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us stock market, stock split
Begin part 3 of 3
THE PLAYS
Good movers Thursday: BEBE; CAKE; DGX; NMGA; PETM; SBUX; UPS; VTIV; YUM
NEW PLAYS: New pre-announcement plays are contained in the pre-announcement section.
New Leader Plays:
Play Date: 11/04/2004
FARO (Faro Technologies--$25.9; +0.85; optionable): Scientific & technical instruments
http://biz.yahoo.com/p/f/faro.html
STATUS: Cup. FARO is working on a 5 month cup that is part of a larger 10 month base. It is forming the right side of the base as it started higher in mid-October on a spike in volume. It started higher Thursday as volume resumed its climb, moving back above average. Strong 7 to 2 accumulation in the base, excellent for this early in the pattern. Money flow is moving higher ahead of price. Looking for FARO to continue the move, and looking to enter positions on another solid volume move.
Volume: 281.222K Avg Volume: 189.909K
BUY POINT: $26.35 Volume=285K Target=$31.94 Stop=$25.12
POSITION: QEJ CE - Mar. $25c (62 delta) &/or Stock
http://www.investmenthouse.com/cs/faro.html
Play Date: 11/04/2004
NOVN (Noven Pharmaceuticals--$23.87; +0.82; optionable): Drug delivery
http://biz.yahoo.com/p/n/novn.html
STATUS: Cup w/handle. Volume was up Thursday as NOVN started off the bottom of its handle at the 18 day EMA (22.62). It is moving toward the breakout from an 8 month base sporting excellent 9 to 2 accumulation. Money flow is strong, well out in front of the prices. NOVN used the 200 day SMA (20.55) as support for the base, an important support level where institutions step in to buy a stock they like. Very good volume as NOVN rallied off the bottom of the pattern in October, and a nice, low volume pullback in this handle. That set the pattern for the breakout move.
Volume: 284.657K Avg Volume: 168.772K
BUY POINT: $24.65 Volume=300K Target=$30 Stop=$23.32
POSITION: NPQ AX - Jan. $22.50c (66 delta) &/or Stock
http://www.investmenthouse.com/cs/novn.html
Play Date: 11/04/2004
NTES (Netease.com--$50.02; +1.18; optionable): Chinese internet
http://biz.yahoo.com/p/n/ntes.html
STATUS: Double bottom. NTES reported earnings Wednesday evening. It gapped lower but then rebounded on stronger volume to post a nice gain for the session. It was not a blowout earnings season for NTES, but it was a solid showing. NTES is in a bit 14 month base, but within that pattern it has formed a 7 month double bottom with handle, breaking out from that pattern two weeks back and rallying higher. This gap lower and rebound off the 10 day EMA (46.33) has set up a resumption of the breakout move. Solid 13 to 8 accumulation in the smaller pattern shows net buyers. Looking to move in if it can continue the move higher and still show some strong trade.
Volume: 2.916M Avg Volume: 1.328M
BUY POINT: $50.45 Volume=1.6M Target=$58.38 Stop=$47.48
POSITION: NQG CJ - Mar. $50c (55 delta) &/or Stock
http://www.investmenthouse.com/cs/ntes.html
Continuing Leader Plays:
Play Date: 10/28/2004
FORM (Formfactor--$24.04; -0.06; optionable): Semiconductors
http://biz.yahoo.com/p/f/form.html
STATUS: Breakout test. FORM is easing back on very low volume to test the breakout from its 13 month cup with handle base. It exploded higher last week and is making a very orderly, low volume test of the move. Super money flow, accumulation, and relative strength. It may come back to fully test the 10 day EMA (23.16), but we want to be ready for when it resumes the move.
Volume: 341.94K Avg Volume: 354.727K
BUY POINT: New: $24.32 (orig. positions: $23.08) Volume=480K Target=$27.25 Stop=$23.12
POSITION: AFU DX - Apr. $22.50c (59 delta) &/or Stock
http://www.investmenthouse.com/cs/form.html
Play Date: 10/26/2004
GYI (Getty Images--$59.80; +0.63; optionable): Business management services
http://biz.yahoo.com/p/g/gyi.html
STATUS: Double bottom w/handle. Volume surged back above average Thursday as GYI started the move out of its two week handle that formed after that strong surge to end October. Strong money flow is moving higher, and GYI is ready to follow it.
Volume: 532.9K Avg Volume: 367.772K
BUY POINT: New positions: $59.95 (orig. $57.62) Volume=560K Target=$63.48 Stop=$58.05
POSITION: GYI AK - Jan. $55c (61 delta) &/or Stock
http://www.investmenthouse.com/cs/gyi.html
PRE-ANNOUNCEMENT PLAYS
Current Pre-Announcement Plays: In each report we look at the candidates that are in the best patterns ahead of their potential announcements. This focus on leaders in good patterns allows us to make good money even if companies do not announce the split. The key with splits is the pattern. Still gat positive moves on the announcement, but stocks in this market need to have a good pattern of accumulation to really benefit from a split announcement.
BSC: Tentative date: 12-15-04
CME: Researching the next date.
CNMD: Forecast first half of November. Unable to pinpoint an exact date as of yet.
DGX: Researching next date.
EXBD: No announcement 10-26. Easing higher up the 10 day EMA.
FDX: Forecast 12-6.
GPN: Forecast early November. Still moving quite well.
KMRT: Forecast 11-15-04.
MBT: Researching next date.
MCO: Researching next date.
NMGA: Forecast 12-1-04. Well, it got the volume.
ROP: Researching next date as no announcement 10-28-04.
SBUX: Forecast 11-10 after the close with earnings.
TBL: Researching exact date. Rebounded nicely Thursday but no volume.
