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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers Tuesday: AAPL; CPKI; CYCL; DDDC; FFIV; ILMN; IMDC; ZQK; ABFS; JBLU; MFE
Monday night play results:
ANTP: Turned right back down.
PRZ: Rallied but could not hold the move.
TKO: Dumped lower on volume.
USM: Fell back to the 50 day EMA on rising but below average volume.
New Plays:
Upside:
Play Date: 02/08/2005
ADBL (Audible--$28.90; +1.65; optionable): Internet software & services
http://biz.yahoo.com/p/a/adbl.html
After Hours: $28.90
STATUS: Reverse head and shoulders. Volume has jumped above average the past three sessions and then ADBL jumped higher Tuesday, moving off the 50 day EMA (25.75) the key support level that was the bottom of the right shoulder to the 9 week base. Excellent 4 to 1 accumulation (4 up price weeks on rising volume to 1 down price weeks on rising volume) shows plenty of buyers during the consolidation. Relative strength is ready for the breakout, a good corroboration of any breakout to come. Looking to pick up positions on a continued move. A breakout over 30 sends it to a multiyear high and free of overhead resistance.
Volume: 1.245M Avg Volume: 695.045K
BUY POINT: $29.12 Volume=1M Target=$34.95 Stop=$28.32
POSITION: OBQ FF - June $30c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/adbl.html
Play Date: 02/08/2005
AXCA (Axcan Pharma--$19.63; +0.26; optionable): Drugs
http://biz.yahoo.com/p/a/axca.html
STATUS: Cup w/handle. Volume jumped Tuesday as AXCA moved toward a breakout from the handle of its 7 month cup with handle base. A new issue in July 2001, this is the third nice base AXCA has formed. Positive accumulation in the pattern shows net buyers and is setting up the breakout. Looking for continued volume as it moves through the buy point and makes the breakout.
Volume: 312.402K Avg Volume: 185.09K
BUY POINT: $19.77 Volume=278K Target=$23.74 Stop=$18.87
POSITION: FQW EW - May $17.50c (81 delta) &/or Stock
http://www.investmenthouse.com/ci/axca.html
Play Date: 02/08/2005
GRP (Grant Prideco--$21.08; +0.56; optionable): Oil and gas equipment & services
http://biz.yahoo.com/p/g/grp.html
STATUS: Reverse head and shoulders. After a strong run up the 50 day EMA (19.91) in 2004 GRP needed a breather. This 4 month base is giving it that rest. The last 9 weeks have formed a nice reverse head and shoulders, and Tuesday volume surged as GRP started up over the neckline at 21. It used the 200 day SMA (18.87) as support, an important level where institutions come in to support a stock if they are going to. Looks ready to make the move.
Volume: 1.866M Avg Volume: 1.065M
BUY POINT: $21.22 Volume=1.1M Target=$25 Stop=$20.21
POSITION: GRP GD - July $20c (70 delta) &/or Stock
http://www.investmenthouse.com/ci/grp.html
Play Date: 02/08/2005
PDS (Precision Drilling--$69.57; +1.23; optionable): Oil and gas equipment. Forecast to announce a split 2-10-05 before the open in conjunction with earnings.
BACKGROUND: Last split 10-15-97 at $62. It has been a long time but it has finally made it back to split level.
http://biz.yahoo.com/p/p/pds.html
STATUS: Test breakout. PDS broke out from a short 7 week double bottom with handle base in mid-January and rallied to 70. It has moved laterally the past two weeks, making higher lows along the 10 day EMA (68.54) as it bumps up against 70. Volume moved higher and back above average Tuesday as PDS moved toward the breakout over 70. Looking for that move and volume to remain solid as it does.
Volume: 304.9K Avg Volume: 308.818K
BUY POINT: $70.32 Volume=400K Target=$78.48 Stop=$68.44
POSITION: PDS FN - June $70c (54 delta)
http://www.investmenthouse.com/ci/pds.html
Play Date: 02/08/2005
PPDI (Pharmaceutical Prodcut Dev.--$43.16; -0.44; optionable): Medical labs
http://biz.yahoo.com/p/p/ppdi.html
After Hours: $43.11
STATUS: Cup w/handle. PPDI is easing back this week on lower, below average volume. This looks to be forming the handle to a 15 week pattern that formed up at the 50 day EMA (41.13), an important support level. When a stock bases over this support it is a good indication of big money refusing to sell. Indeed, they have been net buyers as the tock sports positive 5 to 4 accumulation and some strong money flow. This base is forming right at an all-time high, a point where it has no overhead resistance. It most likely will come back to fully test the 10 day EMA (42.47) before it moves toward a breakout.
Volume: 276.419K Avg Volume: 481.409K
BUY POINT: $44.05 Volume=722K Target=$60 Stop=$42.32
POSITION: PJQ GV - July $42.50c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/ppdi.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.
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stock split
stock recommendation
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