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We Have A Ton Of Short-Term Profits… So Let's Protect Them
The ADR Alert
Monday, August 15, 2005
By Alexander Green, Investment Director
#74
** We Have A Ton Of Short-Term Profits… So Let’s Protect Them
Analysts are finally getting around to noticing that international markets are doing better this year than our domestic market.
But not much better. As of Friday’s close, the Dow and the Nasdaq are both down slightly. Morgan Stanley’s EAFE index, the international benchmark, is up 4%.
Of course, we’re not investing in the international index. We’re investing in an elite selection of the world’s most promising stocks.
As a result, all eight of our positions are profitable. And our average gain is 28% – even though our average holding period is just 77 days.
Now it’s time to protect our profits.
BanColumbia (NYSE: CIB) has been strong out of the gate, up 10% in the first week. Move your sell stop up to $19 here.
We also have a double-digit gain in Marvell Technology (Nasdaq: MRVL). Move your sell stop up to $39 here.
Our shares of Statoil (NYSE: STO) are up 32%. Move your sell stop up to $22 here.
Our shares of Sociedad de Chile (NYSE: SQM) have jumped 38 points since we got in three months ago. Move your sell stop up to $115 here.
Companhia Valde do Rio Doce (NYSE: RIO) remains in an uptrend. We have a 24% short-term gain here. Move your sell stop up to $32 here.
And Canadian Natural Resources (NYSE: CNQ) just keeps on trucking. The stock hit a new 52-week high Friday. Our shares are up 76% since we got in four months ago. Move your sell stop up to $44 to protect your profits here.
Finally, shares of Shanda Interactive, our Chinese gaming stock, continue to be wildly volatile, even though the earnings trends are consistently positive. Last week the company reported a 58% increase in second-quarter earnings on a 72% increase in revenue.
The stock jumped 20% after the announcement before running into a bit of profit-taking. This is easily the riskiest stock in our portfolio. I’m leaving this Mexican jumping bean as a “hold” until the price action settles down.
If you have any questions, feel free to call one of our VIP Trading Services representatives at 888.570.9830 (toll-free) or e-mail: viptrader@oxfordclub.com , or contact Pillar One Advisor Greg Galloway or Rick Pfiefer at 800.438.3040 or 407.667.4729.
Stock
Country
Current Price
Comments
BanColumbia (NYSE: CIB)
Columbia
$22.82
Buy. Move sell stop up to $19.
NICE Systems (Nasdaq: NICE)
Israel
$44.76
Buy. Sell stop is $42.
Shanda Interactive (Nasdaq: SNDA)
China
$37.83
Hold. Sell stop is $31.
Marvell Tech. (Nasdaq: MRVL)
Bermuda
$44.74
Buy. Move sell stop up to $39.
Sociedad de Chile (NYSE: SQM)
Chile
$122.00
Hold. Move sell stop up to $115.
Comp. Rio Doce (NYSE: RIO)
Brazil
$34.67
Buy. Move sell stop up to $32.
Canadian Nat. Res (NYSE: CNQ)
Canada
$48.50
Buy. Move sell stop up to $44.
Statoil ASA (NYSE: STO)
Norway
$23.76
Buy. Move sell stop up to $22.
Bio: Alexander Green is the Investment Director of The Oxford Club. A Wall Street veteran, he has over 16 years experience as a research analyst, investment advisor, and professional portfolio manager. Mr. Green is also considered one of the most talented financial writers in the business. He’s been featured on “The O’Reilly Factor,” profiled by Forbes and Marketwatch.com, and has written for Louis Rukeyser and several other leading financial publications. He currently writes and directs The Oxford Club Communiqué, the Oxford Insight e-letter, and four elite trading services: one focused on momentum stocks, another focused on companies with significant insider buying, another dedicated to international growth stocks and another focused on short-selling fundamentally flawed companies. Mr. Green is also a top-rated speaker at financial conferences around the country.
Copyright – 2005 The Oxford Club, LLC. The Oxford Club does not act as an investment advisor or advocate the purchase or sale of any security or investment. The Oxford Club expressly forbids its writers from having a financial interest in any security recommended to its readers. All of our employees and agents must wait 24 hours after an Internet publication prior to following an initial recommendation. And for hard-copy-only publications, 72 hours after the publication is mailed. Investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. The Oxford Club provides its members with unique opportunities to build and protect wealth, globally, under all market conditions. The executive staff, research department and editors who contribute to The Club’s recommendations are proud of the reputation The Oxford Club has built since its inception in 1984. We believe the advice presented to its members in our published resources and at our meetings and seminars is the best and most useful available to global investors today. The recommendations and analysis presented to members is for the exclusive use of members. Copying or disseminating any information published by The Oxford Club, electronic or otherwise is strictly prohibited. Members should be aware that investment markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not assure future results. Recommendations are subject to change at any time.
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