Schaeffer's Daily Market Blog Features Broadcom, Apollo Group, Strayer, General Motors.CINCINNATI -- Among the stocks featured in the May 4 edition of Schaeffer's Market Blog are Broadcom (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 :BRCM BRCM Broadcom Corporation (stock abbreviation, AMEX) BRCM Master Chief Boilermaker (USN rating) ), Apollo Group Apollo Group, Inc. NASDAQ: APOL is an S&P 500 corporation based in Phoenix, Arizona. Apollo Group, Inc., through its subsidiaries, provides higher education to working adults. (NASDAQ:APOL APOL Asia Pacific Online APOL Alternate Person on Line ), Strayer (NASDAQ:STRA), and General Motors (NYSE NYSE See: New York Stock Exchange :GM). Schaeffer's Market Blog is just one of the many free market commentaries written everyday at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. 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=PROB PROB Probable/Probably PROB Problem PROB People's Republic of Bangladesh 1M&PAGE=1 . Schaeffer's Market Blog for Wednesday, May 4 2005: Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 . 2:02 PM Broadcom Moving Higher Amid Optimism Broadcom (NASDAQ:BRCM) has moved higher recently, and the level of optimism as illustrated by option activity seems to hit a new high every day. Today's front-month option activity on the equity includes 8,577 calls versus only 1,340 puts. I'm not entirely sure if these are all additions to open interest or liquidations, but given the recent trend, I'd have to say that most of the volume represents new open interest. Before today's activity the Schaeffer put/call open interest ratio on BRCM sat at 0.43, which is the stock's lowest reading over the past 12 months. Today's activity should push this sentiment reading even lower. I'd have to guess that given all the optimism, shares of BRCM could soon run out of steam. 1:42 PM Apollo Hurt by Strayer News Education services company Apollo Group (NASDAQ:APOL) is taking a beating today on the heels of the Strayer news discussed earlier on www.SchaeffersResearch.com . APOL is currently down $4.64, or 6.43 percent, to $67.59. It remains to be seen whether or not this reaction is overdone o·ver·done v. Past participle of overdo. Adj. 1. overdone - represented as greater than is true or reasonable; "an exaggerated opinion of oneself" exaggerated, overstated , but the high level of pessimism toward the equity could indicate that it is reaching oversold Oversold In technical analysis, it is a market in which the volume of selling that has occurred is greater than the fundamentals justify. Notes: It is the opposite of overbought. levels. The Schaeffer put/call open interest ratio for APOL of 1.85 is higher than 92 percent of all readings over the past year, short interest represents about nine percent of tradable APOL shares, and only seven out of 17 analysts currently rate the stock a "buy." 11:28 AM Strayer Education Strayer Education, Inc. (NASDAQ: STRA) is an education services holding company which owns for-profit Strayer University and other assets. The corporation was established in 1996 to take what was then Strayer College public and raise capital for expansion. Down Sharply on Lowered Guidance According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Yahoo! Finance, Strayer Education (NASDAQ:STRA) is a for-profit, post-secondary education services corporation. This morning before the market open, STRA beat first-quarter earnings expectations by a penny, but guided its second-quarter outlook lower. The company now sees second-quarter earnings of 82 to 84 cents versus Reuters Estimates of 93 cents. The stock has taken quite a hit on the adverse guidance. At last check, STRA was trading 19 points lower to $84 today. 10:52 AM General Motors Motors Higher on Tender Offer Shares of General Motors (NYSE:GM) are trading more than 13 percent higher this morning on the news that Tracinda Corp., an investment vehicle owned by Kirk Kerkorian Kerkor "Kirk" Kerkorian (Armenian: Քըրք Քըրքորյան) (born June 6, 1917) is an American billionaire, and president/CEO of Tracinda Corporation, his private holding , offered to buy another five percent of GM's stock for $31 per share. Tracinda said it planned on holding the stock "for investment purposes." While it has been quite a rough patch for GM and the rest of the automakers, sentiment toward the group has seemingly reached a negative extreme. Considering the hopeless sentiment toward the auto concern, any additional positive news could send the shares skipping sharply higher again. 10:16 AM Here We Go Good morning. The markets are higher this morning on news that Kirk Kerkorian will buy nearly nine percent of General Motors (GM). Bonds are being hit pretty good after the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. is said to be considering bringing back the 30-year bond, bringing about fears of over supply. While the dollar is lower due to what the Fed said yesterday and thus gold is up about $3 an ounce. The above are just a few of today's Daily Market Blog entries. Click here to read all of today's Daily Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 . 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. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1M&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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