Bill Gunderson s Weekly Best Stocks Now Newsletter

Transcription

1 Bill Gunderson s Weekly Best Stocks Now Newsletter Straightforward, honest research for successful people on Twitter Bill@pwstreet.com Let me hear from you! May 25, 2012 Bill Gunderson-President and Founder of Gunderson Capital Mgt. Inc. A Big Fat Greek Mess From my perspective, it has been a fun week in the market. Although it did not seem like it, the equities markets actually closed with a nice gain for the week. Many leaders continue to lead the market, despite the chaos in Europe, and the fallout from the Facebook (FB) IPO has been amusing to watch. My new office in downtown San Diego houses one of Morgan Stanley s largest branches. I noticed a lot of angry looking people hanging around in the hallway wanting to talk to their MS broker. They must not have listened to the warnings that I have given over the years about buying into IPO manias. This whole thing is a mess for Morgan Stanley and the chart of the stock reflects it: 1

2 The people who work there don t look very happy either. They are real unfriendly as we ride up the elevator together. They all look like they want to cancel their Facebook profiles. It remains to be seen whether or not Morgan Stanley will ever get another high-profile IPO like Facebook in the future. Needless to say, I am not a buyer or holder of the stock. The attorneys in my building are licking their chops, however. Let the lawsuits begin. How convenient to have all of these attorneys and Morgan Stanley folks in the same building. They can all just walk across the street to the courthouse. If you think that the Facebook IPO was a mess, look at what is going on in Europe! The yield on the ten-year bond in Greece is now 29.9% and rising! That sounds like my first car loan. No wonder that Germany is not real enamored with the Euro Bond idea that is being tossed around. Germany is currently paying 1.4% to borrow money. France pays just a 2.5% rate on its debt. I would not think that they would be too happy with a Euro Bond either. Do they want to share in the financial mess in Greece, Spain, Portugal, and Italy? The Portuguese are paying 12.5%, while Spain and Italy are up around 6%. 2

3 Italy s leader, Mario Monti, thinks that he can sell the idea of a Euro Bond to the other EU members, but I am not buying it. Monti is having a hard enough time fixing his own countries problems, let alone the rest of the EU s problems. The United States is currently paying 1.7% to borrow money while Brazil is paying 12.5%. Do we want to average things out on the American continent and share one another s burdens? An increase in our interest rates would be a crushing blow to our already bloated deficit. Here are the numbers on the week. Note that the NASDAQ fared best of all, despite the Facebook debacle. Spain, Greece, Europe in general, and the Emerging Markets continue to get pummeled. Here is where we stand year-to-date: Fri. 5/18/12 Fri. 5/25/12 Week Week Pct. Close Close Change Change S&P % DJIA 12, , % NASD % S&P600 (Small) % Emg. Mkts (ADRE) % Spain (EWP) % U.S. 10yr. Tr. 1.70% 1.75% 0.05% 2.94% Greece 10yr. Bond 21.08% 29.98% 8.90% 42.22% Brazil 10yr. Bond 12.53% 12.55% 0.02% 0.16% Portugal 10yr. Bond 11.53% 12.45% 0.92% 7.98% Spain 10yr. Bond 5.35% 6.16% 0.81% 15.14% Oil % Gold % 3

4 12/31/11 Fri. 5/25/ YTD Pct. Value Close YTD Change S&P % DJIA 12, , % NASD % S&P600 (Small) % Emg. Mkts (ADRE) % Spain (EWP) % U.S. 10yr. Tr. 1.87% 1.75% -0.12% -6.42% Spain 10yr. Bond 5.22% 6.16% 0.94% 18.01% Oil % Gold % Let s look at a few charts. The S & P 500 was plunging last week at this time. Last week, I gave several very strong reasons as to why the market should begin to hold. As you can see from the above chart, so far it has. 4

5 We are still vulnerable down to the 200 day moving average which currently stands at 1,280. We are now at 1,317. Should the market plunge below its 200 day moving average however, then we would have a whole new ballgame. Let s next look at the driver of the bus, the U. S. Dollar (UUP): The dollar has been almost straight up for the last three weeks! Remember that the equities markets and commodities move in the opposite direction of the dollar. You can also see the dollar hitting resistance. If the dollar breaks out through resistance it could also be a big game changer. The first chart I look at every day is the market. The second chart I look at is the dollar. The third chart I look at is the Euro (FXE): 5

6 As you can see, the Euro closed at a new low of in Friday. This is leading to the erosion in our markets and incommodities. A further breakdown of the Euro will also have stinging consequences on our market. What can be done about this situation? I wrote an article on Friday for Markewatch.com about hedging portfolios with INVERSE funds. Here is the link to the article if you are interested in reading it: I have bought two inverse ETF s so far in the accounts that I manage, that had cash available. The first one is has an inverse relationship with the Emerging Markets: 6

