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Daily Newsletter, Monday, 05/20/2002

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PremierInvestor.net Newsletter                 Monday 05-20-2002
                                                  section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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In section one:

Market Wrap:      Don't Let Reality Confuse You
Watch List:       TYC, LOW, AMZN, ERTS, MVK, YHOO, MWD, and more!
Play of the Day:  Room To Move

******************************************************************
MARKET WRAP  (view in courier font for table alignment)
******************************************************************
       05-20-2002          High     Low     Volume Advance/Decline
DJIA    10229.50 -123.58 10348.93 10211.72   994 mln   1199/1963
NASDAQ   1701.59 - 39.80  1726.89  1696.11  1.42 bln   1203/2321
S&P 100   545.28 -  8.02   553.30   544.41   Totals    3402/4284
S&P 500  1091.88 - 14.71  1106.59  1090.61
RUS 2000  503.17 -  5.77   508.94   502.59
DJ TRANS 2761.37 - 36.99  2798.85  2745.85
VIX        21.13 +  0.85   21.95     20.96
VXN        42.84 -  0.10   43.95     42.48
TRIN        0.99
PUT/CALL    0.71
******************************************************************

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


DON'T LET REALITY CONFUSE YOU


Remaining Positive On The Bovine

As you may have noticed, a few times each week I'll be writing 
PI's Market Wrap, giving my distinguish and wise colleague, Jeff 
Bailey, an opportunity to do something with his life other than 
maintain a torrid techno love affair with his three computer 
monitors and real time stock charts. So fear not, Baileyians:  
Cap'n Jeffery will be back at the helm of the Market Wrap vessel 
tomorrow, peppering the investment sea with more of his unique, 
thoughtful insights on this capricious institution we call the 
stock market.

Now, down to business.  I like to begin each Market Wrap by 
summarizing my overall view of the market.  Here it is in a 
sentence: I have been cautiously bullish, and I remain so.  
Today's sharp dip in the Nasdaq Composite and, to a lesser 
extent, the Dow, is not a cause to begin building a financial 
disaster bunker.  It is merely the logical result of a market 
that became over-extended last week.  Do you remember last 
Thursday when I noted that the Market Volatility Index (VIX) was 
suggesting we'd be in for some short-term profit taking?  That's 
just what we received today.  Within a few days, I believe, we'll 
see the market moving upward again. Don't let reality confuse 
you!  

Today's Market:  

U.S. Vice President Dick Cheney said yesterday on "Meet the 
Press," that another terrorist attack on U.S. soil was all but 
assured.  The issue is not if, he said, but when.  Well, all the 
market needed was that kind of honest remark from a government 
executive and the reaction was predictable.  The Nasdaq began 
this morning's trading with an immediate drop of over 1%, and the 
rest of the market was quick to follow.  But it was the 10 a.m. 
EDT release of the Conference Board's Leading Economic Indicators 
(LEI) that gave the markets another shove downward. The LEI came 
in at a -0.4, the first decline in this indicator in 6 months. 
All you have to do is look at a 5-minute chart of the S&P 500, or 
Dow, and you'll quickly observe the effect of the lower-than-
expected LEI.  Investors quickly assumed that a drop in the LEI 
meant the US economic recovery was in jeopardy--again. Me?  I 
don't buy that perspective.  But others do, and it was only 
natural that market players elected to bag some of the hefty 
gains enjoyed during last week's market romp.

Before we give today's dip too much credence, it is important to 
remember that today's profit taking occurred on extremely light 
volume. In fact, CNBC was reporting that today's Nasdaq volume 
was the second lightest of the year.  Interpretation:  today was 
more about an absence of buyers rather than sellers run amuck.  
This simply supports my notion that today was normal after the 
sharp run-up of last week.

