Bill Gunderson s Weekly Best Stocks Now Newsletter

Transcription

1 Bill Gunderson s Weekly Best Stocks Now Newsletter Straightforward, honest research for successful people November 19, 2011 Bill Gunderson-President of Gunderson Capital Mgt. Inc. Right now the market is trading on fast-moving events in Europe and the looming deadline of the so-called debt reduction super-committee. I am asked all the time, with so much in the world to worry about right now, why even be in the market? I have been a professional money manager for almost twenty years now, and I can never remember a time when there was not a lot to worry about. The currents facts are this: America has avoided a recession for now and is continuing to grow at a decent GDP growth pace of about 2.5%. Corporate earnings, for the most part remain very good and company balance sheets are as strong as they have been in a long time. It is unlikely that the mess in Europe will have a major impact on the U.S. financial system. Many leading stocks continue to be at or near all-time highs-more on that in a bit.

2 The Week in the Market: The markets were down roughly 3%-4% for the week and the S &P 500 is now down 3.8% for the year. Here is a current look at a one-year chart of the S & P 500: As you can see, the market broke out of its 10-week uptrend in late October and has now pulled back to its breakout area. This continues to be a fairly bullish technical pattern for the overall market. We have entered into a seasonally strong period for the market. In addition to this, as this current earnings season winds down, the average forward PE ratio on the roughly 2, 700 stocks that I follow is a very reasonable For the reasons listed above, I am currently bullish on the market.

3 My Model Portfolio for Conservative Investors: This model is made up of the 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. The portfolio of twenty equally weighted stocks was down 2.9% for the week, while the S&P 500 was 3.3% for the week. The portfolio is up 1.34% year-to-date, while the S & P 500 is down 3.3% The portfolio currently has a 7.2% cash position and no hedges. The portfolio is currently heavily weighted in the consumer and commodity related sectors. There are no changes in the portfolio this week. GUNDERSON CONSERVATIVE GROWTH MODEL PORTFOLIO Year-to-Date: +1.34% (Includes 2% annual mgt fee and $7 trades) S&P 500 ytd -3.30% 2010=12.55% Past Performance may not be indicative of future results. Ahead of S&P by: 4.68% S&P 500=12.7% Performance of Managed Accounts may do better or worse than this Model. Port. performance includes dividends. CONSUMER FINANCIAL Add Date Sym. Name and Add Price Current Pct. G/L Add Date Sym. Name and Add Price Current Pct. G/L 5/21/2010 ROST Ross Stores ($52.45) $ % 8/26/2011 MA Mastercard ($325.33) $ % 10/22/2010 AZO Autozone ($234.43) $ % CASH 1/7/2011 PCLN Priceline.com ($437.06) $ % Add Date Sym. Name and Add Price Current Pct. G/L 8/26/2011 DLTR Dollar Tree ($70.46) $ % 1/1/2011 $$$$ Current Cash Alloc. 7.20% NA 10/7/2011 TJX T J Maxx ($55.70) $ % REAL ESTATE 9/30/2011 DG Dollar General ($37.72) $ % Add Date Sym. Name and Add Price Current Pct. G/L 10/21/2011 GWW Grainger ($167.64) $ % 11/6/2008 O Realty Inc. ($17.12) $ % 4/22/2011 ABV Comp de Bebidas ($31.77) $ % 4/22/2011 FMX Fomento Econ ($63.58) $ % COMMODITIES 6/10/2011 KOF Coca Cola Femsa ($88.13) $ % Add Date Sym. Name and Add Price Current Pct. G/L 10/21/2011 MCD McDonald's($92.32) $ % 11/19/2010 ARLP Alliance Re. Ptrs ($59.41) $ % 10/21/2011 SBUX Starbucks($42.09) $ % 12/3/2010 CEF Cent. Fd.Canada ($19.97) $ % 11/6/2008 KMP Kinder Morgan ($44.46) $ % UTILITIES 7/29/2011 UGP Ultrapar Particip.($18.12) $ % Add Date Sym. Name and Add Price Current Pct. G/L 8/12/2011 TNH Terra Nitrogen ($169.69) $ % 5/27/2011 VIV Telefonica Brasil ($27.96) $ % SOLD THIS WEEK: NONE NEW THIS WEEK: NONE *All current prices as of Close on 11/18/2011 *Portfolio as of CLOSE on 11/18/2011

4 Model Portfolio for Investors seeking Income along with the possiblility of Growth. This model is made up of superior dividend paying stocks that have also delivered some good growth over the years. I do not believe in buying stocks just for their dividends. Here is as an example of what I mean by this: Data from Best Stocks Now App - McDonald s currently pays a 3.0% dividend, while General pays a 3.8% dividend. On the surface, GE would seem like the better investment. Look at the total return of the two stocks, however. The total return of GE has been negative over the last five years and ten years, even with the superior dividend! The total return of McDonald s has been excellent over the years, despite offering a lower dividend than GE. With this is mind, here is my portfolio of the best income producing stocks, along with a good chance for growth, stocks that I can find at the current time.

