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Email Version, Section 2, Sunday 04/22/2001
The SplitTrader.com                      Sunday 04/22/2001 2 of 2
Copyright 2001, All rights reserved.
Redistribution in any form is strictly prohibited.

 - Your World Leader for Trading Stock Splits on the Internet -

Posted online for members at: http://www.SplitTrader.com

To view this email newsletter in HTML format with imbedded
charts and graphs, click here:

http://www.splittrader.com/htmlemail/042201_2.asp
=================================================================

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

Watch List
Plays - New - Updates - Drops
Monday's Candidate Play-of-the-Day -GTK
Weekly Play Results (04/09 - 04/13)

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


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==========
Watch List
==========

The following stocks are on our radar screen.  We are watching
them for further developments before we add them to our Current
Play list.


Splits to Watch

WM - Washington Mutual  $50.39 -3.01

WHY WE LIKE IT:  With Wednesday's surprise rate cut, banks should
be kicking it into high gear.  Banks have been holding their own
in this down market on anticipation of lower rates, so now that
we have witnessed the fourth rate cut this year, buyers should
not hesitate to enter this group.  WM has been forming an
ascending triangle formation and looks ready to test the upper
triangle.  In addition, its 50-dma has been offering strong
support for the last month.
POTENTIAL TRIGGER EVENT:  If WM can close above $55.87 on volume
of at least 3.3 million shares, we will gladly move the financial
services company over to our Current Play list.
SUNDAY'S UPDATE:  WM fell off a cliff on Friday, which is a
little surprising given the 50-bps cut in rates on Wednesday.  It
is not too encouraging to the overall market that the financials
are now suffering.  As for our play, we are now just $0.39 away
from saying bye-bye to WM, so we are not holding out much hope at
this point.  However, should WM muscle its way back through its
50-dma, it could pull off a recovery and make it on our Current
Play list.

 


Candidates to Watch

AYE - Allegheny Energy  $47.15 -0.24

WHY WE LIKE IT:  Allegheny Energy has just come off a "V" bottom
and is consolidating at the $46 level on lower volume.  This is
generally healthy price action and gives the stock time to shake
out weak shareholders before going higher.  In addition, with gas
and oil priced continuing higher, earnings for the energy group
should be coming in on the high side this quarter.  Rounding off
our reasons for being bullish on AYE is the fact that the company
just announced that it would expand into the New York
metropolitan area in order to serve a greater portion of the
Northeast.
POTENTIAL TRIGGER EVENT:  We need AYE to close above its previous
high of $49 on volume of at least 400,000 shares before we will
shift it to our Current Play list.
SUNDAY'S UPDATE:  AYE sold off yet again on Friday.  As money
continues to play musical chairs between defensive sectors and
tech, we will expect these slight down days in AYE.  The good
news was that the sell off came on just average volume of 300,000
shares.  In addition, the 10-dma continued to provide support.
However, should AYE keep slipping, we will keep monitoring it
only as long as it continues to stay above its 100-dma at $44.89.

 

===

LLL - L-3 Communications Hldgs.  $83.90 -2.96

WHY WE LIKE IT:  LLL has come off its highs, but has found good
support and appears like it is gearing up for another run higher.
LLL has been holding above its 50-dma for the past week, which is
a good sign that buyers are again stepping into the stock.  In
addition, although the stock has come back, its RSI is still over
50, indicating that it has been outperforming the overall market.
The supplier of secure communications systems has also just
formed a joint venture with Thales to produce surveillance
systems for the avionics industry.
POTENTIAL TRIGGER EVENT:  We would like to see LLL close above
resistance at $90 on volume of at least 500,000 shares before we
will shift the stock over to our Current Play list.
SUNDAY'S UPDATE: LLL was turned back from the $87 level yet again
on Friday.  This area of resistance has obviously become a
convenient place for sellers to dump shares.  If LLL can't muster
enough buying interest to get us over this crux by mid next week,
we will move on to other prospects.  That being said, ,LLL is
still finding support at its 50-dma and has been selling off on
lower volume, which indicates less conviction on the part of the
sellers.

