Sell Half Your KEP Options

Sell half your remaing KEPCO options to lock in 33% gains... We'll let the rest ride and see if a rising energy market lifts our KEPCO boat...

James

CTEX ALERT

CTEX has been acting horribly since being added to the portfolio. It's down 32%, and if it closes below .0042 today, we'll exit the position when the market open in the morning, as our 40% trailing stop will have triggered.

The earnings and outlook for this company still are strong, so I'm not having second thoughts here... although the market sure seems to be. As I said in the original recommecndation, this is a play for speculators only.

Stay loose and be prepared to cut this one loose in the a.m. No questions asked.

James

Our SRI Portfolio Is Up 104% - Sell 1/2 KEP Calls

To date our basic portfolio is up 104%, including losses. CECO has jumped almost 40% in about two weeks, and we're up 66% in our KEP calls. Sell half your remaining KEP calls today halfway between the current bid/ask if possible to lock in a 66% gain in about 30 days. Let the rest of the calls ride and see if KEP does what we hope by going to $25.

Meanwhile sit tight with the rest of our positions and let's see what happens.

Good trading,

James

Portfolio Summary

Here's a quick review of our positions and where we stand in terms of gains and losses as of this afternoon...

BG 5.63%
CECE 32.51%
CTEX.PK (down 14.29%)
KB 2.52%
KEP 4.10%
KEPCE.X 33.33%
SLUP.PK 0.00%

Notice that SLUP has to rally 11% today just to get back to even, after weeks of radical movements up and down...

James

We're Up 60.9% So Far

CECE has rallied over 10% today, which is a tremendous result by any measure... In total, we're up more than 30% on this stock after less than three weeks. Even better, it's doing this on a day that the markets are selling off. We're still up 33% on our KEPCO March calls, but I don't expect much if any more upward movement there. Still we'll sit tight with the remaining half of our position and see what happens.

Meanwhile, the S&P 500 is up approximately 1% since we launched our SRI portfolio on December 26.

So you could say our returns are beating the market by 6,000%... if you were inclined to braggadocio. Instead, we'll just say this is a good start... and anything can happen, so let's not get too excited just yet.

The market is down today so far, but once again, I boldly predicted last week that we'd see a big rally take off sometime this week. It will probably happen while I'm in the hospital tomorrow getting surgery to repair a rugby-related injury to my right hand.

Keep a close eye out,

James

Sell 1/2 the KEPCO Options for 33%

Our $25 calls on KEPCO are up 33% today. Sell half your contracts for a 33% gain in about three weeks. Hold onto the remainder of the position as KEP could rally further with oil prices settling so low. The company would presumably have more pricing power and higher profit margins in the long term, and of course our play here is wind energy in China, which is exactly the kind of R&D and speculative development KEP will be better armed to do with more cash on hand.

Oil and Our Investments

Oil dipped below $50 for the first time in over a year today... and the markets sold off as well... Guess what. The markets will rally solidly nextweek as the true short-term weakness of oil is exposed further.

I believe Jim Rogers is right about oil. It will go to $150. I also believe that cars will some day cost $100,000 each (economy cars) and houses $4 million (3 bedrooms, 2 baths, in suburban Kentucky).

My point is, oil is really weak right now, and stocks love weak oil because it means decreased costs and overhead for most manufacturing, shipping and retail companies. This sentiment could play itself out in the markets next week with a huge rally.

Who knows. I rarely make market calls, but I'm making this one.

By the end of next week, stocks will make history once again. In a good way. And our portfolio will ride the weeklong euphoria to new highs as well.

James