PremierInvestor.net Newsletter Tuesday 11-04-2003 section 1 of 2 Copyright 2003, All rights reserved. Redistribution in any form is strictly prohibited. The entire newsletter is best viewed in COURIER 10 for alignment ================================================================= In section one: Market Wrap: Good Day For A Walk Watch List: XMSR, JNJ, PHM, BWA and more! Market Sentiment: Layoffs Cast Doubt ================================================================= MARKET WRAP (view in courier font for table alignment) ================================================================= 11-04-2003 High Low Volume Advance/Decline DJIA 9838.83 - 19.60 9874.83 9819.86 1.75 bln 1693/1522 NASDAQ 1957.96 - 9.70 1971.38 1053.64 2.11 bln 1610/1582 S&P 100 521.38 - 2.63 524.01 520.43 Totals 3303/3104 S&P 500 1053.25 - 5.77 1059.02 1051.70 W5000 10271.46 - 45.70 10317.20 10257.98 RUS 2000 538.87 + 1.03 540.32 535.72 DJ TRANS 2941.56 + 0.80 2952.51 2930.74 VIX 16.55 + 0.00 16.78 16.45 VXO (VIX-O)17.42 + 0.33 17.74 17.11 VXN 25.69 + 0.31 25.96 25.46 Total Volume 4,129M Total UpVol 1,729M Total DnVol 2,319M 52wk Highs 954 52wk Lows 25 TRIN 1.83 NAZTRIN 1.18 PUT/CALL 0.61 ================================================================= =========== Market Wrap =========== Good Day For A Walk If you took the day off and went hiking, played some golf or maybe started some early Christmas shopping you were spared a great deal of boring trading. The markets wandered aimlessly for much of the day mostly in negative territory. The new highs from Monday were left behind today as the indexes digested the gains and pondered some negative economic news. Considering the Dow had been up for the last six days it was due for a rest. Dow Chart Nasdaq Chart The economic news started out positive with Retail Sales up +0.5% for last week. While it was positive it only retraced about half of the -0.9% drop in the prior week. Sales of Halloween merchandise was reported to be strong but sales of Fall merchandise was hurt by unseasonably warm weather in many areas. Retailers are not daunted and are widely expected to post the best holiday season since 1999. My bet is that competition is going to be fierce with the price slashing to start in the next two weeks. Odds are they will not be waiting for the Thanksgiving break to pass. The October Senior Loan Officer survey showed that the same number of banks that had reported decreases in commercial real estate loan demand in August were still seeing a drop in demand. Bankers also reported a decline in home mortgages for the first time in two years. Despite a decline in the standards required to get a loan the demand for mortgages has fallen substantially over the last three months. No real excitement here or anything we did not already know but there was a small pickup in general business borrowing. The worst news for the day was the Challenger Layoff Report which showed a jump of +125% in the number of layoffs since September. Announced layoffs rocketed to 171,874 from only 76,510 last month. This is more than twice as high as the average for the second and third quarters. This was the largest number since Oct-2002 at 176K and the next largest of Jan-2002 at 212K. The soaring layoffs are not expected to continue despite catching analysts off guard. With the Nonfarm Payroll report on Friday you would expect this to be a factor. However, today's report totals "announced layoffs" and not actual layoffs. These are layoffs that will occur over the next 3-6 months. This does not mean the Friday payroll report will not be negative but it does cast a shadow over the rest of the quarter. Layoffs soared in October last year as well. November saw 157K announced as well before December dropped to only -93k. Far from a trend but it was enough for analysts to cling to and enough to keep the markets from self destructing. I was amazed that the market did not collapse. This was very negative news and news that was not expected. The Dow was already at the lows of the day when it was announced and it dipped another -5 points and then began a rebound. I stared at the screen in disbelief as the Dow gained ground. The bullish sentiment is so extreme that the name bad news bulls fit very well today. Although the markets did not implode the bulls were not able to take them back to positive territory. The flipside was the bears were not able to take them down either. The markets simply traded in a very narrow range after 10:30 and on low volume until time expired. This should not be seen as a win by anybody but the bulls. Tuesday was slated to be a consolidation day at best even before the layoff report. With the Dow up +3% over just the last six days and at new highs there was ample reason for buyers to be passive and profit taking to be aggressive. It simply did not happen. The A/D was flat at 3303:3104 with the edge in favor of the advancers. Declining volume did beat out advancing on the strength of a few high profile losers. RHAT, FHCC, MCDTA, HEPH, PTN, CYCL, PMACA and FIC topped the list with SUNW the winner with over 86 million shares traded followed closely by LU with 84 million shares and a loss of 12 cents. Considering SUNW was up +25% over the prior three days and LU up +41% over the last two weeks a little profit taking should be expected. I am chalking up Tuesday in the bullish column due to the lack of any real profit taking on very negative economic news. However, Wednesday might be a different story. The market felt heavy all day even though there was no drop. After the close today PCLN cut its outlook and warned that demand for airline tickets began to fall in September and that weakness had continued into October. PCLN cut profit forecasts for the 4Q to between 2 cents and 8 cents. The previous analyst view was 8-12 cents. PCLN said the drop would have been worse were it not for some new offerings of hotel rooms, rental cars and some retail products. The bad news was seen as the drop in airline demand over the last two months that seems to be confirming the drop in consumer spending we saw last week. The drop in September was initially ignored as 9/11 event risk but when it continued into October that caused additional concern. PCLN was down -$7 in after hours to 22.50. Southwest Airlines also announced after the close it was shutting down three reservation centers and 1900 workers would be displaced. Adding to our event risk for Wednesday is an appearance before the Senate Banking Committee by Greenspan. He will be grilled about interest rates and the economic recovery. As if this is not enough he will speak on Thursday morning to a group in Boca Raton on "New Developments in the Economy". This speech will be watched very close for signs of position hedging. Currently the Fed Funds futures are not predicting any rate increases until a 25 point hike in May-2004. One reason for no rate hike not quoted in print is the huge borrowing requirements by the government. On Wednesday there is expected to be another $60 billion in various denominations of notes. With the deficit growing daily and several hundred billion in notes to be sold over the next few months there is the implied need to keep rates down until as much of the deficit funding is over as possible. While the "official" interest rate has no direct bearing on the note auctions it does help depress the general bond prices. The mutual fund scandal continues to overhang the markets but no real impact has been seen in equity prices. Officials today said that easily one half of all funds are guilty of allowing market timing and probably one third have allowed some version of late trading. Spitzer went on record as saying that "ALL" and he emphasized "ALL" fees collected by funds while any of these practices were in force "WOULD" be forfeited. Considering these inquiries are going back to 2000 in many cases this could be a huge amount of money. It is far too soon to try and decipher the end result of the investigations, amounts of money paid, what funds will be forced to do to raise this cash and how it will impact the market. The only thing we can be sure of is that it will impact the market if only to keep a cloud over it for the next couple months. Investors will pull money out of some funds and send it to others and the constant churn could keep stock prices from making any large gains. Economically Wednesday should not be a challenge. If the Layoff report today could not deter the bulls the reports on Wednesday should not either. We have Mortgage Applications, Factory Orders and the ISM Services index. We already know mortgage applications are weak so any surprise should be to the upside. ISM Services has been leading the ISM Manufacturing and the estimate is to remain flat so that should be an easy number. The Factory Orders were down -0.8% last month and the estimates are for an increase of +0.6%. Any number over zero should be accepted and ignored. The Greenspan appearance will get more attention than the reports but odds are good the head cheerleader will be in top form. There is always the potential for a slip of the lip but those odds are slim. The general consensus of opinion still appears to be we are still going higher before serious profit taking appears. This is likely the thought process that will prevail but there is a growing contingent that believe otherwise. There