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Market Insights from Schaeffer's Market Blog, November 1, 2005

Strategic Insights

— 1 min read

Procter & Gamble (NYSE: PG) topped earnings estimates, with 77 cents per share beating expectations by a penny, and revenues increasing 7.6% year-over-year to $14.8 billion. Despite pessimism ahead of the report, PG surged nine cents higher to $56.08. In contrast, Ford Motor (NYSE: F) released October sales figures, plummeting 26% to 199,847 vehicles due to customer take-up of employee-discount pricing plans. Intel (NASDAQ: INTC) was affected by Dell's (NASDAQ: DELL) poor earnings guidance, with INTC's 20% decline since mid-July and 42% drop since January signaling potential bearish performance. Sirius Satellite Radio (NASDAQ: SIRI) reported a third-quarter loss but lifted its subscriber outlook, with the company set to expand into Canada in December. RADVision (RVSN) topped earnings estimates, guiding its fourth-quarter earnings higher and reaching resistance at the 14.50 level.

Key Takeaways:

  • Procter & Gamble reported 77 cents per share in earnings, beating analyst estimates by a penny, with revenues increasing 7.6% year-over-year to $14.8 billion.
  • Ford Motor released October sales figures, plummeting 26% to 199,847 vehicles due to customer take-up of employee-discount pricing plans.
  • Intel was affected by Dell's poor earnings guidance, with INTC's 20% decline since mid-July and 42% drop since January signaling potential bearish performance.
  • Sirius Satellite Radio reported a third-quarter loss but lifted its subscriber outlook, with the company set to expand into Canada in December.
  • RADVision topped earnings estimates, guiding its fourth-quarter earnings higher and reaching resistance at the 14.50 level.
  • Wallet Street concerns are present as 21 of the 30 covering analysts on Intel rate the shares a "buy" or better, with potential downgrades due to Dell's lowered forecast.
  • The Schaeffer's put/call open interest ratio indicates heavy optimism on the stocks mentioned, particularly on Procter & Gamble at 1.76, which is higher than 98% of all ratios taken during the past year.

Statistics:

  • Ford Motor October sales figures plummeted 26% to 199,847 vehicles.
  • Intel has lost 20% since mid-July and 42% since January.
  • Procter & Gamble's Schaeffer's put/call open interest ratio is 1.76.
  • Sirius Satellite Radio reported a third-quarter loss of $180.4 million.
  • RADVision's shares rose 12% to $14.60.

Sources:

  • Schaeffer's Market Blog, November 1, 2005
  • Schaeffer's Research, 2005
  • Yahoo! Finance
  • Forbes
  • Barron's
  • Schaeffer's Investment Research (www.SchaeffersResearch.com)
  • Bernie Schaeffer

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