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Daily Newsletter, Wednesday, 07/25/2001

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PremierInvestor.net Newsletter                 Monday 07-23-2001
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In section one:

Market Wrap: Follow up is important
Market Sentiment: Relatively Speaking
Play-of-the-Day: Alliant Techsystems - ATK (Bullish)
Watch List: Check Out Our New Format

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
        07-25-2001        High      Low     Volume Advance/Decline
DJIA    10405.67 +164.55 10405.67 10241.19 1.25 bln   1896/1167	
NASDAQ   1984.32 + 25.08  1984.98  1942.58 1.68 bln   1912/1758
S&P 100   613.95 +  9.79   613.99   603.79   totals   3808/2925
S&P 500  1190.49 + 18.84  1190.52  1171.28           
RUS 2000  476.99 +  2.73   476.99   471.52
DJ TRANS 2865.00 +  1.55  2866.27  2841.88
VIX        26.70 -  0.93    28.49    26.46
Put/Call Ratio      0.64
-----------------------------------------------------------------

===========
Market Wrap
===========

Follow up is important by Jeff Bailey

Let's wrap up some observations made from this morning and then 
again at 01:30 EST.  Let's also try and bring into the fold what 
took place in the bond market today, because I don't want bullish 
traders to get a false sense of security with today's higher bond 
yields.  The way the trading day unfolded was interesting and 
hopefully we all understand that the longer-term trend must start 
with the short term.  Sometimes I think its is easy to talk about 
levels during market commentary and then never think of them 
again.  Let's start with the bond market as that was our first 
alert for a potentially higher stock market.  We'll then talk 
abut that darned Semiconductor Index (SOX.X) and how it got 
turned around and totally erased an earlier loss of 2.5% and 
ended up with a gain of 0.91%.  Then we'll see if some levels 
from the SOX.X and bond yield levels become meaningful with the 
S&P 500 and things mentioned this morning at 09:00 EST.  What 
we're doing is looking at the MARKET in three-dimensions.  Not 
just because we're talking about three different indexes, but 
because we're looking at different parts that make up the whole.  
Just as the X-ray allowed doctors to look at the patience 
insides, the MRI provided the ability to look at the patient in 
3-dimensions.  All the parts make up the whole and the bond 
market is a part of THE MARKET we invest our hard earned money.

First of all, before the stock market opened, the first "upside" 
alert that hit my trade station was the upside action in the 10-
year YIELD ($TNX.X) at 5.117%.  This was mentioned in the second 
paragraph of the 09:00 Update.  I've felt for sometime that for 
stocks to do well, we needed to see a higher YIELD.  By today's 
end, the 10-year YIELD finished at 5.159% (higher than first 
alert at 5.117%).  Often times, I get questions on why I look at 
charts on 60-minute time frames for bond YIELDS.  These questions 
usually come from investors or longer-term swing traders.  I 
agree that what happens in a 15-minute time frame is rather 
meaningless to the longer-term trader, but we do have a diverse 
group of subscribers.  If we believe that the longer-term trend 
starts with the short-term, perhaps some of what we saw take 
place in the bond market makes sense as it relates to what I've 
been talking about.  That would be the "not so popular" belief of 
HIGHER YIELDS makes for HIGHER STOCK PRICES.  This logic is 
simply based on supply/demand.  Sell the bond (higher yield 
results) and buy the stock or buy the bond (lower yield results) 
and sell the stock.

10-year Treasury YIELD Chart - 15-minute interval




It doesn't always unfold this nicely, but I show the 15-minute 
interval chart to help bring in perspective just how the bond 
YIELD action can influence the stock market bias.  I've said 
before that equity bears are looking over their shoulders at the 
bond market.  Right now I feel the biggest threat to a short 
position I hold would be for some institution to unload $1 
million worth of 10-year notes that is only yielding 5.1%, take 
that cash and buy $1 million worth of the stock I'm short!  Study 
the time line that I've marked on the chart.  I've tried to 
highlight "key" inflexion points.  The four "key points" are the 
alert at 08:20 EST, the jump in yield at 10:05, then the pullback 
in yield to 11:05, then a small breakout in yield at 01:50 (all 
times are EST and come at the end of the 15-minute interval).  
Remember that the bond market opens before the stock market and 
closes before the stock market.

