Is the U.S. Consumer Confident?

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1 August 15, 2014 Password for the Premium Newsletter Archive is: STOCKS Is the U.S. Consumer Confident? "American families feel better about the economy than they have in a long time," said Kurt McNeil, General Motors' U.S. sales chief, on Friday. The improving economy is behind the strength in the auto market, economists and automakers said. 1

2 The above statement appeared in the Los Angeles Times on August 1, Meanwhile, the latest reading from the Conference board on Consumer Confidence came in as follows: The Conference Board Consumer Confidence Index Improves Again July 2014 Third Straight Monthly Gain; Index at Highest Level since October 2007 Headlines like these make me want to pop a cork, beef up my wardrobe, and load up on the consumer discretionary (retail) stocks. But, keep your credit card in your wallet for now, because here is what a few major retailers have said recently. We are approaching the second-half of 2014 with confident optimism in our business strategies, merchandise assortments and marketing plans, tempered with the reality that many customers still are not feeling comfortable about spending more in an uncertain economic environment, Terry J. Lundgren, Macy s chairman and CEO, said in a statement. (August 13, 2014) And what better bell-weather could there be on the retail sector than Wal-Mart (WMT)? Here is the headline from their earnings report on Thursday, August 14: Wal-Mark stores cut its earnings guidance for the year after it posted its seventh straight quarterly decline in U.S. store traffic and said growth in online sales would slow. It cited sluggish consumer spending. Mickey D s (MCD) reported their earnings just three weeks ago. I would consider McDonald s to be yet another fairly good proxy, bell-weather stock for the consumer discretionary sector. McDonald's reported a lower-than-expected quarterly profit as comparable sales in its struggling U.S. business fell for the third straight quarter and sales in Europe declined for the first time in four quarters. It is an improving economy says the Los Angeles Times. Consumer Confidence is at its highest level since 2007 says the U.S. government. Yet, Macy s, Wal-Mart, and McDonalds are telling us a different story altogether. Who am I supposed to believe? I need more facts-more evidence, I need a bigger sample. Let s dig a little deeper. Here is a headline from Reuters today: Euro zone economy grinds to halt even before Russia sanctions bite Here is some more color on the story. 2

3 Euro zone's economy unexpectedly stalled in the second quarter of the year dragged down by shrinking growth in Germany and stagnant France, ringing alarm bells about the health of the bloc's economy bracing for impact of sanctions against Russia. Economy of the 18 countries sharing showed no growth in the three months to June when compared with the first quarter when it was up 0.2 percent, data from the EU's statistics office Eurostat showed on Thursday. Wait a minute. This does not sound very good, I am beginning to lose my confidence. How can a non-growth European economy not impact us here in America? They are our biggest trading partner. Let s next check on Japan, the world s third largest economy: Japan's GDP Falls By 6.8% In The Second Quarter On Sales Tax Rise A sales tax hike last quarter drove Japan s economy into its biggest contraction since the March 2011 earthquake and tsunami, Cabinet Office data showed on Wednesday, keeping policymakers under pressure to expand fiscal and monetary stimulus should recovery falter again. The April 1 sales tax hike took a heavy toll on household spending, shrinking the world s thirdlargest economy by an annualized 6.8 percent from April through June, and wiping out growth of 6.1 percent seen in January-March as consumers went on a shopping spree to avoid the higher tax. Yikes! Who is the genius that suggested a massive sales tax increase? Japan s economy has been struggling for years. It seems to me that the money would have been better off in the hands of the consumer and not in the government s hands. 3

4 I am getting less and less confident as I go. Many times pictures tell me much more than words. Let s look at a few. Maybe I can get my confidence back. We begin with Wal-mart. I see a stock that has gone nowhere in one year. Let s next take a look at McDonalds. The stock has come down real hard in the last two months. 4

5 I see a lot of charges on my credit card to Bed, Bath, and Beyond (BBBY). It does not looks like it is helping the stock, however. If folks are not shopping at Wal-Mart, then they must be shopping at Target (TGT): So much for that theory. How about The Container Store (TCS)? Lots of neat things there 5

6 The stock is not so neat, however. I see a lot of teenagers wearing American Eagle (AEO) gear: It does not look like their parents are buying the stock, however. OK then, they must be saving money by shopping at T J Maxx (TJX) 6

7 I guess not. How about Ross Stores (ROST)? Nope! 7

8 Boy, all of this consumer confidence is invisible almost everywhere! All-time highs! But then how come the consumer stocks are hitting lows? Maybe all that discretionary spending is showing up at the restaurants. We Americans love to eat out Let s check EAT (Brinker Intl.). All of those sizzling fajitas commercials don t seem to be paying off very well. Maybe we prefer Olive Garden or Red Lobster over Chili s. Darden s stock just got whacked too 8

9 Taco Bell, KFC, Pizza Hut? Nope! My office is right across the street from Horton Plaza in downtown San Diego. It is a Westfield Mall. It has most of your typical tenants: Nordstroms, Macy s, Brookstone, Wetzel s Pretzel, etc. I have never seen this mall as empty as it has been over the last several months. This is high-time tourist season in San Diego. There are nice hotels all around the mall, but the visitors don t seem to be interested in shopping. Maybe they are visiting Sea World (SEAS), one of San Diego s big tourist attractions: 9

10 I reported on local channel six news that Sea World s stock was down 30% on Wednesday. Theme Park traffic is way down. Blackfish has something to do with it, but not that much! To be fair, Disney (DIS) is hitting new highs, but they rely on a whole lot more than just their theme parks. Things like Frozen and ESPN have really helped them. I wrote an article for TheStreet.com this past week on why I currently like the stock. But very few consumer discretionary stocks are doing well this year. Most of them topped out more than a year ago. Retail stocks are a leading indicator of the economic cycle. I cleaned up on stocks like Tractor Supply (TSCO), T J Maxx (TJX), and Dollar Tree (DLTR), a few years ago when the economic cycle was really accelerating. But, where are we now in the economic cycle? Here is where we started five years ago.? 10

11 The fact of the matter is this: We are not at the beginning of a new economic cycle. This was obviously one of the best times to invest. Consider that the market has almost tripled since the trough in You have heard the old adage that is not good to fight the FED. Nothing could be truer during this 65 month old Bull. The FED has been pumping unprecedented stimulus into our economy, the party is now over, however. Do you know what your living room looks like the next day after New Year s Eve? Confetti, dried up deviled eggs, and sparkling cider corks everywhere. I am not saying that this current Bull is over, but I am pointing out the fact that a very important leading indicator like the Consumer Discretionary sector has already rolled. This is not a good sign. Fortunately, other sectors have been picking up the slack, however. More and that in a moment. 11

12 Here is how finished a week of mixed earnings and economic reports: Asset Fri. 8/8/14 Thurs 8/15/14 Week Pct. Class 9AM Close Change Change S&P % Avg.Forward PE ratio 3800 stocks % DJIA 16, , % NASD % S&P600 (Small) % S&P400 (Mid-Cap) % Tot.Wld Stock Index (VT) % Emg. Mkts (VWO) % Em Mkt Sm. Cap (DGS) % Europe (EFA) % India (INP) % China (FXI) % Canada (EWC) % Russia (RSX) % Brazil (EWZ) % Latin America (ILF) % 20 Yr.+ U.S Treas. (TLT) % 7-10 Yr. U.S Treas. (IEF) % U.S. 10yr. Tr. Yield 2.39% 2.35% -0.04% 1.67% Greece 10yr. Bond 6.51% 6.31% -0.20% 3.07% Brazil 10yr. Bond 12.10% 12.07% -0.03% 0.25% Oil % Gold % It was a very good week in the market. Investors feel like Geopolitical events have calmed down for now. I am not so sure about that! Putin s convoy of humanitarian aid was reportedly shelled by Ukraine troops on Friday morning. The market reacted immediately with a 100 point sell-off and then rebounded somewhat by the end of the day. I do not trust Putin. Investors also seem to think that ISIL is now under control after a little bit of targeted bombing by the U.S. Meanwhile, ISIL s numbers continue to increase and they are promising to bring their brand of car bombings to an American city near you. Let s hope that they are all talk. 12

13 The peace is holding in Gaza, but it is ever so fragile. India had a very good week, Brazil s third candidate for their President was killed in a plane crash, and oil prices continue to drop, yet another sign of a SLOWING GLOBAL economy! We have had some issues with the push notifications that are intended only for premium app subscribers. It seems that they are going out to all subscribers of the app. This issue should be fixed soon and the live push notifications will be sent out to premium app subscribers only once again. We will then create a premium newsletter subscription that will be sent out live trades to premium subscribers via . The cost for live updates will be $89 per month. Here is where we stand year to date: Asset 12/31/2013 Thurs 8/15/ Class Close Close Final Final YTD S&P % 29.18% 5.77% Forward PE ratio % DJIA % 26.50% 0.52% NASD % 37.80% 6.90% S&P600 (Small) % 39.65% -1.27% S&P400 (Mid-Cap) % 31.57% 3.94% Tot World Stock Index (VT) % 20.19% 3.62% Emg. Mkts (VWO) % -7.61% 8.39% Em Mkt Sm. Cap (DGS) % -6.78% 6.03% India (INP) % -3.52% 16.13% Europe (EFA) % 18.01% -1.42% China (FXI) % -5.14% 7.04% Canada (EWC) % 5.31% 10.15% Russia (RSX) % 0.89% % Brazil % -3.85% 10.58% Latin America (ILF) % % 8.05% 20 Yr.+ U.S Treas. (TLT) % % 15.56% 7-10 Yr. U.S Treas. (IEF) % -7.24% 5.71% U.S. 10yr. Tr. 2.98% 2.35% 0.63% % 21.14% Oil % -2.07% 3.25% Gold % % 5.50% The S&P 500 is now up 5.77% year to date, while the Dow is up a scant 0.52%. U.S. small-caps are down 1.27% ytd. Emerging markets continue to outperform our market. U.S. interest rates remain low. The bond market had a big rally on Friday after the conflicting news reports out of the Ukraine. 13

14 Emerging Markets. U.S. Bonds. 14

15 Gold remains neutral The Dow is bouncing hard of its 200 day moving average. It is on a short term sell signal however with the 20 day/50 day moving average crossover. 15

16 The S&P 500 has rallied back to its 50 day moving average. The 50 day could now become resistance. It too is now on a short term sell signal. It has downside risk to 1,870. The Nasdaq continues to hold up well. In fact it looks like it wants to break out to the upside once again 16

17 China is holding up well and I added some more exposure to this market this past week. My U.S. Small-cap Growth indicator is still neutral and hanging tough for now. 17

