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PLAY >New Updates Thursday, May 31, 2001
New Split Updates   New Candidate Updates   New Momentum Updates
(We update our stop losses daily at the CURRENT PLAYS page.)

New Split Updates

None

New Candidate Updates

ASD - American Standard Companies, Inc. $66.63 +1.61 (+0.97)

American Standard Companies, Inc. gapped up Thursday morning on news that Morgan Stanley (NYSE:MWD) increased its weighting of ASD from 1% to 2% in Morgan's U.S. model portfolio. Shares of ASD traded to an all- time high of $66.80 before pulling back to a close of $66.63 on volume of 294,000 shares. The stock has been trending higher on average volume so ASD may be able to continue to set new highs. From a technical standpoint, ASD has support at Wednesday's intra-day high of $66 with additional support at $65.56, the 10-dma. Resistance is Thursday's intra-day high of $66.80 and then $68. A bounce off of $66 or a breakout above $66.80 on midday volume greater than 250,000 shares may be possible entry points. We have moved our stops up to $64.50 to lock in additional gains.


Picked on May 6th @ $62.50
Change since picked +4.13
Stop Loss @ $64.50
 
Interactive Chart Quote News First Call on ASD
 


BJ - BJ's Wholesale Club $48.75 +0.25 (+0.44)

This stock has behaved in a somewhat puzzling fashion this week. BJ was able to fend off the bear attack earlier this week. Usually, this type of relative strength attracts momentum investors. This was true for a little while today. However, BJ was hit with some profit taking after establishing a new high of $49.65 earlier in the session. Today's action was almost a carbon copy of yesterday's trading. Therefore, traders might want to try and get in early and anticipate the establishment of another new high tomorrow, as opposed to buying the stock at the time when it makes a new high. Obviously, another new high is not a guarantee tomorrow. For the rest of you, we certainly cannot complain about a stock that has established a new high three days in a row. Some of BJ's technical indicators continue to be quite strong and are suggesting the continuation of the rally. These technical indicators include the MACD, Money Flow and OBV. In the event of a pullback, BJ may find support at its 5-DMA, which closed today at $47.19


Picked on May 27th @ $48.31
Change since picked +0.44
Stop Loss @ $45.10
 
Interactive Chart Quote News First Call on BJ
 


BKH - Black Hills Corporation $54.90 -0.46 (-2.37)

Despite the drop below the important support provided by the 10-DMA of $56.72, there is still a lot to like about this western US utility. The company is expected to post record profits this year, due, in part, to the energy crisis. Couple this fact with the possibility that the company will announce a split soon and one can see why the stock is trading just under its 52-week high of $58.50. BKH has split its shares three times since 1986 and every previous split was announced when the stock was trading at levels below today's closing price. That said, traders will probably want to make sure that the stock can stay above the next level of support, which is provided by the 20-DMA of $54.69. The MACD did issue a sell signal yesterday, which is a bit of a concern in the short term.


Picked on May 20th @ $55.94
Change since picked -1.04
Stop Loss @ $52.25
 
Interactive Chart Quote News First Call on BKH
 


CEFT - Concord EFS Inc. $50.70 -0.02 (+0.10)

Concord EFS, Inc. has been consolidating over the last two days after hitting an all-time high during Tuesday's session. On Thursday, shares of CEFT traded to an intra-day low of $50.55 before bouncing back to a close of $50.70 on volume of 3.35 million shares. The stock has broken its sharp short-term upward trend so CEFT may spend some time consolidating in the $49-$50 range. In the meantime, support is the 5- dma at $50.35 with stronger support at $49.32, the 10-dma. Resistance is holding at Tuesday's intra-day high of $51.40 and then $53. Look for entry points on a bounce off of $50.35 or a breakout above $51.40 on volume of at least 2 million by noon. We are keeping our stops at $46 as downside protection.


