Wiser Trader Stocks and Options Newsletter

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Issue No. 72   April 3, 2006 Prescott, Arizona Systems@WiserTrader.com

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1.0 Trading

      The NASDAQ and Russell 2000 outperformed the DOW and S&P 500 this week.

1.1 Relative Gains

        The chart in Figure 1 illustrates relative percentage gains over the past 2 months for the major averages.  The relative percentage gain curves are formed by subtracting out the percentages gains of either the S&P 500 or the DOW.  Over the past week, there has been acceleration in relative movement of the Russell 2000 and the NASDAQ compared to the DOW and S&P 500.  If this continues, it indicates that not only is the retail investor optimistic but also that further opportunities are seen in entrepreneurial stocks.  Earnings warnings have been rather sparse.

FIGURE 1

© 2006 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. 

      While the NASDAQ is still within its 2-year rising wedge, it has broken above of its 3-month flag configuration, as seen in Figure 2.  The Russell 2000 in Figure 3 has broken above its 2-year rising wedge. 

FIGURE 2

FIGURE 3

      It should be noted that the DOW and the S&P 500, to a lesser extent, lagged behind the benchmark NYSE Composite index this week. 

2.0 Market Analysis

      This week bond yields rose and the most interest rate sensitive stocks began to consolidate.  The financially weighted S&P 500 and the large cap weighted DOW pulled back while the technology weighted NASDAQ and small cap Russell 2000 moved ahead.  The Fed policy statement remained intact with the same expectations for at least one or two more rate hikes. 

      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 Housing 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	0.8%	-1.5%	0.0%	1.8%	0.5%
NASDAQ Composite Index	1.6%	1.2%	0.3%	2.0%	-1.8%
NYSE Composite Index	0.6%	-0.6%	-0.3%	2.0%	-0.5%
S & P 500 Index	1.4%	-0.2%	-0.2%	2.4%	-0.5%
Russell 2000 Index	3.6%	1.5%	1.0%	2.7%	-1.6%
HGX, Phil. Housing Index	2.9%	-1.7%	-0.3%	7.4%	-2.2%
IYR, Real Estate	5.1%	1.1%	-3.0%	4.4%	2.7%
GLD, GOLD	3.2%	4.3%	1.1%	2.4%	-4.4%
RKH, Banking	0.3%	-1.4%	-0.5%	2.0%	0.2%
IYT, Transportation	1.6%	1.0%	-0.7%	2.4%	-1.1%
SMH, Semiconductors	-4.3%	0.3%	1.8%	-1.1%	-5.3%
BBH, Biotechnology	-0.6%	-0.3%	-2.4%	3.8%	-1.5%
OIH, Oil	2.6%	2.9%	1.0%	5.1%	-6.1%
XLE, Energy	0.5%	1.0%	0.4%	4.4%	-5.1%
XLU, Utilities	-4.6%	-2.1%	-2.1%	1.4%	-1.8%
XLB, Materials	1.9%	0.9%	-0.4%	2.8%	-1.4%
XLI, Industrial	3.2%	0.4%	-0.3%	2.9%	0.3%
XLK, Technology	0.6%	0.2%	-0.1%	1.8%	-1.3%
XLV, Healthcare	-1.2%	-2.1%	-0.1%	0.9%	0.2%
XLF, Financials	0.1%	-1.0%	-0.7%	1.4%	0.4%
XLP, Consumer Staples	0.2%	-1.6%	0.1%	-0.8%	2.5%
XLY, Consumer Discretionary	0.5%	-0.4%	-0.7%	2.0%	-0.4%

      The VIX and VXN volatility indexes are listed in Table 2B.

Table 2B

Volatility

Indicator	Current	Last Week	2 Weeks Ago	Complacent	Cautious
VIX **	11.4	11.2	12.1	< 20	> 50
VXN ***	16.3	15.9	15.4	< 30	> 70
**   Below 20 day SMA = Short-term buy signal. *** Below 20 day SMA = Short-term buy signal.

      Figure 4 compares the major averages with key ETF’s and Sector SPDR’s.

