PremierInvestor.net Newsletter Tuesday 12-23-2003 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: The Last Hurrah? Watch List: AIG, CMA, HRB, WCN and more! Market Sentiment: All Hail Santa's Arrival ================================================================= MARKET WRAP (view in courier font for table alignment) ================================================================= 12-23-2003 High Low Volume Adv/Dcl DJIA 10341.26 + 3.26 10375.93 10296.15 1.40 bln 1784/1028 NASDAQ 1974.78 + 18.98 1974.78 1952.44 1.30 bln 1996/1057 S&P 100 543.42 + 1.14 544.13 541.36 Totals 3780/2085 S&P 500 1096.02 + 3.08 1096.95 1091.73 W5000 10657.14 + 37.56 10658.72 10607.84 RUS 2000 555.03 + 5.66 555.03 548.37 DJ TRANS 3006.61 + 1.34 3006.87 2985.95 VXO 15.57 - 0.63 16.39 15.30 VIX 16.49 - 0.45 17.40 16.29 VXN 23.49 - 1.26 25.11 23.31 52wk Highs 491 52wk Lows 13 PUT/CALL 0.76 TRIN 1.02 ================================================================= =========== Market Wrap =========== The Last Hurrah? by Keene Little Bulls will hate me tonight, bears will love me. For those of you who don't follow me in the Futures Monitor, a little background might help you understand the reasons for my opinions. I follow Elliott Wave Theory. I will not bore you to tears with wave counts but you should know that I am neither a bull nor a bear. I can't afford to be either because every time I form a strong bullish or bearish opinion I usually lose money. It's that forest-for-the- trees problem. Instead I let price tell me what it's doing and use EW analysis to give me some clues as to what might be next. I will admit that I have a bearish view of the market for the long term but I try to follow the wave pattern to tell me each day whether I should be going long or short. My analysis below is based on what these patterns are telling me. I use trend lines, fibonacci levels, oscillators and a slew of other technical indicators to help me identify turning points in the market. I think a major turning point is upon us. But first let's look at what happened today. After cycling up and down during the night between 1093.75 early last night and 1090.50 early this morning, the S&P e-mini futures ran up slightly into the 8:30 reports but then worked their way lower to the open--the e-mini futures made an immediate low of 1090.25 at the 9:30 open. After the initial pop in the morning, we worked our way lower and by the late afternoon we came back to that number, literally, before bouncing again into the close. All in all, it was an uneventful day, at least from a price perspective. The early morning economic reports did little to excite today's market. Overall, they were good numbers but just not exciting numbers. The University of Michigan Sentiment was revised to 92.6 from the previously reported 89.6 (consensus was 91.0). GDP final for Q3 was 8.2%, no change from previously reported. Monthly Mass Layoffs was 1438 compared to 1532 in November. Personal income for November was +0.6% while personal spending was +0.4%. The expectation for spending growth had been +0.7% so this number was a little disappointing. Even though this spending growth was the fastest spending growth since August, the fact that their income was up +0.6% means the consumer could have spent more! Where are those consumers when you need them most? Don't they realize they need to go into greater debt during this holiday period to support this economy? The slower retail sales reported yesterday tell us the consumer is not willing to do this. So there was no excitement with all these numbers. In fact the pre-market futures dropped slightly after all these announcements. At the opening kick-off, there was a fair amount of volatility and the market ran higher in the first hour of trading. From there the market back-pedaled the rest of the day. It was a slow grind south as some of yesterday's gains were returned. But as seems to be happening a lot lately, the mid-afternoon rally kicked into gear and we saw a fairly steep rally as we headed into the close. The only indexes to make new highs for the day were the techies and the small caps. It looked like some good short-covering going on there. Check out the run in the Russell 2000 in the last hour of trading. Too many eager shorts I'd say. I guess everyone got excited about RIMM's 3rd-quarter earnings announcement that was double the analysts' expectations. They also doubled the outlook for the 4th quarter. Micron Technology added to the excitement by increasing their earnings expectation by 3%. So if those two companies are doing well it must mean all tech stocks are doing well, so BUY was the