stock split, stock recommendation

Begin Part 3 of 3

WATCHLISTS: Many of these have made such good moves lately we have put them here to look for the next entry point.

PRE-ANNOUNCEMENTS WATCHLIST: BRL, NDN, MRBK, LSTR, AROW, IFIN (4/16), and WLP.

EXPD ($57.02; -2.34): Working on a date. Gapped down but held the 50 day MVA (56.77), moving on increased volume (414,100; average 350,000). The aggressive can try a bounce over the short-term MVA's (58.50), with the pattern high ahead at 61.30. Stock and/or May $55 calls to buy (URP EK).

DRI ($40.62; -0.66): We are working on a date. Another nice bounce from the short-term MVA's (10 day at 40.04) Monday, hitting the aggressive buy point. Retreated a bit on lower volume today, and we are continuing to ride positions on a hold of the short term averages (18 day at 39.36). Target is 44, and there have been five bounces from the 18 day MVA after a breakout, and that often spells a drop, so we are protecting positions.

DRS ($37.10; -1.70): Could not hold the 18 day (38.23), which was support in its handle to its 3-month cup. It is now closing on the 50 day MVA, at 36.43.

CTAS ($48.23; -1.77): Announces earnings on 3-14-02 before the open, but they typically announce with a board meeting. There was such a meeting in late January, but they also could announce in late February when they announce anticipated earnings. We have been looking for a break from the long lateral consolidation, but today CTAS sold back hard to its 50 day MVA (48.19). We will see if it can hold and try to continue in the pattern.

RARE ($24.98; -0.27): Forecast to announce a split on 2-19-02 with earnings. The company has not confirmed the date. Has pulled back in the handle but is holding the 50 day MVA (24.23). It rebounded from that support on its intraday low Friday on good volume, but is just under the short-term MVA's (25.63), and the handle high is 27.05. Breakout: 27.15 on volume of 375,000 or higher (there is an intraday spike as the handle first formed at 27.50), with stock and/or May $22.50 calls to buy (QRH EX).

STU ($88.02; +0.22): Researching a date. Holding up as it continues to trend up along its short-term MVA's (10 & 18 day at 87.15 and 86.01). Protecting positions from here, perhaps looking to take some money off of the table on a move down, but we will continue to ride at least some positions as long as it holds the 18 day.

INVN ($39.07; -2.53): Forecast to announce a split on 2-28-02 with a special meeting to increase authorized shares. Looks like INVN could need some time to regroup and settle out over the 18 day MVA (38.33). We will see if it can hold and form up again going toward the forecast.

PRE SPLITS WATCHLIST:

BLL ($82.00; +0.69): Splits 2:1 effective February 22. Just continues to make it way upward, and we are still protecting positions from a possible drop. Looking at possible support for a consolidation at the 10 day MVA (78.89), although it could visit the 18 day (76.64). If it shows any weakness we are closing out short term trades.

GILD ($68.27; +0.65): Splits 2:1 effective March 8. Has fought back over its 50 day (66.20), closing over its each of the last three sessions. Back in its recent range, having hit the aggressive buy point. The recent high is 71.15, with the high at 73.67.

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. These include ACS, BBY, EDS, ETH, MI, STJ and THQI.

APPB ($35.69; -0.68): Again tapped its 50 day at its low of 34.60, recovering to close near the 18 day (63.81) and the pattern center of its small, recent double bottom. The aggressive play is a bounce over 37 on continued strong volume (491,400 today; average 406,000), with stock and/or May $35 calls to buy (AQB EG).

BBBY ($33.84; -0.39): Still in the handle of its shallow double bottom (formed since early December), and the right side of the pattern now is shaping up as an ascending wedge. We are still looking at a breakout buy point of 35.05 on volume of 5 million, with stock and/or ay $32.50 calls to buy (BHQ EZ).

GNSS ($46.85; -3.31): After last week's huge drop GNSS has made a move back up toward its down trendline (with the 10 day MVA at 52.08), but it could only reach 50 and is heading back down again, today making another solid retreat. The recent low is 44, and we could get a move down to the 200 day MVA, at 39.97.

HB ($58.05; -1.42): Could not hold up on the breakout test, dropping through the former pattern highs on increased volume and landing on the 18 day MVA. Had been setting up well, so we will see if it can hold on and try again.

LLL ($106.33; -0.72): Took off again Monday, breaking from the pennant it formed after breakout out of its cup. Still riding toward the target of 110, and we can look at new or additional positions if the stock continues to trend along the short-term MVA's (10 dy has been recent support at 102.80; 18 day at 100.15). It could dip back after todays' doji on increased volume (1.01 million; average 3.08 million).

PII ($55.86; -1.13): Made a strong move last week, but retreated as it reached toward its high (59.92). It is moving back to test the 50 day MVA (94.08), so we will see if it can hold and set up a move back over the high.

TGH ($75.14; +0.68): Has pulled back and is holding the 18 day MVA (73.96), perhaps forming a handle to its 13 month cup pattern. Volume has been heavy, so we will see if it can hold the 18 day and settle down into a nice handle to set up the next move.

TGIC ($41.49; -0.29): Made a small breakout move, pulling back the last couple of sessions but holding over its 10 day MVA (tapped today at its low of 40.90). Aggressive on a move over the recent high of 42.39 on continued strong volume (50,200; average 43,800), with stock only.

THC ($64.44; +0.64): THC tapped its 50 day (62.12) Monday, but bounced back on huge volume to close at the 18 day (63.81). A weak bounce from that level today, so we will see if the stock can continue to hold the 18 day to set up a run over the high (66.40).

YUM ($53.67; -0.64): Did not get the announcement today with earnings. YUM gapped up but retreated, closing below the recent support of the 18 day MVA (53.96), and is perhaps headed for the 50 day (52.21) after the high volume action today (905,000; average 724,000). We will see if it can hold and set up another move.

POST SPLITS WATCHLIST:

CHS ($32.99; -0.51): Split 3:2 effective 1-22-02. Pulled back a bit today, but this has been quite a run. Looking for CHS to hold the 10 day MVA (31.36) on a pullback, although it could need to test the 18 day, at 30.19.

HOTT ($20.87; -0.20): Split 3:2 effective February 7. Dropped hard going into the split, but bounced back off the 200 day (22.46) last week, now encountering resistance at the 50 day (27.35). Downside is most likely from here, and on a drop through the 200 day with continued strong volume, March $23.38 puts to buy (IHU OX).

MGAM ($29.18; +2.11): Splits 3:2 on February 12. A good move on the split, reaching a new high intraday at 29.99. At this point, MGAM could need a rest (the move started at 23). We will see if it holds up and sets up a continuation of the run.

SONC ($25.32; +0.06): Splits 3:2 effective 2-11-02. Gapped up and reversed today, so we will see if a continued retreat holds support at the 18 day MVA (24.59), or continues to the 50 day, at 23.78.

XRAY ($32.63; -0.07): Split 3:2 effective February 1. Holding the 50 day (23.78), but now stymied under the short-term MVA's (24.85). Volume moved up to 446,000 (average 198,500) with the loose doji today, so we will see if it can bounce. For aggressive positions we can look at a move over 33.50 on continued strong volume, with stock and/or April $30 calls to buy (RHE DF).

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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