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Email Version, Section 2, Sunday, 07/02/2000
The Candidate Newsletter  Sunday 07/02/00 2 of 2
Copyright 2000, All rights reserved.
Redistribution in any form is strictly prohibited.

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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
Monday's Candidate Play-of-the-Day -MRVC
Split Candidate Plays - New - Updates - Drops


In the past two weeks, has added several
enhancements to the site. We continue this weekend with the
addition of our SEC Filings Calendar.  Next week, look for
Monday's "Ask the Analyst" debut, to be followed by the
introduction of our FAQ page.

For now, check out the new SEC Filing Calendar at:

================================================== strives to be the very best at identifying
profitable split candidates and momentum stocks. 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.


Successful Announcement Predictions For The Past Week

Symbol         Company             Date Announced

KOPN        KOPIN CORPORATION           6/26/2000
PLT         PLANTRONICS                 6/29/2000
CHKP        CHECK POINT SOFTWARE        6/30/2000

Expected/Likely Announcements For The Coming Week

                                    Date Expected
Symbol         Company              To Announce*

RSAS           RSA SECURITY             7/05/2000

*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.


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===================== 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.


MRVC - MRV Communications Inc. $67.25 (+12.25)

Please see details in the New Candidate Play section below.

Picked on July 2nd @ $67.25
Change since picked 0.00

Chart =


ACTU - Actuate Corporation $53.38 (+8.82)

Actuate Corporation provides enterprise reporting software that
enables large organizations to extract, publish and disseminate
information across computing networks or the Internet. Its
e.Reporting Suite 4 is a scalable, dynamic Web data publishing
platform that can be seamlessly integrated into any e.Business
Website. Its e.Reporting system's server-centric architecture
provides the building blocks for an e.Business reporting
environment of any size. Their software allows a company to
enhance its Website with post-transaction content such as stock
portfolio reports, client statements and performance metrics,
thereby maximizing the value of corporate information and
creating a more loyal customer base. Actuate's customers include
the world's largest dot-com, financial services,
telecommunications, health care and media companies. This stock
came out in 1998, the early days of Internet madness, when Yahoo
(YHOO), Lycos (LCOS), Amazon (AMZN) and America Online (AOL) were
extremely hot because of the limited amount of publicly traded
dot-com issues. Two years have passed and ACTU has set itself
apart by posting net profits in 6 of the 7 quarters as a public
company. Despite the steady earnings performance, the stock has
had a wild ride, trading from a 52-wk low of $12 to an all-time
high of $72.88 on March 14th. One month later, ACTU hit an intra-
day low of $18.94 as the e-commerce shares were crushed during
the spring sell-off. Since then, the stock has made a comeback,
trading up to $54.88 on Friday. We believe that the stock is
ready to make an earnings run and could revisit it highs. It's
trading on the low end of most split ranges, but an announcement
could come with the earnings release on 7/12 after the bell, or
their next BoD meeting. The company currently has 100 million
shares authorized and 27.8 million shares outstanding so they
have enough shares for a split. Their last split was announced
out of a BoD meeting when the stock was trading at $44.88 so the
current share price is at split levels. Going forward, ACTU has
support at $51 with stronger support just below Friday's intra-
day low at $49. Set stops at $49 to limit losses. Resistance is
$55 and then $60. Initiate new positions on a bounce off of $51
or a move above $55 on volume greater than 150,000 shares.
Confirm market sentiment and sector momentum before starting new
plays. Look for an exit no later than 7/12.

Picked on Jul 2nd @ $53.38
Change since picked +0.00


ALTR - Altera Corporation $101.94 (-1.50)

