Wiser Trader Stocks and Options Newsletter

______________________________________________________________________________

Issue No. 73 April 17, 2006 Prescott, Arizona Systems@WiserTrader.com

______________________________________________________________________________

1.0 Trading

As earnings season moves into high gear, we take a snapshot of market performance.

1.1 Market Caution

The chart in Figure 1 illustrates how the market has recently become more cautious. The S&P is about 3.7% above its 200-day SMA.

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.

1.2 Industry Tracking

Tracking industry performance can be tricky if one is trying to monitor the complete market. Standard and Poor provides reports on 51 industries at its website. The Dow Jones industry listing at BigCharts.com divides the market into 10 sectors and 95 distinct industries. Investors Business Daily tracks 192 industries. The American Association of Individual Investors (AAII) classifies companies into 12 sectors and 102 industries. Yahoo.com tracks 9 sectors containing 212 industries. Other systems coming into wide use have chosen to change the meaning of the terms sectors and industries. Companies belong to an industry in one system may not belong to an industry having a similar name in another system. When the press and media report industry performance, it is not usually stated which system is being used.

With all the different systems of industry classification, one needs a cross reference from one to another. Without such a cross reference, it can be difficult to feel confident that one has a clear picture. Unfortunately, no such cross reference has been found.

This newsletter uses two systems. The leading and lagging industry lists in Section 2 use the Dow Jones system of 10 sectors and 95 industries. The Dow Jones industry performance list is updated daily at BigCharts.com. The watchlists in Section 3 use the AAII system of 12 sectors and 102 industries. AAII does not provide relative industry performance.

A third system described today is the Yahoo system of 9 sectors and 212 industries. Yahoo updates industry performance on an ongoing basis, hence its unique value. Industry performance can be automatically retrieved into Microsoft Excel with a 20-minute delay using XLQ. This allows one to sort the best and worst performing industries at any time of the day according to short and long-term criteria.

Table 1 is an example of a small portion of an Excel spreadsheet where the top 10 industries are sorted according to the number of up days out of the last 17 days. Interestingly, the waste management industry has been the must consistent performer but the copper industry has had a much higher percentage gain over the past 15 trading days.

Table 2 shows a small portion of the bottom portion of the same Excel spreadsheet where the top 10 industries are sorted according to the number of up days out of the last 17 days. Confectioners have been the least consistent performer with the highest percentage loss over the past 15 trading days. This is no doubt due to the rising price of sugar needed to make ethanol that is in short supply.

The use of 17 for the number of days is incidental to the number of trading days the spreadsheet has been in use. Macros were added to update the performance history at the end of each trading day and sort the entire list according to any of the columns shown with a single control key entry. Once a history of about 20 days (4 weeks) has been built up, the spreadsheet will become available to any Excel user who has downloaded XLQ-Plus, which is required to make it work. The spreadsheet does not require the AAII Stock Investor Pro software. Let me know if you want a free copy. XLQ-Plus can be evaluated free for 45 days. If you are already an Excel user, I strongly recommend evaluating its many automated data retrieval features.

Table 1 – Ten Leading Industries Sorted by Number of Up days out of 17

Sector	212 Yahoo Industries	4/13/06	W%R	5 Days	10 Days	15 Days	Up Days
	Average gain of all Industries 4	0.2%		Prior	Prior	Prior	Out of
	Percentage of industries Gaining 4	61%		Gain	Gain	Gain	17

