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Dish Network Breaks Out
By Gary Morrow
3:22 P.M. EDT
is up sharply following its first-quarter earnings
Today's 18% surge began with a powerful gap higher open that easily pushed the stock above its 200-day moving average for the first time since November 2007. Volume on this ramp is running extremely heavy and will be the heaviest positive day for the stock since late 2007.
The breakout move today continues an impressive run that Dish began in early March after a successful test of its 2008 lows. The stock spent very little time under $9.00 while bottoming out eight weeks ago. Since Dish turned higher in the second week of March, the stock has traded in a narrow channel. This rally carried the stock 80% higher prior to today's big jump.
At this point, the stock is overextended but, in the process, has left behind strong support. A light-volume pullback to the $16.25 area, the stock's 200-day moving average, would be a good spot to buy. This support area also includes the previous monthly highs of $15.50. A short-term base following a low-volume sell off would be healthy for the stock now that its current rally has more than doubled the stock's price.
Early Afternoon Look
By Paul Rubillo
2:04 P.M. EDT
I was able to pull a quick
long for a fast $4 move. I had to decide whether to go long the best name on my long board or short leading contenders
Now that the trade is done, I have refreshed my thoughts to see what I can find this afternoon.
is another short idea that still seems worth keeping on the radar as well.
I am watching recently high-beta plays
for some more guidance on the financials.
seem to be just hanging there as buyers wait.
Principal Financial Group
seem to be having the biggest share of the sellers from the companies announcing secondaries this morning. Keep an eye on these last two plays for shorting opportunities.
are all attracting buyers as I watch the
move back into the green again.
Not much selling in the
"back from the brink" collection.
Health Care Stocks Looking Good
By Alan Farley
12:29 P.M. EDT
Health care stocks have been perking up nicely in the last few sessions. It's the top-performing sector today, with a broad variety of issues moving higher.
is an interesting sector play. The stock rallied into the 200-day moving average about a month ago and has been building a basing pattern since that time. Recent price action shows a small cup and handle pattern, with resistance at $26. A breakout over that level could trigger a strong rally into the low $30s.
Caution, though: The company reports earnings after the bell today.
Activist Campaign Could Lead to Big Gains at Chemed
By Damien Park
11:56 A.M. EDT
and I recently began distributing a research product that combines the two disciplines of activist investing with deep-value company analysis in an attempt to uncover decent undervalued public companies with the potential to generate outsized returns due to an activist investor's involvement.
On Friday we issued a report for
Columnist Conversation readers can access the two-page analysis
-- an influential dissident shareholder with 3.5% of the shares outstanding, is attempting to replace five directors on Chemed's 11-person board at the annual meeting scheduled for May 29. If successful, MMI hopes to use its influence in the board room to split the company in two.
Chemed currently operates in two distinct business segments:
($819 million hospice care provider) and
(the $341 million plumbing business everyone knows).
The central issue is not whether the businesses should be split/sold, but
. Chemed's board says it's not opposed to splitting the two businesses but wants to wait for more favorable economic conditions. MMI believes it will take six months to finalize a tax-free spinoff, so it's more than prudent to begin the process today.
MMI estimates the spinoff could potentially yield an increase in share value of approximately 40% to 75%.
Capital One and Wells Fargo
By Timothy Collins
9:05 A.M. EDT
has drifted lower. If you were short on Friday, then I would not hesitate to either take some off the table, or cover yourself by buying some calls or selling some May 30, May 27 or May 26 puts against the stock.
We have exited Capital One, as well as
Principal Financial Group
and a portion of
just a moment ago. Capital One and Principal have now announced the secondaries we were waiting on.
Short Wells Fargo.
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This article was written by a staff member of RealMoney.com.