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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS:
New Plays:
New Post-Splits:
Play Date: 01/18/2007
THQI (THQ, Inc.--$33.32; -0.12; optionable): Multimedia, games software
http://biz.yahoo.com/p/t/thqi.html
EARNINGS: 2-2-07
STATUS: Double bottom w/handle. A short but sweet 7 week pattern has formed over the 50 day EMA (32.04), consolidating the August through November rally. This is something we are seeing from many of the strong stocks, i.e. a small base after that end of 2006 rally that is setting up the next move. Excellent low volume pullback this week to the 10 day EMA, forming the handle. Set up well and just needs to show us that break higher.
Volume: 730.441K Avg Volume: 1.237M
BUY POINT: $34.21 Volume=1.9M Target=$40.95 Stop=$32.78
POSITION: QHI FG - June $35c (54 delta) &/or Stock
http://www.investmenthouse.com/cs/thqi.html
Play Date: 01/18/2007
STLD (Steel Dynamics--$32.76; -0.37; optionable): Steel & iron
http://biz.yahoo.com/p/s/stld.html
EARNINGS: 1-24-07
STATUS: Double bottom w/handle. Kind of a double bottom in a double bottom. A short 7 week pattern over the 50 day EMA (13.85) has formed after the October to December rally formed the right leg of a larger 7 month Double bottom w/handle base. Again, something we have seen in many leaders of late. Strong money flow is leading higher. Just looking for volume to surge higher as STLD makes the break higher.
Volume: 1.225M Avg Volume: 1.943M
BUY POINT: $33.78 Volume=2.9M Target=$40.55 Stop=$31.74
POSITION: RQL EZ - May $32.50c (59 delta) &/or Stock
http://www.investmenthouse.com/cs/stld.html
PRE-ANNOUNCEMENT PLAYS
We consider many stocks for pre-announcement plays every week. We get information regarding upcoming announcements and other data that leads us to conclude a split announcement is coming. Even then, however, we have to be discriminating. We have to see a strong technical pattern as well, and thus we reject many potential candidates based on a weak technical position. Some we consider have announced, but have not fared well given their technical patterns were weak to begin with.
The key today is to find stocks in strong patterns or that are ready to rebound off support. A split announcement will amplify the move higher in these cases as we enjoy moves from strong leaders in position to run higher. We won't chase a stock in a poor technical position even if we know it is going to split; it simply won't do us any good, i.e. it won't make us any money to the upside. We could list all stocks we think are going to split, but again, that won't make us any money unless we are in an office pool as to what stocks will or won't announce a stock split.
Current Pre-Announcement Plays:
This is a list of stocks we are looking to announce splits. We are not in all of the potential splits plays but are letting them set up for the next move. In each report we look at the candidates that are in the best patterns ahead of their potential announcements. This focus on leaders in good patterns allows us to make good money even if companies do not announce the split. The key with splits is the pattern and of course the strong earnings growth that put it in the pattern in the first place.
ATI: Wildcard that could announce 1-24-07
ATVI: Tentatively set 2-5-07.
BCR: Forecast mid-January
BDX: Forecast 1-25-07
BIDU: Forecast first week of February.
BPO: Forecast early February
CLE: Tentatively forecast 3-15-07
CTSH: Forecast 2-9-07
FFIV: Potential split announcement 1-24-07
GILD: Tentatively forecast 1-31-07
GPRO: Tentatively forecast 2-13-07
JCI: Forecast 1-25-07
JCP: Forecast 1-19-07
RNT: Tentatively forecast third week of January
TRMB: Forecast 1-25-07
UNP: Tentatively set for 1-25-07. Nice break higher on strong volume.
VIVO: Forecast mid-February
WCN: Forecast third week of January
NEW PRE-ANNOUNCEMENT PLAYS:
Play Date: 01/18/2007
CLE (Claires Stores--$34.00; -0.51; optionable): Apparel stores
http://biz.yahoo.com/p/c/cle.html
STATUS: Cup w/handle. Very low volume the past 6 weeks as CLE forms the handle to its 10 month base that is setting it up for a new high. Strong money flow is leading higher even as CLE eases back. Excellent set up to the break to a new all-time high.
Volume: 934.9K Avg Volume: 1.788M
BUY POINT: $34.88 Volume=2.7M Target=$40.95 Stop=$33.65
POSITION: CLE EG - May $35c (56 delta) &/or Stock
http://www.investmenthouse.com/cs/cle.html
Play Date: 01/18/2007
GENZ (Genzyme--$66.86; -0.57; optionable): Biotechnology
http://biz.yahoo.com/p/g/genz.html
BACKGROUND: Last announced a 2:1 split on 4-25-01 at $101.
STATUS: Double bottom. GENZ has faded the past week back to the 10 day EMA (66.41), forming something of a small handle to its 14 month double bottom. Money flow is surging higher ahead of price and after this low volume pullback to near support GENZ is ready to make the break. Solid.
Volume: 1.77M Avg Volume: 2.148M
BUY POINT: $68.22 Volume=3.2M Target=$78.45 Stop=$66.21
POSITION: GZQ GU - July $67.50c (57 delta) &/or Stock
http://www.investmenthouse.com/cs/genz.html
Play Date: 01/18/2007
KSS (Kohls--$69.83; +1.85; optionable): Department stores
http://biz.yahoo.com/p/k/kss.html
EARNINGS: 3-1-07
STATUS: Test 50 day EMA. After a nice rally from July through October KSS has slipped into the current 10 week consolidation, coming back to the 50 day EMA (70.27). Lower volume most of the way and then surging Thursday as KSS started higher. This recent pullback is the handle to a very large 5 year cup with handle. Looking for continued solid volume as KSS continues breaking higher.
Volume: 4.883M Avg Volume: 3.474M
BUY POINT: $70.35 Volume=3.5M Target=$80.95 Stop=$67.78
POSITION: KSS GN - July $70c (59 delta) &/or Stock
http://www.investmenthouse.com/cs/kss.html
CONTINUING PRE-ANNOUNCEMENT PLAYS:
Play Date: 01/17/2007
GILD (Gilead Sciences--$66.16; -0.23; optionable): Biotechnology
http://biz.yahoo.com/p/g/gild.html
STATUS: Double bottom. Gapped higher but could not hold it, closing at the 50 day SMA after testing lower. Still ready to make the move. To recap: GILD has made a short double bottom off the 200 day SMA (62.60) the past month, and is now working laterally this week, using the 50 day EMA (65.88) as support on the lows. Working on a handle, the point where it shakes out some sellers and can then break higher. Volume was up Wednesday as it tapped the 50 day on the low and rebounded. Looking for more volume as it breaks higher.
Volume: 3.659M Avg Volume: 3.622M
BUY POINT: $66.72 Volume=5.4M Target=$76.75 Stop=$65.11
POSITION: GDQ EM - May $65c (63 delta) &/or Stock
http://www.investmenthouse.com/cs/gild.html
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 recommendation
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