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Email Version, Section 2, Sunday 04/29/2001
The SplitTrader.com                      Sunday 04/29/2001 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/042901_2.asp
=================================================================

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

Watch List
Plays - New - Updates - Drops
Monday's Candidate Play-of-the-Day -ACS
Weekly Play Results (04/23 - 04/27)

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





==========
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

IVX - Ivax Corporation  $39.43 +2.17

WHY WE LIKE IT:  IVX just declared a 5:4 split that will be
payable on 5/18/01 in the form of a 25% stock dividend.  This
manufacturer of pharmaceutical products is currently trying to
break its long-term downtrend line (now at $34.50) and its 50-dma
(now at $33.06).  We feel that if it can break through both these
resistance levels, that it has a chance to rally into its payable
date in May.  We also like the fact that IVX's MACD has rolled
positive and that the OBV is breaking out of a range.
POTENTIAL TRIGGER EVENT:  If IVX can muster enough strength to
hurdle and close above $34.50 on volume of at least 830,000
shares, we will reward it with a spot on our Current Play list.
SUNDAY'S UPDATE: On Friday, shares of IVX continued higher.  It
has become quite obvious that we missed the big move.  Due to the
fact that IVX is now 14% above the original trigger price of
$34.50, we are going to let IVX slide.  It will be dropped from
the list of Monday.  Hopefully some of you were able to make your
own judgment call last Wednesday when IVX started to break out,
and are now sitting pretty.

 

===

STT - State Street Corporation $104.50 +3.00

WHY WE LIKE IT:  Since February 16th, STT has been carving out an
inverse head and shoulders formation.  It is now working on
completion of its right shoulder.  As the fourth interest rate
cut starts to take a hold on the bank sector (BIX.X), we believe
STT has a good chance of breaking its neckline, now located at
$108.25.  Volume has been accelerating on any moves higher in STT
and has been drying up as the stock moves sideways to lower.
This tells us that sellers have given up the ship and that buyers
are now at the wheel.  STT is due to split 2:1 on May 31st.
POTENTIAL TRIGGER EVENT:  A break and close above STT's neckline
at $108.25 on volume of at least 1 million shares would earn the
bank stock a spot on our Current Play list.  Keep in mind that
the neckline is slightly up sloping, so as a result, we will be
updating the trigger price from time to time as it moves higher.
SUNDAY'S UPDATE:  Our new Watch List stock put in a good day on
Friday.  Shares of STT continue to trace a head and shoulders
bottom.  Although volume was not stellar on Friday (590,000
shares traded) the stock managed to close the chart gap formed
back on 4/23, which may allow the stock to march higher from
here.  The MACD remains positive and the stock has fallen back
from its upper Bollinger Band, which tells us that it has room to
run to the upside.

 


Candidates to Watch

AYE - Allegheny Energy  $50.60 +1.90

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:  Finally!  AYE hit our trigger on Friday on very
strong trade of 7.1 million shares.  You can now find this energy
play on our Current Play list.

 

===

LEN - Lennar Corporation  $44.90 +0.75

WHY WE LIKE IT:  Homebuilders have regained momentum to the
upside after the Fed rate cut last week and after a few companies
in the group reported better than expected earnings recently (LEN
is due to report on 6/20/01).  In addition, we like the looks of
LEN's chart.  The stock has formed a base on base formation over
the last four months and looks poised to breakout to the upside.
According to the depth of the most recent base formation, our
next target for LEN is the $52 level.
POTENTIAL TRIGGER EVENT:  A break and close above $45 on volume
of at least 800,000 shares would earn LEN a spot on our Current
Play list.
SUNDAY'S UPDATE:  LEN continues to tease.  The homebuilder spent
the day hovering around the $44.75 level but managed to power
higher into close.  We think this bodes well for LEN going
forward into next week and anticipate adding LEN to our Current
Play list soon.  Should LEN fall apart, though, we will watch it
fall only as far as support at $40.

 

===

TTC - Toro Company  $46.25 +0.70

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: Buyers spent the whole session on Friday bidding
up shares of our landscape equipment play.  Due to this increased
interest in the stock, TTC hit our trigger point and now resides
on our Current Play list.

