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Daily Newsletter, Monday, 04/19/2004

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PremierInvestor.net Newsletter                   Monday 04-19-2004
                                                    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:  A Quiet Monday as Investors Wait on Greenspan
Watch List:   MYGN, PDLI, HOV, EPIX


===============================================================
MARKET WRAP  (view in courier font for table alignment)
===============================================================
     04-19-2004            High     Low     Volume Advance/Decline
DJIA    10437.82 - 14.12 10451.76 10399.47 1.46 bln   1437/1373
NASDAQ   2020.43 + 24.69  2020.45  1991.14 1.65 bln   1749/1349
S&P 100   555.78 +  0.84   555.94   552.73   Totals   3186/2722
S&P 500  1135.82 +  1.21  1136.18  1129.84
RUS 2000  586.95 +  3.58   587.38   579.17
DJ TRANS 2923.77 - 15.70  2939.65  2911.67
VIX        15.42 +  0.48    16.08    15.33
VXO        15.08 -  0.59    16.11    15.08
VXN        21.40 -  1.15    23.49    21.17
Total Volume 3,446M
Total UpVol  2,182M
Total DnVol  1,224M
52wk Highs     255
52wk Lows       76
TRIN          1.84
PUT/CALL      0.67
===============================================================

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

A Quiet Monday as Investors Wait on Greenspan
by James Brown

The action on Wall Street was rather mild on Monday.  Major
indices traded in a narrow range as investors continue to fret
over higher interest rates despite generally positive earnings
news.  Tech stocks did manage to out perform as the SOX
semiconductor index and the NASDAQ both ended a four-day losing
streak.  The Dow Industrials were weighed down by a decline in
McDonalds (MCD) after its Chairman and CEO Jim Cantalupo died
unexpectedly of a heart attack.  Investors are still focused on
the situation in Iraq as Spain's new socialist Prime Minister
made good on his campaign promise and ordered the country's 1,300
soldiers to return home immediately.  Closer to home many in
America's heartland quietly remembered the ninth anniversary of
the Oklahoma City bombings were 168 people lost their lives.

Global stock markets trended flat to down.  The Japanese NIKKEI
turned in a volatile day with an intraday drop of nearly 180
points before recovering to close down -60 points at 11,764.  The
Chinese Hang Seng, the English FTSE, the German DAX and the
French CAC all closed within nine points of unchanged on the
session.  Here at home the Dow Industrials dropped 14 points to
10,437.  The NASDAQ Composite added 24 points to end back above
the 2000 level and breakout over its 50-dma (2014) to close at
2020.  The S&P 500 added just over 1 point to close at 1135.

Buying was strongest in tech stocks with software, Internets,
semiconductors and biotechs all performing well. Healthcare
stocks also bounced higher after their recent declines.  Boosting
traders interest in technology shares was an upgrade for
chipmaker AMD and news that MSFT had settled an antitrust case
with the state of Minnesota.  Monday's weakest sectors were
airlines, metals and housing stocks.  Homebuilders continue to
feel the heat as mortgage rates have risen sharply and investors
rotate out due to growing concerns that the Fed will feel forced
to raise rates.

Market internals were mixed.  It was an even race on the NYSE as
advancers nudged past decliners 14 to 13.  Up volume outpaced
down volume by a small margin as well on the NYSE.  The NASDAQ
reported more bullish readings with advancers beating decliners
17 to 13 and up volume better than three times down volume.
However, overall volume was pretty light.

Chart of the Dow Industrials:



Chart of the NASDAQ Composite:



This is the busiest week for earnings with 179 companies in the
S&P 500 reporting their first quarter results and dozens more who
are not in the index.  However, even though corporate reports are
coming in fast and furious Wall Street remains focused on Federal
Reserve governor Alan Greenspan's two congressional appearances
this week.  Most of the focus is on his Wednesday 10:00 AM
meeting with the Joint Economic Committee but tomorrow afternoon
he comes before the Senate Banking Committee.  Many market
pundits feel that investors are merely marking time until these
two appearances are through on hopes that Alan will drop some
sort of hint regarding the Fed's outlook on rates.  The recent
string of super-strong economic reports have created a lot of
doubt on just how patient the Fed can afford to wait.

