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Daily Newsletter, Wednesday, 08/22/2001

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PremierInvestor.net Newsletter                Wednesday 08-22-2001
                                                  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
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In section one:

Market Wrap: Ciena Added to S&P 500 Index
Market Sentiment: Roller Coaster
Play-of-the-Day: AmeriSource Health - AAS (Bullish)
Watch List: Two New Bulls, One New Bear

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
       8-22-2001          High      Low     Volume Advance/Decline
DJIA    10276.90 +102.76 10305.13 10134.50 1.06 bln   1625/1449	
NASDAQ   1860.01 + 28.71  1860.02  1817.70 1.44 bln   1541/2128
S&P 100   594.68 +  4.41   596.48   587.49   Totals   3166/3577
S&P 500  1165.31 +  8.05  1168.56  1153.34             
RUS 2000  477.18 +  4.94   477.19   470.63 
DJ TRANS 2801.92 + 21.41  2806.01  2771.16 
VIX        25.09 -  0.90    26.72    24.78 
Put/Call Ratio      0.56
-----------------------------------------------------------------

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

Ciena Added to S&P 500 Index by Jeff Bailey

Shares of Ciena Corporation (NASDAQ:CIEN) will be active 
tomorrow, after today's after market announcement that the 
company's stock will be added to the S&P 500 Index ($SPX.X).  The 
official date for addition to the S&P 500 has not been announce.  
Ciena (CIEN) will be replacing American General (AGC), which is 
being acquired by American International (AIG).  AIG is already 
an S&P 500 component.

I pity the S&P 500 fund managers that have to step into the 
market and buy shares of Ciena (NASDAQ:CIEN) over the next couple 
of weeks.  Can you imagine HAVING no choice but to put this stock 
in your portfolio?  Just four sessions ago, the stock fell nearly 
25% on disappointing earnings and the downward trend is that of a 
MAC Truck barreling down Wolf Creek Pass without breaks.

Ciena Corporation - last seven months



Shares of Ciena (CIEN) will now become one of the more 
interesting stocks to monitor in the coming weeks.  Many 
investors called it quits just four sessions ago when the stock 
lost roughly 25% of its value in the first hour of trading.  The 
stock traded BIG volume of 94.9 million shares.  That's what I 
call climactic volume and a stock getting "flushed."  What makes 
CIEN interesting for the next several weeks is this.

We know that "smart money" usually buys at the bottom and sells 
at the very top (this is the most difficult task to do on a 
consistently winning percentage).  I'm willing to make a guess 
that there was more than one market maker that "knew" shares of 
CIEN were going to be added to the S&P 500 in the not too distant 
future, the day the stock gapped lower to the $20 level.  With a 
public float of 301 million shares, the 94.9 million share volume 
just four days ago leaves at least two thirds of the public float 
yet to change hands (at a minimum).

This evening we know that there is now new demand for the stock 
as S&P 500 Index Funds need to accumulate the stock (by what date 
deadline we do not know).  I will warn subscribers now that the 
simple addition of Ciena to the S&P 500 does not guarantee short-
term prosperity for shares of CIEN.  Nonetheless, it will be an 
interesting stock to monitor to perhaps get a feel for the stock 
in coming weeks.  Take a look at a recent addition to the S&P 500 
from the technology space.  On August 2nd, shares of PMC-Sierra 
(NASDAQ:PMCS) were added to the S&P 500.  Perhaps we can get a 
feel for how that stock traded after its addition and help us get 
a feel for how CIEN may trade.

PMC-Sierra - last six months



I'd argue that the technicals for PMC-Sierra (PMCS) are stronger 
than those found in shares of Ciena (CIEN).  There's at least a 
resemblance of upward trend and breaking of a downward trend in 
the stock.  Traders will note the action of PMCS and what took 
place the day that PMCS was added to the SPX.  The stock gapped 
higher, but then really couldn't progress past its August 2nd 
high of $37.27.  Market makers probably knew that every momentum 
tech trader was watching the stock for a break above $37.27 as a 
"signal to get long," and were more than willing to give it to 
them on August 8th.  Note how the stock closed that day on its 
low?  Good signal to the bullish trader that they had been 
"duped" by market makers.  Note that the volume bars for August 
2nd and August 8th were both red.  This is perhaps something we 
should be looking for in future short/put trade opportunities.  
It's what I call DIVERGENCE.

