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Begin Part 3 of 3

SYMC (Symantec--$76.04; +0.22; optionable): Security software. Splits 2:1 effective February 1.
http://biz.yahoo.com/p/s/symc.html
STATUS: After the remarkable move last Thursday (on earnings), SYMC has shown resilience. It gapped back Friday but pushed up for a gain, and did so to a lesser extent today, tapping a new high intraday at 77.02. Volume dipped to 3.88 million (average 2.66 million), and the decreasing gains on dropping volume point to a test back to the recent highs (74-74.50). After such a run (which occurred on favorable earnings that came out after hours Wednesday), a dip back is normal, but we will see how strong it is, watching for it to hold those recent highs. If it holds again, we can look for a move up from there. The initial target is 78, but on a continued move we are adjusting it to 84.
PLAY: Pullback: After a test of 74, a move back over 75.50, with stock and/or April $70 calls to buy (SYQ BN). Stop: 71.

FRED (Fred's Inc--$40.80; +0.91; no options): Apparel. Splits 3:2 effective February 2.
http://biz.yahoo.com/p/f/fred.html
STATUS: Has made a strong bounce, but could be ready to come back a bit. FRED made a steady climb up since its last stock split in June, hitting 43.86 early this month before pulling back to test below its 50 day MVA (currently 37.05), from where this move began. With pre-split moves we get nice runs like this, and with the volatility of pre-splits volume is not always as large a factor as it is with other plays. Volume was down again today to 117,100 (average 212,000), and the stock pulled back from its intraday high of 41.70; this combination indicates a drop, so we will be ready to take profits, watching the short-term MVA's (39) for support.
PLAY: Pullback: After a hold of the short-term MVA's, a move back over 39.50. Stop: 36.83.

CONTINUING CANDIDATES BEST PLAYS:
1) ETH - Still looking for a drop
2) GNSS - Big drop
3) ACS - Finally gave in
4) THC - Forming the handle

ETH (Ethan Allen--$39.12; +0.48; optionable): Did not get the announcement and it tanked.
http://biz.yahoo.com/p/e/eth.html
BACKGROUND: Last announced a 3:2 split on 4-28-99, approximately 2 weeks after earnings release. The stock price was $34.64. The annual shareholder meeting was on 11-15-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: ETH has dumped back through the 50 day MVA (38.95), but managed a relief bounce over the last two sessions, today closing back over the 50 day with good volume behind it (305,400). A good bounce, but if it cannot hold over the 50 day we are still watching for a drop back through the support at 38 from the May-August high and the December low that we can play back to the 200 day MVA (35.68).
BUY POINT: A drop through 38 on continued strong volume.
POSITION: February $45 puts to buy (ETH NI - ready to exit upon reaching the target with this near-term expiration; no open interest for March).

GNSS (Genesis Microchip--$57.70; -8.48; optionable):
http://biz.yahoo.com/p/g/gnss.html
STATUS: GNSS fell back last week, and lost a fight with its short-term MVA's (18 day at 66.36), today diving back in a big way. On the way it took out its 50 day MVA (60.62), as volume continued to be massive, up to 8.4 million (average 2.7 million). After the huge drop we will see if the stock will bounce back up and test the 50 day, which it could do with a market relief bounce. After a failure at the 50 day, we can look at a drop back initially targeting 50.
BUY POINT: After a test of the 50 day, a drop back through 57 on continued strong volume.
POSITION: March $70 puts to buy (QFE ON).

ACS (Affiliated Computer--$103.00; -5.08; optionable):
http://biz.yahoo.com/p/a/acs.html
STATUS: ACS gave us quite a run, steadily marching up over the past 18 months. It had cleared its upper channel trendline in December and continued up a steeper trend, but we were wary of a drop back after such a run. With earnings ACS finally took it on the chin, running all the way back through its 50 day MVA (100.60), taking out positions and hitting down to 99 before recovering to close at the upper channel. Volume was huge at 2.85 million (average 481,200), and the run back up to close at the upper channel is precarious at best. We could see a little bounce in the morning, but will look for it to roll over and fall back. We will watch the 50 day MVA carefully, but are eyeing a fall back to 93 (October-November range). A bounce in the morning could be used to lighten up positions or sell calls on them. We have to watch a move below the 50 day MVA on further selling, however.
BUY POINT: After a test of 104-105, a drop through 103 on continued strong selling volume.
POSITION: February $110 puts to buy (ACS NB - no open interest for March - with February options, we are taking profits on the quick move to the target, not riding for long).

