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Email Version, Section 1, Sunday, 03/05/2000
The Newsletter           Sunday 03/05/2000 1 of 1 
Copyright 2000, All rights reserved.  
Redistribution in any form is strictly prohibited.  

 - Your World Leader for Trading Stock Splits on the Internet - 

Posted online for members at:

The entire newsletter is best viewed in COURIER 10 for alignment

Starting today we will be separating the Sunday 
Update into 2 seperate Updates.  One will be your regular Update,
and the second will focus on Split Candidates, including our
Candidate Play Recommendations.

To stop receiving this SplitTrader Update,
send email to

In This Newsletter:

Market Commentary - Score one for you and us!
Reader's Write
Friday's Split Announcements - MRVC, EXDS and USIX
Sector Watch - Breakdown by sector of market performance.
Event Calendar - Next week's economic reports
Editorial - Nokia and Ericsson Share Japan Telecom Deal
Split Play-of-the-Day - AMAT
Split Plays - New - Updates - Drops


Market Commentary

Score one for you and us!

Last week, I talked about a couple things regarding the changing 
investment scene.  In addition, I closed by telling readers that 
the analysts at ST felt there was a strong likelihood of a "major 
bounce" in the blue chips and the Dow.  News this week and the 
overall action proved us correct.

Regarding the changing investment scene, many of you probably 
know that I have repeatedly come back to this theme for the last 
5 months or so.  Why?  Because it is important for today's 
investor to understand the new dynamics that are taking place and 
shaping up in today's investment scene.  Failure to recognize and 
adapt to these changes could be disastrous for an individual 
investor.  Because of this, I feel it its our duty to do 
everything we can to keep you informed.  Having said that, I also 
recognize that this past week was probably a big one for many of 
you in the markets, so you probably don't want a "sermon on the 
mount" about the changing scene this week, especially after last 
week's commentary.  

Let me just say this.  Last week, among other questions, I asked 
who was right regarding the NYSE and the NASDAQ.  From there, I 
went on to compare the two.  The week before, I spoke about the 
two roads and the one less traveled.  Both commentaries were 
meant to address and highlight the growing divide between the two 
major exchanges in our markets.  The old and the new.  How things 
were done and how they are done now.  Blue bloods versus young 
bloods.  Industry chiefs of old and the titans of the new 
economy.  The bottom line, simply put, is that the NYSE continues 
to represent the old to a large and growing number of investors.  
Meanwhile, the Nasdaq more and more represents the land of 
opportunity.  The place where the "in-crowd" resides and invests.  
As for who is right, the answer may have been offered this week.  
Officials of both the NYSE and the NASDAQ met for the first time 
to discuss merging.  As more details come available, we will 
provide them to you in the near future.  For now, ask yourself 
"who cried uncle"?  It's possible that this is a deal in the best 
interest of both exchanges, but you have to question if the guys 
at the NYSE would have even let the NASDAQ boys in the front door 
as recently as a year or two ago.  It makes you wonder whether or 
not someone is hearing footsteps fast approaching.  

Whatever the case and whatever happens with the merger, no 
investor should forget about or underestimate the power wielded 
over at the NYSE and within the venerable Dow index.  These 
industry chiefs are still among the most heavily capitalized and 
stable companies in the world.  

Which brings me to the other point conveyed to you last week.  
The Dow and blue chip stocks in general were getting too cheap to 
ignore.  I told you last Sunday that I thought the index would 
sell off hard on Monday, but that might very well be it.  At that 
time, I told you that the Dow needed to hold 9750-9800 and that a 
failure to do so would result in the likelihood of a midweek 
visit to the 9500 level.  The widely held belief among all of us 
here at ST was that this would not be the case.  This belief was 
based on looking at the charts and understanding the nature of 
traders and their ability to sniff out a bargain.  As I told you 
on Sunday, we were probably once again looking at a game of 
musical chairs in the market; only this time around traders would 
be looking to jump in instead of out of the market when the music 
stopped.  Both right and wrong.  The index didn't sell off hard 
on Monday, instead trading up from the get go and establishing 
the first 5-day up streak for the Dow in quite some time. This 
was due to traders stepping in to buy up bargains, which you were 
told to expect.  The misjudgment regarding the open on Monday was 
in assuming that the music started with the sub-10,000 close on 
Friday.  In reality, the sub-10,000 close marked the stoppage of 
the music, signaling traders to jump in first thing Monday 
morning.  In the end, the Dow and blue chip issues got the 
serious bounce you were told to expect.

This just goes to prove another age-old adage in investing; you 
can't be right all the time.  When you are right, you have to 
take advantage of it.  When your not, recognize it, learn from it 
and do something about it quickly.  The analysts here at ST are 
all seasoned traders who live by this.  You as individual 
investors should do so as well.  

As for Friday's action in trading, BOOM!  A blast best describes 
the action as well as the pleasure that most investors enjoyed in 
watching shares in almost any sector appreciate.  The weak job 
report (we will get back to that) started things off on the right 
foot and broad-based momentum took over from there.  Leading the 
way were techs, both the bios and high techs once again.  
Semiconductors had another stellar day.  Almost anything tech 
related was helped in general, as they had been all week, by the 
spotlight on technology at the Robbie Stephens Tech 2000 
Conference, despite the fact the Conference ended Thursday.   
Additionally, strength could be found in issues related to health 
care, chemicals, aluminum, transports, auto, retail, brokerage, 
steel, telecom and financials.  

