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by 1/9/2001 3:55 PM
Stocks quoted in this article:
Copy guru Xerox (XRX – 5-13/16) said today that it has no plans to file for bankruptcy protection, although it did admit to hiring the Blackstone Group as a general financial advisor. The Street took this news as though maybe the company doth protest too much, as the stock is trading nearly nine percent in the red.

XRX shares have taken a significant tumble in recent months. The equity is now sitting 91 percent off its May 1999 all-time high and 80 percent from its 52-week peak, which was achieved in mid-May. Options players seem to believe XRX is poised to make a recovery, as Schaeffer's put/call open interest ratio (SOIR) for the equity stands at an extremely bullishly slanted 0.18. This means that there are only 18 open puts in residence for every 100 open calls. What's more, this rating is lower than 99.2 percent of all other SOIR readings over the past 12 months. This overt optimism is a disconcerting sign, from our Expectational Analysis® perspective.
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by 1/9/2001 3:14 PM
Stocks quoted in this article:
Before the market open this morning, Ditech Communications (DITC - 6-15/16)) lowered its prior earnings and revenue expectations for its third-quarter and fiscal 2001 periods. DITC said it expects to report third-quarter revenue of between $12.5 million and $14 million, yielding pro forma results of between breakeven and a loss of 5 cents per share. The Street had been expecting a gain of 46 cents a share.

The company attributed the shortfall to delayed product shipments and slower capital expenditures by its customers. Trading on the telecommunications equipment supplier was halted for 15 minutes at the open today. The shares finally opened down by 1-3/8 points and then proceed to achieve a new annual intraday low of 6-5/8.

DITC had its initial public offering in June 1999, releasing three million shares at $11 (pre-split). A secondary offering was made in October 1999 that made available 2.25 million shares at $51.50 (pre-split). The stocked traded higher to a peak of 140-3/16 in March of 2000.

The options configuration on the stock remains at a bullishly slanted 1,759 open put positions versus 6,029 call open positions.

Just three analysts currently cover the shares, all bestowing a "buy" or better rating on DITC.


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by 1/9/2001 2:42 PM
Stocks quoted in this article:
Between 1:25 and 1:40 p.m., Apple Computer (AAPL - 17-1/4) experienced a burst in volume and a 4.4-percent push higher. This time period coincided with financial network CNBC's broadcast that showed AAPL's head honcho, Steve Jobs, showing off the firm's latest technology at the MacWorld Conference and Expo in San Francisco. The PC firm's newest product is a PowerBook G4, which is constructed of titanium. The laptop will be only an inch thick and the base model will be priced around $2600.00. The firm also announced a new operating system, which will be available this March. The stock, which remains nearly four percent in the black for the day, has relinquished about half of its earlier 15-minute boost. <
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by 1/9/2001 2:19 PM
Stocks quoted in this article:
The March 30-year Treasury Bond futures contract (US/H1 - 105-10/32) is still in negative territory for the day, but has moved well off its lows. Earlier today, the contract made an intraday low of 104-23/32, which roughly corresponds with another test of the rising 20-day moving average. This trendline has paired with the 10-day moving average to support every daily close except one since November 10. <
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by 1/9/2001 2:18 PM
Stocks quoted in this article:
Openwave Systems (OPWV - 31) shares are trading over 12-percent higher in mid-afternoon trading. The move provides little consolation to long-term holders of the stock. The shares are still more than 85 percent off their March all-time high of 208, and have given back 34 percent in the past three trading sessions alone.

Today, the January 35 call is active on OPWV. Over 8,200 contracts have changed hands on this out-of-the-money option. The remaining options on OPWV are seeing only modest activity. <
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