When the dust cleared this afternoon, the Dow had given back 124 
points, or -1.2%, to close down at 10,229.  The S&P 500 lost just 
a bit more proportionally (-1.32%); it finished off 14.7 points 
and closed at 1092.  The Nasdaq was the hardest hit.  This tech-
heavy index shrank 2.25% to close down 40, at 1702.

A few sectors were affected by poignant news items during the 
Monday trading session.  The Software Index (GSO) lost about 3% 
today after Oracle's CFO said he expected customer spending to 
remain soft for the remainder of 2002.  Not surprising, ORCL was 
hit hard as well, finishing at $9.11, off nearly 5%.  PeopleSoft 
added its own spin on the topic, saying they did not see a 
discernable pickup in demand either.  PSFT suffered along with 
ORCL, closing down -$1.85 at $21.84.

Gold prices, and gold stocks like ABX, NEM, GOLD, AU and others, 
broke out of a 1+ week sideway consolidation, with gold trading 
up over $5; the June gold futures contract finished the day at 
$316--a two year high--while the Gold & Silver Index (XAU) 
advanced 3% to 83.2.  It is not unusual for gold to advance when 
the US dollar is weak, particularly against the Japanese Yen.  
That's precisely the environment we had today; on the heels of VP 
Cheney's warnings, which probably didn't help the US dollar, gold 
seemed to be a commodity investors just couldn't ignore.

The housing and home-building sector received a nice lift from 
Lowes, the home-remodeling retailer, which spanked Wall Street's 
earnings estimates this morning for being too conservative.  LOW 
beat street estimates by a wide margin: $0.44 actual EPS vs. the 
$0.36 estimate.  One of Premier Investor's long trades in this 
sector, Mohawk Industries, lifted off a two-month base on huge 
volume, reaching a new high today ($70.60)

Getting Ready For Tomorrow, Tuesday, May 21st.

We have no economic reports tomorrow, so the primary focus for 
investors is likely to be earnings and intraday news items.  
We'll have several retailers releasing quarterly reports before 
and after the market, dominated by Target (TGT), Home Depot (HD), 
Saks (SKS), and Big Lots (BLI), which was upgraded today.  The 
only technology stock of note to be reporting earnings on Tuesday 
will be Sycamore Networks (SCMR) 

We'll continue to watch the Market Volatility Index (VIX) as a
tool for anticipating short-term gyrations in the stock market.  
This index closed today at 21.20.  Remember that values in the 
19-20 region of the VIX are usually associated with short-term 
market weakness, but ONLY once the VIX reverses (in this region) 
and begins moving higher.  

Here are the technical levels to watch over the next few days:

The Dow Jones Industrial Average (INDU): The Dow closed just 10 
points below its 50-dma, at 10,229. The big cap average may be 
able to use this as support on Tuesday.  If it cannot, the Dow 
has another support/retracement region between 10,120 - 10,145.  
If the Dow happens to trade down to this level on Tuesday, a 
rebound should be anticipated.  Resistance is at 10,290 and 
10,350.

S&P 500 (SPX): The SPX finished today at 1092.  It has 
support/retracement levels at 1085 and 1074, and either can serve 
as an intraday rebound point for the index.  Initial resistance 
is at 1105; if the SPX can move above this level in the next two 
days, it will have a good short of moving toward next resistance 
at 1120.  

Nasdaq Composite (COMPX): The COMPX has an important intraday 
support level at 1690, about 12 points below tonight's close of 
1702.  A rebound off 1690 is certainly possible; if this level is 
broken, however, expect a fairly brisk drop to 1645 to take 
place. COMPX 1645 is also a support level and a drop to this 
region should produce a subsequent rebound.

A Quick Word About The Semiconductor Index (SOX): It's no secret 
that the SOX can really move the market, particularly the Nasdaq 
Composite.  The SOX is sitting on a fence tonight.  It closed 
today at 535. If it begins trading above 550, the chances 
substantially increase that this index is preparing to make a 10% 
move to the 600+ region.  Conversely, a drop below 528 is likely 
to send the index down quickly to the 510 level.... and probably 
take the COMPX (see above) with it.

