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Play Updates
Sunday, May 07, 2000
New Plays
Splits | Candidates
Play Updates
Splits | Candidates
Dropped Plays
Splits | Candidates

NEW SPLIT RUN PLAYS

None

NEW SPLIT CANDIDATE PLAYS

AFFX - Affymetrix $156.06 (+21.00)

Affymetrix is a worldwide leader in DNA chip technology. The Company has developed and intends to establish its GeneChip system as the platform of choice for acquiring, analyzing and managing complex genetic information in order to improve the diagnosis, monitoring and treatment of disease. AFFX sells their products to pharmaceutical and biotechnology companies, academic research centers and clinical reference laboratories. The stock hit an all-time high of $327 on 2/25 in the height of the genomics craze. Since then, shares of AFFX received a serious haircut, trading as low as $84.63 on 4/17. The stock has now formed a base and they are starting to rally again, making higher lows for the last three weeks. There are two major genomics conferences next week and we feel that now is the time to get back into AFFX. The Company has scheduled its Annual Shareholder Meeting for 6/8 at which time the shareholders will vote on an increase in the number of authorized shares of Common Stock from 75 million to 200 million. We are looking for a split announcement out of the meeting. They currently have 28 million shares issued. Going forward, AFFX has support at $150 with stronger support at the 5-dma, now at $145. Resistance is $160 and then $170. Use a bounce off of $150 or a move above $160 on heavy volume to open new positions. Confirm market direction and sector momentum before starting new plays. Plan to exit in the session following a split announcement.


Picked on May 7th @ $156.06
Change since picked +0.00



CPN - Calpine Corporation $98.75 (+7.25)

After our recent profitable play, we're back for more CPN! Besides a strong uptrend for the stock, what brings us back to CPN is how well its aggressive growth strategy continues to produce solid results. With revenues expected to rise by 40% in 2000, you'll recognize that this is no ordinary utility company. Investors have felt the same! Shares are once again trading in pre-split territory and shareholders will vote to increase the number of authorized shares from 100 million to 500 million at the company's Annual Meeting of Shareholders on May 18th. With 63.2 million shares issued, an increase in authorized shares will enable the company to split its stock 2:1. Is this sounding familiar? We think so, and are anticipating a run up to the shareholders announcement. Currently, the stock has continued to trend higher, breaking distinctly through its 50-dma. A strong trend, accompanied by good daily volume (650k or better), suggests that prices may be on route to re-attaining their recent highs ($123). We're looking for a break through resistance at the century mark, when combined with good volume, to trigger our initial entry. If this scenario does unfold and the trend stays intact, then look for further opposition to come at the $110 level. Be sure to incorporate trailing stops to lock in gains. On the flip side, good buying opportunities should come if prices bounce sharply off support at the 50-dma ($93.04) or further down at $90, propped by the 10-dma ($91.73). Look for strength in the Utility sector to confirm entries. We'll plan to hold positions through the shareholders meeting of May 18th, for a split release to follow.


Picked on May 7th @ $98.75
Change since picked 0.00



CRA - Celera Genomics Group $89.50 (+7.25)

"My Sharona" My Genomics? In the 1980's, a band from England called The Knack produced a one-hit-wonder called "My Sharona". Late last year, a shift occurred in the market and Biotech stocks were the Pokemon of the day, but was this just a one-hit-wonder? Last December, as Biotech companies were trading at astronomical levels, Merrill Lynch created a basket of Biotech's called a HOLDR (see write up on TXN), to help investors protect themselves from the volatility associated with just owning one biotech stock. So what is Genomics? Celera Genomics Group is in the business of gene research integrated with computer technology, which accelerates the research process. CRA engages in the generation, sale and support of genomic information and related software; the discovery, licensing and validation of proprietary gene products; genetic markers, genetic variability, and related consulting and R&D services. In April, the company announced earnings with a loss of -.45 cents for the quarter; analysts had expected a loss of .49 cents. The company currently has 52 million shares outstanding and 180 million authorized, plenty to announce a stock split. After the March highs, CRA appears to have found solid support at the $65 level and has been trading up the last week. The stock closed Friday at the 5-dma that is now near term support with the 10-dma at $80 as back up. Overhead, the level to conquer is $90 and then the century mark. We would like to see a new move to the upside come partnered with volume over 2 million shares. Perhaps the upcoming Genomics conference (two of them towards the latter part of this coming week) will stir up some further interest. We encourage any new plays to be accompanied by good volume and positive movements in both the NASDAQ and the Biotech Index (BTX).


