stock split, stock recommendation

Begin part 3 of 3

THE PLAYS

Good movers Wednesday: APCS; ATSN; CMTL; CYTC; FSL; ISSC; MNDO; MTSN; OPWV; NTGR

Tuesday night play results:
CPRT: Gapped early and looked solid but gave back the move.
LRW: Lower volume, taking a breather at the recent highs. Still ready to move.
OVNT: Edging closer to the breakout.
PKI: Solid volume as it posted another gain, this one much more modest, coming back from the high.

New Plays:

Play Date: 12/15/2004
BRCD (Brocade Communications--$7.60; +0.34; optionable): Telecom equipment
http://biz.yahoo.com/p/b/brcd.html
After Hours: $7.54
STATUS: Cup w/handle. Breaking out from a 9.5 month base, moving on very strong, above average volume Wednesday. Accumulation is a strong 11 to 5 (11 up price weeks on rising volume to 5 down price weeks on rising volume), setting up the foundation for the breakout as there were many more buyers than sellers during the consolidation. Strong money flow and relative strength is ready for a breakout, a good confirmation of the breakout move. It has been a long time since we played BRCD as a regular split play at a price in the $200 range; it has been a long time but this is a good base off the bottom of the long, long base.
Volume: 19.334M Avg Volume: 6.9M
BUY POINT: $7.72 Volume=7.2M Target=$9.28 Stop=$7.18
POSITION: BQB DJ - Apr. $7c (73 delta) &/or Stock
http://www.investmenthouse.com/ci/brcd.html

Play Date: 12/15/2004
CENT (Central Garden & Pet--$40.60; +1.68; no options): Producer and marketer of branded pet and garden products
http://biz.yahoo.com/p/c/cent.html
After Hours: $40.66
STATUS: Cup w/handle breakout. Solid volume for CENT Wednesday as it started the breakout from a very nicely formed 8 month base. The handle was very tight and on low volume, just what you want to see. Solid 6 to 4 accumulation in the base shows net buyers, setting up the breakout. A market leader but hardly a household name; that typically means there is much more upside for it. Looking to take positions on a further move and then on the first successful test.
Volume: 250.121K Avg Volume: 106.772K
BUY POINT: $40.82 Volume=160K Target=$49.55 Stop=$38.48
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/cent.html

Play Date: 12/15/2004
COHR (Coherent--$32.27; +0.98; optionable): Scientific & technical instruments
http://biz.yahoo.com/p/c/cohr.html
STATUS: Double bottom w/handle breakout. COHR was working well Wednesday, rallying to the breakout on rising, above average volume. Nice 11 month base sporting excellent 12 to 6 accumulation set up the base and the breakout. Excellent money flow is leading the way. Relative strength is ready for the breakout to corroborate the move. Looking to pick up positions on a further break higher and then again on a successful test.
Volume: 221.32K Avg Volume: 143.136K
BUY POINT: $32.42 Volume=200K Target=$39 Stop=$30.72
POSITION: HRQ EF - May $30c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/cohr.html

Play Date: 12/15/2004
CSTR (Coinstar--$26.16; +0.51; optionable): Coin counting machines
http://biz.yahoo.com/p/c/cstr.html
After Hours: $26.10
STATUS: Test 50 day EMA. Exploded higher to end October, rallied a bit and then moved laterally the past six weeks, easing back to test the breakout, holding the 50 day EMA (25.25) as it does. This is part of a much larger 3 year base, but CSTR looks ready for a strong upside move to take it toward a new all-time high at 35. Huge volume Wednesday as CSTR moved up off the 50 day as CSTR priced a common stock offering at $25/share. 2 to 0 accumulation in the easy pullback shows buyers are still picking up the stock. Strong money flow is a good compliment. Looking for a break over the recent highs on strong volume to move into the stock.
Volume: 2.731M Avg Volume: 293.061K
BUY POINT: $26.88 Volume=350K Target=$32.25 Stop=$25.65
POSITION: QLR DE - Apr. $25c (67 delta) &/or Stock
http://www.investmenthouse.com/ci/cstr.html

Good Investing!
Jon L. Johnson and your IH Alerts Team

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 in 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.

stock split
stock recommendation