Wiser Trader Stocks and Options Newsletter

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Issue No. 68   February 27, 2006 Prescott, Arizona Systems@WiserTrader.com

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1.0 Trading

      The market has not favored us with a committed direction yet.

1.1 Sideways

        The S&P 500, the NASDAQ, the NYSE Composite and the DOW are all still trading at the top of their short-term and two-year trading ranges, as illustrated by the S&P 500 Index in Figure 1.  Each index has briefly broken above resistance and all remain overbought with falling volume.

FIGURE 1

© 2005 WiserTrader.com, LLC.  Members of wisertrader.com are neither licensed brokers nor licensed advisors.  Trades discussed represent recommendations made by the editor for the wisertrader.com portfolio.  The newsletter and web site are for information only and should not be considered as personal advice.  While it is believed that the posted information is factual, mistakes can be made in transcription.  Investors should trade stocks only after verifying all information and consulting with a licensed broker or adviser.  WiserTrader.commarkets third party trading systems but has no other affiliation with trading system companies.

      On Wednesday, the NASDAQ and S&P 500 began to outpace the DOW and continued to do so for the rest of the week.  Since early February, the DOW has out gained the NASDAQ and S&P 500, signaling a lack of enthusiasm from speculators who move the markets.  Institutional investors, who favor the DOW when it outpaces the S&P have now stopped moving money into the DOW 30, possibly taking a wait and see position. 

      The DOW fell last week while the other major indices rose, implying continued market choppiness.  In this case, choppiness is defined by how frequently the major averages cross the Williams %R neutral line between overbought and oversold.  Three times or more in a single month is considered choppy. 

      Except for the second week of January, the Russell 2000 has outpaced the DOW all year and began to reaccelerate, with respect to the DOW, last week.  This indicates that small caps are outpacing large caps, as seen in Figure 2.

FIGURE 2

2.0 Market Analysis

      While the market is optimistic, it is still obsessed with inflation and interest rate increases.  It hovers at the top of long term and short term trading ranges, as if expecting a miracle that will eliminate two more rate increases expected from the Fed.  The longer it hovers there, the more dramatic a near term pullback will be if the current rate tightening cycle continues longer than expected.

      Key industry ETF’s in Table 2A are Biotech and Semiconductors, which confirm the NASDAQ.  Transportation confirms the Dow Jones Industrial Average according to Dow Theory.  Banking and Financials are confirming indicators for the S&P 500.  Gold and Real Estate are respective indicators for the inverse health of the currency (inflation) and the capacity for consumer spending. 

Table 2A

Indices, Key Industry ETF’s and Sector SPDR’s

	1 month	1 wk ago	2 wks ago	3 wks ago	4 wks ago
Dow Jones Industrial Index	1.4%	-0.5%	1.8%	1.2%	-1.0%
NASDAQ Composite Index	-0.7%	0.2%	0.9%	0.0%	-1.8%
NYSE Composite Index	0.4%	0.2%	1.6%	0.2%	-1.5%
S & P 500 Index	0.4%	0.4%	1.4%	-0.3%	-1.2%
Russell 2000 Index	0.6%	0.8%	1.9%	-1.0%	-1.1%
GLD, GOLD	0.0%	1.2%	0.3%	-3.0%	1.6%
RKH, Banking	3.7%	2.0%	2.3%	1.6%	-2.1%
IYT, Transportation	3.4%	0.9%	2.1%	1.4%	-1.0%
SMH, Semiconductors	-3.3%	-2.5%	-0.6%	2.7%	-3.0%
BBH, Biotechnology	1.4%	0.9%	2.7%	-3.1%	1.1%
IYR, Real Estate	2.1%	0.6%	3.3%	-0.4%	-1.3%
OIH, Oil	-8.4%	2.5%	-4.4%	-4.6%	-2.2%
XLE, Energy	-5.3%	1.2%	0.9%	-4.9%	-2.5%
XLU, Utilities	0.4%	0.7%	1.6%	0.4%	-2.3%
XLB, Materials	0.4%	0.2%	2.4%	-0.6%	-1.6%
XLI, Industrial	3.3%	0.4%	2.1%	1.3%	-0.6%
XLK, Technology	0.0%	-1.0%	1.3%	1.7%	-2.0%
XLV, Healthcare	1.2%	0.0%	2.0%	0.1%	-0.9%
XLF, Financials	2.2%	1.4%	1.6%	1.1%	-1.8%
XLP, Consumer Staples	0.6%	0.2%	1.8%	-0.1%	-1.3%
XLY, Consumer Discretionary	0.1%	-0.5%	1.1%	0.4%	-0.9%

Volatility Indices

Indicator	Current	Last Week	2 Weeks Ago	Complacent	Cautious
VIX **	11.5	12.0	12.9	< 20	> 50
VXN ***	15.2	15.0	16.9	< 30	> 70
**   Below 20 day SMA = Short-term buy signal. *** Below 20 day SMA = Short-term buy signal.

