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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS:
Good movers: ATHR; FALC; FFIV; ICON; VCLK
New Plays:
New Post Split Plays:
Play Date: 02/22/2007
ADBE (Adobe Systems--$40.81; -0.14; optionable): Software
http://biz.yahoo.com/p/a/adbe.html
EARNINGS: 3-20-07
STATUS: Double bottom w/handle. A neat little 9 week base is forming as ADBE starts working laterally to form a handle and set up the next breakout move. This base ahs formed just below ADBE's all-time high, setting up and gathering its strength for the break above 43. May take a few more sessions to form the handle and make the breakout move, but showing solid strength.
Volume: 4.431M Avg Volume: 5.276M
BUY POINT: $41.32 Volume=7.9M Target=$47.95 Stop=$39.64
POSITION: AEQ GH - July $40c (63 delta) &/or Stock
http://www.investmenthouse.com/cs/adbe.html
Play Date: 02/22/2007
ASCA (Ameristar Casinos--$34.14; +1.28; optionable): Resorts & casinos
http://biz.yahoo.com/p/a/asca.html
EARNINGS: 3-20-07
STATUS: Reverse head and shoulders breakout. ASCA gapped out of a 14 month double bottom in November and surged to 33. It then formed the current 11 week base to get some rest and set up for the next move, using the 50 day EMA (30.74) as support to set back up. Ready to spin the wheel for another new all-time high.
Volume: 558.917K Avg Volume: 316.782K
BUY POINT: $34.41 Volume=325K Target=$40.95 Stop=$32.38
POSITION: UWT FG - July $35c (52 delta) or UWT FF - July $30c (80 delta) &/or Stock
http://www.investmenthouse.com/cs/asca.html
Play Date: 02/22/2007
SYK (Stryker--$63.45; +1.20; optionable): Medical instruments
http://biz.yahoo.com/p/s/syk.html
EARNINGS: Announced 1-25-07
STATUS: Flying plateau. Looking for SYK to make us some more money after this three week tight lateral move. It broke out from a 13 month double bottom in October and has rallied nicely. It needed a breather, but it was so strong that it did not give up any gains, instead holding steady over the 10 and 18 day EMA. Thursday volume surged and SYK started to break higher from its flat base. Looking to move in as SYK continues this advance.
Volume: 4.444M Avg Volume: 1.531M
BUY POINT: $63.58 Volume=1.7M Target=$72.95 Stop=$61.28
POSITION: SYK FL - June $60c (74 delta) &/or Stock
http://www.investmenthouse.com/cs/syk.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.
BA: Researching the date
BNI: Earnings were 1-23-07. Researching date.
CAH: Researching the date.
CEC: Forecast 3-6-07
CLE: Tentatively forecast 3-15-07
FDX: Forecast 3-21-07
JCI: Another stock that announced a dividend versus a split and it is running higher again.
JCP: Forecast 2-22-07. Did not come with the split and it struggled with a gap lower
KSS: Forecast 3-1-07
MER: Researching date
POT: Tentatively set for third week in April
RL: Researching date.
RIMM: Tentatively set first week of April
VIVO: Forecast mid-February
YUM: Forecast 5-1-07
NEW PRE-ANNOUNCEMENT PLAYS:
Play Date: 02/22/2007
ABK (Amback Financial Group--$90.59; +0.24; optionable): Surety and title insurance
http://biz.yahoo.com/p/a/abk.html
EARNINGS: Reported 1-31-07
STATUS: Run to 100. ABK is testing the breakout last week from a 6 week base, testing the 10 day EMA (90.25) and showing a doji at that level on Thursday. Nice breakout, nice test. A strong stock tends to make a run to 100 when it gets over 90.
Volume: 725.6K Avg Volume: 617.954K
BUY POINT: $90.91 Volume=900K Target=$100.00 Stop=$89.11
POSITION: ABK ER - May $90c (59 delta)
http://www.investmenthouse.com/cs/abk.html
Play Date: 02/22/2007
DIOD (Diodes--$39.12; +2.11; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/d/diod.html
EARNINGS: Reported 2-6-07
STATUS: Trend reversal. DIOD fell upon hard times starting September. It broke out of a 4.5 month base and rallied straight up, but fell into a September to January downtrend. It made a higher low the first three weeks of this month, trying to get over the 50 day EMA (36.94). Volume started to swell Tuesday and Wednesday, and Thursday it made the break, surging in price and volume through both the 50 day and 200 day SMA (38.33). We are willing to buy some positions as it continues higher. After this initial move it may come back to test the 200 day; that is often the case. If it does we will pick it up as it comes off that test as well.