5 GUNDERSON INCOME MODEL PORTFOLIO Since Inception 8/5/ % (Includes 2% annual mgt fee and $7 trades) S&P 500 Since Inception (+1.35%) AHEAD OF S&P 500 BY (+0.44%) Past Performance may not be indicative of future results. Performance of Managed Accounts may do better or worse than this Model. Mortgage Reit's Add Date Sym. Name and Add Price Current Total Pct. G/L Yield 8/5/2011 AGNC Am. Cap. Agency ($26.98) $ % 20.0% 8/5/2011 NLY Annaly Cap. Mgt. ($16.92) $ % 14.9% Commodity Related Add Date Sym. Name and Add Price Current Pct. G/L 8/5/2011 ARLP Alliance Res Ptrs ($69.34) $ % 5.3% 8/5/2011 CEF Central Fd.Canada ($23.93) $ % 0.0% 8/5/2011 KMP Kinder Morgan ($68.03) $ % 6.0% 9/9/2011 OKS Oneok Prtrs MLP ($43.25) $ % 4.8% 8/5/2011 TNH Terra Nitrogen ($156.78) $ % 9.4% 10/7/2011 SXL Sunoco Logistics ($89.76) $ % 4.7% 10/21/2011 MMP Magellan Mid. Ptr.($63.02) $ % 4.9% 11/11/2011 AMLP Alerian MLP ($15.79) $ % 6.2% Real Estate Add Date Sym. Name and Add Price Current Pct. G/L 8/5/2011 NHI Nat. Health Inv.($40.03) $ % 5.6% 8/5/2011 O Realty Income ($29.76) $ % 5.2% 8/5/2011 OHI Omega Health. ($15.82) $ % 9.0% 8/5/2011 WPC W P Carey ($35.28) $ % 5.5% 11/11/2011 ACC Am. Campus Comm ($38.65) $ % 3.5% UTILITY Add Date Sym. Name and Add Price Current Pct. G/L 8/5/2011 VIV Vivo Particip. ($28.80) $ % 7.1% 8/5/2011 TSU T I M Participaco (26.78) $ % 2.5% 8/5/2011 TU Telus Corp. ($50.06) $ % 4.0% 11/11/2011 BCE B C E Inc. ($39.32) $ % 5.4% Cash/Bonds Add Date Sym. Name and Add Price Current Pct. G/L 8/5/2011 CASH CURRENT CASH ALLOC. 6.3% NA 0.1% 9/30/2011 NUV Nuveen Mun.Val.Fd.($9.73) $ % 4.8% ALL POSITIONS APPOX. 4 %5% of TOTAL PORTFOLIO VALUE (EXCEPT CASH) NEW THIS WEEK: NONE *Portfolio as of CLOSE on 11/18/2011 SOLD THIS WEEK: NONE *All current prices as of 11:30AM on 11/18/2011 AVG. YIELD for PORTFOLIO 6.1%