THC (Tenet Healthcare--$64.80; +0.30; optionable):
http://biz.yahoo.com/p/t/thc.html
STATUS: THC broke out from its short handle (formed after gapping up in its awkward, 'flying w' shaped cup in early January) last week, and has tested back after hitting up to 66.40. It is holding up well over the 10 day MVA (63,80), not showing any strong selling on the drop. Today it moved up slightly with volume remaining low at 1.4 million (average 1.85 million). Looking for THC to settle back and hold support here (handle highs and left-side highs are at 63), perhaps over a few sessions, to set up a move.
BUY POINT: After holding 63-63.50 on low volume, a move back over 64.50 on above average volume.
POSITION: Stock and/or May $60 calls to buy (THC EL).

POST SPLITS BEST PLAYS:
1) CHBS - Coming back to test support

CHBS (Christopher & Banks--$33.50; -0.12; optionable): Split 3:2 effective 12-13-02.
http://biz.yahoo.com/p/c/chbs.html
STATUS: A retailer showing some strength, although after the good run up last week we could see a test back down from here. CHBS gapped up and reversed, hitting a high of 34.45 before dropping back. Volume was down but strong at 519,800 (average 376,000), and off of the gap up and reverse we will look at a test back to the 32-32.50 range (short-term MVA's), but watching for it to hold there and try a run back up at the recent high (35.76).
PLAY: After a test of 32.50, a run back over 33.50 on increased volume, with stock and/or March $30 calls to buy).

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WATCHLISTS:
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PRE-ANNOUNCEMENTS WATCHLIST:

DHR ($59.75; -0.66): Forecast to announce a split on 1-24-02 before the open with earnings; however, the company has declared a quarterly dividend which could make a split announcement less likely. Held over the 50 day (59.73) today to close as it pulled back on increased volume (1.22 million; average 1.18 million). Has fallen hard recently, not a good sign going into earnings. With an announcement the aggressive play is over 61 on increased volume, with stock and/or March $55 calls to buy (DHR CK).

DIAN ($56.94; -0.56): Forecast to announce a split with earnings on 2-21-02 before the open. A pretty good bounce from the 50 day last week, and now it is testing back but looking decent as it holds the short-term MVA's (60.60). Volume was light on the pullback (203,400; average 244,000), so we are watching for it to hold and make a move back over 58 on volume over 300,000, with stock and/or May $55 calls to buy (UID EK - very low open interest).

AROW ($28.50; -0.45): Working on a date. Has fallen from a promising ascending wedge pattern, and now is struggling with its short-term MVA's (28.70; recent lows at 28). Volume was up (17,200; average 11,200) as the stock dropped back today, recovering from a low near 28. We will see what happens from here, but not much of a play now.

EXPD ($57.94; +0.14): Working on a date. Holding its 18 day (57.42) as volume is light (242,700; average 415,500). Not back action as it recovered from its fall back into its former ascending wedge pattern, stopping short of testing its 50 day (55.08). We will see if it can hold and set something up, but it may take some time. The aggressive can play a move over 59 on above average volume, with stock and/or May $55 calls (URP EK - low open interest).

MRBK ($44.61; -0.08): Forecast to announce a split on 3-12-02 in conjunction with a board meeting. The company will not confirm this date, but our research determines this is the date for the next board meeting. Early this month MRBK broke over the center of its large double bottom as it trends up its short-term MVA's (10 & 18 day at 44.34 and 43.96). It has dipped back with consecutive dojis, and it looks like it needs to test the 44 level and perhaps form a handle. The left side high is at 45.13. After the test, looking for a bounce and then a breakout over the left side high.

NDN ($34.18; -0.23): Researching a date. Dipped through the buy point Tuesday (low of 33.60), although volume still was not as strong as we wanted (300,000; average 328,500). Still targeting 32 (200 day MVA) on the drop, and the aggressive can look at positions on another drop through 34, this time with above average volume. March $40 puts to buy (NDN OH).

PII ($55.00; -0.74): Forecast to announce a split on 1-29-02 before the market opens in conjunction with earnings. Still consolidating a bit on low volume over the 50 day MVA (54.39), constrained from above by the short-term MVA's (56.36). We will see if it can hold.

