OTC Insight newsletter - world's largest online movie rental service and take a sneak peek into Collins' Buy List portfolio

FEATURED EXPERT: Jim Collins 21-DEC-05 Jim Collins, editor of The OTC Insight newsletter, looks forward to a good close to 2005 and a positive beginning to 2006. Discover what this expert has to say about inflation. Then find out why Collins sees strong fourth-quarter earnings and learn his outlook on stocks in the months ahead. Afterward, receive and update on the world's largest online movie rental service and take a sneak peek into Collins' Buy List portfolio. MARKET OUTLOOK from December 16 The major indexes are mildly on the plus side. However, the road to this point has been rocky. The good news is that the path is beginning to become smoother. Much of the volatility this year has been due to rising interest rates, record energy prices, and economic uncertainty caused by Hurricanes Katrina and Rita. These primary impediments to rising stocks are in the process of being removed. The main concern over rising energy prices is inflation and not the drain high energy prices puts on the economy. The economy has been expanding at a solid rate even when accounting for higher energy costs. Instead, it's the longterm threat of inflation that has made investors uneasy. Fighting inflation is one of the Federal Reserve's mandates and one of the concerns cited by the Fed for raising rates at its recent meetings. Fortunately, higher energy costs have remained contained and have not spread to other areas of the economy. With energy prices continuing to fall, inflation is unlikely to spread. The result is that the Fed is likely nearing the point where it will stop raising interest rates. Meanwhile, the economy has escaped from the hurricanes largely unscathed. There has been a cornucopia of data over the past month to indicate the business climate is good. This week alone it was reported that durable goods orders more than doubled what was anticipated, new home sales exceeded expectations, consumer confidence soared in November, and the third quarter economy expanded at a 4.3% annual pace, which was much faster than the 3.8% originally reported. All of these reports suggest the consumer is healthy and that fourth quarter earnings will be quite strong. With concerns over rising interest rates and high energy prices diminishing, valuations will be permitted to increase and allow investors to benefit from rising corporate profits. As Jim Collins and his team have stated time and time again, earnings drive stock prices over the long term. The major stock indexes have not budged for a long time, while earnings have continued to grow. This has left valuations at multi-year lows. As long as inflation remains under control, stocks should do well in the months ahead. Insight looks forward to a good close to 2005 and a positive beginning to 2006. Analysts' Review Netflix (NFLX) is the world's largest online movie rental service, providing more than three and a half million subscribers access to over 50,000 DVD titles. Customers receive movies through the US mail service and are able to keep them as long as they choose. Recent News On September 8, 2005, the company updated its long term subscriber and profit goals. Netflix announced that it expects to reach five million subscribers during 2006, a full year ahead of its original goal and has set a goal of reaching 20 million subscribers within five to seven years. The company has subsequently announced that it expects to end 2006 with more than 5.65 million subscribers. Additionally, Netflix stated that it expects to generate 50% annual growth in pre-tax net income over the next several years. Financials For the quarter ended September 30, 2005 Netflix reported net income of $0.16 per share, compared to $0.35 reported in the prior year. The year-over-year decline was the result of the company spending more aggressively to market its service and attract new subscribers. Revenues increased 23% to $174.3 million compared to $141.6 million reported last year. The strong performance was attributed to a 61% year-over-year increase in subscribers to 3.592 million. Caveats The home entertainment market is highly competitive with Netflix competing with broadcast and cable television, video on demand and brick and mortar based video rental stores. The company could also engage in pricing wars with competitors such as Blockbuster which could negatively impact profitability or limit subscriber growth. Other names from the Buy List include: Google (GOOG) is a public and profitable company focused on search services. Named for the mathematical term googol, Google operates web sites at many international domains, with the most trafficked being www.google.com. Google is widely recognized as the World's Best Search Engine and is fast, accurate and easy to use. The company also serves corporate clients, including advertisers, content publishers and site managers with cost-effective advertising and a wide range of revenue generating search services. Google's breakthrough technology and continued innovation serve the company's mission of organizing the world's information and making it universally accessible and useful. Intuitive Surgical (ISRG) designs and manufactures the da Vinci Surgical System. The da Vinci Surgical System seamlessly translates the surgeon's natural hand movements on instrument controls at a console into corresponding micromovements of instruments positioned inside the patient through small puncture incisions, or ports. The products provide the surgeon with the range of motion and fine tissue control previously possible only with open surgery, while simultaneously allowing the surgeon to work through small ports. Quality Systems (QSII) is one of the leading developers and providers of computer-based practice management systems for medical and dental group practices. Its two wholly-owned subsidiaries are Clinitec International, Inc., and MicroMed Healthcare Information Systems, Inc. Clinitec is a developer and provider of electronic medical records systems, MicroMed provides enterprise practice management systems and services to the medical marketplace utilizing a Microsoft Windows based graphical user interface client/server platform. Trident Microsystems (TRID) designs, develops and markets very large scale integrated circuit videographics and audio products for the desktop and portable personal computer market. The company's graphics, video and audio controllers typically are sold with software drivers, a BIOS and related system integration support. Here is How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we will give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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BioTech Stock Report newsletter - Abgenix's panitumumab drug

FEATURED EXPERT: Dr. Scott W. & Nadine Wong 20-DEC-05 Nadine Wong, editor of the BioTech Stock Report newsletter, provides details on Abgenix's panitumumab drug and Amgen's agreement to buy Abgenix. Discover the benefits of this deal and find out what this featured expert has to say about Amgen's future. Then read Wong's thoughts regarding concerns about a competitor. Afterward, learn about several late-stage products in Amgen’s pipeline. Best of Both Worlds from December 19 Not too long ago, Nadine Wong and her team gave a thumb ups on Abgenix (ABGX) giving it a target price of $17 based on the announcement of a positive Phase III study of panitumumab in patients with metastatic colorectal cancer. The trial's 46% decrease in tumor progression surpassed the trial's primary endpoint of 33%. With this new data, panitumumab is more than a "me too" drug. Panitumumab will compete against ImClone/Bristol-Myer's Erbitux with dosing convenience, biweekly vs. once weekly administration and less infusion site reactions. Abgenix and its partner Amgen (AMGN), plan to submit panitumumab's BLA filing in the first quarter of 2006 with the anticipation of approval within six months. Fast forward to the present, Amgen has also agreed to buy Abgenix for $2.2 billon in cash or $22.50 a share. The acquisition of Abgenix provides Amgen with full ownership of panitumumab and denosumab, eliminating profit sharing on panitumumab and a royalty that Amgen would have paid to Abgenix on future sales of denosumab. Amgen expects the deal a dilution of $0.05 to $0.10 on adjusted earnings per share in 2006 and 2007 and accretive thereafter. The acquisition should prove to be fruitful for Amgen and is expected to be completed in first quarter of 2006. For those who are fortunate to own Abgenix, you can sell and have a tidy profit or eventually own shares of Amgen. Either way, Amgen will continue to have strong prospects driven by robust financial performance through five strong products on the market and increasing visibility on the pipeline to support sustainable growth. Despite changes to Medicare reimbursement, the company will remain competitive in the EPO and Enbrel markets. In regards to concerns about competitor Roche's CERA, the company has already filed a patent infringement lawsuit against Roche and has requested a permanent injunction to prevent Roche from entering the U.S. market with CERA. As you may recall, Amgen won the patent infringement case against Transkaryotic Therapies/Aventis which reflects the strength of Amgen's patent position and should help Amgen's case when it comes time to evaluate Roche's CERA. Amgen indicated it believes CERA is a pegylated version of epoetin beta, which is made in mammalian cells and contains the same amino acid backbone as erythropoietin. In Amgen's pipeline there are several late-stage products that will drive the bottom line: Denosumab (AMG 162) for metastatic bone disease, rheumatoid arthritis and hormone related bone loss in breast and prostate cancers; panitumumab for refractory colorectal cancer; AMG 706 for Gleevec-refractory GIST (gastrointestinal stromal tumors); and AMG 531 for immune thrombocytopenic purpura (ITP). Therefore, Wong and her team see the dip in Amgen's share prices as an opportunity. Here is How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we will give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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Fidelity Independent Adviser newsletter - mutual fund spotlights

