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us stock market, trade stock
Begin part 3 of 3
THE PLAYS:
New Post-Split Play:
Play Date: 12/06/2007
SCSC (Scansource--$36.50; +1.84; optionable): Wholesale specialty technology products
http://biz.yahoo.com/p/s/scsc.html
EARNINGS: 1-24-07
STATUS: Reverse head and shoulders. Breaking higher Thursday on rising volume, but still below average, as it moves toward the breakout from its 6 week base. Used the 50 day EMA on the low as support, showing investors stepping in at that level. Gapped higher in late October on earnings, clearing a 4 month base. It filled the gap on the low in this pattern, so that is behind it. Now looking for another new all-time high as SCSC continues the break higher. Looking for a bit more volume as it does.
Volume: 181.136K Avg Volume: 209.382K
BUY POINT: $36.78 Volume=314K Target=$42.38 Stop=$34.48
POSITION: UHI CG - Mar. $35c (58 delta, low OI) &/or Stock
http://www.investmenthouse.com/cs/scsc.html
New Leader Plays:
Play Date: 12/06/2007
BIDU (Baidu.com--$392.88; +0.71; optionable): Chinese Google
http://biz.yahoo.com/p/b/bidu.html
EARNINGS: Third week of January 2008
STATUS: Double bottom w/handle. Working laterally the past week on lower, below average volume as it forms the handle to its 5 week base. It used key support at the 50 day EMA (333) on the low and is now setting up for the breakout move. It has made us some big money on past runs, and looking for volume to jump higher as BIDU makes the break from this pattern.
Volume: 5.972M Avg Volume: 7.656M
BUY POINT: $395.22 Volume=9M Target=$454.00 Stop=$389.89
POSITION: BPJ AT - Jan. $400c (52 delta)
http://www.investmenthouse.com/cs/bidu.html
Play Date: 12/06/2007
STP (Suntech Power Holdings--$75.40; -1.78; optionable): Solar power
http://biz.yahoo.com/p/s/stp.html
EARNINGS: Announced 11-15-07
STATUS: Test 10 day EMA. Broke out in October and has rallied up the 10 and 18 day EMA. After a nice strong surge to end November that cleared some resistance at 70, it has come back the past week to again test the 10 day EMA (74.57), bouncing back after undercutting that level Thursday. Looking for this to hold it and send it back higher on its next run.
Volume: 3.817M Avg Volume: 4.242M
BUY POINT: $76.45 Volume=5.5M Target=$88.95 Stop=$73.88
POSITION: STP CO - Mar. $75c (54 delta) &/or Stock
http://www.investmenthouse.com/cs/stp.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: Looking for an announcement in January.
ATK: Looking for a February announcement.
ATW: Likely to announce in January.
BUCY: Breaking higher off the 10 day EMA.
COST: Forecast mid-December
EOG: Anticipating an announcement in late January
HRS: Looking to January for an announcement.
ISRG: Looking to pinpoint a date.
MA: Forecast late January
MICC: Tentatively forecast for mid-December.
MON: Researching the date.
OTEX: Forecast early 2008
RIG: On the rebound after that gap lower.
SID: Strong move higher as SID gapped to the upside Wednesday
STLD: Researching date. Exploding higher.
STT: Forecast mid-January
NEW PRE-ANNOUNCMENT PLAYS
Play Date: 12/06/2007
SGR (Shaw Group--$65.97; +2.06; optionable): Construction of power plants (nuclear, etc.)
http://biz.yahoo.com/p/s/sgr.html
EARNINGS: 1-24-07
STATUS: Reverse head and shoulders. SGR dumped hard three weeks back from a short double top. This followed the nice early October breakout from a solid 3 month cup with handle base. The dump lower was hard, but it caught itself at the 90 day SMA and has formed up the current base. Strong volume Thursday as it gapped lower but then recovered for a solid gain. Looks solid to continue the move higher toward that prior high up at 76.
Volume: 1.969M Avg Volume: 1.316M
BUY POINT: $66.57 Volume=1.8M Target=$76.85 Stop=$63.88
POSITION: SGR AM - Jan. $65c (56 delta) or SGR DN - Apr. $70c (51 delta) &/or Stock
http://www.investmenthouse.com/cs/sgr.html
Play Date: 12/06/2007
UPL (Ultra Petroleum--$68.05; +2.18; optionable): Independent oil and gas
http://biz.yahoo.com/p/u/upl.html
EARNINGS: Late January
STATUS: Test 50 day EMA. UPL has put in a double bottom of sorts the past three weeks at the 50 day EMA, a level that sits right on top of the May high that marks the top of its 5 month base it broke from in early October. Nice test of the breakout and hold at the key support. Broke higher Thursday but volume did not follow it. Looking for some stronger trade as it continues the move.
Volume: 865.501K Avg Volume: 1.15M
BUY POINT: $68.65 Volume=1.5M Target=$78.95 Stop=$66.11
POSITION: UPL CM - Mar. $65c (66 delta) &/or Stock
http://www.investmenthouse.com/cs/upl.html
CONTINUING PRE-ANNOUNCEMENT PLAYS
Play Date: 11/29/2007
HRS (Harris Corp.--$62.93; +1.15; optionable): Telecom equipment
http://biz.yahoo.com/p/h/hrs.html
EARNINGS: Announced 11-1-07
STATUS: Still working laterally along the 50 day EMA (60.89), trying to find the bids to take it higher and onto a new all-time high. Money flow is surging higher ahead of price and we are looking for volume to jack up and follow it and price higher.
Volume: 743.678K Avg Volume: 802.911K
BUY POINT: $63.55 Volume=1.2M Target=$70.95 Stop=$61.48
POSITION: HRS BL - Feb. $60c (59 delta) &/or Stock
http://www.investmenthouse.com/cs/hrs.html
Play Date: 12/01/2007
STT (State Street--$79.84; +1.92; optionable): Regional bank
http://biz.yahoo.com/p/s/stt.html
EARNINGS: Mid-January 2008
STATUS: Ascending base. Broke higher Thursday off a test of the 18 day EMA (77.30) where it made a higher low in its 6 week base. Has used the 50 day EMA on the move as support, and this higher low often signals the last test before the breakout. Nice price move Thursday and just looking for some more volume to accompany it.
Volume: 2.776M Avg Volume: 4.703M
BUY POINT: $80.42 Volume=7M Target=$90.50 Stop=$78.21
POSITION: STT BP - Feb. $80c (48 delta) &/or Stock
http://www.investmenthouse.com/cs/stt.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 11/17/2007
DRQ (Dril-Quip--$57.62; +1.17; optionable): Oil and gas service company
http://biz.yahoo.com/p/d/drq.html
EARNINGS: Announced 11-1-07
STATUS: Breakout test. Volume surged on Thursday as DRQ gapped lower but held the range and then reversed to close with a solid gain. Looks to have made the turn off the lows and is ready to rally again. To recap: Showing outstanding strength in the energy market. DRQ exploded higher to start November, propelled by some strong earnings. The move blasted it out of a 6 month base. It made a nice 10 point surge on the breakout run, and then spent the past two weeks testing that move during the market selling. It held near support at the 18 day EMA (56.70) the past week, holding the 18 day with a doji. Excellent action and looking for DRQ to hold this near support this week and then resume the breakout move once more. We are looking to buy into that move.
Volume: 799.584K Avg Volume: 574.045K
BUY POINT: $57.89 Volume=795K Target=$67.95 Stop=$55.48
POSITION: DRQ CK - Mar. $55c (63 delta, 163 OI) &/or Stock
http://www.investmenthouse.com/cs/drq.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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