Now!  Of the four "key" inflexion points, the one that is 
probably MOST KEY is the 5.146% YIELD at 01:50 EST.  Remember 
that "rolling retracement" update today at 01:30 EST?  We rolled 
down retracement in the Semiconductor Index (SOX.X) to try and 
define some levels of market maker support.  We needed to do this 
because the SOX was breaking down and we didn't have anyway to 
assess risk in the sector/index.  The first level we were 
monitoring then (and will continue to want to monitor) is the 528 
area.

Semiconductor Index Chart - 15-minute intervals





The Semiconductor Index (SOX.X) was the topic of conversation 
today as this index looked to be breaking recent lows and leading 
sector losers.  It also seemed to be putting pressure on the 
NASDAQ Composite.  As we look at various broader market indexes, 
it's probably unfair to think that the SOX by itself was pulling 
the SPX back to breakeven levels after a higher open and early 
advance.  I'd also argue that the recovery in the SOX from the 
lows of 530.86 was just a turning point that the market had 
decided upon.

I'd argue it was the YIELD action in the bond market and perhaps 
the 10-year YIELD ($TNX.X) at approximately 01:50 EST that had 
stocks finding bidders (perhaps bears looking over their 
shoulder) and that had stocks recovering.  When you study the 
chart of the 10-year YIELD, notice how that little break higher 
at 01:50 EST probably set off some short-covering by bears when 
they felt, "uh oh, it looks like the bond market is going to see 
further selling and I can lock in some gains in semiconductor 
stocks near a retracement support level" and perhaps market 
makers started lightening up on their offers in four-lettered 
semiconductor stocks (and other NASDAQ stocks).

I'll admit, it's rather "simplistic" to think this way, but 
that's the way market makers think.  All a market maker cares 
about is support and resistance levels by witch they will manage 
their inventory risk.  Market participants that are bearish have 
all the recent bad news in earnings and economic slowing in their 
favor.  Their only threat is money coming into the stock market 
from participants that think stocks offer a more favorable 
risk/reward compared to the YIELDS (reward) and safety of the 
treasury.  When the 10-year YIELD kicked higher, I think that's 
when many market makers lightened up on their offers, took in 
some stock near support (as it relates to the SOX) and started 
adjusting inventory should a prolonged bout of selling continue 
in the bond market (higher YIELD).  A market maker is no fool.  
If he/she thinks there will be buyers for stocks based on the 
selling of bond, they'd want to have some inventory of stock to 
sell their customers without having to short it to them and take 
on that risk (a market maker can either sell long to provide 
liquidity to a buyer, or sell short to provide liquidity to a 
buyer).

DIVERGENCE!  I think last night I said something like, "I've 
profited more from divergence that I have from similarity."  
Today we saw DIVERGENCE for a little while as it relates to the 
scenario of higher bond YIELD creates a higher stock market.  
After all, the 10-year bond YIELD never went red today, but the 
SOX sure as heck did and so did the NASDAQ and the QQQ.  That is 
DIVERGENCE for my scenario and all of a sudden I got the feeling 
that the break to new intra-day highs for the 10-year YIELD all 
of a sudden had market participants buying some stocks or at 
least had some market participants not selling as much stock (in 
the belief that money may be freeing up from bonds and that money 
may go into stocks.)  By sessions end, the bulk of the day's 
divergence was erased and stock ended higher.

OK, this is a very short-term perspective, but hopefully you can 
now begin to understand how even the short-term can eventually 
turn into the long-term.  If the market is so focused on what the 
heck bond YIELDS are doing on a 15-minute basis, then perhaps we 
can continue to use the power of this indicator to better asses 
how the market is going to react.