Picked on May 7th @ $89.50
Change since picked 0.00



INCY - Incyte Pharmaceuticals $90.94 (+13.94)

Incyte provides genomic information tools including database products, data management software tools, and micro array-based gene expression services. The Company's database products offer insights into genomics, helping scientists determine which genes, both known and novel, are related to specific biological events in normal and diseased states, designed to speed discovery and development of genomic treatments and cures. Think of INCY as a genomic infrastructure play. On 2/25, this stock hit an all-time high of $289.06 but has fallen to a low of $57 on 4/4. Shares of INCY have been basing for 3 weeks in the $65-$95 range. However, there are two major biotech conferences next week and we feel that this may the cure for this sector. Further away, INCY is holding its Annual Meeting of Shareholders on June 5th, when the shareholders will vote on a proposal to increase the number of authorized shares from 75 million to 200 million. The company currently has 28.5 million outstanding. We are looking for a split announcement following the meeting, or in July when the company announces earnings. On the technical side, the stock has support at $87 with stronger support at the 5-dma, now at $83. There is light resistance at $92. Additional resistance may come in at $95 or the century mark. Use a bounce off of $87 or a move above $95 to open new positions. Start new plays on heavy volume, only in a rising market. Look for an exit in the next trading day following a split announcement.


Picked on May 7th @ $90.94
Change since picked +0.00



LXK - LEXMARK INTERNATIONAL GROUP $103.75 (-14.25)

Lexington, Lex Luthor and Lexus. Based in Lexington Kentucky, Lexmark International Group develops and manufactures laser, inkjet and dot matrix printers for home and office use. The company has achieved the global presence that Lex Luthor, played by Gene Hackman in the movie Superman, never got; and if you had invested in this company this time last year, you mat have very well rewarded yourself with a new Lexus. On a split-adjusted basis, LXK has more than doubled and maintained its very bullish trend. After a brief respite, we are initiating coverage of LXK in anticipation of a forth-coming stock split announcement. On April 27th, the company met and voted to increase the number of outstanding shares from 450 million to 900 million. Even so, the company has enough authorized shares to effect a split. Of special note is that during the recent decline, the stock held at the $100 level as support, and has been channeling between $100- $120 since. Volume caught our attention on Friday, increasing by 50% to 1.5 million shares, an anomaly in light of the record low volume on the major indexes. We find this current level as an excellent entry point in advance of a split announcement. Expect some resistance at the 20-dma at $110 and then the 50-dma at $115. Above that, the roof gets pretty sturdy at $120, a triple top resistance level. Confirm the overall movement in the market before entering a new play. Retracement to $100 would offer a great entry. If volume sputters at the 117-120 levels, take your profits and wait for another entry point. We will watch the wire for the split announcement and will advise you accordingly. Adjust your stops below $100 based on intra-day swings.


Picked on May 7th @ $103.75
Change since picked 0.00   



SEPR - Sepracor Incorporated $103.25 (+11.25)

Biotech is the future! This is certainly true of investor sentiment. The latest estimates show that Sepracor (SEPR) is expected to triple its net revenues this year alone. Prompting this growth is the company's strong position in the Improved Chemical Entities (ICE's), market. ICE's are enhanced pharmaceutical formulations to existing drugs that offer increased therapeutic efficacy and reduced side effects for patients. Currently trading near the area of its most recent split, shareholders will vote on a proposal to increase the number of authorized shares from 140 million to 240 million at the company's Annual Meeting of Shareholders on May 24th. If the proposal is accepted, then the company will have enough shares to split its stock 2:1. The stock performance has done extremely well since its last split announcement, gaining 47%. Most recently, the stock broke resistance at the century mark and has been working its way back to re-test previous highs ($126.81). Good volume and a strong trend lead us to believe that prices have a good shot at re-testing the $120 levels. Look for resistance to be felt at the $110 mark and higher up at the $120 level. Resistance at $120 should be stiff, as all-time highs reside at this level. As for support, prices should initially encounter strength at the century mark. Secondary support should follow at $90, bolstered by the 50-dma or $90.65. Look for swift bounces off support to activate our entries. We'll plan to hold shares up to the shareholder's meeting of May 24th, for a split announcements to follow. Use stops to lock in profits or limit losses.


