PremierInvestor.net Newsletter Monday 05-13-2002 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/e13b_1.asp ================================================================= In section one: Market Wrap: NASDAQ Bounces Back With AMAT at the Doorstep Watch List: AHC, IBM, SSCC, WLP, ACTL, MAN, TDS, and lots more! Play of the Day: The Road to Profits ****************************************************************** MARKET WRAP (view in courier font for table alignment) ****************************************************************** 05-13-2002 High Low Volume Advance/Decline DJIA 10109.66 +169.74 10110.97 9920.20 1.10 bln 2002/1204 NASDAQ 1652.54 + 51.69 1653.10 1602.60 1.64 bln 2110/1408 S&P 100 533.76 + 10.52 533.76 522.31 Totals 4112/2612 S&P 500 1074.56 + 19.57 1074.84 1053.90 RUS 2000 499.72 + 6.99 499.85 492.42 DJ TRANS 2703.51 + 60.41 2712.95 2641.64 VIX 23.50 - 1.53 25.92 23.26 VXN 45.12 - 4.61 49.30 46.12 TRIN 0.62 PUT/CALL 0.85 ****************************************************************** =========== Market Wrap =========== NASDAQ bounces back with AMAT at the doorstep After two days of disappointing losses following surprising rally last Wednesday, technology stock rebounded today as traders tune in on tomorrow's earnings report from Applied Materials (NASDAQ:AMAT) $25.58 +7.93%, which helped lead the Semiconductor Index (SOX.X) 509 +5.86% to the top of today's sector gainers. Trader's noted some nervousness from bears ahead of Applied Material's earnings, citing last Tuesday's evening bullish response to Cisco Systems' (NASDAQ:CSCO) $15.70 +1.81% earnings report that sparked a brief, yet powerful, NASDAQ rally. The tech-heavy NASDAQ Composite gained 51.59 point (+3.2%) to 1,652 in today's trading, while the larger cap NASDAQ-100 Index (NDX.X) jumped more than 4% with a 52.76 point gain to 1,241.54. Breadth on the broader NASDAQ Composite was positive with gainer outnumbering loser by a 3 to 2 margin, but volume was light at 1.63 billion shares. The widely watched Dow Industrials (INDU) 10,109.66 +1.7% finished at a session high and now sits just 32-points shy of Wednesday's close. Traders and investors alike will be monitoring the 10,150 level near-term as a trade at that level could trigger further bullishness with a triple-top buy signal coming just above the bearish resistance trend. Dow Industrials Chart - 50-point box The Dow Industrials (INDU) battled back near Wednesday's closing highs and there's a good battle taking place between bulls and bears here. The bulls have defended the 9,800 level in recent weeks and bears might be in some trouble with a trade at 10,150. A trade at that 10,150 level would mark a break of downward trend on the point and figure chart and get the vertical count back on the bullish side to 10,600. Such technical action could lift the spirits of the bulls near-term. Twenty-six of the thirty Dow components finished in positive territory today leady by gains in Intel (NASDAQ:INTC) $28.52 +5.59%, Microsoft (NASDAQ:MSFT) $52.69 +5.27% and SBC Communications (NYSE:SBC) $32.05 +5.25%. Shares of Eastman Kodak NYSE:EK) $33.57 -2.12% halved earlier-session losses after UBS Warburg downgraded the stock to "hold" from "buy", while Caterpillar (NYSE:CAT) $52.75 -0.11%, AT&T (NYSE:T) $13.70 -0.07% and Johnson & Johnson (NYSE:JNJ) $61.84 -0.01% finished with fractional losses. Most important perhaps to the Dow Industrials near-term is Wednesday's meeting between International Business Machines (NYSE:IBM) $82.19 +3.15% and industry analysts. Today, SG Cowen named IBM their "Action Idea of the Week" based on the belief that 2002-03 EPS will top consensus estimates. SG Cowen thinks a pickup in services contract signings during Q4-Q1 may presage a resumption of double-digit revenue growth in services beginning in Q4, and OEM business should see earnings swing as customer's inventories of IBM's chips are now balanced. Cowen added that at 15-times 2003 estimates and a 22% discount to the S&P 500, IBM's shares look "conspicuously undervalued." SG Cowen's price target for IBM is $112 per share. Intl. Business Machines Chart - Daily Interval It's tempting for a trading bull to follow SG Cowen's call on IBM. IBM gapped lower in early April after warning on Q1 earnings that were then reported on April 17th. Some traders wonder if there could really be any "new" types of negative surprises so soon after recent earnings. A break above the $83 level in conjunction with the Dow Industrials (INDU) trading 10,150 could have an IBM short assessing risk to $88 ahead of Wednesday's analyst meeting. S&P says "goodbye" to WorldCom and U.S. Airways Just when bulls in telecom services giant WorldCom (NASDAQ:WCOM) $1.44 -8.86% and air carrier U.S. Airways Group (NYSE:U) $2.98 -17.2% thought it couldn't get any