Robust growth in the telecommunications and networking sectors
has increased demand for programmable logic devices, which lifts
earnings for Altera (ALTR). Currently, these 2 sectors account
for about 75% of ALTR's annual gross sales. So what is a
programmable logic device? PDL's are semiconductor chips that
offer on-site programmability to customers using the Company's
proprietary software, E+Max and Max+Plus. On Friday, the company
announced that they began shipping the world's largest
programmable logic device, the APEX EP20K 1500E. This device will
offer design flexibility and efficiency for high-performance,
system-on-a-programmable-chip applications. "With shipments of
the APEX EP20K1500E and EP20K1000E devices, Altera has regained
worldwide high-density leadership in the programmable logic
arena," stated Erik Cleage, Altera senior vice president of
marketing. We're hoping that this release, which caused shares to
open sharply higher on Friday, will provide the extra fuel for an
extended advance. Adding more excitement to the play,
shareholders voted in May to increase the number of authorized
shares from 400 million to 700 million. This now enables the
company to split its stock 2:1.  ALTR finished off the week on a
positive note, bouncing firmly off support on Thursday from its
50-dma. If this support proves to be a near term bottom, then
we'll look for any advances to find resistance at $105, bolstered
by the 10 and 20-dma's ($105.14 and $104.85) and at $110. Before
adding to positions at these levels, wait for good volume (4.0m
shares or better) to confirm the break through. With Friday's
advance to $101.94, we'll now be looking for support to come at
the century mark. We recommend placing stops fairly tight at $98,
just below Friday's low, to prevent against a sudden shift down.
Our target date will be the day before earnings (7/12), unless
our stop is hit.

Picked on July 2nd @ $101.94
Change since picked 0.00


COHR - Coherent Incorporated $83.88 (+10.88)

The laser business is not the slow defense-related industry its
once used to be. It's now becoming a growth industry with new
techniques in medical, commercial/OEM, entertainment and
telecommunication applications. Helping to lead the charge,
Coherent (COHR) is now regarded as a global leader in design,
manufacture, and sales of laser systems. Analysts are currently
expecting rapid growth in telecommunications and semiconductor
equipment area to help pave the way for a 41% increase in
earnings this year. Combine this with the fact that the company
currently has 100 million shares authorized and 24.8 million
shares outstanding, and we've got an interesting play with the
possibility of a 2:1 split. Additionally, the company's last
split was at $46.75, which is well below its present value.
Friday's strong 4.92% advance on good volume (419K shares
traded), leads us to believe that the stock may be on its way to
all time highs at the century mark. On route to this level, the
stock might first encounter resistance at $90. Look for good
volume (300K shares or more) to confirm advances through
resistance, prior to opening plays. However, if COHR retraces
before advancing then look for resistance at $80 and near
Friday's low of $78.69. Will set stops at $78.50 to protect
against further declines. Also, if the stock can move above $91,
then we'll move our stop to $85. Since earnings are still a
little off in the distance (7/23), we'll be using support and
resistance to govern our entries/exits.

Picked on July 2nd @ $83.88
Change since picked 0.00


CSCO - Cisco Systems $63.56 (+0.94)

CSCO has lost a lot of its luster based upon valuation concerns.
We have seen this before.  Just when the leaders appear ready to
be left in the cold, money begins to start pouring back into
them.  The primary reason that the interest comes back is because
of the safety in numbers factor, which really just means lots of
people and institutions own the stock.  There is a major
competition between institutional managers.  Nobody wants to look
stupid by missing a run in a stock with the stature of a CSCO.
Conversely they do not want to look stupid owning a ton of the
stock when the market is correcting.  After a long consolidation,
look for a bidding war to heat up as managers want to brag at the
end of the year about how "cheaply" they bought CSCO today.  CSCO
has an excellent split history but it probably is not a viable
split candidate at these prices.  The biggest potential bullish
influence on the stock right now is positioning in the potential
winners of the next quarter.  The market, and hopefully CSCO,
will likely rally on Monday due to a little holiday cheer.  If
traders come out of the holiday with a bullish bias look for CSCO
to enjoy a nice earnings run.  Earnings will be released in early
August.  The 50-DMA at $62.50 appears to be leveling off and
should start to provide a nice base for CSCO to start its rally.
Volume has been pretty anemic by CSCO standards and some of you
may wish to see some big numbers on up days before going long.
Understandably, OBV and Money Flow are currently neutral.  The
MACD is currently negative and RSI does have some potential.
Bottom line is that we are trying to get the jump on a potential
CSCO rally.  We definitely like the stock on a risk/reward basis.
We are setting our initial stop at $59.  Will raise our stop to
$64.88 if the stock climbs above $68.  Upper trendline resistance
will begin to factor in if CSCO moves to $69.  If it can beat
that number, we have a bullish inverse head and shoulders
formation.  We will definitely exit this position before the
August earnings.