7 As you can see, as the market is threatening to break down below its 200 day moving average, EUM is breaking through to the upside of its average. The Emerging Markets are extremely dependent upon Europe for their own economies. This area continues to be very vulnerable. If things smooth out and the EU is able to solve its problems, then I will move away from the inverse funds. But, for now I feel better having them, than not. Here is how EUM has moved up in rank recently: 7

8 It has been buried at the bottom of the heap since last summer. It was at 1,780 last week, and is now at #47 overall. If it remains in the top 100 for a while, then it will be a money-making opportunity. I also own an inverse fund on Europe (EFZ), I added it this past week: As you can see, it got slaughtered from last October until the beginning of April of this year. I would have hated to own it during that huge drop! It is now rocketing higher as Europe moves lower. EFZ is now ranked number 75 overall, while it was number 1,779 just four weeks ago! If the market continues to break down, I will consider adding more hedges. FXP is a double-short on China. China is slowing down considerably. They are shuttering steel and aluminum plants. This not good news for commodity rich South America, which depends on Chinese exports for the health of their own economies. Believe it or not, FXP is now ranked number 9 overall! It has been buried at the bottom since last summer! 8

9 I hung up the CAUTION sign four weeks ago, after being bullish for 6 months. The uptrend in the market came to an end, and we next entered into a sideways trend. We next broke down out of the sideways trend, and we are currently looking for support. It is definitely best to step very gingerly right Please follow me on Twitter, Facebook, or LinkedIn throughout the week for any changes in my current stance on the market or individual stocks. My tweets are also found on my BEST STOCKS NOW app every day, and on the homepage of my website: 9

10 Bill Gunderson s Model Portfolio for Conservative Growth Investors: This model is made up of mostly mid-cap and large cap companies, that I consider to be suitable for investors who have a conservative risk profile, but still want growth. This portfolio is up 11.0% year-to-date, while the S & P 500 is up 5.1%. The portfolio currently has a 14.0% cash position and I am adding another hedge this week. I am also selling FXM and EC this week and adding BIIB and EFZ. 10

11 Conservative Growth Model as of 5/25/ % S&P % Ahead by 5.9% (as of 9am) Add Add Beginning Current Current Date Symbol Name Sector Price Shares Value Price Value G/L Alloc Oct-10 AZO Autozone Consumer $ $3,286 $ $5, % 4.4% 2 6-Jan-12 AAPL Apple Computer Technology $ $3,802 $ $5, % 4.2% 3 11-May-12 AMT American Tower Telecom $ $4,750 $65.75 $4, % 3.9% 4 25-May-12 BIIB Biogen Drug $ $4,743 $ $4, % 4.0% 5 9-Mar-12 BPT B P Prudhoe Bay Energy $ $4,716 $ $4, % 3.6% 6 30-Sep-11 DG Dollar General Consumer $ $4,569 $47.60 $5, % 4.8% 7 27-Apr-12 DISCA Discovery Com Cl A Media $ $3,845 $50.59 $3, % 3.0% 8 26-Aug-11 DLTR Dollar Tree Consumer $ $4,580 $ $6, % 5.5% 9 25-May-12 EFZ Europe Inverse 1X Inverse $ $4,737 $52.06 $4, % 4.0% 10 6-Apr-12 ESRX Express Scripts Medical $ $3,986 $52.55 $3, % 3.1% 11 6-Apr-12 FDO Family Dollar Consumer $ $4,020 $67.48 $4, % 3.5% May-12 EUM Emg. Mkts. Inverse 1:1 Hedge $ $4,731 $33.32 $4, % 4.0% Apr-12 ISRG Intuitive Surgical Medical $ $4,605 $ $4, % 3.5% Aug-11 MA Mastercard Consumer $ $4,552 $ $5, % 4.9% May-12 NVO Novo Nordisk Drug $ $4,663 $ $4, % 3.8% Apr-12 ORLY O'Reilly Automotive Consumer $ $4,638 $96.93 $4, % 3.9% May-10 ROST Ross Stores Consumer $ $1,751 $62.39 $4, % 3.6% 18 7-Jan-11 PCLN Priceline.com Consumer $ $3,084 $ $4, % 3.9% Oct-11 SBUX Starbucks Consumer $ $4,528 $54.49 $5, % 4.9% 20 7-Oct-11 TJX T J Maxx Consumer $ $4,553 $41.01 $6, % 5.7% Apr-12 YUM Yum! Brands Consumer $ $4,644 $70.59 $4, % 3.7% CASH 14.1% Bill Gunderson s Model Portfolio for Investors seeking AGGRESSIVE Growth This is my most aggressive portfolio. It is designed for investors with long-term time horizons, seeking maximum growth. This portfolio is made up mainly of small and mid-cap stocks with superior growth potential. This portfolio is much more volatile than the Conservative Growth Portfolio and the Income Portfolio. This portfolio 11