      Figure 1 compares index tracking stocks for the major averages with key ETF’s and Sector SPDR’s.

FIGURE 1

Table 2C

Market Summary

 Major Indices 
 For the Past Week:
 Dow Jones     -0.5%
 NASDAQ        +0.2%
 S&P500 Index  +0.2%
 Russell 2000  +0.8%
 NYSE          +0.4%
 
 30 Year Bond 4.515%
 10 Year Note 4.587%
 
 Leading Industries
 For the Past Week:
 Coal 
 Steel 
 Heavy Construction 
 Mining 
 Gold Mining 
 Home Construction 
 Water 
 Transportation Services 
 Mortgage Finance 
 Recreational Products                
 
 Lagging Industries
 For the Past Week:
 Automobiles 
 Recreational Services 
 Automobiles & Parts 
 Computer Hardware 
 Semiconductors 
 Fixed Line Telecommunications 
 Medical Equipment 
 Commodity Chemicals 
 Telecommunications 
 Technology Hardware & Equipt       
 
 Leading Industries
 For the Past Month:
 Commercial Vehicles & Trucks 
 Fixed Line Telecommunications 
 Industrial Engineering 
 Steel 
 Telecommunications 
 Real Estate Holding & Devel 
 Waste & Disposal Services 
 Defense 
 Building Materials & Fixtures 
 Trucking    
 
 Lagging Industries
 For the Past Month:
 Tires 
 General Mining 
 Internet 
 Automobiles 
 Travel & Tourism 
 Automobiles & Parts 
 Oil Equipment & Services 
 Oil Equipment, Services & Dis 
 Exploration & Production 
 Auto Parts                    
 
 Crude Oil $62.91
 
 Gold for the past 30 days:
 USD    -0.83%
 CAD    -0.63%
 CHF    +3.46%
 GBP    +1.68%
 EUR    +2.49%
 JPY    +0.25%

3.0 Procedure

      The following watch lists contain stock candidates for consideration.  They are not necessarily trades.  Categories include checklists for insider buying and cash rich companies, as well as, filters that employ stock picking methods used by master traders. 

      Current stock rankings are based on the degree to which stocks are overbought or over sold based on the 28-period Williams %R for the past two trading days.  Two columns are labeled “%R1” and “%R2” with “%R2” indicating the Williams %R for the most recent trading day.  Of course, values more negative than -80 are oversold and those less negative than -20 are overbought.

      One should keep in mind that oversold stocks are not necessarily ready to move upward.  They could very well be in a condition of continuous decline.  The lists are meant to serve as a starting point for further due diligence. 

      A column labeled “Monthly % Gain” was added to show the inverse relationship between price action over the past month and the Williams %R.  The change from a 10-period Williams %R with a weekly percent change to a 28-period Williams %R with a monthly percent change was done to reflect a longer term view.

      The “Reference” is the date that a stock passed the indicated filter and was first added to or returned to the list.  The “% Change” is how the price has changed since the reference date.  Stocks that are down 10% or more after being listed are removed for a period of about two months.  The “% from Max” is the percentage the price has declined from the maximum price reached since the reference date.  Stocks that are down 8% from their highs after being listed are flagged in yellow.  Stocks that are down 15% from their highs after being listed are removed for two months.  More information on filters is available on the web site.

      A performance summary of filtering techniques for checklists and master trader selection methods is given in Table 3A. 

