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MKC (McCormick--$43.12; -0.93; 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: MKC has been holding the 50 day MVA (44.16) as it was moving in something of a reverse head-and-shoulders pattern. However, it never made a move up, and it broke support Monday and headed down with more gusto today. Volume increased on the selling, but remained weak at 137,100 (average 156,500). With the weak volume we could see a test of the 50 day, and on that move we will see how it handles resistance, watching for a harder drop back for a possible put play. There is possible support from the lows in its July-August cup at 42, but we will target the 200 day MVA at 41.38.
BUY POINT: After a failed test of the 50 day, a drop back through 43.50 on above average selling volume.
POSITION: December $50 puts to buy (MKC XJ).

RMD (Resmed--$56.55; -0.45; 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: Tried to mount another run Monday, but after hitting a high of 59.48, RMD fell back to close with a loss on the day. It fell a bit further today, on sharply higher volume of 378,300 (average 232,500) as RMD tested down through the 10 day MVA (56) before pulling up at the close. Despite the higher volume, the stock is still holding well over the recent pivot (54.63) and the overall handle-type consolidation is intact. We will see if it continues to hold support, looking for volume to dip and set up the next run toward the upper range of its May-August cup pattern (high 61.39).
BUY POINT: After holding support in the handle consolidation on lower volume, a move to 58.45 on minimum volume of 350,000. Stop: 55.
POSITION: Stock and/or January $55 calls to buy (RMD AK).

SLM (USA Education--$82.25; +1.00; 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: Since gently pulling back from the early October high of 86.70, SLM has generally moved on below average volume. However, after its latest bounce up from the 50 day, SLM fell back through the 50 day Monday on the strongest volume we have seen this month. Today it gapped down to open and fell to a low of 80.45, but then tried to make a recovery. Volume however, was lighter and not enough to push it through the short-term MVA's (down to 940,000; average 754,800). Here SLM is also sitting below the uptrend line drawn from the May & August lows (at 82.75). The stock has been a strong performer, so we will see if it can recover, although the selling is a concern.
BUY POINT: Aggressive upside: A move to 84 on increased volume. Stop: 81.50. Breakout: 86.82 on above average volume. Stop: 82.
POSITION: Both buy points: Stock and/or January $80 calls to buy (SLM AP).

STJ (Saint Jude Medical--$69.20; -1.32; optionable): Health Services.
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: The selling continued into this week, but STJ is trying to catch support. Monday the stock continued down through the 18 day MVA (71.23), again on strong volume, but the volume eased up today (down to 711,900, average 628,800) as STJ fell back to the range of the consolidation we saw earlier in the month (lows just under 86), caught itself, and pulled up to close just over the 50 day (at 69.04). The stock is now in the range of the pattern center of its former double bottom, so with this support we will see if it can hold. STJ has made nice moves up from the 50 day before (April, July & August of this year), but it has to stop the momentum first before we can see anything to the upside. It may take some time.
BUY POINT: Aggressive: After holding and consolidating over the 50 day, a move over 72 on above average volume. Stop: 69. If it can regroup, the breakout is at 75.50.
POSITION: Stock and/or January $70 calls to buy (STJ AN).

SUI (Sun Communities--$37.07; +0.05; no options): REIT. http://biz.yahoo.com/p/s/sui.html
BACKGROUND: Based upon our research it does not appear that SUI has ever split its stock. The annual shareholder meeting was on 5-22-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: The pullback we saw Friday continued into this week, as volume picked up considerably. Monday SUI dropped through the short-term MVA's (18 day at 37.12, 10 day at 37.16), and today the stock hit an intraday low of 36.80 before catching itself and pulling up to close with a "hammer" doji right under the 18 day as volume stayed steady at 48,900 (average 44,000). We will see if SUI can recover over the 10 day or if it falls further to the 50 day at 36.60 (below which it started its last move). The stock had made some hefty moves this month (a breakout move to 38.05, a fall on earnings, and a quick recovery). If it can hold here, we will look for it to pull into a more stable lateral consolidation to set up the next run. Target 45.
BUY POINT: After recovering over the 10 day and perhaps consolidating, a buy point of 38.17 on volume of 75,000, with stock. Stop: 36.50.

