Schaeffer's Daily Market Blog Features Internet Security Systems, SINA Corp., Tyco International, and Manpower.

CINCINNATI -- Among the stocks featured in the February 1 edition of Schaeffer's Market Blog are Internet Security Systems (NASDAQ:ISSX), SINA Corp. (NASDAQ:SINA), Tyco International (NYSE:TYC), and Manpower (NYSE:MAN). Schaeffer's Market Blog are 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 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=PRMOU1M&PAGE=1 .

Schaeffer's Market Blog for Tuesday, February 1, 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

9:56 AM Internet Security Systems Beats Estimates But Forecast Disappoints

Internet Security Systems (NASDAQ:ISSX) reported fourth-quarter earnings results of 22 cents per share, beating the consensus estimate of 20 cents per share. However, the provider of network and internet security devices disappointed investors with its forecast. The company expects earnings of 69 to 75 cents per share for 2005, whereas analysts were expecting the company to earn 82 cents per share for the year. Heading into the announcement, the sentiment picture was leaning toward the bearish camp. The Schaeffer's put/call open interest ratio (SOIR) spiked higher as the result of puts on ISSX trading at a pace 10 times that of the average day. The SOIR jumped from 0.66 to 0.93 and the percentile ranking jumped from 31 percent to 72 percent. Analysts were relatively bearish toward the stock as well, as there were 13 "hold" ratings and four "buy" ratings. ISSX is down more than nine percent this morning.

10:27 AM Sentiment Diverging on SINA Corp.

Since peaking at $39.94 on December 2, SINA Corp. (NASDAQ:SINA) has dropped by 33 percent over the past two months. During this decline, there has been a divergence in two of the more popular sentiment indicators, the Schaeffer's put/call open interest ratio (SOIR) and the short-interest ratio. The SOIR has trended steadily lower, dropping from the 0.67-0.73 range to as low as 0.46 yesterday. The current reading of 0.49 is lower than all but two readings taken over the past year. Meanwhile, the short-interest ratio has risen from 1.63 to 3.08 and the number of shares sold short jumped 18 percent during the most recent reporting period.

11:56 AM More Detail on SINA Option Activity

As discussed in the previous blog posting by my colleague Rick Pendergraft, SINA's Schaeffer's put/call open interest ratio (SOIR) did hit an annual low of 0.46 yesterday. However, puts also traded actively yesterday, with put volume 2.6 times heavier than average. More than 2,400 contracts crossed the tape, with the most active being the February 25 strike (NOQ NE). The NOQ NE contract saw volume of more than 3,300 contracts yesterday and about 1,200 contracts translated into new positions. The February 22.50 call (NOQ BX) also saw a significant number of new positions added yesterday, as approximately 1,000 new contracts translated into new open interest. The brisk option activity could be traders positioning themselves ahead of next week's earnings report. SINA is schedule to step into the earnings confessional next Monday after the market close, with analysts calling for earnings of 32 cents per share.

12:08 PM Tyco International Reports In-Line Earnings

In yesterday's Daily Market Blog, I discussed the unusual put activity ahead of Tyco International's (NYSE:TYC) earnings report. Put volume was 3.5 times heavier than average ahead of the earnings report, with the most active contract being the February 32.50 strike (TYE NZ). This morning before the market open, TYC reported earnings of 42 cents per share, in-line with analyst expectations. However, the company also guided future earnings to the lower end of its prior guidance range. While the stock is trading more than four percent lower today, the buyers of the TYE NZ contracts still aren't making money because this option is still more than $2 out-of-the-money. In fact, TYE NZ closed yesterday with a bid of 10 cents and the last trade today went off at five cents.

12:26 PM Manpower Issues First-Quarter Guidance

Manpower (NYSE:MAN) has fallen nearly 10 percent today after issuing a first-quarter earnings projection. The company forecast that its earnings will come in between 34 and 37 cents per share, well below the consensus estimate for earnings of 46 cents per share. This first-quarter projection includes a one-cent benefit from currency. MAN was upbeat about the forecast, telling MarketWatch, "We think we'll have a good first quarter. We're going to be investing in the business. We have a positive outlook for 2005." A spokesman for the company also added that this the first time MAN has issued first-quarter guidance. The fourth quarter saw the equity tack on 39 percent to tag 73 cents per share, in line with the Street's estimate. The company's Schaeffer's put/call open interest ratio (SOIR) currently stands at 0.96, higher than 72 percent of the readings taken over the past 52 weeks. While this reading reflects pessimistic attitudes toward MAN, it is the lowest SOIR reading taken over the past five trading days.

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

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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.