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Daily Newsletter, Thursday, 07/12/2001

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PremierInvestor.net Newsletter                Thursday 07-12-2001
                                                   section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section one:

Market Wrap: Could It Have Been Better?
Market Sentiment: La Corrida De Toros
Play-of-the-Day: Announcement Ignites Shares
Watch List: Four Bulls and a Bear.

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U.S. Market Numbers
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MARKET WRAP  (view in courier font for table alignment)
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         7-12-2001        High      Low     Volume Advance/Decline
DJIA    10480.41 +237.97 10496.64 10269.31 1.38 bln   1944/1166	
NASDAQ   2075.62 +103.70  2080.13  2031.84 1.85 bln   2510/1203
S&P 100   622.60 + 15.45   623.72   607.01   totals   4454/2369
S&P 500  1208.39 + 27.96  1210.25  1180.18             
RUS 2000  488.78 + 13.21   489.12   475.83
DJ TRANS 2901.65 + 82.55  2902.72  2822.95 
VIX        24.52 -  2.46    26.17    24.42 
Put/Call Ratio      0.51
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===========
Market Wrap
===========

Could it have been better? by Jeff Bailey

You don't know how bad I wanted to see bond YIELDS trade higher 
today.  While it shouldn't have kept subscribers from staying 
void of stock all together, it should have had them at least 
trading cautiously.  I do believe, but we may never know, that 
had bonds seen selling today, the rally we witnessed in stocks 
might have been even stronger than today's impressive numbers.

An equity bull would relish several days of upside like we 
experienced today. With the Dow Industrials (INDU) jumping 2.32%, 
the S&P 500 up 2.3% and the NASDAQ Composite gaining 5.25%, it's 
hard to even think of complaining.

What's encouraging about today's rally in stocks is that this 
type of move came without the benefit of selling in bonds.  As 
discussed in earlier commentary today, fears that Argentina may 
be at risk of defaulting on some $130 billion of debt.  That type 
of "global economic fear" most likely had many foreign investors 
gobbling up U.S. Treasury bonds today, but we know too well, that 
for every buyer there's a seller and perhaps there was enough 
selling in bonds to keep stocks adding gains in future sessions.

I'm not the type of trader or investor to ever try and discount 
or ignore negative news as a non-event.  I've never been to 
Argentina and know very little about its long-reaching impact on 
things here in the U.S. or other countries that many U.S. 
companies do business with.  I do think a trader/investor needs 
to at least be aware that there are problems and understand that 
some market participants were running to the bond market.

While some believe Argentina's debt problems are of concern, 
today's observations made in the stock market gave little hint 
that the problem was going to affect stocks.

The "bearish signal reversed" revisited

Take a look at Planar Systems (PLNR) and how that stock reacted 
to today's broader market action.  Here's a stock that was 
pointed out this morning in the 09:00 EST Update that some 
traders may have taken action on at the opening of trading at 
$26.73.  At one point during the session, the stock traded as low 
as $26.50, but surged to a session high of $29.55 before 
finishing $28.51.  True, a lot of stocks traded higher today, but 
PLNR's gain of 6.8% beat many of the broader market indices.

Planar Systems Chart - last six months



Last night I went through the charts of about 60 stocks that 
recently had given the "bear signal reversal" pattern and 
selected a few that also looked to have had favorable bar charts 
developing.  Some were better than others.  Notice how the bar 
chart above incorporates many of the techniques we've been using 
over recent months regarding the "fitting of retracement.  It 
sure looks to me like a market makers in this stock might be 
trading a range.  This morning's range for a bullish trader might 
have been with a stop just below the 61.8% retracement level of 
$24.96 with a swing-trading target near the $32.87 level.  Until 
today, the NASDAQ Composite had retreated lower 6 out of the 
previous 7 sessions.  Notice though how shares of PLNR held the 
61.8% retracement level, almost as if market makers needed to 
build an inventory in the stock for coming demand.  Today's close 
above downward trend should keep bearish traders at bay.

Look for other bearish signal reversals!

This morning I thought traders should be looking for other 
bearish signal reversal charts and have them on their watch list.  
This takes some effort as you need to look at some point and 
figure charts to develop the list.  Here's a security that most 
are familiar with and it too is setting up a potential bearish 
signal reversed.  This becomes most interesting and may further 
provide some insight as to why I think equity bulls want to see 
some selling in bonds.

NASDAQ-100 Index Tracking Stock - $1 box



Boy, today's rally in the QQQ and broader markets looks like it 
has some work ahead before bullish traders and investors can 
declare victory doesn't it?  You can see how equity bears have 
been selling the rallies in the QQQ can't you?  While I believe 
that bullish traders can't sit back and declare victory, the VERY 
SAME WARNING goes out to equity bears!

