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PLAY >New Updates Sunday, May 27, 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 $43.72 (-0.38)

Investors continue to snack on the restaurant stocks even as the NASDAQ and S&P 500 move lower. On Friday, shares of APPB gapped higher at the open and moved north for most of the session. It wasn't until the last five minutes of trading that we saw any real selling pressure come in, and this was probably just a result of the day traders going flat for the long weekend. Looking at the bigger picture, APPB has become a little extended, and may churn around the $60 level next week. We will make sure that the 20-dma at $43.30 continues offering support and that the MACD does not continue to roll negative. In addition, any new positions should not be considered unless APPB can close above $60 on volume of at least 450,000 shares to ensure that buyers are still supporting the stock.


Picked on May 15th @ $43.20
Change since picked +0.52
Stop Loss @ $40.50
 
Interactive Chart Quote News First Call on APPB
 


PKI - PerkinElmer $72.39 (-0.43)

PKI is one technology stock that managed to finish Friday's general profit taking session with a gain. PKI did find support in the early going at $71.00. There is additional support at the 10-DMA of $70.25. If this second level of support holds this week, PKI could stage an advance into its June 1st 2:1 split date. PKI's recovery from the April lows could be extended if the stock can trade through last week's resistance of $76.25. Traders might be particularly interested in buying PKI if it can trade above $76.25, accompanied by midday volume over 300,000 shares. If we see a strong environment for technology stocks this coming week, a potential breakout for PKI could take the stock to the resistance provided by the 200-DMA of $85.22. The MACD is positive and the RSI has pulled back from a level that had previously suggested an overbought condition.


Picked on May 17th @ $70.12
Change since picked +2.27
Stop Loss @ $67.00
 
Interactive Chart Quote News First Call on PKI
 


SDS - SunGard Data Systems $59.85 (-1.06)

SDS managed to salvage a rough week by bouncing off its 20-dma and ending Friday's session with a slight gain. Although the $0.14 gain was nothing to write home about, it may have been enough to stop the momentum that had been building to the downside. However, we still need watch for further slippage, as SDS's MACD just rolled over and issued a sell signal on Friday. In addition, shares are also close to breaking down through SDS's short term up trend line. We will look for the 20-dma at $58.92 to continue offering support into next week. At this point, traders may want to wait for SDS to show some strength before initiating new positions. By this we mean a breach of the old closing high of $62.65 on volume of over 900,000 shares.


Picked on May 16th @ $62.00
Change since picked -2.15
Stop Loss @ $58.40
 
Interactive Chart Quote News First Call on SDS
 

New Candidate Updates

ASD - American Standard Companies, Inc. $65.66 (+0.21)

American Standard Companies, Inc. posted a small gain on Friday despite a generally weak market. Shares of ASD traded to an intra-day high of $65.73 before pulling back to a close of $65.66 on volume of 335,000 shares. The stock has made three consecutive higher highs coupled with higher lows and it has fallen back in line with the long-term upward trend. ASD could be ready for a slow and steady move to new highs. Until then, the stock has support at Friday's intra-day low of $65.34 with additional support at $64.57, the 10-dma. Resistance remains unchanged at the May 18th intra-day high of $66.50 and then $68. Look for a bounce off of $65.34 or a breakout above $66.50 on midday volume greater than 250,000 shares before opening new positions. Our stops are holding steady at $63.50.


Picked on May 6th @ $62.50
Change since picked +3.16
Stop Loss @ $63.50
 
Interactive Chart Quote News First Call on ASD
 


AYE - Allegheny Energy, Inc. $53.65 (-0.15)

Looks like someone wanted to get out of the office early. On Friday, Allegheny Energy, Inc. was hit with a round of profit taking early in the session. Three large trades accounting for 17% of the day's volume crossed the tape during the first hour of trading. The combined trades totaled 116,700 shares at an average price of $53.79. Unfortunately, the stock could not recover on the lightest volume day of the year. AYE ended the session at $53.65 on volume of 674,000 shares. The stock closed below the 10-dma for the first time since April 20th, so AYE may spend some time consolidating in the $53-$55 range. For now, support has fallen to Friday's intra-day low of $53.40 with stronger support at the May 11th intra-day high of $53.05. Resistance is the 5-dma at $54.42 and then the all-time high of $55.09. Trader may consider entry points on a bounce off of $53.40 or a move above $54.42 on volume of at least 225,000 shares by noon. We are keeping our stops at $53 to lock in gains.


Picked on April 29th @ $50.60
Change since picked +3.05
Stop Loss @ $53.00
 
Interactive Chart Quote News First Call on AYE
 


BKH - Black Hills Corporation $57.27 (+1.33)

Profit taking extended to the very strong utility sector on Friday and BKH pulled back a bit with the rest of the group. Nevertheless, BKH did enjoy a solid week and could easily continue its rally this coming week as we approach the peak electricity usage months of summer. Most analysts believe that 2001 is going to be a record year for BKH. Consensus estimates are calling for the company to post profits of $3.42 when the fiscal year ends in December. Therefore, BKH is only trading with a forward P/E of 16.7, which offers investors a relatively good value for their capital. BKH struggled to move above its recently established high of $58.50 during the last two trading sessions. If this resistance can be broken this week, BKH could make another nice move. Therefore, traders might want to go long if BKH trades through $58.50 with midday volume exceeding 90,000 shares. Be careful if BKH gaps up to $59.25 or higher on the open because the stock could pullback and reward patient investors with a better entry price. In the event of a pullback, BKH may find initial support at the 10-DMA of $55.81. The MACD is solid and rising, which suggests that there could be some more upside potential left in this stock. The RSI continues to suggest an overbought condition but this condition is not as severe as it had been last week.