word! As sectors go, the Computer Hardware, Multimedia, Telecom, Semiconductor, Biotech, etc. indexes ran up roughly 1.0% to 3.3% today. Looks like what people did not want for the past two weeks, they wanted it back today. The gold indexes also bounced strong today, but got back only a little of what they've given up since the beginning of December. At the other end of the market were the Oil Service, Energy, Oil and Natural Gas indexes which took the biggest drubbing today, down 1.9%, 1.0%, 0.7% and 0.5%, respectively. I've seen evidence that oil prices may well have peaked at last week's price of about $33.50/barrel. Projections are for oil prices to sink back down to $20 some time next year (it closed at $31.75 today). Now that would be a nice Christmas present for next winter for all of us paying high prices at the pump and for our heat. For the DOW, it had a middle-of-the-road day today. It showed greater weakness relative to the NAZ which was a different behavior from what we've seen most of this month. Of the 30 components, 17 gained ground today, so only about half the companies were pulling their share of the load today. But nearly half of those 17 hit new 52-week highs today, as did the S&P 500, which hit 1096.95 today, a high not seen since May 2002. As I'll discuss below, this 1096 level is very important and may be a rally high, or very near to it. The DOW components hitting their 52-week highs were Alcoa, Boeing, Caterpillar, DuPont, Exxon Mobil (interesting as their sector was hit hardest), Honeywell and Procter & Gamble. Market internals were actually stronger than the closing numbers would indicate. Advancing/declining issues and advancing/declining volume were positive all day. Seems like we had slow bleeds interspersed with buying spurts, so the buying was stronger but "they" were letting the market settle back each time so "they" could buy cheaper products. Just a guess. Overall market volume was below average, but no surprise there. Looking at the major indexes, we see an overbought and extended market. Deja vu all over again, harking back to the days in late 1999, early 2000. My guess is that the result of this over- exuberance will be the same as it was then. Longs need to suck up your stops tight to get as much out of this as you can. Bears are salivating for their turn at the food table. Bears have been getting their paws slapped for trying to sneak a bite before it's their turn. The bulls are pretty full and looking sleepy so it's almost time to rotate positions. Let's look at the major indexes: The DOW daily: The DOW weekly: S&P 500(SPX) daily Zeroing in a little closer, here's the Nasdaq-100 chart. So far the high put in on December 3rd has not been exceeded, nor do I think that it will. We're very close though, so just a little more rally would do it. NDX 120-min chart: Now I know a lot of people are going to look at my bearish comments as proof I've lost my marbles. Everyone knows that the Santa Claus rally goes through the end of the year and into the first week or two of January. I will admit that my opinion about the market topping right here is causing me some consternation due to this "belief" that we will rally. Too many people expect it and will make it happen. Ah, therein lies the rub. How many times have we seen high expectations for the market, only to then be surprised? Didn't everyone expect a sell-off to occur in the normally bearish period of September-October, especially after the strong rally we had seen since the spring? What happened? We rallied. Then everyone was expecting November to see a strong sell-off since we hadn't taken a breather in 8 months. What happened? We dropped a little but ended the month nearly back to even. Now everyone is expecting Santa to not disappoint us. What will happen? Mr. Elliott is telling me to pull my stops up tight and that we may have an opportunity to short this market like we haven't seen since early 2000. But what about all that new money that will be coming into the market in the beginning of January? Surely it will drive the market higher since it's unlikely to make it into money market funds. If the market starts down, as I suspect it will, my expectation is that we will indeed see a rally in January. It might even bring the market all the back up to the highs we're currently seeing. But for the EW count I'm showing to stay intact, once we tip over we will not make new highs in January. In fact you may be witnessing highs that won't be seen again for, well, let's just say a very long time. But that's for another discussion. Tomorrow morning we have a couple of economic reports. At 8:30 am