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by 10/30/2000 11:06 AM
Stocks quoted in this article:
One of the top lagging indices this morning is the GSTI Multimedia Networking Index (GIP – 475.2), which has fizzled by more than 22 points, or over four percent. This retreat has the GIP poised to close at levels not seen since early December. The index, which has stepped back by 34 percent since its near-term intraday high on September 1, is now trading beneath its 20-month moving average. The GIP has never closed a month beneath this long-term trendline, which we view as the line of demarcation between a bull and a bear market.

Stocks sending the index lower today include Sycamore Networks (SCMR – 59-5/16), down 9.1 percent; Foundry Networks (FDRY – 68-7/16), down 8.9 percent; Redback Networks (RBAK – 105-1/4), down 7.7 percent; and Qualcomm (QCOM – 69-1/16), down 7.6 percent.


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by 10/30/2000 10:54 AM
Stocks quoted in this article:
As I stated in a Market Observation in late September, Pharmacia (PHA – 53-1/4) had to breach the peak call open interest that had been building on the October 60 call. The shares managed to peak at 60-15/16 before reversing back toward the 50 level on their inability to break free of the strike.

Despite the security's weakness, options investors had maintained an aggressively bullish stance on the stock as the company approached its earnings release. According to Schaeffer's Daily Sentiment, Schaeffer's put/call open interest ratio (SOIR) on PHA stood at a 10th percentile ranking through Friday's options translations. A ranking this low indicated that options traders have been more bearish toward the shares' 90 percent of the time. The November calls at the 50, 55, and 60 strikes greatly dwarf their put counter parts of similar strikes.

The equity gapped down by 3-5/8 points at its delayed open today after reporting third-quarter earnings results of 33 cents per share, matching the Street's consensus opinion. With expectations at a reasonably high level, most investors that trade the shares are already bought into the stock, leaving little buying pressure to offset what selling pressure might enter the market post-earnings.


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by 10/30/2000 9:19 AM
Stocks quoted in this article:
This morning, it was announced that Palm (PALM – 52-7/16) will become a component of the Nasdaq-100 Index (NDX – 3175.25) as of the beginning of trading on November 6. PALM will also be included in the Nasdaq-100 Index Tracking Stock (QQQ – 79-23/32). This provider of handheld computers will replaced Global Crossing (GBLX – 23-1/4), which is delisting from the Nasdaq Stock Market.

On Friday, the stock declined by more than two percent to notch its third straight losing session. The shares remain below their 10-day moving average, but they are still trading above their 10-week trendline. PALM, though, is slated to open this morning's activity higher by over two percent in response to today's news.

While the security has risen above peak November call open interest in the form of 19,132 contracts at the 50 strike, the 60 mark will be another key level for PALM to overcome, as it is the site of 11,114 front-month call contracts.

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by 10/27/2000 3:39 PM
Stocks quoted in this article:
To follow-up a Market Observation on Quest Diagnostics (DGX – 92-1/4), the shares have collapsed by over 10 points on no significant news. This downturn has carried the equity to its lowest intraday mark since July 11 and beneath its 20-week moving average. This intermediate-term trendline has contained all weekly closes over the past year. What's more, DGX is trading beneath the 94 level, a technically significant mark that had offered support for the stock numerous times during the previous three-and-a-half months.

The security's recent technical weakness comes in spite of the company's positive earnings surprise. On October 19, DGX posted third-quarter earnings of 60 cents per share, topping Street estimates by four cents per share. According to I/B/E/S International, it was the firm's sixth consecutive positive earnings surprise.

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by 10/27/2000 2:55 PM
Stocks quoted in this article:
Wild Oats Markets (OATS – 4-31/32) is the second-largest natural foods grocery store in the United States, operating over 110 stores in 22 states and Canada.

Today, OATS shares have been slaughtered, losing more than half of their value. Last night, the company issued third-quarter earnings of five cents per share. This missed analysts' estimates by 17 cents per share and represented a 73-percent decline from last year's earnings figures. Adding fuel to the fire, OATS officials said that going forward, the firm will engage in restructuring and training plans that will cost $14 million - $15 million in the fourth quarter. Due to these impending changes, the company now looks to earn between 50 and 55 cents per share for fiscal year 2000 and 30-to-35 cents per share for fiscal year 2001. Analysts had expected the company to earn $0.89 and $1.06 for the two years, respectively.

This morning just after the close, OATS was downgraded at three brokerage houses. The stock has reached a new all-time low of 4-7/8. <
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