Schaeffer's Daily Market Blog Features Ditech Communications, TiVo, Esterline Technologies, Pall Corporation, and Chico's FAS

Business Wire, May 27, 2005

CINCINNATI -- Among the stocks featured in the May 27 edition of Schaeffer's Market Blog are Ditech Communications (NASDAQ:DITC), TiVo (NASDAQ:TIVO), Esterline Technologies (NYSE:ESL), Pall Corporation (NYSE:PLL), and Chico's FAS (NYSE:CHS). Schaeffer's Market Blog is 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=PROB1M&PAGE=1 .

Schaeffer's Market Blog for Friday, May 27, 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=PROB3C&PAGE=1 .

12:54 PM Chico's Keeps on Rolling

Upscale ladies fashion retailer Chico's FAS (NYSE:CHS) announced first-quarter earnings results of 26 cents per share last evening, beating the consensus estimate of 25 cents per share. CHS has been strong during the past seven months, nearly doubling in price. Sentiment towards CHS has been bearish for the most part. The Schaeffer's put/call open interest ratio is at 0.93, which is higher than 93 percent of the readings taken in the past year. The short-interest ratio sits at 12.49, despite a 15 percent drop in short interest during the past month. Analyst ratings are one of the few areas showing optimism with 11 "buys", six "holds", and one "sell" rating. CHS is up more than eight percent today.

11:22 AM Pall Corporation Slips After Slashing Guidance

East Hills, New York, Pall Corporation (NYSE:PLL) is getting hit today after the company lowered its earnings expectations. PLL now sees full-year 2005 earnings coming in between $1.30 and $1.35 versus the consensus estimate of $1.41. The company cited a cyclical downturn in microelectronics sales as a contributor in its lowered earnings guidance. A look at sentiment indicators reveals mixed emotions from investors. Option players have largely ignored the security. Seven of the 10 financial analysts covering PLL rate it a "hold." Short sellers have made decent bets against PLL, as the equity sports a short-interest ratio of 6.52 days. At last check, PLL was trading 70 cents lower to $28.63 today.

11:12 AM Esterline Technologies Soars After Earnings Report

According to Yahoo! Finance, Esterline Technologies (NYSE:ESL) is a specialized manufacturing company principally serving aerospace and defense customers. Last night after the market close, ESL topped earnings expectations by 13 cents. What's more, the firm also beat revenue expectations and raised guidance for 2005 earnings. Sentiment indicators on the S&P 600 SmallCap member are quite scant - options are very lightly traded and only four financial analysts cover ESL. The stock has made quite a nice move higher on the positive earnings surprise. At last check, ESL was trading $3.30 higher to $38.16 today.

10:22 AM This is Not a Recording

To follow up to blog posts made earlier this week by John and Kristin on TiVo (NASDAQ:TIVO) - the company released earnings last night that sent the stock even higher. The company reported first-quarter earnings that beat analysts' expectations by 10 cents per share. TIVO also topped its earlier forecast for customer additions. Although the company guided second-quarter revenue in-line with estimates and said that its full-year numbers may be below what Wall Street expects, the stock rose in late trading. At the close of last night's after-hours trading, the stock was at 7.98, nearly 15 percent higher than its regular session close. As my colleagues mentioned, TIVO has ridden sharply higher this week, mostly on a positive comment from a brokerage firm and possibly short covering ahead of earnings.

9:53 AM The Other Ditech, Not the Lender

According to Hoover's, Ditech Communications (NASDAQ:DITC) echo-cancellation equipment regulates the distracting echoes that can occur in long-distance, satellite, and cell phone calls. The company also makes optical communications subsystems (amplifiers and transponders) that boost the strength of fiber optic transmissions and increase the data-carrying capacity of phone lines. Despite the impressive description of the company's business, last night's fourth-quarter earnings release beat Wall Street's earnings estimate by a penny per share. More importantly, however, DITC reported lower-than-expected revenue and said next quarter's revenue would come in far below expectations. DITC expects to have sales of $10 to $11 million next quarter versus analysts' expectations of $24 million. The stock fell more than 36 percent to $8.04 in last night's after-hours trading. DITC had rallied 16 percent during the past two weeks. However, the stock is far from its 2005 high of 15.09 made on the first trading day of the year.