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Email Version, Section 2, Sunday, 04/16/2000
The Candidate Newsletter  Sunday  4/16/2000 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
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In This Candidate Newsletter:

New Split Candidates 
Successful Announcement Predictions For The Past Week 
Expected/Likely Announcements For The Coming Week 
Editorial - Emulex Slaughtered Amid Broad Tech Sell-Off
Split Candidate Play-of-the-Day
Split Candidate Plays - New - Updates - Drops


================================ strives to be the very best at identifying 
profitable split candidates. Every week we will list those whom 
have made the cut. You can view the details of these new 
candidates by checking out the complete profile for each stock at 
the website. 

AES             THE AES CORP  
DUK             DUKE ENERGY  
GNTX            GENTEX CORP  
RSYS            RADISYS CORP  
SYK             STRYKER CORP

Successful Announcement Predictions For The Past Week

Symbol         Company             Date Announced

JNPR           JUNIPER NETWORKS         4/13/2000

Expected/Likely Announcements For The Coming Week

                                    Date Expected
Symbol         Company               To Announce*

AAPL           APPLE COMP INC           4/19/2000
CGNX           COGNEX CORP              4/19/2000
EMC            EMC CORP                 4/18/2000
INKT           INKTOMI CORP             4/18/2000
INTC           INTEL CORP               4/18/2000
LSCC           LATTICE SEMIC            4/17/2000
MER            MERRILL LYNCH            4/18/2000
SDLI           SDL INC                  4/19/2000
SEBL           SIEBEL SYSTEMS           4/18/2000
TER            TERADYNE INC             4/18/2000
TXN            TEXAS INSTRUMENT         4/17/2000
VRSN           VERISIGN INC             4/19/2000

Many of the above listed stocks are trading well below their all-
time highs.  They are, however, trading in a range that could 
induce a split announcement.  Current market conditions make 
announcements less likely.

*Date expected to announce is a rough estimate. These days 
corporate management is not exempt from using a split announcement 
to buoy the stock price if negative news (or earnings) is 
affecting their stock price. There is still the uncommon trend of 
a delayed split announcement post-earnings. 


Emulex Slaughtered Amid Broad Tech Sell-Off
By Cindy Christ

Emulex Corp. took a beating Friday after posting record
Third quarter results as investors fled technology shares en

Shares in Emulex (EMLX) plunged $41.25, or 49.7 percent, to

After the close Thursday, the world's No. 1 supplier of fibre
channel adapters reported revenues for the March quarter of
$36.5 million, up 100 percent from $18.2 million a year ago.

For the complete article go to:

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

The PLAY LEGEND: Candidate Play Recommendations.

Candidate Play-of-the-Day is our number one candidate 
  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. 


Due to the extreme volatility of Friday's sector-wide selloff, we 
will not have a Play of the Day for Monday's session.

Please see the editor's note following the market wrap for an 
explanation of our current take on the market.  Keep in mind that 
any  short-term bullish play should be considered high-risk until 
the markets confirm a definite reversal pattern.


AMD - Advanced Micro Devices, Inc. $66.00 (-9.50)

"Give me a double"! Probably a familiar request after this week's 
bludgeoning on Wall Street. However, while many stocks were 
making double-digit losses this week, Advanced Micro Devices 
earnings doubled from a year ago. Expectations for the California 
semiconductor manufacturer were for as high as .57 cents, but on 
Wednesday they rocked analysts and the street with a whopping 
$1.15 profit per share. Thursday saw 3x volume in reaction to the 
news, but the stock closed down -5.00 in the face of continued 
selling across the major indexes. We begin our coverage of AMD in 
expectation of a split announcement at the shareholders meeting 
scheduled for 4/27. The company will ask shareholders to increase 
the number of outstanding shares by 7.25 million. The result will 
be 152 million shares outstanding and 257.25 million shares 
authorized enough for a 2:1 split. Analysts have been speaking 
positively of AMD as well. Recently, Deutche Banc Alex Brown 
issued a buy rating with a price target of $125.00 and Prudential 
issued a strong buy rating.  AMD has held up well this week, 
losing less than 9 points. While countless stocks are crashing 
through their 100 and 200-dma, AMD closed near its 20-dma. AMD 
has not split its stock since 1983 and may now be due in light of 
it recently hitting a new high on 4/10. A new play with AMD 
should be confirmed by overall market direction with special 
emphasis on the Nasdaq 100 (NDX) and the broader markets. If we 
get a well-deserved bounce/rally this week, then AMD should bode 
well for a new run at its recent high at $79.18. AMD is sitting 
just above support at $63.00 and resistance is back up at the new 
high. If buyers come back in to the market then AMD should enjoy 
a nice run going into their meeting. Confirmation should be in 
both upward direction and volume in excess of 7.5 million shares 
although AMD tends to breakout on 10 million shares and better. 
Exercise caution with this and any new play, as market conditions 
are still extremely uncertain. (Remember to confirm strength in 
the broader market before initiating new plays. In this 
environment, any short-term long play should be considered high-

