Schaeffer's "Behind the Headlines" Highlights the Following Stocks: Anheuser-Busch, Coldwater Creek, Hot Topic, and U.S. Airways Group

Business Wire, Dec 19, 2006

CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses Anheuser-Busch (NYSE:BUD), Coldwater Creek (NASDAQ:CWTR), Hot Topic (NASDAQ:HOTT), and U.S. Airways Group (NYSE:LCC). "Behind the Headlines" is a report that analyzes newsworthy stocks that are generating a lot of attention on Wall Street. "Behind the Headlines" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Behind the Headlines: Anheuser-Busch Stares Down the 50 Strike

Anheuser-Busch: Master of the brewing domain, Anheuser-Busch (NYSE:BUD), said today that it will drop its sponsorship of the Nascar Busch series, which it has sponsored since 1982. The series is currently worth more than $100 million in brand exposure. While the firm will still sponsor events, it will remove its role as title sponsor.

Technically speaking, BUD enjoyed an uptrend earlier this year that was stopped short in early September at the 50 mark. Since then, the shares have shuffled sideways below this round-number threshold.

More than three months after this initial rejection, and BUD is still facing resistance from the 50 level. In the January series, there are nearly 23,000 calls at the 50 strike, making this the site of heaviest open interest in the front month. These out-of-the-money options provide a layer of options-related resistance for the short term.

Click the following link to see the January open-interest configuration for BUD and a weekly chart of BUD since February 2006: http://www.schaeffersresearch.com/wire?ID=17911

Coldwater Creek: This morning, UBS boosted its rating on Coldwater Creek (NASDAQ:CWTR) to "buy" from "neutral." The specialty retailer has responded well to this vote of confidence, rallying nearly four percent today despite a failing broad market. The move has boosted the stock within striking distance of its 10-month moving average; in November, CWTR closed below this long-term trendline for only the second time since April 2003. Additionally, the stock is now perched above its 20-day moving average for the first time since November 21.

If there is any follow-through from today's strength, it may spur some short-covering activity. At the last reporting period, 17.5 percent of CWTR's available float was sold short, resulting in a short-interest ratio of more than nine days to cover. If these bears begin to fear that CWTR has bottomed, they may seek to close out their bearish bets by repurchasing the stock.

Click the following link to see a monthly chart of CWTR since February 2003 with 20-month moving average: http://www.schaeffersresearch.com/wire?ID=17911

Hot Topic: Hot Topic (NASDAQ:HOTT) was slapped with a downgrade this morning, as Wachovia lowered its opinion on the trendy apparel retailer to "market perform" from "outperform." This downgrade added insult to injury for HOTT, which was already struggling with technical resistance in the form of its 20-month moving average overhead. The shares have not closed a month atop this trendline since May 2004. From a short-term perspective, HOTT has gapped more than 2.5 percent lower today, dropping it beneath its 10-day and 20-day moving averages.

Click the following link to see a monthly chart of HOTT since August 2003 with 10-month and 20-month moving averages and a daily chart of HOTT since October 2006 with 10-day and 20-day moving averages: http://www.schaeffersresearch.com/wire?ID=17911&obspage=2

U.S. Airways Group: Earlier today, Delta Air Lines (DALRQ), currently plodding through a Chapter 11 restructuring plan, formally rejected U.S. Airways Group's (NYSE:LCC) $8.4-billion merger offer. In lieu of this partnership, DALRQ filed a reorganization plan that values the business at $9.4 billion to $12 billion. LCC's CEO said this afternoon that his company will continue to work with Delta's creditors and stated that "This is an important step in a process that we believe will result in the merger of US Airways and Delta." A sweetened bid is also not out of the question.

Like many a spurned suitor, LCC is finding that looking good is its best revenge. Fresh from a retest of support at its ascending 10-week moving average, the stock is trading nearly 1.5 percent higher today. This intermediate-term trendline currently coincides with former chart resistance near the 56 mark, which now appears to be serving as support. Hovering overhead, however, is steep call open interest at the January 65 and 70 strikes. Between these two strikes, there are more than 30,000 call contracts, providing a wall of options-related resistance.

Click the following link to see Weekly chart of LCC since June 2006 with 10-week moving average: http://www.schaeffersresearch.com/wire?ID=17911&obspage=2