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Daily Newsletter, Wednesday, 03/05/2003

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PremierInvestor.net Newsletter              Wednesday 03-05-2003
                                                  section 1 of 2
Copyright ) 2003, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section one:

Market Wrap:      Unclear Signals
Watch List:       CCMP, MLM, MYG, RKY, VZ, and more...
Play of the Day:  On the Defensive

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MARKET WRAP  (view in courier font for table alignment)
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03-05-2003                   High    Low     Volume Advance/Decl
DJIA     7775.60 +  70.73  7775.60 7661.32   1517 mln  915/576
NASDAQ   1314.40 +  6.63   1317.69 1302.05   1330 mln  578/735
S&P 100   420.30 +  4.94    420.31  413.98   totals   1493/1311
S&P 500   829.85 +  7.86    829.87  819.00
RUS 2000  356.54 +  0.03    357.06  354.64
DJ TRANS 2036.97 + 2.61    2040.49 2020.83
VIX        34.23 -   2.35    36.54   34.20
VIXN       44.34 -   0.63    46.05   44.34
Put/Call Ratio 0.74
******************************************************************

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

Unclear Signals
by Steven Price

With no clear signals today, traders were left wondering if we
had seen another short-term bottom, or if the lower lows signaled
further weakness.  After a sell-off of over 300 Dow points since
the last failed test of the 8000 level, it appeared this morning
as though the nightmare would continue. The Dow broke down below
the 7700 level that held it on Tuesday's close. However, just as
it appeared we were going to sink to new levels and possibly test
the relative intraday low of 7628, the bulls came back and swept
it back over 7700. Of course, that wasn't the end of the story,
as traders were left with a case of whiplash before we eventually
finished the day near our highs.

The main piece of economic data we got this morning came from the
ISM services data.  After the ISM manufacturing report came in
below expectations and showed a barely expanding sector, the
services index was a little more soothing.  It came in just above
estimates, at 53.9, versus the consensus 53.6, and indicated more
decisive expansion. Any reading over 50 indicates expansion,
while any reading below 50 indicates contraction. The ISM
manufacturing index had come in at 50.5, which send shivers
through the market, as it bordered on contraction.  The services
index was certainly better, but it also showed a trend toward
slowing down.  The previous reading had been 54.5.  A look at the
internals of the report also raised some red flags. Although this
is the 13th straight month of expansion, the backlog orders
number was much better than the new orders data.  Backlogs
increased 2%, but new orders decreased 3.2%. That data brought
out the bears, at least temporarily.

One of the other factors weighing on the market this morning was
weakness in the U.S. dollar. The greenback has been on a slide
lately, which has been a good indication of why the dollar
denominated stock market has been in a funk. As war expectations
continue to escalate, it appears more money is leaving the U.S.,
reflected by both the dollar index and the stock market.  On the
other hand we are seeing an influx of cash into U.S. treasuries.
However, given higher returns in Eurobonds, and the sinking
dollar, it is likely that the U.S. bond market is seeing a lower
level of investment than we might otherwise see.   The dollar got
no help this morning when Treasury Secretary John Snow said he
didn't see anything wrong with the sinking dollar. Snow said,
"The dollar is in the marketplace. Everything in the marketplace
goes up some and falls some. It's within normal ranges."  While
he tried backpedaling later, saying he supported a strong dollar,
the damage was done, letting investors know that the administration
was in no rush to take defensive measures.

With Hans Blix set to speak to reporters, we saw some short
covering, since many of Blix's speeches have resulted in short-
term rallies.  However, those rallies have turned out to be gifts
for the bears that shorted them as they ran out of steam. When
Blix finally gave his news conference, he discussed progress in
the weapons inspections in Iraq.  He said that the investigators
had conducted seven interviews with scientists, completely on the
U.N.'s terms, without the presence of monitors or tape recorders.
That was progress from earlier efforts which had both and were
eventually suspended.  He also implied the possibility that the
hotel rooms in which the interviews were conducted could have
been bugged and that the scientists could have been prepped for
their responses, but he still called it progress.  He also said
that Iraq's destruction of al-Samoud missiles was a proactive
step in disarmament. Another telling revelation was that he had
renewed his contract with the U.N. through the end of June.
While this would imply an extended period for inspections, beyond
the U.S. timetable for an invasion this month, he also said that
with the U.S. build-up, the inspectors had evacuation plans in
place in the case of a U.S. attack.

