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Email Version, Section 1, Tuesday 05/01/2001
The SplitTrader.com Newsletter          Tuesday 05/01/2001 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 -

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/050101_1.asp
================================================================

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

Market Commentary - Stocks Make Hay On May Day
Definition of the Day
Tuesday's Split Announcements - GNWR, RDN
Wednesday's Expirations
Plays - New - Updates - Drops
Wednesday's Play-of-the-Day - GTK

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


Market Commentary
=================

Stocks Make Hay On May Day

May Day has two traditions, one being the celebration of the
first spring planting, the other being the unification of
laborers around the world through rallies, speeches and riots.
Both traditions were upheld today, as anti-capitalist protesters
clashed with police in the streets of London and the U.S. stock
market planted the seeds of hope for a summertime harvest of
stock gains.

When Americans think of May Day, they usually think of dancing
around a pole with colored ribbons.  This tradition dates back to
the 1700's when pagan revelers, unafraid of strict Catholic
rules, donned masks and celebrated the springtime in the same
fashion as our current day Halloween.  In addition, they selected
a May Queen and raised the May pole, around which single men and
women danced with ribbon until they become entwined with their
potential new love.

As we put April into the books, it seems as if investors are now
dancing around the May pole with the financials, retailers and
consumer stocks.  These are the sectors that you like to see move
in a recovery attempt.  If we can also get the tech stocks moving
in synch with the financials, the springtime love-fest will be
complete.

Moving from matters of the heart to the economy, we received news
from the National Association of Purchasing Mangers today.  These
are the folks in charge of ordering materials for production, so
they are certainly connected to the pulse of manufacturing.  They
reported that the NAPM number came in at 43.2% for April, which
was just shy of expectations of 43.8%.  Readings over 50%
indicate growth.

The good news, however, was that the April reading was a touch
higher than March's figure of 43.1%.  All the "cup is half full"
analysts immediately called this a bottom in the manufacturing
sector.  While things are getting less bad, I don't think that
this NAPM reading is reason to assume that the manufacturing
sector is out of the woods just yet.

In addition to the NAPM reading, the employment index came in at
38.1% versus March's reading of 40.4% and the prices paid index
fell to 48.9% versus 49.9% in March.  Rounding out the readings
from the manufacturing were inventory levels, which lucky for the
bulls, are being worked down at a faster pace.

Today's Markets

Giving a boost to the markets was an afternoon announcement that
the Senate and the House had reached a tentative agreement on a
$1.35 trillion tax cut plan that includes a $100 billion
retroactive cut this year.  This cut can only help the market as
it puts money back into the hands of the consumer.

Turning to the NASDAQ (COMPX), after a slow start on the day, the
tech heavy index rallied higher on the heels of a strong NYSE
showing.  The NASDAQ added 52.00, or 2.46%, to close at 2168.24.
Volume was moderate, with 1.9 billion shares changing hands.  New
highs trounced new lows 131 to 28.

The DOW closed up 163.37, or 1.52%, to 10898.34, just off the
high off the day.  The DOW has been bumping its head on the
10900-level for the past two sessions, so we will see if this
area proves to be resistance for the DOW going forward.  Volume
on the big board came in at 1.1 billion, which is on the slow
side compared to recent sessions.  New highs came in at 89 as
opposed to new lows at 12.  Market internals still continue to
support a turnaround.

Bucking the recent trend, treasurys were actually higher today,
even as equities mounted another rally.  The 10-year bond closed
up 11/32 to yield 5.29% and the 30-year note added 21/32 to yield
5.735%.

Stocks and Sectors on the Move

Putting a huge upside gap in its chart today was DOW stock
Proctor & Gamble (NYSE:PG).  After reporting earnings of
$0.71/share, as opposed to estimates of $0.69/share, PG rocketed
higher right out of the gate.  The consumer staples stock ended
the session up $4.13, or 6.88% to $64.18.  The company put the
icing on the cake by reiterating its sales growth going forward
and was also on the receiving end of an upgrade by Salomon Smith
Barney.