18 We will continue to watch this index very closely going forward. Again, here are the support and resistance levels of this key index. $108-$124. We are currently at $ This is still neither bullish nor bearish. It is a neutral reading. Let s next have a look at where the indexes currently stand. Here are this week s all-important ranking of the 77 indexes that I track on a daily basis: BEST two weeks ago BEST last week BEST this week We now have four B+ Indexes. The top spots are still dominated by Asia. I have no interest in the Egypt ETF. I continue to increase my exposure to the Asian markets. 18

19 Here are my second tier (9-16) of indexes. Two weeks ago Last week This week. Here are this week s bottom ranked indexes. Worst Indexes 2 weeks ago Worst Indexes last week Worst Indexes this week No surprises here. Europe and Russia continue to be the worst places to be invested in Argentina is also having its difficulties right now. 19

20 Now for this week s ranking of the 34 asset classes. This gives me a good indication of where the money is flowing. It will also help to warn us of a lurking bear. Top 8 (3 wks. ago) Top 8 (2 wks. ago) Top 8 (This week) The Nasdaq 100 index and the MLP index are still the top ranked asset classes. Emerging Markets are also right there in the leadership group. There is still not any one dominate asset class like there was last year, however. 20

21 Here is the second tier of leading asset classes: (9-16)Three weeks ago (9-16) Last week (9-16) This week Nothing exciting here. Here are this week s worst ranked asset classes. This also very important to watch going forward. As long as the Inverse S&P 500 remains at the bottom of the pile, the bear is at bay. Bottom 8 two weeks ago Bottom 8 last week Bottom 8 this week The INVERSE S&P 500 is back where it belong, at the bottom of the heap! It has been at or near the bottom throughout this entire 65 week bull market. 21

22 This continues to be a horrible chart to bet on. Here is my current ranking of the sixty sectors that I track on a daily basis. The sector rankings will also be critical to watch going forward. Top 8 three weeks ago Top 8 two weeks ago Top 8 this week The Biotech sector had huge week. It back near the top. U.S. internet and Chinese Internet are also very strong right now. Healthcare stocks are also still doing well. Why is the biotech sector starting to lead again? BECAUSE FOR THE MOST PART, IT IS NON-CORRELATED TO THE ECONOMY. 22

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24 Here is what sectors 9-16 look like right now. #9-16 (3 weeks ago) #9-16 (2 weeks ago) #9-16 (this week) The Energy Sector is still missing from the leaders, but I am still bullish. If any one of these hotspots in the world escalate, oil will be right back over $100 per barrel. Here are this week s bottom ranked sectors Bottom 8 Two Weeks Ago Bottom 8 Last Week Bottom 8 This Week 24

25 THIS WEEK S BOTTOM LINE The Consumer Sector really has me worried about the U.S. economy. The Russian/Ukraine situation has me worried about the Global Economy. It is going to have a major impact on Europe, our largest trading partner. Now the third biggest economy in the world (Japan) is getting clobbered. And I do not trust Putin. Yet, the 65 month old bull market is still intact. I have been a bull all throughout this more than five year old uptrend. I continue to be cautious on the U.S. markets however. I have a yellow flag flying on them, but I continue to have a green flag flying on the emerging markets. Please follow me on 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: 25

26 Bill Gunderson s Conservative Growth Model Portfolio This model is made up of mostly large and mid-cap companies that I consider suitable for investors who have a conservative growth risk profile. Time horizon of at least 3-5 years would be appropriate. Investors need to be able to ride through swings of 10-18%, however. This portfolio was up 23.8% in This is net of an annual mgt. fee of 2% and all $7 trades. This portfolio is up 2.30% YTD. I sold SLB and made no new buys. Cash level is now 12.3%. Conservative Growth Model 2.30% YTD After Fees S & P % 2014 YTD 8/15/2014 (as of 7:30am) 3.94% YTD Before Fees Dow 1.15% 2014 YTD 23.85% *2013 After Fees 12.52% *2012 After Fees *(Net of all $7 Trading Costs and a 2% annual mgt fee-audit in Process) Actual portfolios may vary depending on when account is opened and actual mix of stocks) Add Add Adjusted Beginning Current Current Date Symbol Name Sector Price Price Shares Value Price Value G/L Alloc. 1 4-Jun-14 AAPL Apple Computer Technology $92.06 $ $5,800 $97.99 $6, % 3.64% 2 14-May-14 ACT Actavis plc Drug $ $ $5,606 $ $5, % 3.45% 3 6-Aug-14 AMT American Tower Reit Telecom $95.75 $ $5,458 $98.46 $5, % 3.31% 4 27-Feb-14 AVGO Avago Technologies Technology $61.35 $ $5,767 $74.41 $6, % 4.12% 5 14-Apr-14 BAM Brookfield Asset Mgt. Infrastructure $41.99 $ $5,459 $47.57 $6, % 3.64% 6 4-Jun-14 BIIB Biogen Idec Inc. Drug $ $ $5,740 $ $6, % 3.60% 7 8-Apr-14 CAT Caterpillar Industrial $ $ $5,539 $ $5, % 3.38% 8 1-Jul-14 CELG Celgene Drug $88.13 $ $5,728 $90.08 $5, % 3.45% 9 25-Apr-14 CP Canadian Pacific Railway Energy $ $ $5,532 $ $6, % 4.11% Apr-14 CXO Concho Resources Energy $ $ $5,483 $ $5, % 3.21% Apr-14 FTI F M C Technologies Energy $54.48 $ $5,448 $60.17 $6, % 3.55% 12 2-Jul-14 GILD Gilead Sciences Inc. Drug $87.15 $ $5,926 $98.17 $6, % 3.93% Jul-14 GOLD Randgold Resources Precious Metals $89.54 $ $5,820 $84.00 $5, % 3.22% Mar-14 HAL Halliburton Co. Energy $59.29 $ $6,225 $68.20 $7, % 4.22% May-14 HDB H D F C Bank Bank-India $46.99 $ $5,545 $49.29 $5, % 3.43% May-14 MINDX Matthews India Inv India $21.19 $ $8,476 $23.25 $9, % 5.48% Jul-14 MPACX Matthews Asia Growth Asia $22.25 $ $8,900 $22.34 $8, % 5.27% Jun-14 SLXP Salix Pharm. Drug $ $ $5,607 $ $6, % 3.70% May-14 TTM Tata Motors Auto $40.65 $ $5,732 $43.62 $6, % 3.62% 20 3-Jun-14 UHS Universal Health Svcs Healthcare $92.45 $ $5,547 $ $6, % 3.88% May-14 URI United Rental Industrial $95.52 $ $5,731 $ $6, % 3.96% May-14 WLL Whiting Petroleum Energy $88.34 $ $5,742 $84.59 $5, % 3.24% Mar-14 XEC Cimarex Energy Energy $ $ $6,372 $ $7, % 4.23% Watchlist Total Holdings $148,720 ` ADRE Total Cash $20, % ABC Current Total Value $169,674 ABT Begin 2014 $165,863 BCR YTD Tot. Gain/Loss $3, % CAM YTD Pct. Gain/Loss 2.30% HP 2014 Mgt. Fees $2,496 JAZZ 2014 Trading Costs ($7 each) $231 LNG Total Costs $2,727 MCK Gain/Loss before fees $6,538 PBR YTD Pct. Gain/Loss 3.94% REGN Total Costs $1,061 BIDU Adj. Gain/Loss -$4,297 PCLN Adj. Pct. Gain/Loss -2.68% SBAC Begin 2013 $133,923 26