Picked on July 2nd @ $63.56
Change since picked 0.00


KANA - Kana Communications $61.88 (+8.38)

Kana went from superstar to superdud in a very short time frame.
Throughout this incredible change in sentiment the company's
solid line of Internet software tools has not lost its luster or
efficacy.  This fact leads us to believe that if investors jump
back into Internet stocks with both feet, KANA should attract
some of those dollars.  Banc of America seems to agree and they
initiated coverage of KANA recently with a Buy rating.  With an
all time high of $175.50, it is almost unfathomable that the
stock plummeted to an April intraday low of $26.25 during the
correction. As impressive as the recent comeback has been in
percentage terms from the bottom, a retracement of only 50%, a
common occurrence after selling disasters, would take the stock
to $100.  Curious how those round numbers can come into play.
The 50-DMA has leveled off at $47 and change, which is an
indication that the worst should be behind KANA.  Volume has also
been picking up and consequently the OBV and Money Flow
indicators are looking much better and are indicating continued
advances for the stock.  The MACD is also positive and up
trending.  We are placing our initial stop on this play at $54.
We will stay with this play until we are either stopped out or
just before the earnings report which is tentatively scheduled
for July 26th.

Picked on July 2nd @ $61.88
Change since picked 0.00


MRVC - MRV Communications Inc. $67.25 (+12.25)

Hi, our name is MRV Communications and we are a recovering stock
split candidate. Here is our story if you'd care to listen. To
tell you a little about us, MRV Communications, Inc. is a world-
class leader in optical network components and systems. Our
company has leveraged its early leadership in fiber optic
transmission into a well-focused range of solutions, integrating
switching, routing, access servers and optical transmission
systems. We have initiated and funded cutting edge start-up
companies including Zaffire, Inc., Charlotte's Networks,
Hyperchannel, Zuma Networks and most recently RedC Optical
Networks, Inc., Optical Crossing and All Optical, Inc. It is hard
to believe we just split 2:1 back on May 30th, you'd think that
would keep our stock calmed down for a while; but no, we
immediately had a price appreciation relapse and the stock has
almost tripled since we split. Heck we haven't even had any major
news this month to bolster investor enthusiasm. Wait a minute, we
are announcing earnings later this month and are looking to post
a profit of .03 cents compared to the same quarter last year when
we actually lost .02 cents. Now mind you we have a little ways to
go, but we are nearing our split range at $100, maybe that's got
investors helping us in our recovery? I guess they are aware that
we still have 160 million authorized shares and can set a split
if we wanted too. Our story wouldn't be complete unless we told
you about our chart too. Currently we are experiencing much
needed support at $65 and the 5-dma at $62.50. Looking ahead
without projecting too much, we note that we had prior problems
with resistance at $70 back in March, but the market correction
was the real culprit back then. We now see that $70 is still a
challenge to us, but with the encouragement of the NASDAQ and the
SOX Index, we feel confident we can conquer that level and put it
behind us. I hope you'll see our sincerity to want to move higher
reflected in the fact that our trading volume has increased
almost 50% three of the last 5 trading days. Our journey higher
may involve a bounce off support or we may just take out $70 on a
burst of volume next week. Either way we see good things going
forward. If you doubt our potential for success then put a stop
in place at $61.88 to protect you if we can't stay clean and in
the green.