Picked on May 7th @ $103.25
Change since picked 0.00


SPLIT RUN PLAY UPDATES

GILTF - Gilat Satellite Networks $82.00 (-3.88)

The information age has many options for participants and one of the best is satellite transmission. Gilat has many key Fortune 500 customers that depend upon Gilat's reliable services. GILTF has certainly had an amazingly volatile year, but odds are that the stock will be one of the survivors of the technology correction due to its solid business plan and profitability. In the last quarter, GILTF posted an even $1.00 profit and beat the Street by 3 cents. Earnings were $0.23 higher than the same quarter in the previous year. The next earnings report is due before the open on May 15th, and we expect an anticipatory rally. A 3:1 split announced back in February, when the stock was at $161.75, could also contribute to a rally. Although a payable date has not been announced yet, it is expected before the end of the month. The trading in GILTF has narrowed significantly. Support has been tested a couple of times at $80 and bounces can still be bought. The MACD is struggling to turn up but an earnings related rally could get it going. The stock remains oversold on a RSI basis. Resistance can be found at $89, a possible exit point. A quick move and a close above $89 and we may get a stronger rally into the earnings and split. We will exit this position before the earnings or the split, whichever comes first.


Picked on May 4th @ $84.50
Change since picked -2.50



JNPR - JUNIPER NETWORKS INC. $193.38 (-19.31)

It's Official! On Friday, the shareholders of Juniper Networks met and approved the two-for-one stock split set for a payable date of June 15th. Juniper Networks, Inc. is a leading provider of purpose-built systems that meet the scalability, performance, density, and compatibility requirements of rapidly evolving, optically enabled IP networks. The company's purpose-built systems provide new IP infrastructure solutions for the world's leading service providers. Juniper Networks service, manufacturing teams and IP engineers work closely with customers to build and support customer networks. Other Internet related stocks gained on the day as well, with the Internet Index (IIX) up 3% for the day. In Thursday's write up, we mentioned we'd like to see a bounce off $180. Friday's open afforded us that bounce with the stock trading as high as $195.50 by mid-afternoon. Volume came in average at 3.3 million shares. We see some support forming at that $180 level and resistance should next be encountered at the double century mark. Take your profits when they come and consider getting back in on dips. We would suggest stops placed below the $180 level.


Picked on April 27th @ $208.94
Change since picked -15.56



LHSP - Lernout & Hauspie $107.94 (+11.19)

Feeling a little lonely on those long drives to work? How about a conversation with your car. Well, that may be a stretch now, but LHSP is definitely attempting to increase the utility of the automobile with voice recognition technology. In the near future, it may be possible to access e-mail, place phone calls and control the climate and entertainment in your auto through voice directed commands. LHSP has two major partnerships for developing their technologies. One with Ford for the automobile and another with AOL for Internet based voice recognition. On top of that futuristic story, LHSP is also about to split. Announced back in February, the 2:1 split is payable on May 12th, and we expect a nice run, especially now that the stock is comfortably back over $100. Another solid quarter is expected to be announced on May 10th; but that date is not set in stone and we will continue to monitor that situation. On Thursday, we stated that the first hurdle for LHSP would be to close above the 50-DMA at $106.75. Having cleared that, we see no reason other than the potential for overall market weakness, why LHSP cannot keep working itself higher. The MACD is turning up and portends some more share price increases and there is plenty of room to the upside on RSI before the stock becomes overbought. The next resistance is $118, the early April high. Some support can be found near the 5-DMA at $105 followed by $100. We will be exiting this position before the split or the earnings, whichever comes first.


Picked on May 4th @ $104.31
Change since picked +3.63



TXN - TEXAS INSTRUMENTS INC $153.81 (-9.06)

HOLDR RIGHT THERE PARTNER! On Friday, Texas Instruments began trading in a brand new way. The Dallas manufacturer of semiconductor and semiconductor products began trading as a HOLDR. Merrill Lynch unveiled its latest basket of stocks called a HOLDR, which stands for, "holding company depository receipts". The basket is made up of just semiconductor stocks and trades on the AMEX under the symbol (SMH). All of the stocks in the group have an average Relative Strength (RS) of at least 90, (see note on RS under AMD play). Friday the stock opened higher and hit an intra-day high of $160.50 before a retreat that began late morning and never recovered. Volume was light along with the broader markets. TXN seems to be rolling between $150 - $165 as of late; a nice pattern for those of you who like to sell covered calls and buy them back. Support is at the 20-dma at $150 and resistance is about six floors up at $160. The 2:1 split is scheduled for May 22nd, so plan to exit this play ahead of the paydate. We would like to see a bounce off the buck fifty ($150) mark on good volume. Additionally, if we bore through the ceiling at $160, again on accompanying volume, that too would be a good entry point. Be very careful placing trades ahead of the FOMC meeting, the light volume of late indicates the absence of the professional money and should give us all reason for pause.


