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| PLAY > New Plays |
Thursday, January 18, 2001 |
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New Split Plays
| CHBS - Christopher & Banks Corporation $36.25 +2.13 (+3.88) |
Christopher & Banks Corporation is a Minneapolis-based specialty retailer of women's apparel. Formerly known as Braun's Fashions Corporation, CHBS currently operates over 250 stores in 27 states throughout the northern half of the United States. The company has plans to open 30 new Christopher & Banks stores throughout the spring and summer 2001. In addition to good fundamental growth, the stock may also be getting a boost from yesterday's announcement of a 3:2 stock split, its third split over the past 14 months. After the two previous splits, the company's stock gained 157% and 70%, respectively. If CHBS's post-split record continues, then we'll look for another profitable run. With this in mind, we'll look for the stock to face its initial test at the intermediate high of $37. Secondary resistance should be stiff at $40, bolstered by another intermediate high. Just higher, the all time high of $41.88 will likely hold the toughest challenge yet. Look for entry points when upside volume of 162,000 shares or better can accompany the stock through resistance. As for support, we'll expect the $33.50 mark to hold a strong initial base, bolstered by the convergence of the 5- and 100-dma's ($33.54 and $33.56), respectively. The 10-dma of $32.60 strengthens secondary support at $32.50, which may be the final base ahead of our stop at $32.00. We'll use support and resistance to guide our entry and exit points ahead of the split payable date of February 12th.
New Candidate Plays
None
New Momentum Plays
| INTC - Intel $32.19 +1.69 (+0.06) |
Intel sparked the technology stock rally this week by reporting better than expected earnings on Tuesday after the close. Intel reported profits of $2.63 billion, or $0.38 a share, which was a penny ahead of consensus estimates. However, Intel did warn that the first quarter will likely be at least 15% lower than the fourth quarter. Intel was cautiously optimistic that a global economic recovery could spark renewed buying of computers later this year. It is important to note that Intel rallied despite a somewhat negative outlook for the immediate future. When downtrending stocks rally on bad news that usually indicates that an important bottom has been created and the path of least resistance is back up. The rally could continue tomorrow due to the after hours rallies in Microsoft (MSFT) and Sun Microsystems (SUNW) following their earnings reports. INTC has found some major support at $30.00 and the stock has tested this price five times in the past couple of weeks. We are bottom fishing on this play because Intel looks very good on a risk/reward basis. The MACD is positive and a move above $33.06 could trigger a test of the 50-DMA at $36.19. A close above the 50-DMA could result in a more substantial comeback rally.
New Plays Index
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