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by 12/19/2000 10:48 AM
Stocks quoted in this article:
Solectron (SLR – 30.75), the world's largest contract electronics manufacturer, announced fiscal first-quarter results after yesterday's market close. Earnings of 29 cents per share beat the Street views by a penny. Revenue doubled, while net income rose 74 percent. The company forecast earnings for 2001 of $1.22 to $1.25 per share, compared to consensus figures of $1.15.

This was excellent news, since the contract manufacturing firms have suffered steep stock declines recently, due to warnings of slower sales from their clients who produce computers. Shares of SLR are trading at about half of their 52-week high of 52-5/8 on October 24. Yet, this morning on CNBC, the company's chairman and CEO painted a rosy picture for SLR's future. He stated that a slowing economy causes more companies to outsource in order to save money. Demand for data networking and telecommunications products was said to have offset the slowdown in personal computer and mobile phone manufacturing. But, some analysts feel it is only a matter of time before the slowdown hits SLR as well. Only time will tell.
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by 12/19/2000 9:47 AM
Stocks quoted in this article:
In the past week, optical networker Sycamore Networks (SCMR - 50-1/8) has been unable to follow through on a rally that saw the stock nearly double in value from its November 30 intraday low to its December 12 intraday high. SCMR has dropped 28 percent since its December 12 close. In the process, the shares have moved back below their 20-day moving average. This trendline has quelled attempts to rally several times over the past four months, proving staunch resistance during this decline.

In yesterday's option activity, the January 70 call saw heavy volume. Altogether, over 6,900 contracts changed hands on this out-of-the-money option, causing open interest to rise by over 5,600 contracts.
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by 12/19/2000 9:46 AM
Stocks quoted in this article:
The PHLX Oil Services Sector Index (OSX - 120.03) added nearly nine percent in yesterday's trading after a pair of research reports predicted strong spending on oil and gas exploration and production in 2001. With the explosive move to the upside on Monday, the OSX was able to overtake its 10-month moving average. With the exception of last month, the OSX had not failed to finish a month above this trendline since February 1999. Last month, the index pulled back to find perfect support at its 20-month moving average.<
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by 12/19/2000 9:45 AM
Stocks quoted in this article:
Harrah's Entertainment (HET - 25-5/16) owns and operates casino-resorts and riverboats. The stock rebounded in yesterday's trading, adding over four percent and reversing a decline that had seen the shares give back over 13 percent during December. From a technical perspective, HET has found support in the form of its converging 10-month and 20-month moving averages.

In yesterday's option activity, the February 25 call saw heavy volume. A total of 3,000 contracts crossed the tape on the option, consisting of 1,000-contract and 2,000-contract block trades. <
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by 12/18/2000 2:58 PM
Stocks quoted in this article:
We are seeing a sign today that perhaps investors and speculators are becoming more cautious regarding this market. The CBOE Volatility Index (VIX – 31.40) is actually up .64 percent today while the S&P 100 Index (OEX – 694.41) is also ahead. This is probably due to the uncertainty surrounding tomorrow's Fed meeting. <
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