This is exactly what sets up some powerful moves in the bearish 
signal reversed, and probably why it is the most powerful of 
bullish chart pattern from Professor Earl Davis' study at Purdue 
University.  What sets up the pattern is complacency and 
repetition  Note the period from February (red 2) to April (red 
4).  See how shorts had such a wonderful time driving the QQQ 
down?  But look what went wrong once the series of lower highs 
and lower lows was reversed at $44!  The QQQ made a nice move to 
$49, before pulling back to that old resistance at $44 and then 
jumped again.

Right now, I think there are still some confident bears in the 
QQQ (the market for that matter) as the pattern recently has been 
lower highs and lower lows.  The unpleasant surprise for 
complacent bears really doesn't begin on the above chart until 
the $48 level, where the QQQ would trigger the "bearish signal 
reversed."

Right now a great word to be using is "early."  I think it is 
easy for subscribers of any investment service to wonder why the 
play list wasn't loaded up with bullish technology plays.  The 
reason is simple!  It's early.  Should the play list have been 
loaded with bullish plays in February, March and April?  No Way!  
It's too early.  Bullish traders must still be trading with 
discipline and patients!

BEARS!  Is a stock showing strength that you didn't think it 
should have shown?  For you too it is early!  Look at the 
reversal up on April 10th that I marked on the chart.  For many 
complacent bears, the market had moved too high for them to cover 
at that time.  Did things get any better?  No, they got worse!  
If you're short a stock and it's moving past a level of 
resistance that you thought should hold, it's time to admit the 
mistake and call it quits.

If the QQQ trades $52, what is every short below that point going 
to want to do?  Cover I'd think.  If the QQQ trades $52, what is 
every short going to want to do if he/she sees a good round of 
selling in the bond markets?  Cover MORE AGGRESSIVELY I'd think.

Right now it is very important for trader to be implementing risk 
management in their accounts.  For the less astute trader this 
seems like nonsense, but it is so critical.

Today, I think some bears implemented some risk management in 
Planar Systems, I just hope some subscribers were able to benefit 
at their expense!


================
Market Sentiment
================

La Corrida De Toros

Throughout history bulls have been revered by civilizations, and 
modern day Wall Street is no different.  But also popular 
throughout history are the brave soles that participate in 
Corridas, or bullfights.  

A Corrida starts with a parade of contestants dressed in 17th 
century costumes, who salute the president of the fight.  The 
president, the market in our case, is an important official who 
controls the fight and awards trophies to matadors who perform 
well.  The matador enters the ring, a trumpet blows, and the 
fight begins.

The preliminary phase of the fight consists of capeadores 
(bearish retail traders) working the bull with capes to appraise 
its agility, intelligence, dangers, and most importantly its 
strength.  The matador (professional trader) sits back and 
watches while quickly determining whether the bull hooks to the 
left or right, or swings its horns up at the end of each pass.  
Only when the matador has a feel for the bull tendencies will he 
confront it.  

When the trumpet sounded on Wall Street this morning, a bull 
named Microsoft came out swinging, snorting, and hooking.  Any 
capeadores who wished to step in front of this raging beast 
definitely ran the risk of getting gored.  The color red, which 
is often used to mark resistance, infuriates bulls, and today's 
bull charged through those levels with vigor.  Now that we have 
determined that this bull is feisty, it's time to move on to the 
first stage of bullfighting.

The first stage is when Picadors (profit takers), mounted on 
horses, provoke the bull to attack them.  The aim is to plunge 
their lances into the bull's neck, thus weakening its strong neck 
muscles.  This causes the bull to lower its head, without which 
the matador would not be able to slay the animal.  

How accurately the profit takers plunge their lances tomorrow 
should determine if bears can move on to the later stages of the 
bullfight, or are gored to death.

The moral of the story is that if you wish to confront a raging 
bull, let somebody else weaken it before plunging your sword into 
it.  Matadors get all the money and glory.

-----------------------------------------------------------------

Market Volatility  
VIX   24.52  
VXN   54.02

-----------------------------------------------------------------

          Put/Call Ratio  Call Volume   Put Volume
Total           .51        933,586       477,261
Equity Only     .42        850,651       359,296
OEX            1.07         20,663        22,036
QQQ             .24         91,792        22,229

The put/call ratio on the QQQs looks overly bullish, quite a 
reversal from yesterday.  Yesterday call volume was 54,739, and 
put volume was 79,319.  Today investors quickly changed their 
tune. Call volume jumped to 91,792, and put volume was a paltry 
22,229.  Too much change too fast?  The last time the QQQ put 
call ratio was down at these levels was on 7/3. The reading was 
.15, which marked the start of our previous sell off.

