The Play Of The Day
Monday, December 6, 1999
12:01 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: International FiberCom (NASDAQ:IFCI)
International FiberCom (NASDAQ:IFCI) is a leading provider of a wide range of engineering, development and maintenance services for fiber-optic, broadband networks, public telephone networks, local and wide area networks, and specialized wireless applications.
With a number of recent strategic acquisitions that complement and enhance existing services and products, International FiberCom has positioned itself as a "one-stop shop" for the telecom and cable TV industries.
This past Friday, December 3, 1999, about 25 mins before the close International FiberCom (NASDAQ:IFCI) broke up and out of a narrow trading range of under $7.3750 where it had traded for more then 200 days, hence breaking its 200 day moving average in the process. (When a stock breaks its 200 day moving average it considered a very bullish move) This sudden move to the upside was spurred on by out of the ordinary volume of 625,000 more then double its normal 301,000 30 day average trading volume.
The move on Friday into the close was more then (10%) rise that at one point took shares of (NASDAQ:IFCI) as high as $7.6250, up nearly a point in Friday's session, a place it had not traded at since mid May 1999. Looking at its trading chart we see that (NASDAQ:IFCI) in the past once it has cleared $7.50 it found its way to $9.50.
With the rise of so many DSL stocks and networking stocks having what seem to be those magic words "Fiber" in them we might be ahead of the crowd on the upcoming move that this stock is getting ready to make. The added volume on Friday and the major break through of resistance are perhaps to major indicators that could very well push shares of (NASDAQ:IFCI) over 10.00 a share sooner then later.
This play sets up well for us in that it fits our criteria of having liquidity (popularity) or volume. It also has LOW RISK here with as long as we take advantage of our ability to use and place sell stops then we look to have a perfect opportunity to take advantage of a tremendous amount of potential to move even more to the upside or HIGH REWARD.
Today we will look to get 75% of our normal position near the top of the buy area suggested and the other 25% near the middle or bottom of the buy area suggested. Listed below are out KEY INDICATORS for this trade.
Buy Area: $7.1250-7.6250
Sell Stop: $6.75
TARGET: $9.1250- $9.50 plus
Time Frame: 1 to 7 days
Type of Trade: *Swing Trade (*3 days to 3 weeks)
BONUS PLAY #1 CYBERGOLD (NASDAQ:CGLD)
Cybergold (NASDAQ:CGLD) is a leading provider of Internet-based direct marketing and advertising solutions, including incentive programs which reward consumers with cash for responding to ads and programs. Cybergold's (NASDAQ:CGLD) more than 3.5 million members can spend their cash rewards online at "Cybergold Spend" or at the site of more than 50 merchants who have adopted Cybergold's micropayment technology. For more information, visit www.cybergold.com
Stock Fans! This stock is looking great right now for a few different reasons. First it just released news.
Cybergold launches Cash -Back Shopping; 60 Name-Brand Merchants Become Part of Cybergold's Shopping Site
OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 23, 1999--Now, anyone on the Internet can earn instant cash rebates of up to 10% from 60 name-brand merchants such as L.L. Bean, Lands' End, Toys "R" Us, JCPenney and Dell Computer at www.cybergold.com -- just in time for the holidays. Cybergold, Inc. (NASDAQ:CGLD) announces the latest addition to its Earn & Spend(TM) community: Cybergold Plaza(TM
This recent new release is very KEY in that it highlights the "just in time for holidays." As well as noting some of the "Who's Who" with online retailers (e-Commerce Christmas).
Second the stock has made some nice move already off this news taking shares out of a rather narrow trading range of $8.50 to as high this past Friday as $9.43750 up more then $1.00 before it closed at $9.25 up (15/16) on increased volume of 765,000 shares trading more then 50% more then its normal 30 day trading daily average volume of 481,000 shares.
