Printer Friendly

Zacks.com Announces That Bernie Schaeffer Highlights Options for the Following Stocks: Harley-Davidson, Kmart Holding, and U.S. Steel.

CHICAGO -- Will the Dow fall from its support level at 10,000? Bernie Schaeffer believes it will after a furious battle, but investors don't need to get caught off-guard again. Use this expert's market analysis and option recommendations to stay alert during this difficult time. Read about options for Harley-Davidson (NYSE:HDI), Kmart Holding Corporation (NASDAQ:KMRT), and United States Steel (NYSE:X). Bernie Schaeffer is editor of Bernie Schaeffer's Option Advisor newsletter. Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=84

Here are the highlights from the Featured Expert column:

The Market taken from the July 22nd edition of Bernie Schaeffer's Option Advisor

The 2004 financial market equivalent of the Maginot Line is set forth in two charts of the Diamonds Trust (DIA), an exchange traded fund (ETF) keyed to the Dow Jones Industrial Average (DJIA). The "fortification" is at the 100 level, equivalent to DJIA 10,000. The DIA 100 held as support in March, in May, and today. In the first two cases, an abrupt 500-point DJIA rally immediately followed, though in May the fortification required heavy reinforcements before it was able to hold. The jury is out on where we're headed after today's save, which was accompanied by a furious 100-point late rally from a low of 9,947 to a close of 10,050.

Aggressive Portfolio

Harley-Davidson (NYSE:HDI) - EXPECTATIONALANALYSIS(R): This company continues to power higher, as the shares have outperformed the SPX since the start of the year. During that time period the security has rallied along the steadfast support of its 10-week and 20-week moving averages. The equity has also climbed along its 10-month trendline for the past year. Looking at the fundamentals, the company reported earnings on July 14 that surpassed the Street estimate by eight cents per share while revenue spiked higher by 8.9 percent. Despite its stellar technical and fundamental performance, investors remain skeptical of the security. Puts continue to outnumber calls in the front three months of options, giving the equity a SOIR of 1.04.

Kmart Holding Corporation (NASDAQ:KMRT) - EXPECTATIONALANALYSIS(R): Kmart continues to be a favorite whipping boy of the Street. The retailer has also been the focus of several recent negative media articles. Options players are following suit by flocking to put positions. In fact, puts outnumber calls among the front three months of options, giving the security a SOIR of 1.29. What's more, the number of KMRT shares sold short continues to inch higher, yielding a short interest ratio of more than four times the average daily trading volume. This buildup of bearish bets raises the likelihood of the stock benefiting from a short squeeze. Wall Street is currently giving the equity the cold shoulder, with only one analyst following the firm. Any additional coverage could boost the stock higher.

United States Steel (NYSE:X) - EXPECTATIONALANALYSIS(R): Steel stocks have outperformed the broader market for the past four years after a decade of underperformance. The stock is up more than 250 percent off its March 2003 bottom. The shares are coming off a pullback to their ascending 10-month moving average, a trendline the security last closed a month below in March 2003. Fundamentally, the steel industry is in good shape, as the sector is seeing increased pricing power amid an increasingly inflationary environment.

Get Bernie's specific option recommendations on these companies, along with his complete market commentary and more option trades from the aggressive and put-selling portfolios, by clicking: http://at.zacks.com/?id=85

About Zacks Featured Experts

To be a successful investor you need professional advice. Experts who know what they're talking about and can help you achieve your financial goals in good markets...and especially in bad ones will help you improve your portfolio. That is why Zacks Investment Research has assembled the best investment experts in the business to offer their powerful advisory newsletters to you on all the major investment topics: Stocks, Mutual Funds, Bonds, Options, Futures etc.

Recommendations from Featured Experts Highlighted in FREE Investment Newsletter

The best way to tap into the powerful advice from these experts is through our free weekly e-mail newsletter, "Profit from the Pros". Each week we highlight several Featured Experts in this free e-mail newsletter. Get your free subscription to "Profit from the Pros" at: http://at.zacks.com/?id=86

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind our work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. Our goal is to unlock their profitable insights for our customers. And there is no better way to enjoy this investment success, than with a FREE subscription to "Profit from the Pros" weekly e-mail newsletter. For your free newsletter, visit http://at.zacks.com/?id=87

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
COPYRIGHT 2004 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1USA
Date:Aug 3, 2004
Words:900
Previous Article:Zacks Buy List Highlights: Cummins, MeadWestvaco, Chico's FAS, and Royal Caribbean.
Next Article:J. Ray McDermott Completes Front Runner Spar Project.
Topics:


Related Articles
Schaeffer's Midday Options Update Features Palm, QUALCOMM, Harley-Davidson, CIENA.
Street Chatter From SIR Highlights the Following Stocks: Ford Motor, Kmart Holding Corp., and Neoware Systems.
Zacks.com Announces That Bernie Schaeffer Highlights Options for the Following Stocks: ChevronTexaco, Ford Motor, Best Buy, Pfizer, and...
Schaeffer's Street Chatter Highlights the Following Stocks: Harley-Davidson, IPIX Corp., and LSI Logic.
Zacks.com Announces That Bernie Schaeffer Highlights the Following Stocks: YUM! Brands, Kmart Holding Corporation, and Utstarcom.
Schaeffer's Street Chatter Highlights the Following Stocks: Harley-Davidson, Netflix and Research in Motion Limited.
Schaeffer's Market Observation Features Comcast, GlaxoSmithKline, and Harley-Davidson.
Schaeffer's Daily Market Blog Features Motorola, Research in Motion Limited, Questar, Kmart Holding, and Yahoo!
Schaeffer's Market Observation Features TASER International, Wal-Mart Stores and SAP AG.
Schaeffer's Midday Options Update Features Foundry Networks, McDonald's, American International Group, Harley-Davidson, and Wal-Mart Stores.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters