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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers Thursday: CSX; DADE; GLBL; INNO; PUMP; STLD; TSO; VPI; EYET; JAKK
Wednesday night play results:
GOOG: Downgraded and it showed it.
JOYG: Massive gap higher and rally
OII: Nice doji at the 10 day EMA.
JAKK: Diving lower on volume.
New Plays:
Upside:
Play Date: 02/24/2005
CNX (Consol Energy--$43.55; +1.86; optionable): Industrial metals
http://biz.yahoo.com/p/c/cnx.html
STATUS: Double bottom w/handle. Volume has shown some great spikes the past two weeks as CNX starts toward the breakout from its 12 week base. It formed using the 50 day EMA (41.22) as support, an important level where the big money steps in to buy its favorite stocks. Accumulation is positive at 3 to 2 (3 up price weeks on rising volume to 2 down price weeks on rising volume), another indication of institutional support. This is the second base in a base on base pattern. We like those as they really weed out the sellers and set the stage for a stronger move. Looks ready for the breakout.
Volume: 1.567M Avg Volume: 1.007M
BUY POINT: $44.05 Volume=1.2M Target=$50.75 Stop=$42.21
POSITION: CNX GI - July $45c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/cnx.html
Play Date: 02/24/2005
CTSH (Cognizant Technology--$45.90; +1.30; optionable): Business software. Forecast to announce a split in early March. Working to pinpoint the exact date.
BACKGROUND: Last announced a 2:1 split on 4-13-04 at $47. Prior to that it announced a 3:1 split on 3-5-03 at $69.80.
http://biz.yahoo.com/p/c/ctsh.html
After Hours: $46.08
STATUS: Test breakout. CTSH blasted out of a short 6 week cup base two weeks back and has since moved laterally as the 10 day EMA (43.92) rose to catch up with it as it consolidated laterally. Volume backed off as it consolidated, and it has started to rebound the past two sessions as CTSH found support at the 10 day. The bottom of the base formed along the 50 day EMA (40.14), an important support point. Excellent money flow is leading higher and relative strength is making the breakout. A solid leader ready for more.
Volume: 2.13M Avg Volume: 1.837M
BUY POINT: $46.11 Volume=2.5M Target=$54 Stop=$44.45
POSITION: UPU GJ - July $45c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/ctsh.html
Play Date: 02/24/2005
MATK (Martek Biosciences--$65.30; +3.86; optionable): Biotechnology
http://biz.yahoo.com/p/m/matk.html
After Hours: $65.24
STATUS: Double bottom w/handle. Volume surged Thursday as MATK started toward the breakout from its 10 month base. Good action in the handle as it faded back on lower, below average volume. That shakes out the last sellers and it shows not a lot of sellers at that. Excellent 11 to 4 accumulation in the pattern shows a lot of buying. Now that the last sellers are shaken out it is ready to make its move. Excellent money flow is surging higher ahead of price.
Volume: 1.548M Avg Volume: 913.09K
BUY POINT: $65.72 Volume=1M Target=$74 Stop=$63.95
POSITION: KQT FM - June $65c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/matk.html
Play Date: 02/24/2005
MRVL (Marvell Technology--$36.14; +0.17; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/m/mrvl.html
After Hours: $37.65
STATUS: Test breakout. After getting shaken out of MRVL we are looking at it again. It held the 18 day EMA (35.49) after gapping lower Thursday and then rebounded for a modest gain. The story was the surging volume. After hours it reported strong earnings and was up over $1. Not too worried about that; we are going to let it gap and then when it makes its first test we will start a partial position. From there we see what it does and wait until it gives us another entry point. Excellent 4 to 1 accumulation in the base shows buyers have been moving in. Strong money flow is added spice to the 8 week base. Nice test of the 18 day EMA (35.49) has set up this move.
Volume: 5.84M Avg Volume: 3.223M
BUY POINT: $37.25 Volume=4.5M Target=$43 Stop=$35.89
POSITION: UVM HU - Aug. $37.50c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/mrvl.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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