worse, it has. Both stocks traded to new 52-week lows today, just before tonight's announcement from Standard & Poor's that both stocks will be removed from the S&P 500 Index (SPX.X). Mutual funds set up to mimic the S&P 500 Index will be replacing their WorldCom (WCOM) and U.S. Airways Group (U) holding with shares of oil service provider BJ Services (NYSE:BJS) $38.36 +1.16% and education provider Apollo Group (NASDAQ:APOL) $36.65 +3.61%. S&P said the changes would take place after the close of trading tomorrow. Retail sales tomorrow morning, along with some earnings The S&P Retail Index (RLX.X) 913.25 +1.26% edged higher today as gains in the big 3 automakers had General Motors (NYSE:GM) $67.27 +1.61%, Daimler Chrysler (NYSE:DCX) $47.90 +0.73% and Ford Motor (NYSE:F) $16.19 +2.27% also hint of some bullishness building ahead of tomorrow morning's retail sales numbers. Economists are looking for April retail sales (including autos) to gain 0.6%, while the ex-autos number is expected to show a 0.4% gain. Traders will have the retail sales numbers prior to the opening bell and this could set an early tone ahead tomorrows trading session. Dow component Wal Mart (NYSE:WMT) $55.04 +2.57% is slated to report earnings before the opening of trading and analysts expect the company to report earnings of $0.36 a share. Discounter TJX Company (NYSE:TJX) $20.69 -2.86% traded lower ahead of tomorrow morning's scheduled earnings. Analysts polled by Multex are looking EPS of $0.26 a share. Jeff Bailey Senior Market Technician ================================================================== WATCH LIST ================================================================== The PremierInvestor.net watch list is not designed to be read as full fledged stock picks. Rather we would prefer to offer it as an extra tool in today's investor toolbox. Think of it as a radar screen with your own radar operator pointing out interesting developments, technical patterns or potential plays that you may or may not have seen on your own. Due to time constraints we do glance at the news but rarely do we have time to fully read pertinent news stories, due background research and other necessary screens that investors should do before making a decision. A common exercise is to read the entry, glance at the sector and other stocks in that industry and then compare what's happening in the stock to what's happening in the broader market indices. We hope you enjoy the Watch List and that it proves to be a useful tool for your own trading success. STOCKS WORTH WATCHING --------------------------------- Amerada Hess - AHC - close: 80.79 change: +2.36 WHAT TO WATCH: Amerada Hess is a major diversified oil company. The challenge to companies like AHC and Occidental Petroleum (OXY) is to generate attractive profits regardless of the price of crude oil. Although crude oil remains strong--and AHC will sometimes mirror the movement in this commodity--our technical charts are suggesting that the XOI.X (Oil Index) and its component stocks, like AHC, are poised for new upward moves of their own. AHC broke out of a six week consolidation during the last two trading sessions--springing off its 50-dma--and doing so on improving volume. AHC is indicating to us that it wants to advance higher in coming trading sessions. Aggressive traders could use the close over the $80 level as a potential trigger to go long. We'd initially target the $85 level but expect potential resistance at the recent highs near $82. Check out the MACD. The bullish crossover near the baseline looks very encouraging for longs. --- International Business Machines - IBM - cls: 82.19 chg: +2.51 WHAT TO WATCH: Since hitting a major low of $75.92 on May 7th, IBM has been holding tightly to its subsequent rebound. The company is scheduled to brief analysts on Wednesday about its current and future business conditions; you don't need to have a Ph. D. to realize that trading in IBM is likely to be quite volatile ahead of that meeting. We have added IBM to our Watch List because we do think it is probable the stock will move sharply, one way or the other, this week. Our thoughts on the stock are these: 1) A decline below $79.60 is likely to push IBM back toward its May 7th lows. 2) A break above $83.00 brings with it the chance for the stock to begin a more serious recovery from its recent whipping. Other key events that might affect IBM will be AMAT's earnings on Tuesday and DELL's earnings on Thursday. --- Smurfit-Stone Container Corp. - SSCC - cls: 17.12 chg: +0.24 WHAT TO WATCH: Smurfit Stone Container is affiliated with Ireland's Jefferson Smurfit Group, the world's largest maker of containerboard and corrugated containers, and a global leader in wastepaper recycling. The Forest and Paper Products Index (FPP.X) has been