HAUP - Hauppauge Digital $77.00 +7.87 (+4.19)

Hauppauge Digital is the leading developer and manufacturer of digital video TV and data broadcast receiver products for personal computers. Their products allow PC users to watch television programming in a resizable window on their PCs. The stock was not doing very much until late in January on earnings speculation. On 2/10, the Company announced earnings and set a 2:1 stock split. Since the announcements, the stock has pulled back to the $50 level, spent some time consolidating the move and is now taking off again as we are now less than 2 weeks away from the split payable date of 3/24. We feel that HAUP has enough strength to maintain its upward trend going into the split. The limited float will also make things very interesting. The stock closed at a record high which is not easy to do in such a negative market. Volume was heavy showing underlying strength in the move. There is support at the 5-dma, now at $70. Stronger support is the 10-dma at $66. Resistance is just above the all-time high at $81 and then $85. Use a bounce off of $70 or a move above $81 on strong volume as possible entry points. Only play in a rising market. Exit no later than 3/23.

Picked on Mar 14th @ $77.00 Change since picked +0.00

NEW SPLIT CANDIDATE PLAYS

MSTR - MicroStrategy Inc. $292.00 -2.36 (-21.00)

Fortune 500 Companies are spending like crazy to develop their Web based businesses. It is a simple necessity for survival in today's economy. One of the biggest beneficiaries of this trend is MicroStrategy, which has the tools and consultants that can help businesses to improve operations, analyze marketing effectiveness and create and deliver one-to-one marketing campaigns to customers. The increase in the price of MSTR has been simply astronomical. The stock has already split 2:1 this year. The split occurred on January 26th, with the stock at $295. In less than two months, the stock has doubled again and is now a candidate for yet another split. With earnings and the annual shareholder meeting coming up in late-April we feel that an announcement could occur soon, possibly in advance of the meeting. The Company has 78.2 million shares outstanding and 100 million authorized. Therefore the Company will have to increase the number of authorized shares in order to enact a split, but they could announce pending shareholder approval. March has been a wonderful month for the shares of MSTR. The stock began its most recent rally by breaking above $175 and moving almost non-stop to $333. Along the way, MSTR has paused a couple of times and formed a couple of pennants and subsequently broke out of them. It seems history could be repeating itself, as MSTR has once again pulled back and begun a mini-consolidation around the psychologically important $300 point. We believe that purchases above support of $280 could prove to be very profitable. If the stock moves below the $280 support we would suggest holding off for awhile. A close above $300 on good volume could also prove to be a good entry point. Remember, this is a very risky stock that is capable of big swings so please tread carefully and stay within your risk parameters.

Picked on March 14th @ $292.00 Change since picked 0.00

SPLIT RUN PLAY UPDATES

AXP - American Express $128.44 +1.88 (+1.76)

It sure is a nice feeling to be sitting on a Dow component winner when the Index itself is dropping over $135. Exiting cash flows seem to be finding their way into blue chip value stocks and bonds. Despite the rally in shares of AXP, the stock is still a bit oversold on a Relative Strength Index (RSI) basis. AXP is getting a lot of good press right now as investors start looking for veteran companies that are utilizing the Internet to cut costs and increase efficiencies. When looking for these companies, AXP's symbol keeps coming up. After the close yesterday it was announced that AXP has entered into an agreement with Ariba to expand their on-line payment capabilities. AXP has found resistance two days in a row in the low $130's. Although today's high was higher than yesterday's, thereby confirming a small uptrend, the stock keeps falling off from its intraday highs. Look for this stair-stepping pattern to continue all the way up to $140 where the stock will probably find some major overhead resistance. You can keep buying pullbacks within the uptrend and you may want to raise your stops to $122 just below yesterday's low.

