PremierInvestor.net Newsletter Weekend Edition 09-28-2001 section 1 of 3 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/3593_1.asp ================================================================= In section one: Market Wrap: Stocks end week on bullish note Market Sentiment: Quite a Quarter Play-of-the-Day: Jacobs Engineering Group - JEC Watch List: WEBX, STJ, WHR, LEH, VGR ------------------------------------------------------------------ U.S. Market Numbers ------------------------------------------------------------------ MARKET WRAP (view in courier font for table alignment) ------------------------------------------------------------------ WE 9-28 WE 9-21 WE 9-14 WE 9-7 DOW 8847.21 +611.40 8235.81 -1369.7 9605.51 - .34 -343.90 Nasdaq 1498.80 + 75.61 1423.19 -272.18 1695.37 + 7.67 -117.73 S&P-100 533.10 + 41.40 491.70 - 66.88 558.58 + 4.69 - 23.51 S&P-500 1040.94 + 75.14 965.80 -126.74 1092.54 + 6.76 - 47.80 W5000 9562.93 +662.48 8900.45 -1203.9 10104.44 + 37.95 -448.60 RUT 404.87 + 25.98 378.89 - 61.84 440.73 - 4.46 - 23.37 TRAN 2193.99 +139.15 2054.84 -621.65 2676.49 - 36.65 -100.27 VIX 35.19 - 13.08 48.27 + 13.67 34.60 + .24 + 6.51 VXN 65.19 - 12.54 77.73 + 13.89 63.84 - 1.61 + 12.59 TRIN .73 .60 .68 1.25 TICK +995 +21 +100 -113 Put/Call .61 1.27 1.01 .84 ------------------------------------------------------------------ =========== Market Wrap =========== Stocks end week on bullish note by Jeff Bailey Stocks ended the week on a bullish note, but recent past has some asking, "Can this market carry a tune?" Of the most widely followed market indexes, the S&P 500 (SPX.X) and Dow Industrials (INDU) both gained over 7% this week, with the S&P 500 closing at 1,040 and the Dow finished the week up 612 points at 8,847. The smaller-capitalized stocks as depicted by the Russell 2000 (RUT.X) gained 6.8% on the week and they too finished at their weekly and session high of 404 and a daily gain of 3% or 11.9 points. Broader technology remains suspect as the NASDAQ Composite (COMPX) gained 5.2% on the week to finish at 1,498, but was unable to close above Tuesday's high of 1,528. This indicates to me that there's still a bit of a "sell bias" in some technology related stocks. The narrower NASDAQ-100 Index (NDX.X) gained 3.7% on the week to finish at 1,168, but it too was unable to close above Tuesday's high of 1,220. Part of this week's trading results for some of the broader market averages was most likely due to some portfolio window dressing by fund managers. Today marked the end of the third quarter and many fund managers may have been hesitant to go before their clients holding some technology stocks that lack earnings or have shown poor performance in the latest quarter(s). With the NASDAQ down nearly 31% from its June 29th close of 2,160, it may have been tough for some fund managers to be holding big positions in technology stocks. Conversely, a portfolio invested in many blue chips that have weathered rough economic times, may have taken less explaining. AT&T Corporation - last six months A 16% gain in a week seems like old times for some technology stock traders and who would have thought shares of AT&T (NYSE:T) were capable of such a feat? Last week we thought shares of AT&T might be a near-term out performer to the upside. While last Friday's trading had many questioning that analysis, one of our upside targets at the $19.41 level was achieved and gives some investors account a bit of breathing room. I don't think the stock can add another 16% next week, but subscribers that put some money to work here now have a profit. There were other stocks besides AT&T (T) that found some profits. Several of the plays listed on PremierInvestor.net's play list have done well. Yes, some have done better than others, but many traders/investors may have never heard of Suiza Foods (NYSE:SZA) until our recent profile on September 19th at $57.01. Today the stock traded a 52-week high at $64.73 before settling back and closing down 1.11% to $63.14. The technicals in Suiza Foods (SZA) are directly inverse of those found in AT&T (T) and looks to have been benefiting from the lack of overhead supply. Suiza Foods - last seven months In yesterday's market wrap, we mentioned that Suiza Foods (NYSE:SZA) had achieved a bullish price objective of $63 from our point and figure chart and we wanted to tighten up our stop to the $62.50 level. In the current market environment, we want to practice the discipline of keeping a fairly tight stop under profits as investor psychology is shaky. SZA is starting to look a little overextended and the "rolled up retracement" gives traders some good levels to be monitoring. SZA has a habit of making some nice runs higher, only to pullback and offer another trading opportunity. Suiza could very well see a pullback to 38.2% retracement of $59.45 or $57.71. We feel that's too much profit to be giving back from the profiled entry at $57.01 so the stop stays at $62.50. If a trader gets stopped out, then he raises some cash and perhaps looks for a better opportunity with better risk reward. Should a pullback occur to the $57.71-$59.54 levels then perhaps it's time for another glass of milk! Notice how different the charts are of AT&T (NYSE:T) and Suiza Foods (SZA) are when compared to each other. AT&T (T) was identified using some very basic observations of strength as a Dow component that shares the "telecom" flavor of SBC Communications (NYSE:SBC) and was showing some near-term relative strength in the Dow Industrials. Suiza (SZA) is more of an upward trend play, that seems to benefit from lack of overhead supply. It may be considered as "defensive" or not as economically driven and shorts (bearish traders) are probably shying away from the stock. This creates a "lack of supply" issue and when the stock has reversed a short-term downward trend the stock has made some nice moves higher. Then there are stocks like WebEx Communications (NASDAQ:WEBX). Yes, we profile some 4-lettered stocks still. We wrote this one up in this morning's 09:00 EST update as a stock we felt might be ready for a big move in either direction (up or down). We were leaning to the upward direction and today, shares of WEBX did a little bit more than just lean to the upside as the stock surged 14.8% to close at $21.24. WebEx Communications - last nine months A 14% gain isn't a bad way to finish off a trading week, or perhaps begin next week. Shares of WebEx (WEBX) hovered around the $19 level for about the first hour of trading, but that break above the $19 level and our 61.8% retracement seemed to get things going. The stock traded good