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top stock pick, stock split
Begin part 3 of 3
THE PLAYS:
New Pre-Split Play:
Play Date: 09/20/2007
JCI (Johnson Controls--$115.64; -2.16; optionable): OEM auto parts. Splits 3:1 on 10-1-07
http://biz.yahoo.com/p/j/jci.html
EARNINGS: 10-18-07
STATUS: Double bottom with handle. JCI is working on the handle to a 9 week base formed after a strong December to July run. After that move it needed a break, and this base is shaking out the sellers and is setting the foundation for another move higher. Great break higher the past week and a nice test. Another couple of sessions and the handle will have formed and it will be ready to make the breakout move to start the next run.
Volume: 656.6K Avg Volume: 1.267M
BUY POINT: $116.21 Volume=1.2M Target=$133.50 Stop=$113.65
POSITION: JCI AC - Jan. $115c (55 delta)
http://www.investmenthouse.com/cs/jci.html
New Post-Split Play:
Play Date: 09/20/2007
GILD (Gilead Sciences--$39.46; +0.82; optionable): Biotech
http://biz.yahoo.com/p/g/gild.html
EARNINGS: 10-19-07
STATUS: Cup. GILD is jumping of the bottom of a 5 month base, forming a reverse head and shoulders in August and September. That pattern often forms at the bottom of a cup and breaks it higher. GILD is doing just that and looking to move in as it continues the rebound move.
Volume: 7.621M Avg Volume: 7.679M
BUY POINT: $39.65 Volume=9.5M Target=$45.95 Stop=$38.11
POSITION: GDQ AU - Jan. $37.50c (67 delta) &/or Stock
http://www.investmenthouse.com/cs/gild.html
Play Date: 09/20/2007
NE (Noble Corp.--$49.45; +0.92; optionable): Oil and gas drilling
http://biz.yahoo.com/p/n/ne.html
EARNINGS: 10-17-07
STATUS: Double bottom. NE formed a nice 3 month double bottom December 2006 to February 2007 and broke higher, rallying sharply higher through July. It peaked and is now working on another double bottom, coming off the lows this week on some rising volume. Looking for a strong jump in volume as NE continues the break higher and gives us an entry point for the next run.
Volume: 4.121M Avg Volume: 6.108M
BUY POINT: $49.78 Volume=9M Target=$59.85 Stop=$47.94
POSITION: NE AW - Jan $47.50c (64 delta) &/or Stock
http://www.investmenthouse.com/cs/ne.html
Play Date: 09/20/2007
TRMB (Trimble Navigation--$37.00; -0.68; optionable): Positioning devices
http://biz.yahoo.com/p/t/trmb.html
EARNINGS: 10-30-07
STATUS: Double bottom w/handle. Okay, looking at TRMB again. It broke higher this week in its 7 week base formed over the 50 day EMA (35.20) and is now testing back toward the 10 day EMA (36.54) to form the handle on very low, below average volume. Strong money flow is holding up as it makes this test. Looking to play a strong bounce off the 10 day EMA as our entry point to ride it higher to yet a new all-time high.
Volume: 545.367K Avg Volume: 821.891K
BUY POINT: $36.78 Volume=900K Target=$42.88 Stop=$35.65
POSITION: TUH AG - Jan. $35c (63 delta) &/or Stock
http://www.investmenthouse.com/cs/trmb.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
RIG: Forecast 10-31-07
SII: Forecast 10-22 or 10-23-07
UA: Forecast 10-30-07
NEW PRE-ANNOUNCEMENT PLAYS
Play Date: 09/20/2007
ACH (Aluminum Corp of China--$61.98; -0.54; optionable): Chinese aluminum
http://biz.yahoo.com/p/a/ach.html
EARNINGS: 11-19-07
STATUS: Breakout test. ACH is working laterally the past three weeks, testing back to near support at the 18 day EMA (60.43) as it tests the strong August gap and surge higher on a strong earnings report. May take a few more sessions to finish testing, but all we need to do is just wait for it to show us the break higher.
Volume: 901.5K Avg Volume: 2.086M
BUY POINT: $63.11 Volume=2.8M Target=$75.32 Stop=$60.32
POSITION: ACH BM - Feb. $65c (51 delta) &/or Stock
http://www.investmenthouse.com/cs/ach.html
New buy point on a current position:
Play Date: 09/20/2007
CNQ (Canadian Natural Resources--$75.22; +1.37; optionable): Canadian oil sands, etc.
http://biz.yahoo.com/p/c/cnq.html
EARNINGS: 11-1-07
STATUS: Breakout test. Nice surge on very strong volume as CNQ broke out from a 7 week cup with handle base the second week of September. Raced higher and then sold Wednesday on a strong volume jump. It held at the 10 day EMA (73.67) Wednesday and Thursday, rebounding off that level Thursday on continued strong volume. A quick test of a strong breakout and now CNQ is ready to move back up. Ready to move in with some new positions as it makes that rebound.
Volume: 3.117M Avg Volume: 1.849M
BUY POINT: $75.55 Volume=2.5M Target=$85.95 Stop=$73.32
POSITION: CNQ AO - Jan. $75c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/cnq.html
CONTINUING POST-SPLIT PLAYS
Play Date: 09/18/2007
BRCM (Broadcom--$36.40; +0.31; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
EARNINGS: 10-19-07
STATUS: Double bottom w/handle. Could not continue the Tuesday move on Wednesday, but after a gap lower Thursday BRCM rebounded for a modest gain. No volume. Need to see that pick up as it continues higher on this move. To recap: 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: 6.031M Avg Volume: 10.916M
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
RESP (Respironics--$48.48; -0.06; optionable): Medical appliances
http://biz.yahoo.com/p/r/resp.html
EARNINGS: 7-25-07
STATUS: Ascending base. Bumping at the breakout point once more though no volume to push it. Still looks super for the breakout move. To recap: 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: 239.227K Avg Volume: 371.505K
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
CONTINUING LEADER PLAYS:
Play Date: 09/18/2007
MA (MasterCard--$149.51; +0.01; optionable): Credit services
http://biz.yahoo.com/p/m/ma.html
EARNINGS: Early November
STATUS: Cup. Showing a doji at the 90 day SMA (148.36) after gapping over that level Wednesday on a second session of strong volume. May take another session or two to finish this test. Just needs to show the next break higher on volume to step in. To recap: 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: 1.947M Avg Volume: 3.629M
BUY POINT: New: $150.45 (orig. $146.65) Volume=3.8M Target=$172.95 Stop=$141.31
POSITION: MAL AI - Jan. $145c (59 delta)
http://www.investmenthouse.com/cs/ma.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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top stock pick
stock split
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