Picked on April 16th @ $66.00
Change since picked 0.00

Chart =


MXIM - Maxim $50.31 (-20.25)

Maxim Integrated Products designs, develops, and manufactures 
linear and mixed-signal integrated circuits. MXIM offers a wide 
selection of products including data converters, interface 
circuits, microprocessor supervisors, operational amplifiers, 
power supplies, multiplexers, switches, battery chargers, and 
voltage references. The Company's products are used in 
microprocessor-based electronics equipment, including personal 
computers and peripherals, test equipment, hand held devices, 
wireless communicators, broadband networks, satellite 
communications, and robotics. The stock hit an all-time high of 
$74.50 on 3/22 but has pulled back to an intra-day low of $49.75 
on Friday. Maxim is expected to announce earnings on 4/25 after 
the bell and we are looking for a split announcement to come out 
with the earnings release. The Company currently has 480 million 
shares authorized and 278 million shares outstanding so they 
could set a 3:2 split or announce a 2:1 split, pending 
shareholder approval. Going forward, there is light support at 
$49 with strong support at the 200-dma, now up to $45. Resistance 
is now the 100-dma ($55) and then the 5-dma ($58). Look for a 
bounce off of support or a push above $55 to initiate new 
positions. Start new plays on heavy volume, only in a rising 
market. We recommend an exit in front of earnings on 4/25.  Our 
stop is at $42.50, just below support at $43. (Remember to 
confirm strength in the broader market before initiating new 
plays.  In this environment, any short-term long play should be 
considered high-risk.)

Picked on April 16th @ $50.31
Change since picked +0.00

Chart =


ORCL - Oracle Corporation $63.52 (-23.60)

With 93% of dotcom companies using Oracle software, the company 
has developed into the world's largest supplier of database 
software for information management. With growth in earnings 
expected to increase by 44% in 2000 and 38% in 2001, the power of 
the Internet is showing its worth to Oracle shares. Currently 
trading in split territory, additional shares will need to be 
authorized in order to initiate a stock split. To do this, 
management will be holding a special shareholder's meeting on 
5/10 to vote for the authorization of more shares from 4 to 11 
billion. As for the chart, solid support was confirmed at the $60 
level by a hard bounce off $60.25 on Friday. This short-term 
reversal, which came with good daily volume (54.9m shares), was 
also reinforced by the 100-dma ($61.00). Although the $60 mark 
looks to be the near term bottom for ORCL, further declines 
should find firm support at the half-century mark. Use price 
reversals off support to trigger entries, when good daily volume 
(40.0m or better) is present. With a recovery in the technology 
group, ORCL could run to the 50-dma ($73.45), before finding 
initial resistance. Further up, swift resistance should be found 
at the $80 mark, bolstered by both the 20 and 30-dma's ($79.96 
and 79.83). We feel that an rebound in the technology sector will 
likely cause well known companies, who generate earnings, to 
rebound the strongest. We believe that ORCL should be one of 
these companies. We'll plan on holding through the shareholders 
meeting of 5/10, for a split announcement that may follow.  Our 
stop is at $57 to limit losses. (Remember to confirm strength in 
the broader market before initiating new plays.  In this 
environment, any short-term long play should be considered high-

Picked on April 16th @ $63.52
Change since picked 0.00

Chart =


TFS - Three-Five Systems $66.50 (-3.94)

