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Additional recommendations for MCM MARCH 2008 list 2-17-08

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We are adding the following issues to our MARCH recommended list.

We are recommending credit spreads in the following issues:

ALL - Allstate Corporation's business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and their subsidiaries. Allstate is engaged, principally in the United States and Canada, in the personal property and casualty insurance business and the life insurance and savings business. Allstate has four business segments: personal property and casualty; life and savings; discontinued lines and coverages; and corporate and other business.



Commentary

ALL - The underwriting has always been solid, however write downs in its fixed income portfolio will pose a problem for the near term.

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AXP - American Express Company is primarily engaged in the business of providing travel related services, financial advisory services and international banking services throughout the world. American Express Travel Related Services Company, Inc. provides a variety of products and services, including, global network services, the American Express Card, the Optima Card and other consumer and corporate lending products, stored value products, and several others.



Commentary:

AXP - Recent downgrade and concerns over consumer slow down in spending should be a concern for this cardcard giant, in addition some erosion of creditworthiness and reduction in credit lines of cardholders could also pose a problem

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EBAY - eBay
is one of the world's largest online trading communities. eBay creates a powerful marketplace for the sale of goods and services by a passionate community of individuals and small businesses. eBay enables trade on a local, national and international basis with local sites in numerous markets in the United States and country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia



Commentay:

EBAY -
uncertainty of the economic outlook and more world competition along with a retooling of marketing efforts may cause a slowdown in growth in 2008.

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KLAC - KLA-Tencor Corporation
is one of the world's leading suppliers of process control and yield management solutions for the semiconductor and related microelectronics industries. Its comprehensive portfolio of products, software, analysis, services and expertise is designed to help integrated circuit manufacturers manage yield throughout the entire wafer fabrication process.


KLAC - competition and threat to market share along with cyclical changes in the semiconductor industry could prove a challenge in 2008. The slow down in the economy doesn't help revenue growth either.

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IWM -
ISHARES RUSSELL 2000 INDEX FUND (IWM)

Commentary:

IWM - looking for a consolidation at best for this index around this price.

We recommending the following specific credit spreads

Call credit spreads ( bearish call spreads )


ALL $46.18

BUY ALL-CX ALL MAR $52.50 CALL DEBIT = $0.25
SELL ALL-CJ ALL MAR $50.00 CALL CREDIT= $0.50
NET CREDIT = $0.25
 

INITIAL "NET- CREDIT TARGET= $0.25 or $25.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.25 = $250.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,250.00
RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $47.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED


AXP $45.11

BUY AXP-CK AXP MAR $55.00 CALL DEBIT = $0.10
SELL AXP-CJ AXP MAR $50.00 CALL CREDIT= $0.55
NET CREDIT = $0.45
 

INITIAL "NET- CREDIT TARGET= $0.45 or $45.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.45 = $450.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,550.00
RETURN ON INVESTMENT= 9.89%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $47.50
2. EQUITY ISSUES
A STOP LIMIT will be placed on the SHORT STRIKE PRICE on any EQUITY OPTION that has a STRIKE PRICE DIFFERENCE OF $5.00 or MORE.
THE STOP LIMIT ON THIS POSITION IS NOTED BELOW:
BUY POSITION STOP BELOW
AXP-CJ EXIT >> = $2.20 STOP LIMIT
If and when the STOP LIMIT IS EXECUTED - A contingency order should be in place to then SELL the LONG SIDE of the Spread and close the position with a Market Order if and when the SHORT side needs to be STOPPED OUT


EBAY $27.29

BUY XBA-CZ EBAY MAR $32.50 CALL DEBIT = $0.15
SELL XBA-CF EBAY MAR $30.00 CALL CREDIT= $0.40
NET CREDIT = $0.25
 

INITIAL "NET- CREDIT TARGET= $0.25 or $25.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.25 = $250.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,250.00
RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $28.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED

KLAC $40.89

BUY KCQ-CT KLAC MAR $47.50 CALL DEBIT = $0.15
SELL KCQ-CI KLAC MAR $45.00 CALL CREDIT= $0.40
NET CREDIT = $0.25
 

INITIAL "NET- CREDIT TARGET= $0.25 or $25.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.25 = $250.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,250.00
RETURN ON INVESTMENT= 11.11%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $42.50
2. ON SPREADS WITH 2.50 or less difference in STRIKE PRICES
THOSE POSITIONS. THEY WILL GO ON THE WATCH LIST AND BE FOLLOWED WITH INSTRUCTIONS AS TO HOW TO PROCEED OR/WHAT EXIT POINT NEEDS TO BE ESTABLISHED

IWM $69.87

BUY IQQ-CC IWM MAR $81.00 CALL DEBIT = $0.11
SELL IQQ-CX IWM MAR $76.00 CALL CREDIT= $0.52
NET CREDIT = $0.41
 

INITIAL "NET- CREDIT TARGET= $0.41 or $41.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.41 = $410.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,590.00
RETURN ON INVESTMENT= 8.93%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $72.50
2. INDEX OPTIONS AND HOLDER ISSUES:
IF WE ARE USING A INDEX OR HOLDER OPTION WE WILL RECOMMEND WHEN
A STOP SHOULD BE ADDED, IF THAT TIME BECOMES NECESSARY



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