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PLAY > New Plays Thursday, March 15, 2001
New Split Plays   New Candidate Plays   New Momentum Plays
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Plays

UCBH - UCBH Holdings Incorporated $52.63 +0.81 (-3.13)

California bank holding company UCBH Holdings (UCBH) specializes in serving the Asian community in its primary markets, which include San Francisco, Sacramento and the Los Angeles. This niche has paid off tremendously for the bank, which has reported 10 consecutive quarters of double-digit earnings growth. Wall Street certainly has been impressed with the company's track record, as all seven firms covering UCBH place its stock in the "Buy" column. More compelling, the company announced a 2:1 stock split today, which will be payable on April 10th to shareholders of record on March 31st. We're anticipating this announcement to attract more buyers by month's end. Looking at the chart, UCBH shares signaled a near-term bottom. Yesterday, the stock produced a sharp bounce off the half-century mark ($50), which was followed by a gain of 1.57% in today's trading. The short-term technical readings also point to a turn around, with the stochastic planted firmly in oversold territory and the OBV trending higher. As for possible entry points, a move above the converging 10 and 20-dma's of $54.58 and $54.56 may provide a profitable entry opportunity. We'll set stops at $49 to limit our downside risk.

Picked on March 15th @ $52.63
Change since picked 0.00
Stop Loss @ $49.00
Interactive Chart Quote News First Call on UCBH

New Candidate Plays

UHS - Universal Health Services $83.50 +1.38 -0.24

UHS is a major hospital owner and operator that is best known for its acute care and behavioral health centers. UHS peaked at $112.93 at the end of December. Although the stock has been a somewhat lackluster performer since that time, we believe now is an excellent time to try and snag some profits for two reasons. First, UHS appears to have successfully tested its 200-DMA of $80.00 this week. This event is technically significant and many value investors (and there are a lot of them these days) look for these type of bounces before entering a position. Second, UHS is a viable split candidate because the stock is trading at prices well above those when the stock last split. The most recent split occurred during the spring of 1996 when the stock was trading at $56.38. The OBV and Money Flow are both starting to turn back positive, which is another good sign that UHS has found support and is ready to go higher. The RSI is starting to move back up from a mild oversold indication. This fact gives UHS a lot of room to rally before an overbought condition is threatened. Some traders may be interested in picking up the stock if UHS can trade above $83.75 with midday volume near 150,000 shares.

Picked on March 15th @ $83.50
Change since picked +0.00
Stop Loss @ $80.00
Interactive Chart Quote News First Call on UHS

New Momentum Plays

MAT - Mattel, Inc. $18.55 +0.45 (+0.09)

Shares of MAT hit an all-time high of $46.56 on 3/16/98. The stock then sold off for two years, hitting a low of $8.93 on 3/10/00. Since then, MAT has made significant changes. The company has hired a new CEO and absorbed the cost of its poor acquisition of The Learning Company. In the past year, Mattel's net income from continuing operations (up 63% on the year) and the stock price (up 90% over the past 6 months) reflect the changes within the company. MAT traded to a 52-week high of $18.84 last week, and on Thursday, the stock closed at its intra-day high of $18.55. We believe that MAT could continue to hit a string of new 52-week highs due to its strong momentum and improving fundamentals. From a technical standpoint, support is the 5-dma at $18.34 with stronger support at $17.78, the 10-dma. Resistance is the 52-week high of $18.84 and then possibly $19.50 or $20. Traders may consider entry points on a bounce off of $18.34 or a breakout above $18.84 on volume greater than 1.3 million shares by noon. We are placing stops at $17 as downside protection.

Picked on March 15th @ $18.55
Change since picked +0.00
Stop Loss @ $17.00
Interactive Chart Quote News First Call on MAT

New Plays Index


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