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us stock market, stock split
Begin part 3 of 3
THE PLAYS
New Plays:
New Pre-Announcement plays contained in that section.
Pre-Split Plays:
Play Date: 06/21/2008
FLR (Fluor Corp.--$191.55; +1.68; optionable): Heavy construction. Splits 2:1 on 7-17-08
http://biz.yahoo.com/p/f/flr.html
EARNINGS: Second week of August
STATUS: Flat base. FLR gapped higher mid-May on its earnings report, clearing a 6.5 month base. In the market selling it has come back to test that gap though not filling it all on last week's lows. Has rebounded and is in excellent position to give us a nice new breakout and entry point.
Volume: 1.373M Avg Volume: 1.674M
BUY POINT: $193.21 Volume=2.5M Target=$219.95 Stop=$187.45
POSITION: FLR HW - Aug. $190c (51 delta) or FLR JX - Oct. $195c (48 delta)
http://www.investmenthouse.com/ci/flr.html
Post-Split Plays:
Play Date: 06/21/2008
DRQ (Dril-Quip--$61.88; -0.65; optionable): Oil and gas service company
http://biz.yahoo.com/p/d/drq.html
EARNINGS: Early August
STATUS: Ascending base. Nice 9 week base has formed, making a higher low the past week at the 18 day EMA (61.07). Part of a larger 8 month base, and with this nice low volume lateral move the past week, DRQ has consolidated and is ready to break higher.
Volume: 602.03K Avg Volume: 641.988K
BUY POINT: $63.88 Volume=963K Target=$73.45 Stop=$60.57
POSITION: DRQ IL - Sept. $60c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/drq.html
Play Date: 06/21/2008
TRMB (Trimble Navigation--$36.72; +0.50; optionable): Positioning devices
http://biz.yahoo.com/p/t/trmb.html
EARNINGS: Late July
STATUS: Test 50 day EMA. TRMB was added to the SP400 at the Friday close and thus the surging volume. This is not just an index play. TRMB was a favorite play in 2007 as it ran higher. It got too high and needed to consolidate and base out for another run. It has done that with the current 8 month base. Good earnings numbers in April started it higher off the bottom of the pattern, and now TRMB is testing the 50 day EMA (34.82), showing good price action at that level. Looking for TRMB to give us a nice breakout from this pattern to give us the entry point.
Volume: 14.415M Avg Volume: 1.359M
BUY POINT: $37.08 Volume=2M Target=$42.95 Stop=$34.74
POSITION: TUH KG - Nov. $35c (66 delta) &/or Stock
http://www.investmenthouse.com/ci/trmb.html
Play Date: 06/21/2008
XTO (XTO Energy--$70.22; +0.08; optionable): Independent oil and gas
http://biz.yahoo.com/p/x/xto.html
EARNINGS: Third week of July
STATUS: Test breakout. We missed XTO as it broke higher last Wednesday, clearing a 9 week base on solid trade. Nice pattern that used the 50 day EMA (65.41) as support. Nice break higher, nice test, ready to move in as it makes the break higher after this test.
Volume: 6.354M Avg Volume: 6.518M
BUY POINT: $71.44 Volume=9M Target=$81.95 Stop=$68.91
POSITION: XTO KN - Nov. $70c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/xto.html
Leaders:
Play Date: 06/21/2008
V (Visa, Inc.--$83.57; -0.70; optionable): Financial payment processing
http://biz.yahoo.com/p/v/v.html
EARNINGS: Late July
STATUS: Ascending base. V bounced off the 50 day EMA just over a week back and is testing that move this week, coming back on below average volume to hold the 10 and 18 day EMA. Very nice orderly pullback setting up the next move higher. A new issue in May, this is V's first real base and it looks great.
Volume: 10.646M Avg Volume: 15.745M
BUY POINT: $85.05 Volume=20M Target=$97.95 Stop=$82.65
POSITION: V IQ - Sept. $85c (52 delta) &/or Stock
http://www.investmenthouse.com/ci/v.html
New buy points on current positions:
Play Date: 06/21/2008
MOS (Mosaic Company--$152.72; +1.47; optionable): Agricultural chemicals
http://biz.yahoo.com/p/m/mos.html
EARNINGS: 7-29-08
STATUS: Breakout test. MOS is making the first test of the breakout two weeks back from a nice 8 week consolidation base. Sold hard Thursday but held the 10 day EMA and Friday it sold a bit more but then rebounded to hold above the 10 day EMA on strong, above average volume. Showing a doji on the candlestick chart, an indication that MOS is going to rebound and give us a new buy.
