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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS:
Upside:
New Post-Split play:
Play Date: 11/14/2007
TEVA (Teva Pharmaceutical--$44.72; -0.52; optionable): Drugs
http://biz.yahoo.com/p/t/teva.html
EARNINGS: Announced 10-30-07
STATUS: Ascending base. TEVA is showing some good price/volume action the past few weeks as it narrows in the end of its 5 month pattern formed using the 90 day SMA and 50 day EMA (44.09) as support. In this market this type of defensive play is where the money is flowing and TEVA is close to breaking to a new all-time high. Want to see strong volume on the move to show the buyers are in and driving it past the late December 2005 high.
Volume: 3.425M Avg Volume: 4.663M
BUY POINT: $45.32 Volume=7M Target=$51.95 Stop=$43.92
POSITION: TVQ CI - Mar. $45c (56 delta) &/or Stock
http://www.investmenthouse.com/cs/teva.html
Downside:
Play Date: 11/14/2007
CAT (Caterpillar--$70.03; -1.04; optionable): Heavy equipment
http://biz.yahoo.com/p/c/cat.html
EARNINGS: Announced 10-19-07
STATUS: Head and shoulders. CAT broke lower last week from a 9 week top, crashing through the 200 day SMA (74.04) as it did. It held at the gap higher point in April of this year, but after gapping higher Wednesday and testing the 10 day EMA (71.97) it rolled over and started back down on rising, above average volume. After the breakdown from the pattern, this failed test at the 10 day EMA indicates there is more downside to come. Looking to step in as it continues lower. A move to the target lands a 38%ish gain. That is a pretty conservative target, and if it is selling fast at that point we will let it continue down toward 65.
Volume: 7.505M Avg Volume: 6.191M
BUY POINT: $69.55 Volume=7.5M Target=$66.11 Stop=$71.21
POSITION: CAT MN - Jan. $70p (-44 delta)
http://www.investmenthouse.com/cs/cat.html
Play Date: 11/14/2007
MS (Morgan Stanley--$55.61; -0.25; optionable): Investment brokerage
http://biz.yahoo.com/p/m/ms.html
EARNINGS: Mid-December
STATUS: Put. After 2.5 months of trying to recover after the August selling, MS collapsed to start November. It has rebounded the past week, gapping higher on Wednesday toward the 18 day EMA (58.43) but as with all stocks it rolled over and closed slightly lower. The rebound was on low volume. Looking for MS to continue back down and when it does we are looking to move in and play the downside. A move to the target lands a 41%ish gain.
Volume: 15.194M Avg Volume: 12.76M
BUY POINT: $54.96 Volume=14M Target=$51.00 Stop=$56.51
POSITION: MS MK - Jan. $55p (-41 delta)
http://www.investmenthouse.com/cs/ms.html
Play Date: 11/14/2007
QQQQ (Nasdaq 100 Trust--$50.09; -0.65; optionable)
http://biz.yahoo.com/p/q/qqqq.html
STATUS: Put. The large cap leadership crumbled last week in a major break of support and the uptrend. When the break came it was dramatic. It broke below the July peak, then rebounded starting Tuesday with the rest of the market. It also gapped higher on Wednesday with the rest of the market but then rolled over to close lower on rising volume in the Q's. Looking for a test of the 200 day SMA (47.66) on this next leg of selling. A move to that point lands a 46%ish gain.
Volume: 263.285M Avg Volume: 148.618M
BUY POINT: $49.88 Volume=200M Target=$47.85 Stop=$50.32
POSITION: UXX XX - Dec. $50p (-44 delta)
http://www.investmenthouse.com/cs/qqqq.html
Play Date: 11/14/2007
TXN (Texas Instruments--$31.07; -0.78; optionable): Semiconductors
http://biz.yahoo.com/p/t/txn.html
EARNINGS: Announced 10-22-07
STATUS: Put. One of the big disappointments in this earnings season, TXN gapped sharply lower on its earnings, breaking down from a head and shoulders base of sorts. It rebounded to fill the gap in late October, then has slipped lower this month. Tried to hold at the late October lows, but after gapping higher to the 10 day EMA (31.91) Wednesday it rolled back over on rising, above average volume, closing at a new low for the month. Looks ready to roll lower and we are ready to move in as it does. A move to the target lands a 42%ish gain.
Volume: 17.895M Avg Volume: 15.002M
BUY POINT: $30.93 Volume=18M Target=$29.12 Stop=$31.22
POSITION: TXN MZ - Jan. $32.50p (-56 delta)
http://www.investmenthouse.com/cs/txn.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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stock split
stock recommendation
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