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Email Version, Section 1, Tuesday, 07/18/2000
The SplitTrader.com Newsletter          Tuesday 07/18/2000 1 of 1
Copyright 2000, All rights reserved.  
Redistribution in any form is strictly prohibited.  

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In This Newsletter:
===================

Market Commentary - Economic Data Overrides Earnings
Definition of the Day
Tuesday's Split Announcements - UVN, INCY, PROX, and MER
Sector Watch - Breakdown by sector of market performance.
Wednesday's Expirations
Wednesday's Play-of-the-Day - None chosen
Plays - New - Updates - Drops

==================================================================



Market Commentary
=================

Economic Data Overrides Earnings

There's nothing like a hot economic data set to cool an 
investor's jets.  Before the opening bell today, the Bureau of 
Labor Statistics released its Consumer Price Index (CPI) for 
June.  The CPI, a measure of inflation at the consumer level, 
advanced 0.6 percent for June, 0.1 percent ahead of the 0.5 
percent consensus estimate.  However, the core rate, which 
excludes food and energy (you know, the stuff that most 
impacts your wallet), matched estimates with a 0.2 percent 
advance.

The stronger-than-expected increase comes on the heels of a 
relatively tame 0.01 percent increase in May.  The principal 
cause of this large inter-month surge was energy.  Gasoline 
prices jumped 8.8 percent in June, the biggest increase since 
March.  This, in turn, forced the pump price up to a 
nationwide average of $1.71 per gallon.  

So, after a four-day surge that that saw the Nasdaq Composite 
Index (COMPX) advance over 300 points, investors finally had a 
good reason to do a little profit-taking.  And profit-take 
they did.  When the closing bell sounded, the COMPX was down 
97.50 points, or 2.28 percent, to 4,177.17.  

In addition to suffering from a little inflation anxiety, 
investors were also on edge because of slew of big-cap tech 
earnings due after the close.  Microsoft (MSFT) traded flat 
for most of the day, closing up $0.31 to $78.50.  However, 
after the close, the software king reported earnings of $0.44 
per share, beating the First Call estimate by $0.02 and the 
whisper number by a penny.  

Meanwhile, chip making giant Intel (INTC) closed off $3.31 to 
$143.00 in anticipation of its earnings, which, like 
Microsoft, didn't disappoint.  The company posted a profit of 
$3.5 billion, or $0.50 per share (figures are adjusted to 
reflect a 2-for-1 stock split set for July 30), beating the 
First Call estimate by $0.01. 

Still, despite today's 2 percent drop, the COMPX remains 
healthy from a technical perspective.  The index is displaying 
a strong upward trend, with today's decline actually receiving 
support from the upward-sloping trend line.  What's more, the 
index remains 110 points above its 150-dma of 4,067 and over 
300 points above its 200-dma of 3,831.41.  The COMPX's subdued 
volume today could also be interpreted as a technical 
positive.  Only 1.47 billion shares changed hands today, an 8 
percent decrease from Monday's level, which means there wasn't 
a mad dash to take profits during the sell-off.

Chart of the Nasdaq Composite:


As for the old-economy issues, the action was equally as 
languid, if not as dour.  The Dow Jones Industrial Average 
(INDU) lost 64.35 points, or 0.60 percent, to 10,739.92.  
Pressuring the INDU (besides Intel) were some of its older 
components.  Kodak (EK), Caterpillar (CAT), International 
Business Machines (IBM) and Hewlett Packard (HWP) all suffered 
losses of at least $2 or more.  

Technically, the INDU offered little encouragement.  Volume 
was anemic, with just over 900 million shares changing hands 
on the NYSE, and breadth was bad, with decliners beating 
winners by a 17 to 12 by a margin.  Moreover, the INDU appears 
to have run into resistance at the 10,850 level, while, at the 
same time, falling through its 150 and 200 day moving 
averages.  

Chart of the Dow Industrial:


As for the broader and smaller markets, they mirrored trading 
on the COMPX and the INDU.  After fours days of gains, both 
the S&P 500 Index (SPX) and the Russell 2000 Index (RUT) 
reversed course.  The SPX lost 16.75 points, or 1.11 percent, 
to 1,493.74, while the RUT lost 8.90 points, or 1.63 percent, 
to 536.28.  

In stock news, earnings continue to dominate the headlines.  

Chipmaker Rambus (RMBS) posted third-quarter earnings of $0.04 
per share after the market's close, matching the First Call 
estimate.  However, ahead of the news, the company's shares 
slipped $6.63 to $101.88.  

Other chipmakers posting earnings today included Lattice 
Semiconductor (LSCC), Novellus Systems (NVLS) and Applied 
Materials.  All three reported analyst-beating earnings, but 
all three finished the day in the red.  Semiconductors sector 
took it on the chin today after Merrill Lynch advised its 
clients to lighten up on the sector.  

