us stock market, stock watch

Begin Part 3 of 3

WLP (Wellpoint Health Networks--$126.06; +0.01; optionable): Announced a 2:1 split, effective March 15!
http://biz.yahoo.com/p/w/wlp.html
BACKGROUND: Based upon our research it does not appear that WLP has ever split its stock. The annual shareholder meeting was on 5-8-01 at which time no additional shares were authorized. The company has sufficient shares for a 2:1 split.
STATUS: We have been looking for the elusive split, and finally got it after hours today! WLP has been riding along its 18 day MVA (126.16), having recently broken out of a cup and to a new high. We were looking at a bounce play this week, and Thursday WLP showed a loose doji just under the 18 day, and with the 'shooting star' configuration could still be set up for a strong move. We are targeting our longer-term positions for 140, and from here with the news we can continue to look for a bounce play, initially targeting 134 on the quick play, but on a continued show of strength can ride up to 140. BUY POINT: A move over 127.50 on increased volume (573,600; average 519,000).
POSITION: April $120 calls to buy (WLP DD).

PMI (Pmi Group--$69.91; -0.60; optionable): Surety & Title Insurance. Announced a 2:1 stock split today, effective date to be determined!
http://biz.yahoo.com/p/p/pmi.html
STATUS: Has been steadily trending up its 18 day MVA (70.26) as it moves up in the right side of its cup pattern (dating back to June, with the left side high at 74.50; all-time high at 74.94). It closed back below the 18 day today, with volume low on the selling (175,600; average 236,000). Looking for the news to spur another bounce, but we will be protective of profits as PMI has been looking like it could be time to test the 50 day (currently at 67.97). On a bounce, targeting 76 on a potential quick play, watching the high carefully.
BUY POINT: Bounce: A move over 70.80 on above average volume. Stop: 67.75.
POSITION: Stock and/or June $65 calls to buy (PFI FM).

HB (Hillenbrand--$59.86; -0.43; optionable):
http://biz.yahoo.com/p/h/hb.html
BACKGROUND: Based upon our research it does not appear that HB has ever split its stock. The company has sufficient shares for a 2:1 split.
STATUS: Tightening up in a pennant pattern, today pulling back slightly on lower volume (115,800; average 136,200) but holding support at the 10 day MVA (59.61). HB made a big breakout move at the beginning of this month, moving from a jagged cup with handle. The test back moved below the former breakout point, but it did catch the 18 day (currently 59) for another attempt at a move. We were looking at a possible formation of a pennant then, and the pattern has set up nicely.
BUY POINT: From here: Over 60.95 on volume of 185,000. Stop: 56.78 (7%).
POSITION: Stock and/or June $55 calls to buy (HB FK - under 100 open interest).

FLIR (Flir Sys--$52.27; +1.07; optionable):
http://biz.yahoo.com/p/f/flir.html
BACKGROUND: Based upon our research it does not appear that FLIR has ever split its stock. The annual shareholder meeting was on 7-24-01 at which time no additional shares were authorized. The company has sufficient shares for a 2 for 1 split.
STATUS: Big moves the last two sessions! FILR blasted through our buy point Wednesday on big volume, and continued the surge today, hitting up to a high of 53.70 before pulling back to close. Volume was even higher today at 1.26 million (average 330,300), but with the high volume dip back to close we will watch for a possible dip back to support for a test of the move. The breakout Wednesday was from a ragged cup with a pennant handle. The target of 58.
BUY POINT: Watching for a test of 50, but will look at new or additional positions on a strong move back up from there over 51 on continued strong volume. Stop: 47.52 (7%).
POSITION: Stock and/or July $45 calls to buy (FFQ GI).

DHR (Danaher--$67.45; +1.85; optionable):
http://biz.yahoo.com/p/d/dhr.html
BACKGROUND: Last announced a 2:1 split on 3-6-98 with a board meeting. The stock price was $70. The annual shareholder meeting was on 5-1-01 at which time authorized shares were increased. The company has enough shares for a 2:1 split.
STATUS: Received an upgrade and broke out last Wednesday with a gap up, and after a bit of a consolidation over the last week, DHR made another solid move up today, taking out our buy point with very solid volume (1.7 million; average 1.08 million). Like so many stocks today, DHR pulled back from a high of 68.59 with the market to close, so we will see if it will hold on and continue to move, or if it needs to test back to 66 (10 day at 64.85) before continuing up. Targeting 72 on the buys on the (high is 69.81).
BUY POINT: On a test of 66, a buy on a move back up with continued strong volume. Stop: 61.60 (7%).
POSITION: Stock and/or June $60 calls to buy (DHR FL).

POST SPLITS BEST PLAYS:
1) VAR - Strong move

VAR (Varian Medical--$40.15; +0.79; optionable): Split 2:1 on 1-16-02.
http://biz.yahoo.com/p/v/var.html
STATUS: Made another surge, but as we saw with many stocks today, VAR pulled back to close after hitting an intraday high of 40.75, which equaled its prior high from last week. Still, a good bounce up from the 10 day MVA (39.34) on good volume (586,000; average 347,000). Riding current positions (taken on the breakout from its 'flying w' with handle in late January) toward a target of 46, and still a buy on this move on a strong move up from here if it can hold onto 40. If the market pushes it back down, it is still a play on a hold of the 10 day and another bounce.
PLAY: From here on a hold of 40 (aggressive): A run back over 40.50 on continued strong volume, with stock and/or May $35 calls to buy (VAR EG). Stop: 37.29.

