Schaeffer's S&P 500 Index Hot Stocks Features AES Corp., CMS Energy, Albertson's, Freescale Semiconductor, and Prologis

Business Wire, June 6, 2005

CINCINNATI -- Among the stocks featured in the June 6 edition of Schaeffer's S&P 500 Index Hot Stocks are AES Corp. (NYSE: AES), CMS Energy (NYSE: CMS), Albertson's (NYSE: ABS), Freescale Semiconductor (NYSE: FSL), and ProLogis (NYSE: PLD). Schaeffer's S&P 500 Index Hot Stocks is just one of the many free market commentaries written everyday at 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=PRSHS1M&PAGE=1 .

Schaeffer's S&P 500 Index Hot Stocks for Monday, June 6, 2005:

A daily feature available on SchaeffersResearch.com is the "SPX Hot Stocks" column. Each afternoon, we will provide a list of the day's top-20 performing stocks in the S&P 500 Index (SPX - 1,196.00) as well as the bottom-20 names. Featured along with this table will be news that is moving some of the securities.

NOTE: Stocks trading under $5 per share have been eliminated from this listing of the top-20 and bottom-20 performing stocks.

The SPX is trying to make the best of a bad situation. For the better part of the day, the index was below the Mendoza line, but it has been able to fight its way back above level. This evening, at approximately 9 p.m. (Eastern Time), investors' eyes may be focused on China, rather than Miami for tonight's NBA playoffs game seven. The Fed chair is scheduled to speak at that time, where he may speak directly on the economic outlook for the first time since March came in like a lion.

Glancing down at the lovely green hot stocks chart below, we see that energy companies occupy the first and second spots. AES Corp. (NYSE: AES) and CMS Energy (NYSE: CMS) have been able to rally in today's rough market, on very little news. While this may be a bit of an unexpected move from AES, those who have access to the tools made available through Schaeffer's Gold may be able to sit back and say "I told you so" about CMS. According to our proprietary Equity Scorecard, CMS earns a 7.0 out of a possible 10.0, indicating that this stock has some room to grow. What's more, it would take more than 10 days for the bears to cover their shares sold short on CMS, so today's gains could be the spark needed to begin a short-covering rally.

Tomorrow, grocer Albertson's (NYSE: ABS) will step into the earnings confessional. According to Zacks, the Street is expecting the food firm to post earnings of 27 cents per share. Today's three-plus-percent gain can be attributed to investors placing their bets on whether or not ABS will beat the consensus estimate tomorrow. If you would like a more in-depth analysis of ABS's earnings announcement and the stock's recent performance, check out Beth Gaston Moon's Option Activity Watch article from earlier today. Also, if you would like to take advantage of the sizeable moves presented by earnings announcements and similar reports, give Schaeffer's Event Series a look.

Looking at the fourth position on the green chart, we have managed health concern, Manor Care (HCR). Today's gain of more than three percent is a direct result of Banc of America deciding to upgrade the company from a "neutral" rating to a "buy" rating.

If you thought we would make it through today's hot stocks without some reference to Apple Computer's (AAPL) decision, you thought wrong. While AAPL is not a member of the SPX, it is having a direct affect on the company in the second spot on the "wrong" chart, Freescale Semiconductor (NYSE: FSL). Today's decision by AAPL to switch to microprocessor chips produced by Intel (INTC) in all of its Macintosh computers has sent FSL lower by more than three percent. FSL manufactures the G4 chip for AAPL to use in its notebook computers and the Mac mini PC. Despite the fact that sales to AAPL represent just three percent of FSL's 2004 sales of $5.7 billion, today's announcement still has the shares reeling.

Real estate investment trust (REIT) ProLogis (NYSE: PLD) announced today that it is going to buy Catellus Development (CDX) for $4.9 billion in cash and debt. The deal price will pay a 16.1-percent premium on CDX's Friday closing price of $29.24. As per the agreement, CSX shareholders can elect to receive $33.81 per share or 0.822 of a PLD common share for every CDX share owned. PLD stated that the new company will have operations in North America, Europe, and Asia, with more than 100 million square feet of potential development properties around the world. While all this sounds excellent, PLD still lost slightly less than three percent in today's trading action.

Acquisition news has also driven Washington Mutual (WM) lower today, to the tune of nearly three percent. In hopes of rounding out its retail-product offerings, WM has agreed to purchase credit-card provider, Providian Financial (PVN) for roughly $6.45 billion. The purchase price will be paid by stock (89 percent) and cash (the remaining 11 percent), with WM paying a 4.2-percent premium for PVN.