were several major analyst firms making dire predictions on stock TV today. "Hard drop by Nov-21st" and "down December" were a couple of the high profile claims. Everybody is welcome to their opinion and everyone has at least one. The earnings estimates for the 4Q have been remarkably quiet. The prognosticators appear to be still crunching numbers and nobody wants to be the first to go public with their results. Despite the increase in the semiconductor sector the outlook for the 4Q is still cloudy. The outlook for the 1Q is even more cloudy and that is when the worry will start building about Fed rate hikes. Once we pass 1/1/2004 the focus will be rates. Once the January earnings cycle has a couple weeks under its belt the investing climate is likely to change drastically. Why is that a worry for us now? Because markets are forward looking by 3-6 months. That 3-6 month window from here is Feb-Apr and that puts the interest rates firmly into focus. The thought process remains that we should move higher this week but the future discounting process may limit any gains. Dow 10500-11000 were being mentioned as targets a lot over the last couple weeks and those numbers are slowly being lowered to 10000-10200. Where we will actually end up is anybody's guess. With the Nonfarm Payrolls on Friday we could continue to wander until that number is out. The estimate is for a gain of 50,000 jobs. While the US markets did not react negatively to the Layoff report the Asian markets did. The Nikkei opened down -108 points and pushed our futures a little farther into negative territory. Still a lot of darkness before the open and far to soon to draw any conclusions. Technically the Dow is holding above support at 9800 and it is still at the high end of the recent 9600-9800 range. There has not been any real weakness appear and we could easily give up a couple hundred points with no harm done. The Nasdaq is also holding at the highs over 1950 and has plenty of support above 1900. It will take a significant change of sentiment to cause any serious damage to either of these indexes. The VXO is still flashing red in the low 17s but nobody appears to be taking notice. We have not seen any obvious changes in the markets despite the extreme levels. November and December are the two best months in normal markets so there is a lot of momentum in the form of historical sentiment behind us. Whether it will be enough to power us much higher is too soon to tell. Enter Very Passively, Exit Very Aggressively! Jim Brown ================================================================== WATCH LIST ================================================================== The PremierInvestor.net watch list is not designed to be read as full fledged stock picks. Rather we would prefer to offer it as an extra tool in today's investor toolbox. Think of it as a radar screen with your own radar operator pointing out interesting developments, technical patterns or potential plays that you may or may not have seen on your own. Due to time constraints we do glance at the news but rarely do we have time to fully read pertinent news stories, due background research and other necessary screens that investors should do before making a decision. A common exercise is to read the entry, glance at the sector and other stocks in that industry and then compare what's happening in the stock to what's happening in the broader market indices. We hope you enjoy the Watch List and that it proves to be a useful tool for your own trading success. STOCKS WORTH WATCHING --------------------------------- XM Satellite Radio - XMSR - close: 21.38 change: +1.45 WHAT TO WATCH: XMSR has been a favorite of the bulls over the past several months, ever since breaking out of its solid base. The stock crossed another major milestone today, clearing the $21 resistance and moving to its best levels since late 2000. Entries in the $20-21 area look favorable for a continued rally up to next major resistance at $25. --- Johnson and Johnson - JNJ - close: 49.15 change: -0.63 WHAT TO WATCH: Apparently JNJ investors haven't taken notice of the strength in the broad market, as the stock has been in a persistent downtrend since April. The $49 level has been holding JNJ up since late August and if it breaks, then we ought to see a decline to next strong support at $45. Trigger entries on a break of $49 and use a stop of $51.25, just over the intraday highs of the past several weeks. --- Pulte Homes, Inc. - PHM - close: 89.25 change: +0.75 WHAT TO WATCH: There seems to be no end to the upside for the Housing sector, and PHM is just one of several that continue charging to new all-time highs. Tuesday's session presented