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Daily Newsletter, Thursday, 02/12/2004

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PremierInvestor.net Newsletter                 Thursday 02-12-2004
                                                    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:      Thank You Mr. Greenspan
Market Sentiment: Investors Take A Breath
Watch List:       UST, PDII, AFFX, PPDI


=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      02-12-2004           High     Low     Volume Advance/Decline
DJIA    10694.07 - 43.60 10735.29 10688.36 1.86 bln   1357/1848
NASDAQ   2073.61 - 16.10  2091.22  2072.06 1.94 bln   1291/1872
S&P 100   569.43 -  2.96   572.39   568.97   Totals   2648/3720
S&P 500  1152.11 -  5.65  1157.76  1151.44
W5000   11239.00 - 54.40 11293.42 11234.38
RUS 2000  592.75 -  4.32   597.07   592.13
DJ TRANS 2950.33 -  1.60  2960.52  2936.59
VIX        15.31 -  0.08    15.72    15.23
VXO (VIX-O)14.90 +  0.02    15.46    14.73
VXN        23.53 +  0.00    23.88    23.00
Total Volume 4,074M
Total UpVol  1,517M
Total DnVol  2,386M
Total Adv  3041
Total Dcl  4195
52wk Highs  708
52wk Lows     5
TRIN       0.93
NAZTRIN    1.08
PUT/CALL   0.55
=================================================================

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

Thank You Mr. Greenspan

After sending the Dow to a new two year high on Wednesday the
master of disaster carefully avoided any comments today that
would have reversed that gain. The positive comments about
GDP growth, job growth and the Fed's patience comforted bulls
and despite some minor profit taking today the markets held
those gains.

Dow Chart - Daily


Nasdaq Chart - Daily



Even negative Jobless Claims failed to put the skids on the
gains from Wednesday. Claims rose to 363,000 for this week
and the prior week was revised up to 357,000. Even a two-week
rebound over 350K failed to spoil the party. Continuing claims
fell another 23,000 to 3.083 million. Blame it on the weather
was the general analyst assumption as the four-week average
rose back to the 350,000 level. I am surprised there was not
a bigger reaction to the two week jump especially when
Greenspan himself said there was little evidence of hiring.
350K is the line in the sand below which job growth appears
and above that level we historically tend to see job growth
decrease.

Retail Sales fell -0.3% in January and far below expectations
for growth of +0.2%. A larger than expected decline in auto
sales was targeted as the culprit. I assume you could blame
that on the weather as well since car buyers seldom brave
blizzards to test drive new cars. The number ex-autos soared
to +0.9% with apparel, grocery and sporting goods stores
leading the gains. Building materials dropped -0.9%, again
probably due to the weather. Electronics only rose +0.1% and
furniture fell -0.9%.

Business Inventories rose +0.3% in December and inline with
estimates but an increase in sales pushed the inventory to
sales ratio to another record low of 1.34. Retailers showed
a modest increase in inventory but manufacturers remained
flat. In fact manufacturing inventories have declined for
three consecutive quarters. Everyone keeps pointing out the
record low levels as a sign there is a massive rebuild cycle
in our future but it continually fails to appear. This rebuild
cycle should add significantly to the GDP for Q1 as retailers
restock from the holiday sales.

The Greenspan relief rally on Wednesday shook off the minor
economic glitches above and the Dow clung to the 10700 level
with a grip of steel. The Nasdaq did not participate in the
Wednesday gains to the same extent as the Dow. The Nasdaq
gave back those meager gains today but held above 2075
support until earnings fears prompted a late day down tick.

Those earnings fears did not come to pass with Dell beating
estimates by a penny, ADI beat by two cents and NVDA beat
by three. Dell traded up in after hours and NVDA got killed.
Dell was the real threat. There was a concern that Dell had
felt the HPQ heat in the 4Q and had to cut margins to the
bone to sell computers. They were afraid that Dell could
report inline, show margin shrinkage or even guide lower
going forward. None of that came to pass. Dell was pleased
with their results, but then they normally are. Dell said
IT spending was increasing although at a slow and steady
pace.