consolidating after reaching a 52 week high in early March 2001. This consolidation appears to be nearing an end, and we would look for stocks in this sector, like SSCC, to begin new upward moves. SSCC has a resistance region in between $17.24-$17.57; once it has moved above this region, we would look for it to be potentially attractive on as a long position. --- Wellpoint Health Network. - WLP - close: 71.97 change: -0.90 WHAT TO WATCH: We profiled Wellpoint Health Network several days ago, but feel that it deserves another look as a potential short position. WLP is part of the recently much-loved healthcare provider complex; one of the best indexes covering this sector is the HMO.X (Morgan Stanley HealthCare Index). This index has been very strong in recent months, and component companies have been applauded by Wall Street for their strong earnings. Fundamentally, then, the sector remains a healthy one. However, we feel that the sector is potentially vulnerable to profit-taking for two principle reasons: 1) the overbought nature of the index, which is now accompanied by declining momentum patterns, and 2) a potential shift of investment dollars--out of these stocks and into Nasdaq tech stocks--should a rally in the Nasdaq market gain legs in coming days and weeks. WLP rose from the high $50's to the high $70's from early March through early May, 2002. It is our view that the stock may have now topped for the time being. Its recent price action has created short-term resistance in the $72.50-$73.80 region. An advance into this region is likely to cause the stock to stall, with another round of weakness possibly beginning, and our view would be that WLP might be a good short candidate at that time. More cautious shorts could wait for a close under the $70 level, which might act as psychological support. Alternatively, if WLP regains the $75 level, the stock and the sector could be building on a second leg higher and as traders who are willing to trade both directions we'd consider it a potential long. --- Actel Corporation - ACTL - close: 24.37 change: +0.97 WHAT TO WATCH: On Tuesday, May 14th, Applied Materials--a major component of the Semiconductor Index (SOX.X)--reports its quarterly earnings after the close of the market. Actel is one semiconductor stock, which has managed to survive fairly well in recent months. The stock put in a short-term bottom on February 21st, and has been gradually working higher ever since. More recently, ACTL has been in a sideways consolidation; a move above $24.85 to $25.00 will push ACTL out of its consolidation and should allow it to begin a new upward move. We will naturally be watching AMAT's earnings, which will almost certainly set the tone for the near- term direction of ACTL. --- Manpower, Inc. - MAN - close: 41.23 change: +2.37 WHAT TO WATCH: An improving economy needs workers, and that's what Manpower does: it provides full time and temporary manpower on a global basis, through 3900 offices. We like the general technical pattern which continues to form on the Dow Jones Industrial Average, and believe that MAN can benefit from a breakout in the Dow. MAN rose sharply on Monday, helped not only by a strong Dow but also weekend reports that a steady improvement in employment continues to be see. Today's advance might see some near term profit taking; a move above the recent high of $41.55 should push MAN out of the two-month consolidation in which it has been trading; we like it as a potential long play. --- Telephone & Data Systems - TDS - close: 78.70 change: -1.30 WHAT TO WATCH Telephone and Data Systems, Inc. (TDS) is a diversified telecommunications company. Like this entire sector, the stock has suffered for the last 2 years. On Friday, May 10th, Standard and Poor's lowered its credit rating on TDS to negative from stable, and Moody's Investor Service did the same. Understandably, TDS saw the price of its stock hit hard, tumbling from Thursday's close of $84.50 to a low of 77.50 during Monday's trading session. With the RSI, Stochastic Oscillator and MACD all turning negative, the likelihood of more weakness in this stock must be considered. The stock now has a zone of resistance right at the 80.00 level, and we expect any short- term rebound to that area to be followed by more price weakness. This would be a logical shorting point for aggressive traders. ============= MORE TO WATCH ============= Cablevision - CVC - close: 20.25 change: -2.15 CVC was hammered for a 9.6% loss today and is threatening to break below its descending channel. Driving the stock lower were rumors of a convertible bond offering. We have no idea whether these rumors are well founded, but the technical picture is extremely bearish. Aggressive traders could target a move below today's low of $19.39, which would help