Today's "Upon Further Review" from Schaeffer's
Investment Research focuses on Amazon.com (NASDAQ:AMZN), Google
(NASDAQ:GOOG), eBay (NASDAQ:EBAY), Travelzoo (NASDAQ:TZOO), and Mylan
Laboratories (NYSE:MYL). "Upon Further Review" is a report that
analyzes newsworthy stocks that are generating a lot of attention on
Wall Street. "Upon Further Review" is published on
www.SchaeffersResearch.com - the home of Bernie Schaeffer and
Schaeffer's Investment Research.
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Upon Further Review:
Amazon.com: The shares of Amazon.com (NASDAQ:AMZN) are up more
than three percent this afternoon following news that the company's
board has approved the buyback of $500 million worth of its common
stock within the next 24 months. Despite this good news, the stock is
having some trouble tackling the 29 level. This area marked an
intraday high for the shares on July 26 when they gapped sharply
lower. In fact, this region has hindered the equity's rally attempts
since the significant gap. Furthermore, the security is seeing some
heavy call trading at the 30 strike, which could add yet another layer
of potential resistance. In the September series, more than 8,000
calls have accumulated at the 30 strike, and volume currently numbers
more than 1,500 contracts, making it the most-active call for AMZN.
Click the following link to see an Intraday Chart of AMZN for
August 28, 2006:
eBay and Google: This morning, Google (NASDAQ:GOOG) announced that
it will have exclusive rights to display text ads on eBay's
(NASDAQ:EBAY) auction web sites outside the U.S. The two companies
will begin testing the arrangement early next year, and also plan to
cooperate in developing click-to-call initiatives, which enable
consumers to call merchants and advertisers directly using connections
displayed in the ads.
Technically speaking, EBAY has been steadily guided lower by its
descending 80-day moving average. Meanwhile, GOOG isn't looking much
better. The stock is currently trapped between support in the 365-375
region and resistance at its declining 10-day and 20-day moving
averages. What's more, GOOG has made a series of lower highs since the
beginning of the year and is poised to log its second consecutive
monthly close below its 10-month moving average.
Click the following link to see a Daily Chart of EBAY since
February 2006 with 80-Day Moving Average:
Travelzoo: Travelzoo (NASDAQ:TZOO) is at it again. The shares are
up more than eight percent this afternoon on no news. However, this
rally is looking extremely familiar to when it climbed to resistance
at the 36 level and was ultimately rejected. The stock has tagged an
intraday high of $35.95 and has hovered near that mark most of the
day. Another rejection here could send the shares back for a test of
former support in the 27-27.50 area.
Click the following link to see the Daily Chart of TZOO since May
2006: http://www.schaeffersresearch.com/wire?ID=17226 .
Mylan Laboratories: Stepping away from Internet-related stocks for
a moment, we find Mylan Laboratories (NYSE:MYL) clinging to support
in the 20 region. The company announced plans this morning to acquire
a 71.5-percent stake in Indian drug maker Matrix Laboratories for $736
million. The stock has pulled back on the news, but is clinging to the
20 level, which served as support in the past for the shares.
Furthermore, the 20 strike is the site of peak put open interest in
both the September and October series of MYL, with a total of more
than 10,500 contracts.
Click the following link to see a Daily Chart of MYL since
December 2005: http://www.schaeffersresearch.com/wire?ID=17226 .
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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: