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The Play Of The Day
March 7, 2000
08:33 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: Winstar Communications, Inc. (NASDAQ:WCII)
Winstar Communications, Inc. (NASDAQ:WCII) (www.winstar.com) helps companies around the globe engage in Frictionless Business(SM) through the use of seamless communications and technology. Winstar provides its customers with a comprehensive set of high-quality, digital-age broadband communications services, including high-speed Internet access and data transport, Web-based information, Web hosting and local and long distance services.
The stock came on late in the day as it closed just slightly off its high. It held up quite well considering the NASDAQ sold off its 50 plus gains to close down almost 10 points at 4,904. The volume on WCII was equally impressive as it traded over 1.1 million shares more then 100% more its normal 30 day volume of 673,000 shares trading. The stock has been on a nice run of late as it has secured more financing to support its ever growing business. It looks very much like even in declining NASDAQ that WCII is not going to be denied it run back to its all time high of $57.56250 reached less then 30 days ago on Feb 10, 2000. We will look for WFII to find 57 plus ahead of March 10, 2000.
KEY INDICATORS: WCII
Buy Area: $51.3750-$51.6250
Sell Stop: $51.3750
TARGET: $57.50
Time Frame: 2-4 days
Type of Trade: Swing Trade
RUN THE OPTIONS: WCII
We like the March $60.00 Call Options off this play.
BONUS PLAY #1 Nextel Partners, Inc. (NASDAQNM: NXTP)
Nextel Partners, Inc. provides digital wireless communications services in mid-sized and smaller markets throughout the United States, holding broadband wireless licenses that cover 40 million persons in 46 markets. For the nine months ended 9/30/99, total revenues totaled $20.6 million, up from $2.1 million
Stock Fans, did you read the description? Now this stock has sold as low as $30 on its first day of existence. Do you think with a description like that this is going higher over the next 5 days? 20 days? A broadband, digital wireless company with explosive revenues is a gift. Buying 1/2 position and will take the balance at 10% above or below my entry price.
KEY INDICATORS: NXTP
Buy Area:$36.75 to $37.50
Sell Stop:$34.6875
TARGET: $41.25 to $43.125
Time Frame: 3-5 days
Type of Trade: If held longer target of $50's over the next few weeks!
BONUS PLAY #2: Zomax Optical Media Inc. (NASDAQNM: ZOMX)
Mentalist from the Far East? Archrival of Godzilla? No, Zomax (formerly Zomax Optical Media) replicates and distributes CD-ROMs and other multimedia products, including compact discs, cassettes, diskettes, and digital versatile discs (DVDs). The company also offers related services such as mastering, printing and packaging, and warehousing, as well as graphic design distribution, and returned-merchandise authorization. Zomax's customers include computer manufacturers (Gateway accounts for more than 15% of sales) and software distributors like Novell (13% of sales), Microsoft, and GT Interactive. It also works with independent record labels, book publishers, and other multimedia producers.
http://biz.yahoo.com/ii/000306/stock_000306.html
Excerpts
Fourth-quarter sales increased 268% to $64.3 million from just $17.5 million in the same quarter a year earlier. As the top line has soared, both gross margins and operating income have trended higher, with operating profit reaching 20.2% in the most recent quarter.
What's more, the stock is under accumulation, meaning there is intense buying pressure. It has been on a steady upward trajectory since last May, forming one of the prettier stock charts around today.
Stock Fans, why ZOMX, why today. I try to time entry around certain events and then I look for other reasons to confirm the entry point. So without getting to technical, we have a stock that is being accumulated. It crossed its 10 day moving average. Volume is just above its average at 302k. The volume suggest that this is not going to be a race car out of a gate. Its EPS rating is 99 (highest is 100). It's RSI compared to other companies is 99 (highest is 100). We have a company that is growing revenue and earnings at a fast clip and acquiring companies to make their business stronger. I am going to pick up this baby on the dip. So be patience!
KEY INDICATORS: ZOMX
Buy Area:$51.00 to $51.50
Sell Stop:$48.93
TARGET: $56.65 to $59.22
Time Frame: 3-10 days
Type of Trade: Swing Trade
BONUS PLAY #3: Ravisent Technologies (NasdaqNM:RVST)
Ravisent Technologies, Inc. designs, develops, licenses and markets modular software solutions that enable digital video and audio stream management in personal computer systems and consumer electronics devices. Ravisent also licenses supporting hardware designs to selected customers and provides customization services and customer support. The Company's solutions enable decoding and encoding multimedia formats such as DVD, DBS/DVB and HDTV on existing personal computer and consumer electronics platforms. The Company's digital solutions incorporate industry standards for video and audio compression and are independent of operating systems and silicon components. The Company sells its products directly to personal computer and consumer electronics manufacturers in the United States and Europe and through a sales representative in Japan.
Looking at the news for RVST yesterday, one would think that a huge sell off would have taken place. This news was expected and priced into the stock. We think it was overdone as is evidenced by the nice V-Bottom that RVST has put in on it's chart during the last two sessions. Traders are coming back into this one as it was $40 stock just a few weeks ago. Earnings are coming out soon; year-end financial results will be released after the close of the market on Tuesday, March 14, 2000.
KEY INDICATORS: RVST
Buy Area: $20-21
Sell Stop: $18.13
1 DAY TARGET: $23
5 DAY TARGET: $30.00
Type of Trade: Swing Trade
RECENT IPO's ENDING QUIET PERIODS ON MONDAY, MARCH 13, 2000
Stock Fans, we will keep and eye on the following IPO's this week looking for upside moves in anticipation of upgrades coming Monday, March 13, 2000.
BTBC, CHRD, SVVS, SNHK, TREE, APRS, CWON, ELOQ, IINV
STOCKS ON OUR SCREENS TODAY:
MAGDF- Big volume near close it looks good for higher prices.
JBOH- Came on late closed at day high as well as 60 day high. $10.50 is big in its range.
UBID- What a call it has been for us. We know this is the cheap way to play CMGI. 50's coming!
WCAP- Came on late it owns a ton of CMRC as well as upcoming IPOI's
WEBT- B2B e-Commerce player now and looking for 80's again!
ONVI- At $50.00 its a buy. SFE didn't bring it to market to go down.
EPAY- Coming on of late it looks like it wants to add on 5 more this week
VRTL:- Yes we know it has gone crazy high on no new. It has to fall back today we see it begin its fall back to 30's again
XYBR- at $20 its a buy. The KEY today is it was down on 50% less volume. Bullish in the range of volume.
GMGC- Retraced nicley. It still may see 17.00 as it filled in yesterday's gap up open.
HHGP- We love this one. If it can hold 29.6250 yesterday's low after it broke out on volume it then should fin 35 plus again maybe today.
VCAT- Low risk in B2B Incubator sector. We like its recent high of 30 plus.
HEAR- A late day NASDAQ profit taking move didn't slow it down as it cloed at its high.
TECD- It more then doubled its volume yesterday. Its trading gragh says $30's are coming.
BIDS- Huge volume yesterday of almost 7 million shares. If it can break $10.00 its chart says $17.00 comes in a hurry
GENE- Heading for $100.00
TMNT- news with CSCO took it flying. It held 60% of those gains on big volume. It may find its way into the 18's today.
TCLN- Came on late has support at $11.8750. We like $13.50 if volume stays high
COMS -The bleeding should stop at 64.8750 today as COMS should lose 65 olny for seconds.
Have a great day!
More to come....
Stock Jock!
and BigPlayStocks.com Team of Pro Traders! |