to confirm a break out of the channel. --- ESS Technology - ESST - close: 16.20 change: +0.80 As outlined above, tomorrow night's AMAT earnings could have a substantial impact on the chip group. ESST looks like a good way to play the sector if AMAT has disappointing news. Shares have spent the last two weeks coiling under resistance at the 200-dma (17.24). This level is bolstered by bearish p-n-f resistance. If the sector does a nosedive, ESST looks like it could quickly retest its relative lows near $13.00 (and beyond). --- Expedia, Inc. - EXPE - close: 76.26 change: +3.76 EXPE has just bounced off its 50-dma, which happens to coincide with its ascending regression channel. Our Stochastic Oscillators are beginning to curl higher from the oversold region and the p-n-f chart just reversed into a column of X's, which helps confirm the positive nature of our other indicators. Look for a move above today's high or a dip to the psychological $75 level. --- Interstate Bakery - IBC - close: 28.45 change: +1.19 After consolidating under the $26 level for several months, IBC finally staged a breakout on Thursday. The move has been accompanied by increased volume, which suggests more upside potential. The ascending triple-top p-n-f breakout also bodes well for the bulls. Today IBC added another 4.3% after CSFB and MER initiated coverage of the stock. Aggressive traders can consider entries on a move above today's high at $28.50 or a dip to the $27.00 level. =============== Play-of-the-day (BULLISH) =============== DaimlerChrysler - DCX - close: 47.90 change: +0.35 stop: 44.66 DaimlerChrysler AG is a German-based manufacturer of automobile and automobile products. The company is additionally involved in the financing of automobiles. The DaimlerChrysler corporation has five business segments, of which Mercedes-Benz Passenger Cars and the Chrysler Group are the most well known. - ORIGINAL WRITE UP: May 3rd, 2002 - DaimlerChrysler's stock has not done much in the last two months, as it has consolidated in a broad range in the mid-40's. We like this stock for that very reason: it has taken a breather and now seems ready to move higher as the overall market struggles out of its doldrums. Like any marathon runner, stocks need to rest between long runs; DCX has been using its 40-dma and 50-dma as a resting point in recent weeks, and its stock price is modestly above the 50-dma as of Friday's close. Even though a worker strike in Germany may affect some DCX manufacturing operations, the stock was able to edge higher on Friday while much of the market was negative. Our strategy is to either buy DCX on a breakout above 48.12 to new short-term highs, OR acquire it on a modest pullback to support in the 45.50-46.50. We will present a stop level once our trade has been triggered but it will likely show up between $43 and $44. You might find a longer-term chart, like a weekly interval, an interesting view for DCX at $22. - Most Recent Update: May 10th, 2002 - Strikes in the German metals and electronics industries continued Friday; they are expected to widen next week. As we have reported previously, these strikes may have some effect on German-based auto maker DaimlerChrysler. Overall, though, the technical pattern on this stock does not confirm any negative influence on DCX's stock price from the strikes, and we remain optimistic about this big cap long position. One of the observations we've recently made is that volume expands on up days and contracts on down downs. This suggests that buyers are willing to acquire the stock on strength, while a decline in DCX's price produces only modest selling. This, obviously, is good for our bullish bias. - Play-of-the-Day Comments: May 13th, 2002 - With GM breaking to multi-month highs today, we're looking for DCX to stage a breakout of its own. The key action point is the $48 level, which has recently thwarted intraday rallies in DCX. Shares have traded in a pattern of higher lows, which often portends a powerful upside move. Traders looking to go long can target a close over $48.02 or an intraday move over the near-term high at $48.35. Picked on May 6th at $46.50 Gain since picked: +1.40 Earnings Date 02/20/02 (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 Monday 05-13-2002 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/e13b_2.asp ================================================================= In section two: Net Bulls Triggered Play: BRCM (bearish) Closed Bearish Play: BMC Active Trader Triggered Plays: DHR, TSG (bearish) Stop Adjustment: SII (bullish) High Risk/Reward Closed Bullish Play: VRSN Long-Term Plays Closed Bullish Play: HC Split Trader CACB: 3-for-2 split announcement ESI: 2-for-1 split announcement 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) ================================================================== Net