The Play Of The Day
April 10, 2000
8:37 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: ORACLE (NASDAQ:ORCL) (SHORT)
Stock Fans, as great a company as (NASDAQ:ORCL) is it was trying to find its way to an all time high when the NASDAQ about one month ago was looking for All time highs of 5,100 plus! Since then the NASDAQ has fall back and currently sits just over 4,440. With the NASDAQ still over 600 off an all time high amazingly one of its bell weathers ORCL is again threating all time highs of 90.00 plus? Even though its CEO filed to sell several million shares, and with today's latest news of an increasing offering in ORCL stock (usually this drops a stock with more supply added) ORCL continues to be up in pre market today going as high as $88.00. ORCL volume of late has been under its 30 day average. The stock also has not been one to blow away earnings for 2 straight quarters over the last 2 year, something ORCL is going to have to do to support its incredibly high multiple in its share price to earnings. In short ORCL has risen way to fast off late after it had fallen back near $76.00 and less last Tuesday going all the way back up more then $12.00 points sense then. Stock Fans, for a stock like ORCL to move so fast on less the its 30 day avergae volume suggests means it could very well be setting up to get hammered lower soon. ORCL looks to be low risk shorting at the top as it could break 90.00 plus when the NASDAQ was 5,000 plus. With the NASDAQ 600 points plus lower the job ORCL has to break 90 seems nearly impossible! ORCL has to pull back recent history is tells us this should indeed be the case.
KEY INDICATORS: ORCL (SHORT)
Sell Short Area: Off the open today
Buy Stop: $91.00
2-5 DAY TARGET: $82.00
10 DAY TARGET: $77.00
Type of Trade: Swing Trade
"RUN THE OPTIONS!"
ORCL April $80.00 Options Puts
BONUS PLAY # 1 Xerox Corporation (NYSE:XRX)
Xerox Corporation provides document solutions that enhance business productivity. The Company's document processing activities encompass developing, manufacturing, marketing, servicing and financing a complete range of document processing products and solutions. The financing of Xerox equipment is generally carried out by Xerox Credit Corporation (XCC) in the United States, and internationally by foreign financing subsidiaries and divisions. Currently, black and white light-lens copiers represent approximately 40% of the Company's revenues. Some of Xerox' new digital products replace or compete with the Company's current light-lens equipment. Products include the DocuTech family of digital production publishers, The DocuPrint family of black and white printers, the DocuColor family of color copiers and printers and the Document Center family of black and white digital copiers.
Stock Fans, watch what The Sheik (as he is affectionately referred to on Wall Street) is up to. He put together last weeks lunch money to buy 100 million of Xerox. Wow how much fun it would be to buy in those sizes. As the saying goes, follow the big money. The Sheik's track record, for you stock fans that don't hang in the same nightclubs, is pretty spectacular to say the least. Some of his last purchases were, Citigroup (C) at $4, Apple (AAPL)at $18, etc.
Key Indicators: XRX
Buy Area:$27.25 to $28.00
TARGET:$30.80 to $32.20
Time Frame: 2 to 5 days
Type of Trade: Swing Trade
Longer term as The Sheik holds much longer term, target $45++ less than one year.
BONUS PLAY # 2 Kana Communications, Inc. (NASDAQNM:KANA)
Kana Communications, Inc. develops, markets and supports customer communication software products and services for e-businesses, allowing these companies to manage high volumes of inbound and outbound e-mail and Website-based communications. For the fiscal year ended 12/31/99, total revenues totaled $14.1 million, up from $2.3 million.
Stock Fans, playing the bounce. Kana is 64.5% off its 52 week high. Ouch, if you bought at the top and held. This stock came up on my "bottomed and bouncing report". It also moved up in accumulation ratings. Sales have been growing rapidly over at Kana. Buying in anticipation of the upcoming upgrades. This always happens after the broker sees a bottom, establishes a position, then "Upgrades" with rosy price targets forthcoming.
Key Indicators: KANA
Buy Area:$61.50 to $62.50
TARGET:$68.37 to $71.47
Time Frame: 3 to 5 days
Type of Trade: Swing Trade
STOCKS ON OUR SCREENS TODAY:
BGEN- It reports earnings today it may make a move
INSP- If the Internet's run todat this one is one that should make a move.
CMRC- It came on late Friday to break $140.00 $150.00 is a big number for it to break if it can't its a great short back to $139.00
MOT- Earnings coming on today's close watch it to gain 7-10 today
AOL- It is solid to hold $65.00
CSCO- It looks like it reaches a top at $77.43750
DCLK- Watch this one to make a move lower today on more volume
MACR- It should hold well over the next week
WEBT-It looks good to hold under $60.00 into earnings
YHOO- If it can break $155.00 it then should find $160.00-$163.00. If not then it heads to $144.00
AMGN- At 58.00 you have to own this one. It could get a pop off BGEN the next 2 days.
GWRX- It was up big Friday on low volume it should drop back to $22.00
IFCI- Play it off $22.50
PSFT- This one may make a move higher over the next few days.
SPLN - It has been crushed under $20.00 its a buy.
QCOM- It looks like $155.00 is the top for it.
EBAY- It came on late in the day after dropping under $175.00. $184.00 is still the top. It should pull back more today.
CMGI- $95.00-$98.00 is the top for this one in its current range.
Have a great day!
More to come....
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