Sign in Subscribe
Semiconductor industry

Not All Energy Stocks Are Created Equal

Strategic Insights

— 2 min read

The Dow Jones Industrial Average (DJIA) has risen 0.67% to 11,143.30, with the S&P 500 Index (SPX) adding 0.73% to 1,292.42 and the Nasdaq Composite (COMP) jumping 0.98% to 2,285.2. OfficeMax (NYSE:OMX) has posted a fourth-quarter net loss of $43.1 million, or 62 cents per share, beating analyst expectations of a seven-cent per share profit. Shares of OMX have risen by nearly seven percent. Sprint Nextel (NYSE:S) has reported fourth-quarter earnings of $197 million, or seven cents per share, below analyst expectations of 34 cents per share on revenue of $11.28 billion. S has shed nearly three percent on the news.

Key Takeaways:

  • OfficeMax (NYSE:OMX) reported a fourth-quarter net loss of $43.1 million, or 62 cents per share, beating analyst expectations of a seven-cent per share profit.
  • Sprint Nextel (NYSE:S) reported fourth-quarter earnings of $197 million, or seven cents per share, below analyst expectations of 34 cents per share.
  • Shares of OMX have risen by nearly seven percent, while shares of S have shed nearly three percent.
  • Intel (NASDAQ:INTC) has dropped more than two percent, driven by a downgrade by ThinkEquity to "sell" from "accumulate" and a lower price target.
  • Martha Stewart Omnimedia (NYSE:MSO) joined the earnings fray, posting net income of $2.95 million for the fourth quarter, beating analyst expectations of 15 cents per share.
  • EnCana (NYSE:ECA) has underperformed the Spyder Energy Select Fund (XLE) and the S&P 500 Index on a weekly relative-strength basis since September 2005.
  • The shares of EnCana have recently run into a considerable rough patch on the charts, and have broken below its 10-month moving average.
  • Despite negative sentiment, investors are rather taken with ECA, and the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.39 indicates that calls more than double puts in the front three months of options.

Statistics:

  • OfficeMax (NYSE:OMX): shares have risen by nearly seven percent on Q4 earnings beat.
  • Sprint Nextel (NYSE:S): Q4 earnings of $197 million, or seven cents per share, below analyst expectations.
  • Intel (NASDAQ:INTC): shares have dropped more than two percent, driven by a downgrade and lower price target.
  • Martha Stewart Omnimedia (NYSE:MSO): Q4 net income of $2.95 million, beating analyst expectations.
  • EnCana (NYSE:ECA): underperformed the XLE and the S&P 500 Index on a weekly relative-strength basis since September 2005.
  • EnCana (NYSE:ECA): shares have broken below its 10-month moving average.

Sources:

  • Schaeffer's Research: www.SchaeffersResearch.com
  • OfficeMax (NYSE:OMX): News release, dated 02/16/2006
  • Sprint Nextel (NYSE:S): News release, dated 02/16/2006
  • Intel (NASDAQ:INTC): News release, dated 02/16/2006
  • Martha Stewart Omnimedia (NYSE:MSO): News release, dated 02/16/2006
  • EnCana (NYSE:ECA): Hoover's Company Report
  • ThinkEquity: Research report, dated 02/16/2006
  • Zacks: Research report, dated 02/16/2006

Read more