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Daily Newsletter, Thursday, 01/22/2004

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PremierInvestor.net Newsletter                 Thursday 01-22-2004
                                                    section 1 of 2
Copyright (c) 2004, 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:      Volume Still Strong
Watch List:       SBUX, JCOM, NSM, SUNW
Market Sentiment: Looking Tired

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      01-22-2004           High     Low     Volume Advance/Decline
DJIA    10623.18 -  0.44 10660.88 10607.40 2.27 bln   1683/1558
NASDAQ   2119.01 - 23.40  2152.12  2119.01 2.36 bln   1216/2013
S&P 100   566.21 -  2.43   569.84   565.71   Totals   2899/3571
S&P 500  1143.94 -  3.68  1150.51  1143.01
W5000   11164.78 - 37.80 11232.92 11160.00
RUS 2000  591.73 -  5.75   600.61   591.53
DJ TRANS 3080.32 + 16.70  3090.07  3063.73
VIX        14.71 +  0.37    14.87    14.01
VXO (VIX-O)15.01 +  0.58    15.34    14.39
VXN        21.74 +  1.03    21.78    20.42
Total Volume 4,953M
Total UpVol  1,642M
Total DnVol  3,218M
Total Adv  3339
Total Dcl  4007
52wk Highs 1040
52wk Lows     8
TRIN       1.52
NAZTRIN    1.41
PUT/CALL   0.92
=================================================================

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

Volume Still Strong

Volume on Thursday was nearly five billion across all markets
and stretched the string of high volume days to 13. Declining
volume was unfortunately the highest since Sept-24th and
twice the up volume. Still the Dow held its ground and clung
to its 52-week highs. The Nasdaq saw some profit taking in
front of Microsoft earnings but even that was muted.

Dow Chart


Nasdaq Chart



The economics were about as mixed as the markets. The Jobless
Claims fell -1,000 to 341,000 and pushed the four-week average
to a new post-recession low of 345,000. Analysts had wanted
to see a little bigger drop in claims but had hedged their
bets with a consensus estimate of 349,000. Obviously they
were pleased as the numbers show a consistent improvement
although very slow decrease. Continued claims under 350K
have in the past led to an increase in jobs by about +150K
per month. With the Nonfarm Payrolls due out in two weeks
hopes are going to be running high.

Those claims may be about to increase according to the
Monthly Mass Layoffs which came in today at 1,929. These
layoffs will cut 192,633 workers and was up substantially
from the 1,438 and 138,543 workers from last month. This
is a December number and I suggested last month we could
see an increase at year end and into January as companies
trim the sails going into the new year. Manufacturing
still accounted for the majority of the cuts with 34% of
the total. This is a trend that should continue as long
as jobs continue to be outsourced overseas.

There have been several high profile comments recently that
suggest the "lost" jobs from December's Jobs report will be
found. Fed President Bob McTeer said he was shocked and went
on record that he felt they would be found in the January
report. Treasury Secretary John Snow echoed those exact
comments this week that the report "must" be in error and
the inaccuracies will be corrected and the lost jobs found
by January's report. This is just a sample of the posturing
we are seeing and it suggests the jobs will be found
regardless of whether they exist of not. It is an election
year.

With the economics mixed the markets were left to trade on
stock news. The biggest news of the morning was news of a
massive layoff by Eastman Kodak. They are cutting -15,000
workers over the next three years as they close plants and
reduce manufacturing square footage by about one third.
The company is moving out of traditional film and into
the digital camera market. Investors liked the announcement
and pushed the stock up +10% to $31.02 and a six month high.
This helped the Dow overcome weakness from INTC, T, DD, KO
and Boeing. EK gained +3.49 and the next largest Dow gainer
was CAT at +0.60.

Lucent was the target of some serious selling on volume of
more than 200 million shares after Smith Barney cut them
to a sell. Smith Barney said traditional wireline suppliers
had seen their stocks rise well above fundamentals in the
last month and were due for a correction. The analyst said
capex spending in the sector would likely be flat with
declining spending in the switched circuit markets being
offset by increases in VOIP equipment and routers.

