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PLAY >New Updates Sunday, May 20, 2001
New Split Updates   New Candidate Updates   New Momentum Updates
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Updates

APPB - Applebee's International $44.10 (+1.21)

Applebee's posted another winning session on Friday, closing up $0.05 to $44.10, which happens to be another all-time closing high. Unfortunately, there wasn't much conviction behind Friday's advance (which is why it was only a nickel) because only 194,700 shares were exchanged, which was less than half the three-month average daily volume of 401,200. Despite the lack of interest on Friday, we think APPB could continue to build on its three-month long advance into its split-payable date on June 12th. To that end, ABBP posted a new all-time closing high today of $44.05. At this point, APPB has no immediate overhead resistance (though the psychologically-significant $45.00 level could present a minor obstacle). As for support, APPB has its 10-dma at $43.28 followed by the 20-dma at $42.63. Traders considering a position in APPB should look for a move through its all-time high of $44.35 or a bounce off the 10-dma on volume of 150,000 shares traded by mid-day. One caveat for conservative traders, though, APPB's stochastic is showing it to be overbought, so this stock could carry a little more risk than usual.


Picked on May 15th @ $43.20
Change since picked +0.90
Stop Loss @ $40.50
 
Interactive Chart Quote News First Call on APPB
 


PKI - PerkinElmer $72.82 (+8.58)

PKI opened trading on Friday right were it closed on Thursday and then proceeded to head higher into Friday's close. PKI strengthened its line of digital imaging equipment on Friday by announcing the acquisition of Sonoran Scanners, which is a privately held company based in Tucson, Arizona. Sonoran's proprietary Laser Direct Imaging and Computer-to-Plate technologies will add to PKI's offerings. PKI appears to breaking out of a long base that is supported by the 20-DMA at $64.56 on the low side and was bounded by resistance just below $68.00. Now that PKI has moved out of this base, the top of the base should now offer support. This current rally may find some light resistance at $75.72. That said, the next tempting entry point could come Monday if PKI can trade through Friday's high of $73.19 with midday volume of over 300,000 shares. The MACD avoided issuing a sell signal last week and is now positive, suggesting that the rally could continue. The Money Flow is also quite strong and is additionally encouraging for bulls. Perhaps this rally can continue right up to PKI's June 1st 2:1 split payable date.


Picked on May 17th @ $70.12
Change since picked +2.70
Stop Loss @ $67.00
 
Interactive Chart Quote News First Call on PKI
 


SDS - SunGard Data Systems $60.91 (+4.44)

SunGard eased another $0.09 on Friday after dropping $1.00 on Thursday. Unfortunately, we added SDS to our Current Play list on Wednesday evening, so we are in the red on this stock. Fortunately, though, only 613,400 shares were traded on Friday, roughly 300,000 less than the three-month average daily volume, so there wasn't a mad rush to the exits. Despite stumbling out of the gate, we still think SDS could make a strong run into its split-payable date on June 18th. To that end, its MACD remains in a strong up trend while its Stochastic isn't showing its stock to be overbought. With that said, it's possible that SDS might take the next few sessions to consolidate around $60, so there may be another day or two of selling pressure. With that said, traders considering a position in SDS should look for a move through Friday's intra-day high of $61.25 or a bounce off $60 on 400,000 shares traded by midday.


Picked on May 16th @ $62.00
Change since picked -1.09
Stop Loss @ $58.40
 
Interactive Chart Quote News First Call on SDS
 

New Candidate Updates

ASD - American Standard Companies, Inc. $65.45 (+2.18)

American Standard Companies, Inc. took a small step backward on Friday. Shares of ASD hit an intra-day high of $66.50 but the stock could not get into record territory. Instead, ASD made a full reversal to end the session at $65.45 on volume of 447,000 shares. The stock is definitely hitting some resistance at $66.50 following its breakout and ASD may be losing its momentum. On the positive side, the stock remains in a firm upward trend and daily volume has picked up over the last two days. For now, support has moved up to $65 with stronger support at $63.74, the 5-dma. Resistance is holding steady at Friday's intra-day high of $66.50 and then $68. Traders may consider opening new positions on a bounce off of $65 or a breakout above $66.50 on volume of at least 250,000 shares by noon. We are leaving our stops at $63.50 to lock in gains.


