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us stock market, stock split
Begin part 3 of 3
THE PLAYS
New Pre-Announcement plays contained in that section.
Post-Split Play:
Play Date: 07/08/2008
CHP (C&D Technologies--$8.36; +0.22; no options): Electrical power storage systems
http://biz.yahoo.com/p/c/chp.html
EARNINGS: Announced 6-5-08
STATUS: Breakout test. Blasted off in early June on earnings, clearing a 19 month base. Bit breakout and this is the first test, using the market selling to come back to near support at the 18 day EMA (8.19) on mostly lower volume. It has been a long downtrend but this last break higher out of the base has broken that trend. After this test we are looking to move in as CHP makes the next break higher and recovers some past glory. Good time to move into this one.
Volume: 425.891K Avg Volume: 303.048K
BUY POINT: $8.54 Volume=455K Target=$10.95 Stop=$7.94
POSITION: - Stock (no option chain)
http://www.investmenthouse.com/cs/chp.html
Play Date: 07/08/2008
MYGN (Myriad Genetics--$53.47; +1.74; optionable): Diagnostic substances
http://biz.yahoo.com/p/m/mygn.html
EARNINGS: 8-19-08
STATUS: Cup w/handle. Broke out from a 9 month base to start the month, rallied, tested a day during the market selling, then bounced back up Tuesday on strong volume after a quick tap at the 10 day EMA. In one of those sectors the market is liking right now. Nice. Ready to move to a 6 year high. Strong money flow is surging higher ahead of price and MYGN looks determined to follow it higher.
Volume: 3.632M Avg Volume: 1.364M
BUY POINT: $53.94 Volume=1.5M Target=$61.95 Stop=$50.55
POSITION: GSQ KJ - Nov. $50c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/mygn.html
LEADERS:
Play Date: 07/08/2008
ACN (Accenture--$41.00; +1.14; optionable): Management consulting, customer relationship services
http://biz.yahoo.com/p/a/acn.html
EARNINGS: Announced 6-26-08
STATUS: Test breakout. CAN broke out in late May from an 11 month base, rallying to 42. IN the market selling it tested, coming back to the 50 day EMA (39) during June, then gapped higher on earnings to end the month. Has tested that move this past week, holding near support at the 18 day EMA (39.89). Started back up Tuesday on lower but still solid, above average volume. If it continues following the money flow higher it is a buy.
Volume: 4.133M Avg Volume: 3.034M
BUY POINT: $41.48 Volume=4M Target=$47.95 Stop=$39.00
POSITION: ACN KH - Nov. $40c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/acn.html
Play Date: 07/08/2008
MANT (Mantech Intl.--$49.64; +1.85; optionable): National security program software solutions
http://biz.yahoo.com/p/m/mant.html
EARNINGS: 7-30-08
STATUS: Test trendline. MANT has marched up roughly the 90 day SMA (47) this year with 4 tests of the trendline after breakout out form a base in October last year. It has come back to that trendline, touching down at that level to start the month, moving laterally in the selling, and then bouncing Tuesday on rising, average volume. Cleared the 50 day EMA (48.67) on the Tuesday move and looks ready for another bounce higher in its trend. Looking to take that bounce to the bank.
Volume: 238.471K Avg Volume: 219.197K
BUY POINT: $50.22 Volume=329K Target=$57.95 Stop=$47.21
POSITION: UUN KJ - Nov. $50c (51 delta) &/or Stock
http://www.investmenthouse.com/ci/mant.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. Very nice bounce higher.
ACS: August 7. Below resistance, working laterally trying to set up a new move
AGU: August 6. Trying to hold the 50 day EMA for a new break higher
APD: Tentatively set for third week of July. Still trying to recover off a 200 day SMA test.
BAX: Forecast 7-17-08
BHI: Tentatively set for late July
BTU: Forecast third week of July
CLB: A wildcard with no splits. Tentatively set for third week of July
COP: Forecast third week of July
DO: Wildcard that could give us a split mid-July
FTI: Tentatively set for first week of August
GENZ: Forecast 7-23-08
HES: Forecast last week of July
IBM: Strong volume as IBM bounces off the April consolidation
JOYG: Still trying to find the bottom, now at support at 70
MUR: Tentatively set the last week of July
POT: Forecast 7-24-08
RIG: Forecast 8-6-08
RS: Mid-July
SCHN: Researching date
SII: Forecast 7-24-08
SLB: Forecast 7-18-08
TMX: Wildcard as it has been a long time since a split but a nice pattern. Forecast third week of July
VAR: Forecast third week of July
NEW PRE-ANNOUNCEMENT PLAYS:
Play Date: 07/08/2008
ACL (Alcon, Inc.--$163.03; +0.38; optionable): Medical supplies, instruments
http://biz.yahoo.com/p/a/acl.html
EARNINGS: 7-23-08
STATUS: Test breakout. Moving in a very tight lateral range the past two weeks after the mid-June breakout from a short 6 week cup with handle base that acted to consolidate the break higher from a larger 6 month pattern in late April. Didn't go much of anywhere on that breakout, but this base on base pattern tends to really weed out the sellers and set up a great run. Looking for a high volume breakout from this lateral move over the 18 day EMA.
