Schaeffer's Street Chatter Highlights the Following Stocks: Aeropostale, BioLase Technology, and Corning.

CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on: Aeropostale (NYSE:ARO), BioLase Technology (Nasdaq:BLTI), and Corning (NYSE:GLW). "Street Chatter" is a report that analyzes three newsworthy stocks that are generating a lot of attention on Internet message boards. "Street Chatter" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Street Chatter:

1. Aeropostale (NYSE:ARO) peddles its brand of apparel in more than 450 mall-based stores in 40 U.S., according to Hoover's. Yesterday evening, ARO reported that total sales rose 18.3 percent in September to $90.6 million. Same-store sales, on the other hand, rose just 1.9 percent, falling short of analysts' expectations for a five-percent rise.

Investors are keying in on the total sales figure, however, as ARO shares have gapped nearly five percent higher today. The stock is now perched above both its 10-day and 20-day moving averages for the first time since August 27. From a longer-term perspective, the shares continue to butt up against resistance at their 20-week moving average. The stock initially breached this still-ascending intermediate-term trendline in mid-September.

After an uptrend that lasted more than three months, Schaeffer's put/call open interest ratio (SOIR) for ARO reached a six-month peak last month of more than 0.86. Since then, the indicator has been settling lower and now weighs in at 0.54, which is still higher than 74 percent of the past year's worth of readings. Pessimism is running rampant among the short-selling crowd, who boosted the retailing stock's short-interest levels by 60 percent last month to 4.6 million. More than nine percent of the equity's total available float is now sold on the short side, providing a decent foundation for a potential short-covering rally in the future.

Wall Street analysts have a shade more confidence in ARO shares. Of the 11 brokerage firms following the stock, seven have named it a "buy," while four list the security as a "hold." There are currently no "sold" ratings to be found on ARO.

Click the following link to see the Weekly Chart of ARO Since January 2004 With 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=11368.

2. Dental equipment manufacturer BioLase Technology (Nasdaq:BLTI) lowered its outlook for the third and fourth quarter today, citing the cancellation of important sales events, including a meeting of the American Dental Association. The company now expects a third-quarter loss of between $11.5 million and $12.1 million. Looking further ahead, BLTI officials forecast fourth-quarter revenue of $17 million to $20 million, down from earlier estimates of up to $25 million. BLTI will visit the earnings confessional on October 27. Prior to today's news, Wall Street was targeting earnings per share of two pennies.

BLTI was halted during the first 15 minutes of trading before gapping lower and notching its lowest reading since February 2003. The stock has been mired in a downward spiral since the beginning of 2004. In late July, a modest bearish gap dropped the shares into single-digit territory.

On the options front, the equity's SOIR sits at 0.78, toward the middle of its yearly range. We would expect to see a bit more pessimistic positioning given the stock's foundering state. In today's trading, options players are scooping up positions at the December 12.50 call and put, possibly as a spread trade. Short interest is robust, at more than eight million shares, which constitutes 35 percent of the stock's float. What's more, it would take approximately 35 trading days to cover each and every shorted BLTI position. Given the way the stock is performing of late, however, a short-covering rally may not be in the cards anytime soon.

Click the following link to see the Weekly Chart of BLTI Since January 2004 With 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=11368.

3. Multi-faceted large-cap firm Corning (NYSE:GLW) said late yesterday that it would swallow a charge of almost $3 billion in the third quarter, largely related to write-offs related to the company's beleaguered telecommunications division. This morning, GLW opened lower and is trading nearly five percent in the red in late-afternoon activity. The stock has broken its recent uptrend and gapped beneath its 10-day and 20-day moving averages, forcing an advance toward a bearish crossover in these short-term trendlines.

SOIR for GLW plunged following August expiration and remains at a three-month low of 0.49, which is in the bottom one-third of the past year's worth of SOIR readings. The number of shorted GLW shares experienced a recent plunge as well, dropping 10 percent last month to 22.8 million shares. This represents less than two percent of the stock's float and could be covered in less than two trading days.

While the dearth of short sales suggests a fair amount of complacency, Wall Street is relatively skeptical. Of the 13 analysts following GLW, only six have named the stock a "buy" or better, leaving seven "hold" ratings on the shares.

Click the following link to see the Daily Chart of GLW Since September 2004 With 10-Day and 20-Day Moving Averages:: http://www.schaeffersresearch.com/wire?ID=11368.

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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.