Picked on May 6th @ $62.50
Change since picked +2.95
Stop Loss @ $63.50
 
Interactive Chart Quote News First Call on ASD
 


AYE - Allegheny Energy, Inc. $53.80 (+0.75)

Allegheny Energy, Inc. is regaining its momentum after testing support at the 5-dma. On Friday, shares of AYE traded to an intra-day high of $53.95 before pulling back to a close of $53.80 on volume of 279,000 shares. The stock has been consolidating in the $53-$54 range over the last week and volume has been trending lower. AYE may need a positive volume surge to drive the stock out of its trading range. Going forward, support remains at Thursday's intra-day low of $53.24 with stronger support at $53.05, the May 11th intra-day high. Resistance is the all-time high of $54.10 and then $55. A bounce off of $53.24 or a breakout above $54.10 on midday volume greater than 225,000 shares may be possible entry points. Our stops are holding steady at $53.


Picked on April 29th @ $50.60
Change since picked +3.20
Stop Loss @ $53.00
 
Interactive Chart Quote News First Call on AYE
 


BMET - Biomet Inc. $44.27 (+3.67)

Biomet, Inc. has been trending higher over the past six sessions. On Friday, shares of BMET hit an intra-day low of $43.37 before bouncing back to close at $44.27 on light volume of 1.2 million shares. This left a hammer formation on BMET's chart, which is generally a bullish sign. BMET is holding its upward trend and daily volume has increased over the last week, so the stock may continue to hit new highs. However, BMET has gained more than 10% in the last six sessions so we may see a round of selling in the near future. In the meantime, support is Thursday's intra-day low of $43.55 with stronger support at $43.37, the 5-dma. Resistance is currently at Thursday's intra-day high of $44.72 and then $46. Look for a bounce off of $43.55 or a breakout above $44.72 on midday volume of at least 900,000 shares before starting new plays. We are keeping our stops at $43 to protect gains.


Picked on May 3rd @ $42.16
Change since picked +2.11
Stop Loss @ $43.00
 
Interactive Chart Quote News First Call on BMET
 


HRB - H & R Block Inc. $58.46 (+2.41)

H & R Block looks like its taking permanent residency on the Current Play list. On Friday, it added another quarter to its value to close at $58.46, marking another 52-week closing high. HRB was helped along on Friday by remarks made by Oakmark Fund manager Bill Nygren. In a nutshell, Nygren said that HRB will keep bumping along at a double-digit pace. At this point, though, we'd be leery of taking new positions, if only because volume is drying up. In fact, only 354,000 shares were exchanged on Thursday followed by 277,200 on Friday. With momentum waning, we'd be conservative about entering new positions and liberal about tightening stops, which, by the way, we adjusted again to $57.50. Technically, HRB still looks strong; both its MACD and On-Balance Volume are trending higher. However, HRB could run into serious resistance at its July 1999 high of $59.00. So, traders considering a position in HRB should look for strong volume, 250,000 shares or more traded by noon EDT, on a move through resistance at $59.00 or a bounce off Wednesday's intra-day high of $58.01 before placing their trades.


Picked on April 18th @ $52.85
Change since picked +5.61
Stop Loss @ $57.50
 
Interactive Chart Quote News First Call on HRB
 


ITG - Investment Technology Group $53.89 (+2.98)

On Friday, Jeffries Group analyst Charlotte Chamberlain said that ITG stands to benefit from the recent Instinet (INET) IPO, if only because it's a better company. According to Chamberlain, ITG has booked a 32 percent annual growth rate in pre-tax income over the past four years, compared with 9 percent for Instinet. We guess she is suggesting that ITG should be afforded a higher value, which we agree. Unfortunately, though, the market doesn't, as ITG lost $0.71 to close at $53.89. Despite the kudos from Chamberlain, we think ITG might take a breather after this week's strong run. In fact, ITG is now bumping up against resistance at $55.00, so it's possible that it might want to consolidate between $52.50 and $55.00 before attempting another leg up. At this point, ITG has support provided by its 10-dma at $52.16 followed by additional support at its last consolidation base at $50. Traders considering a position in ITG should look for a move through resistance at $55.00 or a bounce off Wednesday's intra-day low of $52.50 on volume of 100,000 shares traded by noon EDT before placing their trades.