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29 2014 Conservative Growth Model Portfolio Sells Bought Bought Bought Sector Buy Price Shares Tot. Buy Sell Price Total Sell Pct. G/L Sell Date 1 16-Aug-13 AAPL Apple Computer Technology $ $ $5,000 $ $5, % SOLD 1/10/ Dec-13 LKQ L K Q Inc. Auto $33.83 $ $5,514 $29.31 $4, % SOLD 1/15/ Nov-13 NUE Nucor Basic Mat $54.52 $ $5,452 $51.57 $5, % SOLD 1/13/ Jul-13 NFLX Netfllix Leisure $ $ $5,085 $ $6, % SOLD 1/21/ Apr-13 TJX T J Maxx Co. Consumer $47.14 $ $4,573 $60.33 $5, % SOLD 1/21/ Oct-13 TRIP TripAdvisor Leisure $83.85 $ $5,450 $83.90 $5, % SOLD 1/21/ Aug-13 FB Facebook Internet $37.08 $ $5,080 $53.05 $7, % SOLD 1/27/ Dec-12 MA Mastercard Financial $ $ $4,341 $ $6, % SOLD 1/27/ Apr-13 TSCO Tractor Supply Consumer $54.03 $ $4,647 $68.93 $5, % SOLD 1/29/ Dec-13 YHOO Yahoo! Inc. Technology $38.86 $ $5,557 $37.24 $5, % SOLD 1/27/ Jun-12 V Visa Finance $ $ $4,678 $ $8, % SOLD 1/29/ Jul-13 CELG Celgene Drug $ $ $5,154 $ $5, % SOLD 2/3/ Nov-13 MHK Mohawk Industries Building $ $ $5,012 $ $4, % SOLD 2/3/ Mar-13 ODFL Old Dominion Freight Transport. $38.18 $ $4,009 $52.66 $5, % SOLD 2/3/ Oct-13 PCLN Priceline.com Leisure $1, $1, $5,328 $1, $5, % SOLD 2/3/ Nov-13 PNR Pentair Ltd Industrial $69.63 $ $4,874 $71.90 $5, % SOLD 2/3/ Feb-14 EUM Emerging Mkt. Inverse 1X Inverse $28.81 $ $6,655 $27.50 $6, % SOLD 2/3/ Jun-13 ILMN Illumina Drug $75.73 $ $4,847 $ $10, % SOLD 3/13/ Jul-13 GILD Gilead Sciences Drug $60.74 $ $5,102 $75.55 $6, % SOLD 3/14/ Feb-14 CRM Salesforce.com Technology $65.53 $ $5,963 $55.96 $5, % SOLD 3/24/ Nov-13 INCY Incyte Drug $46.96 $ $5,400 $53.30 $6, % SOLD 3/24/ Feb-14 TRIP TripAdvisor Leisure $90.86 $ $5,815 $89.64 $5, % SOLD 3/24/ Feb-14 WDAY Workday Technology $96.84 $ $5,907 $93.78 $5, % SOLD 3/24/ Mar-13 ACT Actavis Drug $91.59 $ $2,290 $ $5, % SELL 1/2 4/2/ Mar-13 ACT Actavis Drug $91.59 $ $2,290 $ $5, % SELL 1/2 4/3/ Feb-14 ADS Alliance Data Systems Financial $ $ $5,648 $ $5, % SOLD 4/3/ Jan-14 BIIB Biogen Drug $ $ $5,584 $ $5, % SOLD 4/3/ Oct-13 PRGO Perrigo Co. Drug $ $ $5,697 $ $5, % SOLD 4/3/ Feb-14 REGN Regeneron Pharm. Drug $ $ $5,495 $ $5, % SOLD 4/3/ Feb-14 SCTY Solar City Energy $82.00 $ $5,740 $63.17 $4, % SOLD 4/2/ Jan-14 SLXP Salix Pharm. Drug $93.15 $ $5,775 $ $6, % SOLD 4/3/ Feb-14 TSLA Tesla Auto $ $ $5,844 $ $5, % SOLD 4/4/ Mar-13 VRX Valeant Phar. Drug $74.04 $ $3,924 $ $7, % SOLD 4/2/ Mar-14 FUN Cedar Fair Leisure $52.97 $ $5,827 $49.60 $5, % SOLD 4/10/ Feb-14 GMCR Green Mountain Coffee Consumer $ $ $5,714 $99.66 $4, % SOLD 4/10/ Oct-13 NXPI Nxp Semiconductors Technology $41.10 $ $5,466 $55.24 $7, % SOLD 4/7/ Feb-14 URI United Rentals Building $86.95 $ $5,739 $86.02 $5, % SOLD 4/7/ Apr-14 CLB Core Labs Energy $ $ $5,396 $ $4, % SOLD 4/24/ Apr-14 GT Goodyear Tire Auto $26.98 $ $5,396 $24.49 $4, % SOLD 5/7/ Apr-14 M Macy's Inc. Consumer $60.60 $ $5,333 $55.72 $4, % SOLD 5/6/ Apr-14 WFT Weatherford Intl Energy $18.38 $ $5,514 $20.12 $6, % SOLD 5/15/ Apr-14 BHP B H P Billiton Adr. Basic Mat. $71.80 $ $5,457 $68.75 $5, % SOLD 5/20/ Apr-14 COG Cabot Oil & Gas Energy $38.42 $ $5,494 $36.23 $5, % SOLD 5/20/ Apr-14 BBD Banco Bradesco Bank-Brazil $15.04 $ $5,414 $14.88 $5, % SOLD 5/23/ Apr-14 BRFS B R F SA Adr. Food-Brazil $22.69 $ $5,559 $22.48 $5, % SOLD 5/23/ Apr-14 CBD Companhia Brasiliera Consumer $48.42 $ $5,423 $45.00 $5, % SOLD 2-Jun Apr-14 EWZ Brazil Index Emg. Mkt. Brazil $47.48 $ $5,223 $45.95 $5, % SOLD 2-Jun May-14 ILF Latin Amer. 40 ETF Emg. Market $38.87 $ $5,520 $37.24 $5, % SOLD 4-Jun Mar-14 QCOM Qualcomm Technology $79.01 $ $6,321 $80.48 $6, % SOLD 6-Jun May-14 BSMX Grp Fin Santander Mx Ads Bank-Mexico $13.95 $ $5,580 $12.88 $5, % SOLD 12-Jun Apr-14 CLR Continental Resources Energy $ $ $5,285 $ $6, % SOLD 6/24/ Mar-14 NBR Nabors Ind. Energy $24.77 $ $6,193 $26.36 $6, % SOLD 6/25/ Apr-14 DRC Dresser Rand Group Energy $60.91 $ $5,482 $61.96 $5, % SOLD 7/8/ May-14 SAN Banco Santander S A Bank-Spain $10.00 $ $5,550 $9.90 $5, % SOLD 8/1/ Apr-14 CNQ Canadian Natural Res. Energy $39.54 $ $5,536 $41.76 $5, % SOLD 8/5/ Mar-14 TSM Taiwan Semiconductor Technology $19.60 $ $6,272 $20.18 $6, % SOLD 8/5/ Apr-14 SLB Schlumberger Energy $ $ $5,513 $ $5, % SOLD 8/14/

30 Bill Gunderson s Income & Growth Model Portfolio This portfolio is for investors seeking Income along with the possibility of Growth. This is a good mix for retirees who are seeking a CD alternative-albeit with greater risk. This is my MOST CONSERVATIVE portfolio. Still, investors need to be able to handle a 10-15% swing. This portfolio currently has an average yield of 3.3%. This portfolio was up 21.75% in It is now up 33.14% since its August 5, 2011 inception. This works out to an annualized rate of 9.34%. Not bad for an Income account. This portfolio is now up 0.13% YTD. I sold HP and BTE this week. No new buys. Cash level in this portfolio is now 30.5%. This is the highest it has been in quite a while. ` Income/Growth Model as of 8/14/ % *YTD (After Fees) S&P % YTD As of 11:00am 1.34% *YTD (Before Fees) Dow 0.71% YTD 21.75% (2013-After Fees) Annualized 9.16% (36.4 Months) Inception Date August 5, % Since Inception *(Net of trading costs and 2% annual mgt fee)-internally audited. Add Adj.Buy Beg. Current Current Curr. Added Symbol Name Sector Price Price Shares Value Price Value G/L Alloc. Yield 1 4-Jun-14 AAPL Apple Computer Technology $92.06 $ $4,511 $97.46 $4, % 3.57% 2.0% 2 29-Apr-14 AMJ J P Morgan MLP Index Energy $48.29 $ $4,491 $52.67 $4, % 3.67% 4.5% 3 6-Aug-14 AMT American Tower REIT Telecom $95.75 $ $4,596 $97.29 $4, % 3.49% 1.5% 4 11-Apr-14 BAM Brookfield Asset Mgt. Finance-Canada $41.24 $ $4,330 $47.25 $4, % 3.71% 1.4% 5 6-May-14 BIP Brookfield Infrastructure Ptnrs Infrastructure $40.10 $ $4,531 $40.61 $4, % 3.43% 4.8% 6 4-Apr-14 CAT Caterpillar Inc. Industrial $ $ $4,598 $ $4, % 3.56% 2.3% 7 18-Jul-14 CIG Companhia Energetica Utility $8.54 $ $4,612 $8.43 $4, % 3.41% 9.0% 8 7-May-14 CNI Canadian Natl. Railway Transportation $58.56 $ $4,333 $67.94 $5, % 3.76% 1.5% 9 14-Feb-14 DIS Disney Corp. Leisure $79.04 $ $4,505 $88.62 $5, % 3.78% 1.1% 10 1-Aug-14 FXI China Large-Cap ETF China $40.75 $ $4,564 $41.00 $4, % 3.44% 1.9% Jul-14 GOLD Randgold Precious Metals $89.54 $ $4,567 $85.23 $4, % 3.25% 0.5% Jun-14 HDB H D F C Bank Ltd Adr Bank-India $48.53 $ $4,707 $49.26 $4, % 3.58% 1.2% Oct-11 MMP Magellan Mid. Ptrs. Energy $31.51 $ $4,033 $83.53 $10, % 8.00% 3.1% Apr-14 NOV National Oilwell Varco Energy $83.20 $ $4,493 $81.28 $4, % 3.28% 2.3% Jun-14 ORIG Ocean Rig Udw Inc. Energy $19.62 $ $4,709 $18.13 $4, % 3.26% 4.0% Jun-14 DNOW Now Inc. Energy $28.20 $ $367 $31.96 $ % 0.31% 0.0% Mar-14 UNP Union Pacific Tranportation $93.66 $ $4,870 $ $5, % 3.95% 1.9% Mar-14 WFC Wells Fargo Banks $49.89 $ $4,889 $50.31 $4, % 3.69% 2.9% Apr-14 WIN Windstream Holdings Telecom $8.99 $ $4,540 $11.39 $5, % 4.30% 10.7% WATCHLIST AVG. YIELD 3.0% WLP AT Current Tot. Holdings $92, % ABT Current Cash $40, % ABC Current Total Value $133, % $128,285.0 AVB End 2013 $133,441 CHL 2014 YTD Gain $177 CPL 2014 Pct Gain 0.13% CTL 2014 YTD Mgt. Fees $1,324 DLR 42 $ YTD Trading Costs $294 ADM Total Costs $1, % CIB G/L before fees $1,795 TRP G/L before fees 1.34% WPC End 2012 $109,607 VWO 2013 YTD Gain $24,011 HD 2013 YTD Pct % 2013 YTD Mgt. Fees $ YTD Trading Costs $ Adj. Gain $24, Adj. Pct % BEGIN 2012 $106, Gain/Loss (Before Fees) $5, Gain/Loss Pct. (Before Fees) 5.35% Fees (since Inception) $548 G/L since inception $33,069 Adj. Pct. (After Fees) 31.14% 30

