Schaeffer's Trading Floor Blog

Readers Respond - Subpoenas

by 3/31/2005 9:41 AM
Stocks quoted in this article:

In response to my post below on subpoenas...Mike says - "Hi, Nick! Don't know if it matters, but JNJ's subpoena came from the US Attorney's office in Newark, NJ, whereas SYK's came from the DOJ. (Also, SYK said that many other cos. in its field were receiving the same thing.) Curious to find out if it's all connected or just coincidence."

My response - To be honest, I am not entirely sure how this is all related as I am seeing slightly different versions of the stories floating around. What I do know is that all but JNJ show relatively low equity scorecard readings: Biomet (BMET) = 3, Stryker (SYK) = 4, Zimmer Holdings (ZMH) = 3.5, Johnson & Johnson (JNJ) = 7

Here is how the stocks are faring on percentage basis today:

  • BMET -8.4%
  • SYK -8.8%
  • JNJ -0.9%
  • ZMH -9.5%


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Forgot...

by 3/31/2005 9:29 AM
Stocks quoted in this article:

I forgot to mention...according to Goldman, the "superspike" mentioned below brings with it a range for oil of 50-105...I guess I am glad we didn't see a "super-duper-spike" as that range would probably be 20-200....


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Faster Than a Speeding...

by 3/31/2005 9:19 AM
Stocks quoted in this article:

Not just a normal spike - but a "superspike"...that is the term Goldman Sachs is using to describe the environment for oil as they have raise their price outlook for crude.

This is being named as the catalyst that has sent oil back above 55 this morning...

I wonder how much pump prices have gone up in the time it took me to write this...

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Stocks quoted in this article:

The data released at 8:30 has left stock futures vacillating...Jobless claims were a little stronger than expected, personal income was slightly below expectations, spending was inline and the core PCE index rose 0.2 percent.


Chart Courtesy of Thomson/ILX

As you can see, the S&Ps sold off ahead of the release, popped as it came out, and then sold off. They now point to a slight positive bias at the open...


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More News

by 3/31/2005 8:46 AM
Stocks quoted in this article:

Another headline that caught my eye discusses subpoenas that Stryker Corp (SYK), Biomet (BMET) and Johnson & Johnson (JNJ) received from the Justice Department regarding contracts they signed with orthopedic surgeons. It looks like these stocks may open under pressure this morning. You can click here to see the release from JNJ.

Another company in this field, Zimmer Holdings (ZMH), did not get a subpoena but the shares are under pressure after a couple of downgrades. You might remember that ZMH is a stock I discussed earlier this month in - "Reader Requested Stock Analysis - Three Points of Interest You Should Be Aware Of" - as I was concerned about how Wall Street had warmed up to the shares. I would keep a wary eye on what happens here...


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