Table 3A

Stock Filter Summary

Filter	Avg. % Change Since Listed	Avg. % Change Friday	1 Month	1 Week Ago	2 weeks Ago	3 Weeks Ago	4 Weeks Ago
Net Insider Buying	11.9%	0.4%	1.8%	0.2%	1.1%	-1.3%	1.7%
Cash Rich Companies	3.4%	0.3%	-3.2%	-1.3%	1.1%	-0.3%	-2.9%
Price to Free Cash Flow	-0.7%	1.8%	-7.3%	-2.7%	-1.4%	0.3%	-3.6%
Growth Momentum Stocks	15.3%	0.3%	3.7%	1.6%	1.6%	1.1%	-0.6%
Lynch Stocks	23.6%	0.9%	2.3%	2.8%	0.7%	-0.8%	-0.3%
Buffett Stocks	17.7%	0.2%	0.6%	1.6%	0.3%	-1.0%	-0.3%
Graham Stocks	13.8%	0.0%	0.0%	0.5%	2.4%	-0.1%	-2.7%
Templeton Stocks	4.6%	0.3%	2.3%	1.1%	1.4%	-0.4%	0.2%
Zweig Stocks	19.2%	0.6%	4.4%	1.9%	2.0%	0.0%	0.4%
Average Long Stocks	12.1%	0.5%	0.5%	0.6%	1.0%	-0.3%	-0.9%

Key

Passed Recent Filter

Price declined by half of stop loss setting

Oversold  based on  Williams %R  (%R2 is most recent)

Overbought based on Williams %R  (%R2 is most recent)

      Companies that have experienced net insider buying within the past 6 months of 5% or more of issued stock are listed in Table 3B.  These stocks should also appear in one of the master trader screens or meet additional screening criteria before being given serious consideration.  This list is a mixture of stocks that are optionable and those that are not.

Table 3B

Net Insider Buying Check List

Stock	Reference	% Chg	Company	Sector	Industry	% from Max	Monthly % Gain	%R1	%R2
VSTA	10/21/05	3.6%	VistaCare, Inc.	Health Care	Healthcare Facilities	-8.2%	-2.7%	-77	-81
TRMA	01/06/06	11.1%	Trico Marine Services Inc	Energy	Oil Well Services & Equipment	-11.1%	-9.3%	-73	-72
CWEI	12/09/05	0.0%	Clayton Williams Energy, Inc.	Energy	Oil & Gas Operations	-13.7%	-10.6%	-82	-69
ULBI	02/17/06	-1.9%	Ultralife Batteries, Inc.	Technology	Electronic Instruments & Controls	-1.9%	-1.9%	-80	-67
NTOP	01/20/06	-0.5%	Net2Phone, Inc.	Services	Communications Services	-1.5%	-1.5%	-67	-67
NAHC	02/24/06	0.0%	National Atlantic Holdings Corporation	Financial	Insurance (Property & Casualty)	0.0%	-3.2%	-36	-60
MEAD	12/23/05	19.1%	Meade Instruments Corp.	Technology	Scientific & Technical Instruments	-7.7%	-0.3%	-41	-50
MMLP	11/25/05	0.0%	Martin Midstream Partners L.P.	Transportation	Water Transportation	-7.2%	-1.2%	-59	-48
MBRX	10/14/05	52.8%	Metabasis Therapeutics, Inc.	Health Care	Biotechnology & Drugs	-2.6%	0.7%	-18	-39
SOMX	01/13/06	37.1%	Somaxon Pharmaceuticals, Inc.	Health Care	Biotechnology & Drugs	-11.9%	-1.3%	-25	-32
AMIC	01/13/06	0.3%	American Independence Corp.	Financial	Insurance (Miscellaneous)	-0.7%	2.1%	-16	-23
LXU	12/23/05	3.9%	LSB Industries, Inc.	Basic Materials	Chemical Manufacturing	-1.9%	6.5%	-25	-18
BDOG	12/16/05	29.1%	Big Dog Holdings, Inc.	Services	Retail (Apparel)	0.0%	13.8%	-29	-12
NXTM	01/06/06	8.8%	NxStage Medical, Inc.	Health Care	Biotechnology & Drugs	0.0%	19.0%	-25	-6
SNSS	12/16/05	15.2%	Sunesis Pharmaceuticals, Inc.	Health Care	Major Drugs	0.0%	16.2%	-12	0

      Companies with net cash positions that comprise at least 40% of their share price are listed in Table 3C.  These stocks should also appear in one of the master trader screens or meet additional screening criteria before being given serious consideration.  Again, this list is a mixture of stocks that are optionable and those that are not.

