Schaeffer's Upon Further Review Highlights the Following Stocks: Movie Gallery, BMC Software, Ryland Homes, SanDisk, and Circuit City Stores.

CINCINNATI -- Today's "Upon Further Review" from Schaeffer's Investment Research focuses on Movie Gallery (NASDAQ:MOVI), BMC Software (NYSE:BMC), Ryland Homes (NYSE:RYL), SanDisk (NASDAQ:SNDK), and Circuit City Stores (NYSE:CC). "Upon Further Review" is a report that analyzes newsworthy stocks that are generating a lot of attention on Wall Street. "Upon Further Review" is published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research.

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Upon Further Review:

Movie Gallery: When the market opened this morning, shares of Movie Gallery (NASDAQ:MOVI) broke through long-term resistance at the six level, and haven't looked back since. The stock has been a strong performer during the past month, rallying nearly 170 percent since setting a near-term bottom on May 1; comparatively, the S&P 500 Index has dropped nearly two percent during the same time frame. It seems that many investors expected MOVI to meet resistance at the six level once again, much as the shares did from December 2005 though February. However, when the stock breached this long-term level of resistance, MOVI quickly became a momentum play on the day, with the stock advancing sharply on heavy volume. Furthermore, short sellers are feeling the heat on this move, as more than 56 percent of MOVI's float is sold short. With momentum already behind the security, the addition of some potential short covering on this move higher seems to have only exacerbated the equity's strength on the session.

Click the following link to see a daily chart of MOVI since December 2005: http://www.schaeffersresearch.com/wire?ID=16156

BMC Software: Brokerage action seems to have put the squeeze on short sellers today, with BMC Software (NYSE:BMC) jumping more than 4.5 percent after being upped to "outperform" from "market perform." Currently, it would take more than eight days to cover the roughly seven million BMC shares sold short. What this means is that if the security can continue to move higher on today's news, these shorts could be squeezed into buying back their bearish bets, thus sending the shares even higher. However, while the shares have reclaimed key support at their rising 50-week moving average on the news, it seems that resistance at their 20-week trendline has halted the equity's advance. But, if the shares can manage to best this trendline in today's trading, we could see a continued advance from the shares, as investor sentiment is skewed heavily toward the negative side of the spectrum.

Click the following link to see a weekly chart of BMC since April 2005 with 20-week and 50-week moving averages: http://www.schaeffersresearch.com/wire?ID=16156

Ryland Homes: Negative guidance from fellow homebuilder Standard Pacific (SPF) has really hit home in the housing sector today. Ryland Homes (NYSE:RYL) is continuing its recent descent, having been rejected by resistance at the 50 level and tagging a new annual low on the news. However, the stock is now perched on its 50-month moving average. In April, RYL breached key support at its 20-month moving average, leading to a sharp sell-off in the equity. A similar breach of the 50-month trendline could elicit a similar sharp decline in the shares. On the other hand, a rebound from this long-term support level could provide a nice rebound for RYL, as more than 16 percent of the equity's total float is sold short.

Click the following link to see a Monthly chart of RYL since August 2000 with 20-month and 50-month moving averages: http://www.schaeffersresearch.com/wire?ID=16156

SanDisk: Semiconductor concern SanDisk (NASDAQ:SNDK) is up nearly three percent today after an upgrade to "outperform" from "peer perform." But while these uplifting comments have boosted the shares, it seems that the fuel has run out at the 57 level. This region of support/resistance limited SNDK's upside in mid-March, and supported the equity following a breakout to the upside in early April. However, an intraday chart indicates that the shares could have quite a hurdle to overcome in this region before they can move higher.

Click the following link to see an intraday chart of SNDK for June 5, 2006: http://www.schaeffersresearch.com/wire?ID=16156

Circuit City Stores: Circuit City Stores (NYSE:CC) was also the recipient of an upgrade this morning, being boosted to "outperform" from "market perform." But the shares are finding quite a bit of trouble in the 31-31.50 region. In fact, CC seems to have settled into a double-top formation that could signal that the shares are set for further losses. On May 12, the shares peaked at 31.54 before being sharply rebuffed. Today, CC fell short of this mark, topping out at 30.86 before being turned away. What's more, this region has stymied the security for the past several sessions, lending strength to a potentially sharp rejection in the area.

Click the following link to see a daily chart of CC since April 2006: http://www.schaeffersresearch.com/wire?ID=16156

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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.