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Daily Newsletter, Wednesday, 09/26/2001

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PremierInvestor.net Newsletter              Wednesday 09-26-2001
                                                  section 1 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
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In section one:

Market Wrap: Risk still present in technology 
Market Sentiment: Snap
Play-of-the-Day: Kinder Morgan, Inc - KMI (Bearish)
Watch List:.WCOM, GE, FRX, RFMD, TYC, SLR, TMPW

-----------------------------------------------------------------
U.S. Market Numbers
-----------------------------------------------------------------
MARKET WRAP  (view in courier font for table alignment)
-----------------------------------------------------------------
       9-26-2001           High     Low     Volume Advance/Decline
DJIA     8567.39 - 92.58  8718.16  8527.05  1.78 bln   1491/1672
NASDAQ   1464.04 - 37.60  1516.12  1458.34  1.76 bln   1447/2419
S&P 100   516.29 -  1.63   522.45   513.29   Totals    2938/4091
S&P 500  1007.04 -  5.23  1020.29  1002.62
RUS 2000  389.79 -  6.39   397.66   389.11
DJ TRANS 2076.79 - 16.01  2118.36  2072.70
VIX        39.26 +  0.39    39.71    37.95
VXN        65.94 -  1.63    68.67    65.65
TRIN        1.59
-----------------------------------------------------------------

===========
Market Wrap
===========

Risk still present in technology
by Jeff Bailey

There's still some downside risk an many technology sectors and 
today's 7.8% decline in the Semiconductor Index (SOX.X) is proof 
of that.  The September 21st low of 363.52 could be tested soon 
and a break of that level may leave some wondering where support 
will be found.  Our retracement bracket gives hint that the 323 
level could come into play.

Semiconductor Index Chart - last nine months





The Semiconductor Index (SOX.) has given back the bulk of 
Monday's rally and yesterday's move to the 412 level looks to 
have been sold with some conviction.  Any further follow through 
to the downside could have any remaining bulls in the group 
waiting to see what happens at the 323 level.  That 323 level (or 
close to it) will now become the bearish trader's target and a 
level where any bulls need to be assessing their risk.

NASDAQ 1,455 could be key level near-term

With the Semiconductor Index (SOX.X) looking vulnerable to a 
decline, "tech psychology" could be damaged further and put 
pressure on the NASDAQ Composite.  Fitted retracement in the 
NASDAQ gives hint that 1,455 could become an action point 
tomorrow for some sell/hedge programs for many market makers.

NASDAQ Composite Index - last nine months





The NASDAQ Composite (COMPX) held tough today, but a break of the 
1,455 level could test a bulls conviction.  While the recent 
trading near 1,400 last Friday does tie into the October 8, 1998 
low of 1,357 it's difficult to say that the NASDAQ has firm 
support at 1,357.  

As oversold as many market indicators are, investor psychology is 
poor.  Trader and investors should remain relatively defensive 
and be willing to hedge some recently added bullish positions 
until we get some type of breathing room from an upside move.

NASDAQ Composite Bullish % Chart - 2% scale





While the bullish % reading for the NASDAQ Composite ($BPCOMPQ) 
is oversold, with just 22.3% of the stocks in this index 
currently showing a buy signal on their charts, we haven't seen 
some of the more extreme levels of oversold conditions witnessed 
back in September of 1998 (18%) or April of 2000 (20%).  Until we 
get some type of reversal higher (currently it would take a 
reading of 28% bullish) and into a column of X's, bullish 
investors/traders need to remain cautious.  

Bearish traders need to be cautious too and not get carried away 
with things or get too aggressive with their bearish trades.  
Many of the bearish trades we are profiling on PremierMarkets.com 
have tight stops associated with them.  We don't want subscribers 
to get caught up in any type of dramatic short-covering rally.  
Current strategy for shorting stocks is to try and identify 
stocks that have rallied on rather light volume and where a break 
below a previous low poses the question, "how low will it go?"  
It's these kinds of stocks where traders can establish a short 
position, then move their stops lower (if short/put) as the trade 
works in their favor.  By systematically lowering your stops, 
you're reducing risk in the trade and getting closer to the point 
of locking in a gain.


