stock watch, stock split

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WHR (Whirlpool--$66.77; -0.86; optionable): Consumer Durables: Appliances. We are researching a forecast date.
http://biz.yahoo.com/p/w/whr.html
BACKGROUND: Based upon our research it does not appear that WHR has ever split its stock. The annual shareholder meeting was on 4-17-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: WHR broke out of a 14-month cup with handle in early July, hitting a high of 71.93 before pulling back to test the breakout, catching support at the 50 day MVA (65.68). It bounced from that level but has not been able to clear resistance at the short-term MVA's (18 day at 68), today pulling back slightly from that level on continued low volume (384,700; average 652,700). It might consolidate a bit more here before continuing on as we did not get the big volume jump on the move higher. It did this last time. Target: 86.
BUY POINT: Aggressive: A move over 18 day MVA, on above average volume. Stop: 63.24. Breakout: 72.06 on volume of 979,000. Stop: 67.01.
POSITIONS: Aggressive: Stock and/or September $65 calls to buy (WHR IM). Breakout: Stock and/or September $70 calls to buy (WHR IN).

MI (Marshall & Ilsley--$58.60; -0.60; optionable ): Banking: Regional. We are researching a forecast date.
http://biz.yahoo.com/p/m/mi.html
BACKGROUND: Based upon our research it does not appear that MI has ever split its stock. The annual shareholder meeting was on 4-24-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: MI is in a handle consolidation, moving in a base of over 20 months. It is resting a bit after a big move in June-July from the 49 range, today giving up its 10 day MVA (58.94) but holding its 18 day (58.44) after dipping all the way down to 57.70. A strong recovery, and volume was sharply higher on the day at 231,700 (average 201,800). We will see if the stock can continue the upward momentum back toward the handle high at 59.93. Money flow and relative strength are solid. Target: 70.
BUY POINT: Breakout: 60.06 on volume of 270,000. Stop: 55.86.
POSTIONS: Stock and/or September 55 calls to buy (MI IK).

DSL (Downey Financial--$56.15; -2.37; no options): Savings & Loan. Researching a possible announcement date.
http://biz.yahoo.com/p/d/dsl.html
STATUS: DSL was moving in an 8-month cup with handle, but after a slow push up along its 10 day MVA (30.79) last week going into earnings, it fell back very hard today with the announcement. Volume was huge, and the stock is now back at the 18 day MVA (31.15). This is also the levels of the recent low in the handle, so we will see if it can hang on here and regroup. On a continued fall there is some additional support from its July consolidation at 54 (50 day MVA at 52). It could be a little bit of time before we get a play.
BUY POINT: Aggressive: After holding the 56 level and settling down a bit, a move back over 58.60 on above average volume (457,700 today; average 177,300). Stop: 54.40. Breakout: 60.22 on volume of 270,000. Stop: 56.
POSITION: Stock only.

ADVP (AdvancePCS--$68.72; -0.32; optionable): Health services. We are working on a date for this one.
http://biz.yahoo.com/p/a/advp.html
BACKGROUND: Last announced a 2:1 split on 10-12-99 at a stock price of $50. The company does not have sufficient shares for a 2:1 split, but does have sufficient shares for a 3:2 split.
STATUS: ADVP made a very strong move over the last week, and today it reached an all-time high of 71.15 before turning back around. Volume was huge at 3.08 million (average 684,000) on the gap up and reversal, and off such a pattern we look for more selling back toward support. The stock hit a low of 67.41 today before recovering a bit, and the closing high in the left side of its saucer (former descending wedge) is at 67. We will look for ADVP to hold the 67 range, perhaps form a handle for another move up. It has run $10 the past 4 sessions. Target: 80.
BUY POINT: After holding the 67 level and perhaps forming a handle, a move back over 69 on continued strong volume. Stop: 64.17.
POSITION: Stock and/or September $65 calls to buy (QVD IM).