I look at the bond market differently than stocks.  In a way they 
are the same, but they are also very different investment 
instruments.  The understanding of the difference between a stock 
and bond is like night and day.  The stock has no guarantee of 
return, while the bond is a guarantee of stated coupon YIELD and 
return of face value of the bond.

If you can look at some other stocks and try to see what happened 
to their price action around 01:50 EST.  Was there a support 
level nearby?  Did the stock seemingly find buyers out of nowhere 
like most other stocks seemed to find.  Did the stock just 
continue lower and didn't seem to care what the broader stock or 
bond market was doing?

Aha!  If you find a stock that continued lower and didn't seem to 
care about the higher bond YIELD and the turn higher in stocks at 
01:50 EST, then that's DIVERGENCE and that might be tomorrows 
opportunity.  If the market was willing to sell a stock even 
though the bulk of the market direction had turned higher, that 
might mean the MARKET has more stock to sell.

Tomorrow an equity bull wants to see more selling in bonds I 
think.  Today was just one day.  That is very short-term, but we 
all know that the longer-term is built one day at a time!


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

Relatively Speaking by Jeffrey Canavan

On a relative strength basis the Russell 2000 has been 
outperforming the Dow, S&P 500, and Nasdaq, but could small caps 
be losing their appeal?  Yesterday the Russell 2000 fell 1.6% 
more than any other major index.  Today the Russell 2000 gained a 
measly 0.57%, while everybody else gained well over 1.2%.

Relative Strength Charts of Russell 2000 to S&P 500 and Nasdaq




Looking at the first chart, we can see that the Russell 2000 has 
been gaining relative strength against the S&P 500 since December 
of 2000.  That means that small caps stocks have been gaining 
more, or falling less, than the S&P 500.  But that trend spiked 
in June, and has been falling since.  Now the long-term up trend 
is in jeopardy.  If that trend is broken, the S&P 500 might be a 
better place to look for bullish stocks, and the Russell 2000 
better for shorting.

The Russell 2000 has also been smoking the Nasdaq Composite, but 
that trend has flattened out a little since early April.  If 
technology is starting to outperform, small caps must be in 
trouble.  Small caps will continue to go as the rest of the 
market goes, but their period of outperforming may be coming to 
an end if these trends are broken.

*************************Sector Watch****************************

            Weekly   Daily     Overbought    Support  Resistance 
            Trend    Trend      Oversold                         

DJIA        Bearish  Bearish    Oversold      10,200   10,600
NASD        Bearish  Bearish    Oversold       1,940    2,125
S&P 500     Bearish  Bearish    Oversold       1,170    1,205
Rus 2000    Bearish  Bearish    Oversold         465      485

Semis       Bearish  Bearish    Neutral          525      585
Biotech     Bearish  Bearish    Neutral          490      550
Internet    Bearish  Bearish    Oversold         140      170
Networking  Bearish  Neutral    Neutral          300      365
Software    Bearish  Bearish    Oversold         180      200
Banking     Neutral  Neutral    Neutral          625      670
Retail      Neutral  Bullish    Neutral          875      920
Drugs       Bearish  Neutral    Neutral          380      410


                 Percent Change
            Last      Last       Last     Relative Strength
           5 Days    10 Days    30 Days      vs S&P 500
DJIA        (3.4%)     0.6%      (6.2%)       Positive
NASD        (1.6%)     0.6%      (8.6%)       Neutral
S&P 500     (1.4%)     0.8%      (5.2%)       N/A
Rus 2000    (3.3%)    (0.8%)     (6.4%)       Neutral

Semis       (1.8%)    (0.9%)    (15.5%)       Negative
Biotech     (2.3%)    (3.4%)    (14.2%)       Negative
Internet   (10.0%)    (9.7%)    (30.4%)       Negative
Networking  (1.2%)     1.5%     (23.0%)       Neutral
Software    (1.7%)    (3.2%)    (17.3%)       Negative
Banking     (1.8%)     2.4%       0.4%        Positive
Retail       0.4%      8.1%       0.5%        Positive
Drugs       (2.2%)     1.5%      (4.1%)       Neutral

