Thursday, December 10, 2009

Analogic (ALOG) - Waiving the White Flag?

ALOG is trading at around 35.30; down from poor earnings. The IV30™ is down from earnings which were announced AMC yesterday. The LIVEVOL™ Pro Summary is below.

The company averages 220 option contracts traded a day; it has traded over 5,000 options with an hour to go. The big trade was a 5,000 lot - a sale of the Jan 40 calls @ 0.25. You can see the Company Tab snap and the largest trades snap. Note also that the stock volume is higher today than usual (click the images to enlarge).

The Options Tab (snap below - click to enlarge) shows that the OI in the Jan 40 calls is small(ish) - the trades today were opening. However, OI in the Jan 45 calls is large - about 5,000.

Looking through Level II on the Options Tab I found the date that the Jan 45 calls traded. It was Dec. 4. The Time & Sales Tab from that date on those options is below. We can see those calls were also sold 4500x. They traded 0.35 versus 0.30 x 0.55 market (very likely a sale). You can click the image below to enlarge it.

The Charts Tab (snap below - click to enlarge) shows the stock price plummeting over the last week - and continuing to do so after earnings.

Even though stock has traded much more actively today I do not think these calls are trading tied to stock (I don't actually know for sure). The company confirmed its 0.10 dividend ex in January. The Earnings & Dividends Tab snap below (click to enlarge) shows that company has disapointed for the last three quarters. Further, the company has a total of 0.08 in earnings in six months and they have paid out 0.20 in dividends.

I'm not sure what's going on, but looking at the dipping stock chart, consecutive missed earnings, a dividend payout that is 250% of earnings over the last 2 cycles and 10,000 calls sold in six calendar days. Kinda looks like they are waiving the white flag...

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