Schaeffer's Market Leaders and Laggards Features Caesars Entertainment, Western Digital, The DIRECTV Group, Smurfit-Stone Container, and Symantec.CINCINNATI -- Among the stocks featured in the April 11 edition of Schaeffer's Market Leaders and Laggards are Caesars Entertainment Caesars Entertainment, Inc. is a Las Vegas, Nevada based business that was the largest owner, operator and developer of hotels and casinos throughout the world. Now a wholly owned subsidiary of Harrah's Entertainment it was part of the Hilton Hotels chain and was spun off from (NYSE NYSE See: New York Stock Exchange :CZR CZR Columnar Zone Radius CZR Communication Zone Rear (Combat Military Zones) ), Western Digital (NYSE:WDC WDC Washington DC, USA WDC Western Digital Corporation WDC World Data Center WDC Warwick District Council (UK) WDC World Diamond Council WDC Workforce Development Center WDC Wisconsin Democracy Campaign ), The DIRECTV Group (NYSE:DTV (Digital TeleVision) Transmitting TV using digital signals. The major DTV standards are ATSC (North America), DVB (Europe) and ISDB (Japan). All three use MPEG-2 video compression and Dolby Digital audio compression. DVB and ISDB also include MPEG audio compression. ), Smurfit-Stone Container Smurfit-Stone Container Corporation (NASDAQ: SSCC) is an American paperboard and paper-based packaging company based in Chicago, Illinois. It has approximately 38,600 employees. Smurfit-Stone was formed in 1998 as a result of the merger between Jefferson Smurfit Corp. (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 :SSCC SSCC Serial Shipping Container Code (EAN barcoding) SSCC Sacred Hearts of Jesus and Mary (religious order) SSCC Space Station Control Center SSCC Sulphide Stress Corrosion Cracking ), and Symantec (NASDAQ:SYMC SYMC Symantec Corporation (stock symbol) ). Schaeffer's Market Leaders and Laggards screener is just one of the many features written everyday at http://www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The information used to compile this commentary is derived from the Schaeffer's Equity Scorecard Filter. Below is a quick overview of some of the heavy hitters that are seeing some particularly high or low rankings. For a complete list of the stocks on our High/Low Schaeffer's Equity Scorecard Filter, sign up for an unlimited access free trial to Schaeffer's Gold. http://www.SchaeffersResearch.com/redirect.aspx?CODE=PRGLD2M&PAGE=1 . Schaeffer's Market Leaders and Laggards for Monday, April 11, 2005: Caesars Entertainment - Ranking 9.0 Looking to have a little fun? You could plant yourself in one of the 27 casinos that Caesar's Entertainment (NYSE:CZR) operates in four different countries. Its Schaeffer's Equity Scorecard of 9.0 suggests that call options on the equity could help you find the jackpot. What contributes to this lofty Scorecard ranking? First, we have the company's Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways ) of 1.03. This indicates that pessimistic puts outnumber calls in the first three months of options. Furthermore, the percentile ranking comes in at a hefty 90, indicating that pessimism has reached an extreme. Next, we have analyst sentiment. 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. Zacks, 10 of the 15 analysts who cover CZR rate it a "hold." This apathetic ap·a·thet·ic adj. Lacking interest or concern; indifferent. ap a·thet bunch could provide an upside push should they change their bets to the "buy" side. Finally, we have CZR's technical performance. On the equity's weekly chart, May 2003 marked the completion of a bullish cross by its 10-week moving average. Since the completion of this cross, CZR has closed below the dual support of its trendlines a mere two times. But all is not rosy for the emperor of the gaming industry, as the shares have found resistance at an all-time high of 20.97. However, a 9.0 ranking out of a possible 10.0 indicates that new highs could be conquered by CZR. Click on the following link to see the Weekly Chart of CZR since January 2003 with 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=12917 . Western Digital - Ranking 8.0 Western Digital (NYSE:WDC) is one of the largest independent producers of hard disk drives used to store, and recall volumes of data. A majority of the company's sales come through manufacturing drives for desktop PCs. Optimism has been building toward WDC, as demonstrated by its SOIR of 0.34, lower than 88 percent of the readings taken over the past 52 weeks. Calls outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, puts by a nearly three-to-one clip in the front three months of options. Is the optimism warranted? A daily chart for the dean of disk drives seems to suggest a level of support could be found in its reclaimed 10-day and 20-day moving averages. At the end of March, WDC was pushed below the support of these two trendlines, but recently gapped higher to overtake these trendlines again. Looking at the chart below shows that WDC used the support from these two trendlines throughout the rally sparked in late October 2004. What's more, WDC's weekly chart indicates that the company is going to enjoy the support of its two weekly trendlines in its battle against the 14 level. This combination of technical support and Street sentiment results in an Equity Scorecard ranking of 8.0 out of a possible 10.0 for WDC. Click on the following link to see the Daily Chart of WDC since October 2004 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=12917 . The DIRECTV Group - Ranking 2.0 After traversing my way home from our palatial pa·la·tial adj. 1. Of or suitable for a palace: palatial furnishings. 