The Play Of The Day
Feb. 11, 2000
08:25 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: Elcom International (NASDAQ:ELCO)
Elcom International, Inc. (www.elcominternational.com), through its wholly-owned subsidiaries, develops, licenses, and uses Internet-based eProcurement systems including PECOS Internet Procurement Manager, elcom.com's remotely-hosted automated procurement system.
Yesterday (NASDAQ:ELCO) announced a deal with Digital River (NASDAQ:DRIV). The news sent shares of (NASDAQ:ELCO) up from a 30 day low of 21.00 to go as high as 25.00. The stock added on volume of over 1.8 million shares, about 45% more then normal in the last 15 days. The stock have a trading range of 21-25 closed impressively at the very top of that range. The stock seems to be acting as if there is more news to follow the (NASDAQ:DRIV) news. The CEO has entertained the idea of spinning off Elcom's eProcurement systems division. That division of Elcom's business is better known as a B2B play. If that happens then shares of (NASDAQ:ELCO) could very easily go up more then $10.00.
We will look to play this stock today exactly as its current range suggests. Its 30 day range is $21.00- $28.6250. It has created a solid area of support once it has cleared that area at $23.93750. The stock should open higher today then fall back and test that 23.93750 area. It should hold that area and then make it way back to its 30 day high of about $29.00 a share. If volume comes in and is over 6 million today it could easily find higher numbers.
KEY INDICATORS: ELCO
Time Frame: 1-5 days
Type of Trade: Swing Trade
"RUN THE OPTIONS!"
The options we like here are the Feb. $30.00 Option Calls.
BONUS PLAY #1: ^Friedman, Billings, Ramsey Group (NYSE:FBR)
Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) is a leading investment firm specializing in Internet technology and other selected industries. Headquartered in Northern Virginia, home to an array of leading global Internet companies, FBR is a provider of capital and financial expertise throughout a company's lifecycle. FBR's businesses include venture capital, investment banking, online financial services, and research on more than 430 companies. FBR has offices in Arlington and Reston, Va., London, Irvine, Ca., Boston, and Chicago. For more information, see www.fbr.com.
RECENT PRESS RELEASE REGARDING FBR's OWNERSHIP IN WEBM IPO:
ARLINGTON, Va., Feb. 7 /PRNewswire/ -- Friedman, Billings, Ramsey Group, Inc. (NYSE:FBR) today said that its managed venture capital fund, FBR Technology Venture Partners I, LP, owns 2,763,234 shares of webMethods, Inc.
FBR noted that its economic interest in the investments of its venture capital and private equity funds can vary based on a number of factors.
As announced in its fourth quarter earnings release and conference call of January 27, 2000, FBR generates gross revenues from venture capital funds in three ways: base management fees, a return on its principal invested, and a 20 percent carried interest in the gains of the funds.
webMethods is one of 21 venture capital investments listed in the press release that FBR's technology funds have made since 1997. FBR noted that it also has technology investments in two other private equity funds, in addition to warrants received in connection with its technology investment banking business.
As the above press release correctly explains. FBR does have an interest ownership in today;s extremely popular IPO WEBM. Yesterday, FBR's stock caught on with investors, and in turn its stock caught fire! It ran from $14.75 to go as high as $19.8750 before it closed at $17.25 in regular market trading of over 2 million shares. The stock then added on more then $3.75 more as WEBM IPO was priced in the early evening at an increased $35.00 a share. That sent shares of FBR to close at a 52 week high of $21.00.
Today the stock being a NYSE issue will most likely be indicated higher, and open perhaps as 30 minuets late today. We like this stock to pull back and retest that $17.00 area before it again should be extremely popular today as we all await WEBM open and then its run up after that. We compare this one a lot to the likes of IDTI the stock owning a percentage of QEDI IPO. We like FBR to make a move today perhaps as high as 30 after it retests that $17.00 area.
Those holding FBR- We will look to sell FBR op today's opening gap. Then get back in on the retrace.
KEY INDICATORS: FBR
Buy Area: $17.00-$18.00
Sell Stop: $16.25
TARGET: $27.50-$29.00 plus
Time Frame: 3 days
Type of Trade: Swing Trade
(^BPS.com already has a 1000 share position in FBR @$19.25)
"RUN THE OPTIONS!"
At present time Feb $25.00 Option Calls has not been created yet. We like the Feb $25.00 Option Calls as a play off FBR's predicted upcoming move as soon as they are created.