FIGURE 4

Table 2C

Market Summary

 Major Indices 
 For the Past Week:
 Dow Jones     -1.5%
 NASDAQ        +1.2%
 S&P500 Index  -0.6%
 Russell 2000  +1.5%
 NYSE          -0.2%
 
 30 Year Bond 4.893%
 10 Year Note 4.853%
 
 Leading Industries
 For the Past Week:
 General Mining 
 Nonferrous Metals 
 Gold Mining 
 Internet 
 Mining 
 Real Estate Holding & Devel 
 Industrial Metals 
 Oil Equipment & Services 
 Basic Resources 
 Gambling                     
 
 Lagging Industries
 For the Past Week:
 Mortgage Finance 
 Pharmaceuticals 
 Home Construction 
 Tobacco 
 Distillers & Vintners 
 Electricity 
 Pharmaceuticals & Biotech 
 Soft Drinks 
 Medical Equipment 
 Nondurable Household Products            
 
 Leading Industries
 For the Past Month:
 Platinum & Precious Metals 
 General Mining 
 Steel 
 Real Estate Holding & Devel 
 Nonferrous Metals 
 Industrial Metals 
 Gambling 
 Basic Resources 
 Waste & Disposal Services 
 Forestry         
 
 Lagging Industries
 For the Past Month:
 Recreational Services 
 Mortgage Finance 
 Water 
 Consumer Finance 
 Electricity 
 Semiconductors 
 Utilities 
 Trucking 
 Nondurable Household Products 
 Transportation Services                        
 
 Crude Oil $66.35
 
 Gold for the past 30 days:
 USD    +3.21%
 CAD    +6.27%
 CHF    +2.47%
 GBP    +3.92%
 EUR    +1.43%
 JPY    +4.63%

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.  The information is not meant to imply any endorsement or sponsorship by these 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	12.3%	0.7%	11.0%	0.7%	3.1%	7.6%	-0.9%
Cash Rich Companies	0.1%	0.0%	-3.6%	0.0%	0.1%	0.0%	-3.7%
Price to Free Cash Flow	15.3%	2.6%	6.5%	10.5%	-1.5%	11.4%	-9.6%
Growth Momentum Stocks	15.8%	-0.1%	3.8%	1.9%	0.7%	5.1%	-3.8%
Lynch Stocks	25.0%	-0.1%	3.3%	1.5%	-0.8%	1.6%	1.0%
Buffett Stocks	25.7%	-0.3%	4.0%	1.9%	0.6%	1.9%	-0.5%
Graham Stocks	12.7%	-0.1%	0.3%	-0.1%	-0.5%	2.1%	-1.2%
Templeton Stocks	7.2%	-0.2%	2.6%	0.0%	0.4%	2.5%	-0.2%
Zweig Stocks	11.6%	0.0%	4.0%	0.9%	1.2%	2.8%	-0.7%
Average Long Stocks	14.0%	0.3%	3.5%	1.9%	0.4%	3.9%	-2.2%

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
NXTM	03/17/06	0.0%	NxStage Medical, Inc.	Health Care	Biotechnology & Drugs	-1.7%	-8.0%	-84	-84
RGN	03/17/06	0.0%	RegeneRx Biopharmaceut.	Health Care	Biotechnology & Drugs	-2.2%	-7.6%	-69	-69
MBRX	03/10/06	0.0%	Metabasis Therapeutics, Inc.	Health Care	Biotechnology & Drugs	-0.8%	-0.7%	-46	-46
FVRL	03/17/06	0.0%	Favrille, Inc.	Health Care	Biotechnology & Drugs	-10.7%	18.4%	-43	-43
MMLP	11/25/05	0.0%	Martin Midstream Partners L.P.	Transportation	Water Transportation	-2.8%	5.0%	-41	-41
CLRT	03/24/06	0.9%	Clarient, Inc.	Technology	Scientific & Technical Instruments	-0.9%	0.9%	-50	-39
LXU	12/23/05	13.4%	LSB Industries, Inc.	Basic Materials	Chemical Manufacturing	-3.7%	12.5%	-22	-22
VSTA	10/21/05	20.2%	VistaCare, Inc.	Health Care	Healthcare Facilities	-2.6%	13.6%	-16	-16
SNSS	12/16/05	48.6%	Sunesis Pharmaceuticals, Inc.	Health Care	Major Drugs	-4.2%	19.4%	-16	-16
TXCC	03/10/06	52.0%	TranSwitch Corporation	Technology	Semiconductors	0.0%	41.3%	-11	-11
NEU	03/31/06	0.0%	NewMarket Corporation	Basic Materials	Chemical Manufacturing	0.0%	25.1%	-4	-4

