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Daily Newsletter, Tuesday, 06/01/2004

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PremierInvestor.net Newsletter                  Tuesday 06-01-2004
                                                    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:      Resistance Test, Again
Watch List:       Saved By The Bell
Market Sentiment: Market Unshaken

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
      06-01-2004           High     Low     Volume   Adv/Dcl
DJIA    10202.65 + 14.20 10214.57 10134.86 1.45 bln 1614/1529
NASDAQ   1990.77 +  4.00  1991.29  1972.71 1.44 bln 1658/1412
S&P 100   545.11 -  0.02   545.93   541.17   Totals 3272/2941
S&P 500  1121.24 +  0.56  1122.32  1113.32
W5000   10940.08 + 13.70 10949.15 10863.84
SOX       486.05 -  2.80   490.07   481.48
RUS 2000  572.49 +  4.21   572.76   566.64
DJ TRANS 2963.50 + 15.50  2965.10  2940.75
VIX        16.30 +  0.80    16.96    16.19
VXO (VIX-O)16.67 +  0.85    17.60    16.47
VXN        22.57 +  1.24    23.58    22.51
Total Volume 3,164M
Total UpVol  1,503M
Total DnVol  1,621M
Total Adv  3662
Total Dcl  3363
52wk Highs  180
52wk Lows    57
TRIN       1.15
NAZTRIN    1.15
PUT/CALL   0.93
=================================================================

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

Resistance Test, Again
by Jim Brown

For the third consecutive day the indexes rebounded back to
strong resistance and failed to breakout. However, after the
afternoon dip to initial support we should be grateful for
any rebound back to resistance. For all practical purposes
this was just another holiday with volume only 3.1B shares
across all markets. This was only about 200 million shares
over the 2.9B shares traded on Friday when everyone left
early.

Dow Chart - Daily


Nasdaq Chart - Daily




The big news for the morning was the ISM report which at
62.8 beat consensus estimates of a decline to 62.0 from
last months 62.4. This was a strong report that stretched
the string to seven consecutive months over 60. Anything
over 50 is considered to be an expanding economy. It has
been vacillating in the 62+ range since October's 57.1
reading. The ISM shows that the economy is maintaining its
rebound although not surging ahead. Strong steady growth
and not necessarily inflationary. Production components did
drop slightly with New Orders falling to 62.8 from 65 and
Backlog to 63.0 from 66.5. The biggest surprise was the
employment component which jumped from 57.8 to 61.9 and
suggests the Jobs number on Friday could be as much as
+100,000 over prior estimates. 36% of firms said hiring
was up while only 7% said jobs were still shrinking. The
employment component is nearing a three-year high and a
good indication of how strong the gains were.

The employment jump sent analysts back to their calculators
to reconsider the 223,000 consensus estimate for Friday's
Jobs report. Only 3 of 66 economists polled had expected
Friday's Jobs to be +300K or more. Today's ISM suggests
that consensus could be 100K short and increases the risk
the Fed could react early to a blowout number. The markets
retreated on this risk until late in the afternoon but a
late day buy program pushed the indexes back to resistance.
With the positive ISM and the expected positive Jobs report
a Fed rate hike on June 30th is almost a lock. The Fed funds
futures jumped from last weeks 92% chance of a hike to 98%
after today's data. Futures are still predicting a 100-point
increase in rates before year end.

The Challenger Layoff report showed that layoffs remained
low at 73,368 for May. This was only slightly above the
72,180 for April and confirms the ISM component above.
Challenger also said they saw additional hiring of 55,000
for the month. They did not previously track hiring trends.
This was the fourth month layoffs remained in the low 70K
range and should be lower except for higher commodity
prices. With prices soaring, doubling in some cases,
manufacturers are still looking for ways to cut costs and
are using increased productivity to trim the work force.
With employee benefits rising almost as fast commodity
prices any chance to reduce the head count is quickly
seized. In many cases employers are terminating workers
only to hire them back as contractors to avoid paying the
benefits. This counts as a technical layoff but does not
impact the workforce. Small companies are leading the
hiring and large companies are continuing to cut workers.
The retail sector had the highest cuts at 10,868 layoffs
with the financial services sector next at 6,113.