WLP ($123.34; -1.45): Working on a date. WLP broke out last week, but even with the good volume we were skeptical after the low volume drift up in its handle that preceded the move. It is now wedging but holding over the 10 day (122.15). If it can hold support and tighten up on low volume, we will look for another breakout.

PRE SPLITS WATCHLIST:

MGAM ($36.62; +0.44): Splits 3:2 on or about February 12. Managed to push back through the short-term MVA's Friday (18 day at 36.16), but could only manage a doji today. We will see if it can hold here, although we could get a test back to the 50 day, and set up a move. From here, on a move over 37.50, stock.

SONC ($35.70; -0.42): Splits 3:2 effective 2-9-02. Again reached up near its high at 37.65 (today to 37.13), but again pulled back, this time closing just over the 18 day MVA (35.58). The 18 day is with its upper-channel trendline (May-October highs), and the sector is not doing too badly. We will see if it can hold and move, but on a pre-split run we will need to exercise caution as it is above its upper channel. After holding here, a move over 36.50 on volume of 300,000 or better, with stock and/or March $30 calls to buy (ZXQ CF).

XRAY ($50.50; -0.47): Splits 3:2 effective February 1. After a long series of dojis that were creeping up, XRAY gapped up and reversed today, still holding its 18 day MVA (50.20) to close. Volume was big, so we could see a further drop, with a possible test of the 50 day (48.46).

CONTINUING CANDIDATES WATCHLIST: 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.

APPB ($34.58; +0.08): Struggling here and not looking like it wants to move up. Restaurants are showing a bit of strength, so we will see if it can hold the 50 day (33.81) and set something up.

AZO ($64.89; +0.47): Little change, as AZO is in a consolidation under its 50 day MVA (66.35; 10 day at 65.25). The play remains a move through 63.50 on volume of 2 million (average 1.35 million, still low today at 760,500), with February or March $70 puts to buy (AZO ON). Still targeting 60.

BBY ($72.06; -1.12): BBY is holding the rang of the short-term MVA's (18 day at 72.86). BBY made a nice bounce up from 65 in December on positive earnings, but after the moves it has made we are not optimistic of much more upside from here in the near term. If it breaks down from here we are taking our money off the table (50 day at 69.50).

BBBY ($30.90; -0.92): Gave up the 50 day (32), and looks destined for a test of the 200 day (29.50). We have doubted its strength and now it is not one that we want our money in.

EDS ($66.40; -0.40): A volatile chart, with EDS gapping back over the 50 day (67.05) today and then selling back through that level. We need to see EDS settle down a bit before we look for the next play.

JCI ($78.00; -0.20): After falling hard on earnings it held 75 but is up again the short-term and 50 day MVA's now. Does not look promising for a move up at the moment.

MI ($60.76; -0.25): The move on the 50 day (61.13) is having trouble, and MI dropped back a tad today. The aggressive can look for above average selling volume (looking for 300,000; today 134,000) on a move through 60, with March $65 puts to buy (MI OM).

THQI ($42.30; -0.73): THQI is holding at 42.50. We could continue to ride existing downside positions to 40, but wary of a bounce that could get us out of positions.

POST SPLITS WATCHLIST:

CACI ($33.98; +0.96): Got a move down today, running down to 30.80 but reversing to close, moving on very strong volume (1.3 million; average 3 million). We could see a bounce here back up toward the 50 day (36.65), which could spell an end to positions, although if it stalls in the 35 range we would expect a drop back.

CBH ($41.99; +0.25): Yet another doji, the third consecutive as it drifts upward. A test back will probably have us taking profits, with the 10 and 18 day MVA's below at 41.05 and 40.40.

CHS ($25.95; -0.19): On the split gapped up and reversed. Looks like it could test the 50 day, at 24.48, so we will see if it holds there and perhaps sets up again. A strong performer of late.

VAR ($36.24; -0.26): Split 2:1 on 1-16-02. Dropped back as expected after Friday's reach up to 37.25 failed; however, VAR was able to hold the 18 day at its low of 35.55 and recovered to close. We will see if it can hold the December highs at 36 and perhaps set up a handle-type consolidation to its 'flying w' dating back to November.

LIZ ($25.22; -0.19): Split 2:1 on 1-17-02. Gapped up and pulled back today, again closing just over the 50 day MVA (25.09). The aggressive play remains a move over 26 on continued strong volume with stock and/or April $22.50 calls to buy (LIZ DX - no open interest).

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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