If the investor disdain seemed a little excessive in the chip 
sector, look at how some other tech issues faired after 
reporting earnings today.

Shares of network equipment maker Copper Mountain Networks 
(CMTN) were obliterated, falling $29.50 to $94.19 despite 
reporting earnings of $0.24, two cents ahead of the First Call 
estimate.  But according to UBS Warburg analyst Anton Wahlman, 
some investors expected the company to earn as much as $0.35 
per share.  

Another networking/earnings loser was Efficient Networks 
(EFNT), which wasn't so efficient today.  The company lost 
$13.00 to $89.00 after reporting a loss of $0.16 per share, a 
penny worse than the First Call estimate of $0.15.   On the 
other hand, if revenues, and not earnings, are you're favorite 
high-tech barometer. Efficient did post revenues of $101.9 
million for the quarter, a 1,223 percent increase over the 
year-ago period.  Does that help?  I didn't think so.  

How about Digital Island (ISLD), could it buck the negative 
high-tech earnings trend?  No.  Shares of the software maker 
tumbled $6.56 to $38.06 after reporting a loss of $1.51 per 
share.  Granted, a buck-fifty loss might not be a cause for 
celebration, but it still beat the First Call estimate by 
$0.05

Meanwhile, Unisys Corp (UIS) had the dubious distinction of 
posting the largest percentage decline on the S&P 500.  The 
former mainframe stalwart fell $2.75 to $11.38 after posting 
earnings of $0.18 per share compared to the First Call 
estimate of $0.19.  Hard to believe the company could hit the 
estimate, considering it had just revised its earnings down 
just last month.  

Among the Dow Jones Industrials reporting today, General 
Motors (GM) added $0.44 to $60.61 after posting second-quarter 
earnings of $2.93 a share, and drug maker Johnson & Johnson 
(JNJ) inched up $0.66 to $95.00 after posting second-quarter 
earnings of $0.94 per share 

Finally, the law profession's cash cow, Philip Morris (MO), 
added $0.44 to $24.06 after posting second-quarter earnings of 
$0.95 a share, matching the First Call estimate.  Big MO made 
$0.85 per share in the year-ago period.  

So far, 25 percent of the S&P 500 companies have reported 
quarterly results.  According to First Call, operating profits 
have grown an average 15.8 percent compared with the long-term 
average of 2.9 percent.  Furthermore, of the companies that 
have reported, 63 percent have beaten expectations, 32 percent 
have met them and 5 percent have fallen short. 

Looking ahead to tomorrow, some technicians are looking at 
today's decline in the tech leaders as a market positive, 
reasoning the pullback will give short-term traders logical 
points from which to initiate a trade or accumulate a 
position.  Even if that's not the case, the consensus opinion 
is that worse is behind the COMPX and there is little 
likelihood the index will test its 200-dma anytime soon. 

One thing is for sure, though, earnings will continue to take 
center stage.  

However, over the next day or two, traders will likely remain 
tentative, regardless of how robust earnings are, ahead of 
Alan Greenspan's congressional testimony on the state of the 
economy this Thursday.  

S.P. Brown
Asst. Editor



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Definition of the Day
=====================

Retention Rate

The Retention Rate refers to the percentage of net earnings, or 
after-tax profits, that are available to be re-invested in the 
company after dividends have been distributed to shareholders.

For the complete definition, please go to:
http://members.splittrader.com/glossary/viewglossary.asp?glossaryid=442



Tuesday's Split Announcements
=============================

Tuesday, July 18, 2000 After the Market

Es Televisión! Univision Stock Split Follows Earnings Release 

After the close of market, Univision Communications Inc.(NYSE: 
UVN) announced that its Board of Directors approved a two-for-one 
stock split of the Company's common outstanding shares to be paid 
in the form of a 100% stock dividend. The distribution of the 
additional shares is set for August 11, 2000 for qualifying 
stockholders, and shares are expected to begin trading split-
adjusted on August 14, 2000. 

For the complete announcement, please go to:
http://members.splittrader.com/announcements/071800_4.asp

===

Tuesday, July 18, 2000  After the Market

Second Quarter Earnings Result in 2:1 Stock Split for Incyte

The Board of Directors of Incyte Genomics, Inc. (Nasdaq: INCY)
announced a two-for-one stock split and better than expected
earnings, following the closing bell today. The stock split will
be issued in the form of a 100% stock dividend payable to
eligible shareholders on August 31, 2000. This will mark the
second two-for-one stock split in the Company's history.
Currently there are 200 million shares authorized with 32 million
shares outstanding, and a float of just 26.1 million.

