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Schaeffer's Street Chatter Highlights the Following Stocks: Apple Computer, Corning, and Nokia.

CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on: Apple Computer (Nasdaq:AAPL), Corning (NYSE:GLW), and Nokia (NYSE:NOK). "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.

For additional information about this report or to have it delivered to you free via email every day click on the following link: http://www.schaeffersresearch.com/redirect.aspx?CODE=PRSC1M&PAGE=1 .

Street Chatter:

1. Bear Stearns issued a downgrade on Apple Computer (Nasdaq:AAPL) today, moving it to a "peer perform" rating from an "outperform." The brokerage firm cited valuation concerns and said any good news for the company might already be factored into the share price. Stearns also said it doubts AAPL's decision to sync its iTunes service (used for downloading music) with only the iPod device. Currently, users can listen to music over their computers and burn CDs with iTunes, but other digital music players are unable to connect to the service. Prior to this downgrade, AAPL was listed a "buy" at nine brokerage houses, with eight "hold" ratings in residence and zero outright "sells."

AAPL shares were not daunted by this downgrade. The stock made a brief reversal but quickly found support from its ascending 10-day moving average. From a longer-term perspective, the stock has been in a nice solid uptrend since May 2003.

Schaeffer's put/call open interest ratio (SOIR) is on the rise for AAPL, indicating some growing skepticism among the options-trading community. Since bottoming out at the 0.36 mark in late August, the indicator has grown to 0.44. While still lower than 66 percent of the past year's worth of readings, the SOIR's upward trajectory is encouraging from a contrarian perspective.

Click the following link to see the Daily Chart of AAPL Since May 2004 With 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=11068 .

2. Wednesday evening, Corning (NYSE:GLW) reaffirmed its third-quarter earnings guidance of 10-12 cents per share. The fiber-optics firm also said revenue should total between $950 million and $1 billion. Fiber-optic shipments are now expected to rise five-15 percent from the second quarter, up from the originally projected pullback of 10-15 percent.

GLW has charged eight percent higher today, gapping above its 10-day and 20-day moving averages. Bearing down on the stock from overhead, however, is its 10-week moving average, which has acted as resistance throughout the past several weeks. Since late-September of last year, GLW has enjoyed support from the 10 level, which should continue to buttress the stock in spite of overhead technical challenges.

On the sentiment front, the SOIR for GLW weighs in at 0.58, which is higher than 70 percent of the past year's worth of readings and thereby indicates some bearishness from the speculative crowd. Pessimistic sentiment is also evidenced by the 12.6-percent increase in GLW shorted shares last month to 25.4 million. The resultant short-interest ratio is not terribly daunting, however, at just 2.9 days to cover.

Click the following link to see the Weekly Chart of GLW Since October 2003 With 10-Week Moving Average: http://www.schaeffersresearch.com/wire?ID=11068 .

3. Nokia (NYSE:NOK) is today's second-most active stock trading on the New York Stock Exchange. Spurring this rush of attention was the telecommunications firm's third-quarter guidance, which lifted expectations for both sales and earnings. NOK now expects a greater degree of success thanks to increased demand, rising sales, and cost-control measures.

The shares have advanced almost eight percent today and have hurdled beyond their 20-week moving average for the first time since mid-March. The next technical challenge for NOK is the 14 level, which served as support in April and July 2003 but could now serve as resistance. In June, NOK briefly edged above this threshold only to violate it in early July.

The equity's SOIR has been declining over the past six months and now stands at 0.39, which is just seven percent away from an annual low. In today's options activity, the NOK October 15 call has been especially active, with 10,000 contracts trading on open interest of 47,000. Given the stock's positive momentum today, it is possible that many of these are liquidations.

In other sentiment news, Zacks (www.Zacks.com) reports that NOK has earned a "buy" rating at 15 brokerage houses. There are 11 analysts who think NOK worthy of a "hold," while three advise a "sell" on the security.

Click the following link to see the Weekly Chart of NOK Since March 2003 With 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=11068 .

The best way to take advantage of the timely Schaeffer commentaries is to sign up to receive their free e-newsletters -- Opening View, Midday Report, 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=PRSC1M&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 .
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Date:Sep 9, 2004
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