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trade stock, stock split
Begin part 3 of 3
THE PLAYS:
New Post-Split Plays:
Play Date: 03/04/2008
DNR (Denbury Resources--$32.34; +0.35; optionable): Independent oil and gas
http://biz.yahoo.com/p/d/dnr.html
STATUS: Cup w/handle. Big volume Tuesday as DNR held the 10 day EMA (31.50) on the low as it continues working on the week long handle to its 8 week base. Very nice rest stop as DNR pauses to set up for a new breakout to a new high. Excellent set up and just waiting for it to make the break higher on continued strong volume.
Volume: 3.301M Avg Volume: 2.168M
BUY POINT: $33.11 Volume=3M Target=$39.75 Stop=$31.24
POSITION: DNR FZ - June $32.50c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/dnr.html
Play Date: 03/05/2008
TEVA (Teva Pharmaceutical--$49.02; +0.27; optionable): Drugs
http://biz.yahoo.com/p/t/teva.html
EARNINGS: Announced 2-12-08
STATUS: Cup w/handle. TEVA moved up nicely after earnings, finishing forming the right side of a 9 week base. It faded on low, below average volume the past week to test that move, holding near support at the 18 day EMA (48.24) and bouncing on Tuesday. Volume moved up to just over average on the move. Nice test and ready to make the break to a new all-time high.
Volume: 6.293M Avg Volume: 6.274M
BUY POINT: $50.11 Volume=9M Target=$57.65 Stop=$48.11
POSITION: TVQ FJ - June $50c (51 delta) &/or Stock
http://www.investmenthouse.com/cs/teva.html
New Leader Plays:
Play Date: 03/05/2008
IBM (International Business Machines--$115.71; +1.48; optionable)
http://biz.yahoo.com/p/i/ibm.html
EARNINGS: Announced 1-17-08
STATUS: Double bottom w/handle. IBM has carved out a 5 month base, surging last week to clear the hump in the pattern formed with the December high at 112. It is testing that move, working laterally the pat week on low, below average volume following that high volume surge. Monday the 10 day EMA (113) caught up with it and IBM jumped higher. Volume was up but it could be better. Looking for more trade as IBM makes the next break higher.
Volume: 8.594M Avg Volume: 8.983M
BUY POINT: $116.88 Volume=12M Target=$133.95 Stop=$112.55
POSITION: IBM GC - July $115c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/ibm.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.
ADM: Researching date
AMX: Researching date
ATW: Forecast late February or first week of March.
BUCY: Forecast second week of March
BVN: No split announcement but continuing its move up the 10 day EMA.
CEDC: Forecast tentatively early May
CLF: Forecast second week of May
CPRT: Forecast first week of March
EAC: Tentatively forecast mid-March
ECA: Nice test of the breakout
FCX: Testing back with the commodities but holding support at the 90 day MA
JEC: Forecast third week of April
JOYG: Early March
MA: Forecast late April
MM: Researching date.
OTEX: No announcement 2-7-08.
RIG: Forecast mid-May
TKC: Tentatively forecast mid-April
STLD: Late April
UPL: No announcement but holding up at near support as it tests its run.
NEW PRE-ANNOUNCEMENT PLAYS
Play Date: 03/04/2008
ESV (Ensco Intl.--$60.97; +1.75; optionable): Oil and gas service company
http://biz.yahoo.com/p/e/esv.html
STATUS: Cup w/handle. Strong volume the past two weeks as ESV broke higher in its 9 week base and then spent the past week testing on lower trade, waiting for the 10 day EMA (59.03) to catch up to it. It did that Monday and Tuesday, and Tuesday ESV jumped off the near support on a tremendous volume surge. Strong money flow is leading the way higher. When it makes the breakout we are ready to move in.
Volume: 5.401M Avg Volume: 2.792M
BUY POINT: $61.89 Volume=3.8M Target=$70.95 Stop=$58.91
POSITION: ESV FL - June $60c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/esv.html
Play Date: 03/05/2008
TEVA (Teva Pharmaceutical--$49.02; +0.27; optionable): Drugs
http://biz.yahoo.com/p/t/teva.html
EARNINGS: Announced 2-12-08
STATUS: Cup w/handle. TEVA moved up nicely after earnings, finishing forming the right side of a 9 week base. It faded on low, below average volume the past week to test that move, holding near support at the 18 day EMA (48.24) and bouncing on Tuesday. Volume moved up to just over average on the move. Nice test and ready to make the break to a new all-time high.
