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Begin part 3 of 3

THE PLAYS

Good movers Thursday: CKR; CRZO; GLBL; GRP; MAPS; TV; ABFS; EYET

Wednesday night play results:
GLBL: Nice breakout on strong volume.
FOXH: Gapped higher on better trade but could not hold the move.
EYET: Diving lower on stronger trade.

New Plays:

Upside:

Play Date: 02/10/2005
NOVA (Novamed Eyecare--$7.33; +0.20; no options): Ambulatory ophthalmic surgery centers
http://biz.yahoo.com/p/n/nova.html
STATUS: Breakout test. NOVA surged out of an 11 month base in early December, rallying on strong trade. This is its second test of the breakout, holding over the 18 day EMA (6.93) as it consolidated the past 4 weeks on very low, below average volume. Thursday NOVA started higher, ready to resume the breakout run and follow the strong money flow higher. Relative strength broke out again on this last move and looks ready to do so once more, a continuing sign of the stock's strength. Solid 2 to 0 accumulation in the lateral move shows continuing buying. Looks ready for the next leg.
Volume: 160.006K Avg Volume: 130.909K
BUY POINT: $7.55 Volume=200K Target=$9.55 Stop=$7.02
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cd/nova.html

Play Date: 02/10/2005
SOV (Sovereign Bancorp--$23.53; +0.52; optionable): Savings and loan
http://biz.yahoo.com/p/s/sov.html
STATUS: Cup w/handle. Volume has jumped higher this week as SOV has made a halting start toward a breakout from its 14 month base sporting solid 14 to 10 accumulation. A big run in 2003 required a big base to consolidate, and it looks as if SOV has done that and is ready to begin the next leg higher. Money flow is excellent and SOV looks ready to make the breakout move.
Volume: 2.654M Avg Volume: 1.251M
BUY POINT: $23.88 Volume=1.2M Target=$28 Stop=$22.88
POSITION: SOV GX - July $22.50c (60 delta) &/or Stock
http://www.investmenthouse.com/cd/sov.html

Play Date: 02/10/2005
VPI (Vintage Petroleum--$25.55; +0.90; optionable): Independent oil and gas
http://biz.yahoo.com/p/v/vpi.html
STATUS: Double bottom w/handle breakout. VPI surged higher Thursday on extreme volume as it made the breakout from its 10 week base sporting solid 4 to 2 accumulation. Strong money flow is leading higher and VPI is following. Relative strength is breaking out as well, a very good signal the breakout is for real. Looking to step in on a further move higher on this breakout and then wait for a successful test to complete the buy.
Volume: 879.5K Avg Volume: 336.772K
BUY POINT: $25.68 Volume=350K Target=$30 Stop=$24.32
POSITION: VPI EE - May $25c (64 delta) &/or Stock
http://www.investmenthouse.com/cd/vpi.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. Will announce the replacements this week.

BR: Beautiful break higher on strong volume from the double bottom with handle base. Still a buy on a further move.

HDWR: Nice doji over the 18 day EMA. May now be ready for the breakout after this handle has formed.

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:

ZIGO: In a deep base but trying to rally and start up the right side of the pattern. Currently testing the November high from the first rally off the bottom. Nice doji and looks ready to move higher.

WDC: Very nice, low volume test of the 18 day EMA, holding the highs from an 8 week lateral move that consolidated the move off the bottom of its 16 month base. Looks nice to continue building the right side of its base.

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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