The Play Of The Day
06-28-99, 06:06 AM EST.
Good Morning Stock Fans!
Before I unveil today's Play of The Day, lets cover a little something that just might be the next group of Internet Stocks to run up. The secondary (lets discount @Home Excite (NASDAQ: ATHM) here) I am talking about the less known ones that CNBC refers to as the "Cable Guys" - those stocks who's area of business is in or around high speed Internet access.
I will start this week off featuring one of them as the Play of The Day, however, I will have all of them on my screen and ready to jump on if I see any of them about to run up. These companies trading symbols are as follows (CMTN), (COVD), (HSAC), (IIXL), (RBAK), (RTHM), and my personal favorite (WGAT) So with all these companies now on official Stock Jock watch let's get to the one that has shown in the past looking at its trading range to have the least risk and perhaps the most reward. Rhythm Net Connections (NASDAQ: RTHM)
One more thing to point out here. I feel with all the attention America Online (NYSE: AOL) has received for not inking a deal with one of the "Cable Guys" makes these stocks even more ready to fly!
Today's Play of the Day is: Rhythm Net Connections (NASDAQ:RTHM)
closing price on the NASDAQ Friday, June 25, 1999 $46.00 on trading volume of 476,000 shares
Stock Fans! This one has been beaten down in the group and perhaps forgotten together. Remember when this company exploded onto the scene on 04-08-99 as an IPO and traded just like it's name says in such a sweet rhythm connecting with huge volume and big price moves to the upside? It would begin that first day, having its first opening trade, as its low of the day was $65.75. It would go on in the next 3 days to trade as high as $111.50 on 04-13-99.
That's right Stock Fans, if you looked at Friday's closing price on (NASDAQ:RTHM) it is now more than 100% of its all time high reached less then 4 months ago! If you have been holding this one over $100.00 a share since 04-13-99 or 04-14-99 then your investment in this company over the last three plus months has been anything but "rhythm to your ears". You have not heard that familiar cash register in Pink Floyd's "Money" song ring in quite a while.
Well, Stock Fans that may all change sooner than later. I really like this stock here as it is just about at it all-time low. If nothing else those "Bottom Fishers" have there poles ready to hook this one near its all time low. This stock has more going for it here then just a great buy as far as how it has sold off. It is a "Cable Guy!" as well! I am not worried about this company never finding its way back. I have researched it and I have found it more than satisfactory to move up from here or, even better, be bought out as CNBC and other big time networks, publications, and web sites hammer AOL daily on the No "Cable Guy!" Deal.
As I look at (NASDAQ: RTHM) trading range more closely. I see that Friday's range brought it near its all time low. It opened at $46.1250 and then went up fast in a GREEN market NASDAQ right after the open - to go as high as $47.3750 on less volume. It is really interesting to see that a NASDAQ RED market midday did not cause this one to sell off very much as it saw little volume, and dipped as low as $44.6250 midday. What I did see is this one with buyers waiting for lower prices which they did not get in a NASDAQ RED market midday when it did not fall very much as there was a lack of sellers. Investors had to buy it at the market taking it higher and making (NASDAQ:RTHM) finish the day almost GREEN at $46.00 even.
In short, (NASDAQ:RTHM) created a nice range as it went lower on less volume and higher on more. Both are very bullish moves in its trading range. (NASDAQ:RTHM) seems to have HUGE support right at the $44.75 to $44.3750 price area. In fact $44.3750 is just about it all time low.
(NASDAQ:RTHM) has SOLID SUPPORT at $44.6250 as it has bounced off of there in the last 3 trading days several times and did it every time on less volume- very bullish again.
Stock Fans! I will look to get my shares today of (NASDAQ:RTHM) in a range of $44.75 to $45.3750. I will set my sell stop at $44.25 today after I buy in. My target on this one is over $56.18750 dollars a share maybe as early as the first week of July 99.