-----------------------------------------------------------------

Bullish Percent Data

With all of today's buying, bullish percent data refused to budge 
from bear confirmed status.  The Dow actually dropped two 
percentage points thanks to Phillip Morris giving a sell signal.

           Current   Change   Status
NYSE          36       -      Bear Confirmed
NASDAQ-100    26       -      Bear Confirmed
DOW           32      -2      Bear Confirmed
S&P 500       50       -      Bear Alert  

Readings above 70 are considered overbought, and readings below 
30 are considered oversold.

Bull Confirmed  - Aggressively long
Bull Alert      - Cautiously long
Bull Correction - pause or pullback in upward trend
Bear Alert      - Take defensive action if long
Bear Confirmed  - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend

-----------------------------------------------------------------

10-Day Arms Index  1.18  

Extreme readings above 1.5 are bullish, and readings below .85 
are bearish.  These signals don't occur often and tend be early, 
but when the do, they can signal significant market turning 
points.

-----------------------------------------------------------------

        Advancers     Decliners
NYSE      1945           1166
NASDAQ    2503           1208

        New Highs      New Lows
NYSE        94            63
NASDAQ      93            49

The Nasdaq trumped the NYSE in both adv/dec and nh/nl

-----------------------------------------------------------------

Advisory Sentiment   Bullish   Bearish  Correction  
                       50%      25.5%      24.5%

-----------------------------------------------------------------

Commitments Of Traders Report: 07/03/01
Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the 
Chicago Mercantile Exchange and Chicago Board of Trade. 

Small specs are the general trading public with commercials being 
financial institutions. Commercials are historically on the 
correct side of future trend changes while small specs tend 
to be wrong. 

S&P 500
The net bearish position of commercial traders increased for the 
third straight week.  We are still far away from the most bearish 
reading of the year (111,956), but this is a trend bullish traders 
want to see reversed.  Also disturbing for bulls is the fact that 
small traders, who tend to be wrong, have over twice as many long 
positions as short positions.

Commercials   Long      Short      Net     % Of OI 
6/19/01      301,376   371,121   (69,745)   (10.37%)
6/26/01      307,889   379,955   (72,066)   (10.48%)
7/03/01      316,543   395,410   (78,867)   (11.08%)

Most bearish reading of the year: (111,956) - 3/6/01
Most bullish reading of the year: ( 41,144) - 5/1/01

Small Traders   Long      Short      Net      % of OI
6/19/01        128,296    56,038    72,258     39.20%
6/26/01        130,914    56,269    74,645     39.88%
7/03/01        133,098    54,865    78,233     41.62%

Most bearish reading of the year:  36,513 - 5/01/01
Most bullish reading of the year:  91,122 - 3/06/01
 
NASDAQ-100
I must admit that this data is a bit baffling.  Commercial 
traders have been slowly reducing their net bearish position for 
the past six weeks.  This is the only index where institutions 
are getting less bearish.  Could it be that the "smart money" is 
getting less bearish on technology?
  
Commercials   Long      Short      Net     % of OI 
6/19/01       23,480    34,097    (10,617)  (18.44%)
6/26/01       26,263    35,690    ( 9,427)  (15.22%)
7/03/01       26,544    34,880    ( 8,336)  (13.57%)

Most bearish reading of the year: (15,521) - 3/13/01
Most bullish reading of the year:  (1,825) - 1/02/01

Small Traders  Long      Short     Net      % of OI
6/19/01       14,284     8,403    5,881      25.92%
6/26/01       10,519     6,064    4,455      26.86%
7/03/01       10,443     7,063    3,380      19.31%

Most bearish reading of the year:  (1,028) - 1/02/01
Most bullish reading of the year:   8,460  - 3/13/01


DOW JONES INDUSTRIAL
It looks like institutions have given up on the Dow based on the 
increase in their net bearish position, and the performance of 
IBM lately.  At the same time, small traders are on the brink of 
turning net bullish.

Commercials   Long      Short      Net     % of OI
6/19/01       12,346    10,470    1,876      8.2% 
6/26/01       11,371    12,759   (1,388)    (5.8%)
7/03/01       12,761    14,623   (1,862)    (6.8%)

Most bearish reading of the year: (8,322) - 1/16/01
Most bullish reading of the year:  8,925  - 5/22/01

Small Traders  Long      Short      Net      %Change
6/19/01        3,844     7,555    (3,711)    (32.56%)
6/26/01        4,756     6,341    (1,585)    (14.28%)
7/03/01        4,708     5,715    (1,007)    ( 9.66%)

Most bearish reading of the year:  (7,572) - 5/08/01
Most bullish reading of the year:   1,909  - 1/16/01
-----------------------------------------------------------------


=========================
Play-of-the-Day - Bullish
=========================

Cabletron Systems  - CS Close:$23.90 Change:+1.40 Stop:$21.25

This play just moved from our Watch List to our Play List.  We 
think it is a worthy Play-of-the Day..