AT&T complicated the picture for the telecom sector when it
announced earnings that were soft from weak customer demand
and heavy pricing pressure. AT&T said it saw further sales
declines for 2004. Revenues dropped -12.8% as long distance
continued to be eroded by consumers switching to LD free
cell phones and VOIP. Consumer revenues fell -18.9%. T fell
-$.85 cents on the news and below its $21 support level to
rest on the 50 DMA at 20.39.

After the close the 800lb gorilla announced earnings and the
futures market dropped sharply. Microsoft reported earnings
of 34 cents and beat estimates by +4 cents but nobody seemed
to care. After hours investors keyed on the 14 cent headline
number and recoiled from the 20 cent charge for stock based
compensation. This charge was well over any estimates at
nearly 60% of gross earnings. Other problems appeared to
be a drop in subscription revenue and a lower unearned
revenue number. Revenue was up slightly over the prior
quarter and Microsoft said PC demand continued to exceed
expectations. They also said they were seeing early signs
of an IT recovery. They guided slightly up for the current
quarter which is normally unheard of. Despite the good
guidance the number crunchers panicked and the stock sold
off slightly in after hours trading. From the action in
the futures you would have thought they had missed their
numbers with the S&P futures dropping -4.00 on the news.
This was a severe over reaction to the -50 cent drop in
the stock.

Part of that futures drop was attributed to some guidance
from other reporting techs. KLAC beat the street by +3 cents
and guided higher for the current quarter. They said orders
were up +50% from the prior quarter and felt they were in
the early stages of a sustainable upturn. They felt the
orders for the 1Q would increase by +15%. They beat the
street and raised guidance but the stock fell over -$1.00
in after hours trading.

MCHP announced earnings inline with estimates and guided
higher for the current quarter. They said their book-to-bill
ratio was 1.26 and raised their dividend. They said sales
of microcontrollers were at record levels. The stock was
trading down over -$1 in after hours. MCHP was one of the
three stocks rated five stars on Wednesday by S&P. (INTC
and TXN) They suggested each had the potential for another
+25% gain.

MSCC beat estimates by +2 cents and raised guidance. Income
increased +50% over the fourth quarter and margins increased
substantially. Book to bill was only +1.06 and sales only
increased +4%. While it appeared great for the company
investors were not as impressed. The stock was trading
down in after hours.

GNSS beat the street's estimates of +3 cents with a huge
jump to +8 cents profit. Sales were up +17% over the prior
quarter with gross margins increasing to 39.6%. Great news
but they had the misfortune of guiding inline with estimates
and the stock traded down in after hours.

AMGN accidentally released their earning on their website
just before the market closed and dropped substantially
due to missing estimates by -2 cents. They closed at $61.47
and well off their $63.46 intraday high. The earnings miss
was due to rising expenses and higher marketing costs to
fend off new competition from Abbot on Enbrel.

Corning posted earnings inline with estimates but the big
news was surging demand for LCD display panels used in PCs
and laptops. GLW said it expected to sell out of its LCD
glass despite boosting output to meet demand. This was the
second consecutive quarterly profit in more than two years.
You guessed it, GLW traded down in after hours.

Volume is strong, tech earnings are great and guidance is
mostly positive but techs are retreating. Good earnings are
being met with selling more often than not. PC sales are
now projected to be double digits through June (per MSFT)
and chip companies are trending flat to down. Small caps
have been on a roll but sold off -5.75 today. Seeing a
trend here?

This is normal post earnings depression like we have not
seen since the Internet bubble. We had a massive earnings
run on extremely optimistic expectations and those have
generally been met. Investors are simply taking their
profits. This is not the end of the world but it may be
the end of the vertical gains without any new catalyst.

