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PLAY >New Drops Sunday, February 04, 2001
New Split Drops   New Candidate Drops   New Momentum Drops
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Drops

None

New Candidate Drops

PDII - Professional Detailing $56.88 (-41.98)

PDII shareholders were stunned with some devastating news on Friday morning. Glaxo Wellcome decided to cancel a sales contract with PDII, presumably due to a decision involving changing long standing agreements following their merger with SmithKline Beecham (the merged company trades under the NYSE symbol, GSK). The loss of the contract caused PDII to reduce their earnings estimates for 2001 by 35 to 45 cents. The company is still expected to post profits for the year around $2.40 a share. Therefore, destroying the stock by some 45% appears to be an epic overreaction. Of course, that is of very little consolation for shareholders. We would like to add that there was no warning that bad news was pending. Many times you will see technicals beginning to deteriorate just before bad news. Blockbuster news is usually hard to keep quiet. Nevertheless, there was not a warning. If you read Thursday's update there was even new coverage initiated on the stock with a "Buy" rating. Friday's volume was an incredible 41 times the Average Daily Volume. This indicates a capitulation sell off of rare proportions.


Picked on January 21st @ $89.94
Profit/Loss -25.00 (-28%) (Stopped on Friday @ $64.94)
Best Profit +15.12 (17%)
 
Interactive ChartQuoteNewsZacks on PDII
 


New Momentum Drops

None

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