12 also carries more risk than the other two. It also has a higher turnover rate. It has the most upside potential, however. This portfolio is up 11.7% YTD, while the S & P 500 is up 5.0%. I am selling Seagate (STX) and Priceline.com (PCLN) this week and adding EFZ and Pharmacyclics (PCYC). Cash level is now 0.7% in my Aggressive Growth Model. Ahead Gunderson Aggressive Growth Model Portfolio 11.7% YTD S&P % by 6.7% As of May 25, 2012 (8:30AM) Add Add Begin Current Current Current Symbol Name Sector Date Price Shares Value Price Value G/L Allocation 1 AAPL Apple Comp. Technology 5-Mar-10 $ $1,752 $ $4, % 3.7% 2 ALLT Allot Communications Technology 20-Apr-12 $ $4,950 $23.92 $5, % 4.2% 3 AZO Autozone Consumer 8-Oct-10 $ $2,095 $ $3, % 2.8% 4 CLB Core Labs Energy 27-Apr-12 $ $5,033 $ $5, % 4.2% 5 DLTR Dollar Tree Consumer 21-May-10 $ $2,035 $ $5, % 4.2% 6 EFZ Europe Inverse 1:1 Inverse 25-May-12 $ $4,782 $51.98 $4, % 4.0% 7 EUM Emg. Mkts Inverse 1:1 Inverse 18-May-12 $ $4,598 $33.33 $4, % 3.8% 8 FDO Family Dollar Consumer 6-Apr-12 $ $4,539 $67.46 $4, % 3.9% 9 GNC General Nutrition Consumer 11-May-12 $ $4,921 $39.49 $4, % 4.0% 10 HIBB Hibbett Sporting Goods Consumer 11-May-12 $ $4,943 $56.93 $4, % 3.9% 11 LQDT Liquidity Services Consumer 20-Apr-12 $ $4,959 $62.67 $5, % 5.0% 12 MNST Monster Beverage Consumer 11-May-12 $ $4,918 $71.39 $4, % 4.1% 13 NTES Netease.com Leisure 23-Mar-12 $ $4,350 $57.45 $4, % 3.5% 14 OSIS O S I Systems Technology 9-Mar-12 $ $4,817 $64.99 $5, % 4.3% 15 PCYC Pharmacyclics Drug 25-May-12 $ $4,763 $32.85 $4, % 4.0% 16 PII Polaris Industries Consumer 28-Oct-11 $ $4,515 $77.53 $5, % 4.7% 17 QCOR Questcor Pharm. Drug 27-Apr-12 $ $4,917 $41.41 $4, % 3.8% 18 REGN Regeneron Pharm. Drug 20-Apr-12 $ $4,957 $ $5, % 4.2% 19 SBH Sally Beauty Hldg. Consumer 21-Oct-11 $ $4,493 $26.80 $6, % 5.3% 20 SLXP Salix Pharmaceuticals Medical 23-Mar-12 $ $4,103 $51.10 $3, % 3.3% 21 SXCI S X C Health Solutions Medical 9-Mar-12 $ $4,819 $89.82 $5, % 4.9% 22 TSCO Tractor Supply Consumer 11-May-12 $ $4,947 $99.40 $4, % 4.1% 23 VVUS Vivus Inc. Drug 18-May-12 $ $4,592 $24.73 $5, % 4.2% 24 TDG Transdigm Group Aerospace 27-Apr-12 $ $5,086 $ $5, % 4.2% CASH 0.7% Bill Gunderson s Model Portfolio for investors seeking Income along with the possibility of Growth. This model is my most conservative model. It is designed for risk-adverse investors that want income first and growth second. Income producing investments have proven themselves over time to be much less volatile than pure growth investments. If you look back at the year 2008, when the overall market was 12