For the complete announcement, please go to:
http://members.splittrader.com/announcements/071800_3.asp

===

Tuesday, July 18, 2000  After the Market

Stock Split is Triggered by Proxim's Outstanding Growth 

Amidst the multitude of companies releasing earnings today, 
Proxim, Inc. (Nasdaq: PROX) announced after the bell that its 
Board of Directors approved a two-for-one stock split of the 
Company's common outstanding shares. Shareholders are set to 
receive new shares on or about August 18, 2000 and the stock is 
expected to begin trading split-adjusted on August 21, 2000. This 
will be the first stock split for Proxim. 

For the complete announcement, please go to:
http://members.splittrader.com/announcements/071800_2.asp

=== 

Tuesday, July 18, 2000  Before the Market

Number 1 US Brokerage Declares Stock Split, Reports Q2 Profits

Before market hours today, Merrill Lynch & Co. Inc. (NYSE: MER)
released second quarter earnings and announced that its Board of
Directors approved a two-for-one stock split of the Company's
common outstanding shares.

For the complete announcement, please go to:
http://members.splittrader.com/announcements/071800_1.asp



============
Sector Watch
============

As of Market Close - Tuesday, July 18, 2000 

                                  Key Benchmarks
Broad Market           Last     Support/Resistance   Alert
****************************************************************

DOW Industrials      10,739      10,450  10,850         
SPX S&P 500           1,493       1,435   1,520           
OEX S&P 100             807         775     822           
RUT Russell 2000        536         500     550           
NDX NASD 100          3,960       3,450   4,100         
MSH High Tech         1,060         965   1,100           

XCI Hardware          1,556       1,440   1,600           
CWX Software          1,244       1,160   1,360         
SOX Semiconductor     1,207       1,060   1,281         
NWX Networking        1,338       1,150   1,400         
INX Internet            528         470     637           

BIX Banking             545         520     565            
XBD Brokerage           564         480     590             
IUX Insurance           638         610     660           

RLX Retail              926         860     960            
DRG Drug                398         385     430             
HCX Healthcare          826         800     880             
XAL Airline             176         154     180           
OIX Oil & Gas           288         285     315             

This section of the investment advisory website highlights 
SplitTrader.com's stated Sector Watch across broad market indices 
and industry sectors. SplitTrader.com 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 
indicators.  

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.



=======================================
Wednesday's Expirations by Payable Date
=======================================

Target Corporation (TGT) splits 2:1 
Energis PLC (ENGSY) splits 5:1



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=====================
SplitTrader.com Plays
=====================

The PLAY LEGEND:

SplitTrader.com Play Recommendations.

Updates are just that - updates on continuing plays
New plays are brand new for the newsletter.
Closing plays are 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 

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

On the SplitTrader.com website we have very detailed profiles 
for the stocks we play.  Please take the time to visit the site
and look up a stock's profile if you are interested in more
information.
================================================================

WEDNESDAY'S PLAY-OF-THE-DAY
===========================

No Play-of-the-Day chosen



NEW SPLIT RUN PLAYS 07/18/00
============================

NONE



NEW SPLIT CANDIDATE PLAYS 07/18/00
==================================

MERQ - Mercury Interactive $108.00 +5.19 (+1.44)

Mercury Interactive is a leading provider of integrated 
performance management solutions. The Company's software products 
and hosted services enable businesses to test and monitor their 
Internet applications which helps improve the performance, 
availability, reliability and scalability of their Web sites. On 
Tuesday, the stock showed signs of recovery from a profit taking 
following earnings, bouncing at the century mark and finishing the 
day with a gain despite a weak market. We feel that MERQ could 
make a full recovery and possibly challenge its all-time high. 
Earnings were strong and Merrill, CIBC Oppenheimer, and Prudential 
upped their price targets on MERQ following the earnings release. 
They may also announce a split at their next BoD meeting. The 
Company currently has enough shares for a split with 240 million 
shares authorized with 79.5 million shares outstanding and the 
stock price is above historic split-levels. MERQ announced their 
last split when the stock was trading at $87.63 following a BoD 
meeting. Going forward, MERQ has support at the 15-dma, now up to 
$103 with stronger support at the century mark. Resistance is $110 
and then $115. Look for a bounce off of $103 or a move above $110 
on midday volume of at least 1 million shares to open new 
positions. Confirm market sentiment and sector direction before 
initiating new plays. We recommend placing stops at $99 as 
protection. If the stock trades above $110, we suggest moving 
stops up to $104.88. Exit in the session following a split 
announcement.