Picked on Mar 9th @ $122.75 Change since picked +5.69

CMVT - Comverse Technology $202.13 -7.63 (-31.51)

The popularity of wireless devices is still continuing to change the way in which people communicate. This popularity has created a demand that has carried the wireless sector to towering heights. Today's sell-off, which left very few large technology stocks unscathed, saw this sector drop from their high levels. Given the bearish environment of today's trading, CMVT held up relatively well, closing down 3.63%. The stock, which closed at $202.13, has extended its consolidation near the support level of $200. A good indication for support at this level is the light volume that accompanied the sell-off ($800K vs. $1.2m). Look for a hard bounce off its current levels or slightly lower at $200 for a potential entry. If this scenario does occur, resistance is likely to be found in the range where the 5 and 10-dma's converge ($221.23 and $220.47). The next level of resistance should be found at $240. Enter new positions with bounces off support or moves through resistance. If more selling drops the price below its current levels, then set stops at $198 to avoid a likely reversal in trend. Exit the stock ahead of the payable date 4/3. We will exit the play on a move below $198.

Picked on Mar 5th @ $233.63 Change since picked -31.50

CSCO - Cisco Systems $131.75 -4.44 (-4.63)

The possibilities of the Internet are infinite. Providing the networking equipment to support this advance, CSCO sits at the top. CSCO announced today that it would supply Equant NV, operator of the world's largest data-communications network, with products that will allow companies to use Internet technology for their data and voice communications. This service will enable companies to cut the cost of their phone calls by approximately 40%. As for CSCO shares, they have held up nicely given the broad market decline in technology stocks so far this week. After another good run at the $140 mark on Monday, the stock gave back some of its gains to close at $131.75. Support just below this level remains strong at $130, which is also reinforced by the 30-dma of $130. Plan an entry if a firm bounce off this level occurs. If shares fail to reach support at $130, then look for a close above $140 as a true breakout signal, when combined with good volume (24m or better). Organize an exit strategy in front of the payable date of 3/22, as is our normal policy.

Picked on Mar 5th @ $137.44 Change since picked -5.69

DISH - EchoStar Communications Corp. $124.05 -4.33 (-13.95)

Expansion has been going well for DISH, a leader in satellite television products and programming. Monday, the company's fourth quarter year-end earnings report received mixed signals from investors. The announcement stated a $221 million dollar or 97 cents a share loss, from $122.5 million or 68 cents, a year earlier. So what's the good news? Well, it's not the earnings that have pushed the stock to these levels, its the company's steady growth in revenues. The company reported growth in revenues of $515 million from $287 million, an increase of 79%. The major issue here is that this is a growth company that is currently in a phase of expanding its business for future earnings. The mixed signal from the announcement was apparent in the stock fluctuations. Monday saw the price of the stock fall $9.63 at the open, before momentum buys pushed intra-day prices higher. This week the stock has found good support along the 10-dma of $123.45, with more support at $120 and $115. Resistance at $140, if broken, will provide the buy signal for the breakout. Plan to exit the stock with a price drop below the $115 support level. However, given a bounce off support with good volume, look to close your position before the payable date of 3/22.

Picked on Mar 7th @ $121.50 Change since picked +2.55

INSP - InfoSpace.com $202.31 -29.00 (-42.63)

Shares of the leading wireless Internet infrastructure company, INSP, followed in the footsteps of a %6.8 decline in the technology weighted NASDAQ this week. Thus far, INSP is down 17.4% on the week and has closed well below its lower consolidation range of $243. Today's 29-point drop finally ended on strong support at the $200 mark. Given a solid bounce off this firm support level, the upside potential for prices to recover is ample. New positions could be opened if good volume can support the bounce. If this scenario does unfold, look for the next level of resistance to be found at $230 (previously support). Slightly below this level, lighter resistance is also present at the 20-dma of $226.63. Stops should be set in place if price breaks below the $195 level. Have your exit planned and in place before the payable date of 4/6.