Russell Chart


S&P Chart



The markets are very extended and several critical points
have been reached. The Dow hit 10660 today and within 13
points of the 2002 resistance highs at 10673. The S&P hit
1150.51 and only -1.50 points away from a +50% rebound
off the Oct-2002 lows. 1160 is the 50% retracement of the
drop from the Jan-2000 highs. 1173 is the 2002 resistance
highs. Getting crowded over 1150. The Russell 2000 hit
600.61 today and while that is still -14 points from the
all time high in March 2000 it has been the unofficial
target for over a month. The Nasdaq has failed at 2150
four times now and despite great earnings is threatening
to retest 2100. While these technicals tests are critical
they are all just signs of a tired earnings run. The Nasdaq
had no trouble breaking 2000 and the Dow is now well over
10000 on the strength of these expectations. It should not
be surprising to see some profit taking and consolidation
once those expectations were met.

Distribution or consolidation? Ask me again in a month.
The very strong volume patterns suggest we are seeing
some distribution at critical market levels. The down
volume is increasing but we are not yet seeing any real
selling imbalances. The new highs were over 1000 again
for the fourth consecutive today and showing no signs of
retreat. Until those numbers decline substantially we are
just consolidating. The last time they were below 800 on
the new 52-week highs was the week before Christmas.

While there is still significant resistance above us there
is also significant support below. The Nasdaq spend most
of the last two weeks fighting to get over 2100 and stay
there and it is going to take a lot more selling than we
saw today to fall below the 2085 level that we saw during
that fight. Should that level fail the 50 dma is right at
2000 and that has been support since March.

The Dow has successfully defended 10500 numerous times
and 10400 more than once. The 50 dma is currently at 10100
and that is more than -500 points away from today's close.
The S&P has very strong support at 1115-1120 and is well
above the 50 dma at 1085.

What all this gibberish means is that we could see several
days of selling without any serious harm. The problem as
I see it now is the lack of a motivating factor. Earnings
are coming in as expected and more than 50% of the S&P
will have reported by tomorrow. There should be no more
big upside surprises. The Fed meets on Tuesday and the
odds are good they will begin to condition the markets
for a rate hike. Nobody expects a hike before the elections
but they will likely begin to set the stage. This could
put pressure on the markets through Wednesday.

I believe we will see a gap down on Friday that will be
bought by traders looking for an entry point. That bounce
could fade by days end and leave us range bound through
the Fed meeting which ends on Wednesday. Once any reaction
to the Fed meeting is over I would look for a ramp into
the Jobs report on Jan-6th. We have been virtually assured
that it will show positive job gains. Potholes or stepping
stones into that Jobs report will be the GDP due out next
Friday and the ISM on Monday the 2nd. The big challenge
will be the GDP. The official estimate is for +4.5% growth
for the 4Q. The whisper number is already +6.5%. This is
a prime opportunity for a disappointment. With the recent
earnings and sales increases for the 4Q I suspect it will
be over 4.5% but not as high as the whisper. Since the
Fed will undoubtedly have the GDP numbers during their
meeting any overly strong number will influence their
rate stance. It is a catch-22. An inline number will be
seen as pleasing to the Fed but disappointing by traders.
A blowout number could cause a Fed reaction which would
disappoint traders. The best possible number would be
something just over 5% so the Fed is pleased but not
scared and traders can be pleased but not ecstatic.

Friday is going to be a tossup and a chance for traders
to begin positioning themselves for one more week of very
intensive earnings followed by a week of intensive
economics. After that it is time to coast until the April
earnings run begins. Now, that chapter in this investing
saga will be very interesting as we get to see if this
months guidance lived up to the hype.

Enter Passively, Exit Aggressively.

Jim Brown
Editor


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

Starbucks Corp. - SBUX - close: 35.73 change: +0.73

WHAT TO WATCH: As though the law of gravity had been repealed,
SBUX continues notching new all-time highs and delivered another
one today as investors gave their approval of last night's
earnings report.  The stock is a bit extended right now, but
pullbacks near the bottom of the rising channel (near $33) should
provide solid long-term entry points into this consistent
performer.




