The Play Of The Day
January 19, 2000
06:11 AM EST.
Today's Play of The Day is: Fibercom International (NASDAQ:IFCI)
International FiberCom (NASDAQ:IFCI) is a leading provider of a wide range of engineering, development and maintenance services for fiber-optic, broadband networks, public telephone networks, local and wide area
networks, and specialized wireless applications.
With a number of recent strategic acquisitions that complement and enhance existing services and products, International FiberCom has positioned itself as a "one-stop shop" for the telecom and cable TV industries.
The stock in simple terms "It sure looks like something is brewing on it!" It traded more then 300% more its daily volume yesterday as it went to as high as 13.3750 in after hours yesterday up more then $3.00 on NO NEWS!
This stock one that had all kinds of trouble breaking $12.00 had no problems with it yesterday.
The stock looks to be a perfect play to continue to move higher on increased volume over the next 3 trading days ahead of what could be big news. The stock saw block trades in size as it traded late in the day yesterday to further add to its mysterious action that may indeed be telling us that its ready to run to north of $15.00.
One thing is certain with FIBER channels being so popular with the likes of CRDS and BRCD. The name that it has Fibercom with FIBER and COM in the name it is sure to get much more interest "popularity" = volume if this volume continues. All indicators say it does. It looks to have solid support at $12.00. This is where we will look to take a position in the stock today.
KEY INDICATORS: IFCI
Time Frame: 3 days
Type of Trade: Swing Trade
As a daytrade: look for 2 points today.
BONUS PLAY #1 Ancor Communications (NASDAQ:ANCR)
Ancor Communications Inc. provides the Sandbox series of high-performing Fiber Channel switches, the broadest switch product line in the industry. Designed for scalability, the switches are available from an entry-level 8-port hub emulator to a 128-port Director class switch. Information on Ancor is available on the Web at www.ancor.com.
Stock Fans! We are amazed this former high flyer a stock that in mid November 1999 traded at nearly $100.00 on news of its sand box fiber channel switches being used by SunWest (NASDAQ:SUNW), has now found its way to go as low as $35.00 yesterday testing a 200 day support area.
The first question asked is why? The company has in fact reported such things as its sand box switches being finalist in its field of expertise. It has not looked like a stock that has split. However rest assured it hasn't. It did bounce hard off $35.00 yesterday before closing at 37.00 plus on volume of just over its 30 day average volume of 1.3 million.
The key to this play being called today is LOW RISK. The 200 day moving average being held is a key indicators that proves that there are more buyers then sellers. With ANCR due to report positive earnings for the first time looking to erase a 20 cent loss with a profit of 1 cent on Feb 8, 2000. Shares of ANCR looked to be perfect to gather up here at current levels.
One thing that may help our cause that helped us call this stock for 20 plus point gains in 1999 was a stock that it is very similar to Cross Roads Systems (NASDAQ:CRDS). With CRDS due to be featured on CNBC Power lunch early next week. We may indeed get the move we need that off interest in CRDS we get ANCR to make its way back to 50.00, a move of more then 12 points in less then 15 trading days. ANCR has a habit of announcing big news when it announces numbers. They announced SUNW news right after earnings last quarter.
The other indicator that may indeed point towards a move to upside upcoming is that there are ZERO option put contracts bought on the ANCR Jan 2000 $30.00 options. However believe it or not 16 contracts of the Jan 2000 $55.00 Option Calls were sold yesterday. Those options expire this Friday. We may see a major move in ANCR yet this week.
KEY INDICATORS: ANCR
Time Frame: 3-15 trading days
Type of Trade: Swing Trade
"RUN THE OPTIONS!" ANCR
Feb 2000 ANCR 45.00 Options Calls
Feb 2000 ANCR 50.00 Option Calls
ANOTHER WAY TO PLAY OPTIONS ON (NASDAQ:ANCR)
Sell Feb 2000 $40.00 Puts. Collect a premium immediately. Worse case scenario is on Feb 18, 2000 you own shares of ANCR at $40.00 or less. More probable scenario is that you keep premium and the options go un exercised as ANCR trades over $40.00 on Feb 18, 2000.Example 10 Option Puts contracts on ANCR Feb 2000 40.00 Put Options are $7.25. $7.25 x 10 contracts (1,000)= a premium of $7,250 you keep this premium as long as ANCR trades over $40.00 on Feb 18, 2000. If it doesn't then your risk is you buy ANCR 1,000 shares at $40.00 or less wherever it trades that day.
