SunGard Data Systems, Inc. provides integrated IT solutions and "eProcessing" for financial services. SunGard also provides high availability infrastructure for business continuity. For the 9 months ended 9/30/00, total revenues rose 14% to $1.2B. Pro Forma net income before extra. items totalled $150.5M, up from $52.5M. Results reflect increased professional service revenues from acquisitions, lower merger-related costs and higher interest income.

January 23, 2001

SunGard Data Systems is a provider of integrated technology (IT) solutions. In addition, the company provides a workflow management system that increases efficiency and flexibility in managing healthcare insurance organizations and an automated mailing-services business. Tonight we welcome SDS to our list of split candidate plays. The company caught our eye because it is drawing closer to its target split range at $50.00, a level where the company has split its stock twice before. Tuesday, the stock gained better than $3.06 on volume of 1.4 million shares. This volume surge exceeds the three-month average trading volume of 860,000 by 62-percent. SDS is due to report earnings on February 8th and now looks poised to move higher as it nears that event. For the past month, the stock has been teetering to hold technical support at the 100-dma. On Tuesday, the stock bounced off the 100-dma at $45.80 and then moved higher through four moving averages including the 50-dma, a closely watched indicator by technical traders. Support now exists at the 50-dma at $48.45, the 20-dma at $47.16 and the 100-dma at $45.79. New play opportunities might include a move to $50 on volume of 750,000 by midday. We will place our stop loss at $45.00 just below support.

Picked on January 23rd @ $48.81
Change since picked 0.00
Stop Loss at $45.00

February 1, 2001

SunGard Data Systems took a fractional loss on Thursday for the third day this week. The company, which provides integrated technology solutions, principally proprietary software and application services to the financial services industry, is now one week away from its fourth-quarter earnings announcement. The company will report on Thursday, February 8th, so we will drop this play by the close of trading on Wednesday per our policy to never hold a play through earnings. SDS is also one of our split candidates and could announce with earnings. The company currently has 132 million shares outstanding and 320 million authorized, enough for a 2:1 split. SDS has previously split its stock at this level once in 1995 and again in 1997, both were 2:1. In the meantime, the stock has been experiencing resistance at $51.00 and now at $50.00, the 5-dma. Support rests back at the 10-dma at $49.10, the 20-dma at $47.88 and the 100-dma at $46.75. Consider opening a new position if SDS bounces off its support level at $49.10, or cuts through resistance on good volume, meaning at least 500,000 shares by noon. We will keep our stop loss posted at $45.00.

Picked on January 23rd @ $48.81
Change since picked +0.69
Stop Loss at $45.00

January 30, 2001

Despite two attempts this week, SunGard Data Systems has not been able to climb above resistance level at $51.00. On Sunday, we mentioned that the stock could encounter resistance at $50 and $51, and indeed that has been the case. The company that provides integrated IT solutions and "eprocessing" for financial services, has been stopped cold at the $51.00 level of resistance both days this week. One key element that has been missing is the volume. Both days the stock traded on volume of 440,000 shares well below the average three-month trading average of 842,000. The stock has experienced breakout volume exceeding 1 million shares in the recent past, and we'd look for the same enthusiasm to accompany any move through the $51.00 -$52.00 levels. On February 8th the company will report its fourth-quarter earnings. Looking at the chart, we now note that the stock has support at the 50-dma at $48.67, the 20-dma at $47.50 and the 100-dma at $46.37. Resistance is lined up at the half-century mark, $51.00 and $52.00. Look for a bounce off support with volume exceeding 500,000 by midday as a possible entry point for a new play. We will continue to post our stop loss at $45.00.

Picked on January 23rd at $48.81
Change since picked +1.18
Stop Loss at $45.00

January 28, 2001

SunGard Data Systems is a global leader in integrated IT solutions and eProcessing for financial services. SunGard is also the pioneer and a leading provider of high-availability infrastructure for business continuity. With annual revenues in excess of $1 billion, SunGard serves more than 10,000 clients in over 50 countries, including 47 of the world's 50 largest financial services institutions. This week SDS continued its march higher and posted a 7% gain. The company is coming up on earnings scheduled for February 8th, with EPS estimates at $0.47/share. Last quarter, the company beat estimates by a penny and reported $0.43/share, which was the 5th quarter in a row that the company either beat or matched analysts expectations. We are looking for more upside from here as we draw closer to the report date. Currently the stock has buying support at the 50-dma at $48.54 followed by the 20-dma at $47.30 and the 100-dma at $46.08. Resistance remains at the half-century mark and then $51.00. Use a quick bounce off a support level as a possible entry point for a new play. Watch for rising volume when considering new plays. The average volume is 853,000 based on a 3-month average, so look for volume over 500,000 by midday as an indication of investor confidence when looking at this play. We will keep our stop at $45 to minimize our down side risk.

Picked on January 23rd at $48.81
Change since picked +1.07
Stop loss @ $45.00