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Begin Part 4 of 4

BRL (Barr Laboratories--$85.00; -1.80; optionable):
http://biz.yahoo.com/p/b/brl.html
BACKGROUND: Last announce a 3:2 split on 5-31-00 with a board meeting. The stock price was $52. The annual shareholder meeting 10-26-00 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Given the recent lower volume gains, we were watching for a potential pullback, and it started Wednesday as BRL gapped up to test the late July and late August highs, but could not push through them and promptly sold back on sharply increased volume. The stock followed that move by gapping down and closing with a tight doji on the 10 day MVA today as volume dropped significantly to 653,700 (average 815,700). This action provides a great example of why we are wary of lower volume gains. From here, we are still waiting to take positions until we see a more stable, lateral consolidation over support. After we see it, we can look for a solid breakout move to take out the recent double tops at 90 and carry the move to a new high.
BUY POINT: Breakout: After consolidating here on lower volume, a move to a new high (over 90.60) on volume of 1 million or greater. Stop: 85. Aggressive: After holding, a move back over 87.50 on above average volume. Stop: 84.
POSITION: Stock and/or February $85 calls to buy (BRL BQ).

CBH (Commerce Bancorp--$70.70; -0.20; optionable): Banking
http://biz.yahoo.com/p/c/cbh.html
BACKGROUND: Last announced a 5:4 split on 6-29-98. The stock price was $54.63. The annual shareholder meeting was on 6-20-00 at which time no additional shares were authorized. The company has insufficient shares for a 2:1 split.
STATUS: CBH fell back from the recent high Wednesday, and continued down today, showing a small loss on the day on slightly decreased volume of 140,600 (average 147,600). The stock had struggled to sustain a move over the 50 day (69.81), and was then showing smaller gains on weakening volume, so this gentle pullback is not entirely surprising. The stock is holding support over the 10 day MVA (70.65), and could form a handle to this 'v' cup (once again, the 'v' courtesy of the attacks), giving it a chance to gather some strength for a solid breakout run. The former pattern high is at 77.90, made on a break from a cup with handle in July.
BUY POINT: Aggressive: A move back over 72 with increased, above average volume. Stop: 69. Breakout: After froming a handle, 72.82 on volume of 225,000. Stop: 69.
POSITION: December $70 calls to buy (CBH LN).

FRX (Forest Labs--$72.39; -1.91; optionable): Drugs.
http://biz.yahoo.com/p/f/frx.html
BACKGROUND: Last announced a 2:1 split on 12-18-00 with a board meeting. The stock price was $135. Prior to that announced a 2:1 split on 2-23-98 in conjunction with a board meeting. The stock price of $62. The company has sufficient shares for a 2:1 split.
STATUS: FRX has continued down after Tuesday's strong drop and is now struggling with resistance at the 50 day MVA (74.14). The stock made a brief attempt to clear that level yesterday, but it could not hold the move. Once again, the stock gapped down to open today, and after trading in a rather wide range between the 50 day and 71.30, FRX pulled into a loose doji to close as volume fell to 1.34 million (average 1.40 million). At this point, the stock has made two consecutive attempts to clear the 50 day and failed, so from here we will look for stronger selling down through the intraday low to trigger put positions (although we may see another test of the 50 day before we get the move), especially if we get more market weakness. The initial target is the 200 day at 68.15.
BUY POINT: From here, stronger selling down through 71.25. Test: After a weaker test of the 50 day fails, stronger selling through 72.25.
POSITION: November $85 puts to buy (FHA WQ).

GD (General Dynamics--$80.36; -3.39; optionable): Forecast to announce a split on 10-17-01 before the open with earnings.
http://biz.yahoo.com/p/g/gd.html
BACKGROUND: Last announced a 2:1 split on 3-4-98 at a stock price of $89. The company has just enough authorized shares for a 3:2 split, but can certainly announce contingent on an increase in the number of authorized shares.
STATUS: After making a weak push up from the 18 day earlier this week going into earnings, with the announcement news GD crashed back hard on sharply increased volume and has now given back all of the recent gains shown since the markets re-opened. The stock fell back through the short-term and 50 day MVA's (50 day at 84.53) Wednesday, and continued down today as volume surged to 5.86 million (average1.32 million). GD had made a very solid move with sector strength after the attacks, but defense plays are not universally solid now, and GD is now an aggressive downside play after a relief bounce fails. The 200 day is at 75.83 and will serve as the initial target.
BUY POINT: After a weaker bounce fails in the 82 range, a move down through 80 on strong selling volume.
POSITION: November $90 puts to buy (GD WR).

