Schaeffer's Daily Market Blog Features: Pier 1 Imports, Procter & Gamble, IBM, Costco Wholesale,...

CINCINNATI -- Among the stocks featured in the December 14 edition of Schaeffer's Market Blog are Pier 1 Imports (NYSE:PIR), Procter & Gamble (NYSE:PG), IBM (NYSE:IBM), Costco Wholesale (NASDAQ:COST), and LodgeNet (NASDAQ:LNET). Schaeffer's Market Blog is just one of the many free market commentaries

written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1 .

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9:49 AM Pier 1 Plunges on Earnings Report

This morning, Pier 1 Imports (NYSE:PIR) has dropped more than one percent after announcing a third-quarter loss of 83 cents per share. Excluding special charges and adoption of a new accounting rule, the loss from continuing operations came in at 53 cents per share. Sales for the quarter fell to $402.7 million, as same-store sales dropped 12.9 percent. Analysts had expected a loss of 34 cents per share on sales of $409 million.

PIR Chairman and Chief Executive Marvin Girouard did note that "trends so far in December are better than" the past two months. Girouard stated that sales of home furnishings have been "weak," but early sales of holiday merchandise "have been encouraging." The retailer announced that it would continue aggressive marketing while maintaining a close watch on inventory.

Technically, the outlook for PIR isn't all that good. Since March 2004, the equity has managed just three monthly closes above its 10-month trendline. Watch for this trendline to continue pushing the stock lower as it continues its downward trajectory.

11:00 AM Procter & Gamble Analyst Meeting Update

Earlier this morning, I noted that Procter & Gamble (NYSE:PG) confirmed its second-quarter earnings and sales forecasts. With roughly 90 minutes gone in the trading day, I thought I would take a look at how the Dow component is faring. Currently, the consumer-products giant is 0.25 percent higher, joining 25 other Dow components in positive territory.

Earlier this morning, the company's Chief Financial Officer Clayton Daley Jr. noted that "more than half our sales are from faster-growing, higher-margin, more asset-efficient businesses." The comment was made as PG began its annual analysts' briefing. In addition, the company noted that it is making "excellent progress" in its integration of the Gillette shaving business, adding that the brand's Fusion razor is on track to become a $1 billion brand.

11:55 AM NYSE & NASDAQ New Highs/New Lows With Equity Scorecard

In today's Trader's Blog, we included a chart of stocks that have hit a new high or a new low along with their Schaeffer's Equity Scorecard score. On today's list is IBM (NYSE:IBM), which hit a new high and sports a Scorecard score of 8.0 out of a possible 10. Make sure to visit our Trader's Blog to see the complete list.

12:23 PM Costco's Earnings Announcement

Earlier today, Costco Wholesale (NASDAQ:COST) reported a 10-percent increase in first-quarter income, accompanied by an announcement that it will take a $70 million second-quarter charge linked to stock-options grants. The retailer earned 51 cents per share during the quarter, with revenue of $14.15 billion. Analysts expected earnings of 50 cents per share on average sales of $14.06 billion. Earlier in the quarter, COST told its investors that it was worried that declining prices on certain electronics (especially flat-panel televisions) may hurt profit margins.

The other news that COST announced was that it would take a second-quarter, pretax charge of $70 million thanks to a hike in the price on certain stock options for more than 1,000 employees who are U.S. taxpayers. The company stated that the changes are being made in line with both its own stock-options inquiry and a November 30 ruling by the Internal Revenue Service. COST also noted that it would give employees money "to reduce adverse income-tax consequences from their options having been granted originally at prices lower than the revised prices."

1:03 PM LodgeNet Acquires Competitor

Thursday morning saw a new 52-week high for LodgeNet Entertainment (NASDAQ:LNET), a provider of interactive television systems. After Wednesday's close, LNET announced that it had sealed a deal to buy competitor On Command Corp. from Liberty Media Holding (LINTA). The deal will move LNET up from holding 20 to 25 percent of the market to slightly more than 50 percent. On a more bottom-line level, On Command's estimated 2006 revenue of $225 million will help to alleviate LNET's current $273 million in long-term debt.

At its pinnacle this morning, LNET was trading at $27.74. At last check, the stock was at $26.81, more than a 15-percent boost from yesterday's close, on volume of just over 786,000 shares.

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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About Schaeffer's Investment Research (www.SchaeffersResearch.com)

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 .