Ironically Dell traded up in after hours despite a relatively
subdued conference call. Dell said that despite the steady
rise in IT spending they were not seeing any growth from the
large companies. The spending was coming from small to
medium size businesses with growth slowing as the size of
the companies grew larger. Revenue was inline with guidance
and shipments rose +25%. Dell also said January was strong
and they were refusing to discount prices further in their
battle with HPQ. Notebook sales which had been fueling
profits over the last two quarters were slowing and lower
priced computers were seeing stronger sales in 2004.

Dell said sales would decline -3% for Q1 due to seasonal
patterns. HPQ is hurting Dell and sometimes selling at a
loss to get the business. The battle for bragging rights
for first place has been tough and the lead tends to shift
quarter by quarter. Dell was quick to point out that its
printer business grew by +100% and they were continuing to
offer new models to compete with HPQ. Based on the flat tone
of the call and the flat guidance I am surprised that they
traded higher after hours. I suspect it was a relief rally
that they did not do worse as the whisper numbers had
suggested. Dell had traded at a six month low of $31.75
just last week.

Nvidia on the other hand felt the wrath of traders despite
beating estimates by +3 cents. The win was helped by a low
tax rate and a reduction in liabilities for tax contingencies.
Earnings were less than half of the prior 4Q on basically
the same revenue. NVDA also said sales of X-Box chips to
Microsoft had declined -$90 million and current sales would
be flat to down -5%. This was not really a surprise as most
sales come in the 3Q for units sold over the holidays. The
drop was slightly more than had been forecast. NVDA was
down to $21.90 in late trading.

On the flip side of the earnings coin was ADI, which posted
earnings that were nearly twice the same period a year ago.
ADI posted 30 cents for the 4Q compared to only 16 cents
from the prior year. Revenues were up and gross margins
rose to a whopping 57.1%. They also declared a dividend of
four cents. They guided analysts to 34-35 cents for Q1 and
well over the prior estimates of 32 cents. ADI shares jumped
over $2 in after hours trading.

In related news INTC actually dropped -25 cents despite
announcing a discovery that could accelerate data transfer
inside a PC by as much as 50 times the present rate. The
discovery is a way to pulse light beams through silicon to
represent the on/off state of a common bit of information.
By using different colors of light in the same beam they
anticipate being able to increase the transfer rate even
more. It will be sometime before this discovery makes its
way into real production but the path is clear. During
Dell's earnings they also alluded to the 64bit AMD chip
but suggested they would wait for the Intel offering that
is expected shortly. The problem is not the chip but the
software that runs on it. Until the software catches up
there is no rush for anyone to jump ship to the AMD chip.
Intel obviously knows this and are taking their time.

The biggest news of the afternoon was a sudden drop in
Imclone stock just before the stock was halted for news
pending. IMCL was trading just over $42 at 1:25 when the
stock suddenly dropped to $33.50 in a single tick with
volume indicated at over 600,000 shares. Several seconds
later the stock was halted news pending. The news was a
successful approval by the FDA of Erbitux. The IMCL drop
was explored by Nasdaq and the stock did not open again
for trading until 4:20. It closed the after hours session
back over $44.00. No answer for the drop was ever given
and whoever took the other side of that 600,000 share
sale should be a happy camper tonight. The FDA originally
declined to approve Erbitux and that led to the current
Martha Stewart trial and prison for Sam Waksal. IMCL was
trading just over $60 when that first denial was made.

The second day of testimony by Greenspan concluded without
any problems and traders breathed a sigh of relief. The
market fell slightly on the conclusion suggesting there
was a "sell the lack of news" event. The trading day was
actually very boring. We opened down on profit taking on
the weak economic news but the Dow then traded in a very
narrow 35 point range the rest of the day. 10700 became
the battle ground and traders appeared content to let
time expire on the clock rather than press the battle.