      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
CLCT	03/10/06	0.0%	Collectors Universe, Inc.	Services	Business Services	-0.1%	-6.2%	-77	-77
WSC	03/11/06	0.1%	Wesco Financial Corporation	Conglomerates	Conglomerates	-0.2%	-1.0%	-50	-50

      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
LNX	03/31/06	0.0%	Lenox Group Inc.	Consumer Non-Cyclical	Personal & Household Products	0.0%	-1.9%	-33	-50
MOVI	03/24/06	28.0%	Movie Gallery, Inc.	Services	Recreational Activities	0.0%	28.0%	-46	-34
KWD	03/04/06	18.1%	Kellwood Company	Consumer Cyclical	Apparel/Accessories	0.0%	18.1%	-3	0

      For the Peter Lynch style 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
SKM	02/07/05	17.0%	SK Telecom Co., Ltd. (ADR)	Services	Communications Services	-3.9%	-2.0%	-59	-59
BTI	08/12/05	20.6%	British American Tobacco (ADR)	Consumer Non-Cyclical	Tobacco	-5.6%	-2.4%	-56	-56
AZN	02/03/06	7.2%	AstraZeneca PLC (ADR)	Health Care	Major Drugs	-2.9%	7.9%	-26	-26
TM	12/13/04	45.2%	Toyota Motor Corporation (ADR)	Consumer Cyclical	Auto & Truck Manufacturers	-1.1%	3.0%	-25	-25
PKX	02/17/06	14.7%	POSCO (ADR)	Basic Materials	Iron & Steel	0.0%	2.3%	-10	-10
KOF	04/29/05	45.4%	Coca-Cola FEMSA, S.A. (ADR)	Consumer Non-Cyclical	Beverages (Non-Alcoholic)	0.0%	7.1%	-5	-5

