please fill us in about HSAC and Charter comm? All I see is troubled #1 and #2 players (T and TWX) positioning Charter/HSAC for further advance up the cable ladder.
NEW PUT Play, 08/24/99
TWX - Time Warner Inc. $61.63 ?4.56 (-5.19 this wk)
Time Warner is a media and entertainment company with interests in filmed entertainment, television
production and broadcasting recorded music, cable television programming, magazine and book
publishing, direct marketing and cable television systems. This media giant includes Time Inc, Warner
Bros., Warner Music Group, Home Box Office, Time Warner Cable, Warner Books, and the
Book-of-the-Month Club (a top US book club company).
Time Warner has definitely seen better days. Since mid-July when the stock was at its prime around
$78, TNX has hardly found a floor to stand on. Currently trading below its 50 and 200-dma, the stock
continues gto get pummeled. The latest punch came today when Merrill Lynch analyst Jessica Reif
Cohen lowered her 1999 and 2000 earnings estimates on the entertainment giant. Cohen dropped her
1999 earnings view to 35 cents a share from 48 cents and her forecast for 2000 to 80 cents from 82
cents. The analyst attributed the earnings decrease to the company's music segment. In addition, she
sees "weakness from key international markets," including Germany, Brazil and Japan. For these
obvious reasons we have added TWX as one to watch, or that is one to watch sink lower. Even though
we do see the stock reaching new lows, watch for technical bounces and place the recommended stop
losses to avoid any change in sentiment.
BUY PUT SEP-65 TWX-UM OI=2411 at $4.50 SL=2.75
BUY PUT SEP-60*TWX-UL OI=6617 at $1.63 SL=0.75
Average Daily Volume = 2.3 mln |