Picked on Jul 18th @ $108.00
Change since picked +0.00

===

SAPE - Sapient Corporation $125.06 +7.50 (+3.06)

Sapient is one of the comeback kids as the stock has staged a 
monster move from the correction lows.  The April low was $54.50.  
Sapient has created a niche for itself by designing custom 
software for companies that wish to develop their Internet 
systems.  Sapient has an impressive client list that crosses over 
several industries.  Obviously the Internet is here to stay and 
Sapient is striving to be one of the biggest beneficiaries of a 
corporate environment where you need to be an Internet player or 
die.  Here is a shocker; Sapient is actually profitable, which may 
account for some of its quick recovery.  Earnings are expected to 
be released on August first and the company is looking to state 
profits of $0.19 for the quarter.  The stock is also a viable 
split candidate.  The previous two 2:1 splits were announced when 
the stock was trading at significantly lower prices.  In May, 
shareholders approved an increase in the number of authorized 
shares so no further action is necessary to effect a split.  Now 
that the stock has rallied 150% from its lows the question is 
whether it has enough momentum to carry it to a retest of its 52-
week high at $151 and change.  There is very little resistance 
ahead of this path and with the stock closing almost on its high, 
a little pop tomorrow and the stock could easily be on its way.  
This is a risky play because of a low float and small average 
daily volume of just over 500 K.  Therefore it does not take much 
to move this day trader's favorite.  The MACD is positive but may 
be a bit ahead of itself but Money Flow and OBV are both very 
strong and are indicating that the rally could continue.  The RSI 
does have a little room to go higher before signaling a sell 
signal.  We are setting our initial stop at $118.00.  Long term 
support can be found all the down at $103.88, which is the 50-DMA.  
We will exit this play if there is a split announcement or just 
before earnings, whichever event occurs first.

Picked on July 18th @ $125.06
Change since picked +0.00

===

SSSW - SilverStream Software Inc. $58.00 -0.75 (+0.56)

SilverStream Software announces the availability of a "suite" new 
deal. On Monday, SilverStream (SSSW) announced the availability of 
SilverStream ePortal, a complete suite of eCRM (Electronic 
Customer Relationship Management) software for building e-business 
solutions. SSSW is a global provider of software and services that 
enable businesses and other large organizations to create deploy 
and manage software programs for Intranets, extranets and the 
Internet. We begin our coverage of this play ahead of earnings, 
which are scheduled for July 24th. Expectations are for a loss of 
33 cents per share, versus a loss of 37 cents in the same quarter 
last year. We see SSSW as a split candidate at $70.00 and with 100 
million shares authorized and no previous split history, we see no 
problem for an announcement with earnings. The company has beat 
earnings expectations in the last two quarters. On Tuesday the 
stock suffered a minor loss along with the broader markets after 
inflation fears resurfaced after the release of the CPI numbers. 
The stock has now found firm support at the 5-dma at $56.00, below 
that we measure the next support at the 20-dma at $52.00. Looking 
overhead we see resistance will likely be challenged at $60.00 and 
then at the 200-dma at $67.00. In order for any real gains to take 
place we will want to see conviction ramp up in the volume. 
Average volume is 211K shares but breakouts have been recorded 
with more than 500K shares changing hands. Ahead of next Monday's 
earnings we will want to see increased volume in the stock, 
positive momentum in both the NASDAQ and the Computer Sector 
(IXCO). Open new plays with a strong bounce off support on good 
volume. This will be a short-term play for us, as we will exit 
ahead of Monday's earnings release. Additionally, should things go 
awry we will place a protective stop at $52.00 to limit our 
losses.

Picked on July 18th @ $58.00
Change since picked 0.00

===

VRSN - Verisign Incorporated $179.13 -7.94 (-12.88)

Business transactions on the web can be a risky proposition for an 
unprotected, unsuspecting e-business website. The problem: the 
expansion in email, the Internet and corporate networks has 
enabled the hacker to target a greater number of unprotected 
online businesses. The simple solution? Have VRSN develop a 
tailor-made electronic commerce network for stopping the problem 
before it starts. With a strong business model and increasing 
revenues, we're hoping some new buyers will help generate a near-
term advance. Currently, steady buying from investors has helped 
to push shares higher and are currently in between their 2 most 
recent splits ($236.69 and $118.50). And although the company 
currently has 115.4 million shares outstanding with 200 million 
shares authorized, not enough for a 2:1 split) the BoD's may 
consider authorization of additional shares if prices continue to 
climb. Most recently, shares have consolidated over the last 
couple of days, effectively closing an earlier gap up from 
$177.69. Along with closing the gap, the stock has come down on 
weaker than average volume (less than 4.3m shares traded). With 
the 20 and 30-dma's ($173.08 and $174.37), we'll be looking for a 
strong reversal off this level to trigger our initial entry. So 
the stock will need to hit $174 before we open any new positions. 
If the stock can produce an advance, then we'll look to the double 
century mark ($200) for opposition. We recommend setting stops at 
$169 because the market may not be so agreeable. Confirm your 
entry point when VRSN can reverse from support ($174) on good 
volume. We'll plan on using support and resistance to dictate our 
buy/sell points, before exiting the stock by the close of 7/26, 
for the earnings report.  Remember this play will not initiate at 
the current price; the trigger for entry is $174.