Company Description:
By 2000, having lost their early sales lead to more innovative 
products from Cisco Systems, this maker of routers, switches and 
other networking equipment decided it was time for radical 
change.  The company sold off its slower growing businesses and 
reorganized itself into a holding company with four subsidiaries, 
each focused on a target marketplace.  .  They are Riverstone 
Networks (broadband and service providers), Enterasys Networks 
(corporate networks), Global Network Technology Services 
(professional services) and Aprisma Management Technology 
(network software).  Cabletron intends to fold Aprisma into 
Entreasys and take it public on August 6th (ticker:ETS) with 
additional plans to take Aprisma public sometime next year.  CS 
shareholders of record on July 27th will receive two shares of 
Entrasys and 1.02 shares of Riverstone for every two shares of 
Cabletron.  At that point Cabletron will cease to exist as an 
independent company.  Company executives say that Global Network 
will be sold or "otherwise disposed" of by Monday.

Fundamentals:	
As a combined entity, analysts forecast that the 
firm, which last year earned 8-cents per share on sales of 
$1.1 billion, will earn 47-cents per share in the fiscal year 
ending in February 2002 on sales of $1.4 billion and 79-cents on 
$1.7 billion in 2003.  This gives the shares a current P/E of 298, 
which should shrink rapidly to 50 in 2002 and 30 in 2003.  
Compared against the industry average P/E of 95, Cabletron's 
superior earnings growth makes these shares a good value play. To 
assist the balance sheets of the new companies, Cabletron intends 
to make cash distributions of $375 million to Entrasys, $120 million 
to Riverstone and $100 million to Aprisma.  One thing the company 
won't be distributing to the new companies is long-term debt, as 
the company has none. 

Strategy:
That the company was splitting up was well known to investors and 
contributed to a 106-percent rise in the stock since closing at 
$10.73 on April 4th.  Since the timetable for the split was announced 
on July 10th, the shares have tacked on an additional $2.05, or 9-
percent.  The Bulls picked up steam on Thursday, when the shares 
broke through strong resistance at $23 and the 2001 high of $23.25 
set early February.  The next area of upside resistance and our 
target price is the $29.50 highs set last October.

Picked on July 12that $23.90
Earnings Date           N/A(Not Confirmed)
 




==========
Watch List
==========

Best Buy Co. Inc - BBY - close: $67.95 change: +3.42

WHY WE LIKE IT:  Did you know that the Best Buy Company is the same 
people who run MediaPlay.com, OnCue.com, SamGoody.com, Suncoast.com,
MagnoliaHiFi.com in addition to BestBuy.com?  Neither did we.  We
are most familiar with its retail stores upon which 68% carry the
Best Buy name.  Surprisingly, there seems to be a correlation 
between good news for the technology sector and consumer electronic
stores.  We like BBY for its positive (yet rocky) up trend since
its break out above the 200-dma on April 18th, 2001.  

POTENTIAL TRIGGER EVENT:  Shares of BBY have significant resistance
between $69.50 and $70.00.  Our signal to re-evaluate BBY as a long
play would be a close over $70 on decent volume.  If the tech stocks
can continue climbing then BBY (which trades on the NYSE) might be 
on the play list soon.  We don't have an earnings date for BBY yet
but we'd expect one in late July.




---

Reebok Intl. - RBK - close: $32.63 change: +1.38

WHY WE LIKE IT:  In this market it's hard not to like something 
hitting 52 week highs.  RBK did so in late June and is looking
to do it again.  The stock has made a significant run since hitting
a triple bottom against support at $22 in late April.  We have seen
the bulls tackle resistance at $32 and now that shares have seen
a little profit taking buyers are stepping back in.

POTENTIAL TRIGGER EVENT:  From the recent high at $33, RBK has almost
completely recovered a 10% pullback and today shares took off.  
Volume is lighter than we would want so we're waiting for shares to
close over $33 as our signal that the bulls are ready for the next
leg up.  Earnings are expected on July 24th.




---

THQ Inc - THQI close: $59.73 change: +1.73

Gaining almost three percent today is encouraging but shares of
THQI are still below our trigger point of $60.  Normally we don't
like the gap up as stock have a tendency to go back and fill them.
Volume was lower than we would like so keep an eye on it.