Now, perhaps here is where you and I find opportunity for 
tomorrow.  I think the chart of PMC Sierra (PMCS) actually looks 
much more bullish than that of Ciena (CIEN).  I also like the 
fact that PMCS is associated with the Semiconductor sector 
compared to CIEN, which is associated with the Networking sector.

Traders that like to play the "added to SPX" scenario might want 
to think about playing shares of PMCS tomorrow instead of CIEN.  
I'm willing to bet that market makers back off their offers in 
shares of CIEN as they know there will be demand for the stock by 
fund managers that need to add the stock to their portfolios.  
Short-term, this could have the S&P 500 trade higher as we get 
some perceived strength from a technology stock.  This type of 
action could positively influence PMC Sierra (PMCS) and the 
resemblence of upward trend for that stock in a group that isn't 
setting new 52-week lows is a place to at least be looking long.

More after the bell earnings

After the closing bell, J.D. Edwards (JDEC) announced that they 
had lost 3 cents a share in the latest quarter.  The 3-cent a 
share loss beat analysts' estimates looking for a loss of 8-cents 
a share.  Revenues for the latest quarter fell 21.8 percent year-
over-year to 204.21 million.  Consensus revenue estimates were 
212 million.  The maker of enterprise software said it continues 
to find slower economic trends difficult to navigate.  The 
company noted that competition remains aggressive as competitors 
PeopleSoft (PSFT) and SAP (SAP) are pursuing aggressive price 
discounting, particularly in Europe.

The current market environment is tough for swing traders.  
Bearish traders have had a nice run in recent sessions, but 
today's reversal was nearly impossible to foretell.  With light 
volume, stocks are easily being whipped around and this makes for 
tough trading if you're not able to watch things on a minute by 
minute basis.  There's good money to be made on the intra-day 
swings like we saw today, but being able to see the swings 24-
hours in advance is difficult.  Today's action is a perfect 
example of why we've been moving down stops in bearish trades on 
PremierInvestor.net.

There are stocks that look to be hanging on by a thread 
technically.  Breakdowns in some of these stocks could have some 
of the broader market indices taking a beating in coming 
sessions, but just when things begin to look like they're about 
to fall apart, an intra-day swing occurs.  One stock I've got my 
eye on is shares of Minnesota Mining and Manufacturing (MMM).  A 
break below the 106 level on that stock could send the Dow 
Industrials ($INDU) on a leg lower.  This stock might try to put 
together a rally near the 112 level over the next session or two.  
I'll be monitoring this stock's progress in the coming sessions 
to see how it trades, but it might just be a "swing stock" for 
the Dow.


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

Roller Coaster by Jeffrey Canavan

The day started with some positive news from GM, Intuit, and 
Triquint.  Throw in an improving semiconductor book-to-bill 
ratio, and it had the makings of a nice day for bullish traders.  

The first half hour started out that way, but the markets quickly 
reversed and we once again found ourselves on the brink of losing 
key support levels.  Buyers regrouped around 3:00 PM and were 
able to push most sectors back to their daily highs.

Semiconductor Index Daily Chart



The semiconductor book-to-bill ratio came in at .67, which still 
indicates a weak industry, but the fact that the number improved 
for the third straight month was enough for traders to push the 
Semiconductor Index (SOX.X) up 5.16%.  

At least that's the way it finished.  Around 11:00 AM it looked 
like the SOX was getting ready to plunge through support at 537, 
but rallied past resistance at 552 in the final two hours.  The 
question now is can we but some kind of streak together?  Look at 
the price action over the past two weeks - up three days, down 
two, up one, down one, up one, down one, up one.  Pass the 
Dramamine please.  Resistance at 583 and the 50-day moving 
average will be the SOX's first order of business, that is if it 
can put together two or three positive days.

