PremierInvestor.net Newsletter Wednesday 10-29-2003 section 1 of 2 Copyright (c) 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: Bulls Catch Their Breath 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) ================================================================= MARKET WRAP (view in courier font for table alignment) ================================================================= 10-29-2003 High Low Volume Advance/Decline DJIA 9774.53 + 26.22 9787.27 9724.68 1.91 bln 1744/1085 NASDAQ 1936.56 + 4.30 1937.37 1923.56 1.95 bln 1868/1150 S&P 100 518.66 + 0.02 519.69 516.54 Totals 3612/2235 S&P 500 1048.11 + 1.32 1049.83 1043.35 RUS 2000 531.81 + 5.96 531.99 524.00 DJ TRANS 2901.55 + 18.28 2902.03 2877.64 VIX 16.43 - 0.39 17.02 16.34 VXO 17.15 - 0.69 18.09 17.07 VXN 24.72 - 0.28 25.37 24.61 Total Volume 4,207M Total UpVol 2,591M Total DnVol 1,539M 52wk Highs 894 52wk Lows 25 TRIN 1.44 PUT/CALL 0.58 ================================================================= =========== Market Wrap =========== Bulls Catch Their Breath by James Brown Momentum in the rally slowed on Wednesday as bulls were left to catch their breath after yesterday's FOMC-inspired sprint higher. The Dow spent most of the day churning sideways as investors battled their urge to sell the losers Johnson-and-Johnson (JNJ) and AT&T (T) versus buying the winners Boeing (BA), Eastman Kodak (EK) and Alcoa Inc (AA). Yet by day's end the major averages ended green making it three straight gains for the markets. The largest gains were seen gold stocks, defense, airlines and homebuilders. Suffering the brunt of Wednesday's selling pressure were biotechs and drugs. U.S. markets got a boost from a strong Japanese NIKKEI, which added 178 points or 1.69% to close at 10,739. The Hong Kong Hang Seng also posted a gain up 38 points to 12,130. European stocks were mixed but German equities turned in a strong performance with the DAX index up 1.87% to 3615. The Dow Jones Industrials added 26 to close at 9774. The NASDAQ Composite added just 4 points to close at 1936 and the S&P 500 squeaked out a 1.3-point gain to close at 1048, under heavy resistance at 1050. Market internals were positive. The NYSE reported 17 winning stocks for every 10 losers. The NASDAQ turned in 18 winners for every 11 losers. New highs sprung back to live with 761 new 52-week highs between the two exchanges. Volume was strong with more than 1.9 billion shares on each exchange. Chart of DJIA: Chart of NASDAQ: Powering the DFI defense index to a new 52-week high were strong earnings from Boeing (BA) and Northrop Gruman (NOC). The world's largest plane manufacturer was also the biggest gainer in the Dow Jones Industrials with a 6.8% gain after reporting strong Q3 earnings. BA turned in a profit of 32 cents a share, which beat estimates for 27 cents. The company also lifted their 2003 sales guidance from $49 billion to $50 billion. Its defense-sector buddy, NOC, the world's preeminent naval ship builder, add 3.26% to its own stock price and closed above resistance at $90, its 50-dma and its 200-dma. NOC reported Q3 earnings this morning of $1.21 a share, which beat consensus estimates by 21 cents. The company told analysts it expects double-digit profit growth next year. Suppressing the Dow's gains were components AT&T, Johnson & Johnson and Microsoft. AT&T's troubles produced a 4.4% decline in the stock after the Wall Street Journal reported that BellSouth (BLS) had backed out of merger talks with Ma Bell because the price tag was too high. Those close to the deal said BLS wasn't willing to pay $19 billion for AT&T, the No. 1 long- distance phone company. Meanwhile JNJ clogged up the advance after news hit that the FDA issued a statement on JNJ's Cypher stents. JNJ was the first to introduce stents to the lucrative U.S. market but now the FDA is saying it has received almost 300 reports of blood clotting in patients with more than 60 deaths linked to the devices. A Merrill Lynch analyst said the reaction to the FDA statement is overdone. Even the FDA stated that hundreds of thousands of patients have been successfully treated with the Cypher stent. The agency is ordering a new 2,000 patient study to evaluate the clotting issues. In a tangent to the JNJ story, shares of Boston Scientific (BSX), a rival in the stent market and soon to be approved for a drug-eluting stent that is supposed to reduce clotting occurrences, saw its shares rise 3.5% and closing near all-time highs. Shares of software titan Microsoft (MSFT) weighed on both the Dow and the NASDAQ, closing down 1.7%. Mr. Softee has agreed to settle several antitrust class-action lawsuits with multiple states for vouchers worth $200 million. This is certainly a step in the right