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| DGX - Quest Diagnostics | Week Ended: 12/16/00 |
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| Price |
127.50 |
P/E Ratio |
95 |
52 Week High |
141.00 |
| Last Week |
+ 8.69 |
Earnings Date |
1/19/01 |
52 Week Low |
28.88 |
| Picked At |
104.38 |
Date Picked |
11/24/00 |
Sector |
Healthcare |
| Activity |
| Current |
127.50 |
Open |
127.00 |
Change |
1.50 |
| Low |
120.31 |
High |
127.94 |
Volume |
496,100 |
ZACKS | NEWS | PROFILE | HISTORICAL PRICES | OPTIONS | D-CHART |
| Company Description Quest Diagnostics is a clinical laboratory testing company which offers testing services used by the medical profession in the detection, diagnosis, monitoring and treatment of diseases. For the 9 months ended 9/30/00, net revenues increased 86% to $2.58B. Net income before extra. item rose from $13.3M to $76.7M. Revenues reflect the SBCL acquisition and improved operating performances. Earnings benefitted from improved gross margins.
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| Play Description December 10, 2000
Quest Diagnostics is a leading provider of medical testing services. The stock traded to an intra-day high of $125.94 on volume of 382,000 shares during Friday’s session, following two Bush victories in the Florida courtrooms. Unfortunately for the stock, Al Gore won a major case in the Florida Supreme Court after the bell on Friday so we may see some selling on DGX Monday morning. DGX appears ripe for a split with the stock trading well above $100/share and with enough authorized shares for a split. However, DGX has no split history so an announcement could come at their next BoD or with their January earnings release. From a technical perspective, DGX has support at the 5-dma, now up to $120.61 with additional support at $118.25, the December 5 intra-day low. Resistance has moved up to Friday’s intra-day high of $125.94 and then $133, the October 20 intra-day high of $133. Traders may consider entry points on a bounce off of $120.61 or a move above $126 on volume greater than 300,000 shares by midday. We have moved our stop up to $118 in accordance with our current conservative trading style and to lock in gains.
Picked on November 26th @ $104.38
Change since picked +19.13
Stop Loss @ $118.00
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| Update December 14, 2000
Quest Diagnostics, a leading provider of medical testing services, is having some trouble breaking through resistance at $130. On Thursday, DGX traded to an intra-day high of $129.13 early in the session. Unfortunately, the stock reversed directions and finished the day at $126 on light volume of 288,000 shares. Hopefully, DGX will be able to get above $130 and challenge its all-time high in the near future. Until then, support is the 5-dma at $124.81 with additional support at $121.84, the 10-dma. Resistance is Tuesday’s intra-day high of $128.63 and then $130 just above Monday’s intra-day high. A bounce off of $124.81 or a move above $128.63 on midday volume greater than 300,000 shares may be considered possible entry points. Our stops remain at $118 to lock in profits.
Picked on November 26th @ $104.38
Change since picked +21.63
Stop Loss @ $118.00
December 12, 2000
Quest Diagnostics ran into some resistance on Monday. Shares of the medical testing service provider hit an intra-day high of $129.63 before closing at $124.94 on volume of 434,000 shares. On Tuesday, DGX was hit with light profit taking, trading to an intra-day low of $123 on light volume of 372,000 shares. Despite Tuesday’s pullback, DGX remains in a firm upward trend. Going forward, support is holding at the 5-dma, currently at $122.63, with stronger support at $118.25, the December 5 intra-day low. There is resistance at Tuesday’s intra-day high of $128.63 and then the $130 mark, just above Monday’s intra-day high. Traders should be on the lookout for a bounce off of $122.63 or a move above $128.63 on midday volume of at least 300,000 shares to open new positions. We are leaving our stops up to $118 to protect gains.
Picked on November 26th @ $104.38
Change since picked +19.13
Stop Loss @ $118.00
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