The U.S. appears to be preparing the public for its invasion.  A
news conference from Donald Rumsfeld and Gen. Tommy Franks
described possible strategy and weapons that would be used in a
U.S. invasion. Colin Powell then followed their presentations
with a speech of his own in which he said Saddam was once again
playing a game of distraction and confusion. Powell said the
point of 1441 was to show everything the country had, not show as
little as possible.  He said that Saddam's response to resolution
1441 was deceit and deception and that his "too little, too late
efforts" have been meant to divide the international community
and that those efforts must fail. Powell took shots at fellow
Security Council members, as well, saying they essentially had
short memories.  He also said he had new evidence that Iraq was
still moving weapons of mass destruction around the country to
avoid detection. It certainly seems as though Hans Blix will not
have the opportunity to fulfill his contract - I certainly hope
it came with an upfront signing bonus.

Following the conclusion of Colin Powell's speech, in which he
concluded that Iraq had not complied with resolution 1441, we
headed back into the red as traders were left with the impression
that we were likely to be going to war without a coalition. The
fact that a weak Beige Book report came out during the speech
didn't help either. Of course, like every other move today, it
eventually reversed itself.  By the end of the day, we finished
on a positive note, with the Dow putting on 70 points, but still
falling short of the recent support break at 7800.

The Beige Book report said that growth in economic activity for
the past two months remained subdued and that few districts
reported any notable changes.  Consumer spending remained weak
and business spending remained very soft, with little change in
capex or hiring plans.  It also said manufacturing activity
remained lackluster, although half the districts reported some
improvement. Rising energy and insurance costs were a concern and
the agricultural sector was negatively affected by poor weather.
The lone bright spot was refinancing activity, which continues to
drive growth in residential loans.  The problem looming on that
front, however, was highlighted earlier in the week when Alan
Greenspan implied that the housing market had peaked last year
and we shouldn't expect the same level of economic support this
time around. Business loans remained weak.

When we got our mid-morning reversal ahead of Blix' testimony, it
still came at a lower level than the last few bounces.  When a
300-point Dow sell-off results in a bounce 70 points, it is hard
to conclude that we have seen anything but an oversold bounce.
Remember we are coming off a drop of 1200 Dow points that saw a
400 point bounce that has now almost evaporated. In the big
picture it seems little has changed.

60 Minute Chart of the Dow


Daily Chart of the Dow


However, we do need to be aware that we are getting to the point
where our recent head and shoulders objectives have been
approached and nearly achieved.  While we did achieve the
objective from the summer-fall pattern when the Dow traded down
to 7197, the objective of the current pattern is right around
7500.  While this morning's low of 7664 is not a full
achievement, we are getting close, just as the bullish percents
are stretching themselves deep into oversold territory and
approaching the July and October lows.

The Dow bullish percent has reached 13%, which actually rests on
the ascending bullish support line at 12%.  The fact that we have
not reversed up yet still looks bearish, but we are definitely
into territory where risks are shifting less in favor of bearish
positions. When you combine that extension with the fact that we
have nearly achieved the H&S objective and the fact that we are
nearing the start date for a U.S. invasion, we need to be aware
that a bounce is possible and we should begin to protect short
positions with tighter stops.


Chart of the Dow Bullish Percent


Notice I have not recommended shifting to the long side. That is
because the downtrend is still in effect. I am simply raising our
bounce alert to "orange." With today's lower high and the fact
that each recent bounce has been a shorting opportunity, I am not
ready to declare a reversal based on today's action.  Let's face
it; my earlier point about the 400-point bounce nearly erasing
itself still looks awfully bearish.


Last week I highlighted a possible bearish triangle forming on
the point and figure chart in the Dow on its recent rebound to
7950.  The reversal down from that level has continued and
appears to be showing a bearish breakdown of that pattern. It
followed another bearish breakdown - a triple bottom sell signal,
and the trade down through 7700 simply extended that breakdown
and underscored the overall bearish picture.

Point and Figure Chart of the Dow


The techs are presenting a slightly different picture.  The
Nasdaq Composite continues to hold up relatively well. I say
relatively because it did drop decisively from its last test of
1350 and is now flirting with support at 1300.  That support has
so far been firm.  Today's low of 1302 indicates that the bulls
are continuing to defend that level and so far winning the
battle.  Bulls and bears alike can keep their eye on that
support, as a breakdown could lead to another test of recent lows
around 1260.

