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Email Version, Section 1, Monday 04/23/01
The Newsletter           Monday  04/23/01  1 of 1
Copyright 2001, All rights reserved.
Redistribution in any form is strictly prohibited.

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

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In This Newsletter:
Market Commentary | The Power of Perception
Definition of the Day
Monday's Split Announcements | IVX, LH
Tuesday's Expirations
Tuesday's Play-of-the-Day | HSIC

Market Commentary

The Power of Perception

We are nearing the end of the first quarter earnings release
period.  The earnings release period began with an incredible
amount of fear that many high profile companies would miss their
earnings and guide analysts even lower going forward.  This
perception caused much of the selling we saw earlier this month.

Last week investors starting feeling better about stocks because
there was a perception (or perhaps illusion) that earnings were
quite strong because companies were coming out and beating lowered
estimates.  The bounce from oversold levels has been impressive
and I am sure that no one was terribly surprised that we saw a
pullback today.  Markets cannot go in one direction forever.

To that end, the Dow Jones Industrial Average (INDU) dropped 47.62
points and closed at 10,532.23.  Meanwhile, the NASDAQ (COMPX)
lost 104.05 points and closed at 2059.36. The major indices also
saw declines.  The S&P 100 (OEX) slipped 9.76 to 633.90, the S&P
500 (SPX) lost 18.65 to 1224.35 and the Russell 2000 (RUT) gave up
5.64 to 461.07.

Volume was a bit light, but this was typical for a Monday.  The
NYSE finished close to an even 1 billion shares traded while the
NASDAQ (COMPX) finished with 1.79 billion shares traded.

Technology stocks, which were the biggest winners last week, were
among the weakest stocks today.  Oracle (NASDAQ:ORCL) was crushed
$2.60 to $17.15 following a downgrade to "buy" from "strong buy"
from Lehman Brothers.  Chip industry leader Intel (NASDAQ:INTC)
dropped $2.11 to $30.32, as it too was downgraded after last
week's rally. Merrill Lynch moved their rating on Intel to
"intermediate-term neutral" from "intermediate-term accumulate".
Merrill Lynch also lowered its ratings on several communications
chip stocks.  As a consequence, Applied Micro Circuits
(NASDAQ:AMCC) lost $4.40 to $25.60, PMC-Sierra (NASDAQ:PMCS) fell
$6.05 to $38.76 and Vitesse Semiconductor (NASDAQ:VTSS) dropped
$2.33 to $32.44.

The most active list over at the NYSE was also dominated by
declining technology stocks.  EMC Corp (NYSE:EMC) fell $5.15 to
$39.95, Corning (NYSE:GLW) dropped $3.60 to $23.10 and IBM
(NYSE:IBM) slipped $2.83 to $112.00.

On the plus side, Minnesota Mining and Manufacturing (NYSE:MMM)
was quite strong with a gain of $3.80 to $116.30 following an
earnings release that net estimates, TETRA Technologies (NYSE:TTI)
moved up $3.25 following a good earnings report and EOG Resources
(NYSE:EOG) gushed $3.20 higher to $46.90 after its strong earnings
report attributed to strong natural gas prices.

Meanwhile, Play of the Day, GTECH Holdings
(NYSE:GTK), bucked the market trend and pushed its way to a new
high of $30.62 with a gain of $0.82.

There has been plenty of action after the close that could give us
an idea about how tomorrow's opening may look.

JDS Uniphase (NASDAQ:JDSU) announced that it will have an
important statement to make tomorrow morning before the market
opens.  Some are speculating that JDSU might issue an earnings
warning ahead of Thursday's official release, while others believe
that the fiber optic equipment company may be announcing the
acquisition of Lucent's (NYSE:LU) fiber optic business (it might
not be a coincidence that Lucent will be reporting its quarterly
results tomorrow morning).  JDSU finished the regular trading
session down $4.35 to $24.18 and was trading down to $22.50 in
after hours trading.

The big earnings news after the close came from computer
manufacturer Compaq (NYSE:CPQ).  Analysts were expecting the
company to report profits of $0.13 a share but the technology
leader fell a penny short.  Revenues of $9.2 billion were $300
million less than the same quarter a year ago.  CPQ finished the
regular trading session down $0.86 to $20.65 but is slipping to
just below $20.00 in after hours trading.

Novellus (NASDAQ:NVLS) reported first quarter profits of $0.62 a
share, which was a penny ahead of consensus estimates. This major
semiconductor equipment company enjoyed huge revenue growth this
quarter when compared to the same quarter a year ago.  Revenues
came in at $458.7 million while last year's first quarter revenues
were $220 million.  NVLS finished the regular trading session down
$1.94 to $51.14 but is coming back a half point in after hours

Tomorrow could be a very important trading day for the NASDAQ
(COMPX).  Technology stocks may be generally weaker on the open
due to the Compaq (NYSE:CPQ) earnings and the company's less than
encouraging forecast for only 5 cent in earnings in the second
quarter.  The JDS Uniphase (NASDAQ:JDSU) announcement (depending
on what it is) could also have a negative influence.