In blue chip trading, the Dow managed to break one streak while 
keeping another one going.  By closing up, the index made it 5 
straight sessions of positive closes.  Additionally, a streak of 
Friday loses was snapped.  Prior to this week, the index had lost 
over 200 points on 4 of the previous 5 Friday's.  Fittingly, the 
Dow posted a plus 200-point gain to cap the turnaround.

For the session, the Dow added 202.28 to close at 10,367.  At 
midday, the index actually traded well above the 10,400 level, 
but profit taking in the second half of the day pushed the index 
back below that mark.  Despite that, the Dow still managed to 
hold onto most of the gains, trading strong into the close.  
Volume for the day was heavy, with 1.16 billion shares changing 
hands.  Up volume eclipsed selling volume by a 2 to 1 margin.  As 
would be expected on such a positive day, advancing issues 
trounced declining issues 17 to 12.  New highs and new lows were 
close to even.  

Of the 30 component companies in the Dow, 20 finished up for the 
day.  Among the blue chip standouts were IBM +4.81, HWP +4.69, GE 
+4.19, DD +3.94, CPQ +1.19, Q +4, USW +3.13, AOL +1.13, DIS +2 
and TYC +3.  

Drug and oil related stocks were the only real sectors not 
participating in Friday's rally.  The notables suffering down 
days included MRK -2, JNJ -1.44 and XOM -0.94.

Technically, the Dow is looking good at this point.  The action 
this week helped to break the index out of its recent strong 
downtrend.  Friday's trading and close would in fact seem to 
point to the development of a new up-sloping trendline.  
Additionally, the index managed to close above its 5 and 10-
dma's, actually trading up to its 20-dma.  Although it remains 
below the all-important 200-dma, the crossover above the shorter 
term moving averages is indeed a bullish signal.  The next test 
to prove or disprove the current rally will come at 10,500.  This 
is more of a psychological test, as the real test will be 
reestablishment above the 200-dma.  To do so, the Dow will have 
to trade back above the 10,800 level.  As mentioned last week, it 
was the failure of the index to maintain that level that started 
the whole selloff to begin with.  In terms of support, there is 
some just below at 10,300, but the real support is lined up at 
100-point increments going back to 10,000.    

Over at the Nasdaq, the Compx continued its assault on 5000 and 
added another page into the record books.  The index set yet 
another record and traded to close above 4900 for the first time 
ever.  For the day, the Compx added 160.28 to close at 4914.79.  
The close was impressive as the index broke through 4900 in the 
final hour and closed at the high for the day.  Volume was once 
again very heavy, with over 2.14 billion shares traded.  Volume 
to the upside came in at more than three times that of selling 
volume.  Advancers beat out decliners 13 to 8.  There were an 
astonishingly high number (443) of companies setting new 52-week 

As you can tell from the breadth, the buying was broad-based 
across most sectors.  Among the standouts were MSFT +2.75, INTC 
+3.50, ORCL +6.50, DISH +8.94, CHKP +9.25, ALTR +15.13, COMS 
+1.25, CSCO +4.69 and DELL +1.31.  The notable standout in the 
loser column was Thursday's big IPO winner, PALM, which posted a 
loss of -14.81.  

As for the chart, the Compx and the Nasdaq in general are both 
healthy.  The record amount of money inflow from institutions and 
401-k plans continues to fuel the buying.   The high techs such 
as B2B's, networking, security, backbone, optical, 
telecom/wireless and semi's all seem poised to move higher, 
joined by the big and mid-cap names in the biotech sector.  As 
has been mentioned previously, the index is trading in a 
sustainable 45-degree channel, which it first formed late last 
October.  The only negative for now would appear to be the fact 
that Friday's close places the composite right at the top of the 
channel, indicating the possibility of some retracement over the 
next day or two.  On the flipside, the chart indicates that if 
the Compx continues to trade within the channel, 5000 should be 
eclipsed this week.  To help put things into perspective, if that 
same channel is maintained through mid-May, the Nasdaq will trade 
up and through 6000, more than doubling since this past November.

The sector indices traded higher across the board.  The Dow 
Utilities index added +2.2, Transports were up +80.52, the 
Internets (DOT) gained +56.99, semi's (SOX) were once again 
strong, adding +75.38 and the S&P 500 managed a gain of over +27 
points.  Small and mid-caps continue to participate in this 
broadening rally, with the Russell 2000 and the S&P 400 Midcap 
adding 2.3 and 2.9 percent respectively.    

In the credit market, the 30-yr Treasury bond managed to gain 
$0.13, dropping the yield to 6.12%.  The 10-yr note also managed 
a positive close, adding 1/32 to yield 6.39%.  The inversion of 
the yields continues to persist, but traders are coming to the 
realization that the debt pay down program by the government has 
changed the dynamics within the market.  As has been mentioned 
here before, bond traders are more and more starting to refer to 
the 10-yr note as the new bellwether for treasuries and rates.

The gains in bonds and equities were prompted by the release of 
the February employment and wage numbers by the Labor Department.  
The report showed a substantial drop in Nonfarm Payrolls.  The 
street had expected the number to drop from 384 thousand to 235 
thousand.  In fact, that number came in substantially lower at 43 
thousand.  The unemployment rate was expected to remain unchanged 
at 4%, but actually came in indicating a gain in unemployment of 
0.1% to 4.1%.  Hourly earnings, a gauge used by the Feds to 
measure inflation due to the tightening labor pool, remained 
unchanged and inline with expectations at 0.3%.  Factory orders 
for January also pointed to indications that the Fed hikes had 
started to take effect.  That number came in at -1.1% versus an 
expectation of -0.6%. 