volume, but I feel we need to see another good volume day on Monday and a break of Thursday's high ($21.40) to get the stock into second gear. While a bullish trader's psyche is still shaky with all that has taken place, a trader that's short shares of WEBX anywhere near the $21.25 level or lower might be getting a little nervous with some of the broader market indicators in oversold condition. It's never fun to be short a stock that's in an upward trend. We felt there was some disagreement between the bulls and bears regarding WebEx and today the bulls had the upper hand. Different strokes for different folks The past two weeks we've been discussing and trying to teach some different ways for traders/investors to be looking at stocks. Some have been fairly simplistic, like sorting the Dow Industrial components by %gain from Sept. 10th, to try and identify relative strength. We've also been using our retracement bracket tools with "conventional retracement" and "fitted retracement" to help identify where the buyers and sellers are going to be. We're using the point and figure relative strength charts to help ascertain relative strength characteristics along with the point and figure charts themselves to try and forecast potential price objectives and buy/sell signals. Hopefully your finding some the of techniques useful and have a better understanding of our play selection. Those that are putting some of these techniques to use on their own in some of their own play selection are getting some good results. The last quarter was a tough one for the "buy and hold" bullish investor. Right now I still feel it's better to sell some strength in a bullish position that has you sitting with a profit, than it is to risk holding the stock and watch it turn into a loss. Investor psychology plays a very important role in how we should be investing/trading right now. I do think a longer-term investor (with a 3-5 year time horizon) has some very good opportunities to be buying stocks right now. If you're the type of investor that doesn't want to take a lot of heat, then it looks like you may want to stay away from the NASDAQ stocks for a little while longer. Yes, a 14% gain in a day looks fantastic, but right now, market makers are not going to be willing to take in a lot of inventory or support stocks if a big seller comes to the table. As soon as the market maker sees a seller in a NASDAQ stock wanting to dump 200,000 shares, that market maker is most likely to start lowering his/her bid in order to reduce their risk exposure, especially if the stock is in a downward trend. Monday will be interesting. We may see some weakness if the recent rally was only due to end of quarter window dressing by fund managers. With this in mind, we want to be relatively nimble in our trading and be willing to book gains when we get them. For longer-term bullish investors, I think the approach of establishing a 1/4 or 1/2 position in the stock and setting a stop is necessary. I also want to identify a near-term target level that when achieved is a level to monitor closely. If the stock is able to break above your near-term bullish target level, then add to that position, again with the longer-term in mind. DON'T average down! It's painful to think that investors have been averaging down in a stock that has perhaps fallen from $50 to $40 to $30 and so on, to only have the stock now trading $19. I'm not just talking about "technology stocks" either. I could very well be talking about AT&T (T)! A longer-term investor in AT&T that perhaps bought some stock this week at $17, might be well served to not buy anymore until the stock trades $21.40. Then he/she can "average up" and at the same time systematically raise his/her stop to $17. That way, they're reducing risk on the second batch bought. Bearish traders.... we haven't forgotten about you, but many of the broader market indicators have been oversold and we need to be very selective on what we're profiling for bearish trades. Believe it or not, earlier this spring I got an alarming e-mail from a subscriber that was getting some margin calls because he had shorted a stock, not used a stop, and the stock was running away from him. Be very disciplined with your stops when shorting right now. Yes, there's a lot of "doom and gloom" in the media right now and that's when a bearish trader tends to get complacent and lets the trade get away from them. Have a great weekend and we'll see you back here on Monday! Jeff ================ Market Sentiment ================ Quite a Quarter As the third quarter comes to a close, the numbers aren't very encouraging for bulls. The Dow and S&P 500 lost over 15%, and the Nasdaq Composite lost 30.6%. Ouch! It doesn't get any better for tech bulls in October. Traditionally October is the worst month for the Nasdaq, Losing a total of 10.5% for the month between years 1971 and 2000. October is the only month with a cumulative net loss. The good news is that the end of October marks the end of worst six-month period for the Nasdaq (May to October). Could this October be different? Certainly, we are in uncharted waters. Dow Jones Industrial and Nasdaq Composite Daily Charts While the waters may be uncharted, we do have charts. A chart of the Dow is telling us that we are starting to get a little overbought. There might be a little more room for the Dow to rise to 9,000, but the stochastic is saying that a reversal looks imminent. The Nasdaq continues to struggle compared to the Dow. The tech index has yet to climb above its 10-day moving average, or take out Tuesday's high of 1528. It's not quite as overbought as the Dow, but the stochastic could quickly roll over. Look for weakness around 1,28 as a clue. ----------------------------------------------------------------- Market Volatility VIX 35.19 VXN 65.44 ----------------------------------------------------------------- Put/Call Ratio Call Volume Put Volume Total 0.61 745,773 456,710 Equity Only 0.49 657,681 320,749 OEX 1.55 14,674 22,738 QQQ 0.45 59,287 26,829 ----------------------------------------------------------------- Bullish Percent Data Current Change Status NYSE 18 - Bear Confirmed NASDAQ-100 12 +12 Bear Confirmed DOW 18 - Bear Confirmed S&P 500 16 - Bear Confirmed S&P 100 16 - Bear Confirmed Bullish percent measures the number of stocks in an index currently trading on a buy signal on their point and figure chart. Readings above 70 are considered overbought, and readings below 30 are considered oversold. Bull Confirmed - Aggressively long Bull Alert - Cautiously long Bull Correction - pause or pullback in upward trend Bear