Yesterday's comments:

WHY WE LIKE IT:  Several analyst believe that the electronic game
industry, while having a great run so far, still has plenty of
room to go.  If you believe that then pay attention to THQ Inc.
The Company publishes titles for Sony's PlayStation and 
PlayStation 2, Nintendo 64, Nintendo Game Boy Color and personal 
computers.  Indeed, if the gaming sector has seen the same move
that shares of THQI have seen then it has been a good year.
Mid-December of 2000 you could have bought shares of THQI for
only $18.00.  We can expect earnings for THQI on Thursday, July
19th next week.

POTENTIAL TRIGGER EVENT:  The stock has been consolidating under
resistance at $60 for about four weeks now.  We're starting to
see higher lows and if shares can close above $60 and stay there
then we might actually see an earnings run.




---

Nisource Inc Holding Company - NI - close: $26.16 change: -0.44

WHY WE LIKE IT:  Completing its fourth down day in a row, we 
thought bearish investors might be looking for new victims if
the tech sector can hold on to a rally.  NI is an energy and
utility-based holding company with operations in Indiana and
New England.  The company was formerly known as NIPSCO.  Currently,
the company is being investigated by a local utility regulatory
commission for its base electric rates.  Adding more injury to
investors was a recent downgrade by Goldman Sachs who lowered 
estimates for 2001.

POTENTIAL TRIGGER EVENT:  The trigger point is pretty defined
for NI.  There is very important support at the $26 level.  The
stock has bounced here more than once and today is the third 
time since February that it has approached this support.  Actually,
on Feb. 2nd, 2001, shares of NI closed at 25.87 probably faking
out several bearish traders when it quickly rebounded the next day.
Considering the recent negative news, we're going to keep the 
evaluation point simple.  If shares close under $26 we'll look into
a short play on NI.  More conservative traders may want to see it 
take out the old low of 25.87.




---

Harley-Davidson, Inc. - HDI - close: $49.75 change: +3.46

WHY WE LIKE IT:  Milwaukee, Wisconsin-based Harley-Davidson is
an American icon.  What's not to like about loud, powerful
motorcycles that inspire a since of freedom from the norm.
HDI did it again when they announced a record quarter on Wednesday
by beating estimates by 3 cents.  EPS was up 28% over last year
while net income jumped from $90 million to $115.6 million for
the quarter.  The company is quickly approaching its 100th 
anniversary in 2003.

POTENTIAL TRIGGER EVENT:  The positive earnings report was helpful
in producing the +7 percent gain in shares today.  Yet no matter
how great the news, shares of HDI can not get above $50.  This has
been a water-tight seal on the stock since August 31st, 2000.  The
last eleven months have seen buyers try and break through this 
barrier more than a dozen times.  The trigger here is simple.  Buy
the breakout over $50.  Conservative traders not wanting to buy 
into a fake break out could wait for a close over $50.50.  If we
don't see the move on strong volume, we might wait too.





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Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter                Thursday 07-12-2001
                                                   section 2 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/3534_2.asp
=================================================================

In section two:

Split Trader
  Split Announcements: REX Stores Declares First Split in 15 Years
  New Plays: Split Means Bull Run
  Play Updates: ATK, JCI, FISV
  Closed Plays: No closed plays for ST

Net Bulls
  New Plays: Nokia - NOK (Bullish)
  Play Updates: IBM, ERTS
  Closed Plays: EMLX, CSC

Stock Bottom / Active Trader
  New Plays: CSGS - Past Due Bill
  Play Updates: PATH, QQQ, SGU
  Closed Plays: APWR, QLGC


=================================================================
Split Trader (ST) section
==================================================================

===================
Split Announcements
===================

REX Stores Declares First Split in Fifteen Years

During regular trading today, REX Stores Corp. (NYSE:RSC) 
announced its Board of Directors' approval of a 3-for-2 stock 
split, payable on August 10, 2001 in the form of a 50 percent 
stock dividend.

Shareholders will receive one additional common share for every 
two shares held as of the record date of July 31, 2001.  The 
current number of outstanding shares of 5,148,897 will increase 
to 7,723,345 on the execution date of August 13. REX stores' last 
stock split was a 3:2 in 1986, announced when the stock was 
trading under $10 per share.

RSC opened at $22.90 on Thursday, and is up +1.20 by midday 
trading on the NYSE.  Volume is heavy at 51 thousand shares, 
soaring over the 3-month average volume of 19,454.

Please check back for updates as our analysts monitor the 
duration of this split run for possible Play recommendations.