FEATURED EXPERT: Don Dion 20-DEC-05 Don Dion, editor of the Fidelity Independent Adviser newsletter, discusses the Fed's recent statement that accompanied a quarter-point rise in interest rates. Learn Dion's interpretation of the statement. Then find out why this featured expert says the economy needs to go out and hire itself a good PR firm. Afterward, discover the mutual fund Dion spotlights. Don's Outlook from December 15 It's almost amusing to read the various interpretations of what the Federal Reserve meant by its statement accompanying a quarter-point rise in interest rates to 4.25 percent Tuesday. By not using the words "accommodative" and "measured" the Fed triggered a raft of speculation that an end to its string of 13 interest rate hikes in 17 months might be at hand. Certainly the market took it that way, at least at first, with both the Dow and S&P 500 gaining sharply early. But then reality seemed to start seeping into investors minds and they realized that the Fed had not indicated that this would be the last increase. Both indexes settled back significantly late in the day, though they were back up Wednesday despite bad news about the trade deficit. In fact, most economists, even bullish ones, think two or three more hikes are likely, which is just about what most analysts were saying before the Fed announcement. So what did the announcement mean? Simply that barring signs of escalating inflation, the Fed might decide sometime early in the tenure of Ben Bernanke to give interest rate increases a breather, probably at the 4.75 percent or 5 percent mark. But nothing is certain. If energy prices or labor costs spur concerns about inflation, the Fed will not ignore it. Look forward to be further entertained after the Fed's January meeting, Alan Greenspan's last. There's something a bit unusual about the economy right now. Stocks are at four-year highs, gross domestic product is growing steadily, unemployment is low, corporate profits are high. But a survey by the American Research Group reports that in November, 50 percent of those asked think the economy is getting worse. And 61 percent think the economy is going to be worse a year from now than it is today. The economy needs to go out and hire itself a good PR firm. The stock market tends to be reactive, that is it responds to news, events, even rumors. Only occasionally will the market take off because of a general feeling of strength in the economy. If the general level of pessimism about the economy, despite the facts, is to be believed, then the market could be particularly reactive for a while. Even the hint that rising interest rates may end sometime in the next few months could set off another rally. Fund Spotlight Fidelity Select Electronics (FSELX) Semiconductor stocks dipped late last week after industry bellwether Intel narrowed its fourth-quarter forecast. But Friday's losses were small compared to the gains of the previous month. Semiconductor and related equipment stocks, which recently made up 80% of the Fidelity Select Electronics portfolio, rode strong demand for iPods and cell phones to big gains in November and early December: FSELX's 13.6% one-month gain (through Dec. 2) made it the strongest performer of all Fidelity Select funds. The fund spent seven straight weeks ranked 30th or below on the Sector Momentum Tracker, bottoming out at 41st (out of 42) the week of Nov. 4. Since then, it rocketed up the chart, and held at No. 5 last week. FSELX also shines in comparison to Morningstar's tech-fund category, both short and long term. It ranked in the top 1% in year-to-date returns (18.9% through Dec. 8), while its impressive, 10-year annualized return of 11.4% places the fund among the top 10% of tech funds. Cell phone shipments, up 21% this year, and strong sales for consumer electronics, particularly personal music players and laptops, drove the stocks' recent gains. Chip sales hit a record $20 billion in October, according to the Semiconductor Industry Association (SIA), and that may have piqued investors’ interest. Fund manager James Morrow had the fund well positioned, with some big bets being the stocks of high-performance analog chipmakers (for mobile phones) and high-speed chipmakers (for disk drives in laptops and iPod components). National Semiconductor (up 20.4% since Nov. 1, and 52% year to date), a recent top-five holding, exemplifies the former while recent top-10 holding Marvell Technology (up 26% since Nov. 1, 62.1% year to date) represents the latter. Historically, the fund invests 66% to 80% of its assets in chip stocks. Morrow has typically pushed the higher end of that range, with smaller bets in other sectors. Recently, he's beaten other chip-focused funds thanks in part to picks such as communications equipment manufacturer Motorola, a recent top-10 holding that posted a 35.7 gain year to date. When Intel narrowed its fourth-quarter sales forecast from a $10.2 billion–$10.8 billion estimate to $10.4 billion–$10.6 billion, the news tempered some of those gains. The fund's top holding (as of Sept. 30) hit a five-month high of 27.49 on Dec. 2, then dipped 6.6% through mid-day Friday before recovering a bit. Semiconductor equipment, the fund's other key sub-sector, has been slower to recover from the troubles of 2004. S&P expects 5% growth in 2005 and a greater 8% to 10% growth in 2006, blaming companies' reluctance to spend money on IT for somewhat soft personal computer sales. The chip sector is notoriously cyclical and volatile, as evidenced by the funds roller-coaster returns: a 71.9% gain in 2003 on the heels of a 50.5% dive in 2002. In 2004, an inventory glut hit the industry stocks, driving the fund down nearly 28% by mid-August, before it posted a 9.8% decline for the year. With a three-year standard deviation of 28.71, FSELX is one of the most volatile funds in a volatile tech category, according to Morningstar. Industry concentration plays a role in that, and big bets on top holdings likely increases risk too. Recently, more than 50% of the fund's assets were invested in the top 10 holdings [Source: Fidelity]. There’s plenty of risk with FSELX, and a downturn in consumer spending could slow the sales that drove last month's gains. This fund is best suited to investors willing to risk big losses in exchange for potentially big gains, most likely as a niche part of a portfolio. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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Validea Hot List newsletter - outlook regarding the trade deficit's impact on the economy

FEATURED EXPERT: John Reese 19-DEC-05 John Reese, editor of the Validea Hot List newsletter, highlights three major news events that occurred recently. Discover this expert's outlook regarding the trade deficit's impact on the economy. Then learn why it is more difficult than ever to predict the Fed's next move. Also, read about the big drop in consumer price index for the month of November. Afterward, take a look at a sampling of stocks from the Validea Hot List. The Economy from December 16 One big piece of economic news this week is that the country's trade deficit increased faster than expected (even though the price of imported oil fell), and reached a new record. Given our country's record of trade deficits, this latest trade gap may seem relatively unimportant. But some observers think this will hurt the economy. The New York Times reported: "The widening [trade] gap is likely to reduce the nation's overall growth in the final quarter of this year. Morgan Stanley reduced its forecast for growth this quarter to 3 percent, from 3.4 percent on Wednesday, and Merrill Lynch shaved its already pessimistic forecast to just 2.3 percent." The trade deficit, if it slows the economy, will put a damper on company performance and, of course, stock prices. The second big piece of news was the increase the Fed made in interest rates. Okay, you're probably thinking this is no longer big news. After all, this is the 13th time since June of 2004 that the Fed has hiked rates. But the language from the Fed suggested, at least to some, that the bank was signaling its rate increases might soon be coming to an end. Observers seem to think the Fed will raise rates a few more times, from today's 4.25 percent, perhaps up to 5.0 percent or so, but then stop. This prospect made many investors cheerful, though reading the Fed's crystal ball is more difficult than ever since there will be a change at the top on January 31, 2006, when Alan Greenspan leaves and Ben S. Bernanke takes over. Another piece of news to come out this week was the November consumer price index, which fell 0.6 percent, the biggest one-month decline since July 1949 - 56 years ago. Driving the decline was the drop in gas prices. The core CPI, which excludes food and fuel, rose 0.2 percent, which was in line with the Street's expectations. What this suggests is that inflation is under control, which is always good news for the stock market. An Addition to the Hot List D. R. Horton (DHI): This major builder of homes has the backing of the strategy John Reese bases on Martin Zweig's writings. The P/E of a company must be greater than 5 to eliminate weak companies, but not more than three times the current market P/E because the situation is much too risky. Horton's P/E is 8.21, based on trailing 12 month earnings, while the current market PE is 22. Revenue growth must not be substantially less than earnings growth, according to the Zweig strategy's view. For earnings to continue to grow over time they must be supported by a comparable or better sales growth rate and not just by cost cutting or other non-sales measures. Horton's revenue growth is 30.09 percent, while its earnings growth rate is 43.57 percent, based on the average of the three, four and five year historical EPS growth rates. Another Zweig test is to compare the earnings growth rate of the previous three quarters with the long-term EPS growth rate. Earnings growth in the previous three quarters should be at least half of the long-term EPS growth rate. Half of the long-term EPS growth rate for Horton is 21.78 percent. This should be less than the growth rates for the three previous quarters, which are 28.81 percent, 53.33 percent and 46.25 percent. Horton passes this test, which means that it has good, reasonably steady earnings. A Sampling of the Hot List Chevron Corp. (CVX), formerly ChevronTexaco Corporation, manages its investments in subsidiaries and affiliates, and provides administrative, financial and management support to the United States and foreign subsidiaries that engage in fully integrated petroleum operations, chemicals operations, coal mining, power and energy services. The Company conducts business activities in the United States and approximately 180 other countries. Petroleum operations consist of exploring for, developing and producing crude oil and natural gas; refining crude oil into finished petroleum products; marketing crude oil, natural gas and the many products derived from petroleum, and transporting crude oil, natural gas and petroleum products by pipeline, marine vessel, motor equipment and rail car. U.S. Bancorp (USB) is a financial holding company in the United States. U.S. Bancorp, the parent company of U.S. Bank, serves 13.1 million customers and operates 2,370 branch offices in 24 states. U.S. Bancorp customers also access their accounts through 4,620 U.S. Bank automated teller machines (ATMs), U.S. Bank Internet banking and telephone banking. U.S. Bancorp provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses, governments and institutions. Major lines of business provided by U.S. Bancorp through U.S. Bank and other subsidiaries include Wholesale Banking; Payment Services; Private Client, Trust and Asset Management, and Consumer Banking. On June 29, 2004, the Company purchased the remaining 50% ownership interest in EuroConex Technologies Ltd (EuroConex) from the Bank of Ireland. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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Ultimate Option Strategies newsletter - thoughts on investment taxes

