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by 11/16/2000 1:53 PM
Stocks quoted in this article:
Before the market's opening bell today, American Greetings (AM – 11-1/2) said it expects to report fiscal third-quarter earnings of 50 cents per share, well below the Street consensus of 91 cents per share. The company also announced that it expects its full-year figures to come in around $1.30-to-$1.35 per shares versus current expectations of $1.98. AM officials also noted that the company would undergo a reorganization and will cut its quarterly dividend to 10 cents a share from 21 cents.

The news created such an imbalance of selling pressure in the market that the stock did not start trading until 10:28 this morning. The shares gapped down with the first trade by 7-1/2 points, or almost 38 percent.

On the options front, the 90 open contacts currently residing on the November 17-1/2 call saw their value dissipate from a bid of 2-1/2 yesterday to zero, while the previously worthless 70 open contracts at the November 17-1/2 put strike soared to 5-3/8 per contract.
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by 11/16/2000 1:48 PM
Stocks quoted in this article:
Causing a shake-up in the forest and paper industry today is Willamette (WLL – 47-7/16), which last night rejected Weyerhaeuser's (WY – 41) buyout offer. The offer was for $5.3 billion, or $48 per WLL share. This represented a 38-percent premium over the equity's closing price on Friday (the session before the offer was originally announced). WLL's board unanimously rejected the proposition, saying it was not in the company's best interest.

WY officials expressed disappointment and said that they will respond to WLL later today. WLL shares are trading over a percent higher today, while WY has dropped nearly four percent on news of its rejection.
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by 11/16/2000 1:13 PM
Stocks quoted in this article:
Although, nine days after the election, the two major Presidential candidates continue their legal wrangling, it appears the AMEX Morgan Stanley Healthcare Payors Index (HMO – 448.79) is declaring George W. Bush the victor. Since Election Day, the HMO has appreciated over 12 percent, only ending the day in the red once. Today, the HMO has tacked on another 1.5 percent, amid general weakness in the broader market.
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by 11/16/2000 1:08 PM
Stocks quoted in this article:
This morning, a major brokerage house downgraded the shares of several communication chipmakers. Vitesse (VTSS- 69-5/8) was cut to accumulate from "strong buy." The stock gapped down 6-1/2 dollars at the open, but has since mounted an admirable comeback. In mid-morning trading, the shares moved into positive territory eventually reaching as high as 72-7/8. Despite the tech carnage in 2000, VTSS has increased over 32 percent year-to-date. In addition, from a long-term technical perspective, the stock has been able to consistently close above its 20-month moving average every month since mid-1993.<
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by 11/16/2000 1:01 PM
Stocks quoted in this article:
Smith International (SII – 71-5/8) provides materials and services to oil drilling companies. Its shares increased in value over 10 percent between Tuesday's and Wednesday's trading. Yesterday, the stock was able to close above its descending 20-day moving average for the first time in over a month. This trendline has guided SII lower recently after the security encountered resistance in the 87-88 range. This level has acted as resistance for SII on three occasions dating back to October 1997. Although activity on most SII options is light, today the December 75 call and the December 70 put have each had large blocks of 1,000 contracts cross the tape.<
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