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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS:
Good movers: AKAM; CLE; CXW; DO; EAT; FMCN; ICE; MA; TALX
New Plays:
New Pre-Split plays:
Play Date: 02/08/2007
JEC (Jacobs Engineering--$92.01; +0.13; optionable): Engineering and technical services. Splits 2:1 on 3-16-07
http://biz.yahoo.com/p/j/jec.html
EARNINGS: 1-23-07
STATUS: Test breakout. Broke higher from a 9 month base in the third week of January, surging higher through the start of this month. It has come back to test that move the past week, making its first test of the 10 day EMA (91.07) since the breakout. Very strong, nice test. Looking to ride the next rebound up to 100 and see where it goes from there. Roughly a 70% gain to the target with the option play.
Volume: 333.3K Avg Volume: 402.268K
BUY POINT: $92.42 Volume=500K Target=$99.95 Stop=$90.86
POSITION: JEC DR - Apr. $90c (66 delta)
http://www.investmenthouse.com/cs/jec.html
New Post-Split plays:
Play Date: 02/08/2007
DAKT (Daktronics--$37.39; +0.06; optionable): Industrial electrical equipment
http://biz.yahoo.com/p/d/dakt.html
EARNINGS: 2-14-07
STATUS: Test 50 day EMA. DAKT surged off the 50 day EMA (34.61) to start the week and spent Thursday taking a break on lower volume. A very strong stock That is consolidating in a short 8 week cup base and is likely to form a handle here over the next few sessions and then break higher. It is strong, however, and can surge on any given day. Just want to be ready when it takes back off.
Volume: 408.113K Avg Volume: 685.55K
BUY POINT: $38.05 Volume=1M Target=$44.95 Stop=$35.88
POSITION: QKC DG - Apr. $35c (65 delta) or QKC GH - July $40c (49 delta) &/or Stock
http://www.investmenthouse.com/cs/dakt.html
Play Date: 02/08/2007
LOGI (Logitech Intl.--$28.97; -0.19; optionable): Interface products for PC's (fancy way of saying webcams, mice, etc.
http://biz.yahoo.com/p/l/logi.html
EARNINGS: Announced 1-17-07
STATUS: Cup w/handle. Kind of a stretch to call it this pattern, but that is basically it as it eases back this week to test and hold the 18 day EMA (28.73), forming the handle to its 10 week base. Using the 50 day EMA (28.25) as support in the base as it sets up for another new high. This short pattern is the consolidation of the breakout and October through November run from a larger 9.5 month cup with handle base. Money flow remains strong and after this test we are looking for LOGI to make the breakout move.
Volume: 540.663K Avg Volume: 717.266K
BUY POINT: $29.49 Volume=1.1M Target=$35.42 Stop=$27.95
POSITION: LQG FF - June $30c (54 delta) &/or Stock
http://www.investmenthouse.com/cs/logi.html
Play Date: 02/08/2007
SSI (Spectrasite--$22.58; +0.41; optionable): Apparel stores
http://biz.yahoo.com/p/s/ssi.html
EARNINGS: Mid-February. Company has not confirmed
STATUS: Ascending base. Gapped lower Thursday on the same store sales number but then rebounded on strong volume, clearing the February highs. Looks ready to make the break from its 12 week base. Strong upside volume on the upside moves. Lots of momentum and looking for it to clear the January high to give us a buy point.
Volume: 701.4K Avg Volume: 403.753K
BUY POINT: $23.05 Volume=410K Target=$26.75 Stop=$21.55
POSITION: SSI GX - July $22.50c (57 delta, no OI) &/or Stock
http://www.investmenthouse.com/cs/ssi.html
Play Date: 02/08/2007
ZUMZ (Zumiez--$36.49; +1.04; optionable): Apparel stores
http://biz.yahoo.com/p/z/zumz.html
EARNINGS: 3-14-07
STATUS: Ascending base. Strong volume Thursday as ZUMZ broke higher, clearing the January peak as it made the move. Solid same store sales helped drive it higher. This puts ZUMZ in the clear for some more upside. Excellent fundamentals growth rates to go along with its technical pattern.
Volume: 1.135M Avg Volume: 548.11K
BUY POINT: $36.72 Volume=800K Target=$42.95 Stop=$34.36
POSITION: QUY EG - May $35c (63 delta) &/or Stock
http://www.investmenthouse.com/cs/zumz.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: Excellent test of the 10 day EMA after the break higher. Researching next date.