Volume: 9.247M Avg Volume: 6.939M
BUY POINT: $153.69 Volume=9M Target=$175.95 Stop=$147.35
POSITION: MTJ IJ - Sept. $150c (60 delta) &/or Stock
http://www.investmenthouse.com/ci/mos.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: Tentatively set for July
ACS: Researching date
APD: Tentatively set for third week of July
BHI: Tentatively set for late July
CLB: A wildcard with no splits. Tentatively set for July
COP: Forecast July
CW: Tentatively set for third week of July
ETN: Researching date
GILD: Researching date. Testing the 50 day EMA.
HES: Forecast July
IBM: Giving up the 50 day EMA.
JEC: Mid-July. Breaking the 50 day EMA
JOYG: Heading to test the 50 day EMA and that may provide a good entry point.
MICC: Forecast third week of July
MTRX: Forecast early July
PX: Late July
RS: Mid-July
SCHN: Researching date
TMO: Tentatively set for July
WDR: Researching date
NEW PRE-ANNOUNCEMENT PLAYS:
Play Date: 06/21/2008
BTU (Peabody Energy--$80.31; -1.88; optionable): Coal
http://biz.yahoo.com/p/b/btu.html
EARNINGS: Third week July
STATUS: Test 10 day EMA. BTU broke higher Wednesday, clearing a 6 week base formed along the 18 day EMA (77.88). Broke out from a larger 4 month base in April and this short base consolidated that run higher. After the Wednesday breakout BTU came back Thursday and Friday to the 10 day EMA (79.40) in the market selling. Looking for it to hold this near support and then make the next break higher as it continues its run.
Volume: 5.581M Avg Volume: 6.181M
BUY POINT: $81.45 Volume=8M Target=$92.95 Stop=$77.69
POSITION: BTU IP - Sept. $80c (58 delta) &/or Stock
http://www.investmenthouse.com/cs/btu.html
CONTINUING PRE-ANNOUNCEMENT PLAYS:
Play Date: 06/19/2008
GILD (Gilead Sciences--$54.72; -0.75; optionable): Biotechnology
http://biz.yahoo.com/p/g/gild.html
EARNINGS: Mid-July
STATUS: Test 50 day EMA. Took the day off after a solid upside move Thursday. Still set up well to make the break higher. To recap: Broke out in late March from a 3 month double bottom with handle base, rallying up the 18 day EMA (54.15) through the start of June. After that run up the short term moving averages it needed a deeper test, and it came back to the 50 day EMA (53) the past week. It held the 50 day showing stronger volume on the upside sessions. Then it broke higher Thursday on the best volume of the month. Strong money flow is leading higher. GILD started to follow it Thursday and if it continues we will be ready to move into positions.
Volume: 10.152M Avg Volume: 6.797M
BUY POINT: $55.69 Volume=7.2M Target=$63.95 Stop=$52.91
POSITION: GDQ HK - Aug. $55c (54 delta) &/or Stock
http://www.investmenthouse.com/ci/gild.html
CONTINUING POST SPLIT PLAYS:
Play Date: 06/17/2008
GPN (Global Payments--$49.26; +0.88; optionable): Payment systems
http://biz.yahoo.com/p/g/gpn.html
EARNINGS: Late June but no definite date yet
STATUS: Cup. Gapped higher Friday, tested, then recovered to hold the gain. Strong volume. Very solid and a buy as it continues higher. To recap: GPN was a stock we played often from 2003 to 2005 as it was in a tremendous uptrend. Such a run necessitates quite a base and for the past 2.5 years GPN has traded in a large, ranging cup base. The past 8 months it has formed a base within that larger pattern, breaking higher to start June, clearing got a new 1.5 year high. It faded back to test, held support at 46, and then started back up this week with a strong Tuesday move on average trade, then gapped higher Friday on very strong volume, testing the gap intraday. Nice break higher and looking to move in as GPN continues higher on solid trade. Very nice set up to make a new breakout and run toward a new high.
Volume: 835.691K Avg Volume: 545.623K
BUY POINT: $49.15 Volume=750K Target=$56.75 Stop=$47.05
POSITION: GPN HI - Aug. $45c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/gpn.html
Play Date: 06/17/2008
WGOV (Woodward Governor--$40.35; +0.51; optionable): Industrial electrical equipment
http://biz.yahoo.com/p/w/wgov.html
EARNINGS: Third week of July
STATUS: Test 18 day EMA. Surging volume Friday as WGOV moved up off the 18 day EMA, bumping the breakout point. Looks ready to make the break higher. To recap: WGOV broke out from a nicely formed double bottom with handle in mid-May, gapping higher on strong volume. It surged just over 42 and peaked. Spent the past four weeks working laterally over the 18 day EMA (38.64). Now making a higher low after the consolidation, and that typically precedes the next upside move. Very solid, very well set up.
Volume: 1.16M Avg Volume: 649.778K
BUY POINT: $40.55 Volume=950K Target=$48.45 Stop=$38.44
POSITION: GUP JH - Oct. $40c (46 delta) &/or Stock
http://www.investmenthouse.com/ci/wgov.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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us stock market
stock split
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