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Politics : Idea Of The Day

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To: IQBAL LATIF who wrote (33884)	10/1/2000 11:35:52 AM
From: IQBAL LATIF	Read Replies (1) of 50167

<<Option Expert Bets AT&T Will Drop Further (T) Shares of AT&T (T) lost 52% since a late-March 2000 high, and Bernie Schaeffer advises buying puts to bet on more downside ahead. Schaeffer notes that Ma Bell's stock has been under pressure from both its declining 10-week and 20-week moving averages. In fact, the 20-week average "firmly rejected" the stock this week, sending shares to their lowest level in three years. The equity has lagged far behind the broader market; AT&T's performance vs. the S&P 500 is at an all-time low. But option players are betting that AT&T has hit bottom; short interest fell 55% in the past two months. "This declining pessimism in the face of a significant retreat has bearish implications," says the contrarian Schaeffer. Analyst sentiment adds fuel to Schaeffer's fire. 10 of 25 analysts covering AT&T rate it "strong buy" and six more rate it "buy." This makes shares vulnerable to downgrades, he says. On September 21, 2000, Schaeffer advised buying the January 35 put (TMG) on AT&T. For more on Bernie Schaeffer's advice see "Aggressive Portfolio," October 2000, The Option Advisor. Bernie Schaeffer provides practical option investing recommendations that are simple to understand and execute.>>

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