Internet Index/eBay Daily Charts



It was America Online (AOL) who announced they were cutting 8% of 
their workforce, but it was eBay (EBAY) that got pummeled.  At 
one point eBay was down $4.68, but rallied to only close down 
$1.01.  While they get an A for effort, the fact remains that the 
stock is below recent support at $59.  We'll see if this area 
presents as much resistance as it did support.

While eBay was tanking, the Internet Index (INX.X) was dipping 
below the April low at 120.97.  By the end of the day the index 
closed up 1.70%, but three-month downtrend is sitting close by. 
That line must be broken or it will push the Internet Index to 
new lows.  

Sectors to watch tomorrow?  Oil stocks had an odd day.  After 
being up over 3% on some bullish inventory data, the Oil Index 
(OIX.X) closed up a paltry 0.55% and Oil Service (OSX.X) closed 
down 0.50%.  If crude oil futures are lower before the stock 
market opens, oil stocks may follow suit.

The Mortgage Bankers Association's index of mortgage applications 
rose a minuscule 0.3%, and that was mostly due to refinancing.  
The new purchase component declined for the second straight week.  
Applications remain strong, but based on the performance of 
housing stocks today, investors may be getting wary about the 
decline over the past two weeks.

On the retail front Longs Drug (LDG) and Ross Stores (ROST) beat 
earnings, Galyan's (GLYN) met, and Big Lots (BLI) and Restoration 
Hardware (RSTO) missed.  With the Retail Index (RLX.X) sitting 
dangerously close to support at 585, tomorrow could be a crucial 
day.

The Software Index (GSO.X) is within 7 points of breaking support 
at 158, but perhaps a positive earnings announcement from J.D. 
Edwards (JDEC) will help to boost the sector.

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

            Support                Close              Resistance
DJIA       |10,200  |10277 |      |      |      |      |  10,600|
NASD       | 1,710  |      | 1860 |      |      |      |   2,125|
S&P 500    | 1,150  | 1165 |      |      |      |      |   1,240|
Rus 2000   |   465  |      |      |  477 |      |      |     495|
Semis      |   535  |      |  565 |      |      |      |     660|
Biotech    |   473  |      |      |  510 |      |      |     550|
Internet   |   121  |  124 |      |      |      |      |     160|
Networking |   300  |      |  290 |      |      |      |     365|
Software   |   158  |  165 |      |      |      |      |     200|
Banking    |   650  |      |      |      |      |  681 |     685|
Retail     |   858  |  864 |      |      |      |      |     920|
Drugs      |   380  |      |      |  398 |      |      |     410|

Support Alerts:
Resistance Alerts:
            ____________________________________________________
           |   Long    |   Short   |   Strength    | Relative   |
           |   Term    |   Term    |     of        | Strength   |
           |   Trend   |   Trend   |    Trend      | vs S&P 500 |
DJIA       |  Bearish  |  Bearish  |     Weak      |  Positive  |
NASD       |  Bearish  |  Bearish  | Strengthening |  Negative  |
S&P 500    |  Bearish  |  Bearish  | Strengthening |    --      |
Rus 2000   |  Bearish  |  Bearish  |     Weak      |  Neutral   |
Semis      |  Bearish  |  Bearish  |     Weak      |  Neutral   |
Biotech    |  Bearish  |  Bearish  | Strengthening |  Neutral   |
Internet   |  Bearish  |  Bearish  |    Strong     |  Negative  |
Networking |  Bearish  |  Bearish  | Strengthening |  Negative  |
Software   |  Bearish  |  Bearish  |    Strong     |  Negative  |
Banking    |  Bullish  |  Bullish  |    Strong     |  Positive  |
Retail     |  Neutral  |  Bearish  |     Weak      |  Neutral   |
Drugs      |  Neutral  |  Neutral  |     Weak      |  Positive  |