Picked on May 27th @ $50.60
Change since picked +0.10
Stop Loss @ $46.00
 
Interactive Chart Quote News First Call on CEFT
 


CIMA - Cima Labs Inc. $73.50 -3.20 (-1.30)

CIMA pulled back on lighter volume today. Due to the fact that the stock traded only 200,000 shares on the sell off, we won't break out the warning flag just yet. However, we will watch for CIMA to hold above support at its 20-dma of $70.00 going forward into next week. In addition, we need another good up day to avoid a definitive sell signal out of the MACD. Resistance has come into CIMA at the $77.00 level and again at the $78.00 level. More conservative traders may wish to wait until CIMA can close above $78 on volume of at least 450,000 shares before initiating positions. Otherwise, traders could look to enter on a bounce off $70 on similar daily volume. Our stops remain at $67.95 to protect on the downside.


Picked on May 29th @ $76.95
Change Since Picked -3.45
Stop Loss @ $67.95    
 
Interactive Chart Quote News First Call on CIMA
 


HRB - H&R Block $59.64 +0.27 (-0.08)

Even though HRB managed to forge ahead today, its MACD has turned negative and volume is decelerating. These may be signs that HRB is getting ready to roll over. For this reason, we have tightened our stops up to $58.40 incase sellers regain the upper hand. Looking at the chart, support should come in at $58.50 and resistance has showed up at $60.44. Traders looking to get into HRB should wait until the stock can close above $60.50 on volume of at least 600,000 for the day. Otherwise, HRB looks vulnerable to a pullback.


Picked on April 18th @ $52.85
Change since picked +5.79
Stop Loss @ $58.40
 
Interactive Chart Quote News First Call on HRB
 


KRI - Knight Ridder, Inc. $54.94 +0.10 (-0.69)

Knight Ridder, Inc. showed some signs of life on Thursday. The stock hit an intra-day high of $55.36 before pulling back to close at $54.94 on volume of 399,000 shares. However, the stock has fallen below its 20-dma for the first time since May 16th and KRI has put in three consecutive lower highs on below-average volume so the stock may continue to drift lower until the volume returns. For now, support is May 16th intra-day low of $54.56 with additional support at $54.08, the 200-dma. Resistance is the 20-dma at $55.44 and then the 100-dma, currently at $56.21. Traders may consider starting new plays on a bounce off of $54.56 or a move above $55.44 on volume of at least 250,000 shares by noon. We are leaving our stops at $54 to limit potential losses.


Picked on May 20th @ $56.01
Change since picked -1.07
Stop Loss @ $54.00
 
Interactive Chart Quote News First Call on KRI
 

New Momentum Updates

BUCA - Buca, Inc. $21.80 -3.35 (-2.99)

BUCA also succumbed to the downdraft in restaurant stocks. The stock fell $3.35 on heavy volume of 725,000 shares. We avoided being stopped out of this play by only $0.30. The good times for restaurant stocks were bound to come to an end, but we never expected such an overreaction to news of a slowdown in visitor traffic for May. BUCA has recovered from big down days before, but since we are so close to our stop, we don't hold out much hope for this casual dinning play. Traders should hold off on entering BUCA until it can prove that it has stabilized.


Picked on May 24th @ $25.15
Change Since Picked -3.35
Stop Loss @ $21.30      
 
Interactive Chart Quote News First Call on BUCA
 


GTK - GTECH Holdings Corp $37.31 +0.69 (+0.09)

GTK showed some excellent resiliency yesterday during the broad stock market decline. GTK did come within $0.08 of hitting our suggested stop but then managed to rally from that level. Today's positive action was likely influenced by not only the general bounce in the markets but also a positive news item. GTECH beat out two competitors to win a long term contract (through November 2011) to provide online lottery and instant-ticket services for Warsaw, Poland based, government controlled, Totalization Sportowy Sp. The contract is estimated to be worth $110 million. Nevertheless, GTK has suffered some technical damage this week. Over the past three days GTK has experienced lower lows. GTK could either be on the verge of correcting or it might be building a base here. This is why we use trailing stops. The MACD is negative and is rolling over. However, one really strong technical indicator is the OBV. This indicator jumped substantially today because GTK enjoyed an increase in price accompanied by volume that was 4.28 times the average daily volume of 326,772. A good entry point might present itself tomorrow if GTK can establish a new high above $38.18 with midday volume exceeding 200,000 shares.


Picked on April 20th @ $29.79
Change since picked +7.52
Stop Loss $36.40
 
Interactive Chart Quote News First Call on GTK
 

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