PremierInvestor.net Newsletter Wednesday 08-15-2001 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/081501_1.asp ================================================================= In section one: Market Wrap: NASDAQ-100 has case of bad breadth Market Sentiment: Stocks Explode Play-of-the-Day: Beazer Homes USA, Inc. - BZH (Bearish) Watch List: Lots to Watch for Bulls & Bears! ----------------------------------------------------------------- U.S. Market Numbers ----------------------------------------------------------------- MARKET WRAP (view in courier font for table alignment) ----------------------------------------------------------------- 8-15-2001 High Low Volume Advance/Decline DJIA 10345.95 - 66.22 10469.74 10340.76 1.06 bln 1625/1449 NASDAQ 1918.89 - 45.64 1975.18 1918.74 1.44 bln 1541/2128 S&P 100 603.02 - 4.00 609.40 602.50 Totals 3166/3577 S&P 500 1178.02 - 8.71 1191.21 1177.61 RUS 2000 478.95 - 1.24 481.19 476.50 DJ TRANS 2833.66 - 25.50 2865.30 2830.74 VIX 23.77 + 0.76 24.01 23.05 Put/Call Ratio 0.74 ----------------------------------------------------------------- =========== Market Wrap =========== NASDAQ-100 has case of bad breadth by Jeff Bailey Traders might have thought they went color blind today if they were looking at the NASDAQ-100 heat map. There was a lot of red on the map by session's end, as 95 of the 100 stocks ended the session in negative territory. It would be an understatement to say that today "tech breadth" was negative. There are some stocks in the NASDAQ-100 that most likely won't be there in coming months. There are some hard lessons still being taught in some of these stocks. Metromedia Fiber Networks (NASDAQ:MFNX) fished today's trading session with a closing price of 179/256 (roughly 70 cents). I thought we went decimal sometime ago and got rid of fractions. Have things gotten so bad for some technology stocks that we're once again measuring some stock prices in increments of 1/256? With a bearish price objective on this stock from its point and figure chart of N/A (not applicable), then perhaps the 1/256 fraction is justified. Today's 38.6% may be just a drop in the bucket when all is said and done. The NASDAQ-100 has some house cleaning to do. The who's who of the NASDAQ-100 is getting smaller. Stocks like Exodus Communications (NASDAQ:EXDS) once fetched a handsome price as high as $89.81. Today's 14.54% decline was enough to have this stock ranking as the second largest loser in the NASDAQ-100 as the stock finished today's trading at $1.41. Today's five gainers in the NASDAQ-100 were Network Appliance (NASDAQ:NTAP), up 2.82% to $13.23 (I'd rate this stock as "avoid" at this time), CNET Networks (NASDAQ:CNET) up 1.65% to $11.03 (stock has been trying to set a series of higher lows, but highs have been lower too), Biogen (NASDAQ:BGEN) up 0.24% to $57.88 (lots of overhead supply from $60 to $65), Applied Materials (NASDAQ:AMAT) up 0.21% to $43.74 (stock is trapped in a wedge with downward trend at $50 and upward trend at $40) and finally NVIDIA Corporation (NASDAQ:NVDA) up 0.11% to $85.95 (support looks firm at $72, which is upward trend, recent 52-week high on May 23rd at $100 is psychological resistance). Internet stocks as represented by the CBOE Internet Index ($INX.X) lead sector losers today, falling 3.64%, and look determined to test the early April lows near 121. Shares of Yahoo! Inc. (YHOO) slipped back below the $15 level on Tuesday and carried that momentum lower today. Earlier this month, shares of YHOO! traded near the $18 level as rumor had surfaced that the company might be a takeover candidate by Sony (SNE). Since that time however, the stock has lost roughly 20 percent of its value and looks lower still. Today, shares of Yahoo! Inc. (YHOO) trades as low as $13.84, but managed to stage a late session recovery to close at $14.26. I'd continue to rate this stock "avoid." Software stocks, particularly the GSTI Software Index (GSO.X) lost further ground today, bolstering a 3.59% loss. This group ranked second on the list of sector losers. Shares of BEA Systems (BEAS) set another 52-week low when the e-commerce software maker guided analysts lower in last night's conference call. While the stock had traded higher in after-hours trading on Tuesday, the single digit growth rate guidance given to analysts in the company's earnings conference call didn't seem to be what institutions were looking for shorter-term. Rumor of Oracle (ORCL) potentially winning a $100-million contract from AT&T (T) wasn't enough to keep the stock from declining 3.47%. ORCL flirted with the $15 level to close at 15.01. After trading at $20 in late July, the software maker has seen its stock decline