 


Momentum Stocks to Watch

BLL- Ball Corporation $46.80 -0.95

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: After just about making the grade this past
week, Ball is now almost closer to our exit point of $45 than our
trigger point of $48.  We still hold out hope that buyers will
reappear next week, but the fact that the MACD just turned
negative is not a good sign.  Should Ball loose more air, we will
watch it fall only as far as its most recent support level at
$45.

 

===

DCI - Donaldson Company, Inc.  $28.24 +0.25

WHY WE LIKE IT:  Donaldson is another early cycle company that
benefits from lower borrowing rates.  As the economy starts to
gear up, the filters that Donaldson manufactures get more use.
This is because their filters are used in heavy machinery,
semiconductor manufacturing, exhaust systems and gas turbines.
Even without the help of the recent rate cut, the cyclicals have
been shining on hopes of an economic turnaround.
POTENTIAL TRIGGER EVENT:  If DCI can claw its way above its
previous high of $29.81 on volume of at least 90,000 shares, we
will clear a spot for the filter firm on our Current Play list.
SUNDAY'S UPDATE:  DCI keeps on doing exactly what we anticipated.
Shares of the filter maker edged higher on Friday accompanied by
light trade of 45,000 shares.  The stock looks to be tracing a
handle to go along with its two month long cup.  Ideally it will
put in a few more days flat lining before making a push to our
trigger point of $29.81.  Should DCI decide to sell off however,
we will continue watching the capital goods company only as long
as it can continue closing above support at $25.

 





=====================
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 042901
============================

None



NEW SPLIT CANDIDATE PLAYS 042901
==================================

AYE - Allegheny Energy, Inc. $50.60 (+3.45)

Allegheny Energy, Inc. is a diversified utility holding company
that provides electric generation and distribution services in
Maryland, Ohio, Pennsylvania, Virginia and West Virginia. The
stock has performed well over the past year after hitting a 4-
year low of $23.62 on 3/10/00. On Friday, shares of AYE hit an
all-time high of $51.30, representing a 117% gain from the low.
The stock has posted gains in the last four sessions following
its earnings announcement on Monday evening. On Thursday night,
the company sold 12.4 million common shares in a stock offering
at $48.25 per share, raising $598.3 million in gross proceeds. We
believe that AYE could continue to trend higher now that it has
cleared the earning announcement and the stock offering. We are
also looking for a stock split out of the Annual Meeting on May
10th. The company already has enough shares for a split with 260
million shares outstanding and 123 million shares issued. Going
forward, AYE has support at Thursday's intra-day high of $49.20
with stronger support at $48.17, the 10-dma. Resistance is
currently at Friday's intra-day high of $51.30 and then possibly
$53. Traders may consider opening new positions on a bounce off
of $49.20 or a breakout above $51.30 on volume greater than
300,000 shares by noon. We plan to place stops at $47 as downside
protection.

Picked on April 29th @ $50.60
Change since picked +0.00
Stop Loss @ $47.00

 

===

TTC - Toro Company $46.25 (+2.15)

Beautiful weather across the country is probably having people
dreaming of barbecues and pool parties. However, spring and
summer also bring another warm weather activity to mind, cutting
the grass.  This ties right into our new play, Toro.  TTC is an
excellent seasonal play, due to its huge line of lawn and
gardening equipment.  Additionally, Toro is a huge beneficiary of
the boom in golf course construction.  Toro's top of the line
products serves to keep a multitude of golf courses across the
country looking in tiptop shape. The company's fundamentals are
also solid.  Toro is expected to show profits of $2.29 this
quarter when it reports earnings on May 23rd. Despite the
company's solid earnings, it only trades at a trailing P/E of
13.21.  Turning to the chart, TTC has been building a symmetrical
triangle over the last two months and has just broken to the
upside.  Major support can be found at the 50-DMA of $43.94 (just
above our initial stop of $43.50).  TTC may accelerate once it
surpasses the $47.00 resistance level.  Traders might be
interested in picking up this stock if it can make this move
accompanied by midday volume of over 50,000 shares.  The next
resistance level after that is $47.65 (the all time high).  The
MACD just turned positive last week, which is a good sign that
TTC is on the verge of making another foray into new high
territory.  The Money Flow and OBV are also both solid and the
RSI has plenty of room before an overbought condition is
signaled.  We our placing our initial stop at $43.50 to lower our
downside risk.

