The Play Of The Day
10-14-99 08:14 EST.
KEY INDICATOR for DOW Today. Watch shares of (NYSE:IBM). If it loses 105 and makes it way to 100 area that may jut be 10,000 and the bottom. Worth watching today.
Good Morning Stock Fans!
Today's Play of The Day is: VIXEL Corp. (NASDAQ:VIXL)
Vixel (NASDAQ:VIXL) provides SANs, or storage area networks, that are designed to interconnect computer systems and data storage devices. Research firm International Data Corp. expects that worldwide revenue from SAN products should grow to $13.3 billion in 2002 from $2.5 billion in 1998.
This type of growth and the fact that this recent IPO (NASDAQ:VIXL) is in the same area as the most successful IPO of year is thus far Brocade Communications Systems (NASDAQ:BRCD) going up over 400% since May 1999. This very hot area of providing Fibre Channel switching solutions for storage area networks, or SANs, which apply the benefits of a networked approach to the connection of storage systems and servers that the likes of (NASDAQ:BRCD) are in as well as (NASDAQ:VIXL) have much demand.
Investors have recently rewarded companies that have a foothold in relatively untapped, high-growth industries such as networking. Data storage is another sector that has attracted interest as data volume continues to grow as electronic commerce develops.
With (NASDAQ:VIXL) coming out of its quite period on October 24, 1999. We should see this stock bounce up here and go higher as investors look to get in on what should be some very nice gains over the next few trading days.
Buy Area: $
Sell Stop: $32.8750
TARGET: $41.00-46.50+ (1-3 days) $50.00 plus is possible if Volume get this one going.
BONUS PLAY: New Bridge Networks (NYSE:NN)
I like this stock off the bottom today. It went down this past Tuesday on the fact that Fidelity Investments shifted some of its investments for this quarter. That news that Fidelity was cutting its stake by 4% down to 5% from 9% took shares of (NYSE:NN) down more then $2.00 this past Tuesday. Shares of the stock appear to be oversold. It made a nice move to the upside yesterday at one point up more then $1.00. It would have gone higher I believe if it would have traded in a better market yesterday. I am looking for it to make a nice move off its the are it is currently trading at. I like it here as it is obviously oversold.
Buy Are: $22.1250- $23.1250
STOCK TO WATCH: Broad Base Software (NASDAQ:BBSW)
Another recent IPO of late that has had great interest almost everyday since it IPO about 2 weeks ago. It as well will be heading out of its quiet period in the next 8 trading days. It has created a nice chart with solid ranges. The fact that the interests on this one in the form of volume bodes well for it to continue to go higher as it heads out of quiet period.
Buy Area: $28.1250-29.50
Sell Stop: $25.43750
TARGET: $32.93750-$35.00 (2-8 days)
Have a great day!
More to come....