we have Durable Goods Orders for November. Forecast is +1.5% while the market consensus is +0.6% (October was +3.3%). Initial Unemployment claims will also be reported at 8:30 am. Forecast and market consensus is 355K (353K was the prior number). New Home Sales for November is reported at 10:00 am. Forecast is 1.14M while market consensus is 1.11M (prior number was 1.105M). I don't see anything earth shattering in these economic numbers so it's tough to tell how it might affect the market. My expectation, based on EW analysis and fibonacci levels (along with the myriad bearish divergences) is that we could see an initial move up at the open but it will be short-lived as I believe it will mark the tippy top of this market. For the bears, consider shorting any opening move higher. For the bulls, decide how much you're willing to give back. I could be wrong on this (wouldn't be the first time, not by a long shot), so only you can decide where you want your stop. Bears, don't get overly enthusiastic such that you lose your discipline. This market has defied most technical indicators for a long time now. Keep your stops tight and don't let your "belief" get in the way of sound money management. Good luck to everyone in their trading tomorrow. Have a great night and I'll see some of you in the Futures Monitor tomorrow for a shortened day of trading (market closes at 1:00 pm). Let's see what Ms. Market serves up in the morning. ================================================================== 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 --------------------------------- American International Group - AIG - close: 64.90 change: +0.26 WHAT TO WATCH: No you aren't imagining things, AIG was in this spot last Thursday as well. The technical setup is looking even more favorable for a breakout tonight, as the stock has been banging against the $65 resistance level for the past four days. Use a breakout over $65 as an entry trigger and target a quick move to the $70 area. --- Comerica Inc. - CMA - close: 54.51 change: +0.81 WHAT TO WATCH: After the sharp rise in late October, shares of CMA have been steadily advancing in a higher-highs and higher- lows pattern. Tuesday's session say a breakout to a new high and a push up towards $58-59 resistance seems likely. Take advantage of any intraday pullbacks near the 20-dma for a more favorable entry. --- H. R. Block Inc. - HRB - close: 54.00 change: +0.68 WHAT TO WATCH: It isn't tax season yet, but you wouldn't know it to look at shares of HRB. The stock broke out strongly in late November on the heels of the company's blowout earnings report. After a bit of consolidation of that strong move, HRB looks ready to break out again. Use a trigger at $54.60 (just over the 11/28 high) and look for a continued rally up near the $60 level. --- Waste Connections - WCN - close: 37.70 change: +0.64 WHAT TO WATCH: WCN has been stymied near the $37 resistance level all year, with each rally to that level resulting in a sharp drop back to support near $32. Something is different this time though, as the stock blasted through that resistance on Tuesday to set a new recent high. Play the breakout up to the $39-40 area, in the vicinity of the stock's all-time highs. Better entries may be possible on a pullback near the 20-dma, just below $37. --- Federal Express - FDX - close: 68.99 change: -0.31 WHAT TO WATCH: FDX is another retread from Thursday's list, as the opportunity is still ripe. FDX continues to drift lower along its descending trendline connecting the lows from late October and late November. A rebound from this trendline is likely, with a rollover from the $71-72 area providing the optimum entry. Target a drop to the $66 area near the 200-dma. =================== On the RADAR Screen =================== NVDA $21.96 - Ripe for a breakout, NVDA has been banging its head on $22 resistance for the past several weeks and looks like it wants to go higher. Use a trigger above $22.25 and play for a rally up to the $25-26 area. MESA $13.85 - After struggling below the $13 level for several months, shares of MESA have been seeing some very strong buying volume the past few days and on Tuesday broke out with conviction. While it may be a bit too extended to chase higher, a pullback to confirm $13 as newfound support should provide an excellent entry point ahead of a rally up near the $15 area to fill the gap left behind after the September-2001 plunge. BSTE $27.10 - BSTE has been finding strong support near $25 for the past two months and it looks like it is ready to finally make a solid bullish move. Tuesday's volume was strong, taking the stock back over