Picked on May 4th @ $155.50
Change since picked -1.69


SPLIT CANDIDATE PLAY UPDATES

AMAT - Applied Materials $101.88 (+0.06)

Applied Materials is the leading provider of chip manufacturing equipment. The company manufactures, markets and distributes semiconductor wafer fabrication equipment worldwide. They also provide maintenance and repair services for the equipment. Early Friday morning, Applied Materials announced that shipments of a $100 million order from 1st Silicon (Malaysia) would begin in May 2000. The stock rallied on the news, gapping up above $100 resistance and hitting an intra-day of $102.88 on strong volume. This could be the start of its earnings run. The Company is expected to announce earnings on 5/10 after the bell and we are looking for a split announcement to come out with the earnings release. The Company is trading well below its historic split price, but we still may see a split announcement because the stock is trading over or near the $100 split target price. Keep in mind that we are playing the anticipatory run into the earnings report and if the Company doesn't announce a split, it won't have any bearing on our play. The CEO has recently announced a strong outlook for AMAT so an earnings surprise is already factored in so we are looking to exit before the release. In the meantime, support is now the century mark with stronger support at the 10 and 15-dma's at $97. Place stops under $97 to minimize losses. Resistance is now $105 and then $111. Initiate new plays on a bounce off of $100 or a move above $105 on heavy volume. Confirm market sentiment and sector momentum before opening new positions. We recommend an exit in front of earnings on 5/10.


Picked on April 30th @ $101.81
Change since picked +0.06



AMD - ADVANCED MICRO DEVICES $92.00 (+4.75)

It's all relative. An accurate statement if you are referring to Advanced Micro Devices. Plain and simple, AMD is in the business of manufacturing semiconductor chip for PC's. Once called an Intel clone because of its direct competition to Intel (INTC), the company has been establishing itself and gaining ground on its competition. I mentioned relative strength because I find it an important fundamental in evaluating stocks. Relative strength measures the price performance of a stock against all other stocks. AMD currently holds a RS of 98, which means it outperformed 98% of all other stocks in price performance over the last 12 months. A quick look at a chart of AMD would confirm a steady ascent that began in 12/99. Additionally, for you dedicated chartist, AMD has mirrored the movement of the semiconductor index (SOX) and has had relative price movement over the last 10 days. On May 25th, the shareholders will vote on increasing shares from 250M to 750M and possibly announce a split. We would like to see the enthusiasm reflected in the volume with an increase back over 5 million shares. AMD hit another new high Friday at $92.88 before easing back at the close. Resistance is now the new high and support is at $90, the 5-dma. Use trailing stops to luck in profits.


Picked on April 16th @ $66.00
Change since picked +26.00



BRCD - Brocade Communication Systems $136.06 (+12.06)

What is it that makes Brocade's position as a storage area network (SAN's) provider so unique? The answer: BRCD's Fibre Channel switching solutions. These Fibre switches are seen as the next generation in SAN's technology and are re-architecting the storage environment. Specifically, the company's SilkWorm family of switches allows businesses to improve performance between their servers and storage systems, while allowing them to operate data-intensive applications cost effectively. This unique strategy in the high-growth storage market has boded well for BRCD shares. Summing up this week, shares finished strongly on Friday, gaining 15.3% on the day! This strong advance broke sharply through 2 major resistance levels, $120 and $130 before finishing off at $136.06. If good volume (3.0m shares or better) can continue to play a role in the advance, then expect to see our next stop at $140, bolstered by the 50-dma ($139.51). Further advances will likely meet the century and a half mark for more significant resistance. Though support should now come at previous resistance ($120 and $130), we recommend placing a stop at $129.88 to lock in profits. Also, incorporate trailing stops to lock in gains as prices continue to rise.


