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| PLAY > New Plays |
Tuesday, April 24, 2001 |
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New Split Plays
None
New Candidate Plays
| JEC - Jacob's Engineering $62.00 +2.21 (+2.50) |
JEC makes nice profits for itself by providing professional services in four areas; construction, scientific and systems consulting, operations and maintenance and full project services including engineering, design, and architectural services. Last week, JEC reported record quarterly revenue of $1.0 billion and posted profits of $0.79 a share. Future prospects also look good for the company because it has a backlog of $5.9 billion orders. JEC has been climbing nicely in price all year primarily because the economic slowdown has not hit its particular businesses. Last week, JEC reported record quarterly revenue of $1.0 billion and posted profits of $0.79 a share. Future prospects also look good for the company thanks to a backlog of $5.9 billion. Short-term momentum traders may want to consider adding to their JEC positions because the stock established a new high today of $62.14, which could bode well for another move higher. One positive consequence of today's move was the fact that the MACD avoided issuing a sell signal and is now pointing towards more price gains for JEC. Keep in mind, though, that the RSI is currently indicating an overbought condition. That said, the last time the RSI was at a similar level it just kept going.
New Momentum Plays
| LEA
- Lear Corp. $36.20 +1.15 (+1.08) |
Stocks sensitive to interest rates should benefit in this lower interest rate environment, which is one reason we've added LEA to the Current Play list. Another reason is that LEA made a strong break above formerly tough resistance at the $35.00 level on 951,300 shares traded, which was more than twice the three-month daily average of 443,000. Credit Lyonnis and Prudential Securities can take much of the credit for trader interest in LEA, as both firms upgraded the stock today. More importantly to us, though, the stock looks very good technically. LEA has been riding a 45-degree uptrend line since early April, moving from $28 a share to today's close of $36.20. What's more, LEA is showing no inclination to backpedal. To that end, the stock should gain support from former resistance at $35.00, with additional support being provided by the 10-dma at $33.74. As for resistance, it looks like clear sailing until the April 1999 highs of $50 (though it could hit mild resistance at the psychologically-significant $40 level). Traders considering a position in LEA should look for strong volume, 250,000 shares or more traded by noon EST, on a move through Tuesday's intra-day high of $37.80 or a bounce off support at $35.00 before placing their trades.
New Plays Index
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