Picked on July 2nd @ $67.25
Change since picked 0.00


NT - Nortel Networks $68.23 (+2.35)

It seems as if Canadian-based optical companies have a slight
edge over their US counterparts right now. Nortel is leading the
way in fiber-optic networking and is giving telecom-giant Cisco
(CSCO) a decent fight in the space. Nortel Networks is a leading
supplier of data and telephony network solutions and services.
The Company provides design, development, manufacturing, and
support of data and telephony networks for carrier and enterprise
customers. They also have a several stakes in a number of optical
start-ups. NT could be the safest way to play the sector. On June
13th, the stock broke out of consolidation but fell short of a
new high. However, support came in at $65 and the stock traded in
a 6-point range as interest rate fears hung over the market. On
Friday, NT challenged the highs again but could not break through
$72. It pulled back to $68.22 by the closing bell. In the news on
Friday, NT announced that one of its affiliates, Elastic Networks
Inc., filed to register $75 million of common stock for sale in
an initial public offering. Elastic Networks was formed in 1997
as a unit of Nortel Networks and began doing business as a
separate company last year. Elastic Networks provides high-speed
DSL communications products (see CMTN). Nortel holds a 62.8%
stake in the company. Given the recent success of IPOs such as
Sonus Networks (SONS), ONI Systems (ONIS), and New Focus (NUFO)
and NT backing, Elastic Networks could be a big winner. We expect
NT to move to new highs as we move towards their earnings release
on 7/25 after the bell. They have an unlimited number of shares
authorized and 2.8 billion shares outstanding however, the share
price is below historic split levels. If NT gets above $80, we
may have better odds. On the technical side, NT has support at
the 15-dma, currently at $67 with stronger support at $65. Set
stops under $65 to minimize losses. Resistance is $70 and then
$72. Look for a bounce off of $67 or a move above $70 to open new
positions. Start new plays on volume of at least 5 million
shares, only in a rising market. Plan to exit by 7/25.

Picked on Jul 2nd @ $68.23
Change since picked +0.00


NXTV - Next Level Communications $85.75 (+17.50)

Communications equipment stocks are staging a very nice comeback.
Some of them are approaching and/or making new highs and others,
like NXTV are staging some decent recoveries.  NXTV is a curious
story in that it is a very innovative company that figures out
ways to get maximum performance out of old copper wire
technology.  These products are very valuable because, despite
what it seems like, not every telecommunications company will be
relying solely on new fiber optic infrastructure building.  It
makes sense to suck every utilizable drop out of the old
infrastructure before it is inevitably abandoned many years from
now. With NXTV inventing new products all of the time, think of
the company as a bridge between the old and the new technologies.
NXTV is a very risky play because the company is not yet
profitable and traders and long term investors are starting to
pay more attention to earnings these days.  NXTV is not yet
trading at a price that would make it a viable split candidate
but it is getting there.  That said, it is entirely possible that
last week's rally was being driven by the perception that NXTV
may be willing to split before it climbs back over $100.  NXTC
has enjoyed a nice run ever since it crossed over the 50-DMA,
which has now halted its descent and is leveling off at $68.  As
long as NXTV keeps taking out its previous day's high and stays
above its previous day's low we are comfortable with this play.
OBV is recovering nicely and the MACD is solid and rising.  The
comeback could last a while.  We are placing our initial stop at

Picked on July 2nd @ $85.75
Change since picked 0.00


ORBK - Orbotech Incorporated $92.88 (+10.31)

Positioned in the forefront of the electronics industry, Orbotech
(ORBK) has produced some of the finest state of the art machinery
for optical inspection and imaging technology available.
Analysts are expecting the company to bring in $3.08 in earnings
this year, a 24% increase from last year. Currently, ORBK has
21.3M shares outstanding with 20M shares authorized, so we don't
expect an upcoming 2:1 split, since the number of outstanding
shares already exceeds the amount authorized. As for the stock,
Friday's 3.88 point advance, which easily surpassed its most
recent high of $91.88, came on good volume (345K shares traded)
and suggests to us that ORBK may be on its way to the century
mark. Resistance at this level will likely be firm, given the
formational of a near term double top in this range. However, to
get to this level, volume will likely have to trade over 250
thousand shares a day. On the flip side, we anticipate the $91.88
level (previous high) to offer our initial support base.
Secondary support will likely follow at $90. If further weakness
pushes shares lower, then we recommend placing a stop at $89 to
prevent a possible shift in trend. In addition, if shares can
advance past $101, then we recommend moving stops up to $97 to
lock in gains. Look to open future plays when the stock reverses
sharply from support and is followed by good volume. Let support
and resistance signal your buy/sell points, since earnings are
not due out until August.