direction but MSFT still has at least four other state lawsuit settlements that have not yet been approved by the courts. Casting another dark cloud on the software giant is a new probe by the European Union. The Financial Times is reporting that the EU commission has sent at least 20 hardware makers formal inquiries regarding their Microsoft licenses. One analyst at Deutsche Bank expects that odds are growing for the EU to issue a negative ruling. Another stock putting pressure on technology, specifically biotech stocks was Gilead Sciences (GILD). The company reported earnings after the close yesterday but missed consensus estimates. GILD said slower than expected sales of its HIV treatment Viread were to blame for the miss. Furthermore they warned that total Viread sales for the year would likely be 5% less than previously forecast. The stock gapped lower and closed down 12.5% just barely closing above its simple 200-dma. Tomorrow could be an interesting day for traders. Unlike today we have a full boat of economic reports. Weekly initial jobless claims should come in before the open and Wall Street is expecting close to 385,000 new claims. We'll also get the much- anticipated Q3 GDP report. Most of Wall Street's biggest institutions have come out with estimates in the 6.0%, 6.5% even 7.0% Q3 GDP growth. Thus if we do get strong GDP growth at 6% or better there may not be much of a reaction and we could potentially see a sell-the-news (take profits) sort of move. Economists will also be waiting for the Employment Cost Index, the Help Wanted Index and the FOMC minutes will be released. Let's not forget that we'll still be hearing from dozens of companies reporting their Q3 earnings. It certainly seems like most of the surprises lately have been to the downside. Speaking of downside, we've made much about the low levels in the VIX, VXN and specifically the VXO or old VIX. The VXO has slipped to another new multi-year low at 17.15 today. This is screaming "market top" but if you remember our previous comments on the volatility indices it is more art than science and any peak in the markets could be still be a couple of days to several days away. There is certainly nothing in the rule books that state the markets can't become even more overbought pushing the VIX to even lower lows. Yet it is worth nothing that market veterans are probably growing antsy and more reluctant to open new bullish plays. More importantly let me remind everyone that it can be dangerous to your financial health if you try and pick the top before the market does. Currently the trend is still up and it's safer to play the trend, just do so with a disciplined stop. That way when the markets turn, you'll be out and ready to start looking for bearish positions. ================= 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 MO Altria Group Inc 46.70 +0.53 NXTL Nextel Communications A 24.04 +0.72 GD General Dynamics 84.62 +1.43 DVN Devon Energy Corp 47.90 +0.91 APC Anadarko Petroleum Corp 42.34 +0.63 ASD American Standard Cos 94.33 +1.33 DHI D.R. Horton Group 40.33 +0.96 WHR Whirlpool Corp 70.68 +1.22 RDN Radian Group 52.37 +0.97 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- THC Tenet Healthcare Corp 13.86 +1.01 CCI Crown Castle Intl Corp 12.96 +1.11 AW Allied Waste Industries 11.83 +1.13 OPWVD Openwave Systems Inc 13.45 +1.11 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- BA Boeing Co 38.50 +2.46 HIT Hitachi Ltd 63.00 +2.60 BSX Boston Scientific Corp 67.85 +2.30 NOC Northgroup Grumman Corp 90.36 +2.86 PX Praxair Inc 68.70 +2.75 INFY Infosys Technologies (ADS) 82.62 +2.77 STX Seagate Tech Hldgs 24.80 +1.90 ACE ACE Ltd 35.85 +2.03 LEN Lennar Corp CI A 92.78 +4.09 N Inco Ltd 31.85 +1.78 CECO Career Education Corp 55.11 +2.95 PD Phelps Dodge Corp 60.10 +4.21 LM Legg Mason Inc 83.63 +1.56 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- JNJ Johnson & Johnson 49.48 -1.06 GILD Gilead Sciences Inc 52.00 -7.46 BHI Baker Hughes Inc 27.10 -1.04 AET Aetna Inc, New 58.79 -1.51 MYL Mylan Laboratories Inc 24.70 -1.04 WPI Watson Pharmaceuticals 38.50 -1.18 FLR Fluor Corp (new) 36.59 -3.29 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- AGL Angelica Corp 20.45 -0.45 ================================================================= 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 (c) 2003 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form