13 down 38.5%, income producers held up much better. They also underperform during a go-go market, however. This portfolio is designed as a bond or CD alternative, albeit with more risk. This portfolio currently has an average yield of 5.9%. Compare this with the current U.S. Treasury yield of 1.7% and current CD yields. This portfolio is up 10.1% since its August 2011 inception. That works out to very nice annualized rate. No changes this week. These are the best income and growth stock that I can find right now: INCOME Model as of May 25, 2012 (as of 10:30AM) 3.73% YTD S&P % -1.31% Inception Date August 5, % Since Inception S&P % 10.14% Add Beg. Current Current Curr. Added Symbol Name Sector Price Shares Value Price Value G/L Alloc. Yield 1 5-Aug-11 AGNC Amer. Cap. Agency Mortgage $ $4,990 $32.26 $5, % 5.3% 16.1% 2 11-Nov-11 ACC Amer. Campus Comm. REIT $ $4,097 $43.92 $4, % 4.3% 3.1% 3 11-Nov-11 AMLP Alerian MLP Energy $ $4,074 $15.99 $4, % 3.8% 6.4% 4 13-Apr-12 AVB Avalon Bay Comm. REIT $ $4,502 $ $4, % 4.1% 2.8% 5 6-Jan-12 BPT B P Prudhoe Bay Energy $ $4,216 $ $4, % 3.8% 9.5% 6 23-Mar-12 BTI British Tobacco Consumer $ $4,021 $95.67 $3, % 3.5% 4.2% 7 4-May-12 EPD Enterprise Products Energy $ $3,926 $49.64 $3, % 3.4% 5.2% 8 5-Aug-11 KMP Kinder Morgan Energy $ $5,034 $79.82 $5, % 5.5% 5.6% 9 13-Apr-12 LO Lorillard Consumer $ $4,444 $ $4, % 3.7% 4.5% Oct-11 MMP Magellan Mid. Ptrs. Energy $ $4,033 $69.46 $4, % 4.1% 4.5% 11 4-May-12 NGLS Targa Resources Energy $ $3,855 $41.13 $3, % 3.2% 5.5% 12 5-Aug-11 NHI Nat. Health Investors REIT $ $4,994 $48.60 $5, % 5.5% 5.3% 13 9-Sep-11 OKS Oneok Ptrs. Energy $ $3,939 $55.49 $5, % 4.7% 4.4% 14 5-Aug-11 O Realty Income REIT $ $5,012 $38.70 $6, % 6.0% 4.6% 15 5-Aug-11 OHI Omega Healthcare REIT $ $4,999 $21.05 $6, % 6.2% 7.8% 16 9-Mar-12 PVD Admin Fondos Pension Finance $ $3,640 $73.28 $3, % 3.3% 6.7% May-12 SKT Tanger Factory Outlet REIT $ $4,561 $31.25 $4, % 4.1% 2.6% 18 7-Oct-11 SXL Sunoco Logistics Ptrs. Energy $ $3,949 $34.61 $4, % 4.2% 4.4% 19 3-Feb-12 SDRL Seadrill ltd Energy $ $4,432 $35.14 $4, % 3.8% 8.5% May-12 TGH Textainer Corp. Trans. $ $4,507 $33.94 $4, % 3.9% 4.4% 21 9-Mar-12 WES Western Gas Partners Energy $ $4,526 $44.12 $4, % 4.0% 3.7% 22 6-Jan-12 WHX Whiting Usa Trust Energy $ $4,279 $17.17 $4, % 3.8% 17.4% 23 5-Aug-11 WPC W P Carey REIT $ $5,012 $44.77 $6, % 5.8% 4.8% 24 5-Aug-11 CASH Money Market Cash $ $0 $1.00 $2, % 1.9% 0.0% 5.9% Bill Gunderson is a professional fee-based money manager. Gunderson Capital Management manages hundreds of accounts all across the country. Minimum account size is $50,000. Annual Mgt. fees are 2% on accounts under $250,000, 1.5% on accounts between $250k and $1 million, and 1% on accounts over $1 million. Call us for a portfolio evaluation and more information. (760) Bill Gunderson has also forged a relationship with Stepstone Partners that gives him access to products that the average investor does not have access to. Call for more information. 13

14 Bill Gunderson is also columnist for The Street.com, MarketWatch.com, and SeekingAlpha.com I mentioned my article previously for Marketwatch this week on inverse fund. I also wrote an article earlier in the week for The Street on my valuation of Facebook.com: I currently have 2,788 stocks in my database. Every day when I am done doing my radio show, I spend several hours looking at them. I especially focus in on the ones I own, the stocks rising in rank, and the A- or better rated stocks (usually the top 200). My proprietary grading system consists of Value, Performance, and Safety. I like stocks that have performed much better than the rest, and still offer good value. I spent years developing this grading system and I am thrilled with the results! When it comes to growth stocks, I pretty much stay within the top 200. I do dip down lower than that when it comes to income stocks, however. Here is my weekly example of what I am talking about 14

15 Bill Gunderson s Weekly Top 200 List. These are the stocks that currently possess the best combination of performance and value. This is a great shopping list! This list represents the top 7% of the entire market. 15

