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stock split, stock research
Begin Part 3 of 3
WLP ($115.07; -0.21): Working on a date. In a large cup dating back to late December 2000 (left side high: 120), but it has fallen out of its handle consolidation, catching its 50 day MVA (113.88) but not able to climb back over the short-term (18 day at 116.34) as volume was weak on the bounce attempt. We will see if it can develop.
Plays:
JCI (Johnson Controls--$80.40; -0.58; optionable): Auto parts. Forecast to announce a split on 1-18-02 in conjunction with earnings. At this time, the company cannot confirm this date.
http://biz.yahoo.com/p/j/jci.html
BACKGROUND: Based upon our research it does not appear that JCI has ever split its stock. The annual shareholder meeting was 0n 1-24-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Back in the range of its pre-September 11 range, finally showing a bit of strength as it moves up from support at 77.50 this week (a small double bottom). It is holding up well after its strong move over the short -term MVA's (18 day at 79.51) Wednesday, today dipping back slightly, holding support on much lower volume (415,900; average 448,300). Looking for a move over the high with more strong volume. Target: 90.
BUY POINT: 82.82 on volume of 700,000. Stop: 77.25.
POSITION: Stock and/or January $75 calls to buy (JCI AO - low open interest).
TRDO (Intrado--$29.80; -0.30; optionable): Business software. Working on a date.
http://biz.yahoo.com/p/t/trdo.html
BACKGROUND: Based upon our research it does not appear that TRDO has ever split its stock. The annual shareholder meeting was on 6-26-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: Very erratic. TRDO made a second strong bounce from the 25 range, moving back over its 50 day (27.69) last Friday and then continuing up. It stalled at it approached the high on the last move (31.20), but unlike the last drop which took it back to 25 quickly, TRDO has only given a small bit of ground on light volume (240,700 today; average 336,600). Today it tapped its 10 day MVA (28.84) before coming back up for a doji. We will see if it can hold the 10 day, perhaps developing a handle to its cup (left side high from October at 33.79.
BUY POINT: 31.33 on above average volume. Stop: 29.14 (7%).
POSITION: Stock and/or February $25 calls to buy (UNC BE).
PAST SPLITS REMAINING PLAYS:
LUV ($18.39; -0.69): LUV was trying to hold in a handle to its cup pattern, but it caved back today. Volume finally kicked in, but on the sell side. We will see if it can hold the 50 and 200 day MVA's (close at 18 and 17.75). Perhaps if it holds we can look for a strong bounce.
PRE-SPLITS REMAINING PLAYS:
Watchlist:
HRH ($53.79; -2.81): Splits 2:1 effective 1-2-02. Could not hold the 50 day MVA, dropping back hard today. Dropping.
FLO ($39.56; -0.34): Splits 3:2 on 1-3-02. Trying to hold on, clinging just under the 50 day MVA (39.98). Could be in for more of a drop.
MOVI ($24.26; -0.94): Splits 3:2 effective 1-4-02. Made it back over the 50 day (23.95), but it was not a strong move, and today it pulled back to that level. We will see if it sets up again.
SASR ($45.29; -0.02): Splits 3:2 on 12-21-01. Going into tomorrow's split, SASR continues to battle its upper channel trendline (at 45.75). It gave us an excellent pre-split move, but looks like it will drop back post-split. It is currently resting on the 10 day MVA (44.62), with the 18 day at 43.73.
Plays:
KIM (Kimco Realty--$49.17; -0.18): Splits 3:2 effective 12-24-01.
http://biz.yahoo.com/p/k/kim.html
STATUS: Took a big gap down last week after KIM announced the issuance of additional shares. It had recently broken from a large ascending wedge (pattern highs at 50), and was making a test of the move when the announcement came. KIM continues to hold the 50 day MVA (49.29), but a bounce has been hindered by the resistance of the short-term MVA's (49.68). One session left before the split, and things do not look good for a move. We will see if it holds on and sets up a play post-split.
CONTINUING CANDIDATES REMAINING PLAYS: When splits are not announced, we will keep the best split prospects on the report rather than continue to carry all of them in case there is a an unexpected announcement. We will continue to monitor the stocks that are trimmed and add them again when we ascertain a revised split announcement date.
Watchlist:
APPB ($35.33; -0.85): Has made a nice move, but we were looking for a pullback, and got it today. Not a bad move, coming on low volume selling (245,000; average 437,700), and still holding over the 18 day MVA (34.88). We will see if it can catch that support and set up for another run.