All in all, the numbers were positive and the markets responded 
in kind.  Despite this, few economists or traders believe the 
numbers will prompt the Fed to hold off on another 25-basis point 
hike at the March 21st FOMC meeting.  As for the coming week, the 
economic calendar is light and not likely to be much of a factor 
in trading.  Revised 4th quarter productivity numbers, Consumer 
Credit for January, the Beige Book Report, weekly initial claims 
and Wholesale Inventory numbers for January are set to be 
released.  The one event that could potentially disrupt the 
markets will come on Monday when Greenspan gives a speech on the 
"New Economy" in Boston.  Traders will watch to see if he drops a 
bombshell regarding the market or a likely move at the upcoming 
Fed meeting.  

In the news on Friday, an analyst at Bank of American stated 
"every company in every industry globally will create or 
participate in e-marketplaces within one year".  This prompted 
renewed enthusiasm among buyers for the B2B's.  Among the stocks 
benefiting were CMRC +12.13, PPRO +1.50, BVSN +11.75 and ARBA 

Speaking of ARBA, they were among several companies that enjoyed 
a positive day in part due the announcements of stock splits.  
Ariba actually announced their 2:1 split on Thursday, after the 
market.  Exodus, US Internetworking and MRV Communications 
announced splits as well.  Shares of EXDS (2:1) added +10.56, 
USIX (3:2) tacked on 6.44 and MRVC (2:1) hit the jackpot, gaining 

A story from Thursday that remained in the spotlight Friday was 
the one involving the possible merger of Qwest Communications (Q 
+4) and Deutsche Telekom (DT +1.56).  This deal might possibly 
affect the planned US West (USW +3.13) and Qwest merger.  
Stirring the pot up Friday was the news that DT might instead be 
interested in Global Crossing (GBLX +2.06).  Amazingly, despite 
the intrigue, all the parties ended the day in positive 

On the earnings front, this week will be light.  At this point, 
all but 14 S&P 500 companies have reported.  The notables set to 
release numbers this week, include; EchoStar, Dillards, Kmart 
Corp, Voice Stream, Comverse Technologies, Toys R Us, 24/7 Media, 
Fruit of the Loom, Genzyme, H J Heinz Co., National 
Semiconductor, Lands' End and CMGI Inc.  

The week ahead is packed on the Conference front, with major 
conferences scheduled in the areas of retail, growth, 
institutional investing, semiconductors, optical fiber and health 
care.  As was the case last week with the Robbie Stephens Tech 
Conference, many of this week's conferences are sure to make news 
and highlight industry leaders.  This should in turn influence 
trading in the shares of many of the companies presenting at the 
various conferences.  We would suggest that you check the events 
calendar located on the website for further 
details on the conferences and their scheduled dates.

For the week ahead, continued momentum buying in many of the tech 
sectors should be expected.  This may very well translate to 
fast-paced sector rotation among the bios and the high techs once 
again.  Then again, if Friday's rally holds up, the momentum will 
remain broad-based, with buying occurring among small to large 
caps, including participation of the blue chips and cyclicals.  
The thing to keep in mind is the fact that the Dow and the Nasdaq 
have just completed rather remarkable weeks and are probably due 
for some retracement.  The Dow is likely to trade up to challenge 
the 10,500 level this week.  Don't be surprised to see it 
struggle to get through, at least on the first attempt.  The same 
holds true for the Nasdaq in its quest for 5000.  Both indices 
will have had to gone far to reach those mile-markers.  
Translation-buyers may be exhausted by the time they get there.  
In the case of the Nasdaq, as I stated earlier, it is at the top 
of its channel, so a little retracement is in order.  For the 
entire market, this past week took the volatility index (VIX) 
from an oversold reading to an overbought reading.  This doesn't 
necessarily translate to selling anytime soon, but traders need 
to be aware that the condition exists.  All in all, I look for a 
positive to somewhat sideways week ahead.  Whatever you're 
trading in, be aware of both the major indices and where they are 
trading at.  Oftentimes, the biggest mistake made by a trader is 
not recognizing how the bigger picture affects his or her trade.  

Good Luck!

Louis Horkan
-Chief Editor 

Reader's Write

From a reader:

I just have to share it with you. When it's real, it just bubbles 
out of you. That great feeling all over, just like in the movies 
when they roll in the money on the bed.

I'm 45 years old; I've worked with the same company since 1978. 
I've been in their 401k plan, with some Company stock, and all 
the various plans the 401k Investment Group offers.

Yes I was making money, but it was slow, and the payback vs. what 
I was putting in just didn't cut the mustard. The Company stock 
investments, over the years, were good. But the 401K Investment 
Plans were just to slow, to hit the big numbers. Nobody was going 
to retire, anytime soon, and have his or her bills paid off.

Then as life went on, I got married, and still am happily 
married. We have 3 kids; one is 16 year olds and driving. One 
will be driving next year, and one is turning 11 years old. Like 
so many other people, I have a 2nd mortgage, and lots of credit 
card bills.

I was getting depressed, feeling very down a lot of the time 
wondering how will I ever pay all these bills. As of last summer, 
My 401k was ~$130k, then I finally ventured out of the 401K 
funds, started investing in some Tech stocks. You know how the 
rest went, within a few months I had $140k, then $160k, then it 
started to swing +/-, but managed to stay near $160k. I was still 
way ahead, based on my past investment achievements. But I was 
loosing some of the profits, I wasn't very efficient at managing 
the account on my own, because I didn't have any guidance, I was 
playing on my own. I struggled through the summer, and then 
Christmas 1999 came and went. I wasn't making the progress I 
needed too.

