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by 2/8/2001 12:40 PM
Stocks quoted in this article:
Gap (GPS - 26.97) same store sales were released today and fell well short of analysts' expectations. The company reported that same-store sales fell 12 percent. Analysts had projected same-store sales would fall 6.2 percent. GPS also steered analysts' earnings expectations lower for the fourth quarter. This is just another in a string of earnings warnings for the Gap, in the past year. The stock is currently trading off 9.13 percent, on the news.

Apparently, some options traders had expected better news from the company. Front-month call open interest at the 30 and 35 strikes exceeds 10,000 contracts, relative to total put open interest of approximately 2,500 contracts.<
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by 2/8/2001 12:22 PM
Stocks quoted in this article:
Internet search engine firm Ask Jeeves (ASKJ – 2-17/32) said last night that it lost 53 cents per share in the fourth quarter, a penny behind the consensus estimate on Wall Street. The firm's revenue climbed $12.1 million over last year to $23 million, but also failed to equal analysts' expectations. Officials with the firm said that year-over-year revenue for the first half of 2001 will likely be flat with 2000 numbers. The company cited decreased advertising revenue as a chief reason behind this shortcoming.

The stock is trading more than seven percent in the red today. Since November 1999, the shares have tumbled more than 98 percent from their all-time peak.
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by 2/8/2001 11:18 AM
Stocks quoted in this article:
Microsoft (MSFT - 63-15/16) received some harsh words from an analyst at a major brokerage firm this morning. In downgrading MSFT from a "long-term buy" to a "long-term accumulate" rating, the analyst noted that "we don't find MSFT's potential upside particularily compelling." In addition, he stated that earnings growth greater than ten percent will be difficult to attain for the tech giant. MSFT has had a rather muted response to the news, as the shares are holding support at the site of their 10-day moving average, down 1.55 percent on the day. <
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by 2/8/2001 10:45 AM
Stocks quoted in this article:
A mysterious bidder has entered the fray of bidding for the assets of Trans World Airlines (TWA – 1.32). Jet Acquisition Group, reportedly a group of former airline executives, says they may offer about one-billion dollars, which would be close to double the previous bid by AMR Corp. (AMR – 36.09), parent company of American Airlines. AMR hoped to have a deal to absorb the assets and employees of bankrupt TWA into its own company. The new bidding group feels it is important to maintain TWA as a separate entity, in the interest of competition. It looks like the skies are heating up, with all this consolidation in the airline sector. <
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by 2/8/2001 10:08 AM
Stocks quoted in this article:
Following directly on the heels of its chief competitor, Anheuser-Busch (BUD – 42.30), Adolph Coors (RKY – 70.73) announced earnings for the fourth quarter this morning. Although RKY's sales do not surpass those of BUD, the company did post a positive earnings surprise, unlike its midwestern brethren. RKY officials said the firm earned 40 cents per share for the reporting period, edging past Street estimates by a penny and topping last year's numbers by more than 20 percent. Additionally, officials noted that 2000 was the fifth consecutive year that the company achieved double-digit earnings growth.

The shares have been trying to pull themselves out of an early-year hangover that saw the equity decline over 25 percent between the beginning of 2001 and January 24. Over the last two weeks, the stock has tacked on 15 percent, rising above its 10-day and 20-day moving averages in the process. The security's newly descending 10-week moving average is lodged directly overhead, however, near the 71 level.

RKY is an optionable stock but it is lightly traded. The most-active RKY option is the February 60 put, home to 508 open contracts.
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