Schaeffer's Street Chatter Highlights the Following Stocks: Anheuser-Busch, Biogen Idec, Elan, and Wachovia.

CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on: Anheuser-Busch (NYSE:BUD), Biogen Idec (Nasdaq:BIIB), Elan (NYSE:ELN), and Wachovia (NYSE:WB). "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. Morgan Stanley said today that the beer industry saw a 0.8-percent increase in volume growth last month, helped in part by a Labor Day weekend that fell later in the month than last year's holiday. Anheuser-Busch's (NYSE:BUD) leading brand, Bud Light, gained a full point in terms of market share, but other brands lost some ground. BUD will belly up to a barstool in the earnings confessional next Wednesday, where analysts are expecting the Budweiser parent to have collected 85 cents per share, a nickel above year-ago results. Over the past five quarters, BUD has matched analysts' estimates on four occasions and topped Wall Street expectations just once.

Technically speaking, BUD is currently wedged between potential support and potential resistance. The resistance takes the form of the 51 level, which acted as support for the shares earlier this year but has thwarted recent uplegs during the past several weeks. On the upside, BUD continues to mount a long-term uptrend, which has been guided higher over the past decade by the stock's ascending 50-month moving average.

Pessimism has built on BUD as the stock wrestles with the 51 mark. The Schaeffer's put/call open interest ratio (SOIR) for BUD has been on the rise for a couple of months and is now at 1.18, with total short-term put open interest outweighing total call open interest by a relatively hefty margin. This reading is higher than 86 percent of the past year's worth of SOIR data. On the Street side, analysts have handed BUD seven "buy" or "strong buy" readings, coupled with seven "hold" readings. There are currently no outright "sell" designations on the security.

Click the following link to see the Daily Chart of BUD Since April 2004:

http://www.schaeffersresearch.com/wire?ID=11469 .

Click the following link to see the Monthly Chart of BUD Since April 1995 With 50-Month Moving Average:

http://www.schaeffersresearch.com/wire?ID=11469 .

2. According to Dow Jones newswires, early rumors this morning noted that Biogen Idec (Nasdaq:BIIB) was mulling over a possible buyout bid for Elan (NYSE:ELN), its partner in the multiple sclerosis treatment Antegren. Irish firm Elan quickly came to its own defense, saying it wasn't for sale and to disregard any speculation to the contrary.

On the technical front, BIIB has done little to wow investors of late. Since spiking higher in mid-February on positive Antegren news, the stock has consolidated sideways. BIIB is now trading below its 10-week and 20-week moving averages, trendlines which have failed to provide significant directional clues for the past several months.

Even though BIIB hasn't made much headway, its SOIR has been on the rise, rocketing higher over the past several weeks. The sentiment indicator now stands at 0.93, a new annual peak. Meanwhile, short sellers have taken a stand against BIIB shares, loading up on 14 million shorted shares. These bearish positions would take more than one week to cover at the stock's average daily volume, in the event that BIIB is able to break free of its consolidation range.

BIIB watchers should be aware that the company is readying itself for its third-quarter earnings announcement next Wednesday, October 27. The consensus estimate stands at 35 cents per share, nine cents better than last year's results for the same time period. BIIB has been inconsistent in the earnings confessional, with two positive surprises, one downside surprise, and two reports that were equal to analysts' expectations.

Click the following link to see the Weekly Chart of BIIB Since December 2003 With 10-Week and 20-Week Moving Averages:

http://www.schaeffersresearch.com/wire?ID=11469 .

3. According to Hoover's, Wachovia (NYSE:WB) is the fourth-largest banking institution in the U.S. Last Friday, the firm announced third-quarter earnings of 96 cents per share, above year-ago results of 83 cents per share. Excluding items, WB collected 88 cents, a penny above consensus expectations. The company's net rose 14 percent during the period. This morning, WB officials announced plans to boost its quarterly dividend payout by 15 percent to 46 cents from 40 cents. The first new dividend will be handed out on December 15 to shareholders of record by November 30.

WB reached a new seven-month high today, eclipsing potential short-term resistance near the 48 level. Earlier this month, the stock was able to spring higher following a retest of support from its 10-week moving average.

Pessimism is barreling down on WB in the form of increased short-interest activity and a historically high SOIR. The number of shorted WB shares grew by 26 percent last month to 31 million, resulting in a steep short-interest ratio of almost 10 days to cover. If the stock continues to motor higher, these bearish speculators could scramble to cover their positions, resulting in additional rally fuel. The equity's SOIR spiked higher this morning following October options expiration, which resulted in a mass purging of call open interest. The indicator is now just 10 percent away from a new annual peak at 0.62.

Wall Street is feeling slightly more favorable toward the stock. According to the latest Zacks (www.Zacks.com) data, there are 14 "buy" ratings on the stock, six "holds," and a lone "sell" designation.

Click the following link to see the Weekly Chart of WB Since March 2003 With 10-Week and 20-Week Moving Averages:

http://www.schaeffersresearch.com/wire?ID=11469 .

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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 .