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Schaeffer's Daily Market Blog Features: Walt Disney, American International Group, Boeing, Pacific Sunwear, and Intel.


CINCINNATI -- Among the stocks featured in the November 10 edition of Schaeffer's Market Blog are Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966)
Disney, Walter Elias Disney
 (NYSE NYSE

See: New York Stock Exchange
:DIS), American International Group
"AIG" redirects here. For other uses, see AIG (disambiguation).


American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City.
 (NYSE:AIG AIG addressee indicator group (US DoD)
AIG American International Group, Inc
AiG Answers in Genesis (religious group in defense of Scripture)
AIG Artificial Intelligence Group
AIG Australian Industry Group
), Boeing (NYSE:BA), Pacific Sunwear Pacific Sunwear (also known as PacSun) is a shopping mall retail store that sells surfing and skateboarding clothing and accessories for teenagers and young adults. It was originally based in Newport Beach, California, United States.  (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
:PSUN), and Intel (NASDAQ:INTC INTC Intel (NASDAQ symbol)
INTC Intercept
INTC Interrupt Controller
). 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. 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/.

10:15 AM Walt Disney "Under the Sea" Despite Strong Earnings

Walt Disney (NYSE:DIS) is proving today that sometimes your best just isn't good enough. The company reported earnings last night of 36 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.
, topping the Street by three cents per share and besting the whisper number Whisper Number

Unofficial and unpublished earnings per share forecasts that circulate among the professionals and wealthy investors on Wall Street. Whisper numbers are especially useful when they differ from the consensus forecast.
 at WhipserNumber.com by two cents per share. But call activity was brisk heading into this report, suggesting that expectations may have been much higher than anyone was letting on. DIS's Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio
SOIR Simultaneous Operations on Intersecting Runways
) had fallen sharply from its November 6 reading of 0.86 in the 74th percentile to today's reading of 0.74 in the 64th percentile. This rise in call open interest can often be an indicator of elevated investor expectations on an earnings report. Meanwhile, the Dow Jones Newswires Dow Jones Newswires is the real-time financial news organization owned by Dow Jones. Founded in 1882, its primary competitors are Bloomberg L.P. and Reuters. The company reports more than 420,000 subscribers -- including brokers, traders, analysts and fund managers -- as of July  confirmed yet another potential negative for DIS today, reporting that analysts were disappointed that the company didn't adequately address how it will achieve growth in 2007. At last check, shares of DIS were down nearly four percent on the day.

10:29 AM American International Group Set to Battle the 70 Level

Blue-chip concern American International Group (NYSE:AIG) has jumped more than two percent so far today, after the company posted stellar earnings for the third quarter. For the period, AIG posted a profit of $1.53, excluding items, topping the analyst estimate by 11 cents per share, and edging past its whisper number, an indicator of investor expectations from WhisperNumber.com, by two cents per share. However, there appears to be a roadblock to AIG's advance, as the round-number 70 level has rejected the stock in the early going. This region has long been a thorn in AIG's side, allowing only two weekly closes above it since September 2004. Furthermore, more than 121,000 calls reside at this strike in the front three months of options. With options players focusing heavily on this strike in all three front months in today's activity, a breach of this region is becoming increasingly difficult for the shares going forward.

12:43 PM Boeing Back at it Again

Yesterday, Boeing (NYSE:BA) was selected by the U.S. Air Force to provide the military's next generation of combat search-and-rescue helicopters. According to BA, the contract is worth up to $10 billion. The terms of the contract call for BA to deliver 145 of its HH-47 helicopters, including four test aircraft, through 2019. The first aircraft is scheduled for deployment by 2012 and will gradually replace the military's existing fleet of HH-60G Hawk Combat Search and Rescue A specific task performed by rescue forces to effect the recovery of distressed personnel during war or military operations other than war. Also called CSAR. See also search and rescue.  helicopters.

In a separate announcement, the Pentagon valued the initial HH-47 order at $712 million. However, the overall program, including maintenance and future orders, could be worth as much as $20 billion depending on future Defense Department funding. The Dow component has advanced more than one percent today thanks to this news. Of course, there are losers in this deal, like Lockheed Martin (LMT LMT left mentotransverse (position of fetus). ) and United Technologies (UTX UTX United Technologies Corporation (stock abbreviation, AMEX)
UTX Unreal Texture (a texture pack for Unreal-engine games)
UTX Unit Training Exercise
UTX Under Track Crossing
), which were both edged out by BA.

1:03 PM PacSun Rallies Into Resistance

Pacific Sunwear (NASDAQ:PSUN) shot higher out of the gate today after visiting the earnings confessional last night. In the third quarter, the retailer of trendy apparel banked $8.98 million, or 13 cents per share, down from $40.5 million (54 cents per share) the previous year. The latest figure included a charge of 10 cents per share. Revenue edged fractionally lower during the period to $375.4 million, while same-store sales dropped 6.7 percent. Analysts were expecting per-share results of 25 cents on $380.3 million in sales. For the fourth quarter, PSUN expects to earn 45 to 50 cents per share; the company also plans to open 40 new stores and expand or relocate 35 additional locations during 2007. The news that store growth is supposed to be scaled back cheered Wall Street; Friedman Billings Ramsey FBR Group
Friedman, Billings, Ramsey Group Inc., or simply FBR, (NYSE:FBR), is a full service investment bank headquartered in Arlington, Virginia that sponsors the FBR Open PGA golf tournament held in Phoenix, Arizona.
 upgraded the stock this morning to "outperform."

In midday trading, PSUN shares are higher by nearly nine percent on above-average volume. This move has taken the stock headlong into its overhead 10-month moving average, which has acted as resistance since February.

2:05 PM Intel Increases Investment in Vietnam

Intel (NASDAQ:INTC) has announced that it will more than triple its initial investment in a chip assembly and testing plant the company is building in Vietnam to $1 billion. The stock was up half a percent today at $20.52. I notice that its intraday low of $20.42 appears to coincide with its 10-week moving average. The 20.42 level is one to watch. If INTC breaches this, there could be a downside move.

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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Date:Nov 10, 2006
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