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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Monday night play results:
ASEI: Low volume pullback. Still a nice pattern.
DRI: Nice doji with tail at the 10 day EMA.
ELOS: Good volume and moved higher but got caught in the afternoon selling.
FFIV: Nice low volume test of the 10 day EMA as it works on completing the handle.
Upside:
Play Date: 11/15/2005
CAM (Cooper Cameron--$75.18; +0.75; optionable): Oil and gas service company. Splits 2:1 on 12-16.
http://biz.yahoo.com/p/c/cam.html
STATUS: Reverse head and shoulders. Volume moved above average Tuesday as CAM pushed toward a breakout from its 10 week pattern. While oil is below its trendline and threatening to go lower, the service companies are due to make plenty on the rebuild. CAM is showing good action in this pattern and we are ready to move in as it continues through the buy point on continued strong trade.
Volume: 1.416M Avg Volume: 1.238M
BUY POINT: $76.38 Volume=1.9M Target=$83.95 Stop=$73.77
POSITION: CAM BN - Feb. $75c (58 delta)
http://www.investmenthouse.com/ci/cam.html
Play Date: 11/15/2005
MDT (Medtronic--$57.07; +0.36; optionable): Medical appliances. Wild card to announce a split 11-16-05 after the close.
BACKGROUND: Last announced a 2:1 split 8-25-99 at $74. A frequent splitter before that.
http://biz.yahoo.com/p/m/mdt.html
STATUS: Cup w/handle. Good volume Tuesday as MDT pushed toward the breakout from its 10 week base formed using the 200 day SMA (53.69) on the low as support. Money flow is jumping higher ahead of price and we are looking for MDT to follow it. A long time since MDT announced a split as it has been working in a 5 year base, moving basically sideways. Looking for some volume to start a position. An earnings play and they can be volatile. We can look at some positions on a strong move through the buy point or before the close; those are the more aggressive positions. We can also look to see if it gets a good result and if that helps it with the breakout move. A breakout here pushes it out of that long base and gives it some room to run.
Volume: 5.129M Avg Volume: 4.184M
BUY POINT: $57.48 Volume=6.3M Target=$65.95 Stop=$56.05
POSITION: MDT BK - Feb. $55c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/mdt.html
Play Date: 11/15/2005
WFR (Memc Electronic--$21.04; +0.51; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/w/wfr.html
STATUS: Reverse head and shoulders. Volume jumped above average Tuesday as WFR gapped higher, rallying to 21.93 on the high before it got caught in that market selling. Nice little 7 week base that is ready to take it to a 5 year high. Strong 3 to 1 accumulation in the base. Solid technically and fundamentally. Reported solid earnings late in October, tanked, but then recovered quickly to continue the base. Looks ready to move.
Volume: 5.382M Avg Volume: 3.288M
BUY POINT: $21.62 Volume=4.9M Target=$25.95 Stop=$20.11
POSITION: WFR DD - Apr. $20c (67 delta) &/or Stock
http://www.investmenthouse.com/ci/wfr.html
Back on:
Play Date: 11/15/2005
MSTR (Microstrategy--$76.98; -1.48; optionable): Business software
http://biz.yahoo.com/p/m/mstr.html
STATUS: Cup w/handle. MSTR jumped higher on so-so volume last week so we hesitated on moving in. Then it gapped higher and was gone. Okay. Now it is coming back, starting lower Tuesday on lower, below average volume. We expect it to come back a bit more toward the 10 day EMA (74.93) though it may not come all the way back. This is an explosive stock and we want to be ready in the event the market and MSTR turn right back up from here. Nice 14 week base is forming. Positive accumulation.
Volume: 198.7K Avg Volume: 445K
BUY POINT: From Tuesday close: $77.48. Test 75, then 76.12 on the rebound. Volume=612K Target=$88.95 Stop=$73.38
POSITION: EOU DP - Apr. $80c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/mstr.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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