Picked on Feb 10th @ $191.50 Change since picked +10.81

LHSP - Lernout & Hauspie $130.00 +6.25 (+10.06)

If you are selling high tech software you can not get a better partner than AOL. The immediate recognition followed by access to millions of computer users is a jackpot situation for any company joining forces with AOL. This is exactly what happened to LHSP and the stock has subsequently exploded in reaction to the good news. You would be hard pressed to find a better performing stock on the NASDAQ during this 7% correction. LHSP will license its intelligent content management tools, including spelling and grammar checking to AOL. LHSP's intelligent content management tools help to speed up and simplify the viewing and browsing of information used on the Internet. In Sunday's write-up, we noted that LHSP appeared to be on the verge of breaking out of a pennant pattern and a good buy point would be just above $121. The last breakout from a similar pattern in February resulted in a $50 rise in the share price. We would not be surprised if LHSP could stage a similar rally. It was a bit discouraging to see LHSP fall more than 15 points off of its high but that is to be expected when the NASDAQ drops over 200 points. Despite the selloff, LHSP is still decidedly in breakout mode and should lead the market on any rally. Our first target is $150. Support is $120. As always, we will be exiting this position before the April 28th payable date, so mark your calendars and enjoy what will hopefully be a nice ride!

Picked on March 12th @ $119.94 Change since picked +10.06

NEWP - Newport Corporation $151.13 -19.50 (-22.50)

Newport sold off this week, along with many other stocks in its sector. The stock dipped below its 20-dma but managed to close above this key support level by the close. The Company has scheduled their Annual Shareholder meeting for 5/17 when they will vote on an increase in authorized shares to allow for the 3:1 split. If approved, they will set a payable date at the meeting. There is mild support at the 20-dma ($147) and then $145. Set hard stops under $145 to limit further losses. Resistance is at $160 and then $180. Use a bounce off of $147 or a strong move above $160 to start new plays. Only play in a rising market as this stock trades on sector momentum. We have not set an exit date due to the fact that the Company is expected to announce earnings on 4/20 and we may decide to exit and re-enter closer to the Annual meeting in May. We will exit however, if the stock moves below $145.

Picked on Mar 9th @ $178.50 Change since picked -27.38

NOK - Nokia Corp. $206.50 -8.50 (-9.38)

The telecom equipment maker, NOK, has produced solid returns as its cellular phones still gain in popularity. Despite a lower opening across the board on Monday, NOK managed to bounce back from a 10 point opening drop to close unchanged for the day at $215. The strong recovery was due in part to news that Credit Suisse First Boston repeated its strong buy rating for the company. Credit Suisse also announced its price target of $225 and stated, "We believe Nokia's business is on track for another solid quarter and a strong year ahead". So far this week the stock has confirmed our support level of $206, which remains bolstered by the 20-dma of $206.26. Keep stops in place for price moves below $204. Look for a price reversal from $206 to signal an upward move, which will consequently present a potential entry. A price advance from support will most likely find resistance at the mid- line ($120-121), before moving higher. The payable date for Nokia stock has not been declared, so use support and resistance to determine exit and entry points.

Picked on Mar 5th @ $221.00 Change since picked -14.50

NTAP - Network Appliance $197.06 -31.06 (-39.81)

As computer and software systems become more advanced, companies like Network Appliance, who manufacture high performance storage devices, are meeting the demand for greater storage capacity. NTAP, whose stock has had a phenomenal run this year, finally ran into some profit taking today. Even news that NTAP anticipates revenues doubling in 2000/01 could not stop the sellers. Holding its ground through most of Monday, the stock vigorously slid through all previous support levels ($240 and $230), closing down 31.13 points today. The stock still remains in the support area of $200, which is bolstered just below this level by the 20-dma of $195.28. This current area could prove to be very solid support, which now offers a significant amount of ground that could be made back. Keep a close eye on this support area ($200 and $195) for momentum reversals to recapture lost ground. A strong move off support would provide a quick play in anticipation of the payable date. Set stops below $188, to protect against a further meltdown. Plan an exit strategy in front of the payable date 3/22, as per our normal policy.

