The Play Of The Day
10-07-99 08:02 EST.
Good Morning Stock Fans!
Today's Play of The Day is: The Sharper Image (NASDAQ:SHRP)
About The Sharper Image
The Sharper Image (NASDAQ:SHRP) is a specialty retailer that is nationally and internationally renowned as a leading source of new, innovative high-quality products that make life easier and more enjoyable. A significant and growing proportion of sales are of proprietary products created by the Company's product development division, Sharper Image Design.
The Sharper Image (NASDAQ:SHRP) operates more than 85 stores throughout the United States and mails millions of its award-winning catalogs each month. Additionally, the Company's products may be purchased online via its online store at sharperimage.com.
Stock Fans! We have had great luck playing stocks that CNBC has been profiling all week as its popular Power Lunch has been on the West coast featuring high tech stocks. A few of the names that have flourished being on CNBC's Power lunch this week have been EELN, EFAX , CPTH, EGRP. All of the for mentioned stocks have gained in volume and in share price at least $2.00 since they have been on CNBC' Power Lunch this week.
Today CNBC continues it week long Power Lunch renamed this week as "Power Brunch" because of the difference in time form the East coast and west coast time zones, with an in depth look at Shaper Image (NASDAQ:SHRP) This stock has been in a nice uptrend for about a week now since it broke up and over double digits to $10.00 plus a share. It looked to be gearing up for today's CNBC in depth look yesterday as late in the day it more then doubled its 30 day average volume of just 77,000 shares to trade 162,300 shares on its way to a closing price of $12.50 up $0.75 form yesterday's close of $11.75
Today l will be looking for The Sharper Image (NASDAQ:SHRP) to start moving up on increased volume, as CNBC continues to mention it's name right up until about 11:30 AM to Noon EST today about the time that CNBC should be featuring The Sharper Image. With The Shaper Image CEO himself on the air today showing some of the neat new products that The Shaper Image (NASDAQ:SHRP) is unveiling for this years Christmas The Shaper Image (NASDAQ:SHRP) shoal get a nice move in share price today. This stock was over $20.00 a share in late 1998 as it ran up on optimism of bigger then expected Christmas 1998 sales. It then backed that optimism up with stellar 4th Quarter numbers following Christmas 1998. The biggest reason for it falling off since then has been the fact that the bulk of its business comes during Christmas time. With some of the huge move we have already seen in many Etailers that are forecasted to have a big Christmas this year such as E-toys (NASDAQ:ETYS), (up more then 10.00 yesterday.) and AMAZON (NASDAQ:AMZN) I am looking for CNBC to get shares of The Shaper Image (NASDAQ:SHRP) to follow starting today.
Buy Area: $12.3750-$12.6250
Sell Stop: $11.93750
TARGET: $13.75-$15.00 (could be today!)
BONUS PLAY: Concentric Networks (NASDAQ:CNCX)
Stock Fans! I have ti feature this stock today as a BONUS PLAY, because I know it so well! I received many emails on (NASDAQ:CNCX) yesterday asking why it was struggling so much as it dipped more then $1.00 in the midst of a NASDAQ Rally.
In taking a look at (NASDAQ:CNCX) I saw as well as many of you did yesterday that it had huge volume. It also hit its 90 day low on the ask side right on the dot at $16.68750. The fact that this happened on so much volume yesterday 3 million shares more then 2 times its 30 day average tells me that this stock has now tested it low and held. What backs this theory up is the fact that it found its way back up to over $17.00 dollars a share on close.
I believe that one of the biggest reasons for the sharp decline in shares of NASDAQ:CNCX) of late have been due to its many acquisitions. The biggest being the well known web hosting company 9 Net Avenue of which it paid 54 million to get. Acquisitions such as this that will indeed make (NASDAQ:CNCX) a stronger company in the future tend to be seen by investors as hurting the stock right now. This will end soon and shares of (NASDAQ:CNCX) will again rise on optimism of the future of (NASDAQ:CNCX) being better because of the acquisitions.
I believe yesterday we saw the low in shares of (NASDAQ:CNCX) as it hit bottom at $16.68750. The volume after that proved to me that investors no matter what will pay more then 16.50 for shares of (NASDAQ:CNCX). Remember that the last time (NASDAQ:CNCX) was at this price was on August 10, 1999. It then just 4 trading days later hit $26.50 a share. I am not saying that happens again. However I am saying that shares of (NASDAQ:CNCX) go up from here.
Buy Area: $17.06250-$17.25
Sell Stop: $16.50
TARGET: $22.1250-$24.00 ( 3 to 10 days)
Congrats Today to all of those that followed me into shares of (NASDAQ:MFNX) last week. Today's news of Bell Atlantic announcing a strategic alliance with (NASDAQ:MFNX) as well as a 1.7 billion dollar investment has shares of (NASDAQ:MFNX) trading up over 5.00 in pre market today! Keep a watch on it to go even higher before it retraces recent gains!
Have a great day!
More to come...