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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS:
Good movers: ATW; CLB; DLTR; EOG; FLIR; GLDN; HOC; NOV; OII; PCU; POT; RIG; RIMM; ROCM; XTO
New Plays:
Upside:
New Post-Split Plays:
Play Date: 04/10/2007
CHE (Chemed--$49.81; +0.64; optionable): Hospice care
http://biz.yahoo.com/p/c/che.html
EARNINGS: 5-1-07
STATUS: Cup w/handle. CHE is working in a tight lateral range over the 10 day EMA the past two weeks, forming the handle to its 12 month base. Big gap higher in late February, and this current move is consolidating that jump, setting up the next run higher. Like how it has plenty of room overhead to break higher and run higher without having to plow new ground. Good volume Tuesday as CHE posted a modest gain right at the breakout point.
Volume: 500.5K Avg Volume: 324.035K
BUY POINT: $50.32 Volume=450K Target=$59.89 Stop=$48.92
POSITION: CHE FJ - June $50c (51 delta, low OI) &/or Stock
http://www.investmenthouse.com/cs/che.html
Play Date: 04/10/2007
HES (Hess Corp.--$56.38; +1.30; optionable): Oil and gas refining, marketing
http://biz.yahoo.com/p/h/hes.html
EARNINGS: 4-25-07
STATUS: Test 18 day EMA. HES broke out from a 5 week double bottom in late March, though volume was not surging. Has come back to test that move, holding the 18 day EMA (55.32) this week, setting up toward the breakout to the new high. Money flow remains strong and looking for volume to jump higher as it rebounds off this near support.
Volume: 2.531M Avg Volume: 3.188M
BUY POINT: $57.05 Volume=4M Target=$65.50 Stop=$54.88
POSITION: IGG HK - Aug. $55c (62 delta) &/or Stock
http://www.investmenthouse.com/cs/hes.html
Play Date: 04/10/2007
JCOM (J2 Global Communications--$28.17; +0.25; optionable): Internet telecom services
http://biz.yahoo.com/p/j/jcom.html
EARNINGS: Announced 3-12-07
STATUS: Double bottom w/handle. Working on a three week handle to its 9 month base. It gapped lower in early January then gapped back up to the same point in mid-March; an island reversal. Now working laterally after that last move, setting up for the next break higher. Looking for this low volume to turn into stronger volume as it makes the break higher.
Volume: 303.569K Avg Volume: 732.395K
BUY POINT: $28.88 Volume=1M Target=$34.95 Stop=$27.45
POSITION: JQF IE - Sept. $25c (72 delta) &/or Stock
http://www.investmenthouse.com/cs/jcom.html
New Leader plays:
Play Date: 04/10/2007
EDU (New Oriental Education & Tech--$42.98; +0.76; optionable): Chinese education and training
http://biz.yahoo.com/p/e/edu.html
EARNINGS: Mid-April
STATUS: Ascending base. Looking at a relatively new issue as it sets up for the breakout from its 8 week base formed using the 50 day EMA (40.26) as support. A new issue in September 2006, looking for some volume to come in as it breaks above the trendline connecting the February and late March highs. Love these new issues as they break higher out of bases.
Volume: 179.6K Avg Volume: 406.806K
BUY POINT: $43.44 Volume=600K Target=$51.95 Stop=$41.77
POSITION: EDU GH - July $40c (63 delta) &/or Stock
http://www.investmenthouse.com/cs/edu.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.
AAPL: Forecast 4-18-07
ADM: Researching the date
BA: Tentatively set for late April
CAH: Tentatively forecast for 4-26-07
CHTT: Researching the date
CMTL: Forecast in early June
CNMD: Forecast early May
CTRP: Forecast early May.
DLTR: Forecast late May
EXC: Researching date
GIL: Forecast early May
ISRG: Tentatively set 4-19-07
JCI: Researching the date. Announced earnings late January.
MA: Tentatively set for early May.
