Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

by 1/8/2001 9:34 AM
Stocks quoted in this article:
VerticalNet (VERT – 4-1/8) opened more than 20 percent lower this morning, following the resignation of its CEO. Joseph Galli is leaving, after less than six months at VERT's helm, to assume the top job at Newell Rubbermaid (NWL –23-7/8). His duties will be assumed by VERT's co-founder, Michael Hagan.
permalink

by 1/8/2001 9:15 AM
Stocks quoted in this article:
OSI Pharmaceuticals (OSIP – 63-11/16) may be active in today's trading. They just announced that Genentech (DNA – 66-5/8) and Roche will develop and commercialize their anti-cancer drug that is presently in Phase II clinical trials. The deal is worth $187 million in up-front fees, equity investment, and ongoing payments. The drug is hoped to aid in the treatment of certain ovarian, head, neck and lung cancers. Options are available for OSIP.<
permalink

by 1/8/2001 8:57 AM
Stocks quoted in this article:
New Era of Networks (NEON - 3-3/4) is playing the same old warning tune that we have heard from others in the Internet infrastructure space. After the bell Friday, the company warned that their fourth-quarter earnings would be a loss of 35 cents per share, rather than the 11 cent-per-share gain that was expected. This will also bring down their profit for the year to a negative 15 cents per share, compared with previous estimates for a 28-cent profit. In response to the news, the shares dropped 27 percent in after-hours trading.

As recently as October 18, the company was positive in their outlook. At that time, they announced record revenues for the year 2000. Later, on November 20, it was revealed in their 10-Q report that almost 20 percent of the third- quarter revenues consisted of non-monetary transactions. Within two days, the stock dropped from 19.88 per share to 6.56 per share.

This is a good lesson. If you hold other companies in your portfolio that are also in the e-business enabling, Internet software, and consulting area, you may want to check out their position on accounting for barter-type revenues.
permalink


by 1/8/2001 8:29 AM
Stocks quoted in this article:
DaimlerChrysler AG (DCX – 43.96), which of late has posted notable quarterly losses ($512 million in the third quarter and a projected more than $1 billion for the fourth quarter), announced that it will build about 26 percent fewer cars during the first quarter of 2001 than it did in 2000. Officials cited a decreased demand in the automobile market, as well as a softening U.S. economy.

In unrelated news, DCX unveiled the Jeep Liberty this weekend at the North American International Auto Show. The Liberty is a smaller-sized, or "baby" sports utility vehicle created to compete with brands such as the Toyota RAV4 and the Honda CR-V. The Jeep, which will be constructed in a multi-million dollar plant in Michigan, will be available for purchase with the 2002 model available in June. The cost will likely run in the $18,000-$23,000 range.

Technically speaking, the stock has been steeped in a downtrend since early January 1999. Over the past two years, the stock has lost nearly 60 percent of its value. For the past year, DCX has found resistance overhead at its descending 20-week moving average. <
permalink


by 1/5/2001 5:37 PM
Stocks quoted in this article:
Contrary to its name, Edison International (EIX – 10-5/16) is a utility company that serves customers in Southern California. A subsidiary of the firm owns power plants in New Zealand, Australia, and Europe. During the short duration of 2001, the stock has dropped 34 percent. Yesterday, the stock receded over 12 percent after the California Public Utility Commission said it would call for rate increases in the neighborhood of seven to 15 percent within the next three months. This hike was seen as falling far short of what is needed to bring EIX and competitor PG&E (PCG – 12-5/8) back into healthy territory.

Reacting to this news, Merrill Lynch and Jeffries both reduced their respective ratings on EIX shares. Today, Deutsche Banc stepped up to the downgrade plate, cutting EIX to a "market perform" from a "buy." Also this morning, EIX was downgraded by Moody's.

Mid-afternoon today, EIX officials warned of an impending announcement wherein the firm would announce cost-cutting measures. After the close, the company said it would cut its work force by 1,400 jobs, saving $30 million-$50 million in the process. The layoff, which will affect just over 10 percent of EIX's staff, will primarily affect non-permanent workers.

Today's news generated a slew of activity in the EIX options pit. Over 5,600 contracts traded on the January 15 call, which was previously home to only 252 open call options. The bulk of this transpired in small and mid-sized blocks that crossed the tape throughout the trading session. One large block consisting of 2,800 contracts was executed near the ask price around 11:30 a.m.
permalink


Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.