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us stock market, stock split
Begin part 3 of 3
THE PLAYS: Looking at some stocks that held up well during the selling and are good defensive stocks for a weaker market. On a market rebound we will look at some new downside positions.
New Post-Split:
Play Date: 11/08/2007
VIP (Vimple Communication--$32.85; +2.42; optionable): Russian wireless telecom
http://biz.yahoo.com/p/v/vip.html
EARNINGS: Late November
STATUS: Test 18 day EMA. Broke higher in late August clearing a short 7 week base. Nice rally up the 18 day EMA with a big surge to end October. It came back to test the past week with a gap lower but it held the 18 day EMA and consolidated a bit on lower trade. Nice strong volume and price break higher Thursday in a weak market. Foreign telecom is working.
Volume: 4.943M Avg Volume: 3.21M
BUY POINT: $33.04 Volume=3.2M Target=$39.85 Stop=$31.11
POSITION: VIQ DF - Apr. $30c (68 delta) &/or Stock
http://www.investmenthouse.com/cs/vip.html
Play Date: 11/08/2007
XRAY (Dentsply--$43.99; +0.90; optionable): Medical instruments and supplies
http://biz.yahoo.com/p/x/xray.html
EARNINGS: Announced 11-1-07
STATUS: Test 18 day EMA. Good market for XRAY as things turn a bit defensive. It broke out from an 8 week base in September, then came back to test the 50 day EMA to end October, right before it announced earnings. The results were great and XRAY blasted higher on the news. It spent the past week of selling easing back on low volume to test that move. Thursday it tapped the 18 day EMA on the low (42.82) and rebounded on strong, above average volume to post a solid gain. Looking to move in as XRAY continues higher.
Volume: 1.332M Avg Volume: 880.42K
BUY POINT: $44.39 Volume=885K Target=$51.95 Stop=$42.72
POSITION: XEQ DH - Apr. $40c (72 delta) &/or Stock
http://www.investmenthouse.com/cs/xray.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: Finally cracked. Will have to see how it recovers and if it can give us a new buy point before January and a likely split announcement then.
ACH: Tentatively set for mid-November. Quite the plunge the past three weeks has taken it out of the picture.
ATK: Giving us the test of the breakout, holding the 10 day EMA Thursday in the market selling.
ATW: Likely to announce in January. Looking ready to make the bounce.
BIDU: As with AAPL, BIDU cracked on Thursday. So glad we took the gain off the table on Wednesday.
BUCY: No announcement with earnings, but after a bit of volatility it is ready for more upside.
CNQ: Still strong even with no split announcement.
DVN: Forecast 11-7-07. No split but holding near support.
EDU: Sold off strong then rebounded rather nicely.
ISRG: Looking to pinpoint a date.
JEC: Nice surge on good volume as it announced strong earnings. Still like it for a split announcement and simply a great run higher.
JOYG: Researching date. Likely around earnings in mid-December
PCP: Researching date.
RIG: Nice test setting up a new buy.
SID: Tentatively set for mid-November
SRDX: Researching date. Falling back to the 50 day EMA.
STLD: Researching date. Excellent test even in this market.
SU: Researching date. Nice test as well after that strong Tuesday move higher
XTO: Researching date. Sold hard Wednesday but held some support Thursday.
NEW PRE-ANNOUNCEMENT PLAYS
New buy point:
Play Date: 10/25/2007
DE (Deere & Co.--$157.91; +3.59; optionable): Farm and construction machinery
http://biz.yahoo.com/p/d/de.html
EARNINGS: 11-21-07
STATUS: Breakout test. DE showed its strength this week, holding gains as the market sold off. It did sell back, but it held near support at the 10 day EMA and bounced Thursday on rising, above average volume. Excellent action as it forms a short 4 week base that gave it a rest and test of the 50 day EMA after the late August breakout from a base and run up the 10 day EMA. Money flow remains strong and so does DE. Looking to move in as it breaks higher once more.
