Schaeffer's Street Chatter Highlights the Following Stocks: Brinker International, Qualcomm, and Research in Motion Limited

Business Wire, Dec 22, 2004

CINCINNATI -- Today's "Street Chatter" from Schaeffer's Investment Research focuses on: Brinker International (NYSE:EAT), Qualcomm (NASDAQ:QCOM), and Research in Motion Limited (NASDAQ:RIMM). 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. Brinker International (NYSE:EAT) is one of the nation's leading authorities on casual dining, with Chili's Grill & Bar, Romano's Macaroni Grill, and On the Border under its umbrella. Earlier today, the company resolved a dispute with the Internal Revenue Service that largely had to do with tip reporting. EAT will pay $17.3 million in settlement costs, the bulk of which (all but $400,000) will be covered by tax credits. In addition, EAT will restate its financial records from fiscal 2002 through the first quarter of fiscal year 2005 and will redeem all outstanding senior convertible debentures, which were due in 2021. Looking forward to second-quarter earnings, EAT expects to collect between 41 and 43 cents per share (including adjustments). Wall Street was targeting results of 46 cents per share, which is equal to year-ago figures.

With this predicament behind it, EAT can now focus on technical challenges that lie in its path. On the long-term front, the stock has recently crept back above its 10-month and 20-month moving averages for the first time since July. The stock has also been enjoying trendline support at its 10-week moving average. In the short-term, however, the stock is wrestling with the 35 level, which has provided staunch resistance over the past six weeks. In fact, EAT has not traded above this threshold in about five months.

More than 12,000 put contracts have changed hands on EAT's January 35 put today. These are likely to translate as new positions, as there were fewer than 500 open contracts at this front-month strike heading into today's trading. A sizeable influx of put options could impact the security's Schaeffer's put/call open interest ratio (SOIR), which currently weighs in at 0.98, in the 73rd annual percentile.

Other sentiment indicators on EAT paint a mixed picture. The number of shorted EAT shares dropped by 37 percent this month, according to data released on the Dow Jones newswire this morning. It would take less than three days to buy back all of the remaining shorted positions at the equity's average daily volume. On the other hand, pessimism is the dominant force on Wall Street, as there are 14 "hold" ratings compared to three outright "sells" and only four "buy" designations.

Click the following link to see the Weekly Chart of EAT Since May 2004 With 10-Week Moving Average: http://www.schaeffersresearch.com/wire?ID=12086.

2. Yesterday evening, telecommunications and equipment concern Qualcomm (NASDAQ:QCOM) boosted its first-quarter earnings outlook to 26-27 cents per share from its original target of 23-25 cents. Revenue is expected to come in at the high end of a previously projected range, at $1.4 billion. Wall Street was expecting per-share earnings of 26 cents per share on revenue of $1.39 billion.

QCOM shares have rallied one percent today on the heels of this news and amid strength in the broader market. This merely contributes to a long-term climb that the shares have enjoyed since the second quarter of 2003. Over this time frame, the security has appreciated by about 200 percent along smooth support from its 10-week and 20-week moving averages. At the present juncture, QCOM is staring down short-term resistance in the 44-45 region. A break above this area could ultimately send the shares higher to a new four-year peak.

Sentiment indicators suggest that QCOM may soon receive just the boost it needs to clear this hurdle. The equity's SOIR has mounted a slight advance since mid-November and currently stands at 0.91, which is higher than 65 percent of the past year's worth of readings. Schaeffer's Sentiment PowerTools (www.schaeffersresearch.com/powertoolsobs/) indicates that past SOIR percentile rankings between 63 and 68 have preceded bouts of outperformance from QCOM. In other options news, the shares are seeing heavy trading at the January 45 call and the January 42.50 put in today's session.

QCOM shares also stand to benefit from any upgrade activity among the nation's brokers. Currently, according to Zacks (www.Zacks.com), just 12 of 26 analysts following the stock have named it a "buy" or better, with 13 "hold" ratings hanging in the balance, along with one outright "sell." With the stock so close to its 52-week high, upgrade activity is certainly not out of the question.

Click the following link to see the Weekly Chart of QCOM Since May 2003 With 10-Week and 20-Week Moving Averages: http://www.schaeffersresearch.com/wire?ID=12086.