When Goldman And Morgan Duke It Out, Guess Who Wins?
Whew!
Thank God those wicked profit warnings are behind us! Now that we have cleared
the air the market can — Whoops! Not so fast! The warnings may be behind us, but
now that the actual earnings season is upon us, I’m sure we’ll all see how
bad things are, or how much they’ve turned things around. I for one am glad
to be in that put-up-or-shut-up phase, as the rumor period is much more
difficult and risky to trade.
Initially, the action in big-cap stocks was bullish, as hardware, software and
networking stocks took the lead, but that lead quickly faded. After a turnaround
into negative territory, we’ve clawed our way back to a pretty fair mid-day
rally.
One stock that is not feeling anything but the taskmaster’s whip is Comverse
Technology
(
CMVT |
Quote |
Chart |
News |
PowerRating). CMVT
designs, develops, manufactures and markets computer and telecommunication
systems and information-processing applications. Today there were dueling
analysts fighting a tug of war over CMVT and guess who won. The two investment
banking powerhouses were Morgan Stanley and Goldman Sachs. Morgan Stanley
reiterated a strong buy, Street-speak for they just wanted the CFO to answer
their calls, while Goldie lowered estimates.
As
you can see from our dollar-weighted moneyflows, the put buying is swamping the
call buying, and thus, contributing to the $4.48 selloff and CMVT’s lack of
any real bounce.
| Symbol
|
Call
Volume
|
Put
Volume
|
$W
CallVol
|
$W
Put Vol
|
| DELL
|
6,182
|
9,223
|
11,303
|
120,747
|
| CMVT
|
1,090
|
10,027
|
2,016
|
72,684
|
| INTC
|
8,234
|
10,943
|
13,209
|
63,596
|
| BRCD
|
2,399
|
7,252
|
8,425
|
37,819
|
(1010WallStreet.com has licensed
the use of Hamzei Analytics proprietary options analytics)
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