Then, one day this year, in the first part of Jan 2000, I saw a 
SplitTrader news alert message on one of the stock screen 
displays. I clicked on it, and somehow the light has been shining 
down on me ever since. You have turned my life around, I feel 
great, everyday, and I can't go to sleep at night, from the 
excitement of the day, but yet the next day I still wake up 
early, ready to rise and shine, and go make some money.

I had to save the best part for the ending; I'm right on the 
verge of crossing into the $300k range on my 401K plan. Can you 
feel, how I feel, after the years it took me to get to $160k, and 
now in less than 6 months I'm right at ~$300k. I have never ever 
been so happy, and lucky in my whole life. Please keep on keeping 
on with the tips. You throw us a good pitch, and we'll hit the 
home runs.

In the short time I've been with you, the one thing I've learned 
the hard way is follow your directions, and suggestions. There 
were times I didn't set any stops, and times I set the stop loss 
to high. That cost me some, but it also gets your attention. 
Follow the rules, and you'll make money. If I had followed the 
rules exactly, as you indicated, I'm sure I would already be over 
the $300k mark. That's the best advice I can offer to any new 
players. Leave the planning up to SplitTrader, and just follow 
the leader. Like the Web Page says, "Your World Leader For Split 
Trading On The Internet" 

I just have to say, Split Trader, you're the greatest, and thank 
you, for turning my life around. Please keep guiding us toward 
that road to success But I do read all your news, and count the 
minutes till the next update.

Thank you for being there. You're the best.


Dear Reader:

I wanted to personally thank you on behalf of the entire staff.  It is because of people like you that we 
offer this service.  The individual investor has always operated 
at a disadvantage to the big players and we find this 
fundamentally unfair.  In today's market, it is more critical 
than ever to have as many research tools and information as is 
possible to make informed decisions.  We try to provide these 
things and more on the site and within the newsletters.  
Everything we offer is geared towards the individual and is meant 
to level the playing field.  Believe me when I say that it 
gratifies and motivates us every time a subscriber takes the time 
to share their success story with us.  

Good luck and continued success! 


Friday's Split Announcements 

Friday, March 3, 2000, Before the Bell

Fiber Optics Company Announces Split

MRV Communications Inc. (NASDAQ: MRVC) today announced a 2 for 1 
split of the Company's common shares.  The Board of Directors 
announced the split, subject to shareholder approval.  A special 
shareholders meeting will be held in the second quarter of this 
year to authorize an increase in available shares from 80 million 
to 160 million shares and to approve the split.  The Company will 
have approximately 57 million shares outstanding after the split.  
No payable date has been announced.

For the complete announcement, please go to:


Friday, March 03, 2000, Before the Bell

Internet Hosting Company Announces 2-for-1 Stock Split 

Exodus Communications (NasdaqNM: EXDS) announced before the 
morning bell that its Board of Directors has approved a two-for-
one stock split as a stock dividend. On June 6th the company will 
hold its annual shareholder meeting in order to get approval to 
increase the number of authorized shares. The company will use 
April 20th as the record date and become payable to shareholders on 
June 20th. 170.5 million shares are currently outstanding, with a 
float of 146.6 million.

For the complete announcement, please go to:


Friday, March 03, 2000, During the Market

USinternetworking Inc. Announces Another 3:2 Stock Split

The mid-day announcement of a 3:2 Stock Split is the 2nd in three 
months for USinternetworking Inc. (Nasdaq: USIX).  The payable 
date has been set for March 28th.  The company currently has 450 
million shares authorized and 64 million issued.

For the complete announcement, please go to:

Sector Watch

As of Market Close - Friday, March 3, 2000

                   Key Benchmarks
Broad Market       Bearish/Bullish  Last    Posture/Since  Alert

DOW Industrials   10,700  11,250  10,367    BEARISH   2.17
SPX S&P 500        1,400   1,450   1,409    Neutral   3.03  *
OEX S&P 100          740     780     766    Neutral   3.02
RUT Russell 2000     500     520     598    BULLISH   2.24
NDX NASD 100       3,800   4,000   4,443    BULLISH   2.24
MSH High Tech      1,850   2,000   2,148    BULLISH   2.24

XCI Hardware       1,300   1,460   1,588    BULLISH   2.24
CWX Software       1,200   1,470   1,578    BULLISH   2.24
SOX Semiconductor    800     900   1,211    BULLISH   2.24
NWX Networking       940   1,000   1,158    BULLISH   2.24
INX Internet         700     800     784    Neutral   1.06

BIX Banking          500     550     485    BEARISH  11.30
XBD Brokerage        400     450     488    BULLISH   2.31
IUX Insurance        500     550     470    BEARISH  11.30

RLX Retail           950   1,000     841    BEARISH   1.28
DRG Drug             340     380     315    BEARISH   2.18
HCX Healthcare       700     750     660    BEARISH   2.18
XAL Airline          120     140     121    Neutral   3.03  *
OIX Oil & Gas        280     315     256    BEARISH   1.27

Sector Watch Alert:
The employment figures sparked a huge rally on Wall Street, as 
fears of inflation have subsided, at least for one day anyway. 
Most industries participated in the big day, however, the Software 
sector led the way with a +7.29% gain! Other notables include 
Semiconductors (+6.64%), Internet (+6.46%), and Airlines (+4.76%).   
With this most recent action, we have upped Airlines and the S&P 
500 to Neutral from Bearish. 