THC (Tenet Health Care--$58.98; -0.06; optionable):
http://biz.yahoo.com/p/t/thc.html
BACKGROUND: Last announced a stock split in September 1991 in the $45 range. No additional shares will be authorized at the annual shareholder meeting, but the company has sufficient shares for a 2:1 split.
STATUS: Support is holding. After falling from the recent high of 62.78 back down to the 50 day MVA (58.08) on huge volume last week, the stock seems to be taking a bit of a breather. Monday, and again today, we have seen weak pushes up off the 50 day that are stalling at the short-term MVA's (18 day at 59.61) as volume has fallen considerably, today staying steady at 1.5 million (average 2 million). THC had been behaving pretty well before this drop, and has mounted nice moves from the 50 day before (most recently when the markets re-opened). As long as it continues to hold support, we can give it time.
BUY POINT: Aggressive: A move over 60 on above average volume. Stop: 57.50.
POSITION: Stock and/or February $55 calls to buy (THC BK).

POST SPLITS REMAINING PLAYS:

JNJ (Johnson & Johnson--$57.85; -0.71; optionable): Drugs. Split 2:1 June 12.
http://biz.yahoo.com/p/j/jnj.html
STATUS: JNJ had been gently pulling back on lower volume from a recent high of 59.66, and generally holding support over the 10 day MVA (58.13). We were looking for support to hold there, and for JNJ to form a handle-type consolidation to set up the next run. But the stock may have other ideas. Today JNJ gapped up to open and tapped toward the recent highs, but reversed and fell back through the 10 day to close, moving on increased volume (8.14 million; average 7.95 million). The stock is now in the range of the former pattern highs (a rolling range between 52 & 58), so we will see if it can hold at the nearby 18 day (57.45) or the closing highs in the recent range, at 57. Once it proves it can hold support, we will look for a stronger move back up. Target: 64.
PLAY: After a consolidation on continued low volume that holds 57-57.50, a move over 59 on increased, above average volume, with stock and/or January $55 calls to buy (JNJ AK). Stop: 55.

PDLI (Protein Design Labs--$33.19; +0.11; optionable): Biotechnology. Splits 2:1 effective October 12.
http://biz.yahoo.com/p/p/pdli.html
STATUS: After making a strong breakout last week, we were watching for a pullback and we got it Monday, as PDLI sold back toward 32.50 on lighter volume. Today, after trading in a rather wide range that included a test through the 10 day MVA (31.79), the stock pulled into a very loose doji to close as volume decreased to 3.47 million (average 2.1 million). On the upward momentum, we continually move stop ups to protect profits, so after being stopped out yesterday, we will see if the stock can hold the 10 day. I ti sall momentum on a move back up from here. In this cup (dating back to late July) the left side highs are at 45 (late 2000 highs at 70).
PLAY: Aggressive: From here or after more of a lower-volume consolidation over support, a move back up over 34.50 on increased, above average volume, with stock and/or November $30 calls to buy (PQI KF). Stop: 32.

WFMI (Whole Foods--$35.95; -0.26; optionable): Grocery Stores. Split 2:1 June 5.
http://biz.yahoo.com/p/w/wfmi.html
STATUS: May be ready to pull back into a handle. Given the gradual move up the right side of this cup (on generally light volume) to the recent high of 36.90, we have been watching for a pullback, and looking for the 10 day MVA (35.30) to provide support on that move. We saw what may be the beginning of that today as WFMI gapped back to open at the left side high (35.87), and traded between the 10 day and 36.35 before closing with a loose doji on decreased volume of 310,700 (average 734,000). From here we want to see support continue to hold, and after the stock has a chance to collect itself, we will look for an above average volume surge to carry a breakout move. On a solid move over the high we will look at 41.50 as a target. It may take some time.
PLAY: After a lower volume pullback that holds the 35 range, a buy point of 37.03 on volume of 1.1 million, with stock and/or February $30 calls to buy (FMQ BF). Stop: 34.

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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