Schaeffer's "Behind the Headlines" Highlights the Following Stocks: Healthways, IBM, Illumina, and J.P. Morgan Chase.CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on Healthways (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 :HWAY HWAY Highway ), IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) (NYSE NYSE See: New York Stock Exchange :IBM), Illumina (NASDAQ:ILMN), and J.P. Morgan Chase (NYSE:JPM JPM J. P. Morgan Chase & Co. (stock symbol) JPM Juan Pablo Montoya (formula 1 driver) JPM Jabatan Perdana Menteri (Malaysia) JPM Journal of Property Management ). "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: Healthways: Last night, Healthways (NASDAQ:HWAY) announced fourth-quarter earnings of $14 million, or 38 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. , beating the Street estimate by a penny. Revenue for the quarter climbed 30 percent to $114.9 million, slipping past the consensus estimate of $114 million. The shares have rallied more than 14 percent this afternoon on the positive news, leaping above resistance at its declining 10-day and 20-day moving averages. In fact, the stock hasn't closed a session above both of these trendlines since mid-August. Helping to fuel today's rally is most likely a healthy dose of short covering. In September, the number of HWAY shares sold short jumped by almost 20 percent to 4.1 million, or 12 percent of the equity's float. Up until today, these bears were on the right track, as the stock lost more than 26 percent from its August peak. With the shares popping higher today, these bears are probably buying back some of their short position in an effort to protect their profits. Click the following link to see a Daily Chart of HWAY Since June 2006 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=17574 . IBM: After the close on Tuesday, IBM (NYSE:IBM) announced third-quarter earnings of $2.22 billion, or $1.45 per share, as revenue rose five percent to $22.6 billion. Analysts had predicted a profit of $1.35 per share on revenue of $22.08 billion. The security gapped higher on the news and is currently hovering hov·er intr.v. hov·ered, hov·er·ing, hov·ers 1. To remain floating, suspended, or fluttering in the air: gulls hovering over the waves. 2. around the 90 region. This strike has been the site of some heavy options trading this afternoon in the front-month series. The October 90 call has had more than 12,000 contracts cross the tape today. Open interest already rests at a hefty heft·y adj. heft·i·er, heft·i·est 1. Of considerable weight; heavy. 2. Rugged and powerful. See Synonyms at heavy. 3. 30,100 contracts at this strike. Meanwhile, the October 90 put has seen approximately 12,800 contracts cross the tape, yet open interest sits at a meager mea·ger also mea·gre adj. 1. Deficient in quantity, fullness, or extent; scanty. 2. Deficient in richness, fertility, or vigor; feeble: the meager soil of an eroded plain. 3. 2,582 contracts. Traders should keep an eye on this region. With October options set to expire after the close on Friday, IBM could find itself stuck to this strike during the near-term. Click the following link to see a Daily Chart of IBM Since June 2006: http://www.schaeffersresearch.com/wire?ID=17574 . Illumina: Sticking with our earnings theme, Illumina (NASDAQ:ILMN) announced earnings last night of $16.2 million, or 32 cents per share, on sales of $53.5 million. Analysts had predicted earnings of 16 cents per share on revenue of $47 million. However, the stock's rally technically started before the earnings report when the company announced that it received a multimillion-dollar agreement to supply and install a genetic-analysis system at what it said was one of the top-five pharmaceutical companies. The stock sharply rallied on Tuesday, but pulled back throughout the session. However, the shares still finished with a gain of more than two percent, taking out former resistance at the 36 level. The shares gapped higher again this morning and currently appear poised to conquer former resistance at the 40 level. In September, short interest jumped 12.5 percent to seven million shares. This accumulation of 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 bets accounts for 18 percent of the stock's float and is nearly five times its average daily trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. . What shorts that didn't get shaken out of their bearish positions yesterday are likely running for the exits today, helping to fuel the equity's rally. Click the following link to see a Daily Chart of ILMN Since June 2006: http://www.schaeffersresearch.com/wire?ID=17574 . J.P. Morgan Chase: J.P. Morgan Chase (NYSE:JPM) announced third-quarter earnings this morning of $3.3 billion, or 92 cents per share, on revenue of $16.23 billion. The company crushed the Street estimate for a gain of 86 cents per share. Unlike its counterparts, the stock has struggled today and is currently fighting its way back to the 47.50 level. This strike is the site of peak October call open interest with more than 21,170 contracts. Furthermore, the 47.50 strike is also home to heavy October put open interest with 10,050 contracts. This accumulation of options could keep the shares stuck in this region until after expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created . Click the following link to see a Daily Chart of JPM Since July 2006: http://www.schaeffersresearch.com/wire?ID=17574 . 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 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 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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