TTC: Forecast 12-2-04 or 12-8-04
VIP: Researching date.
WYNN: Forecast 11-2-04. No split but continues its move higher.
XRAY: Researching next date. Nice doji at the 50 day EMA.
Full Write-ups: We do not cover all candidates in full in each report, but focus on those ready to make a move or are right at their forecast announcement date. This way we are focused on those stocks ready to make moves.
New Pre-Announcement Plays:
Play Date: 11/04/2004
ROL (Rollins--$26.88; -0.02; no options): Pest and termite control. Forecast in January, but a good pattern that could break it significantly higher.
BACKGROUND: Last announced a 3:2 split 1-28-03.
http://biz.yahoo.com/p/r/rol.html
STATUS: Test breakout. ROL broke higher in late October on strong trade, clearing the handle to its 7 month cup with handle base. Excellent 8 to 3 accumulation in the pattern shows strong net buying as it consolidated near the 200 day SMA (24.29). Strong money flow is leading higher and relative strength broke out on the late October move. it has moved laterally below 27 since, rising higher up the 10 day EMA (26.58), getting squeezed between the two. Looking for a breakout on strong volume as it continues the upside move.
Volume: 108.6K Avg Volume: 94.045K
BUY POINT: $27.57 Volume=150K Target=$33 Stop=$26.45
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/rol.html
Current Plays:
Play Date: 10/30/2004
FDX (Federal Express--$91.48; +1.32; optionable): Air and freight delivery. Forecast to announce a split 12-6-04
BACKGROUND: Two splits in the past, one 1996 at $75 and one in 1999 at $88.
http://biz.yahoo.com/p/f/fdx.html
STATUS: Ascending triangle. Strong volume the past three sessions as FDX toys with a breakway move from the 7 week base. Solid money flow, and it looks ready to make the break higher and give us that run to 100.
Volume: 2.347M Avg Volume: 1.604M
BUY POINT: $91.85 Volume=2.1M Target=$100 Stop=$89.89
POSITION: FDX AR - Jan. $90c (63 delta)
http://www.investmenthouse.com/cs/fdx.html
Play Date: 11/02/2004
TTC (Toro--$69.83; +1.38; optionable): Lawnmowers, tools, accessories. Forecast to announce a split on 12-2-04 in conjunction with a board meeting or on 12-8-04 in conjunction with earnings. The company has not confirmed these dates.
BACKGROUND: Last announce a 2 for 1 split on 3-20-03 in conjunction with a board meeting at a stock price of $70.
http://biz.yahoo.com/p/t/ttc.html
STATUS: Ascending triangle. Volume surged Wednesday as TTC held tight over the 50 day EMA (67.44). Thursday it started the move higher, but volume backed off to below average. Still a solid pattern with TTC making a higher low at the 50 day EMA in its 5 month base making higher and higher lows below a constant top near 70. Accumulation in the pattern is a solid 5 to 2, showing net buyers. That sets the foundation for a breakout and rally as the buyers are not as likely to dump shares they accumulated in anticipation of the run higher. Want to see the volume jump back up as it makes the move through 70.
Volume: 165.2K Avg Volume: 184.59K
BUY POINT: New: $70.06 (orig. $69.06) Volume=274K Target=$79.85 Stop=$67.05
POSITION: TTC CN - Mar. $70c (45 delta) &/or Stock
http://www.investmenthouse.com/cs/ttc.html
POST SPLIT PLAYS:
Play Date: 10/11/2004
GGG (Graco--$35.28; +0.31; optionable): Machinery
http://biz.yahoo.com/p/g/ggg.html
STATUS: Test breakout. Volume was up Thursday as GGG moved up off the 18 day EMA (34.35). It is getting ready to continue the breakout move after this 5 week test of the prior breakout. Strong money flow is leading the way higher; want to see volume jump as it makes the move.
Volume: 179.1K Avg Volume: 222.909K
BUY POINT: New: $35.43 (orig. $34.74) Volume=300K Target=$38.85 Stop=$33.97
POSITION: GGG BG - Feb. $35c (41 delta) &/or Stock
http://www.investmenthouse.com/cs/ggg.html
Play Date: 11/02/2004
JAH (Jarden--$36.91; +0.26; optionable): Rubber and plastics.
http://biz.yahoo.com/p/j/jah.html
STATUS: Double bottom w/handle. JAH did not participate in the rally Thursday as it moved laterally the past two days on lower volume. Still a very nice 25 week base sporting strong 10 to 4 accumulation and surging money flow. Minding its own business; one of those stocks that minds its own business as it completes its base.
Volume: 408.5K Avg Volume: 348.985K
BUY POINT: $37.28 Volume=508K Target=$44 Stop=$35.05
POSITION: JAH DG - Apr. $35c (67 delta) &/or Stock
http://www.investmenthouse.com/cs/jah.html
Play Date: 10/06/2004
ZQK (Quicksilver--$27.8; +0.79; optionable): Youth sports apparel
http://biz.yahoo.com/p/z/zqk.html
STATUS: Breakout test. Tried the next big move Tuesday, but could not hold the gains. It got wild Wednesday, selling back to the 18 day EMA (26.73). Rebounded Thursday on lower, average volume. Nice early September breakout from its 11 week cup with handle base. Excellent money flow and relative strength on the breakout. Ready for an all-time high, but want to see more volume on the move.
Volume: 563.3K Avg Volume: 500K
BUY POINT: New positions: $28.11 (orig. positions $26.46) Volume=525K Target=$32 Stop=$26.59
POSITION: ZQK BE - Feb. $25c (72 delta) &/or Stock
http://www.investmenthouse.com/cs/zqk.html
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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us stock market
stock split
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