So far, we have little reason to be bullish.  However, some of
our analysts have raised the possibility of the formation of a
bullish head and shoulders formation, with the left shoulder at
the July lows, the head at the October lows, and the right
shoulder currently forming right about where we are trading now.
While I am not subscribing to this theory just yet, the oversold
bullish percents require us to at least look at that pattern. We
wouldn't reach a neckline until around 9000, but in order to
avoid being labeled a dyed in the wool bear, I thought I'd at
least share the observation with readers.  After all, being
"right" should not be a concern, only adjusting to the current
action and riding it to as large a profit as possible.

I'm still leaning short, but I am also making myself aware of the
shift in risks.  It is possible that as numerous factors all come
to a head (war, H&S target, extended bullish percents), the
confluence could lead to a change of direction. Certainly today's
sprint to closing highs tells us that the bulls are still lurking
and saw something promising in today's developments that left
them looking for more at the close. Keep your stops tight and
your eyes open to all possibilities.


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

Cabot Microelectronics - CCMP - close: 39.95 change: -0.89

WHAT TO WATCH: A positive session for the semiconductor index
(SOX.) was not reflected in shares of Cabot on Wednesday.  The
stock abandoned support at $40.00 and slipped to new multi-month
lows, ultimately finishing with a loss of 2.1%.  With the MACD
and daily stochastics (5,3,3) showing weakness and the point-and-
figure chart on a double-bottom sell signal, the technical
picture is not looking very bright.  Bulls should be very
concerned about the fact that CCMP has fallen into the fast-move
region created by the rapid October gains.  A full retracement of
that rally would take the stock to $32.50.  A more reasonable
downside target for short-term traders would probably be
psychological support at $35.00.  In terms of action points, we'd
be watching for a move under today's low ($39.27) to provide
downside confirmation.




---

Fortune Brands - FO - close: 41.57 change: -0.09

WHAT TO WATCH: FO is a conglomerate in the truest sense of the
word.  With subsidiaries making everything from furniture to
office supplies to Jim Beam whiskey, it's safe to say that
Fortune's performance is directly linked to the spending habits
of American consumers.  War is looming on the not-so-distant
horizon and investors seem to be increasingly worried that
consumer spending will take at least a temporary hit once the
bombs start falling on Baghdad.  Technically, we like FO as a
possible short play because the stock has recently taken out
support at $42.00.  This breakdown transpired after shares failed
repeatedly to rally above resistance at $44.00.  The weekly chart
shows no substantial levels of historical support until the 2002
lows near $37.00.  But with bullish p-n-f support at $39.00,
conservative bears will probably want to wait for another failed
rally near $44.00 before thinking about taking any short
positions.




---

Martin Marietta Materials - MLM - close: 26.90 change: -0.03

WHAT TO WATCH: For many investors, the name Martin Marietta is
synonymous with the aerospace industry.  MLM was spun off from
its parent company in 1996 (one year after Martin Marietta merged
with Lockheed), and specializes in the decidedly low-tech field
of gravel production.  Lately, demand for gravel (the primary
component in asphalt and concrete) hasn't been so hot.  State
budget problems have led to a downturn in road construction,
while the commercial real estate market is also lagging.  In
light of those problems, it's not too surprising to see that MLM
has been ticking steadily downward since it topped out near
$50.00 in May 2001.  Yesterday the stock fell through historical
support at $27.00.  This breakdown raised the possibility that
MLM could test the next level of psychological support at $25.00.
Longer-term traders could look for entries at current levels,
targeting an eventual breakdown below $25.00.  How far could MLM
fall?  At the current rate of descent, it looks like shares could
reach the $20.00 region by June.  Of course for this to happen
the bears would probably need some cooperation from the broader
market.