Construction Spending soared over three times consensus
estimates with a +1.3% gain in April. March was also
revised up sharply from +1.5% to +2.4%. Much of the gains
were in single family homes but the biggest jump was +5.4%
in Health Care buildings. Over the last three months that
component has averaged +4.63%. The coming baby boomer
retirement cycle has hospital and medical center building
on steroids. As mortgage rates climb the single family
component, +1.2% this month, will begin to decline. The
manufacturing sector dropped -6.1% in April following a
-3.6% drop in March. No need for buildings if your work
is outsourced overseas.

There are no material economic reports for Wednesday.

The World Semiconductor Trade Statistics boosted its 2004
forecast to 28.4% growth from 19.4% it predicted last Oct.
According to WSTS the first quarter has demonstrated
stability and consistency across all regions and major
product lines. Unfortunately the future is not bright
forever. They see only +8.5% growth for 2005 and no growth
for 2006. They do expect a recovery cycle in 2007 with +10%
growth. Obviously these estimates are subject to change
but they do confirm to estimates by others for 2005/2006.

The SOX lost ground on the news after trading at 490
resistance early in the day. Investors will be able to
get an inside look a one portion of the sector on Thursday
when Intel provides its mid quarter update. Some analysts
think PC sales may not be tracking the normal seasonal
down trend and could show some strength. Others think
the trend is weaker than expected based on comments from
Dell and HPQ and expect Intel to lower estimates. Both
camps think the estimates will remain in the prior range
Intel offered but to the low side.

KB Homes said today that quarterly sales rose +27.7% for
their quarter ending May-31st. They said very strong growth
of +58% in the Central and Southeastern U.S. offset a -18%
decline on the West Coast. Orders in France rose +30%.
With mortgage rates rising this trend should moderate
but moderate to what? This very strong growth has yet
to show signs of failing despite the slow down on the
West Coast.

Heading the news today was the terrorist attacks in Saudi
Arabia. 22 were killed and was the second recent attack
on oil assets there. Oil futures hit a new high of $42.40,
up +3.30 from last Thursday's $39 dip low. The futures
went out near the high of the day despite a pending OPEC
meeting. OPEC will meet again on Thursday to discuss
quotas. Rumor has it that they will increase production
quotas by as much as +10%. Unfortunately there is not
likely to be an increase in actual output. OPEC producers
are already exceeding quotas to capitalize on the high
prices. The move by OPEC to "legitimize" this production
by raising the quotas is meant to regain some level of
"control" in the market. If all your members are producing
more than your established quota and you can't make them
stop then make a big show of raising quotas to "stabilize"
prices and try to get some benefit from the current
situation. Even with OPEC saying they will raise
production as much as possible to stabilize prices, in
reality only Saudi Arabia has the ability to produce more
than they are currently delivering. Most believe this
would be two million barrels per day maximum and likely
much less depending on how much they are already cheating.
Bottom line - don't expect oil prices to be substantially
lower any time soon.

The higher oil prices helped to depress the markets in the
morning as prices rose over $42. The Dow rose to 10214 and
just under the 10220 resistance that stopped the advance
last week. Sellers appeared immediately and the slide began.
I say slide rather than drop because it was a slow, leisurely
decline on very low volume. Every round number touched became
alternating support then resistance until 10140 was reached.
Buyers did not rush in but they did provide a bottom that
lasted nearly an hour before a strong buy program hit. That
program added +1100 issues to the A/D line and pushed the
Dow from 10150 to 10210 once again while dazed day traders
watched in surprise. Strong program trades seldom start
after 3:PM much less 3:30 but that buy program probably
rescued the Dow from testing 10100 once again. The internals
were negative and oil/rate news was filling the airwaves.

The Nasdaq had started out battling 1990 resistance after
the ISM and then fell sharply to support at 1975 by 11:30.
After a midday bounce it retested that support at 2:30 and
then after a successful retest took part in the afternoon
bounce. The Nasdaq ended right back at 1990 resistance at
the close. It was a complete round trip day on both the
major indexes.