Picked on Mar 5th @ $199.94 Change since picked -2.88

PUMA - Puma Technology $166.88 -6.25 (-20.13)

We have a wounded little "kitty" here but hopefully the selling is over and PUMA is ready to bounce (pounce?) back. The stock dropped despite a positive item from the news front. Alcatel, a French telecommunications company, announced that they will use Puma's Intellisync synchronization product for their mobile phone network. If traders ever get tired of selling this market leader perhaps they will start paying attention to all of the good news that has recently come out concerning PUMA. The stock has excellent support right here at $164. A flat opening would be a very tempting buying opportunity. If you can stomach these volatile moves and step back and look at the chart objectively you will see that PUMA is consolidating within a major uptrend. That said, be very careful of a drop below support of $160. Otherwise, you can become cautiously bullish if PUMA can hold here and start to move higher. If the market can stabilize we may still get a nice split run out of this stock. We will be exiting this position no later than March 21st, just before the split.

Picked on March 5th @ $172.00 Change since picked -5.13

SFA - Scientific-Atlanta $147.94 -1.25 (+12.50)

The huge "tech wreck" of the past two days has left this cable box manufacturer unscathed. We had a dream opening Monday for SFA, which gave us an excellent entry point on this play. The stock gapped down with the market right to the bottom edge of its base line. With the stock gaining ground all day and not pulling back when the market rolled over, SFA showed some remarkable relative strength. The only news item that may have helped the stock yesterday was a press release from the Company stating that they are aggressively pursuing Engineers and Sales People to help the Company further develop and push their interactive digital cable TV boxes. SFA looks good and if it was not for the massive selling in the market today, we feel that SFA would have had a very nice follow through to yesterday's breakout to new highs. New positions can be bought here in the mid-$140's with the hope that the next market rally will see more new highs for SFA. Support is $131, the recent low, and would be a logical place to set a stop. We will be exiting this position no later than Friday the 24th, which is the last trading day before the split payable date.

Picked on Mar 9th @ $146.19 Change since picked +1.75

SPLIT CANDIDATE PLAY UPDATES

CLRN - Clarent Communications $158.00 -11.75 (-11.25)

Support broke down for Clarent on Tuesday. After a week of riding the 5-dma, the stock closed below support on strong volume. CLRN is hopefully consolidating at current levels and has found a short-term bottom here. If you had your stops in, you got out of this one before it got ugly. Unfortunately, the stock closed at its intra-day low and could be in for more pain tomorrow. We are looking for a split announcement some time between now and the earnings release towards end of April. On the positive side, CLRN should have support at the 10-dma ($152) with stronger support at $148. Set tight stops under $148 to lock in gains. Resistance has now dropped to $160 and then $170. Look for a bounce off of $152 or a move above $160 on heavy volume to start new plays. This stock is extremely volatile and moves on sector momentum so open new positions only on heavy volume in a rising market. The dates of the BoD meeting and the earnings release date have not been released but we are monitoring the news for any new developments on the possible announcement dates. We will exit this play if the stock moves below $148.

Picked on Feb 29th @ $109.25 Change since picked +48.75

CREE - Cree Inc. $183.75 -1.81 (-10.25)

Cree is getting beat up with its semiconductor brethren these past two days. The SOX was down a whopping 86.25. In light of that fact, the modest drop today in the shares of CREE give us some encouragement that the stock is putting up a fight against the rolling waves of selling. It looks like CREE has not suffered any technical damage, yet. Be very careful. CREE is developing a rounding top and is sitting on very tenuous support. We do not like the fact that CREE closed so near its low. If the stock gaps down you will probably want to sell the bounce back rally. A drop below today's low could take the stock down to the mid-$160's. If the stock gaps that far down it would probably be a good place to pick up some shares. Our hope is that support will hold here and CREE will work its way back up to a retest of $200, but it better happen soon, or else traders will get tired of this stock and probably let it drift lower. If CREE can hang on here, we will be dropping the play before earnings during the first week of April or after a split announcement, if that should happen to come first.