Picked on July 18th @ $174.00  (Pending execution)
Change since picked 0.00 



SPLIT RUN PLAY UPDATES 07/18/00
===============================

NONE



SPLIT CANDIDATE PLAY UPDATES 07/18/00
=====================================

AMGN - Amgen $74.86 +2.48 (+4.09)

Amgen held up pretty well on Tuesday. Shares of AMGN traded as 
high as $76 but could not break through resistance at $76.50, the 
stock's all-time high. AMGN closed the session with $2.47 gain on 
average volume. The stock has now made 3 higher lows and it could 
be ready run as we are just 6 sessions away from the earnings 
announcement, scheduled for 7/26 after the bell. We are looking 
for a split announcement with the release. Amgen has enough shares 
for a split and the stock is trading around historic split levels. 
Their last split announcement came with an earnings report when 
the stock was trading at $86.13. Until then, AMGN has light 
support at $74 with stronger support at the 10-dma, now at $73. 
Place stops at $72.44 to lock in gains. Move stops up to $74 if 
AMGN trades above $76. Resistance is $77, just above the all-time 
high, and then $80. Open new positions on a bounce off of $74 or a 
move above $76 on midday volume greater than 4 million shares. 
Confirm market direction and sector momentum before starting new 
plays. Look to exit no later than 7/26.

Picked on Jul 16th @ $70.75
Change since picked +4.09

===

ANDW - Andrew Corporation $33.19 +0.38 (+1.25)

The evolution of the Internet and wireless communications 
into a global consumer network is creating the need for a 
higher level of performance. This new standard of performance 
can be defined as the need for more speed. ANDW's solution? 
Strategically develop state of the art products for virtually 
all aspects of voice, video and data communications. With 
each new product the company develops, it seems investors and 
traders keep pushing the company's shares higher. The stock 
has remained on a slow but steady upward course so far this 
week, on route to resistance at the 50-dma of $34.11. With 
earnings out on Thursday morning, and our exit by tomorrow's 
close, we'll now look for the 50-dma as a level to take 
profits. However, if we get an advance just under this level, 
we recommend placing a tight trailing stop, should sudden 
reversal send prices lower. For intra-day plays, we'll be 
looking to make quick profits if ANDW can generate a sharp 
bounce from support at the 5-dma ($32.24). We believe that 
selling a stock while holding a profit is better than trying 
to get additional gains with an increased risk of losing your 
profits. Design exits ahead of Wednesday's close, since 
earnings are due out Thursday morning. 

Picked on July 13th @ $31.94
Change since picked +1.25

===

CSCO - Cisco Systems $67.25 -2.38 (-1.00)

Cisco System's resistance became the market's resistance and it 
might not have been a coincidence.  CSCO struggled to break above 
$70 yesterday, and today there was profit taking not only in the 
shares of CSCO but also technology stocks in general.  The CPI 
numbers created the profit taking excuse.  The pullback was 
probably healthy for the market and not unexpected, especially 
since this is options expiration week which usually sees an 
increase in volatility as major market participants unwind their 
positions.  CSCO may get a little boost tomorrow as fellow 
technology bellwethers INTC and MSFT both reported decent numbers 
after today's close.  However, AAPL also reported and beat the 
Street by a penny but it is currently down five points.  The most 
likely scenario for tomorrow is a little follow through to the 
downside with a bounce and some overall market stability later in 
the day.  CSCO needs to consolidate just a little bit and gather 
some strength before attacking the $70.00 resistance level.  We 
will continue to protect ourselves by raising our stop to $66.88, 
which is just below today's low, because we do not want this 
winner to turn into a loser.  The MACD has finally turned 
positive, so we like the possibility of CSCO staging another rally 
late this week.  The RSI still has plenty of room and has not 
issued a sell signal.  It is also encouraging that the drop today 
was accompanied by low volume.  If CSCO can rally to $71.00 we 
will raise our stop to $68.00. Otherwise we will exit this 
position before the August earnings.

Picked on July 2nd @ $63.56
Change since picked +3.69

===

HGSI - Human Genome Sciences $161.81 +2.44 (+8.56)

Human Genome took a bounce and put this play in the green. On 
Sunday we began this play by noting a charting pattern known as a 
long legged Doji which indicated a possible turn around. On Monday 
the stock did in fact bounce off a moving average and headed 
higher. On Tuesday the company known for research and development 
of novel proprietary pharmaceutical and diagnostic products based 
on the discovery and understanding of the medical utility of 
genes; traded higher again. Volume for the day came in slightly 
higher than average at 2.07 million shares. The company is due to 
report earnings in just over a week on 7/27. Despite selling 
across the markets on Tuesday, HGSI did especially well as did the 
Biotech sector. On Monday the stock opened and bounced off the 20-
dma and has traded higher since. Currently we see support just 
below at the 10-dma at $161.50 followed by the 20-dma at $151. 
Upstairs we see resistance at $170 and then up at $185. Open new 
plays with a bounce off immediate support or a decided move up 
with good volume and support coming from the NASDAQ and the 
Biotech (BTK) Index. Any further concerns about inflation and any 
possible action by the FED in August may cause investors to 
continue the selling. If this is the case expect that Biotech's 
will get hit too. For that reason we will tighten our stop to 
$158.75 to lock in a profit. However if the stock moves up over 
$166, we will adjust that stop to $161.

