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trade stock, stock split
Begin part 3 of 3
THE PLAYS:
New Plays:
Some strong leader plays:
Play Date: 09/13/2007
DRYS (Dryships--$70.45; -1.75; optionable): Shipping
http://biz.yahoo.com/p/d/drys.html
EARNINGS: Announced 8-21-07
STATUS: Test breakout/18 day EMA. DRYS gapped higher in mid-August, moving out of a short 5 week double bottom. It rallied nicely through Tuesday, and then started the current pullback to test that move. Thursday it tapped the 18 day EMA (68.67) on the low and rebounded to recoup its losses. Strong volume shows some heavy selling, but we like that it bounced; someone with deep pockets was buying. Looking for the bounce to continue and give us the buy point. Really like moving in after the first test of a breakout.
Volume: 2.412M Avg Volume: 1.475M
BUY POINT: $71.72 Volume=2.2M Target=$85.95 Stop=$68.42
POSITION: DQR AN - Jan. $70c (53 delta) &/or Stock
http://www.investmenthouse.com/cs/drys.html
New buys on stocks we have current positions:
Play Date: 09/13/2007
ISRG (Intuitive Surgical--$221.14; -1.12; optionable): Medical appliances
http://biz.yahoo.com/p/i/isrg.html
EARNINGS: 10-19-07
STATUS: Breakout test. ISRG continues testing the 10 day EMA (220) as it works laterally on lower, below average volume. This move follows a nice break higher in late August, a move that took it out of a short but nice 4 week reverse head and shoulders. Nice test and looking for the next break higher on some stronger trade to move into some new positions.
Volume: 520.173K Avg Volume: 939.421K
BUY POINT: $223.75 Volume=1.1M Target=$245.00 Stop=$219.65
POSITION: AXV AF - Jan. $230c (48 delta)
http://www.investmenthouse.com/cs/isrg.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.
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 typically 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: Tentative 10-17-07
ATW: Took a day off after the initial break higher
BG: Forecast 10-17-07 or 10-206-07
BHP: Forecast late November
BIDU: Tentative 10-30-07
BLUD: Forecast 9-28-07
CELG: Forecast 10-25-07
CNQ: Excellent break higher
COP: Potential on 10-24-07
CVX: Forecast 10-24-07
DO: Forecast 10-22-07 or 10-26-07
FCN: Forecast 10-10-07
FLIR: Forecast 10-25-07
GPRO: Forecast tentatively 10-31-07, Halloween; trick or treat?
HRS: Forecast 10-24 or 10-26-07
IBM: Forecast 10-16-07
JEC: Forecast 11-6-07
MM: Forecast 10-16-07
OII: Forecast 10-30-07
SII: Forecast 10-22 or 10-23-07
UA: Forecast 10-30-07
NEW PRE-ANNOUNCEMENT PLAYS
Play Date: 09/13/2007
AMX (America Movil--$61.22; +1.33; optionable): Wireless telecom, Latin America
http://biz.yahoo.com/p/a/amx.html
EARNINGS: 10-23-07
STATUS: Reverse head and shoulders. Taking another look at AMX as it has recovered the 50 day EMA and is moving up toward the early September high (62). Good action in its 10 week pattern; just needs some volume to send it to the breakout and run to a new all-time high.
Volume: 3.638M Avg Volume: 5.929M
BUY POINT: $61.89 Volume=9M Target=$70.95 Stop=$59.55
POSITION: AMX AL - Jan. $60c (59 delta) &/or Stock
http://www.investmenthouse.com/cs/amx.html
Play Date: 09/13/2007
CMG (Chipotle Mexican Grill--$105.58; +2.07; optionable): Mexican style fast food
http://biz.yahoo.com/p/c/cmg.html
EARNINGS: 10-31-07
STATUS: Ascending base. Very low volume the past three weeks as CMG sets up a solid 6 week pattern formed using the 18 day EMA (102) as support. Strong money flow is leading higher as CMG makes higher lows below a constant top near 105. Squeezing it from below and it is likely to squirt out like a watermelon seed when it breaks out. Or maybe like a pepper seed; not sure what the Mexican food equivalent is. In any event, like the pattern and the earnings growth, and the fact it is under institutional accumulation.
Volume: 349.5K Avg Volume: 524.696K
BUY POINT: $105.89 Volume=787K Target=$119.45 Stop=$101.89
POSITION: CMG AA - Jan. $105c (54 delta) &/or Stock
http://www.investmenthouse.com/cs/cmg.html
Play Date: 09/13/2007
PCU (Southern Copper--$108.73; -0.08; optionable): Copper
http://biz.yahoo.com/p/p/pcu.html
EARNINGS: 10-27-07
STATUS: Reverse head and shoulders. PCU is working on the right shoulder to its 7 week base, rising to the neckline this week and tapping it Thursday on the high. May take a few more sessions to work up to the breakout, but it is positioned to do that and we will just wait for it to show us the move.