Picked on Feb 27th @ $175.88 Change since picked +7.88

FIBR - Osicom Technologies Inc. $133.53 +0.55 (-5.53)

The science of fiber optics is the future for telecom, Internet and cable TV products. Aware of this sector's possibilities, investors have sent a steady flow of money into this sector. FIBR was one of just a few companies who were able to close in positive territory, despite a considerable retracement this week in technology issues. After getting off to a great start Tuesday by gaining 15.13 points, the stock once again found resistance at the $145 mark. From its intra-day high of $145.13, the stock backed off to close at $133.53. Currently, the stock is trading mid- consolidation range ($145-$125), with good support at $125. If further retracement does manage to hit this support, look for a strong reversal to the upside as a potential entry. You should enter this play only as a 1-day trade now, then exit by Wednesday's close. Other entry points include a move up from the 10-dma of 135.20 for price runs that trade up to the top of the consolidation range at $145. Plan to exit the stock no later than Wednesday's close.

Picked on Feb 22nd @ $92.56 Change since picked +40.99

SEBL - Siebel Systems $139.75 -13.25 (-23.13)

Siebel has been under pressure this week. The i2 (ITWO)-Aspect Development (ASDV) merger brought out some sellers and the Microsoft (MSFT)-Andersen Consulting deal didn't help much either. Throw a negative market on top and you get the recent action in SEBL. The stock violated strong support and did not stop until the very end of the day. The downward move came on heavy volume, which suggests that there may be more weakness ahead. There is a glimmer of hope though. SEBL held its 20-dma and may be close to a bottom. The Company likes to announce splits at their BoD meetings and there should be one in April (not confirmed). The Company is also announcing earnings in the third week in April and the two events may coincide with each other. We are on the lookout for any new developments. In the meantime, upper support has dropped down to the 20-dma, now at $140. Stronger support is at $135. Set stops under $135 to protect profits. Resistance is now down at $153 and then $160. Open new positions on a bounce off of $135 or a break out above $153 on heavy volume. Confirm market sentiment and sector momentum before opening new positions. Plan to exit in front of earnings unless we get a split announcement before earnings in which case, we recommend an exit in the next session following the announcement. We will exit this play if the stock moves below $134.

Picked on Feb 22nd @ $121.88 Change since picked +17.87

VIGN - Vignette $272.75 -1.25 (-24.25)

The Special Shareholder meeting came and went today but we did not get the split announcement. Instead, we got some selling pressure and profit-taking as many investors were looking for a split today. The stock traded down to a low of $271.56, before mounting a minor comeback late in the day. However, the company has scheduled earnings for 4/19 (First Call) and we are expecting a split with the earnings release, that is, if we don't get one later this week or on Monday. As for the stock, light support is currently $270 with stronger support at the 10-dma, now up to $267. Place stops under $267 to lock in gains. Resistance is $280 and then $290. Look for a bounce off of support or a breakout above $280 to open new positions. Confirm market direction and sector momentum before starting new plays. If we get a split announcement before the earnings release, exit in the following trading session. If not, exit before earnings.

Picked on Feb 27th @ $228.75 Change since picked +44.00

SPLIT RUN PLAY DROPS

ADI - Analog Devices $145.63 -19.38 (-27.69)

Analog Devices has been trending down into the split payable date despite a deal with Korea Telecom and Samsung. The Company announced a 2:1 stock split in February and its payable date is Wednesday. The stock was looking good early on Tuesday, but the stock went south as the broader markets lost momentum. We are dropping this play tonight because the split is now payable but if you had your stops in, you are already out of this one. If not, set a tight stop under $143 to protect yourself and plan to exit before Wednesday's close.

Picked on Mar 5th @ $167.00 Profit/Loss = -21.38 (-13%) Best Profit = +18.50 (+11%)

AMAT - Applied Materials $178.75 -9.19 (-14.31)

AMAT survived yesterday's selloff without too much damage but today was a different story. The stock got beat up pretty badly despite the fact that the Company's split is payable tomorrow. Knowing that we would be dropping the play before the split, we sincerely hope that that you were able to exit the position on today's gap up opening as opposed to selling the stock near the close. The stock is sitting right on the support of its trend line. If it can hold here the prognosis is good that the stock could climb above $200, assuming that there is not a post split selloff or a continued correction for the NASDAQ.

