sustain.
PLAY: Over 60 on above average volume, with stock and/or October $55 to buy (GZQ JK).

LH (Laboratory Corp--$82.12; +0.13; optionable): Health Services. Split 2:1 June 11.
http://biz.yahoo.com/p/l/lh.html
STATUS: The consolidation continues with Friday's tight doji over the 50 day MVA (80.64) on decreasing volume of 260,200 (average 563,300). The consolidation formed after LH fell from a high of 91.35 made on a breakout from a cup with handle pattern. As we've noted before, the 50 day is key support, and although the intraday swings are somewhat erratic, LH is holding that level. For upside plays we are looking ahead to the short-term MVA's (10 day at 83.27) for a strong move to carry the stock up over those levels, with additional momentum carrying the stock over the left-side (and all-time) high at 91.50.
PLAY: Aggressive: A move over 85, on stronger than average volume. Stop: 78.59.
POSITION: Stock and/or September 80 call to buy.

Good Investing!
Jon L. Johnson and the Stock Split Report 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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