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| PLAY > New Plays |
Tuesday, February 27, 2001 |
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New Split Plays
| LTR - Loews Corporation $106.40 +3.98 (+7.90) |
Loews Corporation is a diversified holding company that provides property, casualty and life insurance, hotel operation services, and offshore oil and gas drilling services. The company also manufactures cigarettes, watches, and clocks. The stock has been on fire over the past year. Shares of LTR hit a four-year low of $38.25 last March. On Tuesday, the stock hit an intra-day high of $106.90, representing a 178% gain and a new three-year high. On February 20th, the company announced a 2:1 split, payable on March 20th, and we believe that LTR has started its split run. Going forward, support is the February 16th intra-day high of $105.40 with additional support at Monday's intra-day high of $103.06. Resistance is the 12/5/97 close of $107.56 and then the 11/21/97 close of $108.50. Traders may consider entry points on a bounce off of $105.40 or a breakout above $107.56 on volume of at least 225,000 shares by noon. We plan to place stops at $98.50 to limit potential losses.
New Candidate Plays
| BJ - BJ's Wholesale Club $46.49 +0.84 (+1.79) |
Our continuing search for stocks that are showing strong earnings growth coupled with a solid up trend leads us to offer BJ's Wholesale Club, a discount club retailer. BJ's, based primarily in the eastern U.S., has followed the successful model of Costco (Nasdaq:COST) and Sam's Club. When BJ reports its earnings on March 6th (before the market opens) the company is expected to report profits of $0.75, which would be a healthy increase of $0.12 over the same quarter a year ago. The current share price is likely to entice management to announce a split. The last split was announced in February 1999 when the stock was trading at $43.31. BJ has been in a solid uptrend since November and today the stock established another all-time high. If the stock can climb above this new high of $46.80 tomorrow on first hour trading volume over 250,000 shares, momentum traders are encouraged to jump on board for a split and/or earnings anticipation run. A new high would also likely result in a buy signal according to the MACD. OBV and Money Flow are as strong. The 20-DMA provided excellent support during the last pullback. This moving average closed today at $44.06. Keep in mind, this will be a short-term play for us.
New Momentum Plays
None
New Plays Index
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