6 It should be noted that the average yield of this portfolio is 6.1%. This compares with a ten year U.S. treasury at a current rate of 2.0%, CD s offering next to nothing, and corporate bonds offering about 6.0% with very little chance of growth. Model Portfolio for Investors seeking AGGRESSIVE Growth This portfolio is designed for investors with long-term time horizons seeking maximum growth. This portfolio is mainly made up of small and mid-cap stocks with superior growth potential. This portfolio is much more volatile than the Conservative Portfolio and the Income Portfolio. This portfolio also has more risk than the aforementioned ones. GUNDERSON AGGRESSIVE GROWTH MODEL PORTFOLIO Model Port. Model Port. Year to date 10.64% (Includes 2% annual mgt fee and $7 trades) S&P 500 ytd 3.34% % % Past Performance may not be indicative of future results. Performance calculations (including complete transaction hi Ahead of S&P by: 7.32% 2010 S&P % 2010 S&P % Performance of Managed Accounts may do better or worse than this Model. OIL & GAS MEDICAL Add Date Sym. Name & Add Price Current Pct. G/L Add Date Sym. Name & Add Price Current Pct. G/L 4/8/2011 CLH Clean Harbors ($51.78) $ % 8/26/2011 ALXN Alexion Pharm ($54.68) $ % GROWTH & INCOME 8/26/2011 QSII Quality Systems ($43.87) $ % Add Date Sym. Name & Add Price Current Pct. G/L 9/16/2011 MRGE Merge Technology ($7.05) $ % 11/20/2008 $$$$ Current Cash Allocation 2.00% NA CONSUMER FINANCIALS Add Date Sym. Name & Add Price Current Pct. G/L Add Date Sym. Name & Add Price Current Pct. G/L 5/21/2010 DLTR Dollar Tree ($40.69) $ % 4/1/2011 FCFS First Cash Fin. ($38.61) $ % 10/8/2010 AZO Autozone ($233.00) $ % LEISURE 4/22/2011 BJRI B J S Restaurants ($46.56) $ % Add Date Sym. Name & Add Price Current Pct. G/L 5/20/2011 PEET Peet's Coffee ($52.22) $ % 10/29/2010 PCLN Priceline.com ($376.81) $ % 8/12/2011 NUS Nu Skin Ent. ($39.67) $ % TECHNOLOGY 9/16/2011 DPZ Dominoes Pizza ($28.28) $ % Add Date Sym. Name & Add Price Current Pct. G/L 9/30/2011 DG Dollar General ($37.72) $ % 3/5/2010 AAPL Apple Comp. ($219.13) $ % 10/7/2011 LKQX L K Q Corp. ($26.79) $ % 10/14/2011 TYL Tyler Tech. ($28.33) $ % 10/21/2011 SBH Sally's Beauty ($18.80) $ % 10/28/2011 TDC Teradata ($62.18) $ % 10/21/2011 PETM Petsmart ($47.41) $ % 10/28/2011 EGOV N I C Inc. ($14.23) $ % 10/28/2011 PII Polaris Ind. ($62.71) $ % *All Stocks are equally allocated (4.0%) except for cash Stock current prices as of CLOSE on 11/18/ /28/2011 RDEN Eliz. Arden ($35.13) $ % *Delete from the Model Portolio this week: NONE *Add to the Model Portolio this week: NONE Model Portfolio performance as of Close on 11/18/2011 For current Model Portfolio Target Prices, see FEATURED STOCKS OF THE WEEK This was not a good week at all for leadership, growth stocks. Many leadership stocks like Apple, First Cash, Priceline, Polaris, etc. are currently in correction mode. These stocks have a tendency to really fly when the market is doing well and sell-off sharply when the market corrects. Over the long haul, these superior growth stocks should outperform the overall market. Time is a critical factor with these stocks. I was way ahead of the S&P 500 earlier this year with this portfolio and now I am trailing it. I feel confident however, that over time this portfolio will do just fine.

7 Bill Gunderson s Featured Stock of the Week I currently have about 2,700 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 and the A rated stocks. 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! Here is this week s BEST example of a stock that best meets my very strict criteria. 1. Description 2. Valuation Data from Best Stocks Now App Monroe Muffler Brake operates 798 service and tire stores in 19 states with plans to open about four more this year. Headquartered in Rochester, New York, this stock is a small-cap that is suitable only for aggressive growth investors. The company is benefitting from the current weakness in the economy. The stock is currently trading at a forward PE ratio of 18.9 with a five year projected growth rate of 22.7%. I calculate 84.8% upside potential over the next five years.

8 3. Performance 4. Overall Grade Data from Best Stocks Now App The stock has been a superior performer over the years and has handily beaten the S & P 500 over the last 1 year, 3 years, 5 years, and 10 years. It also did very well in 2008 when the market was down 38.5%. MNRO was up 32.7% that year. The 5-yr chart of MNRO shows a steady climb that should last well into the future.