---

Maytag Corp. - MYG - close: 23.47 change: +0.19

WHAT TO WATCH: Too bad the Maytag repairman can't do anything
about the stock price.  MYG has suffered from an acute lack of
buyers ever since it topped out near $31.00 in January.  A steady
downtrend has taken shares to levels not seen since October, when
the stock rebounded sharply from the $19-$20 region.  Shares of
competitor Whirlpool (WHR) have also been trending lower.
Investors seem to be concerned that slowdown in new home
construction might lead to a reduction in demand for washing
machines, dryers, dishwashers, and the like.  MYG reached new
relative lows yesterday after Fed Chairman Greenspan made bearish
comments regarding the housing market.  With no clear levels of
underlying support until the October lows, the stock has ample
downside potential.  Watch for a move below $23.00 to provide a
shorting opportunity.




---

HealthTronics Surgical Srvcs. - HTRN - close: 9.89 change: +0.69

WHAT TO WATCH: Aggressive traders might want to keep an eye on
HTRN.  Shares powered ahead to a 7.5% gain today after the
company posted strong earnings, including a 41% increase in
fourth-quarter revenue.  The stock is now threatening to move
above resistance at $10.00.  A breakout above that level would
clear the way for a possible rally to the $12.00 region.  One
caveat: The bears might offer a defense of the 200-dma at $10.65
and/or descending p-n-f resistance at $11.50.  Also note that
HTRN trades on relatively light average daily volume of 43,000
shares.




---

Adolph Coors - RKY - close: 46.31 change: -0.69

WHAT TO WATCH: The four major beverage stocks - KO, PEP, BUD, and
RKY - were all pressured on Wednesday by an earnings warning from
Pepsi Bottling (PBG).  The company lowered its first-quarter EPS
expectations to the 12-14 cent range, saying that the recent bad
weather in the Northwestern U.S. had created distribution
problems.  The consensus estimate was 19 cents/share.  Some
skeptical analysts have pointed out that these reduced
expectations might reflect more serious fundamental problems in
the beverage industry - not to mention a generally challenging
retail environment.  Although Coors represents a different sub-
sector of the beverage industry, investors used today's news to
push the stock to new 52-week lows.  RKY has been trading with a
clear bearish bias ever since the company missed earnings in
early February.  With the weekly chart showing no historical
support until the $43.00 region, short-term traders might want to
target bearish entries on a failed rally at $47.00, near the top
of this morning's gap.




---

St. Jude Medical - STJ - close: 46.38 change: +0.70

WHAT TO WATCH: In the current market environment it's difficult
to find stocks that are able to break out to new highs and then
extend those gains - but that's exactly what STJ has done over
the past month.  Shareholders of STJ enjoyed a 1.5% gain on
Wednesday.  This move was technically significant because it
powered the stock above short-term resistance at $46.00.  Now
that St. Jude is trading at fresh all-time highs, the bulls will
be targeting a move to psychological resistance at $50.00.  We'd
be looking for a pullback to the short-term ascending trendline
near $45.50 to provide a potential action point.  More
conservative traders may want to wait for a test of the rising
21-dma at $43.62.




---

Verizon Communications - VZ - close: 34.63 change: +0.22

WHAT TO WATCH: Buyers have avoided VZ like the plague ever since
the FCC dealt a blow to the Baby Bells by deciding not to
deregulate a portion of the telecom market.  Factor in additional
concerns of a price war within the industry, and it's easy to see
why the stock's been drifting lower over the past two weeks.  The
stock extended its downtrend today after Verizon agreed last
night to pay a multi-million dollar fine for marketing long-
distance services in states where it had not been given FCC
permission.  Given the recent pattern of lower lows and lower
highs, it looks like it could only be a matter of time before
shares violate bullish point-and-figure support at $34.00.  A
trade at that level would also create a double-bottom sell
signal.  Should a breakdown occur, VZ would be in danger of
retracing the steep October bounce from the $28.00 region.





=========================
Play-of-the-Day (BEARISH tech play)
=========================

Infosys Technologies - INFY - cls: 58.90 chg: -1.34 stop: 63.01

Company Description:
Infosys, a world leader in consulting and information technology
services, partners with Global 2000 companies to provide business
consulting, systems integration, application development and
product engineering services. Through these services, Infosys
enables its clients to fully exploit technology for business
transformation. Clients leverage Infosys' Global Delivery Model
to higher quality, rapid time-to-market and cost-effective
solutions. (source: company press release)