FEATURED EXPERT: Ken Trester and Jeff Carter 16-DEC-05 Ken Trester, editor of the Ultimate Option Strategies newsletter, sees signs of neutrality but remains bullish. Discover what this expert has to say about stocks and options. Then read his thoughts on investment taxes. Afterward, take a look at an option play on a company that helps the world's leading communications service providers build tomorrow's converged networks of voice, data and video. Market Outlook from December 12 Ken Trester and his team's indicators are starting to lean toward the neutral camp, but Trester and his team remain bullish. December historically is good for stocks, and they expect a rally during the final week of the month. However, volatility remains low so take lighter positions than normal when you buy options. Over the longer term, Washington DC enters the picture. And the Federal Reserve's plans for interest rates is only part of the picture. Another major part will be the outlook for investment taxes. The House of Representatives has passed a bill extending the 15% tax rates on dividends and capital gains until 2010. The bill is headed for the Senate, where it faces an uncertain future. That uncertainty is not healthy for the economy nor investors. Without an extension investors might shy away from buying dividend-paying stocks. They also might choose to sell stocks sooner to lock in lower capital gains rates. That's a lot of selling and non-buying going on, and it would not be good for stocks. Ken Trester's Best Option Play LEAP Debit Spread to Buy -- Buy Tellabs (TLAB) Jan 2008 12.5 Call and sell TLAB Jan 2008 15 Call. The spread price at Friday (12/9) close was 80 cents. Tellabs helps the world's leading communications service providers build tomorrow's converged networks of voice, data and video. Tellabs employees design, build and service optical networking, broadband access and next-generation switching equipment. The maximum profit potential with this position is 162%. Maximum profits will be realized if the stock is above $15.00 during the week prior to January 2008 options expiration. A debit spread is similar to buying an option, except you are using the simultaneous sale of another option to offset some of the cost. This debit spread reduces the cost of buying the TLAB Jan 2008 Call, which otherwise would cost 1.8 points and is quite overvalued. To enter this position, use a spread order to Buy to Open TLAB Jan 2008 12.5 Call, and Sell to Open TLAB Jan 2008 15 Call. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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Investment Quality Trends newsletter - learn about two of the companies profiled

FEATURED EXPERT: Kelley Wright 16-DEC-05 Kelley Wright, editor of the Investment Quality Trends newsletter, explains that the approach in the newsletter is to minimize risk, protect principal, earn a current and growing stream of dividends and lastly capture capital gains for long-term total return. Find out just how different this expert's approach is when it comes to running a hedge fund. Afterward, learn about two of the companies profiled by Wright. INVESTMENT OUTLOOK from December 15 For 2006 Kelley Wright likes big pharma and he like big telecom. Look for both to outperform. Gold finally corrected; it was long overdue. It is killing Wright that Barrick Gold Corp. (NYSE: ABX) is in the Faded Blue Chips. S&P needs their head examined for giving them a B on earnings and dividend quality. Thank Heaven Wright and his team run a hedge fund! Wright says that because he and his team can do things in the hedge they would never advocate in IQ Trends. The approach in the newsletter is to minimize risk, protect principal, earn a current and growing stream of dividends and lastly capture capital gains for long-term total return. Wright and his team are really good at that, perhaps the best in his humble opinion. The hedge fund is high octane, which means more risk. There are some folks that are looking for that kind of vehicle, so Wright and his team have it available. What do they do different? Well, Wright is long ABX for example and he wants to be long streetTRACKS Gold Shares (GLD). There is a great short coming up on some select retailers real soon that Wright plans on taking advantage of. Another example would be oil, which Wright has no vehicle for in the newsletter. He can see getting uber long on oil. Yes, Wright thinks the correction in oil is d-o-n-e, done. Obviously these are trades that would never fly in IQ Trends, as they shouldn't. Featured stock updates include: Since 1969, Ruddick Corporation (RDK) has been the successful conglomeration of a chain of grocery stores and a commercial thread producer. The company's unique variety of business has made it of interest to investors, as well as the company's admirable record of dividend increase. The company’s subsidiaries are named Harris Teeter and American & Efird, which respectively represent the operations of RDK’s grocery and thread businesses. The close of fiscal 2005 brought positive news for RDK shareholders. Sales which came in at $2.64 billion were 2.8% above levels realized in 2004. Net income accordingly also rose by nearly 6.1% from fiscal 2004. Throughout the year, the company has been very active in overhauling its grocery operations. During 2005, Harris Teeter opened ten stores, completed the remodeling of fourteen, and purchase six additional locations from Winn-Dixie. Bringing the new locations up to par along with the closure of other locations is expected to cost the chain approximately $2.9 million throughout fiscal 2006. In 1929, a minor league baseball player started a small moth-proofing business in Chicago. Inspired by his religious convictions, Marion Wade grew his business from the confines of his home into a major pest control business. Over the years ServiceMaster (SVM) has added a variety of companies to its service-oriented lineup. The company's five operating segments include TruGreen, Terminix, American Home Shield, American Residential Services, American Mechanical Services, and a segment devoted to miscellaneous operations. At a recent price of $12, SVM is currently in a Rising Trend with a 17% downside risk to an Undervalue price of $10, high yield of 4.4%. From current levels the company has a 67% upside potential to an Overvalue price of $20, low yield of 2.2%. Shares have recently established new 52-week lows and it appears that a buying opportunity at Undervalue will be in the very near future. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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StreetAuthority Swing Trader newsletter - updates on three stocks

FEATURED EXPERT: Dr. Melvin Pasternak 15-DEC-05 Dr. Melvin Pasternak, editor of the StreetAuthority Swing Trader newsletter, believes that the S&P 500 peak for 2005 will be near 1285. Discover how he arrived at such a prediction and read his technical analysis regarding year-end market activity. Then find out what this expert has to say about the Nasdaq Composite and the Dow Jones Transportation Index. Afterward, receive updates on three stocks. Mid-Week Update from December 14 The S&P 500 continues its slow, grudging march toward what Dr. Melvin Pasternak believes will eventually be a 2005 peak near 1285. On Wednesday, the index hit a new intraday high for the current rally of 1275.80, and it hung on to a new closing high of 1272.74. Since an uptrend is defined as a series of rising peaks and valleys, this new high confirms the existing trend. The index is now at its highest level since June 2001, a period of nearly 4 ½ years. Dr. Pasternak continues to hold to his earlier thesis: the market will not close out the year with a robust advance, but it will not see a sharp correction either. The upper weekly Bollinger band is now at 1279, and the upper daily band is at 1277. The upper weekly channel line is at 1280. Each of these should supply technical resistance to a further advance. Dr. Pasternak has also noted some recent technical deterioration. On the daily S&P chart, Wednesday's new high was made with bearish momentum divergence in MACD, RSI and ADX. While bearish divergence can persist for extended periods of time, momentum changes typically precede price changes, so this divergence could be an early warning sign. The Nasdaq Composite and the Dow Jones Transportation Index have been co-leaders off the October 13th bottom. However, both indices have now broken below their relative strength trendline and moving average. Perhaps this weakness is simply group rotation, but if the S&P is to accelerate out of its existing channel, then these two indices should be far stronger than they are. Stock Updates On the long side, broker Morgan Stanley (MWD) remains attractive in the short term. Dr. Pasternak first spotted MWD in the October 31st issue of the Swing Trader when the shares were trading at $53.93. Dr. Pasternak's target is $59.95. MWD has found good support just under the $56 level several times, and Dr. Pasternak would sell if the 30-day moving average at $55.58 is violated. Dr. Pasternak initially flagged women's health care provider Conceptus (CPTS) in the November 14th newsletter at $13.35. The shares then went as high as $15.95 on November 30th. The stock is now at a crucial juncture. It should find support at its rising 50-day moving average, which is currently at $12.25. Dr. Pasternak first highlighted Red Hat (RHAT) in his October 31st newsletter at $22.15. The stock then moved higher, testing round-number resistance at $25. It continues to consolidate near that level. On Wednesday, the shares gained $1.43 on a brokerage upgrade and positive comments from the analyst who argued that Linux's penetration of the Windows and Unix operating systems in the enterprise software market should boost sales. The stock should be able to trade into the high $20s. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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Dennis Slothower, editor of the On the Money-E newsletter - Slothower's technical analysis of the stock market