================
Market Sentiment
================

Snap
by Jeffrey Canavan

Stocks snapped a two-day winning streak under the weight of 
profit warnings, downgrades and margin call rumors.  

The Dow avoided a triple digit loss, but still closed down 92 
points.  On a percentage basis the S&P 500's 0.51% drop was the 
best amongst the major indices, and the Nasdaq's 2.50% drop was 
the worst.

Micron Weekly Chart





Part of the Nasdaq's woes can be attributed to awful earnings, or 
lack thereof, from Micron Technology (MU).  The chipmaker 
reported a loss of $575 million compared to a profit of $726 
million a year ago.  $289 million of the loss was due to 
inventory write-downs, and an additional $118 went to a write 
down of its equity investment in Interland Inc.  The 96 cents per 
share loss was well below analysts' expectations of 34 cents, 
excluding write downs, and the 18% drop in stock price reflected 
investors' disappointment with a 79% drop in sales.  The company 
declined to give future guidance, but Micron's future stock price 
could be $10 if support at $17 is broken.

Semiconductor Index Daily Chart





Micron's bleak outlook had semiconductor stocks reeling, and the 
Semiconductor Index lost 7.89%.  Yesterday it looked like the SOX 
was trying forming a small base, but today's drop could have the 
sector being one of the first to test last week's low.  Should 
that fail to hold, support looks like 345.

IBM Daily Chart





A downgrade from Goldman Sachs helped to spark a $3.15 decline in 
IBM, making it the biggest loser on the Dow.  Analyst Laura 
Conigliaro noted that the effects of the September 11th attacks 
appear sizable, and could effect corporate spending on IBM 
products.  She also lowered estimates for Sun and EMC.  If that 
is indeed the case, IBM stock might need to rely on support at 
$90, or even $80, if sales do continue to decline.  

Healthcare, drug and gold stocks found some buyers as investors 
look for something a little more defensive, and bank stocks 
attracted interest, perhaps due to low interest rates.   

Tomorrow the markets will have to digest another batch of 
earnings warnings from Sonus Networks (SONS), Allegiance Telecom 
(ALGX), Guitar Center (GTRC), and Speedway Motorsports (TRK).  
Not quite the magnitude of Micron, but could nevertheless be a 
drag on investor psychology.  

We also get a full plate of economic data.  Durable goods and 
initial jobless claims are released before the bell tomorrow, and 
new home sales and the Help-Wanted Index is released at 10:00 
a.m. 

*************************Sector Watch****************************

            Support                Close              Resistance
DJIA       | 8,062  |      |      | 8567 |      |      |   9,110|
NASD       | 1,385  |      | 1464 |      |      |      |   1,670|
S&P 500    |   944  |      |      | 1007 |      |      |   1,100|
Rus 2000   |   373  |      |  390 |      |      |      |     420|
Semis      |   363  |  371 |      |      |      |      |     455|
Biotech    |   405  |      |  424 |      |      |      |     475|
Internet   |    70  |      |   81 |      |      |      |     105|
Networking |   210  |  214 |      |      |      |      |     260|
Software   |   100  |      |  117 |      |      |      |     159|
Banking    |   550  |      |      |      |  585 |      |     595|
Retail     |   695  |      |      |      |  743 |      |     765|
Drugs      |   353  |      |      |      |      |  374 |     377|

Support Alerts: Internets
Resistance Alerts:
            ____________________________________________________
           |   Long    |   Short   |   Strength    | Relative   |
           |   Term    |   Term    |     of        | Strength   |
           |   Trend   |   Trend   |   LT Trend    | vs S&P 500 |
DJIA       |  Bearish  |  Bearish  |    Strong     |  Negative  |
NASD       |  Bearish  |  Bearish  |    Strong     |  Negative  |
S&P 500    |  Bearish  |  Bearish  |    Strong     |    --      |
Rus 2000   |  Bearish  |  Bearish  |    Strong     |  Negative  |
Semis      |  Bearish  |  Bearish  |    Strong     |  Negative  |
Biotech    |  Bearish  |  Bearish  |    Strong     |  Negative  |
Internet   |  Bearish  |  Bearish  |    Strong     |  Negative  |
Networking |  Bearish  |  Bearish  |    Strong     |  Negative  |
Software   |  Bearish  |  Bearish  |    Strong     |  Negative  |
Banking    |  Bearish  |  Bearish  |    Strong     |  Positive  |
Retail     |  Bearish  |  Bearish  |    Strong     |  Neutral   |
Drugs      |  Bearish  |  Bearish  |    Strong     |  Positive  |