CRY (Cryolife--$41.79; +0.55; no options): Biotechnology. Working on a date.
http://biz.yahoo.com/p/c/cry.html
BACKGROUND: Last announced a 3:2 split on 11-27-00 with a board meeting. The stock price was $43. The annual shareholder meeting was on 5-17-01 at which time no additional shares were increased. The company has sufficient shares for a 2:1 split.
STATUS: CRY has come back to test its recent breakout of an ascending wedge, but has dipped back through the July highs (43 range). It is still holding its 18 day MVA (41.28), pushing back up slightly today, closing in the vicinity of its up trendline connecting March and July closing lows (at 42). With the big volume we saw today (143,900; average 127,400), we will see if CRY is ready to mount a move back up. The recent high is 44.82. Relative strength is solid. Target: 52.
BUY POINT: Aggressive: Over 43 on continued strong volume. Stop: 39.99. Breakout: 44.94 on continued strong volume. Stop: 41.79.
POSITION: Stock only.

THQI (THQ Inc.--$54.10; +0.63; optionable): Looking for the announcement, and are working on a date.
http://biz.yahoo.com/p/t/thqi.html
BACKGROUND: Last announced a 3:2 split on 10-26-99 in conjunction with earnings. The stock price was $44. Prior to that announced a 3:2 split on 7-23-98 in conjunction with earnings. The stock price was $33. The company has sufficient shares for a 2:1 split.
STATUS: THQI has battled back, making a solid run back up after having taken a hard fall back from recent highs at 60 (all-time high at 62). It hit lows below 43 on the last drop, perhaps shaking out the sellers, and it made a strong surge last week up through the 50 day MVA (51.27). The momentum has slowed somewhat, today seeing THQI reach up to 54.85 but pull back although volume was strong at 1.13 million (average is 772,500). It is at resistance from its late-July high and July consolidation lows here; we will see if it holds the 52.50 range or visits the 50 day MVA (with its 18 day at 51.27) before continuing the momentum play. We will initially target the high at 62 and see how it handles that, ready to take profits on weakness.
BUY POINT: Aggressive momentum: Over 55 on continued strong volume. Stop: 51.15.
POSITION: Stock and/or September $50 calls to buy (QHI IJ - low open interest).

BBBY (Bed Bath & Beyond--$29.87; +0.10; optionable): Retail. Working on a date.
http://biz.yahoo.com/p/b/bbby.html
STATUS: BBBY has caught support at its up trendline (connecting March and August 2000 and May 2001 levels), tapping it again at its low today (29.55). It tried a move up, hitting all the way up to 31.22 today (18 day MVA at 30.78) but could not hold it, dipping back to close with a doji. Volume was up at 3 million (the average), and it looks like BBBY is trying to put in an interim bottom here for a move up. The recent high is 33.10.
BUY POINT: Aggressive: A move over 32 on increased volume.
POSITION: November $30 calls to buy (BHQ KF).

NDN (99 Cents Only Stores--$34.11; +0.35; optionable): Retail. Researching a date.
http://biz.yahoo.com/p/n/ndn.html
STATUS: A nice-looking pattern, but pennants can go either way. Since falling below 15 last October, NDN steadily fought back, moved into a cup with handle, and broke out to briefly establish a new all-time high in July (37.55). The stock is currently testing the breakout and moving in the pennant. It has now inched up the last few days, closing just over its 10 day MVA (33.59) each day, with volume low (down to 79,500 today; average 205,000). If it can hold on we could still see it make a nice move from this pattern. Target on a new high: 45.
BUY POINT: 35.33 on above average volume. Stop: 32.86.
POSITION: Stock and/or September $30 calls to buy (NDN IF).

FDC (First Data--$68.21; +0.11; optionable): Working on a forecast date.
http://biz.yahoo.com/p/f/fdc.html
BACKGROUND: Last split was a 2:1 on 11-18-96 at a stock price of $80. The annual shareholder meeting was on 1-11-01 at which time authorized shares were increased. The company has sufficient shares for a 2:1 split.
STATUS: FDC is trying to recover, having caught the 66 level (in the midst of its May-June consolidation) on its recent drop. It has mounted a move back over its 50 day MVA (67.31), but volume has been weak, and today it gapped up but pulled back a bit to close. We will see if it can hold onto the 68 level and try a stronger move up toward the recent high at 72.25.
BUY POINT: Aggressive: Over 69.50 on above average volume. Stop: 64.64.
POSITION: Stock and/or November $65 calls to buy (FDC KM).

