Weekend Newsletter for March 2, 2003

Investmenthouse Newsletter

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Free Weekend Newsletter for March 2, 2003

TABLE Of Contents 1) MARKET SUMMARY 2) PRE-SPLIT PLAY 3) TECHNICAL PLAY 4) COVERED CALL PLAY 5) IPOs 24% Returns! Guaranteed by Law!Click Here For Details! NO FEE IRAS

Free Stock Split Email Notices Investing Q & As Glossary
1) MARKET SUMMARY

Market continues its lack of commitment.
– Bouncing like a ball, the market closes out a flat month.
– Economic data improving, but market is not buying it.
– We closed downside positions just in case, but there are obstacles as well as possibles to a war next week.
– Subscriber Questions.See full story.Try “The Daily” with no risk for 2 weeks!
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

XTO (XTO Energy–$25.21; +0.41; optionable): Independent oil and gas. Splits 4:3 on 3-19-03.
Company Profile
STATUS: XTO rallied sharply off of 23 two weeks back, hitting 26 on that run. It has come back last week to test that move, holding the 10 day MVA on the Friday low (25.02) and bouncing slightly. This is good action to set up the next pre-split run, though it may take another day or two at this level before it is ready given that it just now fell back.
Volume: 678.3K Avg Volume: 809.5K
BUY POINT: $25.55 Volume=1.2M Target=$28.75 Stop=$24.33
POSITION: XTO EX – May $22.50c (91 delta) &/or Stock.
Click here for more information on our Stock Split Report! Chart by StockCharts.com

3) Technical Play DISH (Echostar–$26.33; +0.18; optionable): Satellite systems.Company ProfileSTATUS: Cup w/handle. Working in a 2-month handle to the 10-month base showing solid accumulation at 10 up weeks on rising volume to 7 down weeks on rising volume. The past two months accumulation is 2 to 0. Excellent pattern and money flow is out ahead of the price as it works laterally in the handle. Earnings are Tuesday (March 4), and that may be the catalyst to break it out.
Volume: 2.674M Avg Volume: 3.801M
BUY POINT: $27.05 Volume=4.8M Target=$31.12 Stop=$25.16
POSITION: UAB FE – June $25c (64 delta) &/or Stock.
Click here for more information on our Technical Traders Report! Chart by StockCharts.com

4) Covered Call Play
NCEN – New Century Financial Corp. is currently trading at $26.63. The April $25 Calls (UREDE) are trading at $3.30. That provides a return of about 7% if NCEN is above $25 on expiration Friday in April.
Company Profile
Click here for more information on our Covered Calls Service!

* * * SCOTTRADE * * *


5) IPOs Endurance Specialty Holdings Ltd., a property and casualty reinsurance company formed after the Sept. 11 attacks, raised $220.8 million in just the fourth IPO this year.
The Bermuda-based company sold 9.6 million shares for $23 each, below the expected range of $25 to $27 each, according to an official at investment bank Goldman Sachs Group, which managed the sale with Merrill Lynch.(This IPO story is continued on our website in the IPO Forum.)