Table 3C

Capital Rich Companies Check List

Stock	Reference	% Chg	Company	Sector	Industry	% from Max	Monthly % Gain	%R1	%R2
KEYN	02/17/06	-2.9%	Keynote Systems, Inc.	Technology	Computer Services	-2.9%	-9.0%	-89	-88
WSC	07/01/05	9.6%	Wesco Financial Corporation	Conglomerates	Conglomerates	0.0%	2.6%	-19	-8

      Table 3D was added to contain companies having a low price to free cash flow (P-FCF) less than 5.  Companies having P-FCF less than 10 are typically capable of financing the purchase of all their outstanding shares of stock.

Table 3D

Price to Free Cash Flow Companies Check List

Stock	Reference	% Chg	Company	Sector	Industry	% from Max	Monthly % Gain	%R1	%R2
F	11/11/05	1.6%	FORD MOTOR	Consumer Cyclical	Auto & Truck Manufacturers	-9.3%	-6.4%	-67	-74
BBI	01/20/06	-3.1%	Blockbuster Inc.	Services	Recreational Activities	-11.1%	-8.3%	-93	-72

      For the Peter Lynch screen in Table 3E, the number of selections is reduced by selecting only optionable stocks having P/E’s less than 30. 

Table 3E

Peter Lynch Value Watch List

Stock	Reference	% Chg	Company	Sector	Industry	% from Max	Monthly % Gain	%R1	%R2
AZN	02/03/06	-1.5%	AstraZeneca PLC (ADR)	Health Care	Major Drugs	-1.5%	-4.7%	-74	-73
CHL	03/18/05	44.9%	China Mobile (Hong Kong) Limited (ADR)	Services	Communications Services	-4.5%	-0.6%	-28	-15
KOF	04/29/05	32.1%	Coca-Cola FEMSA, S.A. (ADR)	Consumer Non-Cyclical	Beverages (Non-Alcoholic)	0.0%	0.8%	-33	-14
BTI	08/12/05	15.7%	British American Tobacco (ADR)	Consumer Non-Cyclical	Tobacco	0.0%	4.5%	-9	-9
PKX	02/17/06	7.5%	POSCO (ADR)	Basic Materials	Iron & Steel	0.0%	7.5%	-20	-3
SKM	02/07/05	21.4%	SK Telecom Co., Ltd. (ADR)	Services	Communications Services	0.0%	6.2%	-9	-2
TM	12/13/04	44.9%	Toyota Motor Corporation (ADR)	Consumer Cyclical	Auto & Truck Manufacturers	0.0%	6.1%	-12	-1

      For the screen in Table 3F, the number of selections is reduced by selecting only optionable stocks having P/E’s less than 30. 

