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by 10/13/2000 10:03 AM
Stocks quoted in this article:
Federated Department Stores (FD – 25-15/16) is the parent of such names as Bloomingdale's, Macy's, Lazarus, and Rich's. Today, FD officials announced some news regarding its Internet and catalog-based branch, Fingerhut. The company is planning a "significant downsizing" of the operations, aiming to eliminate 550, or 24 percent, of the work staff by January. As a result, FD will absorb a restructuring cost of between $75 million and $100 million in the third and fourth quarters. This restructuring will ultimately save the company around $40 million per year in overhead. The retailer maintains its long-term earnings-per-share growth goal at 13-to-15 percent.

Shortly after the open, FD was halted at yesterday's closing price of 25-15/16, with a bid price of 27 and an ask price of 29. This represents a gain of four and 11 percent, respectively. <
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by 10/13/2000 10:00 AM
Stocks quoted in this article:
Imax (IMAX – 4-27/32) is in the movie theater business. The company produces special-format films such as Everest and manufactures sound and picture technology for use in more than 200 theaters in 26 countries around the world. Yesterday, the shares were clobbered, losing over 70 percent after issuing a third-quarter and full-year earnings warning. IMAX said it will earn between 60 and 70 cents per share for the year, due to increased research and development costs and recent bankruptcies at a number of theater chains that purchase IMAX's equipment. The Street had expected the company to earn $1.24 per share in 2000.

This morning, IMAX is trying to claw its way back, rising 10 percent out of the gate, although it was downgraded before the open by Goldman Sachs Group. The broker cut its rating on the equity from a "recommend" to a "market outperform."
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by 10/13/2000 9:19 AM
Stocks quoted in this article:
This morning, the Commerce Department released the September retail sales results. Overall, sales at U.S. retailers went up by 0.9 percent versus consensus estimates of a 0.6-percent rise. The hefty rise can be attributed to strong auto sales, which increased at their fastest pace since February with a 1.4-percent surge.

In addition, August retail sales were revised lower from a 0.2-percent gain to a more modest 0.1-percent advance.


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by 10/13/2000 9:17 AM
Stocks quoted in this article:
This morning, the Labor Department released the September Producer Price Index (PPI) results. Overall, the September PPI rose 0.9 percent, which exceeded analysts' estimates of a 0.5-percent advance. The rise can mainly be attributed to a continuing increase in energy prices.

Excluding the volatile food and energy sector, the core index went up 0.3 percent. This figure surprised many analysts, as they anticipated a more modest 0.1-percent increase in core prices.

In response to the news, the December S&P 500 Index Futures contract (SP/ZO - 1343.50) is down one point, which indicates a relatively flat open.

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by 10/12/2000 3:49 PM
Stocks quoted in this article:
An equity not taking part in today's broad downswing is oil-service name Global Marine (GLM – 31-11/16), which has accrued nearly five percent. With this upturn, the security is ready to close at its highest level in nearly four weeks. What's more, its 10-day and 20-day moving averages are poised to cross bullishly, an indication of near-term strength. Additionally, GLM has reclaimed its 10-week moving average.

On the options front this afternoon, 11,578 contracts have crossed the tape on the October 30 put. This out-of-the-money option has open interest of only 1,740 contracts, which means that most of today's volume should translate to new positions. This is currently among the most-active puts on the International Securities Exchange.


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