Beacon Power, RadioShack, and Saks CINCINNATI--(BUSINESS WIRE)--Aug. 8, 2005 Among the stocks featured in the August 8 edition of Schaeffer's Market Blog are McDonald's (NYSE:MCD), Alcan (NYSE:AL), Beacon Power (NASDAQ:BCON), RadioShack (NYSE:RSH), and Saks (NYSE:SKS). Schaeffer's Market Blog is just one of the many free market commentaries written everyday at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1M&PAGE=1 . Schaeffer's Market Blog for Monday, August 8, 2005: Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 . 12:24 PM McDonald's Trades Higher on Positive Same-Store Sales Shares of McDonald's (NYSE:MCD) are trading higher today after the company reported an increase in July same-store sales of 4.9 percent. Technically speaking, MCD has recently broken above its declining short-term moving averages. The stock had been in a steady decline from mid-March through early July. MCD is now trading above its short-and intermediate-term moving averages, a positive sign from a technical perspective. A check on sentiment indicators reveals mostly optimistic feelings from investors. Short sellers have not made big bets against the stock, as MCD sports a short-interest ratio of 1.39 days to cover. Financial analysts hold the shares in high regard, as there are 12 "buy" ratings, seven "hold" ratings and no "sell" ratings on MCD. Option players are a bit more skeptical, as they hold 38,700 open puts compared with 40,700 open calls in the near term. As contrarians, we like to see more signs of skepticism in a security's sentiment backdrop to ensure there is still money remaining on the sideline that can flow into the stock and push its price level higher. Today, MCD is trading 90 cents higher to $32.20. 3:17 PM Alcan Soars on Strong Earnings Alcan (NYSE:AL) has rallied nearly three percent this afternoon following its earnings report. The company posted second-quarter earnings of $208 million, or 56 cents per share, down 77 cents per share for the same period a year ago. On an operating basis, excluding foreign currency balance sheet translation and other items, the company earned $286 million, or 77 cents per share, in the latest quarter. Sales for the quarter tumbled to $5.21 billion from $6.21 billion in the same period a year earlier. The Street had predicted a gain of 61 cents per share on revenue of $5.18 billion. Acting CFO Michael Hanley attributes the company's better-than-expected results to bauxite and alumina business, as well as engineered products business. The firm supplies aluminum products to Airbus. Technically speaking, the shares have pulled back from their intraday high of 34.82, but continue to hold above former resistance at the 34 level. 3:29 PM A Beacon of Hope In skimming the list of stocks seeing the heaviest trading volume on the Nasdaq, I saw the usual list of suspects: Microsoft (MSFT), Cisco Systems (CSCO), and the Nasdaq-100 Trust (QQQQ). But Beacon Power (NASDAQ:BCON) has slipped into the top five. A quick search revealed that the firm makes technology aimed at preventing power disruptions on electrical grids. The firm's flywheel energy storage systems provide uninterruptible electric power for communications networks, computers, industrial manufacturing, and other generation applications. The stock notched a multi-year high this afternoon, soaring more than 32 percent. BCON and several other power companies are enjoying a boost today on speculation that the legislation that President Bush signed today regarding the nation's energy problems could prove to be a boon to several members of the sector. 3:51 PM Pop Go Some Retailers Fitch Ratings decided to revise its outlook on RadioShack (NYSE:RSH) to "negative" from "stable." Fitch made this move after the retailer repurchased 20 million shares for roughly $500 million, which was financed with $300 million in short-term borrowing and $200 million in cash. Fitch stated that the negative outlook considers the magnitude of the share repurchases, projected to total $625 million in 2005. This amount represents a significant acceleration in the pace of share buybacks. The brokerage's lowered outlook also takes RSH's weakened operating results, primarily in the wireless business, into consideration. Furthermore, there may be store disruption from the transition to Cingular from Verizon (VZ) at the end of 2005. RSH has gained more than 2.5 percent thus far in today's trading. RSH was joined on the upside in the retail sector by Saks (NYSE:SKS), which saw shares jump as much as 15 percent but have backed off to a gain of more than nine percent. The news propelling SKS higher is a report in Women's Wear Daily that Bon-Ton Stores and Cerberus Capital Management are combining for a possible bid in the range of $28 to $30 per share. A bid that size represents a 38-to-48-percent premium above Friday's close of $20.25. Gap (GPS) has also increased thanks to September option activity that came in higher than usual. The above are just a few of today's Daily Market Blog entries. Click here to read all of today's Daily Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 . Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1M&PAGE=1 . 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. 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Schaeffer's Daily Market Blog Features McDonald's, Alcan,
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