Table 3F

Growth Momentum Watch List

Stock	Reference	% Chg	Company	Sector	Industry	% from Max	Monthly % Gain	%R1	%R2
AHC	02/03/06	0.0%	Amerada Hess Corporation	Energy	Oil & Gas - Integrated	-5.2%	-5.9%	-69	-70
ADTN	11/25/05	0.0%	ADTRAN, Inc.	Technology	Communications Equipment	-12.0%	-3.6%	-71	-68
MOT	12/09/05	-7.3%	Motorola, Inc.	Technology	Communications Equipment	-11.6%	-3.6%	-65	-68
VIP	12/09/05	0.4%	Vimpel-Communications (ADR)	Services	Communications Services	-8.6%	-3.5%	-74	-68
BHP	09/09/05	16.1%	BHP Billiton Limited (ADR)	Basic Materials	Metal Mining	-7.5%	-7.1%	-63	-62
APC	02/10/06	0.0%	Anadarko Petroleum Corporation	Energy	Oil & Gas Operations	-0.7%	-4.7%	-63	-53
UNH	04/15/05	26.3%	UnitedHealth Group Inc.	Financial	Insurance (Accident & Health)	-7.7%	0.6%	-39	-47
PCU	12/02/05	21.4%	Southern Copper Corporation (USA)	Basic Materials	Metal Mining	-10.6%	1.2%	-50	-46
HCC	10/21/05	19.6%	HCC Insurance Holdings, Inc.	Financial	Insurance (Property & Casualty)	-1.9%	4.7%	-28	-34
ZIGO	12/09/05	13.6%	Zygo Corporation	Technology	Semiconductors	-2.5%	5.7%	-24	-27
LM	08/12/05	24.8%	Legg Mason, Inc.	Financial	Investment Services	-0.2%	1.9%	-25	-27
CHB	02/17/06	-0.3%	Champion Enterprises, Inc.	Capital Goods	Construction Services	-2.1%	10.0%	-16	-26
GOL	12/16/05	22.7%	GOL Linhas Aereas Inteligentes SA (ADR)	Transportation	Airline	-3.4%	7.3%	-11	-16
BR	02/24/06	0.0%	Burlington Resources Inc.	Energy	Oil & Gas Operations	0.0%	-0.3%	-35	-16
EXP	02/03/06	5.0%	Eagle Materials, Inc.	Capital Goods	Construction - Raw Materials	0.0%	0.6%	-15	-15
CHE	05/06/05	45.5%	Chemed Corporation	Services	Business Services	0.0%	7.1%	-16	-8
SYT	04/08/05	35.2%	Syngenta AG (ADR)	Basic Materials	Chemical Manufacturing	-1.1%	14.1%	-8	-8
BEN	11/04/05	12.0%	Franklin Resources, Inc.	Financial	Investment Services	0.0%	1.1%	-19	-8
WSO	11/25/05	18.5%	Watsco, Incorporated	Capital Goods	Misc. Capital Goods	0.0%	2.7%	-15	-8
WCC	02/10/06	8.5%	WESCO International, Inc.	Technology	Electronic Instruments & Controls	-1.1%	22.5%	-4	-7
ET	10/21/05	39.8%	E*TRADE FINANCIAL Corporation	Financial	Investment Services	0.0%	7.1%	-19	-6
OSK	03/12/05	43.7%	Oshkosh Truck Corporation	Consumer Cyclical	Auto & Truck Manufacturers	0.0%	15.8%	-7	-1
ENDP	02/17/06	5.6%	Endo Pharmaceuticals	Health Care	Biotechnology & Drugs	0.0%	5.6%	-8	0

      The filter for Warren Buffet style stock picking in Table 3G is for the intermediate to long term.  Two requirements were added.  One was to include only optionable stocks in order to find LEAPS opportunities.  The other requirement was to include only those stocks having a PE of 17 or less.

