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PLAY > New Plays Thursday, March 29, 2001
New Split Plays   New Candidate Plays   New Momentum Plays
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Plays

SBUX - Starbucks $41.94 +0.75 (+1.06)

This ubiquitous coffee shop leader is starting to recover nicely after Mother Nature attacked its Seattle headquarters with an earthquake. The shares had been steadily dropping from the 52-week high of $51.31 for the past seven weeks. SBUX appears to have found nice double bottom support at $38.50 and could start trending higher. Now that a bottom has apparently been found, SBUX can now start its split run in earnest. The company announced a 2:1 split on March 20th and intends to make the split payable on April 27th. Another technical sign that a bottom has been reached is the fact that SBUX managed to trade back above its 200-DMA of $42.25. However, SBUX did drop back below this important moving average by the close. Still, the MACD appears to be on the verge of moving higher and may eventually trigger a buy signal. We also like the way the RSI is moving higher after signaling an oversold condition earlier this week. Therefore, new positions are suggested only if SBUX moves back above $42.25 tomorrow.


Picked on March 29th @ $41.94
Change since picked +0.00
Stop Loss $38.50
 
Interactive Chart Quote News First Call on SBUX
 

New Candidate Plays

MKC - McCormick & Company $41.43 +0.57 (+1.75)

McCormick & Company, Inc. provides a wide variety of spices, herbs, seasonings, and other specialty food products to the food industry. The company also manufactures plastic bottles and tubes for the food and personal care industries. MKC broke out of its three-year $26-$36 trading range in late November. The stock then spent two months consolidating in the $34-$38 range. On February 12th, shares of MKC broke out on heavy volume and continued to move higher into the earnings release on March 19th. The stock sold off on profit taking just prior to, and just after, the earnings release. We believe that MKC has shaken off its post-earnings depression and could be ready to break out to new highs. We are also looking for a possible split with its next BoD meeting or with the June earnings release. The company has enough shares for a split with 160 million shares authorized and 60.4 million shares issued. MKC announced its last three splits when the stock was trading in the $35-$45 range, so it is currently trading within historic split range. Going forward, support is the 5-dma at $40.80 with stronger support at $40.35, the 20-dma. Resistance is the all-time high of $41.58 and then possibly $43. Traders may consider entry points on a bounce off of $40.80 or a breakout above $41.58 on volume of greater than 65,000 shares by noon. We plan to set stops at $38.75 to limit potential losses.


Picked on March 29th @ $41.43
Change since picked +0.00
Stop Loss @ $38.75
 
Interactive Chart Quote News First Call on MKC
 

New Momentum Plays

None

New Plays Index

 


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