PremierInvestor.net Newsletter Wednesday 12-10-2003 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: Stocks Slip Slowly 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) ================================================================= 12-10-2003 High Low Volume Advance/Decline DJIA 9921.86 - 1.56 9958.38 9882.38 1.73 bln 1048/1813 NASDAQ 1904.65 - 3.67 1916.00 1887.46 1.92 bln 1034/2036 S&P 100 525.33 + 1.18 526.62 522.34 Totals 2082/3849 S&P 500 1059.59 - 1.13 1063.02 1053.41 RUS 2000 528.49 - 6.05 535.58 526.42 DJ TRANS 2912.67 - 8.25 2933.09 2893.87 VIX 17.87 + 0.24 18.27 17.58 VXO 17.33 + 0.25 19.71 17.13 VXN 27.84 - 0.48 28.66 27.79 Total Volume 4,114M Total UpVol 1,663M Total DnVol 2,413M 52wk Highs 307 52wk Lows 38 TRIN 1.09 PUT/CALL 0.81 ================================================================= =========== Market Wrap =========== Stocks Slip Slowly by James Brown Given the pace of Tuesday afternoon's decline plenty of traders thought today was going to be a tough one for the market. Yet by the close of business the major U.S. indices were relatively unchanged. There were plenty of stories to follow like AutoZone cratering and SBC slashing jobs but overall the session was characterized by widespread but mild profit taking. If you're feeling truly optimistic one could even call it a small victory for the bulls by the lack of heavy selling. Granted there were pockets of weakness. Gold stocks and homebuilders were hit hard but then these sectors had made some of the biggest gains this year and investors were taking some money off the table. Global markets were generally weaker lead by strong declines in the Japanese NIKKEI index. The constant weakness in the dollar continues to put pressure on Japanese exporters and despite intervention by the Bank of Japan to sell yen to weaken their own currency the NIKKEI dropped 213 points or 2.11% to close at 9910. It has been a tough few days for the Japan's markets. The NIKKEI has lost more than 500 points since last Thursday and investors are nervous about this Friday's Tankan survey for the Japanese economy. European markets are also suffering from some profit taking and the FTSE lost 44 points to close at 4335 while the DAX lost 25 points to close at 3820. Meanwhile the greenback actually strengthened somewhat against the yen and the euro. The U.S. dollar wasn't the only thing on traders' minds. There was a sharp surge in energy prices early in the session. Crude oil shot to $32.63 a barrel, a three-week high, before slipping back to $31.88. Natural gas spiked to $7.55 intraday before closing down 1.1 cents at $6.711/BTU. Investors also noticed some volatility in gold. February gold futures hit an intraday high near $413 an ounce but ended the day with a $1.90 loss at $407. This sent the XAU gold & silver index to a 4.44% decline. It was just a few weeks ago when gold was trading near $380 that there was renewed talk of seeing $420 an ounce before December 31st. That target doesn't seem so far away now but gold may retest the $400 level again before bouncing. Market internals were a lot more bearish than the final tally in the indices may suggest. Declining stocks overwhelmed advancing stocks 18 to 10 on the NYSE and 2 to 1 on the NASDAQ. Down volume flooded past up volume 2179 million to 1443 million between the two exchanges. The volatility indices (VXO, VIX, VXN) did inch higher showing some small amount of investor fear but they remain stuck in their downtrends. Technology stocks may have been spared a worse fate by strength in the SOX, today's best performing sector. Of course the SOX was down 10% in the last six sessions so today's move could just be an oversold bounce. Chart of the DJIA: Chart of the NASDAQ: There were plenty of company or stock-specific stories today but probably the biggest one was the selling in the homebuilders. The DJUSHB home construction index dropped more than 5% as investors took profits from one of the best performing sectors all year. This sector has more than doubled from its March 2003 lows and the threat of higher interest rates (per the Fed's new neutral stance) and a drop in the U.S. mortgage application index had traders running to sell these winners and lock in gains. This morning's report from the Mortgage Bankers Association showed that mortgage applications had dropped 12.2% to a new 52- week low. Part of this drop is due to a decline in refinancings, which do not affect the homebuilders but it was a perfect excuse to sell. While we're on the subject of declines shares of AutoZone (AZO) were hammered for a 12 percent loss ($11) for the biggest drop in the S&P 500. The company had reported earnings yesterday evening that beat estimates by 7 cents with net income of $1.35 per share. Unfortunately, revenues only rose 5.2% to $1.28 billion, which missed the average estimate of $1.3 billion. As would be expected the news produced