Alert - Take defensive action if long Bear Confirmed - High risk if long, good conditions for shorting Bear Correction - Pause or rebound in downtrend ----------------------------------------------------------------- 5-Day Arms Index 0.91 10-Day Arms Index 0.95 21-Day Arms Index 1.18 55-Day Arms Index 1.23 Extreme readings above 1.5 are bullish, and readings below .85 are bearish. These signals don't occur often and tend be early, but when the do, they can signal significant market turning points. ----------------------------------------------------------------- Advancers Decliners NYSE 2501 691 NASDAQ 2539 1177 New Highs New Lows NYSE 58 102 NASDAQ 46 162 Volume (in millions) NYSE 1,646 NASDAQ 2,086 ----------------------------------------------------------------- Advisory Sentiment Bullish Bearish Correction Net Bullish Change 35.7% 37.6% 26.7% -1.9% -15.3% A bearish reading of 25% to 30%, combined with a bullish reading greater than 55% is typically considered bearish by contrairians. A net percentage greater than 30% is also viewed as bearish. ----------------------------------------------------------------- Commitments Of Traders Report: 09/25/01 Weekly COT report discloses positions held by small specs and commercial traders of index futures contracts at the Chicago Mercantile Exchange and Chicago Board of Trade. COT data can be found at www.cftc.gov. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs tend to be wrong. S&P 500 Bears have gotten 40% less bearish over the past two weeks, but the numbers are a bit deceiving. Rather than institutions adding new long positions, there was a mass exodus out of S&P 500 futures. For the period ending 9/25, open interest, the number of contracts outstanding, fell 103,420, or 17%. The 64,787 drop in institutional short positions suggests short covering, and the lack of new positions, long or short, being added echoes the wait and see approach. Commercials Long Short Net % Of OI 9/10/01 359,360 442,070 (82,710) (10.32%) 9/18/01 406,387 471,823 (65,436) ( 7.45%) 9/25/01 357,873 407,036 (49,163) ( 6.43%) Most bearish reading of the year: (111,956) - 3/6/01 Most bullish reading of the year: ( 41,144) - 5/1/01 Small Traders Long Short Net % of OI 9/10/01 156,500 69,090 87,410 38.75% 9/18/01 172,988 100,531 72,457 26.49% 9/25/01 122,613 71,721 50,892 26.19% Most bearish reading of the year: 36,513 - 5/01/01 Most bullish reading of the year: 91,122 - 3/06/01 NASDAQ-100 Nasdaq futures - big drop in open interest, but little change in commercial net positions. Commercials Long Short Net % of OI 9/10/01 26,784 37,912 (11,128) (17.20%) 9/18/01 35,497 45,731 (10,234) (12.60%) 9/25/01 26,761 36,812 (10,051) (15.81%) Most bearish reading of the year: (15,521) - 3/13/01 Most bullish reading of the year: (1,825) - 1/02/01 Small Traders Long Short Net % of OI 9/10/01 15,263 12,555 2,708 9.73% 9/18/01 22,876 21,702 1,174 2.63% 9/25/01 10,699 6,580 4,119 23.84% Most bearish reading of the year: (1,028) - 1/02/01 Most bullish reading of the year: 8,460 - 3/13/01 DOW JONES INDUSTRIAL Slight drop in institutions net bullish stance, but the % of open interest jumped due to the drop in open interest. Commercials Long Short Net % of OI 9/10/01 25,445 13,033 12,412 32.3% 9/18/01 28,425 15,077 13,348 30.7% 9/25/01 20,013 7,806 12,207 43.9% Most bearish reading of the year: (8,322) - 1/16/01 Most bullish reading of the year: 13,348 - 9/18/01 Small Traders Long Short Net % of OI 9/10/01 7,460 12,735 (5,275) (26.12%) 9/18/01 7,335 15,044 (7,709) (34.45%) 9/25/01 4,530 12,621 (8,091) (47.18%) Most bearish reading of the year: (8,091) - 9/25/01* Most bullish reading of the year: 1,909 - 1/16/01 COT Commercial Net Position Charts ----------------------------------------------------------------- ========================= Play-of-the-Day (Bullish) ========================= Jacobs Engineering - JEC - close: 62.40 change: +1.49 stop: 57.50 Original Comments When Selected On September 25th: Company Description: Jacobs Engineering is one of the big boys of global construction along with rivals Bechtel and Flour. Over 40-percent of company sales are generated by engineering and construction projects for the chemical, petroleum, and pharmaceutical and biotech industries. Public contracts contribute another 35-percent with the US government contracts alone, particularly aerospace and defense, consisting of 18-percent. Projects include buildings, process plants, manufacturing facilities, paper and pulp plants, highways and bridges. Jacobs also provides consulting and plant maintenance and operation. The firm is 13-percent owned by founder and chairman Joseph Jacobs. Fundamentals: In the fiscal year ending September 2001, the company earned $2.82 per share on sales of $3.4 billion. This year, analysts project the company will earn $3.21 per share and $3.70 in 2002. Earnings projections have been stable. In the last 90-days, the consensus analyst earnings estimate has risen 1-cent. The company has a projected September 2001 P/E of 19. The industry average P/E is 22.43. The company has minimal long-term debt with a cash flow of $4.68 per share (industry average is $1.69). Why We Like It: We like this play for both fundamental and technical reasons. On a fundamental basis, the share are inexpensive in relation to its peers with per share cash flow almost three times the industry average, yet with a below average P/E. On technical basis, the shares simultaneously bounced off their long-term up trend and $57.80 200-day moving average on Monday and then built on that rebound with a $2.06 pop on Tuesday. The bullish momentum is confirmed with a rising volume trend. Tuesday's 342k-share volume was above the 318k daily average and Monday's 277k traded. Another piece of bullish evidence was a late-day rally that pushed through the $60.44 50-day moving average. The shares seem ready to test significant resistance at $65.50. If they can push through that level, the next area of upside resistance should be encountered near $70.00. Our point and figure analysis produced a 6-12 month price target of $80. We will initiate this bullish play by sliding a $57.50 stop underneath the 200-dma.. Updated Comments: Jacobs shares broke out of a base on Friday they had been building since mid-August. It remains to be seen whether this move is a start of a meaningful leg up or just a low-volume expression of window dressing. Still, a $1.49 one-day gain is strong bullish move and we are optimist that our original outlook is starting to play itself out. Picked on September 25th at $61.21 Gain Since Picked: + 1.19 Earnings Date 11/01 (Not