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Turnstone Systems (TSTN - 10-3/8) provides loop management solutions. Its solutions enable local exchange carriers to deploy and maintain digital subscriber line (DSL) services.
I have found that in a weak stock, one bearish chart gap is usually followed by a second. Such was the case today as the company guided analysts lower on its fourth-quarter revenue. The shares opened down 16-1/2 points and were unable to fill this gap today, creating the second bear gap. To get the report from the horse's mouth click on
Turnstone Guides Investors . The company will give guidance on it first quarter 2001 during a conference call concerning the fourth-quarter shortfall. The shares are currently down by over 60 percent in today's market.
Prior to the announcement, the shares had been consolidating along the 20 level and appeared to be reversing course upward. Friday's close actually had the stock closing above its downtrending 20-day moving average for the first time since September 1. The high for the day coincided with the site of peak front month open interest option, the November call at the 30 strike.
Despite the plunge in the shares today, the November 15 call saw volume of 442 contracts on no open interest.