PremierInvestor.net Newsletter Wednesday 08-08-2001 section 1 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/1136_1.asp ================================================================= In section one: Market Wrap: Bonds rally and stocks suffer the consequences Market Sentiment: The Old One-Two Punch Play-of-the-Day: PeopleSoft, Inc. - PSFT (Bearish) Watch List:. Like the Boy Scouts - Be Prepared ----------------------------------------------------------------- U.S. Market Numbers ----------------------------------------------------------------- MARKET WRAP (view in courier font for table alignment) ----------------------------------------------------------------- 08-08-2001 High Low Volume Advance/Decline DJIA 10293.50 -165.24 10479.64 10267.97 1.11 bln 1193/1885 NASDAQ 1966.36 - 61.43 2038.64 1958.67 1.64 bln 1224/2447 S&P 100 607.53 - 11.18 619.86 606.36 totals 2417/4332 S&P 500 1183.53 - 20.87 1206.79 1181.27 RUS 2000 472.62 - 7.71 481.73 471.54 DJ TRANS 2882.04 - 39.42 2931.05 2876.98 VIX 24.36 + 1.71 24.62 22.54 Put/Call Ratio 0.55 ----------------------------------------------------------------- =========== Market Wrap =========== Bonds rally and stocks suffer the consequences Dear Jeff: I was away from my PC when suddenly I heard all of my Q-charts alerts on bond yields start to trigger. There was apparently a very sudden drop. I haven't been watching bond yields for very long, but I've taken quite an interest in what you have taught me about money rotating from stocks to bonds and vice versa. What's up with the sudden drop? Treasury bonds surged this afternoon after strong demand for the 10-year auction of $11 billion and its yield ($TNX.X) was gobbled up by the market as if it were gold. At 01:30 PM EST, all heck broke lose in the bond market as the YIELD for the 10-year YIELD plunged from 5.159% to 5.11% in the matter of 15-minutes (bond yields fall as prices are bid higher). The demand this bond found today was the highest level of demand found in the past eight years with the bid-to-cover ratio (a measure of demand) surging at 2.85 versus an average of 2.23. In essence, there were a lot of market participants on the wrong side of the bond market and when that realization became known, the bond market surged and YIELDS dropped. The YIELD on the 10-year finished to close at 5.054% and represents a very significant move by the market toward a lower risk investment vehicle. That action its success then had other Treasury bonds finding buyers and stocks were left out in the cold as cash moved away from stocks and toward bonds at a frenzied pace. Almost like domino theory would have it, where dominos are lined up on end and then tipped over, traders jumped on the 30-year Treasury. The YIELD on the 30-year ($TYX.X) plummeted from a YIELD of 5.59% to a session closing YIELD of 5.517%. With such demand for today's 10-year bond auction, many participants felt that the upcoming 30-year auction would have the same type of sponsorship. That said, many traders unloaded their stocks to raise cash to buy bonds and stocks began to weaken. Then in another round of "domino theory," the Federal Reserves Beige Book report was released. For those that aren't aware, The Beige Book contains information collected in the prior period (in today's case, prior to July 30th) by the Federal Reserve Bank of San Francisco. Topics discussed in the report were consumer spending that generally remained weak in June and July, although the report did show some areas of scattered pickup in sales around the country. Services, which include demand for business services like advertising, computing, temporary employment agencies all found stagnant or declining demand for their services. One bright spot in this section of the report came from the Dallas, TX market and legal firms in that area. Dallas lawyers noted a pickup in demand due to energy market developments and increased bankruptcy filings. "Every cloud has a silver lining" doesn't it? But wait... it got worse. Manufacturing, Real Estate and Construction, Banking and Finance all experienced stagnant to continued slowing demand. You get the picture, there wasn't a lot of positives in the report and that 5% Treasury bond YIELD all of a sudden looked very attractive from the perspective of potential risk/reward. The Beige Book report and information provided in it wasn't that much of a surprise today and I'm not thinking for a moment that it was the driving factor for today's stock declines. It sure helped fuel the decline, but it wasn't the ultimate cause. What set things off was the Treasury auction and I truly feel it was the sharply lower YIELD and the markets perception of what that sharp decline in YIELD was saying that had traders flushing some stocks and running to bonds. We've talked before in great detail about how the market differentiates and perceives risk/reward between stocks and Treasury bonds. Treasuries are backed by the full faith and credit of the U.S. Government, stocks are backed by a piece of paper