Industrial Goods	Waste Management	0.5%	0	1.1%	3.9%	6.0%	94%
Services	Basic Materials Wholesale	0.1%	-48	-0.9%	0.7%	5.0%	82%
Services	Consumer Services	0.4%	-72	-4.3%	-1.8%	0.6%	76%
Industrial Goods	General Building Materials	0.6%	-45	-0.7%	1.7%	3.5%	76%
Basic Materials	Industrial Metals & Minerals	-0.5%	-38	-1.3%	3.6%	11.3%	76%
Basic Materials	Copper	0.7%	-28	-0.3%	2.6%	12.8%	76%
Basic Materials	Oil & Gas Drilling & Exploration	0.6%	-9	-0.9%	-0.3%	4.8%	76%
Basic Materials	Oil & Gas Refining & Marketing	0.1%	0	0.9%	2.6%	5.6%	76%
Consumer Goods	Toys & Games	0.0%	-97	-1.4%	-1.6%	-0.9%	71%
Basic Materials	Oil & Gas Equipment & Services	0.7%	-97	-16.4%	-15.5%	-10.9%	71%

Table 2 – Ten Lagging Industries Sorted by Number of Up days out of 17

Sector		212 Yahoo Industries	4/13/06	W%R	5 Days	10 Days	15 Days	Up Days
		Average gain of all Industries 4	0.2%		Prior	Prior	Prior	Out of
		Percentage of industries Gaining 4	61%		Gain	Gain	Gain	17

Healthcare	Drug Delivery		0.7%	0	0.7%	-0.5%	-1.2%	41%
Utilities	Diversified Utilities		-0.3%	-100	-3.6%	-2.1%	-3.8%	35%
Basic Materials	Nonmetallic Mineral Mining		-1.1%	-100	-5.4%	-3.8%	0.5%	35%
Consumer Goods	Packaging & Containers		-0.2%	-95	-2.7%	-1.3%	-1.8%	35%
Consumer Goods	Textile - Apparel Footwear & Accessories		0.4%	-79	-2.1%	-2.9%	-3.3%	35%
Financial	REIT - Office		-1.0%	-100	-4.7%	-5.9%	-4.8%	29%
Services	Restaurants		-0.2%	-94	-1.0%	-0.5%	-0.6%	29%
Services	Discount, Variety Stores		-0.2%	-87	-2.3%	-3.3%	-4.8%	29%
Technology	Personal Computers		-0.7%	-100	-4.4%	-4.7%	-3.3%	24%
Consumer Goods	Confectioners		-1.1%	-100	-13.4%	-14.0%	-15.3%	24%

2.0 Market Analysis

This week bond yields continued to rise sharply and interest rate sensitive stocks continued to consolidate. As earnings season picks up, the market is cautious. Ten-year treasury yields are at 5% and oil is above $70 a barrel.

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	-1.3%	0.2%	0.1%	-1.5%	0.0%
NASDAQ Composite Index	0.9%	-0.6%	0.0%	1.2%	0.3%
NYSE Composite Index	-1.4%	-0.5%	0.0%	-0.6%	-0.3%
S & P 500 Index	-0.5%	-0.5%	0.5%	-0.2%	-0.2%
Russell 2000 Index	0.7%	-0.7%	-1.2%	1.5%	1.0%
HGX, Phil. Housing Index	-3.4%	-3.6%	2.3%	-1.7%	-0.3%
IYR, Real Estate	-8.0%	-2.7%	-3.6%	1.1%	-3.0%
GLD, GOLD	7.9%	1.6%	0.8%	4.3%	1.1%
RKH, Banking	-1.8%	0.0%	0.1%	-1.4%	-0.5%
IYT, Transportation	1.9%	-0.9%	2.4%	1.0%	-0.7%
SMH, Semiconductors	3.5%	-0.2%	1.6%	0.3%	1.8%
BBH, Biotechnology	-5.5%	1.1%	-4.0%	-0.3%	-2.4%
OIH, Oil	7.3%	0.4%	2.7%	2.9%	1.0%
XLE, Energy	4.0%	0.8%	1.7%	1.0%	0.4%
XLU, Utilities	-5.9%	-1.4%	-0.5%	-2.1%	-2.1%
XLB, Materials	2.4%	0.4%	1.4%	0.9%	-0.4%
XLI, Industrial	0.2%	-0.3%	0.4%	0.4%	-0.3%
XLK, Technology	0.0%	-0.7%	0.5%	0.2%	-0.1%
XLV, Healthcare	-5.2%	-0.8%	-2.2%	-2.1%	-0.1%
XLF, Financials	-1.9%	-0.3%	0.1%	-1.0%	-0.7%
XLP, Consumer Staples	-2.9%	-0.6%	-0.8%	-1.6%	0.1%
XLY, Consumer Discretionary	-1.2%	-0.8%	0.6%	-0.4%	-0.7%