FEATURED EXPERT: Dennis Slothower 15-DEC-05 Dennis Slothower, editor of the On the Money-E newsletter, says oil prices are now at a pivotal point. Learn why and discover what this expert has to say about key resistance for oil. Then check out his update regarding the Fed's announcement. Afterward, read Slothower's technical analysis of the stock market. MARKET COMMENTARY from December 14 Today, we saw the broad market put in a pretty good day, as short cycles attempt to advance. However, market leadership is not coming from the OTC indexes, not yet at least. Market leadership is very important, because it indicates how much risk investors are willing to accept under the present circumstances. Over the last couple of weeks, the OTC has lost momentum. But Dennis Slothower thinks that could change abruptly if and when oil prices start to correct. Oil prices are now at a pivotal point. Short cycles turned negative today for crude oil with %K at 90 and %D at 91. This suggests that a short-term correction is due. In addition, oil is just under the weekly middle Bollinger Band line at $62. If oil fails to advance at this intermediate resistance level, the stock market could quickly turn positive, and the OTC indexes would likely regain market leadership. Today, the federal Energy Information Administration released their energy data. Commercial crude inventories staged a surprise increase this past week according to government data, while gasoline stocks rose more than expected. Crude stocks were reported to be above average for this time of the year. The bottom line is that we are not seeing a shortage in oil supplies, which suggests that rising oil prices may soon run out of steam. If oil prices fail to rise above key resistance, and head back down, a bearish trendline will have developed. If that happens, Slothower believes the market will breakout to the upside. If, however, oil prices charge above key resistance, then a test of the $70 range is likely, and the stock market will suffer. But from what Slothower can tell, crude oil is poised to correct. Therefore he is bullish on the prospects of an end-of-the-year rally. The Fed’s announcement today had a negative impact on gold bullion, which fell $14.5 an ounce to close at $506.50. In two days, gold has fallen $37. By removing the word "accommodative," the Fed is moving toward a neutral, and possibly even a restrictive bias, which has gold traders taking profits. We could be seeing a major top developing in the commodities. As the risks of an inverted yield curve, and all that it implies, could have a chilling affect for longer term investors. A restrictive Fed is a serious negative for commodities. Technically, the stock market remains in bullish territory but market leadership needs to be watched carefully. Last year, market leadership began to erode in December, which ultimately led to a very sharp correction in January. This is why watching the OTC is very important right now, and that means oil prices have to recede in order to support the OTC. The next few days should give us a better feel for what oil is going to do next and how we should balance ourselves. Slothower thinks if crude oil backs off and the OTC resumes leadership, Japan will continue to surge forward and high yield bonds, which have suffered the last week, will rebound. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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The Spear Report Professional Edition newsletter - find out what Spear and his team have to say about Chips and Internet names

FEATURED EXPERT: Gregory Spear 15-DEC-05 Gregory Spear and his team, from The Spear Report Professional Edition newsletter, see the start of something good in the building sector. Read these experts' analysis of the industry, including their thoughts on four major players. Also, find out what Spear and his team have to say about Chips and Internet names. COMMENTARY Wednesday was a 3-letter stock day. Most of the major averages gained from one-third to two-thirds of a percent on Wednesday.... except for the NASDAQ and the NASDAQ 100, which both finished in the minus column. There were no signs of a top in the energy complex, and that kept momentum capital content to remain mostly within that sector. Chips and Internet names languished. The homebuilders, however, had a very decent day, in anticipation of an end to the rate increase cycle. Could this be the start of something good in the building sector once again? The Buy List thinks so, as it has been overweight the builders since last Friday. What is the rationale for a serious homebuilder rally here? The story of the upcoming housing slow-down in 2006 is widely known and Gregory Spear and his team noted that Toll's (TOL) reiteration of that fact last week as part of its earnings guidance did not result in a further sell- off in Toll, or other builders. When bad news in an industry no longer drives stocks down, we have a sold-out condition otherwise known as a bottom. Could stocks like DR Horton (DHI) or Ryland (RYL) make new all-time highs? It is hard to say, but Spear and his team did witness just such a phenomenon in Beazer (BZH) last month, due to a short-squeeze. Valuations are quite reasonable in this industry and even if growth were to slow to historical levels, it is likely to take at least 2 years for that ramp- down to fully play out, as most builders have a great deal of backlog that will carry them well into 2006. If average home prices level off, as they are doing now, and do not decline precipitously, then the builders could stage a surprisingly strong advance from here. Currently, they all have single digit P/E ratios, debt to capitalization ratios typically less than 1:3, and the ability to take market share from local builders for years to come. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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Richard Moroney, editor of the Dow Theory Forecasts newsletter - historical growth rates versus future returns

FEATURED EXPERT: Richard Moroney 14-DEC-05 Richard Moroney, editor of the Dow Theory Forecasts newsletter, explains that consistent growers tend to share two characteristics, solid business models and good management. Find out what this expert has to say about each and read his advice regarding historical growth rates versus future returns. Then check out one of Moroney’s favorite 15-year growers. Afterward, take a look at a sampling of more long-term leaders. Strong and steady wins the race from December 12 Investors like companies that grow sales and profits, and with good reason. But delivering growth year-in, year-out is tough. Only 18 members of the S&P 500 Index have managed 15 consecutive years of growth in sales and per-share profits. The Forecasts covers 10 of these companies, all of which are listed on page 2. Consistent growers tend to share two characteristics: Solid business models: To grow steadily over the long haul, a company must develop a business model able to weather economic and social change. Good management: Consistent sales and profit growth requires operational and financial discipline, as well as the ability to adapt to changing markets. Such discipline and flexibility are hallmarks of effective management. Intuition tells us that companies with consistent and strong sales and profit growth should make good investments. Research, however, provides a warning. While shares of companies delivering strong growth tend to deliver above-average returns, historical growth rates are not good predictors of future stock-market returns. All too often, yesterday’s leaders become tomorrow’s laggards. Consider Coca-Cola (KO), Bristol-Myers Squibb (BMY), and Cisco Systems (CSCO). Shares of Coca-Cola and Bristol-Myers peaked in the 1990s, when profit growth began to slow after years of solid gains. To guard against investment in fading leaders, look at expectations. Determine whether consensus profit estimates are reasonable in light of historical growth rates, recent operating performance, and industry trends. Also consider value, favoring steady growers that trade below historical average valuations. Cisco shares rose at an annualized rate of more than 105% in the five years ended March 2000. At that point, the shares were so expensive that the ensuing slowdown in sales and profits had a catastrophic effect. Cisco languishes 77% below its 2000 highs. One of Moroney and his team’s favorite 15-year growers is reviewed below. Fiserv (FISV) provides technology and services to financial companies, including check processing and information management. The evolution of the financial sector — increased automation, industry consolidation, and expansion of the services offered by financial institutions — has forced Fiserv to drastically change the breadth and nature of its own services. Fifteen straight years of growth in sales and profits suggests the company has managed that change well. Over the last 15 years, Fiserv’s sales have increased at an annualized rate of 23%, while per share profits rose at a 21% clip. Other top long-term growers include: Amgen (AMGN) is a global biotechnology company that discovers, develops, manufactures and markets human therapeutics based on advances in cellular and molecular biology. They manufacture and market four human therapeutic products, EPOGEN(R) (Epoetin alfa), NEUPOGEN(R) (Filgrastim), INFERGEN(R) (Interferon alfacon-1) and STEMGEN(R) (Ancestim). Biomet (BMET) and its subsidiaries design, manufacture and market products used primarily by orthopedic medical specialists in both surgical and non-surgical therapy, including reconstructive and fixation devices, electrical bone growth stimulators, orthopedic support devices, operating room supplies, general surgical instruments, bone cements, and bone substitutes. The company markets its products through independent, commissioned sales representatives, direct sales representatives, and specialty medical product dealers in tens of countries worldwide. Medtronic (MDT) is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Walgreen (WAG) is a national retail pharmacy chain and considered the leader in innovative drugstore retailing. Walgreens pioneered many store features that are becoming standards in the industry. Among those concepts are: Computerized pharmacies, Point-of-sale scanning, Freestanding stores with drive-thru pharmacies, and Intercom Plus, Walgreens advanced new pharmacy computer and workflow system. Intercom Plus allows pharmacists to spend more time counseling patients by assigning administrative tasks to pharmacy technicians. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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Ian Wyatt, Growth Report newsletter - recent acquisition announcements

