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by 12/21/2000 9:51 AM
Stocks quoted in this article:
Cypress Semiconductor (CY - 19-3/16) announced at the end of November that it would re-purchase up to five million of its shares. The company sited the undervaluation of the shares at the time and the stock seemed hesitant to move on the news. Another story hit the wire this morning again announcing that the firm plans to buy back five million shares. The story was not clear if this adds to the total of the buyback, or whether this is simply a reiteration of the original story. With about 130 million shares currently available for trade, the buyback represents an anemic 3.8 percent of this float, and is therefore not an earth-shaking event. If the company is indeed adding another five million shares to its buyback (for a total of 10 million shares), it represents a more exciting 7.69 percent.
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by 12/21/2000 9:49 AM
Stocks quoted in this article:
Brokerage giant Goldman Sachs (GS - 90) reported fourth-quarter earnings on Tuesday before the opening bell. The company exceeded expectations, reporting a profit of $1.50 a share versus a Street estimate calling for $1.38 a share. Earlier this month, the stock was able to push above its overhead 20-day moving average, which had acted as tenacious resistance during the equity's decline since September. This week, GS has been able to gain support from this key moving average.

Yesterday, the January 90 call on GS was active. Over 9,300 contracts crossed the tape on the option yesterday, with about 7,100 contracts of the volume translating into new open interest. <
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by 12/21/2000 9:47 AM
Stocks quoted in this article:
PeopleSoft (PSFT - 33-9/16) shares have been unable to dodge the selling pressure in the broader market this week. The stock lost over 20 percent from its Monday close in Tuesday's and Wednesday's trading. This decline has sent PSFT below its 20-week moving average, a trendline that had been providing support for the shares during their rally in the latter half of this year.

In yesterday's trading, the January 40 put was active. Over 6,000 contracts changed hands on this in-the-money put yesterday. Open interest on the option doubled to approximately 9,300 contracts as a result of the action. <
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by 12/20/2000 4:25 PM
Stocks quoted in this article:
International Paper (IP – 37-5/8) was the latest sinner to emerge from the earnings confessional today. Firm officials said that a slowing economy and rising energy costs have contributed to what will likely be a hefty shortcoming for the fourth quarter. IP is now expected to earn 30 cents per share in the three-month period, as opposed to the 45-cents-per-share previously anticipated by Wall Street. The stock's penance was a decline of almost five percent on above-average volume. IP still managed to close right on its 10-day moving average. The security has maintained its footing above this short-term trendline since November 28, although it remains below its 20-month moving average for the 11th month running. <
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by 12/20/2000 3:59 PM
Stocks quoted in this article:
Investors may be wanting to throw Ma Bell from the train lately, given the recent lackluster performance seen from AT&T (T – 19). Technically speaking, the stock has been sitting below its 20-month moving average since April. This means the stock has been in bear-market mode for nearly eight months. The last time the stock spent more than six months beneath its 10-month and 20-month moving averages was in late 1994-early 1995. The shares are presently sitting nearly 70 percent from their annual high of 61 which was posted in March.

The shares have surrendered nearly eight percent today to come within striking distance of their annual lows. Fundamental concerns contributed to T's decline, as the firm's board announced it may shave its dividend from 88 cents to 20 cents per share. This would be the first dividend in the company's more-than-100-year history.
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