It will be important for the NASDAQ (COMPX) to hold the
psychological support of 2000.  A bounce off this level would
strengthen the argument that the NASDAQ is just backing and
filling its recent advance and going through a natural
consolidation.  If the NASDAQ closes below 2000, we may see some
more aggressive selling later in the week.  The MACD is still
positive but looks to be slowing its recent ascent.  The RSI never
reached a level that would suggest a severely overbought
condition.  That said, the RSI did reach its highest level since
September during the most recent rally.  Ultimately, bulls are
looking for a mild pullback that will enable them to pick up some
of their favorite stocks that they missed last week.  Resistance
for the NASDAQ can be found at last week's high of 2200.

It looks like the Dow Jones Industrials (INDU) will also start to
consolidate its gains.  Many of the Dow's components have already
reported their earnings.  That said, there are still enough
remaining earnings reports coming out this week to influence
trading.  If the Dow slips below 10,500, do not be surprised if
the Index test 10,250 later in the week.  It appears to be
unlikely that the Dow will test resistance of 10,750 this week.
As long as this pullback does not pick up steam with some heavy
volume, the current decline will be considered to be part of the
ebb and flow of the market and actually be perceived to be healthy
for the longer-term prospects for the market.

As we approach the end of the earnings period, traders will once
again start focusing more on the economic data during the month of
May.  It is entirely possible that we are heading into a period of
slower and narrower trading.  It will be hard for people to really
start throwing cash into this market until they get a clearer
picture about what the Fed may do at the end of May as well as
anxiously await the next earnings pre-announcement period.
Nevertheless, there are always opportunities to make money.  Stay
keenly aware of sector rotation.  These types of moves may be the
best opportunity to make money over the next four weeks.

Good Luck, and may all of trades be winning ones!

Jim Booth
Research Analyst

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Definition of the Day

Freddie Mac (Federal Home Loan Mortgage Association or FHLMC)

Created in 1970, Freddie Mac is a corporation, owned by
stockholders and chartered by Congress.

For the complete definition, please go to:

Monday's Split Announcements

Monday, April 23, 2001, During the Market

Ivax Corporation announces a 5-for-4 stock split

During regular trading today, Ivax Corporation (AMEX: IVX)
announced a 5-for-4 split on its outstanding common stock shares,
payable on May 18, 2001 in the form of a 25 percent stock
dividend. The event was announced at the Company's Board of
Directors meeting held earlier today.

Ivax Corporation currently has 160.2 million shares outstanding,
112.2 million in the float, and 250 million shares authorized for
issuance to the public. This marks the fifth split for Ivax
Corporation; the last split was a 3-for-2 on February 23, 2000.

For the complete announcement, please go to:


Monday, April 23, 2001, After the Bell

Lab Corp of America Reports Record Profits and a 2-for-1 Split

After today's closing bell, SplitTrader candidate, Laboratory
Corporation of America Holdings (NYSE:LH) announced results for
first quarter, ending March 31, 2001.  Diluted earnings per share
of $1.24 gained 49 cents over the same period for last year and
easily beat street estimates of $1.17. Net sales were $525.4
million, marking a 13.6 percent increase from last year, and net
income came in 70% higher at $43.5 million for the quarter.

The Board of Directors also announced their approval of a 2-for-1
stock split, pending shareholder approval to increase the number
of authorized shares to 265 million.  The Annual Shareholder's
Meeting is scheduled for May 24, 2001 and if the expected votes
are received, the payable date for the split will be June 11,
2001 for shareholders of record as of June 4, 2001.

For the complete announcement, please go to:

Tuesday's Expirations by Payable Date


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===================== Plays

The PLAY LEGEND: Play Recommendations.

Play-of-the-Day is our number one play recommendation for the
FOLLOWING trading day.

You will see:
Stock Symbol, Company Name, Closing Price, Change for the Week.
Following the play you will find: Picked at Date and Change Since Picked

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

At the 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.

Play of the Day (For Tuesday)
Monday, April 23, 2001

HSIC - Henry Schein Inc.  $38.36 +0.36

Sunday's Comment:

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.

Monday's Update:

Since reporting outstanding quarterly results in early March,
Henry Schein's stock has shined, rising from $28 a share to
today's close of $38.36, which represents a 35 percent gain.
More importantly, though, we think that Henry Schein's stock could
continue to shine thanks to its stout technical indicators.  In
fact, both the MACD and On-Balance Volume are displaying strong
momentum buy signals.  At current levels, Henry Schein appears to
have support at its 10-dma at $36.75, with additional support
coming from an intermediate uptrend line formed earlier this
month.  At this point, there is no significant resistance until
the January 1999 highs of $46.50.  Traders considering a position
in Henry Schein should look for strong volume, 200,000 shares or
more traded by noon EDT, on a move through Monday's intra-day all-
time high of $38.54 or a bounce off support at $36.75 before
placing their trades.

April, 22nd @ $38.00
Change since picked +0.36
Stop loss @ $35.00


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