Picked on July 16th @ $153.25
Change Since Picked +8.56

===

LAMR - Lamar Advertising Company $46.38 -0.23 (3.68)

Try not to stare while driving, but that billboard you're 
looking at could be one of LAMR's 50,000 outdoor advertising 
structures. Internally, Lamar has been able to decrease its 
operating costs with consolidation, and has also been able to 
increase the quality and appearance of its billboards through 
the use of vinyl and new digital printing techniques. Each of 
these internal improvements has translated into more 
recognition for the stock and better profits for 
shareholders. During today's trading session, the stock 
stayed within Monday's range and looks to be finding near-
term resistance at $47. This level will present our initial 
resistance point, with tougher opposition waiting higher at 
$50. Reinforcing the $50 mark, the 200-dma of $51.15, rest 
just higher. Given the strength of opposition at these 
levels, we'll be setting our price target for $49. For 
support, we'll anticipate the 100-dma ($44.68) a potential 
entry point, should the stock reverse sharply from it. 
Secondary support is sure to follow at $43, bolstered by the 
50-dma ($42.97). Should the stock break these 2 major support 
levels, we feel that a stop at $42 will be necessary to 
protect against further weakness. With earnings on 8/2, we'll 
be using support and resistance to target our buys/sells. 

Picked on July 16th @ $46.75
Change since picked -0.38

===

NT - Nortel Networks $78.06 -2.13 (-1.06)

Deals, deals, and more deals. This week, NT signed contracts with 
Telestra (TLS)and Telefonica subsidiary, Emergia. They also 
extended the terms of a previous contract with Williams 
Communications (WCG). Shares of NT hit an all-time high of $80.38 
on light volume during Monday's session. On Tuesday, NT fell on 
tech sector profit-taking and general nervousness going into this 
week's major earnings announcements. Towards the end of the day, 
CS First Boston came out and reiterated their "strong buy" rating 
and the $100 target on NT. However, the news was not enough to 
rally the stock due to the negative market action and the fact 
that NT probably needed a rest. Hopefully, Tuesday's move will end 
up being a test of support rather than a momentum reversal as we 
are just one week away from the earnings announcement. NT is 
scheduled to announce earnings on 7/25 after the bell and we are 
looking for a split announcement with the earnings release. They 
have an unlimited number of shares authorized however the share 
price is below previous split levels. In the meantime, support is 
the 5-dma at $77 with additional support at $76. Set stops at $76 
to lock in profits. We recommend bumping stops up to $78 if the 
stock trades above $81. Resistance is now at $81 and then $85. 
Initiate new plays on a bounce off of $77 or a move above $80. 
Open new positions on midday volume greater than 5 million shares, 
only in a rising market. Plan to exit by 7/25.

Picked on Jul 2nd @ $68.22 
Change since picked +9.83

===

QSFT - Quest Software $60.13 +0.13 (-1.06)

Quest Software announced Monday that CompuCredit (CCRT) has 
selected Quest's Production Support and Development and Deployment 
solutions to provide database development, monitoring, 
troubleshooting and tuning of CompuCredit's  proprietary database 
applications. The news did very little for the stock. Shares of 
QSFT traded to an intra-day low of $59.63 and closed just a bit 
higher, at $60, on extremely light volume. On Tuesday, QSFT tried 
to break out, hitting an intra-day high of $63.63 but could not 
hold on to the gains thanks to NASDAQ weakness. QSFT appears to be 
consolidating before making its earnings run. The Company is 
expected to announce earnings on 7/26 after the bell and we are 
hoping for a split announcement with the earnings release. They 
have enough shares for a 3:2 and the stock is at the low end of 
the split range. For now, QSFT has light support at $60 with 
stronger support at $58. Place stops at $57.88 to limit losses. We 
recommend changing stops to $61 if QSFT trades above $66. 
Resistance is $65 and then $70. Use a bounce off of $60 or a move 
above $65 on midday volume greater than 200,000 shares to start 
new plays. Confirm market direction and sector momentum before 
initiating new positions. Look for an exit by 7/26.