The Nasdaq held 2075 until a minor sell program in the
last ten minutes pushed the index to close at 2073. The
techs have not been as strong as the Dow but are holding
their own. The close at 2075 resistance, now support, and
the bump in the futures after the close could suggest
there are further gains ahead but it is very tough to
draw any kind of conclusions at these levels. Bullish
sentiment is still very strong but we are in the period
where historical consolidation occurs. We need to hold
these levels for at least another week until the April
earnings cycle begins with mid quarter updates.

Fueling this earnings cycle will be a very strong surge
in tax refunds and the beginning of the spring home buying
cycle. Greenspan clearly indicated that the Fed was planning
on being patient about raising rates. He also suggested the
recovery was still on track despite the lack of jobs.
This is the green light for equities and he removed any
suggestion of a change in conditions for at least the
next 90 days.

The lack of any material sell off after the Wednesday
gains shows that the bullish sentiment is alive and well
despite the two year highs. The key for Friday will be
the Nasdaq. If the Dell and ADI earnings based on a broad
customer base can overpower the disappointment from NVDA
which caters to a niche market then we should be in good
shape. The Nasdaq pulled back to its 50 dma last week and
the rebound from that level has yet to catch fire. After
four days we are still trading at the level reached on
that initial rebound. The Nasdaq needs to at least hold
its ground on Friday. We need to get above the 2080 level
and notch another higher high to give traders confidence
the rebound is going to stick. We may need a catalyst to
push us higher but we are still in dip buying mode until
something changes.

Tomorrow is Friday the 13th and Monday is a holiday. The
only economic report tomorrow that could move the market
is the Consumer Sentiment. The consensus is 104.9, up
from 103.8 in the last reading. As I reported last week
there was an AP sentiment survey for late January that
dropped substantially to 91.7 from 106.3. Should the
Michigan Survey tomorrow show any significant drop traders
might think twice before making big bets before the long
weekend. Flights were cancelled again today for terrorist
reasons so there is event risk to consider.

Lest you think market historians have nothing left to
compute you might be interested to know that on this Friday
in 2003 the Dow showed the first gain in twelve years. Yes,
after eleven straight years of declines the string was
broken. Wonder what it is about President's Day that
prompted the selling? Could it be they needed money for
Valentines presents? Yes, guys, there is only one shopping
day left until Valentines. Get off the couch and head for
the mall.

Enter Passively, Exit Aggressively.

Jim Brown
Editor


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

Investors Take A Breath
- J. Brown

After holding their breath Monday and Tuesday in anticipation of
Alan's appearance before congress investors may have let it all
out at once during Wednesday's big rally.  Today's action looks
like everyone just took a moment to catch their breath while
listening to Greenspan's second Q&A session with the senate.  The
economic data today was not inspiring but we'll get to hear more
tomorrow.  Before the open will be the import/export prices
report and the trade balance numbers.  After the bell the markets
will hear from the Michigan consumer sentiment report.  Currently
economists are estimating a small drop from 103.8 last month to
103.3.

Yet the real catalyst may be Dell's earnings that came out
tonight.  The EPS number beat by a penny while revenues matched
the estimates at $11.51 billion for the quarter.  That alone is
not impressive and one would normally expect profit taking on
this news.  However, we all know that investors have selective
hearing and they might key in on Dell's comments about corporate
demand picking up and their expectation for steady growth in tech
spending this year.  Unfortunately, they countered this positive
outlook by only guiding in-line with current estimates.  Maybe
they anticipated a negative reaction and in an attempt to keep
their stock price up Dell announced a $100 million stock buy back
program for the first quarter and another $100 million for each
quarter in FY05 for a total of $600 million.  Maybe it will work
but I think investors may have been happier if DELL had just
instituted a dividend instead.  How investors interpret this
report will influence direction for tech stocks tomorrow.