Picked on Feb 24th @ $183.50 Profit/Loss -4.75 (-3%) Best Profit +13.44 (+7%)

TERN - Terayon $221.56 -25.44 (-44.94)

Terayon was thrown for a big loss this week. The Company bought assets from Internet Telecom Ltd. For about $40 million. They are also reportedly in merger talks with Israeli-based Ultracom. Buyouts usually have a negative impact on the purchaser's stock and that is precisely what happened. Due to the recent developments and the looks of TERN's chart, we are dropping this stock tonight. If you didn't get stopped out in the last two days, place a tight stop under $220 and exit on strength tomorrow.

Picked on Mar 9th @ $277.63 Profit/Loss = -56.06 (-20%) Best Profit = -2.13 (-1%)

VERT - VerticalNet Inc. $230.00 -24.00 (-43.19)

The price resistance level of $300 proved to be too much for the shares of VERT, which did not hold up well to this week's sell off in technology. A glance at the chart shows a double top was probably formed between the high on January 26th ($289.56) and the high on last Friday ($296.75). Our support of $250 and $260 was taken out by a powerful 66 point drop from Friday's high.

Picked on Feb 24th @ $221.00 Profit/Loss +52.19 (+24%) Best Profit +75.75 (+34%)

SPLIT CANDIDATE PLAY DROPS

CHKP - Checkpoint Software Technologies $246.88 -21.31 (-33.00)

We are sure you have all heard the old adage, "You can't go broke taking profits." With CHKP finally breaking its uptrend it is time to get out. If you had placed trailing stops just below the previous days low, you would have locked in some very nice profits. At the end of last week it looked as if CHKP was going to hang in there and build a nice little flag near its highs. The chart of CHKP is a perfect example of what can happen when a stock breaks below support. There is a considerable fear of heights out there. CHKP is an excellent stock and we will keep watching it and look for our next entry point.

Picked on Feb 27th @ $205.63 Profit/Loss +41.25 (+20%) Best Profit +89.38 (+43%)

CMRC - Commerce One $225.25 -24.75 (-32.31)

Well, we got the split right but we did not get the desired effect on the stock price. There was nice pop Monday morning after the split was announced, but the stock reversed direction and closed down over 7 points. As we said on Sunday, we would drop this play in the session following the announcement. Therefore, we are dropping this play as of Monday's close. We hope you did the same and took your profits on Monday, If you are still in, set stops under $222 and look to exit tomorrow on strength.

Picked on Mar 7th @ $250.87 Profit/Loss = -0.87 (0%) Best Profit = +24.75 (+10%)

LVLT - Level 3 Communications $114.63 -7.81 (-15.56)

Level 3 showed no signs of support in the past two days. The stock closed below its 20-dma support and there appears to be no signs of relief as the stock has closed on its intra-day lows both days this week. We do not like when stocks fall below key support in such a vicious manner. This is why we are dropping LVLT now. Set stops under $113 and look for an exit tomorrow.

Picked on Mar 5th @ $118.63 Profit/Loss = -4.00 (-3%) Best Profit = +13.63 (+11%)

TXN - Texas Instruments $156.50 -15.25 (-23.69)

We sincerely hope that you were able to read the Sunday update and place your stops at the $170 level. As soon as the stock traded below that price the selling really accelerated. Despite the pain of the loss you can be proud of yourself for exercising disciplined trading and remember, the market is open tomorrow and the next day and there will be plenty of opportunities to find a winner and recoup our losses. If you desire to keep watching this stock look for bounces at $150 or possibly near the old double top of $143 to indicate that support has been found. Very long-term shareholders should not worry about TXN because their fundamentals are very strong and the long-term prospects are still excellent. It just looks like the stock wants to take a little break.

Picked on March 9th @ $180.00 Profit/Loss -23.50 (-13%) Best Profit +4.00 (-2%)