Market Insights from Schaeffer's Market Blog, April 15, 2005

Strategic Insights -

Market analysts from Schaeffer's Investment Research provide valuable insights into the stock market performance of various companies, including Hot Topic, General Electric, General Motors, Eli Lilly, and Apple Computer. The researchers highlight key trends, earnings announcements, and sentiment indicators that influence the market activity.

Key Takeaways:

  • Hot Topic (NASDAQ:HOTT) is experiencing resistance at its 50-percent retracement level, with a short-interest ratio of 8.37 days to cover, indicating a potential short-term decline.
  • General Electric (NYSE:GE) has beaten earnings expectations by a penny, as forecasted by analysts, with a 16-to-2 "buy" to "hold" rating ratio on its stock.
  • General Motors (NYSE:GM) has been upgraded by Prudential Equity Group from "neutral" to "overweight" rating, citing an "overly negative" sentiment picture, with a short-interest ratio of 7.07.
  • Eli Lilly (NYSE:LLY) options were extremely expensive ahead of its Zyprexa ruling, with the April 55 straddle costing $6.15, and the stock is now trading up nearly seven percent, despite losing 33 percent on the trade.
  • Apple Computer (NASDAQ:AAPL) has outpaced the broad market by 147 percent over the past 52 weeks, but may be experiencing a turnaround with the stock trading 99 cents lower after beating earnings expectations.

Statistics:

  • Hot Topic's 50-percent retracement level is $22.56 to $22.67.
  • General Electric's "buy" to "hold" rating ratio is 16:2.
  • General Motors' short-interest ratio is 7.07.
  • Eli Lilly's April 55 straddle cost $6.15, losing 33 percent on a nearly seven percent stock price increase.
  • Apple Computer's 52-week stock price gain is 154 percent, outpacing the broad market by 147 percent.

Sources:

  • Schaeffer's Market Blog, April 15, 2005: Hot Topic, General Electric, General Motors, Eli Lilly, and Apple Computer analysis.
  • Yahoo! Finance: Apple Computer (NASDAQ:AAPL) company information.
  • Prudential Equity Group: Upgrade of General Motors (NYSE:GM) stock to "overweight" rating.
  • http://www.SchaeffersResearch.com: Schaeffer's Investment Research website, featuring the nation's leading options subscription newsletter, Bernie Schaeffer's Option Advisor.
  • Bernie Schaeffer, founder of Schaeffer's Investment Research (1981).