9 PREVIOUSLY FEATURED STOCKS My average featured stock has beat the S&P 500 by: 23.1% Featured P Current S&P 5 Yr. Upside Gunderson Featured Symbol Name Price Price Pct. Chg. 500 Sector Target Potential Grade 1 07/30/2010 AGNC American Capital Agency $12.63 $ % 30.5% Mort.-Income na na B 2 04/22/2011 ALXN Alexion Pharm. $27.28 $ % 3.2% Drug $ % A 3 03/25/2011 ARLP Alliance Resource Partners $45.58 $ % 14.2% Energy-Income $ % A- 4 02/19/2010 AZO Autozone $ $ % 4.3% Consumer $ % A- 5 02/13/2009 BEXP Brigham Exploration $9.48 $ % -14.0% Energy Bought Out na 6 07/08/2011 BJRI B J' s Restuarants $46.56 $ % -14.0% Consumer $ % A- 7 11/04/2011 BRFS Brazil Foods $20.39 $ % -3.0% Consumer $ % B+ 8 06/22/2007 BWA Borg Warner $43.86 $ % 10.4% Industrial $ % B+ 9 08/12/2011 CEF Central Fund of Canada $17.70 $ % 3.4% Basic Material NA NA B /29/2011 CERN Cerner $20.05 $ % 43.0% Technology $ % B /16/2010 CLB Core Labs $32.28 $ % 47.0% Energy $ % A /03/2010 CLH Clean Harbors $30.07 $ % 9.4% Energy $ % A /09/2008 CSH Cash America $37.96 $ % 9.6% Finance $ % B 14 09/10/2010 CTSH Cognizant Technology $12.97 $ % 7.2% Technology $ % B /02/2010 DECK Decker's Outdoor $48.24 $ % 11.6% Consumer $ % A 16 09/30/2010 DG Dollar General $37.76 $ % 7.4% Consumer $ % B /10/2007 DLTR Dollar Tree $31.19 $ % 9.9% Consumner $ % A 18 09/23/2011 DPZ Dominoe's Pizza $28.16 $ % 7.0% Consumner $ % B /27/2011 EPD Enterprise Products $26.81 $ % 11.4% Energy-Income $ % A /02/2008 FCFS First Cash Fin. Svcs. $36.60 $ % -5.0% Finance $ % B /18/2005 FMX Fomento Econ Mex $72.37 $ % -5.9% Finance $ % B /07/2011 KMP Kinder Morgan $69.94 $ % 5.2% Income $ % B /25/2011 KOF Coca Cola Femsa $88.13 $ % -4.4% Consumer $ % B /26/2011 LQDT Liquidity Services $22.55 $ % -7.6% Consumer $ % A 25 10/21/2011 MCD McDonald's $92.32 $ % -7.6% Consumer $ % B /16/2011 MRGE Merge Techology $7.05 $ % 0.0% Technology $ % C /16/2009 NUS Nu Skin Enterprises $39.29 $ % 1.4% Consumer $ % A 28 03/19/2010 NVEC N V E Corp. $53.11 $ % -0.7% Technology $ % B 29 09/09/2010 OKS Oneok Partners LP $43.30 $ % 5.3% Energy $ % A 30 12/04/2009 PCLN Priceline.com $ $ % -6.0% Consumer $ % A 31 04/29/2011 PEET Peet's Coffee $52.22 $ % -8.7% Consumer $ % A /11/2011 PETM Petsmart $48.15 $ % -3.8% Consumer $ % A /28/2011 PII Polaris $62.71 $ % -8.7% Consumer $ % A /04/2011 PRGO Perrigo Inc. $70.20 $ % -6.0% Drug $ % A 34 11/20/2009 QSII Quality Systems $44.86 $ % -6.0% Drug $ % B /21/2011 RGR Sturm Ruger $29.50 $ % 8.2% Leisure $ % A /23/2010 ROST Ross Stores $30.51 $ % -19.1% Consumer $ % A /10/2011 SBH Sally Beauty Holdings $16.85 $ % -4.2% Consumer $ % A 38 07/29/2011 SCCO Southern Copper Corp. $32.42 $ % -4.2% Basic Material $ % B /20/2011 SEB Seaboard Inc. $2, $2, % -4.2% Diversified $3, % B 40 02/27/2009 SLW Silver Wheaton $21.14 $ % 7.0% Basic Material $ % B 41 08/26/2009 TNH Terra Nitrogen $ $ % 3.1% Commodity na na B 42 01/02/2009 TSCO Tractor Supply $56.73 $ % -7.5% Consumer $ % A /29/2011 TYL Tyler Technologies $28.33 $ % -0.7% Technology $ % A 44 06/24/2011 UGP Ultrapar Participaco ADR $14.65 $ % 5.8% Basic Material $ % A

10 I have been featuring stocks in my newsletter for over five years now. The average featured stock of the week has beaten the S & P 500 by 23.1%. The list above is the current active list. The stocks that have been deleted from this list are listed later in the newsletter. Global Markets A look at the global markets really illustrates just how weak the markets are here in The United States is still the best place to be invested in at the current time, although I do have a few Brazilian holdings right now.