            _____________________________________
           | Short-Term  |          | Point and |
           | Overbought/ | Momentum |   Figure  |
           | Oversold    |          |   Signal  |
DJIA       | Oversold    |  Falling |   Sell    |
NASD       | Oversold    |  Falling |   Sell    |
S&P 500    | Oversold    |  Falling |   Sell    |
Rus 2000   | Oversold    |  Falling |   Sell    |
Semis      | Oversold    |  Falling |   Sell    |
Biotech    | Oversold    |  Falling |   Buy     |
Internet   | Oversold    |  Flat    |   Sell    |
Networking | Oversold    |  Falling |   Sell    |
Software   | Oversold    |  Falling |   Buy     |
Banking    | AP OB       |  Falling |   Sell    |
Retail     | AP OB       |turning up|   Buy     |
Drugs      | Oversold    |turning up|   Sell    |
             AP OB = Approaching Overbought
             AP OS = Approaching Oversold

*****************************************************************


=========================
Play-of-the-Day (Bearish)
=========================

Kinder Morgan, Inc - KMI - close: $48.35 change: -1.65 Stop: $51.00 NEW

Original Comments When Selected September 25th:

Company Description:
Kinder Morgan is a big player in natural gas.  It was formed in 
1999 through a merger of KN Energy and Kinder Morgan.  KMI operates 
more than 30,000 mile of natural gas pipelines throughout the US 
and also sells gas directly to 225,000 Midwest customers.  It is 
getting into the power generation business by building natural gas 
power plants along its pipelines.  Through a subsidiary Kinder also 
transports coal and coke through 30 company operated bulk 
terminals.

Fundamentals: 
Last year, the company earned $1.28 per share on sales of $2.7 
billion.  This year, analysts expect the firm to earn $1.88 per 
share and $2.48 in 2002.  The earnings estimate trend has been 
mixed with one brokerage raising their estimate in the last 30-day 
and another lowering theirs.  The company has a forward 2001 P/E of 
26, which is significantly higher than the industry average P/E of 
12.  Although the company has strong cash flow of $2.57 per share, 
it is lower than the industry average of $3.66.

Why We Like It:
Kinder Morgan is a well-managed company with good fundamentals.  
However, as long as the price of natural gas keeps going lower, KMI 
shares are going to keep getting hammered.  Since the beginning of 
the year, the December Natural Gas futures have dropped from a high 
of $6.10 to Tuesday's $2.69 close.  KMI shares after banging up 
against $60 several times in the March, April, May timeframes have 
weakened considerably.  On September 19th the shares plunged 
through their 50 and 200-day moving averages.  They then attempted 
to consolidate for a few trading sessions before falling off the 
ledge with a $1.37 one-day loss on Tuesday.  Of particular 
significance, Tuesday's close was the lowest since late March.  
Traders on Tuesday evidently felt the slide will continue, an 
intraday chart of the shares shows that after an initial 44-cents 
gain following the opening bell to $51.81, longs displayed nary a 
pulse for the remainder of the trading session.  Volume is 
confirming the bearish momentum as 1.3 million shares were traded 
on Tuesday, well in excess of the 620k daily average.  Going 
forward, the shares will likely test the next levels of downside 
support at $47.25 and $43.00.  We will start this play with a 
$52.75 stop, which is just above recent session highs.   

Updated Comments:
No change in our original outlook, and OPEC's decision not to cut 
production targets are bound to have a depressing effect on the 
prices of all energy commodities.  December natural gas futures 
(NG01z) dropped another 6-cents today to $2.63.