yet another breakout and aggressive entry for those willing to chase strength higher. This is definitely an aggressive play given the large rise already, but one that may suit those nimble enough to get out once the music stops. Look for an entry near current levels and look for a run to the $100 level. --- Borg Warner, Inc. - BWA - close: 80.98 change: +1.19 WHAT TO WATCH: Bullish channels seem to be the rule, rather than the exception in this market and BWA is no exception, having ridden its own rising channel up from $45 to above $80 since the March lows. The stock is breaking out to new highs again today and it looks like higher is the direction of least resistance. Use a pullback near the $79-80 level for entry and look for $85- 90 in the weeks ahead. =================== On the RADAR Screen =================== LENS $13.90 - Proof that the rally is broad-based, even this photography stock is breaking out to new multi-year highs. Momentum entries near current levels could work nicely into the next area of congestion at $16-17, although the better approach would likely be to snag a pullback to what should be strong support near $12.25. MRK $43.94 - We featured MRK in this space over the weekend and it still looks compelling to us, as it continues to just work its way lower. Today's drop puts the Pharmaceutical stock at its worst closing level in over a year and next up is major support in the $39-40 area. CCMP $54.07 - Definitely not participating in the overall Semiconductor rally, CCMP is once again showing significant relative weakness. On the last decline the 200-dma provided support. But if it gives way this time, then look for a swift decline to next support near $45. =============================== Market Sentiment =============================== Layoffs Cast Doubt - J. Brown The big event today certainly wasn't the market's movement. All the major averages traded in very narrow ranges and the DJIA and the S&P 500 both ended a six-day winning streak. No, the big news today was the Challenger Gray & Christmas corporate layoff report. Planned corporate layoffs soared 125 percent after three months of encouraging declines. Suddenly investors began to doubt the expectation that Friday's employment report would be slightly positive and a continuation of the last jobs report. Despite the negative surprise the markets failed to move. It was a game of chicken with the bulls and bears struggling to see who would blink first. Considering that the markets were so overbought it was not a surprise to see weak hands take some money off the table. Even so the selling was muted. Most sector indices did close in the red but only marginally so. Continuing to weigh on the retail investor's confidence is the growing mutual fund scandal. Yesterday it claimed Putnam's CEO. Today it claimed several employees from Prudential whom the SEC is pressing fraud charges. I guess it's possible that from a contrarian point of view the retail investor might see these headlines and think, "ah, finally the government is doing something... my money should be safer now." But I think that may be a stretch of the imagination. The volatility indices remain low and will continue to undermine the confidence in any future gains until we see a significant pull back. ----------------------------------------------------------------- Market Averages DJIA ($INDU) 52-week High: 9896 52-week Low : 7197 Current : 9838 Moving Averages: (Simple) 10-dma: 9720 50-dma: 9584 200-dma: 8840 S&P 500 ($SPX) 52-week High: 1061 52-week Low : 768 Current : 1053 Moving Averages: (Simple) 10-dma: 1042 50-dma: 1028 200-dma: 948 Nasdaq-100 ($NDX) 52-week High: 1445 52-week Low : 795 Current : 1429 Moving Averages: (Simple) 10-dma: 1405 50-dma: 1375 200-dma: 1192 ----------------------------------------------------------------- Volatility indices continue to warn investors that the markets are vulnerable and near a potential top. CBOE Market Volatility Index (VIX) = 16.55 +0.00 CBOE Mkt Volatility old VIX (VXO) = 17.42 +0.33 Nasdaq Volatility Index (VXN) = 25.69 +0.31 ----------------------------------------------------------------- Put/Call Ratio Call Volume Put Volume Total 0.61 418,717 682,009 Equity Only 0.49 595,255 294,407 OEX 1.03 15,694 16,108 QQQ 3.29 12,426 40,856 ----------------------------------------------------------------- Bullish Percent Data Current Change Status NYSE 73.6 + 0 Bull Confirmed NASDAQ-100 76.0 - 1 Bear Correction Dow Indust. 