Market internals turned negative by the closing bell on Thursday
as declining stocks outpaced advancers 16 to 12 on the NYSE and
18 to 12 on the NASDAQ.  Down volume also outnumbered up volume
with the selling much heavier on the NASDAQ.

Keep an eye on the Dow Transports (TRAN).  This sector has
rallied strongly from its early February low but has stalled
right at resistance in the form of its 50-dma.

Bulls were able to drive the biotech index to another high today
but gains faded by the close.  Its cousin the DRG drug index
started the day in the red and remained there but still managed
to close above its simple 10-dma.

Energy stocks are still showing strength with the OSX oil
services index and the XNG natural gas index stretching their
winning streak to five days in a row.  The OIX has also been
strong but is currently under six-week resistance at the 330
level.

Right now the market leaders are the DFI defense index and the
IUX insurance index, both hitting new highs with a strong trend
behind them.  The RLX retail index isn't far behind after its
recent bullish breakout.

Garnering an honorable mention are the airlines and homebuilders.
The XAL has rebounded from its February low and closed above its
50-dma today.  A number of airlines are starting to slash prices
to drive up spring traffic.  Meanwhile the homebuilders have been
making headway now that Wall Street believes the fed will be
patient before raising rates again.


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

Market Averages

DJIA ($INDU)

52-week High: 10746
52-week Low :  7416
Current     : 10694

Moving Averages:
(Simple)

 10-dma: 10567
 50-dma: 10376
200-dma:  9566

S&P 500 ($SPX)

52-week High: 1158
52-week Low :  788
Current     : 1152

Moving Averages:
(Simple)

 10-dma: 1139
 50-dma: 1112
200-dma: 1029

Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low :  795
Current     : 1501

Moving Averages:
(Simple)

 10-dma: 1490
 50-dma: 1475
200-dma: 1339


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


The volatility indices are little help today.  The VIX and VXO
closed almost unchanged despite their earlier highs this morning
and the VXN did close unchanged.

CBOE Market Volatility Index (VIX) = 15.31 -0.08
CBOE Mkt Volatility old VIX  (VXO) = 14.90 +0.02
Nasdaq Volatility Index (VXN)      = 26.53 +0.00

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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.56        916,360       508,743
Equity Only    0.43        820,594       354,644
OEX            1.83         18,758        34,382
QQQ            1.35         40,042        53,905


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

Bullish Percent Data

           Current   Change   Status
NYSE          77.0    + 1     Bull Confirmed
NASDAQ-100    69.0    - 1     Bear Alert
Dow Indust.   86.7    + 0     Bull Confirmed
S&P 500       88.0    + 1     Bull Confirmed
S&P 100       89.0    + 1     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: 0.92
10-dma: 0.96
21-dma: 0.97
55-dma: 0.98


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    1192      1175
Decliners    1643      1864

New Highs     347       226
New Lows       10         3

Up Volume    830M      691M
Down Vol.    983M     1068M

Total Vol.  1833M     1848M
M = millions


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

Commitments Of Traders Report: 02/03/04

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

Commercial traders can't seem to make up their mind.  Currently,
they're almost flat with a slight edge to the bears.  Meanwhile
the small traders have grown even less bearish.


Commercials   Long      Short      Net     % Of OI
01/13/04      405,558   411,361    (5,803)   (0.7%)
01/23/04      422,135   407,626    14,509     1.7%
01/27/04      417,089   410,930     6,159     0.7%
02/03/04      411,920   414,596    (2,676)   (0.3%)

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
01/13/04      149,057    90,571    58,486    24.4%
01/23/04      141,107   100,090    41,017    17.0%
01/27/04      143,089    87,828    55,261    23.9%
02/03/04      141,465    81,926    59,539    26.7%

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

Commercials have become significantly more bearish by upping
their short positions and closing some bullish ones.  Small
traders are still feeling optimistic.