called a stock certificate usually with a par value of $0.01. The "reward" for the Treasury bond is the stated interest payment, while the potential reward for a stock is unlimited. One subscriber sent me an interesting e-mail. He wrote, "I was away from my PC when suddenly I heard all of my Q-charts alerts on bond yields start to trigger. There was apparently a very sudden drop. I haven't been watching bond yields for very long, but I've taken quite an interest in what you have taught me about money rotating from stocks to bonds and vice versa. What's up with the sudden drop? This subscriber was alert to the potential move coming in stocks. I'm not sure if he acted on his alertness, but at least he knew something was about to happen. You can tell from his e-mail that he got more than one alert from the bond market as he most likely had alerts set on the 5-year ($FVX.X), 10-year ($TNX.X) and 30- year ($TYX.X). This morning in the 09:00 EST I felt it was important to point out the 30-year YIELD alert at 5.581%. That YIELD alert was triggered at 1:42 EST and the S&P 500 ($SPX.X) was trading 1,200. By session's end, the SPX had lost 1.4% of its value to close at 1,183. Stocks like PeopleSoft (NASDAQ:PSFT) (in today's Net Bulls section titled "StockSoft") suffered more than a 1.4% loss from its 1:45 EST trading level of $41. The stock fell to a session low of $38 and finished trading at $39.51. PeopleSoft Chart - last 7 months Shares of PeopleSoft (NASDAQ:PSFT) outperformed the market to the downside today, but bulls in this stock may have just experienced the first bit of pain that could come from a broader market decline. Tomorrow, I'd ideally like to see the stock rally to the $41 level as a good entry point. this would help reduce risk for a bearish trader. The S&P 500 Index (SPX.X) should have some good resistance starting to build at the 1,200 level and that should keep things in check for PeopleSoft. Traders looking to play the stock at the open, should the market be looking weak, can still play the stock short, but I'd only initiate 1/2 position short in the stock. I've slapped a retracement bracket on the stock from the recent low to recent high. For this trade to really get going in the bears favor, I feel the stock needs to close below the $38.25 level. This would be wonderful correlation not only with retracement, but also the 200-day MA, which is currently at $38.23 (see black box in lower left hand corner of chart). The reason I'd only be looking to short 1/2 position at current levels of $39.51, is that the stock could conceivably rally to downward trend near $41-$43. If you normally only like to short $5,000 worth of stock, then only short $2,500 at current levels. If the stock falls to $34 or $30, then you've got a piece of the action. Should the stock rally against you from a short at $39.50 to resistance, you will not be panicked and be able to better assess MARKET action against stock action. Then if PSFT were to consolidate near resistance, and begin showing weakness once again, the trader who has properly managed his trading activity can round up to full position short at the higher price (at the higher price, there is more potential reward and less risk to your stop). I feel this stock has at least the $34.31 level in it based on the technicals. If I'm wrong I'm gone at $45.25. Hey! That rhymes. Tomorrow could be wild. Today's bond market activity caught a lot of traders off-guard and tomorrow morning I want to be watching bond YIELD very closely to see if there is any type of follow through. If not, then I want to be very careful with any shorting of stocks. I'm looking at tonight's bullish percent readings. The most volatile of the bullish percent indicators comes from the NASDAQ-100 bullish % ($BPNDX). Tuesday nights reading was 49%. Without looking, what do you think today's action had on this indicator? Answer: No effect. The reading remains at 49% and there was no net loss of stocks showing a buy signal on their chart. To comprehend this, go to www.stockcharts.com and pull up a point/figure chart of eBay (NASDAQ:EBAY). That stock actually gave a point/figure buy signal today at $66. This was the short- term traders goal from bullish support at $60 (see 08/03 09:00 EST Update). The stock traded $66.10 today and then we got the bond market action and The Beige Book report. The stock finished at $62.20. Watch Microsoft (NASDAQ:MSFT) too. The stock just continues to trade above bullish support. This stock fell just 2% today. The bar chart looks terrible, but for some reason the stock hasn't broken $64. As long as this stock stays above $64, I would be cautious on going overboard with shorting. The best shorts remain those that offer the best risk/reward. If a stock has 20% downside to support and only risking 5% to stopping point just above resistance, then those are the stock I feel are best served as short candidates. Conversely, stocks that are trading near support that only have 5% risk downside and 30% upside and have been