The Play Of The Day
August 24, 2000
08:55 AM EST.
Good Morning Stock Fans!
NASDAQ RECAP: August 23, 2000:
Last: 4011.00 + 52.80
NASDAQ OUTLOOK TODAY: August 24, 2000:
Stock Fans, Durable Goods orders for July reported today dropped in a very big way as they were down almost 2 times what they were predicted to be at 12.6%. This reading on a key economic report may be effidence now that the rate hikes over the last 12 month have slowed the economy too much. What this number may begin to show is that with Durable Goods down a record over the last 3 year that the NASDAQ may be topped out as a number such as this can go a long way to say earnings may now begin to be affected.
I don't personally see the index going much higher then 4011.00 today as it should open about 4020.00. Investors may sell stocks at current levels. I am by no means Bearish, just less Bullish in accordance to a move that has not been accompanied by strong volume as the index has moved up from 3750.00 - 4011.00. The NASDAQ high on Tuesday following the Fed was 4011.00 yesterday almost the exact same reading came, but many NASDAQ stocks were much higher then on Tuesday. The increases in price look to this trader to be moves caused by shorting of stocks. I like 3902.00 yesterdays low to be tested before the index move over 4050.00 what now is a key number for resistance.
NASDAQ KEY INDICATORS TODAY:
Support: 3902.00 (3930.0 was held most of yesterday)
Resistance: 4054.00 (July 4, 2000 high)
Today's "Play of The Day!" is: Geron Corp (NASDAQ:GERN)
Geron Corporation, (NASDAQ:GERN) is a biopharmaceutical company that is focused on discovering, developing and commercializing therapeutic and diagnostic products for applications in oncology, drug discovery and regenerative medicine. Geron's product development programs are based upon three patented, independent and synergistic technologies: telomerase, human pluripotent stem cells, and nuclear transfer. Since inception, substantially all of the Company's revenues have been generated from license and research agreements with collaborators. In addition, the Company receives license payments and royalties from license and marketing agreement with various diagnostic and research tool.
After investors ran up the likes of ASTM, and STEM over the last day or so on words from Clinton. Investors may find this stock to be another KEY PLAY off STEM research. One of our Premium Members Nickname: (Suneo Loco) has alerted me today that GERN could be a stock that may run to 32.00 or so as investors figure out a true leader in STEM research is indeed GERN.
ARIA- Also watch this one close off of GERN today.
KEY INDICATORS: GERN
Buy Area: 25.50-25.6250
Sell Stop: 24.00
1-3 DAY TARGET: 32.00
Type of Trade: Daytrade/ Swing Trade
PRO TRADER SAGO'S BONUS PLAY'S:
BONUS PLAY #1 Devon Energy Corporation (AMEX: DVN)
Devon Energy Corporation is one of the top independent oil and gas producers in the United States. The Company's operations include the exploration, development and production of oil and gas and the acquisition of producing properties. Devon owns interests in over 21,000 producing wells. The majority of Devon's oil and gas properties and drilling operations are concentrated in the Permian Basin, the Rocky Mountains, the Mid-Continent and Gulf Coast regions of the United States, the Western Canada Sedimentary Basin of Canada, and in Azerbaijan, Venezuela and Egypt. The natural gas and oil produced on these properties are sold under either long- or short-term agreements at prices negotiated between the parties. The Company provides natural gas to a variety of customers including pipelines, utilities, gas marketing firms, industrial users and local distribution companies. Devon's crude oil is sold to primarily refiners, remarketers and other companies.
NEW YORK (Reuters) - Standard & Poor's on Wednesday said Devon Energy Corp (AMEX:DVN - news) will replace grocery chain Great Atlantic & Pacific Tea Co Inc. (NYSE:GAP - news) on the S&P 500 index after the close of trading on August 29, as a result of Devon's recent acquisition of a rival energy production company.
Stock Fans, it is always fun near the end of the month as the S&P makes changes to the index. Devon Energy has blown away earnings for the last 4 quarters and I would expect this to continue as 2000 estimates are for a increase of 146%. This is a AMEX stock which can lead to lousy fills and wide spreads. I would not recommend a market order! I like the chart as it is just off its 52 week high. This should give it the boost into higher grounds. There is also a significant short interest, 7.9 days to cover. Hope they don't hear the news till we get our fill!
Key Indicators: DVN
Buy Area:$57.00 to $60
Stop:8% from purchase price
TARGET:$65.00 to $70.00
Time Frame: 8/30/00
Type of Trade: Swing Trade
Daytrade for $.50 - $ .75 point scalps. Avg. daily price range $1.54
BONUS PLAY # 2 Western Multplex (NasdaqNM: WMUX)
Western Multplex provides broadband, or high-speed, wireless access systems that enable service providers, businesses and other enterprises to deliver data, voice and video services. For the three months ended 3/31/00, revenues rose 95% to $17 million. Net income totaled $763 thousand, up from $359 thousand. Revenues reflect increased volume of products shipped. Earnings also benefited from lower cost of components and increased reliance on outsourced manufacturing.