Picked April 29th @ $46.25
Change since picked +0.00
Stop Loss @ $43.50

 



NEW MOMENTUM PLAYS 042901
============================

None



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


SPLIT RUN PLAY UPDATES 042901
===============================

SOTR - SouthTrust Corporation $48.60 (+2.79)

SouthTrust Corporation has posted gains in each of the last three
sessions as the banking sector gains momentum. On Friday, shares
of SOTR traded to an intra-day low of $47.03 before reversing
direction late in the session. The stock finished the day at an
all-time high of $48.60 on volume of 1.26 million shares. SOTR is
heating up as we approach the 2:1 split, payable on May 11th. The
stock has made four higher highs coupled with higher lows.  The
volume is also picking up, so SOTR may just continue to move
higher into the payable date. Until then, support is Thursday's
intra-day high of $48 with stronger support at $47, the 5-dma.
Resistance was taken out on Friday, so new resistance may show up
at $49 or $50. Look for a bounce off of $48 or a breakout above
$49 on midday volume of at least 500,000 shares may be possible
entry points. We are keeping our stops at $44 as downside
protection.

Picked on April 19th @ $46.96
Change since picked +1.64
Stop Loss @ $44.00

 



SPLIT CANDIDATE PLAY UPDATES 042901
=====================================

ACS - Affiliated Computer Services $71.39 (+6.54)

ACS is living proof that not every technology-based business is
circling the drain.  Perhaps ACS is benefiting from the seemingly
unlimited resources of the Federal Government, which is an
extremely important client of ACS's information technology
services.  Additionally, traders may be attracted to ACS because
of the possibility that the company will announce a split soon.
The company's last split occurred in November of 1996 when the
stock was trading nearly $14.00 lower than Friday's closing
price.  ACS established a new intraday high of $72.48 on Friday.
This is an encouraging sign that momentum traders are buying the
stock in earnest.  That said, we would have liked to see volume
exceed 600,000 shares (volume came in at 542,000).  A good entry
point may present itself if ACS can trade above $72.50 on Monday
and make this move with first hour volume exceeding 175,000
shares.  In the event of a gap up of over $2.50, it might be wise
to wait for a potential pullback before getting on board.  Please
make a note of the fact that we have raised our stop to $64.50 in
an attempt to lock in profits.

Picked on April 26th @ $69.13
Change since picked +2.26
Stop Loss $64.50

 

===

HRB - H&R Block $54.60 (+0.89)

H & R Block made a nice technical move higher on Friday.  The
stock had been basing around the $54.00 level but with Friday's
burst higher, HRB cleared its base pattern and looks poised to
challenge its all-time high of $59.50 established back in August
of 1999.  The stock has been setting up perfectly, having first
gapped higher in February and then subsequently forming a base on
base pattern on lower volume.  Momentum traders love this kind of
price action since it allows for stronger moves once the stock
finally breaks to new highs.  The only thing lacking on Friday's
breakout move was volume.  HRB traded 444,000 shares on Friday
compared with its three-month average of 530,000.  We shall soon
see if this is going to hold the stock back, because the stock
will sink right back into its base on Monday if traders don't
think the breakout had enough conviction. In addition, the OBV
needs to turn up, as it diverged lower last week as HRB continued
sideways.  This is not a great sign, but can be remedied with a
few solid up days on heavy volume.  If you are in the stock with
a profit, you might think about raising your stop just in case.
As far as initiating new plays is concerned, volume is the key.
Lower risk entries will present themselves on a break above
Friday's high on increased daily volume of at least 600,000
shares traded.  Our stops remain at $49.25, but if volume
continues to dry up, we will be raising them soon.