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

Table 2B

Volatility

Indicator	Current	Last Week	2 Weeks Ago	Complacent	Cautious
VIX **	12.4	12.3	11.4	< 20	> 50
VXN ***	16.3	15.9	16.3	< 30	> 70
Above 20 day SMA = Short-term sell signal. * Above 20 day SMA = Short-term sell signal.

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

FIGURE 4

Table 2C

Market Summary

Industries are listed according to the Dow Jones Classification System

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	10.6%	2.4%	2.4%	0.7%	-1.8%	0.9%	2.6%
Cash Rich Companies	-0.2%	-0.6%	-0.7%	1.0%	-1.2%	-0.4%	0.0%
Price to Free Cash Flow	7.8%	0.4%	1.2%	-1.8%	-4.5%	10.5%	-1.5%
Growth Momentum Stocks	16.5%	0.3%	3.4%	-0.1%	0.5%	2.1%	0.8%
Lynch Stocks	26.5%	0.5%	2.0%	0.6%	0.7%	1.5%	-0.8%
Buffett Stocks	23.9%	0.3%	2.0%	-1.3%	1.1%	1.7%	0.5%
Graham Stocks	11.4%	-0.2%	-1.8%	-1.4%	0.5%	-0.4%	-0.6%
Templeton Stocks	5.1%	0.2%	-0.9%	-1.6%	0.4%	-0.2%	0.6%
Zweig Stocks	7.2%	-0.1%	2.1%	-0.5%	0.4%	1.1%	1.1%
Average Long Stocks	12.1%	0.4%	1.1%	-0.5%	-0.4%	1.9%	0.3%

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	-11.0%	-7.9%	-71	-71
RGN	03/17/06	0.0%	RegeneRx Biopharmaceut.	Health Care	Biotechnology & Drugs	-8.0%	-4.7%	-69	-69
MMLP	11/25/05	0.0%	Martin Midstream Partners L.P.	Transportation	Water Transportation	-4.9%	-3.2%	-56	-56
CLRT	03/24/06	1.8%	Clarient, Inc.	Technology	Scientific & Technical Instruments	0.0%	0.9%	-44	-33
TXCC	03/10/06	50.3%	TranSwitch Corporation	Technology	Semiconductors	-9.5%	20.7%	-24	-24
EQS	04/13/06	0.0%	Equus II Incorporated	Financial	Investment Services	0.0%	2.6%	-14	-15
LXU	12/23/05	22.2%	LSB Industries, Inc.	Basic Materials	Chemical Manufacturing	0.0%	9.4%	-2	-2

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
WSC	03/11/06	-2.6%	Wesco Financial Corporation	Conglomerates	Conglomerates	-3.0%	-2.5%	-89	-98
SCIX	04/07/06	0.0%	Scailex Corp., Ltd. (USA)	Technology	Computer Networks	0.0%	-1.5%	-48	-49
CLCT	03/10/06	2.0%	Collectors Universe, Inc.	Services	Business Services	-2.3%	1.9%	-39	-32

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	-4.0%	Lenox Group Inc.	Consumer Non-Cyclical	Personal & Household Products	-4.0%	3.9%	-75	-67
MOVI	03/24/06	12.7%	Movie Gallery, Inc.	Services	Recreational Activities	-11.9%	-6.7%	-48	-46
KWD	03/04/06	14.7%	Kellwood Company	Consumer Cyclical	Apparel/Accessories	-4.1%	7.9%	-20	-24

