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Additional May recommendations 4-27-08

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We are adding the following to our MAY recommended list.

We are recommending credit spreads in the following issues:

ROK - Rockwell Automation is a leading global provider of industrial automation power, control and information solutions that help customers meet their manufacturing productivity objectives. The Company brings together leading brands in industrial automation for Complete Automation solutions, including Allen-Bradley controls and services, Dodge mechanical power transmission products, Reliance Electric motors and drives, and Rockwell Software factory management software.


Commentary:

A decline in large capacity projects is worrisome. Although small project maintenance, repair and overhaul revenues are up, ROK is expected to face increased competition in these areas, and pricing pressures could increase. We are are looking at this competition along with a slowdown in the overall economy for 2008 to be a factor in
affecting any major price increase in the short term.


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LVS - Las Vegas Sands Corp.
is a hotel, gaming, and retail mall company
headquartered in Las Vegas, Nevada. The company owns The Venetian Resort Hotel Casino, the Sands Expo and Convention Center, Venetian Interactive, an internet based venture, and Venetian Macao Limited, a developer of multiple casino hotel resort properties in The People's Republic of China's Special Administrative Region of Macao.



Commentary:

After recent run up of stock price based on Chinese Government' decision not to grant any more new casino licenses. LVS made a nice move over 7%. However, with the overriding problem in the housing market downturn and the drop in discretionary consumer spending the gaming industry might begin feeling the pain of tighter margins and more costly junket prices to lure players to casinos. International venues which have been the current beneficaries over domestic venues, may now begin to feel the pain, This is going to be a slightly more aggressive play that will carry over earning for LVS which should be around May 7, 2008. As you know, we usually do not hold over earnings report, except on rare situations. If a subcriber feels this position is too aggressive for him I understand, but with a run up already behind us and the decline in consumer spending, especially on discretionary items we are adding this play to the credit spread equity portfolio


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SHPGY - Shire Pharmaceuticals Group plc is a specialty pharmaceutical company focused primarily on two therapeutic areas: central nervous system disorders and metabolic bone diseases.




Commentary:

SHPGY
biggest drug Vyraise likely to be at the lower end of sales forecast. In addition
the company is edging slightly downward its guidance for 2008


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We are recommending the following specific credit spreads for the Portfolio #1: Equity Positions


ROK $56.03

BUY ROK-EM ROK MAY $65.00 CALL DEBIT = $0.05
SELL ROK-EL ROK MAY $60.00 CALL CREDIT= $0.35
NET CREDIT = $0.30

INITIAL "NET- CREDIT TARGET= $0.30 or $30.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.30 = $300.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,700.00
RETURN ON INVESTMENT= 6.38%

EXIT STRATEGY = 1. WATCH LIST 2. MAXIMUM LOSS SPREAD PRICE DIFFERENCE
1. STOCK WILL BE PLACED ON WATCH LIST IF STOCK PRICE RISES TO: $58.00
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
ROK-EL EXIT >> = $1.50 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


LVS $70.29

BUY LVS-EQ LVS MAY $85.00 CALL DEBIT = $0.45
SELL LVS-EP LVS MAY $80.00 CALL CREDIT= $0.95
NET CREDIT = $0.50

INITIAL "NET- CREDIT TARGET= $0.50 or $50.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.50 = $500.00
MARGIN REQUIRE. (x 10 CONTRACTS $4,500.00
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: $73.50
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
LVS-EP EXIT >> = $3.80 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


SHPGY $55.50

BUY UGH-EM SHPGY MAY $65.00 CALL DEBIT = $0.30
SELL UGH-EL SHPGY MAY $60.00 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: $57.50
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
UGH-EL EXIT >> = $2.60 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






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