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| PLAY > New Plays |
Tuesday, March 13, 2001 |
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New Split Plays
| SBL - Symbol Technologies $49.65 +3.67 (+3.24) |
Symbol Technologies' scanning products have become indispensable for a myriad number of industries, ranging from heavy manufacturing to retail package delivery. A 3:2 split was announced on February 27th when the stock was trading at $41.82. The split will be made payable on April 16th. SBL might resume its split run, now that the market appears to have put in a short-term bottom. The stock initially took off following the split announcement and peaked at $56.00 a few days later. After a subsequent pullback, SBL appears poised to move higher. The MACD survived a test yesterday and has now issued a buy signal. The RSI has plenty of room to support a rally before indicating an overbought condition. What's more, today's low print of $45.75 successfully tested trendline support. Any positive move tomorrow, accompanied by first hour trading volume over 200,000 shares, may provide possible entry opportunities.
New Candidate Plays
| CEC – CEC Entertainment Inc. $41.81 –0.14 (-0.19) |
CEC Entertainment Inc. owns, operates, and franchises over 350 Chuck E. Cheese restaurants/entertainment centers in 45 states. The stock has performed well over the past year. Shares of CEC hit an all-time high of $42.22 on March 7th, representing a 116% gain from last year’s low of $19.50 hit on 2/24/00. CEC has been consolidating after reaching its all time high just last week, and we believe that the stock could be ready for another breakout. We are also looking for a possible split announcement out of the next BoD meeting, or with its May earnings release. The company has enough shares for a split with 100 million shares authorized and 34.2 million shares issued and the stock is trading above historic split range. CEC announced its last split on 6/24/99 when the stock was trading at $40.38. Going forward, support is the 10-dma at $41.62 with additional support at $40.56, the 20-dma. Resistance is the March 8th intra-day high of $42.50 and then the all-time high of $43.22. A bounce off of $41.62 or a move above $42.50 on midday volume greater than 80,000 shares may be possible entry points. We plan to place stops at $39.50 as downside protection.
New Momentum Plays
None
New Plays Index
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