Schaeffer's Street Chatter Highlights the Following Stocks: Chesapeake Energy, Verizon Communications, Ford Motor, and Cisco Systems.

CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on: Chesapeake Energy (NYSE:CHK), Verizon Communications (NYSE:VZ), Ford Motor (NYSE:F), and Cisco Systems (NASDAQ:CSCO). "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:

Chesapeake Energy: After the closing bell Monday, Chesapeake Energy (NYSE:CHK) reported first-quarter earnings of $624 million, or $1.44 per share. Excluding special items, the company earned $444 million, or $1.07 per share. Revenue came in at $1.95 billion. Analysts were expecting a profit of 98 cents per share and revenue of $1.5 billion. Heading into the report, CHK had pulled back to potential support at its 40-week moving average - a trendline the shares have not breached since their inception. However, CHK did close beneath heavy call open interest at the 32.50 level. However, the shares have moved above this level sharply in trading today and are looking to challenge former resistance at the 33.50 level. Should the shares break through this level as well, the next significant level of resistance lies at the 35 level, which is a front runner for the title of peak call open interest in the front three months of options, as well as a significant region of technical resistance.

Click the following link to see a weekly chart of Chesapeake Energy since January 2006 with 40-week moving average: http://www.schaeffersresearch.com/wire?ID=15915 .

Verizon Communications: Blue-chip telecommunications specialist Verizon Communications (NYSE:VZ) also stepped up to the earnings podium today, reporting a first-quarter profit of $1.6 billion, or 56 cents per share. Excluding certain items, adjusted earnings were 60 cents per share. Analysts were expecting a profit of 59 cents per share. Despite an initially positive reaction to the news, shares of VZ have slipped lower, and were last seen up by a mere 0.40 percent. One catalyst for this pullback could be resistance at the stock's 80-day moving average, which has recently proven to be quite a roadblock for the equity. What's more, peak call open interest for the front three months resides at the 32.50 level, with the 35 level making a run at this title today on descent volume. Should the stock slip back beneath this region, it could provide yet another hurdle for the shares to overcome, making a resumption of an uptrend that is much more difficult for the equity. However, puts were slightly more active heading into this morning's report, prompting a rise in VZ's Schaeffer's put/call open interest ratio (SOIR). With the equity hovering just above its 20-week moving average, the security could find a bit of support.

Click the following link to see a daily chart of Verizon Communications since January 2005 with 80-day moving average: http://www.schaeffersresearch.com/wire?ID=15915 .

Ford Motor: Vehicle sales arrived this afternoon, and Ford Motor (F) is suffering a bit following the report. The company stated that U.S. vehicle sales fell 6.6 percent in April, with car sales advancing 8.3 percent and Ford-branded truck sales falling 15.5 percent. The firm stated that it plans to launch "Bold Moves" tonight, a new marketing communications platform that will showcase F products, customers, and employees making "bold moves" in their lives. Hopefully, these bold moves will do something to inspire F shares, as the stock has been locked in a downtrend for quite some time. In fact, F's 80-month and 160-month moving averages are poised for a bearish cross, which could bode ill for the equity.

Click the following link to see a monthly chart of Ford Motor since August 2001 with 80-month and 160-month moving averages: http://www.schaeffersresearch.com/wire?ID=15915 .

Cisco Systems: With earnings looming just over the horizon on Tuesday next week, calls on Cisco Systems (NASDAQ:CSCO) are becoming considerably more active on the security. The degree of this activity has forced CSCO's SOIR to trend steadily lower during the past month, placing a pretty big hurdle at the May 22.50 strike. Not only is this level home to peak call activity for the front three months of options, but CSCO hasn't even approached this level on a technical basis since July 2004. Looking toward the company's earnings report, analysts are currently expecting a profit of 24 cents per share, a penny better than last year. However, WhisperNumber.com indicates that CSCO's "whisper" number resides at 27 cents per share, making the equity one to place on your shorting radar with expectations apparently set pretty high heading into next week.

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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 .