MCHP: Tentatively set for 4-26-07
MM: No split in late March. Researching the next date as we enjoy the good move.
MRO: Forecast early May.
NOV: Researching date. Announced earnings 2-6-07
POT: Tentatively set for third week in April
RL: Researching date. Announced earnings 2-7-07.
RIMM: Earnings 4-11-07. Could announce at earnings Wednesday after the close.
SSYS: Forecast early May
THQI: Researching date
VMC: Forecast late April
VSEA: Tentatively set for early May.
CONTINUING PRE-ANNOUNCEMENT PLAYS:
Play Date: 04/06/2007
CHTT (Chattem--$59.73; +0.92; optionable): Over the counter healthcare products, dietary supplements, etc.
BACKGROUND: Last announced a 2:1 split on 10-30-02 at $44.60.
http://biz.yahoo.com/p/c/chtt.html
EARNINGS: Announced 3-22-07
STATUS: Test breakout. Volume moved up to average as CHTT tapped the 10 day EMA and posted a nice gain. Looks ready for action and a breakout ahead. To recap: Excellent break higher on earnings sent CHTT over the January highs. It has come back to test that move the past two weeks, holding near support at the 10 day EMA and the January highs (58.14). Volume jumped back up Wednesday and Thursday, and it looks as if CHTT is going to start the coming week with a new run.
Volume: 442.94K Avg Volume: 341.708K
BUY POINT: New: On a continued move higher on volume (orig. $59.48) Volume=550K Target=$69.95 Stop=$57.32
POSITION: HQT IL - Sept. $60c (54 delta) &/or Stock
http://www.investmenthouse.com/cs/chtt.html
Play Date: 03/22/2007
MA (MasterCard--$110.01; +1.67; optionable): Credit and financial services
http://biz.yahoo.com/p/m/ma.html
EARNINGS: 5-2-07
STATUS: Double bottom w/handle. Volume moved up to average Tuesday as MA announced a stock buy back program (not exactly the kind of news that suggests a split). Solid move but it faded to close off the high (111.40). After the news is out we want to see if MA has the mettle to continue on higher and give us the buy point.
Volume: 2.653M Avg Volume: 3.037M
BUY POINT: $110.78 Volume=4.5M Target=$121.00 Stop=$106.74
POSITION: MA GB - July $110c (56 delta)
http://www.investmenthouse.com/cs/ma.html
Play Date: 03/24/2007
MS (Morgan Stanley--$80.28; -0.02; optionable): Investment brokerage
http://biz.yahoo.com/p/m/ms.html
EARNINGS: Announced 3-21-07
STATUS: Double bottom w/handle. Volume rallied Tuesday as MS tried the breakout but could not finish off the move. Still a solid 9 week base with an upside island reversal that is a bullish indication. Being patient and letting it show the move. Does look good. To recap: Holding up at the 90 day MA (79.69) on the lows as MS sets a higher low after bouncing Tuesday off the 50 day EMA on rising volume. Setting up very nicely for the next break higher. An interesting pattern as it gapped lower to end February, then gapped higher mid-March from the same spot. That is an island reversal gap and bodes well for further upside. This handle is icing on the cake.
Volume: 4.052M Avg Volume: 6.25M
BUY POINT: $80.88 Volume=8.9M Target=$94.95 Stop=$78.21
POSITION: MS GP - July $80c (63 delta) &/or Stock
http://www.investmenthouse.com/cs/ms.html
Play Date: 04/03/2007
NYX (NYSE Group--$96.20; +0.15; optionable)
BACKGROUND: No splits in NYX' history
http://biz.yahoo.com/p/n/nyx.html
EARNINGS: 4-26-07
STATUS: Cup w/handle breakout. Tested the 90 day MA on the Tuesday low and bounced modestly on low volume. Still looking for volume to rebound as NYX makes the move off of this near support. To recap: Surging volume as NYX broke out from the handle to its 12 week base as Euronext and NYSE closed their deal last Wednesday. Whatever the reason, the move is strong and we are ready to move in as it continues its move.