The challenge is still the current resistance levels that
have held for three days on low volume. Those levels are
10220, 1990 and SPX 1122. With the Jobs report due Friday
and now expected to be even stronger the Fed is almost
sure to hike rates on June-30th. Everyone says a Fed rate
hike will produce a rally because it confirms the recovery
and the beginning of a Fed rate hike process. The uncertainty
factor will be removed. While I think this is all a bunch
of bull from those who want to be bullish it could produce
the desired impact.

The key point for us is the clear trigger level. Those are
the resistance levels I defined above. Should we move over
those levels on strong volume then we could easily move
higher to the next resistance at 10325, 1135, 2025 before
the Jobs report. Each level higher will become more
difficult until that Jobs report is released. It still
represents uncertainty. Far too many times we have seen
Jobs numbers surprise and not always in the way we expect.

I would not be surprised to see us stagnate here as the
days count down to June-30th. Tech traders will also be
afraid of the Intel news on Thursday. Intel traded down
today after two weeks of gains. Traders are taking profits
rather than hope for the best. Intel traded 51 million
shares today when the overall markets barely managed to
beat Friday's very low volume. There are many positives
and negatives in the market this week and very few of
them are stock related. With the indexes locked at current
resistance we could easily go either way and I view the
odds as 60:40 in favor of a decline. It is that close. If
you look at the charts above you will see we are still in
a confirmed down trend until higher overhead resistance
is broken. The end of day buy program changed the entire
technical outlook for me. Had the indexes finished at the
lows I would have bet on a range bound market the rest of
the week. While I know the buy program was the result of
only one buying decision it may have given the bulls just
enough confidence to take us higher. Without any material
economic reports on Wednesday we will be left to move on
world events and Jobs speculation. I am definitely neutral
today but ready to react to a move over the 10220, 1990,
1122 resistance or another failure at those levels.

Enter Passively, Exit Aggressively.

Jim Brown
Editor


==================================================================
WATCH LIST
==================================================================

The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks.  Rather we would prefer to offer
it as an extra tool in today's investor toolbox.  Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own.  Due to time
constraints we do glance at the news but rarely do we have
time to fully read pertinent news stories, due background
research and other necessary screens that investors should do
before making a decision.  A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's
happening in the broader market indices.  We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.

STOCKS WORTH WATCHING
---------------------------------

Saved By The Bell

Newport Corp. - NEWP - close: 15.04 change: +0.51

WHAT TO WATCH: After finding support near the $14 level last
week, shares of NEWP are making solid upward progress.  Tuesday's
rally pushed the stock right up to resistance and a breakout over
$15.10 can be used for bullish entries.  While there is possible
resistance at the 50-dma and then again at $16, we're looking for
the stock to make a run ag stronger resistance just under $17,
which is the site of the 200-dma.




---

Tenet Healthcare Corp. - THC - close: 12.15 change: +0.23

WHAT TO WATCH: After solidifying support just over the $10 level,
shares of THC have been working their way higher in an ascending
channel for the past couple months.  The stock appears to have
successfully tested support at the bottom of the channel over the
past couple weeks and is headed back to the top of the channel,
currently just over $13.  Use a trigger over the 100-dma and
target a rally to the 200-dma near $13.50.




---

Cree, Inc. - CREE - close: 23.17 change: +0.16

WHAT TO WATCH: There hasn't been enough volume to get the job
done surrounding the holiday weekend, but CREE has been resting
just below key resistance at $23.50 for close to a week now.  A
breakout over that level can be used for an entry trigger, with
the stock likely to rally up towards the $26 level.




---

Symantec Corp. - SYMC - close: 44.33 change: -1.37

WHAT TO WATCH: Shares of SYMC have been looking weak for much of
the past month and today's dip below the $44 level only
reinforces that view, with a fresh PnF Sell signal.  Each break
to new recent lows lately has been met by a rebound back towards
resistance, so we don't want to chase the stock lower.  But a
failed rebound in the $46-47 area, looks like a great entry
point, with the 50-dma now likely to offer firm resistance.
Target a drop to strong support in the $39-40 area, with $39
being the downside target from the PnF chart.





