EXDS - Exodus Communications $82.06 -4.94 (-5.06)

Exodus Communications is the leading provider of Internet system and network management solutions. EXDS offers web hosting, Internet connectivity, collaborative systems management and Internet technology services. The Company is a core net infrastructure play that dominates its market. The stock was flying high earlier in the year, trading to an all-time high of $179.63 on March 23rd. During the Spring Sell-Off 2000, EXDS reached a low of $52.50 on May 24th but has started to make a comeback. Two insiders are done selling their shares and now EXDS appears to have found a bottom. We feel that the stock looks ready to make a split run. The Company held its Annual Shareholder meeting on Tuesday where the shareholders voted on an increase in authorized shares from 300 million to 1.5 billion to accommodate the 2:1 stock split. The payable date is tentatively set for 6/20, subject to shareholder approval. For now, support is $80 with stronger support at $74. Resistance is $87 and then $90. Use a bounce off of $80 or a breakout above $87 to initiate new plays. Look for a rising market before opening new positions. Plan to exit one day prior to the payable date.

Picked on Jun 6th @ $82.06 Change since picked +0.00

JNPR - Juniper Networks $201.38 -13.63 (-13.13)

Many investors believe that a better way to play the Internet explosion is to buy shares of the companies that are building the equipment necessary to run the Internet as opposed to buying the Internet companies themselves. JNPR has been a huge beneficiary of this trend because they manufacture some of the fastest and most respected routers in the business. JNPR has only a fraction of Cisco's business but they are certainly giving the giant a run for their money on the technology side of the equation. In the meantime we are going to try and capture a split run. JNPR will be splitting 2:1 on June 15th. Their last split, a 3:1 in January, was characterized by a nice move in the share price. This is an extremely volatile stock. Daily moves of 20 points are commonplace. Just last week, JNPR rallied over 70 points. Keep this in mind when considering how much to allocate to this play. If the market drops tomorrow, picking up shares of JNPR at $190 or perhaps $180 is entirely possible. If we open flat or higher tomorrow make sure the $200 support holds before going long. The MACD is indicating that JNPR is ready to resume its uptrend. The last rally did not see the RSI reach overbought territory. OBV has been picking up but it is still below the highs reached in March. There should be some decent resistance in the low $220's. We will exit this position no later than next Wednesday, just before the split.

Picked on June 6th @ $201.38 Change since picked 0.00