Volume: 3.303M Avg Volume: 6.551M
BUY POINT: Aggressive: $97.75 (orig. $101.39) Volume=9.5M Target=$113.95 Stop=$94.95
POSITION: NYX FT - June $100c (57 delta)
http://www.investmenthouse.com/cs/nyx.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 04/09/2007
AMX (America Movil--$50.07; -0.48; optionable): Telecom wireless communications, Latin America
http://biz.yahoo.com/p/a/amx.html
EARNINGS: Announced 2-7-07
STATUS: Breakout test. Still moving laterally, testing that strong early April break higher. Just waiting for it to make the move. To recap: AMX started the month with a strong surge out of a 7 week base, rallying on strong volume to a new all-time high. After that move it needed a breather and took one last week on lower trade. Monday it started higher on rising but below average volume, starting the rebound from the test and heading back for a new high. Ready to move in as AMX moves on.
Volume: 4.168M Avg Volume: 5.937M
BUY POINT: $50.72 Volume=6M Target=$57.95 Stop=$48.88
POSITION: AMX HJ - Aug. $50c (57 delta) &/or Stock
http://www.investmenthouse.com/ct/amx.html
CONTINUING LEADER PLAYS:
Play Date: 03/31/2007
AH (Armor Holdings--$68.58; +0.52; optionable): Armored vehicles
http://biz.yahoo.com/p/a/ah.html
STATUS: Breakout test. Holding the 10 day EMA Tuesday and rebounding for a gain. Just needs some volume to go along with the move. To recap: Nice 6 week double bottom with handle broke higher last week and is now testing the move. Nice use of the 50 day EMA on the lows as support. Nice short base that is consolidating the early February breakout from its 9 month cup with handle. It is ready to move.
Volume: 305.3K Avg Volume: 547.521K
BUY POINT: $68.35 Volume=890K Target=$78.95 Stop=$66.21
POSITION: AH HN - Aug. $70c (50 delta) &/or Stock
http://www.investmenthouse.com/cs/ah.html
Play Date: 04/06/2007
CROX (Crocs, Inc.--$51.70; +0.31; optionable): Footwear
http://biz.yahoo.com/p/c/crox.html
EARNINGS: Announced 2-20-07
STATUS: Cup. Working on a handle to its base, working laterally this week on lower volume. Excellent action that is setting up a better buy point for the play. To recap: CROX has started to gallop again. Strong run in 2006 and up to early February in 2007 finally needed a rest. It has come back to form an 8 week cup, just now coming off of the lows with a strong volume and price gain Wednesday and Thursday. Looking to move in with some positions as it continues higher and then see if it forms a handle, that low volume lateral to slightly lower move that sets up the next serious breakout and run. When it makes that next break we move in again with more positions.
Volume: 1.226M Avg Volume: 2.196M
BUY POINT: Breakout: 52.79 (orig. $52.05) Volume=2M Target=$59.95 Stop=$49.57
POSITION: CQJ FJ - June $50c (65 delta) or CQJ IK - Sept. $55c (50 delta) &/or Stock
http://www.investmenthouse.com/cs/crox.html
Play Date: 04/09/2007
GS (Goldman Sachs--$209.05; +0.11; optionable): Investment brokerage
http://biz.yahoo.com/p/g/gs.html
EARNINGS: Announced 3-13-07
STATUS: Cup w/handle. Another lateral day on lower volume, holding the 10 day EMA on the low. Still a nice setup, still waiting for it to show the breakout move. To recap: GS continues working laterally along the 18 and 50 day EMA, forming a handle to its 6 week pattern that formed after the late April selling in these stocks in this sector. It has put in its time and now we are looking for a break higher on stronger trade.
Volume: 3.003M Avg Volume: 7.655M
BUY POINT: $210.22 Volume=10M Target=$229.75 Stop=$206.95
POSITION: GPY GB - July $210c (60 delta)
http://www.investmenthouse.com/cs/gs.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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