a number of broker downgrades. On the positive side shares of SBC Communications added 2.67% to lead the Dow's gainers after announcing 3,000 to 4,000 job cuts in the fourth quarter. The 2.5 percent reduction in its workforce is an effort by SBC to offset the company's declining revenues. Rival Verizon (VZ) also rallied strongly after announcing a $3.7 billion buyout for nearly 10 percent of its workforce. Short-term the charge will affect earnings but analysts believe it will strengthen the company's balance sheet longer-term. Traders also bid up shares of Cisco Systems after its CEO John Chambers mentioned that they are seeing rising corporate budgets for the first time in years. While Chambers was optimistic for 2004 he didn't offer any specific numbers that might indicate tech spending would outpace the recent Gartner-Soundview survey, which forecasted a dismal 1.6% growth for 2004. Tomorrow is another busy session. Investors will be eager to hear the November retail sales report. Estimates are for a 0.7 percent increase leapfrogging the 0.3 percent decline in October. Wall Street will also absorb the November import and export numbers, the October business inventories and the weekly jobless claims. Expectations are for a drop in jobless claims to 359,000 down from 365,000. ================= 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 --------------------------------- SBC SBC Communications Inc 24.61 +0.64 CHA China Telecom 35.26 +1.31 WLP Wellpoint Health Network 93.50 +0.51 RCL Royal Caribbean Cruises 31.70 +0.59 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- PLAB Photronics Inc 18.30 +1.52 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- FRX Forest Laboratories Inc 57.60 +1.71 GWW W.W. Grainger Inc 48.95 +1.51 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- WM Washington Mutual Inc 38.57 -1.40 NEM Newmont Mining Corp 45.70 -2.07 GDW Golden West Financial 96.57 -2.56 AVP Avon Products Inc 61.61 -1.84 S Sears Roebuck & Co 46.00 -1.65 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- ABN ABN Amro Holdings 22.08 -0.33 KYO Kyocera Corp 60.70 -2.00 UB Unionbancal Corporation 56.98 -0.83 FCX Freeport McMoran C&G B 42.87 -2.85 MYL Mylan Laboratories Inc 24.90 -0.68 ================================================================= 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 12-10-2003 section 2 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 ================================================================= Tech Stocks Bullish Play Updates: NXTL Bearish Play Updates: SLAB, UTEK Active Trader (Non-tech) New Bearish Plays: DLTR Bullish Play Updates: FLIR, MRO Bearish Play Updates: TSG High Risk/Reward New Bearish Plays: NTES Bullish Play Updates: SIRI Bearish Play Updates: FCEL Closed Bullish Plays: RAD Stock Splits: Announcements: NRGY, THO ================================================================== Net Bulls (NB) Tech Stock section ================================================================== ============ PLAY UPDATES ============ -------------------- Bullish Play Updates -------------------- Nextel Comms - NXTL - close: 24.64 change: +0.08 stop: 24.00 NXTL started the month with a bang, breaking out to new highs above $26. Since then, it has been a pretty dreary path for the bulls, with the stock steadily drifting lower, coming back to confirm support at old resistance. Yesterday's sharp drop was really disconcerting and with the early drop this morning, it looked like our stop was in jeopardy. Fortunately, the bulls stepped in right at strong support near $24.25 and lifted the stock slightly into the close. Not only is that area support from the broken resistance from November, but it is also the site of the 20-dma ($24.46) and the 30-dma ($24.29), as well as the bottom of the short-term descending channel or bull flag. With our stop at $24, this certainly looks like a good point to be considering new aggressive entries. More conservative traders will want to wait for a break back above $25.25, which would constitute a breakout from the bull flag pattern. Picked on November 26th at $25.27 Change since picked -0.63 Earnings Date 1/15/04 (unconfirmed) Average Daily Volume = 16.5 mln -------------------- Bearish Play Updates -------------------- Silicon Labs. - SLAB - close: 43.82 change: +0.92 stop: 46.75 It has definitely been a rough time for the chip stocks in the past couple weeks, as these momentum favorites have been cast off wholesale. SLAB led the decline with its breakdown under the $45 level a week ago and since then it has been trying to build some firm support just above $42. Yesterday's sharp drop looked like it might precede the next breakdown, but with the SOX holding key support at $475, SLAB managed another bounce from just above $42. The stock has spent the past four sessions consolidating between the $42-45 levels and with the 10-dma ($45.51) exerting downward