Picked on April 18th @ $52.85
Change since picked +0.75
Stop Loss @ $49.25

 

===

JEC - Jacob's Engineering $66.27 (+6.77)

JEC, which offers a multitude of commercial construction and
maintenance services, was one of the best performing stocks last
week.  It makes sense that sidelined cash is flowing into this
stock.  The company already reported solid earnings earlier this
month and it has a huge backlog (just under $6 billion) going
forward.  JEC may be offering investors the best of both worlds,
that being solid earnings and excellent growth at a reasonable
price.  Its P/E as of Friday was 22.18, which compares favorably
with other companies in the construction service sector.  Profit
takers tried to take the stock down on Friday, but it recovered
nicely and could be poised for further gains this week.  A move
above $67.00, which would establish a new high, may prove to be
the next excellent entry point for momentum traders, especially
if we see first hour trading volume exceed 100,000 shares.
However, the RSI is now indicating an overbought condition;
therefore traders should probably be cautious if JEC gaps up two
or more points at the open.  JEC's longer-term prospects look
very promising because the MACD, OBV and Money Flow are all
soaring.

Picked on April 24th @ $62.00
Change since picked +4.27
Stop Loss @ $64.00

 

===

MKC - McCormick & Company $41.04 (-0.16)

McCormick & Company is gaining upward momentum following two
weeks of selling pressure. On Friday, shares of MKC hit an intra-
day high of $41.40 before pulling back to a close of $41.04 on
light volume of 91,800 shares. The stock is starting to build a
short-term upward trend after testing the low end of its trading
range at $40. However, the volume remains light so MKC may
continue to trade in the $40-$43 range until the volume picks up.
From a technical standpoint, MKC has support at Friday's intra-
day low of $40.80 with additional support at $40.25, Wednesday's
intra-day low. Resistance is the 20-dma at $41.56 and then the
April 18th intra-day high of $42. Traders may consider starting
new plays on a bounce off of $40.80 or a move above $41.56 on
volume greater than 75,000 shares by noon. Our stops are holding
steady at $38.75.

Picked on March 29th @ $41.43
Change since picked -0.39
Stop Loss @ $38.75

 



MOMENTUM PLAY UPDATES 042901
===============================

GTK - GTECH Holdings Corp $32.24 (+2.45)

Market sentiment has been shifting over the last week, which may
explain why we saw solid buying across the board. Over the past
couple of months we have seen profit taking at the end of the
week from nervous traders.  On Friday, however, we saw solid
buying into the close, which helped GTK to finish right at its
high print for the week.  This fact bodes well for GTK's
prospects for this coming week because momentum traders, who
appear to be coming out of hibernation, will likely notice the
excellent relative strength that GTK is exhibiting.  These types
of traders might be strong buyers of GTK on Monday especially if
the stock opens to the upside.  However, one should probably be
cautious about buying GTK if the stock gaps up more than two
points at the open.  If GTK gaps up by this amount or more, it
will likely pull back in the first hour of trading and offer
stock pickers a more advantageous entry price later in the
session.  The current rally has seen GTK find good support at its
5-DMA, which closed at $30.41 on Friday.  If GTK drops below this
support on Monday, traders may want to hold off on adding to
positions.  Two technical indicators, the MACD and OBV, are
implying that there are potentially more gains to be had down the
road in GTK.  We are raising our stop to $31.00 to lock in gains
should GTK reverse course.

Picked on April 20th @ $29.79
Change since picked +2.45
Stop Loss $31.00

 

===

HSIC - Henry Schein, Inc. $38.04 (+0.04)

Henry Schein, Inc. made a nice recovery on Friday thanks to a
solid earnings report from UnitedHealth Group (UNP). Shares of
HSIC traded to an intra-day high of $38.14 following the news.
Volume was on the heavy side, with 560,000 shares changing hands.
Unfortunately, volume has been trending lower over the past week
and the stock has made three consecutive lower highs on top of
lower lows. On the positive side, HSIC was able to close above
the 10-dma, keeping the long-term upward trend alive and a
positive volume surge could drive the stock to a new 52-week
high. For now, support is the 10-dma at $37.60 with stronger
support at the April 19th intra-day low of $36. Resistance is the
5-dma at $38.21 and then $39.02, Wednesday's intra-day high. A
bounce off of $37.60 or a move above $38.21 on midday volume of
at least 250,000 shares may be possible entry points. We are
leaving our stops at $35 to limit potential losses.