JEC ($67.05; -1.83): Made a nice recovery, and is now trying to hold the 50 day MVA (67.35, with the short-terms). Volume was light on the selling (156,000; average 262,100), so we will see if it can hold on and form a playable pattern.
RMD ($53.58; -1.18): Dropped back through the buy point for the put play, moving on the strong volume we were looking for (266,400; average 229,000). Still riding toward the target of the 200 day (51.45), and it is a bit tight for new positions from here. Looking for continued strong selling to push it down, with the recent low (last week) at 53.
STJ ($75.67; -0.07): Struggling to make headway, but after visiting the 50 day MVA (72.44) recently the stock is now holding the short-term MVA's (18 day at 74.22). STJ has been trying to hang on after dropping back on a downgrade (following a suspect breakout from a small double bottom with handle), but it still needs more time before setting up a strong move.
TJX ($38.34; +0.54): Very erratic, today gapping up on an upgrade, but only managing a doji after reaching up to 39.16. Volume was up, but the pattern suggests a drop back, but the short-term MVA's have presented recent support (18 day at 37.54). We will see if it can hold and set something up.
Plays:
BBY ($72.85; -0.61): Did not get the announcement with earnings, but it made a great move on the numbers!
http://biz.yahoo.com/p/b/bby.html
BACKGROUND: Last announced a 2:1 split on 2-22-99 with a board meeting. The stock price was $95. Prior to that announced a 2:1 split on 4-24-98 with a board meeting. The stock price was $71. The annual shareholder meeting was 6-26-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: With the positive earnings announcement, BBY made a nice bounce from the 65 level. After a nice run, however, it could not take out its recent high, reaching up to 74.92 today but pulling back to close with a 'tombstone' doji on lighter volume (3.18 million; average 3.83 million). The pattern indicates a drop back, and we will look for it to hold at 70, where is the July high and short-term MVA's. If it cannot hold there and mount a move, it could lead to a dangerous double top pattern, but with BBY's numbers we will look for continued strength after a rest.
BUY POINT: After holding 70 on a pullback on continued light volume, 75.04 on volume of 4 million. Stop: 69.79 (7%).
POSITION: Stock and/or March $70 calls to buy (BBY CN).
BBBY (Bed, Bath & Beyond--$32.52; +0.01; optionable): No announcement with earnings.
http://biz.yahoo.com/p/b/bbby.html
BACKGROUND: Last announced a 2:1 split on 7-13-00 with a board meeting. The stock price of $39. The shareholder meeting was on 6-28-01 at which time authorized shares were increased. The company has sufficient shares for a 2:1 split.
STATUS: Earnings appeared to be solid after hours, with the price bid up, but we will see if the morning brings strength. BBBY is trying to fight back after its abrupt drop back from a breakout from a 'flying w' with handle, but is stymied for the moment at its short-term MVA's (10 day at 32.51), and it turned back twice last week from one of its up trendlines, currently at 33.85. Looking for a move over that level with a surge. The breakout high was 35.70.
BUY POINT: A move over 34 on increased volume (4.32 million; today up to 4.24 million). Stop: 32.55 (7%).
POSITION: Stock and/or February $30 calls to buy (BHQ BF).
EASI (Engineered Support--$31.70; -0.34; optionable): Aerospace/Defense.
http://biz.yahoo.com/p/e/easi.html
BACKGROUND: EASI last announced a 5:4 split on 2-1-2001 with a board meeting at a price of $28.50. Before that it announced on 6-12-98 at a price of $26.50. The company has sufficient shares for a 3:2 split.
STATUS: EASI retreated as ordered, giving a nice put play and bouncing slightly from the target of 30. It was a weak bounce back up, today stalling with a loose doji on continued low volume (333,700; average 503,800). If we get a hard drop back through Wednesday's low of 29.60, we could get another play, although more aggressive as EASI has made quite a drop already (this one started from 43; the November high was 53).
BUY POINT: Aggressive: A move back through 29.60 on continued strong selling volume.
POSITION: January $35 puts to buy (UFE MG).