Looking at Key Market Sectors

Each night I try to offer active traders some of my thoughts 
about key sectors that are shaping the current short-term 
direction of the market.  Please remember that other sectors 
covered in previous market wraps include the SOX 
(semiconductors), CYX (cyclicals), BKX (banks), HMO (healthcare), 
OSX (oil services), TNX (10 year note yields), XBD (broker 
dealers), XAL (airlines).

Here's my thoughts on tonight's sector: the Gold and Silver 
Index (XAU).

Gold & Silver Index (XAU)

Today's big jump in gold futures--they rose over $5--offers a 
timely transition to tonight's discussion of the Gold and Silver 
Index (XAU).  Technically, the XAU has been in a fairly 
determined upward trend since mid November 2001.  Short term, the 
index just broke out of a small one-week consolidation today, and 
is now sitting at levels it has not seen since October 1999.  The 
XAU will usually follow the direction of gold futures and, as 
noted above, gold futures will usually rise in value as the US 
dollar declines.  The reason for this is fairly simply. Since 
gold is globally bought and sold in US dollars, a declining 
dollar makes the commodity more attractive in other currencies, 
particularly the Japanese Yen.  

My view of the XAU? It is in a longer-term process of moving 
higher - perhaps much higher.  However.....although the XAU is 
very strong right now, it is probably very near a point at which 
it is likely to enter into a fairly substantial consolidation, 
probably lasting several weeks.  This consolidation may come in 
the next week or two; or it may not occur until the index has 
enjoyed a "climax" spike, perhaps jettisoning to the 92 region 
from today's close of 83. The XAU is so extended now that it is 
very difficult to use technical analysis to forecast just where 
the XAU might be headed or when it might consolidate.  My own 
guess, and that is all it is, is that the XAU will simply repeat 
its performance of late Sept. 1999, when it spiked from the high 
70's to the low 90's over a two week period....then underwent a 
rough consolidation. 

Regardless of how the XAU finds its top, those who wish to own 
gold or gold stocks are now facing a fairly volatile ride until 
the sector has undergone a multi-week consolidation.

See you on Wednesday, gang.  

Siegfried Brian Barger, 
Editor   


==================================================================
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
---------------------------------


TYCO International Ltd. - TYC - close: 23.20 change: +1.55

WHAT TO WATCH: Tyco is off 61% for the year. Yikes!  But we like 
it as a high risk, short-term long position and here's why: TYC 
suffered a particularly precipitous decline beginning April 22nd, 
when the stock fell over several days from about $30 to $15.  
This decline left a large gap and fast move region which TYC 
began to fill today.  TYC was up strongly today on news that it 
plans to issue an IPO for its CIT subsidiary, generating over $7 
billion in new revenue for the company.  We are looking for the 
stock to continue higher over the next few days, at least to the 
modest resistance area of $25.  Although $25 may cause the stock 
to stall, any type of positive news--like that today--could 
easily send TYC higher into the fast move region which continues 
up to $29.60.  Taking a long position in TYC is not for those who 
are easily unnerved; it could be a very volatile, brisk ride. The 
best entry would be above today's high of $23.48; a tight stop, 
just below today's low of $22.37, would also be prudent.




--- 

Lowes Companies - LOW - close: 46.88 change: +2.04

WHAT TO WATCH: Lowes, the big home improvement retailer, stomped 
Wall Street estimates today when it reported earnings of $0.44 
EPS vs. the consensus of $0.36.  The stock took off on huge 
volume and today's move represented a major breakout from a 
consolidation, which has been in place since December 2001.  We 
like the breakout, the volume spike, and all of the weekly 
technicals on LOW: rising RSI, recent positive crossover in the 
Stochastic Oscillator, and improving MACD.  The stock is clearly 
over-extended after today's 5% gain. It should be noted, too, 
that LOW has some resistance in the $47.50-$48.00 area. The best 
way to play this stock, then, would be to wait for a pullback, 
perhaps to $45.50, before going long.  A protective sell stop 
just below the 50-dma, at about $43.50, would be prudent.




