Stocks quoted in this article:
Sealed Air (SEE - 36.93) is floating 15 percent higher in today's trading as news came out that Berkshire Hathaway (BRK - 70,800) took a new 4.3 million-share stake in the company for the quarter ending December 31.
The news may be just what the stock needed as it was attempting to get off of the ground from a double bottom around the 26-27 area established in October 1998 and December 2000. In addition, the 10-month moving average made a bearish cross below the 20-month moving average in May 2000.
Short interest did decline over the most recent reporting period to 8.99 millions shares. The current short interest ratio stands at 7.71, but is way off of the average for the stock that has historically held a high number of shorts.
Options investors are currently maintaining 5,133 open call positions compared to 12,045 open put positions in options with up to three months' of life left in them. One would expect this type of pessimism on shares in this poor of a technical shape.
Even today's bounce in the stock has not drawn out call buyers as early volumes show just 521 calls trading versus 122 puts.
Although not widely covered by the Street, four analysts rate the stock a "buy" or better compared to six "holds" and no "sells."