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trade stock, stock split
Begin part 3 of 3
THE PLAYS:
New Plays:
New Pre-Split Plays:
Play Date: 09/18/2007
PCAR (Paccar--$87.93; +3.82; optionable): Trucks. Etc. Splits 3:2 on 10-10-07
http://biz.yahoo.com/p/p/pcar.html
EARNINGS: 10-23-07
STATUS: Reverse head and shoulders. Volume jumped Tuesday on the Fed announcement though it did not surge. Nonetheless PCAR cleared resistance at the early September high as well as the bottom of the May and June consolidation range. This moves starts the breakout from its 8 week base, and looks very good for the run higher off of this very nice consolidation.
Volume: 1.721M Avg Volume: 1.954M
BUY POINT: $88.22 Volume=2.2M Target=$101.45 Stop=$84.89
POSITION: PAQ AR - Jan. $90c (53 delta) &/or Stock
http://www.investmenthouse.com/cs/pcar.html
New Post-Splits Plays:
Play Date: 09/18/2007
BRCM (Broadcom--$36.31; +1.46; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
EARNINGS: 10-19-07
STATUS: Double bottom w/handle. Strong volume as BRCM starts to break higher from a short 7 week base at the tail end of a much larger 7 month pattern, a reverse head and shoulders of sorts. Very nice set up for a move higher and the risk/reward position is excellent. Money flow is surging higher ahead of price and it is leading BRCM higher. Ready to move in as it continues higher on this breakout.
Volume: 21.451M Avg Volume: 10.961M
BUY POINT: $36.95 Volume=11M Target=$43.95 Stop=$34.78
POSITION: RCQ AG - Jan. $35c (64 delta) &/or Stock
http://www.investmenthouse.com/cs/brcm.html
Play Date: 09/18/2007
NVDA (Nvidia--$35.00; +2.82; optionable): Graphics semiconductors
http://biz.yahoo.com/p/n/nvda.html
EARNINGS: 11-8-07
STATUS: Test 18 day EMA. NVDA managed to check up at support at 32, its first rest point after the August breakout from a 6 week base. It blasted higher Tuesday on strong volume, showing it is back in action and ready to continue the breakout. We are ready to move back in as it continues this new move higher in the breakout run.
Volume: 21.122M Avg Volume: 15.41M
BUY POINT: $35.31 Volume=16M Target=$43.45 Stop=$32.84
POSITION: UVA AG - Jan. $35c (54 delta) &/or Stock
http://www.investmenthouse.com/cs/nvda.html
Play Date: 09/18/2007
RESP (Respironics--$47.90; +0.35; optionable): Medical appliances
http://biz.yahoo.com/p/r/resp.html
EARNINGS: 7-25-07
STATUS: Ascending base. RESP has formed a neat little 7 week base along the 50 and 18 day EMA, making higher lows below a constant top at 49. It is building pressure from below for the breakout move, and they tend to be explosive. Volume was showing itself on the upside before the Fed meeting, and thus we are looking for RESP to deliver the breakout move soon. Perennial leader.
Volume: 373.794K Avg Volume: 368.957K
BUY POINT: $49.38 Volume=553K Target=$56.85 Stop=$47.11
POSITION: RBQ AI - Jan. $45c (66 delta) &/or Stock
http://www.investmenthouse.com/cs/resp.html
Leader:
Play Date: 09/18/2007
MA (MasterCard--$145.81; +9.09; optionable): Credit services
http://biz.yahoo.com/p/m/ma.html
EARNINGS: Early November
STATUS: Cup. During all of the credit issues, MA was working laterally over support at 130, putting in the bottom to its current 12 week base. It is just starting up the right side of the pattern, jumping Tuesday on strong volume as the financials finally got some breathing room. Looking to move in as MA continues its surge higher.
Volume: 5.197M Avg Volume: 3.651M
BUY POINT: $146.65 Volume=3.8M Target=$169.95 Stop=$141.31
POSITION: MAL AI - Jan. $145c (59 delta)
http://www.investmenthouse.com/cs/ma.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
AMX: Forecast 10-23-07
ATW: Researching date
BG: Forecast 10-17-07 or 10-206-07
BHP: Forecast 10-23-07
BIDU: Tentative 10-30-07
BLUD: Forecast 9-28-07
CELG: Forecast 10-25-07
CMG: Tentatively date is 10-30-07
CNQ: Forecast 11-1-07
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
PCU: Forecast 10-27-07
SII: Forecast 10-22 or 10-23-07
UA: Forecast 10-30-07
CONTINUING PRE-ANNOUNCEMENT PLAYS
Play Date: 09/11/2007
RIG (Transocean--$108.41; +3.51; optionable): Offshore drilling
http://biz.yahoo.com/p/r/rig.html
EARNINGS: 10-31-07
STATUS: Cup w/handle. Nice bounce off the 50 day EMA at the bottom of the 2 week handle to the 8 week base, RIG looks ready to move toward the breakout and give us the buy. A top offshore driller, RIG is one that has yet to deliver a breakout, but it is on the cusp.
