The Play Of The Day
10-29-99 08:22 EST.
Good Morning Stock Fans!
Today's Play of The Day is: RARE MEDIUM (NASDAQ:RRRR)
About: Rare Medium (NASDAQ:RRRR)
Rare Medium (NASDAQ:RRRR), www.raremedium.com, a wholly-owned subsidiary of Rare Medium Group Inc., is an Internet solutions firm that helps clients develop e-Commerce Internet strategies, improve business processes, develop marketing communications, branding strategies and interactive content using Internet-based technologies and solutions.
This stock is scheduled to report earnings this coming Tuesday November 2, 1999. It looks as if it has already started to make a big run into them. (NASDAQ:RRRR) is no (NYSE:AOL) It is not known to run up into earnings. What really sticks out is the pattern that its trading chart has created of late as the stock traded 515,000 this past Tuesday. Then Wednesday the stock traded 518,000 shares, still under its 30 day average volume of 735,000.
However Yesterday the stock broke out on huge volume of more then 8 times its 30 day average as it traded over 4 million shares on its way to a 16% gain to close at 14.18750 its high of the day! It traded in a fairly narrow range on all that volume of $12.3750 to $14.18750. Today the stock is again called higher and looks as if it is going to continue to run up as all indicators point that way.
I am looking for the uptrend on this one to continue today. However with some of the market taking profits today off the open this stock should pull back on LESS VOLUME and drop to where its chart pattern is showing what is called in technical terms the highest bar on the bar graph. That area is $13.1250 an area the stock was trading at back on October 12, 1999, ironically enough the last time (NASDAQ:RRRR) traded over 1 million shares. After it holds that area it should then on MORE VOLUME go higher. The only way that a move like this can be explained with no news is there must be some coming to make this stock trade so much volume.
Buy Area: $13.25-$13.6250
Sell Stop: $11.8750
TARGET: $14.75-$15.93750 The chart shows that if it breaks $15.3750 on more volume the next stop could be as high as $19.00
TIME FRAME: 1 to 2 trading days!
BONUS PLAY: eSTAMP (NASDAQ:ESTM)
With its only competitor Stamps (NASDAQ:STMP) reporting less then adequate earnings following yesterday's close this stock may break out on what is for it good news. It also is a recent IPO that will soon be out of it quiet period. It is called up today and we may just see this one take (NASDAQ:STMP) misfortunes and make it a very positive move that will spell good things for (NASDAQ:ESTM) today as it may run. Watch the volume!
Buy Area: $23.25-$23.8750
Sell Stop: $21.8750
TIME FRAME: (1 to 10 todays)
STOCK TO WATCH: Sportsline USA (NASDAQ:SPLN)
This stock continues to go up on less volume but with bloc trading taking place. This stock is always a take over target. It was mentioned many times in the past with the likes of the already taken over (NASDAQ:PTVL). Sportsline USA (NASDAQ:SPLN) can make big moves in a hurry and if the options game has anything to do with it this stock is dying to make its way to over $45.00 a shares soon. It has an online auction area as well as e-Commerce of its own. With strategic alliances in place with the likes of (NASDAQ:AMZN), (NYSE:AOL), and (NASDAQ:ATHM) this stock is ready to get closer to its all time high reached in March 1999 of over $60.00!
Buy Area: $34.50-$35.1250
Sell Stop: $33.25
TIME FRAME: (3 days to 3 weeks)
RED HOT! IPO TO WATCH: AKAMAI TECHNOLOGIES (NASDAQ:AKAM)
Lead Underwriter: Morgan Stanley Dean Witter
Offering 8 million shares at $26.00 to be priced Thursday, October 28, 1999 to begin trading on the NASDAQ Market on Friday, October 29, 1999 under the symbol (NASDAQ:AKAM)
Anyone who has ever been frustrated waiting for their favorite web site to load, which probably includes every Internet user, will appreciate our IPO of the week, Akamai Technologies (NASDAQ:AKAM) The company has developed a proprietary set of algorithms which enables the firm to deliver bandwidth heavy content to end users at high speeds. The company's clients include some of the top sites on the web such as Yahoo! and Go Network and its partners include technology heavyweights Apple, Microsoft and Cisco. In addition, the company has a state of the art network spanning 24 countries so it can reach end users around the world. While the company is very young and just started generating revenue, it has strong backers, top notch technology and a huge market opportunity.
*Stock Fans! I will be watching this one from my LIVE TRADING ROOM today! I will be sending out an email if I find a reasonable place to get on board this one still having room to the upside!
Watch your mail Today!
Have a great day!
More to come.....