Schaeffer's S&P 500 Index Hot Stocks Features VERITAS Software, Electronic Arts, Forest Laboratories, Symantec, and Alcoa.

CINCINNATI -- Among the stocks featured in the December 14 edition of Schaeffer's S&P 500 Index Hot Stocks are VERITAS Software (NASDAQ:VRTS), Electronic Arts (NASDAQ:ERTS), Forest Laboratories (NYSE:FRX), Symantec (NASDAQ:SYMC), and Alcoa (NYSE:AA). Schaeffer's S&P 500 Index Hot Stocks 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. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRSHS1M&PAGE=1.

Schaeffer's S&P 500 Index Hot Stocks for Tuesday, December 14, 2004:

A daily feature available on SchaeffersResearch.com is the "SPX Hot Stocks" column. Each afternoon immediately prior to the close, we will provide a list of the day's top-20 performing stocks in the S&P 500 Index (SPX - 1,189.12) as well as the bottom-20 names. Featured along with this table will be news that is moving some of the shares.

NOTE: Stocks trading under $5 per share have been eliminated from this listing of the top-20 and bottom-20 performing stocks.

Reportedly, Symantec (NASDAQ:SYMC) and VERITAS Software (NASDAQ:VRTS) are close to closing a deal in which SYMC would acquire VRTS for more than $13 billion, becoming one of the largest software mergers ever. The deal would put VRTS's stock value at approximately $30 per share. The negotiations between the two companies have reportedly been taking place for more than a month. In a CBS MarketWatch article, Prudential Equity Group analyst, Michael Turits, stated that the deal would add to SYMC's earnings in 2005. Turits states, "We think the deal is a bold move to broaden the security leader (SYMC) across infrastructure software." Richard Williams, analyst at Garban Institutional Equities, reiterated a "sell" rating on SYMC along with his price target of $15 on the company. Williams believes that this acquisition is driven by the "inability of most software vendors to grow over the last two years coupled with an increasing preference by customers for integrated suites of products." The article cautions that there are still several issues left unresolved and that the talks could collapse. This news has sent the two companies to the opposite ends of the hot stocks spectrum. VRTS occupies the top spot, moving ahead by nearly eight percent, while SYMC has fallen more than 13.50 percent to find the bottom of the list.

Video-game maker Electronic Arts (NASDAQ:ERTS) is riding the wave of good news up the hot stocks list today. Yesterday, the software sector received an upgrade from J.P. Morgan Chase. ERTS followed this news up by announcing an exclusive five-year agreement with the National Football League (NFL) and Players Inc. to create interactive football games. The agreement exclusively allows ERTS to use NFL stadiums, players and teams in its video games. Adding to the momentum, Pacific Crest bestowed an upgrade from "sector perform" to "outperform" on ERTS. Credit Suisse First Boston reiterated the company at "outperform" and Piper Jaffray raised ERTS's target price from $55 to $65. ERTS has gained more than 5.50 percent in today's trading.

Forest Laboratories (NYSE:FRX) has gained nearly five percent after announcing that it has approved an increase in its buyback program. On July 20, the company authorized the repurchase of 20 million common shares. Today's increase moves that number to 30 million shares. FRX has already bought back 11.4 million shares under the authorization.

The final stock in our discussion today is blue-chipper, Alcoa (NYSE:AA). J.P. Morgan Chase downgraded AA from "overweight" to "neutral" and removed the metal-maker from its "focus list." The moves were driven by concerns over rising costs, negative currency implications, and sluggish demand from automotive and building materials markets. The brokerage believes that these costs will more than offset higher aluminum prices, leading to another earnings shortfall. AA has lost more than two percent in trading today.

Click the following link to see a Chart of the SPX 500 Index's Top 20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=12004

Click the following link to see a Chart of the SPX 500 Index's Top 20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=12004

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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.