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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS:
New Pre-Announcement Plays are found in the Pre-Announcement section.
Post-Split Plays:
Play Date: 05/03/2008
ACI (Arch Coal--$59.25; +3.41; optionable): Coal
http://biz.yahoo.com/p/a/aci.html
EARNINGS: Announced 4-12-08
STATUS: Test breakout. Surged higher on earnings, clearing a 14 week base and rallying just over 85 on the move. Has spent the past two weeks testing, and unlike many energy stocks, ACI did not break down, just tested easily, holding the 18 day EMA (79.37), its near support. Volume jumped Thursday as it tested and rebounded. Very nice action and just waiting for the break higher on strong trade.
Volume: 4.707M Avg Volume: 5.285M
BUY POINT: $59.68 Volume=5.5M Target=$71.75 Stop=$55.54
POSITION: ACI GL - July $60c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/aci.html
Play Date: 05/03/2008
WFT (Weatherford International--$81.00; +2.45; optionable): Oil and gas service company. Splits 2:1 on 5-27-08
http://biz.yahoo.com/p/w/wft.html
EARNINGS: Announced 4-12-08
STATUS: Test 18 day EMA. Broke out early April from a 12 week ascending base, rallying to 85 on the move. This is its test of that breakout move, coming back to the 18 day EMA (79.37) the past two weeks, riding laterally on lower volume during the 'issues' for the commodities and energy stocks. Excellent set up for a move higher as volume surged Thursday on a reach lower and then a strong rebound. Excellent strength, and as it continues its rebound we are ready to move in.
Volume: 3.4M Avg Volume: 4.419M
BUY POINT: $81.91 Volume=6M Target=$97.95 Stop=$78.44
POSITION: WFT HP - Aug. $80c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/wft.html
Leader Plays:
Play Date: 05/03/2008
EQIX (Equinix--$89.85; -1.35; optionable): Telecom
http://biz.yahoo.com/p/e/eqix.html
EARNINGS: Announced 4-23-08
STATUS: Cup w/handle. Working laterally last week over the 200 day SMA (86.87) after gapping higher in late April on earnings. After that strong volume move it needed to consolidate, and this handle is doing that, preparing for the breakout from its 6 month base. Excellent action with money flow well out ahead of the price, rising even as price moves laterally. That divergence is going to lead to the breakout move.
Volume: 865.937K Avg Volume: 1.297M
BUY POINT: $93.22 Volume=1.9M Target=$109.95 Stop=$88.32
POSITION: FQS IR - Sept. $90c (58 delta) &/or Stock
http://www.investmenthouse.com/ci/eqix.html
Play Date: 05/03/2008
UTHR (United Therapeutics--$91.09; +3.80; optionable): Drugs
http://biz.yahoo.com/p/u/uthr.html
EARNINGS: Announced 5-1-08
STATUS: Reverse head and shoulders. Nice gap higher on volume with its earnings, clearing a 14 week base that formed at the bottom of a larger 5 month pattern. Held at the 200 day SMA on the lows of the pattern, showing key institutional support at that level. This base also filled a huge gap from early November on good news about one of its products. Excellent money flow, and strong volume Thursday and Friday as it started the move. Looking to move in as UTHR continues higher.
Volume: 1.116M Avg Volume: 639.048K
BUY POINT: $91.21 Volume=850K Target=$104.95 Stop=$87.65
POSITION: FUH HR - Aug. $90c (59 delta) &/or Stock
http://www.investmenthouse.com/cs/uthr.html
New buy points on current positions:
Play Date: 05/03/2008
BIDU (Baidu.com--$361.50; -8.50; optionable): Chinese search
http://biz.yahoo.com/p/b/bidu.html
EARNINGS: Announced 4-24-08
STATUS: Cup w/handle. BIDU is setting up again, working laterally last week just below 375, waiting for the rising 10 day EMA (354) to catch up with it. Nice low volume as it rests ahead of the breakout from its 16 week base. Strong like bull. Just waiting for the next break higher.
Volume: 4.118M Avg Volume: 7.536M
BUY POINT: $374.11 Volume=11M Target=$424.95 Stop=$367.45
POSITION: BPJ IH - Sept. $380c (53 delta)
http://www.investmenthouse.com/ci/bidu.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: No split announcement again, but AAPL is still moving well, leading the market.
ATK: Broke higher Thursday to start the play in a big way.
ATW: Tentative for 5-8-08
BHP: Mid-May
CELG: Researching date
CHD: Forecast early May
EAC: Testing back to the 18 day EMA as the sector corrects.
GGB: Researching date
GILD: Researching date
GME: Forecast in June
IBM: No split announced with earnings. Nice test of the break higher.
JOYG: Researching date.
LLL: Just announced earnings; researching date.
OTEX: First week of May
RIG: Forecast mid-May
SCHN: Researching date
UNP: Announced the split Thursday and it has continued its strong run.
UPL: Early May
VMI: Mid-July
NEW PRE-ANNOUNCEMENT PLAYS:
New buy points:
Play Date: 05/03/2008
ATW (Atwood Oceanics--$102.28; +3.58; optionable): Offshore drilling
http://biz.yahoo.com/p/a/atw.html
EARNINGS: 5-8-08
STATUS: Test 50 day EMA. Broke higher in mid-April from a 14 week double bottom base that used the 200 day SMA as support, indicating the big money was buying it then. Rallied close to 115 on that move and then when the energy and commodity stocks sold back ATW went with them, but again it held a key support level, this one at the 50 day EMA (98). Good volume Wednesday as it showed a doji over the 50 day EMA, and then started higher Friday though volume backed off. Looking for more volume as it makes the move over the 10 day EMA (103.20).