--- 

Amazon.com - AMZN - close: 19.39 change: +0.23

WHAT TO WATCH: Aggressive traders may want to consider shorting 
AMZN.  The stock has been in a powerful uptrend for over a month 
but now faces psychological resistance at the $20 level.  This 
also happens to be the top of its ascending regression channel.  
If the bears can successfully defend this resistance, we think 
profit taking could take the stock back to the channel's midline 
near $17.  Entries could be considered on another failed rally at 
$20 or a move under today's low of $18.77.  Of course, today's 
outperformance of the NASDAQ suggests that it may take a few 
sessions for AMZN to reverse course.




--- 

Electronic Arts - ERTS - close: 63.91 change: +0.20

WHAT TO WATCH: The videogame battle is heating up.  Last week SNE 
cut the price of its PlayStation 2 console to $199, just ahead of 
an identical X-Box price cut from MSFT.  Nintendo fired another 
salvo today by cutting its Game Cube system to $149.  This 
presents a positive scenario for ERTS, a game maker, which stands 
to benefit from the increased sales of consoles.  The stock chart 
reflects this fundamental strength.  Shares recently broke out of 
a multi-month consolidation and are approaching the all-time high 
at $66.92.  Aggressive traders can consider going long now, while 
more conservative types will want to wait for shares to trade 
above $67 (or at least $65).




---

Maverick Tube Corp. - MVK - close: 15.75 change: +0.89

WHAT TO WATCH: In early May, Maverick Tube began a sharp 
pullback, which brought the stock's price down to the key 61.8% 
Fibonacci retracement of its February-April advance.  During this 
consolidation, MVK left a sharp fast move region from $17.65 to 
$15.90 and we think the stock might "mirror" this fast drop with 
an equally fast advance in the next several trading sessions.  
Today, MVK was raised to a "strong buy" by Raymond James, and we 
think the stock may enjoy a "halo effect" in coming days because 
of this, facilitating the advance we expect from this stock.  
Long positions could be taken at about $16.10, once MVK has moved 
over its 50-dma and short term resistance at $16.00.  MVK runs 
into resistance once above $17.50, and profits should probably be 
taken as MVK nears this region.  A protective sell stop, at about 
$15.60, would be important once the long position is triggered at 
$16.10.




--- 

Yahoo Inc. - YHOO - close: 17.17 change: -0.83

WHAT TO WATCH: Shares of YHOO staged a powerful rally after 
moving off the $14 support level in late-April.  But just as 
Internet bulls started to feel like it was 1999 again, on Friday 
the stock ran headlong into bearish p-n-f resistance at $18.50.  
Today YHOO was met with heavy selling that took shares within one 
cent of the 50-dma at $16.88.  This offers a clearly-defined 
action point for short positions.  With daily stochastics (5,3,3) 
just beginning to drop from the oversold band, we think YHOO 
could be due for a test of the 200-dma at $15.43.  Bearish 
positions can be evaluated on a move below the 50-dma.




---
 
Morgan Stanley Dean Witter - MWD - close: 49.35 change: -1.14

WHAT TO WATCH: Morgan Stanley is part of the tattered brokerage 
sector.  There's lots of controversy about whether this sector is 
able to head higher, but we're betting that several stocks in the 
sector are going to move higher short term as they fill fast move 
regions/gaps left over from the April 23rd-April 25th thrashing 
this sector took.  MWD has a fast move region (with an 
accompanying gap) which runs from $50.60 to $53.27.  We think 
there is a good chance this region will be filled if the 
brokerage sector can get some support from the broader market.  
Sure, you're not going to become rich, but these kinds of 
patterns tend to play out quickly and, well, let's face it: time 
is money!  A good entry point for this long position would be 
above Friday's high of $50.68.  Once back into the fast move 
region, MWD may move quickly, and profits should be taken near 
the top of the fast move region ($53.27) or the near-by 50-dma, 
which stands at $52.74. 