pressure, it looks like something will have to give soon. A rollover from below the 10-dma looks like the best setup for new entries. Aggressive traders can certainly enter on a breakdown under $42, but should look for the SOX to be breaking under $475 at the same time. Once under $42, SLAB ought to make a quick stab down to our $39-40 target area, where we'd recommend harvesting gains on the play. Note that we've lowered our stop to $46.75. SLAB should break down before threatening that stop, but in case it turns around, we've limited our risk in the play. Picked on December 3rd at $46.55 Change since picked -2.72 Earnings Date 1/19/04 (unconfirmed) Average Daily Volume = 1.25 mln --- Ultratech Stepper - UTEK - cls: 26.38 chng: -0.41 stp: 29.25*new* Tuesday was another day of carnage for Technology stocks and UTEK was no exception. Breaking down sharply in the morning, the stock hit our entry trigger in the first hour and then stabilized above $27 until after the FOMC meeting. That brought more selling and UTEK ended at the low of the day. More weakness was the result on Wednesday and even a bounce in the Semiconductor index (SOX.X) wasn't able to keep UTEK out of the red. The stock ended with another 1.5% loss on the day, closing right at the intraday low from August 26th. We're still looking for continued drop towards our $22 target and UTEK is at a favorable action point right now. A break below $26 can be used for momentum entries, while a bounce should set up favorable entries on a rollover from below the $28.00 area. Lower stops to $29.25, just above the intraday highs from yesterday and last Friday. Picked on December 7th at $28.20 Change since picked -1.82 Earnings Date 1/15/04 (unconfirmed) Average Daily Volume = 385 K ================================================================== Stock Bottom / Active Trader (AT) section ================================================================== ========= NEW PLAYS ========= ----------------- New Bearish Plays ----------------- Dollar Tree - DLTR - close: 29.52 change: -0.25 stop: 31.51 Company Description: Dollar Tree Stores, Inc., the nation's largest $1.00 discount variety store chain, operates 2,468 stores in 47 states as of August 2, 2003. The Company also operates a coast-to-coast logistics network of eight distribution centers, with two more presently under construction. (Source: Company Press Release.) Why We Like It: With a P&F preliminary downside target of $22.00, we think this play has a good chance of hitting our $25.75 target. Late last week, amid weakness in the RLX, the S&P retail index, DLTR finally slipped beneath its 200-dma and a descending trendline that has proved pivotal since late August. This weakness occurs despite the best efforts of a host of analysts. When DLTR slipped lower after its November earnings announcement, Wedbush Morgan reiterated its buy rating, saying that the company was seeing increased customer traffic and that the stock had sold off unnecessarily after the company's earnings announcement. Wachovia reiterated an outperform rating, noting that the firm saw improvement in operating margins. Merrill Lynch commented on the company's earnings report, in particular mentioning the company's statement that holiday sales might be strong but late. The current pattern looks like a measured distribution pattern of the type that often precedes a fall. A glance at DLTR's chart shows that it tends to slip lower, consolidate a few days, pop up a day or so, and then slip lower again. We think it's about time for it to slip lower again, although we can't rule out that brief upward pop occurring first. If that pop should occur, it should be stopped at the confluence of the 10- and 200-dma's. New entries could be made at the current level or upon rollovers from below the 200-dma if DLTR should bounce. We're targeting $25.75, but play participants should expect volatility since DLTR soon moves into a congestion zone on the weekly chart. Weekly oscillators remain bearish, supporting the weakness we see in the daily chart, but that congestion zone could provide many opportunities for bounce attempts. Annotated Chart for DLTR: Picked on Dec 10 at 29.54 Change since picked: -0.00 Earnings Date: 11/25/03 (confirmed) Average Daily Volume: 2.0 million ============ PLAY UPDATES ============ -------------------- Bullish Play Updates -------------------- FLIR Systems - FLIR - close: 34.35 change: -0.59 stop: 33.90*new* FLIR has definitely not been an exciting ride, gradually creeping higher over the past few weeks and hitting a fresh high just over $36 yesterday. Unfortunately, it was what came after that new high that has been more exciting. FLIR put in a pretty strong intraday reversal (along with much of the rest of the market) to end in the red and then continued to slide today, losing 1.68% in the process of posting its worst close in 2 weeks. Closing below