PremierInvestor.net Newsletter Wednesday 10-29-2003 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 ================================================================= Tech Stocks Bearish Play Updates: FDS Active Trader (Non-tech) New Bullish Plays: IR New Bearish Plays: T Bullish Play Updates: BDK, IGT Closed Bullish Plays: DISH Closed Bearish Plays: MGAM High Risk/Reward New Bullish Plays: GNTX New Bullish Plays: JCOM Bearish Play Updates: HLTH Stock Splits/Announcements: PX ================================================================== Net Bulls (NB) Tech Stock section ================================================================== ============ PLAY UPDATES ============ -------------------- Bearish Play Updates -------------------- Factset Research - FDS - close: 43.89 change: +0.14 stop: 45.26 No news is not always good news. In the absence of negative news, FDS rose this week to test the neckline of its H&S formation. While it's natural to retest broken support, we can't help noticing possible bullish divergence on the RSI. Price reached a lower low while RSI did not. We think it's likely that FDS may come back up to challenge the linked blue 21-dma and black 30-dma, forming a truncated second right shoulder. If so, a bounce and rollover under those averages would provide a possible new entry. We would rather see a new momentum entry on a fall below last week's low, but suspect that the bounce-and-rollover entry will be the first one offered. Do not take such an entry if volume expands on the rise into resistance, however. Annotated Chart for FDS: Picked on Oct 17 at 43.65 Change since picked: +0.24 Earnings Date: 09/16/03 (confirmed) Average Daily Volume: 393 thousand ================================================================== Stock Bottom / Active Trader (AT) section ================================================================== ========= NEW PLAYS ========= ----------------- New Bullish Plays ----------------- Ingersoll-Rand - IR - close: 60.68 change: +0.68 stop: 57.50 Company Description: Ingersoll-Rand Company Limited is a provider of climate control, industrial solutions, infrastructure development and security and safety products. In each of these markets, the Company offers a diverse product portfolio that includes industrial and commercial brands. Products are sold primarily under the Company's name and also under other names, including ABG, Blaw-Knox, Bobcat, Club Car, Datum, Dresser-Rand, Dor-o-Matic, Falcon, Glynn-Johnson, Hussmann, Johnstone, LCN, Legge, Monarch, Montabert, Normbau, Schlage, Steelcraft, Thermo King, Von Duprin and Zimmerman. Why we like it: There seems to be no end to the bullishness this market has to offer, and IR is just the latest stock to stage a powerful breakout to new multi-year highs. The stock first tested the $60 level in late August and tested it again about 2 weeks ago just ahead of the company's earnings report. The company beat estimates by 12 cents and raised guidance and that was enough to halt the initial bout of profit taking in its tracks. IR rebounded from just above $55, but the rebound didn't really gain traction until Monday's sharp upward gap above $58. The upward move halted right at $60 yesterday afternoon and the bulls managed to follow through with a solid breakout today, moving over $60 for the first time since September of 1999! The stock is currently on a PnF Buy signal, and yesterday's trade at $60 reinforced the bullishness with another buy signal. The bullish price target of $54 was achieved long ago and we have to go back more than 4 years to find some sort of historical resistance with which to gauge upside potential. The next significant resistance level is $65 and that will be our target for the play. A pullback into the $59 area can be used for new entries into the play, as can a continued rally above $60.75. We're initially placing our stop at $57, which is just below the bottom of Monday's gap, as well as the converging 10-dma ($57.96) and 20-dma ($57.81). Annotated Chart of IR: Picked on October 29th at $60.68 Change since picked +0.00 Earnings Date 1/21/04 (unconfirmed) Average Daily Volume = 1.23 mln ----------------- New Bearish Plays ----------------- AT&T - T - close: 19.07 change: -0.87 stop: 20.76 Company Description: AT&T (www.att.com) is among the premier voice and data communications companies in the world, serving businesses, consumers, and government. The company runs one of the most sophisticated communications networks in the United States, backed by the research and development capabilities of AT&T Labs. A leading supplier of data, Internet and managed services for the public and private sectors, AT&T offers outsourcing and consulting to large businesses and government. The company is a market leader in local, long distance and Internet services, as well as transaction-based services like prepaid cards, collect calling and directory assistance. With approximately $37 billion of revenue, AT&T has about 40 million residential customers and 4 million business customers, who depend on