The Play Of The Day
07-08-99 07:38 EST
Good Morning Stock Fans!
Today's "Play of The Day!" is: Macromedia INC (NASDAQ:MACR)
Stock Fans! I have watched this stock on a pretty regular basis for over a year now. I have said over and over that this company is in line to have all to themselves what I believe will be technology in the future that every webmaster is going to just have to have for their websites.
The technology I speak of is Macromedia's (NASDAQ:MACR) FLASH technology. There are already some major companies with large web presences such as Disney and Microsoft that use this technology. For example check out http:www.disney.com and you can see for yourself just what FLASH technology is.
Let me explain how it works right here before you take a look for yourself. Have you ever seen Disney Artist on TV or in person sketching cartoons before? If you have you know that with each movement they draw it needs a sketch. Remember when you were a kid and you would draw your own little movie on a few pages of paper then with your thumb let the pages go by one at a time real fast and you had your own little movie?
Well, forget thumbs. Today it is all done by computers. It is stunning to the eyes and when you add music ears. It is looks like live streaming video. It is so good it looks even better then a movie on the big screen
What does all this mean? It means in the future Macromedia (NASDAQ:MACR) is a shoe in my mind for a stock price well over $100.00 in the next 2 years. I just can't see this technology not be so HOT in the not to distant future that everybody is going to feel left out without it on their websites.
So, Why do I select it as my "Play of The Day!" today Macromedia (NASDAQ:MACR) ?. It is yet another stock that I see pulling back on LESS volume to a low support area that is just in an accumulation mode into earnings.
Macromedia (NASDAQ:MACR) has over the last 5 trading days lost that critical just under $40.00 dollars a share area, and sold down all the way to $36.6250. With earnings coming on an estimated day of July 28, 1999, (NASDAQ:MACR) looks ready to pull up right here and run back into the $40.00 plus area where it should be sooner then later.
In July of 1998 (NASDAQ:MACR) was relatively undiscovered it was only a 14.00 dolor stock at that time. However it did run up a good percentage amount into earnings.
Looking at the last 5 days of trading we see a trading range of $39.1250- yesterday's close of $36.6250 per share. Yesterday's volumes was a little bit more then the day before at 602,500 shares trading. It's 30 day average volume is just over 700,000 shares trading. Looking at (NASDAQ:MACR) chart I see a double bottom of $36.6250. That is dead on where it closed yesterday. The two bottom area are yesterday and 6-15-99. Those dates have a lot in common as they are very close to one month apart. Also the 06-15-99 price of 36.6250 was on the way down from Macromedia's all-time high of $53.25. When a stock sells down from a new high and falls fast like (NASDAQ:MACR) did over the first 10 days of June 1999. They price where it puts the breaks on, and investors say to themselves. "I don't care how much MACR has sold down. I am buying it right here. I know it is worth this much!"
Stock Fans! I believe that history is on our side here and investors will indeed say they will pay (NASDAQ:MACR) current price.
I am looking to get a hold of this one right at the $36.3750 area or so today. I may buy it into any kind of weakness off the open as (NASDAQ:YHOO) has the entire Internet Sector trading up today in pre-market.
Buy Area: $36.3750- $36.75
Sell Stop: $ 35.8750
Target: $ $40.00 plus 10 days or sooner)
Earnings date: aprox 07-28-99
I am not going to say much about these today. I will just give prices and a quick sentence or two.
Amen (NASDAQ:AMEN) This one jumped up late as I was alerted in my LIVE TRADING ROOM. (NEV- Stock Fan- daytrader in my room) may indeed be right on this one as it is "gapping up" heading into the open.
I will look to get a hold of more (NASDAQ:AMEN) as it looks to run right off the open.
Sportsline USA INC (NASDAQ:SPLN) I love this stock it leads the way in Sports on the net with CBS and AOL as well as AMZN behind it. In the last 6 months or so CBS has taken a bigger stake in it. With that in mind the supply deman issue in this one can get out of hand real fast. (NASDAQ:SPLN) looks like it has settled here in its current $33.00 to $34.00 dolors a share area as it to looks to head up into earnings on aprox 07-20-99. Those earnings are looking to be pretty good as SPLN's NCAA College Basketball Tournament coverage that was stellar in ratings can now be counted in SPLN's numbers.
"Swing Traders" Let's do some bottom fishing!
Stock Fans! Here are a couple of good looking "bottom fishing"( stocks that are at lows and value players will buy regardless)
CDnow (NADAQ:CDNW) It looks like this one has buyers right under $17.00 or so. It is just over that as it looks to open today. I will look to buy it today into any kind of weakness.
NAVRRE " Are they ever going to launch its NET RADIO IPO?
I have heard brokers and chats and everywhere talking up (NASDAQ:NAVR) for months now infact over a half year or more. Well, with HITS going public yesterday, and being just that a "HIT! (70% increase +) (NASDAQ:NAVRE) better step to the plate ready to swing real soon, or leave the majors. They have a great company in NET RADIO its IPO. It has had its road show already and all it has to do is give a date for underwriting and the realease and (NASDAQ:NAVRE) will pop big.
I am going to give this one more try as it had big volume yesterday on what looked to be no big deal news. This one getting over $11.00 dollars a share is BIG. I will look to get it right of the open into any weakness what so ever
AUDIO/VIDEO Sector is it ready to repeat history NOW?
Many of these stocks have already run quite a bit but not back up to old highs YET! RNWK has headed the parade and in the past as recent as Mid April 99 these stocks RAN UP big They are:
TUNE- VDAT- ITVU-AHWY-TECD-BIGE-NSPK It looks like on takeover rumors VCST has joined in on all the FUN. I am going see if this sector is ready for a run like the "Cable Guys" have had!. You can bet these guys are all on my radar today.
OK READY BREAK!
Look for me today in my LIVE TRADING ROOM.
Have a great day! YAHOO!
More to come.....