BONUS PLAY #2 Optika, Inc (NASDAQ:OPTK)
Optika Inc., formally Optika Imaging Systems, is a leading provider of business-to-business electronic commerce (e-commerce) solutions. In March 1998, the Company introduced Optika eMedia(TM), its 32-bit Web-based software solution that enables organizations with high transaction volumes to efficiently and inexpensively manage the high-volume flow of paper and electronic data associated with running today's businesses. Optika eMedia provides a solution beyond traditional imaging/computer output to laser disc (COLD)/workflow functionality by also offering multiple client interfaces and a scalable, extensible three-tier architecture. The Company also developed a fully integrated client/server imaging software suite called FilePower, which provided server software with core imaging functions, application software for document image management, COLD, automated workflow transaction processing and associated development tools.
Stock Fans, this stock has bullish candles. Volume is exploding and this company's float is a paltry 2.1 million. Institutions own 64% of that. Optika had great news and I look for this to continue higher.
Optika First to Fill Critical Void in B2B Market
Key Indicators: OPTK
Buy Area:$32.00 to $33.00
TARGET:$36.30 to $37.95
Time Frame: 1 to 4 days
Type of Trade: Swing Trade
BONUS PLAY # 3 Ion Networks (NASDAQNM:IONN)
Ion Networks designs, develops and markets a broad range of remote network management and remote maintenance and security products for mission critical voice and data communications networks.
Stock Fans, this is a chart play. It has formed a new base and looks to breakout to higher ground. Stochastics are turning up and it looks primed to run! This is another small float issue, so volume is the key!
Key Indicators: IONN
Buy Area:$32.25 to $33.0625
TARGET:$36.25 to $38.3825
Time Frame: 2 to 5 days
Type of Trade: Swing Trade
TODAYS HOT IPO: Webmethods (NASDAQ:WEBM)
WebMethods (NASDAQ:WEBM), is a leading provider of infrastructure software and services that allows companies to achieve business-to-business integration, or B2Bi. B2Bi software is a new category of software that enables companies to work more closely with their customers, suppliers and business partners through the real-time exchange of information and transactions. WEBM's software solution, webMethods B2B, permits customers to rapidly and cost effectively deploy new, real-time business-to-business e-commerce applications over the Internet by integrating their existing enterprise applications with those of their customers, suppliers and other business partners. WEBM's customers can use our software to achieve varying levels of integration, from integration with a single business partner to full integration across an entire trading network.
Bussiness to Bussiness (B2B) has been an very HOT area over the past 6 months as a variety of IPO's during that period plainly shows. Based on WEBM enormous demand it could very well be the NASDAQ next 200 plus B2B stock. It could easily get 50% or more of that value today. Those investors that actually make an investment in this stock today, and hold it long term will almost for sure see extreme volatility. However those that do hold should be very well reward in the longer term.
Final Offering Amount: $143,500,000
Final Price: $35.00
Total Shares: 4,100,000
1999 Revenue: $4,462,000
1999 Net Income (Loss): ( $3,296,000)
Morgan Stanley Dean Witter
KEY INDICATORS: WEBM VOLUME!
With only 4.1 million shares available this one could be a simple case of supply and demand. Supply is low, and demand should be high. We like this one to open perhaps as high as $125 then fall back. We will send an ALERT EMAIL out on this one as we prepare to take a position today.
STOCK TO WATCH OFF WEBM IPO TODAY: On Display (NASDAQ:ONDS)
STOCKS ON OUR SCREENS TODAY:
MSGI- We like this one alot as earnings are coming soon.
JDAS- News on close of deal with IBM.
RAMP- It missed numbers. However it says it will see $$ off investments in next quarter. it also unvieled ant-hack attack applications for small business's. This area has potenially huge growth for RAMP
SE- This is one we called 2 weeks ago at $20.00 We like $30.00 plus now!
APNT- 100.00 Target we get closer today
DELL- Reported in line numbers. It should again find the 40's
TSCM- reported better then expected numbers. It may find $20.00 today
XYBR- Market Makers continue to gather this one up. It is going to see 20's soon
CYTO- Exploded on close as it added on more then 3 in less then 15 mins late in the day. We like $11.50 today. If it breaks that momentum may take it to $13.00
ALSC- It held 19.00 so it still looks for good for our target.
SPLH- The stock has a $30.00 target with a stron buy. We like the action and volume off the news.
SCUR- It looks good to find 17 plus today
MATX- It cam on late this new technology may be get a lot hotter!
WEBT- All-time high reached yesterday.
HAUP- We really hit a homer on this one called at 40 or so 5 days ago. it found 75 yesterday as it announced a split. We like this one to pull back and test 65 area today.
ODP- 16-20 next 10 days.
PRTL- It posted big numbers it may make a move off that today.
NSOL- This stocks chart suggests $340.00
WCAP- It looks as if it is wantig to again be $50.00
Have a great day!
More to come.....
and BigPlayStocks.com Team of Pro Traders