PremierInvestor.net Newsletter Thursday 03-11-2004 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: Market Terror Market Sentiment: Running for the 200-dma Watch List: LLL, BDK, KRON, WYE ================================================================= MARKET WRAP (view in courier font for table alignment) ================================================================= 03-11-2004 High Low Volume Adv/Dcl DJIA 10128.38 -168.50 10321.41 10120.38 2.36 bln 756/2516 NASDAQ 1943.89 - 20.30 1982.58 1943.89 2.18 bln 876/2276 S&P 100 544.16 - 8.64 554.14 543.63 Totals 1632/4792 S&P 500 1106.79 - 17.10 1125.96 1105.87 W5000 10821.48 -157.90 11004.68 10814.88 SOX 473.84 - 2.50 487.19 473.61 RUS 2000 568.74 - 6.27 581.02 568.70 DJ TRANS 2796.00 + 7.50 2848.01 2783.48 VIX 20.67 + 2.00 20.69 17.63 VXO (VIX-O)21.71 + 2.91 21.71 18.35 VXN 26.58 + 0.53 26.68 25.48 Total Volume 5,006M Total UpVol 918M Total DnVol 3,969M Total Adv 1869 Total Dcl 5430 52wk Highs 170 52wk Lows 46 NasTRIN 1.08 TRIN 2.41 PUT/CALL 1.20 ================================================================= =========== Market Wrap =========== Market Terror The terrorist attack in Spain that killed 192 and injured over 1400 bombed our markets as well. The indexes opened down but well off the overnight reaction lows. After an attempt to rally that lasted until after 2:00 bad news sent them down again. Dow Chart - daily Nasdaq Chart - Daily The second news blow came when Spain reported that a van with explosives had been linked to the bombings and there were Arabic tapes in the van with verses from the Koran. Shortly after that sound bite Reuters broke a news story from England saying Al Queda had claimed responsibility for the bombing in a letter to a newspaper. The letter reportedly claimed a similar attack was imminent in the United States. Traders hit the sell button and the bottom dropped out of the market at 2:30. American officials were quick to point out that Al Qaeda does not normally claim responsibility for attacks and suggested the letter was bogus and designed to shift blame from the real suspects. The markets did not care and fear became the motivator into the close. The morning economics did not help market sentiment with Retail Sales coming in flat for February once autos were removed. Department stores held their own but drug stores, grocery, sporting goods and furniture stores all declined. Rising energy prices were blamed for robbing consumers of cash available for discretionary purchases. Import prices rose +0.4% and export prices rose +0.6%. Analysts said the falling dollar, higher commodity prices and higher energy prices were blamed. Consumer goods remained unchanged with autos and parts up +1.0%. This was not a factor in today's market. Jobless claims continued to fall at 341,000 and continuing claims fell to a post-recession low of 3.032 million. This is good news but it was overshadowed by the global events. The very slow drop in claims continues to show there is no pickup in hiring but as we all know jobs are a lagging indicator in a recovery. At least that is what they keep telling us as an excuse for no jobs. Greenspan said today that jobs will pickup soon because he is continuing to see increasing signs of a pickup in the economy. Somebody get him a new speech. It was not economics that tanked the markets today but the terrorist attack. The markets actually rebounded off their overnight lows when news of the bombing first hit. The blame was first placed on the Basque separatist group, ETA, and the markets shook off the news thinking it was an internal matter for Spain. The Dow rallied back from the morning low of 10228 by nearly +100 points to 10321 before the van was found. That announcement knocked -55 points off the index but it again rebounded when authorities said there was nothing conclusive in the evidence. The news that caused the implosion was the Al Qaeda letter claiming another attack was imminent. "We bring the good news to Muslims of the world that the expected 'Winds of Black Death' strike against America is now in its final stage...90 percent (ready) and God willing near," the letter said. The al-Quds al-Arabi newspaper received similar letters from the same brigade claiming responsibility on behalf of al Qaeda for a November bombing of two synagogues in Turkey and the August bombing of the U.N. headquarters in Baghdad. This was the kiss of death for the struggling rebound. France also announced they were raising the terrorist threat level on all public transportation. The damage to US markets was severe. The Dow had held above the 100dma at 10218 all morning but after the Al Qaeda news blew right through that level and barely blinked as it passed 10200. Were it not for time expiring on the clock we might have broken 10100 as well with the close at 10128. This is a major blow to any bullish sentiment still remaining. In four days the Dow has dropped over -500 points with -168 of those being lost today. Since the market high of 10753 on Feb-19th the Dow has lost -5.8%. It has been 19 months since we have had a 5% correction and we normally have 2-3 