            _____________________________________
           | Short-Term  |          | Point and |
           | Overbought/ | Momentum |   Figure  |
           | Oversold    |          |   Signal  |
DJIA       | Oversold    |  Flat    |   Sell    |
NASD       | Oversold    |  Falling |   Sell    |
S&P 500    | Oversold    |  Flat    |   Sell    |
Rus 2000   | Neutral     |  Flat    |   Sell    |
Semis      | Oversold    |  Flat    |   Sell    |
Biotech    | Oversold    |  Rising  |   Sell    |
Internet   | Oversold    |  Flat    |   Sell    |
Networking | Oversold    |  Falling |   Sell    |
Software   | Oversold    |  Falling |   Sell    |
Banking    | Neutral     |  Rising  |   Buy     |
Retail     | Oversold    |  Falling |   Sell    |
Drugs      | Neutral     |  Rising  |   Buy     |
             AP OB = Approaching Overbought
             AP OS = Approaching Oversold

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


=========================
Play-of-the-Day (Bullish)
=========================

AmeriSource Health - AAS Close:$61.40 Change:+1.50 Stop:$59.00 NEW

Original Comments When Selected on August 17th:

Company Description:
The Chesterbrook, Pennsylvania-based firm is the holding company 
for AmeriSource Corp., the forth-largest distributor of 
pharmaceuticals and health care products in the US (McKesson HBOC 
is the largest). AmeriSource supplies hospitals, managed care 
facilities, drugstores, nursing homes, clinics, supermarkets, and 
mass merchandisers through nearly 25 distribution facilities. The 
company also offers a variety of value-added products to enhance its 
own profitability and bolster customer loyalty. These include the 
ECHO Suite, which is a software system for ordering and inventory 
management assistance; the Family Pharmacy program, which provides 
online shopping through familypharmacy.com and helps connect 
independent and small chain drug stores to various merchandising and 
other services; and Pharmacy Healthcare Solutions, which offers 
hospital consulting aimed at improving operational efficiency.  
The federal government, which includes the Veterans Administration,
 accounts for about 20-percent of sales.   

AmeriSource has announced that it is acquiring Bergen Brunswig, a 
major drug-distributor rival. The company created by the merger will 
be called AmeriSource-Bergen.  Pending regulatory approval (expected 
sometime this summer) the combined entity will have revenues in the 
vicinity of $35 billion.  Under the terms of the agreement, which 
has been unanimously approved by both Boards of Directors, each share 
of Bergen Brunswig common stock will be converted into 0.37 share of 
AmeriSource-Bergen common stock while each share of AmeriSource 
common stock will be converted into one share of AmeriSource-Bergen 
common stock. The new Company will have approximately 103 million 
shares outstanding, with current AmeriSource shareholders owning 
approximately 51-percent of the combined company and current Bergen 
Brunswig shareholders owning about 49-percent.

Fundamentals: 
Earnings projections have not been made for the combined entity.  
However, AAS Chairman David Yost said, " This combination of two 
strong, service-oriented companies boosts our confidence that we 
can achieve a long-term earnings per share growth objective of about 
20 percent."

As a separate entity AAS is expected to earn $2.27 per share on 
sales of $13.8 billion in the fiscal year ending in September 2001.
Last year, the company earned $1.89 on sales of  $11.6 billion.  

Bergan Brunswig (BBC) is expected to earn 80-cents per share on sales 
of $20.2 billion.  Last year, BBC earned 60-cents per share on sales 
of $22.8 billion.  

Why We Like It: 
A +1.85 gain on an ugly day for the overall market compels us to 
revisit this recent play.  The bullish catalyst was a pair of 
upgrades by brokers W.R. Hambrecht and Bear Sterns.  Hambrecht 
initialed coverage with a "Buy" rating and a $75 target price saying, 
"...we believe the pending merger with Bergen Brunswig will cast the 
company as one of the largest healthcare distributors, offering 
ample opportunities to significantly improve operational efficiencies." 
 Bear Sterns raised their rating from "Attractive" to "Buy."  

As one of the most efficient players in its industry AmeriSource's 
merger with Bergan Brunswig (combined $34 billion in sales) should 
make it an aggressive competitor for industry leader McKesson HBOC 
(MCK $35.3 billion in sales).   

