The Play Of The Day
January 31, 2000
08:47 AM EST.
NASDAQ OUTLOOK TODAY & TOMORROW:
Stock Fans! The NASDAQ fell more then 320 points as it tested and failed several key NASDAQ support areas. I was expecting a rate hike last week of .50 on interest rates coming as the FED meets this week. However now as the NASDAQ apparently is not going to allow a signal person or authority, the FED to make such a powerful decision on it. The NASDAQ took it upon itself to sell off. It now looks as if we will get a .25 increase. The 320 points plus shed last week takes care of that extra .25 that I was expecting last week. It now looks as if the NASDAQ trades sideways over the next 2 days in a range of 3,900- 4,039.
Today's Play of The Day is: One of Friday's IPO - L90 (NASDAQ:LNTY)
Based in Santa Monica, CA, L90 is a leading provider of comprehensive online advertising and direct marketing solutions for advertisers and Web publishers. The company designs, develops and implements sophisticated "beyond the banner" advertising campaigns featuring sponsorships, co-branding, content integration, rich media and other innovative marketing techniques.
The stock opened it public trading on Friday at $23.00. It immediately went to $26.00 on a barrage of buying off its open. The stock however then pulled back extremely fast and in the midst of a NASDAQ sell off fell back fast and hard to bounce right off 20.00 where it had plenty of buyers. It then began to slowly rise as the NASDAQ slowly dropped into the close. At one point about 10 mins ahead of the close the stock found its way to its day high $26.00 again. It however as the NASDAQ would end near its lows of the day and under 3,900 for the first time in 2 plus weeks on hardly any volume at all L70 (NASDAQ:LNTY) dropped to under $24.00 to close with over 6 million plus shares trading at $23.75
Stock Fans! Now way does a stock rise back to near its high on the day on over 4 million shares, then fall back on less then 600,000 shares in the last 5 mins ahead of the close. This stock sure looked to be gathered up and stolen for a move coming today in what should be an all together different market. I am looking for this stock to take a shot at $30.00 as it sure seems undervalued and was only an under achiever off its debut last Friday on circumstances of its trading environment not its business.
KEY INDICATORS: LNTY
Buy Area: $23.8750-$24.6250
Sell Stop: $22.75
Time Frame: today
Type of Trade: Swing Trade
BONUS PLAY #1 Mail.Com Inc. (NASDAQNM:MAIL)
Mail.com is a provider of free and pay email services and functions to Web users. MAIL generates revenue from advertising related sales, including direct marketing and e-commerce promotions and from premium services offered.
Stock fans, this is an interesting stock. Free email, yeh right. Here is the deal. Mail.com owns India.com, Asia.com, Europe.com and USA.com. But Mail.com has plans in the work for the development of all these sites. Based on China.com, India.com's value should be around 2.37 billion! Earnings are on 2/7/00 and has a recent broker price target of $50.00.
See the news link for more information.
Key Indicators: MAIL
Buy Area:$15.50 to $16.00
TARGET:$17.60 to $18.40
Time Frame: 3 to 8 days
Type of Trade: Swing Trade
BONUS PLAY #3 Autobytel.Com Inc (NASDAQNM:ABTL)
Autobytel.com Inc. is an Internet site for new and pre-owned vehicle information and purchasing services. Through its Website, www.autobytel.com, consumers can research pricing, specifications and other information regarding new and pre-owned vehicles, and when consumers indicate they are ready to buy, they can be connected to Autobytel.com's network of over 2,700 participating dealers in North America. Autobytel.com also provides consumers with access to a broad range of services such as insurance, financing and leasing through its Web site. The Company's CyberStore allows consumers to search for a pre-owned vehicle according to the price, make, model, color, year and location of the vehicle, and the service locates and displays the descriptions, locations and actual photograph of all vehicles that satisfy the consumer's search parameters.
Stock Fans, Autobytel.Com released earnings on 1/27/00. Institutions own 92% of the available shares. Institutions bought an additional 13.9% last quarter. Float is 3.8 million so that means that there are about 304,000 shares available to trade. I feel this stock represents low risk here and the big boys are buying.
Key Indicators: ABTL
Buy Area:$11.75 to $12.00
TARGET:$13.20 to $13.80
Time Frame: 2 to 6 days
Type of Trade: Swing Trade
STOCKS ON OUR SCREENS TODAY:
GWRX - It should hold $32.00 today.
IWAV- One of Friday's Hot IPO's in HOT sector wireless field. I like $45.00 today
AOL- A buy under $60.00.
HGSI- Discovers protein blocking allergic reaction.
QCOM- China news is big. It may make 120 plus again today after it tests 110 off today's gap up.
CMGI - Look for a 10 point bounce higher
TWX- It should look for higher numbers this week.
NWRE-It may make 5.00 and hold it. It's news was on displaying LINUX based products at an upcoming show. Look for the real news to be how it's received $4.00 is solid support.
VRTL- It sold way off. It should again make 14.50 its own and settle into a trading range.
JWEB- It may see $32.00 today.
PCTL- It hold 7 well on increased volume
DSLN-Numbers today. Watch the volume on the stock and a $25.00 area into the close.
ISPD-It should follow DSLN
HSAC-The volume continues to build
ASFD-The stock is oversold it deserves a $13.00 price by weeks end.
CYBR-This stock may make $16.00 in next 2 days.
EWEB- The stock closed up in a NASDAQ sell off it may bounce back to 12.00 where it has resistance. If it breaks $12.00 it should find $14.00 plus.
Have a great day
More to come....
and BigPlayStocks.com Team of Pro Traders