Schaeffer's "Behind the Headlines" Highlights the Following Stocks: Anheuser-Busch, Coldwater Creek, Hot Topic, and U.S. Airways Group.CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses Anheuser-Busch (NYSE NYSE See: New York Stock Exchange :BUD), Coldwater Creek Coldwater Creek is a clothing retailer which is based in Sandpoint, Idaho, United States. The company was founded in 1984 by Dennis Pence. The company had 239 stores in operation at the end of the 2006 fiscal year.[1] Notes 1. ^ Coldwater Creek. (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 :CWTR CWTR Child Welfare Training Resources CWTR Climb Well to Right ), Hot Topic (NASDAQ:HOTT HOTT - (Hot Off The Tree) An Internet-based electronic magazine edited by David Scott Lewis <d.s.lewis@ieee.org> and distributed by electronic mail. ), and U.S. Airways Group (NYSE:LCC (Leadless Chip Carrier, Leaded Chip Carrier) See leadless chip carrier, CLCC and PLCC. 1. LCC - Language for Conversational Computing. Written at CMU in the 1960's. ). "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: Anheuser-Busch Stares Down the 50 Strike Anheuser-Busch: Master of the brewing domain, Anheuser-Busch (NYSE:BUD), said today that it will drop its sponsorship of the Nascar Busch series The NASCAR Busch Series is a stock car racing series owned and operated by NASCAR. It is NASCAR's "minor league" circuit (often compared to Triple-A baseball), and is a proving ground for drivers who wish to step up to the organization's "big league" circuit, the Nextel Cup. , which it has sponsored since 1982. The series is currently worth more than $100 million in brand exposure. While the firm will still sponsor events, it will remove its role as title sponsor. Technically speaking, BUD enjoyed an uptrend earlier this year that was stopped short in early September at the 50 mark. Since then, the shares have shuffled sideways below this round-number threshold. More than three months after this initial rejection, and BUD is still facing resistance from the 50 level. In the January series, there are nearly 23,000 calls at the 50 strike, making this the site of heaviest open interest in the front month. These out-of-the-money options provide a layer of options-related resistance for the short term. Click the following link to see the January open-interest configuration for BUD and a weekly chart of BUD since February 2006: http://www.schaeffersresearch.com/wire?ID=17911 Coldwater Creek: This morning, UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System boosted its rating on Coldwater Creek (NASDAQ:CWTR) to "buy" from "neutral." The specialty retailer has responded well to this vote of confidence, rallying nearly four percent today despite a failing broad market. The move has boosted the stock within striking distance of its 10-month moving average; in November, CWTR closed below this long-term trendline for only the second time since April 2003. Additionally, the stock is now perched above its 20-day moving average for the first time since November 21. If there is any follow-through from today's strength, it may spur some short-covering activity. At the last reporting period, 17.5 percent of CWTR's available float was sold short, resulting in 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 more than nine days to cover. If these bears begin to fear that CWTR has bottomed, they may seek to close out their bearish bets by repurchasing the stock. Click the following link to see a monthly chart of CWTR since February 2003 with 20-month moving average: http://www.schaeffersresearch.com/wire?ID=17911 Hot Topic: Hot Topic (NASDAQ:HOTT) was slapped with a downgrade this morning, as Wachovia lowered its opinion on the trendy apparel retailer to "market perform" from "outperform." This downgrade added insult to injury for HOTT, which was already struggling with technical resistance in the form of its 20-month moving average overhead. The shares have not closed a month atop this trendline since May 2004. From a short-term perspective, HOTT has gapped more than 2.5 percent lower today, dropping it beneath its 10-day and 20-day moving averages. Click the following link to see a monthly chart of HOTT since August 2003 with 10-month and 20-month moving averages and a daily chart of HOTT since October 2006 with 10-day and 20-day moving averages: http://www.schaeffersresearch.com/wire?ID=17911&obspage=2 U.S. Airways Group: Earlier today, Delta Air Lines (DALRQ), currently plodding through a Chapter 11 restructuring plan, formally rejected U.S. Airways Group's (NYSE:LCC) $8.4-billion merger offer. In lieu of this partnership, DALRQ filed a reorganization plan A scheme authorized by federal law and promulgated by the president whereby he or she alters the structure of federal agencies to promote government efficiency and economy through a transfer, consolidation, coordination, authorization, or abolition of functions. that values the business at $9.4 billion to $12 billion. LCC's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said this afternoon that his company will continue to work with Delta's creditors and stated that "This is an important step in a process that we believe will result in the merger of US Airways and Delta." A sweetened sweet·en v. sweet·ened, sweet·en·ing, sweet·ens v.tr. 1. To make sweet or sweeter by adding sugar, honey, saccharin, or another sweet substance. 2. To make more pleasant or agreeable. bid is also not out of the question. Like many a spurned spurn v. spurned, spurn·ing, spurns v.tr. 1. To reject disdainfully or contemptuously; scorn. See Synonyms at refuse1. 2. To kick at or tread on disdainfully. v. suitor SUITOR. One who is a party to a suit or action in court. One who is a party to an action. In its ancient sense, suitor meant one Who was bound to attend the county court, also, one who formed part of the secta. (q.v.) , LCC is finding that looking good is its best revenge. Fresh from a retest of support at its ascending 10-week moving average, the stock is trading nearly 1.5 percent higher today. This intermediate-term trendline currently coincides with former chart resistance near the 56 mark, which now appears to be serving as support. Hovering overhead, however, is steep call open interest at the January 65 and 70 strikes. Between these two strikes, there are more than 30,000 call contracts, providing a wall of options-related resistance. Click the following link to see Weekly chart of LCC since June 2006 with 10-week moving average: http://www.schaeffersresearch.com/wire?ID=17911&obspage=2 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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