Internet stocks started May off with a bang today.  The catalyst
was Priceline.com (NASDAQ:PCLN), which rallied $1.74, or 35.88%
to $6.59 after Goldman Sachs upped its rating on the internet
play from a "market perform" to a "market outperform".  In
addition, the name-your-own price site posted a narrower than
expected loss in the after hours session.  The company posted a
loss of $0.03/share as opposed to estimates of a loss of
$0.05/share.

Other internet stocks that outperformed on the day included:
Amazon (NASDAQ:AMZN) up $1.11 to $16.89, Yahoo! (NASDAQ:YHOO) up
$2.13 to $22.31 and Ebay (NASDAQ:EBAY) up $3.83 to $54.31.

Telecommunications stocks also dialed up nice gains on the day.
Mind you, these stocks are coming off lows not seen for two years
in most cases.

The driving force today might have been the announcement of more
job cuts.  This time, it was Nextel Communications (NASDAQ:NXTL)
that indicated it would be getting busy with the pink slips.  The
company said it would be cutting 5% of its work force.  In
addition, NXTL posted losses of $0.56, $0.05 worse than analysts
estimates.  Given all the news, the stock managed to close higher
by $2.47 to $18.72.

Other telecom stocks that moved higher on the day were Worldcom
(NASDAQ:WCOM) up $0.42 to $18.67, AT&T (NYSE:T) up $0.80 to
$23.08 and Sprint (NYSE:FON) up $0.24 to $21.62.

Looking Forward, Always Forward

Well, no big economic reports until Friday's payroll's numbers.
And with earnings reports largely in the rearview mirror, traders
can focus on moves in specific stocks and sectors.

That being said, having our eyes glued to charts all day does two
things for us at Splittrader.  One, it makes us blind as a bat
and two; it keeps us in tune to the "big-picture" supply and
demand of stock.  From our recent observations (through thick
glasses) we are seeing more buying on the dips across a wide
variety of sectors.  This has been most noticeable around midday,
which is significant because in general, most institutions
actively trade at the open and at the close.  This tells us that
it is the retail investor that has got up the gumption to come in
and scoop up stock as it is falling during the day.  This is not
the type of price action that you see in a bear market.

We are also keeping our eyes on the Biotech Sector as measured by
the AMEX Biotech Index (BTK.X).  This index has finally managed
to hurdle its long-term downtrend line that dates back to
November of 2000.

Chart of the Biotechnology Index:



Therefore, don't be surprised if you find some biotech plays on
our Current Play list before you find straight tech.  We have
been using a top down approach when picking stocks, making sure
that the overall sector is healthy first and foremost before the
health of individual stocks within that sector are considered.

If the sector is rising, the chances that individual stocks
within that sector will hold up at support levels are much
better.  This keeps our risk parameters in check, while
increasing our chances of seeing some gains soon after a stock is
picked.  This ultimately gives us the initial wiggle room we need
to raise our stops and lock in gains.

Happy Trading and Keep Your Stops In Place

Craig Seidler
Assistant Editor
www.SplitTrader.com


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Definition of the Day
=====================

Call Option

A call option gives the holder of the contract (buyer) the right
to purchase the underlying security at a specified price, which is
referred to as the strike price.

For the complete definition, please go to:
http://www.splittrader.com/glossary/viewglossary.asp?glossaryid=54



Tuesday's Split Announcements
=============================

Tuesday, May 01, 2001, Before the Bell

Railroad company declares stock split, positive earnings

Before today's opening bell, Genesee & Wyoming Inc. (Nasdaq:GNWR)
announced first quarter profits and a 3-for-2 stock split on the
Company's common outstanding shares.

For the complete announcement, please go to:
http://www.splittrader.com/announcements/050101_1.asp

===

Tuesday, May 1, 2001, During the Market

Radian Group has announced a 2-for-1 split

During regular trading today, Radian Group, Inc. (NYSE:RDN)
announced a two-for-one stock split on its common stock. Radian
also stated that they are increasing stock dividends to $0.02
cents per share. These events were first made public at the
Company's Board of Directors meeting, earlier this morning.

For the complete announcement, please go to:
http://www.splittrader.com/announcements/050101_2.asp



=======================================
Wednesday's Expirations by Payable Date
=======================================

None


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


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

The PLAY LEGEND:

SplitTrader.com Play Recommendations.