*****************************************************************


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

Alliant Techsystems - ATK Close:$95.44 Change:+1.52 Stop:$92.50 NEW

Comments When Originally Selected on July 24th:

Company Description:
Alliant Techsystems is the Pentagon's largest ammunition supplier 
and the world's largest manufacturer of solid-fuel rocker engines.
This Hopkins, Minnesota-based firm has three business groups: 
aerospace systems, conventional munitions, and defense systems.  
The company's aerospace group makes solid propulsion systems for 
space vehicles, strategic missile systems, and reinforced composite 
structures for aircraft and spacecraft.  Its conventional munitions 
group makes ammunition ranging from small arms to tank ammunition 
for the M1A1 Abrams (the US's main battle tank).  Alliant 
Techsystems' defense systems group turns out smart munitions, 
electronic systems, and batteries. The US government (and its 
contractors) accounts for about two-thirds of the company's sales. 

Fundamentals: 
It's mid-2001 acquisition of Alcoa's Thiokol rocket engine unit 
should cause a 50-percent pop in revenue for the fiscal 2002 year 
ending in March.  Analysts forecast the firm will earn $5.34 per 
share in the current fiscal year on revenue of $1.6 billion.   Last 
year the firm earned $4.80 per share on sales of $1.1 billion.  
This gives the shares a current P/E of 19.8 and an estimated 2002 
P/E of 17.9.  This is inline with the industry average P/E of 17.07. 

Why We Like It:
We liked this stock when we first selected it in June, we liked it 
when we booked some profits on a dip and we still like it now that 
it is bouncing off of support.  The reason we are so bullish has not 
changed.  At their annual meeting on August 7th, shareholders are 
scheduled to vote on increasing the number of outstanding shares 
by 40 million from the current 14.2 million.  This sets the stage 
nicely for a stock split.  Another sign that encourages us that a 
split may be in the cards is historical.  In November 2000 the 
company split 3 for 2.  That split was declared when the stock price 
was $89.00 - below current levels.  Combine the company's strong 
fundamentals, a defense friendly political environment, bullish 
short-term technical momentum with split potential and there is much 
to be bullish about this stock.  Strong downside support is nearby at 
$92.50 and upside resistance at $100.00.  We will tighten up our stop 
when $100 comes near.  For now we will start this play with a stop 
just below support at $91.50.

Updated Comments:

A $1.37 first day gain was a good start for this Bullish selection.  
Volume was solid at 148k shares traded as compared to the 136k daily 
average.  Our outlook remains the same.  We see a short-term test of 
$100 with a good likelihood of besting the 52-week high of $102.00.  
We will shimmy our stop up to $92.50.

Picked on July 24th at $95.44
Gain Since Picked       +1.35
Earnings Date            8/8 (Confirmed)





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

We're are offering a slightly different format on the daily 
Watch List tonight.  With a 164-point relief rally on the Dow
Jones Industrial Average, the everyday investor might believe
that the whole market must have rallied today.  This is far
from the truth.  The DJIA is only comprised of 30 stocks.  
They are 30 stocks picked to help represent the market as a whole
but they are still just 30 stocks.  Today's rally was built on
the positive performances of half the DJIA components.  
Leading the way were AA +4.91%, T +3.54%, SBC +6.32%, HD +4.39%,
WMT +3.76%, MCD +3.20%, and MMM +3.08%.  Obviously this is not
all the winners but they are some of the bigger movers in the
Dow.  Tonight we are going to list two sections.  These are by
no means exhaustive lists of possible plays but merely some
of the more defined opportunities with clear trigger points.
Trade cautiously as many of these opportunities could work well
with very tight stops.

If you like this new format or prefer the old one,
please send an email to james@PremierInvestor.net


------------------------------------------------------
The List to Watch if You Think the Market is Going Up!
------------------------------------------------------



Sun Microsystems - SUNW - close: 15.56 change: +0.66

POTENTIAL TRIGGER EVENT:  SUNW just finished its second up day
in a row.  It managed to close right on its most current down
trending resistance line (of lower highs).  Bullish tech traders
could watch SUNW for a break above $16 as a potential long-play.
Once over $16, potential resistance is at $17 and again near
$19.25.