Confirmed) ========== Watch List ========== WebEx Communications - WEBX - close: 21.24 change: +2.74 WHAT TO WATCH: Our weekend long-term play selection banged off of support to put in a one-day $2.74 gain. The bullish catalysts were positive indications from the web conferencing company and several analysts that the firm is seeing a surge in new business following the terrorist attacks. One report said that that late-Friday Wit SoundView was making positive comments on WEBX, indicating that the company will be coming in at the upper end of the range for the September quarter and is confident about the December quarter. A $2.46 one-day gain is too much to chase without further evidence of bullish momentum, but a dip could provide an attractive entry point. If the shares put in a convincing rally on Monday that would be evidence enough that the bulls are here to stay. otherwise we will wait for a dip to about $19.50. --- St Jude Medical - STJ - close: 68.45 change: +0.45 WHAT TO WATCH: After a sharp run up from the $58.50 close on September 21st, shares of this medical device maker are looking tired. On Friday the candlestick chart produced a doji pattern, this means despite intraday significant attempts by bulls to go higher and bears to push the shares lower, the tug-of-war ended in a near standoff. This is a sign of market indecision. A meaningful close higher or lower than Friday's end of session price over the next couple of days will strongly suggest whether the bulls or bears won. We are betting on the bears. --- Whirlpool Corp Inc - WHR - close: 55.35 change: +2.90 WHAT TO WATCH: Do you really think that in this economy Whirlpool is going to see a surge in sales of big-ticket home appliances - neither do we. For bulls to push these shares higher they will need to tackle the $57.11 200-day moving average and a huge downside gap between $58.65 and $61.76 created on September 10th. If these shares try to fill that gap this will make a nice short. --- Lehman Brothers - LEH - close: 56.85 change: +2.19 WHAT TO WATCH: Lehman shares have produced a six-day rally from $44.25 to Friday's $55.35. The problem is that volume is decreasing as rapidly as the price went up. From 7 million shares traded on the 10th to 2.2 million on Friday (an average day is 2.4 million), these shares are setting up a classic shorting opportunity as bulls are falling off the bandwagon. Watch for any sign of price weakness. Textbook would combine that weakness with a spike in volume. --- Vector Group - VGR - close: 42.74 change +1.24 WHAT TO WATCH: A breakaway gap, a slight consolidating dip and a strong break above resistance on above average volume. Toss in a late day rally and a bullish break on the point and figure chart, and you have all the ingredients for a bullish leg up. The $46.00 52-week high set in late August looks to be in peril. ================================================================= 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. 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PremierInvestor.net Newsletter Weekend Edition 09-28-2001 section 2 of 3 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/3593_2.asp ================================================================= In section two: Split Trader New Plays: Chevron Corp. - CHV (Bullish) Play Updates: JEC Closed Plays: none Net Bulls New Plays: Gilead Sciences Inc - GILD (Bearish) Long-Term Play: WebEx Communications - WEBX Bullish Play Updates: DNA Bearish Play Updates: MOLX Closed Bullish Plays: none Closed Bearish Plays: FDC Stock Bottom / Active Trader New Plays: none Bullish Play Updates: LMT, MO, RMIC, SZA Bearish Play Updates: KMI, TROW Closed Bullish Plays: none Closed Bearish Play: ACF ================================================================= Split Trader (ST) section ================================================================== ============ ST New Plays ============ ------------------------- New Split Candidate Plays ------------------------- Chevron Corp. - CHV - close: 84.75 change: +1.25 stop: 81.50 Company Description: The third largest US integrated oil company (behind Exxon Mobil and Texaco) runs more than 8,100 gas stations and has proved reserves of 5 billion barrels of oil and 9.5 trillion cu. ft. of natural gas. It will expand even further by buying Texaco, and the new ChevronTexaco will be the world's fourth-largest integrated oil company, behind Exxon Mobil, Royal Dutch/Shell, and BP. Overseas, Chevron is pursuing an exploration and production strategy in such lucrative areas as Kazakhstan and Angola, and it holds a 50-percent stake in Caltex, a global refiner and marketer jointly owned by Texaco. Chevron has also combined its chemicals operations with those of Phillips Petroleum. Fundamentals: Analysts forecast the company will earn $7.72 per share in 2001 and $6.00 in 2002. Last year, the company earned $8.13 per share. The company has a forward 2001 P/E of 10.9. This is in line with the industry average of 11.24. In the last 90-days, seven of 18 covering brokerages have lowered earnings estimates for the firm, one of whom did so in the last 30 days. Why We Like It: How low is too low? When the markets reopened on the 17th, the December futures for light, sweet crude closed at $29.13 a barrel (up $1.24) and Chevron shares at $90.22 (down $1.48). Since then, both assets have been on a slide with oil bottoming at $20.75 on the 26th and Chevron reaching $78.60 a day later. Both have rebounded, with oil closing at $23.68 on Friday and Chevron ending the same trading day at $84.75. This improvement is impressive given that on Wednesday, OPEC decided not to reduce the production, saying that a barrel price between $22 and $28 is ok. Several factors are contributing to the rise; one was their greatly oversold condition, and the other a sense that some semblance of stability is returning to the middle-eastern oil producing areas. For this we can thank the reduced threat of imminent military action and supportive actions by area nations. With tensions easing and reasonable valuations, the oil sector is starting to look like a safer place to go swimming. As one of the best names in the industry with shares so near a significant bottom, Chevron is attracting its share of bargain hunting value investors. The shares have enough current momentum to put in a test of the $88.96 200-day moving average. We will start this play with a stop at $81.50. Picked on September 27th at $84.75 Earnings Date N/A (Not Confirmed) =============== ST Play Updates =============== ----------------------- SPLIT CANDIDATE Updates ----------------------- Jacobs