Bulls (NB) Tech Stock section ================================================================== =============== NB Play Updates =============== Triggered Short Play -------------------- Broadcom - BRCM - close: 26.39 change: +1.85 stop: 27.01 Believe it or not, selling was the dominant theme in early- morning trading for BRCM. Shares moved under $24.49, which activated this short play with a stop at $27.01. A subsequent rally in the chip sector courtesy of anticipation of strong AMAT earnings pushed BRCM to a 7.5% gain. If we're not stopped out tomorrow, we'll be waiting to see how the market reacts to AMAT's announcement on Tuesday night. =============== NB Closed Plays =============== -------------------- Closed Bearish Plays -------------------- BMC Software - BMC - close: 16.70 change: +0.72 stop: 16.53 *new* A day ahead of its annual Investor Day, BMC moved higher with the software sector and gained 4.5%. A strong rally in the SOX.X carried over to the GSO.X software index, which gained nearly 4.7%. Shares of BMC rose sharply after retest of the $16 level and quickly moved above our stop at $16.53. This closed out our short play for a loss of eight cents. Despite today's rally, BMC faces formidable overhead resistance in the form of the 50 and 200 MA's just under $17. A failed rally at this level combined with a lack of positive news from the AMAT and IBM camps could present a fresh opportunity for aggressive bears. In related news today, BMC announced the availability of its website monitoring software in Mexico and Latin America. Picked on May 9th at $16.45 Gain since picked: -0.08 Earnings Date 05/06/02 (confirmed) ================================================================== Stock Bottom / Active Trader (AT) section ================================================================== =============== AT Play Updates =============== Triggered Short Plays --------------------- Danaher Corp. - DHR - close: 69.38 change: -0.51 stop: 73.01 Shares of DHR gapped lower this morning and opened below our trigger price of $69.39. This initiated our short play at the opening price of $69.03. Now that the play is active, our stop- loss is set at $73.01. Now we're targeting a move to the 200-dma near $61.50 but expect support between $64.50 and $65.00. --- Sabre Holdings - TSG - close: 40.05 change: -0.08 stop: 42.01 Despite strong days turned in by travel stocks ROOM and EXPE, TSG finished with a fractional loss. Shares spiked lower in afternoon trading and triggered our action point at $39.74. With the sector acting strong and shares resting just above the 200- dma, traders still looking for an entry may want to wait for a move under today's low of $39.67. We're starting this play with a stop at $42.01. Use caution. Stop Adjustments ---------------- Smith Intl - SII - close: 76.06 change: +1.87 stop: 71.29 *new* An eight-month high in the price of oil propelled SII to levels not seen since June 2001. The technical picture looks strong, but in order to minimize our downside risk we're going to tighten our stop to break-even, at $71.29. If SII continues higher we'll be looking for an exit near the $80 level. ================================================================== High Risk / High Reward (HR) section ================================================================== =============== HR Closed Plays =============== -------------------- Closed Bullish Plays -------------------- VeriSign Inc. - VRSN - close: 10.01 change: +0.01 stop: 9.96 VRSN finished today's session with a one-cent gain, but that only tells part of the story. Shares started off the day in strong fashion and quickly moved above our trigger price at $10.51 on its way to a high of $10.63. Unfortunately, the stock quickly dropped below both the $10 level and our relatively tight stop at $9.96. This closed out our newly-minted short play for a loss of $0.55. Although VRSN whipsawed its way to our drop list, the technical picture remains much the same, and there is ample upside room for the stock to move if the NASDAQ rebounds this week. The catalyst for such a rally could come in the form of strong numbers from AMAT (which reports earnings after the bell tomorrow) or IBM's mid-week conference with analysts. Traders who still like VRSN as a long play could wait for shares to move over today's high of $10.63. However, traders will need to keep an eye on the newswires. It's possible that today's drop was sparked by news that VRSN was hit with another lawsuit, this time by a rival, over a controversial marketing campaign they claim as false ads with expiration notices. VRSN is not alone in this type of strategy. Several of the larger domain name registrars have been known for the sneaky marketing approach but this is the