Friday's move up put it through resistance at $58.60 on a spike in 
trading volume to 1.9 million (average daily volume is 771k).  It 
also was an upside break to a bullish triangle pattern.  The 
combination should result in a short-term test of the $62.50 52-week 
high.  For longer-term investors, our point and figure analysis 
concurs with Hambrecht's $75 12-month target.  However, we don't 
believe it's going to take a year to reach it.  Given the present 
strength of the shares and analysts favorable opinions of the 
merger, the at hand regulatory approval of the merger should be 
sufficient to drive the shares up.  Short-term traders should 
consider our $56 stop, while long-term investors could think about 
a stop at the $54 or $50 support levels.

Updated Comments: 
A strong move through resistance at $60 on almost twice the average 
trading volume underscores the strength of these shares.  The 
acquisition of Bergan Brunswig ought to be concluded next week giving 
bulls the catalyst they need to keep buying shares.  Now that the 
shares are through $60 we are tightening up our stop to $59.00.

Picked on August 17th at $59.00
Gain Since Picked         +2.40
Earnings Date              N/A (Not Confirmed)





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

-----------------------------
-- BULLISH STOCKS TO WATCH --
-----------------------------

Tenet Healthcare - THC close:$57.29 change:+1.40

WHAT TO WATCH:  Shares of this hospital operator produced a nice 
break today out of consolidation.  A buy on any dip or close above 
$48.




---

Vector Group - VGR close: 41.01 change:+2.49

Noted financier Carl Icahn just upped his stake in this tobacco 
company to 21.5-percent of outstanding shares by picking up an 
additional 1.5 million shares.  Icahn is some of the smartest money 
around and the Street closely watches his moves.  The news pushed 
the shares above big-time resistance at $38.50.  This one's a buy 
on any weakness.




---
-------------------------
-- Continuing to Watch --
-------------------------

Some stocks on the Watch List will be carried over from one day
to the next if they continue to show potential but have not yet
breached the trigger point.  Some stocks have met our conditions 
for a trigger point but other factors hold us back from making it
a full-time stock pick.

Popular Inc - BPOP close: 35.75 change: -0.51

UPDATE:  No change in outlook

Friday, August 20th write-up:

WHAT TO WATCH: Shares of this foreign bank holding company have 
been in a stair-stepping pattern for months and now it is looking 
as if it is getting ready to take another step up.  After 
consolidating for the past few weeks in a bullish wedge pattern 
(higher lows while highs hug $35.00), the shares broke $35 with a 
high volume move to $35.94.  A dip back to the $35 - $35.50 range 
should present a good entry point. 




---

Xilinx Inc. - XLNX  close: 39.00 change: 2.52

UPDATE:  No change in outlook.  Wednesday's move brings it to 
within 50-cents of our trigger.  Look for confirmation with 
trading volume in excess of 6.7 million.

Friday, August 20th write-up:

The shares have formed a triangle pattern.  This means a series of 
lower higher and higher lows.  This also means that this is either 
short or long play depending on which way the shares break out of 
the triangle.  A close above $39.50 on a spike in volume means go 
long, a move below $37 on a similar volume pop would suggest a 
short strategy.




---

Nokia - NOK - close: 17.98 change: +0.97

UPDATE: No change in outlook, getting closer to a bullish signal.

Friday, August 17th's write-up:

WHAT TO WATCH:  We put this one at the bottom of the bullish list
because shares could really go either way.  However, we are 
hoping they reverse course in the near future.  The stock is 
obviously oversold but shares have managed to close just over 
strong support near $17 (see mid-July).  This appears to be a 
good place to make a bet that shares may be at a bottom.  The
bad news is picking bottoms can be unhealthy for your portfolio -
especially a stock like NOK because as an ADR shares tend to gap
up or down every day.  This tends to make stops rather hard to
place.  Thus, we chose to put NOK on the watch list again.  Look
for another consolidation at $17 and then a positive close over 
$18 as a potential bullish reversal.