Picked on July 2nd @ $92.88
Change since picked 0.00


RSAS - RSA Security $69.25 (+6.75)

Thanks to companies like RSA Security we are able to transmit and
receive information over the Internet with peace of mind. RSA
Security, Inc. is a provider of electronic security solutions,
the Company helps organizations build secure, trusted foundations
for electronic business through use of its two-factor user
authentication, encryption and public key management products and
solutions. With nearly a half billion RSA-enabled applications in
use worldwide, more than six million RSA SecurID users and almost
20 years of industry experience, RSA has the proven leadership
and innovative technology to address the changing security needs
of e-business and bring trust to the new, online economy.
Breaking news on Friday was the announcement that Firstar
Corporation, a multi-state financial holding company, has
selected RSA BSAFE Crypto-J security software to provide security
for online bill presentment and payment services. The bank will
rely on RSA Security technology to encrypt consumers' data. As a
result, consumers will be able to use Firstar services to
simplify bill payment without risk to their confidential
financial information. Looking ahead, the company is due to
report earnings on July 13th and a shareholders meeting is July
5th. Estimates are for a profit of .21 cents versus .12 cents in
the same quarter last year. The company has exceeded earnings the
last three quarters in a row. On Wednesday of this week a special
meeting has been called by the company to vote on increasing the
number of outstanding shares from 150 million to 300 million. We
see the stock in split territory at $100 and the road may be
getting paved for that event. Technically the stock has support
at the 10-dma at $66 and resistance up at $72. Use a bounce off
support or a good move up with confidence reinforced by the DOW
and the software index. Recent gains have been achieved on good
volume; Friday's volume was recorded at almost a million shares
compared to their average of 526K shares. We will have stop in
place at $64.88, which is just below support.

Picked on July 2nd @ $69.25
Change since picked 0.00


CMTN - Copper Mountain Networks $88.13 (+7.88)

Copper Mountain Networks provides DSL equipment and solutions.
The Company is a leading supplier of carrier-class DSL
concentrators and network management solutions used to enable DSL
service using today's existing copper infrastructure. Shares of
CMTN moved higher on Friday, hitting an intra-day high of $90.50
before closing at $88.13, just under the 20-dma. The stock has
now broken above its 10-day downward trend and looks ready to
test the century mark as we move closer to the Company's earnings
announcement on 7/17 after the bell. We are looking for a split
announcement to come out with earnings or out of their next BoD
meeting. They already have enough shares to split and the stock
is above its previous split announcement price. For now, there is
support just below Friday's intra-day low at $86 with additional
support at the 10-dma, currently at $85. Place stops under $86 to
protect profits. If CMTN moves above $91, we recommend changing
stops to $88. Resistance has moved up to $90 and then $95. Start
new plays on a bounce off of $86 or a move above $90. Look for
volume greater than 1 million shares by midday and a rising
market before initiating new positions. Plan to exit if either
stop-loss conditions are met. If CMTN continues to run, we
recommend an exit in the session following a split announcement
or in front of the earnings release on 7/17.

Picked on Jun 27th @ $82.11
Change since picked +6.02


CMVT - Comverse Technology Inc. $93.00 (+3.50)

On Friday Comverse Technology said it would buy Gaya Software
Industries Ltd., for $25.1 million. The acquisition would allow
CMVT to deploy their services anywhere with the aid of the newly
acquired company's technology. The announcement coupled with the
late afternoon rally saw CMVT trade up by about 3 dollars on the
day. Volume was slightly below average at 1.9 million shares.
Comverse currently has enough authorized shares to set a 3:2
stock split. We see the company nearing its split range up at
about $120. To date CMVT had had 3 stock splits, the last in
April. Technically, support now rests at the 20-dma at $93
followed by the 100-dma at $89.25. Resistance will be encountered
at the 10-dma at $95 and then the century mark. Look for interest
to increase in the NASDAQ index next week with good volume over
2.5 million shares from the stock as your guide to entry. A
bounce off support or a move of conviction through resistance
with the indices in line would make a nice entry point. We will
place a stop at $88 but if the stock moves over $101, we will
tighten our stop to $97.