---

j2 Global Communications - JCOM - close: 25.25 change: -1.70

WHAT TO WATCH: No matter how you slice, JCOM appears to be in
trouble.  After the recent rally failure near $28.75, selling
pressure has really been picking up over the past two days,
perhaps in anticipation/reaction to news that the company is
going to acquire The Electric Mail Company.  With today's break
back under the 50-dma, it looks like a return to the December
lows near $22.50 is in the cards, with a solid shot at breaking
down below $20.  Use an entry trigger under $25.




---

National Semiconductor - NSM - close: 37.95 change: -1.73

WHAT TO WATCH: That didn't take long.  It was just yesterday that
we listed NSM on the Radar Screen as a potential breakdown
candidate,  where the 100-dma was the line in the sand.  The
bears won that battle today, and the stock closed right at the
low of the day.  Continuation to the downside will bring next
support at $36 into play enroute to strong support near $32.




---

Sun Microsystems - SUNW - close: 5.52 change: -014

WHAT TO WATCH: Investors gave their approval to SUNW's earnings
report by driving the stock right up to strong resistance in the
$5.60 area, but it appears that it was too far too fast and it is
time for a bit of retracement.  That gap down to the $5.00 level
is just begging to be filled in and this is a good place to enter
ahead of that decline.  Use a tight stop just above today's
intraday high.





===================
On the RADAR Screen
===================

CSC $45.61 - Along with much in the technology sector, CSC has
been looking strong lately and Thursday's strong rally brought
the stock within striking distance of a breakout to new recent
highs.  Use a trigger over $46 and target strong resistance near
$50.

JNJ $53.05 - Finally breaking from its year-long downtrend, JNJ
is starting to look much more healthy.  After finding support at
the 50-dma, the stock broke out over the 200-dma over the past
couple days and now looks headed for strong resistance in the
$57-58 area.  The best point for new entries will be on a
pullback to confirm new support near the $52 former resistance
level.

BBY $52.88 - Despite today's rally in the Retail sector, BBY
continues to look sickly.  The stock is rolling over below the
50-dma and with daily Stochastics and MACD following suit, it
looks like a good candidate to drop in the weeks ahead.  Use a
trigger below the 20-dma and target the 200-dma just above $47.


===============================
Market Sentiment
===============================

Looking Tired
- J. Brown

The rallies in the major indices are truly starting to look
tired.  For the last three or four days we've done nothing but go
sideways as investors try and digest the deluge of earnings news.
If the markets can rally tomorrow they may be able to stretch the
winning streak to nine weeks in a row, a feat not seen since 1989
(on the S&P).  However, that all depends on how investors choose
to interpret Microsoft's mixed earnings news that came out
tonight after the closing bell.

The market's exhaustion is becoming more apparent in its
internals.  The NYSE saw a very narrow race in the A/D line but
advancing stocks nosed past decliners 1443 to 1419.  The NASDAQ,
which saw the brunt of the selling today, watched losers beat up
winners almost 20 to 11.  Down volume overpowered up volume on
both exchanges and total volume was heavy yet again.  As a matter
of fact some of the discussion among traders is how all this
heavy volume smells like distribution (smart money taking profits
and selling their winners to retail investors).

Despite the weakness today the major averages are still in a
strong up trend.  The question is whether or not investors are
once again ready to buy the dip or wait for a pull back in hopes
of a better entry point.

One sector really seeing a lot of profit taking is the disk
drives sector.  The DDX has fallen strongly for two days in a row
after STX offered its earnings warning mid-week.  The group looks
poised for more weakness tomorrow and the DDX doesn't have any
support until the 130 level.

The GHA hardware index has also fallen under profit taking and
the index broke support at 260 today while its MACD indicator
suggest a sell signal will appear very soon.  The Internets and
software stocks have held up better than their hardware-related
cousins.  However, everyone is watching the semiconductors.  The
SOX could be in bull flag consolidation but the index looks
poised for more weakness tomorrow and its MACD also looks pretty
weak.