Picked on April 27th @ $115.00
Change since picked +21.06



CHKP - Check Point Software Technologies $186.94 (+13.94)

The "Love Bug" virus, the first headline-grabbing virus since Melissa, helped CHKP to be one of the strongest technology stocks of the week. These simple, yet deadly viruses, present a real threat to users of the Internet and you can bet that CHKP is working 24/7 to combat these types of afflictions because the Company is a leader in firewall and Internet protection software systems. CHKP was one of the first technology stocks to recover from the decimation we saw last month. The two main reasons for this are because the Company is profitable and their products are absolutely critical for any company looking to make its mark on the worldwide Web. CHKP is a serious split candidate due to its relatively lofty stock price. The stock was split 2:1 in January, following an announcement when the stock was trading at similar levels to today's price at $192.81. A B of D meeting would be a likely time to announce a split and we will continue to monitor the wires for any pending meetings. The Company would also need to increase the number of authorized shares before delivering any splits. Technically, CHKP looks very strong but do not expect the virus related rally to last too much longer. There is some pretty good resistance at the 50-DMA at $196. Momentum should be able to get the stock above this resistance to the $200 level before possibly falling back. It would take a sustained NASDAQ rally or perhaps a split announcement to propel the stock much higher than that. The MACD is moving higher and indicates some more upside and RSI has some upside as well. If the stock does manage to close above $200, a move to $224 is possible, but do not be afraid to take profits if the stock starts pulling back. The 5-DMA offers some support at approximately $182, Friday's low. More support is found at the 10-DMA at $175. We will exit this position if there is a split announcement.


Picked on April 27th @ $179.00
Change since picked +7.94



CMGI - CMGI Inc. $65.25 (-6.00)

If the Internet stock correction is over, then buying CMGI will probably be one of the best ways to benefit from a comeback rally. It was last May that saw the end of the last major Internet stock correction. The strongest survived. By investing in CMGI you are making a play on a diversified portfolio of Web- based companies. One core holding of CMGI's is AltaVista, the Internet portal, commerce and search engine company. AltaVista has had a slew of good news recently including a huge number of new subscribers for their free ISP service to launching the fastest and perhaps best new search engine last week. CMGI's stock price will probably continue its recovery because of its leadership in the industry. That said, there is no guarantee that the correction is over, so new positions should be placed cautiously. On the plus side, CMGI has managed a series of higher lows going back to April's capitulation selloff. The MACD has begun an ascent that indicates some more upside potential and the RSI tells us that there is a lot of room to the upside before the stock becomes overbought but the stock is no longer severely oversold. We can stay in CMGI as long as the stock can consistently move above each previous day's highs. When this pattern discontinues, CMGI could easily fall back into a consolidation mode. Resistance can be found at $75, which was the peak of the last mini-rally. There is some support at the 5- DMA at $65 and change and the 10-DMA at $62.50. Although a split seems very unlikely we will sell this position in the event of any major announcements.


Picked on April 27th @ $66.19
Change since picked -0.94



EMLX - Emulex Corp. $62.50 (+17.13)

Companies need easy access to the reams of data that they accumulate, and EMLX is one company that has the products that enable the voracious data needs of today's business world to be met. EMLX provides the adapters, hubs, fibre channel networks and software needed to make the process operate smoothly. EMLX is one technology stock that has earnings combined with monster growth potential. It is a recipe that could enable the stock to start gobbling back chunks of its recent market losses. Although there are plenty of authorized shares available to enable a split, EMLX is not a real strong split candidate at these prices. The last quarter was solid, but the next earnings are not until July. Therefore, this is not an earnings play either. So why do we like this play? EMLX presents a unique technical opportunity because it appears that the stock is poised to close a gap. If the theory that all gaps must be closed holds up, then EMLX is looking at a short-term rally that should take the stock to $78. That is, if it can close above $64.38, then it should offer a nice gain. EMLX made a foray into the gap territory on Friday only to suffer some profit taking at the end. This is the second time this has happened so we would be cautious and perhaps wait for that aforementioned close above $64.38 before going long or perhaps even waiting for the stock to rally above Friday's high of $66.38 before going long. The MACD is trending up and there is a ton of room on the upside for the RSI. OBV has also staged a decent recovery. Support can be found a couple of points lower but we would not chase the stock too far lower than that. At this time, there are not any major events that would force us to exit this position.