Volume: 5.325M Avg Volume: 6.66M
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
Play Date: 08/25/2007
UA (Under Armour--$65.79; +4.32; optionable): Apparel
http://biz.yahoo.com/p/u/ua.html
EARNINGS: 10-31-07
STATUS: Test 50 day EMA. Volume surged up to average as UA bounces off the 50 day EMA, surging to follow strong money flow that is running higher ahead of price. Excellent action that is setting it up for the breakout move. Can go ahead and enter from here on a continued run higher.
Volume: 1.479M Avg Volume: 1.457M
BUY POINT: $67.24 Volume=2.2M Target=$76.95 Stop=$64.22
POSITION: UA AM - Jan. $65c (61 delta) &/or Stock
http://www.investmenthouse.com/cs/ua.html
CONTINUING POST-SPLIT PLAYS
Play Date: 09/17/2007
CI (Cigna--$53.82; +0.13; optionable): Health care plans
http://biz.yahoo.com/p/c/ci.html
EARNINGS: Early November
STATUS: Reverse head and shoulders. Volume jumped above average Tuesday though CI did not. It tested lower to the 10 day EMA and then rebounded for a modest gain. Looks as if the last shakeout is just about over and it is ready for the breakout. To recap: Strong burst higher last Wednesday on the first above average volume in a month sent CI through some resistance at the 90 day SMA (52.58). It has come back on low volume to test that move, tapping at it on the Monday low then rebounding sharply for a modest loss. Solid test that has set the next move higher. Just looking for some more trade as it moves up off that level.
Volume: 2.565M Avg Volume: 2.165M
BUY POINT: $54.78 Volume=3M Target=$62.95 Stop=$52.45
POSITION: CI AX - Jan. $53.38c (55 delta) &/or Stock
http://www.investmenthouse.com/cs/ci.html
Play Date: 09/15/2007
SJR (Shaw Communications--$24.63; +0.45; no options): CATV systems
http://biz.yahoo.com/p/s/sjr.html
EARNINGS: 10-18-07
STATUS: Ascending base. Breaking higher on rising though just average volume. Still in a solid pattern, and if it can continue higher here on some continued solid trade it is a buy. To recap: SJR made a higher low at the 50 day EMA (22.64) to start the week and rebounded nicely to close it out. No massive volume surge to end the week on that move, but solid price gains and money flow is racing ahead of price, paving the way for the break higher and a run to a new all-time high. Showing excellent strength and we are willing to move in on this break higher even moving into the FOMC meeting.
Volume: 511.2K Avg Volume: 456.205K
BUY POINT: $24.38 Volume=650K Target=$28.95 Stop=$23.04
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/sjr.html
CONTINUING LEADER PLAYS:
Play Date: 09/15/2007
CNH (CNH Global--$54.50; +0.95; optionable): Farm and construction machinery
http://biz.yahoo.com/p/c/cnh.html
EARNINGS: 10-22-07
STATUS: Cup w/handle. Volume was up Tuesday but did not come close to cracking average as CNH posted a gain, moving toward the top of its handle, ready for the breakout. Still very solid and just waiting for the breakout move. To recap: When stocks recovered from the selling the reverse head and shoulders was a common pattern. After breaking higher the stocks have formed the current type of base, setting up the next stage of breakout and run higher. CNH rallied up to form the right side of its 10 week base, and now it is moving laterally on very low trade, shaking out the weaker holders and setting up the breakout move. These kind of patterns are well-positioned for the Fed announcement: if they get the news they want they breakout and we move in. If they don't we wait and see if they deliver the breakout at another time. Another stock with top-flight earnings growth rates to go with the pattern and tied to the global economy as well.
Volume: 348.6K Avg Volume: 400.769K
BUY POINT: $55.05 Volume=605K Target=$65.95 Stop=$52.11
POSITION: CNH LH - Dec. $55c (54 delta) &/or Stock
http://www.investmenthouse.com/cs/cnh.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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