Schaeffer's Market Blog: August 23, 2006 Edition
On August 23, 2006, Schaeffer's Market Blog featured a commentary on five notable stocks: IBM, Internet Security Systems, LSI Industries, General Motors, and CBS Corp. The edition highlighted key market activity and trading trends, including mergers and acquisitions, earnings reports, and stock price movements.
Key Takeaways:
- IBM (NYSE:IBM) is to acquire Internet Security Systems (NASDAQ:ISSX) for $28 per share in cash, subject to regulatory and shareholder approval.
- LSI Industries (NASDAQ:LYTS) reported fourth-quarter results, beating the Reuters estimate by three cents, and its stock price surged almost eight percent at $15.93.
- General Motors (NYSE:GM) puts are being traded heavily, with put volume running at about four times average, indicating potential short-covering rally.
- CBS Corp. (NYSE:CBS) agreed to sell two radio stations in San Antonio, Texas, to Border Media Partners for $45 million in cash.
- Short interest on General Motors is high at nearly 14 percent of float, and only three out of 12 analysts rate the shares with a "buy" recommendation.
Statistics:
- Volume on IBM was more than five times the volume seen the previous day.
- LSI Industries' stock price gapped higher on the open, pulling its 10-day and 20-day moving averages into a bullish cross.
- General Motors' put volume is running at about four times average.
- Short interest on General Motors is nearly 14 percent of float.
- CBS Corp. sold a total of 17 radio stations in five markets.
Sources:
- "Schaeffer's Market Blog" (August 23, 2006)
- Reuters estimate of LSI Industries' earnings
- Hoover's profile of LSI Industries
- Zacks' ratings for LSI Industries
- Schaeffer's Investment Research website (www.SchaeffersResearch.com)