Picked on September 25th at $50.00
Gain Since Picked:          + 1.65
Earnings Date                10/17 (Not Confirmed)





==========
Watch List
==========

WorldCom - WCOM - close: 14.77 change: +0.45

WHAT TO WATCH:   There was plenty of news on WCOM this Tuesday
after the company received approval for their bid to buy certain
assets from bankrupt ISP Rhythms NetConnections.  In other news,
at least one analyst believes WCOM is itself an acquisition target
and upgraded the company to a strong buy.  Looking at the chart
we see that WCOM has been extremely strong the last few sessions
and completely ignoring the Nasdaq's weakness yesterday and today.
If you're bullish on the stock you should be encouraged by the 
intraday dip today to 14.05 and the following bounce.  It was a
classic dip to support and bulls stepped in pushing the stock to
a 3.14% gain on Wednesday.  Another dip to $14 might make a good
entry point or waiting for the stock to close over very tough
resistance at $15 might be a good bet. However, if you're bearish
on the stock then the $3 plus move from its low of 11.50 just
a few days ago probably has you thinking this equity is way 
over extended.  If the stock rolls over at $15 again tomorrow
then shorts might put pressure on it and try to capitalize on any
move back down to $12 or $13.  Play with a tight stop over $15 but
beware of what occurred back in late July.  WCOM managed a close
over $15 to 15.21 and probably drew a lot of excitement from the
bulls.  However, the next it traded as high as 15.90 before falling
and closing at 14.25.  Hopefully, this will help you define your
stops if you choose to be bearish.




---

General Electric - GE - close: 35.48 change: +0.14

WHAT TO WATCH:  This behemoth of a company always attracts a lot
of attention and a lot of its been positive after the CEO's 
comments a few days ago reaffirming their earnings guidance.
This is certainly not something many companies can do these days
(reaffirm guidance that is.. unless it's down).  The stock has
seen some big moves with the intraday low just four days ago
at $28.50.  The last two days of trading has set resistance at
$36 and potential support at $34.75.  As one headline put it,
GE is the essential "buy America" stock.  They have their hands
in so many industries and are so diversified they are probably
one of the safest bets out there for a long-term portfolio (5 to
10 years or more).  However, on a more short-term time frame we
could see a bullish more back up to resistance at $39 (or $40)
but first we need to see the stock close over $36.  Aggressive
traders could try and target shoot into a long play near $35.
However, if you're bearish and believe the Dow will continue to 
slip (and it easily could) then GE may be forced down to stronger
support back around $31.  A close under $34.50 or $34.00 may be
the signal for a bearish play.  We probably would not set our 
stop more than a dollar or two away from our entry.




---

Forest Labs - FRX - close: 71.31 change: +2.42

WHAT TO WATCH:  Both bullish and bearish traders should keep 
their eyes on FRX.  The drug sector is typically seen as a
defensive play in times of uncertainty and we have seen the 
DRG index rise strongly over the last three sessions.  So 
strongly in fact that the index has retraced over 38.2% of
its recent downtrend (8/24/01 to 9/21/01 on a closing basis).
It looks like the DRG.X, currently at 374.30, has overhead
resistance at 380 to 385 and we would expect longs to do some
profit taking while bears turn on the shorting pressure.  In
similar fashion, FRX is quickly approaching overhead resistance
at 72.50 and again (stronger) at 75.00-76.00.  Nimble traders
can try and scalp any move up from here but we would be more
likely to consider a short if and when the stock rolled over.
On the bearish side, we would look for support at $70, at its
200-dma (near 67.50) and stronger at 65.00.




---

RF Micro Devices, Inc. - RFMD - close: 16.29 change: -3.52

WHAT TO WATCH:  Who or what do you believe?  Once again investors
are faced with strong dueling opinions from the brokerages on
their recommendations.  Some believe chip stocks are getting 
pretty cheap and valuations could prove tempting.  On the other
hand, we get bad news from the likes of MU and AMD and it sends
the SOX skidding.  RFMD dropped over 17% just today and after 
people were defending it a few days ago.  Now one brokerage is
hammering on Nokia whom RFMD is a big supplier.  RFMD had
seen strong support and $20 and should have seen more support
at $19.  As you can see shares didn't even pause on the way down
today.  However, we would expect some support at $15.  Here is
where the play begins.  Wait for the stock to get to $15.  If
you are bullish, look for a bounce, put a stop below $15 and
wait for shares to climb back to $19 or $20.  If you're bearish,
wait for shares to close under $15, put a stop above and see
if the bears can push RFMD back to its March support of $11 to
$10.




