Schaeffer's Daily Market Blog Features: Procter & Gamble, Directed Electronics, Biovail, Panera...

CINCINNATI -- Among the stocks featured in the December 6 edition of Schaeffer's Market Blog are Procter & Gamble (NYSE:PG), Directed Electronics (NASDAQ:DEIX), Biovail (NYSE:BVF), Panera Bread Company (NASDAQ:PNRA), and Prudential Financial (NYSE:PRU). Schaeffer's Market Blog is just one of

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3:25 PM At the Car Wash

Not saying it never happens, but it is rare that I find a story in our local media (in Cincinnati) that I haven't seen much about on the national financial newswires. However, this afternoon I found a story concerning Procter & Gamble (NYSE:PG) that I found interesting. According to this article on the Cincinnati Enquirer's website, the consumer-products behemoth is "branching out into the service sector by launching a chain of high-end car washes." According to the article, trustees in Deerfield Township (which is north of Cincinnati) approved plans for an 8,900-square-foot car wash and (get this) gift shop on 2.6 acres. The car wash, named Mr. Clean Performance Car Wash on the approved site. The state-of-the-art facility is set to open by spring and will boast amenities the likes of a living-room-style waiting lounge equipped with flat-screen TVs and wireless Internet. The car wash will also include a gift shop where one can buy flowers, cards, snacks, and gift items; a cafe for refreshments and coffee; and a "theater-style" viewing area where you can watch your car get its bath. My favorite feature is the guns, where you can shoot soapy foam at your car from what are called "mega water guns," which are reason enough for me to shell out whatever price PG asks for the Fight-mobile's bath. The Fight-babies will have to fight with me for use of those guns.

Technically, PG is solid. Since July 2001, the equity has finished beneath its 10-month and 20-month trendlines a mere five times. Even though I would like to see more pessimism in PG's sentiment backdrop, it is hard to argue with its long-term technical performance, which is the sole reason for the firm's Schaeffer's Equity Scorecard reading of 7.0 out of a possible 10.

2:24 PM Directed Electronics Drops After Lowered Outlook

Audio equipment maker Directed Electronics (NASDAQ:DEIX) revised and lowered its 2006 outlook this morning. Stating lower-than-expected sales on satellite radio equipment as a major cause, DEIX placed pro-forma earnings between $1.04 and $1.08 per share on sales of $430 million to $440 million, as opposed to earlier predictions of between $1.09 and $1.13 per share on $440 million to $460 million in sales. Since Monday, DEIX has dropped sharply from former support at the 14 level, pulling its 10-day and 20-day moving averages into a bearish cross. In today's trading, the stock has lost nearly 15 percent to stand at $11.20 after finding support in the 11 area.

12:17 PM Biovail Approves Dividend Increase

This morning, Canadian drug-maker Biovail (NYSE:BVF) approved a 200-percent increase to its dividends. The new $1.50-per-share payout will come in quarterly increments of 37.5 cents per share. Along with this announcement came news that Kenneth Howling will succeed Charles Rowland as Financial Chief at BVF. As for fiscal 2007, the company predicts earnings of $1.70 to $1.80 per share on revenue of between $800 million and $850 million. The earnings are highly dependent, however, on the success of the planned launch of a generic Wellbutrin XL for the U.S. in January. The stock, which had been on a steady upswing on support of its 10-day and 20-day moving averages, jumped quickly this morning, gaining nearly two-and-a-half dollars per share in the early hours of trading. At last check, the stock is up 13 percent to stand at $21.32.

10:37 AM Panera Bread Falls Flat on Warning

Shares of Panera Bread Company (NASDAQ:PNRA) have dipped more than three percent so far today, after the company warned that last week's storms in the Midwest will impact 12 stores, which account for about 40 percent of its business. The company now expects fourth-quarter earnings of 62-65 cents per share, compared to the Street estimate of 67 cents per share.

The stock has been in decline mode since early April, losing more than 25 percent during this time frame. However, PNRA did stage a rebound recently, finding support at its 50-month moving average during August; but this trendline now resides some 15 percent below the security. With very little technical support residing between the shares at their 50-month trendline, a short-term bearish stance on PNRA may be the route to go.

10:33 AM Prudential Hits High

Prudential Financial (NYSE:PRU) hit a record high this morning. Yesterday, the life insurance and investment management specialist set a higher target for return on equity in future years, saying that it sees growth in some of its most profitable businesses. The stock's 10-month moving average has been a good friend since April 2003. Dips below this trendline in August and September this year were contained by the 20-month trendline, and a dip to the 71 level on September 9 presented a good buying opportunity, as it turns out; the stock has gained almost 22 percent since that date.

However, for PRU to continue higher, we'll have to rely on fundamental strength, because the sentiment backdrop doesn't hint at the presence of sideline money. Less than one percent of the stock's float is sold short, so there's little fuel for any potential short-covering rally. In the options pits, the firm earns a Schaeffer's put/call open interest ratio (SOIR) of 1.14, which indicates that puts and calls are almost equally popular in the front three months of options. This ratio lies in the 39th percentile, so it is a rather neutral reading.

For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&PAGE=1.

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Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method.