Schaeffer's Street Chatter Features Costco, Delta Airlines, and Pfizer.Business Editors CINCINNATI--(BUSINESS WIRE)--Oct. 8, 2003 Today's Schaeffer's Street Chatter features Costco (Nasdaq:COST), Delta Airlines (NYSE NYSE See: New York Stock Exchange :DAL), and Pfizer (NYSE:PFE 1. (text, editor) PFE - Programmer's File Editor. 2. (language) PFE - Portable Forth Environment. ). A new daily feature available on SchaeffersResearch.com is Street Chatter. Every day, we'll focus on three stocks that are generating a lot of attention on Internet message boards. We hope this will effectively offer information on equities that are popular in the investing world and will be a beneficial resource for our readers. For additional information about this report or to have it delivered to you free via email every day click on the following link. Each new subscriber will receive a FREE copy of Bernie Schaeffer's Options 101 CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). (a $49.95 value). http://www.schaeffersresearch.com/addinfo . Schaeffer's Street Chatter: Costco Club-style retailer Costco Wholesale (Nasdaq:COST) announced fourth-quarter earnings this morning of 51 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . These missed last year's figures by a penny but topped analysts' adjusted expectations by four cents per share. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. for September rose 10 percent at the wholesale retailer. Technically speaking, the stock is still recovering from a large bear gap that transpired in early August, after the company announced a lackluster profit projection for the fourth quarter. The shares are currently hovering hov·er intr.v. hov·ered, hov·er·ing, hov·ers 1. To remain floating, suspended, or fluttering in the air: gulls hovering over the waves. 2. around the middle of this gap. In today's trading, COST managed to overcome short-term resistance at the 33 mark but the stock has settled back to this site in midday activity. The security's options pits are active today, most notably at the October 32.50 call, where over 6,500 contracts have crossed the tape. Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways ) for COST currently weighs in at 0.94, in the top 12 percent of the past year's worth of data for this indicator. Click the following link to see a Daily Chart of COST Since July 2003 With 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=8604 . Delta Airlines The Delta Airlines (NYSE:DAL) pilots' union is converging to meet for the first time in over three months, as the airline launches discussions about possible wage reductions. In other news, Prudential initiated coverage on DAL with a "neutral" rating. On the technical front, DAL is being challenged by two levels of resistance. In the short term, the stock is struggling below the 14 level, which marked a peak for the shares in June. From a longer-term perspective, DAL is lodged beneath its 20-month moving average. The stock has not managed a monthly close above this trendline since July 1999. Pessimism pessimism, philosophical opinion or doctrine that evil predominates over good; the opposite of optimism. Systematic forms of pessimism may be found in philosophy and religion. is relatively high on the stock, as illustrated by the 19.5 million DAL shares sold short, amounting to a 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. of 7.10 days to cover. Also, Schaeffer's put/call open interest ratio (SOIR) for the stock stands a 0.90, in the 60th annual percentile percentile, n the number in a frequency distribution below which a certain percentage of fees will fall. E.g., the ninetieth percentile is the number that divides the distribution of fees into the lower 90% and the upper 10%, or that fee level . Click the following link to see a Monthly Chart of DAL Since November 2001 With 10-Month and 20-Month Moving Averages: http://www.schaeffersresearch.com/wire?ID=8604 . Pfizer Pharmaceutical heavyweight Pfizer (NYSE:PFE) received some good news today as the U.S. Food and Drug Administration approved the firm's Inspra medication for the treatment of congestive heart failure congestive heart failure, inability of the heart to expel sufficient blood to keep pace with the metabolic demands of the body. In the healthy individual the heart can tolerate large increases of workload for a considerable length of time. , and said the drug could be marketed as such. The announcement is having a muted affect on the shares, which have moved only marginally higher. PFE is currently trading below its 10-day and 20-day moving average, which 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 crossover Crossover The point on a stock chart when a security and an indicator intersect. Crossovers are used by technical analysts to aid in forecasting the future movements in the price of a stock. In most technical analysis models, a crossover is a signal to either buy or sell. last month. The stock has been in decline mode since June, despite the strength exhibited by the broader market. Not surprisingly, options players have jumped on the bearish bandwagon band·wag·on n. 1. An elaborately decorated wagon used to transport musicians in a parade. 2. Informal A cause or party that attracts increasing numbers of adherents: with regard to PFE. Schaeffer's put/call open interest ratio (SOIR) for the stock weighs in at 0.64, which is just six percent away from a new annual high in this indicator. There is some action taking place today at the October 30 call and the January 27.50 put. Over 3,000 contracts have traded on both positions. It will be interesting to note tomorrow how many of these were new buys, and the resultant effect on the stock's SOIR reading. Click the following link to see a Daily Chart of PFE Since June 2003 With 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=8604 . The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive their free e-newsletters - Opening View, Midday Report, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day. Each new subscriber will receive a FREE copy of Bernie Schaeffer's Options 101 CD-ROM (a $49.95 value). http://www.schaeffersresearch.com/addinfo . 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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