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INITIAL MCM 2008 APRIL RECOMMENDATIONS 3-16-08

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We are beginning the APRIL cycle with the following positions to our recommended list.

We are recommending credit spreads in the following issues:

RTI - RMI TITANIUM CO. is a producer of titanium mill and fabricated products for the global market. The Company's mill products are processed by RMI's customers to provide products for use in the aerospace industry and other industrial markets, including, most recently, golf club manufacturing. The Company's fabricated products are used primarily in the aerospace, oil and gas, geothermal energy production and chemical process industries as well as for a number of other industrial applications.



COMMENTARY:

RTI - decrease in homebuilding will obviously affect earnings for at least the next year until the housing fiasco finally subsides.

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PRU - Prudential Financial, Inc. is one of the largest financial services institutions in the United States. They provide a wide range of insurance, investment management and other financial products and services. The Prudential name and Rock logo are among the most widely recognized in the United States


COMMENTARY:

PRU - 5% exposure to the subprime market, may not be a problem, but exposure to currency risk and credit risk could create an issue regarding assets

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UA - Under Armour is a leading developer, marketer and distributor of branded performance products for men, women and youth. The brand's moisture-wicking synthetic fabrications are engineered in many different designs and styles for wear in nearly every climate to provide a performance alternative to traditional natural fiber products. The Company is an official supplier to the National Hockey League, the U.S. Ski Team, USA Rugby, the National Lacrosse League, and Major League Lacrosse; and the Company's products are worn by professional football, baseball, and soccer players, as well as athletes in major collegiate and Olympic sports.

COMMENTARY:

UA - risk will be relying on a few larger retailers for distribution in a very competitive market with the consumer already pulling back spending on discretionary items.

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JCP - JCPenney is one of America's leading retailers, operating department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation's largest general merchandise catalog business. Through these integrated channels, JCPenney offers a wide array of national, private and exclusive brands.

COMMENTARY:

JCP - The retailers are going to have to compete with rising energy and food prices and the trickle down effect , if there is going to be any separating consumers from what ever disposable income that they may have it may not start with the retailers. Even when these stimulus checks hit, and even if consumers do not save, I am not sure that beneficiaries of those stimulus checks will be the retailers. I have a feeling paying off debt may gain the upper hand. JCP will have to compete had for discretionary dollars for consumers for at least several quarters on the horizon.

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CRDN - CERADYNE, INC. develops, manufactures and markets advanced technical ceramic products and components for industrial, defense, consumer and microwave applications. In many high performance plications, products made of advanced technical ceramics meet specifications that similar products made of metals or plastics cannot achieve. Advanced technical ceramics can withstand extremely high temperatures, combine hardness with light weight, are highly resistant to corrosion and wear, and have excellent electrical insulation capability and other special electronic properties.


COMMENTARY:

CRDN - Defense spending and revenues may remain strong with the ungoing mitilary situations in Iraq however, the commerical and automotive end will fact the same problem as the rest of the U.S industry groups, a slowdown in spending and in consumption. At best these events above should cancel out each other.

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HNT - Health Net, Inc. is an integrated managed care organization which administers the delivery of managed health care services. The company's health maintenance organizations, insured preferred provider organizations and government contracts subsidiaries provide health benefits to individuals through group, individual, Medicare risk, Medicaid and TRICARE programs.


COMMENTARY:

HNT - Revenues may come under pressure as rival Wellness lowered its guidance and numbers for the upcoming quarter. There is no reason to believe for now that HNT will not be in the same position.

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We are recommending the following specific credit spreads.

(Call credit spreads = bearish call spreads )


RTI $46.76

BUY RTI-DL RTI APR $60.00 CALL DEBIT = $0.45
SELL RTI-DK RTI APR $55.00 CALL CREDIT= $0.80
NET CREDIT = $0.35

INITIAL "NET- CREDIT TARGET= $0.35 or $35.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.35 = $350.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,650.00
RETURN ON INVESTMENT= 7.53%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $50.00
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
RTI-DK EXIT >> = $3.20 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

PRU $68.68

BUY PRU-DQ PRU APR $85.00 CALL DEBIT = $0.30
SELL PRU-DP PRU APR $80.00 CALL CREDIT= $0.65
NET CREDIT = $0.35

INITIAL "NET- CREDIT TARGET= $0.35 or $35.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.35 = $350.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,650.00
RETURN ON INVESTMENT= 7.53%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $72.00
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
PRU-DP EXIT >> = $3.00 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

UA $34.00

BUY UA-DI UA APR $45.00 CALL DEBIT = $0.40
SELL UA-DH UA APR $40.00 CALL CREDIT= $0.85
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: $37.00
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
UA-DH EXIT >> = $3.40 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

JCP $38.70

BUY JCP-DW JCP APR $47.50 CALL DEBIT = $0.35
SELL JCP-DI JCP APR $45.00 CALL CREDIT= $0.60
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: $41.50
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

CRDN $28.39

BUY AUE-DG CRDN APR $35.00 CALL DEBIT = $0.40
SELL AUE-DV CRDN APR $32.50 CALL CREDIT= $0.60
NET CREDIT = $0.20

INITIAL "NET- CREDIT TARGET= $0.20 or $20.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.20 = $200.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,300.00
RETURN ON INVESTMENT= 8.70%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $30.00
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

`HNT $34.51

BUY HNT-DV HNT APR $42.50 CALL DEBIT = $0.45
SELL HNT-DH HNT APR $40.00 CALL CREDIT= $0.65
NET CREDIT = $0.20

INITIAL "NET- CREDIT TARGET= $0.20 or $20.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.20 = $200.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,300.00
RETURN ON INVESTMENT= 8.70%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $37.50
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


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