80.0 + 0 Bull Correction S&P 500 80.0 + 0 Bull Confirmed S&P 100 79.0 + 0 Bull Correction Bullish percent measures the number of stocks in an index currently trading on a buy signal on their point and figure chart. Readings above 70 are considered overbought, and readings below 30 are considered oversold. Bull Confirmed - Aggressively long Bull Alert - Cautiously long Bull Correction - Pause or pullback in upward trend Bear Alert - Take defensive action if long Bear Confirmed - High risk if long, good conditions for shorting Bear Correction - Pause or rebound in downtrend ----------------------------------------------------------------- 5-dma: 1.11 10-dma: 1.12 21-dma: 1.08 55-dma: 1.09 Extreme readings above 1.5 are bullish, and readings below .85 are bearish. These signals don't occur often and tend be early, but when they do, they can signal significant market turning points. ----------------------------------------------------------------- Market Internals -NYSE- -NASDAQ- Advancers 1452 1526 Decliners 1385 1524 New Highs 443 483 New Lows 11 11 Up Volume 618M 960M Down Vol. 1065M 1063M Total Vol. 1703M 2062M M = millions ----------------------------------------------------------------- Commitments Of Traders Report: 10/28/03 Weekly COT report discloses positions held by small specs and commercial traders of index futures contracts at the Chicago Mercantile Exchange and Chicago Board of Trade. COT data can be found at www.cftc.gov. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs tend to be wrong. S&P 500 It's been a long week since last we looked at the COT data and we're still not seeing any big moves by the Commercial traders. The same holds true for small traders but they did reduce some of their short positions. Commercials Long Short Net % Of OI 10/07/03 390,232 402,964 (12,732) (1.6%) 10/14/03 391,972 410,299 (18,327) (2.3%) 10/21/03 394,176 411,246 (17,070) (2.1%) 10/28/03 391,596 412,498 (20,902) (2.6%) Most bearish reading of the year: (111,956) - 3/06/02 Most bullish reading of the year: 18,486 - 6/17/03 Small Traders Long Short Net % of OI 10/07/03 138,644 88,018 50,626 22.3% 10/14/03 133,940 86,418 47,522 21.6% 10/21/03 136,643 88,290 48,343 21.5% 10/28/03 137,791 76,791 61,000 28.4% Most bearish reading of the year: (1,657)- 5/27/03 Most bullish reading of the year: 114,510 - 3/26/02 E-MINI S&P 500 Hmm... we are seeing some movement in the e-minis. Commercials have upped their short positions by 24K contracts. Small Traders may have gotten the hint too. Short interest is up but the real change is the 45K drop in long contracts. Commercials Long Short Net % Of OI 10/07/03 212,273 225,377 (13,104) ( 3.0%) 10/14/03 221,897 233,066 (11,169) ( 2.5%) 10/21/03 226,985 236,906 ( 9,921) ( 2.2%) 10/28/03 220,171 260,644 (40,473) ( 8.4%) Most bearish reading of the year: (354,835) - 06/17/03 Most bullish reading of the year: 133,299 - 09/02/03 Small Traders Long Short Net % of OI 10/07/03 134,990 63,560 71,430 36.0% 10/14/03 161,208 59,213 101,995 46.3% 10/21/03 168,236 56,564 111,672 49.7% 10/28/03 123,569 59,742 63,827 34.8% Most bearish reading of the year: (77,385) - 09/02/03 Most bullish reading of the year: 449,310 - 06/10/03 NASDAQ-100 This time it's the Small Traders making a move in the NDX futures. Long contracts are up nearly a third to more than 21K. Commercials are still comatose but the trend is growing slowly more bearish with a small bump in short positions. Commercials Long Short Net % of OI 10/07/03 33,253 40,861 ( 7,608) (10.3%) 10/14/03 34,639 41,880 ( 7,241) ( 9.5%) 10/21/03 36,314 43,305 ( 6,991) ( 8.8%) 10/28/03 36,168 46,272 (10,104) (12.3%) Most bearish reading of the year: (21,858) - 08/26/03 Most bullish reading of the year: 9,068 - 06/11/02 Small Traders Long Short Net % of OI 10/07/03 18,182 9,688 8,494 30.5% 10/14/03 16,822 9,046 7,776 30.1% 10/21/03 16,917 9,750 7,167 26.9% 10/28/03 21,640 8,830 12,810 42.0% Most bearish reading of the year: (10,769) - 06/11/02 Most bullish reading of the year: 19,088 - 01/21/02 DOW JONES INDUSTRIAL There is very little change here for the Small Trader but Commercial Traders have upped both their longs and their shorts. Commercials Long Short Net % of OI 10/07/03 16,277 9,528 6,749 26.2% 10/14/03 16,595 9,433 7,162 27.5% 10/21/03 16,876 9,037 7,839 30.3% 10/28/03 20,504 11,366 9,138 28.7% Most bearish reading of the year: (8,322) - 1/16/01 Most bullish reading of the year: 15,135 - 10/16/01 Small Traders Long Short Net % of OI 10/07/03 7,392 7,910 ( 518) ( 3.4%) 10/14/03 6,427 8,495 (2,068) (13.9%) 10/21/03 5,392 8,842 (3,450) (23.1%) 10/28/03 5,295 8,864 (3,569) (25.2%) Most bearish reading of the year: (8,777) - 10/12/01 Most bullish reading of the year: 8,523 - 8/26/03 ----------------------------------------------------------------- ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. 