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PLAY > New Plays Sunday, March 18, 2001
New Split Plays   New Candidate Plays   New Momentum Plays
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Plays

None

New Candidate Plays

RDN - Radian Group Incorporated $61.00 (-2.97)

The Radian Group (RDN) provides private mortgage insurance and risk management services to residential mortgage lenders, commercial banks and savings institutions. The company's niche market in private mortgage insurance protects lenders from default on home buyers who make down payments of less than 20% of a home's purchase price. Focusing on this niche market has paid off tremendously for the company. RDN grew annual EPS by a staggering 68% last year. Wall Street has also taken notice of the company's performance, as all nine firms covering RDN presently hold a "Buy" rating on shares. Currently, RDN has 80.0 million shares authorized and 46.25 million shares issued, with the last recorded split having taken place on December 2nd, 1996 at $76. Although the BoD will need to authorize more shares before a 2:1 stock split can take place, we certainly feel this is a possibility. As for the stock, we feel RDN may be forming a bottom. The technical indicators certainly suggest this, with both the MACD and stochastic on the verge of bullish crossovers. In addition, the $60 level has held as support a staggering eight times over just the past month and a half. With that said, should shares trend higher in the upcoming week, we'll look for resistance to occur at the 50-dma of $61.78, followed by a stiffer challenge at $65. Support will come at the $60 mark. Look to time entries when RDN shares bounce off support or break above the 50-dma on volume of at least 225,000 shares traded by midday. We'll set our initial stop at $59, to limit our downside risk.


Picked on March 18th @ $61.00
Change since picked 0.00
Stop Loss @ $59.00

 
Interactive Chart Quote News First Call on RDN
 

New Momentum Plays

JKHY - Jack Henry and Associates Inc. $24.31 (-0.12)

Jack Henry & Associates, Inc. provides integrated computer systems to banks, credit unions, and other financial institutions. The stock hit an all-time high of $33.13 on December 28th. JKHY then sold off, falling to an intra-day low of $19.81 on January 23rd, one week after the January 17th earnings release. More recently, shares of JKHY have traded in the $23-$26 range following the execution of a 2:1 split on March 5th. The stock has also traced a double bottom formation with the 200-dma at $24.75 acting as the neckline. e believe that the post-split depression is wearing off and we are now looking for the stock to break out of its trading range. From a technical standpoint, JKHY has support at Friday's intra-day low of $24 with stronger support at $23.73, the 20-dma. Resistance is Friday's intra-day high of $25.38 and then the 100-dma at $26.27. Look for entry points on a bounce off of $24 or a move above $25.38 on volume greater than 250,000 shares by noon. We plan to set tight stops at $22.75 as downside protection.


Picked on March 18th @ $24.31
Change since picked +0.00
Stop Loss @ $22.75

 
Interactive Chart Quote News First Call on JKHY
 

New Plays Index

 


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