finding sponsorship in the past week can turn into big trouble if your short and the MARKET turns against you. Don't be surprised if stocks find buyers at some point tomorrow. A key level I'd be watching as it relates to the S&P 500 ($SPX.X) is the 1,176 level. Look at this morning's 09:00 update and learn to correlate the bond YIELD chart with that of the SPX. Right now it is a game of progression. I'd argue that the recent range for the SPX has been approximately 1,176 to 1,228. ================ Market Sentiment ================ The Old One-Two Punch Cisco delivered a left hook to market's chin right at the opening bell. The market was a little dazed and confused, but managed to stay on its feet. Stocks even managed to fight back, and deliver a few bullish blows themselves. But then they looked down for a second, and the Fed landed a haymaker that knocked stocks to the canvas. The Fed's haymaker was the latest edition of its beige book, which is a survey of economic conditions that the Fed uses for setting interest rates. The gist of the book is that this economic downturn is going to make the great depression look like a picnic. Okay, it wasn't nearly that bad, but when investors are as nervous as a long-tailed cat in a room full of rocking chairs, it doesn't take much to start a selling spree. The Fed basically said that manufacturing continues to weaken, that weakness is starting to spill over into other sectors, and retail sales are sluggish. For the full story go to http://www.federalreserve.gov/fomc/beigebook/2001/20010808/default.htm If retail sales were in fact sluggish, we should find out tomorrow when July retail sales are released. Should the numbers confirm that consumer spending is waning, retail stocks, and the rest of the market, could be in for a rough day. Retailers weren't the worst sector today, but the Retail Index did lose 2.5% in the last two hours of trading. What was the worst sector of the day was oil service, followed closely by software, networking, and semiconductors. Internet and biotechnology was also bruised and battered, and the only sector left standing at the end of the day was gold and silver. So is the market down for the count? It might need a standing eight count, but there are a lot of rounds to go. The question is whether the market has the chin of Rocky Balboa or Trevor Berbick. After suffering a second round knockout at the hands of Mike Tyson, Trevor Berbick was asked by a report what he thought of the fight. His response was, "I like eggs." Hopefully the market can take a punch better than that. *************************Sector Watch**************************** Weekly Daily Overbought Support Resistance Trend Trend Oversold DJIA Bearish Bearish Neutral 10,200 10,600 NASD Bearish Bearish Neutral 1,940 2,125 S&P 500 Bearish Neutral Neutral 1,170 1,240 Rus 2000 Neutral Neutral Neutral 465 495 The daily trend of DJIA and NASD have been changed to bearish after dropping below their 25-day moving averages, and breaking their up trends. Overbought/Oversold status is neutral, but rapidly approaching oversold. Weekly Daily Overbought Support Resistance Trend Trend Oversold Semis Neutral Neutral Neutral 535 660 Biotech Bearish Bearish Oversold 490 550 Internet Bearish Neutral Overbought 140 170 Networking Bearish Neutral Neutral 300 365 Software Bearish Bearish Oversold 180 200 Banking Bullish Neutral Overbought 640 675 Retail Bullish Neutral Neutral 875 920 Drugs Neutral Neutral Neutral 380 410 Keep and eye on software and biotechnology tomorrow. Both sectors are sitting right at support. Semiconductors broke through their support level today. Internet and networking continue to trade sideways, thus their neutral trend ranking. Percent Change Last Last Last Rel Strength Point and 5 Days 10 Days 30 Days vs S&P 500 Figure Signal DJIA (0.6%) 2.1% (0.4%) Neutral Buy NASD 0.0% 3.5% (1.1%) Neutral Sell S&P 500 (0.6%) 2.8% (1.2%) N/A Sell Rus 2000 (0.9%) 1.3% (0.8%) Neutral Sell Semis 1.5% 12.1% 2.1% Positive Buy Biotech (3.0%) 3.6% (11.6%) Neutral Sell Internet 4.1% (1.1%) (16.2%) Negative Sell Networking 2.0% 8.8% 0.3% Neutral Buy Software (1.0%) 4.8% (11.0%) Neutral Sell Banking 1.0% 4.1% 2.8% Positive Buy Retail (1.0%) 2.6% 3.8% Neutral Sell Drugs (1.2%) 3.3% (0.5%) Neutral Buy ***************************************************************** ========================= Play-of-the-Day (Bearish) ========================= PeopleSoft, Inc. - PSFT Close:$39.51 Change:-2.77 Stop:$45.50 Comments When Originally Selected On August 7th: Company Description: PeopleSoft is the third largest developers of enterprise resource planning (ERP) software after SAP and Oracle. ERP software helps clients manage human resources, financial, manufacturing, purchasing, sales and inventory planning. The Pleasanton, California-based company's vertical applications target the health care, financial services, public-sector, and communications industries. PeopleSoft generates 65-percent of sales from related software maintenance, training, and consulting