Medifast Inc. (MED)

[XV19]

November 24, 2006 - 1:29 PM EST

MED 13.33 0.28

Today 5d 1m 3m 1y 5y 10y



SYX 12.81 -0.70

Today 5d 1m 3m 1y 5y 10y



WMT 45.84 -0.26

Today 5d 1m 3m 1y 5y 10y



Schaeffer's Daily Market Blog Features: Intel, Wal-Mart Stores, Medifast, Systemax, and Family Dollar
Among the stocks featured in the November 24 edition of Schaeffer's Market Blog are Intel (NASDAQ:INTC), Wal-Mart Stores (NYSE:WMT), Medifast (NYSE:MED), Systemax (NYSE:SYX), and Family Dollar (NYSE:FDO). 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 .

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12:12 PM Medifast Short Sellers Getting Squeezed?

We could be seeing some short-covering activity on this day after Thanksgiving for weight and disease management products firm Medifast (NYSE:MED). Shares of the company have rallied nearly nine percent so far today, taking the stock above former resistance at the 11 level. According to Briefing.com, the investors are jumping on the equity due to a positive mention in a newsletter. Meanwhile, about 9.6 percent of the stock's float is sold short, and today's rally could be putting pressure on these bearish investors to buy back their positions. However, with today's light post-holiday volume, it will be interesting to see if MED holds today's gains into next week.

10:26 AM Intel Pulls Back on Restructuring News

Early yesterday morning, semiconductor bellwether Intel (NASDAQ:INTC) announced that it is reviewing the possibility of closing down or reducing the staff at its South Korean operations as part of its restructuring efforts. While it is a light trading day due to the Black Friday sales "holiday" in the States, INTC finds itself falling about one percent on news that normally boosts a company's shares. Technically, the stock is coming off a near-term top in the 22.50 area, a region that has troubled the security since late January. Furthermore, optimism is running high on the Street, with 18 of the 28 analysts covering the shares rating them a "buy" or better. Investors might want to keep an eye on short-term support in the 21.50 region, as a break of this level could indicate more downside potential over the short to intermediate term.

10:13 AM A Few Pesos More

Shares of Wal-Mart Stores (NYSE:WMT) have dipped about one percent this morning after The New York Times reported that the retailing giant received the permission from Mexico to open a bank in the country. Currently, WMT is pinned between its 10-day and 20-day moving averages, where it has spent the past seven trading sessions hovering above support at the 47.50 level. In sentiment, there mixed feelings toward the retailer on the Street, as eight of the 16 analysts covering the shares rate them a "hold," while the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.80 ranks above 84 percent of those taken during the past year. However, with WMT dropping some 8.6 percent since late October, this pessimism is to be expected.

9:53 AM Systemax Jumps on Earnings News

After the close on Wednesday, Systemax (NYSE:SYX) announced second-quarter earnings of $7.11 million, or 19 cents per share, compared to $1.52 million, or four cents per share, for the same period a year ago. Sales for the quarter rose eight percent to $547.2 million. The company also said it intends to release third-quarter results before the end of December. The security has gapped more than 14 percent higher this morning, jumping above former resistance at the 12.50 level. The equity is poised to finish the week back above its 10-week moving average as it bounces off the support of its ascending 20-week trendline.

9:45 AM Family Dollar Misses Extension Deadline

This morning, Family Dollar (NYSE:FDO) announced that it won't file its annual report by the Friday extended deadline, due to its continuing investigation into stock options. The board committee formed to investigate stock-option practices hasn't completed its work. At last check, the security was down more than one percent at $28.62 after being rejected yet again at the 29 level. This region is currently home to the stock's 10-week moving average, which has begun to roll over. This trendline could continue to hinder the equity's rally attempts during the near term. However, the shares have potential support at their 10-day and 20-day moving averages since the 28.30 region.

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.

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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: http://www.SchaeffersResearch.com/method .


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Source: Business Wire (November 24, 2006 - 1:29 PM EST)

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