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trade stock, stock split
Begin part 3 of 3
THE PLAYS:
New Pre-Announcement plays contained in that section.
Post-Split:
Play Date: 05/23/2008
CX (Cemex SA--$30.81; -0.41; optionable): Cement
http://biz.yahoo.com/p/c/cx.html
EARNINGS: Announced 4-21-08
STATUS: Test breakout. Ready to make another play on CX as it makes a nice test back to tap the 10 day EMA on the Friday low (30.35) and then rebounding to cut its losses. Nice surge off the consolidation above the 200 day SMA, setting up a new break higher as CX continues moving higher and forming up the right side of the 12 month base. Nice action and ready to move in as this pullback turns into the next bounce higher. Very nice.
Volume: 3.184M Avg Volume: 5.404M
BUY POINT: $31.38 Volume=7.5M Target=$37.89 Stop=$30.12
POSITION: CIZ JF - Oct. $30c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/cx.html
Play Date: 05/23/2008
EMR (Emerson Electric--$56.08; -0.58; optionable): Industrial equipment and components
http://biz.yahoo.com/p/e/emr.html
EARNINGS: 5-6-08
STATUS: Cup w/handle. EMR faded back last week to near support at the 18 day EMA, tapping that level on the Friday low on low, below average volume. That lower trade shows no selling on the pullback. Great shakeout in the 6 month base as it forms the handle, setting up the move to a new all-time high. Excellent action in a weak market, using it to its advantage to set up the breakout for us.
Volume: 2.554M Avg Volume: 3.95M
BUY POINT: $56.88 Volume=6M Target=$66.75 Stop=$55.42
POSITION: EMR IK - Sept. $55c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/emr.html
Play Date: 05/23/2008
SDA (Sadia S.A.--$23.53; +0.83; optionable): Meat products
http://biz.yahoo.com/p/s/sda.html
EARNINGS: 7-30-08
STATUS: Ascending base. SDA has formed a 4 week ascending pattern up the 18 day EMA as it consolidates the late April breakout from a 6 month saucer base. Very solid upside volume spikes all during the short consolidation; good indication of the next breakout move to come. Strong money flow is leading higher. Good action Friday in a weak market: you have to eat no matter what the economy.
Volume: 753.903K Avg Volume: 616.783K
BUY POINT: $23.88 Volume=1M Target=$28.95 Stop=$22.32
POSITION: SDA IX - Sept. $22.50c (64 delta, 83 OI) or SDA ID - Sept, $20c (79 delta) &/or Stock
http://www.investmenthouse.com/cs/sda.html
Leader plays:
Play Date: 05/23/2008
MR (Mindray Medical Intl.--$38.72; +1.33; optionable): Chinese medical instruments
http://biz.yahoo.com/p/m/mr.html
EARNINGS: 5-7-08
STATUS: Reverse head and shoulders. Volume spiked well above average Friday as MR jumped off the 200 day SMA test, ready to resume the early May breakout (earnings driven) of a 5 month base. Gapped over the 200 day on earnings, tested back to support, and is now on the way up again. Looks very nice after this long base. MR made us great money in 2007, and looks ready to do so again.
Volume: 1.132M Avg Volume: 738.316K
BUY POINT: $39.31 Volume=1M Target=$47.42 Stop=$37.21
POSITION: MR JH - Oct. $40c (55 delta) or MR GG - July $35c (81 delta) &/or Stock
http://www.investmenthouse.com/ci/mr.html
Play Date: 05/23/2008
PKI (Perkinelmer--$28.41; +0.42; optionable): Medical instruments
http://biz.yahoo.com/p/p/pki.html
EARNINGS: Announced 4-24-08
STATUS: Test breakout. PKI broke higher two weeks back from an 8 month cup with handle base, then spent last week testing the move, coming back to tap intraday at the 18 day EMA on Thursday. Strong break higher Friday on strong, above average volume. All in a down market. Very nice with strong money flow leading the way higher.
Volume: 1.471M Avg Volume: 1.062M
BUY POINT: $28.82 Volume=1.2M Target=$33.32 Stop=$27.42
POSITION: PKI IE - Sept. $25c (71 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/pki.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: Rebounding somewhat after the pullback; still anticipating the second G iPhone and a move on that news.
BHI: Tentatively set for late July
BHP: Mid-May. Nothing mid-May but testing and holding the 18 day EMA
CLB: A wildcard with no splits. Tentatively set for July
GD: Forecast July. Testing back through the 18 day EMA
GGB: Researching date. Nice lateral test after the surge higher
GILD: Researching date
IBM: Will see if IBM can set back up for a new buy
JEC: Mid-July
JOYG: Researching date.