FEATURED EXPERT: Ian Wyatt 14-DEC-05 Ian Wyatt and his team, from the Growth Report newsletter, provide details on recent acquisition announcements. Learn how these experts feel about the transaction between Provide Commerce and Liberty Media. Read about the one that got away. Then receive insight on one more acquisition transaction that is expected to close by the end of January. Portfolio Update from December 9 Provide Commerce Acquired by Liberty Media for $477 Million Provide Commerce (PRVD) this week announced that the company has signed an acquisition agreement with John Malone's Liberty Media (L). Under the terms of the deal Liberty will pay $477 million, or $33.75 per share, in an all cash deal. "Provide Commerce is a market leader in online perishable goods and through its advanced supply chain and superior execution, has built scale and a strong competitive position. This is a testament to the caliber and dedication of the Provide management team and we are thrilled to welcome them to the Liberty family," stated John C. Malone, Liberty's Chairman and Chief Executive Officer. He continued, "We believe in the power of video to drive television and web-based retailing businesses and Provide is a compelling addition to our strategy." The transaction is expected to close in Q2 2006, subject to regulatory and Provide Commerce shareholder approval. Provide's largest shareholder is Jovian Holdings, with a 29% position in the company. Jovian also holds several seats on the board of directors, and has agreed to vote in favor of the current proposed transaction, and against any alternative or competing acquisition bids. This acquisition of Liberty provides Ian Wyatt and his team’s portfolio with a 13% gain since April 13 when Wyatt and his team added shares to the Growth Report portfolio, and have doubled from May lows. While Wyatt and his team support this transaction, they had hoped to see several more strong quarters of financial performance from Provide in hopes that financial outperformance would drive the stock price higher in 2006. They won't complain about 13% gains in eight months though. Electronic Arts to Acquire JAMDAT Mobile Electronic Arts (ERTS) this week announced that it would acquire JAMDAT Mobile (JMDT) in a transaction valued at $680 million, or $27 per share, in an all cash deal. The move will put $16 billion gaming giant Electronic Arts in a dominant position in the mobile gaming through this acquisition of the leading mobile gaming company. Within one year of the completion of the acquisition, Electronic Arts and JAMDAT will together publish more than 50 new mobile games. Electronic Arts had started 2005 with two mobile games. Wyatt and his team released their first report on JAMDAT mobile on September, 26 when the stock was trading at $21.40. At the time Wyatt and his team noted that they were not adding shares to the Growth Report portfolio and that they would watch the name in the coming months. Wyatt and his team are sorry to report that this one got away from them, as they missed the recent October low of $17, and the company will now be bought out at a healthy premium. Well done to the team at JAMDAT. This transaction appears to make a lot of sense from both the Electronic Arts and JAMDAT point of view. YouBet.com to Acquire United Tote Online horse wagering company YouBet.com (UBET) last week announced the acquisition of United Tote. Under terms of the agreement, YouBet will pay $34.2 million in cash and accept $14.4 million in United Tote debt. The company expects to close the acquisition by the end of January. United Tote is a supplier of totalizator systems, terminals, and other pari-mutuel wagering services that process more than $7 billion in wagers annually. The company supplies services to 94 racing facilities in North America, and at 11 locations abroad. In 2004, United Tote reported revenues of $23 million and EBITDA of $2.8 million. In the nine-months ended September 30, the company reported revenues of $19.6 million and EBITDA of $2 million. YouBet plans to complete an equity offering through the company's shelf registration statement. Here’s How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we’ll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. Click here now.

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VitalStocks Recent Issue - Sunday, January 29th, 2006 - Volume 6, Issue 4