So what has insulated this LCD manufacturer?  We suspect that the 
fact that the Company has a solid earnings and revenue stream due 
to a fast growing ubiquitous commodity product has helped TFS to 
avoid some of the tech wreck.  It does not hurt that the stock 
also trades on the NYSE.  LCD is the visual interface of choice 
for all wireless products as well as the majority of office 
equipment products.  Wireless product growth should be very 
strong for years to come and TFS stands to benefit.  The next 
generation of LCD products could be dominated by a new product 
that TFS is developing, LCD on silicon microdisplays. The stock 
price seems a bit low priced to be a legitimate split candidate. 
However, the Company did split its share 4:3 back in December 
with the stock only trading at $47 and change.  There is a 
shareholder's meeting on April 27th where a vote will be taken to 
increase the number of authorized shares to 60 million from 15 
million.  This action will help ensure that the Company will be 
able to enact more splits in the future.  Following an earnings 
report last week that saw the Company post a $0.27 versus a loss 
a year ago, Needham & Co raised their rating to a Strong Buy from 
a Buy and ING Barings raised their rating to a Strong Buy from a 
Buy. The very strong earnings beat First Call estimates by $0.12.  
TFS is a very strong relative strength play for us.  The MACD and 
OBV are both strongly positive despite the well publicized 
selling of everything technologically oriented.  If shareholders 
do not want to sell, then the path of least resistance could be 
up, as long as this market can finally stabilize.  A weak market 
could give us an opportunity to pick up the stock in the low 
$60's near support.  We strongly suggest that you wait for a 
bounce before buying.  A move below $62 could knock the stock 
down to the next support level of $54.  A close above $70 would 
be a solid indication that the stock is ready to challenge for a 
new high above $81.75.  Although individual stock selection is 
important, you need to be aware of the overall market condition 
before initiating a play.  Make sure the major tech Index, the 
NDX and the Dow hold Friday's lows before going long anything.  
We will exit this play if a split is announced.  As a long play 
in this environment, consider it high-risk.

Picked on April 16th @ $66.50
Change since picked 0.00

Chart =


VSTR - Voicestream Wireless $90.00 (-36.00)

Voicestream has become a virtual household name due to a 
widespread and popular advertising campaign, as well as very 
competitive and groundbreaking pricing for its digital wireless 
service.  Their exploding customer base has helped to contribute 
to a healthy stock price as wireless subscription rates continue 
to rise.  Last week it was reported that wireless subscriber 
growth in the United States jumped 24.3% to 86 million customers 
last year, according to an industry trade group.  When we last 
visited VSTR in early March we thought there was a good 
opportunity that the Company would announce a split.  Since it 
did not happen we think the odds that the Company will split this 
time around are very good as long as the stock can rally back 
into the $100's.  Earnings, always a good time to announce a 
split, are not until early May, so we may have some time for this 
play to develop.  VSTR has enough authorized shares to enact a 
2:1 or 3:1 split.  Although a bit battered and bruised, the stock 
of Voicestream has been showing a bit of resiliency by bouncing 
off of newly developed support in the low 80's, on an attempt to 
recover to the 200-dma now at $91.25.  We recommend trying to 
pick this stock up if it can bounce of this level again in the 
advent of continued selling in the overall market. If the bounce 
does not hold, you should stop yourself out at $79, a little bit 
below last week's low.  You also need to be wary of the overall 
market.  We saw the NDX (the NASDAQ 100 Index) bounce on Friday 
off of the 200 DMA at 3141.  We would avoid adding any plays if 
the NDX drops below this critical number.  A more cautious 
investor may prefer to wait for the stock to close above 
resistance of $100 before initiating a longer term position.  We 
will be exiting this position after any split announcement or 
before the next earnings announcement due in early May. (Remember 
to confirm strength in the broader market before initiating new 
plays.  In this environment, any short-term long play should be 
considered high-risk.)

