Great Earnings From Icon and Taiwan Semi

The ADR Alert
Tuesday, October 31, 2006
By Alexander Green, Investment Director

Email – #133

** Great Earnings From Icon and Taiwan Semi

It’s been another good week for our international stocks: Our portfolio is currently up 14%, and our average holding period is 69 days.

Icon PLC (Nasdaq: ICLR) reported a 63% increase in earnings last week on a 40% increase in revenue. Furthermore, the company was awarded $157 million in net new business during the quarter, a 29% increase.
No wonder our shares hit another 52-week high last week. We have a short-term gain here of 39%.

Our shares also split 2-for-1 last Tuesday. That adjusted our sell stop to $34.

VimpelCom (NYSE: VIP) also hit another 52-week high last week. We have a 30% gain here in two months. Raise your sell stop to $61 to protect your profits here.

Taiwan Semiconductor (NYSE: TSM) announced third-quarter results last week, too. Sales and margins are both moving up sharply. (And while there is no share buyback going on currently, neither is there any dilution.)

TSM is spending $750 million on 12-inch wafer production equipment this year, reducing immediate cash flow. But it bodes well for next year’s earnings. As institutions pick up on this, they are likely to bid the stock higher.

Rofin-Sinar Technologies (Nasdaq: RSTI), our newest addition, also got off to a good start last week by moving a couple points higher. The laser manufacturer will announce quarterly results a week from Thursday. I’m expecting good news here. Keep buying.

Gerdau Steel (NYSE: GGB) will report third-quarter earnings a week from today. Sellers of building materials have generally been under pressure lately and the Brazilian steel maker has been no exception. Our shares are only a half point above our entry price.

Next week’s forward guidance will give us a better picture of where Gerdau is headed in the near-term. Until then, I’m moving the stock to a hold and suggesting you raise your sell stop to $13.50, to stay on the safe side.

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.

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Stock
Country
Current Price
Comments

Rofin-Sinar Tech.(Nasdaq: RSTI)
Germany
$62.41
Buy. Sell stop is $50.

Focus Media(Nasdaq: FMCN)
China
$56.30
Buy. Sell stop is $53.

Gerdau S.A.(NYSE: GGB)
Brazil
$14.51
Hold. Move sell stop up to $13.50.

Vimpel Comm.(NYSE: VIP)
Russia
$64.97
Buy. Move sell stop up to $61.

Taiwan Semi.(NYSE: TSM)
Taiwan
$9.67
Buy. Sell stop is $9.

Icon PLC(Nasdaq: ICLR)
Ireland
$35.99
Buy. Sell stop is $34.

Investor Bulletin