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SDS - SunGard DataWeek Ended: 1/27/01
Price 49.88 P/E Ratio 30.83 52 Week High 52.75
Last Week - 1.25 Earnings Date 02/08/01 52 Week Low 26.50
Picked At 48.81 Date Picked 1/23/01 Sector Technology
Current 49.88 Open 49.81 Change -1/8
Low 49.44 High 50.19 Volume 534,400

Company Description

SunGard Data Systems, Inc. provides integrated IT solutions and "eProcessing" for financial services. SunGard also provides high availability infrastructure for business continuity. For the 9 months ended 9/30/00, total revenues rose 14% to $1.2B. Pro Forma net income before extra. items totalled $150.5M, up from $52.5M. Results reflect increased professional service revenues from acquisitions, lower merger-related costs and higher interest income.

Play Description

January 23, 2001

SunGard Data Systems is a provider of integrated technology (IT) solutions. In addition, the company provides a workflow management system that increases efficiency and flexibility in managing healthcare insurance organizations and an automated mailing-services business. Tonight we welcome SDS to our list of split candidate plays. The company caught our eye because it is drawing closer to its target split range at $50.00, a level where the company has split its stock twice before. Tuesday, the stock gained better than $3.06 on volume of 1.4 million shares. This volume surge exceeds the three-month average trading volume of 860,000 by 62-percent. SDS is due to report earnings on February 8th and now looks poised to move higher as it nears that event. For the past month, the stock has been teetering to hold technical support at the 100-dma. On Tuesday, the stock bounced off the 100-dma at $45.80 and then moved higher through four moving averages including the 50-dma, a closely watched indicator by technical traders. Support now exists at the 50-dma at $48.45, the 20-dma at $47.16 and the 100-dma at $45.79. New play opportunities might include a move to $50 on volume of 750,000 by midday. We will place our stop loss at $45.00 just below support.

Picked on January 23rd @ $48.81
Change since picked 0.00
Stop Loss at $45.00


January 25, 2001

SunGard provides integrated IT solutions and "eProcessing" for financial services and business continuity. SunGard has continued to climb higher and is now sitting at the half-century mark. However, the past two days of gains in the stock have come on lower-than-average volume. The stock trades at about 854,000 shares based on a three-month average. While we are pleased with the new high level, we'd like to see more conviction reflected in the volume. SDS will be reporting its earnings for the fourth quarter on February 8th. Leading up to that date, we are looking for more upside and hopefully a new 52-week high. As of Thursday's close, SDS has resistance at $51.00 and then up at $52.75. Support now exists at the 50-dma at $48.50 and the 5-dma at $48.15. Possible new plays might include a bounce off support followed by volume over 750,000 by midday. We will keep our stop at $45.00 on this play.

Picked on January 23rd at $48.81
Change since picked +1.19
Stop Loss at $45.00


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