---

Oracle Corp. - ORCL - close: 19.29 change: +1.08

POTENTIAL TRIGGER EVENT:  Oracle has been on and off the watch 
list for weeks as it continues to consolidate under heavy 
resistance at $20.  The stock set a new higher low yesterday 
near $18 and today's 5.9% move is impressive.  Our potential
trigger to go long is still a close over $20.




---

Microsoft Corp. - MSFT - close: 67.34 change: +1.02

POTENTIAL TRIGGER EVENT:  Shares of MSFT also participated in the
rally today but only managed to add a point after bouncing off its
100-dma near 65.46.  If the stock can continue to climb, the top
of its current range is between $73 and $74.  A potential trigger
to go long would be a close over $68.




---

Siebel Systems, Inc. - SEBL - close: 33.69 change: +2.66

POTENTIAL TRIGGER EVENT:  Now that earnings are already past for
SEBL, the worse may be over.  The stock put in a potential bottom
yesterday with its intraday dip to $30.  If the bulls can keep
this rally alive then shares of SEBL might be able to reach $40
again.  A nice trigger point would be a close over $34.




---

VERITAS - VRTS - close: 39.06 change: +1.68

POTENTIAL TRIGGER EVENT:  Another stock that suffered a large 
drop after is earnings report is VRTS.   Shares of VRTS may
have put in a bottom with its intraday low near $34 back on
the 19th of July.  The stock has quietly been inching higher
since and if the market is going to climb higher the stock
might be able to fill the recent gap.  This would mean a 
potential climb back to the $48-$50 area.  An easy trigger
point to go long would be a close over $40. 




---

VeriSign - VRSN - close: 47.24 change: +2.88

POTENTIAL TRIGGER EVENT:  This one requires extra care as 
earnings are expected tomorrow, July 26th.  Short-term direction
will be a result of how the company reports and if there are
any snags in their outlook going forward.  Looking at the stock,
shares have been building a small base at $42.  A positive close
in the $48 to $50 area (conservative traders should wait for it
to close over $50) could herald a new trend and the stock could
appreciate to resistance near $60.




---

Check Point Software - CHKP - close: 39.50 change: +1.63

POTENTIAL TRIGGER EVENT:  CHKP is another stock that has been
fighting its way back after the negative reaction to its earnings
report.  CHKP is currently a short-play on PremierInvestor.net 
but if the stock closes hits $40, PI will likely close the
short play and bulls can look at this as a potential trigger
to go long the stock.  There is mild resistance at $42.50 but
above this the stock could climb to $50 or higher if the market 
puts in a prolonged rally.  Then again, if the market sours again 
the stock should return to $35 and we'll be looking for new lows.




---

Nokia Corp. - NOK - close: 19.61 change: +0.41

POTENTIAL TRIGGER EVENT:  NOK's next bullish move could be 
dependant on the development and implementation of the next
generation of handsets and the new wireless networks build to
make them work (both referred to as 3G or third generation).
The stock has been consolidating in a tight range between
$19 and $20.  Our potential bullish signal will be a strong
close over $20.  There is obvious resistance at the $21.50 level
but beyond that is anyone's guess.




---

Procter & Gamble - PG - close: 70.00 change: +1.91

POTENTIAL TRIGGER EVENT:  Shares of PG closed with an impressive
2.8% gain climbing throughout the day with a strong finish in
the last forty minutes of trading.  Without looking at the news
to see what has powered the move we see that there was a similar
move in the Retail Index (RLX.X).  PG's stock has seen a strong
climb from its recent June low near $62 and the stock has been
consolidating around its 200-dma and support at $68.  A bullish
trader's potential trigger event would be a close over $70.
Strong overhead resistance can be seen between $76 and $78.