31 Big losses can occur if extreme events were to hit the world suddenly. 31

32 2014 Income Model Portfolio Sells Adj.Buy Bought Bought Bought Sector Buy Price Price Shares Tot. Buy Sell Price Total Sell Pct. G/L Sell Date 1 8-Jul-13 DEST Destination Maternity Consumer $27.38 $ $4,244 $28.32 $4, % SOLD 1/13/ Apr-13 TAXI Medallion Financial Finance $14.34 $ $4,058 $13.73 $3, % SOLD 1/15/ Jun-13 JPM J P Morgan Bank $53.80 $ $4,089 $55.54 $4, % SOLD 1/24/ Jun-13 MDP Meredith Corp. Media $48.11 $ $3,897 $45.24 $3, % SOLD 1/21/ Oct-13 NM Navios Maritime Transportation $7.48 $ $4,226 $8.76 $4, % SOLD 1/24/ Dec-13 NUE Nucor Corp. Basic Materials $51.59 $ $4,230 $51.57 $4, % SOLD 1/13/ Aug-13 AAPL Apple Computer Technology $ $ $4,217 $ $4, % SOLD 1/31/ Jun-13 CLCT Collector's Universe Misc. $15.83 $ $4,322 $20.96 $5, % SOLD 1/29/ Jun-12 WHR Whirlpool Corp. Building $ $ $4,519 $ $4, % SOLD 1/27/ Mar-13 BTO John Hancock Finl Opp Fd Medical $20.28 $ $4,015 $21.72 $4, % SOLD 2/3/ Jul-13 KEY Keycorp Bank $11.81 $ $4,089 $12.31 $4, % SOLD 2/3/ May-12 WFC Wells Fargo Bank $41.20 $ $4,038 $44.41 $4, % SOLD 2/3/ Jun-13 KYN Kayne Anderson Mlp Invt. Energy $36.83 $ $3,867 $36.07 $3, % SOLD 3/14/ Nov-13 KKR K K R & Co. Finance $22.77 $ $4,089 $23.22 $4, % SOLD 3/14/ Mar-14 BALT Baltic Trading Tranportation $7.55 $ $4,492 $6.09 $3, % SOLD 4/3/ Dec-12 BME Blackrock Hlth. Science Tr. Medical $29.37 $ $3,583 $37.23 $4, % SOLD 4/3/ Sep-13 HQH H & Q Healthcare Fund Healthcare $23.86 $ $4,295 $28.12 $5, % SOLD 4/2/ Feb-14 CMCSA Comcast Inc. Media $54.00 $ $3,024 $48.70 $2, % SOLD 4/7/ Feb-13 BX Blackstone Group Income-Priv. Eq. $19.03 $ $3,996 $30.91 $6, % SOLD 4/7/ Nov-13 PKG Packaging Corp. of Amer. Consumer $61.66 $ $4,563 $66.33 $4, % SOLD 4/15/ Aug-13 TIS Orchids Paper Products Consumer $27.90 $ $4,185 $29.29 $4, % SOLD 4/11/ Mar-14 WDC Western Digital Technology $90.68 $ $4,806 $86.24 $4, % SOLD 4/28/ Mar-14 AB Alliance Bernstein Hldg. Finance $24.84 $ $4,595 $24.39 $4, % SOLD 5/7/ Apr-14 F Ford Auto $16.48 $ $4,450 $15.56 $4, % SOLD 5/6/ Apr-13 FUN Cedair Fair Leisure $40.40 $ $4,040 $51.14 $5, % SOLD 5/7/ Apr-14 TI Telecom Italia Telecom $12.77 $ $4,533 $11.45 $4, % SOLD 5/20/ Apr-14 VIV Telefonica Brazil Utility $21.00 $ $4,515 $20.47 $4, % SOLD 5/22/ Apr-14 CPLP Capital Product Partners Trans-Shipping $11.19 $ $4,510 $10.63 $4, % SOLD 6/4/ Mar-14 QCOM Qualcomm Inc. Technology $79.01 $ $4,504 $80.35 $4, % SOLD 6/6/ Feb-14 ALK Alaska Airlines Tranportation $80.99 $ $4,535 $93.46 $5, % SOLD 6/12/ May-14 BSMX Grupo Fin Santander Mx Ads Bank-Mexico $13.95 $ $4,394 $12.88 $4, % SOLD 6/12/ Apr-14 EWZ Brazil Index Emg. Mkt-Brazil $47.48 $ $4,273 $45.93 $4, % SOLD 6/2/ Feb-14 TK Teekay Shipping Tranportation $55.76 $ $4,461 $57.90 $4, % SOLD 7/23/ Apr-14 CB Chubb Corp. Insurance $91.83 $ $4,500 $88.62 $4, % SOLD 7/28/ Apr-14 CVE Cenovus Energy Energy $29.62 $ $4,473 $30.21 $4, % SOLD 7/28/ Jun-14 CNQ Canadian Natural Resources Energy $43.12 $ $4,528 $42.28 $4, % SOLD 8/6/ May-14 SAN Banco Santander SA Bank-Spain $10.00 $ $4,500 $9.60 $4, % SOLD 8/5/ Mar-14 TSM Taiwan Semi Technology $19.23 $ $4,615 $20.21 $4, % SOLD 8/1/ Apr-14 UTG Reaves Utility Inc. Fund Utility $28.29 $ $4,470 $27.22 $4, % SOLD 8/5/ Mar-14 VFC V F Corp. Consumer $62.37 $ $4,865 $61.05 $4, % SOLD 8/5/ Apr-14 BTE Baytex Energy Corp. Energy $41.99 $ $4,409 $41.19 $4, % SOLD 8/14/ Oct-13 HP Helmerich & Payne Energy $74.08 $ $4,223 $99.50 $5, % SOLD 8/14/

33 Bill Gunderson s ETF Model Portfolio This portfolio is for investors seeking growth. Investors should have at least a five year time horizon and be able to handle swings of 10-20%. BIG LOSSES COULD OCCUR IF EXTREME EVENTS WERE TO HIT THE WORLD SUDDENLY. This portfolio was up 27.07% in This portfolio is up 0.79% YTD. No changes this past week. Cash level is now at 15.4%. ETF Model Portfolio 0.79% 2014 YTD (After fees) S&P % YTD 8/15/14 (as of 8:00am) 1.76% 2014 (Before Fees) Dow 0.44% YTD 27.07% 2013 (after fees) Portfolio Gain/Loss Since Inception Date 1/1/ % Annualized Gain 17.3% Add Add Adjusted Beginning Current Current Date Symbol Name Sector Price Price Shares Value Price Value G/L Alloc Mar-14 ADRE Emerging Markets 50 Emg. Markets $36.18 $ $3,075 $41.90 $3, % 11.12% 2 6-Aug-14 AIA Asia 50 Etf Asia $49.58 $ $3,223 $50.88 $3, % 10.33% 3 13-Jun-14 EWC Canada MSCI Index Canada $31.46 $ $3,303 $31.99 $3, % 10.49% 4 3-Jun-14 FXI China Large-Cap ETF China $37.47 $ $3,110 $41.18 $3, % 10.68% 5 20-Jun-14 IBB Biotech Index (Nasdaq) Drug $ $ $3,054 $ $3, % 9.83% 6 3-Jun-14 IFN India Find Inc. India $24.65 $ $3,451 $25.61 $3, % 11.20% 7 21-May-14 MINDX Matthews India Inv India $20.81 $ $3,080 $23.25 $3, % 10.75% 8 28-Mar-14 XLE Spider Energy Energy $89.00 $ $3,026 $96.35 $3, % 10.23% Watchlist: VHT GDX HOLDINGS $27, % AIA CASH $4, % MPACX TOTAL $32, % Begin 2014 $31, G/L (Before Fees) $ Pct (Before Fees) 0.79% 2014 Mgt Fee $ Pct (Before Fees) 1.76% The above portfolio is the one that Bill Gunderson has his new Granddaughter Melissa s college fund in. 33

34 Two Weeks Ago Last Week This Week This beard makes me look like Grandpa 2014 Sells Add Add Adjusted Beginning Current Current Sell Date Symbol Name Sector Price Price Shares Value Price Value G/L Date 1 15-Mar-13 IJK Mid Cap Growth Mid-Cap $ $ $2,917 $ $3, % 24-Jan-14 SOLD 2 31-Dec-12 IWM Russell 2000 Index Small-Cap $84.32 $ $4,975 $ $6, % 24-Jan-14 SOLD 3 31-Dec-12 IBB Biotech Index Drug $ $ $3,431 $ $5, % 3-Feb-14 SOLD 4 6-Sep-13 FDN Internet Index Technology $51.53 $ $3,865 $58.47 $4, % 3-Feb-14 SOLD 5 29-Mar-13 VHT Healthcare Index (Vanguard) Mid-Cap $82.92 $ $6,717 $ $8, % 3-Feb-14 SOLD 6 14-Feb-14 VHT Healthcare Index (Vanguard) Mid-Cap $ $ $7,909 $ $7, % 28-Mar-14 SOLD 7 14-Feb-14 IXJ ishares Global Healthcare ETF Healthcare $90.27 $ $7,853 $90.02 $7, % 28-Mar-14 SOLD 8 7-Mar-14 HQH H & Q Healthcare Fund Healthcare $29.27 $ $3,951 $26.77 $3, % 28-Mar-14 SOLD 1/2 9 7-Mar-14 HQH H & Q Healthcare Fund Healthcare $29.27 $ $3,951 $28.12 $3, % 2-Apr-14 SOLD 1/ Mar-14 BTO J H Financial Opp Fund. Financial $23.77 $ $3,090 $22.72 $2, % 4/11/2014 SOLD 11 6-Mar-14 DFE European Small Cap Europe $63.29 $ $3,797 $61.43 $3, % 4/17/2014 SOLD 1/ Mar-14 DFE European Small Cap Europe $63.29 $ $3,797 $61.08 $3, % 5/15/2014 SOLD REST Mar-14 EWI ishares Italy Europe $17.53 $ $3,068 $16.61 $2, % 5/15/2014 SOLD 14 9-Apr-14 DGS Emg. Mkt.Small Cap Emg. Markets $48.08 $ $4,087 $47.46 $4, % 6/4/2014 SOLD Mar-14 EWZ Brazil Index Brazil $47.39 $ $3,412 $46.04 $3, % 6/4/2014 SOLD Mar-14 FM ishares Frontier 100 Emg. Markets $36.08 $ $3,067 $37.48 $3, % 6/16/2014 SOLD Apr-14 IGE N. Amer. Nat Resource Index Basic Materials $45.91 $ $3,673 $47.32 $3, % 8/5/2014 SOLD Mar-14 OIH Mkt Vect. Oil Service Energy $50.28 $ $3,067 $53.18 $3, % 5-Aug-14 SOLD Melissa Odette Furrows is now 7 months old. She was born one hour after my mother, Lucille Bracken Gunderson passed away on November 21, Melissa was also born on her other Grandmother, Odette Nahra s Birthday. She passed away earlier in the year Lucy Odie Until we meet again. 34