MIKE (Michaels Stores--$47.08; -0.87+0.02; optionable):
http://biz.yahoo.com/p/m/mike.html
BACKGROUND: Based upon our research it does not appear that MIKE has ever split its stock. The annual shareholder meeting was on 9-13-00 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Volume has fallen back after Tuesday's strong move as MIKE has shown some volatility, but held support over the pivot (recent highs at 45). Today the stock made a push up to 48 before pulling back to close with a loose doji on lower volume of 244,400 (average 358,500). MIKE has made some very strong moves since early October with good earnings news, moving back over a previous double top and moving toward the all-time high of 49.63. From here, we would like to see the stock move into a steady consolidation over 46 (10 day MVA at 45.15) on continued light volume and rest a bit before we see the next run up. That is what it did earlier this month.
BUY POINT: After holding the 46 range, a move back up on above average volume. Stop: 44.
POSITION: December $40 calls to buy (IKQ LH - under 100 open interest).

MKC (McCormick--$44.28; -0.10; optionable): Food & Beverage.
http://biz.yahoo.com/p/m/mkc.html
BACKGROUND: Last announced a 2:1 split in November 1991. The annual shareholder meeting was on 3-21-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Holding the 50 day. Monday MKC fell out of the small pennant (formed after testing the late September breakout), and despite a brief recovery attempt, is now testing the support of the 50 day MVA (44.06). Volume dropped today as the stock fell back from the 18 day (44.64, with the 10 day) and hit an intraday low of 44 before pulling up to close. It is still holding the reverse head and shoulders pattern, and we will see if it can continue to settle into a lower volume consolidation over the 50 day (the right shoulder) and gather strength for another run. Targeting 52 initially.
BUY POINT: Aggressive: A move over 45 on above average volume (163,500; down today to 94,400). Stop: 44. Breakout: A move to 46.67 on volume in the 250,000 range. Stop: 44.
POSITION: Stock and/or December $40 calls to buy (MKC LH).

RMD (Resmed--$51.80; -0.05; optionable): Health services.
http://biz.yahoo.com/p/r/rmd.html
BACKGROUND: Last announced a 2:1 split on 2-25-00 with a board meeting. The stock price was $68.
STATUS: Took a hard fall out of the recent consolidation (small ascending wedge) and through the loose convergence of the short-term and 50 day MVA's (52.42) Wednesday and showed us a lower volume doji just under those levels today (volume down to 172,700, average 218,900). Still, RMD is holding the June-July range of the bottom of the former cup pattern, and if it can hold support it could set up again for a move.
BUY POINT: Breakout: After holding 52 in a lower volume consolidation, a move to 54.62 on volume of 275,000, with stock and/or January $50 calls to buy (RMD AJ). Stop: 52.

SLM (USA Education--$82.62; -0.38; optionable): We did not get the announcement. http://biz.yahoo.com/p/s/slm.html
BACKGROUND: Last announced a 7:2 split on 11-21-97 at a price of $132. The annual shareholder meeting 5-10-01 at which time additional shares were authorized.
STATUS: After briefly tapping up through the 10 day MVA (83.85), SLM pulled back a bit more today, as volume crept up to 731,000 (average 818,100). The stock was pulling into a nice consolidation over its short-term MVA's, but has now fallen through them and is below the mid-August left side highs (from the 6-week double bottom). From here we will see if volume stays light as the stock moves into a consolidation, or if it pulls back further to the 50 day (81.28) to set up the next run. Target on a breakout: 100.
BUY POINT: Aggressive: A move over 85 on increased, above average volume Stop: 81. Breakout: 86.82 on increased, above average volume. Stop: 82.
POSITION: Both buy points: Stock and/or January $80 calls to buy (SLM AP).

