Schaeffer's Market Observation Features OSI Pharmaceuticals.CINCINNATI -- The stock featured in this Schaeffer's Market Observation is OSI Pharmaceuticals OSI Pharmaceuticals, Inc. is an American pharmaceutical company based in Long Island, New York with facilities in Colorado, New Jersey and the United Kingdom. They specialize in the discovery and development of molecular targeted therapies, and are listed in the NASDAQ (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 :OSIP OSIP Open Source Integrated Portfolio OSIP Open Sip (session initiation protocol) OSIP Ohio Statewide Imagery Program OSIP Operational Safety Improvement Program OSIP Operational Suitability Improvement Program (aviation) ). This article 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. 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 and get entered to win an iPod Nano A flash-based digital music player from Apple, introduced in 2005. Like larger iPod models, the nano has a color screen. Although the nano name suggests ultra-small "nanotechnology," the iPod shuffle is actually smaller. See iPod. . http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&PAGE=1 . Short and Sweet: Notable Short-Interest Decreases, Nasdaq Style Technical and Sentiment Analysis Sentiment analysis refers to a broad (definitionally challenged) area of natural language processing, computational linguistics and text mining. Generally speaking, it aims to determine the attitude of a speaker or a writer with respect to some topic. on OSI Pharmaceuticals (OSIP) In today's column, we'll look at some of the largest (percentage-wise) short-interest declines on the Nasdaq. If you have missed my previous columns this week, feel free to click and read: * Short and Sweet: Notable Short-Interest Increases (Featuring Pfizer) (http://www.schaeffersresearch.com/plus/bgscommentary.aspx? click=home&id=17414) * Short and Sweet: Notable Short-Interest Decreases (Featuring Scottish Re Group) (http://www.schaeffersresearch.com/plus/bgscommentary.aspx? click=home&id=17419) * Short and Sweet: Notable Short-Interest Increases, Nasdaq Style (Featuring Charlotte Russe charlotte russe n. A cold dessert of Bavarian cream set in a mold lined with ladyfingers. [French : charlotte, charlotte + russe, Russian.] Noun 1. ) (http://www.schaeffersresearch.com/plus/bgscommentary.aspx? click=home&id=17427) (Due to their length, the URLs above may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) Typically, we view low short-interest numbers in 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 light; the lack of short-covering support means one less source from which to draw buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. . Declining short interest, on the other hand, can be read as a positive development in special cases. If the stock continues to display solid price action but still boasts a hefty short-interest ratio short-interest ratio A ratio that is used for market analysis and is calculated by dividing short interest by average daily volume. Technicians use the short-interest ratio as a tool to determine market direction. , declining short interest indicates that the bears are beginning to head toward the exits but a significant number of shorted shares remains. A perpetuation of this trend could mean more buying strength filtering down to the shares. Such is the case with a number of equities on today's list. Click the following link to see a Table of Short-Interest Decreases: http://www.schaeffersresearch.com/wire?ID=17440 . Catching my attention in particular today is OSI Pharmaceuticals (NASDAQ:OSIP). The developer of cancer-combating treatments saw its number of shorted shares drop more than 18 percent this month to 7.5 million shares, the most meager mea·ger also mea·gre adj. 1. Deficient in quantity, fullness, or extent; scanty. 2. Deficient in richness, fertility, or vigor; feeble: the meager soil of an eroded plain. 3. reading since April. While this was one of the steepest percentage declines of the past reporting period, short interest remains fairly robust on OSIP, relatively speaking. In fact, 13 percent of the security's float remains committed to the short side. Additionally, more than eight trading days 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. would be required to eradicate all of the remaining shorted shares (at the stock's average daily volume). In other words Adv. 1. in other words - otherwise stated; "in other words, we are broke" put differently , there is plenty of shorting power stashed away. It's a fair guess that short sellers may be running for the exits with their proverbial pro·ver·bi·al adj. 1. Of the nature of a proverb. 2. Expressed in a proverb. 3. Widely referred to, as if the subject of a proverb; famous. tails between their legs, as OSIP hasn't exactly been kind to the bears of late. Since bottoming out in early May, the shares have surged by nearly 50 percent, relying heavily on the steady support of their ascending 40-day moving average. The stock is currently consolidating in the direction of this trendline, which should again be able to buoy the shares forward. Click the following link to see a Daily Chart of OSIP Since April 2006 With 40-Day Moving Average: http://www.schaeffersresearch.com/wire?ID=17440 . A long-term picture is also indicative of the stock's recent technical prowess. The stock finished August above its 10-month and 20-month moving averages for the first time since December 2004 and is poised to close September above this pair of trendlines as well. What's more, the 10-month has reversed into an uptrend uptrend A series of price increases in a security or in the general market. Some investors believe a security tends to take on a certain inertia; as a result, these investors search for stock in an uptrend, thinking that it will probably continue to move in an is advancing toward a bullish cross of its 20-month counterpart. This would represent the first example of this technical phenomenon since October 2003. Click the following link to see a Monthly Chart of OSIP Since January 2003 With 10- and 20-Month Moving Averages: http://www.schaeffersresearch.com/wire?ID=17440 . Turning to the stock's other sentiment indicators Sentiment indicators The general feeling of investors about the state of the market, such as whether they are bullish or bearish. , we're left with a fairly mixed picture. The options landscape shows a slight bit of favoritism toward the bearish crowd; the stock's Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways ) of 0.57 is higher than 65 percent of all readings taken over the past year. But in the front-month series, OSIP has about 8,000 contracts perched overhead at the out-of-the-money 40 call strike. Heading over to Wall Street, the analyst contingent cannot collectively make up its mind. OSIP has earned five "buy" ratings, two "holds," and a solitary "strong sell." Upgrades (or new coverage) are not out of the question right now, but downgrades are a possibility as well. Overall, the stock earns a Schaeffer's Equity Scorecard rating of 8.0, indicating the distinct possibility for future upside. Tomorrow we'll put this series to bed with a look at some of the heftiest short-interest ratios on the exchanges. There's one Nasdaq stock that would require the bears to take an entire year's worth of trading days to clear out all of the shorted positions. Tune in tomorrow to find out what. 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 and get entered to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&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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