BONUS PLAY #2 MH. Myerson (NASDAQ:MHMY)
This online broker, and stock analyst firm announced news late in yesterday's trading day that caused this beaten down quality online broker related stock to make a $1.00 move off $4.50 area on increased volume of 330,000 shares. More then double its 30 day trading average of 150,000 shares.
(NASDAQ:MHMY) NEWS RELEASE 14:17 PM EST January 18, 2000
M.H. Meyerson & Co.Inc. Reports Licensing of itsEmeyerson.com Inc. Subsidiary
JERSEY CITY, N.J., Jan. 18 /PRNewswire/ -- Jeffrey E. Meyerson, President and Chief Executive Officer, of Emeyerson.com Inc., an approximately 65% owned subsidiary of M.H. Meyerson & Co., Inc., (NASDAQ:MHMY), announced today that the company has received NASD approval for its license application. Mr. Meyerson expects the company to be fully operational by mid-spring this year.
What does this news really mean? The best way to describe how powerful this news could be is to make a market comparison. MHMY with this license now approved will be able to be a Knight Tri-mark (NASDAQ:NITE) type company. With MHMY now moving toward being a market maker like NITE is in online Internet stock trading. MHMY with it current closing price of $5.6250 being more then 70% off its all time high and 52 week high of $21.8750 (Feb 4, 1999). This stock looks to be low risk at current levels, and a true possibly undiscovered gem. With less then 2.1 million shares existing in its current float. It will not take much to get traders to look at this news closer. I know one thing many investors would have loved to find the next NITE as they watched it go from $38.00 on Jan 12, 1999 to more then $399.00 by April 13, 1999 before it split 3 for 1.
KEY INDICATORS: MHMY
Time Frame: 3 days
Type of Trade: Swing Trade
KEY - VOLUME- 1 million plus shares should send it to $8.00 plus today. Its first level of resistance.
BONUS PLAY #3 - SHORT PLAY TODAY: Elcom International (NASDAQ:ELCO)
Elcom International, Inc.(NASDAQ:ECLO), (www.elcominternational.com), through its wholly-owned subsidiaries, develops, licenses, and uses Internet-based eProcurement systems including PECOS Internet Procurement Manager, elcom.com's remotely-hosted automated procurement system. elcom.com, inc., (www.elcom.com), the Company's technology and eProcurement subsidiary, licenses its PECOS technologies to Elcom Services Group's customers.
Well, if you were in the our LIVE Trading Room yesterday. You saw this stock literally explode as heavy volume of more then 3 million shares trading taking it up more then $8.00 points going as high at one point as $28.25 before it finally settled at $27.50 on close.
What was the news? Well during regular trading hours there wasn't any. However about 4:30 EST. ELCO released news that said it was filing for a secondary offering. In essence this news means the liquidity of shares in ELCO is going to be increased a direct negative correlation that took shares of ELCO flying yesterday. With more shares coming soon their willexist more supply, hence taking down the demand. The stock should retrace a good majority of yesterday's gains as it looks very much now as if it sells off in rather dramatic fashion today taking it back down to maybe aslow as the $22.00 area.
KEY INDICATORS: ELCO (SHORT)
Cover for a Loss: $30.43750
Time Frame: Today
Type of Trade: daytrade
BONUS PLAY #4 Ubid.com (NASDAQ:UBID)
uBid.com (NASDAQ:UBID) offers brand name products through live-action bidding on such items as computers, consumer electronics, housewares, sporting goods and memorabilia, jewelry, apparel, appliances, art, travel and events.
PRESS RELEASE: Jan 18, 2000 16:12 EST.
uBid.com revenues rise, users top one millionRecord growth reported.
E-commerce auction site uBid.com (NASDAQ:UBID) said on Tuesday fourth quarter revenues grew 190 percent from a year ago and it had an operating loss narrower than analysts expected.