Updates are just that - updates on continuing plays
New plays are brand new for the newsletter.
Closing plays are 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

On the SplitTrader.com website we have very detailed profiles
for the stocks we play.  Please take the time to visit the site
and look up a stock's profile if you are interested in more
information.
================================================================


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


NEW SPLIT RUN PLAYS 05/01/01
============================

None



NEW SPLIT CANDIDATE PLAYS 05/01/01
==================================

None



NEW MOMENTUM PLAYS 05/01/01
============================

WSM - Williams Sonoma Inc. $31.10 +1.03 ($1.80)

Specialty home retailer Williams Sonoma continued to build on
yesterday's breakaway gap from $29.00.  What's more, today's move
comes on volume nearly double the three-month average daily volume
of 551,000.  WSM has been the beneficiary of a resurging retail
sector.  Over the past week, the S&P Retail Index (RLX) has surged
ahead 7.2 percent.   At this point, WSM has made room to run
higher.  The stock has taken out resistance at $30 along with its
upper Bollinger band at $30.56.  With these resistance levels out
of the way, it appears to be smooth sailing until $40.  As for
support, traders can look for $30 to provide the first level,
followed by the 10-dma at $28.08.  Traders considering a position
in WSM should look for strong volume, 250,000 shares or more
traded by noon EDT, on a move through today's intra-day high of
$31.40 or a bounce off support at $30.00 before placing their
trades.  We are placing our stop-loss just at $27.75, which is
just below the 200-dma.

Picked on May 1st @ $31.10
Change since picked 0.00
Stop Loss @ $27.75

 



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


SPLIT RUN PLAY UPDATES 05/01/01
===============================

SOTR - SouthTrust Corporation $46.52 -1.03 (-2.08)

SouthTrust sold off after hitting an all-time high during Monday's
session. On Tuesday, shares of SOTR traded to an intra-day low of
$45.86 before bouncing back to a close of $46.52 on volume of 1.34
million shares. The stock has slipped back into its $43-47 trading
range and has closed below the 10-dma for the first time since
April 17th. However, SOTR was able to hold the 20-dma and the
volume has been trending higher over the past four sessions. The
stock could be blowing off steam before resuming its split run
into the May 11th payable date. In the meantime, support is the
20-dma at $45.85 with additional support at $45.45, the April 23rd
intra-day low. Resistance has come in at the 10-dma, currently at
$47.43, and then the April 26th intra-day high of $48. Traders may
consider opening new positions on a bounce off of $45.85 or a move
above $47.43 on volume greater than 500,000 shares by noon. We are
leaving our stops at $44 to limit potential losses.

Picked on April 19th @ $46.96
Change since picked -0.44
Stop Loss @ $44.00

 



SPLIT CANDIDATE PLAY UPDATES 05/01/01
=====================================

ACS - Affiliated Computer Services $72.93 +0.93 (+1.54)

Investors have to be impressed with the way ACS avoided the epic
bear market in technology stocks.  Now, ACS is climbing even
higher due to the renewed interest in the technology sector.  That
said, ACS did suffer from a bit of profit taking into the close
following the establishment of a new intra-day high of $74.00.
Additionally, today's volume of just under 1 million shares was
fairly strong and much of the volume came near the close when the
stock was pulling back. Consequently, we have raised our stop to
$71.00, just in case today's late action is foretelling more
profit taking to come.  That said, the RSI still has room to move
before indicating an overbought condition.  A break above $74.00
tomorrow might offer momentum traders yet another good entry
opportunity for quick profits.  The longer term prospects for more
price appreciation are encouraging, especially since the MACD is
in a solid rally mode.

Picked on April 26th @ $69.13
Change since picked +3.80
Stop Loss $71.00

 

===

AYE - Allegheny Energy Inc. $51.38 +0.22 (+0.78)

Allegheny Energy opened at an all-time high of $51.75 on Tuesday
morning. The stock spent the rest of the day fighting to hold on
to the gain. Shares of AYE traded to an intra-day low of $50.55
before bouncing back to close at $51.38 on heavy volume of 893,000
shares. AYE has put in seven consecutive higher lows and volume is
trending higher, so the stock could continue to hit new highs as
we move closer to AYE's annual meeting, and potential split
announcement, on May 10th. For now, support has moved up to
Tuesday's intra-day low of $50.55 with stronger support at $50.03,
the 5-dma. Resistance is Tuesday's intra-day high of $51.75 and
then $53. Look for entry points on a bounce off of $50.55 or a
breakout above $51.75 on midday volume of at least 300,000 shares.
Our stops remain at $47.