Third this stock trading chart has created almost a perfect "bowl pattern" This particular chart formation usually points out a very bullish move is coming as the stock finds almost exact moves as it had on the way down off its all time high of $12.50 to the low it experienced at just over $8.00. The pattern points out the sellers of this stock are now gone and many new investors are starting to come back into the stock just as the press release said on November 23, 1999, "just in time for the holiday's" Hopefully in time for us to take advantage of the almost certain upcoming move to the $12.50 area sooner then later. With Christmas time as this stocks most trafficked time sales will be up and with its traffic already being in the top 10 of all most frequently surfed site we may just have a gem here that is truly "Golden"
Buy Area: $9.1250-$9.50
Sell Stop: $7.93750
TARGET: $11.93750 -$12.50 plus (Over $12.50 new all time high)
Time Frame: 2 to 5 days
Type of Trade: Swing Trade
BONUS PLAY #2 Marketing Services Group (NASDAQ:MSGI)
Marketing Services Group (NASDAQ:MSGI) is a leader in the Internet and marketing services industries. (NASDAQ:MSGI) revenues have grown from $16 million in fiscal 1996 to in excess of $100 million on an annualized basis. GE Capital (NYSE:GE) is the owner of an 18 percent stockholder position in (NASDAQ:MSGI) and (NASDAQ:CMGI) is the owner of a 10 percent stockholder position in (NASDAQ:MSGI)
(NASDAQ:MSGI) is organized into two business divisions: The Internet Group and The Direct Group. The Internet Group's mission is to acquire, invest in and incubate Internet companies. Its preliminary focus is on WiredEmpire, and its Marketing Agent technology. (NASDAQ:MSGI) plans to expand into other strategic areas. The Internet Group provides Internet marketing, e-commerce applications, Web development and hosting, online ad sales and consulting. The Direct Group provides strategic planning, direct marketing, database marketing, telemarketing, telefundraising, media planning and buying.
This stock started a big run to the upside when it released on November 18, 1999, that it had inked a Multiyear deal that Subsidiary, Metro Direct GE Service Management, a subsidiary of General Electric Company (NYSE:GE) has agreed to an exclusive four year database management engagement with its subsidiary, Metro Direct.
That news was good enough to send the stock flying from about $16.50 on enormous 2 day volume that took it as high as $23.00 a share, up in less then 2 day more then $6.00 or an increase of (39%). Since that time leading up to this past Friday, December 5, 1999. The stock had sold down on LESS VOLUME to drop as low as 16.50 a place where it has had very strong support in the past to go as high as 18.25 on increased volume of more then 600,000 shares considerably more then its past 10 days trading average volume.
(NASDAQ:MSGI) looks as if it has now tested its recent lows at 16.50 and passed the test. The company is no different then when the news with GE Capital broke. The stock now looks to have cleaned out its sellers and looks very attractive with LOW RISK at current levels with a REWARD that could and should as indicators point out take this stock back to that $20.00 plus level shortly.
Buy Area: $16.6250-$17.1250
Sell Stop: $16.3750
Time Frame: 2 to 8 days
Type of Trade: Swing Trade
RUN THE OPTIONS
To take advantage of this move via options the ones to look at here are:
The December $20.00 December 1999 Option Calls.
STOCK TO WATCH: ONSALE/Egghead.com (NASDAQ:EGGSD)
This stock we played from 18.50 to as high as 28 plus last month as part of our "e-Commerce Christmas Stocks." The stock since that move found its way back down to go as low as 17.1250 a place where it found very solid support and "bounced" off of going back up into the 18.50 area where we chose it last time. The move coming this past Friday, December 3, 1999 was one that saw (NASDAQ:EGGSD) until late in the day pile on volume of over 1.5 million shares as it traded in a very tight trading range one that it was in ahead of the move that took it to 28 plus last time. The stock into the close made a move on all that volume piling up as it would close near its high of $18.8750 at 18.56250 on more then 500,000 more shares then its normal 30 day trading average.
Onsale/Egghead.com (NASDAQ:EGGSD) will very shortly be changing back to the old symbol of (NASDAQ:EGGS) upcoming this week this added press and publicity to the change along with the move back on the increased volume Friday presents us with information that more good news may be coming on this stock. It after all is now 2 very solid and well known (TV advertised) .com e-Commerce names. We could get a news release anytime on this one that could send shares flying again back to that upper 20's area.
Buy Area: $18.1250-$18.43750
Sell Stop: $16.93750
Time Frame: 1 to 8 days
Type of Trade: Swing Trade
RUN THE OPTIONS
The Options that correspond with (NASDAQ:EGGSD) are the
December 1999 $25.00 Option Calls. The December 1999 30.00 Option Calls "out of the money" currently have volume as well
ON CNBC's "Squawk Box" Today Cdnow (NASDAQ:CDNW)
(NASDAQ:CDNW) continues to be in the top 5 for traffic over the holiday's. It also is a leading seller of online Compact Disc sales. With the CEO on CNBC this AM we may well see this stock continue a move that we have taken advantage of that has taken it from the high single digits all the way to $17.00 plus
STOCKS ON OUR SCREENS TODAY
NSTAF-Stock has been moving up on speculation over upcoming news. It may move further over the coming trading sessions. (This stock is not a momentum play)
Have a great day!
More to come...
and BIGPLAYSTOCKS.com TEAM of TRADERS