This section of the investment advisory website highlights's stated Sector Watch across broad market indices 
and industry sectors. is the only website that 
states and regularly updates its Sector Watch across industry 
sectors.  Investors who reference this section first before 
planning their trades will gain a decided advantage. The time 
horizon of our stated Sector Watch is generally 2-3 weeks and is 
based upon a number of fundamental, technical and sentiment 

An important feature to our stated Sector Watch is the key 
benchmark levels. These levels represent important near-term 
support and resistance points. By viewing the sliding bar for 
each index, investors can quickly view the relative strength of 
our position and better anticipate when we are likely to change 
our Sector Watch. These benchmarks are determined using technical 
and sentiment indicators. It's important to realize that our 
Sector Watch may be contrary to the overall trend when compared 
to longer-term moving averages. This is because our stated Sector 
Watch is designed to help investors take positions before others 
see major trend reversals. For each sector, we highlight the index 
symbol, key benchmarks, last level, stated Sector Watch and the 
date we changed our position (since).  

For industry sectors signaling BULLISH, investors may want to 
consider long/call positions. For sectors signaling BEARISH, 
investors may want to explore short/put positions. For sectors 
flashing Neutral, investors may want to develop hedge positions.  
As investors allocate capital, we encourage BULLISH traders to 
pursue industry sectors that are trending higher and trading above 
moving averages and BEARISH traders to pursue sectors trading 
below declining moving averages. Investors can view these moving 
averages over a six-month chart by double clicking on the industry 
indexes links within the matrix.

Event Calendar 

For the week of March 6th, 2000


None Scheduled


Productivity-Rev.        Q4     Forecast: 6.4%   Previous:  5.0%
Consumer Credit          Jan    Forecast: 7.0B   Previous: 11.2B


Fed Beige Book


Initial Claims          03/04   Forecast:  280K  Previous:  275K
Wholesale Inventories   Jan     Forecast:  0.4%  Previous:  0.4%


None Scheduled

Week of 3/13

03/14 Retail Sales
03/14 Retail Sales ex-auto
03/15 Business Inventories
03/15 Export Prices ex-ag.
03/15 Import Prices ex-oil
03/15 Industrial Production
03/15 Capacity Utilization
03/15 Current Account
03/16 PPI
03/16 Core PPI
03/16 Housing Starts
03/16 Building Permits
03/16 Initial Claims
03/16 Philadelphia Fed
03/17 CPI 
03/17 Core CPI
03/17 Michigan Sentiment


Nokia and Ericsson Share Japan Telecom Deal
By Cindy Christ

Shares in the world's No. 1 and No. 3 mobile phone companies
were trading higher Friday after both landed contracts to help
build Japan Telecom's next-generation communications network
that will allow users to access the Internet from wireless

Partners Vodafone/AirTouch (VOD) and British
Telecommunications (BTY) will work with Japan Telecom to
launch the advanced network, known as 3G for third generation,
which will start operating in phases in 2000 and 2001.

For the complete article go to:

===================== Plays

The PLAY LEGEND: Split Run Play Recommendations.

Play-of-the-Day is our number one split run play recommendation 
for the following trading day. 
Updates are just that - updates on continuing plays
New plays are brand new for the newsletter.
Drops are closing plays that we feel have lost the advantage.

You will see:
Stock Symbol, Company Name, Closing Price, (change for the week)
Picked at date and Change since picked 

BoD = Board of Directors meeting
ADV = Average Daily Volume
dma = daily moving average

>>at the website, we have comprehensive profiles 
for each stock that we are playing or have played in the past, as 
well as hundreds of others. Please take the time to visit the site 
to view the profile of the stock(s) you wish to learn more about. 

Split Run Play-of-the-Day

AMAT - Applied Materials $190.75 (+18.44)

Please see details in the Split Run Play Update Section Below.

Picked on Feb 24th @ $183.50
Change since picked +7.25

Chart =


ADI - Analog Devices $167.00 (+10.13)

Analog Devices makes high-performance analog, mixed-signal and 
digital signal processing integrated circuits. Their products are 
typically used in signal processing equipment and systems for use 
in communications, computer, industrial, military/aerospace and 
high-performance consumer electronics applications. The Company's 
largest product group is general-purpose Standard Linear ICs. This 
is a reliable company in a hot sector. On 2/16, ADI set a 2:1 
stock split with a payable date of 3/15. Since the announcement, 
the stock has soared from $127.50 to a high of $167.75 on Friday. 
The new high comes after 5 sessions of consolidation and we feel 
that the stock is about to make another run. Sector momentum is 
strong and the market conditions are positive for this type of 
play. Support is steady at $160 and again at the 5-dma, now at 
$158, with stronger support at the 10-dma ($153). Resistance is 
$170 and then $175. Open new positions on a bounce off of support 
or a breakout above $170 on heavy volume. Only play in a rising 
market. Plan to exit no later than 3/14. 