nearly 25% in the past two weeks. Semiconductor stocks ran a close third in sector losers as the Semiconductor Index ($SOX.X) lost 3.54 percent and closed at a 15 session low of 572.92. About midway through today's trading session, several newswires had released a story that Vitesse Semiconductor (VTSS) was guiding lower on quarterly numbers. This brought sellers into the group and quickly saw broader technology trade lower. Fifteen minutes later, it was discovered that the "warning" was actually old news from a previous 10-Q filing by the company. At that point, it seemed as if some phone calls had been made to sell stocks in the group and when the news story was recanted as "erroneous" the selling didn't seem to stop. This is one of the few technology sectors still remaining above an upward trend, which lies at the 550 level. I won't be surprised if that level is tested in the next several sessions. There were some bright spots today. While the weakening US dollar renewed some fears of inflation there were stocks that seemed to benefit from the dollar's weakness. At one point during the session, the Dow Industrials (INDU) had managed to claw their way back to a breakeven level as shares of the larger multinationals that derive the bulk of their business outside the United States, saw their stocks rising. Dow component Coca Cola (KO) jumped 3.34% to close at $47.58. Heavy equipment maker Caterpillar (CAT) rose 2.54% percent to $55.23 and the world's largest fast food restaurant, McDonald's (MCD), rose 1.78% to $28.49. Many of these larger multinational companies have been complaining that the strong US dollar has been hurting results. Today's further weakening of the dollar seemed to be a catalyst for buying in the shares. Watch the US$ conversation to be front and center in coming sessions. Many analysts feel a gradual decline in the dollar is OK, but a rapid decline troublesome for many stocks. The US consumer has remained relatively strong as the US dollar's strength has provided purchasing power for foreign imports. A rapid decline in that purchasing power could further dampen a chance for economic recovery. I'm just hoping I get my tax refund check soon. Today, you and I lost some purchasing power and that $300 piece of foreign electronics I wanted to buy got a little more expensive. ================ Market Sentiment ================ Stocks Explode by Jeffrey Canavan Oil service and natural gas stocks exploded, everything else fizzled out. Tech sectors lost over three percent, and the Nasdaq finished down 2.32% at 1918. The Nasdaq has tested this level before, but has always been able to bounce off support. Today's lack of a bounce has the index below 1920 for the first time if four months. The Dow held up a little better, losing only 0.63%. Most of the Dow's strength came from companies that would benefit from a weaker dollar such as Coke, McDonalds, and Kodak. Natural Gas Index Daily Chart The American Gas Association reported a 3 billion cubic foot rise in natural gas inventories, well below analysts estimate of 63 billion. Natural gas futures exploded 12.6%, and natural gas stocks went along for the ride. Before jumping into natural gas stocks, be aware that this was most likely a one-week anomaly due to the heat wave that hit the east coast. The Natural Gas Index (XNG.X) also met resistance at the 50-day moving average, and has overhead resistance at 220. If the index can close above that level, perhaps natural gas stocks will start to heat up. Internet Index Daily Chart One index that has cooled off lately is the Internet Index (INX.X). Internets have been declining for six straight days, and are now within eight points of the dreaded April low. The key to this sector is eBay. Should eBay lose support at $59, this sector is in trouble. Computer Technology Index Daily Chart With Dell and Hewlett Packard reporting earnings after the bell tomorrow, the Computer Technology Index (XCI.X) could be tested tomorrow. The index is currently sitting at a 61.8% retracement of its April to May gains, and meager earnings or outlooks from two of its bigger components could push XCI below support. Lastly we have homebuilding stocks that could cave in if housing starts and permits come in weaker than anticipated. With today's knee-jerk reaction to a false profit warning from Vitesse Semiconductor, it doesn't look like investors need much of a reason to start selling. We also get CPI data, export sales, and unemployment claims to stir the pot. Should any of this data come in negative, it will indeed be interesting to see how the market reacts. *************************Sector Watch**************************** Support Close Resistance DJIA |10,200 | |10346 | | | | 10,600| NASD | 1,890 | 1919 | | | | | 2,125| S&P 500 | 1,170 | 1178 | | | | | 1,240| Rus 2000 | 465 | | | 479 | | | 495| Semis | 535 | | 573 | | | | 660| Biotech | 473 | | | 503 | | | 550| Internet | 121 | | 130 | | | | 160| Networking | 300 | | 310 | | | | 365| Software | 166 | | 171 | | | | 200| Banking | 650 | | | 673 | | | 685| Retail | 858 | | | 883 | | | 920| Drugs | 380 | | | 397 | | | 410| Support Alerts: Nasdaq, Software Resistance Alerts: _______________________________________________ | Long | Short | Strength | Relative | | Term | Term | of | Strength | | Trend | Trend | Trend | vs S&P 500 | DJIA | Bearish | Bearish | Weak | Neutral | NASD | Bearish | Bearish | Weak | Negative | S&P 500 | Bearish | Bearish | Weak | -- | Rus 2000 | Bearish | Bearish | Weak | Neutral | Semis | Bearish | Bearish | Weak | Neutral | Biotech | Bearish | Bearish | Weak | Neutral | Internet | Bearish | Bearish | Strong | Negative | Networking | Bearish | Bearish | Weak | Neutral | Software | Bearish | Bearish | Gaining | Negative | Banking | Bullish | Bullish | Gaining | Positive | Retail | Bullish | Bearish | Weak | Neutral | Drugs | Neutral | Neutral | Weak | Positive | _____________________________________ | Short-Term | | Point and | | Overbought/ | Momentum | Figure | | Oversold | | Signal | DJIA | Neutral | Flat | Sell | NASD | Neutral | Flat | Sell | S&P 500 | Netural | Flat | Sell | Rus 2000 | AP OB | Flat | Sell | Semis | Neutral | Flat | Buy | Biotech | AP OB | Rising | Sell | Internet | Oversold | Falling | Sell | Networking | Oversold | Flat | Buy | Software | Oversold | Flat | Sell | Banking | Neutral | Flat | Buy | Retail | Oversold | Falling | Sell | Drugs | Overbought | Flat | Buy | AP OB = Approaching Overbought AP OS = Approaching Oversold ***************************************************************** ========================= Play-of-the-Day (Bearish) ========================= Beazer Homes USA, Inc. - BZH Close:$63.27 Change:+1.91 Stop:$65.00 Orginal Comments When Selected on August 6th: Company Description: At an average price of $190,700, Beazer's single-family homes are built for entry-level and first time move-up buyers. The company operates in 14 states, primarily in high-growth regions. The company originates mortgages for its homebuyers through its Beazer Mortgage subsidiary and provides title insurance services in selected markets, including Florida, Texas, and Virginia. Fundamentals: The company is expected by analysts to earn $8.01 per share in the fiscal year ending in September 2001 and $8.97 in 2002. On August 2nd the company reported that home sales increased 28.8-percent in July to 809. Why We Like It: Solid levels of consumer spending have kept the market and economy from a complete meltdown. One of the beneficiaries of this spending has been the homebuilders. In July, Beazer Homes reported that third-quarter earnings rose 88-percent. However many traders are seeing the current valuation of homebuilders as being at a high water mark - i.e. nowhere to go but down. Although 95.8 percent of Americans have jobs, there is concern that they may ratchet down their spending if they become nervous that the next layoff list may include their name. On Monday, a Challenger, Gray & Christmas survey announced that their were 205,975 job cuts in July. This is the largest number of layoffs in the eight-year history of the survey. Coupled with signs of weaker retail sales and a general perception that the next Fed interest rate cut will be only 25 basis points (quarter point), traders are not seeing how the homebuilders can maintain their bullish run. Since the $79.35 session high on July 20th, Beazer shares have been on a pronounced slide. The selling momentum has really picked up steam with the shares losing $9.87 in the last three trading sessions on increasing levels of trading volume. They are now sitting right at their lower trend line. A close below the 50-day moving average at $64.67 would represent a downside break of this bullish channel that has been in effect since last March. Given the overwhelming amount of bearish sentiment we foresee this as a likely probability. We have a price target of $58.00 and a stop at $70.00. Updated Comments: Although we are still sporting a $1.81 per share gain on this Bearish selection, the stock has rallied from a low of $59.25 just three days ago. We were tempted to close out this play and walk with our ample gains, but we decided to hang on pending Thursday's release of the figures for new residential construction. Although recent strength in BZH shares are coming from traders counting on a positive report - we just don't see it. There is ample