16 GUNDERSON One Last Best Stocks Now Mo. Ago Week Yest. Current Top 200 5/25/2012 Rank Rank Rank Rank A+ FIRE Sourcefire Inc A+ LQDT Liquidity Services A+ TSCO Tractor Supply Co A+ PCYC Pharmacyclics Inc A+ DXPE DXP Enterprises Inc A+ DLTR Dollar Tree Stores A+ MNST Monster Beverage Co A+ BOM Base Metal Index Inverse 2X A+ FXP China Double Short A+ MDVN Medivation A SBH Sally Beauty Holdings A CHSI Catalyst Health Solutions A EEV ProShares Ultra Short MSCI Emerging Markets A EFU ProShares Ultra Short MSCI EAFE A EUO Euro Vs. Dollar Inverse 2X A YXI China 25 Inverse A SLXP Salix Pharmaceuticals Ltd A AVD American Vanguard Corp A CERN Cerner Corp A CRUS Cirrus Logic Inc A INCY Incyte Corp A ORLY O'Reilly Automotive Inc A REGN Regeneron Pharmaceuticals A EWV ProShares Ultra Short MSCI Japan A SCO Crude Oil Inverse 2X A CMD Commodity Index Inverse 2X A LL Lumber Liquidators A NATH Nathan's Famous Inc A DG Dollar General Corp A ROST Ross Stores Inc A ABCO Advisory Board Company A LPSN LivePerson Inc A BMRN BioMarin Pharmaceutical A EQIX Equinix Inc A PII Polaris Industries Inc A QCOR Questcor Pharmaceutical A VSI Vitamin Shoppe Inc A NEU Newmarket Corp A HIBB Hibbett Sporting Goods Inc A OSIS OSI Systems Inc A ALLT Allot Communications A ALXN Alexion Pharmaceuticals A JBHT Hunt JB Trans Scvcs Inc A PETM Petsmart Inc A UA Under Armour A EPV Europe Inverse 2X A EUM ProShares Short MSCI Emerging Markets A JPX Pacific Index Japan Inverse 2X A- CLB Core Laboratories NV A- SXCI S X C Health Solutions

17 GUNDERSON One Last Best Stocks Now Mo. Ago Week Yest. Current Top 200 5/25/2012 Rank Rank Rank Rank A- VVUS Vivus Inc A- SWI Solarwinds Inc A- ZAGG Zagg Inc A- AGNC American Capital Agency A- TDG Transdigm Group Inc A- WFM Whole Foods Market A- ARIA Ariad Pharmaceuticals Inc A- BIIB Biogen Idec Inc A- LF LeapFrog Enterprises Inc A- AKRX Akorn Inc A- EW Edwards Lifesciences Corp A- AIRM Air Methods Corp A- GNC G N C Holdings A- ELGX Endologix Inc A- AAPL Apple Computer A- AZZ AZZ Inc A- FL Foot Locker Inc A- BBBY Bed Bath & Beyond Inc A- PCLN Priceline.com Inc A- TJX TJX Co Inc A- ALGN Align Tech Inc A- GEOI GeoResources Inc A- ULTI Ultimate Software A- VRTX Vertex Pharmaceuticals A- EFZ Europe EAFE Inverse A- SBM Basic Material Inverse A- CNQR Concur Technology A- ULTA Ulta Salon A- PAG Penske Automotive Group A- AFSI Amtrust Fin. Svcs A- PZZA Papa John's International Inc A- PVD Admin Fondos A- FDO Family Dollar Stores Inc A- ABAX Abaxis Inc A- TDC Teradata A- IMGN Immunogen Inc A- HSTM Healthstream A- BGS B & G Foods A- WYN Wyndham Worldwide Corp A- TLT Treasuries U S 20 year A- ADGF Adams Golf A- CASY Casey's General Stores Inc A- RDWR Radware Limited A- ADES A D A ES Corp A- AMZN Amazon.com Inc A- BOS Base Metal Index Inverse A- DDG Oil & Gas Index Inverse A- AMT American Tower Corp A- HMSY HMS Hldgs Corp A- CHD Church & Dwight Co Inc A- ARBA Ariba Inc

18 GUNDERSON One Last Best Stocks Now Mo. Ago Week Yest. Current Top 200 5/25/2012 Rank Rank Rank Rank A- CRAY Cray Inc A- ISRG Intuitive Surgical A- BWLD Buffalo Wild Wings Inc A- PRGO Perrigo Co A- SGEN Seattle Genetics Inc A- SWM Schweitzer-Mauduit Intl A- ENB Enbridge A- TTC Toro Co A- NTES Netease.Com Inc Adr A- ARG Airgas Inc A- CPHD Cepheid A- ACC Amer. Campus Comm A- CMG Chipotle Mexican Grill A- SBUX Starbucks Corp A- SCVL Shoe Carnival Inc A- BFA Brown Forman Corp Cla A- AZO AutoZone Inc A- MIDD Middleby Corp A- FDS Factset Research Sys Inc A- FMX Fomento Econ Mex Sab Ads A- DTLK Datalink Corp A- PPG P P G Industries A- HE Hawaiian Electric Inds Inc A- KSM DWS Strategic Municipal Income Trust A- KTF DWS Municipal Income Trust A- NVO Novo Nordisk A/S A- CALM Cal-Maine Foods Inc A- VRSK Verisk Analytics B+ ADS Alliance Data Systems Corp B+ SBAC SBA Communications Corp B+ CSGP Costar Grp Inc B+ MHD BlackRock MuniHoldings Fund Inc B+ DCI Donaldson Company Inc B+ MGAM Multimedia Games Inc B+ PNRA Panera Bread B+ HTWR Heartware Intl. Inc B+ AH Acccretive Health B+ DISCA Discovery Holding Co B+ ZUMZ Zumiez B+ JBSS Sanfilippo John B & Son B+ WRLD World Acceptance Corp B+ AN AutoNation Inc B+ CBE Cooper Ind Ltd B+ SHW Sherwin-Williams Co B+ TYL Tyler Technologies Inc B+ FLXS Flexsteel Ind Inc B+ NDSN Nordson Corp B+ PSMT PriceSmart Inc B+ RAVN Raven Ind B+ TCBI Texas Captial Bancshares