11 Commodities Once again, gold has been the best place to be here in 2011 although it has currently settled into the $1700 per ounce area. All of the conditions that have allowed gold to get this far, still exist in the world today. Oil has also been on the move lately, helped along by big delay in the trans-canada pipeline by the Obama administration. I would personally love to see us take advantage of the abundance of oil and natural gas that we have here on the North American continent and become less dependent on oil from the middle-east and Venezuela. Instead, it seems we continue to throw money that we are borrowing from the Chinese on money losing solar projects.

12 Bill Gunderson s Current Basic Recommended 401-k Allocation Long way till retirement Nearing Retirement Best Bond Fund Choices that you have: 30.0% 55.0% Best Large Cap Choices that you have: 0.0% 0.0% Best Mid Cap Choices that you have: 20.0% 15.0% Best Small Cap Choices that you have 20.0% 15.0% Best Nat. Resource (GOLD) Choices that you have: 10.0% 15.0% Best Technology Choices that you have: 10.0% 0.0% Best International Choices that you have: 10.0% 0.0% Cash 0.0% 0.0% TOTAL 100.0% 100.0% Short Ideas Start Nov. 18 OPEN Price Price Pct. Gain First Solar FSLR May 27, 2011 $ $ % Nice gain so far. Short everything solar! Sprint Nextel S October 7, 2011 $2.45 $ % One of the worst stocks in the entire market! Yingli Gr. Energy YGE October 21, 2011 $3.58 $ % Short everything under the sun! Sunpower SPWRA November 4, 2011 $8.76 $ % Short everything under the sun! Salesforce CRM November 11, 2011 $ $ % PE ratio is 102! CLOSED Frontline FRO June 10, 2011 $15.84 $ % 7/29-Took profit! Goldman Sachs GS September 9, 2011 $ $ % 10/21/2011-Cover Short UBS UBS September 30, 2011 $11.43 $ % 10/21/2011-Cover Short Daimler DDAIF September 9, 2011 $43.96 $ % 10/21/2011-Cover Short Toll Brothers TOL September 9, 2011 $15.65 $ % 10/21/2011-Cover Short Amer. Int. Gr. AIG August 5, 2011 $25.10 $ % 10/28/2011-Cover Short AVG. 6.6% Shorting stocks is merely the practice of borrowing and selling a stock today and selling at a later date. Borrowing and buying First Solar on May 27, 2011 at its then price of $ has netted a profit of 62.6% per year. The short position can be covered at any time. Obviously if the stock goes up, you will lose money with a short position. The best short candidates are companies with disintegrating earnings models, like the solar stocks, or grossly over-valued stocks like Salesforce, which got clobbered this past week. I am making no changes to my current positions this week. Shorting bad or expensive stocks can be very profitable! High risk though

