Schaeffer's "Behind the Headlines" Highlights the Following Stocks: D.R. Horton, M/I Home, and KB Home.

CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on D.R. Horton (NYSE:DHI), M/I Home (NYSE:MHO), and KB Home (NYSE:KBH). "Behind the Headlines" is a report that analyzes newsworthy stocks that are generating a lot of attention on Wall Street. "Behind the Headlines" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Behind the Headlines:

D.R. Horton: Home builder D.R. Horton (NYSE:DHI) was hit with a mix of news today. The firm announced that fourth-quarter net sales orders plunged 34 percent to 10,430 homes, or $2.5 billion, from 13,950 homes, or $3.8 billion. Furthermore, the firm's rate of homes cancelled divided by gross homes sold rose to 40 percent from 29 percent. On the other hand, the security was upgraded by J.P. Morgan from "neutral" to "overweight." Technically speaking, the security rallied on the news, but was promptly stopped by resistance at the 25 level. This region has hindered the stock's rally attempts since June. What's more, the 25 strike is the site of peak front-month call open interest with more than 16,400 contracts. This hefty accumulation of bullish bets could also serve as a layer of options-related resistance during the near term.

Click the following link to see a daily chart of DHI since March 2006: http://www.schaeffersresearch.com/wire?ID=17520.

KB Home: Sticking with the home-builders sector, KB Home (NYSE:KBH) announced today that it estimated third-quarter earnings results of $155 million, or $1.93 per share. This represents a drop of 32 percent from the same period a year ago. The company had previously reported a six-percent rise in third-quarter revenue to $2.67 billion. The home builder hasn't filed its third-quarter results with the Securities and Exchange Commission as it is still reviewing accounting for stock-option grants. The shares rallied more than two percent, but are facing similar resistance as DHI in the 47-48 region. This area has tripped up the equity since June. However, the stock has a little room to run before it encounters potential options-related resistance. Peak October call open interest sits at the 50 strike, with roughly 10,200 contracts. In other words, the stock can increase approximately 9.3 percent before hitting the 50 strike.

Click the following link to see a daily chart of KBH since April 2006: http://www.schaeffersresearch.com/wire?ID=17520.

M/I Home: Meanwhile, M/I Homes (NYSE:MHO) slashed its 2006 earnings outlook, citing challenging market conditions, specifically increased cancellation rates for new contracts, weak demand, and inventory oversupply in most of its markets. The security is a bit of a technical crunch at the moment as it rests on support at its ascending 20-day moving average, but continues to be hampered by resistance at the 37 level. From a longer-term perspective, the equity has created a series of lower highs, and appears poised to start the next leg of its downtrend. Furthermore, the stock is facing staunch resistance at the 38 level, which is home to its 10-month moving average.

Click the following link to see a daily chart of MHO since April 2006 with 20-day moving average: http://www.schaeffersresearch.com/wire?ID=17520.

The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day and get entered to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROAW13M&PAGE=1.

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.