Schaeffer's "Behind the Headlines" Highlights the Following Stocks: AnnTaylor Stores, CBS Corp., Payless Shoesource, and Wal-Mart Stores.CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on AnnTaylor Stores (NYSE NYSE See: New York Stock Exchange :ANN), CBS (Cell Broadcast Service) See cell broadcast. Corp. (NYSE:CBS), Payless Shoesource Payless ShoeSource is a discount footwear retailer that was founded in 1956 in Topeka, Kansas. Shaol Pozez and his cousin Louis Pozez founded and operated Payless Shoes. In 1961, it became a public company as Volume Shoe Corporation. (NYSE:PSS See EPSS. ), and Wal-Mart Stores (NYSE:WMT (Windows Media Technologies) See Windows Media. ). "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: AnnTaylor Stores : The retailing sector has come under the microscope today, as all of the major players are releasing their same-store sale numbers for October. Upscale women's apparel retailer AnnTaylor Stores (NYSE:ANN) said its monthly 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. declined half a percent last month, falling short of the 2.8-percent increase expected by First Call. Total sales rose 5.1 percent during the period. The shares have dropped more than four percent today on the sales disappointment, but currently seem reluctant to breach the 40 region. The stock has not endured a solid monthly close beneath the 40 area since May. What's more, ANN's 10-month trendline has risen into the area and may provide a springboard from which the shares could bounce higher. Click the following link to see a monthly chart of ANN since February 2005 with 10-month moving average: http://www.schaeffersresearch.com/wire?ID=17667 . CBS Corp.: Media company CBS Corp. (NYSE:CBS) visited the earnings confessional on Thursday, noting that its third-quarter net income dropped to 41 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. , due to declining radio revenue and the demise of the UPN UPN User Principal Name (Microsoft Windows 2000) UPN United Paramount Network UPN Unión del Pueblo Navarro (Navarrese People Union) UPN Umgekehrte Polnische Notation television network. Analysts were expecting per-share results of 40 cents. In midday action, CBS shares are hovering around the breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations level. During the past several weeks, the stock has taken a break in its uptrend uptrend A series of price increases in a security or in the general market. Some investors believe a security tends to take on a certain inertia; as a result, these investors search for stock in an uptrend, thinking that it will probably continue to move in to consolidate around the 28 area, which also marks the site of the security's rising 10-week moving average. Just above this threshold is the 30 strike, home to peak call open interest of about 9,000 contracts in the December series. While this isn't enough call open interest to make this site an impenetrable im·pen·e·tra·ble adj. 1. Impossible to penetrate or enter: an impenetrable fortress. 2. Impossible to understand; incomprehensible: impenetrable jargon. wall of structural resistance, it is important to note that this out-of-the-money option Out-of-the-money option A call option is "out of the money" if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. is where the speculative crowd is placing its bets. Click the following link to see a weekly chart of CBS since March 2006 with 10-week moving average: http://www.schaeffersresearch.com/wire?ID=17667 . Payless Shoesource: Payless Shoesource (NYSE:PSS) put the right foot forward today, saying same-store sales rose 5.2 percent in October, while total sales gained 5.5 percent. The retailer now expects to bank third-quarter earnings of 43 to 46 cents per share, above analysts' consensus view of 40 cents per share. Perhaps choosing to quit while they are ahead, the company said it plans to stop issuing quarterly sales reports. The stock has gradually advanced since late August, when it bottomed out following a poorly received earnings report. Recently, PSS was able to completely fill the bear gap caused by this news; today, the shares have tacked on four percent and are challenging the 28 level, which has previously served as resistance. The stock could enjoy some assistance from short covering. Last month, the number of shorted PSS shares grew by eight percent to account for 14 percent of the company's float. 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 nearly eight days to cover, any exodus by the short players could result in additional buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. on PSS, which could be enough to muscle the shares through the 28 threshold. Click the following link to see a daily chart of PSS since May 2006: http://www.schaeffersresearch.com/wire?ID=17667 . Wal-Mart Stores: Wal-Mart Stores (NYSE:WMT) is a leading source of disappointment for the retailing group today. The world's largest retailer said same-store sales would be flat in November. For October, same-store sales growth edged 0.5 percent higher, the lowest monthly growth rate at WMT in almost six years. Analysts had expected a 1.5-percent growth rate for the discount giant. WMT has pulled back more than one percent today, and is trying to avoid taking out support from its 50-day moving average, below which the stock has not closed since late August. Bearing down on the stock from overhead is heavy call open interest at the 50 strike. Among the November, December, and January series, there are more than 85,000 out-of-the-money calls lying in wait to challenge the shares. WMT will be in the news again shortly, as it reports third-quarter earnings ahead of the open on November 14. Reuters analysts expect per-share earnings of 60 cents, a penny better than last year's results. Click the following link to see the daily chart of WMT since August 2006 with 50-day moving average: http://www.schaeffersresearch.com/wire?ID=17667 . Click the following link to see the November open-interest configuration for WMT: http://www.schaeffersresearch.com/wire?ID=17667 . 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 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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