Volume: 1.591M Avg Volume: 2.386M
BUY POINT: $110.72 Volume=3M Target=$129.95 Stop=$106.32
POSITION: PCU AB - Jan. $110c (55 delta) &/or Stock
http://www.investmenthouse.com/cs/pcu.html
CONTINUING PRE-ANNOUNCEMENT PLAYS
Play Date: 09/01/2007
MM (Metal Management--$46.01; +0.24; optionable): Steel and iron
http://biz.yahoo.com/p/m/mm.html
EARNINGS: 8-2-07
STATUS: Cup w/handle. Ready to make the move. Looks very nice. To recap: MM is working on a nice little handle to an 8 week base that is part of a larger 14 week pattern. Strong run Q4 2006 and through May, then this nicely formed base to set the foundation for the next breakout and run higher. Volume jumped last Friday, a 'get ready' spike. Money flow is soaring. MM looks ready to lead once more; just need another high volume move to get it going.
Volume: 159.2K Avg Volume: 324.622K
BUY POINT: $47.45 Volume=400K Target=$54.45 Stop=$45.88
POSITION: MM AM - Jan. $45c (63 delta) &/or Stock
http://www.investmenthouse.com/cs/mm.html
Play Date: 09/11/2007
RIG (Transocean--$107.58; +0.89; optionable): Offshore drilling
http://biz.yahoo.com/p/r/rig.html
EARNINGS: 10-31-07
STATUS: Cup w/handle. Volume has backed off as RIG tests the 10 day EMA (106.48) on very low volume, continuing the handle work that is setting up the breakout. Money flow is solid and looks to join its brethren with a breakout. To recap: Volume has surged the past three sessions as it has moved laterally over the 50 day SMA (105.62) in a flat handle. Another strong stock that used the July and August selling to form a nice 6 week base. Surging money flow and surging volume; that is a winning combination for a breakout ready to happen.
Volume: 4.076M Avg Volume: 6.707M
BUY POINT: $108.88 Volume=10M Target=$124.95 Stop=$105.42
POSITION: RIG AB - Jan. $110c (48 delta) &/or Stock
http://www.investmenthouse.com/cs/rig.html
CONTINUING POST-SPLIT PLAYS
Play Date: 09/12/2007
JKHY (Jack Henry & Assoc.--$27.14; +0.22; optionable): Outsourced data processing for banks, financial institutions
http://biz.yahoo.com/p/j/jkhy.html
EARNINGS: 8-21-07
STATUS: Reverse head and shoulders. A bit volatile Thursday on strong volume as JKHY could not make up its mind. If it continues higher it is a buy. To recap: Strong volume the past three sessions, really strong, as JKHY tested the 50 day EMA (25.73) and then raced higher right to the breakout point on Wednesday. Strong money flow is leading the way higher as JKHY looks for a 7 year high. Excellent action and it is good to see JKHY back in action again and ready to run.
Volume: 1.102M Avg Volume: 636.337K
BUY POINT: $27.08 Volume=650K Target=$31.95 Stop=$25.69
POSITION: JKQ LE - Dec. $25c (67 delta) &/or Stock
http://www.investmenthouse.com/cs/jkhy.html
CONTINUING LEADER PLAYS:
Play Date: 09/08/2007
PDE (Pride International--$36.30; 0.00; optionable): Oil and gas drilling, exploration
http://biz.yahoo.com/p/p/pde.html
EARNINGS: 8-2-07
STATUS: Cup w/handle. Still in that nice low volume test of the 10 and 90 day MA that is forming the handle. Nice quiet action, the calm before the storm. To recap: Nice action on low volume continues after an excellent break higher to start the month. That completed a 5 week cup base that formed a reverse head and shoulders at the bottom (seeing a lot of reverse H&S in the market, a good sign for gains ahead). Indeed, the move higher last week was the breakout from that pattern and now it is moving to the second stage, the cup with handle. May take a couple more days to complete the lateral move, but we are going to be ready when it makes the next move higher and shows us the next breakout.
Volume: 1.596M Avg Volume: 2.595M
BUY POINT: $37.31 Volume=3.4M Target=$42.95 Stop=$35.89
POSITION: PDE AG - Jan. $35c (72 delta) &/or Stock
http://www.investmenthouse.com/cs/pde.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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trade stock
stock split
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