Picked on May 4th @ $62.63
Change since picked -0.13



LSCC - Lattice Semiconductor $63.88 (-3.50)

Lattice Semiconductor is the world's largest supplier of high performance programmable logic devices (PLDs) and related development system software. The Company designs, develops and markets a broad range of high performance PLDs sold worldwide primarily to OEM customers in the communications, computing industrial and military markets. The Company is the inventor of in-system programmable (ISP) PLDs which are standard semiconductor components that can be configured by the end customer as specific logic functions, reducing the design cycle and product development costs. On Friday, shares of LSCC tested $60 support and $65 resistance, closing at the higher end of the range on average volume. Still no split from Lattice but we may get one on Monday. If not, we could see a split out of their next BoD meeting or in July when the Company announces quarterly earnings. Until then, support remains steady at $60 with stronger support at $59. Set stops under $59 to limit losses. Resistance has moved up to $65 and then $70. Open new positions on a bounce off of $60 or a move above $65. Look for heavy volume in a rising market before starting new plays. Look for an exit in the session following a split announcement or before the earnings release in July.


Picked on April 23rd @ $62.94
Change since picked +0.94



MXIM - Maxim Integrated Products Inc. $68.00 (+3.19)

By keeping up with the strong demand for circuit integrated products, Maxim has rapidly emerged a leader among it peers. Now seeking to supply global demand for its products, analysts are expecting revenues to rise sharply through fiscal year 2000. Specifically, revenues should increase due to strong bookings and backlogs for all product lines and across all geographic areas. Now, as for the stock, shares were able to maintain a tight consolidation all week. For advances to all-time highs, prices will first have to close above the top of their consolidation range ($86.44), prior to signaling an advance. Also, note that resistance at $70 might challenge prices before recent highs are met. As for support, we are looking at the base of the consolidation ($65), to be hardened by both the 10 and 50-dma's ($64.44 and $64.89). For additional declines, look for $60 to be strong. Use firm bounces off support to trigger entries, when good daily volume is present (3.0m or better). Our target date will remain the S&P addition on May 9th. Use trailing stops to lock in gains.


Picked on May 4th @ $67.25
Change since picked +0.75



PMCS - PMC SIERRA INC. $180.00 (-11.88)

Will PMC have PMS? Before you take offense of this comment let me explain. By PMS I mean Past May's Slide. Last May after a great split run, PMC Sierra slid before basing in mid May and running more than 200 points by February of this year. Technically, the slide appears to have already occurred for the Internetworking semiconductor system solution company. PMCS is in the business of making high-speed transmission and networking solutions for the telecommunication and data communications industry. Their products are helping to restructure the way we transmit information around the globe. PMCS is well positioned as the emergence of the semiconductors in the present sector rotation is leading the pact. The April lows in PMCS were better than a 60% retracement from the March highs. PMCS is not lacking in price appreciation as it outperformed 98% of all other stocks in the last 12 months. On June 15th, shareholders are meeting to vote on an increase in company shares and a possible split. Confidence in the semiconductor field was noted Friday by Merrill Lynch with their introduction of a basket of semiconductor stocks trading as one unit called a HOLDR, (See article on TXN). We continue to see good things for PMCS, which closed Friday just above the 10-dma at $176. Friday's closing price was at light resistance, which should now serve as near term support. The next challenge will be the 50-dma at $190. Volume needs to pick back up over 5 million shares to be convincing. Gauge any new play by confirmation in the SOX index and the NASDAQ. Use trailing stops defensively based upon your degree of risk.


Picked on April 27th @ $182.62
Change since picked -2.62



XLNX - Xilinx $68.88 (-4.38)

Versatility is the key word to describe the semiconductor products designed and produced by XLNX. The Company makes some of the fastest chips that can be programmed and hence customized by the end user. XLNX sells to a diversified customer base that ranges from Telecommunications to Networking. XLNX has also demonstrated that their software can help to design some of the fastest chips for the future. XLNX at first appears to have a stock price that might be too low to be a split candidate but history tells us otherwise, as the Company's last two splits occurred at similar price levels of $68.63 and $75.00. The last two splits were announced in conjunction with a quarterly earnings release. XLNX's next earnings are expected to be announced in mid-July. XLNX currently does not have enough authorized shares to effect a 2:1. XLNX had a very nice run after breaking out above $50 and subsequently rallying to a high of $88.44. The early spring correction has put XLNX into a consolidation phase that we feel we can trade for some nice profits. $63.50 appears to be the support for XLNX as the stock tested that level twice last week. Next week appears to be technically critical for XLNX. The stock closed the week just a couple of points below both the 5 and 10-DMA's. The MACD is neutral and it cannot decide whether to give a buy or sell signal. Perhaps the best move is to wait for some early strength next week before going long. A move above short-term resistance of $68.75 could indicate a retest of the 50-DMA at $75, which has proven to be very solid resistance and the upper edge of the trading range. Any sustained advance will require XLNX to close above $75. We will exit this play if there is a split announcement and we suggest placing a stop at $63, which is just below last week's low prints.