BA: Researching date.
BIDU: Trying to bounce back up through the 50 day EMA.
BNI: Researching date. Still testing the breakout.
BPO: Forecast before the open Friday
CEPH: Forecast 2-12-07
CLB: Forecast 2-15-07
CLE: Tentatively forecast 3-15-07
CTSH: Forecast 2-9-07. Looking for the split announcement in addition to that nice move.
GENZ: Tentatively set for 2-14-07
GES: Forecast 2-14-07
GPRO: Tentatively forecast 2-13-07. Held the 200 day SMA and is now in position to try and bounce
JCI: Another stock that announced a dividend versus a split and it is running higher again after a quick test of the 10 day EMA
JCP: Forecast 2-22-07
KSS: Forecast 3-1-07. Sweet run underway
MER: Researching date
POT: Researching date
RIMM: Solid surge Monday to get the play underway.
RL: Forecast 2-7-07. No split announcement but making a nice test of the break higher
SRCL: Forecast 2-7-07. No split and it held steady on earnings.
VIVO: Forecast mid-February
WCN: Forecast 2-12-07
XTO: Forecast mid-February
NEW PRE-ANNOUNCEMENT PLAYS:
Play Date: 02/08/2007
CHTT (Chattem--$57.47; -0.03; optionable): Drugs. Forecast 2-12-07 before the open
BACKGROUND: Last announced a 2 for 1 split on 10-30-02 at $44.60.
http://biz.yahoo.com/p/c/chtt.html
EARNINGS: 2-12-07 before the open
STATUS: Test breakout. CHTT is going flat line ahead of earnings, holding a tight range over the 18 day EMA (56.90) as it tests a strong early 2007 break higher. Setting up for a new high on the next break and that is when we move into positions.
Volume: 177.281K Avg Volume: 319.473K
BUY POINT: $57.89 Volume=475K Target=$68.95 Stop=$56.22
POSITION: HQT FK - June $55c (64 delta) &/or Stock
http://www.investmenthouse.com/cs/chtt.html
CONTINUING PRE-ANNOUNCEMENT PLAYS:
Play Date: 02/03/2007
BA (Boeing--$89.52; -0.83; optionable): Airplanes, etc.
BACKGROUND: No splits in BA's history.
http://biz.yahoo.com/p/b/ba.html
STATUS: Test breakout. Gapped lower on the session but held the 10 day EMA on the close after testing near the 50 day MA intraday. Looks as if it is just shaking out the last nervous sellers before jumping higher. To recap: BA announce strong results last Wednesday that gapped it higher off a test of the 90 day MA. It rallied to the end of the week and is now testing, working laterally. Now you could argue that BA is overextended but it tends to make these kinds of moves, and you use these little pullbacks after the initial surge to take or add to positions. It is printing money as it gains more and more orders at Airbus' expense. Don't know about you, but I have a hard time flying in a plane called a bus.
Volume: 5.156M Avg Volume: 4.293M
BUY POINT: New: $90.55 if the volume is surging (orig. $90.32) Volume=5.8M Target=$99.95 Stop=$88.88
POSITION: BA ER - May $90c (59 delta) &/or Stock
http://www.investmenthouse.com/cs/ba.html
Play Date: 01/25/2007
CEPH (Cephalon--$73.47; +0.14; optionable): Drugs. Potential split announcement 2-12-07 before the open
BACKGROUND: No splits in CEPH's history
http://biz.yahoo.com/p/c/ceph.html
STATUS: Cup w/handle. A very tight, low volume test of the 18 day EMA has set up a great handle for the breakout from its 12 week base. Nice hold over the 90 day MA (70.51) to form the body of the base and just being patient waiting for the breakout move to enter positions.
Volume: 1.194M Avg Volume: 1.409M
BUY POINT: $75.45 Volume=2.3M Target=$88.75 Stop=$72.22
POSITION: CQE EO - May $75c (54 delta) &/or Stock
http://www.investmenthouse.com/cs/ceph.html
Play Date: 01/27/2007
GES (Guess? Inc.--$73.37; +0.21; optionable): Apparel
http://biz.yahoo.com/p/g/ges.html
EARNINGS: 2-14-07
STATUS: Test 18 day EMA. Working laterally on below average volume above the 18 day EMA (71.89) as GES tests the January breakout from a shallow 8 week cup. Volume has dried up as it moves laterally in a very narrow range. Just waiting for the break higher on rising trade.