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
BTI	08/12/05	20.2%	British American Tobacco (ADR)	Consumer Non-Cyclical	Tobacco	-5.8%	-5.6%	-80	-80
SKM	02/07/05	15.9%	SK Telecom Co., Ltd. (ADR)	Services	Communications Services	-4.9%	-0.2%	-58	-58
KOF	04/29/05	41.5%	Coca-Cola FEMSA, S.A. (ADR)	Consumer Non-Cyclical	Beverages (Non-Alcoholic)	-4.0%	4.7%	-44	-44
TM	12/13/04	50.8%	Toyota Motor Corporation (ADR)	Consumer Cyclical	Auto & Truck Manufacturers	-1.6%	4.5%	-23	-23
PKX	02/17/06	20.8%	POSCO (ADR)	Basic Materials	Iron & Steel	0.0%	6.5%	-10	-10
AZN	02/03/06	9.9%	AstraZeneca PLC (ADR)	Health Care	Major Drugs	-0.4%	1.1%	-5	-6

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
WSO	11/25/05	2.8%	Watsco, Incorporated	Capital Goods	Misc. Capital Goods	-13.2%	-11.4%	-89	-89
BEN	11/04/05	3.8%	Franklin Resources, Inc.	Financial	Investment Services	-8.6%	-6.7%	-83	-83
SYT	04/08/05	30.8%	Syngenta AG (ADR)	Basic Materials	Chemical Manufacturing	-5.0%	-0.2%	-71	-71
LM	08/12/05	12.1%	Legg Mason, Inc.	Financial	Investment Services	-10.4%	-3.7%	-70	-65
ENDP	02/17/06	5.6%	Endo Pharmaceuticals	Health Care	Biotechnology & Drugs	-5.8%	1.8%	-65	-65
HCC	10/21/05	22.1%	HCC Insurance Holdings, Inc.	Financial	Insurance (Property & Casualty)	-4.6%	-1.0%	-51	-51
AHC	02/03/06	0.0%	Amerada Hess Corporation	Energy	Oil & Gas - Integrated	-4.6%	-0.8%	-45	-45
CHB	02/17/06	-3.8%	Champion Enterprises, Inc.	Capital Goods	Construction Services	-8.1%	-6.9%	-44	-44
OVTI	03/17/06	7.9%	OmniVision Technologies	Technology	Semiconductors	-7.0%	7.9%	-36	-36
UIC	03/17/06	10.8%	United Industrial Corp.	Capital Goods	Aerospace and Defense	-8.3%	10.8%	-36	-36
CHE	05/06/05	49.4%	Chemed Corporation	Services	Business Services	-2.8%	-1.5%	-29	-30
RIO	03/31/06	-1.3%	Companhia Vale do Rio Doce (ADR)	Basic Materials	Metal Mining	-3.8%	6.7%	-28	-28
ET	10/21/05	47.2%	E*TRADE FINANCIAL Corporation	Financial	Investment Services	-3.4%	0.0%	-27	-27
APC	02/10/06	0.0%	Anadarko Petroleum Corporation	Energy	Oil & Gas Operations	-1.0%	5.2%	-19	-19
SM	03/17/06	4.4%	St. Mary Land & Exploration Co.	Energy	Oil & Gas Operations	-0.6%	4.4%	-12	-12
BHP	09/09/05	36.8%	BHP Billiton Limited (ADR)	Basic Materials	Metal Mining	-1.1%	18.6%	-11	-11
DNR	03/03/06	16.8%	Denbury Resources Inc.	Energy	Oil & Gas Operations	-1.2%	17.0%	-10	-10
PCU	12/02/05	37.5%	Southern Copper Corporation (USA)	Basic Materials	Metal Mining	-0.1%	10.0%	-8	-8
WCC	02/10/06	30.3%	WESCO International, Inc.	Technology	Electronic Instruments & Controls	0.0%	10.6%	-7	-7
GRMN	03/03/06	17.6%	Garmin Ltd.	Technology	Communications Equipment	0.0%	12.9%	-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
JBHT	03/31/06	-0.2%	J.B. Hunt Transport Services, Inc.	Transportation	Trucking	-5.9%	-5.0%	-94	-94
