Cambridge Antibody Technology, Elan, and Biogen Idec CINCINNATI--(BUSINESS WIRE)--May 15, 2006 Today's Schaeffer's Midday Options Update Target (NYSE:TGT), AstraZeneca (NYSE:AZN), Cambridge Antibody Technology (NASDAQ:CATG), Elan (NYSE:ELN), and Biogen Idec (NASDAQ:BIIB). The Midday Options Update contains a brief commentary on the day's most notable activity and a table listing the most-active calls and puts for the day. The Midday Options Update is published every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. 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=PRMOU12M&PAGE=1 . Options Update: Trading with Elan The Dow Jones Industrial Average (DJIA) is attempting to make gains today, but it has been firmly rebuffed by resistance at its 20-day moving average. It looks likely that we'll end the day in the red, and there might even be a 50-point drop in the Dow. In economic news, the New York Manufacturing Index fell to a reading of 12.36 from 15.81 in April. Economists had expected a reading of 17.0. Meanwhile, the Treasury Department announced that net foreign purchases of U.S. securities fell by 23 percent from February, to total $69.8 billion in March. Wall Street expected net foreign purchases of $74.7 billion. Missing the Target This morning, Target (NYSE:TGT) reported a rise in first-quarter profit to $554 million, or 63 cents per share, from year-ago figures of $494 million, or 55 cents per share. The results missed the consensus estimate by a penny. Revenue showed a 12-percent increase to $12.86 billion while same-store sales gained 5.1 percent. At last check, the stock was down almost four percent at $50.14. AstraZeneca Goes to Cambridge AstraZeneca (NYSE:AZN) announced that it will buy the remainder of British pharmaceutical-research firm Cambridge Antibody Technology (NASDAQ:CATG) that it does not already own. Based on the figures, AZN sets an overall value on CATG at around $1.33 billion. CATG employs about 290 people in the U.K. and at its new site in Palo Alto, California. CATG gapped higher this morning and at last check, the stock was up 64 percent on the day, hitting its highest level since January 2002. Winn Losses Widen Food retailer Winn-Dixie Stores (WNDXQ) posted a first-quarter net loss of $30 million, or 21 cents per share, compared with year-ago figures of a $13.4 million loss, or nine cents per share, a year earlier. Net sales increased to $1.8 billion from $1.7 billion for the year-ago period. The stock was up five percent at last check. Most-Active Options Update At 2:38 p.m. Eastern time, the Dow Jones Industrial Average (DJIA - 11,372.3) has lost 0.08 percent. The S&P 500 Index (SPX - 1,288.77) is 0.19 percent lower, while the Nasdaq Composite (COMP - 2,228.3) is 0.69 percent lower. At 2:38 p.m. Eastern time, 3,574,919 calls have changed hands compared to 3,773,465 puts, equaling a single-day put/call volume ratio of 1.05. The CBOE's equity put/call volume ratio weighed in at 1.11. Elan Not so very long ago, Elan (NYSE:ELN) and its partner Biogen Idec (NASDAQ:BIIB) were making headline news every day, thanks to woes concerning Tysabri, a drug that the two firms developed to fight multiple sclerosis. ELN is the talk of the Street today thanks to some heavy trading at its May 10 call (ELN EB) and June 12.5 call (ELN FV). That May 10 call had open interest of 20,555 contracts before the bell, and 19,365 contracts had traded by the time we grabbed our figures for this piece. A strikingly similar number of contracts of the June 12.5 call traded, too. Volume was 19,645 and, since open interest at the start of the day was just 1,390, that figure is almost certain to change by the time all of today's transactions are netted up. From a technical perspective, the stock has mounted quite a decent recovery during the past 12 months, although there are signs of resistance at the 15 level. Nevertheless, the 10-week and 20-week trendlines appear to be situated to lend support and guide the stock gently higher. Let's take a fresh look at ELN's sentiment backdrop, something that I don't think we've written about recently: -- Percent of analysts tracked by Zacks who rate the stock with a "hold" or worse: 100% -- Number of analysts tracked by Zacks: 6 -- Short-interest ratio: 5.43 -- Schaeffer's put/call open interest ratio (SOIR): 0.60 -- SOIR percent rank: 22 -- Overall Schaeffer's Equity Scorecard rating: 7.5 There is plenty of negativity from the brokerages, which is starting to encourage me, because the stock is advancing. It does not make sense to remain forever negative about a stock that has gained more than 440 percent in 12 months. Upgrades could be on the cards, and they would do ELN no harm at all. Short interest also provides reason to like ELN. There is fuel here for a short-covering rally. There is nothing right now to trigger such a rally, but it's good to know that some fuel is there. On our Schaeffer's Equity Scorecard, the stock earns 7.5 out of 10, suggesting that the path of least resistance lies to the upside. ELN fell dramatically last year, but that should not cloud your judgment. This could be a stock to watch and learn about. Click here to see a Weekly Chart of ELN Since April 2005 With 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=16015 . The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive 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=PRMOU12M&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. The firm's website, http://www.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: http://www.SchaeffersResearch.com/method . CONTACT: Schaeffer's, Cincinnati Jocelynn Drake, 513-589-3800 firstname.lastname@example.org
Schaeffer's Midday Options Update Features Target, AstraZeneca,
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