Schaeffer's "Behind the Headlines" Highlights the Following Stocks: CDW Corp., DirecTV Group, and Southwest Airlines.CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses CDW CDW - data warehouse Corp. (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 :CDWC CDWC Computer Discount Warehouse (stock symbol) ), DirecTV Group (NYSE NYSE See: New York Stock Exchange :DTV (Digital TeleVision) Transmitting TV using digital signals. The major DTV standards are ATSC (North America), DVB (Europe) and ISDB (Japan). All three use MPEG-2 video compression and Dolby Digital audio compression. DVB and ISDB also include MPEG audio compression. ), and Southwest Airlines This article is about the American airline. For the former Japanese airline, see Japan Transocean Air. For the British airline, see Air Southwest. Southwest Airlines Co. (NYSE:LUV LUV Light Utility Vehicle LUV Love LUV Southwest Airlines (NYSE stock symbol) LUV Linux Users of Victoria LUV Love Ur Voice (band) LUV Luxury Utility Vehicle ). "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: Shakeup shake·up n. A thorough, often drastic reorganization, as of the personnel in a business or government. Noun 1. shakeup At Yahoo! CDW Corp.: This morning, CDW Corp. (NASDAQ:CDWC) announced that average daily sales for November 2006 rose 12 percent to $27.1 million from $24.2 million in the year-earlier month. Meanwhile, total November sales climbed 12 percent, to $569.2 million from $508.5 million. Initially, traders were less than enthusiastic about the sales report, as the shares opened sharply lower. However, the equity quickly rebounded to reclaim support in the 69-70 region. The equity also has support in the form of its 40-day moving average climbing into the area, which could give the security a boost. This short-term trendline has helped to carry the equity higher since July. What's more, pessimism pervades the stock's sentiment backdrop despite its technical strength. The stock's Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways ) rests at 2.08, as put open interest doubles call open interest among near-term options. Furthermore, Wall Street is giving the company the cold shoulder. Of the 11 analysts following the firm, nine of them give CDWC a "hold" rating. Any upgrades could provide the shares with a nice boost. Click the following link to see a Daily chart of CDWC since July 2006 with 40-Day Moving Average: http://www.schaeffersresearch.com/wire?ID=17851 . DirecTV Group: DirecTV Group (NYSE:DTV) is flying high this afternoon following an upgrade to "buy" at Deutsche Bank. The brokerage group believes DTV is best positioned to take advantage of a high-definition market. The stock bullishly gapped this morning and has tagged a new all-time high. In fact, the equity has skipped higher along the support of its 10-week and 20-week moving averages since mid-February. Meanwhile, sentiment is deeply entrenched en·trench also in·trench v. en·trenched, en·trench·ing, en·trench·es v.tr. 1. To provide with a trench, especially for the purpose of fortifying or defending. 2. in the bears' camp. The stock's SOIR rests at 1.50, as put open interest easily outnumbers call open interest among near-term options. This reading is also higher than 82 percent of those taken during the past 52 weeks. What's more, short interest continues to roll over from its recent multi-year high. However, the stock still has 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 4.6 days to cover, indicating that there is still ample sideline money available to fuel gains in the shares. Click the following link to see weekly chart of DTV since January 2006 with 10-week and 20-week moving averages: http://www.schaeffersresearch.com/wire?ID=17851 . Southwest Airlines: The shares of Southwest Airlines (NYSE:LUV) have enjoyed a nice pop higher today following a positive article in the latest issue of Barron's. The shares have gapped higher and today's low Today's Low The intra-day low trading price. Notes: In other words, this is the lowest price that a stock traded at during the course of the day. More often than not this is lower than the closing price. See also: Today's High has been supported by the stock's 20-day moving average. What's more, the equity has climbed above former resistance at its 10-day trendline. Despite today's show of strength, the stock is still facing overhead resistance at the 16 level, which has capped all but one of the security's daily closes since October 20. Furthermore, today's high Today's High The intra-day high trading price. Notes: In other words, this is the highest price that a stock traded at during the course of the day. More often than not this is higher than the closing price. See also: Today's Low has been capped by the stock's 10-month moving average. While today's rally looks nice, LUV still has several layers of overhead resistance to bust through. One other concern plaguing LUV is a lack of short interest. In November, the number of LUV shares sold short dropped by nine percent to 11.7 million shares, resulting in a short-interest ratio of 1.5 days to cover. This lack of bearish bets leaves the security short on potential buying pressure. Click the following link to see a Daily chart of LUV since September 2006 with 10-day and 20-day moving averages: http://www.schaeffersresearch.com/wire?ID=17851 . 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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