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, EXPD, MRBK, LSTR, AROW, and IFIN.

DHI ($37.35; +0.74): Forecast to announce a split with a board meeting on 2-26-02. Moved up and hit close the high (37.99), pulling back to close off of the intraday high of 37.71. Not a particularly strong move, and it could test back before a breakout attempt, but we are still looking for a move to 38.09 on volume of 1 million or better, with stock and/or May $35 calls to buy (DHI EG).

GTK ($50.50; +0.02): Working on a new date. Creeping up on low volume toward the high of 51.48. We could get a pullback to the 49-50 range first, but looking for a move over the high on volume of 500,000, with stock and/or June $47.50 calls to buy (GTK FW).

DRI ($41.45; +0.86): We are working on a date. Is holding up well. We are still targeting 44, but after five bounces from the 18 day MVA after a breakout, that often spells a drop, so we are protecting positions.

DRS ($38.97; +2.87): Looked to be ready to dive, taking out the 50 day MVA (56.74) Wednesday, but DRS rebounded strong today on good volume. A good bounce, but the handle high is out at 43. We will see if it settles down a bit and sets up the handle again.

CTAS ($47.37; -0.82): 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. Broke down out of the long lateral consolidation, giving up the 50 day (56.74). The 200 day is below at 54.77.

STU ($87.50; -0.06): Researching a date. Holding up, leveling out over its 10 day MVA (87.28; 18 day at 86.31). 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 ($39.23; -0.21): 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 (86.31). We will see if it can hold and form up again going toward the forecast.

PRE SPLITS WATCHLIST:

BLL ($82.09; -1.33): Splits 2:1 effective February 22. Slight move back down today. BLL has had a great run, and we are protecting positions. Looking at possible support for a consolidation at the 10 day MVA (80.14), although it could visit the 18 day (77.85). If it shows any weakness we are closing out short term trades.

GILD ($65.44; -1.86): Splits 2:1 effective March 8. Fell again, taking out the 50 day MVA (72.75). A bit erratic in its pattern, so we will see if it settles into something playable. The recent high is 71.15, with the high at 73.67.

WERN ($25.70; -1.17): Splits 4:3 on or about March 15. Pulled back to the 50 day (72.75), which has been some support for the stock, although last time down it hit below it (24.75). If it can hold we will see if it will give us a move back up toward the high (29.57).

HTLD ($33.89; -0.98): Splits 3:2 effective 2-20-02. Pulled back from its high (January) of 35.35. Holding the 10 day MVA (33.81), so we will see if it can hold and set up an ascending wedge. On a move over the high, stock and/or March $30 calls to buy (QHK CF - no open interest).

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 AZO (2/26), BBY, EDS, ETH, MI, STJ (4/17) and THQI.

BBBY ($35.09; -0.13): Made the breakout move Wednesday, but on weak volume. Volume kicked in today, but the candlestick was a 'tombstone' doji with strong volume - a recipe for a pullback. We will see if it can hold the 34 level and set up again.

FLIR ($48.63; +0.43): Has been quite volatile, moving back up today on big volume. Looking for it to settle down and set up the next move.

GNSS ($45.00; -2.19): Has dropped back close to its recent low (44). We are watching that level, but could get the drop on down to the 200 day MVA (40.34).

HB ($60.36; +0.25): Managed to hold the 18 day MVA (58.51), making a solid bounce Wednesday. After the hard selling back, however, it does not appear ready to charge ahead, showing a doji today on increased volume. We will see if it can settle down.

LLL ($107.11; +1.50): Took off again Monday, breaking from the pennant it formed after breakout out of its cup. Still riding toward the target of 110, although it could test back to its 10 day after pulling off of its high today at 109.

PII ($55.26; -0.64): Made a strong move last week, but retreated as it reached toward its high (59.92). It is testing the 50 day MVA (55.17), so we will see if it can hold and set up a move back over the high.

TGH ($74.89; -0.17): Has pulled back and is holding the 18 day MVA (74.16), 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.

WLP (126.79; -2.26): Beat the street with earnings Monday and is due for a split. Gapped back to the short-term MVA's (18 day at 125.98) today, holding on for a doji with strong volume (989,400; average 504,000). We will see if it can hold, and look for another bounce. Still riding if it can hold, toward target of 140.

YUM ($56.01; +0.49): Hitting up against its high of 56.20. Volume was down today at 769,200 (average 741,500), so we could see a visit back toward the 54 range before taking out the high.

POST SPLITS WATCHLIST:

CHS ($32.40; -0.83): Split 3:2 effective 1-22-02. Gap up and reversal today on sharply higher volume. Holding the 10 day (31.83) for now, with the 18 day at 30.71. Protecting positions as this pattern can point to a further drop.

MGAM ($27.02; -2.27): Splits 3:2 on February 12. Volatile now, pulling back after hitting a new high (30.81) made Wednesday. Former highs are here with the short-term MVA's (21.44), so we will see if it can hold.

SONC ($25.50; +0.06): Splits 3:2 effective 2-11-02. Edging up and looks like it needs to come back for a visit to the 18 day (24.77).

XRAY ($33.40; -0.07): Split 3:2 effective February 1. Got the bounce from the 50 day, but volume was weak and today it pulled back for a 'star' doji after hitting 34.02 at its high. We will see if it can hold the 50 day and then make a run on its high at 34.55.

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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