Picked on June 27th @ $95.31
Change since picked -2.31


EMC - EMC Corporation $76.19 (+0.19)

Picking the end of declines is always difficult but it looks like
the recent slide of EMC may be over, especially after Friday's
action.  EMC has long been one of the favorite technology stocks
to own among market professionals.  There are very few growth and
technology mutual funds that do not own a decent number of shares
of this data storage solution developer and pioneer.  The
seemingly limitless potential of technological advances to affect
our lives in positive ways may actually be limited by storage
capacity, hence the major importance of and investment popularity
in EMC.  This play is more of a momentum opportunity than a split
possibility right now because EMC just split its shares 2:1 one
month ago.  The market will probably focus on earnings now that
the FOMC is on summer hiatus and EMC has a solid history of not
disappointing analysts with their earnings.  This fact should
help the stock maintain its popularity throughout the earnings
period.  We were unsure what the effect of the highly anticipated
IPO of StorageNetworks would be on EMC.  Would this competitor
"steal" some of EMC's investment dollars or would the focus on
data storage create interest in the entire sector.  It appears
that the latter is true as both stocks performed solidly on
Friday.  StorageNetworks (STOR) enjoyed a first day gain of 234%
and EMC increased its share price $3.38, reversing a correction
that had lasted more than a week.  EMC enjoyed an outside day and
closed on its high print of the session.  We will see next week
if the rally was just some end of the quarter window dressing or
if EMC is ready to move and make a new high in the short term.  A
move above $77 on Monday would be very encouraging.  We would
certainly like to see some volume kick in as well.  It is time to
raise our stop to $71.  If EMC climbs above $81 we will raise our
trailing stop to $78.  One technical indicator that makes us
remain cautious is the MACD, which is currently negative.
Another solid day could reverse this indicator and turn it
positive.  The RSI has pulled back from overbought levels and has
some room before indicating the next overbought condition.  We
will be exiting this position either through an execution of our
stop or just before the earnings release, which is tentatively
scheduled for July 24th.

Picked on June 28th @ $75.25
Change since picked +0.94


ENTU - Entrust Technologies $82.75 (+18.31)

Entrust Technologies offers security software designed to ensure
the privacy of electronic communications and transactions across
corporate intranets and the Internet. Entrust provides public key
infrastructure (PKI) solutions that automate digital certificate
management and a secure, end-to-end, electronic transaction and
communications platform. On Friday, Sands Brothers raised their
price target on ENTU from $75 to $100 and reiterated their strong
buy recommendation. The stock traded higher on the news, hitting
an intra-day high of $83.50 and closing slightly off of its highs
on strong volume. Other positive technical signs include 3
consecutive higher highs, a bounce off of the 5-dma, and a close
above $80. It looks like ENTU is starting an earnings run into
the announcement on 7/18 after the bell. We are hoping for a
split with the earnings release. They currently have enough
shares for a 3:2 split or a 2:1 pending shareholder approval. In
the meantime, ENTU has support at $80 with stronger support at
$77. Places stops at $77 and look to bump them up to $82 if the
stock moves above $85.50. There is resistance at $84 and then
$90. Start new plays on a bounce off of $80 or a move above $84
on midday volume greater than 500,000 shares. Confirm market
direction and sector momentum before opening new positions. Look
for an exit by 7/18.

Picked on Jun 29th @ $74.25
Change since picked +8.50


FDRY - Foundry Networks $110.00 (+6.88)

Foundry Networks is a provider of high performance networking
products. The Company provides Internet routers, Layer 2 and 3
switching routers, and Internet traffic management systems that
are designed to handle massive amounts of Internet traffic and
ease Website congestion. Their products are used by large ISP
such as America Online (AOL), EarthLink (ELNK) and MSN (MSFT).
Foundry Networks is attempting break out of its trading range. On
Friday, the stock traded up to an intra-day high of $114.75 but
pulled back towards the close, leaving shares of FDRY at the top
of the trading range. Volume was heavy as Chase H & Q coverage
initiated FDRY with a "buy" rating. Hopefully, the stock will
able to hold above $110 and regain its momentum and as we move
closer to the earnings announcement on 7/13 and their BoD meeting
on 7/19. We are looking for a split announcement to come with the
earnings release of following the BoD meeting. Until then, FDRY
has support at the 20-dma at $105 with stronger support at the
century mark. Set hard stops at $97. If FDRY trades above $115,
we recommend changing stops to $109.75. Resistance is the 100-dma
at $111 and then $115. Look for a bounce off of $105 or a move
above $111 to start new plays. Initiate new positions on midday
volume greater than 800,000 shares and a rising market. Exit no
later than 7/12.

