Commentary
Sector Watch


Play of the Day
Current Plays
Watch List
New Plays
Play Updates
Drops


Announcements
Current Split Catalog
New Candidates
Candidates Index
Expected Splits
Splits 101


Play Results
Split Predictions


Ask the Trader
Trading 101
Bookstore
Glossary
Dow Charts
FAQ


Splits
SEC Filings
Coming Economic Events
BoD Meetings
Earnings


Chat Room
Message Boards


Email Newsletter
Author Search
Advertise With Us
Change Password
Contact Us

Email Version, Section 2, Sunday 06/03/2001
The SplitTrader.com                      Sunday 06/10/01  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/3446_2.asp
=================================================================

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

Plays - New - Updates - Drops
Monday's Candidate Play-of-the-Day - LOW
Weekly Play Results (06/04 - 06/08)

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


*************************ADVERTISEMENT*********************
Why put all your risk into one stock when you can play the
index instead?

Learn how to invest in the OEX, QQQ, and SPX.  Get intraday
market updates, plays, education and daily commentaries by
those who know.

Sign up for a two week free trial and see for yourself at
IndexSkybox.com:
http://www.sungrp.com/tracking.asp?campaignid=2276
************************************************************


=====================
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 06/10/01
============================

None


NEW SPLIT CANDIDATE PLAYS 06/10/01
==================================

None


NEW MOMENTUM PLAYS 06/10/01
============================

BEBE - BEBE Stores, Inc. $30.80 (+4.64)

BEBE is a purveyor of contemporary women's fashions.  They market
their clothing towards the younger crowd and carry everything
from suits to handbags.  Their operating margins of 14.3% are
impressive for a clothier and their 21.5% return on equity tells
us that the company is run efficiently and effectively.  In
addition, they just reported May sales that were up 35% over last
May's sales.  If BEBE is doing this well under the current
economic environment, just think what it can do in good times.
It is a well-known fact that when the economy is coming out of a
recession, people tend to spend money on clothes first.  Turning
to BEBE's chart, we can see that it just emerged from an inverse
head and shoulders continuation pattern.  The neckline was
defined by the $29-level.  The initial breakout occurred on
Tuesday and was accompanied by good volume of 425,000 shares.
This tells us that the rally has buying support.  Another good
sign was that the MACD issued a buy signal on Tuesday as well.
Traders looking to get into our retail clothing play could look
to do so on a bounce off of $29 or on a break above Friday's high
of $31.47.  In either case volume should be on track to do at
least 300,000 shares for the day.

Picked On June 10th @ $30.80
Change Since Picked 0.00
Stop Loss @ $ $27.00

 


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


SPLIT RUN PLAY UPDATES 06/10/01
===============================

LOW - Lowes Companies $73.57 (+4.27)

Lowes closed the week out with a bullish hammer formation that
has us thinking that next week's trading could be kind to our
retail play.  In addition, the S&P Retail Index (RLX.X) closed up
10 points on Friday to 906.76, keeping the index over support of
900.  Turning to LOW's chart, we see that volume during LOW's
Friday pullback was very light, with only 800,000 shares changing
hands.  This tells us that sellers had very little conviction.
Add to this is the fact that LOW's MACD just went positive and
you have the recipe for another leg higher.  However, traders
wishing to enter LOW should wait until the stock can break above
resistance at $74.00 before committing any capital to this play.
For reference, support should come into LOW around $72.50.

Picked on June 7th @ $74.00
Change Since Picked -0.42
Stop Loss @ $68.00

 



SPLIT CANDIDATE PLAY UPDATES 06/10/01
=====================================

BJ - BJ's Wholesale Club $51.24 (+2.93)

On Thursday we spoke of a pullback buying opportunity in BJ and
whaddaya know, it came to fruition on Friday.  We warned of a
pullback to $50 and recommended that traders pick up the stock on
a bounce off this support level.  On Friday, BJ opened at $50 and
headed higher throughout the rest of the session.  While BJ still
has resistance at $52.00 to deal with, it is now looking
technically stronger than on Thursday.  That said, traders
considering opening new positions in BJ should now wait until the
stock breaches resistance at $52 before pulling the trigger.

Picked on May 27th @ $48.31
Change Since Picked +2.93
Stop Loss @ $48.75

 

===
CEFT - Concord EFS $52.61 (+2.01)

CEFT appears as if it has officially launched itself into rally
mode.  Even though the NASDAQ ended down almost 50 points on
Friday, our play managed to close up by $0.28.  However, the
stock did encounter resistance at $53, so we will keep an eye on
this level going forward into next week.  Volume was light on
Friday's advance, so a retest of the $51.50 level is not out of
the question in the near future.  Volume becomes important as the
stock advances higher.  We have not seen a 5 million plus volume
day since the first week of May.  Traders thinking about opening
a new position in CEFT could look to do so on a bounce off $51.50
or a breach of $53.00.  Volume on either of these moves should be
close to 2 million by midday.

Picked on May 27th @ $50.60
Change Since Picked +2.01
Stop Loss @ $46.00

 

===
HRB - H&R Block $63.70 (+3.98)

It looks like the $64 level is setting itself up to become
serious resistance for our tax service play.  The stock has tried
breaking through $64 four days in a row, but has been turned back
on each occasion.  However, we are still encouraged that HRB can
continue higher due to the fact that the only above average
volume days this week came as the stock was advancing.  Traders
wishing to open a new position in HRB should wait until HRB can
close above $64 on volume of at least 600,000 shares for the day.
We are moving our stop on this long time play up to $62 to
protect our profits.