STJ (Saint Jude Medical--$73.55; +1.88; optionable): Health Services. Forecast to announce a split on 10-18-01 in conjunction with earnings.
http://biz.yahoo.com/p/s/stj.html
BACKGROUND: STJ last split its stock 3:2 in late 1995 at a price of approximately $60. The company has sufficient shares for a 2:1 split.
STATUS: It looked as though STJ was going to continue the breakout run Wednesday, but it could not hold on and fell back on some fairly strong selling in the weak market. The stock made another push up today, tapping a new intraday high of 71.55, but volume was much weaker, down to 787,900 (average 670,600), so the move may quickly stall. Not much of a breakout move at this point (from its skewed double bottom with handle), so we may see more of a consolidation before a further move, looking at the prior high (72) or the 10 day MVA (70.83) provides support. Target remains 85.
BUY POINT: From here (aggressive): Still a buy up to 75.60 on increased volume. After a test that holds the 10 day: A move back over 73 on increased, above average volume. Stop: 70.
POSITION: Stock and/or January $70 calls to buy (STJ AN).

WHR (Whirlpool--$59.85; -0.68; optionable): Consumer Durables: Appliances. We did not get the announcement.
http://biz.yahoo.com/p/w/whr.html
BACKGROUND: Based upon our research it does not appear that WHR has ever split its stock. The annual shareholder meeting was on 4-17-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: WHR could not hold on, falling back with earnings. The stock gave up the recent gains as it fell back through the 50 day MVA (61.19) on stronger volume Wednesday and stopped us out of current positions. WHR lost more ground today as it tapped down to the 200 day at its low of 58.26, before catching itself and pulling up to close with a loss on the day. Volume fell a bit, but was still above average at 1.16 million (average 789,800). From here, we will see if it can make it back over the 50 day and hold on, continuing the handle-type consolidation to its little cup.
BUY POINT: Aggressive: After holding support here, a move over 62.50 on increased, above average volume. Stop: 60.
POSITION: Stock and/or December $60 calls to buy (WHR LL).

POST SPLITS REMAINING PLAYS:

ATK (Alliant Techsystems--$85.10; +2.00; optionable): Aerospace/Defense. Split 3:2 effective 9-10-01.
http://biz.yahoo.com/p/a/atk.html
STATUS: ATK may have caught itself. The stock showed some strength today as it pushed up to close just under the 10 day MVA (85.58, 18 day at 84.61) on increased volume of 390,400 (average 293,400). We may see more of a lateral consolidation here, which would be fine, but the stock has given us a nice, steady pullback on generally decreasing volume, which is what we were looking for. Some defense issues have retreated much harder, but ATK is hanging in there. On a volume surge, the aggressive can look at new or additional positions. ATK is becoming a leader and regular splitter and we are looking for more. Target on the next run: 105.
PLAY: From here (aggressive), or after a further consolidation, a move over 86 on increased, above average volume, with stock and/or February $80 calls to buy (ATK BP).

CECO (Career Education Corp--$26.90; -0.15; no options): Education services. Split 2:1 effective 10-1-01.
http://biz.yahoo.com/p/c/ceco.html
STATUS: Looking weak. Wednesday CECO took a huge intraday drop through the 200 day MVA (25.82; low of 22.87), but managed to recover and show a relatively small loss on the day as it moved on incredible volume. The stock gapped down to open just over the 200 day today, and made a push up toward the loose convergence of the short-term and 50 day MVA's (50 day at 28.65), but could not break through and fell way back off the high to close (volume way down to 1.28 million, average 505,000). Not a clear pattern here, although it could pull into a 'flying w' if it holds here and set up a solid recovery - but that may take some time. We will keep an eye on it to see what happens. Nothing for Friday.