Picked on Jul 13th @ $61.19
Change since picked -3.62

===

TXN - Texas Instruments $70.44 -2.94 (-2.06)

When you think of Texas Instruments say CHEESE! On Monday the 
world's leading supplier of digital signal processor chips 
announced it has revolutionized the digital still camera market by 
introducing it to fully programmable DSP-based solutions. TXN, the 
world leader in DSP and analog, today unveiled the first of these 
innovations, a single-chip processor that transforms the popular 
cameras into multi-media Internet appliances. Another piece of 
good news ahead of earnings which are scheduled for next Monday 
7/24. On Tuesday the combination of four days of gains coupled 
with an economic report that reignited the inflation fears; caused 
the Techs to take it on the chin. Tuesday's selling was recorded 
at average volume of 6.5 million shares. Looking ahead we now see 
the stock poised just above support at the 5-dma at $70 with 
immediate resistance just overhead at the 20-dma at $72 followed 
by the 50-dma at $74. We will look for a relief rally in the days 
to come indicated by good volume and a bounce off support. Watch 
for the SOX Index and the NASDAQ 100 Index (NDX) to lead the way 
higher. We will place a protective stop at $69 but if the stock 
rallies above $76, we will adjust that stop to $72.

Picked on July 13th @ $70.88
Change since picked -0.32



=====
DROPS
=====


SPLIT RUN PLAY DROPS 07/18/00
=============================

CHKP - Check Point Software Ltd. $250.56 -10.25 (+16.31)

A sharp advance from consolidation sent Check Point shares 
running higher by 27.06 points or 11% yesterday! Volume on 
that day came in strong at 3.4 million, suggesting the stock 
might easily exceed resistance along $250. Once this 
occurred, our trailing stop increased to $245. Today's 
lower open and sharp pullback caused shares to penetrate our 
stop and lock in a 4% profit. With earnings out tomorrow, our 
exit by the end of the day was still in effect. With 
volatility being extremely high in technology related stocks 
and for more aggressive traders, we continue to recommend 
using trailing stops to help lock in gains. 

Picked on July 13th @ $234.94

Profit/Loss = +10.06 (+4%) (Stopped out @ $145.00)
Best Profit = +29.25 (+12%)



SPLIT CANDIDATE PLAY DROPS 07/18/00
===================================

ADI - Analog Devices Inc $83.00 -5.31 (-3.38)

Nothing in the stock market goes in a straight line and ADI got 
itself caught up in stiff profit taking in the semiconductor 
sector.  The SOX was down 58.65 points to 1207.75 and gave up some 
of its stellar gains from last week.  INTC's earnings were pretty 
good so we expect that chip stocks in general will probably 
recover quickly.  ADI should bounce soon, but we did not want to 
take a chance. This selling could continue and that would offer us 
a more advantageous entry point for another attempt at profiting 
with a play on ADI.

Picked on July 13th @ $82.75

Profit/Loss +0.13 (+0%) (Stopped out @ $82.88)
Best Profit +5.75 (+7%)

===

CI - Cigna Corporation $98.06 -3.41 (-1.69)

It was not a good sign that the technology selloff did not result 
in a sector rotation back into insurance stocks.  CIGNA's group 
rallied last week when technology stocks dropped, but this time 
around the sector rotation was into pharmaceutical stocks.  
Technically, CI still looks solid longer term so do not be 
surprised if we jump back into this potential split play, 
especially if the stock can close above $100.00 again.  Maybe the 
second time will be the charm.

Picked on July 11th @ $99.81

Profit/Loss -1.93 (-2%) (Stopped out at $97.88)
Best Profit +3.25 (+3%)

===

COHR - Coherent Inc $84.94 -2.00 (-4.25)

Timing is everything and hindsight is 20/20.  Hence we now know 
that we jumped on COHR a bit late in the rally. As always, it is 
better to wipe out your mistakes quickly before they become 
disasters.  We do like the long term potential for COHR and we 
will watch to see how far it can pull back into its range.  Do not 
be surprised if you see this stock back on our play list really 
soon. 

Picked on July 16th @ $89.19

Profit/Loss -5.31 (+6%) (Stopped out at $83.88)
Best Profit +1.69 (+2%)

===

EMC - EMC Corporation $79.00 -1.75 (-0.50)

A somewhat worse than expected CPI release this morning was the 
only excuse traders needed to start taking some profits out of 
what has been a very nice run for technology stocks.  We were a 
little disappointed that EMC took its sweet time before joining 
the move but by stopping out at $78.00 we managed to extract a 
little profit.  EMC reports their quarterly results before the 
market opens tomorrow so we would have been exiting this position 
on the close if we had not been stopped out. 