Picked on May 16th @ $54.52
Change since picked -0.63
Stop Loss @ $51.40      
 
Interactive Chart Quote News First Call on ITG
 


TTC - Toro Company $45.85 (-0.14)

After two days of increasing volatility for TTC, the stock returned to its quiet ways on Friday as it lost ground on low volume of 24,500 shares. It is somewhat surprising that there is not more interest in the shares of this lawn and gardening equipment company as we head into the summer months. TTC possesses some solid fundamentals and trades with a relatively attractive P/E of only 13.10. TTC has found resistance at its 52-week high of $48.00, which was established last week. After momentum traders failed to drive the stock higher following the move into new high ground, the stock has now pulled back and is looking to establish a support level. TTC might find support at $45.09, which was the low print of the stock's current base. A bounce off this level may provide a good entry point and may be the start of the stock's possible attempt to move higher into its earnings report on Wednesday. Although, given our rule of not holding stocks through earnings, we will drop TTC no later than Tuesday's closing print. Our stop at $44.88 might be in jeopardy, however, because the MACD rolled over and offered a sell signal on Friday. On the plus side, the RSI has pulled back to a level that has resulted in previous rallies.


Picked April 29th @ $46.25
Change since picked -0.40
Stop Loss @ $44.88
 
Interactive Chart Quote News First Call on TTC
 

New Momentum Updates

DCI - Donaldson Company $30.77 (+2.36)

DCI is starting to make a nice little move ahead of its earnings release Tuesday afternoon. With only one day left before we exit this position (Monday at the close), this play is a bit aggressive and may not be for everyone. That said, DCI did manage to establish a new high on Friday at $30.85. Therefore, there is very little overhead resistance and DCI could continue its advance if it can trade above $30.85. A good trade opportunity may present itself if DCI trades above $30.85 in the first hour of trading accompanied by volume exceeding 25,000 shares. A gap up to $32.00 or higher may result in a quick pullback that may offer patient traders a better entry price. The OBV, Money Flow and MACD are all positive and suggest that the DCI rally could continue. We would be cautious about entering any new positions if DCI drops below the support offered by Friday's low of $29.72.


Picked on May 17th @ $30.04
Change since picked +0.73
Stop Loss @ $28.50
 
Interactive Chart Quote News First Call on DCI
 


GTK - GTECH Holdings Corp $36.61 (+1.25)

A nice surge into the close on the NYSE enabled GTK to come very close to establishing a new high. The current 52-week high of $36.80, which was established on May 10th, is providing resistance. GTK might enjoy a nice rally if the stock can trade above $36.80 and accomplish this move with midday volume exceeding 150,000 shares. We have decided to raise our stop just in case the above mentioned resistance proves too tough for GTK. Our new stop is at $35.50, which is just below the nice support offered by the rising 10-DMA. Although the MACD is still positive, it is starting to level off from its steep ascent that began back in early April. The OBV is still quite strong and is suggesting that money could continue to flow into the stock. Our main concern is the RSI, which, incredibly, has stayed at levels suggesting an overbought condition for more than two weeks.


Picked on April 20th @ $29.79
Change since picked +6.82
Stop Loss $35.50
 
Interactive Chart Quote News First Call on GTK
 


LEA - Lear Corp. $37.60 (+1.95)

Lear is starting to convince us that it's sometimes better to be the tortoise rather than the hare. In other words, LEA just keeps plodding along. On Friday, it added $0.30 to its share value to close at $37.60. What's more, LEA is starting to put out feelers to challenge its 52-week high of $38.50. To that end, it traded as high as $38.10 on Friday after trading as high as $28.25 on Thursday. LEA's mini-rally has put it well-above its 10-dma at $36.47, which had been tough resistance. With that out of the way, the next level of resistance will be the 52-week high. As for support, LEA has its 20-dma at $36.35 followed by its recent consolidation base 35.00. At this point, we think LEA may be in a position to challenge resistance based on the strength of its MACD and On-Balance Volume. With that said, traders considering a position in LEA should look for strong volume, 250,000 shares or more traded by noon EDT, on a move through today's intra-day high of $38.10 or a bounce off the 20-dma before placing their trades.


Picked on April 24th @ $36.20
Change since picked +1.40
Stop Loss @ $35.00
 
Interactive Chart Quote News First Call on LEA
 

Play Updates Index

 


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