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

MVSN $23.48 - After the strong move following the company's
blowout earnings in early May, MVSN has been treading water
between $22-24, resting up for the next directional move.  We're
looking at this consolidation as a continuation flag and expect a
breakout to new recent highs.  Use a trigger above $24.30 and
target an initial move to the $26.40-27.00 area.

AEP $31.40 - When AEP broke out over the $31 level and the 50-dma
last week, we suggested that a pullback to test that broken
resistance could be used for new bullish entries.  The stock
tipped over today and appears headed back for a test of that
level and it looks like we'll get a shot at that entry point.
Note that support should be reinforced by the 20-dma, 30-dma and
200-dma, all clustered between $30-31.


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

Market Unshaken
-J. Brown

The first trading day of June was amazing but not for its gains.
The major averages traded mostly sideways save for a last hour
rally.  No, Tuesday was amazing because we closed positive.  News
that there was a terrorist rampage in Saudi Arabia that left 22
people dead sent the price of oil to a new all-time high above
$42 a barrel.  It was only a week ago that oil hit its previous
high and sent investors scurrying for cover.  The fact that
investors shrugged off both another terrorist attack, granted it
was overseas, and a new high in oil is impressive and bodes well
for the rest of the month assuming the jobs number doesn't
surprise us.

Economics were also part of today's recipe.  The better than
expected ISM manufacturing number erased any fears that the
economy might be slowing down.  Plus the U.S. construction
figures hit its third all-time high in a row.  Economists were
looking for 0.4% growth but we got 1.3% growth.

Buyers were rotating into biotechs, natural gas, oil and
healthcare.  Yet today's biggest gains were in the Internet
stocks with a 1.68% jump in the INX Internet index.  Airlines
were big losers, understandably so with the rise in oil.  Broker-
dealers and gold stocks followed them lower.  Overall market
internals were mixed to bullish.  Advancing stocks outnumbered
decliners by a small margin on the NYSE and 17 to 14 on the
NASDAQ.  Up volume outweighed down volume on the NASDAQ but down
volume edged past up volume on the NYSE.  Overall volume remained
light.

Wall Street will continue to focus on economics this week.
Tomorrow brings the auto and truck sales while Thursday will
unveil a number of reports with the ISM services leading the
list.  We'll also hear from Intel at their mid-quarter update on
Thursday night.  Of course Friday is the big day with the non-
farm payrolls (a.k.a. jobs report) for May.  Looming large next
week is the G8 summit in Georgia, which many feel is a big target
for terrorist and could have investors on the defensive.


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

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  8851
Current     : 10202

Moving Averages:
(Simple)

 10-dma: 10059
 50-dma: 10246
200-dma: 10068



S&P 500 ($SPX)

52-week High: 1163
52-week Low :  960
Current     : 1121

Moving Averages:
(Simple)

 10-dma: 1104
 50-dma: 1116
200-dma: 1086



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1180
Current     : 1468

Moving Averages:
(Simple)

 10-dma: 1431
 50-dma: 1439
200-dma: 1427



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

CBOE Market Volatility Index (VIX) = 16.30 +0.80
CBOE Mkt Volatility old VIX  (VXO) = 16.64 +0.82
Nasdaq Volatility Index (VXN)      = 22.57 +1.24


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

          Put/Call Ratio  Call Volume   Put Volume

Total          0.94        500,343       467,935
Equity Only    0.73        422,150       306,293
OEX            1.72         14,392        24,797
QQQ            3.39         26,875        91,066


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

Bullish Percent Data

           Current   Change   Status
NYSE          64.1    + 0     Bear Confirmed
NASDAQ-100    38.0    + 0     BULL ALERT
Dow Indust.   66.7    + 0     Bear Confirmed
S&P 500       60.6    + 0     Bear Confirmed
S&P 100       60.0    - 1     Bear 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: 0.78
10-dma: 0.83
21-dma: 0.95
55-dma: 1.08


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    1439      1672
Decliners    1373      1373

New Highs      63        68
New Lows       29        15

Up Volume    717M      727M
Down Vol.    774M      686M

Total Vol.  1505M     1431M
M = millions


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

Commitments Of Traders Report: 05/25/04

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

Not much movement from the commercial traders.  It looks like
they shifted a handful of money from shorts to longs.  Conversely
the small traders have rotated some money from longs to shorts.