Sunday, January 29th, 2006 Volume 6, Issue 4 In This Issue: 1) Current Market Metrics - Mutual Fund Flows 2) Viewing the Market A) E-commerce Clicking B) Stealth Stocks Weekly Update 3) Feature Stock #1 - Siliconware Precision Industries Co., Ltd. ADR (SPIL) 4) Feature Stock #2 - Selective Insurance Group, Inc. (SIGI) 5) Additional Stocks - Worth a Further Look A) Phelps Dodge Corporation (PD) B) E*TRADE Financial Corporation (ET) 6) About VitalStocks.com 7) DISCLAIMER: Use of this newsletter means that you agree. This issue sponsored by... ============================================== Investing in China Made Easy – A Free Report There is so much money to be made in China, it's truly unprecedented. But where do you start? Should you invest in Chinese securities, or in those of neighboring countries? Should you play it safe and keep your money in US stocks that would benefit from a booming China? Let's remove the mystery, shall we? We suggest that you start by picking up shares in THESE SEVEN ASIAN STOCKS right away: http://www.1shoppingcart.com/app/adtrack.asp?AdID=187737 ============================================== 1) Current Market Metrics: Independent Data on Fund Flows Data As Of: 25 January 2006 - Excluding ETF activity, Equity funds report net cash inflows totaling $2.189 billion in the week ended January 25, with 64% (1.406 Bil) going to Non-domestic funds; - Equity Fund Outflows -$4.2 Bil; Taxable Bond Fund Outflows -$244 Mil Source: http://www.amgdata.com/ 2) Viewing the Market: Financial analysts / journalists comment on the current stock market and future direction. 2A) E-commerce Clicking, by James Giaquinto Originally Published 25 January 2006 The e-commerce industry entered the 2005 holiday shopping season with high expectations, and the growing space didn’t disappoint. According to comScore Networks, online non-travel spending during the season (Nov 1-Dec 31) jumped 25% to $19.6 billion from $15.7 billion in 2004. Online travel spending added $8.6 billion in the period. These numbers further underscore what had already been proven in previous years; online shopping is growing in popularity and doesn’t appear to be slowing down anytime soon. Well, it won’t be slowing down as long as the economy continues moving in the right direction and consumer confidence remains respectable. Those two factors, along with job growth and lower unemployment, are the driving forces in the retail industry in general. Whether a brick-and-mortar retailer or one floating in cyberspace, the amount of money consumers will spend is linked to the overall environment. For right now, that’s good news since the economy appears to be in decent shape. This has helped the e-commerce industry rise to a Zacks Industry Rank of 2.90, which places it 73rd out of more than 200 industries. The space has risen in importance since just last week when its Zacks Industry Rank was at 3.10. The interest stems not only from strong 2005 numbers, but also from anticipation that 2006 will also be an energetic year. Momentum for e-commerce has spilled over into the new year. Although many analysts are expecting a challenging year for retailers, online non-travel spending is up 33% to $5.5 billion for the Jan 1-20 period, according to comScore Networks. That’s up from $4.1 billion in 2005. Online travel spending added an additional $3.5 billion, which is up 8%. This comes on the heels of a strong 2005. Total Internet spending in the year improved 22% from 2004 to $143.2 billion, versus $117.2 billion. But 2006 may be a different story. The National Retail Federation (NRF) expects tough comparisons, rising energy costs and a slowdown in the housing market to cause subdued retail sales growth this year. The NRF expects retail industry sales will increase only 4.7% from last year, compared to the 6.1% in 2005. However, the Federation expects certain specialty retailers to continue putting together solid sales growth. If such an environment comes to fruition, then it is likely to have an impact on e-commerce. But it will not stifle the increasing interest of consumers to shop from the comfort of their homes while enjoying the same, and sometimes better, discounts. As a result, there will be opportunities for sharp investors to generate profit through e-commerce in 2006. Leaders in the Industry Amazon.com, Inc. (NASDAQ: AMZN) seeks to be the world's most customer-centric company, where customers can find and discover anything they may want to buy online. The company lists unique items in categories such as books, music, DVDs, videos, consumer electronics, toys, camera and photo items, software, computer and video games, tools and hardware, lawn and patio items, kitchen products and wireless products. On the day after Christmas, Amazon.com announced that the 2005 holiday season was its best ever. The company’s Delight-O-Meter surpassed 108 million items ordered. (The Delight-O-Meter tracks the approximate number of items ordered from Amazon.com and third-party sellers at www.amazon.com, www.amazon.co.uk, www.amazon.de www.amazon.fr, www.amazon.co.jp, www.amazon.ca, as well as Amazon.com owned items and from Amazon.com’s stores at www.target.com.) Furthermore, a new single-day record was reached on Dec 12, as the Delight-O-Meter tracked more than 3.6 million items ordered, or 41 items per second. Amazon.com will report its fourth-quarter numbers on Feb 2. For its third quarter, which was announced on Oct 25, 2005, the company posted net sales of $1.86 billion. That marked a year-over-year rise of 27% from $1.46 billion. Earnings per share, excluding items, reached 12 cents, which was down from the prior year, and the company’s fourth quarter sales outlook disappointed some analysts. Nevertheless, as Zacks Equity Research analyst Robert Plaza, CFA wrote in a November research report, Amazon.com continues to benefit from a dynamic business model, strong revenue growth and continued investments in its business. This should keep the company a major force in the growing e-commerce industry. Article Continued Below... ============================================== COMPLIMENTARY E-MINI TRADERS RESOURCE KIT Explore key E-miniTM strategies with this valuable free Traders Resource Kit from Man Financial and the Chicago Mercantile Exchange. See how E-mini futures on the S&P 500, NASDAQ or Russell can help leverage your capital or protect your portfolio. Click here. http://a.gklmedia.com/vtstocks/nl/80 ============================================== Arbinet-thexchange, Inc. (NASDAQ: ARBX) is the leading electronic market for trading, routing and settling communications capacity. Members of the exchange, consisting primarily of communications service providers, buy and sell voice calls and Internet capacity based on route quality and price through its centralized, efficient and liquid marketplace. Members place orders through a web-based interface. Its fully automated, highly scalable trading platform matches these orders using proprietary software and delivers them through state-of-the-art facilities. ”The third quarter demonstrates the strong operating leverage of our model,” said Curt Hockemeier, President and CEO. “We were able to maintain our relatively stable cost structure, while supporting higher fee revenue.” Early November had Arbinet report fee revenues of $12.9 million in the third quarter, marking a year-over-year advance of 12% from $11.5 million. It was also a sequential rise of 11%. Furthermore, a total of 3.03 billion minutes were bought and sold on the company’s exchange, marking an improvement of 12% from 2.70 billion minutes in the third quarter 2004. As for the future, Arbinet expects short-term market supply and demand will continue to fluctuate, but remains encouraged by its long-term business outlook. All of the world’s ten largest international carriers are now Members of Arbinet’s exchange, and the company expects to continue to increase buy and sell opportunities for its exchange Members across the globe. eBay Inc. (NASDAQ: EBAY) enables ecommerce on a local, national and international basis with an array of websites – including the eBay Marketplaces, PayPal, Skype, Kijiji, Rent.com and Shopping.com – that bring together millions of buyers and sellers every day. For its fourth quarter, eBay recently posted pro form earnings of 24 cents per share on net revenues of $1.33 billion. That earnings result improved on a year-over-year basis and also beat the consensus by more than 9%. Revenues represented a growth rate of 42% over the fourth quarter 2004. The quarter finished off a ‘remarkable’ year for eBay. President and CEO Meg Whitman said, “We saw accelerating growth and momentum across the board, a testament to the fact that eBay has built the most outstanding portfolio of businesses on the Internet.” For the year, consolidated net revenues reached 39% to $4.552 billion, compared to $3.271 billion in 2004. Pro forma consolidated net income increased 45% to $1.203 billion, or 86 cents per share. eBay’s conservative outlook disappointed some analysts, but the company remains the dominant player in online auctions. “We view eBay as a solid long-term holding thanks to its powerful business model and smart growth strategy, which should be able to continue generating impressive sales, earnings, and free cash flow,” wrote Zacks Equity Research analyst Robert Plaza, CFA, in a recent research report. Source: http://www.zacks.com/newsroom/commentary/index.php?id=2508 2B) Stealth Stocks Weekly Update, by Dennis Slothower Originally Published 23 January 2006 Market Commentary The last couple of weeks I have written that you should expect to see the market pull back ahead of the FOMC and OPEC meetings. I have advised you to keep high cash values in your portfolios to help insulate against the risk of another whipsaw. I think you can now see why I gave that advice. Friday's plunge, the worst one day sell off in nearly three years is really not that much of a surprise, given how rapidly the markets AND crude oil advanced during the first half of the month - a wicked combination. Something had to give with climbing oil prices and institutions growing increasingly worried about the possibility of crude oil advancing to new records above $70 a barrel. And you should pay attention to the fact that institutions were dumping more than just tech stocks last Friday. The banking sector got absolutely smashed - a very revealing clue as to what institutions perceive the Fed's next move will be at the next FOMC meeting on January 30th. In other words, additional interest rates hikes are on tap - the only reasonable explanation for why the interest sensitive banking sector got hit so hard. I know a lot of investors have been betting on the Fed holding rates steady, and they might. But with crude oil prices challenging $70 a barrel, investors are beginning to think that the Fed is willing to pressure oil prices lower by slowing the economy. What is apparent with this quarter's earnings is that the flat yield curve is beginning to hurt the banking sector. We are seeing a number of banking companies miss their earnings estimates, revealing a distinct negative bias. This is why the market is now discounting the banking sector. I think you need to keep your eyes wide open as to market risk, especially if the Fed inverts the yield curve with further rate hikes. Crude oil prices above $70 a barrel will only cut into the national growth levels. Iran is perfectly aware of this and hopes if it can force the U.S. into a deep recession, thinking it will undercut the sustainability of the U.S. presence in the Middle East. I think this issue is very important to understand, especially if you are chasing the energy and gold sectors. If we do start to see compelling evidence of an economic slowdown, these over-owned sectors could get hit hard again, like they were in the September/October time frame. Consider this an official warning to not get overly exposed in energy stocks at this time, as tempting as it might be. Your strategy should be to manage for gains but protect principal should the worse develop - plan for the best but prepare for the worst. This doesn't mean we can't make money. It's just harder. We really must be careful with our stock selection and risk exposure. The combination of undervalued stocks whose earnings are rapidly expanding has generated some surprisingly good returns on several of our recent stock picks. Courtesy: http://www.stealthstocksonline.com ============================================== Subscribe on our Blog page ============================================== 3) Feature Stock #1 – Siliconware Precision Industries Co., Ltd. ADR (SPIL) ZACKS #1 RANK HIGHLIGHT Originally Published 24 January 2006 Siliconware Precision Industries Co., Ltd. ADR (SPIL) is benefiting from strong demand for its services and has been working to add capacity as a result. Earnings per share are forecasted to grow 20.0% over the next 3-5 years. SPIL has a current dividend yield of 0.82%. Full Analysis Siliconware Precision Industries Co., Ltd. ADR is a provider of semiconductor packaging and testing services. The company’s target market consists of those in the personal computer, communications, consumer integrated circuits (IC`s) and non-commodity memory semiconductor markets. SPIL has exceeded analyst expectations for the past two quarters by an average margin of 28.8%. In the third quarter of 2005, the company posted earnings per share of 14 cents—topping the consensus estimate by 7.7% and crushing its prior year’s earnings of 6 cents. Earnings per share are forecasted to grow 20.0% over the next 3-5 years. On Oct 25, 2005, Siliconware Precision Industries reported its third-quarter 2005 results. Revenues were up 33.0% to $356.4 million, versus $268.0 million in the third quarter of 2004. Quarter over quarter, revenues rose 23.6%. Profits more than doubled when compared to the year-earlier quarter. Analyst estimates have been on the rise for the fourth quarter of 2005, as well as for the full years 2005 and 2006. The current consensus estimate for fourth-quarter earnings of 18 cents per share is 20.0% higher than it was 90 days ago. Estimates for 2005 and 2006 have increased 11.6% and 20.4%, respectively, over the same time period. SPIL has increased revenues, expanded gross margins and grown profits for the past three years. The current trend towards outsourcing by integrated device manufacturers (IDMs) is expected to fuel growth going forward. Siliconware Precision Industries has been more profitable when compared to its peers. The company has a ROE of 12%, compared to 8% for the industry. The company gains a competitive advantage due to its headquarters in Taiwan. SPIL benefits from its proximity to the top two semiconductor foundries in the world: Taiwan Semiconductor Manufacturing Company (TSMC) and United Micro Electronics (UMC). The stock trades at a price-to-earnings multiple of 24.7. The S&P 500’s multiple currently stands at 17.0. Positive cash flows from operations have enabled SPIL to currently yield 0.82%. Full Story: http://www.zacks.com/rank/index.php?id=2097 ============================================== Investing in China Made Easy – A Free Report There is so much money to be made in China, it's truly unprecedented. But where do you start? Should you invest in Chinese securities, or in those of neighboring countries? Should you play it safe and keep your money in US stocks that would benefit from a booming China? Let's remove the mystery, shall we? We suggest that you start by picking up shares in THESE SEVEN ASIAN STOCKS right away: http://www.1shoppingcart.com/app/adtrack.asp?AdID=187737 ============================================== Business Description: Siliconware Precision Industries Ltd. ("SPIL") is a leading provider of comprehensive semiconductor assembly and test services. SPIL is dedicated to meeting all of its customers' integrated circuit packaging and testing requirements, with turnkey solutions that cover design consultations, modeling and simulations, wafer bumping, wafer probe and sort, package assembly, final test, burn-in, and drop ship. Products include advanced leadframe and substrate packages, which are widely used in personal computers, communications, internet appliances, cellular phones, digital cameras, cable modems, personal digital assistants and LCD monitors. SPIL supplies services and support to IDMs, fabless design houses, integrated device manufacturers and wafer foundries globally. Source: http://biz.yahoo.com/iw/050328/083536.html VitalStocks.com Research Summary: Price / Cash Flow Ratio is only 41.4% of the Industry Average Forward Price to Earnings Growth (PEG) is only approx. 0.06 Debt / Equity Ratio is 227.27% of the Industry Average Net Profit Margin is 336.11% of the Industry Average Return on Equity is 355.56% of the Industry Average Further Metrics / Research: Yahoo News Search: http://news.search.yahoo.com/news/search?p="Siliconware+Precision+Industries"&ei=UTF-8&fl=0&x=wrt Blog Search: http://blog.news.search.yahoo.com/blog/search?p=%22Siliconware+Precision+Industries%22&ei=UTF-8&fl=0&x=wrt&fr=moreblog MSN Price Target: http://moneycentral.msn.com/investor/research/wizards/srwtarget.asp?Symbol=spil Short Interest: http://www.shortsqueeze.com/index.php?symbol=spil Analyst Information: http://www.nasdaq.com/earnings/analyst_summary.asp?symbol=mind&selected=spil Insider Transactions: http://www.zacks.com/research/report.php?type=insider&t=spil Stock Chart: http://stockcharts.com/def/servlet/SC.web?c=spil,uu[w,a]daclyyay[dc][pb50!b200][vc60][iUf!Lg]&pref=G Zacks News and Commentary: http://www.zacks.com/research/report.php?type=news&t=spil ============================================== 4) Feature Stock #2 – Selective Insurance Group, Inc. (SIGI) ZACKS #1 RANK HIGHLIGHT Originally Published 24 January 2006 Selective Insurance Group, Inc. (SIGI), a Zacks #1 Rank stock, has a history of strong earnings growth, and has topped analyst estimates in eight straight quarters. SIGI has a current dividend yield of 1.6% and a forecasted earnings per share growth rate of 15.0%. Full Analysis Selective Insurance Group, Inc. is a regional insurance holding company which, through its insurance subsidiaries, offers a broad range of property and casualty insurance products. The company classifies its business into three operating segments: insurance operations, diversified insurance services and investments. SIGI has exceeded analyst expectations in eight consecutive quarters by an average margin of 12.8%. In the third quarter of 2005, the company crushed the consensus earnings estimate. SIGI posted earnings per share of $1.16—23.4% above the Street’s expectation of 94 cents. The company posted earnings per share of 87 cents in the prior year’s quarter. Selective Insurance Group, Inc. reported third-quarter 2005 revenues of $430.6 million. Compared to the third quarter of 2004, this marked an 8.7% increase. Profits were up 38.7% to $39.3 million, compared to $28.3 million in the prior year’s period. For the nine months ended Sept 30, 2005, revenues were up 8.7%, while profits rose by a greater margin—26.8%. Analyst earnings estimates have been trending upwards for 2005 and 2006. The current consensus estimate for 2005 earnings of $4.24 per share is 1.7% higher than it was 90 days ago. Estimates for 2006 have increased by a greater percentage—2.7% over the same time period. SIGI plans to release its fourth-quarter 2005 results after the market closes on Jan 31, 2006. Management has been successful in enhancing shareholder value. SIGI has a return on equity of 15%. Earnings per share have grown at a robust rate of 47.8% over the past five years, and are forecasted to grow 15.0% over the next 3-5 years. SIGI has been proactive in its effort to further increase shareholder returns. On Oct 25, 2005, the Board of Directors increased its quarterly cash dividend by 16%, to 22 cents per share. SIGI has a current dividend yield of 1.6% and a five-year average dividend yield of 2.1%. In addition, the company repurchased 265,000 shares of Selective stock during the third quarter of 2005. Source: http://www.zacks.com/rank/index.php?id=2123 ============================================== COMPLIMENTARY E-MINI TRADERS RESOURCE KIT Explore key E-miniTM strategies with this valuable free Traders Resource Kit from Man Financial and the Chicago Mercantile Exchange. See how E-mini futures on the S&P 500, NASDAQ or Russell can help leverage your capital or protect your portfolio. Click here. http://a.gklmedia.com/vtstocks/nl/80 ============================================== Business Description: The 51st largest property and casualty (P&C) company in the U.S., Selective is a customer-focused, regional company providing a broad range of insurance and alternative risk management products and services. Through other subsidiaries, the company offers claim management services; human resources administration services; and risk management products and services. Selective's value-added products and services are offered to businesses, public entities and individuals through approximately 750 independent agents in 20 eastern and Midwestern states. We have approximately 2,200 employees, including 800 in Branchville, NJ. Source: http://www.selectiveinsurance.com/psApps/Investors/QuickFacts/QFTheBigPicture.asp?bc=12.109.110 VitalStocks.com Research Summary: Price / Cash Flow Ratio is 60.6% of the Industry Average Forward Price to Earnings Growth (PEG) is approximately 0.78 Debt / Equity Ratio is only 21.74% of the Industry Average Net Profit Margin is 142.19% of the Industry Average Return on Equity is 165.63% of the Industry Average Further Metrics / Research: Yahoo News Search: http://news.search.yahoo.com/news/search?p="Selective+Insurance+Group"&ei=UTF-8&fl=0&x=wrt Blog Search: http://blogsearch.google.com/blogsearch?hl=en&q=%22Selective+Insurance+Group%22MSN Price Target: MSN Price Target: http://moneycentral.msn.com/investor/research/wizards/srwtarget.asp?Symbol=sigi Short Interest: http://www.shortsqueeze.com/index.php?symbol=sigi Analyst Information: http://www.nasdaq.com/earnings/analyst_summary.asp?symbol=mind&selected=sigi Insider Transactions: http://www.zacks.com/research/report.php?type=insider&t=sigi Stock Chart: http://stockcharts.com/def/servlet/SC.web?c=sigi,uu[w,a]daclyyay[dd][pb50!b200][vc60][iUf!Lg]&pref=G Zacks News and Commentary: http://www.zacks.com/research/report.php?type=news&t=sigi ============================================== 6) Additional Stocks - Worth a Further Look 6A) Phelps Dodge Corporation (PD) #1 Ranked Stocks Highlight Originally Published: 25 January 2006 Phelps Dodge Corporation (PD) is benefiting from rising copper and molybdenum prices, which has contributed to strong earnings growth. Estimates have been soaring for 2006 due to the increasing price of copper. Over the past 90 days, estimates for 2006 have increased 42.6% to $16.24 per share. Full Analysis Phelps Dodge Corporation (PD) is the second largest producer of copper in the world, and the world’s largest publicly traded copper producer. The company also produces gold, silver, molybdenum, and several other mineral and chemical byproducts. Phelps Dodge has mining operations in several countries, including the U.S., Chile and Peru. The company’s chemicals unit has facilities in North and South America, Asia and Europe. The company runs two segments: Phelps Dodge Mining Company (PDMC) and Phelps Dodge Industries (PDI). Several factors are likely to impact Phelps Dodge positively. Chief among these are rising copper and molybdenum prices. Many analysts expect copper prices to average $1.65/lb. in 2006, underpinned by strong North American demand and burgeoning demand from economies of the developing world, particularly China, India, Brazil and Russia. Copper recently has traded above $2.00/lb. The company’s decision to increase production and sales by building new capacity and restarting idle capacity increases the bullish case toward company fundamentals. Phelps Dodge is spending around $20 million to restart its copper smelters in the U.S. and Chile. Further, the company’s expansion program at the Cerro Verde mine is also progressing well and is anticipated to be complete by late 2006. The expansion activity will increase the company’s share in this mine’s annual production by more than 100 million pounds. Meanwhile, the Board has approved an amount of $210 million for the construction of a copper concentrate leaching and direct electrowinning facility, and resumption of an idle concentrator at Morenci, Arizona. Management also plans to increase molybdenum production level at its Henderson mine to 40 million pounds per year by the second half of 2006. Given our expectation of rising copper prices, higher production should boost the company’s earnings leverage to copper prices, thereby enhancing margins. Estimates have been soaring for 2006 due to the increasing price of copper. Over the past 90 days, estimates for 2006 have increased 42.6% to $16.24 per share. Despite the stock`s strong run in 2005, it is still inexpensive. PD is currently trading at 9x this year`s estimate of $16.92 per share. This is well below the company`s 43% long-term growth rate, giving the stock a PEG ratio 0.21. Strong demand from India and China will likely keep copper prices high and PD`s earnings growth strong. Full Story: http://www.zacks.com/rank/index.php?id=2114 ============================================== 6B) E*TRADE Financial Corporation (ET) #1 Ranked Stocks Highlight Originally Published: 26 January 2006 E*TRADE Financial Corporation (ET) has met or topped the consensus earnings estimate for 11 quarters running. The Zacks #1 Rank stock recently posted record fourth-quarter profits and revenues. ET is trading at a discounted valuation of 2.4x book value. Full Analysis E*TRADE Financial Corporation, through its subsidiaries, provides brokerage and banking services in the United States. The company serves retail, institutional and corporate customers. Securities products and services are offered by E*TRADE Securities LLC (Member NASD/SIPC). Bank and lending products and services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or its subsidiaries. ET has topped analysts’ earnings expectations in three consecutive quarters by an average margin of 11.1%. The company has met or exceeded the consensus estimate in 11 straight quarters—meeting twice. E*TRADE posted 2005 fourth-quarter earnings of 29 cents per share, exceeding the consensus estimate by a penny and the prior year’s 24 cents by 20.8%. Earnings per share have grown at an eye-popping 103.4% over the past five years. Going forward, they are expected to grow 12.9% over the next 3-5 years. Profits in the fourth quarter of 2005 soared to $129.4 million, a 44.1% increase when compared to the $89.8 million earned in the fourth quarter of 2004. Revenue jumped 18.6% to $478.9 million. Both fourth-quarter figures marked new highs for the company. ET pointed to a continued buildup in customer cash, helping the company generate a great deal of interest income. For the full-year 2005, ET saw profits and revenues increase by 13.1% and 13.3%, respectively. E*TRADE has increased revenues, expanded gross margins and grown profits for the past four years. Analyst estimates have been on the rise for 2006 and 2007, fueled by the company’s record 2005 fourth quarter. The current consensus estimate for 2006 earnings of $1.37 is 6.2% higher than it was 60 days ago. Estimates for 2007 have increased by 4.0% to $1.57 per share in the same timeframe. Estimates for the first quarter of 2006 have increased by 6.9%. In an effort to compete with its larger Internet brokerage competitors (Charles Schwab Corp. and Ameritrade Holding Corp.), ET acquired one-time rivals HarrisDirect from Bank of Montreal and the BrownCo unit of JPMorgan Chase. The company stated that both acquisitions will help strengthen and extend ET’s asset gathering strategy while adding significant scale to their operations. The company has also proven that its business goes beyond just trading. E*TRADE debuted its banking products this year—featuring checking, money market and credit card services. Full Story: http://www.zacks.com/experts/featured/view_article.php?art_id=2361&newsletter_id=33 ============================================== Subscribe on our Blog page ============================================== 7) About VitalStocks.com: I believe America has incredible opportunities for people to succeed by making money in the stock market. After making and losing lots of money myself, I realized that there were no sources were investors could get unbiased valuable information. That is what made me begin this project. I continue to work with the top professional investing newsletters to bring “capsules” of their best stock picks to you. Please help keep them participating in our newsletter, follow their links and see what services they provide. Please consider sharing this with your friends. All will benefit. 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InterDigital Communications (IDCC) - consensus has risen by 59% to $1.08 per share - exceeded estimates for three consecutive quarters by an average