13 These are the stocks that I have deleted from my Conservative Model Portfolio so far this year Conservative Growth & Income Portfolio Sells Add Date Sym. Name and add price Sell Price Pct. G/L Sell Date 2/11/2011 POT Potash ($62.77) $ % 5/13/2011 Commodities cooling off 1/28/2011 TGH Textainer ($30.64) $ % 5/13/2011 Time to upgrade 4/8/2011 BHP B H P Billiton ($101.32) $ % 5/13/2011 Commodities cooling off 1/7/2011 CRT Cross Timbers ($40.89) $ % 5/13/2011 Time to upgrade 1/7/2011 ORCL Oracle($33.47) $ % 5/13/2011 Time to upgrade 5/13/2011 ESRX Express Scripts ($59.92) $ % 7/1/2011 Time to upgrade 1/28/2011 CAT Caterpillar ($95.51) $ % 8/5/2011 Don t like chart 2/11/2011 CSX C S X Corp. ($24.41) $ % 8/5/2011 Don t like chart 2/11/2011 NVO Novo Nordisk ($118.77) $ % 8/5/2011 Don t like chart 6/3/2011 CNI Canadian Nat. Ry. ($76.37) $ % 8/5/2011 Don t like chart 1/28/2011 GLNG Golar Lng Ltd ($16.50) $ % Lock in Nice Profit 5/13/2011 DTV Directv ($49.73) $ % 8/12/2011 Don t like chart 8/26/2011 CF C F Industries ($180.35) $ % 10/14/2011 Don t like chart 8/5/2011 SEF Fin.Inverse ($40.98) $ % 10/21/2011 Don t like chart 8/5/2011 EUM Em.Mkt Inverse($32.82) $ % 10/28/2011 Bear Alert has passed for now 8/5/2011 EFZ Eur.Inverse ($51.39) $ % 10/28/2011 Bear Alert has passed for now 8/26/2011 BVN Buenaventura ($46.10) $ % 10/28/2011 Don t like chart 10/7/2011 YXI Inverse China ($53.53) $ % 10/28/2011 Bear Alert has passed for now 9/30/2011 VXX S&P 500 ST Vix(53.37) $ % 10/28/2011 Bear Alert has passed for now These are the stocks that I have deleted from my INCOME Model Portfolio so far this year Income Portfolio Sells Add Date Sym. Name and add price Sell Price Pct. G/L Sell Date 8/5/2011 SEF Fin. INVERSE ($40.98) $ % 10/21/2011 Bear Alert has passed for now 8/5/2011 EFZ Europe INVERSE ($51.03) $ % 10/28/2011 Bear Alert has passed for now 8/5/2011 EUM Em. Mkt. INVERSE ($32.82) $ % 10/28/2011 Bear Alert has passed for now 9/30/2011 VXX S&P 500 ST Vix(53.37) $ % 10/28/2011 Bear Alert has passed for now 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 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 Lastly, our mortgage expert is Craig Brock. With record low rates right now, Craig is waiting to help you at (619) Craig s website is If you would like to set up an appointment with me, give us a call at (855)611-BEST.