AT&T for high-quality communications. AT&T has garnered several awards for outstanding performance and customer service. (Source: Company Press Release) Why We Like It: While we wouldn't go so far as to call the formation on T's daily chart a H&S formation, it certainly sports a certain H&S-ish look. Undisputed is its fall beneath its 200-dma. T has been suffering under the brunt of the bad news. A bankruptcy court put AT&T's civil racketeering suit against MCI on hold, with that suit filed because of disputes over the way calls were routed. More importantly, however, reports circulated Wednesday that BellSouth and AT&T ended their merger talks. Investors did not like the news. Wednesday's 4.36 percent decline occurred on volume more than 50 percent higher than average daily volume. The decline turned RSI back down and produced a bearish kiss on the 21(3)3 stochastics, although those stochastics had only barely lifted above territory indicating oversold conditions. T did manage to bounce from support at $18.80, however, and we're using a move below Wednesday's $18.80 low as a trigger for this bearish play. Currently, T is on a P&F buy signal with an upside target of $49.00, but it was repeatedly turned back by the bearish resistance line and is only one $0.50 box away from producing a new sell signal. That signal will be produced on a trade below $18.50, so conservative traders may want to wait for that confirmation before entering the trade. The stop will be at $20.76, just above the 30-dma that has proved important in T's trading pattern. We expect to see first support near $17.00, but will be targeting $16.00. Annotated Chart for T: Picked on Oct 29 at 19.07 Change since picked: -0.00 Earnings Date: 10/21/03 (confirmed) Average Daily Volume: 7.0 million ============ PLAY UPDATES ============ -------------------- Bullish Play Updates -------------------- Black Decker CP - BDK - close: 47.88 change: +0.11 stop: 45.20 With housing stocks soaring Wednesday, fellow toolmakers BDK and SWK (Stanley Works) performed well, too. BDK gained 0.23 percent on stronger-than-average volume. It has climbed from $44.00 to Wednesday's closing price of $47.88 since bumping above the neckline of its inverse H&S on October 22. While we're happy to see this bullish play performing so well, we suspect it's time for BDK to pull back and consolidate some of its recent gains. BDK may not yet agree, however. MACD remains bullish. Stochastics and RSI are deep into territory indicating overbought conditions, but they have not yet turned down. The most conservative of traders might choose to take partial profits here with BDK moving toward our $49.50 target, perhaps even with a goal of buying again on a pullback and bounce from above $46.00. We would not advise new momentum entries at this point since BDK is within striking distance of our $49.50 target. Annotated Chart for BDK: Picked on Oct 03 at 46.16 Change since picked: +1.72 Earnings Date: 10/22/03 (confirmed) Average Daily Volume: 824 thousand ---- INTL Game Tech - IGT - close: 32.15 change: +0.22 stop: 29.74 After declining to establish support late last week, IGT extended its gains this week. Wednesday the stock gained 0.69 percent. MACD lines separated and turned up again, continuing to move higher as price does. Stochastics and RSI trend at levels indicating overbought conditions, but the sell signals they give on downturns cannot be trusted as long as IGT's trend remains strong. We raised our stop on Tuesday, and will keep the new stop for now, but conservative traders might want to follow the rising 21- dma, setting stops just below that average. Since volume is not expanding on the current rise and since earnings approach next week, we would not suggest new momentum entries. Those considering pullback and bounce entries could enter on a bounce from above $30.50, but those would-be entrants should be aware that we will be recommending that this play be closed on Monday. Such entries would be high risk since such little time remains. Annotated Chart for IGT: Picked on Oct 03 at 31.00 Change since picked: +1.15 Earnings Date: 11/4/03 (confirmed) Average Daily Volume: 2.7 million ============ CLOSED PLAYS ============ -------------------- Closed Bullish Plays -------------------- EchoStar - DISH - close: 38.98 change: -0.03 stop: 38.10 Wednesday DISH announced that it will release earnings November 11, but we'll be long gone from the play before then. Although DISH has begun to bounce after the recent decline, we suspect that bounce is now going to hit strong resistance new $39.50, where the 21-dma and 30-dma now cross. We recognize that the current pullback could be a bull flag that pulled back to support, but we've given this play