---

Tyco Intl - TYC - close: 44.18 change: -0.04

WHAT TO WATCH:  We're listing another big conglomerate that both
bullish and bearish traders should keep on their radar screens.
First, we've copied a business description from a company press
release for those not familiar with Tyco.  Tyco is the world's 
largest manufacturer and servicer of electrical and electronic 
components; the world's largest designer, manufacturer, installer 
and servicer of undersea telecommunications systems; the world's 
largest manufacturer, installer and provider of fire protection 
systems and electronic security services and the world's largest 
manufacturer of specialty valves. Tyco also holds strong leadership 
positions in medical device products, financing and leasing capital, 
plastics and adhesives. Tyco operates in more than 100 countries 
and had fiscal 2000 sales of $28.9 billion.  Looking at the chart
we can see that the stock suffered a huge drop in late August from
the low 50's to last Friday's intraday low of $39.24.  The last
three days has shown strong gains with higher lows but we see clear
resistance at $45.  Bullish traders can look for the stock to
close above $45 with an ultimate target of $50 again (given enough
time).  Bearish traders should look for the stock to rollover
at another attempt to breach $45 before considering a short play.
However, be aware the company recently reaffirmed earnings 
guidance for 2001 and 2002.  At $44, shares of TYC are trading at
less than 9 times 2002 earnings.  There is bound to be more 
buyers if the stock dips back to the $40-$41 area.




---

Solectron - SLR - close: 11.48 change: -0.02

WHAT TO WATCH:  Another electronics manufacturer is Solectron.
Shares have been hammered over the past several months as analyst
continued to see recessionary influences and lower demand.
Fortunately, for the bulls, it looks like the stock put in a 
hard bottom at the $10 level last week.  Shares have since rallied
to almost $12 before longs did some profit taking.  We normally
don't recommend shorting stocks under $20 and we're not going to
do so here.  However, if the Dow makes another big push down, SLR
could trade back to $10 again.  This would be an excellent entry
to go long with a tight stop below.  On the other hand, if SLR
can close above $12 we would consider it a potential long play
for a short-term move.  Overhead resistance at $13.50 should 
still allow for a 10% gain or more depending on your entry.




---

TMP Worldwide - TMPW - close: 29.36 change: -2.48

WHAT TO WATCH:  Most famous for its Monster.com website, TMPW
has seen a very steady decline turn into a full fledged rout.
The intraday low back on April 4th, 2001 was 27.50 and the stock
quickly rebounded last spring.  Today's intraday low was also
$27.50 but the stock looks weaker than it did back in March/April
and we could be looking at new lows soon.  If you're bullish,
and I don't know why you would be but then we haven't done a lot
of in-depth research for the watch list, then buying at the 
absolute bottom sounds very tempting.  One can easily place a 
stop below the 52 week low and wait it out.  Now if you are 
bearish then we can enjoy trading the trend.  With the stock
under $30 one could short TMPW here with a stop above $30 or
$32.50 based on your risk tolerance.  Or one could wait for a 
close under $27.50 before considering a short play.




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The Premier Investor Network.
Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter               Wednesday 09-26-2001
                                                   section 2 of 2
Copyright  2001, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================
To view this email newsletter in HTML format with imbedded
charts and graphs, click here:
http://www.PremierInvestor.net/htmlemail/3600_2.asp
=================================================================

In section two:

Split Trader
  Split Announcements: none
  New Plays: none
  Play Updates: none
  Closed Plays: none 

Net Bulls
  New Plays: Molex, Inc. -  MOLX (Bearish)
  Bullish Play Updates: none
  Bearish Play Updates: none
  Closed Plays: none

Stock Bottom / Active Trader
  New Plays: Eli Lilly and Company - LLY (Bearish) 
  Bullish Play Updates: Stop Updated
  Bearish Play Updates: See Kinder Morgan - KMI in Play-of-the-Day
  Closed Plays: none

