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by 1/22/2001 9:02 AM
Stocks quoted in this article:
Dell Computer (DELL – 25-5/8) sent out an earnings warning early this morning that immediately brought down the Nasdaq Futures contract (ND/H1 - 2656) and caused the company's stock to trade more than two dollars below its Friday close in pre-market activity. DELL says they will miss fourth-quarter estimates because of declining demand and global economic conditions, even with a 40-percent increase in shipments over last year. Revenue will still grow by 25-27 percent compared to last year's figures, but earnings per share will likely fall into the range of 18-19 cents, compared to previous estimates in the 25-26 cent range for the quarter.
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by 1/22/2001 8:48 AM
Stocks quoted in this article:
One of the worst-performing sector indices on Wall Street last year was the PHLX Box Maker Index (BMX – 147.66), which declined by over 38 percent in 2000. Thus far in 2001, the BMX has added over 26 percent. The BMX rallied a gaudy 14.5-percent amid the Fed-induced market spike on January 3. Subsequently, the group has used the combined support of its 10-day and 20-day moving averages to continue its push higher. The BMX's winning ways may come to an end today, however, as industry giant Dell Computer (DELL – 25-5/8) pre-announced an earnings shortfall this morning.<
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by 1/22/2001 8:48 AM
Stocks quoted in this article:
Schlumberger (SLB – 73-11/16) was able to halt three straight losing sessions in last Friday's trading. Last week, the 80-85 region once again proved to be resistance for the shares. This level has stalled the shares on numerous occasions over the past three years.

It appears as though a large spread position was initiated on the shares on Friday using the February 80 and 85 puts. Both options saw over 4,000 contracts cross the tape. Option activity on the remaining February options was very light by comparison.
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by 1/22/2001 8:47 AM
Stocks quoted in this article:
Atmel (ATML – 17-1/4) develops and manufactures high-performance memory and logic integrated circuits. The shares have been slowly springing back to life as investors return to the chip sector. ATML has used the combined support of its 10-day and 20-day moving averages to add nearly 50 percent thus far in 2001.

The February 15 call on ATML was active in last Friday's trading. Just over 8,000 contracts changed hands on the in-the-money option with the majority of the day's volume comprised of a single 6,000-contract block trade. Open interest on the option rose by over 6,700 contracts as a result of Friday's trading. <
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by 1/19/2001 5:11 PM
Stocks quoted in this article:
ICN Pharmaceuticals (ICN – 22-1/2) is warning of a slowdown. Citing higher research expenses and a "temporary" slowdown in royalties for one of its drugs, ICN Pharmaceuticals forecast profits for 2000 and 2001 that are significantly below analysts' expectations.

The company expects per-share profit to come in between $1.25 and $1.30 for 2000 and between $1.50 and $1.55 for 2001. The Street had expected the company to post earnings of $1.68 per share in 2000 and $1.96 per share in 2001. ICN also expects to register "mid-single-digit" revenue growth for the year 2000. The company expects to formally report its fourth-quarter and full-year financial performance in the first week of March.

The shares gapped lower on the open today by 3-9/16, or 13 percent, and have not looked back. Today's price action has the shares trading at their March 200 levels. The stock had a near-term peak in October at 41-3/4.

In options activity for ICN, the February 35 call and February 40 call represent the peak concentrations of options open interest with 1,139 and 1,220 positions open, respectively. The February 30 put at just 632 contracts open is peak for the put side of the equation.
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