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PLAY > New Plays Sunday, March 25, 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

PFGC - Performance Food Group $49.50 (+2.44)

PFGC, a major supplier of food products to restaurants, hotels, schools and hospitals, could be on the verge of another price breakout. For most of this year, PFGC has seen quick spikes in its price following a period of consolidation around its 50-DMA. Currently, this moving average is slightly below $48.00 and PFGC has been consolidating right around this price for two weeks. By closing right on its high for the week on Friday, PFGC may be ready for another spike up this week. New positions could be considered if PFGC opens higher on Monday. If you see a gap up, you may want to wait for a little pullback in the first few hours of trading before jumping on board. In addition to PFGC's strong chart, we believe that the stock is a split candidate, now that the stock has climbed back above $45.00. A move higher this week would likely be confirmed by a MACD that turns positive. Money Flow is also quite strong. A quick advance would have plenty of upside potential before the RSI issues an overbought signal.


Picked on March 25th @ $49.50
Change since picked +0.00
Stop Loss @ $46.00
 
Interactive Chart Quote News First Call on PFGC
 


RCII - Rent-A-Center Incorporated $45.13 (+1.31)

As the market continues to deal with the bloodbath in technology stocks, money continues to flow into defensive sectors that have kept up steady earnings. One such company is Rent-A-Center (RCII), which has notched a 31% increase in annual earning over each of the past five years. As a result, this rent to own corporation has levitated an amazing 200% from its low of March 2000. This move has created a strong uptrend on the chart, and when combined with the solid fundamentals of the company, has put the stock in a great position for further gains. What's more, we like RCII as a split candidate play. The company currently has 24.69 million shares outstanding with 50 million shares authorized, enough for a 2:1 stock split. Getting back to the chart, RCII shares retreated from a mid-week rally to all time highs ($47.44) and finished lower by 1.22 points or 2.63% on Friday. Volume of 521,900 shares accompanied Friday's decent, which came in slightly more than the 3-month average. We are encouraged, however, by the fact that the stock managed to bounce from support at the $45 mark and finish the day above this level. In addition, On Balance Volume and Money Flow remain strong and provide us with further evidence that RCII remains poised for higher highs. So, in the upcoming week we'll look for another new high or a quick bounce off support at $45.00 when considering a position in the stock. Volume will be a key component for further gains, so we'll look for the stock to trade at least 150,000 shares by mid-day. Past breakout volume from RCII has exceeded 500,000 shares on a daily basis and we should expect no less here. We'll keep stops at $42.25 for now.


Picked on March 25th @ $45.13
Change since picked 0.00
Stop Loss @ $42.25
 
Interactive Chart Quote News First Call on RCII
 

New Momentum Plays

THQI - THQ Incorporated $34.50 (+1.94)

THQI is in the business of fun and games, which is apropos considering investors have been having a ball riding its stock to new yearly highs. THQ Incorporated provides interactive video games for the Sony PlayStation, Sega Dreamcast, Nintendo 64, Nintendo Game Boy and personal computers. The stock has been trending higher over the past 10 months after hitting a low of $7.63 on May 25th. On Friday, shares of THQI traded to a 52-week high of $34.88, representing a 357% gain from the low to the high. The stock price reflects an improved fundamental outlook for THQI based on the success of the new Sony PlayStation platform. We believe that THQI could move even higher as the new PlayStation gains acceptance and production of the consoles from Sony increases to meet demand. From a technical standpoint, THQI has support at Friday's intra-day low of $32.88 with additional support at $ 33.21, the 5-dma. Resistance is Friday's intra-day high of $34.88 and then the 12/7/99 intra-day low of $36.38. We are additionally encouraged by the fact that THQI's MACD just turned positive and that the OBV is at a year high. A bounce off of $34.13 or a breakout above $34.88 on midday volume greater than 200,000 shares may be possible entry points. We plan to set stops at $31.50 to limit potential losses.


Picked on March 25th @ $34.50
Change since picked +0.00
Stop Loss @ $31.50
 
Interactive Chart Quote News First Call on THQI
 

New Plays Index

 


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