MICC: Forecast third week of July
MTRX: Forecast early July
OTEX: No announcement with earnings
RIG: Testing back to the 50 day EMA again.
RS: Mid-July
SCHN: Researching date, enjoying the run
TMO: Tentatively set for July
VMI: Mid-July
NEW PRE-ANNOUNCEMENT PLAYS:
Play Date: 05/23/2008
COP (ConocoPhillips--$91.40; -0.60; optionable): Large oil and gas
http://biz.yahoo.com/p/c/cop.html
EARNINGS: 4-24-08
STATUS: Breakout test. Two Fridays back COP broke higher from a rangy 10 month base, rallying to an all-time high on the move. It tapped 95 Wednesday and then sold back to test, holding support at 90 on the intraday low before setting at the 10 day EMA. Nice full test of the breakout and set to continue the move higher. Very nice pattern and very nice test to set up the new buy point.
Volume: 17.013M Avg Volume: 12.134M
BUY POINT: $92.65 Volume=19M Target=$106.75 Stop=$90.45
POSITION: COP HR - Aug. $90c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/cop.html
CONTINUING POST-SPLIT PLAYS:
Play Date: 05/22/2008
CMI (Cummins--$67.86; -1.49; optionable): Engines, etc.
http://biz.yahoo.com/p/c/cmi.html
EARNINGS: 7-30-08
STATUS: Test 18 day EMA. Finished the week at the 18 day EMA on low volume. Looks as if that is the bottom of this test and looking for CMI to put the break higher in for us this week. To recap: Surged higher to end April, rallying on its earnings out of a 15 week base. Rallied to 74 on the breakout run and is now testing near support at the 18 day EMA (67.23), tapping that level on the low and rebounding to close flat. Nice low volume test shows few sellers. Looking for CMI to continue its move higher off of this test with a good shot of volume.
Volume: 2.322M Avg Volume: 2.962M
BUY POINT: $70.57 Volume=3.2M Target=$84.95 Stop=$67.11
POSITION: CDM IN - Sept. $70c (59 delta) &/or Stock
http://www.investmenthouse.com/ci/cmi.html
Play Date: 05/20/2008
FWLT (Foster Wheeler--$74.30; -0.52; optionable): Heavy construction
http://biz.yahoo.com/p/f/fwlt.html
EARNINGS: Announced 5-7-08
STATUS: Double bottom w/handle. Reached lower down to the 18 day EMA Friday and then rebounded. Great shakeout action putting FWLT in position to make the break higher. To recap: Nice strong volume surge last week finished the right side of its 5 month base, rallying to 80, the February peak, the 'hump' in the pattern. It matched that level and has faded toward the 10 day EMA (74.31), tapping toward that on the Tuesday low and then rebounding for a modest gain. Very low volume shakeout setting up the next breakout and run for FWLT.
Volume: 1.939M Avg Volume: 3.819M
BUY POINT: $78.22 Volume=5M Target=$93.95 Stop=$74.89
POSITION: UFG HW - Aug. $77.50c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/fwlt.html
Play Date: 05/20/2008
WGOV (Woodward Governor--$38.06; -0.42; optionable): Energy control and optimization solutions for engines
http://biz.yahoo.com/p/w/wgov.html
EARNINGS: Announced 4-21-08
STATUS: Breakout test. Excellent test, showing a nice doji with tail right on top of the 10 day EMA. It ahs made the test and is ready to resume the breakout move. To recap: Gapped higher last week, breaking out from a 5 month base on very strong volume, moving to a new all-time high. Nice lower volume test (though still high), and looking to move in after the test is over.
Volume: 576.129K Avg Volume: 598.258K
BUY POINT: $38.89 Volume=1M Target=$44.85 Stop=$36.89
POSITION: GUP GG - July $35c (74 delta, 66 delta) &/or Stock
http://www.investmenthouse.com/ci/wgov.html
CONTINUING LEADER PLAYS:
Play Date: 05/21/2008
BG (Bunge Ltd.--$117.02; -0.93; optionable): Soy Beans
http://biz.yahoo.com/p/b/bg.html
EARNINGS: Announced 4-24-08
STATUS: Reverse head and shoulders. Still in the test, holding the 18 day EMA last week on low volume. Has put in the work, now just waiting to see if BG can put up the breakout that we can buy in on. To recap: Has quietly set up a 20 week accumulation base, working laterally the past 5 weeks, forming the right shoulder to its base. Needed a nice accumulation pattern after the breakout and run from last summer through January. Making a low volume test the past two sessions, holding at the 18 day EMA Wednesday after a strong Monday break higher. Money flow is strong and ready to play BG as it makes the break higher out of this pattern.
