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trade stock, stock split
Begin part 3 of 3
THE PLAYS:
New Pre-Split Plays:
Play Date: 09/27/2007
DKS (Dicks Sporting Goods--$67.49; +0.35; optionable): Sporting goods stores. Splits 2:1 on 10-22-07
http://biz.yahoo.com/p/d/dks.html
EARNINGS: 11-20-07
STATUS: Test 18 day EMA. DKS enjoyed a nice surge in August and September following the breakout form a 4.5 month base. It has come back over the past 6 sessions to test that move, holding near support at the 18 day EMA (67.36). It has held the line there, and we are looking for a bounce higher from this support to continue the run.
Volume: 799.6K Avg Volume: 1.15M
BUY POINT: $68.48 Volume=1.2M Target=$78.85 Stop=$66.68
POSITION: DKS AM - Jan. $65c (63 delta) &/or Stock
http://www.investmenthouse.com/cs/dks.html
Play Date: 09/27/2007
DNR (Denbury Resources--$45.10; +0.48; optionable): Independent oil & gas exploration. Splits 2:1 on a date to be announced
http://biz.yahoo.com/p/d/dnr.html
EARNINGS: 11-1-07
STATUS: Breakout test. Broke higher two weeks back, clearing a nine week base. It rallied nicely up to 46.50 and then made the test back the past week, holding at the 18 day EMA on the midweek intraday lows. Gapped higher modestly Friday, showing a doji over the 10 day EMA. Looks just about ready to resume the breakout run.
Volume: 1.24M Avg Volume: 1.242M
BUY POINT: $45.55 Volume=1.8M Target=$52.50 Stop=$43.55
POSITION: DNR AI - Jan. $45c (56 delta) &/or Stock
http://www.investmenthouse.com/cs/dnr.html
New Post-Split Plays:
Play Date: 09/27/2007
SJR (Shaw Communications--$24.86; -0.22; no options): Cable TV sessions
http://biz.yahoo.com/p/s/sjr.html
EARNINGS: 10-12-07
STATUS: Cup w/handle. Taking another look at SJR as it has set up better, forming a handle the past week to its 8 week base. Used the 50 day EMA as support for the base, showing that buyers stepped in at that key level to support the stock and accumulate some shares. Very low trade so want to see some volume jump as SJR makes the break higher and moves to a new high.
Volume: 216.2K Avg Volume: 459.86K
BUY POINT: $25.65 Volume=690K Target=$30.55 Stop=$24.42
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/sjr.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
ACH: Tentatively set for mid-November
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
CMI: Tentatively 10-25-07
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
TEX: Tentatively 10-25-07. May be a bit early but nice move from a nice pattern.
UA: Forecast 10-30-07
NEW PRE-ANNOUNCEMENT PLAYS
Play Date: 09/27/2007
SYK (Stryker--$68.88; +0.98; optionable): Medical instruments
http://biz.yahoo.com/p/s/syk.html
EARNINGS: 10-17-07
STATUS: Cup. SYK has worked through a 24 week base and is trying to make a higher low above the 50 day EMA to set up a breakout move that will take it to an all-time high. Has been somewhat choppy the past couple of weeks so we want to see a strong break higher on strong volume.
Volume: 1.34M Avg Volume: 1.538M
BUY POINT: $69.48 Volume=2.3M Target=$79.95 Stop=$67.45
POSITION: SYK AN - Jan. $70c (49 delta) &/or Stock
http://www.investmenthouse.com/cs/syk.html
CONTINUING PRE-ANNOUNCEMENT PLAYS
Play Date: 09/25/2007
IBM (International Business Machines--$117.71; +0.41; optionable)
http://biz.yahoo.com/p/i/ibm.html
EARNINGS: Mid-October
STATUS: Cup w/handle. Still working laterally over the 10 day EMA on very low, below average volume as IBM continues its handle, setting up the breakout move. Just waiting for the break higher. To recap: IBM looks close to breaking from its 9 week base formed using the 50 day EMA (114) as support. This is part of a much larger 8 year base, and IBM has moved back up to the top of the pattern. Indeed, the current base looks to be the final shakeout before a breakout and move to a new all-time high. Not bad at all.
