Schaeffer's "Behind the Headlines" Highlights the Following Stocks: priceline.com, Sycamore Networks, Yum Brands, UAL Corp., and AMR Corp.CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on priceline.com (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 :PCLN PCLN Priceline.com (stock abbreviation, AMEX) ), Sycamore Networks (NASDAQ:SCMR SCMR Supply Chain Management Review SCMR Society for Cardiovascular Magnetic Resonance SCMR Software Configuration Management Record SCMR Symmetrical Compact Microstrip Resonator SCMR Service Control Manager Remote ), Yum Brands (NYSE NYSE See: New York Stock Exchange :YUM), UAL UAL United Airlines (ICAO code) UAL Unified Accelerator Library (Brookhaven National Laboratory) UAL User Account Lockdown UAL User Access Layer UAL Universal Auxiliary Language UAL User Agent Layer Corp. (NASDAQ:UAUA UAUA United Airlines, Inc (stock symbol) UAUA Unisys Airline Users Association ), and AMR (1) (Adaptive Multi-Rate) A variable rate speech codec selected by the 3GPP for the 3G evolution of the GSM cellphone system (WCDMA). Using the Algebraic CELP (ACELP) compression technology, AMR provides toll quality sound at transmission rates from 4.75 to 12. Corp. (NYSE:AMR). "Behind the Headlines" is a report that analyzes newsworthy 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: Airlines: Whether it's that we've entered the holiday travel season, or that oil prices are a good distance away from the $70-per-barrel mark, airlines are back in vogue. Since putting in a near-term low in August at 44.43, the AMEX AMEX See: American Stock Exchange Airline Index (XAL XAL Extended Application Language XAL Xenon Arc Lamp XAL XML-Accelerator Library XAL X10 Abstraction Library XAL Extensible Address Language ) has rallied along the support of its 20-day moving average, gaining more than 33 percent. During the past couple of sessions, a number of airlines have released their November traffic data. UAL Corp.'s (NASDAQ: UAUA) United Airlines said its November traffic rose 2.4 percent, while AMR Corp.'s (NYSE:AMR) American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the said its November traffic fell 1.1 percent. On the other hand, AMR's American Eagle Airlines American Eagle Airlines is a regional airline based in Fort Worth, Texas[1]. It is a airline partner of American Airlines[2] (both wholly owned by the AMR Corporation holding company), operating over 1,800 flights a day, serving 159 cities across the USA, said November traffic rose 4.6 percent. Continental Airlines (CAL) reported that November traffic rose 9.8 percent. Technically speaking, UAUA, AMR, and CAL are all consolidating into support at their ascending 20-day moving averages. A bounce off these short-term trendlines could launch the securities on the next leg of their uptrends. Furthermore, from a sentiment perspective, all three companies saw an increase in their respective short-interest readings during November. This growing pessimism has bullish implications from a contrarian perspective, as it indicates that there is potential sideline money available to fuel additional gains in the shares. Click the following link to see a Daily chart of UAUA, AMR, and CAL since July 2006 with 20-Day Moving Average: http://www.schaeffersresearch.com/wire?ID=17825 priceline.com: Last night, priceline.com (NASDAQ:PCLN) said Hutchison Whampoa Ltd. and Cheung Kong (Holdings) Ltd. sold about 3.8 million shares of PCLN's common stock in an at-the-market offering underwritten by Goldman Sachs Group (GS). The sale of the shares is expected to close Thursday. Technically speaking, the equity has been slowly grinding lower and appears to be consolidating its recent gains along support in the 40 region. The security has a history of pullback and consolidations along support since the stock bounced off its low of 18.20 in October 2005. These consolidation periods have preceded a sharp rally in the shares. Click the following link to see a Weekly chart of PCLN since August 2005: http://www.schaeffersresearch.com/wire?ID=17825 Meanwhile, short sellers are attempting to call a top to the stock's ascent. In November, the number of PCLN shares sold short increased by one percent to an eight-month high of 5.1 million shares. 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 5.3 days to cover, the stock could benefit from a short-covering rally should the equity pop higher. Sycamore Networks: Before the open this morning, Sycamore Networks (NASDAQ:SCMR) announced that its fiscal first-quarter revenue rose 28 percent to $34.9 million. The firm stated that it was delaying the filing of its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended July 31, due to an ongoing independent investigation into the granting of stock options and related accounting. The shares gapped higher on the positive revenue report, breaking out of their previous trading range Trading Range The spread between the high and low prices traded during a period of time. Notes: When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building. that had kept SCMR capped at the 3.80 level. However, today's pop higher has been stopped by former resistance at the 4.10 level. This region halted the stock's rally attempts in mid-October and late June. What's more, this region is also home to the equity's declining 40-week moving average. Click the following link to see a Daily chart of SCMR since June 2006: http://www.schaeffersresearch.com/wire?ID=17825 Yum Brands: Yum Brands (NYSE:YUM) has been hit with a barrage of news recently. The company was relieved when a New Jersey health official said that the threat of more E. coli E. coli: see Escherichia coli. E. coli in full Escherichia coli Species of bacterium that inhabits the stomach and intestines. E. coli can be transmitted by water, milk, food, or flies and other insects. infections linked to Taco Bell restaurants appears to have passed. At least three dozen people were stricken in New Jersey and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and apparently all the victims had eaten at Taco Bell restaurants. Meanwhile, the firm reported that its board has approved a 100-percent increase in its quarterly cash dividend to 30 cents a share from 15 cents. The dividend will be paid on March 30 to shareholders of record on March 9. Looking ahead, the firm expects to return more than $1 billion to shareholders in 2007 with share buybacks, reducing its share count by at least three percent. From a technical perspective, the stock is consolidating along the support of the 61 level and is attempting to bounce off support at its 20-day moving average. What's more, the equity's 10-week trendline is climbing into the region, which could help to boost the shares higher. The equity has been in an uptrend since tagging a near-term low in August of $44.21. Click the following link to see a Daily chart of YUM since July 2006 with 20-Day Moving Average: http://www.schaeffersresearch.com/wire?ID=17825 Meanwhile, Wall Street has yet to completely buy into the stock's rally. According to Zacks, seven of the 13 analysts following YUM rate it a "hold," leaving ample room for potential upgrades. 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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