Schaeffer's Upon Further Review Highlights the Following Stocks: General Motors, Apple Computer, Research In Motion Limited, Palm.

CINCINNATI -- Today's "Upon Further Review" from Schaeffer's Investment Research focuses on General Motors (NYSE:GM), Apple Computer (NASDAQ:AAPL), Research In Motion Limited (NASDAQ:RIMM), Palm (NASDAQ:PALM). "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:

General Motors: Kirk Kerkorian may have put the squeeze play on short sellers for General Motors (NYSE:GM) today. Following a letter from the billionaire urging GM to join the partnership between France's Renault and Japan's Nissan, shares of the Detroit darling are up nearly five percent at last check. Currently, more than 13 percent of GM's float is sold short, and with the stock's continued advance amid heavy pessimism on the Street, these negative Nancies are feeling even more pressure to buy back their positions. While GM has since pulled back from the 30 level in trading today, a close above resistance at the 29 level could solidify yet another support level for the equity. Keep your eyes peeled for comments later today from Renault and Nissan, as we could see another surge higher in GM on any positive comments.

Click the following link to see a Weekly Chart of GM since April 2006 with 10-day and 20-day moving averages: http://www.schaeffersresearch.com/wire?ID=16343

Apple Computer: It seems that the apple has fallen pretty far from the tree for Apple Computer (NASDAQ:AAPL). Today, the firm joined the ever-growing list of companies with stock-option grant issues after AAPL announced the initiation of an internal probe of executive stock options granted during a four-year period. With the shares down roughly three percent on the news, I believe that AAPL could have quite a bit of trouble bouncing back from today's losses. In fact, it is the wealth of optimism on the Street that is working against the equity. With no fuel for a short-covering rally, 10 of the 14 covering analysts issuing "buys," and options players have only been more bullish 10 percent of the time during the past year. Those bulls are a fickle lot, and negative news like this could prompt some sustained selling from the group.

Click the following link to see a Weekly Chart of AAPL since May 2006 with 10-day and 20-day moving averages: http://www.schaeffersresearch.com/wire?ID=16343

Palm: After this morning's disappointing sales forecast, shares of Palm (NASDAQ:PALM) are surviving on technical support alone to contain their losses. The stock plowed right through potential support at the 17.50 level, site of peak put open interest in the front three months of options. As contrarians, we have seen that heavy accumulations of put open interest can provide options-related support for a stock. With this key region of support gone, PALM is left with long-term support at the 16 level. The shares have rebounded from this region several times in the past couple of months. Some profit taking from the short-covering crowd could also be bolstering the equity, as more than 17 percent of PALM's float is sold short.

Research in Motion Limited: With a 35-percent improvement in quarterly sales and earnings that fell in line with analyst estimates, shares of Research in Motion Limited (NASDAQ:RIMM) are having a rather solid day. While Wall Street is already rather bullish on RIMM, one of the remaining bears on the stock upgraded the stock to "buy" from "hold" on the news. Prior to this upgrade, Zacks reported that seven of the 18 brokerage firm's offering up an opinion slated RIMM as a "hold" or worse. However, despite all this positive sentiment levied against RIMM today, the shares are finding some rather staunch resistance at the round-number 70 level. Along with the technical resistance in the area, we also have a wealth of options-related resistance, as nearly 13,000 of these bullishly oriented contracts call this strike home in the July series. I would expect RIMM to brick off this region for most of the day.

Click the following link to see a Daily Chart of RIMM since May 2006 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=16343

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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.