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Outlook Contents:
~ Portfolio
~ Recommended diversification
(The Longs, Shorts, and Mini-Skirts
portfolio is not a balanced portfolio, so I don't recommend more than
20-50% of your portfolio match these recommendations. This percentage
would depend on your age, financial condition, and tolerance
of risk.
I may or may not own shares in the
stocks and mutual funds I recommend.
My viewpoints may differ from that of others and usually do.
Past results not necessarily
indicative of future results.
Investments often lose money. Shares
can rise or fall in price.
Nothing in this newsletter
should be considered a solicitation to buy.)
Editor:
Laurent
J. LaBrie
Moneywatch Advisors, Inc.
3441 Carriage Hill Circle #002
Randallstown, MD 21133
http://labrie.liv-n-letliv.net
Home Phone:
(443) 426-6870
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Outlook for US stocks:
Short-term outlook LSMS
Marketsmarker: Hold
LSMS Contrarian
Index: 36 hold (100 is extremely bullish, -100 is extremely
bearish for the next 4 months.)
Predicted change
for the market for 2006: +13%
5-year outlook: Bullish. 70% chance of being above where we
are now. |
Outlook for
International Stocks:
Short-term
outlook LSMS Marketsmarker: Hold
Long Term outlook: Bullish for Japan, India,
China, and central and eastern Europe, especially Poland. |
Last week, the market held steady, with the NASDAQ and Russell 2000
slipping 1%. Our portfolio paced the market.
PDA rose 23% when it got an offer from Sadia, a Brazilian food manufacturer, to have 50% of its stock bought, but they declined the offer saying it was too low. Sadia raised its bid, but didn't have the financial strength to offer what they and I believe the stock is worth. The price fell back some. I believe the stock is still a good buy, but you may want to wait to see if it falls back any more. Don't rush in, but I'd recommend having some in your portfolio.
On the other hand, ValuClick's results for the first quarter were unimpressive. Their growthrate is lower than its peers and its price is too high. Therefore, I'm issuing a sell on VCLK.
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For the year
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2006 year to date (YTD) |
2005
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2004
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1998-2003
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LSMS Recommended
Portfolio
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+8%
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+25%
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+21%
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+117%
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Benchmark US stocks
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-0- |
+5%
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+14%
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+31%
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(Past results are not
guarantees of future results.)
Recommended Longs,
Shorts, and Mini-Skirts stock portfolio:
Click here for the write-ups from past Longs, Shorts and Mini-Skirts about
the following stocks.
Multinational conglomerate: Berkshire Hathaway B
shares (NYSE: BRK.B)
Chart , Messages , Key Stats , More
China
Mobile (NYSE: CHL)
Chart , Messages , Key Stats , More
Mexican food producer:
Industrias Bachoco (NYSE: IBA)
Chart , Messages , Key Stats , More
Canadian Technology Company: Nortel (NYSE: NT)
Chart , Messages , Key Stats , More
Brazilian Food Company: Perdigao (NYSE: PDA)
Chart , Messages , Key Stats , More
Brazilian Oil Company: Petroleo
Brasileiro (NYSE: PBR)
Chart , Messages , Key Stats , More
UK
Oil Company: Premiere Oil (OTC: PMOIY)
Chart , Messages
, Key Stats , More
Closed-ended Mutual Fund: Russian and Central European
Fund (NYSE: CEE)
Chart , Messages , Key Stats , More
SELL: US Internet advertiser:
ValueClick (NASDAQ: VCLK)
Chart ,Messages ,Key Stats , More
Rydex Japan Fund (RYJPX Chart , Profile , More )
Alpine International Real Estate
Fund (EGLRX Chart , Profile , More )
Maintain the following diversification:
This should be used as a
general guide only. I'm not recommending you buy or sell weekly. Your
allocations may differ based on your age and financial situation.
For a $100 portfolio:
of this have:
reduce to $25 in international stocks
$20 in REITs
increase to $20 in U.S. stocks
increase to $15 cash (or short-term bonds)
decrease to $10 in international bonds
$10 in US bonds
$0 gold
Blessings
and success,
---LJL
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