Volume: 541.8K Avg Volume: 776.743K
BUY POINT: $72.48 Volume=1M Target=$83.45 Stop=$70.38
POSITION: GES FO - June $75c (51 delta) &/or Stock
http://www.investmenthouse.com/cs/ges.html
Play Date: 01/30/2007
XTO (XTO Energy--$50.68; +0.50; optionable): Independent oil and gas. Forecast mid-February
BACKGROUND: Last announced a 4:3 split 2-16-05 at $39.10. Before that a 5:4 split on 2-17-04 at 28.50. Before that a 4:3 split on 2-18-03 at 24.20.
http://biz.yahoo.com/p/x/xto.html
STATUS: Double bottom. Continues working laterally as the 10 day EMA (49.94) rises to meet it and send it higher. Just need to see volume pick up as it continues higher. To recap: XTO broke higher last Tuesday on stronger, above average volume, heading for a new all-time high. It broke out from a 10 month base in late November, but the move failed. It fell to the 200 day SMA where it double bottomed and then surged. On a continued move higher we are looking to start the play and then again on a test. Excellent action; one of the energy stocks that did not sell off nearly as aggressively as others.
Volume: 3.061M Avg Volume: 3.913M
BUY POINT: 51.22 (orig. $50.48) Volume=4.5M Target=$57.95 Stop=$48.33
POSITION: XTO EJ - May $50c (56 delta) &/or Stock
http://www.investmenthouse.com/cs/xto.html
CONTINUING PRE-SPLIT PLAYS:
Play Date: 02/03/2007
APH (Amphenol Corp.--$68.21; -0.01; optionable): Electrical, fiber optic connectors. Splits 2:1 on 4-2-07
http://biz.yahoo.com/p/a/aph.html
STATUS: Reverse head and shoulders. Low volume continues as APH sets up the breakout. Need to see more volume as it continues higher and shows the breakout move. To recap: After moving higher early in the week APH slowed as the week closed out, moving laterally but not giving up its run higher that formed the right side of its 9 week base. Looks as if it is going to take a few days to test and then be set to make the breakout to a new all-time high.
Volume: 394K Avg Volume: 699.864K
BUY POINT: $68.65 Volume=1.2M Target=$78.95 Stop=$66.57
POSITION: APH DM - Apr. $65c (68 delta) or APH GN - July $70c (52 delta) &/or Stock
http://www.investmenthouse.com/cs/aph.html
Play Date: 02/06/2007
ZOLL (Zoll Medical--$66.26; +0.60; optionable): Medical appliances
http://biz.yahoo.com/p/z/zoll.html
STATUS: Test breakout. Hugging the 10 day EMA on low volume the past two sessions as ZOLL sets up to break higher once more. It has filled the gap from the mid-January gap higher. It can fly when it gets moving and it looks about ready to do just that.
Volume: 260.779K Avg Volume: 298.887K
BUY POINT: New: $66.95 (orig. $65.89) Volume=400K Target=$75.95 Stop=$63.38
POSITION: ZQQ FM - June $65c (57 delta, low 60) &/or Stock
http://www.investmenthouse.com/cs/zoll.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 02/07/2007
RESP (Respironics--$42.53; +0.36; optionable): Medical appliances
http://biz.yahoo.com/p/r/resp.html
EARNINGS: 1-25-07
STATUS: Breakout test. Starting higher off the 10 day EMA, showing some solid volume again Thursday. Still a buy as it continues higher. To recap: RESP blasted out of a 16 month base on its earnings news, galloping 5 points on the breakout move. It has spent the past two weeks testing coming back to the 10 day EMA (41.67) on lower volume on some near term profit taking. Wednesday volume kicked back up well above average as RESP starts the next move in the breakout. Ready to move in as it continues higher.
Volume: 601.241K Avg Volume: 350.894K
BUY POINT: $42.48 Volume=400K Target=$48.85 Stop=$41.11
POSITION: RBQ GH - July $40c (67 delta, 88 OI). &/or Stock
http://www.investmenthouse.com/cs/resp.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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