Volume: 1.575M Avg Volume: 2.918M
BUY POINT: $121.31 Volume=4M Target=$139.95 Stop=$117.65
POSITION: BG GD - July $120c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/bg.html
Play Date: 05/20/2008
ICO (International Coal Group--$9.30; -0.42; optionable): Coal
http://biz.yahoo.com/p/i/ico.html
EARNINGS: Announced 4-23-08
STATUS: Breakout test. Coming back a bit more, closing at the 10 day EMA on lower, below average volume. Excellent test, excellent position to resume the breakout run higher. Coal is smoking. To recap: Making the second test of near support (the 10 day EMA) after the mid-April breakout from its 10 wee saucer base. Nice run making us good money as ICO rallies up the 10 day EMA (9.60), showing a doji there Tuesday on low volume; that indicates the test is just about over. Looking for more upside as ICO comes off this doji and gives us the new buy point.
Volume: 2.085M Avg Volume: 2.279M
BUY POINT: $10.11 Volume=3M Target=$12.15 Stop=$9.40
POSITION: ICO IB - Sept. $10c (58 delta) &/or Stock
http://www.investmenthouse.com/cs/ico.html
Play Date: 05/22/2008
SINA (Sina.com--$50.20; -0.54; optionable): Chinese internet
http://biz.yahoo.com/p/s/sina.html
EARNINGS: Announced 5-14-08
STATUS: Test 18 day EMA. Nice tight doji Thursday and Friday at the 18 day EMA as SINA looks to wrap up the test and begin the next move higher. Good end to the week and ready to move in as SINA moves back up. To recap: SINA exploded higher on us in the second week of May and we missed that breakout from its 6.5 month double bottom with handle base. It rallied close to 60 then turned back the past week for a full test of the breakout move, tapping the 18 day EMA on the Thursday low and rebounding to close flat. Nice test and like that tight doji at the near support. Ready to move in on a strong bounce on continued solid, above average volume.
Volume: 1.747M Avg Volume: 1.535M
BUY POINT: $52.24 Volume=2.3M Target=$59.95 Stop=$49.31
POSITION: NOQ IJ - Sept. $50c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/sina.html
Play Date: 05/22/2008
SOHU (Sohu.com--$76.70; -1.08; optionable): Chinese internet
http://biz.yahoo.com/p/s/sohu.html
EARNINGS: Announced 4-28-08
STATUS: Test 18 day EMA. Very nice doji with tail at the 18 day EMA on Friday as SOHU posts up for the next run higher in its breakout move. To recap: Gapped higher in late April on a strong earnings report, clearing a 5.5 month double bottom with handle base. Strong surge to 85 on the run, and now in its second test of the breakout, coming back to tap at the 18 day EMA on the Thursday low, rebounding off that level Thursday. Big move but still early in the breakout run, and this pullback looks tailor made for a new move higher. Need to see continued strong volume as it makes the break back upside to continue the run.
Volume: 1.9M Avg Volume: 1.813M
BUY POINT: $79.44 Volume=2.2M Target=$94.95 Stop=$76.86
POSITION: UZK IP - Sept. $80c (47 delta) &/or Stock
http://www.investmenthouse.com/ci/sohu.html
Play Date: 05/22/2008
VRSN (Verisign--$38.91; -0.73; optionable): Internet services
http://biz.yahoo.com/p/v/vrsn.html
EARNINGS: Announced 5-8-08
STATUS: Breakout test. Tested back further to end the week, tapping the 18 day EMA (38.40) on the low and rebounding to cut the losses. Low volume so no heavy selling. The test tapped at the February peak and bounced, a good indication of support for this stock. To recap: Nice low volume over the 10 day EMA (39.20) as VRSN holds a strong breakout from last week. Nice formed 5.5 month double bottom with handle base, strong breakout on volume, and now a test setting up a great next break higher. Looking for volume to ramp up again as it makes the rebound once more.
Volume: 2.539M Avg Volume: 3.742M
BUY POINT: $38.61 Volume=4.5M Target=$47.95 Stop=$39.69
POSITION: QVR IH - Sept. $40c (55 delta) &/or Stock
http://www.investmenthouse.com/ci/vrsn.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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