The Play Of The Day
08:12 AM EST. 09-03-99
Good Morning Stock Fans!
Today's Play of the Day is: NO PLAY TODAY.
Stock Fans! One of the things that I use to select my daily stock plays is perhaps the most important to its possibility of success. What I am talking about is of course VOLUME. There has been such a large lack of liquidity in the market of late due to late summer slowdown and now today many investors as well as brokers already away enjoying what is commonly known as the last holiday of summer Labor Day. With that in mind please understand it is much harder to select areas to buy and sell as well as targets.
Instead I am just going to feature IPO's coming out of their 30 day "*quiet periods" and STOCKS TO WATCH TODAY.
IPO's coming out of their "quiet periods" always deserve special attention as investors in many cases will actively buy them up in hopes that in the coming days they will have the type of news that will force the shares higher.
IPO's ending their quiet periods on Tuesday, September 7 are:
INTF, MDCM, ASWX, EXNT, NTCT and USIT.
The 3 that are probably the best to own into Tuesday, September 7, 1999, are:
NTCT, MCDM and USIT. Watch all 3 of these today as all 3 had great days yesterday telling us already that great things maybe coming very shortly that will take these 3 stocks even higher. Midday today I expect them to be at their lows presenting a great opportunity to buy them and own them into next week.
*IPO's coming out of there 30 day "quiet periods" means that they can now be upgraded by brokers and can report any news that has to do with there company. Up until the 30 day "quiet period" ends. IPO issues are not allowed to report anything having to do with their companies. This is why it is refereed to as a "quiet period"
STOCKS TO WATCH TODAY:
US WEB Corp. (NASDAQ:USWB)
(NASDAQ:USWB) in what was one of the slowest days of the year on the NASDAQ yesterday (NASDAQ:USWB) bucked the trend in a very large way as it would trade over 3.5 million shares almost 3 times its 30 day average volume of 1.4 million shares. (NASDAQ:USWB) on all this volume moved up over $2.00 a share to finish the session $23.31250.
What was so strange about (NASDAQ:USWB) is that it made this move on NO NEWS! Absolutely everywhere I looked in trying for an explanation as to why all this volume on such a slow day and I found nothing. I did however take a good look at (NASDAQ:USWB) intra day trading range for yesterday. I was very surprised to see that (NASDAQ:USWB) for the first hour of trading yesterday was almost stagnate as it traded only 60,000 shares with its share price staying unchanged during that time.
What does all of this mean? At this point with still no news to report this morning it means that what ever caused (NASDAQ:USWB) to literally explode both in volume and in price an hour or so after the NASDAQ market opened yesterday is anyone's guess. However somebody knew something yesterday. With that in mind I am suggesting we keep a close watch on (NASDAQ:USWB) because with nothing to this point explaining (NASDAQ:USWB) trading yesterday. We could defiantly see a re run of it today.
This stock traded more then 100,000 it average 30 day volume yesterday up more then $1.00 on 654,000 shares as it seems to be the focus yet another (NYSE:AOL) takeover rumor. I will keep a close eye on this one today to see if there continues to be any merit to the rumor.
Stock Fans! 3COM (NASDAQ:COMS) really had a charge put into it mid day as it again was the focus of takeover rumors with Lucent and also perhaps might be split into 2 separate companies. One for it modem business and one for it Palm Pilot business. (NASDAQ:COMS) may move right off the open today as rumors continue.
Have a great and safe well deserved 3 days away from the markets this weekend!
I will see you Tuesday Morning Sept 7, 1999 with my usual Play of The Day
More to come...