Eng. - JEC - close: 62.40 change: +1.49 stop: 59.75 *new* With the strong close for the 3Q the Dow's performance helped spur buying into plenty of three-letter stocks on Friday. Shares of JEC dipped to 61.00 before seeing a strong surge up to 63.50 all before noon. Later Friday afternoon the stock fell back to 62.00 and bounced higher towards the close. Technically, $61.50 should be support but if the broader markets don't hold up next week investors might be forced to see if $60 will be a stronger level of support for JEC. Because of this, we're going to move our stop up a couple of points to just under the $60 level. Putting it at $59.75 gives us a little bit of room in case the stock sees a temporary dip down. Looking overhead we would like to see JEC make it to $65 before encountering strong resistance. Picked on September 25th @ $ 61.21 Gain since picked: + 1.19 Earnings Date: 11/01 (not confirmed) ================================================================== Net Bulls (NB) Tech Stock section ================================================================== ============ NB New Plays ============ ---------------- New Bearish Play ---------------- Gilead Sciences Inc - GILD - close: 56.17 change: -0.65 stop: 60.00 Company Description: Gilead Sciences is in the hunt for biotech answers for bacterial, fungal and viral infections including the flu, cancer and AIDS. The company's Tamiflu went on the market in time for the 1999-2000 flu season, but its best seller is AmBisome, which is used to treat systemic fungal infections such as those that are associated with AIDS. Other products on the market are DaunoXome, a treatment for Kaposi's sarcoma, and VISTIDE, to treat eye infections. The firm has products in the pipeline for hepatitis B and various cancers. Gilead Sciences has marketing agreements with such heavyweights as GlaxoSmithKline, Pharmacia, and Sumitomo Pharmaceuticals. Fundamentals: Analysts expect the company to lose $1.25 per share on sales of $212 million in 2001 and 14-cents on $312 million in 2002. Last year, the firm lost 48-cents per share on sales of $196 million. Why We Like It: Gilead is a solid biotech firm with a decent pipeline. We are making this a bearish play for technical reasons. The Biotechnology Index ($BTK) has put in a nice four-day rally. However, after spiking up sharply in the morning trading session the index faded badly through to the close. For candlestick aficionados - the chart formed a shooting star pattern, a sign the sector has run out of gas. Gilead has pretty much mirrored the index, it too rallied for the previous four trading session before declining on Friday. The intraday behavior was similar to the index - a spike in the morning followed by a fade into the close. A point and figure analysis confirms that after hitting $45, the shares trended higher until reversing right on schedule at the $58 bearish resistance line. It seems likely the shares are going to test support in the $46 to $50 area before beginning another leg up. We will start this bearish selection with a stop at $60.00. Picked on September 27th at $56.17 Earnings Date 10/25(Not Confirmed) ================= NB Long Term Play ================= WebEx Comm. - WEBX - September 27th close: $21.24 change: +2.74 Company Description: WebEx Communications offers services that let companies orchestrate meetings over the Internet. Clients such as Siemens, Oracle, and TIBCO Software subscribe to the WebEx Meeting Center, which is responsible for more than 90% of sales. The service enables companies to convene with employees, clients, and partners to make presentations, exchange documents, and record and play back videos. WebEx also offers services that allow companies to provide live, technical support for their customers, accessible through Web browsers. Fundamentals: Last year, the company lost $1.85 per share on sales of $25.4 million. This year, the company is expected to narrow those losses to 46-cents a share on sales of $77 million, and to become profitable in 2002 with earnings of 24-cents per share on $146 million. As of June the company had $27.6 million in cash, short- term debt of $3.3 million and long-term debt of $4.2 million. Why We Like It: Conducting meetings over the Internet is a low-cost technology that is long on promise and has been a long time reaching widespread acceptance. The acceptance of that technology was greatly accelerated when the world turned around on September 11th. There are a number of reasons why companies are rushing to embrace this high tech approach to running a meeting or conducting a training class. First of all, reducing business travel can save time, reduce expenses and boost productivity. All are desired commodities in a recession. Also, employees' fear of airline travel and their reluctance to navigate the hassles associated with increased airport security measures are making them more willing to sacrifice the advantages of face-to-face meetings. With over 4,000 customers the company is one of the leaders in this industry. Following the terrorist attacks, there are indications from analysts that the company has seen a surge in interest from potential customers and increased usage from existing accounts. In addition, Briefing.com reported late Friday that SoundView is making positive comments on WEBX indicating that the company will coming in at the upper end of the range for the September quarter and is confident about the December quarter. Clearly, for investors searching for a leader in a cost-effective technology that has come of age - WEBX shares are worthy of consideration. Earnings Date 10/17 (Not Confirmed) =============== NB Play Updates =============== ----------------------- NB Bullish Play Updates ----------------------- Genentech - DNA - close: 44.00 change: -0.84 stop: 41.50 As our regular readers know, we were discussing the biotech sector's big bounce on Thursday and comparing the move with a common retracement tool. Thursday's big jump allowed the BTK.X to recover 23.6% of its big slide these last few weeks. The 23.6% is a Fibonacci retracement level. The reason we bring it up again was the uncanny coincidence that Friday's session saw the Biotech index soar to 469 early in the day before selling off again. It just so happens that 469 is pretty darn close to the 38.2% Fibonacci retracement level measuring the same slide. For those of us that are not into reading technical indicators stuff like Fibonacci numbers can seem like mumbo jumbo. We like to look at them because in times of uncertainty we find that many times (not all) fund traders or professionals will