per year. The Nasdaq dropped nearly -40 points from the afternoon high and closed at 1944 after the Al Qaeda news. This is below all the averages except for the 200dma which is still quite a ways off at 1873. However, since the Nasdaq high on Jan-26th the Nasdaq has lost -209 points or -9.7% and is very close to the benchmark -10% range. This is a huge change in investor sentiment despite continued upgrades to earnings estimates. The next major support is at 1900. Now that we are out of our Jan/Feb trading range and have broken all short term support where are we going? We have officially lost the required five percent to be recognized as a real dip and the Nasdaq is very close to -10%. In theory we are due for a rebound. In practice we could easily hit Dow 10000 and Nasdaq 1900 with any additional negative news. Fears of another attack on U.S. soil sent the VXO back to near 22 from its low of 14.09 last Friday. This is a major fear reversal. It rose nearly three points today alone. Before I tackle the forecast there was some good news today. Declining volume beat advancing volume better than 4:1. Decliners were 3:1 over advancers. Volume spiked to over 5.0 billion shares and the biggest day since Jan-29th. The majority of this volume came in the last hour and it could be seen as a news washout. A potential capitulation day when considering it came at the end of an already oversold condition. There was also some positive stock news, which was ignored due to terrorist concerns. GE affirmed estimates today and said they were continuing to see an increase in global growth. GE fell -0.68 on the day but it failed to break its 200dma. This is huge support on GE and it should be very difficult to break without any major external event. The addition of the $3.8 billion in new shares has been weighing on GE but the 42 million shares traded today may have put an end to that pressure. Intel has already broken its 200dma from last weeks lowered guidance but it closed right at strong support today at $27 that dates back to September. Intel traded 98 million shares but only fell -.23 cents. This could be a bottom for Intel. Also at critical support levels is Microsoft which closed at $25 and very strong support. MSFT traded 90 million shares and only fell -.28 cents. Dell actually gained +.74 cents today and this was the third day of an uptrend by Dell. It is back over $32 support. The SOX turned in an amazing display of strength with a loss of only -2.45 and a solid grip on the support at 475. Just another indication that maybe we are too oversold. SOX Chart - Daily National Semi announced a $400 million stock buyback and made positive comments about orders and margins for the current quarter. Altera announced their mid quarter update after the bell and said it expected revenue growth at the high end of its previous estimates. Oracle reported earnings after the bell and said software license growth was up +13%. Yellow Roadway said first quarter business was booming and the stock jumped +10% and helped keep the transportation index in positive territory despite the broad market crash. First call said earnings estimates for the first quarter had climbed to +14.9% growth from +13.4% just a couple weeks ago. Earnings are growing despite the worry over the economy. Fannie Mae said rates have fallen so low that they expected a fourth consecutive year of record home sales and increased their estimates by +100,000 homes for the year. They said demand was so strong and inventory so low that housing prices should rise +7.4% in 2004 after a similar +7.5% gain in 2003. 30-year rates dropped to 5.41% and the lowest since July-2003. Good news was breaking out all over and many of the major players are holding at strong resistance. The challenge for the day was clearly terrorist related and it may have been a market blessing in disguise. It forced us to lower levels and flushed another billion shares of volume that we probably would not have seen. Tomorrow is light on economic reports with Business Inventories and Consumer Sentiment. Inventories could be a challenge but it is not expected to be a market mover. A positive surprise could be a good sentiment boost. Unfortunately Consumer Sentiment is likely to come in lower once again. The election mud slinging on the economic outlook could again drop the numbers. Fortunately this week's terror event, the market drop, Intel guidance and the Jobs report all occurred after the majority of polling took place. The next report is the one to worry about. Now back to the forecast. The potential is very good for a strong move on Friday as opposed to a sideways consolidation day. The more the press plays the official doubt about the Al Qaeda letter the more it will be seen as somebody trying to shift blame and a non event. The markets are VERY oversold. -507 points for the Dow in three days is completely out of character for the current economic conditions. The two options I see for Friday look like this. Depending on the terror news coming out overnight we could see another day of losses as weekend event risk looms large on investors