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PLAY > New Plays Monday, April 02, 2001
New Split Plays   New Candidate Plays   New Momentum Plays
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Plays

MBI - MBIA Incorporated $81.70 +1.02 (+1.02)

As traders continue to dodge bullets in the slow grinding technology sector, opportunities appear to be rising elsewhere. One such opportunity is MBIA Incorporated (MBI), which offers insurance for new issues of municipal bonds, including bonds held in unit investment trusts and mutual funds. Growth prospects for the company are inherently tied to interest rates, which currently make the stock timely because of the recent rate reductions by the Federal Reserve. What's more compelling to us though is the fact that the company announced a 3:2 stock split back on 3/15/01, which will be payable to shareholders of record on 4/20/01. We're anticipating a possible split run into the payable date. Looking at the chart, MBIA shares, after falling from an intraday high of $83.80, managed to hold above the previous high of $81.10. Today's advance came on volume of 1,121,900 shares, nearly 100 percent above its three-month ADV. This is an excellent indication that momentum players added positions on the breakout. The short-term technical readings also points to higher levels, with a bullish crossover in the MACD and the OBV planted firmly near year highs. As far as entries in MBI are concerned, a move above today's high of $83.80 could prove to be an excellent entry point. A bounce off support offered by the 3/08/01 high of $81.10 may also prove to be a good entry level. We'll set stops near the 40- dma at $76.50 to limit our downside risk.


Picked on April 2nd@ $81.70
Change since picked 0.00
Stop Loss @ $76.50
 
Interactive Chart Quote News First Call on MBI
 

New Candidate Plays

none

New Momentum Plays

None

New Plays Index

 


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