services. After six consecutive years of doubled sales, the company saw demand for its flagship ERP products diminish due to increased competition and a saturated market; it slipped into the red in 1999 for the first time in the decade. In response, the company launched an aggressive array of new products and services, particularly in the customer relationship management (CRM) industry. The company is counting on its Internet-based PeopleSoft 8 CRM offering to make further inroads into competitor Siebel Systems' dominant market share. Fundamentals: Analysts forecast the company will earn 60-cents on sales of $2.1 billion in the current fiscal year and 83-cents on $2.4 billion in 2002. Last year, the company earned 31-cents on sales of $1.74 billion. This gives the company a 2001 earnings growth rate of 93- percent (industry average is 3.9-percent), a current P/E of 136 and a forward 2001 one of 71 (industry average is 43) and a PEG of 2.86 (industry average is 2.18). For the fourth quarter, the company has said it was comfortable with analysts' current estimates of 19 cents per share. Why We Like It: PeopleSoft's emphasis on web-based applications have scored big with customers and enabled it to rebound after a tough 1999. However, the shares are richly valued making them vulnerable to dips during market pullbacks. Although the company is predicting a solid year with license-revenue growth "slightly ahead" of the top of the 30-percent to 35-percent annual growth the company had projected, and that full year EPS would be at the "high end" of the company's 55 to 60-cent range, investors are still concerned. They question whether the firm can maintain this robust growth when even the company admits the selling environment has become more difficult. After bouncing off a session low of $29.80 on July 20th , the shares put together an impressive run to a session high of $44.78 on August 1st. Unfortunately for longs, this high represented the second failed attempt to top $45 this month. Since then, the shares have been noticeably weaker and seem poised to test lower levels. On Tuesday, after opening at $42.41, longs managed to drive the shares in the morning hours to a session high of $44.26 before a strong wave of selling pushed the shares lower for the remainder of the trading day. This selling was on a spike in volume from Monday's 4.5 million shares traded to 6.8 million on Tuesday, suggesting the bears have momentum. This makes likely a test the next level of downside support at the 200-day moving average of $38.41, and possibly support offered at $35 and the July $29.80 low. We will start this Bearish play with a stop at $45.50, which is just above the thus far unreachable $45 resistance level. Updated Comments: Our outlook hasn't changed much. Our first day for this Bearish selection gave us a $2.77 gain and we believe there is more downside weakness than upside risk. A point and figure analysis will not generate a buy signal until the shares reach $45. The downside shows good potential of a move to $34 and a not unreasonable shot at $30. A big inflection point will be reached when the shares approach the $34 level. We will tighten our stops to protect profits when we get closer. Picked on August 7th at $42.38 Gain since picked: -2.77 Earnings Date N/A (Not Confirmed) ========== Watch List ========== COMMENTARY: Worried that the market is headed for an extended downturn? Check out these stocks on the watch list. Ask any truly experienced trader and they'll tell you that to succeed you need to be able to play the downside of the market too. We're not making any predictions about market direction here but if certain indices breakthrough key support levels then these stocks (and a lot more) should be making large moves to the downside. Will you be ready to capitalize on them? ================================================================== BEA Systems - BEAS - close: 19.79 change: -2.76 WHAT TO WATCH: If the software index is going to continue its recent fall then BEAS could easily be setting new lows soon. The GSO.X is perched just above support at 180. A fall below this level would be bad news for software stocks. The previous low back in April was south of 155. In contrast, the April low for BEAS was 20.18, a low already surpassed. More recently back in July, BEAS traded as low as 19.01. Today was a pretty big move for the stock and there could be a bounce but if the new trend is down then BEAS is looking pretty weak already. --- Siebel Systems - SEBL - close: 30.69 change: -3.78 WHAT TO WATCH: Another software casualty, shares of SEBL have been hammered today gapping down to fall almost 11%. The stock is sitting precariously above support at $30. Shares have not been under the $30 mark since late April and the yearly low is $22.95 on April 3rd. A potential trigger to watch is the stock under $30. From there, sellers are likely to take it down to support at $25. --- Brocade Communications - BRCD - close: 33.70 change: -4.24 WHAT TO WATCH: Bring a