The Play Of The Day
Feb 23, 2000
08:50 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: Energy Conversion Devices (NASDAQ:ENER)
Stock Fans, We were right to have the likes of EFCX on our screen yesterday as it had news of applying its applications in the fuel cell area by testing it with trials in Israel. The news as we anticipated caused EFCX to rocket from where we had watched accumulate all last week between 10-11. Today's play has similar accumulation between 22-23 last week. We like that pattern.
Today's Play falls into that same category. The stock I am talking about is Energy Conversion Devices. The name should tell you a lot about this one. It has been hot in the recent past, and as I stated it is in the same type of area as EFCX. This stock rocketed last month to go as high as 33 plus late in the day on news. It came on late yesterday in the wake of EFCX I like it today to open just under $25.00 then retrace back to its open gap at $24.25. This stock traded as high as 27.00 last night in after hours. It looks very much like its going open 2 off that then retrace to scare out those looking for a big AM gap! It then sets up well to make a run into the 30's it could be as soon as even today. If not today then we will look for a 1-10 day move into the 30's on this stock that is once again being discovered. Our daytrade TARGET on this one is for a move to $27.00 today. Our 10 day Target is 30's
KEY INDICATORS: ENER
Buy Area: $24.25
Sell Stop: $22.1250
Time Frame: 1-10 days
Type of Trade: daytrade/swing trade
BONUS PLAY #1 is: e. spire Communications (NASDAQ:ESPI)
e.spire Communications, Inc. (ESPI) is a facilities-based Integrated Communications Provider (ICP) to businesses primarily in major markets in the southern half of the United States. The company was one of the first Competitive Local Exchange Carriers (CLECs) to combine the provision of dedicated, local and long distance voice services with frame relay, asynchronous transfer mode (ATM) and Internet services. Having established this suite of telecommunications services which emphasizes data capabilities in addition to traditional CLEC offerings, the firm has evolved into an ICP. The company's facilities-based network infrastructure is designed to provide services to customers on an end-to-end basis. We are hearing rumors that good news may soon surface regarding this high-growth firm.
Stock Fans, note that in late February, e.spire is expected to announce quarterly earnings. The consensus estimate calls for a loss of $1.51. Experts estimate the company's five-year sales growth rate at 248.04 percent. Brokers recommend shares with two "strong buys", three "moderate buys" and four "holds". Over the past year, shares have traded within the following range: $4 1/2 - $18 1/8. ESPI last changed hands at $13 5/8. If you decide to take a position, use a stop-loss of $12 1/4. Note that this is a volatile issue!
Take note of the open interest on calls and puts on ESPI. Many have been playing ESPI as a 'covered call play' as indicated by the large open interest at the 12.5 and 15 strikes. However, 589 contracts are open at the March 10 put. This would indicate 'support' at this level, as the writers of these do not believe ESPI will decline to this level.
1509 contracts traded today on the March 15 call. This one is ready to explode and we think news is coming!!!
The 52 week high on this one is $18.00. It would appears that with all of that option contracts surrounding a predicted move to the upside on the March 2000 contracts it seems as if that 52 week high should be challeged shortly.
KEY INDICATORS: ESPI
Time Frame: 2-10 days
Type of Trade: Swing Trade
BONUS PLAY #2: Flextronics International (NASDAQ: FLEX)
Flextronics International Limited provides complete global manufacturing solutions by offering innovative engineering, advanced electronics manufacturing and logistical services. The Company's services are offered to original equipment manufacturers in the telecommunications, networking, computer, consumer electronics, and medical device industries. Flextronics' products and services are utilized in the manufacturing of modems, business telecommunication products, computer peripheral devices and pilot electronic organizers. Flextronics' services include product design, printed circuit board fabrication and assembly, materials procurement, inventory management, final assembly and test, packaging and distribution.
Flextronics makes the guts of your electronics. Works well in a portfolio too. If you are foolish enough to pry open your Palm Pilot, thus voiding the warranty, you would find that a company called Flextronics (Nasdaq:FLEX - news) made most of the parts. In fact, a little exploratory surgery would show that this global electronics dynamo makes the guts of many of your electronic goods. The company is so pervasive in such a hot marketplace that many analysts suggest also placing some of its stock in your portfolio.
Gurus choose top hold picks for 2010
Companies that did make the list include FLEX
Price crossed it's 10 day moving average. Institutions own 98% of the float. Volume more than doubled yesterday. I am painting a picture...do you see it?
KEY INDICATORS: FLEX
Buy Area:$57.00 to $57.75
TARGET: $63.525 to $66.41
Time Frame: 3-7 days
Type of Trade: Swing Trade
SHORT PLAY: PSInet, INC. (NASDQNM:PSIX)
PSInet, Inc. is a global provider of Internet access services and related products to businesses. The Company provides dedicated and dial-up Internet connections in 90 of the 100 largest metropolitan statistical areas in the United States, and in 12 of the 20 largest global telecommunications markets, with operations in the United States, Canada, Europe and Asia.
Shares of PSINet (PSIX:NASDAQ - news - boards) fell sharply Tuesday after the Internet service provider reported that its operating loss more than doubled in its fourth quarter, although the results came in slightly better than Wall Street's forecasts and were in line with the company's previously announced earnings warning.
Stock Fans, this is my favorite kind of short. They recently split shares and that euphoria has long worn off. They reported poor earnings. The closing daily price closed below the 50 day moving average. Once again, short plays involve more risk!
KEY INDICATORS: PSIX
Sell Short:$38.75 to $40.50
TARGET: $34.88 to $32.94
Time Frame: 1-2 days
Type of Trade: Day to Mini -Swing Trade!
STOCKS ON OUR SCREENS TODAY:
XYBR- It made it back into the 14-15 area yesterday. It could have further follow thruogh today. Big notice on this one at $20 in 2 weeks time we hope
RAMP- Looks for $20 soon
WGRD- Should rest here.
NEXL- $9.00 seems to be getting closer.
AOL- We continue to wait for some kind of upgrade on it.
ITEC- Moving on selling printers to Korea.
IMNR- Moving this AM, on CD cells up on immune treatment. It should retrace back down to $17.50 today. It may add on once that is finished
CYTO- Bounce back in bio techs.
CBMI- Same deal
IDA- Watch it this is a fuel cell play
EFCX- retrace back to 15.50-15.1250 buy area for 18 target
IFCI- Buy Area today look to be just over $30.00. We like $35.00 on this one by months end.
Have a great day!
More to come.....
and BigPlayStocks.com Team of Pro Traders!