ESRX (Express Scripts--$40.29; -7.74; optionable): Split 2:1 June 25.
http://biz.yahoo.com/p/e/esrx.html
STATUS: Dropping like a rock. The selling continues as ESRX took out the 200 day MVA (48.62) Wednesday, and crashed through the September and May lows (41-44) today on the largest volume ever recorded for this stock (20.68 million, average 1.36 million). This selling has been huge (prompted by a loss of a contract) and great for the put play set up on the initial drop Tuesday, but we don't like to chase a stock down. For aggressive additional positions from here we will see if the stock makes a relief bounce, and then drops back again hard. The next level of potential support appears to be the March lows in the 35 range.
PLAY: Aggressive: After a relief bounce fails at the 43-44 range, a drop back through 42 on strong selling volume, with November $55 puts to buy (XTQ WK - check broker for price, delta, etc. as unavailable at the time of writing).

JNJ (Johnson & Johnson--$58.08; +0.31; optionable): Drugs. Split 2:1 June 12.
http://biz.yahoo.com/p/j/jnj.html
STATUS: JNJ has continued to run up, but the price/volume action is not what we have been looking for, as the stock is gapping up to new highs and showing small gains on steadily decreasing volume. The stock closed with a loose doji today as volume fell to 8.91 million (average 8.09 million), so we will see if JNJ can move into a lower volume consolidation over 57 (August-September highs) or the 10 day MVA (56.33) and take a breather as it digests the recent gains. After holding and perhaps consolidating, we can look for the next move up. New high today of 58.40. Target: 64.
PLAY: Aggressive: After a lower volume consolidation over the 10 day: A move over 57 on increased, above average volume. Stop: 54. Breakout: After a pullback, a move to 58.42 on above average volume. Stop: 56. With either buy point, stock and/or January $55 calls to buy (JNJ AK).

KMP (Kinder Morgan--$37.60; +0.25; optionable): Energy. Split 2:1 effective Sept. 4.
http://biz.yahoo.com/p/k/kmp.html
STATUS: After breaking out Tuesday, the stock announced earnings Wednesday and is holding on. KMP gapped up but reversed (after hitting a new high of 38.90) Wednesday, and made a very similar move again today (volume up to 268,800, average 177,800). The stock is holding over the pivot (August lateral consolidation), but the higher volume selling is not what we were looking for. We will see if KMP can make a successful test, holding support at 37 for a move back up. Still looking at an overall target of 42.
BUY POINT: After holding 37, a strong move back to 39.03 on increased volume, with stock and/or December $35 calls to buy (KMP LG). Stop: 36.

PDLI (Protein Design Labs--$28.36; +1.36; optionable): Biotechnology. Splits 2:1 effective October 12.
http://biz.yahoo.com/p/p/pdli.html
STATUS: Caught support at the loose convergence of the short-term and 50 day MVA's (26.50-27) and made a small push up today. The stock is still struggling in a downtrend. The 200 day (29.85) and down trendline (connecting November and June closing highs, at 28.75) are providing significant resistance thus far, and it has not shown strength in failing several times at those levels. We want to see a volume surge carry a move over those levels to trigger an upside play. We may see more of a consolidation over support before we see the move. Initial target: 35.
PLAY: A move to 31 on volume of 4 million (today down to 2.19 million, average 1.94 million), with stock and/or November $25 calls to buy (PQI KE). Stop: 28.50.

SFD (Smithfield Foods; $19.51; -0.14; optionable). Food & Beverage. Split 2:1 on Sept. 17.
http://biz.yahoo.com/p/s/sfd.html
STATUS: Since Tuesday's high volume tombstone doji, the stock has shown smaller losses on steadily decreasing volume (today down to 472,000, average 327,500), but has yet to hit the low we saw earlier in the week (19.05). We are still riding current positions, but are watching potential support at 19 and the falling volume carefully. If the selling volume picks up, we will continue to target the 200 day (18.40), but if volume continues to fall and the stock shows signs of pulling into a consolidation, we will consider taking profits.
PLAY: A bit tight for new plays given the put deltas and prices, so we are looking to ride current positions.

Good Investing!
Jon L. Johnson and the Stock Split Report 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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