-----------------------------
-- BEARISH STOCKS TO WATCH --
-----------------------------


Bj's Wholesale Club - BJ close:$50.12 change:-2.62

Tuesday's news of higher second-quarter earnings for this warehouse 
chain could not stop the bears from mauling this stock.  
Wednesday's $2.62 drop may produce a bargain-hunters bounce on 
Thursday.  As long as volume is a significant drop from yesterday's 
1.75 million shares traded then consider this a temporary respite 
from selling and not a sustainable move by the bulls.  Aggressive 
traders should consider shorting the pop, while less aggressive 
ones wait for a further drop.  The next area of support is roughly 
at $46.50.




---

American Intl Group - AIG - close: 78.55 change: -0.65

UPDATE: Still looking good.

Friday, August 17th's write-up:

WHAT TO WATCH:  The Insurance sector has been loosing ground 
since July 19th, 2001.  AIG has felt the selling pressure but
it wasn't until Friday that shares broke down beneath strong
support at $80.  Bears are likely to target the next level of
support at $75.  If this stock fits your trading profile 
consider the close under $80 as a potential trigger to go
short.





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Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter                 Wednesday 08-22-2001
                                                   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/4933_2.asp
=================================================================

In section two:

Split Trader
  New Plays: Nvidia Corp. - NVDA (Bullish)
  Play Updates: Stops Updated, AAS is Play of the Day
  Closed Plays: none

Net Bulls
  New Plays: Techne Corp. - TECH (Bullish)
  Bullish Play Updates: none
  Bearish Play Updates: none
  Closed Plays: none

Stock Bottom / Active Trader
  New Plays: none
  Bullish Play Updates: none
  Bearish Play Updates: none
  Closed Plays: none

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
==================================================================

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

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

Nvidia Corp. - NVDA Close:$84.79 change:+3.35 Stop:$79.00

Company Description:
Nvidia Corporation designs and manufactures high-performance 3-D 
graphics processors that are used in PC's and workstations.  
Thecompany's products are sold to PC original equipment 
manufacturers (OEM's), as well as to makers of graphics cards. 
NVDA continues to be a standout performer in an otherwise bleak 
tech sector.  You may recognize the company among all the press 
for Microsoft's upcoming XBox console game system. NVDA makes the 
graphics chip for the XBox as well as PCs and workstations.

The Board of Directors has approved 2-for-1 stock split.  The 
shareholder record date is Aug. 28th and the payable date will be 
on or near Sept. 11th, 2001. 

Fundamentals: 
At their second quarter earnings announcement the company reported 
revenues were up 53% and earnings were 39 cents a diluted share or 
$33.6M versus 28 cents or $22.5M for 2Q last year.   For the 
current fiscal year ending in January 2002, analysts forecast the 
firm will earn $1.80 per share and $2.37 in 2003.  Last year, the 
company earned $1.25 per share.

Why We Like It: 
NVDA has been somewhat shielded by the slowdown in PC sales due to 
their expanded product lines and this allowed them to raise their 
earnings guidance for the next two years based on expected sales.  
As one of the few strong performing tech companies, NVDA shares 
have been solid buys on dips.

Recent market weakness dropped the shares back to support near $80.  
On Wednesday, the shares took off in the afternoon to add $3.35 on 
well above average volume.  With the stock split providing a 
catalyst the shares should tackle resistance at $90 and possibility 
the $100 52-week high.  We will start this play with a stop at $79, 
which is just below $80 support.

Picked on August 22nd at $84.79
Earnings Date              8/14 (Confirmed)





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

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

Stop changed: 
  Amerada Hess (AHC) to $75.80.
  AmeriSource (AAS) to $59.00

For updated outlook on Amerisource (ASS) see Play of the Day in 
section 1

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

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

  --------------
  New Long Play
  --------------

Techne Corp. - TECH Close:$35.05 Change:+2.24 Stop:$32.00

Company Description:
Subsidiaries of this holding company make and distribute specialty 
products for the biotechnology industry.  Its Research and 
Diagnostic Systems, Inc. (R&D Systems) subsidiary makes hematology 
controls that are used in hospital and clinical laboratories to check 
the accuracy of blood analysis instruments, biotechnology products 
including purified proteins and antibodies that are sold to the 
research market, and assay kits that are marketed to the research and 
clinical diagnostic markets.  The company's R&D Europe subsidiary 
markets the R&D Systems products in Europe.

