New Stop Loss Orders

August 31st 2009

The market is pointing down today.
It is a good time to update our stop loss orders.

• CMTL Stop at $32.20
• ENDP Stop at $20.64
• TSYS Stop at $7.24
• WDC Stop at $30.53

No need to change our latest additions' stop loss levels

• APOL Stop at $61.14
• LHCG Stop at $22.15

New buy: APOL

Today I would suggest to buy APOL. Here's why:

Fundamentally

APOL show the following:

• No debt, average quick and current ratios (1.40) in industry
• Better than industry average P/E
• Very good profitability (Operating and EBITDA margins in industry's best 20%)
• Very good ROE/ROI compared to industry
• Good EPS and Sales growth

Technically

• Stochastic oscillator gave a buy signal, confirmed by the Exponential Moving Average (20 days) crossing.

I would suggest to buy APOL with a 1% trailing stop today and set an initial Stop Loss at $61.14.

New buy and Updated watchlist

New Buy

I would suggest to buy LHCG today (August 26th 2009). Here's why:

From a fundamental point of view, LHCG show the following

• better than industry PE ratio
• good quick and current ratio and low short and long term debt make it financially solid
• good margins, good return on invested capital and on equity
• good growth

There was a technical buy signal on August 21st.

I would suggest an initial stop loss price of $22.15.


Watchlist

In addition to our previous stocks to watch:

• ASEI
• AZZ
• BKR
• CBST
• CTR
• EROC
• EVEP
• IPHS
• MAXY
• MIR
• PETM

I would add the following:

• AGNC
• AIPC
• APOL
• BMY
• BUCY
• CHBT
• CMCSA
• CPHI
• CSKI
• DRC
• EBS
• ENSG
• PIKE
• POWL
• RIMM
• SMLC
• STRL
• VAR

Please note: these are stocks to watch, not necessarily to buy (at least not now)

Watchlist and new stop loss orders

Whatchlist

I would monitor the following stocks:

• ASEI
• AZZ
• BKR
• CBST
• CTR
• EROC
• EVEP
• IPHS
• MAXY
• MIR
• PETM

Stop loss

• CMTL $31.69
• ENDP $20.10
• TSYS $7.22
• WDC $29.84

A quick update

Hi everybody,

just a few words, while we prepare for the next round.

Current Portfolio
We have only 4 stocks in our portfolio at the moment:

1. CMTL
   Current: $33.99
   Payed: $28.99
   G/L: 17.04%
   Stop: $31.52
2. ENDP
   Current: $21.505
   Payed: $17.38
   G/L: 23.47%
   Stop: $19.63
3. TSYS
   Current: $7.30
   Payed: $7.5385
   G/L: -3.36%
   Stop: $7.12
4. WDC
   Current: $32.45
   Payed: $16.20
   G/L: 99.82%
   Stop: $29.52

Closed Positions

1. DECK: $50.81 to $54.23 - 6.7% gain
2. AFAM: $17.41 to $26.09 - around 49% gain
3. RECN: $14.04 to $17.21 - 22% gain
4. GHM: $15.57 to $12.60 - 19% loss
5. GIGM: $6.53 to $5.64 - 13% loss
6. TRLG: $10.53 to $20 - 89% gain
7. VPHM: $4.71 to $5.69 - 20% gain
8. IPHS: $9.47 to $15.12 - 59% gain
9. NE: $24.39 to $31.52 - 29% gain
10. ADM: $25.40 to $26.29 plus 14cts dividends - 4% gain
11. FLS: $52.57 to $71.17 plus 54 cst dividends - 36% gain
12. JCOM: $22.23 to $21.50 - 3.3% loss
13. BLUD: $16.53 to $11.71 - 29% loss
14. NCTY: $9.64 to $9.58 - 0.6% loss
15. FLR: $37.99 to $47.24 - 24% gain
16. ADBE: $18.70 to $27.12 - 45% gain
17. DECK again: $57.08 to $64.18 - 12.4% gain
18. APOL $62.87 to $64.7 - 2.9% gain
19. DISH: $15.89 to $14.33 - 10% loss
20. NRG: $19.56 to $22.3 - 14% gain
21. MVL: $24.35 to $37.87 - 55% gain

I plan to build a new watchlist in the next couple of days.

Coming back

Hello everybody. Sorry, I disappeared.
In fact my family grew a few weeks ago and I had to work night and day to take care of my newly arrived little lady.

It is now time to restart our trading activity. In the meanwhile, after DECK, ADBE and FLR, we sold APOL, DISH, NRG and MVL.

I am sorry I did not post the updated stop loss prices, but if you followed my free stop loss calculator you should have sold at prices similar to mine.

Let's quickly review our last trades:

• We sold APOL at $64.7 on July 13th. We bought it at $62.87 on May 19th for a modest 2.9% gain.
• Bad luck with DISH. We bought it at $15.89 and sold it at $14.33 for a 10% loss. It then went over $19, but I really had no time to follow it.
• We sold NRG at $22.3 on July 21st, after having bought it at $19.56 on May 4th for a 14% gain.
• Finally, on August 17th we sold MVL at $37.87. We bought it on March 24th at $24.35 for a good 55% gain.

On average we made a 15% gain on these four trades.

That's all for now. Hopefully this week i will be able to analyze some new stocks. But at the same time let' keep an eye on the markets. They look very uncertain to me...