The Play Of The Day
10-21-99 08:33 EST.
Good Morning Stock Fans!
Today's Play of The Day is: US Web Corp. (NASDAQ:USWB)
Stock Fans, as the NASDAQ Market rallied all day yesterday after Microsoft (NASDAQ:MSFT) reported stellar number because of what its company representatives called "Awesome demand for PC's!" On that the NASDAQ rallied big time yesterday as it took almost all of the Internet Stocks higher.
However (NASDAQ:USWB) lagged behind the crowd as it held serve most of the day at even until about 90 mins ahead of the close when it saw a volume increase of more then 45%. That huge increase volume drove shares of (NASDAQ:USWB) up over $3.50 points above it open of $29.3125 as it ran right into the close finishing just of its high of day at $32.21 on volume of over 2 million shares.
Yesterday after the close (NYSE:IBM) reported in line earnings, but then said it sees Y2K worries already slowing its growth and its earnings down for the rest of the year and into the first few months of next year. (NYSE:IBM) will be the culprit that will cause shares of (NASDAQ:USWB) as well as the entire NASDAQ Market to open lower today.
With that in mind shares of (NASDAQ:USWB) will open lower today and then sell off somewhat form there. I will be looking for shares of (NASDAQ:USWB) to have a nice bounce off the $30.1250 -- $30.50 area and then move higher form there. (NASDAQ:USWB) will be reporting its 3rd quater earnings this coming Monday, October 24, 1999, about 15 minutes after Monday's close. I am looking for them to be good and see today as a great place to look to buy shares of (NASDAQ:USWB) ahead of the run it looks to make into earnings. If volume stays high on (NASDAQ:USWB) it is possible for it to find its way to just under 40.00 over the next 3 trading days.
Buy Area: $30.1250-$30.50
Sell Stop: $28.3750
TARGET: $37.50-$40.00 (3 to 5 days)
"RUN THE OPTIONS!"
The options to play are the November 20, 1999 $35.00 Call Options
BONUS PLAY #1 Cross Roads Systems (NASDAQ:CRDS)
(NYSE:IBM) will surely bring the Techs, and Internets down right off the open today after it warned investors that it is starting to see a slowdown due to Y2K worries. However this stock (NASDAQ:CRDS) that went public yesterday will still be very hot today!
Cross Roads Systems (NASDAQ:CRDS) is the leading provider of storage routers for storage area networks, or SANs. There storage routers interconnect servers and storage systems in a Fibre Channel. SAN to more effectively and efficiently store, manage and ensure the integrity and availability of data. The SAN is a high speed network that facilitates communication among servers and storage systems using a high performance data transmission protocol known as Fibre Channel.
In other words it falls in to the category of a "Web Plumber" (Builders of the Internet) It has many similarities with the extremely successful IPO (NASDAQ:BRCD) that went public in early May 1999 at $18.00 and has gone as high as $259.50 since. Investors saw the SYSTEMS in (NASDAQ:CRDS) name yesterday and immediately related it to (NASDAQ:CSCO) and (NASDAQ:BRCD) that in turn sent the stock flying as it after opening at $38.1250 went as high as $85.81250 before it closed at $78.71 on huge volume.
Today I will be looking for shares of (NASDAQ:CRDS) to open lower along with the rest of the NASDAQ Market, in light of (NYSE:IBM) problems. I don't think a down market is going hold back shares of (NASDAQ:CRDS) today once they start running. I am looking for that to happen around 10:15 AM EST. Here our my Key Indicators.
With IBM causing us to open lower today I may look to buy (NASDAQ:CRDS) right off the open today if I see it is in the high 60's to low 70's range. I will try to follow the Key Indicators below.
Buy Area: $68.00-$74.50
Sell Stop: $64.93750
TARGET: $98.50 - $100.00 + (perhaps today)!
BONUS PLAY # 2 ANCOR Communications (NASDAQ:ANCR)
Yesterday couldn't have been better for shareholders of (NASDAQ:ANCR). Its 3rd quarter earnings report included record numbers in both growth and profit per share. It was then lucky enough to have the IPO I mentioned above (NASDAQ:CRDS) to go public the same day. The unbelievably popular (NASDAQ:CRDS) yesterday's scorching IPO and (NASDAQ:ANCR) are in the same business of supplying switches for SANS using FIBR Channel.
As soon as investors saw that (NASDAQ:ANCR) was in the same business as (NASDAQ:CRDS) they began buying shares of (NASDAQ:ANCR) up in volume as it would see trading volume of over 4 million shares as it went up more then 8 at one point taking this 23.00 dollar stock as high as 30.00 plus yesterday before it cooled of and closed at $28.3750 still up almost $5.00
Today as interest in (NASDAQ:CRDS) should continue today I am looking for (NASDAQ:ANCR) which had news of a nice contract to supply switches on the close yesterday to again see big volume today. It will as with everything else on the NASDAQ Market open lower today but then It should see big volume again as it looks to trade higher on the momentum of (NASDAQ:CRDS)
Buy Area: $26.1250-26.50
Sell Stop: $24.93750
TARGET: $30.1250-$33.50 (perhaps today)
RUN THE OPTIONS!
the options for this play are: November 20, 1999 $30.00 Call Options
STOCK TO WATCH: Backweb Technologies (NASDAQ:BWEB)
This company just this morning reported earnings. They were to say the least "Stellar!" The 3rd quarter reported was a 5 cent loss as opposed to a 7 cent loss that First Call analysts were looking for. Its revue growth for the same quarter reported was 156% increase. It also added 26 companies to its Global Customer list in the quarter. Look for this stock to move right off the open today as on those numbers should buck the trend that (NYSE:IBM) has created.
Buy Area: $18.93750-$19.25
Sell Stop: $17.1250
Have a great day!
More to come...