Picked on June 28th @ $75.25

Profit/Loss +2.75 (+4%) (Stopped out @ $78.00)
Best Profit +7.19 (+10%)

===

FDRY - Foundry Networks $124.13 -6.75 (-6.88)

Foundry Networks announced earnings on Tuesday after the bell. The 
Company posted revenue of $88.8 million compared to $70.0 million 
last quarter and $24.1 million last year, representing  27% growth 
and 269% growth, respectively. Net income was $23.5 million or 
$0.19 per share, beating the analysts' estimates of $0.16 per 
share. The stock was trading at $114 after hours. However, this 
information is irrelevant to us as we are long gone. We were 
stopped out at $129 on Monday afternoon. If you still have open 
positions, you may get lucky with a possible split announcement 
following their BoD meeting tomorrow.  

Picked on Jul 13th @ $121.69

Profit/Loss +7.31 (+6%) (Stopped out @ $129.00)
Best Profit +14.06 (+12%)

===

GSPN - GlobeSpan Incorporated $139.12 -6.62 (-6.88)

Well you win some, you lose some, and some get stopped out. So it 
goes with GSPN, we were hit on our stop set at $139 on Tuesday 
afternoon late in the trading day. Strong CPI numbers did not bode 
well in the minds of investors as inflation fears flooded the 
market. We will continue to watch GSPN as it draws closer to their 
July 31st earnings and may reinitiate coverage at a later date. 
For now we exit with a small loss.

Picked on July 16th @ $146.00

Profit/Loss -7.00 (-5%) (Stopped out @ $139.00)
Best Profit +2.13 (+1%)

===

KANA - Kana Communications $62.81 -5.38 (-7.63)

KANA has dropped back into its up-trending channel.  Although 
there was not any severe technical damage, we opted to protect our 
quick profits and allowed ourselves to be stopped out.  Look for a 
bounce at about $60.00 if you want to keep watching this play.  A 
move below $60.00 would break the up channel and could be 
hazardous for bulls.

Picked on July 2nd @ $61.88

Profit/Loss +4.12 (+7%) (Stopped out at $66.00)
Best Profit +12.75 (+21%)

===

LSI - LSI Logic Corporation $55.75 -4.25 (+3.75)

Out Out Damn Stop. Perhaps if Macbeth had been a play about day 
trading this title would have fit. But alas we are talking about 
getting stopped out of LSI at $58.50 and we are now OUT of this 
stock. We will watch LSI as it approaches earnings on 7/25 and may 
find another reason for a new play. Util then we will exit with a 
meager gain.

Picked on July 13th @ $56.00

Profit/Loss +2.50 (+4%)
Best Profit +5.50 (+10%)

===

SANM - Sanmina Corporation $97.25 +0.25 (+0.31)

We exited this play on Sanmina ahead of earnings at $97.06 
(Monday's close), which were reported after the bell on Monday. 
Despite SANM reporting record earnings for the quarter, we hold 
fast to our policy of not holding a position through the earning 
announcement. We exited with a profit and will watch SANM for 
future opportunities in the near future.

Picked on July 9th @ $91.00

Profit/Loss +6.06 (+7%) (Stopped out @ $97.06)
Best Profit +9.38 (+10%)

===

SBC - SBC Communications Inc. $43.50 0.22 (-1.88)

With two consecutive closes above its 200-dma late last week, 
SBC opened sharply under this level and sold to our stop of 
$43.88. With the lack of any news, it looks as though general 
weakness in the telecom sector was the cause of the drop. We 
mentioned in a previous write-up that the $45 level might be 
a good place to lock in profits if volume was below average. 
As it turns out, this strategy would have worked the best. 
We'll keep you updated on this sector, as growth in DSL lines 
promises to provide additional future plays. 

Picked on July 9th @ $44.69

Profit/Loss -0.81 (-2%) (Stopped out Monday @ $43.88)
Best Profit +1.19 (+3%)

===

VIA - Viacom Incorporated $67.31 -2.88 (-4.38)

Finding plenty of resistance near its previous high, VIA gave 
a swift pullback yesterday and hit our stop of $67.88 on good 
volume (507 thousand shares traded). It's no surprise that 
yesterday's weakness was followed by additional selling 
today. Without any negative news tied directly to the 
company, we think that firm resistance near the $70 mark was 
likely the main reason for the pullback. With strong future 
prospects and a great line-up of businesses, we believe that 
VIA will present us with many additional upcoming plays. 

Picked on July 16th @ $71.69

Profit/Loss -3.81 (-5%) (Stopped out Monday @ $67.88)
Best Profit +0.12 (+0%)

===

XLNX - Xilinx Incorporated $91.63 -5.00 (-3.81)

On Monday we were stopped out of XLNX when the stock violated out 
stop which we had set at $92.88. Just minutes into the trading day 
the southern bias of the stock triggered out stop. We will watch 
XLNX as it nears earnings later this week and may announce a stock 
split. We may initiate coverage of this stock at a later date. 

Picked on July 13th @ $92.63

Profit/Loss +0.25 (+0%) (Stopped out @ $92.88)
Best Profit +5.37 (+6%)



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==========

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