|
The Play Of The Day
March 20 , 2000
09:04 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: RSA Security (NasdaqNM: RSAS)
Security Dynamics Technologies, Inc. provides enterprise network and data security solutions that help organizations conduct business securely, protect corporate information assets and facilitate electronic commerce. The Company's security solutions address network and system security, applications security and electronic commerce security. The Company's principal product lines, ACE/Server, Keon and RSA BSAFE, as well as SecurID authentication devices, address these three categories. The Company's ACE/Server and SecurID solutions provide centralized two-factor authentication services for enterprise networks and operating systems. Keon software enhances security by providing authorized applications access and encrypted communications through the use of digital certificates. Through RSA BSAFE, the Company develops and markets platform-independent crypto-security components and development tools that enable third-party developers to incorporate security into a variety of applications.
Stock Fans, here is a company you won't find on Barron's weekend list (The list of Companies running out of cash)! I have been watching and waiting for a pullback opportunity and it is here! This stocks fundamentals are as strong as they get. EPS rate=99 and a Relative Strength=90. MACD and Stochastics are turning up!
KEY INDICATORS: RSAS
Buy Area:$72.25-73
Sell Stop:$69.35
TARGET:$76.28-$83.95
Time Frame: 2-6 days
Type of Trade: Swing
BONUS PLAY #1 - Southwest Securrities (NYSE:SWS)
Southwest Securities Group Inc. (NYSE:SWS), a brokerage and one of the founders of U.S. market maker Knight/Trimark Group Inc. Whose whose business units include Mydiscountbroker.com and Westwood Management Corp. is a online broker as well as an Investment Banker based in Dallas Texas.
This stock looks perfect to play at current levels as it should follow (NASDAQ:NITE) as it owns a great deal of it. It also owns all of Mydiscountbroker.com, a very popular online broker of late. It also is looking to perhaps spin off one or more of its business's setting itself up well to be a take over target. It has already stated that it is open to a merger with a bigger broker.
Looking at the stocks trading of late, it added on more then 270,000 shares about 50% more volume then it usually sees in a 1 day trading period over the last 30 days. The trading graph shows that the 30 day high on shares of (NYSE:SWS) is $48.00. It closed on Friday at 45.00 its high of the day. It should open today to the upside as it is a (NYSE:SWS) stock, and doesn't open at the bell if there are imbalances to the buy side or sell side. In short if SWS breaks 49.00 its off to the races as this stock has a total of less then 12 million shares outstanding, and perhaps as low as less then 2.5 million shares in its float. It went as high as 97.00 last May 1999 as supply on this one gets real low as demand gets high. We really like SWS as a 10 day swing play to follow NITE as shares of SWS could go as high as$67.00 in the next 10 trading days!
KEY INDICATORS: SWS
Buy Area: on today's open
Sell Stop: $42.00
TARGET: $67.00
Time Frame: 10 -14 trading days
Type of Trade: Swing Trade.
Bonus Play #2: Cohu, Inc. (NasdaqNM: COHU)
Cohu, Inc. designs, manufactures and sells semiconductor test handling equipment. Cohu also designs, manufactures and sells closed circuit TV cameras and systems, metal detection and microwave equipment. For the fiscal year ended 12/99, sales rose 22% to $208.8 million. Net income totaled $25.9 million, up from $11.6 million. Revenues reflect increased sales of semiconductor equipment and television cameras. Earnings also reflect changes in product mix.
Stock Fans, here is a company that came up in one of my favorite research reports. This baby is being accumulated, oversold and bouncing. Once again here is a company that is growing earnings, yes earnings. Earnings and sales have exploded for the last two quarters Timing indicators look great for entry.
KEY INDICATORS: COHU
Buy Area: $44.00-45.25
Sell Stop: $42.95
TARGET: $49.77- $52.0375
Time Frame: 2-5 days
Type of Trade: Swing
STOCK TO WATCH TODAY: Cell Genesys (NASDAQ:CEGE)
We like (NASDAQ:CEGE) to make a move to the upside over the next day or 2 to $35.00. Volume will be key on this one in its move upward. We are looking for 3.4 million shares today in trading volume.
STOCKS ON OUR SCREENS TODAY:
ORCL- If it drops to $77.1250 we buy again. If it breaks $82.00 we go long for $88.00. 81-78 it finds itself in a trading range and is not worth our time.
RNWK- What a bounce we called last week. Looks good for 72 now in the range.
AOL- It should look for 66 very soon.
TCLN- getting hammered in pre market. Look for a bounce at $5.93750
QCOM- 133.00 is break out. It loses 131 then back to 120 it may retrace.
NT- Looks solid
PALM- quiet period ends in one week. Watch for big cosolidation as it should move up all week long.
PILT- Number 1 stock to burn up this year says Barrons. It should get pasted today.
SMSI- We have this one shorted as it should find 18.50 soon. It loses that then $15.00
YHOO- It looks like it wants $165 retest again.
WSTL - it breaks out if it clears $40.00 to $48.00.
FATB- Looks solid to find 20's again.
CYTO- Watch this one close for moves up.
ONVI- oversold looking for a bounce back to 35.00 next 3 days.
XYBR- If IBM wants this one now is the time! $13.50 is major suport!
NITE- In Heat of the NITE as it finds 56-58 next 2 days
EGRP- Watch for a break out next 3 days.
SIEB- May run
JBOH- We like it alot to find $10.50 next 5-7 days
Have a great day!
More to come....
Stock Jock!
and BigPlayStocks.com Team of Pro Traders! |