Not surprising is the pull back in the NWX networking index.  The
whole group has been white-hot since the new year and was way
overdue for a bit of selling.  Another group that's been super
strong was the broker-dealers but the XBD finally felt some
profit taking today as well.

Hmm... I'm also noticing what could be short-term double-tops in
the DRG drug index and the OIX oil index.  There's no correlation
between the two other than a similar chart pattern.  We'll see if
there's any follow through on today's failed rallies.

The best performing sector today was the XAL airlines index.  The
XAL added 4% after AMR, the world's largest airline, jumped
almost 16% on a better than expected earnings report.

Also notable today was the failed rally in the XAU gold & silver
index.  The entire group posted an oversold bounce earlier in the
week but that bounce might be failing.


-----------------------------------------------------------------

Market Averages

DJIA ($INDU)

52-week High: 10660
52-week Low :  7416
Current     : 10623

Moving Averages:
(Simple)

 10-dma: 10543
 50-dma: 10129
200-dma:  9400

S&P 500 ($SPX)

52-week High: 1150
52-week Low :  788
Current     : 1143

Moving Averages:
(Simple)

 10-dma: 1133
 50-dma: 1085
200-dma: 1010

Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low :  795
Current     : 1530

Moving Averages:
(Simple)

 10-dma: 1536
 50-dma: 1448
200-dma: 1307


-----------------------------------------------------------------

As expected the volatility indices bounced today but not by much
as the selling was mild across most of the market indices.

CBOE Market Volatility Index (VIX) = 14.71 +0.37
CBOE Mkt Volatility old VIX  (VXO) = 15.12 +0.69
Nasdaq Volatility Index (VXN)      = 21.74 +1.03


-----------------------------------------------------------------

          Put/Call Ratio  Call Volume   Put Volume

Total          0.92        886,395       812,495
Equity Only    0.74        783,191       581,852
OEX            1.50         14,300        24,419
QQQ           10.51         23,329       245,232


-----------------------------------------------------------------

Bullish Percent Data

           Current   Change   Status
NYSE          78.4    + 1     Bull Confirmed
NASDAQ-100    80.0    - 1     Bull Confirmed
Dow Indust.   93.3    + 6     Bull Confirmed
S&P 500       88.6    + 1     Bull Confirmed
S&P 100       87.0    + 2     Bull Confirmed


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: 1.00
10-dma: 1.06
21-dma: 0.97
55-dma: 1.05


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    1443      1138
Decliners    1420      1960

New Highs     320       290
New Lows        7         5

Up Volume    846M      681M
Down Vol.   1369M     1589M

Total Vol.  2228M     2332M
M = millions


-----------------------------------------------------------------

Commitments Of Traders Report: 01/13/04

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

We don't have much more to report on for commercial traders this
week other than slightly increased positions on both sides of the
fence.  Small traders followed suit.


Commercials   Long      Short      Net     % Of OI
12/16/03      448,103   460,670    12,567     1.4%
12/22/03      400,066   405,240    (5,174)   (0.6%)
01/06/04      403,721   408,729    (5,008)   (0.6%)
01/13/04      405,558   411,361    (5,803)   (0.7%)

Most bearish reading of the year: (111,956) -  3/06/02
Most bullish reading of the year:   23,977  - 12/09/03

Small Traders Long      Short      Net     % of OI
12/16/03      172,947   113,704    59,243    20.7%
12/22/03      147,537    81,596    65,941    28.8%
01/06/04      142,844    83,518    59,326    26.2
01/13/04      149,057    90,571    58,486    24.4%

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

The e-minis are seeing more action than the full contracts
represented above.  Commercial traders added more than 20K
contracts to both longs and shorts but they remain net bearish.
Small traders were more enthusiastic with a large increase in
long positions, outpacing the increase in short positions.
Contrarians might view this as a bearish development.


