Schaeffer's Daily Market Blog Features: Systemax, Versant, Advanced Micro Devices, Intel, and Kohl's.

CINCINNATI -- Among the stocks featured in the August 30 edition of Schaeffer's Market Blog are Systemax (NYSE:SYX), Versant (NASDAQ:VSNT), Advanced Micro Devices (NYSE:AMD), Intel (NASDAQ:INTC), and Kohl's (NYSE:KSS). 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. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1 .

10:56 AM Systemax Profits

Good morning. Systemax (NYSE:SYX) is the leading stock on the New York Stock Exchange, up more than 23 percent to $10.30 at last check. After the close on Tuesday, the company reported first-quarter net sales increased 6.9 percent to $574.9 million. Income leapt to $20.9 million from $5.2 million in the first quarter of 2005. SYX is an interesting stock. Zacks has no information on brokerage ratings, suggesting that SYX is not widely followed. The company is small, with a market capitalization, according to Thompson/ILX, of just $360 million. Also, it does not trade options. The fact that SYX is attracting attention to itself may already have caused some short sellers to cover their bearish bets and minimize losses. With a short-interest ratio of 11.4 days to cover, there was already considerable potential fuel for a short-covering rally. Has that fuel already been used up this morning? SYX gapped higher on the open to hit the highest level we have seen since March 2000, when the stock was at $10.68. Watch for a close above that level as a sign that buyers are still enthusiastic. There appears to be support this morning at the 10.20 level.

1:09 PM Judge Overturns 50-Million Dollar Ruling Against Merck

A judge just overturned a $50 million Vioxx award against Merck (MRK), and the stock is showing some signs of life again. The shares are now trading back up near their highs reached in early August. A high level of pessimism toward the company stemming from litigation risk has made the stock an opportunity to play from the long side. If analysts decide to jump back on the bandwagon the shares could easily see $50 during the next several months. Current ratings include six "buys" versus nine "holds" and two "sells".

1:11 PM Versant Leads Nasdaq

Versant (NASDAQ:VSNT) leads the way on the Nasdaq today. The company reported third-quarter results, including a profit of $1 million, or 28 cents per share, compared to a loss of $14.35 million, or $4.04 per share a year ago. Revenue grew 8.8 percent to $3.76 million. At last check, the stock was up more than 37 percent at $8.49.

1:52 PM Diagonal Spread on AMEX Semiconductor HOLDRS Trust

In our Options Update podcast, Jon Lewis mentioned a possible diagonal spread on the AMEX Semiconductor HOLDRS Trust (SMH). A diagonal spread is a strategy where you simultaneously enter a long and short position in two options of the same type (two call options or two put options) that have different strike prices and expiration dates. Shortly before 10:34 a.m. Eastern time, the September 32.50 call (SMH IZ) and the October 35.00 call (SMH JG) both saw a blocks of 15,000 contracts change hands. Turning to two of the big-name semis, at last check, Advanced Micro Devices (NYSE:AMD) was up 2.3 percent at $24.96 and Intel (NASDAQ:INTC) was ahead 0.86 percent at $19.85. However, a quick check on our proprietary Schaeffer's Equity Scorecard shows that INTC earns 4.0 out of 10 and AMD rates a 3.0. Scores close to 10 suggest that the upside beckons, while scores close to zero suggest that the path of least resistance leads lower. There is relatively low short interest on either of these stocks, and options sentiment lies close to an optimistic extreme for INTC, warning that sideline money might be scarce.

2:32 PM Kohl's Hits New High

Earlier today, Kohl's (NYSE:KSS) was trading at the highest levels we have seen since September 2003. At last check, it had backed away from its intraday high and stood down 0.27 percent at $62.42, but the trend is still to the upside. KSS has a Schaeffer's put/call open interest ratio (SOIR) of 1.29, which is higher than 97 percent of those taken during the past 52 weeks. Moreover, the firm's SOIR is trending higher, indicating that pessimism continues to grow. This information suggests that expectations in the options pits are low, and sideline money might still be abundant. What's more, the 10-day and 20-day trendlines are moving up, and might add some lift.

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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 .