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Daily Newsletter, Wednesday, 04/28/2004

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PremierInvestor.net Newsletter                Wednesday 04-28-2004
                                                    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:  See Note
Watch List:   IMOS, LEXR, ISIL, PMCS

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)


===============================================================
MARKET WRAP  (view in courier font for table alignment)
===============================================================
     04-28-2004            High     Low     Volume Advance/Decline
DJIA    10342.60 -135.56 10476.95 10333.87 2.42 bln    595/2254
NASDAQ   1989.54 - 42.99  2026.44  1958.54 1.96 bln    631/2470
S&P 100   547.54 -  7.78   555.62   547.41   Totals   1226/4724
S&P 500  1122.41 - 15.70  1138.11  1121.70
RUS 2000  577.06 - 13.70   590.76   575.82
DJ TRANS 2947.12 - 26.16  2975.24  2944.50
VIX        16.29 +  1.22    16.54    15.55
VXO        16.76 +  1.78    17.10    16.25
VXN        23.92 +  2.08    24.15    22.26
Total Volume 4,882M
Total UpVol    607M
Total DnVol  4,250M
52wk Highs     147
52wk Lows      257
TRIN          4.12
PUT/CALL      0.88
===============================================================

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

Check the Site Later Tonight For James's Market Wrap Article
http://www.PremierInvestor.net/indexes/marketwrap.asp


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

ChipMOS Technologies - IMOS - close: 8.55 change: -1.07

WHAT TO WATCH: There was little in the way of buying in
Technology stocks on Wednesday and after the drop in recent
weeks, IMOS just couldn't hold off the bears.  The stock broke
down in a big way, shattering prior support at $9.00.  It's a
risky play to chase such a large (-11%) one-day drop, but the
stock does look headed for much lower levels.  Target a drop to
next strong support near $7.00, which is also the site of the
200-dma ($7.12).




---

Lexar Media Corp. - LEXR - close: 10.13 change: -0.29

WHAT TO WATCH: After the earnings disaster of a couple weeks ago,
LEXR has been trying to build a new base near the $10 level, but
that consolidation is on the verge of breaking down.  If the
stock is unable to hold support at today's low, then the next
resting point is probably strong support down at $8.00.  Use a
trigger at $9.90.




---

Intersil Corp. - ISIL - close: 20.88 change: -0.24

WHAT TO WATCH: Semiconductor stocks have been leading the broad
technology weakness and with the SOX closing at critical support
today, a breakdown there, could drag shares of ISIL into a
breakdown of its own.  The stock is desperately trying to hold
support at $20.50.  Buyers stepped up to support the stock at
that level today, but a breakdown below today's low should see
the stock resume its dominant downtrend, with the $18 level
looking like a reasonable target.




---

PMC-Sierra Inc. - PMCS - close: 13.62 change: -0.62

WHAT TO WATCH: Weakness begets more weakness.  After a failed
attempt to regain the $16 level, shares of PMCS did exactly what
we were expecting, breaking down under the $14 level of support.
With volume on the rise as price breaks down, it now looks like
the stock could be headed for stronger support at $12.  A failed
rebound below the 10-dma will provide for the best entries, but
momentum traders can consider chasing the stock lower on a break
below today's low, so long as selling volume remains brisk.




---

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

INTC $26.35 - As the bellwether for the Semiconductor sector,
INTC is not looking healthy.  After rolling over below former
support near $27, the stock is threatening to break down again.
Use a trigger below $25.75 and look for a near-term decline to
$24.  But if the SOX follows suit and breaks down hard, we can't
rule out a precipitous fall towards strong support at $20.  Note
that the PnF chart is currently on a Sell signal with a price
target of $17.

LOW $52.80 - So far, LOW has managed to avoid a significant
breakdown, but with Housing stocks continuing to weaken on
prospects of rising interest rates, the stock looks poised to
break major support.  Use a trigger below $51.50 and target a
drop to strong support in the $47-48 area ahead of the company's
May 17th earnings report.

DLTR $27.71 - After failing to scale stiff resistance at the 50-
dma and 100-dma, DLTR has fallen back to key support near $28,
actually breaking below that level this afternoon.  A continued
drop below today's low can be used for bearish entries, looking
for a drop towards next strong support at $24.