35 Bill Gunderson s Aggressive Growth Model Portfolio This is my most aggressive portfolio. It is designed for investors with long-term time horizons, seeking maximum growth. It is also my most VOLATILE portfolio. Investors need to be able to stomach as much as 10-20% swings from time to time in an aggressive style of investing. This portfolio goes anyone in in the world, wherever the action is. This portfolio was up 39.5% in 2013 after all expenses. It can also be heavily weighted in certain sectors of the market. This portfolio is down (6.61%) YTD. I sold OAS. I bought PCYC, and VIPS. Cash level is now 7.3%. If you are a new client or in my moderate profile, your cash level could be much different. Gunderson Agg.Growth Model Portfolio -6.61% YTD (After Fees) S&P % 8/15/2014 (as of 7am) -5.33% YTD (Before Fees) Nasdaq 7.19% 39.53% 2013 (After Fees) Dow 1.08% 11.99% 2012 (After Fees) S&P % *(Net of all $7 trading fees and an annual mgt. fee of 2.0%-Audit in Process) *Actual accounts managed by Gunderson Capital Mgt. may vary depending upon when accounts are opened and actual stock mix. Add Add Adj. Add Begin Current Current Current Sym. Name Sector Date Price Price Shares Value Price Value G/L Allocation 1 AKRX Akorn Inc Drug 27-Jun-14 $31.55 $ $5,048 $36.34 $5, % 3.80% 2 CNC Centene Corp Healthcare 29-Apr-14 $70.07 $ $5,045 $74.19 $5, % 3.49% 3 CTRP Ctrip.com Leisure-China 7-Aug-14 $67.37 $ $5,053 $67.12 $5, % 3.29% 4 CXO Concho Resources Energy 15-Apr-14 $ $ $5,091 $ $5, % 3.32% 5 DXCM Dexcom Inc. Drug 4-Jun-14 $34.72 $ $5,034 $44.17 $6, % 4.19% 6 FTI F M C Technologies Energy 16-Apr-14 $54.48 $ $5,067 $59.96 $5, % 3.65% 7 FXI China Large Cap China 1-Aug-14 $40.75 $ $7,743 $41.24 $7, % 5.13% 8 GBX Greenbrier Companies Transportatiion 23-May-14 $55.83 $ $5,025 $64.71 $5, % 3.81% 9 GILD Gilead Sciences Drug 29-Jul-14 $93.13 $ $5,122 $99.49 $5, % 3.58% 10 GOLD Randgold Resources Precious Metals 11-Jul-14 $89.54 $ $5,104 $84.60 $4, % 3.16% 11 ILMN Illumina Inc. Drug 23-May-14 $ $ $5,128 $ $5, % 3.53% 12 KOG Kodiak Oil & Gas Energy 13-Jun-14 $13.74 $ $5,084 $14.87 $5, % 3.60% 13 LRCX Lam Research Transportatiion 27-May-14 $61.64 $ $5,054 $69.66 $5, % 3.74% 14 MINDX Matthew India Inv India 23-May-14 $21.19 $ $7,628 $23.28 $8, % 5.48% 15 MPACX Matthew Asia Growth Inv Asia 1-Aug-14 $22.25 $ $7,654 $22.31 $7, % 5.02% 16 ODFL Old Dominion Freight Transportatiion 30-Apr-14 $60.51 $ $5,083 $65.42 $5, % 3.60% 17 PCYC Pharmacyclics Drug 13-Aug-14 $ $ $5,075 $ $5, % 3.31% 18 RES R P C Inc. Energy 6-Jun-14 $23.48 $ $5,048 $22.66 $4, % 3.19% 19 SLXP Salix Pharmaceuticals Drug 31-Jul-14 $ $ $5,160 $ $5, % 3.47% 20 SWKS Skyworks Technology 5-Jun-14 $46.69 $ $5,136 $54.65 $6, % 3.93% 21 TTM Tata Motors Auto 16-May-14 $40.65 $ $5,081 $44.27 $5, % 3.62% 22 UHS Universal Health Healthcare 3-Jun-14 $92.45 $ $5,085 $ $6, % 4.03% 23 URI United Rentals Industrial 16-May-14 $95.52 $ $5,063 $ $5, % 3.87% 24 VIPS Vipshop Hldgs. Retail-China 6-Aug-14 $ $ $5,216 $ $5, % 3.66% 25 XEC Cimarex Energy Energy 21-May-14 $ $ $5,109 $ $5, % 3.57% Watchlist ARII Curren Mkt. Value $145, % TMH Current Cash $11, % FNV Current Total Value $156, % BMRN Begin 2014 $167,783 BITA 2014 YTD G/L (Before Fees) -$11,090 BIDU 2014 Mgt. Fees (2.0%) annual -6.61% CELG 2014 Trading Costs ($ 76 $7.00 $532 TMH 2014 Mgt. Fees (0.5%) quarterly $1,609 BABY Total Costs $2, % MDVN Total Gain Before Fees -$8, YTD G/L (After Fees) -5.33% 35

36 36

37 Gunderson Aggressive Growth Model Portfolio Sells 2014 Symbol Name Sector Bought Buy Price Shares Tot. Buy Sell Price Total Sell Pct. G/L Sell Date 1 ALGT Allegiant Travel Transportation 27-Nov-13 $ $ $5,683 $ $5, % SOLD 13-Jan-14 2 DDD Three D Systems Technology 31-Oct-13 $62.71 $ $5,456 $89.33 $7, % SOLD 15-Jan-14 3 STLD Steel Dynamics Basic Mat. 8-Nov-13 $19.23 $ $5,288 $18.72 $5, % SOLD 15-Jan-14 4 AKRX Akorn Inc. Drug 30-Sep-13 $19.64 $ $5,794 $22.16 $6, % SOLD 21-Jan-14 5 ACET Aceto Corp. Basic Mat. 22-Nov-13 $20.64 $ $5,366 $21.47 $5, % SOLD 24-Jan-14 6 NUS Nu Skin Enterprises Consumer 16-Aug-13 $87.28 $ $5,062 $77.95 $4, % SOLD 21-Jan-14 7 PRFT Perfecient Inc. Technology 5-Dec-13 $22.98 $ $5,676 $20.98 $5, % SOLD 24-Jan-14 8 TRIP TripAdvisor Leisure 31-Oct-13 $83.85 $ $5,618 $83.90 $5, % SOLD 21-Jan-14 9 VNET Twenty One Vianet Technology 18-Dec-13 $21.49 $ $5,695 $20.71 $5, % SOLD 27-Jan YELP Yelp Inc Internet 15-Nov-13 $69.41 $ $5,553 $71.65 $5, % SOLD 29-Jan WST West Pharm. Services Medical 10-Oct-13 $42.83 $ $5,140 $47.38 $5, % SOLD 27-Jan CEMP Cempra Inc. Drug 26-Sep-13 $10.57 $ $5,444 $11.37 $5, % SOLD 24-Jan CFX Colfax Corp. Industrial 31-May-13 $49.90 $ $4,691 $60.10 $5, % SOLD 29-Jan ACHC Acadia Healthcare Medical 3-Dec-13 $48.28 $ $5,697 $47.57 $5, % SOLD 5-Feb ANAC Anacor Pharm. Drug 15-Aug-13 $10.54 $ $5,028 $16.89 $8, % SOLD 3-Feb EUM Emerging Mkts Inverse 1X Inverse 4-Feb-14 $28.80 $ $6,624 $27.50 $6, % SOLD 27-Feb JAZZ Jazz Pharmaceuticals Drug 31-May-13 $69.00 $ $4,692 $ $9, % SOLD 3-Feb LOCK Lifelock Inc. Services 23-Jan-14 $20.12 $ $5,634 $19.93 $5, % SOLD 25-Feb ZGNX Zogenix Inc. Drug 12-Feb-14 $4.80 $ $5,640 $4.16 $4, % SOLD 6-Mar MDVN Medivation Inc. Drug 15-Jan-14 $76.01 $ $5,929 $71.55 $5, % SOLD 3-Mar ILMN Illumina Drug 26-Jun-13 $75.73 $ $2,348 $ $5, % SOLD 1/2 7-Mar DXCM Dexcom Inc. Drug 10-May-13 $19.85 $ $2,263 $44.38 $5, % SOLD 1/2 14-Mar ILMN Illumina Drug 26-Jun-13 $75.73 $ $2,348 $ $4, % SOLD 1/2 14-Mar ISIS Isis Pharmaceutical Drug 28-Jan-13 $49.85 $ $5,484 $45.46 $5, % SOLD 13-Mar NPSP N P S Pharm. Drug 12-Feb-14 $38.33 $ $5,558 $31.09 $4, % SOLD 10-Mar ALNY Alnylam Pharm. Drug 21-Feb-14 $89.59 $ $5,734 $63.64 $4, % SOLD 24-Mar DXCM Dexcom Inc. Drug 10-May-13 $19.85 $ $2,283 $42.60 $4, % SOLD 24-Mar INCY Incyte Corp. Drug 18-Nov-13 $46.96 $ $5,400 $53.30 $6, % SOLD 25-Mar INSY Insys Therapeutics Drug 24-Feb-14 $68.01 $ $5,645 $63.53 $5, % SOLD 28-Mar LGND Ligand Pharm. Drug 11-Feb-14 $69.15 $ $5,532 $66.14 $5, % SOLD 28-Mar ORBC Orbcomm Inc. Telecom 28-Jan-14 $8.07 $ $5,649 $6.67 $4, % SOLD 26-Mar PFPT Proofpoint Inc. Technology 6-Feb-14 $40.12 $ $5,697 $35.86 $5, % SOLD 28-Mar TRIP TripAdvisor Inc. Leisure 19-Feb-14 $94.19 $ $5,746 $89.64 $5, % SOLD 28-Mar WDAY Workday Inc. Technology 24-Feb-14 $96.84 $ $5,617 $93.78 $5, % SOLD 25-Mar YELP Yelp Consumer 26-Feb-14 $97.74 $ $5,571 $75.68 $4, % SOLD 28-Mar ACAD Acadia Pharmaceutical Drug 4-Mar-14 $30.21 $ $6,042 $24.05 $4, % SOLD 2-Apr MIDD Middleby Corp. Industrial 13-Mar-14 $ $ $5,687 $ $5, % SOLD 4-Apr PODD Insulet Corp. Drug 23-Jan-14 $43.05 $ $5,597 $45.85 $5, % SOLD 4-Apr YY YY Inc. Ads Technology 24-Feb-14 $76.77 $ $5,604 $73.48 $5, % SOLD 4-Apr BOFI Bank of the Internet Bank 26-Feb-14 $93.55 $ $5,613 $73.76 $4, % SOLD 7-Apr TSLA Tesla Auto 18-Mar-14 $ $ $5,536 $ $4, % SOLD 4-Apr URI United Rentals Building 20-Feb-14 $86.95 $ $5,739 $86.02 $5, % SOLD 4-Apr POWR Powersecure Intl. Industrial 13-Mar-14 $24.72 $ $5,686 $19.52 $4, % SOLD 15-Apr BRCD Brocade Comm. Technology 3-Apr-14 $10.61 $ $5,093 $9.72 $4, % SOLD 4/21/ CLB Core Laboratories Energy 15-Apr-14 $ $ $5,202 $ $4, % SOLD 4/24/ CRR Carbo Ceramics Energy 28-Mar-14 $ $ $5,729 $ $5, % SOLD 4/24/ HEES H & Equipment Services Industrial 25-Mar-14 $38.41 $ $5,762 $35.65 $5, % SOLD 5-May ERF Enerplus Corp. Energy-Canda 11-Apr-14 $21.25 $ $5,100 $20.43 $4, % SOLD 9-May FANG Diamondback Energy Energy 28-Mar-14 $68.81 $ $5,505 $69.23 $5, % SOLD 15-May GPOR Gulfport Energy Corp. Energy 11-Apr-14 $74.07 $ $5,111 $60.47 $4, % SOLD 12-May FTK Flotek Industries Energy 9-Apr-14 $28.00 $ $5,096 $27.72 $5, % SOLD 15-May PDS Precision Drilling Energy 9-Apr-14 $12.40 $ $5,084 $11.96 $4, % SOLD 15-May WFT Weatherford Intl. Ltd Energy 22-Apr-14 $18.38 $ $4,595 $20.12 $5, % SOLD 15-May BRFS B R F S A Adr Food-Brazil 29-Apr-14 $22.69 $ $5,105 $22.48 $5, % SOLD 23-May BSBR Banco Santander Bank-Brazil 11-Apr-14 $5.71 $ $5,139 $6.71 $6, % SOLD 4-Jun DGS Emg. Mkt Sm. Cap Index Emg. Markets 9-Apr-14 $48.08 $ $5,096 $47.42 $5, % SOLD 4-Jun EWA Australia ishares International 8-Apr-14 $26.37 $ $5,089 $26.22 $5, % SOLD 4-Jun EWS Singapore ishares International 8-Apr-14 $13.30 $ $5,054 $13.70 $5, % SOLD 4-Jun EWZ Brazil Index Emg.Mkt-Brazil 11-Apr-14 $47.48 $ $5,080 $46.04 $4, % SOLD 4-Jun ILF Latin America 40 ETF Emg. Markets 6-May-14 $38.87 $ $5,053 $37.25 $4, % SOLD 4-Jun FM Frontier 100 ishares International 7-Apr-14 $37.20 $ $5,059 $37.48 $5, % SOLD 16-Jun ALNY Alynylam Drug 9-Jun-14 $65.97 $ $5,080 $61.13 $4, % SOLD 27-Jun CLR Continental Resources Energy 29-Apr-14 $ $ $5,070 $ $5, % SOLD 24-Jun NBR Nabors Industries Energy 28-Mar-14 $24.95 $ $5,863 $26.26 $6, % SOLD 25-Jun ISIS Isis Pharmaceutical Drug 10-Jun-14 $33.78 $ $5,067 $31.19 $4, % SOLD 8-Jul TRLA Trulia Inc. Real Estate 27-Jun-14 $46.91 $ $5,160 $41.41 $4, % SOLD 8-Jul DRC Dresser Rand Group Energy 24-Apr-14 $60.91 $ $5,056 $61.96 $5, % SOLD 8-Jul CJES C & J Energy Services Energy 6-May-14 $31.09 $ $5,068 $28.87 $4, % SOLD 1-Aug CRR Carbo Ceramics Energy 27-Jun-14 $ $ $5,106 $ $4, % SOLD 1-Aug NOG Northern Oil & Gas Energy 18-Jun-14 $16.72 $ $5,100 $15.26 $4, % SOLD 1-Aug ABG Asbury Automotive Grp. Auto 3-Apr-14 $58.57 $ $5,271 $66.87 $6, % SOLD 7-Aug CRZO Carrizo Oil & Gas Energy 3-Jun-14 $59.91 $ $5,092 $59.97 $5, % SOLD 5-Aug FANG Diamondback Energy Energy 9-Jun-14 $82.09 $ $5,090 $78.74 $4, % SOLD 5-Aug OAS Oasis Petroleum Energy 7-May-14 $48.47 $ $5,089 $47.00 $4, % SOLD 12-Aug-14 37

38 Bill Gunderson s 401-K/Mutual Fund Model Portfolio Everyone has different choices to them in their 401-ks. The choices basically fall into several broad categories however: Large Cap, Mid-Cap, Small-Cap, Govt. Bond, Corp. Bond, Inflation Protected Bond, International, Emerging Market, and maybes sectors like technology, natural resources, etc. I have added a number of mutual funds to my Best Stocks Now database that are representative of the various categories of funds that are available in most 401k plans. I grade them on a daily basis. I am almost done with my BEST MUTUAL FUNDS NOW app. If you have a wide selection of mutual funds in your plan, here is my current recommendation. This portfolio was up 31.33% in 2013 (net of all fees and trading costs). It is now down -2.43% so far this year. No changes this past week. Cash position is now 3.5% Mutual Fund Model Portfolio -2.43% (YTD after fees) S&P % 8/14/2014 (Close) -1.41% (before fees) Dow -0.4% 31.33% Since 1/1/13 Inception (net of all mgt. fees trading costs) Annualized 18.4% Add Add Adjusted Beginning Current Current Date Symbol Name Sector Price Price Shares Value Price Value G/L Alloc. 16-May-14 DODFX Dodge & Cox International International $45.17 $ $3,388 $45.90 $3, % 10.75% 20-Jun-14 FBIOX Fidelity Biotech Drug $ $ $3,361 $ $3, % 11.00% 28-Mar-14 FEMKX Fidelity Emg. Markets Emg. Mkt. $23.87 $ $2,984 $25.37 $3, % 9.90% 20-Jun-14 FICDX Fidelity Canada Drug $63.34 $ $3,230 $63.83 $3, % 10.16% 18-Apr-14 FLATX Fidelity Latin America Emg. Mkt. $31.77 $ $3,495 $33.15 $3, % 11.38% 28-Mar-14 FSENX Fidelity Select Energy Energy $57.51 $ $2,991 $58.40 $3, % 9.48% 18-Apr-14 FSESX Fidelity Energy Service Energy Service $87.08 $ $3,483 $91.15 $3, % 11.38% 31-Jul-14 MPACX Matthews Asia Growth Inv. Emg. Mkt. $22.25 $ $3,226 $22.34 $3, % 10.11% 16-May-14 MINDX Matthews India Fund Emg. Mkt. $19.87 $ $3,378 $23.25 $3, % 12.34% Watch List HOLDINGS $30, % CASH $1, % TOTAL ` $32, % Begin 2014 $32, G/L Before Expenses -$798 Pct. Before Fees -2.43% Mgt. Fees $336 G/L Before Fees -$ G/L After Expenses -1.41% Begin 2013 $25,000 Gain/Loss-After Fees $7,034 Pct. G/L (After Fees) ` 28.14% Fees/Cost $275 Adj. Gain/Loss $7,309 Pct. Gain/Loss 29.24% 38

39 BASIC 401-K ALLOCATION (No changes this week). U.S. Small Cap Growth 0.0% U.S. Small Cap Value 0.0% U.S. Large Cap Growth 0.0% U.S. Mid Cap Growth 0.0% U.S. Mid Cap Value 10.0% U.S. Large Cap Value 20.0% U.S. REIT s 0.0% U.S. Govt. Bonds 0.0% U. S. Corp. Bonds 0.0% Developed International 10.0% Emerging Markets Stocks 40.0% Emerging Market Income 0.0% Natural Resources/Energy 20.0% Precious Metals 0.0% Technology 0.0% Money Market (CASH) 0.0% Latin America 0.0% Asia 0.0% TSP Plans or Basic 401-k plans Many folks have a very limited selection of choices in their retirement plans. This is my current recommendation for such basic plans. No changes this past week. U.S. Lg. & Midcap Stocks 40.0% C Fund U.S. Sm. & Mid-Cap stocks 0.0% S Fund U.S. Bonds (CASH) 20.0% G Fund (Government Securities) Bond Fund 0.0% F Fund (Govt. Bonds, Mortgage bonds, and Corp. Bonds) International Dev. Mkts. 40.0% I Fund Asset Allocation 0.0% L fund 39

40 Bill Gunderson s Trading Account (new) This is Bill Gunderson s actual trading account. I deposited $25,000 into it on 3/28/14 and went shopping. I have sent out a tweet on every trade I have made since. For the most part, these stocks are too small or too thinly traded for my managed accounts. This is not a daytrading account. I am looking to bag some big winners, while keeping a short leash on my positions. I am using sell stops on leveraged investments. This account is now down 5.37%. I sold OAS and PHX. No new buys. Cash Level is now at 40.1%. Bill Gunderson Trading Account -5.37% (After Fees) As of 8/14/2014 (as of 7:30am) -2.40% (Before Fees) Inception Date 3/28/14 *(Net of all $7 trading fees *This is not a managed account that I offer at Gunderson Capital Mgt. These stocks are too thinly traded and small for the most part. Add Add Adj. Add Begin Current Current Current Sym. Name Sector Date Price Price Shares Value Price Value G/L Allocation 1 AKRX Akorn Inc. Drug 9-Jun-14 $28.39 $ $1,987 $36.77 $2,574 $ % 10.88% 2 IIF MS India Inv. Fund India 16-Apr-14 $19.51 $ $1,951 $23.08 $2,308 $ % 9.76% 3 KWEB China Internet Index China 31-Jul-14 $37.75 $ $2,076 $39.84 $2,191 $ % 9.26% 4 RES R P C Inc. Energy 15-Apr-14 $20.67 $ $1,034 $22.80 $1,140 $ % 4.82% 5 SCIN India Small-Cap Index India 3-Jun-14 $16.97 $ $1,952 $15.81 $1,818 -$ % 7.68% 6 YINN China Select 3X everaged China 6-Aug-14 $33.74 $ $2,024 $35.56 $2,134 $ % 9.02% 7 TAHO Tahoe Resources Precious Metals 10-Jul-14 $26.75 $ $2,006 $26.66 $2,000 -$7-0.3% 8.45% WATCHLIST Curren Mkt. Value $14, % DXCM Current Cash $9, % MARGIN EFU Current Total Value $23, % SBB Begin /31/2014 $25,000 OVAS 2014 YTD G/L (Before Fees) -$1,342 ACHN 2014 Mgt. Fees (2.0%) annual -5.37% ADHD ing Costs ( $742 YZC 2014 Mgt. Fees (N/A) $0 Total Costs $ % Total Gain Before Fees -$ YTD G/L (After Fees) -2.40% 40