=============
MORE TO WATCH
============= 

Golden State Bancorp - GSB - close: 34.84 change: +1.15

GSB has just broken out of a one-month consolidation, doing so on 
good strong volume the last couple of days.  The stock is 
extended on the short term, but I have this feeling it might not 
pull back too much, so finding a good entry on this long position 
may require a divining rod. Good luck!




---

Nippon Telephone - NTT - close: 22.11 change: +0.95

WHAT TO WATCH: As with many other Japanese ADR's, NTT has risen
nicely over the past week.  Shares are trading at multi-month 
highs and could be headed to the $24 level.  The MACD and p-n-f 
chart are looking bullish as well.  Aggressive traders can 
consider entries at current levels, while more cautious types may 
want to wait for a pullback to the $20 level.  It's hard to get 
information on it, but NTT is expected to have a 5:1 stock split.  
The only problem is they aren't very clear on whether the ADR 
shares (traded on the NYSE) or the Japanese shares will do the 
splitting.  The company's IR department has not returned any of
our requests for information.




---

Walt Disney Co. - DIS - close: 24.43 change: -0.42

DIS has been quietly consolidating in a narrow range over the 
past three months and is once again approaching resistance at 
$25.  Watch for a close over this level, which could open the 
door for a test of bearish p-n-f resistance at $27.


 

---

KLA-Tencor Corp. - KLAC - close: 60.06 change: -0.05

KLAC displayed impressive relative strength today versus fellow 
chip equipment makers AMAT and NVLS.  If the chip sector moves 
higher this week, short-term traders could look for a quick move 
to the 50-dma at $62.47.  If bulls can plow through this level, a 
retest of the near-term highs at $68 is not out of the question.




---

Newmont Mining - NEM - close: 30.14 change: +0.69

The price of gold keeps rising, and the XAU.X (Gold and Silver 
Index) is trading at multi-year highs.  NEM has been 
consolidating under $30.50 but looks ready for a breakout.  Given 
the bullish MACD, we think a move over this level could offer an 
attractive entry point for traders who are bullish on the sector.  
However, the price of gold could be ready for a pull back.  
Please read tonight's market wrap for more info on the subject.





===============
Play-of-the-day (BULLISH)
===============

Mohawk Industries - MHK - cls: 69.80 chg: +1.37 stop: 64.87 *new*

Company Description:
Mohawk is a leading supplier of flooring for both residential and 
commercial applications and a producer of woven and tufted 
broadloom carpet, rugs and ceramic tile. The Company designs, 
manufactures and markets premier carpet brand names and a broad 
line of home products including rugs, throws, pillows and 
bedspreads. (source: company press release)



- ORIGINAL WRITE UP: May 3rd, 2002 -

Why We Like It:
The continued rise in homebuilding-related issues has made it a 
bit difficult to find a long play in the sector. Sure, there are 
plenty of stocks with strong charts. The problem is finding one 
that doesn't look overbought. Fortunately, our scan of stocks in 
the group turned up MHK. The company is not a homebuilder per-se, 
but as a manufacturer of carpets, rugs and flooring, it stands to 
benefit from a strong sector. Business is brisk, as evidenced by 
the April 15th earnings announcement that featured an EPS of 77 
cents/share, versus the estimate of 67 cents. Sales were up 12% 
from the year-ago total. MHK is displaying technical strength as 
well. Shares have trended higher since the earnings announcement 
and are within striking distance of the all-time high at $68.10. 
The daily stochastics are rising higher with room to move, which 
indicates that the stock may break over this level. The DJUSHB 
home construction index is at the midline of its ascending 
channel. Traders looking to confirm bullish sector sentiment may 
want to wait for the index to continue higher before going long. 
We're starting this play with a stop at $62.98, below the 50-dma. 
This would be a 5% move from the current price. We do expect 
potential resistance at $70 but the top of the channel should be 
close to $75, which is our initial profit target. 