      For the Growth Momentum 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
LM	08/12/05	14.9%	Legg Mason, Inc.	Financial	Investment Services	-8.1%	-7.0%	-89	-89
BEN	11/04/05	3.4%	Franklin Resources, Inc.	Financial	Investment Services	-9.0%	-8.6%	-88	-88
UNH	04/15/05	19.8%	UnitedHealth Group Inc.	Financial	Insurance (Accident & Health)	-12.4%	-1.3%	-60	-60
SYT	04/08/05	31.5%	Syngenta AG (ADR)	Basic Materials	Chemical Manufacturing	-3.7%	-1.0%	-60	-59
CHB	02/17/06	-2.2%	Champion Enterprises, Inc.	Capital Goods	Construction Services	-6.6%	-2.9%	-40	-40
AHC	02/03/06	0.0%	Amerada Hess Corporation	Energy	Oil & Gas - Integrated	-4.4%	-1.0%	-33	-33
BR	02/24/06	0.6%	Burlington Resources Inc.	Energy	Oil & Gas Operations	-1.3%	0.8%	-32	-32
APC	02/10/06	0.0%	Anadarko Petroleum Corporation	Energy	Oil & Gas Operations	-1.9%	-1.0%	-31	-31
ENDP	02/17/06	10.1%	Endo Pharmaceuticals	Health Care	Biotechnology & Drugs	-1.9%	3.5%	-29	-31
WSO	11/25/05	16.5%	Watsco, Incorporated	Capital Goods	Misc. Capital Goods	-1.7%	1.4%	-29	-29
SM	03/17/06	1.1%	St. Mary Land & Exploration Co.	Energy	Oil & Gas Operations	-2.5%	2.8%	-27	-27
GRMN	03/03/06	7.3%	Garmin Ltd.	Technology	Communications Equipment	-5.6%	7.3%	-25	-27
PCU	12/02/05	25.9%	Southern Copper Corporation (USA)	Basic Materials	Metal Mining	-7.3%	-1.2%	-22	-22
DNR	03/03/06	9.6%	Denbury Resources Inc.	Energy	Oil & Gas Operations	-2.0%	9.6%	-14	-14
OVTI	03/17/06	14.1%	OmniVision Technologies	Technology	Semiconductors	-1.7%	22.4%	-10	-10
UIC	03/17/06	9.8%	United Industrial Corp.	Capital Goods	Aerospace and Defense	0.0%	17.2%	-10	-10
WCC	02/10/06	26.6%	WESCO International, Inc.	Technology	Electronic Instruments & Controls	0.0%	12.4%	-8	-8
CHE	05/06/05	52.8%	Chemed Corporation	Services	Business Services	-0.6%	8.6%	-8	-8
RIO	03/31/06	0.0%	Companhia Vale do Rio Doce (ADR)	Basic Materials	Metal Mining	0.0%	1.3%	-7	-7
BHP	09/09/05	26.3%	BHP Billiton Limited (ADR)	Basic Materials	Metal Mining	-0.9%	9.4%	-7	-7
ET	10/21/05	50.9%	E*TRADE FINANCIAL Corporation	Financial	Investment Services	0.0%	5.3%	-4	-4
HCC	10/21/05	28.0%	HCC Insurance Holdings, Inc.	Financial	Insurance (Property & Casualty)	0.0%	7.5%	-3	-3

      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
ABFS	04/29/05	24.1%	Arkansas Best Corporation	Transportation	Trucking	-14.0%	-6.8%	-95	-95
JBHT	03/31/06	0.0%	J.B. Hunt Transport Services, Inc.	Transportation	Trucking	0.0%	-9.6%	-94	-94
ACS	04/29/05	25.2%	Affiliated Computer Services, Inc.	Technology	Computer Services	-6.0%	-5.2%	-91	-91
FNF	10/21/05	-2.9%	Fidelity National Financial	Financial	Insurance (Property & Casualty)	-10.2%	-3.3%	-89	-88
ANF	03/03/06	-2.3%	Abercrombie & Fitch Co.	Services	Retail (Apparel)	-2.3%	-2.3%	-75	-75
NKE	09/23/05	4.7%	NIKE, Inc.	Consumer Cyclical	Footwear	-6.9%	-1.4%	-73	-73
CCRT	12/30/05	-4.3%	CompuCredit Corporation	Financial	Consumer Financial Services	-12.1%	-4.1%	-68	-64
TBL	02/17/06	-3.0%	The Timberland Company	Consumer Cyclical	Footwear	-3.3%	-2.0%	-63	-63
BTI	12/30/05	7.9%	British American Tobacco (ADR)	Consumer Non-Cyclical	Tobacco	-5.6%	-2.4%	-56	-56
AH	02/03/06	15.4%	Armor Holdings, Inc.	Capital Goods	Aerospace and Defense	-1.4%	0.1%	-46	-47
OXY	03/03/06	-2.5%	Occidental Petroleum Corporation	Energy	Oil & Gas Operations	-3.1%	-2.5%	-43	-43
MDC	01/20/06	-1.2%	M.D.C. Holdings, Inc.	Capital Goods	Construction Services	-3.8%	7.0%	-33	-33
HDI	10/14/05	5.4%	Harley-Davidson, Inc.	Consumer Cyclical	Recreational Products	-7.0%	1.2%	-28	-28
TOL	02/17/06	16.4%	Toll Brothers, Inc.	Capital Goods	Construction Services	-1.9%	0.8%	-26	-26
PCU	02/10/06	1.7%	Southern Copper Corporation (USA)	Basic Materials	Metal Mining	-1.2%	-1.2%	-22	-22
KSWS	10/14/05	5.7%	K-Swiss Inc.	Consumer Cyclical	Footwear	-10.9%	4.8%	-21	-21
NUE	04/15/05	114.8%	Nucor Corporation	Basic Materials	Iron & Steel	-1.7%	19.4%	-18	-20
RCII	10/21/05	58.3%	Rent-A-Center, Inc	Services	Rental & Leasing	-1.7%	7.7%	-17	-17
STLD	12/16/05	65.1%	Steel Dynamics, Inc.	Basic Materials	Iron & Steel	-1.8%	16.7%	-17	-17
RI	09/02/05	48.4%	Ruby Tuesday, Inc.	Services	Restaurants	-0.1%	13.5%	-16	-16
UNT	03/03/06	-0.1%	Unit Corporation	Energy	Oil & Gas Operations	-0.8%	2.2%	-14	-14
AEOS	03/10/06	1.5%	American Eagle Outfitters	Services	Retail (Apparel)	0.0%	6.0%	-11	-11
THO	04/15/05	98.1%	Thor Industries, Inc.	Capital Goods	Mobile Homes & RVs	0.0%	8.0%	-10	-11
RS	04/15/05	144.7%	Reliance Steel & Aluminum	Basic Materials	Misc. Fabricated Products	0.0%	8.8%	-8	-8
DSPG	02/07/05	15.7%	DSP Group, Inc.	Technology	Communications Equipment	-3.8%	4.5%	-7	-7
SCHN	02/10/06	38.1%	Schnitzer Steel Industries, Inc.	Basic Materials	Iron & Steel	0.0%	29.8%	-6	-6
ASH	10/28/05	32.8%	Ashland Inc.	Capital Goods	Construction Services	0.0%	7.5%	-3	-3
CECO	02/17/06	11.4%	Career Education Corp.	Services	Schools	0.0%	4.4%	0	0

