Schaeffer's Daily Market Blog Features Research in Motion Limited, General Motors, Steel Dynamics, MicroStrategy, and Neiman Marcus Group

Business Wire, March 16, 2005

CINCINNATI -- Among the stocks featured in the March 16 edition of Schaeffer's Market Blog are Research in Motion Limited (NASDAQ:RIMM), General Motors (NYSE:GM), Steel Dynamics (NASDAQ:STLD), MicroStrategy (NASDAQ:MSTR), and Neiman Marcus Group (NYSE:NMG.A). Schaeffer's Market Blog are just one of the many free market commentaries written everyday 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. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRMOU1M&PAGE=1 .

Schaeffer's Market Blog for Wednesday, March 16, 2005:

Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1

9:42 AM Suit Settlement Sends RIMM Soaring

Research In Motion (NASDAQ:RIMM) settled a patent infringement lawsuit with NTP Inc. for $450 million. The settlement will allow RIMM customers to use their BlackBerry wireless service without interference from NTP and is a final and full settlement. Apparently investors were wagering on this happening, because there is an abundance of optimism toward RIMM. The Schaeffer's put/call open interest ratio (SOIR) is at 0.79, which is lower than 99 percent of the readings in the past year. The short-interest ratio is a paltry 1.37. Analysts are the only cautious bunch with 10 "hold" ratings and five "buy" ratings. Shares of RIMM gapped higher by 18 percent this morning.

10:19 AM GM Accountable For Better than Half of Dow Loss

After lowering guidance this morning, General Motors (NYSE:GM) is down almost $4 in early trading. Due to the weighting in the Dow Jones Industrial Average, GM's loss is accounting for approximately 30 of the 44 points the Dow has lost so far. Looking at the broader market indices, the Nasdaq Composite is higher and the S&P 500 is only slightly lower. For more on GM's warning, see Jocelynn Drake's article from this morning, "General Motors Warns."

11:11 AM Steel Stocks Lower on Steel Dynamics' Intraday Guidance

At 10:15 a.m., Fort Wayne, Indiana-based Steel Dynamics (NASDAQ:STLD) said in a press release that it sees lower-than-expected first quarter results. On the other hand, the company sees a strong second quarter. The stock has traded lower on the news. STLD said the continuation of soft market conditions, higher than expected raw material costs, and unplanned production outages will have an adverse impact on results. Steel stocks have had quite a run over the past couple of years, and there has been speculation recently that the end of the run is near. In fact, there was an article this weekend in a major financial publication about the "bubble" in steel stocks. It will be interesting to see if the pullback on the negative STLD news represents an attractive entry point or if these equities are starting to roll over.

11:59 AM Early Accounting Concerns for MicroStrategy

MicroStrategy (NASDAQ:MSTR) is sharply lower today on the news that its longtime auditor PricewaterhouseCoopers will not seek re-election for 2005. Multiple brokerages houses, including First Albany, Wedbush Morgan, and Pacific Growth, have downgraded the shares on the news, as there are concerns about MSTR's 10-K report. The stock is now trading below its 10- and 20-unit short- and intermediate-term moving averages on the negative news.

1:31 PM Would Anyone Like to Buy Us?

I guess the way to maximize shareholder value in the short-term these days is to put yourself up for sale. Neiman Marcus Group (NYSE:NMG.A) has been talking with several companies including Limited Brands (LTD), as well as some private-equity firms, about selling itself for as much as $5 billion. Given that as of yesterday's close the market cap of NMG.A was $3.66 billion, investors have been bidding up the stock today. The shares are currently up about 11.5 percent to $83.30, although they traded as high as $89 earlier in the session. Traders seem to think that the proposed $5 billion price tag may be a bit high given that even at its intraday high of $89 a share the stock's market capitalization was only $4.36 billion.

The above are just a few of today's Daily Market Blog entries. Click here to read all of today's Daily Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&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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