The Play Of The Day
January 5, 2000
08:51 AM EST.
Good Morning Stock Fans!
"WHERE DO WE GO FROM HERE?"
With yesterday's sell off on the NASDAQ it looks as if we may test 3,850 an area we last found intra day on the NASDAQ about 30 days ago. Some analysts are looking for the NASDAQ to fall to 3,800 before it finds support. With still others looking for 3,681 a 1/3 retracement of the October's gains.
Stock Fans, one thing is certain for today the selling will create buying ranges as stocks sell off, we should have bottom fishers coming back into the market. Yes, we should be aware of interest rate worries in February. It looks very much like we will get a .25 increase. We will look to find low risk value plays today, as well as the usual short term plays that run on momentum caused by news, or upcoming news. We are looking for 3,850 as a place for this market to bounce today. About 70 more points down today is where we predict a bounce will occur.
Today's Play of The Day is: Aldephia Communications (NASDAQ:ABIZ)
Founded in 1952 in Coudersport, Pa., Adelphia Communications today is the nation's fifth largest cable television provider, now serving approximately 5.3 million cable subscribers. In recent years, Adelphia has evolved from solely being a cable television company to become a full-service telecommunications provider. The company offers its own brand of expanded programming options, high-speed Internet access, telephone service, personal paging, and home and business security service. The organization combines new technologies with an unwavering commitment to courteous, professional customer care and active involvement in community affairs.
Adephia also operates Adelphia Business Solutions a majority owned subsidiary of Adelphia Communications Corp., providing integrated communications services to business customers through its state-of-the-art fiber optic communications network. This fully redundant, 30,000-mile long-haul fiber optic network will support the Company's full line of communication service offerings, including local and long distance voice services, messaging, high-speed data and internet services. For more information on Adelphia Business Solutions (NASDAQ:ABIZ) visit the company's web site at www.adelphia-abs.net.
This stock has been talked about of late by a great many fund mangers as both a value play and a growth play. It lost some ground yesterday dropping $3.00 on volume of just under 700,000 shares. The stock looks to have created its first area of support at $46.50, an area where it bounced yesterday. It looks as if in this market, and in light of our for mentioned anticipated drop on the NASDAQ to 3,850. The stock looks as if it is a good buy at $45.1250 today. It has good support at $44.75 and should hold that area today. It looks as if (NASDAQ:ABIZ) will have plenty of buyers at those levels as it will then be almost 10.00 off its all time high and ready to get half of that back in perhaps as soon as this week.
KEY INDICATORS: ABIZ
Buy Area: $44.93750-$45.25
Sell Stop: $44.3750
Time Frame: 3 days
Type of Trade: Swing Trade
BONUS PLAY: TALK.COM (NASDAQ:TALK)
Talk.com is the industry leader in telecommunications that uniquely taps the reach and efficiency of the Internet to market its telecom services and to support its customers. Monthly phone costs are billed automatically via credit card, and billing records are available online in "real-time," allowing consumer and business users to closely monitor telecom charges. In August of this year, Talk.com was ranked as one of the highest in customer satisfaction by J.D. Power and Associates, the global leader in quality and satisfaction measurements. Talk.com broke new ground when it signed its marketing agreement with America Online (NYSE:AOL) and further established its leadership position through marketing partnerships with other prominent entities, including Prodigy, Wired Digital, Metris, E*Trade, DSI and Compuserve.
The reason for choosing this stock today as a BONUS PLAY, is quite simple. It looks to have found its low at current levels. Yesterday it fell almost 1.00 as it lost $17.00. The stock should drop to about 15.50 today as it had a break out on news at that area about 10 days ago. The stock should have an abundance of buyers right at that area today as it finds support. Based on yesterday's drop in share price and volume of over 1,200,000. The stock should make a low risk play at that level. It has tested the $15.50 area in the past and had buyers in volume, when it did. We will look to get in this one right after the sellers have exited today. We should get a nice move upward as buyers come back in this quality up and coming stock.
KEY INDICATORS: TALK
Buy Area: $15.75-$16.1250
Sell Stop: $15.43750
Time Frame: 2 days
Type of Trade: SwingTrade
RECENT IPO TO WATCH TODAY: TrueTIme, INC (NASDAQ:TRUE)
TrueTime, Inc. (NASDAQ:TRUE) designs, develops, manufactures, and markets precision time and electrical signal-generating (frequency) products that are essential components used in many technology-based markets. Products include precise time and frequency products, computer plug-in cards, computer network time servers, time code products, and time displays.
This stock cam on late in the day yesterday. In the midst of a 229 plus drop it managed to find 11.00 and close at $11.1250 on decent volume of almost 600,000 shares. This recent IPO may have been overlooked up till now. It will be coming out of its quiet period shortly. It looks very much like the stock wants to go higher ahead of it ending its quiet period. We will look for this one to retrace some of its gains today and have buyers just over $10.25 today
Buy Area: $10.25-$10.43750
Sell Stop: $9.00
Time Frame: 6 days
Type of Trade: Swing Trade
STOCK TO WATCH OFF TODAY'S OPEN:
A STOCK THAT HELD UP WELL IN YESTERDAY'S NASDAQ SELLOFF!
The biggest reason why the tech heavy NASDAQ sold off yesterday was investors of all type from the big institutional investor to the small types that were responsible for helping the NASDAQ to all time highs (closing 1999 up more then 80%, easily a record) sold off their big gains yesterday because they will not be taxed on them in 2000. With that in mind the sell off yesterday was all and all healthy for the market. It just proves that what goes up comes down even faster as we dropped almost 230 points on the close. The NASDAQ markets 8th biggest percentage loss and biggest point loss of all time.
However, some stocks didn't have QCOM or CMGI or YHOO type gains for investors to take. Therefore they did loose some of their value but not nearly what some of the high flyers did.
Below is a list of what look to be value plays on today's NASDAQ. With sellers gone they look to hold at current prices. Then when the rest of the market's higher flyer more popular stock come back off the bottom. The 4 stocks listed below should move higher today.
AREA OF SUPPORT:
STOCKS ON OUR SCREENS TODAY:
ARIA- had news in after hours yesterday. Receiving 40 mill in cash for selling an area of its business
VFND-Closed near its high yesterday.
ADSP-We spotted this one yesterday at about 9.25. It went as high as $11.25. It fought all day to get $10.00 back, and closed strong at $10.1250. It may move further today.
WWFE-Has entered in to a marketing pact with XACT today.
STMP - Upgraded today.
ESTM - Watch it off STMP upgrade.
PFSW- Recent IPO almost out of its quiet period
XPDR - almost out of its quiet period
Have a great day!
More to come....
and BigPlayStocks.com and Team of Traders