Stay the Course… and Tighten Your Stops

The ADR Alert
Wednesday, September 27, 2006
By Alexander Green, Investment Director

Email – #128

** Stay the Course… and Tighten Your Stops

Talk about a close shave. On Monday, Gerdau (NYSE: GGB) traded all the way down to within a penny of our sell stop at $12.50 before rebounding to $13.30 today.

Fortunately, the decline was due to weakness in the Brazilian market. There was no negative news on the company. So I’m keeping the stock on our buy list for now.

Elsewhere in our international portfolio, lots of good things are happening. For example, Icon PLC (Nasdaq: ICLR) is closing in on a new 52-week high. Our shares are up 35% since we got in three months ago. Move your sell stop up to $66 to protect your profits here.

VimpelCom (NYSE: VIP) is also making a nice move. We have a 22% gain here since we got in four weeks ago. Move your sell stop up to $56 here.

And our January VimpelCom $55 calls (VIQ-AK) are up 280%. We’ve already taken partial profits here. Go ahead and sell half your remaining position at market today. We’ll let the balance ride for potentially bigger gains before expiration.

We have a profit in Taiwan Semiconductor (NYSE: TSM), too. Move your sell stop up to $8.50 here. There is plenty of consolidation going on in the chip sector right now. I still see plenty of upside here. So keep buying.

In fact, all five stocks listed below are worth buying 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 & Symbol

Country
Current Price
Comments

Gerdau S.A. (NYSE: GGB)
Brazil
$13.37
Buy. Sell stop is $12.50.

Vimpel Comm. (NYSE: VIP)
Russia
$61.27
Buy. Move sell stop up to $56.
Sell 1/2 of option pos.

Altana (NYSE: AAA)
Germany
$56.05
Buy. Sell stop is $52.

Taiwan Semi. (NYSE: TSM)
Taiwan
$9.71
Buy. Move sell stop up to $8.50.

Icon PLC (Nasdaq: ICLR)
Ireland
$70.41
Buy. Move sell stop up to $66.

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