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stock ticker, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers Tuesday: CPKI; EASI; FFIV; IPMT; RDEN; ABFS; JBLU
Monday night play results:
ARIA: Took a day off on lower volume.
EASI: Continued the strong breakout.
TKO: Turned and dumped to the 50 day EMA on high 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/cd/adbl.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/cd/grp.html
Play Date: 02/08/2005
PLUM (Plumtree Software--$5.28; +0.23; no options): Software
http://biz.yahoo.com/p/p/plum.html
STATUS: Cup w/handle. PLUM was on our list for the week and we saw it start a volume break higher Tuesday. Nice 13 month base sporting strong 12 to 8 accumulation shows plenty of buyers as it worked through the consolidation. Good money flow is leading the stock higher. This is PLUM's second big base since coming public in June 2002. Looks very solid and we are ready to move in on a further move on any kind of decent volume.
Volume: 791.868K Avg Volume: 215.227K
BUY POINT: $5.38 Volume=275K Target=$6.48 Stop=$5
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/plum.html
SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.
BR, COH, EASI, EBAY, GTRC, HDWR, JNPR, MSFT, QCOM
Still taking suggestions to replace EBAY, JNPR, MSFT and QCOM
EASI: Continued the strong breakout on solid volume.
HDWR: Ready to clear the handle high. Just want to see volume jump as it moves over 32.32.
SUBSCRIBER WATCHLIST
We continually receive ideas for potential plays from subscribers. Many times they are already on our watchlists, other times not. We always take a look and sometimes find a gem or two, or more. We don't necessarily endorse these, but want to provide a forum for subscribers with ideas that may appeal to other subscribers. We may just put on the ticker or we might describe our thoughts as to why or why not we think it is a buy or sell. This is a way we can all learn a bit more and maybe find a few more candidates to make us some good money.
Upside:
GS: We looked at GS as well. It made a solid volume move Tuesday, clearing the left side high in its 7 week cup base that formed over the 50 day EMA. It has basically moved up 9 points without a rest so we decided to wait for the test of this move. If it rallies a bit more and then comes back to test and hold 110, that will be a potential entry point with some options for another $7 or more move.
Good Investing!
Jon L. Johnson and The Daily 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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stock ticker
stock recommendation
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