 

===

TTC - Toro Company  $44.10 -0.90

WHY WE LIKE IT:  What better time to look into a landscape
equipment manufacturer than springtime.  In addition, Toro's last
quarter showed accelerating growth and solid fundamentals.  We
also like the looks of Toro's daily chart.  It has been forming a
bullish symmetrical triangle and looks ready to break its upper
resistance line soon.  We will also be watching for the MACD to
roll positive and for OBV to continue on its up trend.
POTENTIAL TRIGGER EVENT:  We would like to see TTC first break
its upper triangle line at $45, then close above resistance at
$46 before we move it to our Current Play list.
SUNDAY'S UPDATE: TTC slipped lower with the rest of the market on
Friday, but did so on low volume of only 36,000 shares.  Even as
it moved lower, it put in a higher low, keeping its current up
trend in tact.  Its MACD is set to roll positive, given one more
good push higher.  Should Toro get mowed over, we will continue
watching it only as long as it can continue closing above its 50-
dma, now located at $43.06.

 


Momentum Stocks to Watch

BLL- Ball Corporation $47.42 -0.43

WHY WE LIKE IT: While the market has been selling off on a
regular basis, Ball has been slowly but surely trending higher.
This tells us that buyers are stepping in despite the market
"noise". In addition, Ball resides in the aerospace arena and has
been awarded additional long-term contracts that should serve to
stabilize earnings going forward. The stock's RSI is also well
above 50, which again tells us that when the market turns, BLL
should rocket.
POTENTIAL TRIGGER EVENT: We need to see Ball bounce and hold
above $48 on trading volume of at least 180,000 shares before we
will add the aerospace stock to our Current Play list.
SUNDAY'S UPDATE: BLL took a pause on Friday, as shares slipped
$0.43 on light volume of 99,000 shares.  The stock met resistance
near Thursday's high of $47.99 and fell back to its 5-dma at
$47.10.  We still like BLL's chances of making our Current Play
list by next week, as we are now just $0.58 away from our
trigger.

 

===

MU - Micron Technology  $46.54 -1.41

WHY WE LIKE IT:  With the recent surge in tech stocks, we tried
to find a stock that has been basing and that has not broken out
to new highs yet.  MU fit the bill perfectly.  The stock has been
forming a base on base formation since last October, plenty of
time to shake out weak shareholders.  The stock now rests
comfortably above its 50-dma, so momentum may have finally
switched to the upside.
POTENTIAL TRIGGER EVENT:  If MU can close above $50 on volume of
at least 10 million shares, it will be rotated to our Current
Play list.
SUNDAY'S UPDATE:  Like the rest of the tech sector, our new Watch
List stock fell victim to profit taking on Friday.  This profit
taking was inevitable, as the market had become overbought.  That
being said, we are encouraged by the fact that MU sold off on
lighter volume of only 9.5 million shares.  Additionally, MU's
MACD is still positive and OBV is still just off yearly highs.
Should MU decide to take a nosedive, however, we will monitor the
computer and semiconductor maker only as long as it can continue
to close above its 50-dma, now located at $41.04.

 


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**************************************************************


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

The PLAY LEGEND:

SplitTrader.com 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

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

At the SplitTrader.com 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.
==================================================================

=========
NEW PLAYS
=========


NEW SPLIT RUN PLAYS 04/22/01
============================

None



NEW SPLIT CANDIDATE PLAYS 04/22/01
==================================

None



NEW MOMENTUM PLAYS 04/22/01
============================

GTK - GTECH Holdings Corp $29.79 (+0.57 Last Week)

Those who are unwilling and/or unable to seek their fortunes by
investing in the stock markets of the world may choose another
vehicle, the lottery.  Although there has been a proliferation of
legalized gambling across the US, state lotteries are still the
favorite choice for legislators who want to grow state coffers.
GTECH has been enjoying this trend for years by providing the
necessary equipment for governments around the world to set up
their own "numbers" games.  GTK has been in a steady uptrend
despite posting earnings on April 6th that showed a decrease in
profits of 6 pennies to $0.79 from the same quarter a year ago.
That said, analysts believe that GTK will increase their profits
for the whole year by 33%.  Ever since November, GTK has been
moving steadily higher and has been finding excellent support
along its 40-DMA, which closed on Friday at $27.56.  Three of our
favorite technical indicators, the MACD, Money Flow and OBV are
all steadily rising and point towards a continuation of the
positive momentum.  GTK may prove to be an excellent buy if it
can establish a new high above $29.95 on Monday with first hour
trading volume exceeding 50,000 shares.  If GTK gaps up to $32.00
or higher on the open, traders may want to wait for a little
pullback before initiating positions.