Picked on Jun 11th @ $109.63
Change since picked +0.38


FRX - Forest Laboratories $101.00 (+7.03)

Drug stocks are trying to establish the premiere leadership role
of the growth AND value markets.  Value players like to
concentrate on the solid fundamentals, stable earnings and
relatively modest PE's.  It is important to point out that some
of the PE's of drug stocks are at levels that value investors
would never have considered just a few years ago, but compared to
Internet and other new technology stocks, drugs are a relative
bargain.  Growth investors point to stable earnings growth, a
huge pipeline of new drugs that should maintain that growth, an
aging population guaranteeing a solid customer base and the
limitless possibilities for new drugs to come from the Human
Genome project.  We have picked Forest Laboratories because not
only does the company enjoy all of the positive factors mentioned
above, but the stock also has one of the strongest looking charts
in the sector.  A new high was established just last week and the
stock topped out at $103.19.  The long-term trend is decidedly
positive and $100 is now pretty important psychological support.
Just in case there is a fake out drop below $100, we will set our
stop at $98.  The MACD and Money Flow are solid and are
indicating that the trend to move higher could continue.  The RSI
still has upside potential.  We will exit this position if there
is a split announcement.  If the stock moves above $106, we
suggest raising your stop to $102 to lock in profits.

Picked on June 29th @ $102.75
Change since picked -1.75


INKT - Inktomi $118.25 (-22.13)

Inktomi was one of a handful of the biggest winners during the
Internet stock bid up frenzy of the past year.  The company
concentrates on providing search engine capabilities and other
critical software applications for Internet Service Providers
(ISP's).  INKT is also a major name in the Internet shopping
arena and controls a powerful and well-recognized shopping
engine.  In all likelihood, INKT is probably here to stay or at
the very least will become a powerful partner if there is
continued consolidation in the industry.  INKT had been staging a
solid comeback from the spring correction until a news item last
Monday derailed the rally.  Yahoo! has decided to drop INKT's
powerful search engine from its general public site.  However,
Yahoo! did decide to use INKT's powerful search engine
capabilities for Corporate Yahoo!.  The news should have been a
non-event because Yahoo! only accounts for 2% of INKT's revenues.
However the market perceived the news differently and cratered
the stock.  We feel that INKT has a good shot at bouncing back
from this drop and that is why we are currently playing the
stock.  INKT also has some split potential.  Historically the
company has announced splits in December.  On July 26th the
company will be accepting a shareholder vote to raise the number
of authorized shares to 1.5 billion from 300 million.  The
pending vote may create a little interest from split speculators
ho believe that INKT has a shot to announce a split sooner rather
than later.  INKT is attempting to build a base just above a
solidly uptrending 200-DMA that is currently at $109.38.  Bounces
off this trendline can be bought by patient investors.  OBV and
Money Flow both took hits after Monday's high volume drop.
However it is encouraging that selling volume has dropped during
the subsequent trading days.  Odds are that INKT will either
trade sideways or start to trend back higher.  RSI has a lot of
room to the upside. One technical indicator that has us a bit
concerned is the MACD, which has turned negative and is giving a
sell signal.  A couple of up days will get this indicator back on
track.  We are setting our initial stop at $112.50.  If the stock
climbs above $125 we will raise our stop to $119.  If we are not
stopped out we will exit this position before the July earnings
or if there is a surprise split announcement.