towel, the bears are probably drooling over this one. BRCD has been fighting to breakout above resistance at $39/$40 for days. Today's punishing 11% drop plops the stock back under the top of its descending channel. If the new trend is down, bears could be eyeing the bottom of this channel near $25. If things really turn sour, the April low for BRCD was $16.75. --- Amgen, Inc. - AMGN - close: 60.89 change: -1.76 WHAT TO WATCH: Keep your eye on the Biotechs. Always subject to volatility, the biotechs could really be hurt if investors loose hope in another market downturn. At 497, the Amex Biotech Index (BTK) is flirting with support at 490. If the group drops below this level, AMGN is likely to feel the pain. Currently, AMGN shares are trading above support of $60. If the stock breaks down, we're likely to see the selling take it down to $56 or $54 which are July support levels. In contrast, the April low for AMGN was $50.31. ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright © 2001 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter Wednesday 08-08-2001 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/1136_2.asp ================================================================= In section two: Split Trader Split Announcements: ATK, EQR New Plays: No new plays. Play Updates: No play updates Closed Plays: No closed plays Net Bulls New Plays: No new plays Play Updates: See Play of Day in section 1 - PSFT Closed Plays: EMC, CTXS, RFMD Stock Bottom / Active Trader New Plays: No new plays. Play Updates: No play updates Closed Plays: No closed plays Trading Ideas Value Plays With Bullish Signals Breakout to Upside (Stocks $5 to $20) Breakout to Upside (Stocks over $20) Breakout to Downside (Stocks over $20) Recently Overbought With Bearish Signals (Stocks over $20) ================================================================= Split Trader (ST) section ================================================================== =================== Split Announcements =================== ATK Surges on Split Announcement, Earnings and Outlook Before the opening bell, military ammunition supplier Alliant Techsystems (NYSE:ATK) announced a 3-for-2 stock split of its common shares, payable September 8 to shareholders of record as of August 17. The news was no surprise to Premier Investor analysts as it was noted on this week's "Expected Splits" list that ATK would be announcing a split today. Shareholders met yesterday to vote on an amendment to increase the number of authorized shares to 60 million in order to accommodate the additional shares generated from the split. There are currently 14.2 million shares outstanding and a float of 12.3 million. The split announcement came in conjunction with strong Q1 earnings of $1.22 per share, surpassing estimates by $0.03 and increasing from the prior year by 13 percent. Sales for the first quarter, which ended July 1, increased 46 percent to $395 million from $270 million last year. The rise in profits is attributed in part to the acquisition of Thiokol Propulsion. The Company also raised its second quarter outlook to $1.28-$1.30 and the fiscal year 2002 to $5.35-$5.40. Analysts have been calling for a profit of $1.26-$1.28 for Q2. ATK shares climbed as high as $99.30 upon today's announcement and are currently trading at $96.66, up +0.46 from the prior close. ATK is a $1.6 billion aerospace and defense company with leading positions in propulsion, composite structures, munitions, and precision capabilities. The company, which is headquartered in Hopkins, Minn., employs approximately 9,600 people and has two business groups: Aerospace and Defense. === Equity Residential Declares First-Ever Stock Split Equity Residential Properties Trust (NYSE:EQR) announced after Tuesday's closing bell that its Board of Trustees approved a 2:1 stock split of its common outstanding shares. Dividends will be paid on October 11, 2001 as the company's first stock split since it began trading publicly on the New York Stock Exchange. There are currently 133.6 million shares outstanding, a float of 108.2 million and 350 million shares are authorized for issuance. The Company also increased its quarterly cash dividend to $0.865 per share from the previous dividend of $0.815. The payable date is October 12 for shareholders of record as of September 20. EQR opened at $54.54 on Wednesday, just off the 52-week high of $57.85 hit on August 6, 2001. Over 326 thousand shares trade hands on a 3-month average. About the Company: Equity Residential Properties Trust is the largest publicly traded apartment company in America. Nationwide, Equity Residential owns or has investments in 1,079 properties in 35 states consisting of 225,069 units. For more information on Equity Residential please visit our website at www.eqr.com . chart = ================================================================== Net Bulls (NB) section ================================================================== =============== NB Play Updates =============== =============== NB