Picked on April 29th @ $50.60
Change since picked +0.78
Stop Loss @ $47.00

 

===

HRB - H & R Block Inc. $53.91 -1.09 (-0.69)

Last week we went on ad nauseam about HRB consolidating around
$54.  Unfortunately, this week we find ourselves doing more of the
same.  The omnipresent tax preparer closed the day down $1.09 to
$53.91 on light volume of 379,900 shares traded, which means,
thankfully, there wasn't a mad rush to the exit.  The $55 level
appears to be presenting HRB with tough resistance.  Yesterday, it
hit this level and was stopped in its tracks.  Today, it hit
$54.75 before being turned backed.  The good news is HRB caught
support at its 10-dma at $53.87, so it could be consolidating
before attempting another move north.  As it now stands, HRB has
strong support at its 40-dma at $51.03 and immediate resistance at
$55.00.  Traders considering a position in HRB should look for
strong volume, 250,000 shares or more traded by noon EDT, on a
move through resistance at $55.00 or a bounce off the 10-dma
before placing their trades.

Picked on April 18th @ $52.85
Change since picked +1.06
Stop Loss @ $49.25

 

===

JEC - Jacob's Engineering $66.50 +0.58 (+0.23)

JEC got off to a slow start this week.  However, there was a
positive report about the burgeoning demand for the type of
construction engineering services that JEC provides that
circulated through the news wires yesterday.  It has been well
documented that California has been woefully negligent in updating
its energy infrastructure.  When the state finally bites the
bullet, it could lead to some new huge contracts for JEC,
especially since the company is located in Pasadena, CA.
Technically speaking, this stock is consolidating between support
of $63.38 and resistance of $67.00.  A break above $67.00 could
result in a nice bullish move.  Some traders might want to buy a
break above this price, especially if midday volume exceeds
100,000 shares.  A gap up to $68.00 or higher on tomorrow's
opening might result in a bit of a pullback that may offer traders
a better entry price.  The MACD, Money Flow and OBV are all
outstanding and point towards more gains in the future.  However,
the RSI is indicating a short term overbought condition.
Therefore, one should be mindful of their stops (as always), just
in case there is a pullback.

Picked on April 24th @ $62.00
Change since picked +4.50
Stop Loss @ $64.00

 

===

TTC - Toro Company $45.70 -0.45 (-0.55)

Toro has been pretty much ignored by market participants so far
this week.  Nevertheless, we still like the potential for profits
with this play as we enter the peak season for lawn and gardening
equipment demand.  TTC is also a strong value play due to its low
P/E of 13.06.  Today's volume of 32,400 shares was very light and
was barely more than a third of the stock's average daily volume
of 93,000.  This fact, which is reflected by a Money Flow that
remains decidedly positive, tells us that there was very little
interest in selling TTC during today's pullback. A bounce off
support offered by the 10-DMA of $45.09 might provide a good entry
point.  If TTC can close tomorrow above $46.63 and finish with
volume approaching 100,000 shares, the stock might be a more
compelling buy on Thursday's open.  Keep in mind that a gap up of
a dollar or more might result in a bit of a pullback in the first
hour of trading that may provide patient investors with a better
price than the opening print.  One technical indicator that is
especially encouraging is the MACD, which appears to be suggesting
that TTC is one the verge of starting a sustainable rally.