19 GUNDERSON One Last Best Stocks Now Mo. Ago Week Yest. Current Top 200 5/25/2012 Rank Rank Rank Rank B+ SAM Boston Beer Company B+ VFC VF Corp B+ DORM Dorman Products Inc B+ ODFL Old Dominion Freight Lines B+ MWIV M W I Veterinary Supply B+ HPS John Hancock Preferred Income III B+ COO Cooper Companies Inc A- SFK Russell 1000 Growth Index Inverse 2X B+ NKE Nike Inc Cl B B+ RHT Red Hat Inc B+ MNP Western Asset Municipal Partners Fund Inc B+ CMN Cantel Medical B+ EGHT Eight by Eight Inc B+ SCL Stepan Co B+ HAIN Hain Celestial Grp B+ NRCI National Research Corp B+ CONN Conns Inc B+ RAI Reynolds American Inc B+ UNP Union Pacific Corp B+ YUM Yum! Brands Inc B+ IIC Morgan Stanley California Insured Municipal Inc B+ CMO Capstead Mortg B+ RGR Sturm, Ruger & Co. Inc B+ HCSG Healthcare Services Grp Inc B+ WWW Wolverine World Wide Inc B+ EXPO Exponent Inc B+ AME Ametek Inc B+ NLY Annaly Capital B+ OKE Oneok B+ EZCH Ezchip Semiconductor B+ MCRS Micros System Inc B+ TRLG True Religion Apparel Inc B+ TGH Textainer Group B+ V Visa Inc B+ IT Gartner Inc Cl A B+ MMS Maximus Inc B+ BBSI Barrett Business Svcs B+ FAST Fastenal Co B+ WDFC WD 40 Co B+ DSW D S W Inc B+ ICS Morgan Stanley Insured California Municipal Se B+ MUH BlackRock MuniHoldings Fund II Inc B+ AMRN Amarin Corp B+ CATM Cardtronics B+ AFFY Affymax Inc B+ MCA BlackRock MuniYield California Insured Fund In B+ NQC Nuveen California Investment Quality Municipal B+ VLT Van Kampen High Income Trust II B+ EC Ecopetrol B+ BAP Credicorp Ltd

20 Bill Gunderson s Top 200 is a new feature in the newsletter. I can tell you from experience that it is very powerful. The Top 200 is a reflection of the market and the economy. These trends can remain in place for a long time. Sometimes bonds are at the top, sometimes cash is at the top, and there are even times when inverse funds rule the roost. Study this list carefully each week. SPECIAL NOTE: AM1000 KCEO HAS BEEN SOLD. WE HAVE MOVED TO AM1450 AND AM1510. You can also tune in on your smartphone or the internet. Global Markets as of 5/25/2012 The global markets have been coming unraveled with the problems in Europe. I would not have any international exposure ytd Vietnam VNM 27.4% Thailand THD 9.4% Peru EPU 8.2% Mexico India EWW INP 2.4% 1.2% Japan EWJ -3.3% Europe Emerging Mkts. China EFA ADRE -2.8% -4.4% FXI -6.5% Canada Chile EWC CH -4.0% -6.1% Russia RSX -9.3% Brazil EWZ -9.1% Italy EWI -13.3% Spain EWP -24.4% Greece GREK -23.5% 20

21 Commodities as of 5/25/2012 COMMODITIES-Still no reason to own commodities right now YTD Silver SLV 2.6% Grains JJG 1.3% Gold GLD 0.5% Copper JJC -0.2% Steel SLX -9.9% Oil USO -10.2% Cotton BAL -19.1% Coal KOL -21.6% Watch for Bill Gunderson on: 21

