The Play Of The Day
09-08-99 07:33 AM EST
Good Morning Stock Fans!
Today's Play of the Day is: PACKETEER (NASDAQ:PKTR)
Packeteer is a leading provider of application-adaptive bandwidth management solutions that enhance mission-critical application performance over enterprise wide area networks of the Internet. (NASDAQ:PKTR) solutions enable businesses and service providers to manage proactively bandwidth contention at congested access links, protect important application traffic and increase network efficiency. (NASDAQ:PKTR) deliver comprehensive application-adaptive bandwidth management by discovering and classifying network traffic, analyzing application and network performance, controlling traffic flows and monitoring and reporting on performance.
In short, Packeteer (NASDAQ:PKTR) offers a unique product that allows network administrators to manage network bandwidth. The company's boxes ensure that mission critical applications such as ERP software and sales force automation software get priority over non-critical functions such as web surfing. Since bandwidth is such a precious commodity for many offices, management products are fast becoming a necessity.
It is very true that (NASDAQ:PKTR) is still small and unprofitable. However, what it does have that makes it so inviting for future gains that may double this stock over the next 2 months is little competition yet in a very much needed area of the Internet. (NASDAQ:PKTR) is positioned well and is easily the front runner in a market that is so much still in it infancy. What all of this tells me is (NASDAQ:PKTR) offers a well-regarded niche product in a niche market. Furthermore networking equipment stocks are have been on fire of late.
Stock Fans! I am looking for shares of (NASDAQ:PKTR) to continue to trade up form here. It may see areas of pull back in its trading range but the REWARD of over $100.00 share on this one far out weighs the RISK of worrying about short term pull backs.
This play is one to buy today put away and look at 2 months form now as I really believe this stock is going nowhere but up!
I am going to play this one 2 way. I will buy half of my shares for a shorter "Swing Trade" term of 3 days to 3 weeks. I will hold on to the other half of my shares for at least 2 months in search of what looks to be promising gains!
KEY INDICATORS: SHORT TERM "SWING TRADE (3 days to 3 weeks)
Buy Area: $41.68 - $42.25
Sell Stop: $37.1250
TARGET: $59.8750 (3 days to 3 weeks)
KEY INDICATORS: LONGER TERM (at least 2 months)
Buy Area: $44.9350-$45.75
Sell Stop: $33.00
TARGET: $100.00 Plus! (2 months)
BONUS PLAY: TUTS Systems (NASDAQ:TUTS)
Tut Systems (NASDAQ:TUTS) is a leading provider of high-speed Internet access systems for multi-tenant buildings including apartments, dormitories, hotels and commercial properties. (NASDAQ:TUTS) Expresso MDU system integrated with (NASDAQ:TUTS) award-winning HomeRun(TM) technology allows service providers and property owners to use buildings' existing telephone wires to cost-effectively deliver always-on Internet connections at speeds 20 times faster than a regular dial-up modem.
Even though (NASDAQ:TUTS) can easily be classified a "Cable Guy!" it has all but been forgotten about since it had it big run up from the day it debuted on the NASDAQ market opening up over 130% higher then it underwritten price as it first public trade crossed the tape at $45.50 to its highest all time price of a staggering $75.50 a share reached on April 12.1999.
Between April 13, 1999, (NASDAQ:TUTS) and August 5, 1999, shares of (NASDAQ:TUTS) saw a steady decrease as it would hit its all time low on August 5, 1999, of $20.50 dollars a share. Since that time (NASDAQ:TUTS) has been able to mount a few charges that took it as high as $30.00 as recently as August 26, 1999. Since that time it has traded in very wide range for a 25 to 30 dollar stock of $22.8750 to as high as $28.3750 per share yesterday on VOLUME of 833,500 shares before it closed up more then $2.00 a share on more then 100% its normal average daily volume of 382,442 shares trading.
What looks to have caused the nice increase in (NASDAQ:TUTS) share price yesterday was (NASDAQ:TUTS) and Clarent Corporation (NASDAQ:CLRN) to announced a partnership that will allow (NASDAQ:TUTS) allow service providers to offer bundles of voice over IP and high-speed Internet services over a common IP infrastructure to both commercial and residential subscribers.
In short (NASDAQ:TUTS) services will now with the aid of (NASDAQ:CLRN) be offered at the same price but will be even cleaner and faster. What I see is (NASDAQ:TUTS) has great proven potential all we have to do is look at it share price only as far back as less then 6 months its share price was over $75.00. Furthermore (NASDAQ:TUTS) has carved out a very unique growing market for itself in an industry that is just now being recognized as the future in Internet connections DSL. When I take all of this in to account not mention how in expensive (NASDAQ:TUTS) is currently I see a great opportunity for substantial gains in the not to distant future for (NASDAQ:TUTS) as the "Cable Guy!" industry could not be hotter then it is presently!
"Swing Trade" (3 days to 3 weeks)
Buy Area: $25.93750- $26.43750
Sell Stop: $24.6250
TARGET: $33.00 plus (3 days to 3 weeks)
"RUN THE OPTIONS!"
Stock Fans! another great way to play what looks to be a nice move to the upside in shares of (NASDAQ:TUTS) is to play it corresponding Stock Options. The ones that seem to garner the most interest today are:
September 1999 $30.00 CALL OPTIONS
(SYMBOL:QSSIE) last price: $3.00 each
BONUS PLAY: Recent IPO- WINK COMMUNICATIONS (NASDAQ:WINK)
Yesterday's Play of the Day (NASDAQ:IATV) talked a little about (NASDAQ:WINK) even though I am more bullish on shares of (NASDAQ:IATV) right now. I can't ignore the move that (NASDAQ:WINK) saw into the close yesterday. It still is in its quiet period currently as investors seemed to remember that late yesterday as they took shares of (NASDAQ:WINK) up over $2.50 dollars a share in the last 30 minutes into the close. (NASDAQ:WINK) has a great IPO debut last month and many investors are looking for shares of (NASDAQ:WINK) to get upgrades by major brokerage firms as soon as the quiet period ends.
In what has been a very common practice of late (NASDAQ:WINK) will be run up over the next few days ahead of that quiet period ending on anticipation of good news coming.
Buy Area: $39.8750 -- $41.1250
Sell Stop: $37.43750
TARGET: $50.00 Plus perhaps this week!
BONUS OPTION PLAY: Sportsline USA (NASDAQ:SPLN)
Stock Fans! (NYSE:CBS) owns (NASDAQ:SPLN) currently however with yesterday's block buster deal between (NYSE:VIA-C) and (NYSE:CBS) that all look to change soon. In fact it may change as (NASDAQ:SPLN) is being rumored as a perfect takeover target.
Looking at (NASDAQ:SPLN) Call Options trading yesterday it is easy to see that the amount of Call Options for September $30.00 1999, more then 70% outweighs the Put volume. What that says to me is there are quite a few bets laid that says (NASDAQ:SPLN) may run up on take over rumors or perhaps even bigger news coming!
"RUN THE OPTIONS"
(NASDAQ:SPLN) September $30.00 CALL OPTIONS
(SYMBOL:QSP-IF) last price: $0.6250
Have a great day!
More to come...