Picked on April 25th @ $70.38
Change since picked -1.50



YHOO - Yahoo! $125.69 (-4.56)

Yahoo! Inc is a leading international Internet media company that operates a branded network of commerce, media and communication services to a worldwide audience of 100 million users. YHOO offers broadcast media, personal communications and direct services including online content guides, Web search capabilities, aggregated third party content, and e-mail. On Friday, ABN Amro started coverage of YHOO with an outperform rating and set a $175 target. Shares of YHOO traded up slightly on light volume but failed to stay above the 20-dma-resistance level. The stock has been in a trading range for two weeks now. We expect momentum to pick up as we move closer to the Company's Annual Shareholders Meeting on 5/12. At the meeting, shareholders will vote on an increase in the number of authorized shares and we are looking for a split announcement following the Annual Meeting. For now, the stock has support at $120 with stronger support just underneath Wednesday's low at $116. Place stops under $116 as protection. Resistance continues to hold at the 20- dma, currently at $127 and then $130. Start new plays on a bounce off of $120 or a break above $127. Initiate new positions on heavy volume, only in a rising market. Plan to exit in the session following a split announcement.


Picked on April 18th @ $126.69
Change since picked -1.00


SPLIT RUN PLAY DROPS

ANEN - ANAREN MICROWAVE INC. $117.75 (+13.75)

No,No,Know. No news, no volume and a twelve point gain in a day means we should know enough to take a profit. In fact, we did and are dropping ANEN for now with a nice one-day gain. Friday the stock traded a sleepy 44K shares. With the FOMC meeting next week and the uncertainty in this current market we feel fortunate to slip away with more than a 10% gain. ANEN is scheduled for a 3:2 stock split in mid June. We will watch and see how things progress in the coming days and weeks and may reinitiate coverage of this stock again. Consider taking profits ahead of Tuesday's meeting. You can't go broke taking a profit!


Picked on May 2nd @ $103.25

Profit/Loss = +14.50 (+14%)
Best profit = +16.75 (+16%)



EBAY - eBay Incorporated $134.00 (-25.19)

Although a Lehman Brothers buy rating on EBAY could have turned our play around, shares continued to slip further past their 200- dma ($147.06). This descent was accompanied by good volume (3.05m), which can indicate a future tendency for downside momentum to continue. This drop also leads us to believe that prices may end up breaking through their lower consolidation range. Based on these circumstances, we feel that its better to wait on the sidelines, until strength in the Internet sector resumes.


Picked on May 2nd @ $143.38

Profit/Loss = -9.38 (-7%) 
Best Profit = +2.87 (+2%)


SPLIT CANDIDATE PLAY DROPS

INKT - Inktomi Corporation $143.31 (-10.63)

Despite a strong performance for the NASDAQ on Friday, shares of INKT were unable to join in the winnings. Attempting another shot at the century and a half mark proved to be futile and was followed by lower prices. Though INKT did provide us with a profitable play, we feel that current short-term weakness in the stock despite strength in the NASDAQ may be an initial sign of underlying weakness. Because of this, we're choosing to drop the stock now. We'll keep you updated on future plays as they develop.


Picked on April 25th @ $141.94

Profit/Loss = +1.37 (+1%) 
Best Profit = +26.44 (+19%)



TIBX - TIBCO Software $82.13 (+6.94)

A quick and unsuspected drop in TIBX shares caused us to take a step back from our initial assessments. Friday's sharp decline in spite of strength in the NASDAQ composite may hint at near-term weakness for TIBX. Though our buy signal had not yet been generated, we feel that in the short-term other plays will likely present better outcomes. Based on our evaluation, we are opting to drop the stock for now. We'll keep you posted on upcoming events as they become publicized.


Picked on May 4th @ $89.61

Profit/Loss = -7.48 (-8%) 
Best Profit = +1.89 (+2%)


 


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