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stock recommendation, stock pick
Begin part 3 of 3
THE PLAYS
Good movers: DJO; GRMN; ICUI; IFO; LUK; NAK; SPSX; TWGP
Wednesday night play results:
BBW: Range continues to tighten over the 50 day EMA on very low volume. Looks to be just about ready.
LMNX: Volume backed off as LMNX went nowhere.
RNT: Continues the lateral move over the 18 day EMA as it makes the test.
CTXS: Still holding the 50 day EMA on low volume.
New Plays:
Upside:
Play Date: 05/25/2006
HLTH (Webmd Corp.--$11.89; +0.53; optionable): Healthcare information services
http://biz.yahoo.com/p/h/hlth.html
STATUS: Test 50 day EMA. HLTH broke out from a 6.5 month cup with handle base in mid-April and then rallied up the 18 day EMA (11.64). It peaked out in mid-May and then flopped to the 50 day EMA (11.22) to start this week. Not a breakdown, just caught in that Monday selling. It held that key level, moved laterally, and then Thursday jumped higher on rising volume. After this shakeout to the 50 day EMA we are looking for a strong volume breakout over 12 to start the play. Strong money flow moving higher even as the stock tested, and relative strength is trying the breakout ahead of the stock price, a bullish indication.
Volume: 2.386M Avg Volume: 2.402M
BUY POINT: $12.21 Volume=3.5M Target=$14.65 Stop=$11.36
POSITION: HUT JB - Oct. $10c (72 delta) &/or Stock
http://www.investmenthouse.com/cd/hlth.html
Play Date: 05/25/2006
MANT (Mantech Intl.--$34.97; +0.28; optionable): Software and services for national security programs
http://biz.yahoo.com/p/m/mant.html
After Hours: $34.91
STATUS: Breakout test. MANT gapped sharply higher out of a 9 month cup with handle base in early May. That was about the extent of the breakout move however, having burned all its gas on the first 6 point move. It has come back the past two weeks to test, fading to just above the 50 day EMA (33.34) on mostly lower, below average volume. Moved laterally the past week at that level and showing some better volume Wednesday and Thursday as it tightens up its range. Money flow remains strong, moving higher ahead of price. Relative strength broke out and held up even on the test as MANT used the market selling to test and set up the next run higher. Going to pick it up as it starts the run anew after this first test of the massive breakout. Solid leader with great fundamentals to go with the great technical shape.
Volume: 186.533K Avg Volume: 176.714K
BUY POINT: $35.88 Volume=265K Target=$43.00 Stop=$33.57
POSITION: UUN KG - Nov. $35c (54 delta) &/or Stock
http://www.investmenthouse.com/cd/mant.html
Play Date: 05/25/2006
RMD (Resmed--$45.18; +0.52; optionable): Medical appliances
http://biz.yahoo.com/p/r/rmd.html
STATUS: Test breakout. We let RMD make its test and now it looks ready to move higher again. It broke out from a 5 month ascending triangle in early May with a big gap higher. It has come back in a rather volatile fashion the past three weeks, but managed to hold the 50 day EMA (44.14) Wednesday after undercutting that support intraday. Nice volume on the test lower and reversal that day, holding the breakout move. Looking for volume to jump up again as RMD moves through the 10 day EMA (45.58) on strong volume.
Volume: 318.4K Avg Volume: 443.667K
BUY POINT: $45.75 Volume=500K Target=$52.95 Stop=$43.94
POSITION: RMD JI - Oct. $45c (59 delta) &/or Stock
http://www.investmenthouse.com/cd/rmd.html
SUBSCRIBER PORTFOLIO: These are stocks subscribers suggest by vote that we put in a portfolio to track and move into the stocks if they perform well. If you have any suggestions for additions or deletions, email us. We don't cover them all each report, just when something interesting is developing.
AAPL, BRCM, CELG, COH, FFIV, GME, MRVL, NVDA, PSYS, UNH
Will have the new portfolio this weekend. Had a lot more late entries come in so we are still sorting through them, taking a good look at each. As soon as we get that done we will post the new list. The responses are varied ranging, for example GM, CCJ, BNI, SNDK, CVH, DIS, PALM, ET, SNDK, etc. Any last minute choices will be considered, though I hate to say that given all the candidates sent in. Replacing: BRCM (this one is on the bubble), COH, FFIV, PSYS, UNH
Good Investing!
Jon L. Johnson and The Daily 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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stock recommendation
stock pick
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