Schaeffer's Daily Market Blog Features Adobe Systems, General Mills, BMC Software, Yahoo!, and Microsoft.CINCINNATI -- Among the stocks featured in the June 15 edition of Schaeffer's Market Blog are Adobe Systems Adobe Systems Incorporated (pronounced a-DOE-bee IPA: /əˈdoʊbiː/) (NASDAQ: ADBE) (LSE: ABS) is an American computer software company headquartered in San Jose, California, USA. (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 :ADBE ADBE Adobe Systems, Inc. (stock symbol) ), General Mills (NYSE NYSE See: New York Stock Exchange :GIS), BMC Software (NYSE:BMC (BMC Software, Inc., Houston, TX, www.bmc.com) A leading supplier of software that supports and improves the availability, performance, and recovery of applications in complex computing environments. ), Yahoo! (NASDAQ:YHOO YHOO Yahoo! Inc. (NASDAQ symbol) ), and Microsoft (NASDAQ:MSFT MSFT Microsoft (stock symbol) MSFT Movimento Sociale Fiamma Tricolore (Italy) MSFT Multi-Stage Fitness Test MSFT Master of Science in Family Therapy MSFT Macalester Students for Fair Trade ). 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 by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB PROB Probable/Probably PROB Problem PROB People's Republic of Bangladesh 12M&PAGE=1 . Schaeffer's Market Blog for Thursday, June 15, 2006: Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 . 5:36 PM Gates to Transition Out of Microsoft Daily Leadership Microsoft (NASDAQ:MSFT) announced that chairman and co-founder Bill Gates would transition out of his daily role at the company in order to spend more time at the Bill and Melinda Gates Foundation Bill and Melinda Gates Foundation, philanthropic institution founded in 1994 by Microsoft chairman Bill Gates and his wife, Melinda, to improve the lives of the poor throughout the world, primarily through grants for projects relating to global health care, . According to the announcement, Gates will conduct a two-year transition to ensure a "smooth and orderly" transfer of his responsibilities. After 2008, Gates will continue to serve as chairman and an advisor on key development projects. Chief Technical Officer Ray Ozzie will immediately take on Gates' title of chief software architect. In after-hours trading after-hours trading The trading of securities after the exchanges are closed. After-hours trading often refers to trading a listed security in the over-the-counter market after the exchanges have been closed for the day. , MSFT fell 0.5 percent on the news. 4:19 PM Adobe Systems Lowers 2006 Expectations In after-hours trading, Adobe Systems (NASDAQ:ADBE) quickly plunged more than one percent after the document software company released its second-quarter earnings statement. The company reported a net profit of $123.1 million, or 20 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 a pro-forma basis, earnings arrived at 31 cents per share, topping the Street's view by a penny per share. However, revenue for the quarter arrived at $635.5 million, just missing the consensus estimate for $645 million. Furthermore, ADBE lowered its 2006 pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. estimate to $1.20-$1.25 per share, down from prior expectations for $1.26-$1.30 per share. Revenue for the year is now expected to arrive at $2.54-$2.6 billion, lower than its prior estimate for $2.7 billion. Since the initial reaction to the downside on the release, ADBE has bounced back to just below breakeven at last check. 3:18 PM Getting Cereal on General Mills Earlier today, General Mills (NYSE:GIS) announced that it should top its fiscal 2006 profit target due to tax benefits and "above-target operating performance." The firm now estimates that earnings for the year should arrive at $2.90 per share, up from its earlier view of $2.80 to $2.85. However, Citigroup downgraded GIS to "hold" from "buy," citing concern about earnings growth. Technically, GIS has pulled back more than two percent on the downgrade. However, this could be a boon for those bullishly inclined toward the equity, as GIS is now trading near the bottom rail of an uptrending channel it has occupied since September 2005. Additionally, round-number support at the 50 level could also lend a hand in the stock's recovery. On the sentiment front, should any of Citigroup's brokerage firm brethren beg to differ with the firm's downgrade, there is ample room for upgrades for GIS. Prior to this morning's downgrade, Zacks reported that nine of the 13 covering analysts rated GIS a "hold" or worse. A rebound from today's pullback could be just the catalyst GIS needs to get back on track. 3:06 PM Is BMC Software Poised to Run? Despite revising its fourth-quarter earnings estimate lower to 24 cents per share from 35 cents per share, BMC Software (NYSE:BMC) is managing to post a bit of a gain today. The stock was last seen higher by nearly two percent. However, there seems to be quite a bit of resistance in the 22 region, as this area has been quite a point of contention for the shares since March. What's more, this level has halted BMC's advance in today's session. A breach of this level, however, could be just what BMC is 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. . Currently, the stock's 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. rests at more than eight days to cover, while 10 of the 11 analysts covering the shares rate them a "hold" or worse. Even the options crowd has gotten in on the act, as BMC's Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways ) of 1.30 ranks above 88 percent of those taken during the past year. 2:13 PM Optimism Runs High on Yahoo! Optimism is running high on Yahoo! (NASDAQ:YHOO) despite the stock's languishing lan·guish intr.v. lan·guished, lan·guish·ing, lan·guish·es 1. To be or become weak or feeble; lose strength or vigor. 2. price. Call option activity on the equity has been heavy lately, with more than twice as many calls being traded as puts both yesterday and today. With 21 "buy" ratings, four "hold" ratings, and zero "sell" ratings, it's safe to say that the analysts like this stock. Too much optimism on a stock that is weak technically is a good warning sign of further weakness. 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=PROB1C&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. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB12M&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 . |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion