Foreign Stocks

SDA @ $21.56 (Sadia) is a Brazilian processor of frozen and refrigerated food products and poultry and pork products sold worldwide. Revenues have increased between 32% and 51% during the last four quarters. Earnings have increased 50%, 525%, 229% and 61% during the same time frame. We are adding SDA to OME and CQB in this group as it breaks out of a base. We are establishing a position here and will add to position on pull back to $18. Our stop loss will be set at $17.20.

 

JST @ $35.73 (Jinpan International) is a Chinese manufacturer of cast resin transformers used to convert high voltage electric transmissions to lower voltages. We originally bought this stock at $9.35 on 1/31/06 and are ready to revisit here at these levels. We will establish half a position here and will add the second half on a pull back to $30. Our stop loss will be set at $28.

ETF's

FXI @ $160.05 (Ishares Ftse/Xinhua China) is the ETF we play when we want some exposure to China. After being beaten down from $220 in October to a low of $120 in March, the FXI has reclaimed its 200 day moving average today with a better than 7% gain today. We are establishing half a position here and will add on a pull back to $150. Our stop loss will be set at $140 as we head into the summer Olympics. For the options players among us, we like the November $80 Calls (IKI KW) at $80.60 much better than the ETF. 

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