Volume: 5.625M Avg Volume: 8.575M
BUY POINT: $118.24 Volume=13M Target=$133.45 Stop=$115.65
POSITION: IBM AC - Jan. $115c (62 delta) &/or Stock
http://www.investmenthouse.com/cs/ibm.html
Play Date: 09/25/2007
RIG (Transocean--$113.81; +2.29; optionable): Offshore drilling
http://biz.yahoo.com/p/r/rig.html
EARNINGS: 10-31-07
STATUS: Test breakout. Took some positions today as RIG gapped higher, showing a solid recovery from the Wednesday pullback. The volume was low so we did not load up just yet. If it breaks higher on strong trade we will look to add some positions. To recap: After the solid breakout last week from the handle of its 8 week cup with handle, RIG is making a nice, easy test on low volume. It tapped near support at the 10 day EMA on the low and rebounded to close modestly higher. Excellent action in its base and it looks ready to follow some excellent money supply growth. Nice base that is perched near an all-time high and ready to send it higher. Strong fundamentals to go with the pattern, and we are looking to add to positions as it breaks higher.
Volume: 2.987M Avg Volume: 6.434M
BUY POINT: $113.25 Volume=8M Target=$126.95 Stop=$110.28
POSITION: RIG AC - Jan. $115c (50 delta) &/or Stock
http://www.investmenthouse.com/cs/rig.html
Play Date: 09/26/2007
SLB (Schlumberger--$105.03; +2.03; optionable): Oil and gas service company
http://biz.yahoo.com/p/s/slb.html
EARNINGS: 10-19-07
STATUS: Breakout test. Gapped higher above the 10 day EMA, holding a nice gain into the close. Volume was very low, however, and we need to see a bump in trade levels on a continued move higher. Like this test of the breakout, however, as a good entry point. To recap: Broke out of its 9 week cup with handle base just over a week back, rallied, and them came back to test, holding at the 18 day EMA (101.89) on the Wednesday intraday low. Just waiting for a break higher to give us a new entry point.
Volume: 6.218M Avg Volume: 9.696M
BUY POINT: $105.22 Volume=11M Target=$120.95 Stop=$102.11
POSITION: SDB AA - Jan. $105c (55 delta) &/or Stock
http://www.investmenthouse.com/cs/slb.html
CONTINUING POST-SPLIT PLAYS
Play Date: 09/26/2007
MTW (Manitowoc--$44.45; +1.17; optionable): Farm and construction machinery
http://biz.yahoo.com/p/m/mtw.html
EARNINGS: 10-31-07
STATUS: Breakout test. Bounced higher on rising but still below average volume. A bit more trade and it is a buy. To recap: A pair of nice tight dojis at the 10 day EMA on low volume as MTW looks just about ready to complete the test of its breakout two weeks back from a 9 week cup with handle base. Nicely formed pattern and a very nice low volume test. Looking for stronger volume as it makes the break higher.
Volume: 1.448M Avg Volume: 1.911M
BUY POINT: $44.44 Volume=2.5M Target=$52.95 Stop=$42.32
POSITION: MTW AV - Jan. $42.50c (75 delta) &/or Stock
http://www.investmenthouse.com/cs/mtw.html
Play Date: 09/26/2007
FTK (Flotek Industries--$44.15; -0.15; no options): Oil and gas service company
http://biz.yahoo.com/p/f/ftk.html
EARNINGS: Early November
STATUS: Breakout test. A nice shakeout Thursday as FTK tested well below the 10 day EMA and then rebounded to close flat, showing a nice tight doji with tail. That may be about all of the test it gives us on this move. To recap: FTK is making its second test at the 10 day EMA (42.96) from the late August breakout from a 7 week base. Strong leader showing solid volume on the upside moves on the breakout and run higher, and now testing on lower trade. Looking for it to hold the line at the 10 day and start back up on stronger trade. That is when we move in.
Volume: 339.9K Avg Volume: 509.463K
BUY POINT: $45.25 Volume=550K Target=$52.95 Stop=$42.85
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/ftk.html
Play Date: 09/18/2007
RESP (Respironics--$48.45; -0.57; optionable): Medical appliances
http://biz.yahoo.com/p/r/resp.html
EARNINGS: 10-25-07
STATUS: Ascending base. Tried to make the move Thursday, gapping higher but rolled over to close at the 10 day EMA. Still looks ready to make the move. To recap: Volume was moving higher Tuesday, moving toward average as RESP bounced off the 18 day EMA (47.83) that it has used for support and bumped up against the buy point. Very solid pattern and ready to make the break higher. Very nice.
Volume: 316.783K Avg Volume: 369.558K
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
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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