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PremierInvestor.net Newsletter Tuesday 11-04-2003 section 2 of 2 Copyright ) 2003, All rights reserved. Redistribution in any form is strictly prohibited. The entire newsletter is best viewed in COURIER 10 for alignment ================================================================= Play of the Day: Support Becomes Resistance Stock Split Announcements: IMDC, CLE, DIOD 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) ================================================================= Play-of-the-Day ( bearish ) =============== AT&T - T - close: 18.80 change: -0.07 stop: 20.76 Company Description: AT&T (www.att.com) is among the premier voice and data communications companies in the world, serving businesses, consumers, and government. The company runs one of the most sophisticated communications networks in the United States, backed by the research and development capabilities of AT&T Labs. A leading supplier of data, Internet and managed services for the public and private sectors, AT&T offers outsourcing and consulting to large businesses and government. The company is a market leader in local, long distance and Internet services, as well as transaction-based services like prepaid cards, collect calling and directory assistance. With approximately $37 billion of revenue, AT&T has about 40 million residential customers and 4 million business customers, who depend on AT&T for high-quality communications. AT&T has garnered several awards for outstanding performance and customer service. (Source: Company Press Release) Why we like it: On a day when the North American Telecommunications Index $XTC.X gained 0.22 percent, T slipped lower on volume about a third higher than average. Although T bounced from light support near $18.30, it bounced too late. By then it had created a new double- bottom breakdown, with a downside objective of $15.50. That may not be the final downside target as T has of course not yet reversed into an "X" column. We expect some bounces along the way, but that new P&F downside target verifies our supposition that $16.00 is a workable target for this play. We're not sure that T is ready for that first bounce, as MACD lines separated and turned down, and stochastics and RSI remain headed down. If T does bounce, however, new positions could be added on bounces and rollovers from anywhere below the 200-dma. New positions could also be added on a move below Friday's low, but those positions would have little cushion when the inevitable bounce occurs. Why This is our Play of the Day As T continues to ride its 6-week descending channel lower, the stock is finding new resistance just over $19, a level that had formerly been viewed as support. Failed rebounds near the top of the falling channel should be used for attractive entries into the play, as the stock appears headed for the $17 level. Keep in mind that this will not be a quick play, but it should be a steady mover, with the descending channel apparently in control. Maintain stops at $20.76. Annotated Chart of T: Picked on October 29th at $19.07 Change since picked -0.27 Earnings Date 1/20/04 (unconfirmed) Average Daily Volume = 5.61 mln ================================================================= Stock Split Announcements ================================================================= IMDC augments stock with a 3-for-2 stock split Late Monday evening about 8:00 PM ET, Inamed Corporation (NASDAQ:IMDC) announced that its Board of Directors has approved a 3-for-2 stock split of its common shares. The payable date for the stock split is set for December 15th, 2003 to shareholders on record December 1st. Fractional shares will be paid in cash based upon the closing price of IMDC on December 15th. After the stock split, IMDC will have approximately 35 million shares outstanding. This is IMDC's first stock split since being listed on the NASDAQ in 1986. About the company: Inamed (Nasdaq:IMDC - News) is a global healthcare company with over 25 years of experience developing, manufacturing and marketing innovative, high-quality, science-based products. These products include breast implants for aesthetic augmentation and for reconstructive surgery; a range of dermal products to treat facial wrinkles; and minimally invasive devices for obesity intervention, including the LAP-BAND. System for morbid obesity. The Company's web site is www.inamed.com. (Source: Company Press Release) --- Claire's accessorizes shares with a 2-for-1 stock split and dividend increase. Before today's trading session, Claire's Stores Inc. (NYSE:CLE) announced that its Board of Directors has approved a 2-for-1 stock split of its common shares, and a 100% increase in CLE's quarterly dividend. The payable date for