- ORIGINAL WRITE UP: February 27th, 2003 -

Why We Like It:
In addition to the Taj Mahal, the Ganges River, and one of the
tastiest cuisines known to man, India is also home to a
burgeoning software industry.  While many parts of the country
are still faced with poverty, the rise of free-market capitalism
and removal of stifling bureaucratic regulations have made it
possible for many tech businesses to thrive.  Companies such as
Infosys are able to compete with their Western counterparts by
providing the same services and products while keeping labor and
operating costs to a minimum.  (The cheaper Indian workforce has
even prompted many U.S. companies to move their call centers to
the sub-continent.  The next person who calls you about changing
your long distance service just might be calling from New Delhi
or Bombay!)  INFY has also done a very good job of attracting
foreign customers - Over 60% of their revenue comes from the
United States.  However, this fact has proven to be a double-
edged sword in recent months.  To see what we're getting at, take
a look at a daily chart for INFY.  Now flip over to a daily chart
of the U.S. Dollar (DX00Y).  It's not a coincidence that both the
stock and currency have seen a large decline since the late-2002
highs.  The sinking dollar has inflated the value of the Indian
Rupee.  A strong Rupee makes INFY's products more expensive
overseas, thus reducing demand.  The resulting negative impact on
the bottom line has plunged the company's shares into a multi-
month downtrend.   Meanwhile, the dollar has stabilized near the
100 level but isn't yet showing any signs of a rebound.

Technically, what grabbed our attention was the way INFY broke
through $60.00 on Thursday.  This level provided support during a
pullback in late January and also acted as resistance in
September.  The daily chart shows no additional underlying
support until the October lows near $51.00.  We think this would
be a realistic downside target if Infosys breaks out of its large
bearish wedge.  In an attempt to confirm a breakdown, we're
placing an entry trigger for this play at $59.49, one penny under
today's low.  The stock has already seen some heavy selling after
it broke out of a bearish point-and-figure triangle earlier this
month.  If shares retrace some of these recent losses, we believe
the 200-dma at $62.50 will provide resistance.  Our stop (if the
play is activated) will be placed above that moving average at
$63.01.  A few additional notes about INFY: This stock is an ADR,
so it's not unusual to see gapping action and/or quick moves
early in the trading day.  Shares also trade on relatively light
volume, usually clocking in at 50,000-100,000 shares.

- Last Update: March 4th, 2003 -

News of a large explosion at an airport in the Philippines
rattled the Eastern markets on Tuesday, including the Indian BSE
30, which finished with a loss of nearly 1%.  This resulted in a
small downward gap for shares of the U.S. ADR this morning.  The
stock drifted lower throughout the session and gave back 1.5%.
On the daily chart, we see that the upward momentum from Friday's
rebound quickly faded at the 200-dma ($62.42).  That level
continued to act as resistance on Monday.  With INFY already
retracing most of Friday's gains, it looks like shares could soon
be trading at fresh multi-month lows.  We're maintaining our
action trigger for this paper trade at $59.49.   If the play is
activated we'll use a stop at $63.01, although a stop slightly
above the 200-dma would be perfectly acceptable from a technical
standpoint.

- Play-of-the-Day Comments: March 5th, 2003 -

This looks like a pretty severe breakdown in Infosys.  Yesterday
the stock was already showing signs of technical weakness after
it rolled over from the 200-dma at $62.38.  On Wednesday INFY
breached the $60.00 level within the first 90 minutes and quickly
reached our entry trigger at $59.49.  The stock bottomed out just
above $58.50 but faded the NASDAQ during the final hour of
trading; ultimately finishing with a loss of 2.2%.  Meanwhile,
the Composite eeked out a fractional gain.  In addition to this
relative weakness, bears will be pleased to see that the daily
stochastics (5,3,3) have reversed from the middle range.  With
today's breakdown coming on the strongest volume in nearly two
months and no immediate underlying support on the daily chart,
the bulls appear to be on the defensive.  New entries can be
targeted on a move below $58.50 or a failed rally near $60.00.
Our stop for this play is set at $63.01.  Traders looking for a
little less upside risk could use a stop slightly above the 200-
dma.