Trading Ideas
  Value Plays With Bullish Signals
  Breakout to Upside (Stocks $5 to $20)
  Breakout to Upside (Stocks over $20)      
  Breakout to Downside (Stocks over $20)      
  Recently Overbought With Bearish Signals (Stocks over $20) 

==================================================================
Net Bulls (NB) section
==================================================================

============
NB New Plays
============

  ------------------------
  New Bearish (Short) Play
  ------------------------

Molex, Inc. -  MOLX - close: $28.08 change: -0.99 stop: $30.50

Company Description:
Molex is the world's second largest maker of electronic connection 
products including: electrical and fiber optic interconnection 
products and systems, switches, value-added assemblies and 
application tooling.  Molex serves original equipment manufacturers 
in industries that include automotive, computer, wireless, home 
appliance and home entertainment.  The company offers more than 
100,000 products.  These electrical and electronic devices include 
terminals, connectors, planer cables, cable assemblies, 
interconnection systems, fiber optic interconnection systems, 
backplanes, mechanical and electronic switches. 

Fundamentals: 
In the fiscal year ended June 2002, net income dropped 8-percent to 
$204 million, or $1.19 per share, on a 7-percent increase in sales 
to $2.37 billion.  In 2002 the company is projected to earn 92-
cents per share and $1.37 in 2003.  This gives the shares a forward 
2002 P/E of 27, which is inline with the industry average P/E of 
26.  Analysts earnings estimates have been stable with no revisions 
in the last 90-days from eight brokers providing coverage.
  
Why We Like It: 
Telecom and other tech equipment manufacturers enjoyed a brief 
respite from the bear market on Monday and Tuesday, but it appears 
the bears are back, refreshed and ready to maul.  We were looking 
for tech stocks that were in a well-entrenched down trend prior to 
Monday's rally (that was a long list), benefited from Monday's 
rally (i.e. has some room to drop) and had begun to fade (but not 
too much).  MOLX fit the bill perfectly.  Prior to Monday, the 
shares had been a loser in 11 of the previous 15 trading sessions 
dropping from the 8/27 close of $33.76 to $26.55 last Friday.  
Monday saw the shares gain $2.93, but the next two trading sessions 
saw losses of 38-cents on Tuesday and 99-cents.  A rising volume 
trend confirms the greater selling pressure with 624k shares traded 
during Monday's rally, jumping to 682k on Tuesday and 804k on 
Wednesday.  For comparison, a normal day is 493k shares traded.  
With a strong bear case in place, we anticipate the shares will 
soon test the $25.76 52-week low set on September 21st.  Our point 
and figure analysis produced a bearish price target of $23.  We 
will initiate this bearish selection with a $30.50 stop, which is 
just above Tuesday's $30.24 session high.

  
Picked on September 26th at $28.08
Earnings Date                 10/18 (Not Confirmed)





==================================================================
Stock Bottom / Active Trader (AT) section
==================================================================

============
AT New Plays
============

  -------------------------
  New Bearish (Short) Plays
  -------------------------

Eli Lilly and Company - LLY - close: $78.55 change: +1.35 stop: $80.00

Company Description:
The Indianapolis-based pharmaceutical giant is best known for its 
antidepressant Prozac and pre-menstrual dysphoric disorder 
treatment Sarafem.  Together, they account for almost 25-percent of 
total company sales. Other drugs include Gemzar for pancreatic 
cancer, Humalog (insulin) and Zyprexa, a schizophrenia treatment 
also approved to treat bipolar disorder. In addition to 
neurological, oncological, and diabetes drugs, Eli Lilly also makes 
antibiotics, cardiovascular treatments, and animal health products.  
The company has a strong pipeline of over 40 candidates, including 
treatments for sepsis, cancer and diabetes. This is important, as 
the company has lost its patent protection for Prozac. Some 
estimates expect Prozac sales to drop 24-percent to $1.9 billion. 
The firm hopes the soon to be released impotence drug Cialis and 
osteoporosis treatment Forteo, combined with the growth of Zyprexa 
(up 36-percent this year), Gemzar (up 37-percent), and diabetes 
drug Actos (up 24-percent), can replace the income it will lose. 