Picked on April 22nd @ $29.79
Change since picked +0.00
Stop Loss $26.75

 

===

HSIC - Henry Schein, Inc. $38.00 (+2.79)

Henry Schein, Inc. provides a wide range of healthcare products
and services to dental laboratories, physician practices,
veterinary clinics, and healthcare institutions in North America,
Australia, and Europe. HSIC is coming out of a large cup and
handle formation that started back in July of 1999. More
recently, the stock took out major resistance at $36 on March
29th after consolidating in the $28-$34 range for three months
(the handle). The stock quickly pulled back to the 100-dma only
to bounce back to a new 52-week high of $38.40 on Friday. We
believe that the stock may be ready to possibly breakout to new
highs as we approach the earnings release in early May. Going
forward, HSIC has support at the 5-dma, currently at $37, with
additional support at $36.36, the 10-dma. There is resistance at
Friday's intra-day high of $38.40 and then the 1/22/99 intra-day
low of $40. Traders may consider entry points on a bounce off of
$37 or a move above $38.40 on volume of at least 250,000 shares
by noon. We plan to set stops at $35 to limit potential losses.

Picked on April 22nd @ $38.00
Change since picked +0.00
Stop Loss @ $35.00

 



=======
UPDATES
=======


SPLIT RUN PLAY UPDATES 04/22/01
===============================

SOTR - SouthTrust Corporation $45.81 (+0.70)

SouthTrust Corporation opened in negative territory on Friday and
stayed there for most of the day. Shares of SOTR ended the
session at $45.81, just one penny above its intra-day low.
Volume was on the light side, with 801,000 shares crossing the
tape. The stock was due for a round of profit taking after
hitting an all-time high on Thursday. However, as mentioned, the
move came on light volume so SOTR should be able to recover as we
get closer to the 2:1 stock split on May 11th. Until then,
support has come in at the 10-dma at $45.35 with stronger support
at the 20-dma, currently at $44.93. Resistance is holding steady
at Thursday's intra-day high of $47.20 and then possibly $48 or
$50. Traders may consider starting new plays on a bounce off of
$45.35 or a breakout above $47.20 on volume greater than 500,000
shares by noon. Our stops remain at $44.

Picked on April 19th @ $46.96
Change since picked -1.15
Stop Loss @ $44.00

 



SPLIT CANDIDATE PLAY UPDATES 04/22/01
=====================================

HRB - H&R Block $53.71 (+2.36)

HRB, as expected, sold off on Friday.  Whether this was due to
the general market sell off, or due to the relief of a heavily
overbought condition in HRB we will never know.  What we do know,
however, is that the minor sell off did not put even put a
scratch in the recent up trend.  We say this since the stock
failed to even come back far enough to test support at $52.85 and
also because the sell off came on volume of 500,000, which barely
equals the three month volume average.  In addition, the stock
made a higher high at $54.25 and also put in a higher low at
$53.70 to keep the up trend solidly in tact.  Looking at the
chart, we can see that resistance has asserted itself again at
the $54.25 level.  In addition, support still remains at the 5-
dma at $52.85, bolstered by HRB's short-term up trend line.
Should this support level fail, however, HRB will likely retrace
back to support at $52.30, the peak formed in early March.  New
entries could be considered on a bounce off of the 5-dma or a on
break through resistance at $54.25 on midday volume of at least
250,000 shares.  We are keeping our stops at $49.25 to limit
downside risk.