Picked on Mar 5th @ $167.00
Change since picked +0.00

Chart =


CSCO - Cisco Systems $137.44 (+3.53)

Simply put, Cisco has created an infrastructure that enables the 
Internet to function.  The dependence the Internet has on Cisco's 
internetworking products is continually being recognized by 
investors and is reflected in the performance of its stock.  CSCO 
is one of just a few Internet-centered companies that have been 
able to grow business with positive earnings.  The most recent 
projections show CSCO growing its revenues by 50% in 2000, 
unbelievably a 16% increase over 1999 revenues.  In addition to 
the Company's dominance in the marketplace, their stock price has 
had superior post split performance, gaining an average of 90% 
between each of the last 3 split announcements.  On February 8th, 
the Company announced a 2:1 stock split, which will be paid on 
3/22.  The short trigger for the split promises to create 
immediate excitement and should draw in momentum investors over 
the coming days. If this does occur, shares of CSCO are sure to 
offer investors yet another profitable split run.  As for our play 
now, Friday saw the stock break out a weeklong consolidation with 
a gap and run at the open.  The price ran to its 52 week high of 
$138.94 before finding resistance and closing slightly lower at 
$137.44.  A break through this resistance level of $139 sets the 
stage for the next run.  The first level of support may be found 
at Thursday's closing price of $132.75, which would effectively 
close Friday's gap.  The $132.75 level is also supported by both 
the 5-dma ($132.95) and the 10-dma ($132.31).  Just below this 
area, the $130 level provided support throughout this past week, 
bolstered by the 20-dma.  Look for a price breakout and potential 
new plays if the stock closes above its resistance level of $139.  
Otherwise, new positions can be initiated on a bounce off support 
accompanied by good volume.  An exit strategy should be in place 
before the payable date of March 22nd.

Picked on Mar 5th @ $137.44
Change since picked 0.00

Chart =


NOK - Nokia Corp. $221 (+16.12)

Nokia's phones are ringing and investors are answering the call.  
NOK is benefiting from the steady growth and popularity of 
cellular phones and the strong demand that the Internet is 
creating for wireless data transmissions.  NOK, which stands at 
the top of a rapidly expanding market, supplies infrastructure 
equipment and systems for cellular and fixed networks.  Just how 
popular are its products?  Growth in income has risen an average 
of 60% over the last 3 years.  Earnings are estimated to rise by 
30% this year and revenues by at least 40%.  Recently, the Company 
announced a 4:1 stock split.  The details of the split will be 
cleared up at their Annual General Meeting to be held on March 
22nd in Helsinki, Finland.  The payable date is expected to occur 
within 1 to 3 three weeks thereafter.  This offers us the 
opportunity to take positions before the momentum investors run 
the price up in anticipation of the split run.  In regards to the 
chart, the stock broke into new territory Friday, closing at a 52 
week high of $221.  Not only did the stock reach an all time on 
Friday, it also gapped above the upper trendline of an ascending 
triangle.  The stock may now potentially find new support on top 
of this trendline.  Look for the next level of resistance to be 
found at the $230 mark.  As for support, the initial level is 
found at the $206 mark, which is also reinforced by a 5-dma of 
$207.  The next area of support is found at $200, also the 
location of the 20-dma. Potential plays may present themselves 
along these support areas if the stock retraces to these levels 
and then bounces upward with increasing volume. However, given the 
recent breakout of the stock, look for upside potential to remain 
strong.  Look to exit the stock in front of the payable date, as 
is our normal policy.  

Picked on Mar 5th @ $221
Change since picked 0.00

Chart =


NTAP - Network Appliance $199.94 (+7.00)

Network Appliance is on track to beat 1999's stellar performance.  
Shares of the network data storage company gained 277% in 1999.  
In only 2 months, NTAP has risen another 135% for the year to 
date.  The company also makes caching devices and their NetCache 
product has proven very popular.  Other stocks in this sector, 
i.e. Cacheflow (CFLO), have been garnering attention from analysts 
and traders as well.  NTAP has a split coming up, payable on 3/22.  
The stock flirted with the $200 level on 2/25, but profit taking 
temporarily beat the price down.  Now it looks like it has 
consolidated and is ready to trade above $200.  We like the 
current entry point, as the stock is trading near trend line 
support, with channel line resistance near $225.  That's a lot of 
room to run.  Enter this play near support or on moves over nearby 
resistance areas.  Support is $195, then $190.  Resistance is 
$200, $202, then $208.  We will terminate this play no later than 
3/21, the day before the payable date.

Picked on March 5th @ $199.94
Change since picked 0.00

Chart =


PUMA - Puma Technology $172.00 (+9.44)

After a nice earnings and split candidate run in February, we are 
ready to "pounce" (no apologies offered) on PUMA yet again.  The 
split announcement came before the earnings so they offered a 
little bonus there.  With that kind of wonderful treatment how can 
we not want to give the stock another chance?  The split is 2:1 
and is payable March 22nd.  The Palm Pilot IPO got all of the 
headlines last week but that company is just one cog in the wheel 
of wireless computing and communications.  PUMA is a leader in 
providing wireless software solutions and more and more it looks 
like wireless is here to stay and influence our little 
technological lives.  If you like volatility you're going to love 
PUMA! So far this year, PUMA has nearly doubled, been cut it half 
(without the benefit of a split) and more than doubled again.  The 
drop from $140 resulted in a fairly long rounded base capped off 
by a double top breakout.  The follow through was substantial, up 
all the way to $180.  With a split fast approaching and a huge 
interest in wireless stocks, we believe that a test of $200 could 
come very soon.  If PUMA can break above Friday's high of $174 it 
would break a pattern of lower tops and could be a very good buy 
at $175.25 for aggressive traders.  If PUMA has an inside day 
(stays within Friday's range), look to go long if it takes out 
Monday's high on Tuesday.  There is some support at $155 but more 
substantial support exists at the old double top of $140.