the 50-dma. A pullback near $26 looks good for new entries ahead of a rally up near the $30 resistance. =============================== Market Sentiment =============================== All Hail Santa's Arrival - J. Brown Markets made merry with yet another bullish close and new highs for the DJIA and the S&P 500. However, this time it was the NASDAQ's turn to outpace its rivals with nearly a one percent gain. Bulls certainly ruled the day with the advance-decline line hitting almost 18 to 10 on the NYSE and 2 to 1 on the NASDAQ. New highs soared again on the NYSE and up volume strongly out paced down volume on both exchanges. Much of the talk today was about the low volume and it's expected to get worse tomorrow (Christmas Eve) and Friday. The markets close early both sessions and the majority of market participants will be absent. Santa has indeed delivered thus far for 2003 and he has inspired investors to buy the dip (yet again), which drove the indices from minor losses to gains in the last couple of hours of trading. The Dow and the SPX may be overbought but we can probably expect the trend to continue tomorrow and Friday. It is interesting to note that the Dow's bullish percent data has turned ominously into a "bear confirmed" pattern. That means the internals of the index are weakening and it should set up for the first quarter correction we're all expecting. Wednesday does bring the November durable goods report and economists are looking for a gain. Analysts are also looking for strong numbers in the new home sales data out tomorrow. ! Holiday schedule note: The Market Sentiment column will be absent over the Christmas holiday and will resume again on Tuesday, December 30th, 2003. ----------------------------------------------------------------- Market Averages DJIA ($INDU) 52-week High: 10375 52-week Low : 7416 Current : 10341 Moving Averages: (Simple) 10-dma: 10147 50-dma: 9848 200-dma: 9177 S&P 500 ($SPX) 52-week High: 1096 52-week Low : 788 Current : 1096 Moving Averages: (Simple) 10-dma: 1077 50-dma: 1055 200-dma: 984 Nasdaq-100 ($NDX) 52-week High: 1453 52-week Low : 795 Current : 1448 Moving Averages: (Simple) 10-dma: 1416 50-dma: 1412 200-dma: 1264 ----------------------------------------------------------------- If the historical trends for a bullish second half of December come true then look for these volatility indices to remain or extend their current lows. CBOE Market Volatility Index (VIX) = 16.49 -0.45 CBOE Mkt Volatility old VIX (VXO) = 15.57 -0.63 Nasdaq Volatility Index (VXN) = 23.49 -1.26 ----------------------------------------------------------------- Put/Call Ratio Call Volume Put Volume Total 0.76 585,116 442,008 Equity Only 0.58 489,783 282,026 OEX 1.12 14,103 15,837 QQQ 1.46 35,861 52,297 ----------------------------------------------------------------- Bullish Percent Data Current Change Status NYSE 75.6 + 0 Bull Confirmed NASDAQ-100 67.0 + 2 Bear Confirmed Dow Indust. 76.6 - 3 Bear Confirmed S&P 500 81.8 + 1 Bull Confirmed S&P 100 81.0 + 0 Bull Correction Bullish percent measures the number of stocks in an index currently trading on a buy signal on their point and figure chart. Readings above 70 are considered overbought, and readings below 30 are considered oversold. Bull Confirmed - Aggressively long Bull Alert - Cautiously long Bull Correction - Pause or pullback in upward trend Bear Alert - Take defensive action if long Bear Confirmed - High risk if long, good conditions for shorting Bear Correction - Pause or rebound in downtrend ----------------------------------------------------------------- 5-dma: 0.88 10-dma: 0.91 21-dma: 0.99 55-dma: 1.07 Extreme readings above 1.5 are bullish, and readings below .85 are bearish. These signals don't occur often and tend be early, but when they do, they can signal significant market turning points. ----------------------------------------------------------------- Market Internals -NYSE- -NASDAQ- Advancers 1783 1997 Decliners 1027 1057 New Highs 410 169 New Lows 9 6 Up Volume 852M 918M Down Vol. 528M 360M Total Vol. 1402M 1301M M = millions ----------------------------------------------------------------- Commitments Of Traders Report: 12/16/03 Weekly COT report discloses positions held by small specs and commercial traders of index futures contracts at the Chicago Mercantile Exchange and Chicago Board of Trade. COT data can be found at www.cftc.gov. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs tend to be wrong. S&P 500 Finally! The commercials are finally putting some money to work and we're seeing strong increases in both long and short positions. New longs soared about 50K contracts while new shorts jumped about 40K contracts. Overall, commercials remain net short. Small traders have also increased their net short positions but remain net long. Commercials Long Short Net % Of OI 11/18/03 393,893 414,442 (20,549) (2.5%) 12/02/03 394,531 414,223 (19,692) (2.4%) 12/09/03 396,882 420,859 (23,977) (2.9%) 12/16/03 448,103 460,670 (12,567) (1.4%) Most bearish reading of the year: (111,956) - 3/06/02 Most bullish reading of the year: 18,486 - 6/17/03 Small Traders Long Short Net % of OI 11/18/03 147,842 80,047 67,795 29.7% 12/02/03 154,788 85,776 69,012 28.7% 12/09/03 172,178 99,484 72,694 26.8% 12/16/03 172,947 113,704 59,243 20.7% Most bearish reading of the year: (1,657)- 5/27/03 Most bullish reading of the year: 114,510 - 3/26/02 E-MINI S&P 500 We are seeing the same surge of activity in the e-minis. Commercial traders opened another 35K long contracts but opened 72K new short contracts, tipping the scales from long to short. In contrast the retail traders reduced their shorts and opened another 35K longs. Commercials Long Short Net % Of OI 11/18/03 249,286 264,083 (14,797) (2.9%) 12/02/03 283,199 268,833 14,366 2.6% 12/09/03 294,006 288,385 5,621 1.0% 12/16/03 330,273 361,316 (31,043) (4.5%) Most bearish reading of the year: (354,835) - 06/17/03 Most bullish reading of the year: 133,299 - 09/02/03 Small Traders Long Short Net % of OI 11/18/03 95,119 61,975 33,144 21.1% 12/02/03 119,555 77,609 41,946 21.3% 12/09/03 142,173 76,171 66,002 30.2% 12/16/03 177,193 73,694 103,499 41.3% Most bearish reading of the year: (77,385) - 09/02/03 Most bullish reading of the year: 449,310 - 06/10/03 NASDAQ-100 Again, we're seeing new money from the commercial traders. NDX futures have seen a bump in net longs and net shorts from both professionals and small traders. Commercials remain net short and small traders remain net long. Commercials Long Short Net % of OI 11/18/03 35,608 49,689 (14,081) (16.5%) 12/02/03 35,569 48,552 (12,983) (15.4%) 12/09/03 39,612 51,443 (11,831) (13.0%) 12/16/03 61,343 73,153 (11,810) ( 8.8% Most bearish reading of the year: (21,858) - 08/26/03 Most bullish reading of the year: 9,068 - 06/11/02 Small Traders Long Short Net % of OI 11/18/03 32,034 10,356 21,678 51.3% 12/02/03 21,594 9,429 12,165 39.2% 12/09/03 25,842 10,228 15,614 43.3% 12/16/03 28,676 15,197 13,479 30.7% Most bearish reading of the year: (10,769) - 06/11/02 Most bullish reading of the year: 19,088 - 01/21/02 DOW JONES INDUSTRIAL Commercials are hedging their bets on the DJ futures. Both longs and shorts saw a bump of about 3K contracts each. Meanwhile, small traders have turned decidedly bearish. The surge of new shorts has produced the most bearish reading in the DJ futures since 2001. Commercials Long Short Net % of OI 11/18/03 20,746 11,080 9,666 30.4% 12/02/03 21,128 12,379 8,749 26.1% 12/09/03 20,378 11,934 8,444 26.1% 12/16/03 23,509 13,880 9,629 25.8% Most bearish reading of the year: (8,322) - 1/16/01 Most bullish reading of the year: 15,135 - 10/16/01 Small Traders Long Short Net % of OI 11/18/03 5,655 8,607 (2,952) (20.7%) 12/02/03 6,667 9,302 (2,635) (16.5%) 12/09/03 6,858 12,006 (5,148) (27.3%) 12/16/03 9,497 19,633 (10,136) (34.8%) Most bearish reading of the year: (10,136) - 12/16/03 Most bullish reading of the year: 8,523 - 8/26/03 ----------------------------------------------------------------- ================================================================= 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 Tuesday 12-23-2003 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 ================================================================= Play of the Day: Blast Off! Stop Adjustments: NXTL Stock Split: HOFT 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) ================================================================= Play-of-the-Day (Bullish) =============== Nextel Comms - NXTL - close: 27.00 change: +1.08 stop: 25.50*new* Company Description: Nextel has come a long ways since its humble beginnings as a radio dispatch company. Providing mobile phone service, two-way radio dispatch, and paging services to business users; all through one Motorola handset, the company is growing into a major digital wireless services provider. NXTL's digital network (Digital Mobile Network) constitutes one of the country's largest integrated wireless communications systems utilizing a single transmission technology. NXTL has specialized mobile radio spectrum holdings in and around every major business and population center in the U.S., including all of the top 50 metropolitan areas. Why we like it: If "slow and steady" wins the race, then NXTL appears headed for the