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| PLAY > New Plays |
Sunday, May 27, 2001 |
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New Split Plays
None
New Candidate Plays
| BJ
- BJ's Wholesale Club $48.31 (+4.46)
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The promise of an improving economy has lit a fire under the retail stocks and BJ has been no exception. The company has employed a solid strategy that has enabled BJ's Wholesale Club to produce excellent profits. The current quarter is expected to net the company $0.49 in profits, which would be a nice increase of seven cents, or 17%, over the same quarter a year ago. Friday's modest rally could have been sparked by the announcement that the company's board has approved an increase of $50 million to the company's current stock repurchase plan. Last week's rally all started when BJ gapped above its 50-DMA of $45.25. This price is now the major support and we have therefore set our initial stop just a little lower at $45.10. BJ closed just below the new all time high of $48.55. This price provides very mild resistance and new positions might initiated when BJ trades above this price, especially if we see first hour trading volume over 200,000 shares. A gap up on Tuesday to over $50.00 may result in a little pullback in the early going. The MACD and Money Flow are both very strong and portend of more gains for the stock. The RSI is approaching an overbought indication but there is still rally room.
| CEFT
- Concord EFS Inc. $50.60 (+3.49)
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If you made a retail purchase or an electronic funds transfer within the last week, chances are that Concord EFS, Inc. had a hand in it. CEFT facilitates financial transactions. The company acquires, routes, authorizes, captures, and settles non-cash payment transactions for retailers and financial institutions. The stock has spent almost three months consolidating in the $42-$48 range after gaining 226% from the 3/9/00 intra-day low of $15.31 to the all-time high of $49.93 on March 5th. The stock finally broke out its trading range on Monday and the move was followed up with record highs on Tuesday and Friday. We believe that CEFT could continue to move higher and we are also looking for a split announcement with the July earnings release. The company approved an increase in its authorized shares from 500 million to 750 million at its Annual Meeting on Thursday. CEFT has 243 million shares issued so the company has more than enough shares for a split. The stock is currently trading above historic split range and the company likes to split its stock. Since 1994, CEFT has declared six 3:2 splits when the stock was trading in the $30-$40 range. From a technical standpoint, CEFT has support at Tuesday's intra-day high of $50.10 with stronger support at $49.48, the 5-dma. Resistance is Friday's intra-day high of $51 and then possibly $52 or $53. Traders should look for entry points on a bounce off of $50.10 or a breakout above $51 on volume greater than 2 million shares by noon. We plan to set stops at $46 as downside protection.
New Momentum Plays
None
New Plays Index
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