About the Company:

REX Stores Corporation is a leading specialty retailer of 
consumer electronic products and appliances. As of April 30, 
2001, the Company operated 264 stores in 37 states under the 
trade name "REX."


 


============
ST New Plays
============

  -------------------
  New Split Run Plays
  -------------------
Cabletron Systems  - CS Close:$23.90 Change:+1.40 Stop:$21.25

Company Description:
By 2000, having lost their early sales lead to more innovative 
products from Cisco Systems, this maker of routers, switches and 
other networking equipment decided it was time for radical 
change.  The company sold off its slower growing businesses and 
reorganized itself into a holding company with four subsidiaries, 
each focused on a target marketplace.  .  They are Riverstone 
Networks (broadband and service providers), Enterasys Networks 
(corporate networks), Global Network Technology Services 
(professional services) and Aprisma Management Technology 
(network software).  Cabletron intends to fold Aprisma into 
Entreasys and take it public on August 6th (ticker:ETS) with 
additional plans to take Aprisma public sometime next year.  CS 
shareholders of record on July 27th will receive two shares of 
Entrasys and 1.02 shares of Riverstone for every two shares of 
Cabletron.  At that point Cabletron will cease to exist as an 
independent company.  Company executives say that Global Network 
will be sold or "otherwise disposed" of by Monday.

Fundamentals:	
As a combined entity, analysts forecast that the 
firm, which last year earned 8-cents per share on sales of 
$1.1 billion, will earn 47-cents per share in the fiscal year 
ending in February 2002 on sales of $1.4 billion and 79-cents on 
$1.7 billion in 2003.  This gives the shares a current P/E of 298, 
which should shrink rapidly to 50 in 2002 and 30 in 2003.  
Compared against the industry average P/E of 95, Cabletron's 
superior earnings growth makes these shares a good value play. To 
assist the balance sheets of the new companies, Cabletron intends 
to make cash distributions of $375 million to Entrasys, $120 million 
to Riverstone and $100 million to Aprisma.  One thing the company 
won't be distributing to the new companies is long-term debt, as 
the company has none. 

Strategy:
That the company was splitting up was well known to investors and 
contributed to a 106-percent rise in the stock since closing at 
$10.73 on April 4th.  Since the timetable for the split was announced 
on July 10th, the shares have tacked on an additional $2.05, or 9-
percent.  The Bulls picked up steam on Thursday, when the shares 
broke through strong resistance at $23 and the 2001 high of $23.25 
set early February.  The next area of upside resistance and our 
target price is the $29.50 highs set last October.

Picked on July 12that $23.90
Gain since picked       0.00
Earnings Date           N/A(Not Confirmed)
 




===============
ST Play Updates
===============

  -----------------------
  Split Candidate Updates
  -----------------------

Alliant Techsystems  - ATK Close:$91.64 Gain:+3.69 Stop:$88.00 New

Now this is more like it.  Our split candidate bounced off of 
support at $85 and pointed north.  This bullish split candidate 
is now up $5.12 in two days and up $1.74 since we put it on our 
Play List.  Two catalysts helped propel the shares, positive 
earnings from Microsoft and a mention on CNBC.  Bob Walberg, the 
Chief Equity Analyst at Briefing gave it as a pick during CNBC's 
Word on the Street segment.  We are moving our stop to $88.00.

Picked on June 29th at $89.90
Gain since picked:      +1.74
Earnings Date           8/9/01




===

Johnson Control - JCI Close:$78.25 Gain:+1.00  Stop:$74.00 New

Thursday was a tug-of-war for buyers and sellers of JCI shares.  
The stock opened $1.00 to the plus side, gave it back by mid-day 
and rallied back up that buck by the close.  The late strength is 
encouraging, but the early weakness means bears are lurking around. 
In the absence of definitive direction, the shares may need to dip 
back to either moderate support at $76.36 or strong support at $75 
before making another run at yet one more new high.  We will inch 
our stop up to $74.00.

Picked on July 10th at $76.20
Gain since picked:      +2.05
Earnings Date            7/18




===

Fiserv Inc. - FISV Close:$63.18 Gain:+1.57 Stop:$61.00 New

The FISV chart is starting to look a little Vish.  That is it is 
running up a bit too sharp from its lows around $58.  In addition 
there was a drop in volume to from 1.4 million on Wednesday to 1.1 
million on Thursday.  This means the shares may not have the oomph 
to drive through significant resistance looming near at $64.00 the 
first attempt.  The shares may need to consolidate first before 
continuing on their well established up trend.  We are going to 
tighten up our stop to $61, but less patient traders may consider 
a much tighter one or even taking profits on the first bounce off 
of $64.   