Attention: Swing Traders-
(NASDAQ:RTHM) makes a great "Swing Trade" today as it offers low percentage risk to the low side and looking it its all time high tons of reward on the high side. Besides with Joe Kernan's Love of that "Cable Guy" tune I could be calling this one in perfect "rhythm." As I look to get to what might just be a BIG PARTY early!
Another "Cable Guy" (NASDAQ: HSAC)
High Speed Access Corp. (HSAC) I like how this stock has performed of late. I like the trading range it has created and it has broken over that $20.00 dollar price range. I like to hold support here and look for even a higher price in the coming days
Buy area: $20.00 even
Sell stop: $ 19.25
IXL Enterprises INC (NASDAQ: IIXL)
This one was a recent IPO came public same day as (NASDAQ: WITC) did. It is still in a quiet period after it IPO offering so no upgrades here. However looking at this stocks explosion on the close up more then $2.00 on big volume the last 35 minutes tells me there were plenty of buyers wanting in this one for what might be some big news coming soon.
Buy Area: $18.93750
Sell Stop: $ 17.81
Target: $ 25.00 plus
Re- Play of The Stock Jock's most recent stock plays
DELL -- News is out that Boeing will extend its contract with DELL it trades up in pre market. DELL a recent call of mine this one looks real good! I am holding on here as Mike DELL and his "darling" (NASDAQ: DELL) looks to break open in the flat and be wide open for a big yardage gain! (price move to the upside)
Webtrends (NASDAQ: WEBT) will look to find an "Up- Trend" in its trading range today. Webtrends (NASDAQ: WEBT) has held up great in all types of market environments we have seen of late. I am holding on right here as it now looks to have support at $38.00 or so. I hold here and still have my sell stop set at $34.6250 I am not planning on even thinking of having to use it.
DBCC- it looks good here to buy back in or average down as this stock has spent little time over 1999 in less then $10.00 a share price. Look for this one to move back up establish $11.00 again and then try and make a move higher VOLUME is the KEY!
MSFT- I still am not convinced with MSFT. In fact I still think as crazy as it might sound MSFT goes after CPQ's Altavista as CPQ and CMGI talks continue. I am ready to be proven wrong on MFST going short as the futures trade up here and MSFT looks to open higher watch that $87.00 area as MSFT has been there before and not held it. If MSFT sees $89.00 today then I will be proven wrong by Bill Gate's MSFT but not until then.
Stock Jock's Late Calls on Friday, June 25, 1999, all look to open higher today! PTVL, TMCS, CARI If they all break up on the open I may look to get out fast. I can always buy back on trading range pullbacks off their gap up opens today.
Anyone in my LIVE TRADING ROOM that was short this market on Friday as I was on NITE ATHM and LCOS is real happy they listened and covered their shorts for gains at 15:39 EST on Friday as said. If not your day today starts out pretty bleak.
America Online (NYSE: AOL) The Steve Case (CEO of AOL) train still has a stop to make ($94.50 - $97.50) before it gets back ONLINE and leaves the station again.
Ohhh... Yes I will end today on my favorite stock (NYSE: AOL) Yes, I did call its low right on 6-14-99 at $89.50. Yes, I did call the close exactly some 4 hours ahead of what it would close at on the NYSE on Friday, June 25, 1999, to the penny. So, I am sure you all want to know what I think is in store for (NYSE: AOL) today? I like (NYSE: AOL) to gap up on the open today and follow the market higher. It could open late with an imbalance to the buy side and go over $105.00. However my area now where I look for (NYSE: AOL) to grind to a halt is $105.93750. That is where I believe she pulls back and then retraces back down and fills in that gap in its trading range open of $97.50 - $94.50 (NYSE: AOL) has never over the last 3 years not covered an open space in its chart and achieved a new-all time high. If (NYSE: MER) and numerous other brokers on "the street" are going to get that $200.00 a share price for (NYSE: AOL) and history has anything to do with it then (NYSE: AOL) has to fill in its gap and actually have trades take place in the area of $94.50 to $97.50. I have a limit order buy in at $97.00 even.
Well, that should keep everyone busy for today!
Have a great day today!
More to come...