Closed Plays =============== ----------------- Closed Long Plays ----------------- E M C Corp. - EMC - close: 18.30 change: -1.28 stop: 18.50 From the word go, this play was in trouble today. Due to the earnings miss and warning from Emulex on Tuesday, EMC gapped down $0.56 at the open. For additional punishment, by mid- morning the news hit the wires that Sun Microsystems and Hitachi joined forces in a multi-billion dollar deal to license and sell each other's storage software. Ouch. The sell-off continued to the day's low of $18.06 and looked like it would close the day there until buyers finally stepped in at the last minute, sending prices up a few pennies to $18.30. Picked on July 27th @ $20.01 Gain since picked: - 1.51 Earnings Date: 07/18 --- Citrix Systems - CTXS - close: 32.06 change: -3.07 stop: 34.00 Selling action was pretty solid throughout the day but shares of CTXS didn't trip our stop until just before 2:00 pm ET. The dismal performance by the GSO software index, gapping down and then failing a rally back to 190 put the bulls on the run in a hurry. Of course, the catalyst for this tech rally's rout was the disappointing CSCO outlook and the dismal numbers from the Fed's Beige book report. The GSO found support at 180 back on July 24th and the index is already close to it now at 181.54. Keep your eye on this level for the software index's future short- term direction. Picked on August 2nd @ $36.69 Gain since picked: - 2.69 Earnings Date: 07/19 --- RF Micro Dev - RFMD - close: 26.70 change: -3.22 stop: 28.50 Shucks! RFMD was holding up so well too. The semiconductor index (SOX.X) started the day in positive territory before loosing its grip after 11:30 this morning. Someone hit the sell button and it didn't stop until the index had blown through (hopeful) support at the 600 level. RF Micro quickly followed suit and dropping through our stop just after 12:00. The continuing controversy over the semi group among analysts will keep this and similar stocks in a volatile mode until someone can convince the rest of us one way or the other. With the NASDAQ under 2000 bulls are probably praying for support at 1940 once again. Despite the ups and downs we still managed a small gain on the play. Picked on July 26th @ $27.79 Gain since picked: + 0.71 Earnings Date: 07/17 ================================================================== Stock Bottom / Active Trader (AT) section ================================================================== ================== Trading Ideas ================== This section contains stocks that meet criteria which may make them of interest to long and short side traders. These are not recommendations, nor have they been reviewed by PremierInvestor editors for investment potential. However, each of them has technical and fundamental characteristics that make them worthy of further review by traders and investors looking for fresh ideas. New stocks will appear daily following the market close. --------------------------------- Value Plays With Bullish Signals --------------------------------- Ticker Company Name Close Change ASFC Astoria Financial Corp. 60.36 +0.54 PC Perez Companc Sa 12.93 +0.88 HSC Harasco Corp 32.20 +1.38 TTC Toro Co 47.76 +0.61 FBC Flagstar Commercial Cp 23.00 +1.06 STW Standard Commercial Cp 19.00 +2.00 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- Ticker Company Name Close Change APCS Alamosa Holdings Inc 18.20 +1.25 STW Standard Commercial Cp 19.00 +2.00 CURE Curative Health Services 9.40 +1.05 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- Ticker Company Name Close Change AOC Aon Corp 37.99 +1.44 CBE Cooper Industries 60.25 +6.26 KOF Coca-Cola Femsa Sa De Cv 22.20 +1.02 RL Polo Ralph Lauren Corp 25.10 +1.95 HSC Harsco Corp 32.20 +1.38 JBX Jack In The Box Inc. 31.16 +1.21 ----------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- Ticker Company Name Close Change SC Shell Transport & Trading 46.50 -1.18 EPG El Paso Corp 45.20 -2.90 CPN Calpine Corp 30.10 -2.78 IVX Ivax Corp 30.59 -1.36 BVF Biovail Corp. 44.00 -2.15 BRW Broadwing Inc. 20.62 -1.13 ------------------------------------------------------------ Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------------------------- Ticker Company Name Close Change TXN Texas Instruments Inc. 33.66 -1.79 NOK Nokia Corp Ads 20.10 -1.36 MER Merrill Lynch & Co 53.60 -1.28 VRTS Veritas Software 38.99 -4.19 SCM Swisscom Ag Ads 27.15 -0.66 PSFT PeopleSoft 39.51 -2.77 ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. Please read our disclaimer at: http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html ***************************************************************** ADVERTISING INFORMATION For more information on advertising in PremierInvestor.net Newsletter, or any Premier Investor Network newsletter please contact Contact Support. ***************************************************************** Copyright © 2001 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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