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Begin Part 4 of 4

CEFT (Concord EFS--$56.24; +0.09; 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: After CEFT made a strong move back up from the 50 day (54.65) late last week, it pulled in to the current lateral consolidation along the short-term MVAs (18 day 55.96). Today CEFT tapped down to the 50 day before pulling up to close on steady, below average of 1.53 million, (average 3.35 million). We are still watching for a bearish head and shoulders pattern, but if it can hold and move up from here we will see how it handles its late-July consolidation up to its high of 61.65. Good sector. Target on a breakout: 69-72.
BUY POINT: Momentum: Over 58.30 on above average volume. Stop: 55.50.
POSITION: September $55 calls to buy (EQF IJ).

FNM (Fannie Mae--$85.00; +0.15; optionable): Mortgage Investment.
http://biz.yahoo.com/p/f/fnm.html
BACKGROUND: Last announced a 4:1 split in 1996, splitting at $120.
STATUS: The long handle continues. FNM reached for 86 today (the range of the July closing highs), but pulled back to close near the bottom of the trading range with a doji on increased, slightly below average volume of 2.89 million (average 2.98 million). On today's move, we may see a bit more consolidation at this level, before we see attempt a breakout move (the handle high, from late June, is at 87.87). We are looking for continued consumer spending and the prospects of even lower interest rates spurring it on. Relative strength has broken out, and money flow is strong. Target on breakout: 100.
BUY POINT: Aggressive: A move over 86 on above average volume. Stop: 84. Breakout: 88 on volume of 4.5 million. Stop: 85.
POSITION: Aggressive: Stock and/or September $80 calls to buy (FNM IP). Breakout: Stock and/or September $85 calls to buy (FNM IQ).

FRX (Forest Labs--$78.05; -1.61; optionable): Drugs.
http://biz.yahoo.com/p/f/frx.html
BACKGROUND: Last announced a 2:1 split on 12-18-00 with a board meeting. The stock price was $135. Prior to that announced a 2:1 split on 2-23-98 in conjunction with a board meeting. The stock price of $62. The annual shareholder meeting was 8-13-01 at which time no additional shares were be authorized. The company has sufficient shares for a 2:1 split.
STATUS: The pattern is becoming a bit volatile. FRX recovered nicely after falling from its tight lateral consolidation last week, but could not turn the move into a solid breakout. The stock began selling back yesterday, and continued down today, falling through the 18 day MVA (78.08), before it pulled up to close (low of 76.90). Volume was mush stronger today, up to 1.99 million (average 1.35 million). The stock is back in the range of the prior consolidation, if it can hold support here, it may rest a bit before attempting another move up. We are looking for a breakout. Target: 100.
BUY POINT: Aggressive: a move over 80 on continued strong volume. Stop: 77.50. Breakout: 82.46, on volume of 1.8 million. Stop: 79.50.
POSITION: Aggressive: Stock and/or November $75 calls to buy (FRX KO). Breakout: Stock and/or November $80 calls to buy (FRX KP).

MIKE (Michaels Stores--$39.35; +0.57; 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: Continues to struggle with the 50 day MVA. After the recent breakout move, (out of an extended handle to a cup), MIKE gave it all back on strong selling, and it is now back in the range of its June-July consolidation, just under the 50 day (39.48). MIKE gapped down at the open today, and pushed up to the 50 day on sharply increased volume (up to 228,900, average 230,500), but could not clear it. We will watch and see if the momentum will continue, and carry MIKE up and over the 40 level. For positions we will need to see a sustained move over resistance. The 18 day MVA is at 40.30, and the high in the pattern is at 44.69.
BUY POINT: Aggressive: To 42 on above average volume. Stop: 39.25.
POSITION: Stock and/or September $40 calls to buy (IKQ IH).

RMD (Resmed--$56.10; -1.50; optionable): Health services.
http://biz.yahoo.com/p/r/rmd.html
BACKGROUND: Last announced a 2:1 split on 2-25-00 with a board meeting. The stock price was $68. The annual shareholder meeting was on 11-6-00 at which time authorized shares were increased.
STATUS: Showing some signs of moving into a handle-type consolidation (from a 10 week saucer pattern). RMD pulled back somewhat from Tuesday's strong move, with lower volume selling today that tapped through the 10 day MVA (55.56) before pulling up to close. The stock is still holding above the recent highs in the 56-56.50 range, and we are looking for this support to hold. RMD may be resting a bit before gearing up for another move. Buying and money flow remain solid. Target on a breakout: 70.
BUY POINT: Breakout: 58.33 on volume of 400,000 (down today to 138,500, average 266,700). Stop: 54.50. Aggressive: Over 57.60 on above average volume. Stop: 54.
POSITION: Both buy points: Stock and/or October $55 calls to buy (RMD JK).

POST SPLITS REMAINING PLAYS:

COBZ (Cobiz--$15.40; +0.20; no options): Banking. Split 3:2 effective August 14.
http://biz.yahoo.com/p/c/cobz.html
STATUS: COBZ gapped up to open again today, going on to hit a new high of 15.76 before pulling way back to close with a tombstone doji on increased volume of 19,900 (average 10,500). The candlestick pattern indicates a pullback, and on a move down, we are looking for the prior pennant high of 14.91 to provide support.
PLAY: After holding 14.91, a move up to 15.25 on continued strong volume, with stock. Stop: (below 18 day)

JNJ (Johnson & Johnson--$54.89; -2.11; optionable): Drugs. Split 2:1 June 12.
http://biz.yahoo.com/p/j/jnj.html
STATUS: Strong selling today. JNJ made yet another new high yesterday, but pulled back to close with a loose doji, a topping sign presaging today's pullback. The stock caught support at the 18 day MVA (54.78) before pulling up a bit to close in the range of the July highs (55) on increased, above average volume of 11.5 million (average 6.5 million). We have seen stronger selling since the split, and the slight pullbacks in mid-June and mid-July lead to new highs. If JNJ stock can hold support here, it may mount another move. Target: 66.
BUY POINT: Aggressive: After holding support here, a move back up to 56 on continued strong volume. Stop: 54.
POSITIONS: Stock and/or October $50 calls to buy (JNJ JJ).

LH (Laboratory Corp--$80.58; -0.91; optionable): Health Services. Split 2:1 June 11.
http://biz.yahoo.com/p/l/lh.html
STATUS: LH was edging up in the current consolidation, trying to move over the short-term MVAs (18 day 83.11), but couldn't hold on and has pulled back to close below the 50 day (80.89) once again. Volume was below average again today, up slightly to 305,100 (average 548,300). Below average volume plagued it on its attempt to move up, but we are not seeing a lot of enthusiasm to the downside either. This is not the strongest pattern, but the stock has generally held support at the 50 day, so we will see if it can again and try to mount a stronger move up. Nothing new for Friday.

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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