Commercials   Long      Short      Net     % Of OI
05/04/04      397,964   417,175   (19,211)   (2.4%)
05/11/04      401,365   421,672   (20,307)   (2.5%)
05/18/04      394,352   423,258   (28,906)   (3.5%)
05/25/04      400,713   420,764   (20,051)   (2.4%)

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
05/04/04      137,112    80,201    56,911    21.6%
05/11/04      135,534    76,987    58,547    27.5%
05/18/04      139,647    74,597    65,050    30.4%
05/25/04      136,086    79,060    57,026    26.5%

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

There was a big drop in longs by the commercial traders but
it was coupled with a significant drop in shorts too.  They
remain net bullish on the S&P 500.  Small traders have grown
net bearish after last week's bullish reading.


Commercials   Long      Short      Net     % Of OI
05/04/04      316,840   370,781    (53,941)  ( 7.8%)
05/11/04      378,696   362,887     15,809     2.1%
05/18/04      390,484   357,157     33,327     4.5%
05/25/04      353,722   336,406     17,316     2.5%

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
05/04/04      119,308     74,407    44,901    23.2%
05/11/04      101,199     94,408     6,791     3.5%
05/18/04       62,216     87,269    25,053    16.8%
05/25/04       91,515    100,759   ( 9,244)  ( 4.8%)

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


NASDAQ-100

Commercial traders have upped their long positions and remain
net bullish on the NDX.  Small traders have likewise upped their
short positions and remain net bearish.


Commercials   Long      Short      Net     % of OI
04/27/04       54,196     33,948    20,248   23.0%
05/04/04       56,931     35,209    21,722   23.6%
05/18/04       58,376     37,528    20,848   21.8%
05/25/04       59,891     37,630    22,261   22.8%

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:  22,261   - 05/25/04

Small Traders  Long     Short      Net     % of OI
05/04/04       10,247    24,764   (14,517)  (41.5%)
05/11/04        9,716    21,072   (11,356)  (36.9%)
05/18/04        9,843    18,935   ( 9,092)  (31.6%)
05/25/04       10,184    20,653   (10,469)  (33.9%)

Most bearish reading of the year: (14,517) - 05/04/04
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Commercial traders are adding to their short positions while
small traders are adding to their longs, which is generally
par for the course.  Guess who is right more often?  Yup,
the commercial traders.


Commercials   Long      Short      Net     % of OI
05/04/04       24,296    22,181    2,115       4.6%
05/11/04       22,614    21,507    1,107       2.5%
05/18/04       22,257    22,444   (  187)     (0.4%)
05/25/04       23,578    24,632   (1,045)     (2.2%)

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
05/04/04        6,262     8,155   (1,893)   ( 9.2%)
05/11/04        7,009     7,640   (  631)   ( 4.3%)
05/18/04        9,098     6,591    2,507     16.0%
05/25/04        9,623     6,614    3,009     18.5%

Most bearish reading of the year: (12,106) -  3/09/04
Most bullish reading of the year:   8,523  -  8/26/03

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


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Do not duplicate or redistribute in any form.





PremierInvestor.net Newsletter                  Tuesday 06-01-2004
                                                    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:     AXYS, BLUD, HMLK, KWK

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

AXYS announces a 3-for-2 stock split

Midday Axsys Technologies, Inc. (NASDAQ:AXYS) announced an
increase in their 2004 earnings guidance and a 3-for-2 stock
split.

Business is so strong that AXYS is upping its previous guidance of
11%-15% revenue growth to 15%-16% revenue growth for the year.

The Board of Directors also approved a 3-for-2 stock split in the
form of a 50% stock dividend.  This dividend is payable on June
30th, 2004 to shareholders on record as of June 15th.