first we've heard regarding litigation over the practice. Picked on May 13th at $10.51 Gain since picked: -0.55 Earnings Date 04/25/02 (confirmed) ================================================================== LONG-TERM PLAYS (LT) section ================================================================== =============== LT Closed Plays =============== -------------------- Closed Bullish Plays -------------------- Hanover Compressor - HC - cls: 15.77 chg: -0.76 stop: 15.99 Hanover Compressor, a leading supplier of outsourced natural gas compression services, sold off sharply at the open this morning, after reporting earnings of $0.18, compared to consensus estimates of $0.24. The earnings short fall caused an opening plunge in the price of HC, triggering our sell stop. The opening trade was $15.00, which is the value we have used to compute the loss on this trade. HC traded as low as $14.00 before rebounding later in the day and finished trading at 15.77. Today's strength in the Dow, as well as a 2% advance in the Oil Services Index (OSX.X), represent probable reasons for renewed strength in the stock later in the day. Picked on April 3rd at $18.80 Gain since picked: -3.80 Earnings Date 05/13/02 (confirmed) ================================================================== Split Trader (ST) section ================================================================== Split Announcements ------------------- Cascade Bancorp offers 3-for-2 stock split Roughly 90 minutes before the closing bell today, Cascade Bancorp (NASDAQ: CACB) announced that its Board of Directors had declared a 3-for-2 stock split. The split will be issued on May 31, 2002 to stockholders of record on May 24, 2002. CACB most recently split in June 2001, a 6-for-5 offering. The stock has risen 22% YTD, and trades on light average volume of 12K shares/day. CACB closed at $19.46 on Friday. For a current quote, click here: http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=CACB About the company Cascade Bancorp is an Oregon state chartered Financial Holding Company, with Bank of the Cascades as its principal subsidiary. Founded in 1976, Bank of the Cascades offers full service community banking including trust and investment services. (source: company press release) --- ITT Educational makes the grade with 2-for-1 split Prior to this morning's opening bell, ITT Educational Services, Inc. (NYSE: ESI) announced that its Board of Directors had approved 2-for-1 stock split. The split will take the form of a 100% stock dividend and will be payable on June 5, 2002 to shareholders of record on May 28, 2002. ESI most recently split in 1996. Today's announcement comes after a dramatic run-up in the stock's price; shares have nearly quintupled since early 2000. ESI closed at $48.95 on Friday. For a current quote, click here: http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=ESI About the company ESI is a leading private college system offering career-focused programs in fields of technology to approximately 31,000 students. ESI operates 70 ITT Technical Institutes in 28 states. Students at the ITT Technical Institutes primarily enroll in associate's and bachelor's degree programs of study. (source: company press release) ================== 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 OXY Occidental Petro Corp 29.62 +0.57 FPL FPL Group Inc 62.88 +0.60 AHC Amerada Hess Corp 80.79 +2.36 TSN Tyson Foods Inc 14.73 +0.54 MUR Murphy Oil Corp 95.51 +1.15 CP Canadian Pacific Ltd 23.25 +0.51 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- Ticker Company Name Close Change NTAP Network Appliance Inc 17.33 +1.90 NUS Nu Skin Enterprises 14.48 +1.48 VERS Versicor Inc 13.50 +1.28 CLHB Clean Harbors Inc 13.94 +1.55 MDCI Medical Action Industries 14.40 +2.18 TENT Total Entertainment 13.80 +1.01 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- Ticker Company Name Close Change WTW Weight Watchers Intl Inc 39.35 +2.48 MAN Manpower Inc 41.23 +2.37 IFIN Investors Financial Svcs 77.99 +1.56 LE Land's End Inc 61.73 +10.71 CNF CNF Transportation 33.75 +2.45 IBC Interstate Bakeries Corp 28.45 +1.19 SHLM A.Schulman Inc 23.80 +1.27 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- Ticker Company Name Close Change XEL XCEL Energy Inc 22.17 -1.13 IDPH IDEC Pharmaceuticals 44.60 -1.39 CSC Computer Science Corp 39.25 -1.19 TDS Telephone & Data System 78.70 -1.30 CVC Cablevision Systems 20.25 -2.15 ACDO Accredo Health Inc 55.99 -1.12 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- Ticker Company Name Close Change EXC Exelon Corp 55.05 -0.91 ALE Allete Inc 30.01 -0.74 GAN Garan Inc 59.50 -4.00 ================================================================= 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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