enough time to work and we think there are better plays to pursue. Picked on Oct 03 at 39.95 Change since picked: -0.97 Earnings Date: 11/11/03 (confirmed) Average Daily Volume: 2.2 million -------------------- Closed Bearish Plays -------------------- Multimedia Games - MGAM - close: 38.15 change: +1.33 stop: 38.00 So close, yet so far away. MGAM really looked like it was headed for a major breakdown, but the $34 support level ended up being much stronger than anticipated. Rather than give way and allow the downward move to pick up steam, it provided the bounce point and that bounce is really picking up some steam. Wednesday's 3.6% gain pushed the stock back over the 20-dma ($37.72) and right through our $38 stop. If there was any doubt as to the strength of this rebound, today's strong volume (30% over the ADV) should have put them to rest. Unfortunately, MGAM never really worked very far in our favor, but we don't have any hesitation about closing it tonight as a busted play. Better to cut those losses short than suffer a larger loss. Picked on October 22nd at $35.34 Change since picked +2.81 Earnings Date 11/10/03 (unconfirmed) Average Daily Volume = 492 K ================================================================== HIGH RISK/HIGH REWARD (HR) section ================================================================== ========= NEW PLAYS ========= ----------------- New Bullish Plays ----------------- Gentex Corp - GNTX - close: 39.69 change: +0.43 stop: 37.49 Company Description: Gentex Corporation (Nasdaq:GNTX) is an international company that provides high-quality products to the worldwide automotive industry and North American fire protection market. The Company develops, manufactures and markets interior and exterior automatic-dimming automotive rearview mirrors that utilize proprietary electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. More than 95 percent of the Company's revenue is derived from the sale of those products to the world automotive industry. Gentex was the first company in the world to successfully develop and produce a commercial automatic-dimming rearview mirror. After more than 15 years of supplying these products in the highly competitive global automotive industry, the Company remains the leading supplier of these mirrors. Gentex OEM customers include Acura, Audi, Bentley, BMW, DaimlerChrysler, Fiat, Ford, General Motors, Honda, Hyundai, Infiniti, Isuzu, Kia Motors, Lexus, Mazda, Mitsubishi, Nissan, Opel, Renault Samsung, Rover, Rolls Royce, SsangYong Motors, Toyota, Volkswagen and Volvo Car Corporation. Founded in 1974, Gentex has its manufacturing facilities in Zeeland, Michigan, and automotive sales and engineering offices in Detroit, Michigan; Germany, Japan, the United Kingdom, France and Korea. The Company is recognized for its quality products; for its proprietary manufacturing skills and equipment and application of world class manufacturing principles; for its commitment to developing and maintaining a highly skilled workforce, and for encouraging employee ownership of the Company's stock. (Source: Company Press Release.) Why We Like It: On October 15, GNTX reported earnings that reflected strong sales of its rear-view mirrors, meant to dim automatically to reduce glare from headlights. The company expects to increase shipments of these mirrors by 15-20 percent in the fourth quarter. GNTX climbed after that earnings announcement, but soon met resistance and turned down again. After pulling back to establish support at a tangle of moving averages, GNTX began moving up again last week. Wednesday, that move produced an ascending triple top breakout signal, with the stock having an upside price target of $48.00. Now it faces the same resistance that turned it away after its earnings announcement. That resistance forms the neckline of an inverse H&S formation, sometimes seen as continuation rather than bottoming formations. Because there's often a tendency for H&S formations to form a second right shoulder, we're setting a trigger of $40.25 to ensure that GNTX has cleared both the round-number resistance at $40.00 and that neckline. Because it's possible to slant that neckline by several degrees, confirm that volume expands as GNTX moves across the neckline. Our target will be $45.00. Annotated Chart for GNTX: Picked on Oct 29 at 39.69 Change since picked: +0.00 Earnings Date: 10/15/03 (confirmed) Average Daily Volume: 520 thousand ----------------- New Bearish Plays ----------------- j2 Global Comms - JCOM - close: 30.00 change: +0.65 stop: 33.00 Company Description: j2 Global Communications, Inc. provides outsourced, value-added messaging and communications services to individuals and businesses worldwide. The company