Fundamentals: 
Analysts forecast the company will earn 95-cents per share on sales 
of $131 million in the current fiscal year ending June 2002 and $1.07 
per share in 2003.  In the 2001 fiscal year, the company earned 80-
cents per share on sales of $115 million.  This gives the shares a 
current P/E of 44 and a forward 2002 one of 37.  The industry average 
P/E is a negative 71.  The company has a PEG of 1.71 compared to the 
industry average of 571.97.

Why We Like It: 
There are two good reasons we like Techne shares.  The company is one 
of the rarest birds in the biotechnology industry - solidly 
profitable.  Also, the technical picture of the shares has a 
decidedly bullish hue.  After consolidating in a fairly narrow range 
bounded roughly by $33 and $28 for the past month and a half, the 
shares broke out of that range on Wednesday.  They gained $2.24 on 
above average volume.  The move propelled the shares off of their 
$32.53 200-day moving average.  There does not appear to be company 
specific news acting as a catalyst, rather the entire industry put in 
a strong day with the Biotechnology Index ($BTK) gaining +23 points.  
With the bulls returning to the industry, it stands to reason many 
traders are attracted to the shares of the profitable Techne.  In the 
short-term TECH shares should put in a test of upside resistance at 
$38.72.  The shares already have enough momentum to handle additional 
resistance at $36.15.  Longer-term we have a price target of $45.  We 
will start this bullish selection with a stop at $32, which is just 
below the 200-dma.  Given the strong one-day move, some level of 
profit taking on Thursday may occur and present an attractive entry 
point.

Picked on August 22nd at $35.05
Earnings Date              N/A (Not Confirmed)





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

No updates today

==================
  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
SLE       Sara Lee Corp.            22.29  +0.91
ED        Consolidated Edison Inc   41.41  +0.54
VLO       Valero Energy             38.00  +1.81
VGR       Vector Group              40.91  +2.39
MERX      Merix Corp                23.24  +0.64

  ---------------------------------------
   Breakout to Upside (Stocks $5 to $20)
  ---------------------------------------

Ticker    Company Name              Close  Change
SERO      Serologicals Corp         18.90  +1.07
ISIP      Isis Pharmaceuticals Inc  14.89  +4.81
FTO       Frontier Oil Corp         15.53  +1.32
GERN      Geron Corp                18.58  +2.16
SLNK      Spectralink Corp          16.75  +1.93

  ---------------------------------------
   Breakout to Upside (Stocks over $20)
  ---------------------------------------

Ticker    Company Name              Close  Change
THC       Tenet Healthcare Corp     57.20  +1.31
GDT       Guidant Corp              37.10  +2.10
INTU      Intuit Inc                36.05  +6.60
WEN       Wendy's International     29.25  +1.10
AAS       AmeriSource Health        61.54  +1.64

  -----------------------------------------
   Breakout to Downside (Stocks over $20)
 -------------------------------------------

Ticker    Company Name              Close  Change
Q         Qwest Communications      21.70  -1.52
EBAY      eBay Inc                  56.91  -1.01
GDW       Golden West Financial     62.56  -2.84
BJ        Bj's Wholesale Club       50.14  -2.60
EXPE      Expedia Inc.              33.80  -5.28

  ------------------------------------------------------------
   Recently Overbought With Bearish Signals (Stocks over $20)
  -------------------------------------------------------------

Ticker    Company Name              Close  Change
GDW       Golden West Financial     62.56  -2.84
LD        Louis Dreyfus Natural Gas 32.85  -0.45
TMBR      Tom Brown Inc             25.80  -0.40
FBA       First Banks America       29.45  -0.75
RWT       Redwood Trust             24.15  -0.70

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