Picked on March 5th at $59.49
Results since picked:   +0.59
Earnings Date        04/11/03 (unconfirmed)







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DISCLAIMER
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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
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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter               Wednesday 03-05-2003
                                                   section 2 of 2
Copyright ) 2003, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section two:

Net Bulls
  Triggered Plays:      INFY (bearish)
  Closed Bullish Plays: CMVT

Split Trader / Stock Splits
  Split Announcements:
                        CTSH: 3-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 Plays
---------------

Infosys Technologies - INFY - cls: 58.90 chg: -1.34 stop: 63.01

On Wednesday INFY breached the $60.00 level within the first 90
minutes and quickly reached our entry trigger at $59.49.  The
stock bottomed out just above $58.50 but faded the NASDAQ during
the final hour of trading; ultimately finishing with a loss of
2.2%.  Meanwhile, the Composite eeked out a fractional gain.  In
addition to this relative weakness, bears will be pleased to see
that the daily stochastics (5,3,3) have reversed from the middle
range.  With today's breakdown coming on the strongest volume in
nearly two months and no immediate underlying support on the
daily chart, the bulls are clearly on the defensive.  New entries
can be targeted on a move below $58.50 or a failed rally near
$60.00.





===============
NB Closed Plays
===============

  --------------------
  Closed Bullish Plays
  --------------------

Comverse Technology - CMVT - cls: 9.74 chg: +0.12 stop: 9.39

After yesterday's sell-off in CMVT the bulls did not have much
margin for error.  With the NASDAQ not displaying any leadership
this morning, CMVT moved lower after the opening bell and quickly
violated short-term support in the $9.50 region.  The stock
proceeded to reach an intraday low of $9.39, which also happened
to be the location of our stop-loss.  Our long play was closed
for a 7.9% loss.  Traders who gave CMVT a few additional cents of
breathing room were rewarded with an intraday rally that pushed
the stock to the $9.90 area.  Shares settled down in afternoon
traded and finished in the green by 1.2%.  The technical picture
remains largely unchanged, and on the daily chart we see that
CMVT successfully tested its 21-dma.  Long positions could be
maintained, with a stop a few cents under today's low.  Bulls
will be watching for the stock to break above the 50-dma ($10.03)
and move towards the relative high at $10.36.  Remember, however,
that Comverse announces earnings on March 12th.

Picked on February 28th at $10.20
Gain since picked:          -0.81
Earnings Date            03/12/03 (confirmed)






=================================================================
Split Trader / Stock Splits (ST) section
=================================================================

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

Cognizant Surprises Investors With 3-for-1 Stock Split

Shortly after the closing bell today, Cognizant Technology
(NASDAQ: CTSH) announced that its Board of Directors had declared
a 3-for-1 stock split.

The additional shares are expected to be distributed on or about
April 1st to stockholders of record on March 19th.

It's been quite some time since we've seen a 3-for-1 stock split.
Usually companies figure that a 2-for-1 split (and the resulting
50% reduction in stock price) is enough to make the equity more
attractive to investors.  Obviously Cognizant is feeling pretty
optimistic about where the stock is headed.

Today's announcement follows a strong uptrend that has taken CTSH
sharply higher from its January lows near $55.00.  The stock
currently seems to be struggling with psychological resistance at
$70.00, five dollars below the next level of historical
resistance.

CTSH closed at $69.77 on Wednesday.  For a current quote, click here:

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

About the company
Cognizant Technology Solutions Corporation (Nasdaq: CTSH) is a
leading provider of custom information technology design,
development, integration and maintenance services. Focused on
delivering strategic information technology solutions that address
the complex business needs of its clients, Cognizant provides
applications management, development, systems integration and
business process outsourcing services through its onsite/offshore
outsourcing model. (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

HTRN    Healthtronics               9.89     +0.69
ODFL    Old Dominion Freight       28.65     +0.95

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

IMCL    Imclone Systems            15.27     +1.16
GNSS    Genesis Microchip          13.72     +1.08
SPLS    Staples Inc                17.65     +1.05

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

FLR     Fluor Corp                 29.35     +1.10
ERES    eResearch Technology       23.20     +1.50
DISH    Echostar Comm.             28.76     +1.11
BVF     Biovail Corp               38.41     +2.57
PDCO    Patterson Dental           45.22     +1.58

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

KRON    Kronos Inc                 37.19     -1.03
GD      General Dynamics           56.39     -1.61
CAI     CACI International         31.74     -1.16
NWL     Newell Rubbermaid          25.25     -1.21
GAS     Nicor Inc                  29.54     -2.08

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

GRMN    Garmin Ltd                 32.08     -0.82
VCBI    Virginia Commerce Banc.    32.04     -0.64




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