Commercials   Long      Short      Net     % Of OI
01/13/04      196,858   263,845    (66,987)  (14.5%)
01/23/04      233,867   307,122    (73,255)  (13.5%)
01/27/04      291,166   334,618    (43,452)  ( 6.9%)
02/03/04      280,519   346,042    (65,523)  (10.5%)

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
01/13/04     191,241     62,711   128,530    50.6%
01/23/04     187,270     57,196   130,074    53.2%
01/27/04     154,485     60,556    93,929    43.7%
02/03/04     133,293     55,476    77,817    41.2%

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


NASDAQ-100

Commercial traders in the NDX remain in limbo with very
little movement over the last few weeks.  In contrast
small traders have become much more bearish.


Commercials   Long      Short      Net     % of OI
01/13/04       41,829     38,547     3,282    4.1%
01/23/04       42,823     39,442     3,381    4.1%
01/27/04       43,704     40,951     2,753    3.3%
02/03/04       43,600     41,441     2,159    2.5%

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
01/13/04        9,705    12,539    (2,834)  (12.7%)
01/23/04        9,180    11,371    (2,191)  (10.7%)
01/27/04       10,137    10,715    (  578)  ( 2.8%)
02/03/04        8,907    13,729    (4,822)  (21.3%)

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

The shuffling continues for commercial traders in the Dow.
Small traders have become more bearish.


Commercials   Long      Short      Net     % of OI
01/13/04       16,501     8,724    7,777      30.8%
01/23/04       16,403     9,252    7,151      27.9%
01/27/04       16,536     8,404    8,162      32.7%
02/03/04       17,765     9,619    8,146      29.7%

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
01/13/04        6,496     9,970   (3,474)   (21.1%)
01/23/04        6,068    10,183   (4,115)   (25.3%)
01/27/04        7,240    12,372   (5,132)   (26.2%)
02/03/04        6,352    13,113   (6,761)   (34.7%)

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

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


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

UST Inc. - UST - close: 36.83 change: +0.40

WHAT TO WATCH: We looked at shares of UST recently in expectation
of a breakout over near resistance at $36.50 and that breakout
occurred today on strong volume.  A pullback to confirm support
above $36 would make for a great entry point, although a break
above $37 should work as well.  Watch for potential resistance
near $38 and then target the 2002 highs in the $40-41 area.




---

PDI Inc. - PDII - close: 31.77 change: +1.80

WHAT TO WATCH: After trolling along just below the $30 resistance
level for more than 2 months, PDII is starting to break out as it
pushed above $31 both of the past two days and held those gains
today.  Use a trigger over $32 and play for a move first to
$34.50 and then a fill of the gap at $38.




---

Affymetrix, Inc. - AFFX - close: 32.92 change: +1.58

WHAT TO WATCH: After being stuck below strong resistance at $30
for the past 2 years, shares of AFFX are finally joining the
bullish party.  The first step was a breakout over $30 in late
January, which the stock followed up with another breakout today.
A pullback to confirm support above $30 would make for an
attractive entry, but at this point it might make sense to chase
the stock higher.  Look for a rally up towards next firm
resistance at $40.




---

Pharm. Product Development - PPDI - close: 31.03 change: +0.41

WHAT TO WATCH: Ever since breaking down in early 2002, PPDI has
been turned back each time it tests the $32 resistance level.
This time things look different though and the stock almost
managed a breakout today with its push close to that level.  Use
a trigger of $32.25 and then target next resistance at $35, with
potential to keep on running to the $37 area.




---

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

HON $36.95 - HON has been looking much better lately, especially
after last month's breakout over the 200-week moving average,
which it subsequently used as support in preparation for the next
bullish move.  That move appears to be underway and the way to
play it is to use a trigger over $37.75 and target next
resistance in the $40-41 area.