ACS	04/29/05	24.3%	Affiliated Computer Services, Inc.	Technology	Computer Services	-6.7%	-6.1%	-92	-92
ABFS	04/29/05	24.6%	Arkansas Best Corporation	Transportation	Trucking	-13.7%	-5.4%	-81	-81
BTI	12/30/05	7.6%	British American Tobacco (ADR)	Consumer Non-Cyclical	Tobacco	-5.8%	-5.6%	-80	-80
TBL	02/17/06	-5.1%	The Timberland Company	Consumer Cyclical	Footwear	-5.3%	-3.7%	-78	-78
NKE	09/23/05	2.5%	NIKE, Inc.	Consumer Cyclical	Footwear	-8.9%	-2.5%	-75	-75
HDI	10/14/05	0.8%	Harley-Davidson, Inc.	Consumer Cyclical	Recreational Products	-11.0%	1.5%	-69	-69
FNF	10/21/05	-2.7%	Fidelity National Financial	Financial	Insurance (Property & Casualty)	-10.0%	-2.2%	-69	-69
MDC	01/20/06	-4.8%	M.D.C. Holdings, Inc.	Capital Goods	Construction Services	-9.1%	-6.2%	-65	-65
TOL	02/17/06	10.1%	Toll Brothers, Inc.	Capital Goods	Construction Services	-8.6%	-7.5%	-60	-60
CCRT	12/30/05	-4.3%	CompuCredit Corporation	Financial	Consumer Financial Services	-12.1%	-1.5%	-54	-54
DSPG	02/07/05	9.7%	DSP Group, Inc.	Technology	Communications Equipment	-8.8%	0.7%	-53	-53
DHI	04/13/06	0.0%	D.R. Horton Inc.	Capital Goods	Construction Services	0.0%	-4.5%	-49	-50
KSWS	10/14/05	3.1%	K-Swiss Inc.	Consumer Cyclical	Footwear	-13.1%	0.7%	-47	-47
CECO	02/17/06	13.8%	Career Education Corp.	Services	Schools	-7.6%	-3.6%	-45	-46
AEOS	03/10/06	1.4%	American Eagle Outfitters	Services	Retail (Apparel)	-2.8%	3.3%	-42	-42
SCHN	02/10/06	23.1%	Schnitzer Steel Industries, Inc.	Basic Materials	Iron & Steel	-11.9%	9.1%	-42	-42
THO	04/15/05	101.7%	Thor Industries, Inc.	Capital Goods	Mobile Homes & RVs	-2.9%	5.5%	-35	-39
RI	09/02/05	43.7%	Ruby Tuesday, Inc.	Services	Restaurants	-3.3%	3.8%	-38	-39
EOG	04/13/06	0.0%	EOG Resources, Inc.	Energy	Oil & Gas Operations	0.0%	-0.8%	-29	-30
ANF	03/03/06	-2.9%	Abercrombie & Fitch Co.	Services	Retail (Apparel)	-2.9%	0.9%	-28	-28
RS	04/15/05	142.2%	Reliance Steel & Aluminum	Basic Materials	Misc. Fabricated Products	-3.1%	7.7%	-27	-27
OXY	03/03/06	1.4%	Occidental Petroleum Corporation	Energy	Oil & Gas Operations	-1.2%	1.3%	-21	-21
UNT	03/03/06	2.2%	Unit Corporation	Energy	Oil & Gas Operations	-1.0%	2.4%	-17	-17
AH	02/03/06	21.7%	Armor Holdings, Inc.	Capital Goods	Aerospace and Defense	-0.8%	6.0%	-12	-12
NUE	04/15/05	124.5%	Nucor Corporation	Basic Materials	Iron & Steel	-1.2%	11.1%	-9	-9
STLD	12/16/05	69.0%	Steel Dynamics, Inc.	Basic Materials	Iron & Steel	-1.0%	17.2%	-9	-9
PCU	02/10/06	11.1%	Southern Copper Corporation (USA)	Basic Materials	Metal Mining	-0.1%	10.0%	-8	-8
ASH	10/28/05	33.3%	Ashland Inc.	Capital Goods	Construction Services	0.0%	6.2%	-7	-7
RCII	10/21/05	65.9%	Rent-A-Center, Inc	Services	Rental & Leasing	0.0%	11.7%	-6	-6