---

eBay Inc - EBAY - close: 61.76 change: +0.04

POTENTIAL TRIGGER EVENT:  This one belongs on both the UP list
and the DOWN list.  If the market continues up, shares of EBAY
could find a bottom at $60 and the upside potential is a short
term gain to $68-$70.  If the market falls then a breakdown 
below $60 could easily lead to a drop to $55 where traders should
see the next support level.  Beyond that, shares could stall at
its 200-dma currently resting near 48.75.




---

Xilinx, Inc. - XLNX - close: 36.46 change: +0.58

POTENTIAL TRIGGER EVENT:  As with most semiconductor stocks, traders
should watch both the broader market and the Semiconductor Index
(SOX.X) for direction of XLNX.  Shares of XLNX are trading near 
support at $35.  As with EBAY above, this one could easily go 
either way.  If the market has a prolonged rally (and the SOX
cooperates) then XLNX could see a potential $40-$42.  If the market
and the SOX falls, then XLNX is likely to retest April lows of 
$30.






--------------------------------------------------------
The List to Watch if You Think the Market is Going Down!
--------------------------------------------------------


Applied Materials, Inc. - AMAT - close: 43.59 change: +0.64

POTENTIAL TRIGGER EVENT:  You should recognize this one as another
semiconductor company.  AMAT has been in a downtrend for a few
weeks and is currently near the top of its channel.  Shares didn't
do much today with the rally and if the market drops AMAT should
fall to $40 and potentially drop to $37.  Keep your eye on the
SOX.




---

Maxim Integrated Products - MXIM - close: 38.16 change: -3.88

POTENTIAL TRIGGER EVENT:  We're not trying to pick on semiconductors
but there are several in this group that really don't look very 
healthy.  Shares of MXIM fell over 9% today, which is pretty negative
in the face of a market rally.  If the drop continues, shares of 
MXIM are likely to hit April lows of $34.  We would not be 
surprised to see shares rally back to 39.25 before rolling over
again.




---

Walt Disney Co. - DIS - close: 26.47 change: +0.32

POTENTIAL TRIGGER EVENT:  For many traders, Disney's stock really
doesn't move fast enough to make it exciting to trade.  Despite
this, shares are once again knocking against support at $26.
The stock has managed to bounce here multiple times since last
December.  If shares breakdown below $26, investors could see a 
drop to $23.50 or almost a 10% move.




---

BEA Systems - BEAS - close: 19.90 change: -1.28

POTENTIAL TRIGGER EVENT:  BEAS is currently a long play on 
PremierInvestor.net but our stop is at 19.50.  If the stock
trades through out stop then traders should be watching for
shares to potentially trade to $15.





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newsletter picks are not to be considered a recommendation
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Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter                 Tuesday 07-24-2001
                                                   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/3155_2.asp
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In section two:

Split Trader
  Split Announcements: None
  New Plays: Biomet, Inc. - BMET (Split Run)
  Play Updates: See Play of Day in section 1 -ATK
  Closed Plays: No closed ST plays

Net Bulls
  New Plays: No new NB plays
  Play Updates: Updates to stops
  Closed Bullish Plays: PCLN, BEAS
  Closed Bearish Plays: Skillsoft Corporation - SKIL

Stock Bottom / Active Trader
  New Plays: No new play for SB
  Play Updates: Stops updated
  Closed Long Play: AmeriPath  - PATH


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

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

============
ST New Play
============

  -------------------
  New Split Run Play
  -------------------

Biomet, Inc. - BMET Close:$48.83 Change:+1.98 Stop:$45.50

Company Description:
An aging population means business is booming for this maker of 
artificial knees, hips, shoulders, fixation devices (bone screws 
and pins), orthopedic support devices, dental implants, and operating-
room supplies.  Through its EBI subsidiary, the firm also sells 
electrical bone-growth stimulators and external devices, which are 
attached to bone and protrude from the skin.  Subsidiary Walter Lorenz 
Surgical markets craniofacial implants and bone substitute material 
for craniomaxillofacial surgery.  Reconstructive devices account for 
some 60-percent of sales, and the US is its largest market (about 70-
percent) of sales).

