Stocks: priceline.com, Sycamore Networks, Yum Brands, UAL Corp., and AMR Corp. CINCINNATI--(BUSINESS WIRE)--December 05, 2006 Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on priceline.com (NASDAQ:PCLN), Sycamore Networks (NASDAQ:SCMR), Yum Brands (NYSE:YUM), UAL Corp. (NASDAQ:UAUA), and AMR Corp. (NYSE:AMR). "Behind the Headlines" is a report that analyzes newsworthy stocks that are generating a lot of attention on Wall Street. "Behind the Headlines" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. 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 and get entered to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&PAGE=1 Behind the Headlines: Airlines: Whether it's that we've entered the holiday travel season, or that oil prices are a good distance away from the $70-per-barrel mark, airlines are back in vogue. Since putting in a near-term low in August at 44.43, the AMEX Airline Index (XAL) has rallied along the support of its 20-day moving average, gaining more than 33 percent. During the past couple of sessions, a number of airlines have released their November traffic data. UAL Corp.'s (NASDAQ: UAUA) United Airlines said its November traffic rose 2.4 percent, while AMR Corp.'s (NYSE:AMR) American Airlines said its November traffic fell 1.1 percent. On the other hand, AMR's American Eagle Airlines said November traffic rose 4.6 percent. Continental Airlines (CAL) reported that November traffic rose 9.8 percent. Technically speaking, UAUA, AMR, and CAL are all consolidating into support at their ascending 20-day moving averages. A bounce off these short-term trendlines could launch the securities on the next leg of their uptrends. Furthermore, from a sentiment perspective, all three companies saw an increase in their respective short-interest readings during November. This growing pessimism has bullish implications from a contrarian perspective, as it indicates that there is potential sideline money available to fuel additional gains in the shares. Click the following link to see a Daily chart of UAUA, AMR, and CAL since July 2006 with 20-Day Moving Average: http://www.schaeffersresearch.com/wire?ID=17825 priceline.com: Last night, priceline.com (NASDAQ:PCLN) said Hutchison Whampoa Ltd. and Cheung Kong (Holdings) Ltd. sold about 3.8 million shares of PCLN's common stock in an at-the-market offering underwritten by Goldman Sachs Group (GS). The sale of the shares is expected to close Thursday. Technically speaking, the equity has been slowly grinding lower and appears to be consolidating its recent gains along support in the 40 region. The security has a history of pullback and consolidations along support since the stock bounced off its low of 18.20 in October 2005. These consolidation periods have preceded a sharp rally in the shares. Click the following link to see a Weekly chart of PCLN since August 2005: http://www.schaeffersresearch.com/wire?ID=17825 Meanwhile, short sellers are attempting to call a top to the stock's ascent. In November, the number of PCLN shares sold short increased by one percent to an eight-month high of 5.1 million shares. With a short-interest ratio of 5.3 days to cover, the stock could benefit from a short-covering rally should the equity pop higher. Sycamore Networks: Before the open this morning, Sycamore Networks (NASDAQ:SCMR) announced that its fiscal first-quarter revenue rose 28 percent to $34.9 million. The firm stated that it was delaying the filing of its Form 10-K for the fiscal year ended July 31, due to an ongoing independent investigation into the granting of stock options and related accounting. The shares gapped higher on the positive revenue report, breaking out of their previous trading range that had kept SCMR capped at the 3.80 level. However, today's pop higher has been stopped by former resistance at the 4.10 level. This region halted the stock's rally attempts in mid-October and late June. What's more, this region is also home to the equity's declining 40-week moving average. Click the following link to see a Daily chart of SCMR since June 2006: http://www.schaeffersresearch.com/wire?ID=17825 Yum Brands: Yum Brands (NYSE:YUM) has been hit with a barrage of news recently. The company was relieved when a New Jersey health official said that the threat of more E. coli infections linked to Taco Bell restaurants appears to have passed. At least three dozen people were stricken in New Jersey and New York and apparently all the victims had eaten at Taco Bell restaurants. Meanwhile, the firm reported that its board has approved a 100-percent increase in its quarterly cash dividend to 30 cents a share from 15 cents. The dividend will be paid on March 30 to shareholders of record on March 9. Looking ahead, the firm expects to return more than $1 billion to shareholders in 2007 with share buybacks, reducing its share count by at least three percent. From a technical perspective, the stock is consolidating along the support of the 61 level and is attempting to bounce off support at its 20-day moving average. What's more, the equity's 10-week trendline is climbing into the region, which could help to boost the shares higher. The equity has been in an uptrend since tagging a near-term low in August of $44.21. Click the following link to see a Daily chart of YUM since July 2006 with 20-Day Moving Average: http://www.schaeffersresearch.com/wire?ID=17825 Meanwhile, Wall Street has yet to completely buy into the stock's rally. According to Zacks, seven of the 13 analysts following YUM rate it a "hold," leaving ample room for potential upgrades. 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 and get entered to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&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 Joseph Hargett, 513-589-3800 email@example.com
Schaeffer's ''Behind the Headlines'' Highlights the Following
Press spacebar to pause and continue. Press esc to stop.