XRX $15.26 - Clawing its way out of single-digit status, XRX is
starting to act like a real stock again, having more than tripled
from its 2002 low.  It looks like another breakout is forming
here, with the logical entry trigger being a breakout over $15.40
(just above today's high).  Target a rally to next resistance at
$18, or even a push up towards very strong resistance at $20.

SEBL $14.32 - After being under pressure since early January,
SEBL seems to have found its footing again.  Today's rally over
the 50-dma looked quite strong and we're expecting a run back to
test the January highs near $16.  Use a trigger over today's
high.


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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
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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
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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 02-12-2004
                                                    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
Closed Plays:     None
Stock Splits:     ATVI, HCSG

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


=================================================================
Closed Plays
=================================================================

None


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

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

ATVI scores with a 3-for-2 stock split

After the bell this evening Activision, Inc. (NASDAQ:ATVI)
announced that its Board of Directors had approved a 3-for-2 stock
split of its common shares.

The split, to take form as a 50% stock dividend, will be payable
on March 15th, 2004 to shareholders on record as of February 23rd.
Fractional shares will be paid in cash.


About the company:
Headquartered in Santa Monica, California, Activision, Inc. is a
leading worldwide developer, publisher and distributor of
interactive entertainment and leisure products. Founded in 1979,
Activision posted net revenues of $864 million for the fiscal year
ended March 31, 2003.  (Source: Company Press Release)

---

HCSG cleans up with a 3-for-2 stock split

Less than two hours before the closing bell Healthcare Services
Group, Inc. (NASDAQ:HCSG) announced earnings for its December
quarter and a 3-for-2 stock split.  Revenues were up 20% to $101.5
million.

HCSG's Board of Directors declared a 3-for-2 stock split in the
form of a 50% stock dividend.  The payable date for the split is
March 1st, 2004 to shareholders on record as of February 23rd.
Post-split HCSG will have 16.8 million shares outstanding.


About the company:
Healthcare Services Group, Inc. is the largest national provider
of professional housekeeping, laundry and food services to long-
term care and related facilities. (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

GCI     Gannett Co Inc             88.18     +0.63
CVS     CVS Corp                   38.23     +2.10
AMX     America Movil              35.00     +1.39
ATH     Anthem Inc                 84.53     +1.68
MHK     Mohawk Industries          82.91     +1.01
VFC     VF Corp                    45.05     +0.53

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

AKAM    Akamai Technologies        16.20     +1.03
RYG     Royal Group Tech Ltd       11.36     +1.64
AAI     Airtran Holdings           12.87     +1.13
WITS    Witness Systems            12.23     +1.09
MLT     Metals Usa Inc             12.05     +1.42
ALDN    Aladdin Knowledge Sys      17.00     +1.29

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

UL      Unilever Plc               41.75     +1.20
AET     Aetna Inc                  74.80     +3.20
LTR     Loews Corp                 59.21     +1.96
CMX     Caremark Rx                30.35     +1.13
NWL     Newell Rubbermaid          25.40     +1.00
FDO     Family Dollar Stores       39.39     +1.73
ADVP    AdvancePCS                 64.90     +2.76

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

TOC     The Thomson Corp           32.45     -1.75
COX     Cox Communications         33.00     -1.03
CSC     Computer Sciences Corp     42.87     -3.75
LH      Laboratory Corp            39.85     -4.35
IMCL    Imclone Systems            34.00     -9.10
RMBS    Rambus Inc                 24.35     -5.26
CBI     Chicago Bridge & Iron      28.24     -3.82
DY      Dycom Industries           23.20     -1.84

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

MHP     McGraw Hill Companies      76.63     -3.49
DGX     Quest Diagnostics          83.12     -2.11
IVGN    Invitrogen Corp            77.00     -3.50
STRA    Strayer Education         114.85     -1.96
ARE     Alexandria Real Estate     61.95     -3.20
PKY     Parkway Properties         46.00     -1.41


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