Schaeffer's Street Chatter Highlights the Following Stocks: Altria Group, Exxon Mobil, and Rambus.Business Editors CINCINNATI--(BUSINESS WIRE)--Feb. 25, 2004 Today's "Street Chatter" from Schaeffer's Investment Research focuses on: Altria Group “Philip Morris” redirects here. For the racecar driver, see Philip Morris (autoracer). Altria Group, Inc. (NYSE: MO) (previously named Philip Morris Companies Inc. (NYSE NYSE See: New York Stock Exchange :MO), Exxon Mobil (NYSE:XOM XOM Exxon Mobil Corporation (stock symbol) XOM X/Open Object Management XOM OSI-Abstract-Data Manipulation API XOM Xml Object Model XOM X/Open Osi Abstract Data Manipulation ), and Rambus (Nasdaq:RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities ). "Street Chatter" is a report that analyzes three newsworthy news·wor·thy adj. news·wor·thi·er, news·wor·thi·est Of sufficient interest or importance to the public to warrant reporting in the media. news stocks that are generating a lot of attention on Internet message boards. "Street Chatter" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. 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/addinfo. Street Chatter: 1. Earlier this morning, Philip Morris and Kraft Foods Kraft Foods Inc. (NYSE: KFT) is the largest food and beverage company headquartered in North America and the second largest in the world after Nestlé SA. The Philip Morris Company (now known as Altria Group), a company that produces tobacco products, acquired Kraft for parent Altria Group (NYSE:MO) announced its standard quarterly dividend of 68 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. . MO shares have enjoyed a solid uptrend since April 2003, doubling in value in less than one year. The stock is now approaching a technical challenge in the form of the 58 level, which could serve as double-top resistance as this area represented the equity's June 2002 high. The sentiment picture of MO is a bit murky. Schaeffer's put/call open interest ratio (SOIR SOIR Schaeffer's Put/Call Open Interest Ratio SOIR Simultaneous Operations on Intersecting Runways ) for MO stands at 0.96, with call and puts nearly equal to one another among the front three-months' options series. This reading is relatively ordinary for the stock, standing in the 45th 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 . Meanwhile, on a short-interest basis, the number of shorted MO shares rose by over five percent during the last reporting period to 20.5 million, for a notable 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 about four times the equity's average daily volume. Click the following link to see the Weekly Chart of MO Since April 2002 With 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=9544. 2. Exxon Mobil (NYSE:XOM) and other oil stocks are in the news today after the petroleum authority for the Republic of Kazakhstan, along with all companies in support of the North Caspian production sharing agreement Production sharing agreements (PSAs) are used primarily to determine the share a private company will receive of the natural resources (usually oil) extracted from a particular country. , have issued their approval for the development of the Kashagan oil field. Production at this field is estimated to begin in 2008, with an initial production of 75,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. and an ultimate production goal of 450,000 barrels per day. XOM shares have been on the rise since late November and recently topped short-term resistance in the 42 region. For the past several sessions, the equity has been hugging its 10-day moving average as it drives higher. SOIR for XOM weighs in at 0.45, in the 46th annual percentile. Short sellers have recently pulled away from XOM, as the number of shorted XOM shares dropped by nearly 50 percent over the last reporting period to 17.15 million, the lowest reading since the summer of 2002. The resultant short-interest ratio is an unimpressive two days to cover. Click the following link to see the Daily Chart of XOM Since November 2003 With 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=9544. 3. Semiconductor concern Rambus (Nasdaq:RMBS) is flying high today following the release of a report from a federal judge, who last week dismissed a Federal Trade Commission (FTC FTC See Federal Trade Commission (FTC). )-initiated lawsuit against RMBS. Today's report, which was all of 334 pages, detailed 12 instances where, in the judge's opinion, the FTC failed to prove its case. RMBS officials have subsequently asserted that they are pleased with today's report's findings. Over the past year, RMBS has been slowly shuffling higher, using its 10-week and 20-week moving averages as a springboard from which to launch higher. The stock has recently recovered from a quick violation of its 20-week trendline in early February. SOIR for RMBS has increased dramatically over the past three weeks to 0.56, which is six percent away from an annual high. In today's session, options players have taken interest in the near-the-money March 35 call. Nearly 4,500 contracts have changed hands at this strike, which was previously home to almost 15,500 open call contracts. Click the following link to see the Weekly Chart of RMBS Since August 2002 With 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=9544. 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. 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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