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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Good Movers: AAPL; AMX; BOOM; CRXL; FRK; GILD; JOYG; SNDK; TLWT
Thursday night play results:
ALEX: Rallied sharply but then gave it up on the close.
GENZ: Low volume and no gain on the 18 day EMA.
HYDL: Modest gain on continued strong volume but not the breakout move yet.
JOYG: Rallied well on a bit lower volume.
Upside:
Play Date: 10/01/2005
BABY (Natus Medical--$12.17; +0.11; optionable): Medical appliances
http://biz.yahoo.com/p/b/baby.html
STATUS: Breakout test. BABY shot out of an 11 week flat base two weeks back on a tremendous volume surge. It carried to 13.46 on the first breakout move and has since come back to test, holding above the 18 day EMA (11.80) on the close. Indeed, Friday it undercut the 18 day but then rebounded or a gain as the buyers came back in to push the stock higher. Strong 5 to 2 accumulation in the flat base (5 up price weeks on rising volume to 2 down price weeks on rising volume) shows solid buying, and money flow has surged ahead of the price. Nice pullback to rest after hitting a new all-time high (a new issue in late 2001), setting up the next move in the breakout run. The first test of a breakout is one of our favorite entry points as it shows buyers ready to come back in even after the stock has made a move higher. That shows plenty of demand.
Volume: 132.935K Avg Volume: 148.226K
BUY POINT: $12.42 Volume=222K Target=$14.95 Stop=$11.75
POSITION: QBU AV - Jan. $12.50c (53 delta) &/or Stock
http://www.investmenthouse.com/ci/baby.html
Play Date: 10/01/2005
BRCM (Broadcom--$46.92; +1.16; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
After Hours: $47.11
STATUS: Breakout test. In early September BRCM broke out of a long 14 month cup with handle base. It dipped sharply to the 50 day EMA (43.23) two weeks back, making a quick intraday tap at that support. It rebounded, moved laterally for a week, and then started higher Friday on stronger, average trade. Nice full test of the breakout and now it is ready to continue the breakout move. Money flow is leading higher and relative strength broke out Friday, a very good indication for the continued move from the stock.
Volume: 6.675M Avg Volume: 6.8M
BUY POINT: $47.18 Volume=8.8M Target=$55.95 Stop=$45.04
POSITION: RCQ AI - Jan. $45c (62 delta) &/or Stock
http://www.investmenthouse.com/ci/brcm.html
Play Date: 10/01/2005
CELG (Celgene--$54.32; +0.72; optionable): Cancer and immunological disease therapies. Forecast to announce a split in early December.
BACKGROUND: Last announced a 2:1 split 9-9-04 at $57.40. Its other split was a 3:1 split announced 3-13-00 at $168.
http://biz.yahoo.com/p/c/celg.html
After Hours: $53.99
STATUS: Breakout test. CELG dropped down to test the 50 day EMA (50.28) Wednesday and then rebounded on sharp volume as the buyers ran back in to CELG. This is the first test of a big breakout in early September, the second base since breaking higher in March. That still gives CELG plenty of upside as it completes this test and sets up for the next run higher. Nice test of that last breakout and CELG is ready to move to a new all-time high. Want to see the volume pick up as CELG starts higher this week.
Volume: 1.439M Avg Volume: 2.531M
BUY POINT: $54.88 Volume=2.6M Target=$65.85 Stop=$53.11
POSITION: LQH AK - Jan. $55c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/celg.html
Play Date: 10/01/2005
MRVL (Marvell Technology--$46.11; +1.96; optionable): Semiconductor integrated circuits. Forecast to announce a split 11-17-05 after the close.
http://biz.yahoo.com/p/m/mrvl.html
After Hours: $46.11
STATUS: Test 50 day EMA. MRVL is making its second test of the 50 day EMA (44.55) since the mid-May breakout from a 14 week ascending base. Strong rally up the 18 day EMA (45.26) is how a strong stock moves higher, and then it makes a test of the 50 day MA where it reloads and starts higher. Volume surged back above average Friday as MRVL jumped off of the 50 day EMA. Strong money flow is leading higher. A leader, and after this test of solid support it is ready to go again.
Volume: 4.901M Avg Volume: 3.255M
BUY POINT: $46.44 Volume=3.5M Target=$53.45 Stop=$44.42
POSITION: UVM AI - Jan. $45c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/mrvl.html
Play Date: 10/01/2005
SWB (Smith & Wesson Holdings--$5.62; +0.06; no options): Handguns, law enforcement products, firearm safety/security products
http://biz.yahoo.com/p/s/swb.html
STATUS: Cup w/handle. SWB is working on the handle (flat, tight lateral move) to its 8 week base, preparing for the breakout that will take it to another all-time high (a new issue back in 2002). We watched it set up a nice 10 week cup with handle and breakout in May, taking it from $3 to $6.50 on the run. It has spent the past 8 weeks forming a new base roughly holding the 50 day EMA (5.07) on the lows. Surging money flow and positive accumulation has set the stage for the next breakout and run. This is a somewhat overlooked industry with the negative press about guns, but SWB is a big supplier to the military, having just received a new contract September 21. Ready to make the next breakout and follow that money flow higher.
Volume: 413.3K Avg Volume: 485.602K
BUY POINT: $5.81 Volume=728K Target=$6.97 Stop=$5.42
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/swb.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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