Zacks.com Announces that Bernie Schaeffer Highlights Options for the Following Stocks: Amerada...

CHICAGO -- Bernie Schaeffer's major concern with the 2005 market continues to center on the biggest capitalization blue-chip and tech names. Discover where this expert sees profits and read about options for Amerada Hess (NYSE:AHC), Kinder Morgan (NYSE:KMI), and Reynolds American (NYSE:RAI).

Highlights from the March issue, dated February 24th, Featured Expert column by Bernie Schaeffer include:

My major concern with the 2005 market continues to center on the biggest capitalization blue-chip and tech names. For those with time horizons of 6-12 months, I believe put plays in selected mega-cap names will prove to be highly profitable. Over the shorter term, I see profit opportunities on the call side in the small and mid-cap names.

Aggressive Portfolio

Amerada Hess - EXPECTATIONALANALYSIS(R) (NYSE: AHC) is just one of many oil stocks that continue to outperform the market. In fact, the security has outpaced the S&P 500 Index (SPX) since December 2003. Furthermore, the shares have rallied along the support of their 10-month moving average since November 2003. Despite the security's technical strength, investors remain confident that AHC is long overdue for a fall. Short interest for the stock rests near a multi-year high at 5.2 million shares, which account for more than six percent of the equity's float and are more than four times its average daily trading volume. AHC could thus enjoy a significant rally in a short-squeeze situation.

Kinder Morgan - EXPECTATIONALANALYSIS(R) (NYSE: KMI): According to Hoover's, KMI operates more than 35,000 miles of natural gas pipelines throughout the U.S. The company distributes natural gas to more than 240,000 customers in the Midwest, and is adding gas-fired power plants along its pipelines. Technically speaking, the security has been a stellar performer, outpacing the SPX on a monthly basis since June 1999. After a lengthy basing period in the 60 area, the shares have rallied along the support of their 10-week moving average since late August. In addition, KMI is trading at an all-time high as it soars along its rising 10-month trendline.

Reynolds American - EXPECTATIONALANALYSIS(R) (NYSE: RAI) has garnered a considerable amount of pessimistic sentiment lately. Despite a 14-percent decline in RAI shares sold short in February, it would still take more than 11 days to cover these bearish positions, increasing the chances of a short-covering rally. Furthermore, Zacks reports that all eight covering analysts rate the security a "hold." Any upgrades from this indecisive bunch could add fuel to RAI's rally. Technically speaking, the stock remains in a long-term uptrend, soaring more than 50 percent along the support of its 10-week and 20-week moving averages since May 2004.

Read Bernie's complete market commentary and get specific option recommendations on the stocks above as well as other stocks by clicking: http://at.zacks.com/?id=85

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