Picked on April 18th @ 53.25
Change since picked +0.46
Stop Loss @ $49.25

 

===

MKC - McCormick & Company $41.20 (-0.50)

McCormick & Company continues to lose momentum as investors move
money out of safety and into tech. On Friday, shares of MKC fell
to an intra-day low of $40.51 before bouncing back to a close of
$41.20 on light volume of 103,000 shares. The stock has formed a
short-term downward trend on declining volume over the past two
weeks. However, MKC is currently at the lower end of its trading
range so the stock may remain in the $40-$42 range until the
volume picks up. In the meantime, support remains at Wednesday's
intra-day low of $40.70 with stronger support at $40.41, the 50-
dma. Resistance is holding steady at the 10-dma, now down to
$41.74, and then the April 10th intra-day high of $42.50. A
bounce off of $40.70 or a move above $41.74 on midday volume of
at least 75,000 shares may be possible entry points. If tech
falters again, you can be sure that money will again find its way
back to safety plays such as MKC.  We are keeping our stops at
$38.75 to limit potential losses.

Picked on March 29th @ $41.43
Change since picked -0.23
Stop Loss @ $38.75

 

===

OMC - Omnicom Group $90.69 (+4.19)

Some of last week's biggest winners were subjected to some light
profit taking during Friday's option expiration action.  OMC
joined this group of stocks.  Nevertheless, there is a strong
possibility that OMC will continue its upward direction during
this week's trading.  OMC, a major player in the world of
advertising, will likely be a strong beneficiary of last week's
rate cut.  An improving economy makes corporate America more
willing to allocate increasing resources to their advertising
budgets. To help fuel their long-term growth, Omnicom announced
on Friday that it has joined a group of the largest advertising
firms that will form an electronic market place that will enable
their clients to better conduct their media business dealings.
The new exchange should become operational during the current
quarter.  Moving to the technical picture, Omnicom found some
resistance at $92.69 last week.  Additional resistance will
likely be found at the 52-week high of $97.50.  Friday's pullback
took the stock near our trailing stop of $89.00.  Traders may
want to add to positions if this support holds on Monday.  A move
above $92.69, with midday volume exceeding 600,000, might be a
good trigger event for momentum traders to try and pick up a
couple of points.  The MACD and Money Flow are both outstanding.
The RSI did start to turn down on Friday after approaching a
level that suggested an overbought condition.

Picked on April 15th @ $86.50
Change since picked +4.19
Stop Loss @ $89.00

 

===

TARO - Taro Pharmaceutical $54.90 (+4.25)

On Friday, Taro received some welcome news from the U.S. Food and
Drug Administration.  The FDA tentatively approved Taro's
Abbreviated New Drug Approval for Enalapril Maleate and
Hydrochlorothiazide Tablets USP.  Enalpril is Taro's number one
drug candidate for the treatment of hypertension.  Shares of TARO
traded up on the news and ended the week at yet another all time
high.  The stock is distancing itself from its 50-dma and is in
overbought territory according to its stochastic and RSI.
However, it should be noted that these indicators have remained
at high levels in the past without the stock succumbing to
selling pressures.  Therefore, we remain encouraged by the
stock's price action but are anticipating a mild sell off soon.
When and if this sell off occurs, we will expect the 10-dma, now
at $49.95 to continue providing support.  Resistance may come in
at $56.00, Friday's high, and then again at $57.00.  The MACD
remains positive and OBV keeps chugging higher as the stock
continues on its northerly track.  New entries could be
considered on a successful test of Thursday's low of $50.75 or a
break through Friday's high of $56.00 on volume of at least
100,000 shares by midday.  We have moved our stop up to $53.00 to
lock in gains should TARO decide to change course.

Picked on April 10th@ $49.45
Change since picked +5.45
Stop Loss @ $53.00

 



MOMENTUM PLAY UPDATES 04/22/01
===============================

UNP - Union Pacific Corporation $58.85 (+1.87)

Union Pacific Corporation sold off on Friday after trading to a
52-week high on Thursday. Shares of UNP hit an intra-day low of
$58.80 on volume of 971,000 shares. The stock was ripe for profit
taking following four days of gains. However, we are concerned
about the declining volume because it does not support
Wednesday's breakout. UNP has already pre-announced an earnings
surprise so the stock may be at the end of its run. The company
is expected to announce earnings on April 26th before the bell
and we plan exit this play no later than April 25th. For now,
support is the 5-dma at $58.36 with additional support at $57.37,
the 10-dma. Resistance is now at Thursday's intra-day high of
$59.60 and then the 7/19/99 intra-day high of $60.68. Look for a
bounce off of $58.36 or a breakout above $59.60 on midday volume
greater than 600,000 shares as possible entry points. We are
leaving our stops at $54.50 as downside protection.