Picked on April 22nd @ $38.00
Change since picked +0.04
Stop Loss @ $35.00

 

===

LEA - Lear Corporation $35.98 (+0.86)

Lear was bitten by yet another analyst downgrade on Friday after
just being downgraded by two other brokerage firms on Thursday.
This time around it was Goldman Sachs that lowered its rating on
the big automotive parts supplier.  Goldman removed LEA from its
recommended list and tacked a new rating of market perform upon
our play.  The good news throughout all this pessimism is that
the stock has held its own.  In fact, after being down almost
$1.00 on Friday, LEA rallied to close up by $0.06.  This is a
great sign that buyers are supporting the stock.  It seems as if
most buyers are stepping up at the 5-dma, now at $35.79, since
LEA has bounced off this level twice over the last week.  The
technical picture on Lear is still looking very good.  The recent
churning in the stock has resulted in Lear tracing a handle to
accompany its cup formation.  These chart patterns can result in
powerful moves to the upside if a breakout occurs on strong
volume.  Therefore, we will watch for LEA to breach the $36.20
level on volume of at least 600,000 shares by the end of the day.
If it looks like the stock is going to close above this level,
this is your lower risk entry signal.  Our stops remain at $33.88
to protect against a reversal.

Picked on April 24th @ $36.20
Change since picked -0.22
Stop Loss @ $33.88

 



=====
DROPS
=====


SPLIT RUN PLAY DROPS 042901
=============================

None



SPLIT CANDIDATE PLAY DROPS 042901
===================================

None



MOMENTUM PLAY DROPS 042901
=============================

None



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

Sunday, April 29, 2001
=============================

ACS - Affiliated Computer Services $71.39 (+6.54)

Sunday's Comment:

ACS is living proof that not every technology-based business is
circling the drain.  Perhaps ACS is benefiting from the seemingly
unlimited resources of the Federal Government, which is an
extremely important client of ACS's information technology
services.  Additionally, traders may be attracted to ACS because
of the possibility that the company will announce a split soon.
The company's last split occurred in November of 1996 when the
stock was trading nearly $14.00 lower than Friday's closing
price.  ACS established a new intraday high of $72.48 on Friday.
This is an encouraging sign that momentum traders are buying the
stock in earnest.  That said, we would have liked to see volume
exceed 600,000 shares (volume came in at 542,000).  A good entry
point may present itself if ACS can trade above $72.50 on Monday
and make this move with first hour volume exceeding 175,000
shares.  In the event of a gap up of over $2.50, it might be wise
to wait for a potential pullback before getting on board.  Please
make a note of the fact that we have raised our stop to $64.50 in
an attempt to lock in profits.

Picked on April 26th @ $69.13
Change since picked +2.26
Stop Loss $64.50

 



================================================================
Weekly Play Results (04/23 - 04/27)
================================================================

Plays   Beginning Price    Ending Price    Gain/Loss    % Change
-----   ---------------    ------------    ---------    --------
ACS         $69.34            $71.39         $2.05         2.96%
GTK         $29.79            $32.24         $2.45         8.22%
HRB         $53.71            $54.60         $0.89         1.66%
HSIC        $38.00            $38.04         $0.04         0.11%
JEC         $62.00            $66.27         $4.27         6.89%
LEA         $36.20            $35.98        -$0.22        -0.61%
MKC         $41.20            $41.04        -$0.16        -0.39%
OMC         $90.69            $89.00        -$1.69        -1.86%
SOTR        $45.81            $48.60         $2.79         6.09%
TARO        $54.90            $53.00        -$1.90        -3.46%
UNP         $58.85            $54.50        -$4.35        -7.39%





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