****

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, CTAS, DRI, EXPD, MRBK, AROW, IFIN and XL.

EXPD ($51.15; -1.77): Made the big move down, not bothering to test back toward the 200 day (55) first. Volume remained strong on the selling (657,400; average 334,300), still targeting 46.

INVN ($36.20; -1.79): Forecast to announce a split on 2-28-02 with a special meeting to increase authorized shares. Going toward the forecast, and settling back a bit, perhaps destined to hit the 50 day MVA (33.71) or recent lows at 35. The handle high is 46.20, but we can look at a move over the recent high of 42.64 on above average volume, with stock and/or July $35 calls to buy (FQQ GG).

LSTR ($77.46; -1.51): Researching a new date. Fell through the 50 day (78.37), with very strong volume of 126,700 (average 60,700). Did not make the bounce we were looking for, but has potential support in the 75 range from recent levels before it reaches the 200 day, at 72.41.We will see if it recovers.

DRS ($39.34; +1.22): Moved back over the short-term MVA's (18 day at 38.36) but volume was low on the surge (154,900; average 235,800). The handle high is still out there at 43, but the aggressive can look at a move over 40 on above average volume (240,000, today 207,200), with stock and/or June $35 calls to buy (DRS FG).

CTAS ($43.53; -3.06): 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. Lowered its guidance and gapped down like a stone. Never hit a buy point.

BMS ($53.72; +0.17): Working on a date. Earnings were 1-24-02. Has been edging up, but with the doji today on continued strong volume (300,000; average 220,000). Still targeting 60, but we could see a move back to the 10 day (with December highs, at 52.63). We will look at it again from there.

PRE SPLITS WATCHLIST:

BLL ($87.43; +1.23): Splits 2:1 effective February 25. What an incredible run this has been, and BLL continues to show good volume on the move up (326,300; average 219,600). With positions we are carefully watching for a drop back, which could be severe, as it has taken off on a very steep trendline. Looking at possible support for a consolidation at the 10 day MVA (83.33; 18 day at 80.70), and will carefully watch the action at those levels.

GILD ($67.06; +0.08): Splits 2:1 effective March 8. Is back over the 50 day, but after pulling back from the 68.55 high on big volume, it could be ready to visit that level again. We have to see if something develops. The recent high is 71.15, with the high at 73.67.

WERN ($24.83; -0.21): Splits 4:3 on or about March 15. Has dipped below the 50 day MVA (25.64), holding the recent low at 24.75. If it can hold we will see if it will give us a move back up toward the high (29.57).

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 BBY, BBBY, EDS, ETH, GOSHA, MI, PII, STJ (4/17 earnings) and THQI.

APPB ($32.63; +0.40): APPB has made a nice drop on the put, and today made a bit of a reflex bounce, but pulled back from a high of 33.50 to close. Still targeting the 200 day MVA, at 31.10.

LLL ($111.90; +0.25): Very strong, although it showed another 'tombstone' doji today, pulling back from a high of 114.40 with volume surging to 1.13 million (average 539,000). The pattern indicates a pullback from this great run, which poked through our target at 110. Looking to exit with at least some positions, although with the recent strength, we can also look at holding some positions on a move back toward the 10 day MVA (107.80), although we would be wary of a drop through that support.

THC ($61.80; +1.68): Battled all the way back to the 50 day (61.95), although volume has dropped on the rise (down to 1.88 million today; average 1.76 million). We were targeting the 200 day (56) on puts, and we certainly can get another drop back from this resistance after the weak move up, but will watch the recent low at 59 for support. For ew or additional positions, a drop through 61 on increased volume, with April $65 puts to buy (THC PM).

YUM ($55.05; -0.90): Dipped back again, holding the 18 day (54.77). Still looking for a move to a new high (over 56.77) on volume of a million, with stock and/or July $50 calls to buy (YUM GJ).

POST SPLITS WATCHLIST:

CHBS ($27.05; -1.25): Split 3:2 December 13. Continued the drop after having hit the put buy point, but volume is not great (391,200; average 436,000). Still targeting the 200 day, at 24.36.

CHS ($32.35; -0.90): Split 3:2 effective 1-22-02. Holding the 10 day (32.16), moving on low volume (348,600; average 428,000). Still wary of a drop through the 18 day (31.32) that would close out short-term positions (50 day at 28.45).

HTLD ($21.81; -0.24): Split 3:2 effective 2-20-02. Holding the 50 day (50.31), tapping it at its low today and recovering for a doji. We will see if it can hold on and set up a bounce.

MGAM ($28.03; -1.32): Split 3:2 on February 12. Holding the 10 day (27.56), pulling back from an intraday high of 29.90 on big volume (533,600; average 226,200). We will see if it can hold, and look for a move on the high of 30.81.

XRAY ($33.80; +0.06): Split 3:2 effective February 1. Made a nice bounce Wednesday, but after gapping up and hitting 34.19 today (high is 34.69), it pulled back a bit to close. Not too bad, and we will see if it can hold here, or if it will need to go back to supor tat 33.

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.

us stock market
stock watch