LU - Lucent Technologies $24.19 +1.31 (+2.88)

Whether it's creating a new type of microchip, developing faster communications platform, or providing software to make work more efficient, Lucent Technologies (LU) is usually on the leading edge. The new systems and technology company, which provides a dial tone to more than half the nations phones, was formed by AT&T only four years ago and has become a giant in network technology. As for capital structure, the company has 3.34 billion shares outstanding and 10 billion shares authorized, enough for a 2:1 split. But don't count on one at these low levels. The stock is trading well below its two previous split levels ($111.75 and $132.13), but we like LU for other reasons. Currently, shares have fallen sharply from their highs on the year and look to be clearly undervalued at present levels. The company misjudged demand for their optical products and had to restate earnings a couple of times. As witnessed by the chart, Wall Street didn't like the surprise and punished the stock severely. With that said, LU's business model is still intact and demand is growing. Additionally, the stock is breaking out of a double bottom formation that was formed through the October lows. If shares can continue to run, we'll look to $25 and $28 (recent lows) for initial resistance. Further up, opposition at the $30 mark should be followed by a tougher challenge at $31.38 (major gap down). Look for new positions when LU breaks above resistance on good volume of 23 million shares traded. Should the stock consolidate prior to advancing, look to the 10-dma of $21.96 for good intra-day support ahead of our stop at $20.50.

Picked on November 2nd @ $24.19 Change since picked 0.00

MEDI - MedImmune $70.13 +3.25 (+9.94)

MedImmune is a biotech leader in developing products that combat infectious diseases and cancer. More importantly, the company appears to be a biotech leader in growing earnings. In fact, the Gaithersburg, Md.-based company said it posted earnings of $5.9 million, or three cents per share in its latest quarter, compared to $2.8 million, or one cent per share in the third quarter of 1999. Nevertheless, shares of MedImmune have spent most of October attempting to consolidate after dropping substantially from its September high. However, it appears that the consolidation is over. MEDI took a giant step towards renewing its uptrend today by crossing over its 50-DMA of $69.75. Technically, MedImmune is at a critical juncture. The stock managed to just close its gap caused by an October drop. Stocks will often take a break after closing gaps. Therefore, be careful if MEDI begins retreating right away. We are setting our stop at $64.50, which is just below Tuesday's low. The big question is how much momentum MedImmune has to keep going forward. The MACD is advancing nicely off its bottom. This could be the stock's strongest technical indicator. What's more, the RSI is telling us that the stock does have some room to move higher before becoming overbought. Earnings are a long way off and the stock probably is not trading high enough for a split announcement. Therefore, we will most likely exit this position by using a stop strategy. Check our In Play section for stop adjustments.

Picked on November 2nd @ $70.13 Change since picked +0.00