minds. One more strong decline could take the Dow closer to 10000 and the Nasdaq to 1900. Both of these levels are very strong support. While this is a possibility I think it would take some strong news from overseas to push us over the edge. The other option would be a rebound based on the lack of any new negative news and the very oversold conditions. While I would like to think this was the direction we will go I have to be realistic. I thought today would be a rebound day but the terror news killed that process after lunch. Investors have to be thinking bargain hunting after the drop on no real change in economics. It was just time to rest. Once this weeks drop begin to accelerate it took on a life of its own as they sometimes do and rapidly overshot the expected targets. Just as the bulls headed back into the market the terror news hit them in the face. If you are thinking bargain hunting tonight then you are also thinking about the weekend. Is there risk or not? I vote no because people are more concentrated on work days and make better terror targets. However my vote does not count. This fear of weekend event risk could keep traders from bargain shopping until Monday. This suggests any rebound on Friday could be muted. To get more specific I would expect a potential dip at the open on any overseas news. I would expect the dip to be bought depending on the severity of the news. Midday could be flat as traders weigh their weekend risk. The close could be interesting. Traders wanting to finish dumping stocks to avoid the weekend and start with a clean slate on Monday could be countered by strong short covering from those wanting to lock in profits from the big drop. Never a dull moment and never a clear answer. Personally I would spend Friday looking for bargains and wait for signs of strength on Monday to go buy them. Cash is a position. A week ago I was lamenting the fact we were trapped in a trading range with no material movement. The first chart below was one I showed last Thursday. Wish we were still home on the range. Dow Chart - 45 min Dow Chart - 45 min Enter Passively, Exit Aggressively. Jim Brown Editor =============================== Market Sentiment =============================== Running for the 200-dma - J. Brown Investor sentiment has turned sour pretty quickly this week. The terrorist bombings in Spain this morning have created an entire new set of concerns that has traders running for the door to capture profits before they're gone. The Industrials appear headed for a test of support at the 10,000 level, the NASDAQ toward 1900 and the S&P 500 toward the 1100 mark. Odds are that at these round-number psychological levels we'll see a slow down in the sell-off and give the indices a chance for an oversold bounce. This week's declines have sent several sectors careening through support and almost everything appears headed for its simple 200- dma. One of the leaders in this sell-off is the Dow Transports, which performed a beautiful failed rally under the 2850 mark and closed under the 2800 level. Its 200-dma isn't far away so the Transports could find support near 2740. Tech sectors like the GHA hardware index, the GSO software index, the INX Internet index and the SOX semiconductor index are all falling steadily toward their 200-dma's. The DDX disk drive index is already under its 200-dma while the NWX networking index still has plenty of room left to fall. The financial sector, which had been a bulwark of strength for the markets, has finally succumbed to profit taking. Both the BKX banking, BIX banking and XBD broker-dealer indices have fallen below their simple 50-dma's. Joining them in their flight below the 50-dma is the IUX insurance index, which appears to have painted a double-top in February and March. One of the worst performers this week is the DRG drug index, which has plummeted from the 340 level to its 200-dma near 325 (that's a big move for the DRG) in just four days. So much for investors returning to traditional defensive plays like drug stocks. One might have expected the defense sector to trade higher today on the bombing news but not so. The DFI is following the market down four days in a row. Both General Dynamics and Northrop Grumman have turned in very weak performances this month. Of course airline stocks took the brunt of the impact from the terrorist event and dropped 3.41% on top of this week's earlier losses. The market internals have been very bearish with massive amounts of decliners over advancers. Today follows yesterday's numbers with losers outnumbering winners 3-to-1 on both exchanges. Down volume has been excessive the last couple of days with down volume 3-to-1 and even 6-to-1 (like today on the NYSE). Total volume was pretty heavy at more than 2.2 billion on each exchange. ----------------------------------------------------------------- Market Averages DJIA ($INDU) 52-week High: 10753 52-week Low : 7416 Current : 10128 Moving Averages: (Simple) 10-dma: 10504 50-dma: 10551 200-dma: 9753 S&P 500 ($SPX) 52-week High: 1163 52-week Low : 760 Current : 1106 Moving Averages: (Simple) 10-dma: 1143 50-dma: 