2. Of the nature of a palace, as in spaciousness or ornateness: a palatial yacht. grounds, I can't wait for the enjoyment provided by the hundreds of channels I receive on my DIRECTV (NYSE:DTV) system. It seems that the Street feels the same kind of love for DTV. The SOIR for the swami of satellite dish-based entertainment checks in at 0.62, indicating that calls outnumber puts in the front three-months' worth of options. Analysts are also enamored en·am·or tr.v. en·am·ored, en·am·or·ing, en·am·ors To inspire with love; captivate: was enamored of the beautiful dancer; were enamored with the charming island. with DTV as, according to Zacks, all 17 of those covering the entertainment empire rank it a "hold" or better. This allows for downside pressure on the stock should this happy crew changes its mind. When I look at DTV's technicals, I am glad that my reception at home is better than the company's charts. Currently, DTV is trading below its intermediate-term and long-term moving averages on both its weekly and monthly charts. Some hint of optimism comes from the firm's daily chart. After signing a deal with TiVo (TIVO) that will allow both companies to sell advertising for TIVO recorders, DTV was able to rebound off a near-term low. Since then, DTV has moved above its 10-day and 20-day moving averages. This move has turned DTV's 10-day moving average upward, and it now appears ready to bullishly cross its 20-day moving average. However, this is simply the possible reversal of a pronounced downtrend downtrend A series of price declines in a security or the general market. Many analysts feel that investors should avoid securities in a downtrend until the pattern is broken. Compare uptrend. suffered since hitting a near-term high in October. Overall, the combination of DTV's weak performance and rampaging optimism results in an Equity Scorecard ranking of 0 out of 10.0. Click on the following link to see the Daily Chart of DTV since October 2004 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=12917 . Smurfit-Stone Container - Ranking 1.0 No, Smurfit-Stone Container (NASDAQ:SSCC) has nothing to do with those little blue cartoon characters being shoved in concrete boxes. However, SSCC specializes in corrugated cor·ru·gate v. cor·ru·gat·ed, cor·ru·gat·ing, cor·ru·gates v.tr. To shape into folds or parallel and alternating ridges and grooves. v.intr. containers, containerboard, boxboard box·board n. A firm cardboard used for making boxes. , bag packaging, folding cartons, paper tubes, and labels. Options players are packing in the optimistic sentiment when it comes to the packing expert as calls hold a margin of three to one over the number of puts in the front three months for SSCC. Further optimistic sentiment can be found from the analyst community. Zacks tells us that 10 of the 11 analysts bestow a "hold" or better ranking on the company. However, technical performance doesn't necessarily support this position. SSCC is currently wallowing below the resistance of all its 10-unit and 20-unit moving averages, which has been the case for the better part of the past seven months. Speaking of months, going back seven months on SSCC's chart shows that the stock has only close two months above its 10-month and 20-month trendlines. In fact, the container concern's 10-month moving average just completed a bearish Bearish Words used to describe investor attitude. A bearish investor believes that a particular asset or the market as a whole will decline in value. bearish cross of its 20-month moving average. This is often the harbinger har·bin·ger n. One that indicates or foreshadows what is to come; a forerunner. tr.v. har·bin·gered, har·bin·ger·ing, har·bin·gers To signal the approach of; presage. of a continued downtrend. The overlying overlying suffocation of piglets by the sow. The piglets may be weak from illness or malnutrition, the sow may be clumsy or ill, the pen may be inadequate in size or poorly designed so that piglets cannot escape. optimistic sentiment of the Street, combined with SSCC's technical weakness results in an Equity Scorecard ranking of 1.0. Click on the following link to see the Monthly Chart of SSCC since August 2004 with 10-Month and 20-Month Moving Averages: http://www.schaeffersresearch.com/wire?ID=12917&obspage=2 . Symantec - Ranking 1.0 Optimism litters the sentiment backdrop for our final stock today, Symantec (NASDAQ:SYMC). The security software firm's SOIR checks in at 0.27, while this isn't the lowest of readings, it is lower than 99 percent of the past 52-weeks' worth of readings. Analysts feel similarly, but not as strongly, toward SYMC. According to Zacks, SYMC receives 27 "hold" or better ratings (out of 28 ratings). This glut of optimism from the analyst community allows for a sizeable downside turn should any changes of heart occur. Looking at SYMC's daily chart makes me wonder how the shares could move any lower. Since December 2004, SYMC has been shoved lower and lower (and lower), thanks to the staunch resistance of its 10-day and 20-day moving averages. What's more, the most recent foray above these trendlines was quickly ended when SYMC found resistance at the 22 level. This weak technical performance combines with the optimistic sentiment to garner SYMC a Scorecard ranking of 1.0. Click on the following link to see the Daily Chart of SYMC since December 2004 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=12917&obspage=2 . For a complete list of the stocks on our High/Low Schaeffer's Equity Scorecard Filter, sign up for an unlimited access free trial to Schaeffer's Gold. http://www.SchaeffersResearch.com/redirect.aspx?CODE=PRGLD2M&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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