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

DCOM (Dime Comm. Bancshare--$41.70; +1.30; no options): S&L. Splits 3:2 effective August 22.
http://biz.yahoo.com/p/d/dcom.html
STATUS: DCOM has continued Friday's strong move, today hitting a new all time closing high on sharply increased volume of 113,400 (average 51,900). We don't like to chase a stock past 5% of its pivot point, and DCOM is just past that range. We are also considering today's sharp pullback off of the intraday high (42.88), an indication that we may see more profit taking before we see the breakout resume. A solid $4 move, so we will consider some profit taking if it gaps higher tomorrow and starts to sell back. A low volume test of the 40 range and a solid move up from there may provide additional opportunities for new positions.
PLAY: After a move back that holds 40: 41.75 on continued strong volume Stop: 38.83. Stock only.

KMP (Kinder Morgan--$73.74; +0.54: optionable): Splits 2:1 effective September 4.
http://biz.yahoo.com/p/k/kmp.html
STATUS: Finally got the breakout move late last week, but KMP could not continue it this week, first selling back to close just under the left side closing high (73.40) on increased, above average volume Monday, and testing back to the 10 day MVA (72.66) before showing a doji today, again on above average volume (156,500, average 111,600). From here, we could see another test of the 10 day before the stock resumes the breakout move. We don't like Monday's strong selling, but KMP did not give up much ground and may have caught support. We are still watching carefully to see if it holds, as we have seen a lot of short-lived breakout attempts in this market. If we see a further pullback, we have time before the split to watch for a recovery. Target: 82.
PLAY: From here: Over 74.50 on continued strong volume, with stock and/or September $70 calls (KMP FN). Stop: 63.40.

FRK (Florida Rock Industries--$54.15; +0.10; no options): Announced a 3:2 stock split last week, effective September 4.
http://biz.yahoo.com/p/f/frk.html
STATUS: Followed up Monday's lower volume gain by gapping up at the open and tapping through the recent high before falling all the way back to close down for the day, on increased, above average volume of 48,500 (average 43,200). We may see a further drop from here. The stock has some support from the late July consolidation at the 54 level, with the 10 day MVA is at 52.59. If the stock can hold support, we may see more consolidation before we see another attempt at a pre-split run. The builders are having a hard time. Initial target: 65.
BUY POINT: After holding support at the 10 day, a move back over 54. Stop: 50.22.
POSITION: Stock only.

ATK (Alliant Techsystems--$102.00; +0.62; optionable): Announced a 3:2 stock split, effective September 8.
http://biz.yahoo.com/p/a/atk.html
BACKGROUND: Last announced a 2:1 split on 11-2-00 in conjunction with earnings. The stock price was $89. The annual shareholder meeting was held 8-7-01 at 2:00 pm CT at which time additional shares were authorized.
STATUS: Testing the breakout. After closing last week with a great breakout move (made off a small, steep pullback to a small cup), ATK showed us the lower volume profit taking we expected, but held the 102 range (left side high), and mounted a small move up from that level today. ATK pulled well off the intraday high to close, not terribly concerning as volume was quite low, down sharply to 93,500 (average 146,100). We may see a small handle-type consolidation before we see the move resume. Target: 115.
BUY POINT: From here or after a holding support at this level: Over 104 on continued strong volume. Stop: 96.83.
POSITION: Stock and/or November $100 calls to buy (ATK KT).

CECO (Career Education--$60.46; -0.22; 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 split announcement, hitting a new high of 67.09, but fell back before finally catching support at the 60 range (50 day MVA at 59.27). CECO has tried to recover, but volume has been volatile and the stock has not sustained any attempt to push through the short-term MVAs. This week the stock has shown two dojis, each pushing up to the 10 day (61.80) before pulling back to close, today on sharply increased volume of 272,400 (average 215,300). From here the stock may test back to the 50 day, from where it has bounced several times since the beginning of the year. We will see if it can hold and make a higher low, but there is not much of a pattern to play.
PLAY: Aggressive: Over 62 on continued strong volume, with stock. Stop: 57.66.

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.

ACS (ACS Inc.--$81.64; +1.38; 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 made a solid run into earnings at the end of July, but settled back to test its 50 day MVA (76.82) and June high (77.50). Wednesday it turned back up, closing over its 10 day MVA (79.83), and today it continued the move, adding volume as it rose (604,800; average 758,400). It has some momentum, and will look for a continued move. The high is 86, and we will carefully watch that as a resistance. If we can get a strong breakout, we will target 100. Still well within split range.
BUY POINT: Aggressive: A move over 82.25 on above average volume. Stop: 76.50.
POSITION: Stock and/or October $75 calls to buy (ACS JO).

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stock watch
stock split