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Action Galore: We've Hit Four Stops
The ADR Alert
Monday, May 15, 2006
By Alexander Green, Investment Director
#111
** Action Galore: We’ve Hit Four Stops
The U.S. market has been under pressure the last few sessions. But international markets – and in particular emerging markets – have been hit harder.
As a result, we’ve hit four sell stops today. We locked in two gains, Tata Motors (NYSE: TTM) and Dr. Reddy’s Laboratories (NYSE: RDY), one loss, Petro-Canada (NYSE: PCZ), and one wash, Qiagen (Nasdaq: QGEN).
Why are foreign markets seeing more selling? Two reasons. One is that these markets have performed better lately and therefore were more vulnerable to profit-taking. Just the emerging market index, for example, was up 26% for the year as of mid-week last week. So, it’s not surprising to see traders taking something off the table.
The second reason is the greenback. Gold futures were down $25 an ounce this morning. Oil prices have backed off, too. That has caused the dollar to rally a bit after weeks of heavy selling.
As you know, most of our international stocks are denominated in other currencies. So, when the dollar is weak, we get a boost. And when the dollar is strong, we get a haircut.
Let’s let this dollar rally run its course before adding any new foreign-currency-denominated positions.
However, the buy recommendations listed below are still attractive at current levels.
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
Telekom Indo. (NYSE: TLK)
Indonesia
$34.89
Buy. Sell stop is $30.
SAP AG (NYSE: SAP)
Germany
$53.51
Buy. Sell stop at $47.
China Medical (Nasdaq: CMED)
China
$24.50
Buy. Sell stop is $22.
Veolia Environ. (NYSE: VE)
France
$59.15
Buy. Sell stop is $58.
Qiagen (Nasdaq: QGEN)
Netherlands
Sell.
Stock hit trailing stop.
Tata Motors (NYSE: TTM)
India
Take profits!
Stock hit trailing stop.
Petro-Canada (NYSE: PCZ)
Canada
Sell.
Stock hit trailing stop.
Dr. Reddy’s (NYSE: RDY)
India
Take profits!
Stock hit trailing stop.
Bi 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 – 2006 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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