winner's circle. After pulling back to confirm new support at old resistance just over $24, the stock has been steadily pushing higher over the past week. The gains haven't been anything to get excited about yet, but the stock closed on Friday at $26 and is closing in on the top of its rising channel again. If the bulls can continue their push higher during the abbreviated holiday week, we could see a breakout over the 12/1 high ($26.34) and more importantly, a breakout over the top of the channel ($26.50). That accomplishment would set the stage for NXTL to increase the rate of its advance and perhaps take a run at our $30 target before the end of the year. We can use a dip and rebound from the 10-dma ($25.51) as a continuation entry point. Raise stops to $24.95 this weekend, just below the 20-dma ($25.22) and last Monday's intraday low. Why This is our Play of the Day We've been expecting NXTL to take another strong run at the top of its rising channel, as the stock has been consolidating just below $26 for over a week. That assault occurred on Tuesday, with the stock surging higher by more than 4%, breaking through the top of the channel and closing very near the high of the day. NXTL has now broken solidly into the gap left behind in February 2001 and the stage is set for a strong rally towards our $30 target near the top of that gap. A pullback near the top of the broken channel ($26.40) or even down to the $26 level can be used for new entries, while momentum traders should have entered today on the break above $26.40, which cleared the 12/01 high. Raise stops to $25.50, which is right at the site of the 20-dma. Annotated Chart of NXTL: Picked on November 26th at $25.27 Change since picked +1.73 Earnings Date 2/19/04 (unconfirmed) Average Daily Volume = 14.5 mln ================================================================= Stop Loss Adjustments ================================================================= NXTL - long Adjust from $24.95 up to $25.50 ================================================================= Stock Splits ================================================================= Announcements ------------- HOFT furnishes a 2:1 stock split and an increase in cash dividend Before today's opening bell, Hooker Furniture Corporation, Inc (NASDAQ:HOFT) announced that its Board of Directors has approved a 2-for-1 stock split of its common shares outstanding and an increased cash dividend of $0.06. The payable date for the stock split is set for January 30th, 2004 to shareholders on record as of January 9th. The payable date for the cash dividend is set for February 27th, 2004 to shareholders on record as of February 13th. About the company: Ranked among the nation's top 15 public furniture manufacturers in sales, Hooker Furniture is a 79-year old producer and importer of wall and entertainment systems, home office, occasional, dining, bedroom and upholstered leather furniture with approximately 1900 employees. The Company owns 9 manufacturing facilities, a distribution center and a warehouse located in Virginia and North Carolina. Plant locations include Cherryville, Hickory, Pleasant Garden, Maiden, and Woodleaf, N.C. and Martinsville and Roanoke, Va. The Company's stock is listed on the Nasdaq SmallCap Market under the symbol HOFT, and closed on September 30, 2003 at $34.05 per share. Please visit us on the World Wide Web at www.hookerfurniture.com and www.bradington-young.com. (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 WYE Wyeth 41.78 +0.73 MRK Merck & Co 44.73 +0.52 MMC Marsh & Mclennan Cos 46.95 +0.55 NXTL Nextel Communications 27.00 +1.08 SLM SLM Corp 38.17 +0.67 CVS CVS Corp 34.90 +0.70 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- ACF Americredit Corp 15.67 +1.10 BFR Banco Frances Sa 9.09 +1.24 PSSI PSS World Medical 12.30 +1.11 BLTI Biolase Technology 17.60 +1.88 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- LEH Lehman Brothers 75.69 +0.69 JCP J.C.Penney Co 26.21 +1.45 RIMM Research In Motion Ltd 69.61 +23.51 IFIN Investors Financial Svcs 38.59 +1.33 TK Teekay Shipping 57.20 +1.40 TRMB Trimble Navigation 35.90 +1.49 VMSI Ventana Medical 38.22 +1.22 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- NTE Nam Tai Electronics 26.93 -1.93 FLS Flowserve Corp 20.83 -1.44 CBK Christopher & Banks 20.64 -1.16 CRDN Ceradyne Inc 33.35 -2.15 KVHI KVH Industries 26.44 -1.72 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- MOV Movado Group Inc 28.96 -1.03 ================================================================= 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. 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