Picked on March 5th @ $172.00
Change since picked 0.00

Chart =


ADIC - Advanced Digital Information Corp.  $96.94 (+12.88)

Companies are terrified that pimply-faced, disenfranchised 
geniuses can hack into their systems and wreak havoc.  One defense 
is to back up all of your crucial data in storage libraries, just 
the kind of thing ADIC would be only too happy to sell, manage and 
maintain.  The last quarter was great for the company and this 
quarter is also appearing to shape up pretty well.  ADIC also has 
an investment that would make any fund manager ask for a raise.  
ADIC owns just over 2.6 million shares of Crossroads Systems Inc. 
(NASDAQ:CRDS).  Since its IPO back in October, the stock has risen 
well over 100 points, thus creating some huge unrealized gains for 
ADIC.  Although ADIC has appreciated quite a bit recently, it 
still appears that the Company has not been properly respected for 
its stellar investment.  Add all of that to a 2:1 split payable on 
March 13th and you have a stock that could be poised for more 
gains. In the news, ADIC announced that it is developing storage 
area networks for the Linux operating systems.  We had a bit of a 
scare on Thursday as ADIC looked like it wanted to reverse its 
huge move after failing to stay above $100.  Fortunately, a rising 
tide lifts all boats (as long as it is a high tech boat) and ADIC 
climbed right back into position for a split run to possibly over 
$100, which is, of course, resistance.  There is solid support at 
$87 and do not be surprised if the stock builds a flag around the 
$95 level before attempting a split run.  We will exit this play 
by the close of trading on Friday, 3/10, which is the day before 
the payable date.

Picked on Feb 29th @ $90.63
Change since picked +6.31

Chart =


AMAT - Applied Materials $190.75 (+18.44)

Applied Materials has been one of the strongest stocks, in one of 
the strongest groups, semiconductors, throughout this rally.  
Semiconductor demand has exploded and AMAT, the largest provider 
of tools and equipment for the production of chips, is poised for 
solid growth until this boom cycle for production subsides.  In 
the meantime, investors are only too happy to keep placing their 
bets on winners like AMAT.  The Company has rewarded that faith in 
its shares by announcing another 2:1 on February 16th, its fifth 
split in the past eight years.  The split is payable March 15th.  
The split came on the heels of another very good earnings report.  
Bookings are solid and indications are that the company is 
experiencing another good quarter.  Because AMAT is a leader in 
the NASDAQ, it was not surprising that the stock managed to climb 
to a new high on the incredible strength in the overall market.  
The current pattern is remarkably similar to the chart pattern 
exhibited by the company in late January when the stock quickly 
recovered from a sharp pullback to resume its up-trend.  The rally 
that ensued lasted for six consecutive days and was good for a 
rise of 30 points.  If recent history repeats, then we could have 
a position in a stock ready to make a nice bullish advance.  
Considering that the stock managed to close above the 
psychologically important $190 level and that the split is only 10 
days away, look for AMAT to continue to lead the market higher.  
Monday, the Morgan Stanley Dean Witter Semiconductor conference 
kicks-off and will last for three days.  This could provide 
momentum for the stock to move higher toward $200 to rejoin the 
established trend line.  If the stock should pull back to catch 
its breath, look for support at $190, then $180 as possible entry 
points.  Our target date for this play is 3/14, the day before the 
payable date. 

Picked on Feb 24th @ $183.50
Change since picked +7.25

Chart =


BBSW - Broadbase Software $156.00 (+31.13)

The story is; Internet software companies are very hot and we are 
sticking with it!  BBSW designs software that helps businesses to 
better integrate and analyze the reams of information they 
accumulate about their customers.  Specifically, BBSW's software 
enables companies to improve their customer acquisition and 
customer retention.  Back on January 13th, BBSW celebrated their 
stock's recent moves by announcing a 2:1 split.  Even though the 
split was announced six weeks ago they still have not set a 
payable date.  We received the break out we were looking for last 
week, as BBSW moved out of a consolidation area in the $120's and 
finally took out the double top in the low $140's.  The spike did 
establish a nice new high before pulling back.  BBSW was 
relatively weak during the huge NASDAQ rally on Friday, trading up 
only a couple of points.  It appears that BBSW is forming another 
flag pattern just like the one it just broke out of.  Resistance 
is $160 and support is $150.  A move above the resistance could 
take the stock to a test of the old highs at $172.  If support 
fails, the stock could pull back to the trend line near $140.  Set 
stops based upon your entry price, placed slightly under support 

Picked on Feb 17th @ $132.50
Change since picked +23.50

Chart =


BVSN - BroadVision Inc. $260.63 (+20.13)

BroadVision rose to an all-time high Friday, after a 'buy' rating 
was received from investment bank Donaldson, Lufkin and Jenrette.  
That's reason to be excited, but we are concerned that the $11.75 
upward move was made on very low volume.  We would be surprised to 
see follow through on such a low volume day.  Only a very short 
window remains in this split play, as the payable date is 3/13.  
We need to see some buying soon to confirm that traders are 
excited about the split play.  New plays can be initiated near 
support, which is very light at $260, better at $250.  Resistance 
is the intra-day high at $262.  This late in the game, we are 
setting a stop at $243, which is just under support at $245.  We 
will exit the play no later the close of trading on Friday, 3/10. 