Case in point this morning's Conference Board index of Leading
Economic Indicators rose a predicted 0.3% in March.  Drilling
down into the numbers shows that demand remains strong fueled by
consumers more than happy to spend their tax refunds.  Some
analysts are starting to suggest that the U.S. economy may be
growing faster than the currently forecasted 4.3%.

Speaking of growth there is almost no doubt that McDonald's
Chairman and CEO Jim Cantalupo is responsible for turning around
the world's largest restaurant chain.  Cantalupo had come out of
retirement to save the struggling fast-food giant.  Some of his
accomplishments involved redesigning the menu to provide
healthier choices and axing the supersize menu due to a growing
fervor over America's obesity problem.  He was 60 years old when
he died of a heart attack this weekend.  MCD quickly named COO
Charlie Bell as a replacement CEO and probably saved the stock
from a deeper loss than the 2.5% drop it felt today.

A couple of today's big earnings reports came from Dow-component
MMM and drug giant LLY.  MMM, known for its ubiquitous Post-it
notes and Scotch tape, said worldwide sales reached a record-
breaking $4.94 billion for the quarter.  This beat analysts'
estimates for $4.82 billion.  Earnings came in at 90 cents a
share compared to estimates of 87 cents and 44% higher than
earnings a year ago.  3M's Chairman and CEO James McNerney Jr.
was very upbeat with his comments, "Worldwide sales in local
currencies increased in all seven of our businesses, and we
generated double-digit increases in operating income and earnings
per share. We are off to a great start in 2004."  MMM also raised
its Q2 guidance and its full year guidance.  Unfortunately,
shares of MMM didn't react much to the report.  The stock added 3
cents to $83.76.  I suspect investors are concerned about just
how much the weak dollar influenced those results.  Meanwhile Eli
Lilly Co (LLY) jumped 1.3% to $73.40 after reporting earnings of
70 cents per share, beating analysts' estimates by 4 cents.  LLY,
known for its Prozac antidepressants, saw its numbers boosted by
a fivefold increase in sales of its newly launched ED drug
Cialis, which is jointed marketed by partner ICOS.  Total
revenues rose 17% to $3.38 billion for the quarter.  Investors'
lackluster reaction was probably due to LLY's inline guidance for
Q2 and the year.

Two more high-profile movers today were Dow-component Coca-Cola
(KO) and biotech firm Imclone (IMCL).  Shares of KO surged 2.06%
to a new 18-month high on Wall Street's expectation that the
company will make a bid to steal away Gillette's (G) CEO Jim
Kilts.  KO also released news that it would soon be launching
Coca-Cola C2, a low-carb coke with half the calories and carbs of
regular coke.  The company is due to announce earnings on
Wednesday and estimates for at 44 cents a share.

Imclone Systems (IMCL) jumped almost 12% to $66.30 and fueled a
2.8% rise in the BTK biotech index.  Sparking the move was a
company announcement that the FDA had approved its most recent
filing to review the company's new facility to produce its
headline Erbitux drug.  Not hurting the stock was a "buy" rating
from Bank of America who slapped a $91 price target on IMCL.  Of
course Wall Street was quick to notice that IMCL is now trading
above the level where Martha Stewart and Sam Waksal sold the
stock back in 2001.

Looking ahead to tomorrow we have a HUGE earnings day with well
over a hundred well-known companies reporting their first quarter
numbers.  Some of the headliners are likely to be Dow components
Alria Group (MO), General Motors (GM) and Pfizer (PFE) who all
report before the opening bell.  We'll also hear from telecom
companies Lucent (LU), Motorola (MOT) and Sprint (PCS & FON).
Tuesday will also bring the Chain Store sales numbers and the
Redbook Retail sales numbers.  Plus Fed governor Pinalto will
make an appearance but it will be overshadowed by Greenspan's
afternoon meeting.

