Schaeffer's Street Chatter Highlights the Following Stocks: Apollo Group, Krispy Kreme Doughnuts, Symantec.

CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on: Apollo Group (NASDAQ:APOL), Krispy Kreme Doughnuts (NYSE:KKD), Symantec (NASDAQ:SYMC), and Veritas Software (NASDAQ:VRTS). 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. For-profit education concern Apollo Group (NASDAQ:APOL) reported its first-quarter earnings results earlier today. The company collected 58 cents per share in the period, topping analysts' expectations by a penny and swooping past year-ago results by more than 30 percent, or 14 cents per share. Revenue surged about 30 percent to $534.9 million, but ad spending increased between five and six percent. Looking across the horizon, APOL targets second-quarter earnings per share of 46 cents, on par with Wall Street's consensus view. Revenue targets are between $507 million and $511 million, narrowly missing analysts' expectations of $511.6 million.

APOL shares are declining today as investors translate their earnings report into what looks like a potential slowdown in revenue collection. The stock has surrendered more than five percent in today's session, moving below its 10-day moving average and beneath short-term support at the 84 level. APOL has also inched back below its 10-month moving average, above which the equity has been unable to achieve a monthly close since July. On the up side, the security's 10-week and 20-week moving averages appear poised to complete a bullish crossover.

A long-term view of the stock's Schaeffer's put/call open interest ratio (SOIR) shows that the indicator has been trending slowly higher in a pattern of higher highs and higher lows since mid-2003. A closer view reveals that the SOIR bottomed out in mid-October from a short-term decline and has been moseying higher ever since. Specifically, the SOIR reading now stands at 1.33, in the 71st annual percentile. Short interest rose modestly over the last reporting period to about nine million shares. This represents roughly six percent of the available float for trading on APOL. Wall Street is currently split in its opinion toward the education company. According to Zacks (www.Zacks.com), there are eight "buy" ratings on APOL, seven "hold" ratings, and just one "sell" designation.

Click the following link to see the Daily Chart of APOL Since August 2004 With 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=12032 .

2. First, the bad news for Krispy Kreme Doughnuts (NYSE:KKD) . After missing its original 10-Q filing deadline with the Securities Exchange Commission last Friday, the confectioner missed its extension deadline late Wednesday night. Companies are given 40 days from each quarter's end to file this report. Although KKD's latest quarter closed on October 31, the firm says it is still working through various franchise issues. The good news, however, is that an independent law firm has ruled that there is no evidence of improper conduct with relation to accounting errors at KKD. This ruling hereby concludes one out of three investigations into the firm's financial practices.

KKD has fallen on rough times of late, losing 80 percent of its value over the past 18 months. The stock perked up slightly today, rallying more than 12 percent, but it is finding staunch resistance in the form of its 20-week moving average, which has acted as a solid bulwark since mid-March.

There are definitely some signs of pessimism toward the stock, which is not surprising given its disappointing performance. KKD is (and has been for some time) one of the most heavily-shorted issues on the New York Stock Exchange. There are almost 25 million shorted KKD shares, which amounts to about 43 percent of the equity's total float. What's more, this short interest is more than 17 times the stock's average daily volume. If the stock could spark a rally, short-covering activity could help intensify any strength. Only five brokerage firms currently follow the shares, just one of who rates KKD a "buy," two of whom think it merits a "hold" rating, and a pair of analysts who lists the security as an outright "sell."

On the options front, the SOIR for KKD has been moving higher over the past several weeks after dropping off sharply following October options expiration. Call open interest and put open interest are near parity, as the reading stands at 0.99, in the 53rd annual percentile. In today's trading, the December 12.50 call has seen more than 7,000 contracts change hands on this out-of-the-money, front-month position, which was previously home to about 6,600 open calls. The January 10 and 12.50 puts are also seeing notable action today.

Click the following link to see the Weekly Chart of KKD Since July 2003 With 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=12032 .

3. More merger news came across the wire as Symantec (NASDAQ:SYMC) confirmed its $13.5 billion buyout offer of Veritas (NASDAQ:VRTS) . The merger, which was hinted at on Tuesday, values VRTS shares at a 9.5-percent premium over Wednesday's close. SYMC, the parent of Norton and other security software brands, hopes the acquisition of VRTS and its data-management software business will help extend its business into both the consumer and the business marketplaces. Following the report, Prudential reduced its rating on the stock to a "neutral" from an "overweight," while Avondale Partners reiterated its "market perform" rating on the shares. SYMC and VRTS are two of the three-most-active names trading on the Nasdaq Composite today.

SYMC is down about eight percent on the news, while VRTS is trading slightly lower. SYMC reached a new annual peak on December 6 but has lost one-quarter of its value during the past week-and-a-half due to the merger proceedings. The stock now appears poised to close the week beneath its 10-week and 20-week moving averages for the first time since mid-July.

The equity's SOIR plunged sharply after October options expiration and never quite recovered. In fact, the indicator now weighs in at 0.54, just one percent shy of an annual low. SYMC options pits are bustling with activity today, most notably at the January 27.50 call, which is the most-active call trading on the Pacific exchange. Over 76,000 contracts have changed hands today on this position, which was previously home to only 28,000 contracts. Other options strikes seeing remarkable volume include the January 25 call and put, the December 25 call, and the January 30 call.

Click the following link to see the Weekly Chart of SYMC Since July 2004 With 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=12032 .

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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 .