stock split, stock research

Begin part 2 of 2

PLAYS TO LOOK AT: Some plays set up really nice.

BONUS PLAYS: DRIV made a big move down on the put play! WBST showed more strength.

RMCI (Right Mgmt Consultants--$23.99; +1.99; optionable): Business services.
http://biz.yahoo.com/p/r/rmci.html
STATUS: RMCI is in a cup with handle, formed since the stock hit a high of 27.45 in mid-November. In the handle it has pulled back to the support of its 18 day MVA (21.66), and today made a big move up toward the handle high (24.19). Volume continued to be low at 259,000 (average 331,200), so we are looking for a breakout move with stronger volume. Target: 28.
BUY POINT: 24.29 on volume of 500,000. Stop: 22.59.
POSITION: Stock and/or July $20 calls to buy (UHU GD).

WTSLA (Wet Seal--$29.65; +0.55; optionable): Retail apparel.
http://biz.yahoo.com/p/w/wtsla.html
STATUS: Broke out of a large double bottom in January, and made another strong move on a test of the breakout earlier this month. It hit up to 30.18, and then pulled laterally since on steadily decreasing volume (at 127,000 today; average 343,860). Today WTSLA tapped below the 10 day MVA (28.92), but pushed back up. Looking good in this little consolidation, and we are looking for a breakout. Target: 35.
BUY POINT: 30.28 on volume of 465,000. Stop: 28.16 (7%)
POSITION: Stock and/or June $20 calls to buy (WTQ FE; low open interest).

PTV (Pactiv Corporation--$18.40; +0.41; optionable): Conglomerates.
http://biz.yahoo.com/p/p/ptv.html
STATUS: Has been in a solid uptrend for over a year and a half. After dipping below its 50 day MVA (17.64) in mid-January, PTV has recovered and used that level as support as it forms an ascending wedge. The 20 range has been resistance, with the stock hitting 18.60 at its high twice in the last week, with the high in the pattern at 18.65. Today it reached up to 18.60, moving on increased volume (696,700; average 571,800). Looking good as volume increases steadily on this latest move up from the 50 day, and we are now looking for a breakout. Target: 24.
BUY POINT: 18.75 on volume of 772,000. Stop: 17.45.
POSITION: Stock and/or May $17.50 calls to buy (PTV EW).

MARKET FAVORITES: YHOO and PWAV dipped through their put buy points, but rebounded with the market. They are at resistance, so we will see if they stall out. We are also keeping our eyes on LUV, which broke out from a reverse head and shoulders. It is right at the level where we would chase a breakout.

KLAC (Kla-Tencor--$59.77; +1.30; optionable): Semiconductor equipment.
http://biz.yahoo.com/p/k/klac.html
STATUS: Has pulled back to test the breakout from its double bottom with handle (dating back to early December). The breakout hit 62.29, and we looked at KLAC last week as it tried to hold 60, but it pulled back more. However, the test has held the 18 day MVA (57.53), and today it moved back up off that level on very strong volume (14.85 million; average 8.83 million). Looking for a continued run that takes out its high. Target 70.
BUY POINT: Over 61 on continued strong volume. Stop: 56.82 (7%).
POSITION: June $55 puts to buy (KCQ FK).

PRE-ANNOUNCEMENTS: LSTR could be ready for its move. AROW made a move up, XL found support, and BMS is still looking pretty good.

DIAN ($62.25; +0.69): Forecast to announce a split with earnings on 2-21-02 before the open. Looking for a split announcement, and DIAN is holding up over support of its 10 day MVA (60.88). Today it moved back up in the handle to its cup, with volume down at 205,300 (average 264,100). Closed at our aggressive buy point, but the volume was not what we wanted. An announcement could generate a move, and with that news and a move over 62.75 on increased volume, stock and/or May $60 calls to buy (UID EL). The breakout is 63.88 on volume of 400,000, with the same positions.

SLM ($92.20; +0.77): Researching a new date, and we are looking now at a board meeting that our research shows will be in early April. Tapped down to its 18 day MVA at its low of 89.70, but rebounded nicely and on big volume (1.22 million; average 715,400). A good recovery and still a nice handle-type consolidation, with the buy point 93.95 on volume of 970,000, with stock and/or July $90 calls to buy (SLM GR).

AZO ($68.00; +2.07): Forecast to announce a split with earnings. Our research indicates that the release will be 2-26-02 before the open. AZO moved up toward the high in the ascending wedge, but although volume was up, it was remained rather light (794,800; average 1.16 million). Going toward the announcement the buy point is the same, but we want the strength of volume behind it. 68.40 on volume of 1.6 million, with stock and/or June $60 (AZO FM).

STU ($88.20; +0.08): Continuing to research a possible date. Showed another doji over the 10 day MVA (87.66), but today got a massive volume spike (60,300; average 14,000). Good consolidation, and looking for the breakout, which is a move over 89 on minimum volume of 19,000, with stock.

EXPD ($52.92; -2.59): Had drifted back toward the 200 day (54.85), but today crashed through that support. Volume was huge on the selling at 1.45 million (average 320,000), but the stock pulled back up off of its intraday low of 51.29. It could rally back a bit more on a relief bounce, but we are looking for the move to fail in the 54 range, and on a drop back through 52.90, we can look at a put play down to a target of 46. There is some possible support from a consolidation at 50 that we will watch. May $60 puts to buy (URP QL). .

PRE-SPLITS: BLL continues it amazing run.

BSYS ($64.15; +2.56): Splits 2:1 effective 2-25-02. Getting close to the split, and today BSYS made the bounce move we were looking for. Riding the positions up to resistance at 66, watching with care at that point.

CONTINUING CANDIDATES: A lot of plays looking good, including DHR, RARE and STJ. APPB continued its solid move down on the put, and LLL surged yet again. THC bounced slightly but still looks weak, and WLP still looks like it could bounce.

TGIC ($41.85; +0.35): Still in a nice consolidation, again testing near its 18 day MVA today at its low of 41. It closed with another doji, with big volume behind it at 96,200 (average 42,500). Looking for the breakout, which is a move over 42.39 on minimum volume of 58,000, with stock.

TGH ($74.98; +0.02): Another doji over the support of its 18 day MVA (74.39), showing solid volume again (up to 257,100; average 192,200) with a doji after recovering from a low of 73.70. Looking at a move from here over 76 on above average volume. Th breakout is over the recent high at 79, with volume of 300,000. Stock and/or July $70 calls to buy (TGH GO - under 100 open interest).

HB ($60.29; +0.90): Moved back up in the pennant it has formed after the breakout move, and volume was behind it at 197,500 (average 134,500). From here, still looking at a move over 60.95 on minimum volume of 185,000, with stock and/or June $55 calls to buy (HB FK - under 100 open interest).

FLIR ($51.20; +3.56): Big move! FLIR slammed through our buy point, with lots of volume behind it (1.12 million; average 330,600). Closed at a new high (intraday high of 52.25), and still a buy up to 52.50, with stock and/or July $45 or $50 calls to buy (FFQ GI or FFQ GJ).

POST-SPLITS: XRAY made a good bounce.

VAR ($39.36; +0.17): Split 2:1 on 1-16-02. Remains over support, edging back up off of its 10 day MVA (39.16) on increased volume (487,800; average 345,200). Looking for a move over 40 with volume in the 500,000 range. Stock and/or May $35 calls to buy (VAR EG).

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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