      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
UGI	12/30/05	2.3%	UGI Corporation	Utilities	Natural Gas Utilities	-6.7%	-4.7%	-95	-95
PGN	01/10/05	-0.2%	Progress Energy, Inc.	Utilities	Electric Utilities	-3.8%	-0.6%	-73	-73
KEP	01/10/05	73.6%	Korea Electric Power Corporation (ADR)	Utilities	Electric Utilities	-5.7%	-3.1%	-69	-69
EON	03/10/06	-0.1%	E.ON AG (ADR)	Utilities	Electric Utilities	-4.7%	0.9%	-68	-68
SRE	01/10/05	28.5%	Sempra Energy	Utilities	Natural Gas Utilities	-4.6%	-0.4%	-73	-68
ATO	04/01/05	-2.2%	Atmos Energy Corporation	Utilities	Natural Gas Utilities	-11.5%	0.2%	-66	-64
WGL	12/23/05	-0.1%	WGL Holdings, Inc.	Utilities	Natural Gas Utilities	-3.2%	-0.6%	-56	-56
UU	06/10/05	0.2%	United Utilities PLC (ADR)	Utilities	Electric Utilities	-2.8%	0.0%	-52	-52
VVC	03/03/06	1.6%	Vectren Corporation	Utilities	Natural Gas Utilities	0.0%	1.6%	-44	-44
CPK	05/06/05	19.5%	Chesapeake Utilities	Utilities	Natural Gas Utilities	-11.7%	1.1%	-20	-20
ATG	10/21/05	8.9%	AGL Resources Inc.	Utilities	Natural Gas Utilities	-0.9%	1.2%	-15	-15
OKE	11/11/05	19.9%	ONEOK, Inc.	Utilities	Natural Gas Utilities	-0.3%	7.6%	-9	-9

