Market Analysis: May 8, 2006 Edition
Schaeffer's Market Blog highlights key stock movements in the May 8, 2006 edition, covering companies such as Emmis Communications, Apple Computer, Intel, Inco, and Empire Resources. Analysts and traders discuss market activity, sentiment, and notable trends in the options market. Bernie Schaeffer's Schaeffer's Investment Research provides in-depth analysis and commentary on the day's market activity from an options perspective.
Key Takeaways:
- Emmis Communications (NASDAQ:EMMS) leads the Nasdaq with a 21% gain, reaching $16.32 after CEO Jeffrey Smulyan offered to buy the company for $15.25 per share.
- Apple Computer (NASDAQ:AAPL) suffers from limited upside despite a U.K. court ruling in its favor, with sentiment showing low expectations for the stock.
- Intel (NASDAQ:INTC) experiences high call volume, potentially stifling its rally, with the stock trading between $20.10 and $20.15.
- Inco (NYSE:N) surges 14% after a takeover bid from Teck Cominco, with Falconbridge (FAL) seeing a 6% gain despite the condition of nixing its buyout offer.
- Empire Resources (NYSE:ERS) drops 45% after a significant gain, highlighting the risks of momentum investing.
Statistics:
- Emmis Communications (NASDAQ:EMMS) gains 21% to reach $16.32.
- Apple Computer (NASDAQ:AAPL) has less than 2.5% of its float sold short.
- Intel (NASDAQ:INTC) sees over 50,000 calls traded, with calls outpacing puts by a ratio of more than five to one.
- Inco (NYSE:N) surges 14% to a new all-time high.
- Empire Resources (NYSE:ERS) drops 45% in the last three days.
Sources:
- Hoover's: Emmis Communications company profile
- Schaeffer's Market Blog: May 8, 2006 edition
- Zacks: Apple Computer (AAPL) analyst estimates
- Schaeffer's Investment Research: website and market commentaries