Schaeffer's Daily Market Blog Features: Red Hat, Research in Motion Limited, Mamma.com, Google, and Pinnacle Airlines.

CINCINNATI -- Among the stocks featured in the December 22 edition of Schaeffer's Market Blog are Red Hat (NYSE:RHT), Research in Motion Limited (NASDAQ:RIMM), Mamma.com (NASDAQ:MAMA), Google (NASDAQ:GOOG), and Pinnacle Airlines (NASDAQ:PNCL). 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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10:06 AM Red Hat Announces Losses and Sees Gains

It was a mixed report from Red Hat (NYSE:RHT) as third quarter statistics were made public. Profits fell for the Linux system distributor and support supplier by 37 percent, due in large part to option expenses and tax provisions. Net income went from $15.5 million, or 7 cents per share, down from $24.5 million, or 12 cents per share, in the year-ago period. Yet it was not necessarily a bad day for RHT. Subscriptions were up during the period by 12,000. Excluding stock options expenses and income tax provisions, profits increased, totaling $29.6 million, or 14 cents per share, beating analyst expectations of 12 cents per share.

In overnight and early-morning trading, RHT broke through former resistance at it 10-week moving average. At last check, the stock was up 18 percent, riding the 21 level. However, despite the mostly good news from RHT, Goldman Sachs keeps its "sell" rating, saying that though RHT is likely to have something of a rally, "longer term risks remain" if competition from Oracle (ORCL) increases.

10:21 AM Midday Update -- Research in Motion Limited Revisited

Research in Motion Limited (NASDAQ:RIMM) is among the major newsmakers this morning thanks to its earnings news. My colleague Beth Gaston Moon covered the earnings news in this article (http://www.schaeffersresearch.com/commentary/ observations.aspx?click=home&ID=17933)(Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists). Beth assumed correctly when she said, "it is fairly safe to assume we'll see the equity gap higher out of the gate." While the equity is still higher, it has backed off since encountering resistance in the 140 region. However, the fall was halted by the stock's 20-day moving average. In addition, today's jump has pulled its 10-day moving average higher, and placed it on the verge of a bullish cross of its 20-day counterpart. Such a technical formation is a bullish indicator, as it often precedes a continued run. The BlackBerry baron may also find some support from its 10-week moving average if needed. The last time the equity finished a week below this trendline was late July.

12:04 PM MAMA Coming Back Down to Earth

After announcing the release of an internet video search engine, stocks of Montreal-based Mamma.com (NASDAQ:MAMA) went for a skyward ride, and fast. The announcement came almost two weeks ago, on December 12, and MAMA nearly doubled in size that first day, moving from a $2.37 close on the 11th to $4.28 on the 12th. Since then, the stock has continued on an ascent the likes of which it hasn't experienced in well over a year, with volume running in the area of 20 million shares per day for the two week period. The interest in the company and their announcement is without doubt due to the internet-video craze ushered in by millions of viral-video hobbyists and taken advantage of, with much fanfare, by YouTube.com and Google (NASDAQ:GOOG).

The stock's rise continued through yesterday, when MAMA shares saw a high of $8.60 and a close at $7.95. According to Richard Fetyko of Merriman, Curhan, Ford, and Company, we have been experiencing an "overreaction." Alas, as we are seeing thus far in trading today, MAMA's wild ride may be coming to an end: the stock has dropped 16 percent in the first two-and-a-half hours. As Nicole Ridgway of Smartmoney.com says, "this latest play on Mamma.com can serve as a valuable cautionary tale to those investors who may not be able to handle the volatile world of day trading."

12:44 PM Low Volume and Modest Losses

Bah humbug! The few investors who have stuck around to watch the market before the busy holiday weekend have decided to send stocks lower. The Dow Jones Industrial Average (DJIA) is down nearly 63 points, the S&P 500 Index (SPX) is off 6.6 points, and the Nasdaq Composite (COMP) has lost 11 points in midday action.

A slew of economic data came across the newswires today; November's durable-goods orders showed a 1.9-percent increase and topped analyst expectations, while the personal-consumption expenditure price index was flat last month. The University of Michigan's sentiment index at the close of December reached 91.7, down slightly from late-November's reading of 92.1 but higher than the mid-December figure of 90.2. The expectations index dropped to 81.2 from 83.2 in November.

In stock news, Pinnacle Airlines (NASDAQ:PNCL) is the leading gainer on the Nasdaq this afternoon, rising 52 percent to enter new-high territory. The company said it amended its airline service agreement with Northwest Airlines (NWACQ), forging a long-term partnership through at least 2017. PNCL also received $377 million toward helping settle its bankruptcy claims. Prudential upgraded the stock to "overweight" from "underweight" on the news, calling the arrangement with NWCAQ "quite positive."

For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&PAGE=1.

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