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by 11/21/2000 3:25 PM
Stocks quoted in this article:
Internet titan Yahoo! (YHOO – 42-1/2) is feeling more like the Titanic today, as it has sunk to levels not seen since mid-November 1998. Catalyzing the equity's 13-percent drop today was a morning report from brokerage house Morgan Stanley Dean Witter. The firm noted that YHOO has a 30-percent chance of missing earnings estimates, due to a slow-down in Internet advertising revenue. The analyst went on to state that YHOO has the potential to fall short of expectations not only next quarter, but in the first two quarters of 2001 as well.

Put activity has accelerated as a result of the equity's latest plunge. Most notable is the volume on deep-in-the-money options in the January series. Around 2,000 contracts have traded on both the January 125 and 130 puts, while 10,500 contracts have swapped hands on both the 185 and 210 puts in the back-month series. The January 145 and 150 puts have both scooped up 1,000 contracts today. Given the outlandish expense of the contracts (83 per contract and above) and the large block sizes, this is probably the work of an institutional investor. Additionally, these blocks are likely related, given the similarity in block sizes. <
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by 11/21/2000 3:17 PM
Stocks quoted in this article:
Ruby Tuesday (RI – 14-1/8) is saying "goodbye" to a couple of its restaurant chains today, selling them for a total of $59 million to Speciality Restaurant Group LLC. RI, which will now focus solely on its 346 core Ruby Tuesday chain restaurants, relinquished control of 41 American Cafes and 27 Tia's Tex-Mex establishments. The two chains that changed hands will continue to operate under their current names.

RI, which has appreciated over 28 percent since early October, is trading fractionally higher today. This has not taken the stock above its 10-day moving average, however, which the shares breached last Friday. <
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by 11/21/2000 12:57 PM
Stocks quoted in this article:
Gemstar – TV Guide International (GMST – 45-11/16), a sizeable purveyor of electronic books, is trading more than 10 percent in the red today after The Wall Street Journal announced a potential deal between GMST and Barnes & Noble (BKS – 27-3/16). The daily newspaper said the two firms are in discussions to cohere their business plans. The story also said that the deal remains a "long shot" despite frequent meetings the companies have held with one another. BKS is trading near the breakeven mark.
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by 11/21/2000 12:47 PM
Stocks quoted in this article:
The Nasdaq-100 Trust (QQQ – 70-1/4) has been hovering around the breakeven point today. Currently, the QQQ is poised just north of the 70 mark. This level is a key one to watch as the December 70 put is the site of over 24,600 contracts in put open interest.

Resting overhead, the QQQ's 10-day and 20-day moving averages still present potential resistance. These two trendlines reside at approximately 73 and 77, respectively.
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by 11/21/2000 12:44 PM
Stocks quoted in this article:
Today, about 84 percent of the shares in Sonus Networks (SONS – 23-1/8) were released from lockup restrictions. The stock is trading about seven percent lower today, extending a decline that began in earnest as the stock found resistance at its overhead 20-day moving average last Tuesday.

A total of 10,000 contracts changed hands on the December 20 put yesterday, with virtually all of the volume translating into new open interest. The volume crossed the tape in a series of block trades with all of the trades going off at 3/4 per contract.
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