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by 1/26/2001 11:03 AM
Stocks quoted in this article:
This morning, Swedish telephone giant, Ericsson (ERICY – 11-3/16) reported disappointing earnings for its fourth quarter and warned of slower sales expectations for the first quarter. The company also revealed that it is in agreement with outsourcing company, Flextronics (FLEX - 36-1/2) to produce its handsets. Analysts feel that while this may aid in ERICY's supply chain management, it is by no means a fix for the company.

ERICY stock has been range-bound between 10 and 14 since last November and may again test its lows. The shares have traded off by as much as 12 percent overseas and are now more than 14-percent below yesterday's close.

The Schaeffer's put/call open interest ratio (SOIR) for ERICY has been trending downward and currently stands at a 0.4 percentile ranking. The decreasing SOIR reading indicates that bullish call option open positions have been increasing relative to their bearish put counterparts. The 0.4 percentile ranking means that fully 99.6 percent of the readings over the past year have been higher, or more bearishly configured.

Heading into the earnings release, the February 12-1/2 call has been accumulating open interest. This option is by far and away the site of peak open interest on the shares, with 48,305 current open positions. 14,497 new positions were opened up yesterday alone. This much optimism heading into an earnings release puts additional pressure on the company to perform. A negative surprise can have devastating results, while even a modestly positive surprise can be greeted with less than stellar stock performance. <
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by 1/26/2001 9:27 AM
Stocks quoted in this article:
This morning, the Commerce Department released last month's durable goods orders, which increased by 2.2 percent for December. Factory orders showed evidence of a slowdown, but the total figure was lifted by an unexpected rise in aircraft orders. This figure is greater than last month's increase, which was revised to 1.8 percent and greater than estimates calling for a 1.4 percent drop.
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by 1/26/2001 9:01 AM
Stocks quoted in this article:
The Russell 2000 (RUT - 499.00) retreated yesterday with the broader market unable to find support at the round-number 500 level. The 500 level will continue to be a key moving forward. Potential support for the RUT resides below in the form of the 10-day and 20-day moving averages which reside at approximately 493 and 484, respectively.
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by 1/26/2001 9:00 AM
Stocks quoted in this article:
Dell Computer (DELL - 26-7/16) has been quietly snapping back to life amid a resurgent PC industry group. The stock has already added over 50 percent in 2001. As a result, DELL is poised to make its first weekly close above its declining 20-week moving average since July. In yesterday's option trading the March 25 put was active. Nearly 13,400 contracts changed hands on the out-of-the-money option with approximately 11,900 contracts of the volume translating into new open interest.
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by 1/26/2001 9:00 AM
Stocks quoted in this article:
Tribune Company (TRB - 39-1/8) publishes newspapers, owns radio and television stations as well as the Major League Baseball franchise Chicago Cubs. TRB reported fourth-quarter earnings this morning before the bell. The company posted profits of 36 cents per share besting the Street estimate by two cents per share. From a technical perspective, the shares have been trending modestly higher since their October 18 low. Earlier this month, the stock failed to sustain a move above its 20-month moving average. <
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