The Play Of The Day
December 30, 1999
07:03 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: America Online (NYSE :AOL)
Stock Fans, you don't need a description for the Online Giant (NYSE:AOL). You all know by now what it is they do. Perhaps we should say what they don't do in the Internet World, It would make it a lot easier. (NYSE:AOL) seems to these days have its hands in every sector of the Internet World.
We called (NYSE:AOL) here at BigPlayStocks.com to test $80.00 about 10 days ago. Well, we got our wish it more then tested 80.00 as the Option Puts were big winners for us. Why the recent pullback in (NYSE:AOL)? It has a tendency as history states to be a stock that a great many investors in for the shorter term and fund mangers bail out of at year end and book profits for yet another big year that saw AOL gain more then 200% and split 2 times, on (NYSE:AOL) The stock again looks ready to move up to perhaps as high as 90.00 after being completely oversold recently.
Looking at (NYSE:AOL')'s stochastics, (a timing indicator) they show that AOL is oversold and turning up. The closing price is now at its 13 day moving average. Holiday sales will be at record levels. Earnings season is only a couple of weeks away. I am buying this to position myself for a millennium / January effect/earnings play. I expect AOL to roar as high as maybe even $90.00 as soon as Jan 6, 2000. Look for the Y2K fear to end and to have this stock yet again be pasted all over CNBC's screen as it should make that move back to nearly $90.00 over the next 7 days of trading. With the NYSE and the NASDAQ at all time highs it is again time for the NYSE highest volume stock, hence the most "popular" in 1999. THE KING of The Internet! AOL gets in on the fun!
KEY INDICATORS: (NYSE :AOL)
Buy Area: $76.6250-$78.1250
Sell Stop: $74.25
TARGET: $85.80 to $89.70
Time Frame: 2 to 7 days
Type of Trade: Swing Trade
"RUN THE OPTIONS!"
The Option Calls to play of what looks to be an AOL move to perhaps $90.00 are the January 2000 $90.00 Call Options.
Bonus Play #1 Aether Systems, Inc (NASDAQ:AETH)
Aether Systems, Inc. NASDAQ:AETH), provides wireless data services and systems enabling people to use wireless handheld devices for real-time data communications and transactions, with an initial focus on the financial services industry, including online trading. Aether Systems made a big move yesterday on the announcement of a deal with Phone.com. I will be taking a 50% position and adding as it moves its way up.
SAN FRANCISCO, Dec. 29 (Reuters) - Aether Systems Inc. (NasdaqNM:AETH - news), a maker of wireless data technology for large businesses, said on Wednesday it will develop applications in alliance with Phone.com Inc. to deliver Internet-based wireless data services, sending shares of both companies higher.
KEY INDICATORS: (NASDAQ:AETH)
Buy Area: $67.575 to 68.00
Sell Stop: $64.07
Time Frame: 2 to 7 days
Type of Trade: Swing Trade
BONUS PLAY #2 Verio (NASDAQ:VRIO)
Verio, Inc. (VRIO) is a national provider of Internet services to small and medium-sized businesses. The company provides its customers with the telecommunications circuits that permit Internet access and also hosts their web sites. Verio has been acquiring regional providers and now has more than 190 points of presence in the U.S. It presently hosts about 265,000 sites in some 170 countries. Customers include General Electric, Microsoft, Princeton University and Ziff-Davis.
The stock is up about 40 percent so far in the fourth quarter, but the ride has been volatile. Essentially, prices have moved up through a positive trading channel. They have been under some recent pressure, but appear to have been supported by the lower trading channel boundary. This is generally a bullish sign, suggesting subsequent upward movement. With its acquisitions, Verio's earnings numbers are still in the minus column. However, it beat Wall Street earnings expectations in each of the first three quarters this year and analysts anticipate improved earnings going into next year. A total of twenty brokerage houses follow the stock. Eleven "strong buys", eight "moderate buys" and a "hold" have been issued. Over the past 52 weeks, the stock has traded in the range $10.50 - $55.6250. The shares closed on Wednesday at $43.93750. The stock looks very much like it will make a run towards $50.00 from current levels.
KEY INDICATORS: (NASDAQ:VRIO)
Buy Area $42.93750-43.6250
Sell Stop: $39.6250
Time Frame: 1 to 5 days
Type of Trade: Swing Trade
SECTOR TO WATCH IN EARLY 2000: HD TV & SET TOP BOX MAKERS MANUFACTURES & SUPPLIERS:
Living in America's Heartland as I have all my life. Its a place that (still has yet to make high speed internet access avialible in many areas) can be at times like living in the dark ages of today's technology. However Time Warner Cable a division of Time Warner is set to begin broadcasting in HD TV coming in early 2000 right here in the Dairy State. Stock Fans, if we are going have it here in the cow pasture laden country of Wisconsin then I am going to go out on a limb and say that the rest of the US already has it or is going have it real soon. This new technology is going to be very hot! in 2000. Many Americans will take some of there big returns on stocks in 1999 and go out and buy themselves an HD TV. Look for the following stocks to really get a shot in the arm to the upside as this exiting new technology outdates Americans most popular electrical appliance over the past 50 years the old favorite the Television.
OPTV, WINK, GS, IATV, TIVO, VDAT, SFA, TWX, SRCM, ICCI
WINK - This one has had low volume of late under 100,000 the past few days. However it could get hot fast off the recent explosion on AITV. We will keep an eye on it.
Stock Fans! Help the TEAM here at BigPlayStocks.com. If you know of any other stocks in this extremely hot sector send them my way! e-Mail address email@example.com. Thanks in advance.
SECTOR TO WATCH AGAIN TODAY: SECONDARY ONLINE BROKERS
As we have been saying here at BigPlayStocks.com for the past 10 days the numbers that the online brokers should be reporting starting in mid January 2000 should be stellar due to the huge volume the NASDAQ market has traded for more then 2 months now.
(NASDAQ:SCH) started the movement yesterday as it said it is going to easily have its biggest quater ever. Look for the secondary online brokers to follow suit over the next few days and move up as they should also be reporting big 4Q numbers. The players to watch in this sector are again as follows.
NDB, JBOH, SWS, SIEB, DIR, TWRS, WITC
STOCKS ON OUR SCREENS TODAY:
IATV - Recent "Play of The Day!" find $50.00 in pre market! a $12.00 plus move in 3 days!
IDC- Sago ( one of our professional traders our our staff) found it late in the day at 30.00 it was trading as high as $50.00 in after hours. a QCOM Play!
QCOM - $700.00 plus today?
ITRA- $85.00 price Target. Hot e-Comm B2B play.
PILT - Stayed in postive territory all day and closed at its high
ODIS - Stock on yesterday's screen powered foward today
IMAA- May have been oversold on close.
OMKT- Closed at high of day.
NSIT- Looks solid at current levels.
FIBR -$60.00 looks close
NTRX - NTRX/OPEN deal is done. NTRX should move into 20's soon
ERTS -Christmas sales were huge. Look for it to make a move.
TOY- Toy R Us overtakes Etoys for top toy site in Nov, Dec 1999. TOY looks overold look for it to make a move
TMCS- Yahoo's top ticket site in 1999. made a big run in January 1999 to $80.00 plus
MSGI - Looks to be setting up for news.
CNS- Recent Alliance with Denver's BrainPlay.com May make it the top toy player.
CNCX - It may make another move back into 30's soon.
Have a great day!
and BigPlayStocks.com Team of Traders