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| PLAY > New Plays |
Tuesday, January 02, 2001 |
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New Split Plays
None
New Candidate Plays
| BAX - Baxter International $89.63 +1.31 |
Baxter International (BAX) is a global medical products and services company that provides critical therapies for people with life-threatening conditions. The company operates three divisions: I.V. drug delivery systems; bioscience products; and renal care services. Growth in each of its divisions is expected to help the company improve earnings by 13% this year. Currently, the company has 294.14 million shares outstanding with 350 million authorized, not enough for a 2:1 split. However, shares are trading well above their previous split-level of $51.75, which may prompt management to consider a split. In addition, we feel that the chart makes BAX an even more attractive play. After an impressive summer rally, the stock has now resumed a strong uptrend and could be on the verge of another breakout. With that in mind, we'll look for a close above $90 to signal our entries. Secondary resistance should be a tougher test at the $95 mark. Look to confirm entries when BAX ascends through resistance on volume of 2 million shares or better. However, should the stock consolidate prior to advancing, then look for initial support to come at the $88 mark, bolstered by previous highs and the 5-dma of $87.83. Stronger support should come just lower at $86, braced by the 20-dma of $85.85. We'll set our stops at $85 to limit risk.
| WWY - William Wrigley Jr. $96.06 +0.25 |
William Wrigley Jr. is a leading manufacturer of chewing gum. The company makes a variety of popular chewing gum brands such as Juicy Fruit, Big Red, Freeden and Extra. Shares of WWY were trading in the $70-$85 range for most of last year. On September 21st, the stock traded to an intra-day low of $70.19, representing the low end of the range. Since then, WWY has been hot, breaking out to 52-week highs on rising average daily volume. On Tuesday, shares of WWY traded as high as $96.88 on 311,000 shares, which has us believing that the stock could be ready to challenge its all-time high of $100.25 set back in February 1999. We are also looking for a split announcement to come out of their next BoD meeting or with the earnings release on January 26th. Their last split came after a BoD when the stock was trading in the $80-$100 range. The company currently has enough shares for a split with 400 million shares authorized and 94 million shares outstanding. Going forward, support is the 5-dma at $94.75 with stronger support at the 10-dma, now up to $93.44. WWY has resistance at $97, just above Tuesday's intra-day high and then the 7/10/98 close of $98.75. Traders may consider starting new plays on a bounce off of $94.75 or a breakout above $97 on volume of at least 150,000 shares by midday. We plan to set stops at $91 as downside protection.
New Momentum Plays
NONE
New Plays Index
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