Weekend Newsletter for March 14, 2004
Investmenthouse Newsletter
InvestmentHouse.com
Stock Split Alerts| Stock Split Forecasting| Covered Calls| The Daily
INVESTMENT HOUSE.COMTM
Informing Investors Around The World
Read In All 50 States And Over 100 Countries
Weekend Newsletter for March 14, 2004
Table Of Contents 1) MARKET SUMMARY 2) PRE-SPLIT PLAY 3) TECHNICAL PLAY 4) COVERED CALL PLAY
Stock Split Notices Investing Q & As Glossary
1) MARKET SUMMARY
Stocks surge higher but fail to attract real buying volume.
– Ferocious relief rally answers 5 straight distribution sessions.
– Michigan sentiment falls but not as much as feared, inventories edge higher.
– Still working on that bottom as SOX approaches its most important test.
– Subscriber Questions.
Read Full Weekend SummaryLearn more about our Stock Split Report – Issued 5 Times Per Week
2) Stock Splits Playing stock splits can be very profitable, but it takes know-how. Our stock split service focuses on three main types of plays: 1) pre-announcement (where we forecast an upcoming split prior to the company making the announcement); 2) pre-split (these plays are made in the days leading up to the actual split day); and 3) post-split plays (plays made after the actual stock split where the stock is showing continued or renewed strength). We play pre-split plays as short-term plays. We get in when the technical indicators show us things look right, grab as much as we can, and get out, always being conscious of resistance and support. These stocks are highly volatile at this time, and can turn on you quickly. Don’t let good profits disappear. Watch for turns, especially when a stock trades in a wide range and finishes off its high. That is a sign these stocks often give you that they are running out of steam. We usually get out and ask questions later. We can always get back in. We like to play in the money calls, preferably two strike prices in the money as this usually gives us a greater delta (the percent an option will mover versus the stock’s movement). We prefer deltas of 75 or better. This means if the stock moves 1 point, the option should move three-fourths of that point. That means up or down. Remember, wait to see the stock start to move up. Don’t just blindly make a play and don’t try to guess tops and bottoms. We can look at indicators to give us a clue as to what will happen, but we need the stock to confirm it for us. Here’s a pre-split play to watch and our current analysis. Chart by StockCharts.com
FOSL (Fossil–$33.50; +1.43; optionable): Watches, accessories, etc. Splits 3:2 on 4-9-04.
Company Profile
STATUS: Breakout test. FOSL exploded out of a 6 month flat base in late February, rallying to 35 in a tremendous surge. It has spent the past two weeks coming back to test the move, holding at near support on the 18 day MVA (32.41). Volume was low on the pullback until the end of the week when it hit support and rebounded. Excellent money flow leading higher and a relative strength breakout.
Volume: 299.062K Avg Volume: 228.468K
BUY POINT: $33.82 Volume=310K Target=$39 Stop=$32.35
POSITION: FUA FF – June $30c (83 delta) &/or Stock.
Learn more about our Stock Split Report – Issued 5 Times Per Week
Chart by StockCharts.com
3) Technical Play
STG (Stonepath Group–$3.91; +0.16; no options): Supply chain solutions.
Company Profile
STATUS: Test 18 day MVA. STG broke out from a 7.5 month double bottom with handle base in late February and soared higher to 4.38. It is now coming back to test the breakout, holding over the 18 day MVA (3.73) on lower, below average volume. Accumulation is a solid 5 to 3 in the base and money flow is excellent, surging up ahead of price even as the stock pulled back on the test. Friday the stock was moving up off the 18 day MVA, following that money flow. Looking for the stock to follow the money and continue the breakout move.
Volume: 361.5K Avg Volume: 375.374K
BUY POINT: $4.04 Volume=563K Target=$5 Stop=$3.76
POSITION: – Stock (no option chain).
Learn more about our Technical Traders Report – Issued 5 Times Per Week Chart by StockCharts.com
4) Covered Call Play
ISIL – Intersil Holding Corp. is currently trading at $22.63. The April $22.5 Calls (UFHDX) are trading at $1.50. That provides a return of about 6% if ISIL is above $22.5 on expiration Friday in April.
Company Profile
Learn more about our Covered Call Tables – 8 Tables Updated 5 Times Per Week
SPECIAL OFFERS! We are now offering “Special Offers” each week in our Book Store! You will
not find these specials on our web site . . . they are only available by using this link: SPECIAL OFFER LINK >> Go To Book Store Specials!
PREMIUM SERVICES
IH Alerts: InvestmentHouse.com’s Best of The Best Plays!
Stock Split Report: “…seek out The Stock Split Report…” Forbes.com Best of the Web Covered Calls: Our covered call service provides nightly updates – energize your portfolio! Tech Traders: Breakouts, wedges, pennants etc…focusing on stocks ready to move now! The Daily: “The Daily” is a must read for all investors — learn what is really going on in the market!
MARKETPLACE Investor’s Business Daily: 2 week complimentary subscription delivered to your doorstep! Taped Seminars: Investing seminars on audio and video to help you profit. Book Store: Check-out the prices in our firesale section!
SPONSOR
QUOTESRESEARCH
Enter Stock SymbolGet Quotes, News, Analysis, Stock Splits, Message Boards!
NASDAQ
Most Active
Most Advanced
Most Declined
NYSE
Most Active Issues
Top Gainers
Top Losers
BOOKSTORE
TAPESAudio/Video Seminars!
SCOTTRADE$7 Trades!
The foregoing is commentary for informational purposes only. All statements and expressions are the opinions of Online Investment Services, LP., or Split Ventures, Ltd. This information is 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 the related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolios of writers for this issue may, in some instances, include securities mentioned herein and on the related 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. No one asscociated herewith receives compensation in any manner from any of the companies that are discussed in this newsletter or on the related websites.
