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by 11/17/2000 9:57 AM
Stocks quoted in this article:
Tenet Healthcare (THC – 40-7/8) is the second-largest hospital chain in the United States. Healthcare issues have been strong recently and Wednesday, the company issued positive comments going forward. They have experienced above-average admissions the last two months and are optimistic about mid-teens earnings growth rate for fiscal 2001, which will be halfway through at the end of this month.

Yesterday, the stock overcame its previous high of 40-1/2 from October 18 to reach a new 52-week high of 41and closed sitting just above its 10-and 20-day moving averages. It has also closed above its 10-and 20-week moving averages every week since April. Options are available on THC. There is significant open interest in the November 35 call, which expires today and shows 5,885 open contracts. The December 35 call has 1,555 open contracts. <
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by 11/16/2000 4:56 PM
Stocks quoted in this article:
In late-afternoon trading, it appears that an institution rolled out a call position on energy firm Noble Affiliates (NBL - 40-9/16). A 5,000 contract block crossed the tape on each of the November and December in-the-money 35 calls. Since the December 35 call had no open interest before today, we can surmise that this institution sold its position in the November 35 call and rolled it out to the December 35 call. Based on the prices received for the sale and subsequent repurchase, the rollout cost the firm in question approximately $625,000.
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by 11/16/2000 1:53 PM
Stocks quoted in this article:
Before the market's opening bell today, American Greetings (AM – 11-1/2) said it expects to report fiscal third-quarter earnings of 50 cents per share, well below the Street consensus of 91 cents per share. The company also announced that it expects its full-year figures to come in around $1.30-to-$1.35 per shares versus current expectations of $1.98. AM officials also noted that the company would undergo a reorganization and will cut its quarterly dividend to 10 cents a share from 21 cents.

The news created such an imbalance of selling pressure in the market that the stock did not start trading until 10:28 this morning. The shares gapped down with the first trade by 7-1/2 points, or almost 38 percent.

On the options front, the 90 open contacts currently residing on the November 17-1/2 call saw their value dissipate from a bid of 2-1/2 yesterday to zero, while the previously worthless 70 open contracts at the November 17-1/2 put strike soared to 5-3/8 per contract.
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by 11/16/2000 1:48 PM
Stocks quoted in this article:
Causing a shake-up in the forest and paper industry today is Willamette (WLL – 47-7/16), which last night rejected Weyerhaeuser's (WY – 41) buyout offer. The offer was for $5.3 billion, or $48 per WLL share. This represented a 38-percent premium over the equity's closing price on Friday (the session before the offer was originally announced). WLL's board unanimously rejected the proposition, saying it was not in the company's best interest.

WY officials expressed disappointment and said that they will respond to WLL later today. WLL shares are trading over a percent higher today, while WY has dropped nearly four percent on news of its rejection.
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by 11/16/2000 1:13 PM
Stocks quoted in this article:
Although, nine days after the election, the two major Presidential candidates continue their legal wrangling, it appears the AMEX Morgan Stanley Healthcare Payors Index (HMO – 448.79) is declaring George W. Bush the victor. Since Election Day, the HMO has appreciated over 12 percent, only ending the day in the red once. Today, the HMO has tacked on another 1.5 percent, amid general weakness in the broader market.
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