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| PLAY > New Plays |
Sunday, April 22, 2001 |
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New Split Plays
None
New Candidate Plays
None
New Momentum Plays
| GTK
- GTECH Holdings Corp $29.79 (+0.57)
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Although there are very few players that win the lottery, the
ones that always win in this game of chance are those companies
that supply the machinery to run these highly regulated
sweepstakes. In addition, more and more states are now jumping
on board the lucrative gravy train of starting and running a
state lottery. GTECH has been enjoying this trend by providing
the necessary equipment for governments in the U.S. and around
the world to set up their own "numbers" games. GTK has been in a
steady up trend despite posting earnings on April 6th that showed
a decrease in profits of 6 pennies to $0.79 from the same quarter
a year ago. That said, analysts believe that GTK will increase
their profits for the whole year by 33%. Ever since November,
GTK has been moving steadily higher and has been finding
excellent support along its 40-DMA, which is now located at
$27.56. Three of our favorite technical indicators, the MACD,
Money Flow and OBV are all steadily rising and point towards a
continuation of the positive momentum. GTK may prove to be an
excellent buy if it can establish a new high above $29.95 on
Monday with first hour trading volume exceeding 50,000 shares.
If GTK gaps up to $32.00 or higher on the open, traders may want
to wait for a little pullback to around $29.50 before initiating
positions.
| HSIC
- Henry Schein, Inc. $38.00 (+2.79)
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Henry Schein, Inc. provides a wide range of healthcare products and services to dental laboratories, physician practices, veterinary clinics, and healthcare institutions in North America, Australia, and Europe. HSIC is coming out of a large cup and handle formation that started back in July of 1999. More recently, the stock took out major resistance at $36 on March 29th after consolidating in the $28-$34 range for three months (the handle). The stock quickly pulled back to the 100-dma only to bounce back to a new 52-week high of $38.40 on Friday. We believe that the stock may be ready to possibly breakout to new highs as we approach the earnings release in early May. Going forward, HSIC has support at the 5-dma, currently at $37, with additional support at $36.36, the 10-dma. There is resistance at Friday's intra-day high of $38.40 and then the 1/22/99 intra-day low of $40. Traders may consider entry points on a bounce off of $37 or a move above $38.40 on volume of at least 250,000 shares by noon. We plan to set stops at $35 to limit potential losses.
New Plays Index
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