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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Good movers: BTUI; CELG; CHRW; NUAN; PARL; RSTI; SIRF; STT
Tuesday night play results:
ADM: Took the day off.
RMD: Gapped lower for a deeper test. Not what we were looking for but will keep watching it.
SLB: Did not sell off as did many energy stocks, holding the 10 day EMA. We will see.
HOLX: Fell to the 18 day EMA on rising trade. Being careful here.
CDIS: Turning lower but volume not there yet.
New Plays:
Upside:
Play Date: 02/22/2006
CHE (Chemed--$55.42; +0.87; optionable): End of life hospice services, Roto-Rooter, etc.
http://biz.yahoo.com/p/c/che.html
STATUS: Ascending base. Pretty diverse business, but it is making strong money. Split in May and then formed a 6 month base. Broke out and rallied, and now is ready to breakout from its next base, an 11 week ascending pattern over the 50 day EMA (51.63). Volume has surged the past two sessions as CHE has moved to the breakout. Excellent 4 to 0 accumulation shows all buying as money flow surges higher. Relative strength is ready to breakout as well, a good confirmation of the stock.
Volume: 416.3K Avg Volume: 189.411K
BUY POINT: $55.65 Volume=284K Target=$65.75 Stop=$52.89
POSITION: CHE FK - June $55c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/che.html
Play Date: 02/22/2006
DIOD (Diodes--$37.96; +1.08; optionable): Semiconductors integrated circuits
http://biz.yahoo.com/p/d/diod.html
STATUS: Flying plateau. Volume jumped Wednesday as DIOD started the breakout move from a four week lateral move over the 18 day EMA (36.52) that formed immediately after the late January breakout from a short 6 week ascending base. A leading stock in the market, DIOD is set up to make the next move to a new all-time high. Excellent money flow and relative strength is ready to make the breakout move.
Volume: 632.037K Avg Volume: 391.36K
BUY POINT: $38.15 Volume=550K Target=$45.75 Stop=$36.38
POSITION: DUH FG - June $35c (77 delta) &/or Stock
http://www.investmenthouse.com/ci/diod.html
Play Date: 02/22/2006
MGI (Moneygram Intl.--$28.1; +0.4; no options): Payment handling
http://biz.yahoo.com/p/m/mgi.html
STATUS: Double bottom w/handle. A new issue in July 2005, MGI is moving through its second base, an 11 week base formed over the 50 day EMA (26.60). Excellent 4 to 0 accumulation in the base (4 up price weeks on rising volume to 0 down price weeks on rising volume) shows all buying, setting up the breakout move to a new all-time high. Strong money flow is surging and relative strength is ready to deliver the breakout move as well. Volume jumped Wednesday as MGI started the move. Looking to enter on a further gain on solid volume. Strong fundamentals to go with the technical pattern. Love new, strong issues.
Volume: 585.3K Avg Volume: 396.471K
BUY POINT: $28.25 Volume=550K Target=$33.75 Stop=$27.22
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/ci/mgi.html
Play Date: 02/22/2006
MSCC (Microsemi--$30.68; +0.4; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/m/mscc.html
After Hours: $30.66
STATUS: Ascending base. Once again this sector of semiconductors held up best as the chip sector sold back. MSCC tested its 50 day EMA (29.29) last week as part of its 12 week base. Excellent 4 to 1 accumulation in the pattern shows plenty of buying, setting up the breakout move. Very solid and great fundamentals to go with the pattern. A breakout takes MSCC to a new all-time high.
Volume: 658.727K Avg Volume: 838.636K
BUY POINT: $31.35 Volume=1.3M Target=$37.65 Stop=$30.04
POSITION: QMS FF - June $30c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/mscc.html
Downside:
Play Date: 02/22/2006
PDS (Precision Drilling--$31.81; +0.21; optionable): Oil and gas service company
http://biz.yahoo.com/p/p/pds.html
STATUS: Test 50 day EMA. PD double topped in January, the second top on low volume. It broke down this month, falling through the 50 day EMA (32.18) and then spent he past week building back up to that level. Tuesday it tapped the 50 day on the high and fell back. Wednesday it gained some ground but could not punch through. Looking for PDS to fail here and want to see some volume as it does. A move to the target lands us a 49%ish gain.
Volume: 981.8K Avg Volume: 547.169K
BUY POINT: $31.48 Volume=550K Target=$30 Stop=$31.75
POSITION: PDS PF - Apr. $30p (-33 delta)
http://www.investmenthouse.com/ci/pds.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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