Commercials   Long      Short      Net     % Of OI
12/16/03      330,273   361,316    (31,043)   (4.5%)
12/22/03      128,801   213,021    (84,220)  (24.6%)
01/06/04      175,489   240,865    (65,376)  (15.7%)
01/13/04      196,858   263,845    (66,987)  (14.5%)

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
12/16/03     177,193     73,694   103,499    41.3%
12/22/03     125,248     43,482    81,766    48.5%
01/06/04     139,433     51,909    87,524    45.7%
01/13/04     191,241     62,711   128,530    50.6%

Most bearish reading of the year: (77,385)  - 09/02/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

Ho-hum...commercial traders are still asleep at the wheel
in the NDX futures.  Meanwhile small traders have reduced
their outstanding shorts.


Commercials   Long      Short      Net     % of OI
12/16/03       61,343     73,153   (11,810) ( 8.8%
12/22/03       40,277     36,452     3,825    5.0%
01/06/04       42,892     37,801     5,091    6.3%
01/13/04       41,829     38,547     3,282    4.1%

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
12/16/03       28,676    15,197    13,479    30.7%
12/22/03       22,656    14,544     8,112    21.8%
01/06/04        8,035    17,911   ( 9,876)  (38.1%)
01/13/04        9,705    12,539   ( 2,834)  (12.7%)

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

There isn't much to report in the DJ futures either.
It looks like commercials are just shuffling money around but
the net result was a slightly more bullish stance on the Dow.
In mirror-like precision small traders have slowly become more
bearihs.


Commercials   Long      Short      Net     % of OI
12/16/03       23,509    13,880    9,629      25.8%
12/22/03       14,088     9,998    4,090      17.0%
01/06/04       15,697     9,497    6,200      24.6%
01/13/04       16,501     8,724    7,777      30.8%

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
12/16/03        9,497    19,633  (10,136)   (34.8%)
12/22/03        6,915     8,983  ( 2,068)   (13.0%)
01/06/04        5,713     8,105  ( 2,392)   (17.3%)
01/13/04        6,496     9,970  ( 3,474)   (21.1%)

Most bearish reading of the year: (10,136) - 12/16/03
Most bullish reading of the year:   8,523  -  8/26/03

-----------------------------------------------------------------


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Copyright ) 2003  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.
PremierInvestor.net Newsletter                 Thursday 01-22-2004
                                                    section 2 of 2
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

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

Stop Adjustments:  None

Stock Splits:     ACV, HCP, PII

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)


=================================================================
Stop Loss Adjustments
=================================================================

None


=================================================================
Stock Splits
=================================================================

Announcements
-------------

ACV washes up a 3-for-2 stock split

Early this morning Alberto-Culver Company (NYSE:ACV) announced
that its Board of Directors had approved a 43 percent increase in
its quarterly cash dividend and a 3-for-2 stock split.

The cash dividend is being raised from 10.5 cents to 15 cents a
share per quarter.  However, it looks like the cash dividend is
being paid post-split so that brings it back to 10 cents per
share.  The dividend payable date is February 20th, 2004 for
shareholders on record as of February 2nd.

The 3-for-2 stock split will give one additional share for every
two share held.  The distribution date is February 20th for
shareholders on record as of February 2nd.


About the company:
Alberto-Culver Company manufactures, distributes and markets
leading personal care products including Alberto VO5, St. Ives and
TRESemme in the United States and internationally. Its Pro-Line
International unit is the second largest producer in the world of
products for the ethnic hair care market. Sally Beauty Company is
the world's number one marketer of professional beauty care
products through its chain of domestic and international Sally
stores. Beauty Systems Group is a network of stores and
professional sales consultants selling exclusive professional
beauty care brands such as Matrix, Redken, Paul Mitchell, Graham
Webb and Sebastian to salon owners, salon professionals and
franchisees.  (Source: Company Press Release)

---

HCP announces a 2-for-1 stock split

Early this morning Health Care Property Investors Inc. (NYSE:HCP)
announced that its Board of Directors had approved a 2-for-1 stock
split of its common shares.  The split will take effect as a 100
percent stock dividend.