The two-year old company reported an operating loss of $10.7 million or 93 cents per share, which excluded a one-time charge. This compared with a loss of $7.2 million or 92 cents per share in last year's fourth quarter, ended Dec. 31, 1998.
Analysts were on average forecasting a loss of 99 cents per share, according to First Call/Thomson Financial, which tracks this data. uBid.com shares closed up 1-5/8 at 30-7/8.
There were 11.5 million shares outstanding in the most recent fourth quarter, up from 7.9 million a year ago.
The operating loss excluded a one-time non-cash stock based compensation charge of $750,000. Including the charge, net loss for the quarter was $11.5 million or 99 cents per share.The company reported fourth quarter revenues of $69.9 million, up from $24.1 million a year ago. For the year, the company revenues were $204.9 million, up 325 percent from last year's $48.2 million. It reported a net loss of $25.5 million or $2.61 per share compared to a loss of $10.2 million or $1.36 per share last year.The company diversified sales with non-computer products, which contributed 40 percent of its overall sales in the fourth quarter, Chief Executive Officer Greg Jones said.
The company said registered users increased four-fold to 1,030,000 at year-end 1999, compared to 229,000 users at the end of 1998 with a repeat order rate of 79 percent for the quarter. This stock was perhaps December 1998's highest of high flyers. The stock went public in mid December 1998 at $35.00 a share. By Jan 1999 the stock would go as high as $199.00 as it exploded on it being seen as very similar
to the high flyer EBAY.com (NASDAQ:EBAY).
It fell off in late July 1999 to go as low as under 30.00 as it then made a run on a broker in mid October 1999 coming out and putting a staggering 6 to 12 month price target on the stock of 150.00 a share. This when it was trading under $50.00 a share. UBID has not even come close to that mark since Jan 1999. However it sure didn't run up ahead of yesterday's powerful news.
We are looking for UBID now to get going as it should make a move if it can get enough volume to perhaps as high as $50.00 over the next 5 trading days. With only 11 million shares outstanding total, and about 60% less publicly traded UBID could move fast as it now deserves to be a $50.00 stock minimum.
We are looking for UBID to gap up today. The retrace that gap fill in its trading chart and make its move to $50.00 following its retrace.
KEY INDICATORS: UBID
TIme Frame: 5-8 days
Type of Trade: Swing Trade
STOCKS ON OUR SCREENS TODAY:
XYBR-Unconfirmed rumors continue to circulate that IBM will buy the stock.NTBK- News yesterday not reacted on to how powerful it was. NTBK to be YHOO online bank merchant.
DVNT-Wireless news. It traded in a tight range yesterday.
MACR- numbers should be stellar. Looking for a 2 for 1 stock split
VSIT- They are buying SFA
OPTV- best way to play Digital TV (HDTV) sector. 6 month TARGET: $250.00
AOL- It may test 60-59. It then should move into earnings. Risk is $54.00
low. 4 month TARGET $80.00
TWX- to test $78.00 again
YHOO- next time its a buy is $299.00 good for a 25 point bounce in the range
SALN- this one may make $11.00 or more as it is seen as brand building play off mega merger AOL TWX.
NTRX- What a call we made in November 1999 when it was at $12.00. yesterday it cloed at its high of day $29.25 on huge volume of 3 mill plus
PAIR- closed at high of day. Strong buy upgrade yesterday.
FATB-oversold. It may test $17.25. It was $40.00 in late November 1999.
VFND-Any news could take it to $9.00 in a hurry
ELOT- Not a bad bounce yesterday. News of NFL fantasy game on powerful web site. http//:www.elotteryFreeway.com Big traffic of late
CORL-record numbers traded as high as $26.1250 in after hours yesterday following the news after closing in regular hours at $20.00 CORL will get big volume today
VPHM- Short to $54.00
WEBT-Numbers today following close looking for 40 cents profit a share and a 2 for 1 split.
SIII - It found 15.00 it may go to $17.00 plus now
GMAI -CEO says GMAI-Asia may spin off. CEO also says 100 mill in added revs in 2000.
SBAS-Looks to test 13.50 ahead of numbers.
PERL- whatch it off CORL move.
SPNW- Closed at 20.00. Watch for an oversold bounce to $22.75 in today's range
EGAN-strong buy rating.
More to come...
Have a great day!
and Team of Traders