From http://studio.financialcontent.com/Engine?Account=allaccess&PageName=NEWSREAD&ID=1232715&Ticker=DISH&SOURCE=20040803005685
EchoStar Communications (DISH - news) popped briefly higher yesterday on news that Cox Communications may be going private. The stock is currently struggling to hold above resistance at its declining 10-day and 20-day moving averages. These trendlines have led the shares lower since the beginning of June. Additional resistance rests overhead at the stock's 10-week moving average. Since late February, DISH has closed only one week above this trendline. Furthermore, the stock's weakness has left its 10-month and 20-month moving averages poised for a bearish cross. This technical formation often signals additional downside from the shares.
Investors are attempting to call a bottom to the stock's lengthy decline. Options players piled into the stock's August 30 call on Monday, adding more than 1,400 contracts. What's more, the stock's SOIR of 0.60 is lower than 96 percent of all those taken over the past year. Short interest also dropped by 17 percent in July to 9.1 million shares, which is near a multi-year low. At the security's average daily trading volume, it would take less than four days to cover these positions. The brokerage firms also favor the firm, with eight of the 14 analysts following the equity rating it a "buy" or better. This leaves ample room for potential downgrades that could spell trouble for DISH.
Traders should also be aware that DISH is currently scheduled to step into the earnings confessional on August 10. Analysts are anticipating a profit of 20 cents per share, matching its year-ago gain. The company's earnings history is rather dark. According to Zacks, the firm has missed the consensus estimate for the past five quarters. Another miss next week could send many of these bulls running for the exits, sending the shares lower once again.
EchoStar Communications (DISH - news) popped briefly higher yesterday on news that Cox Communications may be going private. The stock is currently struggling to hold above resistance at its declining 10-day and 20-day moving averages. These trendlines have led the shares lower since the beginning of June. Additional resistance rests overhead at the stock's 10-week moving average. Since late February, DISH has closed only one week above this trendline. Furthermore, the stock's weakness has left its 10-month and 20-month moving averages poised for a bearish cross. This technical formation often signals additional downside from the shares.
Investors are attempting to call a bottom to the stock's lengthy decline. Options players piled into the stock's August 30 call on Monday, adding more than 1,400 contracts. What's more, the stock's SOIR of 0.60 is lower than 96 percent of all those taken over the past year. Short interest also dropped by 17 percent in July to 9.1 million shares, which is near a multi-year low. At the security's average daily trading volume, it would take less than four days to cover these positions. The brokerage firms also favor the firm, with eight of the 14 analysts following the equity rating it a "buy" or better. This leaves ample room for potential downgrades that could spell trouble for DISH.
Traders should also be aware that DISH is currently scheduled to step into the earnings confessional on August 10. Analysts are anticipating a profit of 20 cents per share, matching its year-ago gain. The company's earnings history is rather dark. According to Zacks, the firm has missed the consensus estimate for the past five quarters. Another miss next week could send many of these bulls running for the exits, sending the shares lower once again.