FLIR (Flir Systems--$38.84; -3.36; optionable): Scientific & Technical Instruments.
http://biz.yahoo.com/p/f/flir.html
STATUS: Got killed the last two sessions on the news of an offering of additional shares. It closed on the 50 day Wednesday but continued down hard today, although on much lower volume of 403,000 (average 378,000). There is a bit of support here from prior price levels, but it could fall all the way to 34-35, its recent low and August high. For put positions we will look for a failed relief bounce toward the 50 day (42.10), and look to play a drop back on increased volume.
BUY POINT: After a bounce fails at 40-41, a drop back through 39 on increased volume.
POSITION: January $50 puts to buy (FFQ MJ).
GTK (Gtech Holdings--$44.62; -1.03; optionable): Software.
http://biz.yahoo.com/p/g/gtk.html
STATUS: GTK has been a steady performer, and after taking a hit with earnings it made a solid bounce from the 50 day MVA (42.50) on great volume. It was trying to hold in a lateral consolidation over the short-term MVA's (18 day at 44.71, but dipped back to close just under that level today, moving on higher volume of 581,100 (average 427,600). We will see if it can hold and rest a bit, holding support here instead of dipping to the 50 day, setting up the next move. Target: 50.
BUY POINT: After holding over 44, a move back over 46 on above average volume. Stop: 42.89.
POSITION: Stock and/or March $40 calls to buy (GTK CH - low open interest).
SLM (Usa Education--$82.34; +0.35; optionable): Credit services.
http://biz.yahoo.com/p/s/slm.html
STATUS: Sold through the 50 day (83.98) last Friday, but caught support at its up trendline (connecting lows from August 2000). Today it reached all the way back up to the 50 day, but pulled back to close, moving on reduced volume of 656,400 (average 663,600). Still looking weak after the test and not being able to hold the move, and we will look for stronger selling to take over and drive it down again. Targeting the 200 day MVA, at 77.22.
BUY POINT: A move below 81.50 on increased volume.
POSITION: January $90 puts to buy (SLM MR).
POST SPLITS REMAINING PLAYS:
Watchlist:
CACI ($39.90; -1.00): Split 2:1 effective 12-7-01. Again testing the 18 day MVA (38.76), dipping back on low volume today (364,500; average 390,000). Forming something of a pennant here after its nice post-split move, and could be ready to make a move again soon. We will look for CACI to take out its high (43.20), and on a move to 43.32 on volume of better than 400,000, stock and/or March $40 calls to buy (KFQ CH).
CBH ($38.95; -0.05): Split 2:1 effective 12-19-01. Made a last move going into the split, but has lost steam and could be forming a double top (a dangerous pattern of late for many stocks). It has made four bounces from the 18 day MVA (38.76), so we will look for it to perhaps dip back to test the 50 day (34.74), protecting any remaining positions.
CHBS ($28.80; +0.93): Split 3:2 effective 12-13-01. Looking for support to continue to hold and for CHBS to form more of a handle here (in its cup dating back to May). It held the 18 day (27.63) on a drop Wednesday, bouncing back a bit more today. The breakout buy point is 29.97 on volume of 600,000, with stock and/or January $26.63 calls to buy (ULH AW).
LYTS ($17.35; +0.22): Split 3:2 effective 12-7-01. Very erratic, and it gapped up and reversed today. That could signal another drop back, with the recent support of the 18 day at 16.77. Dropping.
WFMI ($41.67; -0.08): Split 2:1 on June 5. Gave us some good moves, but now is stymied below its short-term MVA's (10 day at 31.86). Cautious of a drop (50 day at 28.16), and dropping.
Plays:
FMBI (First Midwest Bancorp--$28.68; -0.27; no options): Split 5:4 effective 12-17-01.
http://biz.yahoo.com/p/f/fmbi.html
STATUS: Made a nice breakout move on the split (somewhat unusual, but we liked the pattern, and good pattern we can ride through a split with caution). It is now erratice, showing wide intraday ranges (27.88 to 28.99 today), closing today with a doji on big volume (170,000; average 93,800). We will see if it can settle down a bit over the 10 day MVA (28.36), and then look for another move.
PLAY: Perhaps after settling into a more stable consolidation over the 10 day, 29.36 on continued strong volume, with stock. Stop: 27.30
AMHC (American Healthways--$29.00; -7.25; no options): Health Services. Split 3:2 effective 11-26-01.
http://biz.yahoo.com/p/a/amhc.html
STATUS: Earnings hit hard, breaking the news in the midst of the session, and the stock steadily bled back. Obviously did not make the post-split breakout we were looking for, and we are dropping.
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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stock split
stock research
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