Volume: 2.621M Avg Volume: 2.634M
BUY POINT: $154.63 Volume=3M Target=$169.65 Stop=$157.32
POSITION: DE AJ - Jan. $150c (52 delta)
http://www.investmenthouse.com/cs/de.html
Play Date: 11/08/2007
EOG (EOG Resources--$88.12; +1.42; optionable): Independent oil and gas
http://biz.yahoo.com/p/e/eog.html
EARNINGS: Announced 10-29-07
STATUS: Test breakout. EOG gapped higher on its earnings, clearing an 18 week cup with handle base. It rallied to 90 on the breakout and then moved laterally the past week, consolidating the breakout but refusing to give up any gains. Solid price/volume action as it moves laterally shows the accumulation continues as it consolidates. Strong money flow is leading higher and looking to move in as EOG continues the breakout move after this test during the market selling, a test where it lost no ground.
Volume: 3.112M Avg Volume: 2.683M
BUY POINT: $88.89 Volume=3.2M Target=$101.95 Stop=$85.89
POSITION: EOQ DQ - Apr. $85c (68 delta) &/or Stock
http://www.investmenthouse.com/cs/eog.html
Play Date: 11/08/2007
ESI (ITT Educational--$130.47; +6.59; optionable): Education and training
http://biz.yahoo.com/p/e/esi.html
EARNINGS: Announced 10-25-07
STATUS: Ascending base breakout. Strong volume Thursday as ESI ignored the selling altogether and broke out from a 17 week base formed using the 50 d
On the lows as support. Excellent action taking ESI to a new all-time high. Looking to move in as ESI continues this solid move.
Volume: 689.54K Avg Volume: 443.256K
BUY POINT: $130.91 Volume=500K Target=$149.95 Stop=$126.95
POSITION: ESI AF - Jan. $130c (55 delta) &/or Stock
http://www.investmenthouse.com/cs/esi.html
Play Date: 11/08/2007
MICC (Millicom Cellular--$109.21; +1.67; optionable): Foreign cellular services
http://biz.yahoo.com/p/m/micc.html
EARNINGS: Announced 10-23-07
STATUS: Breakout test. MICC used the market selling this week to come back to the 18 day EMA (105.77) and test the mid-October breakout from its 15 week cup with handle base. Nice tap at the 18 day EMA on the Thursday low and rebounded for a nice gain on rising, above average volume. Looks as if the test is over and ready to move in as it makes the break higher.
Volume: 1.117M Avg Volume: 824.48K
BUY POINT: $111.04 Volume=1.2M Target=$130.95 Stop=$107.55
POSITION: CQD AD - Jan. $110c (55 delta) &/or Stock
http://www.investmenthouse.com/cs/micc.html
New buy point on current position:
Play Date: 11/08/2007
RIG (Transocean--$126.51; +0.72; optionable): Offshore drilling
http://biz.yahoo.com/p/r/rig.html
EARNINGS: Announced 10-31-07
STATUS: Breakout test. Basically immune to the selling, RIG cleared the highs in a 13 week base to end October and surged higher through Wednesday when it reversed off its high and started the test of the move. Thursday it sold down to the 10 day EMA (123) on the low and then rebounded for a modest gain. Looking to move in as RIG continues higher. Still early in the breakout move.
Volume: 7.404M Avg Volume: 6.455M
BUY POINT: $127.05 Volume=7M Target=$142.00 Stop=$122.65
POSITION: RIG BE - Feb. $125c (61 delta) &/or Stock
http://www.investmenthouse.com/cs/rig.html
CONTINUING PRE-ANNOUNCEMENT PLAYS
Play Date: 11/06/2007
BUCY (Bucyrus International--$83.84; -0.54; optionable): Heavy equipment (draglines, cranes, etc.)
http://biz.yahoo.com/p/b/bucy.html
EARNINGS: Announced 11-1-07
STATUS: Cup w/handle. Held up very well in the market selling, tapping at and holding the 10 day EMA on the low and rebounding. Nice test after the strong break higher Monday and Tuesday. Looking for a next break higher to move into the position. To recap: Broke higher in late October a week ahead of its earnings, clearing a 13 week base. It got caught in some selling but held the 18 day EMA to start the month in that heavy selling last Thursday. It found support, however, and rebounded, moving off that level on some strong volume Tuesday. Very nice action as BUCY looks to have found its way out of this base. Ready to move in as it continues the run higher and into new all-time high territory.
