Trend Micro Incorporated develops, markets and supports antivirus software and management solutions for enterprise-wide computer systems and personal computers, delivering virus protection at each access point within the corporate network. For the FY ended 12/31/00, net sales rose 59% to Y21.83B. Net income rose 91% to Y4.72B. Results reflect increased demand for security products, partially offset by increased losses on securities.

March 22, 2001

The technology stock recovery that we saw today was not solely reserved for the big names. Trend Micro, which is in the anti-virus solutions business, has seen a nice percentage gain this week. It is interesting to note that, despite its single digit share price, TMIC may be on the verge of a split run. The company announced a 2:1 split back in February that will be made payable on May 18th. A more immediate help to the stock has probably been a couple of good news items concerning TMIC this week. On Wednesday, this Japanese company announced the opening of a new call center in Fort Worth, TX that should help TMIC to expand its American business. Technically speaking, we anticipate possible entry points if TMIC can cross above its 50-DMA of $8.75 tomorrow. We would also like to see this move accompanied by volume of over 20,000 shares by midday. Another positive development is the fact that the MACD turned positive today. TMIC is a somewhat speculative play and is probably not for all of our subscribers. That said, we are impressed with the stock's ability to post a positive week in the face of so much broad market selling.

Picked on March 22nd @ $8.38
Change since picked +0.00
Stop Loss @ $7.00

March 29, 2001

We were a little bit surprised that TMIC had decided to split just less than a month before the previously announced payable date of May 18th. The split caused a quick spike in the share price right to the resistance of $5.50. Congrats to those of you who sold the stock as soon as it started dropping from that level. Due to its relatively low stock price and the unlikelihood that TMIC will be announcing any more splits for the foreseeable future, you probably will not see TMIC on our Current Play list again for a long time.

Picked on March 22nd @ $4.19
Profit/Loss +0.06 ( 1%) (Stopped Thursday @ $4.25)
Best Profit +1.31 (31%)

March 27, 2001

Although it may seem odd to see a stock under $10.00 on our Split Run list, this Japanese provider of anti-virus solutions has moved up nicely following a series of positive news items. The latest positive development came yesterday when TMIC announced that it had begun shipping the first integrated virus solution for the Network Appliance (NASDAQ:NTAP) platform. TMIC’s recent advance has enabled us to raise our stop-loss to $8.50. Today's action bodes well for a continued advance. Not only did TMIC close above its 50-DMA of $8.94, but it also accomplished this feat with good volume that fell just short of 70,000 shares. If the stock opens tomorrow above support of $8.94, traders may want to add to positions in anticipation of a rally to the next resistance of $10.25. The MACD and OBV are both trending in the right direction, which tells us we may be able to achieve greater profits with this play. However, should TMIC gap up of three quarters of a point or more at the open, you may want to wait for a pullback before jumping on board.

Picked on March 22nd @ $8.38
Change since picked +0.87
Stop Loss @ $7.00

March 25, 2001

Trend Micro is a Japanese company that provides IT managers with anti-virus and other computer protection services. Just last week, TMIC announced that it has expanded its presence in the US by opening up a call center in Fort Worth, Texas. This should enable the company to better represent its American clients. If you were wondering, TMIC is not a typical Splittrader.com play due to its single digit price and low average daily volume of under 50,000 shares. Although these facts make TMIC a somewhat speculative play, the stock is nonetheless going to split 2:1 on May 18th. The potential for a split run, as well as the nice relative strength that TMIC exhibited last week is what makes TMIC an attractive play. A move above the 50-DMA of $8.81, coupled with volume exceeding 50,000 shares for the day, could be the trigger for a nice rally to the next resistance point of $10.25. The MACD broke a long downtrend late last week, which is another good sign that TMIC could continue in the right direction. In addition, money flow is positive and the RSI leaves plenty of upside potential before the stock would be considered overbought.

Picked on March 22nd @ $8.38
Change since picked +0.06
Stop Loss @ $7.00