Picked on July 10 at   $59.94
Gain since picked:      +3.24
Earnings Date           7/23/01





==================================================================
Net Bulls (NB) section
==================================================================

============
NB New Plays
============

  --------------
  New Long Plays
  --------------

Nokia Corporation - NOK Close: $19.13 Change:+1.13 Stop:$17.50

Company Profile:
Nokia is a supplier of telecommunications systems and equipment. 
The company's core businesses include the development, manufacture 
and delivery of operator-driven infrastructure solutions and end-
user-driven mobile phones. For the 3 months ended 3/31/01, sales 
rose 22% to EUR8.01B. Net income rose 9% to EUR975M. Revenues 
reflect order inflow in Nokia Networks & higher sales of Nokia 
Mobile Phones. Earnings were partially offset by higher R&D and 
SGA costs.

Fundamentals:
For the 2000 fiscal year the company's net income decreased 12-
percent.  Analysts expect company earnings to fall from $0.75 in 
2000 to $0.66 in 2001 and rise to $0.83 in 2002.  This gives 
IBM shares a low current P/E of 29 and a forward P/E of 23.

Strategy:
As the undisputed leader in its sector, NOK rules the cell phone 
hand set business.  With Motorola announcing that it sees growth 
in its portion of the business, it could be fair to make the leap 
of faith that NOK will see a similar jump.  Earnings are due out 
on Thursday of next week and if the market can keep some of its 
inertia, I like the chances of NOK to move off of its recent 
bottom.  Today's significant upside volume follows yesterday's 
strong volume.

Yesterday's minor bounce followed by today's gap up has turned 
technical indicators in our favor.  With NOK entering a solid 
trading range and short-term moving averages like the 10 and 20 
DMAs still a couple of dollars away, the stock could see a strong 
run going into its earnings announcement.  Reviewing fundamentals, 
I was rather surprised to see the disparity between the PE for NOK 
and MOT.  NOK is actually making money and is forecasted to for 
this past quarter as well.  However, it sells at a discount to 
MOT.  This could be the perfect opportunity to get in while the 
market is hot and the stock is coming off of its very recent lows.

Picked on July 12th $19.13
Earnings Date          7/19 (Confirmed)




===============
NB Play Updates
===============

  -----------------------
  NB Bullish Play Updates
  -----------------------

IBM Corporation - IBM Close:$107.25 Change:+3.40 Stop:$103.85

IBM shareholders should send a thank you card to Bill Gates.  
The shares were on the verge of popping and Microsoft gave the 
entire tech sector a reason to dance.  IBM shares gained $3.40, 
leapfrogging their 200-dma of $104.61 in the process.  We will 
bring our stop to just below the 200 dma and right even with our
$103.85 entry point.

Picked on June 11t at $103.85
Gain since picked       +3.40
Earnings Date            7/18 (Confirmed)
 



===

Electronic Arts - ERTS Close:$58.10 Change:+4.17 Stop:$53.50

Bop, Boom, Pow - much like one of Electronic Arts's game characters 
beating up on the bad guy, this Bullish selection took a wooping to 
the bears.  They also confirmed their earnings report release for 
July 26th at 5PM EST.  No company specific news accounted for the 
rally.  Since we are in this play for the historical July to 
September rally, we don't want to get too cute with our stop.  So 
we will move it to just below $54 support at $53.50. 

Picked on July 7th at $54.38
Gain since picked      (3.37)
Earnings Date           7/26 (Confirmed)





===============
NB Closed Plays
===============

  --------------------
  Closed Bearish Plays
  --------------------

Emulex Corp  - EMLX  Close:$32.28  Change:+4.05  Stop:$32.00

Due to the affirmative tech news on Wednesday night, EMLX shares 
gapped up on today's open to $30.75, proceeded to a 14 percent 
gain and a day high of $32.50.  Our stop of $32 was hit along the 
way; nonetheless, we get to pocket respectable gains of $3.82 per 
share.

Picked on July 5th at $35.82
Gain since picked:     $3.82
Earnings Date           8/02  (Confirmed)




===

Computer Sciences - CSC - Close:$36.11  Change:+1.86  Stop:$35.00

The swing on Wednesday night from dreary preannouncements to 
optimistic forecasts wreaked havoc on our short plays. Not 
withstanding, we were swung out of CSC shortly after the opening 
gap up at $34.55. Trading hung tightly onto gains throughout the 
day, blazing past our stop of $35 to the day's close of $36.15.  
Volume was not entirely convincing though, as less than 700 
thousand shares traded hands (average 3-month volume is 1.3 
million). We're just happy to walk away from the play unscathed.