Volume: 6.293M Avg Volume: 6.274M
BUY POINT: $50.11 Volume=9M Target=$57.65 Stop=$48.11
POSITION: TVQ FJ - June $50c (51 delta) &/or Stock
http://www.investmenthouse.com/cs/teva.html
Play Date: 03/05/2008
VIVO (Meridian Biosciences--$34.42; -0.16; optionable): Diagnostic substances
http://biz.yahoo.com/p/v/vivo.html
EARNINGS: Announced mid-February
STATUS: Cup w/handle. Excellent volume the past two weeks as VIVO bounced up off the 50 day EMA (32.50) and then volume faded as it tested slightly lower to the rising 10 day EMA (33.92). When it go there volume jumped Tuesday. This is part of a larger 5 month ascending base setting VIVO up for a breakout to a new all-time high. Very nice.
Volume: 496.301K Avg Volume: 376.132K
BUY POINT: $35.22 Volume=550K Target=$40.95 Stop=$33.25
POSITION: ZUG GG - July $35c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/vivo.html
Play Date: 03/03/2008
CPRT (Copart--$41.70; -0.58; optionable): Auto parts salvage
http://biz.yahoo.com/p/c/cprt.html
EARNINGS: 3-6-08
STATUS: Double bottom w/handle. Tapped the 18 day EMA on the low and rebounded for a modest loss on lower volume. Still working the handle, still setting up for the nice break higher. To recap: Strong volume the past week as CPRT surged higher off the second bottom in its 9 week base. CPRT has a habit of performing well in weaker economies; we played it frequently in 2001 during the official recession. Very nice pattern. Money flow is surging up ahead of price, and we are looking for a break higher to step into this very nicely formed base.
Volume: 707.838K Avg Volume: 590.139K
BUY POINT: $42.92 Volume=750K Target=$49.75 Stop=$40.38
POSITION: KQJ EH - May $30c (67 delta) &/or Stock
http://www.investmenthouse.com/cs/cprt.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 03/01/2008
APC (Anadarko Petroleum--$64.16; -0.04; optionable): Independent natural gas, oil producer
http://biz.yahoo.com/p/a/apc.html
EARNINGS: Announced 2-4-08
STATUS: Double bottom w/handle. Volume jumped Tuesday as APC tested the breakout but faded. Looking very nice for the breakout move. To recap: Working laterally last week, showing upside volume on the gains, APC is forming the handle to a 9 week base that formed using the 200 day SMA to make the two bottoms of the pattern. Nice strong rally in February off the second low, and last week moving laterally to take its first real pause on the run. It started the break higher midmonth as it cleared the 'hump' in the pattern at 60, and this lateral move or test is giving us a great entry point for the next leg higher. Going to wait for it to finish its lateral move as the 10 day EMA (62.86) rushes up to meet it. When it gets there the break higher will follow and that is when we move in.
Volume: 6.121M Avg Volume: 4.94M
BUY POINT: $64.21 Volume=7.4M Target=$73.95 Stop=$62.65
POSITION: APC EL - May $60c (68 delta) &/or Stock
http://www.investmenthouse.com/ci/apc.html
Play Date: 03/04/2008
IMO (Imperial Oil Ltd.--$56.33; +0.53; optionable): Oil and gas refining
http://biz.yahoo.com/p/i/imo.html
EARNINGS: 5-1-08
STATUS: Double bottom w/handle. Big volume again as IMO gapped lower but held above the 18 day EMA again and then rebounded for a gain. Looking for the upside momentum to carry it to the breakout. To recap: Moving laterally and fading back to the 10 day EMA (55.30) the past week, forming a handle to its 16 week base formed after running to a new high in early November. Needed the base, and this is a kingly looking base. Looking for high volume off of the 10 day EMA; there was very strong trade Monday as it tested lower and then rebounded.
Volume: 603.975K Avg Volume: 365.406K
BUY POINT: $57.55 Volume=500K Target=$66.31 Stop=$54.55
POSITION: IMO EK - May $55c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/imo.html
CONTINUING LEADER PLAYS:
Play Date: 03/03/2008
AKS (AK Steel Holding--$53.44; +0.72; optionable): Steel and iron
http://biz.yahoo.com/p/a/aks.html
EARNINGS: Announced 1-22-08
STATUS: Test breakout. Strong volume Tuesday as AKS reached higher but then gave back a chunk of the move. Still very nice test and ready to move in as AKS continues higher. To recap: Nice tap of the 10 day EMA (51.88) Monday and then a bounce positive; barely. Nice test the past four sessions following that mid-February breakout from its 15 week double bottom with handle base. Very nice action; a leader in its field. Ready to move in with more positions as it continues higher on rising trade.
Volume: 4.139M Avg Volume: 3.041M
BUY POINT: $53.31 Volume=4.5M Target=$61.38 Stop=$51.21
POSITION: AKS FJ - June $50c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/aks.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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trade stock
stock split
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