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 ****************************************************************** MARKET WRAP (view in courier font for table alignment) ****************************************************************** 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) ================================================================= 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 ) 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 ================================================================= 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 ) 2003 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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