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Schaeffer's Daily Market Blog Features: Dell, New York & Co., The9 Limited, Altria, and Williams-Sonoma

Posted on: Thursday, 16 November 2006, 15:00 CST

Among the stocks featured in the November 16 edition of Schaeffer's Market Blog are Dell (NASDAQ:DELL), New York & Co. (NYSE:NWY), The9 Limited (NASDAQ:NCTY), Altria (NYSE:MO), and Williams-Sonoma (NYSE:WSM). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1

Don't forget that many of our observations are available as audio presentations that you can hear on your computer or download from Apple's iTunes Music Store to play on a portable device such as an iPod. To see the full menu of podcasts, please visit http://www.schaeffersresearch.com/commentary/podcasts/

5:10 PM 11/15/06 An Interview with Bernie Schaeffer

Last fall, we began a small project, which involved nothing more elaborate than a $10 microphone from RadioShack (RSH) and a rather dusty old Compaq. As an experiment, we recorded our first test podcast, never released, and now, one year and 1,000 podcasts later, our productions are popular at the Apple iTunes Music Store, and at StreetIQ.com we're in the top 12, vying with Jim Cramer.

To celebrate the occasion, Bernie Schaeffer, our founder, Chairman, and CEO, came into the studio this afternoon as a special guest in our 1,000th podcast. Bernie gave his thoughts on the state of the markets, noting that option prices are remarkably low at the moment, presenting some attractive opportunities for nimble investors. He also brought along a free stock pick and a free option pick that you might like to know about.

Podcasts are audio presentations that you can play on your computer or download. To see the full menu of podcasts, and to listen to that interview with Bernie, please visit http://www.schaeffersresearch.com/commentary/podcasts/

11:14 AM Dell Stumbles on Delay

The shares of Dell (NASDAQ:DELL) are struggling this morning, dropping more than four percent on news that it has delayed the release of its third-quarter earnings results. Furthermore, the Securities and Exchange Commission said it would begin a formal probe into the company's accounting practices. The computer giant had been scheduled to release its earnings after the market close today, but said complexities related to a previous, non-formal SEC investigation would keep it from putting out its results until the end of November. The company also reported that it would deliver its results only in the form of a press release and wouldn't have a traditional conference with the media or computer industry analysts.

Technically speaking, the shares have dropped below support at their 10-day moving average, but have potential support at their rising 20-day trendline. Today's drop also coincides with the security hitting resistance at its declining 50-week moving average. DELL has not logged a weekly close above this trendline since August 2005.

11:18 AM New York & Co. Reports Strong Earnings

Trendy retailer New York & Co. (NYSE:NWY) announced that third-quarter earnings more than doubled to $9.6 million, or 16 cents per share, from $4.2 million, or seven cents, from the same period a year ago. Sales for the quarter jumped to $270.9 million, while same-store sales gained 0.5 percent. The Street had predicted earnings of 15 cents per share on sales of $274.5 million. Looking ahead, the company boosted its full-year earnings outlook to a range of 74-83 cents per share, up from a prior target of 70-82 cents. The consensus estimate currently stands at 79 cents per share.

Today's positive earnings news has pushed the shares through former resistance at the 14 level. The equity has steadily climbed higher along the support of its 40-day and 50-day moving average since early August. During this time frame, the stock has logged only one daily close below both of these trendlines.

1:12 PM The9 Soars on Earnings Report

The9 Limited (NASDAQ:NCTY) is making a nice move post-earnings today. The stock is up about 17 percent, and further upside is certainly possible given the potential for short covering. The short interest on the stock is up nearly 30 percent over the past month, and the amount of shares sold short is close to 20 percent of the security's float. Many of these short players are feeling pain today, and may be forced to close their positions to limit losses by buying back the stock. This buying activity will only help push the share price higher.

2:32 PM Altria Smokes Their Old Estimates

After a big down day and reversal on Tuesday, cigarette companies are doing pretty solid today. One of the main reasons is Altria Group (NYSE:MO) is up nearly two percent after slightly upping 2006 full-year guidance. Also yesterday MO received an upgrade and the shares added over a percent - not a bad two days. Turning to some other names in this area, Reynolds American (RAI) is up 1.56 percent and UST (UST) is up more than a percent. All three names look nice and should continue to rally as long as the overall market holds up.

2:39 PM A Dubious Distinction for Retailing Pair

Thanks to poorly received earnings news, specialty retailers Williams-Sonoma (NYSE:WSM) and Men's Wearhouse (MW) are the two broadest decliners (on a percentage basis) on the New York Stock Exchange this afternoon. The housewares and kitchen specialist said its third-quarter profits dropped 21 percent to $29.1 million, or 25 cents per share. Excluding items, WSM would have banked 29 cents per share, or a nickel better than analysts' expectations. Revenue rose three percent to $852.8 million, missing the Street's target. Looking forward, WSM lowered its 2006 net revenue outlook and its same-store sales growth forecast. The stock is currently off nearly nine percent on robust volume.

Suit shop MW said Wednesday evening that third-quarter earnings reached 58 cents per share, four cents above analysts' consensus view as sales reached 9.5 percent higher to $430.1 million. The firm said fourth-quarter same-store sales are expected to grow one to two percent, below the company's historical average. MW has slipped almost eight percent into the red, gapping beneath its 10-day and 20-day moving averages on heavy volume.

For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&PAGE=1

Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an IPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1

About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method.

Source: Business Wire

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