Tuesday Action
Wow---I am finally able to connect to SI. For some reason I could not get my ISP to connect to SI all day long!
Well today was a doozy of a day--unreal action. DJIA up 100 at one time only to selloff 130 points in about 45 min--closing down 4.61. Market was in cruise control until around 2:15--then the bond market got slammed, getting soft real fast. The 6 1/2% 30 year benchmark bond of 2026 yield rose from 6.865% to 6.907% in 45 min. Apparantly, a rumor got started that the ECI, or employment cost index, report that was released this morning was incorrect. Hence, the stock market tanked when the bonds got soft. However, after the market closed, the Labor Dept said that there was nothing wrong with the ECI, that in fact, it was 100% correct. So, maybe tommorrow, the market will resume its upside--as alot of stocks sold off hard on the bond selloff.
IFMX--Was a super day for IFMX rising at the days high to $22 offer. I traded out of this position today, but will look to reenter anywhere under $21 again.
COMS--Take a look at a 180 day COMS chart--That is why today I was a buyer of COMS at $61 1/4. This stock hasnt seen this low since mid-October and lost $8 in 2 hours of trading today. Here is the Dow Jones news release concerning the selloff:
3Com Off -2-: Off 11% From Intraday High >COMS
NEW YORK (Dow Jones)--3Com Corp.'s (COMS) stock fell 11% from highs
reached earlier in the day after Chief Executive Eric Benhamou told analysts in a
conference call that the last few weeks of December were ''slightly weaker than
expected.''
Despite his assessment of December, Benhamou said ''January looks very strong,''
according to a contact at PaineWebber Inc. ''They said the pipeline is stronger than
ever and the industry is very strong,'' the contact said.
3Com makes routers, hubs and other computer products for high-speed networks.
According to the contact, PaineWebber analyst Paul Weinstein reiterated his buy
recommendation on 3Com and sees the stock's weakness as a buying opportunity.
He kept his earnings estimate for the third quarter ending in February at 63 cents a
share.
''In a year's time this is a $90 stock,'' Weinstein said in comments published after
Benhamou spoke, according to the contact. ''People are thinking short-term if
they're jumping out based on the CEO saying December was slightly weak,''
Weinstein reportedly said.
Chief financial officer Christopher Paisley was scheduled to speak on the call
following Benhamou, the contact said.
Recently, the stock was off 3 5/8, or 5.6%, at 61 3/8, on heavy volume of 18
million shares. It had been as high as 68 7/8 earlier. Average volume in 3Com's
stock is 3.9 million shares.
(END) DOW JONES NEWS 01-28-97
COMS did 20 Million shares today--Nasdaqs most active.
IOM--Well, sold off during the day but was up almost $1 afterhours. Earnings look decent and it should have a decent day tommorrow.
CPU--Earnings before the bell. Looking for a big day out of this one.
One stock I will be watching closely Wednesday, APCC. Sold off hard into days late day tank and if it doesnt gap too much I may be an early buyer.
Glad to see SI up and running again,
Mills. |