InterDigital Communications'(IDCC) devotion to research and development has yielded hundreds of patents which have been fueling earnings growth. Estimates for the year ending December 2006 have been soaring over the past 90 days. The consensus has risen by 59% to $1.08 per share over that time period. The company has exceeded estimates for three consecutive quarters by an average of more than 100%. Full Analysis InterDigital Communications (IDCC) is a wireless technology company offering an extensive patent portfolio of advanced digital wireless telecommunications systems to the semiconductor manufacturer and wireless equipment manufacturer markets. IDCC has been involved in the digital wireless market since the company's inception in the early 1970s, and a number of IDCC's patented inventions are essential to both Time Division Multiple Access (TDMA) - and Code Division Multiple Access (CDMA)-based products. Almost all of IDCC's revenues are in the form of royalties from its patent portfolio. InterDigital spends a significant portion of its annual revenue on research and development activities, besides working closely with various manufacturers and international standard-setting bodies in the wireless industry. In 2004, IDCC filed a total of 858 patent applications. As of December 31, 2004, the company's patent portfolio consisted of 444 U.S. patents (119 of which were issued in 2004), and 1,256 non-U.S. patents (327 of which were issued in 2004). Most of the company's patent-licensing agreements are multi-year deals with recurring revenue based on the number of units sold. As it signs agreements with additional wireless industry players, profit margins should continue to expand, and cash flow should improve dramatically. IDCC has a solid balance sheet, with $114 million of cash and only $3 million of debt as of September 30, 2005. This should give the company the flexibility to defend its intellectual property rights, invest in new technology solutions and continue to buy back shares. Estimates for the year ending December 2006 have been soaring over the past 90 days. The consensus has risen by 59% to $1.08 per share over that time period. The company has exceeded estimates for three consecutive quarters by an average of more than 100%. The stock is currently trading 23.6x 2006 estimates of $1.08 per share. This is in-line with the long-term growth rate of 22.50%. With an attractive valuation, the stock has plenty of room to appreciate. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.

