New Profits In Gerdau and VimpelCom

The ADR Alert
Tuesday, January 19, 2007
By Alexander Green, Investment Director

Email – #143

** New Profits In Gerdau and VimpelCom

Last week, we hit our sell stop in both Gerdau Steel (NYSE: GGB) and Vimpel Communications (NYSE: VIP), realizing short-term gains in both. 

With Gerdau, we locked in an 8% gain in four months. With VimpelCom, we did considerably better. 

We began buying the Russian cellular company on August 22, at $50.30. When we hit our sell stop at $74 last week, we banked a short-term gain of 47%. 

(We also had considerable success along the way with our VimpelCom January $55 calls. We sold half our position on September 5 for a 181.6% gain. We sold half the remaining balance on September 27 for a 279.6% gain. And we closed out the balance last month for a 962% gain.) 

Our current holdings are all profitable, too… Even Homex (NYSE: HXM), which we only added last week, sprinted up two and a half points before the end of the week. 

Taiwan Semiconductor (NYSE: TSM) hit a new 52-week high on Friday. We have a short-term gain of 25% here. 

And our January $10 calls (OXU-AB) are up 156%. Go ahead and sell them at market today. Expiration is only a few days away. 

Ryanair (Nasdaq: RYAAY) also hit a new 52-week high last week, before backing off a bit on Friday. I’m moving the stock to a hold today, due to its proximity to our sell stop at $85. Don’t sell your shares . If the stock begins trending up again, I’ll put it back on our buy list. 

Tata Motors (NYSE: TTM) is close to hitting a new high, as well. We’ve got a double-digit gain here in just over three weeks. Raise your sell stop to $19.50 . 

And sell half your Tata April $27 calls (TTM-DX). They’re up over 130%.

With the exception of Ryanair, all the recommendations below are worth buying at current prices. 

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.

All International Trader Alert recommendations will be posted on The Oxford Club’s website.  Simply go to http://www.oxfordclub.com and click on “International Trader Alert.” (NYSE: GGB) and Vimpel Communications (NYSE: VIP), realizing short-term gains in both.

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Stock

Country

Current Price

Comments

Homex Develop. (NYSE: HXM)
Mexico
$59.42
Buy. Sell stop is $46.

Tata Motors (NYSE: TTM)
India
$21.42
Buy. Move sell stop up to $19.50. Sell 1/2 options.

Ryanair (Nasdaq: RYAAY)
Ireland
$88.78

Hold . Sell stop is $85.

Logitech Intern. (Nasdaq: LOGI)
Switzerland
$29.27
Buy. Sell stop is $23.

Rofin-Sinar Tech. (Nasdaq: RSTI)
Germany
$61.72
Buy. Sell stop is $50.

Gerdau S.A. (NYSE: GGB)
Brazil

Take profits!

Stock hit trailing stop.

Vimpel Comm. (NYSE: VIP)
Russia

Take profits!

Stock hit trailing stop.

Taiwan Semi. (NYSE: TSM)
Taiwan
$11.25
Buy. Sell stop is $9.30. Sell option position.

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