Schaeffer's Street Chatter Highlights the Following Stocks: International Rectifier.

CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on: International Rectifier (NYSE:IRF). "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:

International Rectifier

According to Hoover's, International Rectifier (NYSE:IRF) is a top maker of power semiconductors, which refine the electricity flowing into a device from a battery or a power grid, enabling more efficient operation. Some of the company's products are used in consumer appliances, automobiles, computers, communication devices, lighting systems, and military equipment. IRF has added more than two percent today following news that the company is exploring the potential sale of its non-focus products business, which includes its Non-Aligned Products and Commodity Products segments.

Recently, IRF broke through resistance at the 42 level, which it had not closed above since the beginning of October. The next hurdle on IRF's move higher is the 45 level. On a weekly chart, notice that 45 has alternated as resistance and support throughout the past three years. Also notice that IRF is riding along the support of its 10-week moving average. The last time the equity finished a week below this trendline was at the end of December 2005.

In order to break through resistance at the 45 level, the stock may need a little more help than its 10-week moving average. Enter the company's 80-month moving average. The shares recently reclaimed the support of this powerful moving average. What's more, it is steadily making its way higher. Of course, the monthly chart also shows exactly how strong the 45 level's resistance could be. This trendline's support could be enough to help break through this resistance and make a run higher.

Okay kids, time to put on our thinking caps. Use your imagination and draw a line along the 25 level, do you see the trading range? Good, I thought you might. You can now take the thinking caps off, and the blondes out there can try to get the line off their computer monitor (just don't use the Wite-Out!). Just kidding of course; my wife is a blonde.

Let's take a look at IRF's sentiment backdrop:

--Percent of analysts tracked by Zacks who rate the stock with a "hold" or worse: 85%

--Number of analysts tracked by Zacks: 13

--Short interest as a percent of float: 8.63%

--Short-interest ratio: 5.39

--Schaeffer's put/call open interest ratio (SOIR): 0.73

--SOIR percent rank: 55%

--Overall Schaeffer's Equity Scorecard rating: 6.0

When I look at this sentiment makeup, I am a bit enthused about the short interest and analyst data. More than eight percent of IRF's float is sold short, and it would take more than five days to cover these shorted shares. This combination could provide more than enough fuel to fire a short-covering rally on any good news. That is one way that IRF could break through 45.

Another way to break through overhead resistance would be through upgrades. According to Zacks, 11 of the 13 analysts covering IRF rate it a "hold" or worse. If this dour group issues upgrades, the shares could receive the boost needed to break through 45.

Options players are quite tepid toward IRF, which should come as no surprise given the fact that the stock is approaching some rather serious resistance.

How lucky do you feel? If you think that IRF is destined to break through that 45 barrier, you could check out that June 45 call (IRFFI) with an ask price of $1.80. On the other hand, you could look to the put side if you think the resistance at 45 can't be broken.

Click the following link to see a Weekly Chart of IRF since January 2003 with 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=15795 .

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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 .