- Most Recent Update: May 17th, 2002 -

A delayed reaction to Thursday's strong building permits data 
sent homebuilding stocks higher today. The sector was previously 
weighed down by a decline in actual housing starts, but investors 
seemed to shrug off that piece of news today. Backed by its 
strongest volume in over a month, MHK rose 4.5% and closed over 
resistance at $68. The stock has performed strongly since 
bouncing from the 50-dma (currently 63.57) and looks poised to 
break to all-time highs. The sector appears to have plenty of 
upside potential, with the DJUSHB just beginning to rise from the 
bottom of its ascending channel. Traders who are willing to brave 
possible psychological resistance at $70 can evaluate entries if 
shares move above the all-time high of $68.45. We'll likely be 
raising our stop if/when MHK closes above this level.


- Play-of-the-Day Comments: May 20th, 2002 -

Owing perhaps to strong earnings from LOW, shares of MHK gained 
2% today and closed at an all-time high.  This move created a 
double-top breakout on the point-and-figure chart.  It was also 
encouraging to see shares move over psychological resistance at 
$70.  New bullish positions can be evaluated on either a close 
above this level, or an intraday move above today's high of 
$70.60.  Traders could also consider a bounce at the $68.50 to 
$68.00 mark if shares pull back.  With no overhead supply it's 
hard to say where the next level of resistance might be, but 
we're looking for shares to eventually reach the $75 level. Also 
note that we're tightening our stop-loss to $64.87.  This is 
below both psychological support at $65 and the Thursday low of 
$64.88.  Longer-term traders may want to keep their stops just 
under the 50-dma at $63.66.  

Picked on May 3rd at $66.30 
Gain since picked:    +3.50  
Earnings Date      04/15/02 (confirmed)
 





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This newsletter is a publication dedicated to the education
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The Premier Investor Network.
Do not duplicate or redistribute in any form.




PremierInvestor.net Newsletter                  Monday 05-20-2002
                                                   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/e20b_2.asp
=================================================================

In section two:

Active Trader
  Stop Adjustments:        MHK (bullish), TSG (bearish)

Split Trader
                           CMC:  2-for-1 split announcement
                           WTRS: 3-for-2 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)



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

===============
AT Play Updates
=============== 

Stop Adjustments
----------------

Mohawk Industries - MHK - cls: 69.80 chg: +1.37 stop: 64.87 *new*

Owing perhaps to strong numbers from LOW, shares of MHK gained 2% 
today and closed at an all-time high.  This move also created a 
double-top breakout on the point-and-figure chart.  Due to the 
strong rally over the past two sessions, we're going to tighten 
our stop-loss to $64.87.  This is below both psychological 
support at $65 and the Thursday low of $64.88.  Longer-term 
traders may want to keep their stops just under the 50-dma at 
$63.66.  




---

Sabre Holdings - TSG - cls: 37.95 chg: -0.97 stop: 40.01 *new*
 
TSG dropped for the third consecutive session today and finished 
at its lowest close since January.  This bodes well for the bears 
(as does the rising volume on the declines), but in order to 
minimize risk we're going to move our stop to $40.01, above both 
the 200-dma and upper bollinger band.


 


==================================================================
Split Trader (ST) section
==================================================================

Split Announcements
-------------------

Commercial Metals forges 2-for-1 split, increases dividend

After the market closed today, Commercial Metals Company (NYSE: 
CMC) announced that its Board of Directors had declared a 2-for-1 
stock split.

The split will be effected as a 100% stock dividend and will be 
payable on June 28, 2002 to stockholders of record on June 7, 
2002.  The Company also announced a quarterly cash dividend of 8 
cents/share.

