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Friday, January 13, 2006

from a list sent out suggesting purchase on nov 21 I suggested the following stocks for the yr end rally..they were slected using the criteria laid out in greenblatts book and then rerun through my valuation and insider/institutional activity screens
return so far is 10.05 on a dollar wieghted purchase..triple the nasdaq 3.02 since then,4 times the sp 500.Using the concept of selling options on these type value situation, they are ll still above the next strike down I would have sold at.....
naturally the market was in a much better spot for buying in late novemebr than we have here after the mini rally of december so a tad more caution is called for but I do have an interest in selling the following to establish longs
kfy..sell the march 17.50 puts for .4
ceco sel the feb 30 for 1.3
ftd feb 10 for .5(take some patience for this to happen)
chk feb 30 for .6
stocks from the value line 1-2 under 10 that I think we should write on as well( another highly volatile stellar year for this strategy last year with +22% with puke inducing drawdowns along the way....I think makes perfect for put selling strategy...get put the stocks in vomitus period,sell ensuing rally
sell the io feb 7.5 for .6
would like to open positions in skil,scmr and arba off this list but need pullback to do so..picking my spots carefully here as i think the straight up rally since first of yr leaves us vulnerable.
would be a buyer of remc liquidation below 1.25 as I think there is at least 1.50 in the deal

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