      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
LOW	11/18/05	-2.3%	Lowe's Companies, Inc.	Services	Retail (Home Improvement)	-7.2%	-4.4%	-99	-99
DGX	08/19/05	2.6%	Quest Diagnostics Incorporated	Health Care	Healthcare Facilities	-4.6%	-4.6%	-99	-99
SNV	05/27/05	-7.4%	Synovus Financial Corp.	Financial	Regional Banks	-9.5%	-2.5%	-88	-88
GTRC	03/03/06	-4.0%	Guitar Center, Inc.	Services	Retail (Specialty Non-Apparel)	-4.0%	-4.0%	-70	-70
HHS	10/28/05	7.4%	Harte-Hanks, Inc.	Services	Printing & Publishing	-8.8%	-3.1%	-73	-70
DHI	03/03/06	1.5%	D.R. Horton Inc.	Capital Goods	Construction Services	-3.9%	1.5%	-62	-61
JNJ	02/17/06	0.3%	Johnson & Johnson	Health Care	Major Drugs	-2.9%	-1.9%	-51	-51
CPS	05/27/05	11.7%	ChoicePoint Inc.	Services	Business Services	-3.3%	1.1%	-39	-39
WSM	09/02/05	11.7%	Williams-Sonoma, Inc.	Services	Retail (Specialty Non-Apparel)	-6.0%	5.3%	-36	-36
MDC	12/30/05	3.8%	M.D.C. Holdings, Inc.	Capital Goods	Construction Services	-3.8%	7.0%	-33	-33
ORLY	01/20/06	17.4%	O'Reilly Automotive, Inc.	Services	Retail (Specialty Non-Apparel)	-1.7%	1.5%	-31	-31
EWBC	12/30/05	5.6%	East West Bancorp, Inc.	Financial	Regional Banks	-2.4%	4.6%	-27	-30
AMSG	10/14/05	-1.4%	AmSurg Corp.	Health Care	Healthcare Facilities	-6.9%	2.9%	-48	-29
HDI	02/24/06	-1.2%	Harley-Davidson, Inc.	Consumer Cyclical	Recreational Products	-2.7%	1.6%	-28	-28
TOL	03/03/06	4.9%	Toll Brothers, Inc.	Capital Goods	Construction Services	-1.9%	0.8%	-26	-26
SFG	05/27/05	44.3%	StanCorp Financial Group, Inc.	Financial	Insurance (Life)	-0.8%	1.5%	-25	-25
CHD	11/18/05	10.6%	Church & Dwight Co., Inc.	Consumer Non-Cyclical	Personal & Household Products	-1.6%	6.0%	-22	-22
PCU	02/10/06	1.7%	Southern Copper Corporation (USA)	Basic Materials	Metal Mining	-1.2%	-1.2%	-22	-22
MIK	12/30/05	6.2%	Michaels Stores, Inc.	Services	Retail (Specialty Non-Apparel)	-2.0%	14.3%	-18	-18
CAKE	10/21/05	9.2%	The Cheesecake Factory Incorporated	Services	Restaurants	-2.7%	4.4%	-12	-12
EDMC	12/16/05	24.9%	Education Management Corp	Services	Schools	-0.1%	12.5%	-6	-6
GISX	12/30/05	9.7%	Global Imaging Systems, Inc.	Technology	Office Equipment	0.0%	5.6%	-1	-1

      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
BEN	10/28/05	8.8%	Franklin Resources, Inc.	Financial	Investment Services	-9.0%	-8.6%	-88	-88
HTLD	01/27/06	-0.9%	Heartland Express, Inc.	Transportation	Trucking	-12.1%	-7.3%	-84	-84
MDU	01/27/06	-3.7%	MDU Resources Group, Inc.	Utilities	Natural Gas Utilities	-7.6%	-3.8%	-80	-80
LSTR	02/10/06	2.6%	Landstar System, Inc.	Transportation	Trucking	-8.0%	-3.7%	-74	-74
BR	12/02/05	23.7%	Burlington Resources Inc.	Energy	Oil & Gas Operations	-1.3%	0.8%	-32	-32
ORLY	03/10/06	2.4%	O'Reilly Automotive, Inc.	Services	Retail (Specialty Non-Apparel)	0.0%	1.5%	-31	-31
GRMN	02/24/06	18.6%	Garmin Ltd.	Technology	Communications Equipment	-5.6%	7.3%	-25	-27
ESI	11/04/05	8.3%	ITT Educational Services	Services	Schools	-1.4%	4.1%	-17	-17
RDC	03/03/06