The payable date should be March 1st, 2004 for shareholders on
record as of February 4th. Post-split the company will have about
131 million shares outstanding.

HCP's board also approved a quarterly cash dividend of $0.835 per
share on a pre-split basis.  The payable date for the cash
dividend will be February 19th for shareholders on record as of
February 4th.

About the company:
Health Care Property Investors, Inc. is a self-administered equity
real estate investment trust (REIT) that invests directly or
through joint ventures in health care facilities. As of September
30, 2003, the company's portfolio of 446 properties in 43 states
consisted of 31 hospitals, 175 long-term care facilities, 124
retirement and assisted living facilities, 85 medical office
buildings and 31 other health care facilities. (Source: Company
Press Release)

---

Polaris (PII) drives a 2-for-1 stock split

Late this afternoon Polaris Industries Inc (NYSE:PII) announced
that its Board of Directors had declared a 48 percent increase to
its quarterly cash dividend and a 2-for-1 stock split.

The cash dividend will be raised to $0.46 and payable on a pre-
split basis to shareholder on record as of February 2nd, 2004.
The payout date for the dividend is February 17th.

The 2-for-1 stock split will take place as a 100 percent stock
dividend.  The distribution date will be March 8th, 2004 for
shareholders on record as of March 1st.  Post-split PII will have
about 43.4 million shares outstanding.


About the company:
Polaris is the recognized leader in the snowmobile industry; one
of the largest manufacturers of all terrain vehicles (ATVs) in the
world; and a leading manufacturer of personal watercraft. Victory
motorcycles, established in 1998, represent the first all-new
American-made motorcycle in nearly 60 years, and are rapidly
making impressive in-roads into the cruiser motorcycle
marketplace. Polaris also enhances the riding experience with a
complete line of Pure Polaris apparel, accessories and parts,
available at Polaris dealerships. (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

FNM     Fannie Mae                 79.35     +3.68
MER     Merrill Lynch              60.13     +0.53
FRE     Freddie Mac                64.14     +0.93
CAH     Cardinal Health            63.03     +3.18
MFC     Manulife Financial Corp    35.35     +0.53
WLP     Wellpoint Health Network  103.22     +2.73

---------------------------------------
Breakout to Upside (Stocks $5 to $20)
---------------------------------------

AMR     AMR Corp                   16.91     +2.36
BSG     Bisys Group                17.79     +2.48
SWC     Stillwater Mining Co       12.78     +1.74
ECLP    Eclipsys Corp              14.70     +2.83
MTEX    Mannatech Inc              14.75     +1.59

---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------

UNH     UnitedHealth Group         60.70     +2.26
AVE     Aventis                    71.71     +3.21
EBAY    eBay Corp                  69.32     +4.94
DNA     Genentech Inc              95.94     +1.54
FRX     Forest Labs                75.45     +2.98
BSX     Boston Scientific          39.29     +1.36
TEVA    Teva Pharmaceutical        61.00     +2.24

-------------------------------------------
Breakout to Downside (Stocks over $20)
-------------------------------------------

AMGN    Amgen Inc                  61.47     -1.34
WYE     Wyeth                      42.28     -2.37
SLE     Sara Lee Corp              20.46     -1.04
APD     Air Products & Chemicals   49.95     -2.34
UB      UnionBancal                54.84     -3.15
SNDK    SanDisk Corp               59.75     -9.84
PPP     Pogo Producing Co          45.25     -1.30
PFGC    Performance Food Group     31.20     -6.08
UGI     UGI Corp                   32.37     -1.37

-----------------------------------------
Recently Overbought With Bearish Signals (Stocks over $20)
-------------------------------------------

LRCX    Lam Research Corp          32.02     -1.63
PMI     The PMI Group              39.86     -1.64
FII     Federated Investors        30.98     -1.02
CTB     Cooper Tire & Rubber Co    21.60     -1.46
MSA     Mine Safety Appliance      86.50     -4.89


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