==================
  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

BMY     Bristol-Myers Squibb Co    25.48    +0.76
UNP     Union Pacific Corp         59.89    +0.63
ACE     Ace Ltd                    44.40    +1.19
DGX     Quest Diagnostics Inc      85.25    +0.58
VLO     Valero Energy Corp         64.45    +1.88
AXO     Autozone Inc               88.01    +1.26


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

THOR    Thoratec Corporation       13.20    +1.24
ECLP    Eclipsys Corp              14.08    +2.73
MYK     Mykrolis Corp              14.85    +1.52


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

MHP     Mcgraw-Hill Companies      80.75    +1.31
CSX     CSX Corp                   31.73    +1.36
AHC     Amerada Hess Corp          71.04    +1.43
MUR     Murphy Oil Corp            69.50    +3.18
WAT     Waters Corp                41.62    +2.34


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

AVE     Aventis                    71.52    -2.38
FNM     Fannie Mae                 67.98    -1.89
UN      Unilever N.V.              65.10    -5.19
SNE     Sony Corp                  39.87    -1.68
SNY     Sanofi-Synthelabo (ADS)    29.36    -1.27


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

ENL     Reed Elsevier Nv           27.44    -0.86
SANYY   Sanyo Elec Co Ltd          23.50    -1.10
DF      Dean Foods Co              32.95    -0.65
CELG    Celgene Corp               51.78    -6.46
AOT     Apogent Technologies       31.33    -1.09


=================================================================
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                Wednesday 04-28-2004
                                                    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
=================================================================

In section two:

Stop Loss Adjustments:  None

Active Trader (Non-tech Stocks)
  New Bullish plays:    BJS
  New Bearish Plays:    IGT
  Closed Bearish Plays: UNA


Stock Splits
  Announcements:       ASBC, SFCC


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

None


==================================================================
Active Trader (AT) Non-Tech Stock section
==================================================================

---------
New Plays
---------


  New Bullish Plays
  -----------------

BJ Services - BJS - close: 46.04 change: -1.16 stop: 42.50

Company Description:
BJ Services Company is a provider of pressure pumping and other
oilfield services serving the petroleum industry worldwide. The
Company's pressure pumping services consist of cementing and
stimulation services used in the completion of new oil and
natural gas wells and in remedial work on existing wells, both
onshore and offshore. Other oilfield services include completion
tools, completion fluids and casing and tubular services provided
to the oil and natural gas exploration and production industry,
commissioning and inspection services provided to refineries,
pipelines and offshore platforms and production chemical
services. During the fiscal year ended September 30, 2003, the
Company generated approximately 83% of its revenue from pressure
pumping services and 17% from other oilfield services.

Why we like it:
With the price of crude oil continuing to rally as the summer
driving season approaches, it is no great surprise that we're
seeing continued strength in the Oil and Oil Service stocks.  BJS
delivered investors what they were looking for yesterday, as the
company reported strong revenue growth, beating earnings
estimates by 4 cents.  Additionally, the company gave an upbeat
forecast for the remainder of the year, prompting Robert W. Baird
to upgrade the stock from Neutral to Outperform.  Investors
cheered these developments, driving the stock through strong
resistance at $45 to hit a new all-time high of $47.75.  Chasing
a stock higher right after earnings is always a risky move, as
demonstrated by the stock falling back today in sympathy with the
rest of the market.  This looks like the perfect setup for
bullish entries on a test of old resistance near $45 as new
support.  The PnF chart certainly looks bullish, with yesterday's
move issuing a new Buy signal along with a tentative bullish
price target of $60.

As long as the price of crude continues to push higher, along
with the Oil Services sector (OSX.X), we can look for BJS to
continue its bullish trend.  While aggressive traders can
certainly entertain entries on a breakout to new highs, that
isn't our preferred strategy.  It appears more prudent to wait
for this pullback to run its course and look to buy the dip and
rebound near $45.  For those brave souls that might want to chase
the stock higher, make sure to confirm sector strength with the
OSX breaking out over the March highs near $111.  We'll initially
target a move to the $50 level, but with earnings in the rear-
view mirror, we don't want to rule out the potential for a move
above that psychological level of resistance.  In order to give
the stock room to pull back and bounce from support, we'll set
our initial stop at $42.50, which is well below the 50-dma
($43.27) as well as the bottom of the most recent dip at $42.64.

Annotated Chart of BJS:



Picked on April 28th at     $46.04
Change since picked          +0.00
Earnings Date              4/27/04 (confirmed)
Average Daily Volume =    1.99 mln




  New Bearish Plays
  -----------------

Intl. Game Tech. - IGT - close: 38.89 change: -0.88 stop: 40.75

Company Description:
IGT is a manufacturer of computerized casino gaming products and
an operator of proprietary gaming systems.  The company serves
the casino gaming industry in the United States as well as
manufacturing gaming products in the United Kingdom and through a
third party manufacturer in Japan.  IGT provides gaming products
in every significant legalized gaming jurisdiction in the world.