offers faxing and voicemail solutions, document management solutions, Web-initiated conference calling and unified messaging services. JCOM markets its services principally under the brand names eFax, jConnect, JFAX, eFax Corporate, jBlast, eFax Broadcast, Hotsend and PaperMaster. The Company's core services, each of which operates in large and distinct markets, include fax, voicemail, document management, conference calling and unified messaging. Why we like it: After a tremendously strong run up into earnings, JCOM was already starting to see some profit taking before the company announced earnings last Tuesday. The headline number looked acceptable, coming in a couple pennies ahead of estimates. But then came the guidance. The company guided down for Q4 and FY04 and the selling started with a vengeance. Beginning with more than a $7 gap down, the stock plunged from $43 to below $30 in only 6 sessions. That kind of plunge demands some sort of an oversold rebound and if today's weak bounce was all the bulls could muster, then there's definitely some more downside to come. Today's rebound likely has to do with Pacific Growth's comments that the stock is oversold. With the stock now on a huge PnF Sell signal, we're looking for this bounce to be short-lived. Speaking of the PnF chart, the large column of O on the current Sell signal generates a bearish price target of only $12. That seems a bit aggressive, but if JCOM can break below $29, then $25 ought to be a slam dunk. Further deterioration down to the $22.50 area near the 200-dma looks possible too, but we'll need to see that first target reached first. Because of the possibility that today's rebound actually might find some follow- through, we're going to use a trigger of $29 on the play. Once JCOM breaks that level, aggressive traders can enter on the initial break, with more conservative entries coming on a failed rebound below $32 after the initial break. We're initially placing our stop at $33, just above last Thursday's intraday high. Annotated Chart of JCOM: Picked on October 29th at $30.00 Change since picked +0.00 Earnings Date 1/19/04 (unconfirmed) Average Daily Volume = 1.63 mln ============ PLAY UPDATES ============ -------------------- Bearish Play Updates -------------------- WebMD Corp - HLTH - close: 7.78 change: -0.09 stop: 9.51 While HLTH has remained below next resistance at $8.00 for a week, it hasn't declined as quickly as we imagined it might. The weekly chart does not show the current level to be either major or minor support, but a study of Fibonacci levels may pinpoint the problem. The 50 percent retracement of the September 2001 low to the July 2003 high lies near $7.80. A drop through that level should accelerate the losses. Some healthcare related stocks gained Wednesday, with the HMO, the Morgan Stanley Healthcare Index, rising, so the interest in healthcare-related stocks may have protected HLTH from further declines. The tight range has flattened the indicators so they do not hint whether HLTH will fall or climb to test resistance again. Rallies normally retrace 1/3 to 2/3 of their gains, with a 50 percent retracement considered an average retracement. Conservative traders worried about the potential for a bounce might elect to exit here, while more aggressive traders might hope for a bounce-and-rollover entry or a momentum entry on a fall below last week's low. Annotated Chart for HLTH: Picked on Oct 17 at $7.93 Change since picked: -0.15 Earnings Date: 11/06/03 (confirmed) Average Daily Volume: 4.9 million ================================================================== Stock Splits/Announccements ================================================================== PX gets environmental with a 2-for-1 stock split and 25% dividend increase Before today's opening bell, Praxair Inc.'s (NYSE:PX) announced its Q3 earnings report. In addition to their earnings the company announced that its Board of Directors declared a 2-for-1 stock split of its common shares and an increase to its cash dividend by 25 percent. The payable date for both the stock split and dividend is set for December 15th, 2003 to shareholders on record December 5th. The dividend will be paid on a pre-split basis. This is PX's first stock split since being listed in 1992. About the company: Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2002 sales of $5.1 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. (Source: Company Press Release) ================================================================= 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 (c) 2003 PremierInvestor.net. and The Premier Investor Network. Do not duplicate or redistribute in any form.
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