Trade carefully.  I would probably look for continued strength in
the NASDAQ tomorrow but watch those stops.


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

Myriad Genetics - MYGN - close: 17.49 change: +0.85

WHAT TO WATCH: MYGN has been stuck in a multi-month consolidation
pattern between $15 and $18.50, but it looks like that pattern
could soon resolve in favor of the bulls.  The stock is moving
sharply higher today, helped along by the strong rally in the BTK
index.  Wait for a break above the top of its range with a trade
at $18.60 before playing and then look for a continued run to
next resistance in the $20-21 area.  Look for earnings to be
released in early May.




---

Protein Design Labs, Inc. - PDLI - close: 25.50 change: +0.73

WHAT TO WATCH: As earnings loom nearer on May 4th, PDLI looks
poised to make another run at a solid breakout, helped along
today by the strong move in the Biotechnology index.  Use a
trigger over the $26.25 resistance and target a move towards
strong resistance near $30.  Use a tight stop at $24, just below
the bottom of the consolidation of the past couple weeks.




---

Hovnanian Enterprises Inc. - HOV - close: 37.78 change: -1.47

WHAT TO WATCH: With bond rates continuing to rise and the Housing
sector looking weak, it just might be wise to try a bearish play
on this heretofore bullet-proof sector.  HOV reported earnings in
early March and the stock has been marching steadily lower ever
since.  Today's negative action has the 200-dma within spitting
distance and a break below there will almost guarantee a test of
key support at $36.  Aggressive traders can target failed
rebounds below $40 for entry, while the more conservative
approach will be to short the breakdown under $35.50.




---

EPIX Medical Inc. - EPIX - close: 23.68 change: +1.41

WHAT TO WATCH: They say the third time's the charm and that was
certainly the case with EPIX, as the stock blasted through its
$23 resistance level on the third attempt, reaching new multi-
year highs today.  This looks like a good point for aggressive
entries, looking for a continued rally up to test the all time
highs in the $26-27 area.  Note that the company is set to
release earnings next Thursday.




---


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

URBN $22.90 - It seems nothing can stop the slide in shares of
URBN, as the stock continues dropping to new multi-month lows,
seemingly on a daily basis.  The stock is nearing strong support
at $22, and if that level gives way, then there's a long way to
fall to next strong support in the $18-19 area.  Use a trigger
below $22 for entry.

MHR $11.10 - It took over a month for MHR to solidify its
breakout over the $10 resistance level, but now the bulls are
picking up steam (and volume), with a breakout to new all-time
highs on Monday.  Momentum entries look favorable, although more
conservative traders may want to try capturing a better entry on
an intraday pullback near the 10-dma.  Look for a continued rally
into the $12.50-13.00 area.


=================================================================
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 2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.





PremierInvestor.net Newsletter                   Monday 04-19-2004
                                                    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 Loss Updates:   IMAX
Split Announcement:  FBTC, LACO, NSM, RBA


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 Updates
==================================================================

IMAX - short
Adjust from $6.05 down to $5.75


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

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

FBTC declares 2-for-1 stock split

Just before noon First BancTrust Corp (NASDAQ:FBTC) announced that
its Board of Directors had approved a 2-for-1 stock split of its
common stock in the form of a stock dividend.

The dividend is payable on May 21st, 2004 to shareholders on
record as of April 30th.

