The Play Of The Day
09-27-99 08:02 EST.
Good Morning Stock Fans!
Today's Play's of The Day are: North Point Communications (NASDAQ:NPNT) & World Gate Technologies (NASDAQ:WGAT)
Stock Fans! I featured both World Gate Technologies (NASDAQ:WGAT) & North Point Communications back on June 28, 1999 and then again on June 30, 1999 as I then saw them along with 5 other selected "Cable Guys! Stocks to go on a run. I again I am feeling as if the "Cable Guys!" (NASDAQ:WGAT) & (NASDAQ:NPNT) are ready again to make a move off the bottom as both as "Cable Guys!" have sold down to the low 20's just about 2 times as much as their IPO underwritten prices.
Without going into the definition of these two companies today. Just know that they are both "Cable Guys!" (High speed Internet Access, DSL companies) and both have sold down of late off the mid 30's where they both belong to into the low 20's. The volume of late tell me they have reached areas of support and present more REWARD then RISK as long as if I am to be wrong in my assessment of these two companies as being great bargains today with long term price targets of over $50.00 a share a place where both of these companies have traded since they went public this past year.
BOTH ARE SWING TRADES 3 to 3 weeks trades inline for TARGETS.
KEY INDICATORS: (NASDAQ:NPNT)
Buy Area: $19.8750 - $20.8750
Sell Stop: $16.8750
TARGET: $25.6250 -$32.93750 3 days to 3 weeks
KEY INDICATORS: (NASDAQ:WGAT)
Buy Area: $22.8750-$23.50
Sell Stop: $21.93750
TARGET: $30.3750 - $33.43750 3 days to 3 weeks
STOCKS TO WATCH: UBID (NASDAQ:UBID)
Henry Blodget a widely followed Internet analyst at Merrill Lynch (NYSE:MER) has come out today and essentially started coverage of (NASDAQ:UBID) with a buy rating. What a time for him to do this as (NASDAQ:UBID has already gotten some buying interest of late as it now looks ready to run into what should be a huge e-Commerce Christmas 1999.
(NASDAQ:UBID) has already come off the bottom ahead of Henry Blodget call today and had excellent volume of 1,682,000 as it gained $0.6250 this past Friday, September 24, 1999, almost 3 times more then its normal 30 day volume of 582,000 to close at $23.25.
I like (NASDAQ:UBID) to move up to at least $30.00- $32.3750 a shares over the next 10 trading days ( A perfect "Swing Trade" 3 day to 10 day trade) where this stock belongs as it continues to move up on e-Commerce Christmas 1999.
FRIDAY'S UNBELIEVABLE IPO DEBUT: ALTEON WEB SYSTEMS (NASDAQ:ATON)
Stock Fans take a look at the two following company profiles of 2 Internet IPO's from 1999 on the NASDAQ
Leading provider of Fibre Channel switching solutions for storage area networks, or SANs, which apply the benefits of a networked approach to the connection of storage systems and servers.
leading provider of next generation Internet infrastructure solutions that are designed to enable e-businesses to meet the demands resulting from the rapid growth of the Internet. Its Web data center products, which include switches, server adapters and software, are optimized to meet the specific challenges of managing Web traffic and provide the high performance and availability of leading networking infrastructure solutions.
See any similarities? Both provide storage of Internet information. Without going into a deep and confusing explanation of both Company A and Company B. Let's just categorize Company A's business to be involved in the overall storage of information on the Internet, and Company B to be involved in storage information of the Internet Infrastructure of e-Commerce storage information. Both Companies outlined above both A and B then have in common Web Infrastructure Storage Information Applications.
Wondering what the two companies are?
Company A: BROCADE COMMUNICATIONS SYSTEMS, INC (NASDAQ:BRCD) went public offering 3,250,000 shares on May 24, 1999 at $44.00 even. This company A in less then 5 months has now been as high as $249.3750 and now trades currently at over $215.00 a share.
Company B is as you might have guessed by now is of course ALTEON WEB SYSTEMS (NASDAQ:ATON). It as I am sure you all have seen by now went public this past Friday, September 24, 1999 offering 4 million shares as it opened at near 50.00 up over $30.00 where it was underwritten then going as high as over $80.00 for unbelievable one day gain of over 259%.
In short as I said in my piece on Friday Morning in my "Play of the Day!" and again in my LIVE TRADING ROOM as well. I really see many similarities in Company A (NASDAQ:BRCD) and Company B (NASDAQ:ATON). I see more potential in Company B (NASDAQ:ATON) as it's focus is on e-Commerce an area I see to have unbelievable demand in the coming year!
I will look to buy (NASDAQ:ATON) right off the open today, as it presents more REWARD then RISK as this stock heads over $100.00 today. I will put in a sell stop at $68.6250 to protect myself against a pull back and also average down ahead of that price. I look for Company A to be trading at over 200.00 plus 4 months from now!
Have a great day!
More to come...