Schaeffer's Upon Further Review Highlights the Following Stocks: Bed Bath & Beyond, Del Monte Foods, Family Dollar Stores, Google, and Adobe Systems.

CINCINNATI -- Today's "Upon Further Review" from Schaeffer's Investment Research focuses on Bed Bath & Beyond (NASDAQ:BBBY), Del Monte Foods (NYSE:DLM), Family Dollar Stores (NYSE:FDO), Google (NASDAQ:GOOG), and Adobe Systems (NASDAQ:ADBE). "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:

Bed Bath & Beyond: In trading on Wednesday, Bed Bath & Beyond (NASDAQ:BBBY) saw a spike in call activity, as investors piled into the stock's 37.50 and 40 strikes in the July and August series. This increase in call activity indicates that investors had some rather high expectations for the shares ahead of the firm's earnings report. Before the open today, the firm posted earnings that matched the Street estimate, but gave a full-year outlook that was below the current consensus. To add to the injury, one brokerage firm downgraded the shares to "peer perform" from "outperform." The combination of high expectations and flat to lackluster earnings has sent the shares below former support in the 35-35.50 region. What's more, with optimism resting near extreme levels at the moment, BBBY could see additional declines in its future.

Del Monte Foods: Sticking with the earnings theme, Del Monte Foods (NYSE:DLM) posted earnings that beat the Street estimate by a penny and the company lifted its long-term sales growth rate. So, what's happened? The stock gapped higher on the news, but is quickly losing steam and is retreating back below resistance at its 20-day moving average. This trendline has guided the security lower since mid-May. Furthermore, the equity is facing long-term resistance at the 12 level, which the stock has not notched a monthly close above since February 2000. With the equity failing to plow higher on positive news, it appears that the shares may be poised for another test of support at the 10 level.

Click the following link to see a Weekly Chart of DLM since May 2003: http://www.schaeffersresearch.com/wire?ID=16278 .

Family Dollar Stores : Another stock struggling with resistance is Family Dollar Stores (NYSE:FDO). The company reported earnings that surpassed the consensus estimate, but the equity's rally was quickly halted by resistance at the 25.50 level. This region stopped rally attempts in the past for the shares and has also served as support. With this kind of technical congestion resting at 25.50, I would look for it to continue to hinder the stock. Furthermore, this region is also home to the equity's 10-week trendline, which has capped the shares since mid-May. Today's rejection mixed with signs of continued optimism from investors indicates that the shares could face additional weakness in the near term.

Click the following link to see a Daily Chart of FDO since December 2005: http://www.schaeffersresearch.com/wire?ID=16278 .

Google and Adobe Systems: Sometimes I get the feeling that I am far too negative in this column, so I've managed to find some positive things to say about a pair of companies. This morning, Adobe Systems (NASDAQ:ADBE) announced that it has signed a multiyear agreement with Google (NASDAQ:GOOG) to distribute the Google Toolbar with various Adobe products. Technically speaking, both equities are rolling higher from support and have steadily marched higher during the past several sessions. Furthermore, Google has jumped above the 400 level, which is the site of peak call open interest in the July series. Maybe investors aren't as outrageously optimistic as they usually are, indicating that there could be some sideline money available to drive the king of search engines higher again.

Click the following link to see a Daily Chart of GOOG since January 2006: http://www.schaeffersresearch.com/wire?ID=16278 .

The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRSC12M&PAGE=1 .

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 .