14 2011 Aggressive Growth Model Portfolio Sells Add Date Sym. Income**(add price) Sell Price Pct. G/L Removal Date 12/31/2008 JRS Nuveen REIT Fund ($7.88) $ % 1/7/2011 Time to upgrade 11/20/2009 KMP Kinder Morgan ($54.22) $ % 1/7/2011 Time to upgrade 8/13/2010 ARCC Ares Capital Group ($14.30) $ % 1/7/2011 Time to upgrade 7/23/2010 NEM Newmont Mining ($59.05) $ % 1/7/2011 Disappointing 11/20/2009 NSRGY Nestles ($47.16) $ % 1/7/2011 Disappointing 4/23/2010 UWM 2X Russ ($39.46) $ % 1/7/2011 Time to upgrade 4/10/2009 YUM Yum! Brands ($30.28) $ % 1/14/2011 Locking in Proit 2/12/2010 WHX Whiting USA Trust ($15.48) $ % 1/28/2011 No good any more 8/13/2010 BPT BP Prudhoe Bay ($90.13) $ % 1/28/2011 Selling for Now 12/10/2010 CSTR Coinstar ($66.21) $ % 1/28/2011 Selling for Now 10/15/2010 EWZ MSCI Brazil Index ($80.11) $ % 2/4/2011 Dull right now. 7/1/2011 NVEC NVE Corp. ($58.33) $ % 3/11/2011 Disappointing 12/3/2010 FFIV F 5 Networks ($139.13) $ % 4/1/2011 Disappointing 9/4/2009 AGNC Amer. Capital Agency ($18.04) $ % 4/8/2011 Has been good to me! 7/23/2010 MNRO Monroe Muffler ($25.72) $ % 4/15/2011 Upgrading 10/8/2010 ROST Ross Stores ($56.14) $ % 4/15/2011 Upgrading 2/4/2011 CXO Concho Resources ($95.62) $ % 5/13/2011 Commodities cooling off 5/7/2010 SWKS Skyworks ($15.01) $ % 5/13/2011 Has had a good run 1/14/2011 POT Potash ($57.32) $ % 5/13/2011 Commodities cooling off 1/7/2011 CLR Continental Res. ($57.19) $ % 5/13/2011 Commodities cooling off 10/15/2010 CEF Central Fund Canada($17.86) $ % 5/13/2011 Commodities cooling off 2/4/2011 GEOI Georesorces ($28.64) $ % 5/13/2011 Commodities cooling off 2/4/2011 IDCC Interdigital ($50.81) $ % 5/20/2011 Upgrading 4/1/2010 ALXN Alexion Pharm. ($54.56) $ % 5/27/2011 Commodities cooling off 4/15/2011 DECK Decker's Outdoor ($94.76) $ % 6/10/2011 Time to upgrade 6/10/2011 SEF Inverse Financials ($38.02) $ % 7/1/2011 Can't swim against the tide 5/20/2011 IMAX Imax ($36.44) $ % 7/8/2011 Time to upgrade 4/8/2011 HGR Hanger Orthopedics ($27.97) $ % 7/8/2011 Time to upgrade 3/11/2011 LUFK Lufkin Ind. ($79.70) $ % 8/5/2011 Don t like chart 3/11/2011 AGP Amerigroup ($58.98) $ % 8/5/2011 EPS came up short 5/13/2011 ILMN Illumina ($76.26) $ % 8/5/2011 Don t like chart 8/13/2010 ARLP Alliance Res Ptnrs Lp ($47.79) $ % 8/12/2011 I don't like chart 5/20/2011 IPGP I P G Photonics ($70.80) $ % 8/12/2011 Time to upgrade 5/13/2011 CCK Crown Holdings ($40.95) $ % 8/12/2011 Time to upgrade /1/2011 MWIV MWI Veterinary ($64.92) $ % 8/19/2011 Chart breaking down 4/22/2011 NFLX Netflix ($252.22) $ % 8/26/2011 I don t like the way it is trading 5/20/2011 SODA Sodastream Intl. ($56.29) $ % 8/26/2011 Time to upgrade 4/1/2011 RES R P C Inc. ($23.92) $ % 9/23/2011 Time to upgrade 4/15/2011 BIDU Baidu Inc. ($145.65) $ % 9/23/2011 Time to upgrade 3/26/2010 BEXP Brigham Exploration ($15.13) $ % 10/7/2011 Oil stocks continue to break down 6/24/2011 CRR Carbo Ceramics ($150.84) $ % 10/7/2011 Oil stocks continue to break down 4/23/2010 EZPW Ezcorp Inc. ($23.31) $ % 10/7/2011 Has broken support 6/24/2011 TRCR Transcend Svcs ($28.00) $ % 10/7/2011 Has broken support 8/5/2011 SEF Fin. INVERSE ($40.98) $ % 10/14/2011 Has broken support 8/19/2011 MYY Mid-Cap400 INVERSE ($36.16) $ % 10/14/2011 Has broken support 4/1/2011 GMCR Gr. Mtn. Coffee ($64.77) $ % 10/21/2011 Has broken support 8/5/2011 EFZ Europe INVERSE ($51.39) $ % 10/28/2011 Bear Alert has passed for now 9/30/2011 VXX S&P 500 Short Term Vix $ % 10/28/2011 Bear Alert has passed for now 8/5/2011 EUM Em.Mkt.INVERSE($32.82) $ % 10/28/2011 Bear Alert has passed for now

