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stock split, stock recommendation
Begin part 3 of 3
THE PLAYS
Pre-Announcement Play:
Play Date: 07/14/2008
ESV (Ensco Intl.--$77.77; +3.07; optionable): Oil and gas service company
http://biz.yahoo.com/p/e/esv.html
EARNINGS: 7-24-08
STATUS: Test 50 day EMA. Broke out in early April and rallied up the 18 day EMA (76.58). Peaked out mid-June and then sold off in the early July energy selling. Tapped down at the June low intraday last week and recovered to the 50 day EMA (74.19), working laterally to the end of the week. Monday it bounced off that level though volume was lower and below average. Still a very solid move, making a higher low at key support and moving up through the May peak. Nice action and looking for a bit more volume to move into positions.
Volume: 2.633M Avg Volume: 3.18M
BUY POINT: $78.48 Volume=3.5M Target=$89.95 Stop=$75.89
POSITION: ESV IO - Sep. $75c (66 delta) &/or Stock
http://www.investmenthouse.com/cs/esv.html
Leader Play:
Play Date: 07/14/2008
COV (Covidien Ltd.--$48.62; -0.24; optionable): Medical instruments
http://biz.yahoo.com/p/c/cov.html
EARNINGS: 8-5-08
STATUS: Double bottom w/handle. Another stock in the medical instruments with a double bottom base formed using the 90 day SMA (46.80) on the two lows. Excellent volume as COV tested and then moved up off the 90 day last week. Paused Friday then gapped higher Monday only to come back to test near support at the 18 day EMA and then bounce to close flat. Nice 6 week base formed after moving to a new high in May and early June. Excellent money flow moving higher ahead of price and after this test we are looking to pick up COV as it rebounds.
Volume: 3.272M Avg Volume: 2.688M
BUY POINT: $49.31 Volume=4M Target=$55.95 Stop=$47.77
POSITION: COV JJ - Oct. $50c (44 delta) &/or Stock
http://www.investmenthouse.com/ci/cov.html
DOWNSIDE:
Play Date: 07/14/2008
NLC (Nalco Holding Co.--$20.00; -0.37; optionable): Chemicals
http://biz.yahoo.com/p/n/nlc.html
EARNINGS: 7-29-08
STATUS: Put. NLCE tried to fomr a base October to June and even broke out in June . . . for two days. Then it gapped lower and has continued lower since, trying to bounce and form a right shoulder, but never really getting the job done; quite weak. Sold to 20 to start July where there is some support from the March interim lows. Money flow continues lower ahead of the price, and with the 10 day EMA pushing down on it we are looking for NLC to follow the money lower. A move to the target lands a 44%ish gain.
Volume: 965.437K Avg Volume: 1.01M
BUY POINT: $19.79 Volume=1.5M Target=$18.11 Stop=$20.71
POSITION: NLC TD - Aug. $20p (-40 delta)
http://www.investmenthouse.com/ci/nlc.html
Play Date: 07/14/2008
STLD (Steel Dynamics--$33.76; -0.92; optionable): Steel & iron
http://biz.yahoo.com/p/s/stld.html
EARNINGS: 7-21-08
STATUS: Put. After a last breakout in June in its series of breakouts and runs higher, STLD cracked to start July, falling from the leadership spot in steel. Broke its trend from January, the 50 day EMA, the 90 day SMA, and fell all the way to the 200 day SMA (now at 30.46) before managing a bounce. Made it up to the 90 day SMA (35.89) on the Monday high but then reversed to close lower. Looks as if the bounce to test the breakdown is rusting out. A move down to the target from here lands a 42%ish gain.
Volume: 3.717M Avg Volume: 4.66M
BUY POINT: $33.54 Volume=5.8M Target=$30.32 Stop=$34.71
POSITION: RQL TG - Aug. $35p (-52 delta)
http://www.investmenthouse.com/ci/stld.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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