Picked on April 3rd @ $57.35
Change since picked +1.50
Stop Loss @ $54.50

 



=====
DROPS
=====


SPLIT RUN PLAY DROPS 04/22/01
=============================

PFGC - Performance Food Group $51.55 (-2.36)

PFGC knocked on the door of a significant breakout all last week.
Impatient traders finally tired of waiting for the next move and
sold PFGC all day Friday.  Granted, we did achieve a decent
profit with this play, but we sure would have liked to have seen
a strong rally ahead of the split on April 30th.  PFGC will
likely find support right around its 50-DMA of $49.31.

Picked on March 25th @ $49.50
Profit/Loss +3.00  (6%) (Stopped Friday @ $52.50)
Best Profit +6.03 (12%)

 



SPLIT CANDIDATE PLAY DROPS 04/22/01
===================================

SPW - SPX Corporation $98.29 (+1.98)

SPW hit our trailing stop of $98 on Friday, so we exit here with
a small profit.  SPW had been coming off a "V" bottom and ran
into resistance at its long term down trend line.  We may revisit
this play again soon, as it is continues to be a good stock to
trade off support levels.

Picked on April 12 @ $96.31
Profit/Loss +1.69 (2%) (Stopped Friday @ $98.00)
Best Profit +3.78 (4%)

 



MOMENTUM PLAY DROPS 04/22/01
=============================

None



PLAY-OF-THE-DAY
===============

Sunday, April 22, 2001
=============================

GTK - GTECH Holdings Corp $29.79 (+0.57)

Sunday's Comment:

Although there are very few players that win the lottery, the
ones that always win in this game of chance are those companies
that supply the machinery to run these highly regulated
sweepstakes.  In addition, more and more states are now jumping
on board the lucrative gravy train of starting and running a
state lottery.  GTECH has been enjoying this trend by providing
the necessary equipment for governments in the U.S. and around
the world to set up their own "numbers" games.  GTK has been in a
steady up trend despite posting earnings on April 6th that showed
a decrease in profits of 6 pennies to $0.79 from the same quarter
a year ago.  That said, analysts believe that GTK will increase
their profits for the whole year by 33%.  Ever since November,
GTK has been moving steadily higher and has been finding
excellent support along its 40-DMA, which is now located at
$27.56.  Three of our favorite technical indicators, the MACD,
Money Flow and OBV are all steadily rising and point towards a
continuation of the positive momentum.  GTK may prove to be an
excellent buy if it can establish a new high above $29.95 on
Monday with first hour trading volume exceeding 50,000 shares.
If GTK gaps up to $32.00 or higher on the open, traders may want
to wait for a little pullback to around $29.50 before initiating
positions.

Picked on April 22nd @ $29.79
Change since picked +0.00
Stop Loss $26.75

 



================================================================
Weekly Play Results (04/09 - 04/13)
================================================================

Plays   Beginning Price    Ending Price    Gain/Loss    % Change
-----   ---------------    ------------    ---------    --------
ACI         $32.25            $33.00         $0.75         2.33%
BJS         $74.26            $75.00         $0.74         1.00%
EQT         $74.91            $75.00         $0.09         0.12%
HRB         $52.85            $53.71         $0.86         1.63%
KMB         $65.53            $62.50        -$3.03        -4.62%
MKC         $41.70            $41.20        -$0.50        -1.20%
OMC         $86.50            $90.69         $4.19         4.84%
PFGC        $53.91            $52.50        -$1.41        -2.62%
SLXP        $16.45            $14.75        -$1.70       -10.33%
SOTR        $46.96            $45.81        -$1.15        -2.45%
TARO        $50.65            $54.90         $4.25         8.39%
THC         $46.98            $43.88        -$3.10        -6.60%
UNP         $56.98            $58.85         $1.87         3.28%
SPW         $96.31            $98.00         $1.69         1.75%


************************Advertisement*************************
Tired of waiting on trades to execute?
Does your broker offer Stop Losses on Options?

Trade instantly with Stop Losses at PreferredTrade Inc.
Stop Losses based on the option price or the stock price.
Move your trading into the next millennium with PreferredTrade.

Anything else is too slow!

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**************************************************************


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