The Play Of The Day
09-23-99 07:23 AM EST.
Good Morning Stock Fans!
Today's Play of The Day is: Music Maker.com (NASDAQ:HITS)
Yesterday (NASDAQ:HITS) volume by 7 times its 30 day average volume of 317,000 as shares of (NASDAQ:HITS) exploded to over 2.2 million as it went from an open of $14.31250 to soar as high as $18.1250 before it closed at $17.31250 to close up over $2.00.
Yesterday's big move in volume and in share price was at the time unexplained. However today that is no longer the case as America Online (NYSE: AOL) and (NASDAQ :HITS), the largest custom CD service and licensed digital download site on the Internet announced today that (NASDAQ:HITS) will offer custom CD's and downloadable music across (NYSE:AOL)
The three-year, $20 million agreement calls for (NASDAQ:HITS) to sell personalized CD compilations and secure digital music downloads on (NYSE: AOL) services such as AOL.COM, Netscape Netcenter, and ICQ, as well as on two of its new music brands, Spinner and Winamp.
Stock Fans! those that have followed me over the last 6 plus months know I am not one to feature stocks that already are "gapping up" stocks on news. However as I looked at today's deal that (NASDAQ:HITS) has put together with (NYSE:AOL) reminds me of other deal that (NYSE:AOL) inked in early July 1999 that is that very similar that could point to that fact that (NASDAQ:HITS) should indeed open higher today as it is indicated and then go even higher after the open today.
The deal that I am referring to is the one that Dr Koop (NASDAQ:KOOP) and (NYSE:AOL) made on July 2, 1999.The made (NASDAQ:KOOP) America Online's (NYSE:AOL) exclusive health content provider. At that time (NASDAQ:KOOP) was very similar in share price to (NASDAQ:HITS) as it one day ahead of the news on July 1, 1999, went from $15.93750 on huge volume of over 3 million shares to as high as $18.31250 before it closed at $18.18750. The day the news hit on July 2, 1999, just as (NASDAQ:HITS) is indicated to open higher today so did (NASDAQ:KOOP) as it would never look back and in the 2 days that followed the news with (NYSE:AOL) Dr. KOOP (NASDAQ:KOOP) would go on to trade over 25 million shares as it would go as high as $45.75 a share. This increase was more then $24.81 per share over a 3 day period.
I am looking for (NASDAQ:HITS) to make perhaps a similar move today as (NASDAQ:HITS) news today is very strong and like (NASDAQ:KOOP) did on its (NYSE:AOL) deal indeed looks to go much higher today.
I will be looking to get in on share of (NASDAQ:HITS) right off the open today as REWARD outweighs risk on beaten down shares of recent IPO (NASDAQ:HITS) even with yesterday's $2.00 plus gain still is over $10.00 off it all time high of $28.00.
Buy Area: Right of the open
Sell Stop: $17.3750
TARGET: $25.00 plus (could be today VOLUME will be KEY)
STOCKS TO WATCH: C-Net (NASDAQ:CNET)
Stock Fans! with the resurgence of the NASDAQ leading Net Stocks underway. (NASDAQ:CNET) looks to join this group perhaps sooner then later as over 60,000 pre market shares have traded thus far today and it goes up over 2.1250 a share to $46.50. This stock remains beaten down off it April all time high of $79.75 a share. I will be looking to get in on (NASDAQ:CNET) on any weakness after it initial market spike coming today on open.
ZD NET (NYSE:ZDZ)
ZD Net (NYSE:ZDZ) is going to be featured on Power Lunch today. I will look to buy into share of (NYSE:ZDZ) around 11:140 AM EST today ahead of what should be a 2 point move in the shares.
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