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PLAY > New Plays Sunday, February 25, 2001
New Split Plays   New Candidate Plays   New Momentum Plays
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Plays

GVA - Granite Construction Inc $33.07 (+1.42)

Granite Construction Incorporated is one of the largest heavy civil construction contractors in the United States and operates nationwide. The company operates in both the public and private sectors providing such services as construction of roads, highways, bridges, dams, as well as performing site preparation services for buildings, plants, subdivisions and other facilities. GVA announced a 3:2 split with their earnings report this past Wednesday the 21st. This will be GSA's third stock split since the company started trading publicly in 1997. The stock split will occur on April 13th. Good news seems to breed good news at GVA because the day after the split announcement, GVA was awarded a $21.9 million contract by the California Department of Transportation for the asphalt concrete resurfacing of Interstate-880 in Oakland, California. Switching our focus from the news to the chart, we note that on February 9th GVA hit a new 52-week high of $34.40. That new high was achieved on volume of 132,000 shares. GVA normally trades about 62,000 shares based on a 3-month average, so the new high was achieved on the kind of volume we like to see. We mention this because on Friday while the market was bleeding red with selling, GVA actually posted a gain of +1.74 for the day on 130,000 shares of positive volume. Looking to next week, if you are considering opening a new play on GVA, look for a move through resistance at $33.50 and then up at the present high of $34.40 on continued good volume. A bounce off a support level could also be considered for an entry point. Use the 10-dma at $32.17, the 20-dma at $31.50 or the 50-dma at $30.85 as support levels. We'd like to see volume of 45,000 or better traded by midday accompany the stock higher when considering a new play. For our protection we will post our stop loss at $30.50 just below the last level of support.


Picked on February 25th at $33.07
Change since picked 0.00
Stop Loss at $30.50

 
Interactive Chart Quote News Zacks on GVA
 

New Candidate Plays

PFGC - Performance Food Group Company $50.13 (+3.63)

Performance Food Group Company provides over 25,000 food products to both traditional customers and multi-unit chain customers in the foodservice industry. Shares of PFGC have been relatively hot over the past year. The stock has risen from a 52-week low of $19 on March 14th to an all-time high of $56.75 on December 27th. Since then, PFGC started a downward move with a small bump in front of its February 6th earnings release. However, the stock began to rebound following the company's presentation at the Salomon Smith Barney Emerging Growth Stocks Conference on February 15th. We believe that PFGC is beginning the last leg of a double-bottom pattern that could send the stock into the high $60's. The company currently has enough shares for a split, with 50 million shares authorized and 17.3 million shares outstanding. The stock price is above its previous split range so we could get a split out of their next BoD meeting or with the May earnings release. Going forward, PFGC has support at Wednesday's intra-day high of $49.48 with additional support at $48.27, the 5-dma. Resistance is the February 2nd intra-day high of $50.50 and then the January 31st intra-day high of $53.44. Traders should be looking for entry points on a bounce off of $49.48 or a move above $50.50 (the double-bottom pivot point) on volume of at least 100,000 shares by noon. We plan to use stops at $47 to limit potential losses.


Picked on February 25th @ $52.20
Change since picked +0.00
Stop Loss @ $49.50

 
Interactive Chart Quote News Zacks on PFGC
 

New Momentum Plays

ELY - Callaway Golf Corporation $23.99 (+1.94)

Callaway Golf (ELY) is a leading designer and manufacturer of high quality, premium priced, golf clubs. The company's golf clubs have been favorably received by both professional and weekend golfers on the basis of performance and ease of use. In addition to a strong product line, greater efficiencies in golf-club manufacturing have kept ELY's profit margins on the upswing. These efficiencies are expected to translate into a 40% increase in earnings this year. In turn, this has created plenty of upside momentum for the stock. Clearly the stock is a momentum play now that higher levels are being confirmed by an expansion in volume. Friday, ELY soared to a new 52-week high of $24 on excellent volume of 701,300 shares. A move above this level in the upcoming week could be a good signal for momentum traders to resume their buying. That said, we'll look for potential entry points to arise when ELY pushes though $24 on good daily volume above the 3-month average of 480,000 shares. Also, be aware that the $25 mark often presents a formidable challenge. Support will reside at $22.50, propped by recent highs and the 10-dma of 22.41. ELY's strong uptrend is bolstered by good readings in the MACD and OBV indicators, which suggests that a continued sustainable move is likely. We'll set our stops at $20 for downside protection.


Picked on February 25th @ $23.99
Change since picked 0.00
Stop Loss @ $20.00

 
Interactive Chart Quote News Zacks on ELY
 

New Plays Index

 


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