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
PGN	01/10/05	-5.1%	Progress Energy, Inc.	Utilities	Electric Utilities	-8.6%	-7.6%	-98	-98
SRE	01/10/05	23.5%	Sempra Energy	Utilities	Natural Gas Utilities	-8.3%	-5.4%	-93	-93
ATO	04/01/05	-3.0%	Atmos Energy Corporation	Utilities	Natural Gas Utilities	-12.2%	-2.8%	-86	-86
ATG	10/21/05	5.5%	AGL Resources Inc.	Utilities	Natural Gas Utilities	-4.0%	-2.2%	-84	-84
WGL	12/23/05	-4.0%	WGL Holdings, Inc.	Utilities	Natural Gas Utilities	-7.0%	-3.5%	-78	-78
UGI	12/30/05	3.0%	UGI Corporation	Utilities	Natural Gas Utilities	-6.1%	-3.4%	-75	-75
UU	06/10/05	-0.6%	United Utilities PLC (ADR)	Utilities	Electric Utilities	-3.6%	-3.4%	-65	-65
EON	03/10/06	0.4%	E.ON AG (ADR)	Utilities	Electric Utilities	-4.1%	-3.3%	-61	-61
VVC	03/03/06	2.2%	Vectren Corporation	Utilities	Natural Gas Utilities	-3.5%	1.8%	-51	-51
OKE	11/11/05	19.9%	ONEOK, Inc.	Utilities	Natural Gas Utilities	-4.3%	5.9%	-31	-31
KEP	01/10/05	84.2%	Korea Electric Power Corporation (ADR)	Utilities	Electric Utilities	-1.9%	4.3%	-29	-29

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
COH	04/13/06	0.0%	Coach, Inc.	Consumer Cyclical	Apparel/Accessories	0.0%	-5.8%	-99	-99
DGX	08/19/05	-0.5%	Quest Diagnostics Incorporated	Health Care	Healthcare Facilities	-7.5%	-4.1%	-94	-93
LOW	11/18/05	-2.5%	Lowe's Companies, Inc.	Services	Retail (Home Improvement)	-7.4%	-6.3%	-89	-89
JNJ	02/17/06	-2.0%	Johnson & Johnson	Health Care	Major Drugs	-5.1%	0.1%	-84	-84
SNV	05/27/05	-7.4%	Synovus Financial Corp.	Financial	Regional Banks	-9.5%	-2.9%	-81	-81
CAKE	10/21/05	-0.3%	The Cheesecake Factory Incorporated	Services	Restaurants	-11.2%	-6.7%	-76	-76
GISX	12/30/05	5.0%	Global Imaging Systems, Inc.	Technology	Office Equipment	-4.6%	1.1%	-62	-69
HDI	02/24/06	-5.5%	Harley-Davidson, Inc.	Consumer Cyclical	Recreational Products	-6.9%	-5.4%	-69	-69
CPS	05/27/05	9.8%	ChoicePoint Inc.	Services	Business Services	-5.0%	-1.7%	-67