CMB - Chase Manhattan Corporation $80.69 (+10.06)

Welcome to Bill and Don's excellent investment! Who are Bill and Don? William Harrison and Donald Boudreau, the CEO and Vice Chairman of Chase Manhattan Corporation, that's who. Let's just say this is one investment you can bank on. Chase Manhattan Corporation is a bank holding company that is organized into three major businesses: Global Bank, National Consumer Services and Global Services. The Company conducts domestic and international financial services businesses through various bank and nonbank subsidiaries. Now strap in and let's take a ride on the money train. Our journey begins on January 1st of this year when the stock, which has been channeling between $68-$88 since 1999, bounced off support and started back up. By March 24th, the stock had broken through resistance and had hit a high of $100, before joining the broader markets in the recent sell-off. On April 17th, the Company reported earnings that beat analysts by .04 cents. Unfortunately, the down draft of the market was too strong and CMB continued its slide. On May 17th, shareholders approved a 3:2 stock split with a scheduled paydate of June 9th. This is the bank's second stock split. Then in an unprecedented move, CS First Boston issued a "sell" recommendation on the stock on May 24th. The stock laughed off the downgrade and has headed higher ever since. Most recently, with signs of a slowing economy on the horizon, investors who have been acquiring bonds over the last few months have been converting them back to cash, presumably to reinvest in equities. Technically, CMB appears to be in split run mode. On Friday the stock gapped open and closed above the 200-dma for the first time since the middle of April. The stock now has support at the 200-dma at $79. The next level of resistance will be felt at $85 and then heavy resistance at $88. Friday's volume of 5.9 million shares surpassed the daily average by 20%. Open new positions with a strong bounce off support on good volume. Positive momentum in the index (BKX) along with the broader markets would enhance this play as well. We will have a stop in place at $77.88, just below support.

Picked on June 4th at $80.69 Change since picked 0.00