1137 200-dma: 1049 Nasdaq-100 ($NDX) 52-week High: 1559 52-week Low : 946 Current : 1402 Moving Averages: (Simple) 10-dma: 1455 50-dma: 1493 200-dma: 1371 ----------------------------------------------------------------- Volatility indices continue to soar for the second day in a row suggesting this correction is "for real" this time. They've all broken their descending trendline of lower highs. CBOE Market Volatility Index (VIX) = 20.67 +2.00 CBOE Mkt Volatility old VIX (VXO) = 21.71 +2.91 Nasdaq Volatility Index (VXN) = 26.58 +0.53 ----------------------------------------------------------------- Put/Call Ratio Call Volume Put Volume Total 1.20 911,050 1,097,093 Equity Only 0.96 675,246 645,835 OEX 1.14 63,747 72.514 QQQ 5.88 38,151 224,452 ----------------------------------------------------------------- Bullish Percent Data Current Change Status NYSE 73.7 - 2 Bull Confirmed NASDAQ-100 43.0 - 8 Bear Confirmed Dow Indust. 80.0 - 6 Bull Correction S&P 500 79.6 - 5 Bull Correction S&P 100 84.0 - 3 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: 2.11 10-dma: 1.57 21-dma: 1.29 55-dma: 1.09 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 678 829 Decliners 2173 2233 New Highs 55 42 New Lows 14 19 Up Volume 312M 554M Down Vol. 1984M 1562M Total Vol. 2324M 2214M M = millions ----------------------------------------------------------------- Commitments Of Traders Report: 03/02/04 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 In spite of a decrease in long positions by Commercial traders they still remain relatively neutral on the large S&P contracts. Small traders remain steadfastly bullish. Commercials Long Short Net % Of OI 02/10/04 412,217 414,044 (1,827) (0.2%) 02/17/04 416,148 415,278 870 0.0% 02/24/04 417,490 416,502 988 0.0% 03/02/04 411,932 418,936 (7,004) (0.1%) 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 02/10/04 143,496 80,362 63,134 28.2% 02/17/04 141,533 84,227 57,306 25.3% 02/24/04 141,559 85,171 56,388 24.9% 03/02/04 148,383 84,135 64,248 27.6% 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 did put some money to use this last week and we see an increase in long positions but they remain net bearish. In contrast small traders reduced their longs and upped their shorts but remain net bullish. Commercials Long Short Net % Of OI 02/10/04 297,601 356,630 (59,029) ( 9.0%) 02/17/04 296,313 371,703 (75,390) (11.3%) 02/24/04 320,425 387,255 (66,830) ( 9.4%) 03/02/04 344,805 395,112 (50,307) ( 6.8%) 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 02/10/04 110,480 58,428 52,052 30.8% 02/17/04 144,014 64,391 79,623 38.2% 02/24/04 129,894 63,524 66,370 34.3% 03/02/04 119,382 67,453 51,929 27.8% Most bearish reading of the year: (77,385) - 09/02/03 Most bullish reading of the year: 449,310 - 06/10/03 NASDAQ-100 Not much change here in Commercial traders' positions. and the same can be said for the small traders. Commercials Long Short Net % of OI 02/10/04 44,406 40,439 3,967 4.7% 02/17/04 46,104 40,385 5,719 6.6% 02/24/04 47,266 40,452 6,814 7.8% 03/02/04 49,959 41,059 8,900 9.8% 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 02/10/04 9,906 13,018 (3,112) (13.6%) 02/17/04 9,630 12,338 (2,708) (12.3%) 02/24/04 12,388 7,310 5,078 25.8% 03/02/04 11,605 7,128 4,477 23.9% 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 Commercial traders remain asleep in the Dow futures with almost zero change and small traders are following suit. Commercials Long Short Net % of OI 02/10/04 21,764 11,974 9,790 29.0% 02/17/04 24,451 12,907 11,544 30.9% 02/24/04 27,176 13,918 13,258 32.3% 03/02/04 27,594 14,166 13,428 32.2% 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 02/10/04 6,267 14,220 (7,953) (38.8%) 02/17/04 6,768 15,623 (8,855) (39.5%) 02/24/04 6,509 14,919 (8,410) (39.2%) 03/02/04 6,898 15,874 (8,976) (39.4%) 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 --------------------------------- Adobe Systems Inc. - LLL - close: 52.69 change: -0.91 WHAT TO WATCH: LLL has finished consolidating its initial drop from the February highs and the consolidation is breaking to the downside, with today's drop under the 50-dma and just barely holding onto horizontal support at $52.50. Use a trigger under $52.25 and target a continued drop towards the 200-dma near $48. Watch for potential support at $50 on the way down. --- Black & Decker Corp. - BDK - close: 51.05 change: -1.45 WHAT TO WATCH: Completing its recent double top formation today, BDK plunged through the 50-dma and took out the late February lows on expanding volume. While there is the possibility of support appearing near $50, with the stock now showing bearish Stochastics divergence, it looks like there's substantially more downside in store. Use a trigger below $51 and target a drop to the 200-dma, which is near strong support at $46. --- Kronos Inc. - KRON - close: 32.25 change: -1.48 WHAT TO WATCH: KRON has spent the past 8 months building a broad topping formation, with support consistently being found in the $33-34 area. That support was shattered today, with the stock's plunge through the bottom of the range. It is unlikely that the decline will