Picked on June 27th @ $120.69
Change since picked -2.44


PRSF - Portal Software Inc. $63.88 (+15.32)

Building a better mousetrap in the world of billing software and
on-line accounting is what Portal Software is all about. Portal
Software, Inc. develops markets and supports real-time, scalable
customer management and billing software for providers of
Internet-based services. Portal's Infranet software is a
comprehensive solution that meets the complex, mission-critical
provisioning, accounting, reporting and marketing needs of
providers of Internet-based services. On Friday PRSF joined the
afternoon buying frenzy and traded up on better than twice its
normal volume of trading. The company recently signed an
expansion deal moving them into the nation of China to handle the
billing and on-line accounting of three of China's major
communication companies. On the home front, Reuters also has
taken a shine to PRSF, signing them up to handle the billing
services for their Internet related services. The stock continued
its strong move up from the 100-dma, coming to rest just below
$64. Support is now at $60 and resistance will be marked at $65.
Look for continued momentum in the NASDAQ to return after the
holiday with emphasis in the software index leading the way.
Volume over 2 million shares would be considered bullish and
would indicate continued interest in the stock. We will watch for
further upside and will place our stop at $59 but will adjust it
to $62 if the stock makes an intra-day move over $66.

Picked on June 29th @ $61.00
Change since picked +2.88


RBAK - Redback Networks Inc. $178.00 (+42.50)

If I could give you a million reasons to invest in Redback
Networks would you be interested? On Friday the provider of
advanced networking systems traded up 6% on volume that was 1
million shares greater than average. If you are just joining us
for our coverage of this very profitable play, Redback Networks
Inc. is a provider of advanced networking systems that enable
carriers, cable operators and service providers to rapidly deploy
high-speed access to the Internet and corporate networks. As the
gains reflected above will show, this play has been a good one
for us. On July 12th RBAK will announce their earnings and we are
expecting a stock split announcement to adjoin that event.
Shareholders recently gave the thumbs up to increase the number
of outstanding shares, so barring a disaster with earnings things
look good. The last 2 quarters RBAK has beaten expectations and
this quarter analysts will be looking for a profit of .04 cents
according to first Call. The stock currently has support at
Friday's opening price of $169.50 and resistance up at $180. Look
for the same scenario next week to bolster the stock higher, good
volume and momentum in the IIX Index and the NASDAQ. We will have
a stop in place at $169 but if the stock moves over $185, we will
adjust our stop up to $179.

Picked on June 18th @ $119.00
Change since picked +59.00


CLRN - Clarent Corporation $71.50 (+10.00)

Friday was pretty wild for the shares of CLRN.  The stock broke
out and peaked at $76.38.  The move allowed us to raise our
trailing stop to $72.  It was a bit surprising that the pull back
actually triggered the stop but we are happy to pocket a very
nice profit for a one-week trade. We will definitely keep
watching this one as CLRN seems like it will try and make another

Picked on June 25th @ $61.50

Profit/Loss +10.50 (17%) (Stopped out @ $72)
Best Profit +14.88 (24%)


CRA - PE Corp Celera Genomics $93.50 (-33.50)

Yuck, no investor likes to loose money and that includes us. We
were looking for a relief bounce to come after the stock sold on
the news last Monday, but that relief never fully materialized.
We were stopped out of this play on Friday at $96.75. We
initially made the mistake of introducing the play without a stop
and for that sin we were not forgiven.  We will monitor CRA for
future trading opportunities and will advise you accordingly at
that time.

Picked on June 25th @ $125.50

Profit/Loss -28.75 (-23%) (Stopped out Friday at $96.75)
Best Profit -13.25 (-11%)


RATL - Rational Software Corporation $92.94 (+12.19)

After making a good attempt at the $100 mark in early trading
Friday, RATL finished off the day with a bearish shooting star
formation. Adding more intensity to this pattern, the move was
accompanied by strong daily volume of 2.05 million shares. Given
this weakness we may be watching the top of this advance begin to
emerge. The good news is that we we're once again able to profit
from the intra-day volatility. As shares moved up through $97.50
our stop of $95 became effective. So even with the late day
pullback we were still able to exit the play with a 1% gain. Not
bad, considering the alternative.

Picked on June 29th @ $94.00

Profit/Loss = +1.00 (+1%)  Stopped out at $95.00
Best Profit = +4.63 (+5%)


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of any stock but an information resource to aid the investor
in making an informed decision regarding how to trade stock
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