the 10-dma ($34.67) for the first time in a month is another disturbing sign, but we're going to give the play another chance to bounce. Note that the 20-dma has now risen to $33.92, which is just above where we initiated coverage on the play. This moving average hasn't been violated since this bullish run commenced in late October, so we're going to recommend raising stops to $33.90 tonight. With daily oscillators all turning bearish in the past couple days, caution is warranted and we need to see bullish conviction at the $34 level in order to stick with the play. Picked on November 23rd at $33.90 Change since picked +0.45 Earnings Date 1/21/03 (unconfirmed) Average Daily Volume = 383 K --- Marathon Oil Corp - MRO - close: 30.46 change: +0.16 stop: 28.75 Wednesday, MRO made a charge toward its October high. Although MRO didn't quite make it past that previous high, volume expanded as MRO moved up, confirming investor confidence in the upside. Stochastics and RSI remain in full bullish mode. Moving averages converge and turn up under the price. MACD also continues to slant up, although it shows a tendency to flatten beneath a descending trendline. In fact, MACD diverges from price, not reaching for a new high as price reaches for that new high. That's bearish divergence. We'll want to watch that, hoping to see MACD move up through that descending trendline. Until it does, and until MRO moves firmly above the October high, investors must consider the possibility that MRO could be forming a double top. We don't think that's happening. It's possible to discover both bearish and bullish divergence on the MACD, with MACD reaching new lows while MRO stayed at an equal low. That expansion of volume reassures us, as does MRO's close above October's closing high. MRO also closed above the October 2000 swing high, the October 2001 swing high, and the January 2002 swing high, all in the 30.30-30.35 range. Such a mighty feat may require a period of rest in the form of consolidation or a pullback, but that pullback will likely be supported at the rising linked 30- and 50-dma's. Dips to and bounces from the 10-dma might provide new entries, and aggressive momentum players could also consider momentum entries on a move above the 10/17 high of $30.55. Confirm that volume continues to expand before considering such a momentum entry. Annotated Chart for MRO: Picked on Dec 05 at 30.22 Change since picked: +0.24 Earnings Date: 01/27/04 (confirmed) Average Daily Volume: 1.2 million -------------------- Bearish Play Updates -------------------- Sabre Hldgs - TSG - close: 19.69 change: -0.11 stop: 21.60 Wednesday, TSG announced that China Eastern Airlines became the third Asian airline this year to select the company's solutions to manage flight schedules and improve profitability. TSG climbed early in the trading day, but then drifted lower. For a week, it's been printing a series of small-bodied candles just below $20.00. Stochastics and RSI both trend in territory indicating oversold conditions. During Wednesday's trading session, those indicators tried several times to hook up, and MACD also attempted a bullish kiss from below signal. By the end of the day, however, both RSI and stochastics had turned down again. While we haven't included the shorter-term 5(3)3 stochastics on our daily chart for simplicity's sake, those stochastics have been rising all during the time TSG has consolidated. That's usually a bearish signal, indicating that despite the upward momentum, price can't make any headway. However, we wouldn't be surprised to see a brief blip upward, to be turned back as TSG approaches the descending 30- and 50-dma's. Nor would a rollover from the current level surprise us. New entries could be taken at the current level, although new entrants should be aware of the possibility that TSG may be due for a bounce to test resistance. New momentum entries could also be taken on a drop below $19.50, but with the caveat that TSG will soon hit a gap zone from April, with that gap beginning at $18.78 and ending at $18.12. We expect a sizeable first bounce attempt to begin at that point, if not before. Annotated Chart for TSG: Picked on Dec 03 at 19.92 Change since picked: -0.23 Earnings Date: 10/23/03 (confirmed) Average Daily Volume: 727 thousand ================================================================== HIGH RISK/HIGH REWARD (HR) section ================================================================== ========= NEW PLAYS ========= ----------------- New Bearish Plays ----------------- Netease.com - NTES - close: 38.96 change: -0.85 stop: 43.01 Company Description: NetEase.com, Inc. is a leading China-based Internet technology company that pioneered the development of applications, services and other technologies for the Internet in China. Our online communities and personalized premium services have established a large and stable user base for the