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| PLAY > New Plays |
Sunday, May 20, 2001 |
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New Split Plays
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New Candidate Plays
| BKH
- Black Hills Corporation $55.94 (+1.79)
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The well-publicized California energy crisis and President Bush's energy plan have been very good for many utilities. Black Hills Corporation is a utility that primarily serves customers in South Dakota, Wyoming and Montana. However, the company does sell electricity throughout the western US. Earlier this month, BKH reported record profits of $1.37/share, which was an increase of 226% over the same quarter last year. The stock has been moving higher ever since the earnings report and on Friday the stock established a new high of $56.23. The strong share price may encourage the board to reward shareholders with a split. In the meantime, momentum traders might want to jump on this stock if it can establish yet another new high by trading above $56.23. This trade might be more attractive if the move is accompanied by midday volume exceeding 90,000 shares. The technical picture is improving. The MACD issued a buy signal last week and the Money Flow and the OBV are both moving higher off their lows. The RSI is indicating an overbought condition. However the last time the RSI was at a similar level, the stock kept rallying and the overbought condition became more pronounced. Initial support can be found at $54.00 followed by more support at the 20-DMA of $52.31. We are placing out initial stop at $52.25 to protect against a reversal.
| KRI - Knight Ridder, Inc. $56.01 (+0.89)
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Knight Ridder, Inc. publishes 32 daily and 22 non-daily newspapers in 28 markets across the US. The company also runs 45 Web sites associated with its print publications. Shares of KRI have spent the last two months consolidating in the $52-$55 range after hitting a relative low of $50.20 on March 22nd. Over the past two weeks, the stock has quietly moved out of its trading range, followed by a breakout on three consecutive higher highs coupled with higher lows. We believe that KRI may be ready to challenge its all-time highs and we are also looking for a split announcement with the July 17th earnings release. The company currently has 250M authorized and 75 million shares issued so it has enough shares for a split. From a technical standpoint, KRI has support at Friday's intra-day low of $55.61 with additional support at $55.23, the 10-dma. Resistance is the 100-dma at $56.30 and then the March 9th intra-day low of $57. Traders should look for entry points on a bounce off of $55.61 or a move above $57 on volume greater than 480,000 shares by noon. We plan to set stops at $54 to limit potential losses.
New Momentum Plays
None
New Plays Index
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