Picked on April 16th @ $90.00
Change since picked 0.00

Chart =


ENE - Enron $69.75 (-1.75)

Enron Corporation is a global electricity, natural gas and 
communications company. The Company engages in the exploration 
and production of natural gas and crude oil, natural gas 
transportation, electricity generation and the development and 
operation of power plants, pipelines and other energy related 
assets. On Friday, shares of ENE opened lower and continued 
falling to an intra-day low of $66 before bouncing back late in 
the session. We did not get any confirmation. Instead, we got 
consolidation as the rest of the market tanked. The Company has 
scheduled its Annual Shareholder Meeting on 5/2 and they already 
have enough shares for a 3:2 split with 715.6 million shares 
outstanding and 1.2 billion authorized. We are looking for a 3:2 
split out of the shareholders meeting, or a 2:1 split if 
investors decide to authorize more shares. However, they could 
announce a split at any time. For now, we are still waiting for a 
positive market before we open new positions on ENE. Support has 
come in at Friday's low of $66 with stronger support at $62. 
Resistance is the 5-dma at $71 and then $74. Initiate new plays 
on a bounce off of $66 or a move above $71. Open new plays on 
heavy volume, only in a rising market. We recommend an exit in 
the session following  a split announcement or shortly after the 
Annual Shareholder Meeting. In this market, no stock is immune to 
a selloff, so we are placing a stop at $64.50, just below support 
at $65. (Remember to confirm strength in the broader market 
before initiating new plays.  In this environment, any short-term 
long play should be considered high-risk.)

Picked on April 13th @ $73.81 
Change since picked -4.06

Chart =


INKT - Inktomi $100.81 (-80.06)

With our buy target at the round number of $100 executed during 
Friday's carnage, we may be off to the races on this potential 
bounce play.  In our last writing, we mentioned that this is an 
extremely aggressive play.  We are attempting to capture a very 
quick bounce ahead of Tuesday's earnings.  We will definitely 
drop this play before the announcement after the close.  Although 
we always drop plays before major scheduled releases (split 
payable dates and earnings) it is particularly important that you 
exit this position before the news in light of what happened 
after Yahoo! released their blowout quarter.  Despite very good 
numbers, Internet leader Yahoo! was punished in a severe sell-
the-news drop.  It would take some pretty huge numbers to make 
INKT rally after their announcement.  The stock market is 
certainly going to be a huge topic of conversation this weekend.  
If people come out buying first thing Monday morning, look for 
INKT to be one of the early winners. A bounce of 10 points or 
more would not be out of the question.  If the market rolls over 
and the NDX turns negative after 10:00 AM EST, we suggest exiting 
INKT immediately. We could get another wave of selling.  If the 
market gaps down on the open, look to try and get long on bounces 
off of support at $95.  If things really get bad, you may be able 
to try and trade a bounce off of long term support at $78.  As 
for us, we'll be forced to exit on a stop just below the 200-dma, 
now at $91.  Our stop is $89.  Again, please remember to exit 
this position before the close on Tuesday.  (Remember to confirm 
strength in the broader market before initiating new plays.  In 
this environment, any short-term long play should be considered 

Picked on April 13th @ $110.56
Change since picked -9.75

Chart =


SDLI - SDL Incorporated $143.00 (-40.00)

Capturing a unique corner of the fiber optics market, SDLI has 
incorporated DWDM technology to improve the speed and efficiency 
of its fiber optic products. DWDM, which stands for Dense 
Wavelength Division Multiplexing, allows separate lightwaves to 
be matched with individual fiber strands for greater amounts of 
data transfer. This area of fiber optics, which is estimated to 
grow by 100% over the next five years, is being spurred by 
Internet growth. As for this week's stock performance, SDLI 
shares showed some strength on Friday, despite the continued 
descent of many technology stocks. Rising off a strong bounce 
from its daily lows, the run-up was confirmed by good intra-day 
volume (1.0m shares), and should present a support level along 
the $120 mark.  Our stop is at $118, since the volatility on this 
thing is huge.  Secondary support will likely be provided along 
the century mark, given a resumption of selling pressure. As for 
resistance, the buck fifty mark, bolstered by the 5-dma ($150.18) 
should offer some initial opposition. Entries can be initiated by 
price reversals off support or advances through resistance, when 
good volume and market strength are confirmed. Continue to plan 
your exits in front of the earnings announcement of 4/19 (After 
the market). (Remember to confirm strength in the broader market 
before initiating new plays.  In this environment, any short-term 
long play should be considered high-risk.)