NetEase Web sites which are operated by our affiliate. As of September 30, 2003 we had approximately 144 million accumulated registered accounts, and our average daily page views for the month ended September 30, 2003 exceeded 329 million. (Source: Company Press Release.) Why We Like It: We placed this potential play in the high-risk category rather than the tech category because these Chinese Internet-related stocks sometimes defy gravity. Since March, NTES rose from a low of $10.11 to an October high of $72.00. Since then, NTES has retraced almost half those gains, finally closing beneath $40.00 this week. Although NTES had twice tested sub-$40.00 levels since August, this week saw the first time NTES closed beneath that level since July. This week's decline created a double- bottom breakdown P&F sell signal with a preliminary price objective of $31.00, with a lower target still possible. We're using that preliminary objective as our price target, getting out ahead of expected round-number support at $30.00. NTES could eventually see a much lower low. The type of pattern seen on the daily chart often forms about midway through a drop, hinting that NTES's decline could be only beginning. To ensure that you're seeing a break out of that pattern, set a trigger at a move below Wednesday's $38.24 low. A second reason for the high-risk status of this play concerns the stop, as NTES's big swings necessitate a wide stop. Our initial stop will be placed at $43.01, but more conservative of high-risk play participants (if that's not a contradiction) might consider pegging their stops to the 200-dma or the top horizontal red line or even to round-number resistance at $40.00, setting a stop $0.25 or $0.50 above one of those inflection points. A third reason for the high-risk status concerns likely support levels. The short red horizontal line on the daily chart below, just above $36.40, demarks the 50 percent retracement of NTES's 2003 rally, a point that could provide strong bounce potential. Again, the most conservative among play participants choosing high-risk plays might consider waiting for a momentum drop below that 50 percent retracement before entering the play. In addition, the 50-week moving average, another potential bounce point, crosses just above $34.00. This play represents a true high-risk/high-reward type play, as the potential for much downside exists but risks prove high, too. Why is NTES dropping? Most stocks do retrace 1/3 to 2/3 of a previous movement, so this drop could have been expected. In addition, late last week, news circulated that Tencent, China's most popular Internet messaging service, might be offered as an IPO. Tencent intends to challenge competitors SOHU, SINA, and NTES, and with 226 million registered users and 71 million active users of its "QQ" instant messaging service, it might be able to deflate some of the helium out of those high-flying stocks. Annotated Chart for NTES: Picked on Dec 10 at 38.96 Change since picked: -0.00 Earnings Date: 10/28/03 (confirmed) Average Daily Volume: 4.6 million ============ PLAY UPDATES ============ -------------------- Bullish Play Updates -------------------- Sirius Satellite Radio - SIRI - cls: 2.12 chng: -0.04 stop: 2.05 After breaking out above the top of its bull flag patten over a week ago, SIRI has done a whole lot of nothing. Bouncing between the $2.08 and $2.25 levels, the stock is showing no bias to either the upside or downside, as we await the next catalyst to move price action. To its credit, SIRI has held nicely above the $2.08 support level, but on the downside, it continues to be rejected at the 30-dma ($2.17). Aggressive traders can look to buy the dips near the bottom of the current range in the $2.08- 2.10 area, while those waiting for some sort of bullish confirmation will need to see a breakout over $2.25 before playing. Recall that next resistance is likely to appear near $2.40 on the way to our bullish target up at $2.65-2.70. Maintain stops at $2.05. Picked on November 30th at $2.08 Change since picked +0.04 Earnings Date 1/28/04 (unconfirmed) Average Daily Volume = 53.6 mln -------------------- Bearish Play Updates -------------------- FuelCell Energy - FCEL - close: 12.08 change: +0.05 stop: 13.25 Tuesday, FCEL confirmed that the company would broadcast its earnings conference call at 10:00 a.m. EST on Tuesday, December 16. While that's the only news that the company released this week, that news serves as a reminder to us of FCEL's upcoming earnings. FCEL dropped this week, building on last week's weakness, but Wednesday's candle confirmed the impression that FCEL might soon be due for a bounce. While we expect that bounce to fail, it's possible that FCEL might climb under nearby resistance and hold there until after the earnings announcement, relieving oversold pressure. We lowered the stop earlier in the week, ensuring a break-even exit, but