CMC has not split since 1994, but has risen nearly 35% YTD.  The 
stock is currently trading at all-time highs.

Shares closed at $47.25 on Monday. For a current quote, click here:

http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=CMC

About the company
Commercial Metals Company and its subsidiaries manufacture, recycle and 
market steel and metal products and related materials and services 
through a network of over 120 locations including 4 steel minimills, 26 
steel fabrication plants, 5 steel joist plants, a castellated and 
cellular beam fabricating plant, 4 steel fence post manufacturing 
plants, 2 heat treating plants, a railcar rebuilding facility, 24 
concrete-related product warehouses, a railroad salvage company, a 
copper tube mill, 43 metal recycling facilities and 16 marketing and 
trading offices in the United States and in strategic overseas markets. 
(source: company press release) 

--- 

Waters Instruments sets 3-for-2 stock split

Shortly after the opening bell this morning, Waters Instruments, 
Inc. (NASDAQ: WTRS) announced that its Board of Directors had 
declared a 3-for-2 stock split.

This split will take the form of a 50% stock dividend and will be 
payable on June 14, 2002 to shareholders of record on May 31, 2002.

WTRS has not split since a 3-for-2 offering in 1986.  Year-to-
date, shares have added nearly 31%. 

The stock closed at $11.00 on Friday. For a current quote, click 
here:

http://user.financialcontent.com/pin1/quote.cgi?account=pin1&ticker=WTRS

About the company
Waters Instruments, Inc. is a customer-focused, market-driven 
provider of value-added technology solutions from three divisions 
- Zareba Systems, Waters Network Systems, and Waters Medical 
Systems. A Minnesota corporation since 1960, the company's corporate 
headquarters is located in Minneapolis, with 
manufacturing facilities in Rochester and Ellendale, Minn., and 
subsidiaries in Fall River, Mass. and Ontario, Canada. (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 

NTT     Nippon T & T ADS           22.11     +0.95
GSB     Golden State Bancorp       35.84     +1.15
MHK     Mohawk Industries Inc      69.80     +1.37
MYL     Mylan Labs                 30.20     +1.09
BRL     Barr Labs                  71.25     +2.29

--------------------------------------- 
Breakout to Upside (Stocks $5 to $20) 
--------------------------------------- 
Ticker  Company Name               Close     Change 

SGDE    Sportsman's Guide Inc       7.69     +0.89
CRMT    America's Car-mart Inc     16.51     +2.08
IMY     Grupo Imsa Sa De           15.00     +1.00
ANFI    American National Fincl    14.60     +0.85
MDG     Meridian Gold Inc          17.96     +1.46
RGLD    Royal Gold Inc             12.47     +1.49

--------------------------------------- 
Breakout to Upside (Stocks over $20) 
--------------------------------------- 
Ticker  Company Name               Close     Change 

ALO     Alpharma Inc               21.05     +1.10
YORW    York Water Corp            37.99     +1.49
LOW     Lowe's Companies Inc       46.80     +2.04
TEVA    Teva Pharmaceuticals       65.18     +2.58
GG      Goldcorp Inc               21.00     +2.00
RMCI    Right Mgmt Consultants     32.29     +1.06
ANSS    ANSYS Inc                  29.12     +1.67

------------------------------------------- 
Breakout to Downside (Stocks over $20) 
------------------------------------------- 
Ticker  Company Name               Close     Change 

DEO     Diageo Plc ADS             50.20     -1.20
WLP     Wellpoint Health Network   67.14     -4.16
SPC     Saint Paul Companies       42.80     -3.33
ITG     Investment Technology      42.30     -1.11
GAP     Great Atlantic & Pac Tea   22.00     -2.10

----------------------------------------- 
Recently Overbought With Bearish Signals (Stocks over $20)
------------------------------------------- 
Ticker  Company Name               Close     Change 

N       Inco Ltd                   21.03     -0.09
FTI     FMC Technologies           21.75     -1.10



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