Picked on April 18th @ $52.85
Change since picked +10.05
Stop Loss @ $62.00

 

===
MTG - MGIC Investment $71.40 (+4.56)

MTG continues to sell off on light volume.  Friday say the stock
lose $0.36 on volume of only 310,000 shares.  The good news is
that the stock has been putting in higher lows, so the up trend
remains intact.  In addition, even though MTG lost ground on
Friday, it still closed within the upper half of its daily range,
indicating that there were some buyers that emerged.  We will be
watching for support at $70.50 to hold up in the near term and
for the MACD to remain positive.  If you are thinking about
adding MTG to your portfolio, look to go in with a half position
on a break above $72.  You can add to the position if the stock
can breach $74 on good volume of at least 750,000 shares for the
day.

Picked on May 31st @ $70.37
Change Since Picked +1.03
Stop Loss @ $66.75

 

===
SRDX - SurModics, Inc. $57.75 (+4.75)

Interestingly enough, SRDX made Investors Business Daily's Friday
list of stocks with the highest combined earnings per share
rating and highest relative price strength.  They must have read
the Splittrader new play list this week!  SRDX has indeed been
strong this year.  In fact, on Friday, shares of SRDX looked as
if they were going to head for a retest of support at $54.25
before they turned around and headed higher by $1.45 to close at
$57.75.  We still like how the stock is acting and just hope that
next week bring a bit more volume into our chemical play.  That
said traders should look for a break above $59 on volume of at
least 200,000 shares before initiating a new play in SRDX.

Picked on June 5th @ $58.00
Change Since Picked -0.25
Stop Loss @ $54.00

 



MOMENTUM PLAY UPDATES 06/10/01
===============================

WMI - Waste Management $28.44 (+0.64)

WMI had a lazy day on Friday.  The stock traded only 999,000
shares and was stuck in a tight intraday range of just over
$1.00.  The good news is that buyers showed up at the $28.25
level three times during the session to drive the stock higher.
Conversely, intraday resistance came in at $28.45.  We won't take
too much from Friday's trade, however, due to the NYSE outage and
the light volume.  But we will note that WMI has yet to sink back
into its base.  This tells us that buyers are still supporting
the stock.  Going forward, traders might want to consider opening
a position in WMI if the stock can break up through resistance at
$29 on volume of at least 2.5 million shares.
Picked on June 6th @ $28.51
Change since picked -0.07
Stop Loss @ $26.90

 



=====
DROPS
=====


SPLIT RUN PLAY DROPS 06/10/01
=============================

None



SPLIT CANDIDATE PLAY DROPS 06/10/01
===================================

CIMA - Cima Labs Inc. $80.01 (+5.21)

We knew this stock was volatile when we got into it.  That is
precisely why we tightened our stop up to $80 to lock in profits
when it looked like the stock could be vulnerable for a pullback.
As it turned out, the stock did decide to collapse on Friday,
hitting our stop at $80.

Picked on May 29th @ $76.95
Profit/Loss = +3.05 (+4%) (Stopped out Friday @ $80.00)
Best Profit = +8.80 (+11%)

 



MOMENTUM PLAY DROPS 06/10/01
=============================

None


============================
Play of the Day (For Monday)
Sunday, June 10, 2001
============================

LOW - Lowes Companies $73.57 (+4.27)

Sunday's Comment:

Lowes closed the week out with a bullish hammer formation
that has us thinking that next week's trading could be kind
to our retail play.  In addition, the S&P Retail Index
(RLX.X) closed up 10 points on Friday to 906.76, keeping
the index over support of 900.  Turning to LOW's chart, we
see that volume during LOW's Friday pullback was very
light, with only 800,000 shares changing hands.  This tells
us that sellers had very little conviction.  Add to this is
the fact that LOW's MACD just went positive and you have
the recipe for another leg higher.  However, traders
wishing to enter LOW should wait until the stock can break
above resistance at $74.00 before committing any capital to
this play.  For reference, support should come into LOW
around $72.50.

Picked on June 7th @ $74.00
Change Since Picked -0.42
Stop Loss @ $68.00

 


================================================================
Weekly Play Results (06/04 - 06/08)
================================================================

       Beginning  Ending
Symbol  Price     Price     Gain/Loss   % Change

ASD     $66.77    $66.00      -$0.77      -1.15%
BJ      $49.15    $51.24       $2.09       4.25%
BKH     $55.96    $52.25      -$3.71      -6.63%
BUCA    $22.40    $21.30      -$1.10      -4.91%
CEFT    $50.50    $52.61       $2.11       4.18%
CIMA    $74.75    $80.00       $5.25       7.02%
GTK     $37.25    $37.40       $0.15       0.40%
HRB     $60.96    $63.70       $2.74       4.49%
KRI     $53.75    $53.50      -$0.25      -0.47%
LOW     $74.00    $73.57      -$0.43      -0.58%
MTG     $68.63    $71.40       $2.77       4.04%
SRDX    $58.00    $57.75      -$0.25      -0.43%
WMI     $28.51    $28.44      -$0.07      -0.25%


************************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=2240
**************************************************************


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

Please read our disclaimer at:
http://www.splittrader.com/site_info/disclaimer.asp

**************************************************************
ADVERTISING INFORMATION

For more information on advertising in the SplitTrader.com
Newsletter or any Premier Investor Network newsletter, please
contact advertising@splittrader.com

================================================================
Contact Us!
Send questions or comments to:  stcomments@splittrader.com

To stop receiving this SplitTrader Update,
send email to:  removeST@splittrader.com
=================================================================

 


Copyright 2001 SplitTrader.com

Do not duplicate or redistribute in any form.
Privacy Statement   Disclaimer   Terms Of Service