look for some level or as some pundits refer to it a line in the sand to help them gauge when and where they should sell or buy a stock or equity after a strong move or bounce. I digress, we're trading DNA not the BTK. However, a trader should ALWAYS consider the strength of the trend in the market and sector before considering a trade in a stock. DNA also saw an early morning spike trading up to overhead resistance at $46 before coming back to the $44 level. Unfortunately, DNA closed below $44 right before the close. At this time we stand by our stop at $41.50 as we would expect shares of DNA to find support at the $42 level. We warned our readers Thursday that DNA might see some profit taking on Friday and 84 cents isn't that bad. Confirm stock and market direction on Monday before looking to enter new plays. Look for a bounce at $42 or $43 or another close back over $44. Picked on September 20th @ $41.20 Gain since picked: + 2.80 Earnings Date: 10/10 (confirmed) ----------------------- NB Bearish Play Updates ----------------------- Molex Inc - MOLX - close: 28.11 change: +0.06 stop: 30.50 Molex traded in a very narrow range on Friday. Intraday one could see there was selling pressure at the $28.50 level while the bulls were supporting it (for now) at the $28 area. Considering that both the major indices were up nicely on Friday the lack of participation in MOLX should be encouraging for the bears. We would expect the stock to rollover again the next down day we see in the markets. Cautious traders could consider tightening their stops between 29.00 and 30.00 but we have elected to keep ours slightly above $30 until the next drop in share price. If you're looking for entry points, another bounce to 28.50 or even 29.00 might work or the next time it trades under $28.00. Picked on September 26th @ $28.08 Gain since picked: - 0.03 Earnings Date: 10/18 (not confirmed) ============== NB Closed Play ============== ------------------- Closed Bearish Play ------------------- First Data - FDC - close: 58.26 change: +5.02 stop: 56.00 Ouch! This train never got a chance to leave the station. After closing below significant support at $55 on Wednesday and confirming the move with another drop on Thursday the technical picture looked bleak for FDC. Add the terrible consumer confidence numbers and voila, we thought this would have been a real winner. Volume had been very big the last few down days so the move down appeared to be confirmed. There was no real news on FDC come Friday except for another brokerage expressing their concerns about the earnings forecast which should have been in the bears' favor. The only thing that might explain the 9.42% gain on Friday was some large portfolio shuffling by money managers. Why they had to buy FDC we don't know. Yes, the stock is still up for the year (barely) but it's 3Q performance was horrendous like most of the market's. The bear's tried to hold them off at $54.50 on Friday but by noon the bulls had broken through and the rally was non-stop into the close. If we weren't so shocked by the unexpected rally we'd expect some profit taking come Monday morning. Picked on September 27th @ $53.24 Gain since picked: - 2.76 Earnings Date: 10/08 (not confirmed) ================================================================== Stock Bottom / Active Trader (AT) section ================================================================== ============ AT New Plays ============ - none - =============== AT Play Updates =============== ----------------- Bullish Play Updates ----------------- Lockheed Martin - LMT - close: 43.75 change: +0.45 stop: 40.00 Defense stocks struggled today, but Lockheed still managed to post a 45-cent gain. It had been up over $1, but weakness in Northrop Grumman (NOC) and Alliant Tech Systems (ATK) held back Lockheed. LMT still remains above its 10-day moving average, and is poised to fly past resistance at $46. However, if we see a broad market dip, traders might consider another bounce at the $42 level as a potential entry point. Don't forget to play with a stop. Picked on September 27th at $43.30 Gain since picked: +0.45 Earnings Date 10/25 (unconfirmed) --- Phillip Morris - MO - close: 48.29 change: -0.71 stop: 45.00 Having finally climbed back to its earlier trading range between $47 and $49 investors are now looking for MO to do what it has been unable to do for the last four weeks - breakthrough resistance at $49.00. The week from Hell where the Dow lost 15% in five days is over and has helped establish the $45 level as strong support for MO. The 200-dma has helped bolster this support and we saw a very strong rally on Thursday. To us, Friday's dip appeared to be a little bit of profit-taking before the weekend. Don't forget that MO is defensive stock and if the street continues to see signs of a recession throughout October and November, then money could flow stronger to stocks like MO. Traders can look to enter long on a dip back to $47 or a close over $49. Cautious investors might want to consider a higher stop near the $46.50 level but we are more comfortable giving the equity some room at $45. Picked on August 30th at $47.94 Gain since picked: +0.35 Earnings Date 10/17/01 (unconfirmed) --- Right Mgmt - RMCI - close: 31.05 change: +2.51 stop: 29.25 *new* There are not many stocks making new 52-week highs in this market but RMCI is one of them. Friday saw an 8.79% gain or $2.51 on extremely heavy volume of 521K shares. Since PremierInvestor has picked RMCI on Sept. 20th, the stock is up 6.35 points or over 25%. The strong rally pushed shares through resistance of 29.50 & 30.00. Apparently all the recent layoffs have investors convinced demand will be high for career transition services which RMCI provides. We are moving our stop up to $29.25. Why are we moving our stop up so high? We're concerned that the eight-day rally that has pushed shares from $22 to $31 or over 40% higher is in desperate need of a pullback. We did consider closing the play here and would encourage traders to consider taking some profits now. However, we elected to keep the trade open with a tight stop on the odds that the rally will continue on Monday. Those investors looking for a much longer term trade should be aware that if the stock was to pull back from here we could see a bounce at $28.85 (a 23.6% retracement), at $28, which looks like price support, at $27.50 (38.2%) or at $26.39 (50%). The best case scenario would be for shares to dip back to $30 to find support but that seems unlikely. Picked on September 20th at $24.70 Gain since picked: +6.35 Earnings Date N/A --- Suiza Foods - SZA - close: 63.14 change: -0.71 stop: 62.50 Experienced investors know that in a recession food stocks are the ultimate defensive play. People will still need to eat. Money tends to flow into food stocks as investors and money managers realize food companies should be the best protected from a downturn in revenues. Since the 19th of September, shares of SZA have been on a hot streak. The stock has seen seven straight gains in a row so it was no surprise that SZA dipped on Friday. We were surprised that the dip was less than a dollar and it failed to hit our stop at 62.50. Now that the end of the quarter has passed we could see more profit taking on Monday. Be prepared for SZA to sell off a little more if the markets are down early next week. If you're looking to SZA for a slightly longer-term trade then be aware that the $60 level should prove to be very strong support for the stock and a bounce here would make a good entry point to go long. Currently, the Premier Investor newsletter shows a move of over six points or over 10% since the play was picked. Picked on September 19th at $57.01 Gain since picked: +6.13 Earnings Date N/A ----------------- Bearish Play Updates ----------------- Kinder Morgan - KMI - close: 49.21 change: +2.07 stop: 51.00 Friday's trading saw a 4.39% gain for shares of KMI in what looks like a strong oversold bounce and combination with probably short covering. The stock had dropped substantially from mid-Sept. and after bouncing near the $46 level on Thursday needed to see a relief rally. The close on Friday was right below the 23.6% retracement level of the recent plunge in KMI's share price. Considering that the stock closed right near its high for the day we could expect some follow through on Monday morning. If this is to remain a bearish play we need to see the stock rollover at the $50 level. New positions should be entered cautiously as you confirm the downward trend of the stock before entering a bearish play. If the stock does rollover again on Monday or Tuesday it is still likely that the bears will be targeting the mid-January low of $43. Picked on September 25th @ $50.00 Gain since picked: + 0.79 Earnings Date: 10/17 (not confirmed) --- T. Rowe Price Group - TROW - close: 29.30 change: +1.25 stop: 30.50 The immediate future remains bleak for asset managers and shares of TROW show it with a painful drop for the month of September. Recent statistics show evidence that the average fund dropped over 20% for the 3Q. Add to that the increasing outflow from funds and TROW will likely produce some awful earnings numbers. This coming week will be the test for TROW's stock. We've seen the huge drop from $38 to $25.70 (with an intraday low of $23.44) and we've seen the oversold bounce this last week back up to the $29 - $30 level. Unfortunately, for TROW shareholders, even with the broad market rally on Friday the stock could not breakthrough resistance at $30. We are looking at two likely scenarios for next week. One, the broad market rally continues on Monday and it gives the bulls enough confidence to push TROW through our stop. Two, what we expect to happen, is for there to be some profit taking on Monday and TROW should rollover from here and begin its next leg down. Confirm market and stock direction before initiating any new plays. Aggressive players should see that an entry here with a stop at 30.50 produces a nice risk/reward scenario. Picked on September 20th @ $27.57 Gain since picked: - 1.73 Earnings Date: N/A (not confirmed) =============== AT Closed Plays =============== -------------------- Closed Bullish Plays -------------------- -none- -------------------- Closed Bearish Plays -------------------- AmeriCredit Corp. - ACF - close: 31.62 change: +2.38 stop: 31.00 After failing to participate in any sort of rally for the whole week, pent up pressure was too much and ACF roared out of the gate on Friday to enjoy a gain of over 8%. Fortunately for us, our stop at $31.00 helped us close the play with a drop of 9 points or 22.5%. Keep your eyes on this stock as the market cap has been cut in half over the last six weeks. There could be an oversold rally but there is plenty of resistance overhead. Picked on September 7th @ $40.00 Gain since picked: + 9.00 Earnings Date: N/A (not confirmed) ================================================================= 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 Weekend Edition 09-28-2001 Section 3 of 3 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/3593_3.asp ================================================================= In section three: Expected/Likely Split Announcements For The Coming Week New Split Candidates: CACI International, Inc. -CACI Market Watch for Week of October 1st - Major Earnings - Board of Directors Meetings - Stock Splits - Economic Reports 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 ================================================================= ================================================= Expected/Likely Announcements For The Coming Week ================================================= Date Expected Symbol Company To Announce ================================================= THC Tenet Healthcare 10/03 ADVP AdvancePCS 11/01 ================================================= EXPLAINATION: THC - Tenet Healthcare Historically, the stock is trading well above prior levels of split announcements, which have been in varying ratios of a 2:1, 5:4, 3:2, plus smaller stock dividends; eleven splits in all since 1972. There's plenty of cushion right now for a 3:2 announcement, but with 700 million shares authorized and 326 million outstanding, the Board may want to increase those authorized shares. An annual meeting for stockholders is coming up on October 10th, but this issue has not been spelled out in the agenda. This leads us to the earnings release scheduled for October 3, presenting the earlier possible opportunity to announce a 3:2 dividend. PremierInvestor is not recommending this stock as a "play" at this time, but please view the "Current Play List" for the possible addition of THC in the near-term future. chart = === ADVP - AdvancePCS 52-week range: 28.31 - 76.46 Calling itself "the nation's leading health improvement company" this current split candidate is a provider of health benefit management services to pharmaceutical manufacturers and health plan supporters. The stock has performed well even with the Nasdaq hitting its worst levels recently. The company also confirmed that it is still comfortable with prior Q2 earnings estimates and it has not been materially affected by the tragedy of 9/11. We