Schaeffer's Street Chatter Features Energy Conversion Devices, Newmont Mining, and Wal-Mart Stores
September 30, 2003 13:57
CINCINNATI--(BUSINESS WIRE)--Sept. 30, 2003--Today's Schaeffer's Street Chatter features Energy Conversion Devices (NASDAQ:ENER), Newmont Mining (NYSE:NEM), and Wal-Mart Stores (NYSE:WMT). A new daily feature available on SchaeffersResearch.com is Street Chatter. Every day, we'll focus on three stocks that are generating a lot of attention on Internet message boards. We hope this will effectively offer information on equities that are popular in the investing world and will be a beneficial resource for our readers. For additional information about this report or to have it delivered to you free via email every day click on the following link. Each new subscriber will receive a FREE copy of Bernie Schaeffer's Options 101 CD-ROM (a $49.95 value).
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Schaeffer's Street Chatter:
Energy Conversion Devices
Energy Conversion Devices (NASDAQ:ENER) manufactures rechargeable batteries and other power devices and is the subject of speculation and discussion today on the Motley Fool message boards. Yesterday, ENER officials said the company would be late in filing its annual revenue report with the Securities Exchange Commission and requested a 15-day extension. On the news, the shares plunged nearly 30 percent lower on heavy volume, violating their 20-day moving average and forcing their 10-day trendline to reverse lower. ENER is not popular among options players, with just under 3,000 open contracts across all call and put strikes in the front three-months' options series combined. Short sellers have taken an interest in the stock (and certainly benefited from yesterday's decline). There are more than 600,000 ENER shares sold short which, when compared to the slight volume on the security, amounts to a hefty short-interest ratio of over 13 days to cover.
Click the following link to see a Daily Chart of ENER Since August 2003 With 10-Day and 20-Day Moving Averages:
schaeffersresearch.com .
Newmont Mining
Gold concern Newmont Mining (NYSE:NEM) endured a downgrade this morning, as Prudential reduced its rating on the shares to an "underweight" from a "neutral." The stock is taking this in great stride, rising about half a percent despite the news. NEM has been contained within a monster uptrend since April, rallying about 50 percent over the past several months and receiving solid support from its 10-week moving average, upon which the equity is currently perched. In the very short-term, NEM has struggled with the 40 level the past few sessions after achieving a new annual high of 42.50 last Wednesday. Additionally, the stock has slipped below its 10-day and 20-day moving averages amid a general market pallor. Despite the stock's solid performance, options players have pitched in the bearish camp, as evidenced by the security's Schaeffer's put/call open interest ratio (SOIR), which currently weighs in at 0.79, 15 percent away from a new annual peak. This indicator has been on the rise over the past two months.
Click the following link to see a Weekly Chart of NEM Since March 2003 With 10-Week and 20-Week Moving Averages:
schaeffersresearch.com .
Wal-Mart Stores
Last night after the closing bell, the world's top retailer, Wal-Mart Stores (NYSE:WMT), reaffirmed its third-quarter earnings guidance of 45-47 cents per share. In other news, WMT officials announced plans to open 50-55 new discount stores next year and up to 230 new Supercenters. On the technical front, WMT has recently retreated to its ascending 20-week moving average, which has contained pullbacks on multiple occasions since late March. Options players are decidedly optimistic toward the security; Schaeffer's put/call open interest ratio (SOIR) for the shares stands at 0.46, an annual low, suggesting a peak in bullishness. Optimism is also illustrated by the 17-percent decline in shorted WMT shares over the last reporting period to 25.8 million. An indicator test on Schaeffer's Sentiment PowerTools (http://www.schaeffersresearch.com/powertoolsobs) reports that, when WMT's SOIR stands in the bottom five percent of all annual readings, the stock is likely to slightly underperform its typical price action.
Click the following link to see a Weekly Chart of WMT Since February 2003 With 10-Week and 20-Week Moving Averages:
schaeffersresearch.com .
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About Schaeffer's Investment Research (www.SchaeffersResearch.com):
Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, schaeffersresearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: schaeffersresearch.com .
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