22 Here are snippets on all of the stocks I have talked about on my radio show, and articles that I have written over the last few months. They are in alphabetical order Conservative Growth Model Portfolio Sells Bought Bought Bought Sector Buy Price Shares Tot. Buy Sell Price Total Sell Pct. G?L Sell Date 1 27-May-11 VIV Telefonica Brasil Utility $ $4,418 $27.79 $4, % 3-Feb Nov-10 ARLP Alliance Res. Ptrs. Commodities $ $5,387 $72.44 $6, % 2-Mar Jun-11 KOF Coca Cola Femsa Consumer $ $4,583 $ $5, % 9-Mar Oct-11 MCD McDonalds Consumer $ $4,490 $95.60 $4, % 23-Mar Nov-08 KMP Kinder Morgan Energy $ $2,371 $82.32 $4, % 30-Mar Jan-12 EOG E O G Resources Energy $ $4,740 $ $5, % 6-Apr Nov-08 O Realty Income REIT $ $2,168 $37.50 $4, % 6-Apr Jan-12 AAPL Apple Computer Technology $ $845 $ $1, % 13-Apr Jan-11 PCLN Priceline.com Consumer $ $2,644 $ $4, % 13-Apr Jan-12 CELG Celgene Medical $ $4,648 $73.45 $4, % 27-Apr Mar-12 BIDU Baidu Technology $ $4,810 $ $4, % 27-Apr Aug-11 TNH Terra Nitrogen Commodities $ $4,481 $ $6, % 4-May Apr-11 ABV Comp de Bebida Consumer $ $4,474 $39.67 $5, % 11-May Oct-11 GWW Grainger Industrial $ $4,510 $ $5, % 18-May Apr-12 EC Ecopetrol Energy $ $3,914 $57.42 $3, % 25-May Apr-11 FMX Fomento Econ Mex Consumer $ $4,499 $78.41 $5, % 25-May Income Model Portfolio Sells Bought Bought Bought Sector Buy Price Shares Tot. Buy Sell Price Total Sell Pct. G?L 1 5-Aug-11 CEF Central Fund Canada Pr. Metals $ $5,001 $19.97 $4, % 4 5-Aug-11 ARLP Allliance Res. Ptr. Energy $ $4,992 $61.09 $4, % 2 5-Aug-11 TSU T I M Participaco Telcom $ $4,981 $28.21 $5, % 3 5-Aug-11 NLY Annaly Mortgage REIT $ $4,996 $16.17 $4, % 4 30-Sep-11 NUV Nuveen Muni Val. FundMuni Bond $ $3,960 $9.79 $3, % 5 11-Nov-11 BCE B C E Inc. Telcom $ $4,089 $39.81 $4, % 21 5-Aug-11 TNH Terra Nitrogen Commodity $ $4,976 $ $7, % 14 5-Aug-11 VIV Telefonica Brasil Telcom $ $5,003 $27.64 $4, % 10 5-Aug-11 TU Telus Corp. Telcom $ $5,009 $57.96 $5, % HAPPY MEMORIAL DAY! 22

23 Gunderson Aggressive Growth Model Portfolio Sells 2012 Symbol Name Sector Bought Buy Price Shares Tot. Buy Sell Price Total Sell Pct. G/L Sell Date 1 BJRI B J Restaurants Consumer 22-Apr-11 $ $4,563 $45.99 $4, % 6-Jan-12 2 EGOV N I C Inc. Technology 28-Oct-11 $ $4,511 $11.92 $3, % 3-Feb-12 3 WRLD World Acceptance Financial 30-Dec-11 $ $4,337 $65.48 $3, % 10-Feb-12 4 RDEN Elizabeth Arden Consumer 28-Oct-11 $ $4,497 $39.23 $5, % 17-Feb-12 5 DG Dollar General Consumer 30-Sep-11 $ $4,456 $42.23 $4, % 17-Feb-12 6 HEK Heckman Corp. Energy 18-Dec-11 $ $4,368 $5.19 $3, % 2-Mar-12 7 SMP Standard Motor Prod. Automotive 23-Dec-11 $ $4,374 $20.65 $4, % 9-Mar-12 8 LKQX L K Q Corp. Consumer 7-Oct-11 $ $4,528 $31.68 $5, % 9-Mar-12 9 MNRO Monroe Muffler Consumer 10-Feb-12 $ $3,982 $41.85 $3, % 23-Mar QSII Quality Systems Medical 26-Aug-11 $ $4,289 $42.38 $4, % 23-Mar NUS Nu Skin Enterprises Consumer % 6-Apr CLH Clean Harbors Energy 8-Apr-11 $ $4,350 $66.33 $5, % 6-Apr NUS Nu Skin Enterprises Consumer 12-Aug-11 $ $2,375 $56.79 $3, % 6-Apr DPZ Domino's Pizza Consumer 16-Sep-11 $ $4,808 $35.14 $5, % 13-Apr GEOI Georesources Energy 3-Feb-12 $ $4,562 $30.74 $4, % 13-Apr PETM Petsmart Consumer 21-Oct-11 $ $4,504 $56.55 $5, % 13-Apr AAPL Apple Comp. Technology 5-Mar-10 $ $657 $ $1, % 13-Apr ALXN Alexion Pharm. Medical 26-Aug-11 $ $1,476 $89.70 $2, % 13-Apr PCLN Priceline.com Leisure 29-Oct-11 $ $1,505 $ $2, % 13-Apr FCFS First Cash Financial Financial 1-Apr-11 $ $4,247 $38.99 $4, % 20-Apr TPX Tempur Pedic Consumer 6-Apr-12 $ $4,290 $59.59 $2, % 27-Apr PIR Pier One Imports Consumer 6-Jan-12 $ $4,290 $17.87 $5, % 4-May VLTR Volterra Semiconductor Technology 17-Feb-12 $ $4,081 $30.51 $3, % 4-May TYL Tyler Technologies Technology 14-Oct-11 $ $4,533 $37.38 $5, % 11-May PEET Peet's Coffee Consumer 20-May-11 $ $4,030 $64.00 $5, % 11-May ACFN Acorn Energy Energy 30-Mar-12 $ $3,859 $9.10 $3, % 18-May RGR Sturm Ruger Leisure 11-May-12 $ $4,921 $42.49 $4, % 18-May BWLD Buffalo Wild Wings Consumer 2-Mar-12 $ $3,309 $82.31 $3, % 18-May STX Seagate Technology Technology 17-Feb-12 $ $4,084 $25.99 $3, % 25-May PCLN Priceline.com Leisure 29-Oct-11 $ $2,634 $ $4, % 25-May-12 MORTGAGE RATES remain at all-time lows. "Craig Brock, our local mortgage expert and bond market commentator on Positively Wall Street is actually closing HARP-2 loans for people (while many banks are hopelessly backlogged). Are you under water on your property? These new rules are helping folks who may not have otherwise qualified for a new loan at these historic low rates! Talk to Craig! (855) 900-EASY" Scott Voak, our show s Real Estate expert continues to find double-digit returns on income properties all throughout San Diego. You can reach Scott at (888) Scott s website is I covered a lot of interesting topics on my daily radio this past week. To listen to the archives, you can visit To order my book, Best Stocks Now, click the link below: To set up and appointment with me, click the link below: 23