bring this stock to the attention of split traders due to the SEC filing of September 18, which calls forth shareholders to vote at the annual meeting of stockholders on November 1, 2001. The issue of interest is the proposal to amend the certificate of incorporation to increase the number of authorized common stock. The number of Class A shares would increase form 86.3 million to 186.9 million if the motion is approved. There are currently 37.6 million shares outstanding; therefore, there would be ample leeway for a 2-for-1 split after the amendment is passed, should it be the Board's intention. The last split announcement, a 2:1 in 1999, was at the $40 level. PremierInvestor is not recommending this stock as a "play" at this time, but please view the "Current Play List" for the possible addition of ADVP in the near-term future. chart = ======================================= New Split Candidates to add to the List ======================================= CACI International, Inc. -CACI CACI is a provider of information assurance and security software to the Department of Defense (60 percent of the company's revenue), the U.S. Navy and other government agencies. The Company also provides financial management services for major civilian and defense programs, but war-simulation software is its cornerstone. Even prior to the 9/11 attacks, CACI's stock was up 74 percent for the year, giving it a market valuation of $453 million. Shares were trading at $41 on September 10th and made no hesitation in achieving the current 14-point gain. Recent contracts include a $20 million GSA schedule to provide financial management services to federal agencies (Sept. 5) and more recently, a $30 million battlefield simulation deal with the Defense Department (Sept 18). From a split standpoint, CACI hasn't announced anything since 1986. The stock was trading at about three bucks a share at that point so it's a bit of a wildcard to try and predict an exact date for their next announcement. There are already enough authorized shares for the Board to do what they want, so we won't be seeing an SEC filing in that regards. Earnings are being released on October 18 which could provide a possible trigger, but they are also due for an annual meeting of shareholders within the next couple of months. Check the "Current Plays" for the possible addition of CACI in the future. See the complete list of split candidates. ================================================== Market Watch for the week of October 1st ================================================== ------------------------ Major Earnings This Week ------------------------ Symbol Company Date Comment EPS Est WWW Wolverine World Wide Mon, Oct 01 Before the Bell 0.34 CDT Cable Design Tech Mon, Oct 01 After the Close 0.10 ARRO Arrow International Mon, Oct 01 ----- n/a ----- 0.55 WAG Walgreen Mon, Oct 01 ----- n/a ----- 0.21 ALOG Analogic Tue, Oct 02 Before the Bell 0.34 HB Hillenbrand Ind. Tue, Oct 02 08:00 am ET 0.65 STZ Constellation Tue, Oct 02 ----- n/a ----- 0.82 RAD Rite Aid Corp Tue, Oct 02 ----- n/a ----- -0.14 THC Tenet Healthcare Wed, Oct 03 Before the Bell 0.64 MANU Manugistics Wed, Oct 03 After the Close -0.15 ATYT ATI Technologies Wed, Oct 03 ----- n/a ----- 0.00 FDO Family Dollar Store Wed, Oct 03 ----- n/a ----- 0.20 RIMM Reasearch In Motion Wed, Oct 03 ----- n/a ----- 0.04 RI Ruby Tuesday Wed, Oct 03 ----- n/a ----- 0.24 AA ALCOA Thu, Oct 04 Before the Bell 0.40 NAUT Nautica Enterprises Thu, Oct 04 Before the Bell 0.40 SRR Stride Rite Thu, Oct 04 Before the Bell 0.16 RPM RPM Thu, Oct 04 After the Close 0.27 MAR Marriott Intl. Thu, Oct 04 ----- n/a ----- 0.39 ------------------------------- Upcoming Stock Splits This Week ------------------------------- Upcoming Stock Splits This Week... Symbol Company Name Splits Payable Executable CECO Career Education 2:1 09/28 10/01 AAON AAON, Inc. 3:2 09/28 10/01 CEFT Concord EFS Inc. 2:1 09/28 10/01 -------------------------- Economic Reports This Week -------------------------- Amongst a barrage of economic releases, the Federal Open Market Committee meets on October 2. Analysts are expecting a 25 basis point rate cut, the second cut in a period of just three weeks. Monday ====== Auto Sales Sep Forecast: 5.5M Previous: 5.8M Truck Sales Sep Forecast: 6.7M Previous: 7.4M Personal Income Aug Forecast: 0.3% Previous: 0.5% PCE Aug Forecast: 0.3% Previous: 0.1% Construction Spending Aug Forecast: -0.4% Previous: -0.1% NAPM Index Sep Forecast: 45.0% Previous: 47.9% Tuesday ======= FOMC Meeting Wednesday ========= NAPM Services Sep Forecast: 43.8% Previous: 45.5% Thursday ======== Initial Claims 9/29 Forecast: N/A Previous: 450K Factory Orders Aug Forecast: -0.5% Previous: 0.1% FOMC Minutes 8/21 Friday ====== Nonfarm Payrolls Sep Forecast: -100K Previous: -113K Unemployment Rate Sep Forecast: 5.0% Previous: 4.9% Hourly Earnings Sep Forecast: 0.3% Previous: 0.3% Average Workweek Sep Forecast: 34.0 Previous: 34.1 Consumer Credit Aug Forecast: N/A Previous: 0.0B Week of October 8 ==================== Oct 10 Wholesale Inventories Oct 11 Initial Claims Oct 11 Export Prices ex-ag Oct 11 Import Prices ex-oil Oct 12 PPI Oct 12 Core PPI Oct 12 Retail Sales Oct 12 Retail Sales ex-auto Oct 12 Mich Sentiment-prel. ================== 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 VGR Vector Group Ltd 42.74 +1.24 RMCI Right Management Cons 31.05 +2.51 RNR Renaissance Holdings 88.91 +2.41 GLM Global Marine 14.00 +0.62 THX Houston Exploration 24.80 +1.79 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- Ticker Company Name Close Change SAGI Sage Inc 15.25 +3.89 SANG Sangstat Medical 18.43 +1.43 GNTR Gentner Communication 18.16 +1.51 NVAX Novavax 14.10 +1.30 MOGN Mgi Pharma 13.37 +1.19 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- Ticker Company Name Close Change VGR Vector Group Ltd 42.74 +1.24 RMCI Right Management Cons 31.05 +2.51 ILUM Illuminent Holdings 38.32 +2.40 HRH Hilb Rogal & Hamilton 45.61 +2.12 PDX Pediatrix Medical 40.79 +1.41 ----------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- Ticker Company Name Close Change SNE Sony Corp 33.20 -3.99 CSGS Csg Systems International 41.00 -1.90 CFR Cullen Frost Bankers 26.95 -6.45 PBCT Peoples Bank Bridgept 22.20 -1.13 UVV Universal Corp 33.37 -5.40 ------------------------------------------------------------ Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------------------------- Ticker Company Name Close Change none ================================================================= 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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