evidence from the builders that activity is slowing. In addition, our neighbors to the north reported a steep decline in housing starts a few weeks ago and we do not believe the US numbers are going to show a divergence. We are going to hold our position, but maintain a protective stop at $65.00. Picked on August 6th at $65.08 Gain since picked: +1.81 Earnings Date 07/23 (Confirmed) ========== Watch List ========== Advanced Fibre Comm. - AFCI - close: 27.70 change: +1.05 WHAT TO WATCH: Where do we start? How about a tech stock that is actually gaining ground? AFCI has been making gains like several stocks since its early April lows. However, after peaking at resistance of $25 in late May the stock consolidated slowly building a base as buyers continued to nip at the stock creating a strong trend of higher lows. Finally, the stock announced earnings in late July with results beating estimates by a penny. The next day Lehman Brothers, who had a strong buy rating on the stock, raised their price target from $24 to $30. Shares gapped up and have been able to maintain its gains. The last two weeks have seen the stock building a new base of support at $25 while bears set a new line of resistance at $28. We are now watching AFCI for a bullish move with a close over $28 as our potential trigger. --- Pentair, Inc. - PNR - close: 37.02 change: +0.83 WHAT TO WATCH: Three in one? Pentair specializes in manufacturing for three different segments and product lines; tools and equipment, water treatment and transport technologies, and electrical or electronic enclosures. Business must be good as the stock is up significantly from its March low of $22.80 (closing low). Earnings were on July 20th. On Aug. 8th, Lehman Bros. started the stock at a buy and today JP Morgan upgraded the stock to a buy as well. Looking at the chart we can see that $37 has been a wall of resistance for months. After a few weeks of consolidation bouncing at $32, the bulls were able to mount another attack at $37. This time they managed a victory only by the slimmest of margins as the stock has closed 2 cents above the $37 mark. We still consider this at resistance so we are looking for a potential long trigger with a more significant close over this level. --- Best Buy Co. Inc - BBY - close: 61.00 change: -0.09 WHAT TO WATCH: With retail stocks in the spotlight recently, we thought we add one to the watch list for the bullish traders out there. Best Buy has produced some strong gains since its late March lows near $35. Since then the stock has doubled to find strong resistance at $70. Profit taking ensued in a multi-day drop that took shares down to its 100-dma before bouncing higher. As of Aug. 13th, BBY has nosed past rival Circuit City as the #1 specialty chain store in the U.S. (based on sales). More recently, BBY has announced its plans to buy the Canadian chain store Future Shop which has 88 locations for $377 million. Today we saw the stock downgraded from a buy to a accumulate by Jeffries and co. but it appeared to have little affect on the stock price. As optimistic bulls look for potential trades we wanted to offer BBY as one to watch. The profit-taking may be over and short-term players maybe able to see shares rise back to $70 if it can get past short-term resistance of $62/$63. The market is expecting BBY's earnings report on Sept. 18th, 2001. --- Cendant Corp. - CD - close: 20.31 change: +0.36 WHAT TO WATCH: Stealing from an AP news story, we read that hotel, real-estate and car rental giant, Cendant Corp agreed to buy discount airfare company Cheap Tickets for $425 million in cash. This adds to the attempted acquisition announced in June where CD plans to spend $3.3 billion to buy global travel giant Galileo Intl. The deal with Galileo, who books more than 33% of the world travel reservations, has yet to pass antitrust approvals. CD has also appeared in news stories where Janus funds, who has received a lot of press about their under performance due to an over-weighting in tech stocks, had been adding to their positions in CD as more of a "safe haven" stock. CD is not a very big mover on a daily basis but traders with a slightly more patient approach might be able to make decent gains in the stock if the current trend continues. The stock has been on a steady climb since its sub-$10 price at the end of 2000. The month of August has provided a decent retracement in the stock and a rebound has already begun. The positive close over $20 could be a trigger for more aggressive players and current resistance lies at its 52 week high of 21.53. -- BEARISH STOCKS TO WATCH -- Siebel Systems - SEBL - close: 26.26 change: -1.32 WHAT TO WATCH: As the NASDAQ continues its