24 If you are looking for a good CPA to do some tax-planning or financial planning, give Randy Goodsell a call. Randy has been my CPA for many years. Randy is a frequent guest on my daily radio show. Randy can be reached at (619) His website is Subscriptions to this weekly newsletter are $195 per year or $60 per quarter. To subscribe call us at (760) or visit our website at You can also mail a check to Gunderson Capital Mgt. 550 Seagaze Dr. #16 Oceanside, CA THIS REPORT PROVIDES GENERAL INFORMATION AND IS NOT AN OFFER TO BUY OR SELL ANY SECURITY. IT IS THE SOLE OPINION OF THE WRITER, BILL GUNDERSON. BILL GUNDERSON IS PRESIDENT OF GUNDERSON CAPITAL MANAGEMENT INC. A REGISTERED INVESTMENT ADVISORY FIRM LOCATED AT 550 SEAGAZE DR. #16 OCEANSIDE, CALIFORNIA PHONE NO. (760) BILL GUNDERSON EDITS THE WEEKLY NEWSLETTER. INFORMATION IN THIS NEWSLETTER COMES FROM INDEPENDENT SOURCES BELIEVED TO BE RELIABLE, BUT ACCURACY IS NOT GUARANTEED. BILL GUNDERSON OR GUNDERSON CAPITAL MGT. INC. HAS NOT VERIFIED THE ACCURACY OF THE INFORMATION PUBLISHED BY THE INDEPENDENT SOURCES. SELECTIONS IN THIS NEWSLETTER ARE THE SOLE OPINIONS OF BILL GUNDERSON AND ARE SUBJECT TO RISKS AND UNCERTAINTIES BEYOND THE CONTROL OF BILL GUNDERSON AND GUNDERSON CAPITAL MGT. INC. SUCH RISKS AND UN- CERTAINTIES INCLUDE NATIONAL, INTERNATIONAL, ECONOMIC CONDITIONS AND FLUCTUATIONS; ECONOMIC CONDITIONS OF SPECIFIC SECTORS AND GROUPS AND COMPANIES; MANAGEMENT CAPABILITIES OF COMPANIES SELECTED. SELECTIONS IN THIS NEWSLETTER MAY NOT YIELD PROFITABLE RESULTS AND MAY ACTUALLY RESULT IN A LOSS OF INVESTMENT CAPITAL. AS AN INVEST- MENT ADVISORS, BILL GUNDERSON, OR CLIENTS OF GUNDERSON CAPITAL MGT. INC. MAY PURCHASE AND SELL SECURITIES IDENTIFIED EITHER IN THEIR OWN ACCOUNTS OR ACCOUNTS THAT THEY MANAGE. THEY MAY ALSO BUY OR SELL SECURITIES MENTIONED WITHOUT NOTICE TO NEWSLETTER SUBSCRIBERS. IF YOU HAVE ANY QUESTONS, YOU CAN CONTACT BILL GUNDERSON AT (760) MENT ADVISORS, BILL GUNDERSON, OR CLIENTS OF GUNDERSON CAPITAL MGT. INC. MAY PURCHASE AND SELL SECURITIES IDENTIFIED EITHER IN THEIR OWN ACCOUNTS OR ACCOUNTS THAT THEY MANAGE. THEY MAY ALSO BUY OR SELL SECURITIES MENTIONED WITHOUT NOTICE TO NEWSLETTER SUBSCRIBERS. IF YOU HAVE ANY QUESTONS, YOU CAN CONTACT BILL GUNDERSON AT (760)

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