15 Stocks deleted from week featured stock list so far in Featured Ending S&P Featured Symbol Name Price Price Pct. Chg. 500 Date Sold 03/05/2010 WYNN Wynn Resorts Ltd. $ $ % -15.1% SOLD 9/30/11 09/02/2011 UNP Union Pacific $29.53 $ % -5.8% SOLD 9/30/11 01/21/2011 TRCR Transcend Services $25.71 $ % -11.0% SOLD 9/30/11 09/24/2010 SQM Sociedad Quimica Y Minra $65.02 $ % -15.8% SOLD 9/30/11 05/14/2010 RES R P C Inc. $17.28 $ % -4.4% SOLD 9/30/11 02/18/2011 POT Potash $27.99 $ % 53.9% SOLD 9/30/11 07/22/2011 NSC Norfolk Southern $47.20 $ % -22.2% SOLD 9/30/11 05/07/2010 NOG Northern Oil & Gas $14.18 $ % -16.8% SOLD 9/30/11 6/25/04 LZ Lubrizol $ $ % 2.0% SOLD 9/30/11 10/15/2010 LUFK Lufkin Industries $77.05 $ % -15.8% SOLD 9/30/11 10/08/2010 GEOI Geo Resources $20.03 $ % -18.5% SOLD 9/30/11 05/28/2010 EZPW Ezcorp. $23.39 $ % -7.1% SOLD 9/30/11 11/12/2010 DTV Directv $33.42 $ % -1.6% SOLD 9/30/11 06/06/2008 CXO Concho Resources $50.04 $ % -0.6% SOLD 9/30/11 08/12/2011 CSX C S X Corp. $5.28 $ % 0.1% SOLD 9/30/11 06/03/2010 CF C F Industries $ $ % -3.9% SOLD 9/30/11 1/27/2006 SWKS Skyworks $5.33 $ % -8.5% SOLD 9/2/11 07/02/2009 PRAA Portfolio Recovery Assco. $39.80 $ % 31.0% SOLD 9/2/11 09/18/2009 ENSG Ensign Group $15.24 $ % 9.9% SOLD 9/2/11 02/25/2011 AGP Amerigroup $58.70 $ % -9.1% SOLD 8/5/11 08/13/2010 ARCC Ares Capital Corp. $13.11 $ % 11.1% SOLD 8/5/11 03/04/2011 CLF Cliff's Natural $99.12 $ % -9.2% SOLD 8/5/11 06/17/2009 ECPG Encore Capital $29.61 $ % -5.7% SOLD 8/5/11 2/24/2006 ETN Eaton Corp $30.95 $ % -7.0% SOLD 8/5/11 12/17/2010 HGR Hanger Orthopedic $21.50 $ % -3.6% SOLD 8/5/11 04/16/2010 WLT Walter Energy $93.43 $ % 0.6% SOLD 8/5/11 08/31/2007 ORCL Oracle Corp. $19.79 $ % -23.8% SOLD 8/12/11 12/24/2010 MWIV M W I Veterinary Supply $64.54 $ % -10.6% SOLD 8/12/11 08/20/2010 IT Gartner Inc. $28.12 $ % 4.8% SOLD 8/12/11 05/13/2011 ILMN Illumina $76.26 $ % -16.0% SOLD 8/12/11 03/11/2011 WLL Whiting Petroleum $63.40 $ % -15.0% SOLD 8/12/11 03/21/2008 GDI Gardner Denver $36.95 $ % -15.3% SOLD 8/12/11 12/11/2009 ESRX Express Scripts $43.54 $ % 1.9% SOLD 8/12/11 02/11/2011 CY Cypress Semiconductor $23.56 $ % -15.0% SOLD 8/12/11 01/07/2011 CLR Continental Resources $58.15 $ % -11.6% SOLD 8/12/11 02/11/2005 HK Petrohawk NRG (from KCS) $6.34 $ % -6.9% SOLD 8/06/10 02/25/2005 WDC Western Digital $11.40 $ % -7.4% SOLD 8/06/10 05/06/2011 IMAX Imax Corp. $34.99 $ % 0.3% SOLD 7/8/11 05/21/2010 F Ford Motor Co. $11.11 $ % 18.8% SOLD 7/29/11 12/10/2010 TRMB Trimble Navigation $41.26 $ % 4.2% SOLD 7/29/11 12/31/2010 NSU Nevsun Resources $7.53 $ % % SOLD 5/13/11 07/02/2010 MNRO Monroe Muffler, Brake $26.53 $ % 30.8% SOLD 5/13/11 10/22/2010 KWR Quaker Chemical $37.10 $ % 13.1% SOLD 5/13/11 01/28/2011 ANR Alpha Natural Resources $57.88 $ % 4.8% SOLD 5/13/11 10/29/2010 AEM Agnico Eagle Mines $75.44 $ % 13.1% SOLD 5/13/11 05/15/2009 INFY Infosys $32.02 $ % 50.8% SOLD 2/11/11 11/13/2008 O Realty Income $18.21 $ % 52.2% SOLD 2/11/11 06/03/2011 IDCC Interdigital $50.81 $ % -0.6% SOLD 10/28/11 10/7/04 JOSB Joseph A Bank Clothiers $38.15 $ % 20.7% SOLD 10/28/11 08/18/2006 ASEI American Science & Eng. $44.86 $ % -2.4% SOLD 1/7/11 I covered a lot of interesting topics on my daily radio this past week. To listen to the archives, you can visit

16 I also noted several stocks that looked very good this past week on my website To download my Best Stocks Now App, visit the Apple Store We are working really hard to try to get the Android version of the app ready by Thanksgiving and the PC version ready by the end of the year. I wrote several articles for on individual stocks this past week. Visit to read them. To order my book BEST STOCKS NOW-Click Here: To request an appointment with me, click here: 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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