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 8, 2001

Tonight we bid farewell to SunGard Data Systems. We have covered this company for several weeks but are dropping this it ahead of its earnings announcement scheduled after today’s market close. Intra-day, SDS traded as high at $53.95 before trading lower into the close. For now we exit with a small profit.

Picked on January 23rd @ $48.81
Profit/Loss +3.99 (+8%) (Dropped Thursday @ $52.80)
Best Profit +5.14 (+10%)

February 6, 2001

SunGard Data Systems posted a fractional gain on Tuesday on low trading volume. SunGard provides integrated technology solutions, principally proprietary software and application services to the financial services industry. SDS has been one of our split candidates for several weeks and will be reporting its fourth- quarter earnings late Thursday, so per our normal policy we will drop this play as of the close of trading on Thursday. The company has either beaten or matched earning expectation for the last five quarters. This quarter expectations are for an EPS of $0.47. We are holding on for a last minute run into earnings and would like to see some volume accompany that run. The stock normally trades on volume of 800,000 shares based on a three-month average. Currently, support is located at the 50-dma at $48.79 and the 20-dma at $48.22. Resistance is now the half-century mark. Win, lose or draw we will close this play on Thursday and move on to other opportunities. Since this is a very short-term play, please gauge your own risk tolerance before starting a new play on SDS. We will keep our stop at $45.00.

Picked on January 23rd at $48.81
Change since picked +0.25
Stop Loss at $45.00

February 4, 2001

SunGard Data Systems traded lower this week but on very light volume. SunGard is engaged in providing integrated technology solutions and proprietary software solutions to the financial service community. We have been anticipating the stock would begin an earnings run ahead of their Q4 report date, now only four trading days away. The company will report earnings and hopefully announce a stock split on February 8th. Normally the stock trades about 832,00 shares based on a 3-month average, but this week the high volume was recorded on Tuesday at only 550,000. Time is rapidly running out for us to secure a profit in this play. We will drop SDS as of the close of trading on Wednesday since we never hold a play through earnings. Currently SDS has technical support at the 20-dma at $47.92 and the 100-dma at $46.88. Resistance is overhead at the 50-dma at $48.80, the 10-dma at $49.30, and the 5-dma at $49.77 and at $50.00. Consider opening a new position if SDS bounces off its support at $47.92 on strong volume over 1 million shares by midday. Unfortunately SDS slipped below its 50-dma on Friday, so we will closely monitor the MACD to see if it too is going to indicate a new down trend. We'll keep our protective stop at $45.00 on this play, although some traders may want to be more aggressive with cutting losses and set their stops even higher.

Picked on January 23rd at $48.81
Change since picked -0.30
Stop Loss at $45.00