The Play Of The Day
10-18-99 08:00 EST.
Good Morning Stock Fans!
Today's Play of The Day is: Sportsline USA (NASDAQ:SPLN)
The stock has sold down on less volume of late. What stuck out to me on Friday, a day when almost every stock on the NASDAQ exchange opened much lower. Sportsline USA (NASDAQ:SPLN) for the mist part held sever in a very narrow range of $25.43750-$26.1250. In this tight trading range the stock traded more volume then its 30 day average as it closed down $0.08750 at $26.00 even with volume of 425,000 shares. When a stock trades in a tight range on more volume usually means the stock is under accumulation and ready to go one way or the other. It looks to me with (NASDAQ:SPLN) trading over 50% off its March 99 high it would seem that (NASDAQ:SPLN) shares look to go higher from here.
One reason why the may go higher is this coming Wednesday Oct 20, 1999 Sportsline USA (NASDAQ:SPLN) is scheduled to report quarterly earnings. With (NASDAQ:SPLN) added auction area the fear of an NBA lockout out of the air this year, and (NASDAQ:SPLN) coming into an e-Commerce pre-Christmas Nov 1999 shares of (NASDAQ:SPLN) seem to be as good a bet as the New York Yankees making a repeat appearance in this years World Series an event that should even help shares of (NASDAQ:SPLN) get even more notice here.
Buy Area: $25.50- 26.$26.00
Sell Stop: $24.8750
TARGET: $29.1250-$30.8750 (1 to 2 days ahead of earnings coming Wednesday)!
RUN THE OPTIONS
Another way to play (NASDAQ:SPLN) to the upside, is the November 20.1999 $30.00 Call Options (Symbol:QSP-KF) Last Ask $1.56
BONUS PLAY: FAT BRAIN.com (NASDAQ:FATB)
Fat Brain.com (NASDAQ:FATB) reports news today! Vulcan Ventures, Inc. plans to invest in (NASDAQ:FATB) which has the Internet's most comprehensive bookstore for professionals. Vulcan Ventures, Inc., the investment organization of Paul G. Allen, announced today that it has singed a definitive agreement to invest an additional $20 million in Fatbrain.com (NASDAQ:FATB) to help fuel its e-Commerce initiatives, including eMatter, the Internet's first secure digital publishing platform.
Remember what happened 2 weeks ago to shares of RCN Corp (NASDAQ:RCNC) ran for 3 days after Paul Allen's Company made plans to invest. I will look to enter shares of (NASDAQ:FATB) on any weakness. As this stock may indeed look to run higher off it gap up already coming this morning.
TARGET: $28.1250-29.8750) (1 to 3 days)
STOCK TO WATCH: EGGHEAD SOFTWARE
Stock Fans! I profiled this stock in early September 1999. It has really broken out since then and looks to open even higher today. It traded pretty flat for the most part on Friday. However about 2:30 PM EST (90 minutes ahead of Friday's close) Egghead Software (NASDAQ:EGGS) on no news I could find exploded up more then $2.00 at one point to close just under $12.00 on 4 times its current 30 day average volume.
This stock has been known to make big runs in the past. It went as high as $37.00 last November, as it is a perfect e-Commerce pre-Christmas Internet play. Last fall (NASDAQ:EGGS) took its business then brisk and motor to completely cyberspace. It may very well have big news coming ahead of this run up. With no news on the move yet I will look to play it even more to the upside as it should run even higher!
Sell Stop: $10.43750
TARGET: $13.1250-14.1250 (1 to 3 days)
* Watch shares of Cyberian Outpost (NASDAQ:COOL) as it has been known to run in tandem with (NASDAQ:EGGS) in the past.
** Also Watch shares of Internet Investment Firm (NASDAQ:WCAP) as it owns about 33% of (NASDAQ:EGGS). It might well get a nice move off of (NASDAQ:EGGS) as it is beaten down of late.
RECENT IPO WATCH: Webstakes (NASDAQ:IWIN)
This IPO went public in late September 1999. It lost its underwritten price and still is trading very low. Today Bear Sterns has come out and inciated a BUY rating on shares of Webstakes (NASDAQ:IWIN). It should run today right off the open. I will look to make 2-3 points on it. More if it runs on BIG VOLUME. As always VOLUME will be the key on this one!
Have a great day!
More to come...