Volume: 1.014M Avg Volume: 465.7K
BUY POINT: $39.45 Volume=500K Target=$45.45 Stop=$37.78
POSITION: DUH FH - June $40c (52 delta) or DUH FG - June $35c (78 delta) &/or Stock
http://www.investmenthouse.com/cs/diod.html
CONTINUING PRE-ANNOUNCEMENT PLAYS:
Play Date: 02/21/2007
CAH (Cardinal Health--$72.39; +0.03; optionable): Products, services to health care providers
http://biz.yahoo.com/p/c/cah.html
STATUS: Double bottom w/handle. Still testing, holding above the 10 day EMA (72.11) on low volume, showing a doji at that near support. Nice base, nice handle. Just waiting for the breakout. To recap: Years of basing has placed CAH in the current 11 month base, now working on the handle, the last step before the breakout. Excellent action as it comes back to tap the 10 day EMA to make a higher low and set up the breakout move. Money flow is leading higher and after this higher low CAH is ready to follow it.
Volume: 1.343M Avg Volume: 1.936M
BUY POINT: $73.45 Volume=2.9M Target=$84.45 Stop=$71.15
POSITION: CAH FN - June $70c (62 delta) &/or Stock
http://www.investmenthouse.com/cs/cah.html
Play Date: 02/21/2007
CTSH (Cognizant Technology--$94.38; -0.20; optionable): Custom IT software
http://biz.yahoo.com/p/c/ctsh.html
EARNINGS: Announced 2-5-07
STATUS: Flying plateau. Volume moved up to average Thursday as CTSH tried to make the move in a rather wild session, testing 92.50 on the low and 95.55 on the high. Still set for the next break higher. To recap: CTSH made us some great money on its last run where it eased up the 10 day EMA and then gapped higher on strong earnings. It rallied to 95 on the run and has moved laterally the past two weeks just below that level. The range is tightening up and the 10 day EMA has caught up to it. That typically is what sends it higher after one of these moves.
Volume: 1.518M Avg Volume: 1.389M
BUY POINT: $94.95 Volume=1.5M Target=$106.95 Stop=$92.45
POSITION: UPU GS - July $95c (57 delta) &/or Stock
http://www.investmenthouse.com/cs/ctsh.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 02/14/2007
BKE (Buckle, Inc.--$36.43; +0.03; no options): Apparel stores
http://biz.yahoo.com/p/b/bke.html
STATUS: Breakout test. Volume jumped higher Thursday, coming up near average as BKE shows a tight doji over the 10 day EMA (36.00). Looking for this volume to continue higher and break BKE higher on its next move. To recap: Looks ready to move higher after the test of the strong breakout move a week back. Nice tap at the 10 day EMA on the lows Tuesday through Thursday and rebounding. Low volume for now, but looking for it to return as it continues higher.
Volume: 139K Avg Volume: 158.39K
BUY POINT: $36.57 Volume=210K Target=$43.94 Stop=$34.72
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/bke.html
Play Date: 02/07/2007
RESP (Respironics--$42.16; +0.08; optionable): Medical appliances
http://biz.yahoo.com/p/r/resp.html
STATUS: Test breakout. Still holding the 10 day EMA (42.00) and still looking great to continue the run higher. Just hasn't done it yet. Volume was up Thursday but still below average. Just being patient. To recap: Nice fade to the 18 day EMA last week, holding and bouncing Thursday and Friday. Excellent test of that strong late January breakout move. Just looking for some volume on the way up to enter the play.
Volume: 256.282K Avg Volume: 326.208K
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
Play Date: 02/20/2007
SWS (SWS Group--$28.80; -0.04; optionable): Investment brokerage
http://biz.yahoo.com/p/s/sws.html
EARNINGS: 5-8-07
STATUS: Test 18 day EMA. Volume moved up to average as SWS shows a doji at the 10 day EMA (28.50). Like the swell in volume. Getting close. To recap: SWS broke out from a 24 week base in November and rallied up the 18 day EMA (now at 27.56). Big surge in early February on some tremendous earnings. It tested that move the past 1.5 weeks, coming back to the 10 day EMA, showing a doji there Friday. Volume jumped back up to average Tuesday as it bounced off of this support. Looking to squeeze another bounce off this one.
Volume: 338.2K Avg Volume: 319.808K
BUY POINT: $29.58 Volume=475K Target=$35.95 Stop=$27.51
POSITION: SRJ FX - June $26.38c (68 delta, 70 OI) &/or Stock
http://www.investmenthouse.com/cs/sws.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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