About the company:
Axsys Technologies Inc. is a fully integrated supplier of
precision optical assemblies and components used in a variety of
high performance commercial and aerospace/defense applications.
(source: company press release)

---

BLUD announces a 3-for-2 stock split

This morning before the opening bell Immucor, Inc (NASDAQ:BLUD)
announced that its Board of Directors approved a 3-for-2 stock
split of its common shares.

The split will take form as a 50% stock dividend payable on July
16th, 2004 to shareholders on record as of June 30th.

The BoD also approved an additional 200,000 shares to be added to
their current stock buyback program.


About the company:
Founded in 1982, Immucor manufactures and sells a complete line of
reagents and systems used by hospitals, reference laboratories and
donor centers to detect and identify certain properties of the
cell and serum components of blood prior to transfusion. Immucor
markets a complete family of automated instrumentation for all of
our market segments. (source: company press release)

---

HMLK announces a 1-for-100 split and a 100-for-1 split.

No that's not a typo.  Late this morning Hemlock Financial Corp
(NASDAQ:HMLK) said its Board of Directors had approved a 1-for-100
reverse stock split to be immediately followed by a 100-for-1
forward stock split.

Most stocks splits we list are forward stock splits.  HMLK is
trying to go private so it is using the reverse split to eliminate
shareholders who hold less than 100 shares.  Investors in this
category will receive $29.00 per share.  The proposed transactions
should reduce the number of record holders to less than 300, which
will allow HMLK to "terminate its reporting obligations under
federal securities law....and will no longer be eligible for
trading on the NASDAQ Small Cap Market."


About the company:
Hemlock Federal Financial Corporation is a Delaware corporation.
The Company is a savings and loan holding company, which has as
its wholly owned subsidiary, Hemlock Federal Bank for Savings (the
"Bank"). The Company is a financial intermediary engaged primarily
in attracting deposits from the general public and using such
deposits to originate one-to-four family residential mortgages
and, to a lesser extent, multi-family, consumer and other loans
primarily in its market area. The Company's revenues are derived
principally from interest earned on mortgage-backed and other
securities and loans as well as the sale of loans.
(source: company press release)

---

KWK declares a 2-for-1 stock split

Just before noon Quicksilver Resources, Inc. (NYSE:KWK) announced
that its Board of Directors had approved a 2-for-1 stock split of
its common shares.

The split will take the form of a stock dividend payable on June
30th, 2004 to shareholders on record as of June 15th.  Post-split
KWK will have close to 50 million shares outstanding.


About the company:
Fort Worth, Texas-based Quicksilver Resources is a natural gas and
crude oil production company engaged in the development and
acquisition of long- lived producing natural gas and crude oil
properties. The company, widely recognized as a leader in the
development and production of unconventional natural gas reserves,
including coalbed methane, shale gas, and tight sands gas.
(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

HBC     HSBC Holdings              75.00     +0.97
MRK     Merck Co                   48.35     +1.05
COP     ConocoPhillips             75.13     +1.80
CAH     Cardinal Health Inc        68.54     +0.83
CAT     Caterpillar Inc            76.08     +0.73
CVH     Coventry Health Care       48.46     +2.38

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

ZRAN    Zoran Corp                 18.58     +1.01
LRW     Labor Ready Inc            13.79     +1.62
SERO    Serologicals Corp          19.39     +2.26
CHIC    Charlotte Russe Holdings   19.61     +1.12
IDSY    I.D.Systems Inc            13.77     +2.16

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

AMZN    Amazon.com                 50.23     +1.73
CMX     Carmark Rx Inc             32.84     +1.64
MDP     Meredith Corp              54.28     +1.82
IDXX    IDEXX Labs                 67.13     +1.39
GPRO    Gen Probe Inc              44.09     +2.15
SINA    Sina Corp                  39.96     +3.74
OSG     Overseas Shipholding       41.39     +3.25

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

STC     Stewart Info Services      32.74     -1.41
SINT    SI International           22.05     -2.25

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

CME     Chicago Mercantile Exchg  122.00     -7.20
AVCT    Avocent Corp               33.32     -0.95


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