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| PLAY > New Plays |
Tuesday, December 12, 2000 |
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New Split Plays
| CRY - Cryolife Incorporated $53.00 -0.81 (+5.38) |
We are all too well aware of the punishment that most technology shares have been through this year. As we enter into what we think will be a tradable rally in select sectors within the NASDAQ, stock picking becomes increasingly important. Two areas of the technology field that have garnered interest from bargain hunters lately have been fiber optics and storage solution companies. BRCD is a leader within the latter group. BRCD provides advanced switching products for Storage Area Networks (SANs). Adding fuel to the potential bonfire is the fact that BRCD announced a 2:1 split at the end of November. The split will be paid to shareholders on December 21st. Clearly, we could have a split run on our hands. This is an extremely volatile stock so, lighter positions are recommended. Nevertheless, we are encouraged by the fact that the stock managed to climb above its 50-DMA of $218.09 on Friday. The potential for increased volatility next week is very real. If the markets are slammed on the open due to Gore's Florida Supreme Court victory, look to pick up BRCD if it can hold support just above $210, which is the low of the day on Friday's trading session. The longer-term technical indicators for the stock look good. The MACD turned positive last week after suffering a severe decline. The OBV and Money Flow are both resuming their upward trends. The RSI is indicating upside potential before the stock becomes overbought. If our stop is not executed, we will exit this position just before the split becomes payable on December 21st.
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