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