slow meltdown investors are fleeing technology stocks and that means bearish opportunities again. SEBL has been dropping for most of the month and that makes the stock appear rather oversold. The test will come when it hits the $25 mark. This was strong support back in March before the April panic dropped the stock to $23. Part of the risk is that as these stocks continue to sink they may appear more and more appealing to buyers and analysts on a risk/reward basis. This can already been seen with the Wedbush Morgan upgrade today. Wedbush upgraded SEBL to a Buy with a $45 price target claiming the sell- off is overdone and industry conditions are not as bad as experts feel. Whether they are right or not, if the NASDAQ keeps sinking, SEBL will be testing the strength of its support at $25 soon enough. Under $25, and who knows where the bottom is. --- Microsoft - MSFT - close: 63.20 change: -1.49 WHAT TO WATCH: We wouldn't be the first to say there's plenty of negative news if you're looking for an angle on MSFT. The antitrust case continues to linger but the recent headlines have been renewed rumors of troubles for the Xbox, MSFT's first foray into the console gaming market. Whatever the true case is, the stock is looking very bearish. Today's move confirmed the down- ward pressure on the stock after closing under support of $65 yesterday. Now the stock is staring at its 200-dma (62.69) as its new first level of support. Below that bears will be aiming for $60 and potentially $55 as new downside targets. --- QLogic Corp. - QLGC - close: 36.36 change: -2.34 WHAT TO WATCH: You shouldn't be surprised to see another tech stock much less another software stock on the bearish list. A profitable short play in the past for PremierInvestor.net, shares have failed in a recent rally attempt and the selling has already started. Looking first at the GSO software index, we see the sector giving up several points to close below support of 175. This is very bad news for the group and QLGC was already in a weak position. There is some support for the stock at 32.50 but if the investor sentiment continues to deteriorate for the tech sector we doubt this support will last for very long. To add perspective to QLGC's plight, the April low was close to $17.50. We're looking for confirmation to consider a new short play. --- Brocade Comm. - BRCD - close: 30.39 change: -1.77 WHAT TO WATCH: For tech stalwarts, all eyes were on the BRCD earnings report after the close today. The company met 3Q expectations but lowered their guidance on the 4Q. We've high- lighted BRCD on the watch list before and the stock is still near the top end of its downward trading channel. With traders running from the tech sector altogether we can expect the weakness to continue for BRCD, at least in the short-term. We would consider a potential short play on the stock once shares close below $30. Given enough time, bears might be able to see $20 in BRCD if market conditions don't turn around. ================================================================= 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 08-15-2001 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/081501_2.asp ================================================================= In section two: Split Trader Split Announcements: none New Plays: Amerada Hess Corp - AHC (Bullish) Closed Plays: none Net Bulls New Plays: none Play Updates: Stops Updated Closed Plays: none Stock Bottom / Active Trader New Plays: none Play Updates: none Closed Plays: CHV, RIG 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 =================== ============ ST New Plays ============ ------------------------- New Split Candidate Play ------------------------- Amerada Hess Corp - AHC Close:$78.90 Change:+1.83 Stop:$74.25 Company Description: The large one-stop shop independent oil and gas company drills, buys, ships and sells natural gas and crude oil. It's explores and produces in Denmark, Gabon, Norway, the UK, and the US; it also operates in Azerbaijan, Algeria, Indonesia, Thailand, and other countries. Amerada Hess' proved reserves total more than 1.1 billion barrels of oil equivalent, and it has gained assets in West Africa, Latin America, and Southeast Asia by buying exploration and production company Triton Energy. The company also operates a 50-percent owned refinery in the US Virgin Islands and a smaller one in New Jersey, and it retails gas through more than 1,180 HESS gas stations in the eastern US. Fundamentals: The company is forecast to earn $12.63 per share in 2001 and $8.84 in 2002. Last year, the company earned $10.99. For the first six months of the year total sales increased 40-percent and net income 63-percent. This