Schaeffer's Daily Market Blog Features: JDS Uniphase, Vertex Pharmaceuticals, Mirant, Sabre Holdings, and Time Warner.

CINCINNATI -- Among the stocks featured in the December 11 edition of Schaeffer's Market Blog are JDS Uniphase (NASDAQ:JDSU), Vertex Pharmaceuticals (NASDAQ:VRTX), Mirant (NYSE:MIR), Sabre Holdings (NYSE:TSG), and Time Warner (NYSE:TWX). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1 .

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10:40 AM Mirant Up After Official Sale Announcement

A consortium of Japanese investors will be buying the Philippine branch of Mirant (NYSE:MIR). The Tokyo Electric Company and Marubeni Corporation will each purchase 50 percent of the largest independent energy provider in the Philippines, Mirant Asia Pacific. The cost will total at $3.24 billion, with projected net proceeds for Mirant of $3.152 billion after taking care of related debt costs of $642 million.

MIR has been on a shallow incline for the past month, seeing a bullish crossover of its 10-day and 20-day moving averages at the tail-end of November. So far in this morning's trading, MIR has tagged a high of $32.61, and currently stands at $32.00, a gain of nearly 2.5 percent from its opening at $31.51.

11:37 AM Changes at the Nasdaq

This morning brought expected changes at the Nasdaq 100 Index, which has dumped JDS Uniphase (NASDAQ:JDSU), Lincare Holdings (LNCR), and Urban Outfitters (URBN) from inclusion. Nasdaq's annual re-ranking of the NDX will move Level 3 Communications (LVLT), Infosys Technologies (INFY), and Vertex Pharmaceuticals (NASDAQ:VRTX) into the fray. The changes will be made ahead of the open on December 18 (next Monday). The NDX is constructed to represent the 100 largest non-financial securities trading on the Nasdaq Composite.

In early trading, JDSU has dropped more than 1.5 percent, while URBN and LNCR are posting more modest declines. Now sitting at the popular kids' table, LVLT shares have gained 3.3 percent today. INFY is down a fraction, however, and VRTX has plunged more than five percent. The pharmaceutical company said this morning that, together with Merck (MRK), it will advance their joint-product leukemia treatment MK-0457 into Phase II trials. The drug firms said that the remedy has the potential to be effective in patients suffering from blood cancer who are resistant to other forms of treatment. MRK shares are practically unchanged in late-morning action.

11:38 AM Sabre Holdings Hits Multi-Year High on Buyout Stories

The New York Times and The Wall Street Journal both reported today that Sabre Holdings (NYSE:TSG) appears to be attracting bids from private-equity firms. In fact, the Journal said the company might be sold as early as this week, at a premium to its $3.75 billion market capitalization. The firm is best known for its Sabre system, the number-one travel reservation system in the world.

At last check, TSG was up more than seven percent at $30.35, hitting the highest altitudes we have seen since July 2002. Wall Street sentiment caught my interest. If the seven covering analysts that Zacks tracks are any indication of the overall coverage, there's room for upgrades. Just two of the seven rate TSG a "buy," while the rest have it at a cautious "hold" or worse. This skeptical configuration leaves plenty of room for upgrades that could drive the stock still higher.

12:02 PM Time Warner Hits Multi-Year High on Upgrade

This morning, Time Warner (NYSE:TWX) hit the highest levels we have seen since April 2002, following an upgrade from Prudential to "overweight." I'm watching the 80-month and 160-month moving averages. The 160-month gave the stock a boost in November, but the 80-month is zooming down, and looks set to collide with TWX early in 2007. A rejection at this trendline could spell trouble for the stock, but a break above it would be good news. The last time TWX closed a month above this trendline was December 2001.

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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 .