About the company:
First BancTrust Corporation is a holding company that owns all of
the capital stock of First Bank & Trust, S. B., an Illinois-
chartered savings bank that conducts business from its main office
located in Paris, Illinois, and branch offices in Marshall and
Savoy, Illinois. On September 30, 2003, the company had $226
million of total assets, $200 million of total liabilities and $26
million of stockholders' equity. (source: company press release)

---

LACO deals a 2-for-1 stock split

This morning before the opening bell Lakes Entertainment, Inc.
(NASDAQ:LACO) announced that its Board of Directors had approved a
2-for-1 stock split of its common shares, payable in the form of a
100% stock dividend.

The dividend is payable on May 3rd, 2004 to shareholders on record
as of April 26th.  Post-split LACO will have approximately 22.2
million shares outstanding.

About the company:
Lakes Entertainment, Inc. currently has development and management
agreements with four separate Tribes for four new casino
operations, one in Michigan, two in California and one with the
Nipmuc Nation on the East Coast. Lakes Entertainment also has
agreements for the development of one additional casino on Indian-
owned land in California through a joint venture with MRD Gaming,
which is currently being disputed by the Tribe. Additionally, the
Company owns approximately 80% of World Poker Tour, LLC, a joint
venture formed to film and produce poker tournaments for
television broadcast. (source: company press release)

---

NSM declares 2-for-1 stock split

This afternoon after the market's closing bell National
Semiconductor Corp (NYSE:NSM) 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% stock dividend and is payable
on May 13th, 2004 to shareholders on record as of April 29th.

About the company:
National Semiconductor, the industry's premier analog company,
creates high performance analog devices and subsystems. National's
leading-edge products include power management circuits, display
drivers, audio and operational amplifiers, imaging sensors and
data conversion solutions. National's key markets include wireless
handsets, displays, PCs, networks and a broad range of portable
applications. With headquarters in Santa Clara, California,
National reported sales of $1.67 billion for fiscal 2003, which
ended May 25, 2003. (source: company press release)

---

RBA declares 2-for-1 stock split

This morning before the opening bell Ritchie Bros. Auctioneers
Inc. (NYSE:RBA) announced that its shareholders had approved a 2-
for-1 stock split of its common shares.

RBA is traded on both the NYSE and the Toronto Stock Exchange.
The stock will begin trading post-split in Toronto on April 30th,
2004 and begin trading post-split in New York on May 7th.  The
shareholder record date will be May 4th.  After the split RBA will
have 34 million share outstanding.

About the company:
Ritchie Bros. is the world's largest auctioneer of industrial
equipment, operating through over 90 locations in more than 20
countries around the world. The Company sells, through unreserved
public auctions, a broad range of used and unused industrial
equipment including equipment utilized in the construction,
transportation, mining, forestry, petroleum, marine and
agricultural industries. (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

NOK     Nokia Corp (ADS)           15.30    +0.69
MO      Altria Group Inc           56.45    +0.55
E       Eni Spa (ADS)             104.71    +0.61
CAJ     Canon Inc (ADR)            50.69    +0.58
NXTL    Nextel Communcations A     25.00    +1.08


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

DDS     Dillard's Inc              18.43    +1.04
MUSA    Metals USA Inc             16.25    +1.90
ENER    Energy Conversn Devices    12.07    +1.09
MXWL    Maxwell Technologies       17.43    +1.16


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

KO      Coca-Cola Co               53.00    +1.07
LXK     Lexmark International      96.16    +2.31
IMCL    Imclone Systems Inc        66.30    +7.03
GTK     Gtech Holdings Corp        63.25    +2.49
CME     Chi Mercantile Exchange   114.76    +4.78


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

G       Gillette Company           38.25    -1.57
SEIC    SEI Investments Company    30.25    -1.70
PBCT    Peoples Bank Bridgept Ct   43.92    -1.58
CYH     Community Health Systems   24.82    -2.02
BOKF    BOK Financial Corp         39.97    -1.14


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

RHD     R.H. Donnelley Corp        46.87    -0.48
SWIR    Sierra Wireless Inc        34.29    -7.87


=================================================================
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 2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.





DISCLAIMER

Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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