Fundamentals: 
Last year, the company earned $2.65 per share on sales of $10.8 
billion.  This year, the firm is expected to earn $2.81 per share 
and $2.95 in 2002.  Within the last 90-days, 6 of the 27 brokers 
providing coverage have reduce 2001 estimates for earnings, none 
have raised estimates.  The company has a forward 2001 P/E of 28, 
consistent with the average industry P/E of 29.

Why We Like It: 
When investors are optimistic about Lilly's pipeline the stock goes 
up, when they are depressed about the loss of Prozac patent 
protection the stock goes down.  Although it is unusual to make a 
stock that gained $1.35 on Wednesday a bearish selection; there are 
strong indications the shares are topping out and ready to correct.  
After a prolonged drop from the $83.67 close on August 24th, the 
shares moved up sharply since opening at $72.01 last Friday.  This 
suggested the shares were over extended.  With them knocking 
against strong resistance in the $78-$80 range, we were looking for 
the first signs of weakness in bullish momentum.  That weakness may 
have become evident on the short-term 1-minute chart on Wednesday.  
After a gap opening and sharp climb from Tuesday's close of $77.20 
to Wednesday's $79.60 session high, the bulls faltered badly 
through to the $78.55 close.  The last time the shares failed to 
break through came on September 17th and 18th and was followed by 
the drop to $71.81 just a few days later.  Our short-term bearish 
target price is $74.00, with an outside shot at $68.  We are 
initiating this play with a tight $80.00 stop, which is just above 
Wednesday's session high.

Picked on September 26th at $78.55
Earnings Date                10/18 (Not Confirmed)





===============
AT Play Updates
===============

  ---------------------------
  Bullish (Long) Play Updates
  ---------------------------

Updated stop on Suiza Foods (SZA) to $61.50

  ----------------------------
  Bearish (Short) Play Updates
  ----------------------------

See Kinder Morgan - KMI in section 1 Play-of-the-Day


==================
  Trading Ideas 
==================

This section contains stocks that meet criteria which may make 
them of interest to long and short side traders.  These are not 
recommendations, nor have they been reviewed by PremierInvestor 
editors for investment potential.  However, each of them has 
technical and fundamental characteristics that make them worthy 
of further review by traders and investors looking for fresh ideas. 
New stocks will appear daily following the market close.  

  ---------------------------------
  Value Plays With Bullish Signals
  ---------------------------------

Ticker    Company Name              Close  Change
UBS       Ubs Ag Ord Shares         44.12  +0.75
RCL       Royal Carribbean Cruises  10.18  +0.58
BDN       Brandywine Realty Trust   20.50  +0.89
PHLY      Philadelphia Cons Hld Co  30.47  +0.52
GISX      Global Imaging Services   17.04  +1.64

  ---------------------------------------
   Breakout to Upside (Stocks $5 to $20)
  ---------------------------------------

Ticker    Company Name              Close  Change
TSN       Tyson Foods                9.99   +1.15
FCH       Felcor Lodging Trust      13.94   +1.04
ASA       Asa Ltd                   18.60   +1.50

  ---------------------------------------
   Breakout to Upside (Stocks over $20)
  ---------------------------------------

Ticker    Company Name              Close  Change
PFE       Pfizer                    38.55   +1.57
MMC       Marsh & McLennan          92.85   +4.19
V         Vivendi Ads               45.85   +1.50
UNH       Unitedhealth Group        65.60   +2.61
CCL       Carnaval Corp             21.91   +1.18

  -----------------------------------------
   Breakout to Downside (Stocks over $20)
 -------------------------------------------

Ticker    Company Name              Close  Change
TMB       Telemig Celular Particip  21.30   -1.81
EPG       El Paso Corp              38.90   -2.40
ENE       Enron Corp                25.15   -1.85
DUK       Duke Energy               36.57   -1.03
SWY       Safeway                   39.04   -1.95

  ------------------------------------------------------------
   Recently Overbought With Bearish Signals (Stocks over $20)
  -------------------------------------------------------------

Ticker    Company Name              Close  Change
none

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