Volume: 425.069K Avg Volume: 608.173K
BUY POINT: $103.32 Volume=700K Target=$123.95 Stop=$99.48
POSITION: ATW IA - Sept. $105c (52 delta) &/or Stock
http://www.investmenthouse.com/cs/atw.html
Play Date: 05/03/2008
RIG (Transocean--$151.92; +6.16; optionable): Oil and gas offshore drilling
http://biz.yahoo.com/p/r/rig.html
EARNINGS: 5-7-08 before the open
STATUS: Test 50 day EMA. One of the strongest offshore drillers. RIG broke higher in mid-April, clearing a 15 week ascending base and rallying to 160. It then sold back the past two weeks to key support at the 50 day EMA (144) in all of the turmoil in commodities. Nice lower volume test that showed higher volume on the actual 50 day EMA test. That shows us that buyers were stepping in to support it as it traded down to that level. Nice bounce Friday, and looking to move in as it continues this rebound move.
Volume: 5.817M Avg Volume: 6.404M
BUY POINT: $152.55 Volume=7M Target=$175.75 Stop=$148.89
POSITION: RIG HJ - Aug. $150c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/rig.html
CONTINUING PRE-ANNOUNCEMENT PLAYS:
Play Date: 04/26/2008
IBM (International Business Machines--$123.18; -0.43; optionable):
http://biz.yahoo.com/p/i/ibm.html
EARNINGS: Announced 4-16-08
STATUS: Flying plateau. Tested the 18 day EMA (121.38) midweek and then started to bounce after holding near support. Looks very solid and still looking to move in as IBM makes its next break higher. To recap: IBM was one of the earnings announcements that turned the tide against the mediocrity that started the earnings season. It reported and surged the next session, jumping out of a 6.5 month double bottom with handle base. After that surge it started laterally, moving in a tight range lat week as it waited for the 10 day EMA (122) to rise and catch up with it. Friday it reached down to the 10 day just to feel for it and bounced back up. Low volume on the lateral move; no one is selling. Once the short term profit takers are out of the way IBM will make its next break higher. Very strong.
Volume: 6.917M Avg Volume: 8.679M
BUY POINT: $125.21 Volume=9M Target=$139.95 Stop=$121.77
POSITION: IBM GE - July $125c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/ibm.html
Play Date: 05/01/2008
LSTR (Landstar System--$53.18; -0.76; optionable): Trucking
http://biz.yahoo.com/p/l/lstr.html
EARNINGS: July 17
STATUS: Double bottom w/handle. Tested back to the 10 day EMA Friday, then rebounded to cut its losses. Low volume so no heavy selling, just taking a breather after the strong Thursday move. On the rebound from here it is a buy as volume climbs. To recaps: A short 5 week base formed over the 50 day EMA, consolidating the mid-March breakout from a larger 9 month cup with handle base. Strong volume Thursday as LSTR broke higher off the 18 day EMA from the handle. Strong money flow, great sector, nice consolidation to run it higher. Very nice.
Volume: 660.85K Avg Volume: 763.297K
BUY POINT: $54.31 Volume=1.2M Target=$62.45 Stop=$51.45
POSITION: QRY GJ - July $50c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/lstr.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 04/24/2008
CAT (Caterpillar--$82.80; +0.45; optionable): Heavy machinery
http://biz.yahoo.com/p/c/cat.html
EARNINGS: Announced 4-18
STATUS: Breakout test. Gapped higher Friday but volume was low though it did hold some of the gain. Nice flat lateral move the past two weeks along the 10 day EMA (81.79), consolidating the mid-April earnings gap. Looks super. To recap: Very solid set up to move higher after testing lower to the 18 day EMA (80.48) intraday and rebounding to post a modest gain. Excellent test, and we just wait for it to make the strong break higher. To recap: Gapped higher on earnings and has come back this week to fill the gap, fading back on low volume, tapping the 10 day EMA on the Thursday low and then rebounding to close flat. Nice breakout from a 7 month reverse head and shoulders base, and a great test. Showed a doji on the session, and that indicates the pullback is over. Ready to move in as CAT rebounds once more.
Volume: 4.511M Avg Volume: 6.859M
BUY POINT: $82.57 Volume=7.5M Target=$94.95 Stop=$79.77
POSITION: CAT HP - Aug. $80c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/cat.html
CONTINUING LEADER PLAYS:
Play Date: 05/01/2008
CRM (Salesforce.com--$67.30; +0.01; optionable): Personnel, customer management software
http://biz.yahoo.com/p/c/crm.html
EARNINGS: Late May
STATUS: Breakout test. Nice test of the 10 day EMA Friday, bouncing up off that level on low volume as it continues its lateral consolidation. Just a matter of time to make the break higher. To recap: CRM exploded higher last week off a 50 day EMA test as it tried yet again to make a breakout move stick. This one looks to have taken; CRM has faded back to the 10 day EMA on very low volume, showing a nice doji with tail Thursday. Nice test of that breakout move and ready to continue higher. Looking to add some positions as it makes the move from this excellent test.
Volume: 1.145M Avg Volume: 1.918M
BUY POINT: $68.32 Volume=2.4M Target=$78.77 Stop=$65.11
POSITION: CRM HM - Aug. $65c (61 delta) &/or Stock
http://www.investmenthouse.com/ci/crm.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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