Schaeffer's "Behind the Headlines" Highlights the Following Stocks: Bristol-Myers Squibb, Monster Worldwide, and Red Robin Gourmet Burgers.

CINCINNATI -- Today's "Behind the Headlines" from Schaeffer's Investment Research focuses on Bristol-Myers Squibb (NYSE:BMY), Monster Worldwide (NASDAQ:MNST), and Red Robin Gourmet Burgers (NASDAQ:RRGB). "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: Bristol-Myers Squibb Strikes Deal with Otsuka Pharmaceutical

Bristol-Myers Squibb: This morning, Bristol-Myers Squibb (NYSE:BMY) announced that it has granted Otsuka Pharmaceutical exclusive rights in Japan to develop and commercialize investigational compound saxagliptin, which is being studied for the treatment of Type 2 diabetes. Otsuka will make an upfront payment to BMY under the agreement, with the firm also receiving milestone payments based on certain regulatory events, and sales-based payments following regulatory approval of the drug in Japan.

Following a lengthy consolidation below the 25 level, the shares have broken out to the upside and have rallied along the support of their 10-day moving average since early December. What's more, the stock has busted through staunch resistance at the 26 level. BMY has not logged a monthly close above 26 since February 2004.

Meanwhile, pessimism continues to permeate the security's sentiment backdrop. According to Zacks, 16 of the 17 analysts following the firm rate it a "hold" or worse. Any upgrades on the positive news could help to boost the shares.

Furthermore, short sellers continue to add to their bearish bets. In December, the number of BMY shares sold short increased by 25 percent. This growing skepticism amidst the stock's uptrend has bullish implication from a contrarian perspective.

Click the following link to see the monthly chart of BMY since December 2003: http://www.schaeffersresearch.com/wire?ID=17950

Monster Worldwide: Last night, Monster Worldwide (NASDAQ:MNST) reported that its board has elected Philip Lochner Jr. as a director, effective immediately. Lochner will join the special committee investigating the company's historical stock-option practices and serve on the committee addressing related civil litigation.

What's more, the company's board has approved cash payments to certain former employees to compensate for 230,000 vested options that expired while the company's stock-options plan was suspended during the period that the company wasn't current in its filings. The firm expects to record a related one-time expense of $5 million in the fourth quarter.

From a technical perspective, the equity is in an awkward position. The shares have been in an uptrend since late September, enjoying the support of their 10-day and 20-day moving averages. However, the security has stalled in the 47 region, which marks a 50-percent retracement of the stock's decline from its May peak of 59.99 to its June low of 34.75. This retracement level should strengthen resistance in this region.

Investors are also split on their outlook for the shares. Options players are skeptical, as the stock's Schaeffer's put/call open interest ratio of 1.16 is higher than 86 percent of those taken during the past 52 weeks. On the other hand, Wall Street is leaning toward the bullish camp, with 10 "buy" ratings and seven "holds."

Traders may want to put MNST on the backburner to now to see if the shares can pull away from resistance in the 47 region.

Click the following link to see the daily chart of MNST since May 2006 with 10-day and 20-day moving average: http://www.schaeffersresearch.com/wire?ID=17950

Red Robin Gourmet Burgers: Despite the equity's long-term uptrend, we continue to see signs of pessimism in the stock's sentiment Red Robin Gourmet Burgers: After the close on Tuesday, Red Robin Gourmet Burgers (NASDAQ:RRGB) announced that it has acquired the Puyallup restaurant in Washington state for net proceeds paid at the final closing of $5 million in cash. The firm expects a charge of a penny per share in the fourth quarter relating to the termination of the franchise agreement for the Puyallup restaurant.

Technically speaking, the stock initially rallied on the positive news, but was abruptly halted by resistance at the 36 level. This area has hindered the equity's rally attempts since it gapped sharply lower on November 3. Furthermore, the 36 level is home to the stock's declining 10-week moving average. This rejection could result in another pullback to support at the 34 level.

Meanwhile, options players are extremely optimistic. The stock's Schaeffer's put/call open interest ratio rests at an annual low of 0.33. In other words, options players have not been more bullishly aligned toward the equity during the past year. This optimism in the face of the equity's rejection could leave the stock vulnerable to another pullback.

Click the following link to see the daily chart of RRGB since October 2006: http://www.schaeffersresearch.com/wire?ID=17950

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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.