The Play Of The Day
January 13, 2000
08:55 AM EST.
What a Difference a Year Makes!
Stock Fans! 1 year ago today the S&P Futures were locked down as the Real currency of Brazil fell apart. The DOW and the NASDAQ opened over 4% lower. However this market proved that the US economy was fine. In an unbelievable move the NASDAQ recovered lead by INTC going positive first and 30 mins after the opening bell the NASDAQ had gotten back all of its immense losses. The Dow then followed 1 hour later.
Good Morning Stocks Fans!
3,850 proved to be a big number in the NASDAQ range it bounce off that in the morning hours yesterday. Then after breaking it to drop to about 3,843 the NASDAQ found its way back to 3,920, but could not break that magic 3,924 area. It closed just over 3,850 yesterday. Today look for the NASDAQ breaking 3,923 as a signal to head back to 4,000. If it can't hold 3,850 then 3,843 comes back into range.
Today's Play of The Day is: Santa Cruz Operation (NASDAQNM:SCOC)
SCOC provides UNIX-based, open system software, enabling integration of technology and products from different vendors to create powerful network information systems. Stock fans this stock has sold off and is at support. Santa Cruz issued an earnings warning basically due to customers holding off on purchases due to y2k concerns. There is lots of speculation on the breakup of Microsoft. There is news of China using Linux products. There are many reasons that this Company should rock in the 00's! The price to sales is a relatively cheap $3.25 This is a good opportunity to own shares of a Company picked to run this year at K-Mart prices
KEY INDICATORS: (NASDAQNM:SCOC)
Buy Area: $18.50 to $19.50
Sell Stop: $18.125
TARGET: $22.45 to $24.425
Time Frame: 4 to 7 days
SHORT SWING PLAY - Efficient Networks, Inc. (NASDAQNM:EFNT)
Efficient Networks, Inc. is a worldwide developer and supplier of high-speed digital subscriber line customer premises equipment (CPE) for the broadband access market. Efficient Networks price crossed below its 50 day moving average. Volume has increased to the downside (rats leave a sinking ship first). The lockup on shares with held from the IPO expires on 1/10/00. Twenty-six million shares, which is 71% of the total shares! Based on current volume it will take 72 days to absorb these released shares!
KEY INDICATORS: (NASDAQ:EFNT)
Sell Short Area: $64.75 to $64.00
Buy Stop: $68.80
TARGET: $58.75 to $56.30
Time Frame: 2 to 4 days
BONUS PLAY #2 Audible (NASDAQ:ADBL)
Audible is the Internet's largest, most diverse provider of premium spoken-audio services for content download or playback on personal computers and AudibleReady(TM) mobile digital audio devices. Audible allows customers to take advantage of their commute, travel and desktop computer time by delivering premium entertainment and information audio while their eyes are busy but their minds are free.
This stock recently reported better then expected numbers. That caused it to gap up and find its watt to as high as $17.8750. It then was featured that same day on CNBC. That is all it needed to explode and trade over 3 million shares as it would get near $20.00 a share. As stocks often do shares of (NASDAQ:ADBL) had perhaps been run up to much to soon. In light of a NASDAQ selloff 2 days ago ADBL sold off and dropped back down under the $15.00 area.
However yesterday NASDAQ:ADBL) traded 2 times its normal 30 day volume as it had buyers and went as high as $16.50. Today it looks as if it will find that 16.50 range and look to run as market makers look to sell those shares back that they had to buy when NASDAQ:ADBL) sold off earlier this week.
We will look to play ADBL today into strength. It may run right off the open. However we will look to get in the stock just under $16.00 today. If ADBL can break $16.50 it should run to mid $19.00's.
KEY INDICATORS: ADBL
Time Frame: 1 to 3 days
Type of Trade: Swing Trade
LINUX RELATED STOCKS ON WATCH TILL END OF JANUARY 2000
In light of CNBC's piece last night on Linux, and MrSofties (NASDAQ:MSFT) recent problems we are going to be keeping a close eye on what we know can get hot fast! Those Linux related stocks.
RHAT, ANDN, SCOC, PERL, CORL, MGIC, INPR, SMSI
STOCKS ON OUR SCREENS TODAY:
INPR- News today that it will invest 60 million in wireless LINUX start ups companies
VISG- ALERT BUY ON CLOSE email gapping up big $16.00 now
AOL- I still like 56-57 area for AOL to wash out
BNBN- Short to $13.00
IDTI- Looks strong at current levels.
CBLT- will sell cars online.
VOXX- blew away numbers
WEBT- numbers coming they should popel WEBT into its first long awaited split.
AFCI - big volume.
PRTL - deal with AKAM today.
ASDS- $15.00 is support
SKDS- CNBC may point out that this stock had 99% increase in Xmas sales.
NSPK- It may make $25.00
have a great day!
More to come....
and BigPlayStocks.com Team of Traders.