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| PLAY > New Plays |
Sunday, December 03, 2000 |
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New Split Plays
No New Split Plays
New Candidate Plays
| XL - XL Capital Limited $80.25 (+3.31) |
XL Capital Limited is an insurance and financial services company. XL operates in four underwriting segments: insurance, reinsurance, Lloyd's syndicated and financial services. Through the expansion of their core risk transfer business and the development of strategic alliances, XL offers financial, insurance and reinsurance solutions. We are adding XL to our split candidate list after the company notched a new 52-week high of $81.25 on Friday. Additionally the stock has doubled in value since February of 1999, therefore making it a prime for a split. With 127.45 million shares outstanding and 999.99 million authorized, the company will have no problem paying a 2:1 split. To date there is no record of a split, so this would be the company's first. Earnings will be coming up in February, which may trigger a split announcement. On Tuesday of last week XL broke out of a three month trading range between $70-$78 when it closed at $78.50 on volume of 687 thousand shares, a 40% increase in average volume. The breakout was confirmed in the days that followed by the stock holding above $78 on strong volume. The technical picture shows support at the 5-dma at $79.15, the 10-dma at $78.22 and the 20-dma at $76.72. Resistance will probably be encountered at Friday's high price of $81.25. The stock has bounced off the moving averages for the last few months, so use pullbacks to these levels as possible entry points for new plays. Watch for weak volume at resistance as a sign that a change in direction may ensue. We will post a stop loss at the 50-dma at $75.38 until further notice. Please drop by the IN PLAY section for an update of all our stop orders.
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