Picked April 29th @ $46.25
Change since picked -0.55
Stop Loss @ $43.50

 



MOMENTUM PLAY UPDATES 05/01/01
===============================

GTK - GTECH Holdings Corp $33.79 +1.19 (+1.55)

GTECH is living up to the "tech" in its name.  GTK started the
week in splendid fashion by achieving new highs that were
characterized by strong buying in the technology sectors.  Today's
move was particularly impressive because volume was excellent at
600,000 shares, which was more than twice the average daily volume
of 287,000 shares.  This heightened activity is indicative of
strong buying from the momentum crowd.  One potential entry point
would present itself tomorrow if GTK moves above $34.30
accompanied by midday volume exceeding 150,000 shares.  That said,
it is important to note that the RSI is indicating an extremely
overbought condition.  The last time the RSI was at a similar
level, the stock traded sideways for a few days and then pulled
back.  Therefore, we have raised our stop to $32.00.  In the
meantime, enjoy the ride should GTK continue to make new highs.

Picked on April 22nd @ $29.79
Change since picked +4.00
Stop Loss $32.00

 

===

LEA - Lear Corp. $35.93 -0.07 (-0.05)

Today, Lear announced that it was named a General Motors Supplier
of the Year because of its superior performance in quality,
service, technology and price.  Not that the kudos from GM did
much for LEA's stock, which closed down $0.07 to $35.93.  For the
past five sessions, LEA has been stopped at the $36.00 level.
Today, the stock was stopped at $35.93.  Lear appears to be
consolidating between $35 and $36 and is forming a bullish
pennant, which has us thinking the stock is biding its time before
making a move higher.  To that end, LEA has been riding a 45-
degree uptrend line since early April.  At this point, the stock
has gained support from former resistance at $35.00.  Overhead,
LEA has immediate resistance at $36, and then it's smooth sailing
until the April 1999 highs of $50 (though it could hit mild
resistance at the psychologically-significant $40 level).  Traders
considering a position in LEA should look for strong volume,
250,000 shares or more traded by noon EDT, on a move through
today's intra-day high of $36.40 or a bounce off support at $35.00
before placing their trades.

Picked on April 24th @ $36.20
Change since picked -0.27
Stop Loss @ $33.8

 



=====
DROPS
=====


SPLIT RUN PLAY DROPS 05/01/01
=============================

None



SPLIT CANDIDATE PLAY DROPS 05/01/01
===================================

HSIC - Henry Schein, Inc. $35.65 -2.77 (-2.39)

Henry Schein ran into some trouble on Tuesday. Shares of HSIC
traded to an intra-day low of $34.38 before making a slight
recovery late in the session. We were stopped out at $35, so we
are dropping HSIC from our "Current Plays" list.

Picked on April 22nd @ $38.00
Profit/Loss = -3.00 (-8%) (Stopped @ Tuesday @ $35.00)
Best Profit = +1.27 (+3%)

 



MOMENTUM PLAY DROPS 05/01/01
=============================

MKC - McCormick & Company $37.95 -1.35 (-3.09)

McCormick lost all means of support this week. On Tuesday, MKC
fell to an intra-day low of $37.85 on heavy volume of 541,000
shares. We were stopped out at $38.75, so we are dropping MKC
tonight.

Picked on March 29th @ $41.43
Profit/Loss = -2.68 (-6%) (Stopped @ Tuesday @ $38.75)
Best Profit = +1.51 (+4%)

 



WEDNESDAY'S PLAY-OF-THE-DAY
===========================

Tuesday, May 1, 2001
=============================

GTK - GTECH Holdings Corp $33.79 +1.19 (+1.55)

Tuesday's Comment:

GTECH is living up to the "tech" in its name.  This online lottery
purveyor started the week in splendid fashion by achieving new
highs that were correlated with strong buying in the technology
sectors.  Today's move was particularly impressive because volume
was excellent at 600,000 shares, which was more than twice the
average daily volume of 287,000 shares.  This heightened activity
is indicative of strong buying from the momentum crowd.  One
potential entry point could present itself tomorrow if GTK moves
above $34.30 accompanied by midday volume exceeding 150,000
shares.  That said, it is important to note that the RSI is
indicating an extremely overbought condition.  The last time the
RSI was at a similar level, the stock traded sideways for a few
days and then pulled back.  Therefore, we have raised our stop to
$32.00.  In the meantime, enjoy the ride should GTK continue to
make new highs.

Picked on April 22nd @ $29.79
Change since picked +4.00
Stop Loss $32.00

 


************************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!

http://www.sungrp.com/tracking.asp?campaignid=2156
**************************************************************


**********
DISCLAIMER
**********

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