continue without a bounce first, so using a failed bounce below $34 (which should now be resistance) looks like a great bearish entry. Target a drop to $27 and possibly $25 support and use a stop just over the 30-dma. --- Wyeth - WYE - close: 37.58 change: -0.89 WHAT TO WATCH: In defiance of the strength in the broad market and even the DRG index in recent months, shares of WYE have been posting one lower high after another. The past month has seen the stock continuing to decline and today's selloff down to key support at $37.50 has the stock on the verge of a fresh breakdown. Use a trigger under $37.50 and look for a continued decline to strong support near $32, near the lows from October of 2002. --- =================== On the RADAR Screen =================== RFMD $8.80 - In the wake of the mid-January selloff, shares of RFMD have been treading water, using the 200-dma as support, as the 50-dma has acted as resistance. The 50-dma won the volley today, as price broke below the 200-dma and the stock closed just above key support. Use a trigger at $8.50 and look for a continued decline down to strong support near $7. SANM $10.93 - Breaking down from its recent consolidation above $12, SANM is really picking up some speed to the downside and the bears have their sights firmly set on the 200-dma, just over $10. That may turn out to be just a speed bump on the way to stronger support in the $8-9 area though. Use a trigger below today's low and ride the stock as low as it will go. GLW $11.02 - The bullish channel that has been supporting GLW for the past many months finally broke to the downside on Thursday, with volume surging over 22 million shares. A failed test of the bottom of the channel near $12 would be an ideal entry into the reversal of this bullish trend. Look for an initial decline down to test the 200-dma, just over $10. ================================================================= 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 Thursday 03-11-2004 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: ARO, CRDN 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 ------------- ARO announces 3-for-2 split 25 minutes after the market's closing bell Aeropostale, Inc. (NYSE:ARO) announced that its Board of Directors has approved a 3- for-2 stock split in the form of a stock dividend. The distribution date (payable date) for the split is April 26th, 2004 for shareholders on record as of April 12th. Post-split ARO will have 56.9 million shares outstanding. The company also raised its stock buyback program from $35 million to $70 million. About the company: Aeropostale, Inc. is a mall-based specialty retailer of casual apparel and accessories that targets both young women and young men aged 11 to 20. The company provides customers with a selection of high-quality, active-oriented, fashion basic merchandise in a high-energy store environment. The company maintains complete control over the proprietary brand by designing and sourcing all of its own merchandise. Aeropostale products can be purchased only in its stores, which sell Aeropostale merchandise exclusively. The first Aeropostale store was opened in 1987. The company currently operates 462 stores in 41 states. (Source: Company Press Release) --- CRDN announces 3-for-2 split This morning a couple of hours before the opening bell Ceradyne, Inc. (NASDAQ:CRDN) announced that its Board of Directors had approved a 3-for-2 stock split of its common stock in the form of a 50% stock dividend. The dividend will be payable (distributed) on April 7th, 2004 to shareholders on record as of March 30th, 2004. Fractional shares resulting from the split will be paid in cash. Post-split CRDN will have 15.9 million shares outstanding. About the company: Ceradyne develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel and commercial applications. (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 TK Teekay Shipping Corp 64.82 +0.93 HOV Hovnanian Enterprises 87.55 +0.55 RKY Adolph Coors Co 66.50 +0.99 PRX Pharmaceutical Resoureces 59.96 +0.60 ZQK Quiksilver Inc 21.95 +1.68 INVN Invision Technologies 41.58 +0.55 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- BONT Bon-Ton Stores Inc 14.45 +1.58 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- TGT Target Corp 44.65 +2.92 YELL Yellow Roadway Corp 32.61 +2.84 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- KO Coca-Cola Co 48.20 -1.70 NVS Novartis Ag Ads 42.31 -1.36 PHG Koninklijke Phillips Elec 28.00 -1.05 ERICY LM Ericsson 26.58 -1.73 ITW Illinois Tool Works 73.43 -1.36 GM General Motors 44.89 -1.19 CCL Carnival Corp 42.48 -1.93 BBY Best Buy Co 47.30 -1.20 OMC Omnicom Group 75.40 -1.73 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- MO Altria Group Inc 56.35 -2.09 GDT Guidant Corp 68.23 -2.03 NCC National City Corp 35.29 -0.91 CMX Caremark Rx 32.58 -0.82 PBG Pepsi Bottling Group 28.44 -0.75 MGG MGM Mirage Inc 43.63 -0.72 TMK Torchmark Corp 51.42 -0.94 ================================================================= 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.
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