play participants nervous about FCEL's reaction ahead of its earnings might elect to book profits now. Alternatively, some might wish to set stops lower than our new stop, perhaps exiting the play on a move above the 11/21 low of $12.72. Because of the possibility of a bounce in the making and because earnings loom just ahead, we would not suggest new entries at this time. Annotated Chart for FCEL: Picked on Nov 28 at 13.46 Change since picked: -1.38 Earnings Date: 12/16/03 (unconfirmed) Average Daily Volume: 753 thousand ============ CLOSED PLAYS ============ -------------------- Closed Bullish Plays -------------------- Rite Aid - RAD - close: 5.89 change: -0.13 stop: 5.75 For a week, RAD outperformed competitors WAG and CVS and the retail index RLX. Wednesday, WAG was the stock outperforming the others, holding up relatively well as RAD, CVS, and the RLX dove below support. That dive took RAD below our stop, so we're closing the play. The drop took place on higher-than-average daily volume, and, despite the late-day bounce, it tugged RSI and stochastics into a full bearish roll. MACD completed a bearish cross from above signal, with the histogram values dropping below zero. Tuesday, RAD released November same-store sales figures showing an increase of 6.2 percent, with prescription drugs and general merchandise accounting for the rise in sales. For the quarter, same-store sales increased 6.5 percent. Year-to-date same-store sales increased 5.5 percent. Fears about future same-store sales may have impacted this stock more than those reported same-store sales increases helped it, however. An article discussing WAG's decision to reject insurance plans that require mail-order prescription refills may hold the key to WAG's relative strength as measured against the other drugstore chains. WAG claims that trend would reduce its business. Because customers would receive their prescription refills via mail, they would not be required to enter the store, passing the more profitable front-of-the store items such as candy and general merchandise on the way back to the pharmacy. That may impact future sales of drugstores that agree to accept the terms of the new insurance plans. We could not confirm whether RAD has yet made a decision about accepting those plans. It's possible that RAD simply dove ahead of its earnings release next week, although CVS's weakness argues against that interpretation. Picked on Nov 05 at 5.95 Change since picked: -0.06 Earnings Date: 09/25/03 (confirmed) Average Daily Volume: 3.5 million ================================================================== Split Trader/Stock Splits section ================================================================== Announcements: -------------- NRGY announces 2-for-1 split on limited partnership units. Before today's opening bell, Inergy GP, LLC. (NASDAQ:NRGY) announced that its Board of Directors has approved a 2-for-1 stock split of its outstanding limited partnership units. The payable date for the stock split is set for January 12th, 2004 to shareholders on record as of January 2nd. This would be NRGY's first split since being listed on the NASDAQ in 2001. About the company: Inergy, L.P. -- headquartered in Kansas City, Missouri -- is among the fastest-growing Master Limited Partnerships in the country. The company's operations include the retail marketing, sale and distribution of propane to residential, commercial, industrial and agricultural customers. Today, Inergy serves nearly 240,000 retail customers from 133 customer service centers throughout the eastern half of the United States. The company also operates a growing supply logistics, transportation and wholesale marketing business that serves independent dealers and multi-state marketers in 35 states and Canada. (Source: Company Press Release) --- THO drives in a 2-for-1 split and a new quarterly cash dividend During today's trading session, Thor Industries Inc. (NYSE:THO) announced that its Board of Directors has approved a 2-for-1 stock split of its common shares outstanding. The company also declared a quarterly dividend of $0.03 per share. On top of that the recreational vehicle and bus maker's holders also authorized an increase in the authorized share count to 250 million from 40 million. The payable date for the stock split is set for January 26th, 2004 to shareholders on record as of January 5th. This would be THO's first split since their 2-for-1 stock split in 2002. The payable date for the quarterly dividend is set for January 2nd, 2004 to shareholders on record by December 19th, 2003. THO will keep the dividend at 3 cents a share post-split, effectively doubling their dividend payout. About the company: Thor is the largest manufacturer of recreation vehicles and the largest builder of mid-size buses. (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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