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PLAY > New Plays Sunday, May 13, 2001
New Split Plays   New Candidate Plays   New Momentum Plays
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Plays

KNGT - Knight Transportation $27.54 (+0.53)

Knight Transportation, which is in the short-to-medium haul trucking business, was able to establish a new 52-week high last week. The stock has been ensconced in a well-formed up trend since late March when KNGT muscled over its 50-dma. The rally could continue on the heels of Thursday's 3:2 split announcement. The split will be paid on June 1st. KNGT could also be a beneficiary of the Fed's aggressive rate cutting. Transportation company profits are strongly influenced by economic cycles. It is becoming increasingly evident that we will be able to avoid a recession and that fact alone should result in growing profits for KNGT, as their clients ramp up operations. Technically speaking, KNGT is at a crossroads. The stock did find resistance at $27.97 and could find more resistance at the all time high of $28.50, which was established in December 1998. The MACD is threatening to actually issue a sell signal. Therefore, one might want to hold off from entering a position tomorrow if KNGT opens to the downside. That said, an early move to $28.00 or higher, accompanied by midday volume over 35,000 shares might provide momentum investors with an enticing entry opportunity. Traders might want to avoid chasing KNGT if the stock gaps up to $29.00 or higher on the open because a potential retracement move. One technical tool that is indicating that KNGT could continue its rally is the OBV, which is very strong.


Picked on May 13th @ $27.54
Change since picked +0.00
Stop Loss @ $25.75
 
Interactive Chart Quote News First Call on KNGT
 

New Candidate Plays

OMG - OM Group, Inc. $57.96 (+1.35)

OM Group, Inc., is a vertically integrated producer of value-added metal-based specialty chemicals. The Company supplies more than 425 different products to 1,500 customers worldwide. Shares of OMG were stuck in the $48-$55 range since the beginning of the year. The stock started to move higher on heavy volume following its earnings release on April 24th. On Wednesday, OMG traded to an all-time high of $58.45 and we believe that the stock could continue to hit new highs. We are also looking for a stock split with the July earnings release. The stock is currently trading above its historic split range and the company has enough shares for a split with 60 million shares authorized and 24 million shares issued. From a technical standpoint, OMG has support at Thursday's intra-day high of $57.40 with additional support at $56.58, the 5-dma. Resistance is the all-time high of $58.45 and then the $60 mark. Traders may consider opening new positions on a bounce off of $57.40 or a breakout above $58.45 on volume greater than 60,000 shares by noon. We plan to set stops at $53.88 to limit potential losses.


Picked on May 13th @ $57.96
Change since picked +0.00
Stop Loss @ $53.88
 
Interactive Chart Quote News First Call on OMG
 

New Momentum Plays

None

New Plays Index

 


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