41 Gunderson Trading Account Sells 2014 Symbol Name Sector Bought Buy Price Shares Tot. Buy Sell Price Total Sell Pct. G/L Sell Date 1 COWN Cowen Group Financial 1-Apr-14 $4.53 $ $997 $4.04 $ % SOLD 04/07/14 2 ORBK Orbotech Technology 31-Mar-14 $15.33 $ $996 $15.66 $1, % SOLD 04/03/14 3 TASR Taser Intl. Defense 26-Mar-14 $19.30 $ $965 $17.70 $ % SOLD 04/04/14 4 VIMC Vimicro Intl. Technology 26-Mar-14 $3.70 $ $1,018 $3.59 $ % SOLD 04/11/14 5 VIMC Vimicro Intl. Technology 31-Mar-14 $4.49 $ $988 $3.59 $ % SOLD 04/11/14 6 CAK Camac Energy Energy 7-Apr-14 $0.81 $ $888 $0.72 $ % SOLD 04/16/14 7 QUIK Quicklogic Technology 2-Apr-14 $5.55 $ $1,082 $4.85 $ % SOLD 04/15/14 8 USEG U S Energy Corp. Energy 26-Mar-14 $4.90 $ $1,029 $4.09 $ % SOLD 04/16/14 9 USEG U S Energy Corp. Energy 2-Apr-14 $5.01 $ $1,002 $4.09 $ % SOLD 04/16/14 10 EVK Every Glory Intl. Consumer 27-Mar-14 $7.56 $ $1,021 $6.90 $ % SOLD 04/15/14 11 FLML Flamel Technology Medical 9-Apr-14 $14.47 $ $1,013 $10.38 $ % SOLD 04/15/14 12 SNAK Inventure Foods Food 25-Mar-14 $14.11 $ $988 $12.61 $ % SOLD 04/15/14 13 BIS Inverse Biotech 2X Inverse 3-Apr-14 $18.14 $ $998 $20.92 $1, % SOLD 04/15/14 14 SNMX Senomyx Food 2-Apr-14 $12.18 $ $1,035 $7.91 $ % SOLD 04/15/14 15 SLP Simulations Plus Medical 25-Mar-14 $6.81 $ $1,022 $5.88 $ % SOLD 04/15/14 16 SYX Systemax Inc. Consumer 8-Apr-14 $15.87 $ $1,032 $14.21 $ % SOLD 04/15/14 17 MMYT Makemytrip.com Leisure 31-Mar-14 $27.14 $ $1,004 $23.70 $ % SOLD 04/14/14 18 WSTG Wayside Technology Technology 26-Mar-14 $16.70 $ $1,169 $20.60 $1, % SOLD 04/14/14 19 HSKA Heska Corp. Medical 14-Apr-14 $11.50 $ $978 $11.88 $1, % SOLD 04/21/14 20 AXAS Abraxas Petroleum Energy 28-Mar-14 $3.90 $ $1,014 $5.26 $1, % SOLD 04/22/14 21 AXAS Abraxas Petroleum Energy 3-Apr-14 $3.98 $ $955 $5.26 $1, % SOLD 04/22/14 22 ELY Callaway Golf Leisure 1-Apr-14 $10.31 $ $1,031 $9.47 $ % SOLD 04/24/14 23 HIL Hill Intl. Building 25-Mar-14 $5.41 $ $1,001 $7.33 $1, % SOLD 04/23/14 24 PAM Pampa Energia Util-Argentina 8-Apr-14 $6.39 $ $959 $7.19 $1, % SOLD 04/24/14 25 PES Pioneer Energy Energy 14-Apr-14 $13.45 $ $1,009 $13.77 $1, % SOLD 04/24/14 26 WLB Westmoreland Coal Basic Materials 8-Apr-14 $31.48 $ $1,039 $29.08 $ % SOLD 04/25/14 27 CLD Cloud Peak Energy Energy 25-Mar-14 $21.07 $ $990 $20.61 $ % SOLD 04/28/14 28 CPE Callon Petroleum Energy 28-Mar-14 $8.30 $ $996 $9.10 $1, % SOLD 04/28/14 29 MED Medifast Food 8-Apr-14 $31.49 $ $1,102 $31.22 $1, % SOLD 04/29/14 30 SIMO Silicon Motion Technology 25-Mar-14 $17.29 $ $1,037 $16.60 $ % SOLD 04/28/14 31 VTNR Vertex Energy Energy 25-Apr-14 $8.09 $ $1,335 $8.17 $1, % SOLD 05/02/14 32 TWM Inverse Smallcap 2X Inverse 29-Apr-14 $51.06 $ $2,042 $48.29 $1, % SOLD 05/02/14 33 CRK Comstock Resources Energy 31-Mar-14 $22.97 $ $988 $26.47 $1, % SOLD 05/02/14 34 AXAS Abraxas Petroleum Energy 30-Apr-14 $5.43 $ $2,036 $5.40 $2, % SOLD 05/09/14 35 EGY Vaalco Energy Energy 7-Apr-14 $8.66 $ $996 $8.61 $ % SOLD 05/07/14 36 GDP Goodrich Petroleum Energy 25-Apr-14 $26.22 $ $1,967 $24.18 $1, % SOLD 05/05/14 37 LPI Laredo Petroleum Energy 22-Apr-14 $29.95 $ $1,947 $28.44 $1, % SOLD 05/08/14 38 NOA North Amer. Energy Ptnrs Energy 8-Apr-14 $7.68 $ $998 $7.57 $ % SOLD 05/09/14 39 REXX Rex Energy Corp Energy 15-Apr-14 $19.75 $ $988 $20.04 $1, % SOLD 05/08/14 40 STKL Sunopta Inc Food 2-Apr-14 $12.00 $ $1,020 $11.09 $ % SOLD 05/08/14 41 SYRG Synergy Resources Energy 25-Apr-14 $12.25 $ $2,021 $11.18 $1, % SOLD 05/08/14 42 VET Vermillion Energy Energy 11-Apr-14 $64.65 $ $970 $62.72 $ % SOLD 05/09/14 43 WRES Warren Resources Energy 22-Apr-14 $5.30 $ $1,988 $4.82 $1, % SOLD 05/08/14 44 IRS I R S A Inv Global Real Estate 6-May-14 $14.76 $ $1,033 $14.00 $ % SOLD 05/16/14 45 POL Polyone Corp. Basic Materials 2-May-14 $38.77 $ $1,939 $37.15 $1, % SOLD 05/15/14 46 FRM Furmanite Energy 5-May-14 $11.21 $ $2,018 $10.15 $1, % SOLD 05/20/14 47 GPI Group 1 Automotive Auto 30-Apr-14 $72.09 $ $1,946 $76.94 $2, % SOLD 05/20/14 48 MES Mkt Vectors Gulf States Emg. Mkts. 28-Mar-14 $31.20 $ $1,092 $32.19 $1, % SOLD 05/20/14 49 SWHC Smith & Wesson Leisure 1-May-14 $15.89 $ $1,907 $15.34 $1, % SOLD 05/14/14 50 SPIL Siliconware Technology 8-Apr-14 $7.07 $ $1,025 $8.33 $1,208 $ % SOLD 06/09/14 51 MED Medifast Food 13-Jun-14 $33.84 $ $2,030 $30.44 $1,826 -$ % SOLD 06/26/14 52 MMYT Makemytrip Ltd Leisure-India 21-May-14 $24.42 $ $1,954 $32.75 $2,620 $ % SOLD 07/02/14 53 PCYG Park City Group Technology 21-May-14 $11.50 $ $2,013 $10.62 $1,859 -$ % SOLD 07/01/14 54 AAV Advantage Oil & Gas Energy 13-Jun-14 $6.87 $ $2,061 $6.35 $1,905 -$ % SOLD 07/08/14 55 LDL Lydall Technology 27-May-14 $27.92 $ $1,954 $27.21 $1,905 -$50-2.5% SOLD 07/08/14 56 OMER Omeros Corp. Drug 25-Jun-14 $17.25 $ $1,984 $14.89 $1,712 -$ % SOLD 07/08/14 57 AXDX Accelerate Diagnostics Drug 13-Jun-14 $25.08 $ $2,006 $23.60 $1,888 -$ % SOLD 07/11/14 58 GZPFY Gazprom Energy 21-May-14 $20.65 $ $2,065 $20.35 $2,035 -$30-1.5% SOLD 07/16/14 59 ASX Advanced Semiconductor Technology 27-May-14 $6.44 $ $1,996 $6.17 $1,913 -$84-4.2% SOLD 07/24/14 60 RP Realpage Inc. Technology 3-Jun-14 $21.53 $ $1,938 $16.38 $1,474 -$ % SOLD 07/25/14 61 YELP Yelp Inc. Internet 22-May-14 $60.49 $ $2,117 $68.99 $2,415 $ % SOLD 07/22/14 62 CJES C & J Energy Service Energy 15-Apr-14 $29.50 $ $885 $28.87 $866 -$19-2.1% SOLD 08/01/14 63 CPE Callon Petroleum Energy 21-May-14 $10.46 $ $2,092 $10.64 $2,128 $36 1.7% SOLD 08/01/14 64 GWPH G W Pharmaceuticals Drug 9-Jul-14 $87.99 $ $1,760 $88.69 $1,774 $14-0.8% COVER 07/29/14 65 ERX Daily Energy 3X Energy 28-Mar-14 $91.12 $ $1,002 $ $1,414 $ % SOLD 08/01/14 66 LBJ Latin America 3X Emg. Markets 24-Jul-14 $28.28 $ $1,980 $26.00 $1,820 -$ % SOLD 08/01/14 67 NOG Northern Oil & Gas Energy 13-Jun-14 $16.16 $ $2,020 $15.26 $1,908 -$ % SOLD 07/30/14 68 CLMT Calumet Specialty Prod. Energy 21-May-14 $31.00 $ $2,015 $30.71 $1,996 -$19-0.9% SOLD 08/05/14 69 OAS Oasis Petroleum Energy 16-Apr-14 $46.88 $ $1,078 $47.00 $1,081 $3 0.3% SOLD 08/12/14 70 PHX Panhandle Oil & Gas Energy 11-Jun-14 $58.40 $ $2,044 $62.21 $2,177 $ % SOLD 08/13/14 41

42 Looking for a Hedge. Here is my current ranking of inverse (Bearish) ETF s: Two Weeks Ago Last week. This week. I still do not see any good short opportunities. Current leveraged index rankings (not for the faint of heart) 2 Wks ago Last week This week 42

43 Leveraged Inverse Rankings 2 Wks ago Last week This week Nothing looks good yet. Leveraged Sectors 2 Wks ago Last week This week Nothing That Biotech 2X looks pretty good right now. 43

44 Bill Gunderson is a professional fee-based money manager. Gunderson Capital Management manages hundreds of accounts all across the country. Minimum account size is $100,000. Annual Mgt. fees are 2% on accounts under $250,000, 1.5%-1.75% on accounts between $250k and $1 million, and 1% on accounts over $1 million. Call us for a portfolio evaluation and more info. (855)611-BEST. To view this past week s show archives click here BILL GUNDERSON s WEEKLY TOP 300 LIST This is just an appetizer, here is the full list. 44

45 Bill Gunderson's One Six Three Two Six One Two One Best Stocks Now Year Ago Mos. Ago Mos. Ago Mos. Ago Wks. Ago Mo. Ago Wks. Ago Wk. Ago Yest. Current Top 300 as of 8/14/2014 Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank A+ PCYC Pharmacyclics Inc A+ DXCM Dexcom A+ WDAY Workday Inc A ITMN InterMune Inc A BIIB Biogen Idec Inc A SGEN Seattle Genetics Inc A SWKS Skyworks Solutions Inc A ARII American Railcar A ABC Amerisourcebergen Corp A ICLR ICON Pic A BMRN BioMarin Pharmaceutical A HD Home Depot Inc A TRLA Trulia Inc A FB Facebook Inc. Cl A A CGNX Cognex Corp A CP Canadian Pacific Railway A VIPS Vipshop Holdings Ads A BIDU Baidu Inc A ATRO Astronics Corp A ODFL Old Dominion Freight Lines A PCRX Pacira Pharmaceuticals A PFPT Proofpoint Inc A CERN Cerner Corp A GILD Gilead Sciences Inc A ENSG Ensign Group A DXPE DXP Enterprises Inc A PCLN Priceline.com Inc A SBAC SBA Communications Corp A MLNX Mellanox Technologies A VASC Vascular Solutions Inc A EXAS EXACT Sciences Corp A CIB Bancolumbia Sa Adr A ACHN Achillion Pharmaceuticals A PRXL Parexel Intl Corp A TUMI Tumi Holdings A QIHU Qihoo 360 Tech A URI United Rentals Inc A ARLP Alliance Res Corp Lp A ACHC Acadia Healthcare A CELG Celgene Corp A JACK Jack in the Box Inc A YINN R P C Inc A RCPT Receptos Inc