Picked on June 21st at $35.00
Gain since picked:       0.00
Earnings Date            7/30 (Not Confirmed)





==================================================================
Stock Bottom / Active Trader (AT) section
==================================================================

============
AT New Plays
============

  ---------------
  New Short Plays
  ---------------

CSG Systems - CSGS Close:$54.02 Change:-2.43 Stop:$57.75

Company Description:

CSG Systems provides cost-effective customer care solutions for the 
communications industry.  Their full range of processing services, 
software and support services automate customer management functions 
such as billing, sales support, order processing, and invoice 
calculation.  CSG clients, who include telephony, high-speed Internet, 
and Internet service providers, benefit from having a highly scaleable 
system that can grow with the business, as well as access next 
generation technologies that adapt to changing needs.   

Fundamentals:
So basically, CSG provides software to telecoms and ISPs.  Unless their 
software helps to file the paperwork for chapter 11 bankruptcies, I have 
a hard time seeing a bright future for their product and services.  Even 
if their customers are still in business, I doubt they have the capital 
expenditure budget to buy or upgrade their software.  CSG has somehow 
managed to grow revenues for the past 4 quarters, but the rate of growth 
is slowing.  Cash flows have also dropped into negative territory, 
primarily due to financing activities.  Salomon and CSFB must also smell 
a rat, since both of the brokerage houses have downgraded the stock.  

Strategy:
With investors buying everything in sight today, CSGS' $2.43 drop 
suggests that somebody wants out.  Perhaps it was Massachusetts 
Financial Services or Seligman J.W., CSG's top two institutional 
investors.  If the other institutions get a whiff of this, it may set 
off a snowball effect.  Conservative traders may want to wait for some 
confirmation of this, which would be signaled by a drop below $53.55.  
This level has been recent support, and is the home of the 38.2% 
retracement bracket.  Once that is support is gone, CSG is primed to 
fall to $47.60, an 11% drop.  We'll start out with a stop at $57.75, but 
will continue to lower that to reduce risk or most likely lock in 
profits.


Picked on July 11th $54.04
Earnings Date         7/30





===============
AT Play Updates
===============

  -----------------
  Long Play Updates
  -----------------

AmeriPath - PATH Close:$32.70 Change:+1.75 Stop:$29.50

Nice start for our long play.  The shares started strong on Thursday 
and showed little weakness until a slight dip near the close, which 
reversed right before the actual close.  We are tightening our stop 
to $29.50.

    
Picked on July 11th at $30.95
Gain since picked       +1.75
Earnings Date            7/31 (Not Confirmed)




===

Nasdaq-100 Series Trust - QQQ Close:$43.60 Change:+2.60 Stop: $42.00

The tech rally certainly did wonders for this play.  We are still 
uncertain if we have true conviction or just a momentary pop in 
reaction to the Microsoft earnings news.  If this is just news 
based rally then it could be temporary.  Time to lock in profits.  
We are tightening our stop up to $42.00

Picked on July 6th at $41.65
Gain since picked      +1.95
Earnings Date           N/A (Confirmed)

Gain =


===

Star Gas Partners L.P. - SGU Close:$20.90 Change:-0.20 Stop:$19.50

Star Gas shares dipped back below support at $21, but this level 
is still close.  Our outlook and stop remains the same. 
 
Picked on July 10th at $21.18
Gain since picked       (0.28)
Earnings Date            7/26 (Confirmed)





===============
AT Closed Plays
===============

  -----------------
  Closed Short Play
  -----------------

AstroPower - APWR Close:$49.89 Change:+1.49 Stop: $48.00

A broad based rally in tech stocks fueled by good news from 
Microsoft and Yahoo pushed theses shares through our $48.00 stop.  
This leaves us with a 59-cent per share gain on this play.  The 
shares are bumping up against significant resistance at $50.  It 
remains to be seen if the Microsoft news can put enough logs on 
the tech fire to drive the shares through.  

Picked on July 5th at $48.59
Gain since picked       0.59
Earnings Date           7/31 (Not Confirmed)




===

QLogic - QLGC Close:$54.34 Change:+4.65 Stop:51.00 

The selling momentum on this Bearish selection had begun to lessen, 
so we tightened up our stop to $51.00 to protect profits.  The good 
news from Microsoft set the bulls running on tech issues and this 
play  gapped above this stop at the open.  We close it out at the 
open price of $53.09 with a still handsome $9.44 per share gain.

Picked on July 2nd at $62.53
Gain since picked:      9.44
Earnings Date           N/A (Not Confirmed)





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