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by 11/20/2000 11:29 AM
Stocks quoted in this article:
Shares of Mylan Labs (MYL – 25-11/16) have started to cascade noticeably lower this morning after opening down 3/16 from Friday's close. Around 11:30 a.m., the stock was posting a 6.4-percent loss.

Shortly after the open today, it was reported that the company's Chief Financial Officer had resigned, but was apparently rapidly replaced. The change puts in place an unknown variable in the company's fundamental equation and investors are sorting out the facts.

Ever since early August, the equity has been range bound between the 24 and 30 levels. Today's trek lower has taken the equity near the bottom of this range.

According to Schaeffer's Daily Sentiment, the Schaeffer's put/call open interest ratio (SOIR) for MYL had been trending downward (toward more optimistic levels) since early September, despite the shares' sideways movement. Currently, peak front month open interest lies in the December 25 call option with 5,046 positions. This represents an increase of 1,210 positions over Friday's open-interest number. This continued optimistic positioning from the speculative crowd is discouraging for MYL's short-term outlook, in our contrarian view. <
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by 11/20/2000 10:47 AM
Stocks quoted in this article:
We have previously mentioned positive stock movement in brewing company Anheuser-Busch (BUD – 47-5/8). Now, competitor Adolph Coors (RKY - 71-5/8), maker of the number-three selling beer in America, has also seen a breakout in its stock price. On Friday, RKY hit an all-time high of 72-5/8 after trading primarily in the 60s range since June. Over the last seven trading sessions, the stock has moved up to close above its 10-day and 20-day moving averages.

Last Wednesday, in spite of a downgrade from "outperform" to "neutral" and gapping down at the open on high volume, the stock closed the day higher. Thursday and Friday saw the shares soar higher, pulling up and away from their moving averages.

Possible reasons for the recent activity include an October agreement for RKY to distribute Molson products in the United States and Friday's announcement of an 18.5-cent-per-share quarterly dividend. Options are available for this issue but they trade very lightly.<
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by 11/20/2000 9:40 AM
Stocks quoted in this article:
Semiconductor firm Texas Instruments (TXN - 43-3/4) may face some selling pressure this morning. Earlier today, a major brokerage firm cut its earnings numbers on TXN. Technically speaking, TXN closed below both its 10-day and 20-day moving averages on Friday. <
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by 11/20/2000 9:36 AM
Stocks quoted in this article:
This morning, a major brokerage firm cut its rating on eBay (EBAY - 43-7/16) from a "buy" to a "neutral" rating, citing concerns over the e-tailer's aggressive 2005 sales projections. In pre-market activity, shares of EBAY traded as low as $38, compared with Friday's closing price of 43-7/16. <
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by 11/20/2000 9:11 AM
Stocks quoted in this article:
According to a major financial newspaper, Quaker Oats (OAT - 90-5/16) board of directors met over the weekend to discuss takeover bids from Coca-Cola (KO - 61-7/16) and France's Danone. This comes just two weeks after the firm rejected a $14.8 billion takeover offer from PepsiCo (PEP - 43-15/16). One of the reasons OAT is being heavily courted by the major soft drink companies is the firm's Gatorade brand, which commands in excess of 80 percent of the sports drink market and recorded sales of $1.8 billion last year. <
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