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Play Updates
Wednesday, December 8, 1999
New Plays
Splits | Candidates
Play Updates
Splits | Candidates
Dropped Plays
Splits | Candidates

NEW SPLIT CANDIDATE PLAY

DCLK - Doubleclick, Inc. $196.88 +$12.75 (+27.50)

It's no secret, Doubleclick is due for a split soon. Rumors have been circulating about this stock, some calling for a 3:1 split. DCLK did execute a 2:1 split on April 1st at $193. See the similarity? Even though its earnings report is still weeks away, the company will likely announce a split very soon to capitalize on current momentum and power the stock through the $200 barrier. The company has 400 million shares authorized and only 45 million outstanding (and only 18.5 mln in float), so a 3:1 is possible. Momentum traders are on this one already, so look for more runs on this stock in the following days. We are going to play this one aggressively, initiating entry at current levels. Traders waiting for support can look for a retracement back to $190, however, that level may not come back in time to play this as a candidate. Conservative traders can place stops just under $190 but they run the risk of getting stopped out on any unnecessary market volatility. More aggressive traders can place stops under more solid support of $180. Current rumors also speculate on a BoD meeting tomorrow 12/09/99. We have been unable to confirm.


Picked on Dec. 8th @ $196.88
Change since picked: +  0.00 




BRCM - Broadcom Corporation $225.00 +$0.50 (+17.25)

What a tease! Broadcom began to turn heads Nov 19th, anticipating a split annnouncement that would come after the shareholders met to raise the authorized shares to 400 million on November 22nd. We courted BRCM as well, picking it as a split candidate on Nov 18th, then dropping it after the company disappointed the market with no announcement. Traders turned the cold shoulder, punishing BRCM for being stuck-up. We think BRCM is slowly coming around, and ready to come to the dance. Earnings are due January 13th and the stock is trading in the plus $200 area, nearly $100 higher than this year's January 26th split announcement. We think BRCM is holding off until just after the new year to announce, guess they like to announce with earnings. Traders will soon recognize this. Next week, BRCM will participate in the TV industry's Western Show in Los Angeles, touting its new high-performance broadband chip. Our strategy is to accompany BRCM into earnings, initiating entry points at current levels. Tuesday's trading volume was light, due to a 2% pullback in the semiconductor index, as well as an overbought indication on stochastics. Timing is everything, conservative plays initiated nearer to support at $215 will have less fear of denial. BRCM traded intraday to that level Tuesday, bouncing off to close higher. Stops should be based upon entry, support levels are currently $220 (very very mild) $215 (stronger) and $200 (and even better).


Picked on Dec. 8th @ $224.50
Change since picked: +  0.00 



 


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