Schaeffer's "Behind the Headlines" Highlights the Following Stocks: Boston Scientific, Citigroup, eBay, and United Parcel Service.CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, (NYSE NYSE See: New York Stock Exchange :BSX BSX Bermuda Stock Exchange BSX Bandai Satellaview-X BSX Bicycle Super-X (Cross) ), Citigroup (NYSE:C), eBay (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 :EBAY), and United Parcel Service United Parcel Service, Inc. (NYSE: UPS), commonly referred to as UPS, is the world's largest package delivery company, delivering more than 15 million packages[1] a day to 6.1 million customers in over 200 countries and territories around the world. (NYSE:UPS). "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: Boston Scientific: Boston Scientific (NYSE:BSX) has jumped more than four percent this morning. Let's just bask in that thought for a moment. I mean, we're talking about BSX; the stock has been stuck in a downtrend downtrend A series of price declines in a security or the general market. Many analysts feel that investors should avoid securities in a downtrend until the pattern is broken. Compare uptrend. that seems to have lasted since the dawn of time. Well, at least for two years. It makes you just want to pat the security on the head and say "there you go!". The company reported third-quarter earnings of $76 million, or five 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. , compared to its year-ago loss of 33 cents per share. Excluding items, earnings would have come in at 20 cents per share, besting the consensus estimate of nine cents per share. The stock popped higher on the positive news, but was promptly stopped by resistance at its declining 10-week moving average. In fact, BSX has been guided lower by its 10-week and 20-week trendlines since July 2004. Furthermore, the equity could have some trouble pulling away from the 15 level, as this is the site of significant option open interest. The October 15 call has more than 27,700 contracts in residence while the October 15 put has open interest of roughly 13,400 contracts. Until October options expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. , the stock could find itself stuck. Click the following link to see a Weekly Chart of BSX Since June 2004 with 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=17583 . Citigroup: Before the open, Citigroup (NYSE:C) reported that third-quarter income dropped 23 percent to $5.5 billion, or $1.10 per share. From continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , earnings came in at $1.06 per share on revenue of $21.42 billion. Analysts had predicted a profit of $1.03 on revenue of $21.63 billion. Apparently investors are rather unimpressed with the results as the equity has dropped more than one percent, breaking through the 50 level. This strike is home to roughly 40,500 calls in the October series and another 31,500 puts. The round-number 50 region is also the site of former support and resistance for the shares. A failure in the stock to reclaim the 50 level could result in additional losses for C. Click the following link to see a Weekly Chart of C Since May 2003: http://www.schaeffersresearch.com/wire?ID=17583 . eBay: Last night, eBay (NASDAQ:EBAY) reported third-quarter earnings of $280.9 million, or 20 cents per share, on revenue of $1.45 billion. Furthermore, the company expects a 17-percent to 21-percent rise in 2007 revenue to about $7.17 billion on the high end, which is short of the average Wall Street estimate. Investors have shrugged off the company's outlook as the shares have jumped through the 30 level, which it has been battling recently. In fact, today'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. high of $30.55 is just two cents shy of the stock's intraday high on October 5 - the last time EBAY closed above the 30 level since late June. The 30 region not only represents former support and resistance for the shares, but it is naturally the site of peak call open interest in the October series with more than 64,000 contracts. It looks like EBAY could be hard pressed to hold onto the 30 level. Click the following link to see a Daily Chart of EBAY Since May 2006: http://www.schaeffersresearch.com/wire?ID=17583 . United Parcel Service: Like EBAY, United Parcel Service (NYSE:UPS) is determined to tackle some resistance today. The firm reported earnings of $1.04 billion, or 96 cents per share, on revenue of $11.66 billion. Analysts had predicted earnings of 90 cents per share on sales of $11.65 billion. The stock popped above resistance at the 75 level, reaching an intraday high of $75.71, which is just a penny shy of its October 5 high. Furthermore, October 5 marked the last time UPS closed above the 75 level since the shares gapped lower on July 25. The stock is also struggling with heavy option open interest at the 75 strike. The October 75 call has open interest of approximately 22,000 contracts while the October 75 put has open interest of 10,000 contracts. This accumulation of contracts is likely to keep UPS pegged peg n. 1. a. A small cylindrical or tapered pin, as of wood, used to fasten things or plug a hole. b. A similar pin forming a projection that may be used as a support or boundary marker. 2. to the region until they expire. Click the following link to see a Daily Chart of UPS Since June 2006: http://www.schaeffersresearch.com/wire?ID=17583 . 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 Contrarian An investment style that goes against prevailing market trends by buys assets that are performing poorly and selling when they perform well. Notes: A contrarian investor believes that the people who say the market is going up do so only when they are fully 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 Traders Individuals who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do this, their objective is to earn the bid/ask spread. 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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