"This is a substantial and profitable company with accelerating revenue growth. Between '98-'99, revenues grew by 36% reaching $44.8 million, with a 49.8% gross margin and a 2.6% net margin. Between 1Q'99 and 1Q'00, revenues increased by 95.4% reaching $17 million with a 54.6% gross margin and a 6.8% cash based net margin. On a fully diluted, pro-forma basis (adjusted for non-cash charges) the EPS for '00 is estimated in the $0.09 range."
Stock Fans here is a profitable IPO that just started to pop yesterday. It has traded in a tight range for the last 23 days before making a move yesterday. I like the fundamentals and the growth and earnings expectations. Today is day 25, the last day of the quiet period.
Key Indicators: WMUX
Buy Area:$12.75 to $13.25
TARGET:$14.00 to $16.00
Time Frame: 2 to 4 days
Type of Trade: Swing Trade
Daytrade for $.25 - $.50 point scalps. Avg. daily price range $1.14
BONUS PLAY # 3 CMGI Inc. (NasdaqNM: CMGI)
CMGI Inc. develops and operates Internet and fulfillment services companies. The Company's majority-owned Internet subsidiaries include Activerse Inc., Adsmart Corporation, Blaxxun Interactive, Inc., CMGI Solutions, Inc., Engage Technologies, Inc., iCAST Corporation, Magnitude Network, Inc., MyWay.com, Nascent Technologies, Inc., NaviNet, Inc., NaviSite, Inc., Netwright, LLC and ZineZone Corporation. The Company provides fulfillment services through three wholly owned subsidiaries, SalesLink Corporation, InSolutions Incorporated and On-Demand Solutions, Inc. SalesLink's services are also provided through its subsidiary, Pacific Direct Marketing Corporation.
Stock Fans CMGI is not a new name . The chart has established a 12 week base to break out of. CMGI has re-positioned itself and has lost the incubator title. They are making the right moves for long term growth. Looking to buy on the morning dip.
Key Indicators: CMGI
Buy Area:$44.00 to $45.00
Time Frame: 2 to 4 days
Type of Trade: Swing Trade I like this to go much higher over the near term.
Daytrade for $.50 - $1.00 point scalps. Avg. daily price range $2.66
PRO OPTIONS TRADER MATEO'S OPTION PLAY:
Efficient Networks, Inc. (NasdaqNM:EFNT)
Efficient Networks, Inc. is a worldwide developer and supplier of high-speed digital subscriber line customer premises equipment (CPE) for the broadband access market. The Company focuses on developing and producing single- and multiple-user DSL customer premises equipment for small- to medium-sized businesses and branch offices of large corporations and consumers. Its DSL products enable applications such as high-speed Internet access, electronic commerce, remote access, telecommuting and extensions of corporate networks to branch offices. The Company's products include the SpeedStream family of products, ProfileBuilder Software, Advanced Status Software and ATM LAN Products.
Volume on this issue was HUGE yesterday. Can you say compression? Stochs are still low and it looks to be building a great base. Looking for an entry at 50-51. In addition, looks like someone SOLD 1,000 of the Sept 60 puts. That means that they are betting EFNT closes ABOVE 60 by the third Friday in September.
EFNT Sept 55 Call YTY IK last ask 5 3/4
STOCKS ON OUR SCREENS TODAY:
1. DSLN- 9.75 looks to be resis. 10 may be to much to ask.
2. STEM- ran up big in after hours watching close for 11.00
3. VRTL - looking great as volume continues to take it higher!
4. NXTV- Hit to hard. If it loses 46.00 its gotta be due for a bounce off 44.00 support
5. ARIA- Another stock in Stem Reserch
6. MRVC- Looks solid to hold 70.50 today and 76.00 is break out
7. ZIGO- buying opt off 54.00 or so 52.00 support. Numbers were slowed by massive demand. Not a bad thing going foward
8. JDSU- pretty easy to remember range 120- 125.00 as long as it here its stuck in a range
9 MACR- Should test 65.00 today as a low then may look for 70 plus
10. DCLK- Inside selling. It may drop back under 35.00 today.
11. NEWP- Looking for a pull back to 139.00 or so. 131.00 current support.
12. EBAY- 60.00 maybe where this one rests
13. XICO- coming on again it closed over 10.00 one to watch for upside move
14. PIII- recent IPO that continues to add on.
15. OIIM- looks good in its debut I still like 26.00
16. KEI- du to retrace.
17. LNUX- resistance is 50.00 it breaks it it may run
18. PALM- looks solid off 39.75 today as I think it shakes investors out under 40.00
19. CSCO- 70.00 looks to be to much to ask at this point
20. EXTR- May sell off into close as a split is upcoming.
21. EMLX- Looks to be to much to fast. I will watch.
LNUX PLAYS: off LNUX numbers.
Have a great day!
More to come.........
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