Table 3G

Warren Buffett Value Watch List

Stock	Reference	% Chg	Company	Sector	Industry	% from Max	Monthly % Gain	%R1	%R2
CCRT	12/30/05	0.5%	CompuCredit Corporation	Financial	Consumer Financial	-7.7%	-2.4%	-75	-90
SPF	02/03/06	-7.0%	Standard Pacific Corp.	Capital Goods	Construction Services	-7.0%	-13.6%	-81	-89
ABFS	04/29/05	34.7%	Arkansas Best Corporation	Transportation	Trucking	-6.7%	-0.6%	-68	-76
APA	02/03/06	-5.8%	Apache Corporation	Energy	Oil & Gas Operations	-6.7%	-3.1%	-87	-75
KSWS	10/14/05	2.1%	K-Swiss Inc.	Consumer Cyclical	Footwear	-13.9%	-8.4%	-73	-73
NAT	02/24/06	0.0%	Nordic American Tanker Shipping	Transportation	Water Transportation	0.0%	-0.9%	-60	-69
DSPG	02/07/05	9.3%	DSP Group, Inc.	Technology	Communications Equipment	-9.2%	-4.5%	-84	-69
FNF	10/21/05	3.8%	Fidelity National Financial	Financial	Insurance (Prop& Cas)	-4.0%	-3.2%	-62	-58
LNCR	12/27/04	-1.9%	Lincare Holdings Inc.	Health Care	Healthcare Facilities	-10.1%	-3.8%	-50	-57
PSUN	12/09/05	-4.3%	Pacific Sunwear of CA	Services	Retail (Apparel)	-5.8%	-1.7%	-35	-55
TBL	02/17/06	-1.2%	The Timberland Company	Consumer Cyclical	Footwear	-1.2%	1.3%	-47	-52
HDI	10/14/05	6.7%	Harley-Davidson, Inc.	Consumer Cyclical	Recreational Products	-5.8%	-3.9%	-54	-50
TOL	02/17/06	12.1%	Toll Brothers, Inc.	Capital Goods	Construction Services	-0.6%	12.1%	-50	-49
MDC	01/20/06	-2.7%	M.D.C. Holdings, Inc.	Capital Goods	Construction Services	-2.7%	-0.7%	-44	-47
PCU	02/10/06	-2.0%	Southern Copper Corporation (USA)	Basic Materials	Metal Mining	-2.0%	1.2%	-50	-46
SCHN	02/10/06	4.5%	Schnitzer Steel Industries, Inc.	Basic Materials	Iron & Steel	0.0%	-3.6%	-47	-45
CECO	02/17/06	-0.2%	Career Education Corp.	Services	Schools	-0.2%	-0.2%	-48	-32
MTH	01/27/06	1.1%	Meritage Homes Corporation	Capital Goods	Construction Services	-0.7%	1.1%	-37	-23
RCII	10/21/05	43.9%	Rent-A-Center, Inc	Services	Rental & Leasing	-2.4%	14.4%	-23	-23
RI	09/02/05	33.3%	Ruby Tuesday, Inc.	Services	Restaurants	-0.8%	-0.8%	-22	-18
ASH	10/28/05	23.9%	Ashland Inc.	Capital Goods	Construction Services	-0.2%	0.6%	-36	-14
NUE	04/15/05	77.7%	Nucor Corporation	Basic Materials	Iron & Steel	-1.3%	1.4%	-12	-10
BTI	12/30/05	3.5%	British American Tobacco (ADR)	Consumer Non-Cyclical	Tobacco	0.0%	4.5%	-9	-9
STLD	12/16/05	38.4%	Steel Dynamics, Inc.	Basic Materials	Iron & Steel	-0.5%	5.8%	-7	-7
ACS	04/29/05	32.1%	Affiliated Computer Services, Inc.	Technology	Computer Services	-0.5%	-0.5%	-12	-6
THO	04/15/05	64.1%	Thor Industries, Inc.	Capital Goods	Mobile Homes & RVs	0.0%	3.7%	-10	-5
NKE	09/23/05	7.3%	NIKE, Inc.	Consumer Cyclical	Footwear	-4.6%	4.9%	-13	-4
RS	04/15/05	128.2%	Reliance Steel & Aluminum	Basic Materials	Misc. Fabricated Products	0.0%	8.6%	-8	-3
AH	02/03/06	9.8%	Armor Holdings, Inc.	Capital Goods	Aerospace and Defense	0.0%	18.5%	-10	-3

      Stocks from Benjamin Graham’s style of utility investing are listed in Table 3H.  A requirement was added to include only those stocks having a PE of 17 or less. 

Table 3H

Benjamin Graham Utility Watch List

Stock	Reference	% Chg	Company	Sector	Industry	% from Max	Monthly % Gain	%R1	%R2
PNW	01/10/05	-4.4%	Pinnacle West Capital	Utilities	Electric Utilities	-11.2%	-5.3%	-81	-92
CPK	05/06/05	16.7%	Chesapeake Utilities	Utilities	Natural Gas Utilities	-13.7%	-2.8%	-95	-89
WPS	02/07/05	3.4%	WPS Resources Corp	Utilities	Electric Utilities	-10.5%	-7.1%	-70	-80
ATO	04/01/05	-2.0%	Atmos Energy Corporation	Utilities	Natural Gas Utilities	-11.3%	0.2%	-61	-59
ATG	10/21/05	7.8%	AGL Resources Inc.	Utilities	Natural Gas Utilities	-1.9%	-1.6%	-50	-38
SRE	01/10/05	34.4%	Sempra Energy	Utilities	Natural Gas Utilities	-0.3%	0.7%	-31	-29
PGN	01/10/05	0.8%	Progress Energy, Inc.	Utilities	Electric Utilities	-2.9%	1.9%	-27	-25
UGI	12/30/05	8.3%	UGI Corporation	Utilities	Natural Gas Utilities	-0.8%	1.7%	-12	-18
UU	06/10/05	1.4%	United Utilities PLC (ADR)	Utilities	Electric Utilities	-0.9%	0.3%	-21	-15
OKE	11/11/05	16.3%	ONEOK, Inc.	Utilities	Natural Gas Utilities	-0.9%	11.6%	-8	-12
WGL	12/23/05	2.1%	WGL Holdings, Inc.	Utilities	Natural Gas Utilities	-0.3%	-0.2%	-24	-12
KEP	01/10/05	80.7%	Korea Electric Power Corporation (ADR)	Utilities	Electric Utilities	-1.1%	1.0%	-12	-10

      Optionable stocks from John Templeton’s style of investing are listed in Table 3I. 

