Stocks quoted in this article:
KeySpan (KSE – 40) has injected a breath of fresh air (albeit natural gas) into the negative earnings environment. This distributor of natural gas and marketer of energy services reported early this morning that it is raising its earnings projection for the year 2000 to $2.40 per share, versus the current consensus of $2.28. The company also sees year 2001 net up by 10 percent.
The shares have been on a choppy ascent since bottoming around 20 this past March and are currently trading near all-time high levels. There still exists potential for the shares to continue higher on the positive news, above and beyond what the market has already discounted.
Short sellers have begun to liquidate their positions, as short interest for the most recent reporting period decreased by over 26 percent. The stock still shows a short interest ratio of 6.78 (indicating that almost seven days would be required to cover all short positions at the stock's current average daily trading volume.)
Options investors have been absent on KSE trading, as total open interest stands at just 1,847 open contracts (215 put open contracts versus 1,632 call open positions.)