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Biotech / Medical : RXSD Rexall Sundown -- Ignore unavailable to you. Want to Upgrade?

To: John Squires who wrote (233)	1/15/1999 12:31:00 PM
From: Thean	Read Replies (1) \| Respond to of 327

I'm impressed that the apparent below expectation earning of RXSD did not result in any selling pressure today. Based on this I think the sentiment today is most bad news is out and behind the company and people are beginning to look forward to future performance. In most likelihood RXSD will close today +/- 1/8 of 15 for option expiration purposes. If today's relative strength can be maintained next week, RXSD may have a chance of taking down the $16 resistence. $16 is a critical level for RXSD to successfully close above before more money will flow its way. Note that Feb's 15 call also has the highest OI for that month. If RXSD can successfully break through $16, then we may see a shift up in the Feb call OI to $17 1/2 and $20. The 10Q release yesterday did mention that the average share repurchase price by the company has been $15. I think RXSD represent a good reward, low risk stock (assuming the sentiment does not change abruptly next Monday) going forward. Selling $15 calls have been rewarding the past few months but I will wait to see if $16 can be taken out before writing Feb calls. Also note that TWLB amd NBTY do not share similar strength in their stock prices in the past few days. This should be taken as cautionary . I would rather see an industry-wide rebound than a single company specific rebound.