Picked on April 13th @ $152.25
Change since picked -9.25

Chart =


VRSN - Verisign, Inc. $97.80 (-78.70)

Where were you on December 1, 1999? I can tell you where 
Verisign, Inc. was, right where it is right now. It was from this 
point in December that Verisign, Inc., the Internet-based trust 
Service Company began its 159-point ascent. Undoubtedly, the 
Internet was abuzz Friday with investors watching their 
investments, executing trades, or engaging in chat sessions with 
other market voyeurs. Verisign is in the business of making sure 
those transmissions are sent across the cyber highway with 
security. We began coverage of VRSN on Thursday with the 
expectation of grabbing some quick profits if the stock bounced 
off $100.00. The expected bounce came within minutes of the open 
and by 10:35 (EST) the stock had run up to $116.00. If you read 
our play hopefully you grabbed some profits and ran because that 
was the best profit offered all day. Mid-day offered one more 
bounce but the upside was limited to about 9 points. Then the 
selling kicked it with the rest of the markets and the stock 
retreated to a low of $91.00 (12/99 price) before closing at 
$97.78. Volume again was more than double at 7.8 million shares. 
Earnings are Wednesday after the close so this is still a very 
short-term play. Market momentum is critical with this play. Any 
new positions should only be accompanied by a bounce in the 
NASDAQ and the NDX (Nasdaq 100 Index), which closed right on its 
200-dma Friday.  Exit this play before the close on 4/19. Place a 
hard stop at $90. (Remember to confirm strength in the broader 
market before initiating new plays.  In this environment, any 
short-term long play should be considered high-risk.)

Picked on April 13th @ $114.69
Change since picked -16.89

Chart =


INTC - Intel Corporation $110.50 (-26.31)

More bloodletting in technology stocks Friday sent Intel shares 
charging through our stop level of $114. This sell-off, which was 
accompanied by strong volume (46.4m shares), marked a weeklong 
decline for the stock and represented a 20% loss from Monday's 
opening price. Given the magnitude of this decline, and the gap 
below the 50-dma on Friday, we believe the potential for further 
near-term declines in the stock is likely. Based on this, we are 
dropping the stock for now. However, from our research we feel 
that Intel shares will be poised for future gains throughout the 
remainder of the year. We'll keep you posted on these upcoming 
plays as they develop.

Picked on March 19th @ $129.88

Profit/Loss = -15.88 (-12%) (Stopped out Friday @ $114.00)
Best Profit = +15.51 (+12%)

Chart =



Aided by a 5-day decline in the NASDAQ and tech stocks on the 
NYSE board as well, Lexmark shares joined in the carnage, losing 
over 17 points on the week.  An opening gap down Friday set the 
stage for early morning selling, which pushed prices through our 
stop of $97.50. Though a rebound in technology stocks will remain 
a possibility, it was necessary for us to place a stop for intra-
day price moves below $97.50 as a cautionary step to further 
declines. It is our belief that LXK remains a solid growth 
company for the future, as such we'll keep you informed of 
impending plays as they occur.

Picked on April 4th @ $106.25

Profit/Loss = -8.75 (-8%) (Stopped out Friday @ $97.50)
Best Profit = +32.81 (+31%)

Chart =


SEBL - Siebel Systems, Inc. $86.56 (-40.26)

Despite being the feature article in Investors Business Daily 
today, in the Leaders & Success section; we must drop SEBL as it 
hit our stop at $95.00. We had hoped that SEBL would hold at the 
100-dma, but the across-the-board selling on both the INDU and 
the NASDQ, were way too much for almost any stock today. Perhaps 
we can find a bottom next week and see some good numbers from 
SEBL on Wednesday, when they announce earnings. We will keep an 
eye on SEBL and advise you of any opportunities that may develop 
with regard to a split run. 

Picked on April 11th @ $113.00

Profit/Loss = -18.00 (-16%) (Stopped out Friday @ $95.00)
Best Profit = +6.63 (+6%)

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.

Copyright 2001

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