The Play Of The Day
07-26-99 07:49 EST.
Good Morning Stock Fans!
Stock Fans, Allen Greenspan has surely put "Fear" into the Stock Market of late as he did not say outright that he would raise interest rates again in the coming months, but he seemed to be leaning towards it in the words he delivered to Congress on Thursday, July 22, 1999.
Stock Fans! The S&P Futures trading down now almost 9 points look to have US Stocks opening much lower. I am not looking to "Short" stocks off the open today as I feel that US Stocks have good support right where they bottomed out on mid day Thursday, July 22, 1999, on Allen Greenspan's speaking to Congress. I also like those levels as this market doesn't seem to have a tremendous amount of sellers but instead a very large lack of buyers. This type of market trend will market makers of NASDAQ stocks to open stocks lower then they should be to try and "make a market" on the stocks they trades. Furthermore I just do not see the conviction that it takes to sell this market off. I see the market opening much lower today with to many sitting back and taking that "wait and see" attitude. What I am looking at mainly today is the lows that Allen Greenspan caused the market to hit on Thursday, July 22, 1999 at midday. I believe that that is the area that buyers again come back in and take advantage of lower prices.
With Allan Greenspan not speaking again until Wednesday of this week. I am looking for the Stock Market to trade sideways and stocks at least in the Techs and Nets to trade off their lows reached on Thursday midday.
OK, Stock Fans! Keeping that in mind here is today's Play of the Day
Today's Play Of The Day is: Excite @HOME (NASDAQ: ATHM) But not off the open. I am waiting for it to pull back to about $44.00 or so a share today. (read on)
Stock Fans, this one has sold down again. I like how it is positioned in its sector as the leader. It surely is the flagship "Cable Guy!". With such a huge breakout in all those other secondary Cable Guys the leader of them all has to come get back in the game and with broad band access to HOT right now. We can't forget about (NASDAQ: ATHM) the company that everyone think of first when they think of broad band access to the Internet. What better way to get in on that technology then to get a hold of shares of (NASDAQ: ATHM) today as it sits under its 200 day moving average currently. The only question is where to buy (NASDAQ: ATHM) today?
With (NASDAQ: ATHM) going as low as $43.8750 per share. That is the number I am looking to buy just above of today. I am looking for (NASDAQ: ATHM) to then trade higher off the low and make its way back up into the $50.00 price range as (NASDAQ: ATHM) should get some major Wallstreet upgrades soon!
Buy Area: $44.00
Sell Stop: $42.8125
TARGET: $51.3750 (this week)
Run the Option!
(NASDAQ: ATHM) Call Options are:
August 21,1999 $50.00 Option Calls (AHQ- HJ)
Update: Webtrends, INC (NASDAQ: WEBT)
Stock Fans! I have received an awful lot of email on (NASDAQ: WEBT) asking me what me short term outlook is for (NASDAQ: WEBT) With that in mind let me give it to you all. Webtrends (NASDAQ: WEBT) has been extremely disappointing to me ever since it reported what were certainly blow out numbers on last Monday, July 19, 1999 for its last quarters earnings. Since that time (NASDAQ: WEBT) should have went higher. Instead it has gone completely in the opposite direction. Many of you have emailed me asking me why the numbers could be so good (as they were stellar)! And (NASDAQ: WEBT) continues to go lower. Stock Fans! It is simply a lack of VOLUME. Witch currently translates into lack of interest by other investors. The reason for the lack of interest is (NASDAQ: WEBT) remains still uncovered by large "big name" Wallstreet brokerage firms. This is a problem right now for (NASDAQ: WEBT) not being able to break out and get back to a level it should be at least $60.00 a share. However since it has this lack of coverage (translates into less VOLUME or lack there of) (NASDAQ: WEBT) market makers are forced to lower it price to make a market on the stock. When the entire market is perceived to be less. (NASDAQ: WEBT) is over exaggerated to the down side on price per share in a big way. Stock Fans! Looking at (NASDAQ: WEBT) current chart It is easy for me to see that (NASDAQ: WEBT) is almost so low here again back down under $35.00 dollars a share it is almost considered to be a "Bottom Fishers" play. I don't like where (NASDAQ: WEBT) closed on Friday, July 23, 1999 as a place to be a buyer of (NASDAQ: WEBT). However I do like the range it showed last Friday as it sold all the way down to a 30 day low of $32.6250 per share at midday. I was impressed that it did this on less volume of only 240,000 shares trading. This is a very BULLISH sign.
(NASDAQ: WEBT) IN SHORT.
I am a buyer of (NASDAQ: WEBT) at prices of $33.81250- $32.7550 per share. I will set a sell stop of (NASDAQ: WEBT) at $31.93750 as it looks to me to be just about impossible for this one to go any lower then that. My TARGET on this one longer term say 3-4 months still remains at up over $60.00 a share at least. All (NASDAQ: WEBT) needs is some VOLUME.
THE WONDERFUL WORLD OF DISNEY.
Not so wonderful of late...who would have ever thought Disney (NYSE:DIS) would be the DOWS worst performing stock over the last year? Stock Fans, I never did. I remember only 18 short months ago this stock was trading at over 100.00 dollars a share. The it split 3 for 1 and since then it has done nothing but go down. Well, (NYSE:DIS) just beat its First Call earnings estimates for last quarter by .01 cents per share. Barrons over the weekend has been kind enough to give (NYSE:DIS) what is called a "Barrons Boast" to (NYSE:DIS). Stock Fans! Look to add to your position or buy shares of (NYSE:DIS) at under $27.00 per share today. My end of the calendar year outlook on (NYSE:DIS) is just over $43.00 a share. I believe that with (NYSE:DIS) recent purchase of an even bigger interest in (NASDAQ:SEEK) and all of its other properties looking much better of late including ABC. (NYSE:DIS) looks to go higher from here. I also see a great buying opportunity on it today as the Stock Market is looking to open much lower today. This will surly have (NYSE:DIS) open at a bit less then what it is valued a perfect place to get in.
It has held up well in all types of markets of late. I like (NASDAQ:CYCH) at current levels as a hold. I also will look to add to my current position if (NASDAQ:CYCH) drops to $10.6250 per share. $10.50 looks to be as low as it is going to go. I still remain bullish on this one as (NASDAQ:CYCH) has a lot in the works and sits way off where it should be over $15.00 dollars a share its 200 day moving average.
Stock Fans! You can find in my LIVE TRADING ROOM today. As I look for bargains and selected Tech & Net stocks to bounce off those lows reached last week.
Have a great day