Picked on May 20th @ $55.94
Change since picked +1.33
Stop Loss @ $52.25 
 
Interactive Chart Quote News First Call on BKH
 


HRB - H&R Block $59.72 (+1.26)

Even though HRB spent most of the week drifting lower, it still managed to close the week in the black, due in large part to Monday's strong $3.25 up day. The good news regarding the four down days in a row that followed Monday's pop is that they all came on descending volume. This tells us that the sellers in HRB don't have much conviction behind their actions. In addition, the minor pullback has formed a small flag pattern that could lead to another bullish breakout, should the broader market decide to cooperate next week. Going into next week's trading, support should come in at $59.35, and then lower at the 10-dma of $58.83. Resistance remains at the high of $61.75. We will also be watching to make sure that the MACD, which is perilously close to issuing a sell signal, does not roll over on us. Traders wishing to initiate positions in HRB could look to do so on a bounce off $59.35, or a break above the high of $61.75 on volume of at least 600,000 for the day.


Picked on April 18th @ $52.85
Change since picked +5.87
Stop Loss @ $57.50
 
Interactive Chart Quote News First Call on HRB
 


KRI - Knight Ridder, Inc. $55.63 (-0.38)

Knight Ridder, Inc. has posted losses in each of the past three sessions. On Friday, shares of KRI dipped to an intra-day low of $55.34 before bouncing back to a close of $55.63 on light volume of 318,000 shares. The stock has put in three consecutive lower lows and KRI is in danger of developing a short-term downward trend. On the positive side, the stock was able to recover after a test of the 20-dma. Going forward, support is the 20-dma at $55.32 with additional support at $54.56, the May 16th intra-day low. Resistance is holding at the 5-dma, now down to $56.50, and then Wednesday's intra-day high of $57.60. A bounce off of $55.32 or a move above $56.50 on midday volume greater than 250,000 shares may be possible entry points. We are leaving our stops at $54 to limit potential losses.


Picked on May 20th @ $56.01
Change since picked -0.38
Stop Loss @ $54.00
 
Interactive Chart Quote News First Call on KRI
 

New Momentum Updates

BUCA - Buca, Inc. $24.79 (+1.80)

BUCA eased off its all time high on Friday. However, it did so on volume of only 64,000 shares. This volume is low enough to just about disregard Friday's move entirely. The only technical reading of substance that we can gain by Friday's action was that Thursday's record high close of $25.15 did serve as some resistance. We won't jump to any conclusions, however, until next week's trading commences on Tuesday. We will note that most restaurant and leisure stocks had strong bids on Friday. Although, this is not surprising either, as these stocks have been strong all month. Traders interested in starting new positions in BUCA should look to do so if BUCA can close above Thursday's closing high of $25.15 on volume of at least 350-400,000 shares traded. We are keeping our stops at $21.30 in case BUCA serves up a bad meatball.


Picked on April 24th @ $25.15
Change Since Picked -0.36
Stop Loss @ $21.30
 
Interactive Chart Quote News First Call on BUCA
 


GTK - GTECH Holdings Corp $37.40 (+0.79)

GTK has been a very strong stock during most of 2001. Fundamentals have been driving the surge. Analysts expect the company to grow its earnings by 32% this fiscal year. Clearly the demand for lottery systems is one area of the economy that is not suffering a slowdown. Last week, GTK began trading in a very narrow range between the newly established high of $38.18 and $36.59. The stock may make a more substantial move this week if it can trade through either end of the trading range. Consequently, we have decided to raise our stop to $36.40 to help protect our profits in case GTK drops below the support. Otherwise, traders may want to consider adding to positions if GTK can move above $38.18 accompanied by midday volume exceeding 170,000 shares. The RSI is still indicating an extremely overbought condition. This fact does not eliminate the possibility that GTK can keep moving higher in the short term. However, one should probably be cautious if GTK starts to pull back.


Picked on April 22nd @ $29.79
Change since picked +7.61
Stop Loss $36.40
 
Interactive Chart Quote News First Call on GTK
 


SCH - The Charles Schwab Corp $20.80 (+1.35)

Schwab is starting to recover on hopes that this market rally is for real. If it is, no doubt trading activity will start to pick up from the abysmal trading environment we saw earlier this year. Schwab has taken great steps to try and keep the company's record growth in tack by slashing over 3,000 jobs recently and concentrating more on its asset management business, which is less reliant upon commissions. SCH's long base that extends back into mid-April has resulted in solid support at $18.75, which is why we have set our stop just a little lower at $18.50. SCH could break out of the current trading range if it can trade above the $21.59 resistance. Momentum traders might push the stock higher if the breakout is accompanied by first hour trading volume exceeding 1 million shares. An extended rally may eventually drive the stock to test some longer-term resistance found just above $26.00. An extended rally would become more likely if the MACD can turn positive this week. We also like the fact that the Money Flow has been slowly trending higher. The RSI has plenty of upside potential before the stock would be considered overbought.


Picked on May 2nd @ $21.18
Change since picked -0.38
Stop Loss @ $18.50
 
Interactive Chart Quote News First Call on SCH
 

Play Updates Index

 


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