Picked on February 29th @ $252.56
Change since picked +8.06

Chart =


IMNX - Immunex Corporation $244.44 (+42.81)

Immunex is a veteran among these explosive biotechs.  IMNX already 
has several viable products on the market and is poised for more 
blockbusters due to its participation in the genome revolution.  
In just one year, shareholders of this stock have already enjoyed 
two 2:1 splits.  The Company has seen fit to split its shares 
again.  This time 3:1!  With a payable date fast approaching (on 
or around March 20th), IMNX seems ready to make another split run.  
Considering how strong the sector and the overall market are, a 
very nice run is entirely possible. You would be hard pressed to 
find a better-looking chart than the one that IMNX possesses.  The 
recent strength is due, in addition to the split, to some positive 
news.  First, IMNX received an "approvable letter" for its MS 
drug, Novantrone last week.  Second, an analyst at Credit Suisse 
First Boston raised their target price to $300.  Notice the "key" 
number. We suspect that they too, sense a split run coming.  
Third, it was reported Friday that studies on their new Asthma 
drug Novance are yielding very positive results.  Look for more 
interest in the shares of IMNX and the biotechs in general as 
several major conferences are on the horizon, giving the 
representatives of the company the opportunity to tell their 
bullish story to institutional investors.  On Wednesday, we saw a 
textbook breakout from a flag pattern.  The pattern is very 
bullish and the stock rallied nicely.  Look for the stock to find 
resistance at $250 if it spikes up again.  Recently, moves like 
the one we saw on Wednesday result in a few days of consolidating.  
A trading range between $220 and $240 would likely develop if we 
have some selling on Monday.  Therefore, try and initiate new 
positions on pullbacks to support levels.  Aggressive traders can 
certainly try and go after any spike ups trying to test $250.

Picked on Feb 29th @ $197.44
Change since picked +47.00

Chart =


INSP - $259.81 (+34.50)

We finally have a payable date for the stock split - it's April 
6th.  We've been waiting for word from the company ever since the 
January 31st split announcement.  The stock has been trading on 
excellent momentum anyway, but this gives us a target and 
additional momentum from traders looking to participate in the 
split run.  Friday, the stock traded lower, partly on profit 
taking from the huge run of the previous two days and partly 
because traders were disappointed that the payable date is a month 
away.  Technically though, no damage was done to chart support and 
we are still trading above the old channel line.  The stock did 
get a nice bounce up from support at $250 during intra-day 
trading, which provided good opportunities for new entry.  For new 
plays, enter near support levels or on moves above resistance.  
Support is light at $255, better at $250.  Resistance is $261, 
then $277.  
Picked on Feb 10th @ $191.50
Change since picked +68.31

Chart =


JDSU - JDS Uniphase $280.00 (+23.19)

This is shaping up to be a very active week for JDSU.  On the 
schedule is a big optical networking show and the Friday, 3/10 
payable date. First though, let's review the Friday, 3/3 action.  
As we said, $285 was resistance - it traded up to that point then 
retraced to the $280 area, which it held for nearly the entire 
day.  That's highly unusual - a volatile stock like JDSU rarely 
trades in such a tight range.  As soon as any move up was made, it 
was pulled down.  Then, just after the close, some very large 
trades went across the ticker - in other words, the stock was 
being accumulated for some large institutional trader(s).  We are 
anticipating some great upside potential here.  The annual optical 
networking industry trade-show starts Monday in Baltimore.  JDSU 
has already said they plan to introduce 30 new products aimed at 
the telecommunications and cable TV sectors.  New plays can be 
initiated near support or on moves over resistance.  Support is 
light at $280 and $277, better at $270.  Resistance is $285.  We 
will exit this play by the close of trading on Thursday, 3/9 to 
avoid the possibility of profit taking on the 3/10 payable date.  
We may playing this again soon, as JDSU may very well announce 
another split as soon as this one expires! 

Picked on Feb 24th @ $258.00
Change since picked +22.00

Chart =


VERT - VerticalNet Inc. $251.73 (+25.98)

Business-to-business companies are once again in favor with 
momentum traders, as shares of Ariba (ARBA), Commerce One (CMRC), 
Chemdex (CMDX) and VerticalNet (VERT) all turned sharply higher 
during the past week.  Even (PCLN) announced their 
intention of moving into the B2B sector.  The catalyst for last 
week's surge was the Robertson Stephens Tech Conference, as 
analysts came away enthused about potential growth in the sector.  
Coming up, Merrill Lynch is sponsoring an B2B conference on March 
15th.  There is still plenty of time to enter this split run play.  
New positions can be entered near support or on a move over 
resistance.  VERT closed on great volume in a breakout move 
Friday.  The stock closed just over $250, so it will be 
interesting to see if the move can continue, or if some 
consolidation will occur near this level.  Support levels are now 
$250 (light) and $245 (better.)  Resistance is $252, then $260.  
Our target date is the 3/31 payable date.

Picked on Feb 24th @ $221.00
Change since picked +30.73

Chart =


DISH - Echostar Communications $121.44 (+11.94)

Thursday, we were concerned.  Friday, we were jubilant!  Our 
short-term strategy paid-off!  The pre-earnings excitement for 
this stock was delayed, but it came in time for us to do quite 
well on the play.  As we warned Thursday, we dropped DISH at 
Friday's close, because the company is reporting earnings Monday 
morning.  We don't like the downside risk that earnings can bring.  
Since the split payable date is 3/22, we hope to re-enter the play 
later in the week if an opportunity arises.  

Picked on February 29th @ $114.00

Profit/Loss +7.44 (+7%)
Best Profit +9.38 (+8%)

Chart =

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This newsletter is a publication dedicated to the education 
of online 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 how to trade stock
splits. It is possible at this or some subsequent date, the 
editors and staff of 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. 
staff makes every effort to provide timely information to its 
subscribers but cannot guarantee specific delivery times due 
to factors beyond our control.


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