Why we like it:
Gone are the days where eager bulls jumped at every opportunity
to buy the dips in shares of IGT.  The stock has had an amazing
run since launching higher from the $5 area in early 2000 and it
looks like there is some serious profit taking going on.  After
reporting earnings the stock plummeted under near support at $44,
but it didn't stop there.  No hint of a bounce materialized until
the stock found some buyers near the $38 level earlier this week.
That was good for a brief rebound near the $40 level, but already
the stock is tipping over again.  One look at the PnF chart shows
just how ugly things are for the stock, as it is on a Sell signal
in the wake of the trade at $39 and the bearish price target now
points at $30 as a tentative objective for the bears.

There's still the potential for the stock to find support near
$38 and rebound higher from here, in which case the current Sell
signal on the PnF chart could be shown to be a bear trap.  We
don't want to fall for that trap, so we're going to force the
stock to break to new recent lows before playing by setting our
entry trigger at $38.  Once that level is broken, we can look for
next support near $36.50 and then $34 at the 200-dma ($33.98).
While the PnF chart says $30 is a viable target, we're going to
be a bit more modest and simply target a drop to the 200-dma.
Once IGT trades below $38, we should not see the stock able to
rebound above its initial bounce off the first test of the $38
level.  That means a stop at $40.75 should serve us well.
Aggressive traders will want to enter on the initial break of
$38, while the more conservative approach will be to enter on the
next failed rebound in the $39-40 area.

Annotated Chart of IGT:



Picked on April 28th at     $38.89
Change since picked          +0.00
Earnings Date              4/22/04 (confirmed)
Average Daily Volume =    2.78 mln




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

  Closed Bearish Plays
  --------------------

Unova, Inc. - UNA - close: 18.50 change: -0.46 stop: 21.00

There are few things more annoying than to pick a winning play,
but have to move to the sidelines due to a scheduled news event
out of an abundance of caution.  Such is the world of a
disciplined trader.  UNA finally broke the $19 level last week,
dropped to just above $18 and then rebounded.  That rebound
failed right at the 200-dma/10-dma and the stock is once again
heading south.  Unfortunately, as we've recently mentioned, UNA
is set to release earnings tomorrow and on the off chance that
the market might interpret the news in a bullish manner, we're
following our discipline and dropping the play tonight.  The
stock could very well drop sharply on the news, but it will have
to do so without us.  Clearly, any open positions should have
been closed today.

Picked on April 14th at     $20.02
Change since picked          -1.52
Earnings Date              4/29/04 (confirmed)
Average Daily Volume =       518 K





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

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

ASBC announces a 3-for-2 split

About lunchtime on Wall Street Associated Banc-Corp (NASDAQ:ASBC)
announced that its management had declared a 3-for-2 stock split
and a cash dividend increase at the company's annual meeting.

The cash dividend is being raised to 25 cents per share and
payable on May 21st, 2004 to shareholders on record as of May
18th.  This dividend is payable on post-split shares.

The 3-for-2 stock split is payable on May 12th to shareholders on
record as of May 7th.


About the company:
Associated Banc-Corp, headquartered in Green Bay, Wis., is a
diversified multibank holding company with total assets of $15.5
billion. Associated has more than 200 banking offices serving more
than 150 communities in Wisconsin, Illinois, and Minnesota. The
company offers a full range of traditional banking services and a
variety of other financial products and services.
(source: company press release)

---

SFCC announces a 3-for-2 split

About 30 minutes after the closing bell on Wednesday, SFBC
International, Inc. (NASDAQ: SFCC) announced that its Board of
Directors had approved a 3-for-2 stock split of its common shares
in the form of a 50% stock dividend.

This dividend is payable on June 10th, 2004 to shareholders on
record as of May 10th. Fractional shares will be paid in cash.


About the company:
SFBC International, Inc. is a contract research organization,
providing a range of specialized drug development services to
pharmaceutical, biotechnology and generic drug companies. The
company is a provider of early clinical development services,
specializing primarily in the areas of Phase I and Phase II
clinical trials and bioanalytical laboratory services. SFBC also
provides a range of complementary services to its clients,
including early clinical pharmacology research, biostatistics and
data management, and regulatory and drug submission as well as
Phase III and Phase IV clinical trial management services in
select therapeutic areas.
(source: company press release)


=================================================================
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 (c) 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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