Table 3I

John Templeton Watch List

Stock	Reference	% Chg	Company	Sector	Industry	% from Max	Monthly % Gain	%R1	%R2
MIK	12/30/05	-9.9%	Michaels Stores, Inc.	Services	Retail (Specialty Non-Apparel)	-9.9%	-7.4%	-88	-92
JNJ	02/17/06	-2.2%	Johnson & Johnson	Health Care	Major Drugs	-2.3%	-2.2%	-68	-82
CAKE	10/21/05	5.2%	The Cheesecake Factory Incorporated	Services	Restaurants	-6.2%	-2.0%	-75	-76
WSM	09/02/05	5.0%	Williams-Sonoma, Inc.	Services	Retail (Specialty Non-Apparel)	-11.6%	-1.9%	-69	-59
DHI	02/03/06	1.7%	D.R. Horton Inc.	Capital Goods	Construction Services	-1.6%	-5.9%	-52	-51
HDI	02/24/06	0.0%	Harley-Davidson, Inc.	Consumer Cyclical	Recreational Products	0.0%	0.9%	-54	-50
HHS	10/28/05	11.7%	Harte-Hanks, Inc.	Services	Printing & Publishing	-5.2%	10.1%	-51	-47
MDC	12/30/05	2.2%	M.D.C. Holdings, Inc.	Capital Goods	Construction Services	-5.3%	-0.7%	-44	-47
UNH	12/30/05	-5.2%	UnitedHealth Group Inc.	Financial	Insurance (Accident & Health)	-6.4%	0.6%	-39	-47
PCU	02/10/06	-2.0%	Southern Copper Corporation (USA)	Basic Materials	Metal Mining	-2.0%	1.2%	-50	-46
CHD	11/18/05	5.4%	Church & Dwight Co., Inc.	Consumer Non-Cyclical	Personal & Household Products	-4.4%	0.5%	-58	-45
JBHT	02/03/06	2.8%	J.B. Hunt Transport Services, Inc.	Transportation	Trucking	-7.1%	5.3%	-30	-44
EWBC	12/30/05	1.5%	East West Bancorp, Inc.	Financial	Regional Banks	-1.5%	-1.5%	-52	-37
ORLY	01/20/06	6.8%	O'Reilly Automotive, Inc.	Services	Retail (Specialty Non-Apparel)	-2.4%	2.3%	-28	-36
AMSG	10/14/05	-0.8%	AmSurg Corp.	Health Care	Healthcare Facilities	-6.3%	3.8%	-41	-34
LOW	11/18/05	-0.7%	Lowe's Companies, Inc.	Services	Retail (Home Improvement)	-5.6%	0.6%	-27	-26
GISX	12/30/05	5.3%	Global Imaging Systems, Inc.	Technology	Office Equipment	-0.9%	2.0%	-26	-24
CPS	05/27/05	13.8%	ChoicePoint Inc.	Services	Business Services	-1.5%	7.3%	-35	-21
DGX	08/19/05	6.2%	Quest Diagnostics Incorporated	Health Care	Healthcare Facilities	-1.0%	5.4%	-6	-16
SNV	05/27/05	-2.4%	Synovus Financial Corp.	Financial	Regional Banks	-4.7%	2.8%	-9	-6
SFG	05/27/05	44.2%	StanCorp Financial Group, Inc.	Financial	Insurance (Life)	-0.1%	9.1%	-6	-2
EDMC	12/16/05	13.4%	Education Management Corp	Services	Schools	0.0%	24.3%	-16	0

      Optionable stocks from Martin Zweig’s style of investing are listed in Table 3J. 

Table 3J

Martin Zweig Watch List

Stock	Reference	% Chg	Company	Sector	Industry	% from Max	Monthly % Gain	%R1	%R2
APA	12/23/05	-1.6%	Apache Corporation	Energy	Oil & Gas Operations	-8.4%	-3.1%	-87	-75
CDIS	02/17/06	4.3%	Cal Dive International, Inc.	Energy	Oil Well Services & Equipment	0.0%	4.3%	-87	-74
MOT