Schaeffer's "Behind the Headlines" Highlights the Following Stocks: Computer Associates, Duke Energy, Electronic Arts, and Whole Foods Market.CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on Computer Associates (NYSE NYSE See: New York Stock Exchange :CA), Duke Energy (NYSE:DUK DUK Duke Energy Corporation (stock symbol) DUK Dead Upon Keyboard ), Electronic Arts (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ERTS ERTS Electronic Arts, Inc. (stock symbol) ERTS Earth Resources Technology Satellite (US NASA) ERTS Embedded Real Time Systems ERTS Enhanced Remote Transit Shed ), and Whole Foods Market (NASDAQ:WFMI WFMI Whole Foods Market, Inc. ). "Behind the Headlines" is a report that analyzes newsworthy news·wor·thy adj. news·wor·thi·er, news·wor·thi·est Of sufficient interest or importance to the public to warrant reporting in the media. news stocks that are generating a lot of attention on Wall Street. "Behind the Headlines" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap, and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an iPod Nano A flash-based digital music player from Apple, introduced in 2005. Like larger iPod models, the nano has a color screen. Although the nano name suggests ultra-small "nanotechnology," the iPod shuffle is actually smaller. See iPod. . http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&PAGE=1. Behind the Headlines: Computer Associates : It has been a busy couple of days for Computer Associates (NYSE:CA), which had to dust off the news of its former leader being sentenced to 12 years behind bars and a hefty fine and enter the earnings confessional last night. Second-quarter net income before items was flat at 25 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , a nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. above Street expectations. Revenue rose to $996 million, also outpacing the consensus view. Looking forward, however, CA officials said fiscal year 2007 earnings may be below prior estimates due to restructuring plan costs. Reports also indicate that the company may delay its stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. plans. The stock has gapped lower today on heavy volume, declining to fill in some of the bull gap created in mid-August. Helping contain the bleeding a little bit is sizeable options-related put support at the 22.50 strike. In the November series, this is easily the site of heaviest open interest, with nearly 10,000 open puts. The equity's intraday Intraday Another way of saying "within the day." Notes: This term is often used for the new highs and lows of a security. For example, "a new intraday high" means a security reached a new all-time high throughout the trading day, but then fell by closing. low was 22.34, but the stock is now trading closer to the 23 mark. Click the following link to see a daily chart of CA since July 2006: http://www.schaeffersresearch.com/wire?ID=17678 . Click the following link to see the November open-interest configuration for CA: http://www.schaeffersresearch.com/wire?ID=17678 . Duke Energy: This morning, Duke Energy (NYSE:DUK) reported third-quarter net income of $763 million, or 60 cents per share, topping analysts' consensus outlook by four cents. Revenue rose 38 percent during the reporting period to $4.17 billion. The equity has pulled slightly lower in today's trading abut To reach; to touch. To touch at the end; be contiguous; join at a border or boundary; terminate on; end at; border on; reach or touch with an end. The term abutting implies a closer proximity than the term adjacent. has so far caught support from its 50-day moving average, which has helped guide the stock along its rally during the past few months. DUK shares also continue to hold above the 30 strike, which is home to massive put support in the November and December series. In the front month, there are more than 61,000 contracts in open interest (this strike has seen volume of more than 15,000 already today). The December 30 put is home to about 10,500 contracts, fortifying this zone as a region of potential support. Click the following link to see a daily chart of DUK since June 2006 with 50-day moving average: http://www.schaeffersresearch.com/wire?ID=17678 . Click the following link to see the November open-interest configuration for DUK: http://www.schaeffersresearch.com/wire?ID=17678 . Electronic Arts: Moving down our list of stocks reacting to their respective earnings news, Electronic Arts (NASDAQ:ERTS) is surging higher after pleasantly surprising the Street with its second-quarter results. The video-game publisher also said that its industry "seems very healthy," cheering investors. The stock has spiked more than 12 percent today on heightened volume to overcome short-term resistance in the 58 region. Up next for ERTS to challenge is its annual high of 61.07, reached about a year ago exactly. Between here and there is peak call open interest in the November series, as more than 8,000 call contracts reside at the November 60 strike. Click the following link to see a weekly chart of ERTS since November 2005: http://www.schaeffersresearch.com/wire?ID=17678 . Whole Foods Market: Specialty grocer Whole Foods Market (NASDAQ:WFMI) reported fourth-quarter income before one-time items of 29 cents per share. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. rose 8.6 percent during the reporting period. Looking ahead to fiscal year 2007, the company expects same-store sales growth to rise between six and eight percent, compared with an 11-percent rise in fiscal 2006. The stock has pulled notably lower today, reaching a new annual low, but testing support from its 50-month moving average. Short sellers may take this opportunity to escape from their bearish Bearish Words used to describe investor attitude. A bearish investor believes that a particular asset or the market as a whole will decline in value. bearish positions with some profits. As of the last reported data, more than seven percent of the company's available float was sold short, with a short-interest ratio short-interest ratio A ratio that is used for market analysis and is calculated by dividing short interest by average daily volume. Technicians use the short-interest ratio as a tool to determine market direction. of more than seven days to cover the shorted bets. Some heavy-handed short covering could lead to a fairly speedy recovery for the shares. Click the following link to see the monthly chart of WFMI since June 1999 with 50-month moving average: http://www.schaeffersresearch.com/wire?ID=17678 . The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&PAGE=1 . About Schaeffer's Investment Research (www.SchaeffersResearch.com) Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method . |
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