gives the firm a current P/E of 7, a forward P/E of 6 for 2001 and 9 for 2002. This is well less than the industry average P/E of 13. Why We Like It: Energy price had been tumbling in recent months due to declines in the price of crude oil and natural gas. However on Tuesday, the American Petroleum Institute reported declines in inventory for crude oil, gasoline and distillates (heating oil). Coupled with heightened tensions in the Middle East this means energy prices are going up and so will the shares of exploration companies. Another bullish indication came from a survey of 155 of the world's largest oil companies. This survey indicated that despite record drilling activity, natural gas production only increased 1.5-percent. They attribute this to depletion of existing US fields. Whereas many of the largest oil companies are having trouble increasing production, Amerada Hess is having no such problem. With its extensive overseas assets Amerada Hess was able to increase its production 22- percent. This sudden positive change in the business environment is being reflected in AHC shares. After crashing from $88.79 on May 21st to $70.80 on July 24th, the shares rebound to a session high of $$79.10 on August 1st. A few low volume down days later and the shares look ready to begin the next leg up. On Tuesday the shares spiked up $1.83 to $78.90 on a similar pop in volume. The next point of resistance is $79.30 and traders can wait for a close above this on volume in excess of 600K before taking a position. Following a break the next levels of resistance are at $82 and our short-term price objective of $86.00. We will start this Bullish selection with a stop at $74.25. This is just below the 200-day moving average of $74.71 and the August 9th session low of $74.43. Picked on August 15th at $78.80 Earnings Date N/A (Not Confirmed) ================================================================== Net Bulls (NB) section ================================================================== =============== NB Play Updates =============== ----------------------- NB Bearish Play Updates ----------------------- Update stop for: Peoplesoft (PSFT) to $41.25 VeriSign (VRSN) to $52.00 ================================================================== Stock Bottom / Active Trader (AT) section ================================================================== =============== AT Closed Plays =============== ----------------- Closed Short Plays ----------------- Chevron CHV Close:$93.01 Gain:+1.42 Stop:$93.00 The latest figures for oil and gas inventories were released Wednesday and showed declines in crude oil, gasoline and distillates. This is bullish for prices and the shares of oil stocks. It is time to shift gears as it is clear the extended bear run for these shares is over. Picked on August 2nd at $91.05 Gain since picked: -1.95 Earnings Date N/A --- Transocean Sedco Forex RIG Close:$31.99 Gain:+1.52 Stop:$31.00 We're glad we lowered our stop to $31.00. A drop in inventories for oil and gas are boosting their prices and the shares of oil related companies. It is time to take our $1.00 per share gain and close out this Bearish selection. Picked on July 31st at $32.00 Gain since picked: +1.00 Earnings Date N/A ================== 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 APC Anadarko Petroleum Corp 59.75 +3.11 P Phillips Petroleum 59.22 +1.32 OXY Occidental Petroleum 28.55 +0.96 UCL Unocal Corp 37.07 +1.27 APA Apache Corp 54.14 +2.79 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- Ticker Company Name Close Change GLM Global Marine 16.60 +1.10 TLCP Telecorp Pcs 14.05 +1.37 XTO Xto Energy Inc 15.35 +1.10 PXD Pioneer Natural Resources 9.21 +1.01 GSPT Global Sports Inc 17.25 +1.04 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- Ticker Company Name Close Change KO Coca-Cola Co 47.58 +1.54 G Gillete 29.50 +1.59 DE Deere & Co 43.37 +1.49 TEVA Teva Pharm Ind 71.00 +3.95 DVN Devon Energy Corp 52.66 +1.90 ----------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- Ticker Company Name Close Change ENE Enron Corp 40.25 -2.98 CCU Clear Channel Comm Inc 54.00 -2.37 VRTS Veritas Software 34.40 -3.04 AT Alltel Corp 56.90 -4.16 DYN Dynegy Inc 42.68 -1.62 ------------------------------------------------------------ Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------------------------- Ticker Company Name Close Change SWK Stanley Works 43.83 -1.00 HSP Hispanic Broadcasting 21.84 -1.46 IMGC Intermagnetics Gene 33.07 -1.00 SSP E.W. Scripps Co 69.35 -0.58 ================================================================= 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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