Fundamentals: 
On July 9th, the company announced record fourth-quarter and fiscal 
year profits.  Quarterly net income increased 17-percent to 33-cents 
per share.  For the fiscal year ended in May 2001, the company earned 
$1.20 per share on sales of $1.0 billion.  In the current year, 
analysts expect the company to earn $1.38 per share on $1.2 billion 
and $1.58 per share in 2003.  This gives them a current P/E of 41 
and a forward one of 35.  The industry average P/E is 30. 
   
Why We Like It:
There are several reasons to like Biomet, it is one of the better 
revenue and earnings producers in the medical device industry, it 
is taking market share (particularly in the knee implant and spinal 
segments) and margins are widening.  However, its recent short-term 
bullishness is coming from a cash dividend of $.135 per share payable 
July 27th and a 3:2 stock split to be issued on August 7th.  On 
Wednesday, the shares jumped $1.98 on a spike in volume to 2.4 
million shares traded.  The volume is more than twice that of the 
previous day, and the highest daily volume since June 12th.  The 
session high and close came within a hair of the 52-week bests set 
in late-June.  Clearly, these shares have got it going and should 
be able to maintain their bullish momentum into the split date. 
We will start these shares with a stop at $45.50. 

Picked on July 25th at $48.83
Earnings Date            N/A (Not Confirmed)





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

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

See Play of Day in section 1


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

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

  -----------------------
  NB Bearish Play Updates
  -----------------------

Change stops:
  Checkpoint (CHKP) to $39.75
  Brocade (BRCD) to $30.88


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

  -----------------
  Closed Long Plays
  -----------------

PriceLine.com - PCLN - Close:$8.27 Change: +0.34 Stop:$7.45 

Too little, too late - at least for us.  An early morning swoon 
to the $17.40 session low barely tripped our $17.45 stop.  This 
is too bad as the shares made an abrupt reversal and ran strong 
for the remainder of the session.  The shares look good again for 
a test of $9.00 and possibly $10.00.   

Picked on July 13th @ $ 8.70
Gain since picked:    - 1.25
Earnings Date:          7/31 (not confirmed)




===

BEA Systems - BEAS - Closed 21.18 Change: +0.47 Stop: 19.50

Tuesday's bearish momentum finally pushed the shares past our stop.
There was big time resistance at $20 and so our stop was just a 
hair below it at $19.50.  That the bearish momentum was strong 
enough close underneath $20 was a bad omen for longs.  The next 
support level is at $17.50.

Picked on July 20th @ $23.01
Gain since picked:    - 1.83
Earnings Date:         08/14 (not confirmed)





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

Skillsoft Corporation - SKIL Close:$30.80 Change:+2.79 Stop:$31.00

This one just did not work.  Shares often suffer in the days 
following the announcement of a secondary offering and SKIL was no 
exception.  It had a technical picture that was a thing of beauty 
to a bear.  That picture was altered abruptly when the offering was 
executed on Wednesday.  The shares were fully subscribed causing the 
stock to rise and shorts to cover.  The newfound bullish momentum 
tripped our stop at $31.00 leaving us with a loss.

Picked on July 24th at $28.01
Gain Since Picked:      -2.99
Earnings Date            N/A (Not Confirmed)





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

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

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

Change stop for Anadarko Petroleum (APC) to $52.00


  ------------------
  Short Play Updates
  ------------------

Change stops:
  CSG Systems (CSGS) to $49.00
  Professional Detailing (PDII) to $67.25

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

  ----------------
  Closed Long Play
  ----------------

AmeriPath PATH Close:$33.02 Change:-2.18 Stop:$34.00

A mixed picture in healthcare continued today and AmeriPath was 
pushed past our $34.00 stop leaving us with a $3.05 per share 
gain on this play.  Support exists at $32.50 and $30.  Once the 
sector weakness passes we would not be surprised to see these 
shares put together an old-fashioned pre-earnings announcement 
rally.

Picked on July 11th at $30.95
Gain since picked:      +3.05
Earnings Date            7/31 (Confirmed)





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