UpdateFebruary 15, 2001
Universal Health tumbled today ahead of its earning report, which was set for after the market’s close. We are dropping this play ahead of its report. For now we exit with a small profit.
Picked on February 1st at $81.99
Profit/Loss + 2.66 ( +3%) (Stopped Thursday @ $84.65)
Best Profit +10.01 (+12%)
February 13, 2001
The earnings are coming, the earnings are coming! Consider this our Paul Revere warning that this will be our last report on UHS before they deliver its fourth-quarter results on Friday. We have covered this split candidate for a couple weeks, and now its time to show us the money and hopefully a split announcement. UHS owns and operates acute care hospitals, behavioral health centers, ambulatory surgery centers, radiation oncology centers and women's centers. On Monday, the stock sliced its way through the 100-dma at $90.00, which up until that time had been resistance. On Tuesday, the advance held up and now UHS could move still higher going into its earnings report. One note of caution, however, is the volume. Normally, UHS trades on volume of 450,000 shares, but both yesterday and today the volume has been much lower in the 250,000 - 300,000 range. Additionally, today a Japanese Candlestick pattern called a Doji formed on the chart. A Doji reflects uncertainty in the stock, and this uncertainty in the stock coupled with low volume should give traders reason to pause. Those who have a high-risk tolerance may still wish to try a last minute play on UHS. A bounce off support at $90.00 might trigger an entry point if the volume is good. We'd look for volume exceeding 300,000 shares by midday. We will drop this play by Thursday per our normal policy. Our stop loss will remain at $84.00.
Picked on February 1st at $81.99
Change since picked +9.07
Stop Loss at $84.00
February 11, 2001
On February 15, late in the day, UHS will report its results for the 4th quarter of 2000. Expectations are for the company to report 0.76 cents. The company has beaten its earnings expectations for the last four quarters, which might be why ING Baring recently upgraded the stock from a "hold" to a "buy" rating. UHS owns and operates acute care hospitals, behavioral health centers, ambulatory surgery centers, radiation oncology centers and women's centers. The stock has made a "healthy" recovery since it bounced off the 200-dma at $74.50 in late January. Volume has been building as the stock advances and the MACD continues to be strong. We see the possibility of a split announcement with this week's earnings report. Currently, the company has 29.8 million shares outstanding and 50 million shares authorized, enough for a 3:2 split. UHS' only split recorded is a 2:1 back in 1996 when the stock was trading at $56.00. Next week, any new plays should be considered risky, so judge you own tolerance accordingly. Possible last minute plays might include a bounce off one of the support levels, either the 5-dma at $87.00 or the 10-dma at $84.44 or a conquering of resistance at $90.00 on strong volume. Strong volume here would mean more than 250,000 shares by midday. We will drop this play by Thursday per our normal policy. Our stop loss will remain at $84.00.
Picked on February 1st at $81.99
Change since picked +6.03
Stop Loss at $84.00
