CEFT - Concord EFS Inc. $50.60 (+3.49)

Sunday's Comment:

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.

Picked on May 27th @ $50.60 Change since picked +0.00 Stop Loss @ $46.00

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