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Eagle Materials, Inc. (EXP) - increased revenues for the past eight years - Strong operating cash flows

Eagle Materials, Inc. (EXP) recently upped its fiscal 2006 earnings per share guidance. The company has increased revenues for the past eight years. Strong operating cash flows have enabled the company to consistently pay a dividend to its shareholders. Earnings per share for this Zacks #1 Rank stock have grown 30.5% over the past five years. Full Analysis Eagle Materials, Inc. manufactures and sells basic building materials used primarily in commercial and residential construction, and public construction projects in the United States. The company’s businesses are separated into four segments: gypsum wallboard, cement, recycled paperboard and concrete and aggregates. EXP has exceeded analyst earnings estimates for the past four quarters by an average margin of 10.3%. The company most recently topped the Street’s estimate in the third quarter of fiscal 2006 by 12.8% and toppled its prior year’s EPS by 57.1%. Earnings per share have grown 30.5% over the past five years and are forecasted to grow 15.0% over the next 3-5 years. On Jan 25, 2006, Eagle Materials, Inc. raised its fiscal 2006 earnings per share guidance to between $8.50 and $8.70. The company also issued fourth-quarter EPS above analysts' estimates. EXP now expects to post earnings of between $2.00 and $2.20 per share. Furthermore, the forecast for fiscal 2007 earnings represents an approximate 30% to 40% increase above fiscal 2006 guidance. Analysts have responded to the company’s optimistic EPS guidance by increasing their estimates for this quarter as well as for fiscal 2006 and fiscal 2007. Estimates for the fourth quarter of fiscal 2006 have increased 25.0% over the past 90 days. The consensus estimates for fiscal 2006 and fiscal 2007 have risen by 10.1% and 31.7%, respectively, over the same time period. Eagle Materials, Inc. reported a 50.6% increase in third-quarter fiscal 2006 profits. Revenues jumped to $211.5 million, from $149.8 million in the prior year’s quarter. This marked a 41.2% increase. Revenues for the nine months ending Dec 31, 2005, rose 37.8%. EXP has increased revenues for the past eight years. The company has expanded gross margins and grown profits for the past three years, most recently by 58.5% and 59.5%, respectively, in fiscal 2005. The Board of Directors at Eagle Ma