Volume: 279.276K Avg Volume: 328.923K
BUY POINT: $164.78 Volume=475K Target=$179.95 Stop=$161.31
POSITION: ACL KM - Nov. $165c (48 delta) &/or Stock
http://www.investmenthouse.com/ci/acl.html
CONTINUING PRE-ANNOUNCEMENT PLAYS:
Play Date: 07/03/2008
TMX (Telefonos De Mexico--$24.04; +0.06; optionable): Fixed line carrier in Mexico, US
http://biz.yahoo.com/p/t/tmx.html
EARNINGS: Third week of July
STATUS: Breakout test. Strong, above average volume Tuesday as TMX held tight over the 10 day EMA, making a higher low and ready to continue the breakout move. Telecom is in good shape and TMX has a great pattern. To recap: TMX broke higher out of a 12 month jagged cup base in late May, surging out of the pattern on strong volume. It rallied into early June, and then when the market sold, TMX came back, testing the breakout and holding the 50 day EMA (23.14) on the close over the past two weeks. It held and started higher last week in a down market, rallying up off of support on strong, above average volume. That is nice action for a stock in this market, and looking to move in as it continues the move off of key support.
Volume: 2.944M Avg Volume: 2.274M
BUY POINT: $24.58 Volume=3M Target=$28.65 Stop=$23.06
POSITION: TMX KX - Nov. $22.50c (62 delta, no OI) &/or Stock
http://www.investmenthouse.com/ci/tmx.html
CONTINUING LEADER PLAYS:
Play Date: 07/03/2008
ALXN (Alexion Pharmaceuticals--$76.22; +2.90; optionable): Drugs
http://biz.yahoo.com/p/a/alxn.html
EARNINGS: Last week of July
STATUS: Reverse head and shoulders. Moved through the buy point Tuesday on rising though just below average volume. As noted in the plays table, may have been too pensive and will look to move in Wednesday, particularly if we get an early pullback. To recap: Showing excellent action the past couple of weeks, finishing the right shoulder of its 8 month base with upside sessions on strong volume. ALXN obviously was getting some of the money leaving other areas such as materials and energy. Ready to break higher for an 8 year high from an excellent pattern and a good sector for a market that is selling and looking for defensive plays.
Volume: 596.884K Avg Volume: 624.012K
BUY POINT: New: on a test of the Tuesday move (orig. $74.78) Volume=1M Target=$89.95 Stop=$72.08
POSITION: XQN KO - Nov. $75c (48 delta, low OI) &/or Stock
http://www.investmenthouse.com/ci/alxn.html
Play Date: 07/02/2008
BABY (Natus Medical--$21.87; +0.31; optionable): Newborn care products (neurodiagnostic)
http://biz.yahoo.com/p/b/baby.html
EARNINGS: Early August
STATUS: Double bottom w/handle. Moving up off the 10 day EMA test. On the cusp, just needs a catalyst to send it higher. To recap: Strong volume Friday as BABY surged up off the bottom in its 8 week base. A quick pause Monday then back up Tuesday, rising near the top of its base, ready to take on the 2006 all-time high (22.50). Strong money flow is surging higher ahead of price. This sector and market leader is ready to make the next break higher.
Volume: 230.181K Avg Volume: 306.523K
BUY POINT: $21.94 Volume=465K Target=$26.31 Stop=$20.65
POSITION: QBU JD - Oct. $20c (65 delta, 156 OI) &/or Stock
http://www.investmenthouse.com/ci/baby.html
Play Date: 07/07/2008
SE (Spectra Energy--$27.64; -0.32; optionable): Oil & gas pipelines
http://biz.yahoo.com/p/s/se.html
EARNINGS: Early August
STATUS: Test breakout. Still in play here, testing the 50 day EMA on the Tuesday low then rebounding sharply on volume. Nice shakeout of the sellers, leaving SE still in position to continue its breakout move to the upside. Just waiting to see if it will move past the buy point on some good trade. To recap: SE broke higher two weeks back on strong volume, moving up out of a 11 month double bottom w/handle base. It rallied to 29 then started to test back, coming to near support at the 18 day EMA (27.90). Love the first test of a breakout as it shows the stock's backing as big buyers move back in even at a higher price. New issue in January 2007, a relatively new issue coming out of its first base. Very nice and very solid despite the weakness with most other stocks in the energy sector.
Volume: 5.569M Avg Volume: 3.246M
BUY POINT: $28.32 Volume=5M Target=$33.95 Stop=$27.48
POSITION: SE IY - Sept. $27.50c (63 delta) &/or Stock
http://www.investmenthouse.com/ci/se.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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