46 Bill Gunderson's One Six Three Two Six One Two One Best Stocks Now Year Ago Mos. Ago Mos. Ago Mos. Ago Wks. Ago Mo. Ago Wks. Ago Wk. Ago Yest. Current Top 300 as of 8/14/2014 Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank A CMG Chipotle Mexican Grill A CNI Canadian Natl Ry Co A TREX Trex Company Inc A ALNY Alnylam Pharmaceuticals A WMC Western Asset Mtg A REGN Regeneron Pharmaceuticals A ADHD Alcobra Ltd A KWEB A ISIS ISIS Pharmaceuticals Inc A KERX Keryx Biopharmaceuticals A AMT American Tower Corp A AKRX Akorn Inc A LABL Multi Color Corp A ULTI Ultimate Software A LYB Lyondelbasell A CRI Carters Inc A BRLI Bio Reference Lab Inc A- RKUS Ruckus Wireless A- LUV Southwest Airlines Co A- MDVN Medivation A- CORE Core Mark Holdings A- FLT Fleetcor Technologies A- HTHT China Lodging Group A- MIDD Middleby Corp A- OTEX Open Text Corp A- SYNT Syntel Inc A- PHX Panhandle Royalty Cl A A- ACAD Acadia Pharm A- DMLP Dorchester Minerals Lp A- SLXP Salix Pharmaceuticals Ltd A- SCOR Comscore A- DYAX Dyax A- SIMO Silicon Motion Technology A- KOG Kodiak Oil & Gas A- UHS Universal Health Svcs B A- WAB Wabtec Corp A- ICPT Intercept Pharm A- SCTY Solar City A- BITA Bitauto Hldgs A- NKTR Nektar Therapeutics A- CNQR Concur Technology A- SLCA U S Silica Hldgs A- IBB Biotech Index A- JCOM J2 Global Communications A- NEOG Neogen Corp

47 Bill Gunderson's One Six Three Two Six One Two One Best Stocks Now Year Ago Mos. Ago Mos. Ago Mos. Ago Wks. Ago Mo. Ago Wks. Ago Wk. Ago Yest. Current Top 300 as of 8/14/2014 Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank A- BX Blackstone Group A- QLYS Qualys Inc A- THC Tenet Healthcare Corp A- CHE Chemed A- TMH Team Health Hldg, A- HDB HDFC Bank Ltd Adr A- DANG Dangdang A- MPWR Monolithic Power Systems A- TCX Tucows. Inc A- CAM Cooper Cameron Corp A- EMC E M C Corp Mass A- RGLD Royal Gold Inc A- BCC Boise Cascade A- TKMR Tekmira Pharm A- PRAA Portfolio Recovery A- LNG Cheniere Energy Inc A- MMP Magellan Midstream Ptnrs A- ALXN Alexion Pharmaceuticals A- AMGN Amgen Inc A- ASML ASML Hldgs NY Ny A- TPL Texas Pacific Land Trust A- AFSI Amtrust Fin. Svcs A- ANAC Anacor Pharm A- EVK Ever-Glory Intl A- COO Cooper Companies Inc A- GPK Graphic Packaging Corp A- LGF Lions Gate Entertainment A- MAR Marriott Intl A- WLL Whiting Petroleum Corp A- HQH H & Q Healthcare Fund A- RCL Royal Caribbean Cruises A- NTES Netease.Com Inc Adr A- SAIA Saia Inc A- ABMD Abiomed Inc A- JBLU JetBlue Airways Corp A- RFMD RF Micro Devices Inc A- WAGE Wageworks A- BWS Brown Shoe A- EW Edwards Lifesciences Corp A- SHW Sherwin-Williams Co A- INTC Intel Corp A- WWD Woodward Inc A- MOV Brazil 3x

48 Bill Gunderson's One Six Three Two Six One Two One Best Stocks Now Year Ago Mos. Ago Mos. Ago Mos. Ago Wks. Ago Mo. Ago Wks. Ago Wk. Ago Yest. Current Top 300 as of 8/14/2014 Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank A- UFI Unifi Inc A- RUSHA Rush Enterprises Cl A A- REX Resource America Inc A- CXW Corrections Corp of Amer A- NNI Nelnet Inc A- TTM Tata Motors Ltd A- OVAS Ovascience A- VRSN Versign Inc A- TTF Thai Fund A- ARWR Arrowhead Research A- AOS Smith AO Corp A- ARMH A R M Holdings A- ATVI Activision Inc A- TA TravelCenters America A- LDL Lydall Inc A- RHI Robert Half Intl Inc A- FFIV F5 Networks Inc A- INTU Intuit Inc A- CSV Carriage Services Inc A- AYI Acuity Brands Inc A- RPTP Raptor Pharmaceutical Co A- IBA Industrias Bachoco Sa de CV A- UA Under Armour A- CTCT Constant Contact A- HSNI H S N Inc A- CVI C V R Energy A- IT Gartner Inc Cl A A- LB Limited Bands inc A- TWX Time Warner Inc A- CYBX Cyberonics Inc A- DLTR Dollar Tree Stores A- NNBR NN Inc A- FIG Fortress Inv. Group A- WWAV Whitewave Foods A- TAX J T H Holdings A- CW Curtiss-Wright Corp A- CIMT Cimatron Ltd A- TDG Transdigm Group Inc A- TYL Tyler Technologies Inc A- CIG Companhia Energetica Adr A- STN Stantec Inc A- KMP Kinder Morgan A- UNP Union Pacific Corp A- BCPC Balchem Corp A- FARO FARO Technologies Inc

49 Bill Gunderson's One Six Three Two Six One Two One Best Stocks Now Year Ago Mos. Ago Mos. Ago Mos. Ago Wks. Ago Mo. Ago Wks. Ago Wk. Ago Yest. Current Top 300 as of 8/14/2014 Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank A- LPNT Lifepoint Hospitals Inc A- SSYS Stratasys Inc A- AHGP Allliance Holdings A- BLDP Ballard Power Systems A- CNK Cinemark Holdings A- UBNT Ubiguiti Networks A- DDS Dillard's Inc A- DECK Deckers Outdoor Inc A- VGR Vector Group Ltd A- MFRI MFRI Inc A- GTAT GT Advance Tech A- BABY Natus Medical Inc A- EQIX Equinix Inc A- MEOH Methanex Corp A- TRMB Trimble Navigation Ltd A- AGIO Agios Pharm A- AMTD Ameritrade Holding Corp A- LAD Lithia Motors Inc A- RGC Regal Entertainment Group A- PRSC Providence Svc. Corp A- Z Zillow A- HSKA Heska Corp A- KALU Kaiser Aluminum Corporation A- NATH Nathan's Famous Inc A- MKTX Marketaxess Hldg A- DIN Dineequity A- MNST Monster Beverage Co A- EFX Equifax A- TRP TransCanada Corporation A- NGLS Targa Resource A- ATHN Athenahealth A- CAVM Cavium Networks A- LTS Ladenburg Thalmann A- CLW Clearwater Paper A- SFUN Soufun Hldgs A- SFLY Shutterfly A- BAM Brascan Asset Management A- AIRM Air Methods Corp A- ALGN Align Tech Inc A- MPAA Motorcar Parts Of Amer A- NFLX Netflix, Inc A- TIBX Telecom Italia SpA

50 Bill Gunderson's One Six Three Two Six One Two One Best Stocks Now Year Ago Mos. Ago Mos. Ago Mos. Ago Wks. Ago Mo. Ago Wks. Ago Wk. Ago Yest. Current Top 300 as of 8/14/2014 Rank Rank Rank Rank Rank Rank Rank Rank Rank Rank A- HPY Heartland Payment Systems A- CMN Cantel Medical A- DIS Walt Disney Co A-Rated St A- MCK McKesson Corp A- MGA Magna Intl Inc A- WPC WP Carey & Co. LLC A- GLNG Golar Lng Inc A- IEP Icahn Ent A- UOPIX Profunds Ultra NASDAQ A- KMR Kinder Morgan Mgt A- KR Kroger Co A- DTLK Datalink Corp A- WLB Westmoreland Coal Co A- CRWS Crown Crafts Inc A- HAWK Blackhawk Network A- EXP Eagle Materials Inc A- ACET Aceto Corp A- BLKB Blackbaud Inc A- CALM Cal-Maine Foods Inc A- INFY Infosys Technologies Ads A- QCOR Questcor Pharmaceutical A- CAR Avis Budget Group A- SNA Snap On Inc A- SEMG Semgroup Corp A- EXLP Exterran Partners A- CVS CVS Corp A- IVZ Invesco Ltd A- KSU Kansas City Southern A- ACIW A C I Worldwide A- NATI National Instrument Corp A- TSLA Tesla Motors A- BBSI Barrett Business Svcs A- BCRX BioCryst Pharmaceuticals A- MGPI MGP Ingredients Inc A- SKUL Skullcandy A- PANW Palo Alto Networks A- EMES Emerge Energy Svcs A- TNXP Tonix Pharm A- NOR Noranda Alum A- CCM Concord Medical Svcs B+ GEL Genesis Energy Lp B+ USPH US Physical Trerapy Inc

51 HERE IS HOW YOU CAN STAY ON TOP OF THE MARKET THIS YEAR My Best Stocks Now Radio Hour is heard on the Salem Broadcast Network every weekday. Check your local affiliate for schedule. You can listen live to the show on the internet through the station s websites: ` Seattle 7am Dallas/Ft.Worth Twin Cities San Francisco Honolulu Atlanta Tune-In App BSN App Miami Chicago In additon to this we will also download the shows to the radio archives on my website and send them to itunes. There is no excuse to not keep up on your investments! Bill Gunderson is also columnist for The Street.com, MarketWatch.com, Townhall Finance, and SeekingAlpha.com. You can see my recent articles for the TheStreet by clicking here To see my recent articles for MarketWatch click here 51

52 Watch for Bill Gunderson on: 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. To order my book, Best Stocks Now, click the link below: To set up and appointment with me, click the link below: 52

53 Come visit me some time! Subscriptions to this weekly newsletter are $195 per year or $60 per quarter. To subscribe call us at (855)611-BEST or visit our website at You can also mail a check to Gunderson Capital Mgt. 101 W.Broadway #1975 San Diego, 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. LOCATED AT 101 W. Broadway #1975, San Diego, CALIFORNIA PHONE NO. (855)611-BEST. 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 ADVISOR, 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 (855)611-BEST 53