Schaeffer's Daily Market Blog Features: The Cheesecake Factory, General Motors, Home Depot, Premier Global Services, and Ford Motor.CINCINNATI -- Among the stocks featured in the December 1 edition of Schaeffer's Market Blog are The Cheesecake Factory (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 :CAKE), General Motors (NYSE NYSE See: New York Stock Exchange :GM), Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box (NYSE:HD), Premier Global Services (NYSE:PGI PGI Protected Geographical Indication PGI Progiciel de Gestion Intégré (French: Enterprise Resource Planning) PGI Phosphoglucose Isomerase PGI Polish Geological Institute (Warsaw, Poland) ), and Ford Motor (NYSE:F). Schaeffer's Market Blog 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. 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. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity 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=PROB PROB Probable/Probably PROB Problem PROB People's Republic of Bangladesh 13M&PAGE=1 . Don't forget that many of our observations are available as audio presentations that you can hear on your computer or download from Apple's iTunes Music Store to play on a portable device such as an iPod. To see the full menu of podcasts, please visit http://www.schaeffersresearch.com/commentary/podcasts/. 11:56 AM Cheesecake Factory Shares Fall on Earnings This morning has seen a quick drop for shares of the Cheesecake Factory (NASDAQ:CAKE) due to a low fourth-quarter earnings view. On the news, CAKE was last seen down five percent. While analysts are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a profit of 26 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. on revenue of $351 to $354 million, CAKE said that their own fourth-quarter estimates predicted only 22 to 24 cents per share on between 351 and 354 million dollars. The announcement came following the close yesterday after a delay due to the company's own internal stock-option grant practices investigation. Meanwhile, the company's third-quarter report missed expectations by one cent per share. On the upside for CAKE, though the firm has seen a 1.2-percent decline in sales in general, their Grand Lux cafe locations have turned in a 5.5-percent increase. 1:39 PM Home Depot Buyout Speculation Call option activity is strong on Home Depot (NYSE:HD) in the wake of buyout speculation. Home Depot CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Bob Nardelli dismisses the buyout rumors, but the shares are up three percent to $39.15 nonetheless. The shares were resisted at $40, which also happens to be the strike of much of the call option volume. Too much optimism may mute the shares upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar over the near-term. An actual buyout of HD for a price significantly above the current price would make that point rather moot, however. 2:22 PM Premier Global Benefits from Nominations Premier Global Services (NYSE:PGI) may have found its lucky charms in Eric Rosenfeld and Colin Watson. Crescendo Partners II, LP, holders of four percent of the business conferencing company's outstanding stock, announced this morning that they would be nominating the two men to the PGI board at the 2007 stockholders' meeting. Crescendo also presented a proposal that would declassify de·clas·si·fy tr.v. de·clas·si·fied, de·clas·si·fy·ing, de·clas·si·fies To remove official security classification from (a document). de·clas the Board of Directors. Rosenfeld stated his opinion that PGI's stock was currently undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. and that Crescendo Partners, of which he is President and CEO, urges PGI "to explore strategic alternatives to maximize stockholder value." If today is any indication, their mere presence may be enough to achieve that end for now. Since the announcement, PGI stock has risen 10 percent. 3:02 PM GM November Sales Rise Earlier this afternoon, General Motors (NYSE:GM) announced that November auto sales Auto Sales The major producers of domestic automobiles report sales monthly. These numbers are seasonally adjusted by the U.S. Department of Commerce and are available to the public one to five business days after the end of each month. jumped 5.8 percent. The car side suffered a 7.9-percent decline, while light trucks jumped 16.6 percent. The GMC GMC See: Guaranteed Mortgage Certificate brand showed the biggest gains, up 30.1 percent. Meanwhile, the firm warned that its first-quarter 2007 production plans are off nine percent from a year ago, mainly because of the automaker's move away from rental fleet sales. Technically speaking, the shares are flat, which is impressive since the S&P 500 Index (SPX (Sequenced Packet EXchange) The transport layer protocol in the NetWare operating system. Similar to the TCP layer in TCP/IP, it ensures that the entire message arrives intact. SPX uses NetWare's IPX as its delivery mechanism. ) has lost nearly one percent today. The equity has recently dropped below its 10-day and 10-week moving averages. However, the security is currently perched on its 10-month trendline, which it has not closed below since May. 3:07 PM Ford Motor Stalls on Weak Sales Report The shares of Ford Motor (NYSE:F) haven't faired as well as General Motors (GM) this afternoon. The security has shed roughly 1.5 percent following the release of its November sales figures. The automaker reported that U.S. auto sales last month dropped 9.6 percent. The car side showed a 2.6-percent retreat while truck sales fell 12.9 percent. Lincoln and Volvo brands turned in double-digit improvements while Jaguar sale continues to stumble, dropping 35.2 percent in November. The firm said it plans to build 620,000 vehicles in the fourth quarter, down 15,000 units from prior forecasts. The security is currently clinging to support at the eight level, which is also the site of the stock's ascending 20-week moving average. From a longer-term perspective, the stock remains trapped between support at its 10-month moving average and resistance at its overhead 20-month trendline. For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&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 and get entered to win an IPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&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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