the stock split and quarterly dividend is set for December 19th, 2003 to shareholders on record December 5th. After the stock split, CLE will have approximately 92.2 million common shares outstanding. CLE's last split was 3-for-2 in September of 1996. CLE announced that their stock dividend would remain at its current level rather than being adjusted down to reflect the stock split, thus doubling the dividend payout. About the company: Claire's Stores, Inc., is a leading international specialty retailer offering value-priced costume jewelry and accessories to fashion-aware tweens, teens and young adults through its two store concepts: Claire's (North America and Europe) and Icing by Claire's. As of October 4, 2003, Claire's Stores, Inc. operated approximately 2,850 stores in the United States, the Caribbean, Puerto Rico, Canada, the United Kingdom, Ireland, Switzerland, Austria, Germany and France. Claire's Stores, Inc. also operates through its subsidiary Claire's Nippon, Co., Ltd., over 120 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. (fka JUSCO, Co. Ltd.). (Source: Company Press Release) --- DIOD declares 3-for-2 stock split Before today's trading session, Diodes Inc. (NASDAQ:DIOD) announced that its Board of Directors has approved a 3-for-2 stock split of its common shares. The payable date for the stock split is set for November 25th, 2003 to shareholders on record November 14th. Fractional shares will be paid in cash based upon the closing price of DIOD on November 25th. After the stock split, DIOD will have approximately 12.9 million shares outstanding. DIOD last split 3- for-2 in July 2000. About the company: Diodes Incorporated is a leading manufacturer and supplier of high-quality discrete semiconductor products, primarily to the communications, computing, industrial, consumer electronics and automotive markets. The Company operates three Far East subsidiaries, Diodes-China (QS-9000 and ISO-14001 certified) in Shanghai, Diodes-Taiwan (ISO-9000 certified) in Taipei, and Diodes-Hong Kong. (Source: Company Press Release) ================== 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 JCI Johnson Controls 110.30 +1.95 PHM Pulte Homes 89.25 +0.75 BXP Boston Properties 45.79 +0.99 CYN City National Corp 61.84 +0.93 BWA Borg Warner Inc 80.98 +1.19 ENH Endurance Specialty 30.60 +0.70 --------------------------------------- Breakout to Upside (Stocks $5 to $20) --------------------------------------- NOVL Novell Inc 7.33 +1.28 IVAN Ivanhoe Energy Inc 6.66 +1.40 HILL Dot Hill Systems 16.25 +1.87 ESST ESS Technologies 17.06 +2.06 HELX Helix Technology 19.85 +1.05 ISSI Integrated Silicon 16.91 +1.67 --------------------------------------- Breakout to Upside (Stocks over $20) --------------------------------------- TYC Tyco Intl Ltd 22.50 +1.48 G Gillette Co 34.15 +1.65 RTP Rio Tinto Plc (ADR) 100.27 +1.16 EMR Emerson Electric 59.33 +1.69 PD Phelps Dodge 64.10 +2.00 JBL Jabil Circuit 30.11 +1.60 FCX Freeport Mcmoran 41.05 +2.32 ------------------------------------------- Breakout to Downside (Stocks over $20) ------------------------------------------- BJS BJ Services 30.90 -1.18 FIC Fair Isaac Inc 56.48 -7.50 CTCO Commonwealth Telecom 37.95 -3.69 SSYS Stratasys Inc 42.86 -4.69 ----------------------------------------- Recently Overbought With Bearish Signals (Stocks over $20) ------------------------------------------- ACL Alcon Inc 53.01 -1.69 NVR NVR Inc 486.50 -13.28 RJF Raymond James Financial 40.00 -1.20 BCR C.R.Bard 78.50 -1.10 ================================================================= To stop receiving this PremierInvestor.net Newsletter, send email to Contact Support ================================================================= DISCLAIMER ================================================================= This newsletter is a publication dedicated to the education of stock traders. The newsletter is an information service only. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. The newsletter picks are not to be considered a recommendation of any stock but an information resource to aid the investor in making an informed decision regarding trading in stocks. It is possible at this or some subsequent date, the editors and staff of PremierInvestor.net may own, buy or sell securities presented. All investors should consult a qualified professional before trading in any security. The information provided has been obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. PremierInvestor.net staff makes every effort to provide timely information to its subscribers but cannot guarantee specific delivery times due to factors beyond our control. 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