Volume: 534.415K Avg Volume: 629.965K
BUY POINT: $86.54 Volume=650K Target=$99.95 Stop=$81.32
POSITION: HBU AQ - Jan. $85c (59 delta) or HBU DR - Apr. $90c (48 delta) &/or Stock
http://www.investmenthouse.com/cs/bucy.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 11/06/2007
APC (Anadarko Petroleum--$59.57; +0.47; optionable): Independent oil and natural gas
http://biz.yahoo.com/p/a/apc.html
EARNINGS: Announced 11-5-06 after the close
STATUS: Test breakout. Big doji Thursday as APC started higher, tested the 18 day EMA on the low, jumped up to 61.22 on the high, then closed in the middle. Huge volume on the action. Still looking for APC to make the break higher. To recap: After breaking from a 16 week cup base in mid-October, APC formed a 4 week ascending base. Tuesday it made the break higher on stronger, above average volume, clearing to a new closing high. After a good basing period the independent energy companies are starting to break higher. Ready to move into APC as it continues this move to a new high.
Volume: 8.428M Avg Volume: 4.191M
BUY POINT: $60.15 Volume=5M Target=$69.95 Stop=$57.88
POSITION: APC BL - Feb. $60c (53 delta) &/or Stock
http://www.investmenthouse.com/cs/apc.html
Play Date: 11/07/2007
PPDI (Pharmaceutical Product Dev.--$41.03; +0.37; optionable): Contract research for drug development and discovery
http://biz.yahoo.com/p/p/ppdi.html
EARNINGS: Announced 10-23-07
STATUS: Test breakout. Nice big doji with tail on Thursday as PPDI used the market selling to complete the test of its strong breakout. Just waiting for the break higher; good stock for a defensive market. To recap: PPDI formed a nice handle in October and its earnings propelled it to the breakout from a large 15 month cup with handle base. Nice strong volume on a big surge higher. It has come back to test this week, using the market selling to test back to the 18 day EMA on the Wednesday close. Volume was low on the test so we know there was not much selling. This stock tends to move on low volume, so when we see a high volume breakout it means there is something solid behind it. Looking for it to hold and then rebound on some better (not a whole lot, however) volume to move in.
Volume: 1.142M Avg Volume: 808.37K
BUY POINT: $41.42 Volume=950K Target=$47.75 Stop=$40.41
POSITION: PJQ DH - Apr. $40c (56 delta, low OI) &/or Stock
http://www.investmenthouse.com/cs/ppdi.html
Play Date: 11/05/2007
SCSC (Scansource--$34.49; -0.12; optionable): Specialty technology products
http://biz.yahoo.com/p/s/scsc.html
EARNINGS: Announced 10-25-07
STATUS: Breakout test. Nice tap at the 18 day EMA on the Thursday low and then a rebound to flat. Nice test and still looking for a break higher to move in. To recap: Strong break higher on the earnings results, gapping out of a 17 week double bottom with handle base. It has come back to test the move, tapping at the 18 day EMA on the Monday low. Has not filled the gap but was moving up after it opened lower, and it may be some time before it does fill it. In other words, if it is moving higher on volume from here we won't wait for the fill as SCSC moves toward a bigger breakout from a 3 year base to a new all-time high.
Volume: 166.608K Avg Volume: 253.786K
BUY POINT: $36.11 Volume=375K Target=$42.95 Stop=$33.95
POSITION: UHI CG - Mar. $35c (55 delt, 66 OI) &/or Stock
http://www.investmenthouse.com/cs/scsc.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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us stock market
stock split
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