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| PLAY > New Plays |
Sunday, December 17, 2000 |
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New Split Plays
| TALX - TALX Corporation $38.00 (+7.88) |
The TALX Corporation (TALX) is an application service provider (ASP) that designs and implements interactive communications solutions for human resources, payroll, and employee benefits. All of the company's services are delivered through the TALX ASP Center and use leading edge technologies such as interactive web and interactive voice response systems. Such technologies have kept the company ahead of the competition and has kept their stock price soaring. On November 11th, shareholders authorized the company's first stock split. The 3:2 split will be authorized for shareholders of record on December 8th, with a payable date of January 19, 2001. Even more exciting, shares may have just signaled that they're ready for additional gains by breaking out to new highs on Friday. This week's advance, which broke above a two-week consolidation range, came on strong volume (110 thousand shares traded) and made a new closing high at $38. We'll look for $38.25 (intraday high) to present our initial opposition. As far as support for the stock goes, the previous high of $33.81 should help to bolster support at $34. We are placing our stop just below support at $33.25, to protect against a meltdown. Look for buying opportunities if good volume (100 thousand shares or more) follows a sharp bounce from support or an advance through resistance.
New Candidate Plays
| PFGC - Performance Food Group $49.75 (+3.19) |
People may not be buying personal computers nearly as much these days but hard landing or not; they are still eating just as much. PFGC is a processor and supplier of a variety of food products to multiple institutions including restaurants, hospitals and schools. PFGC's share price is plowing into new highs, which makes the stock a split candidate. A relatively low P/E of 28.11, combined with expected earnings growth in the low 20% area for the past year and for next year has attracted investors. PFGC established a new all time high of $49.88 on Friday. This price should provide mild resistance on Monday. PFGC completed a secondary offering last week at $41.00. This price should provide major long-term support. Friday's opening price was $46.75, which rests upon the short-term trend line and should provide support. The MACD recently turned positive and is rising. Money Flow is on fire, with investors fleeing from tech stocks and putting money into reliable, fundamentally sound stocks. The RSI may be indicating the start of an overbought condition. However, the last time the RSI was at current levels, it hung at overbought levels for a while before the stock started to pull back.
New Momentum Plays
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