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Initial OW December 2007 recommendations 11-11-07

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OVERVIEW

Market conditions look very weak going into December. First, the Credit market problem that lingers over us. Secondly, the continued increase in oil prices.
Thirdly, the lowering of the dollar, as well as the continued saga of the housing market and subprime issue. All will put a drag on this market going into at least the first quarter of next year,and probably longer. From and economic standpoint, it doesn't look like the most promising upcoming holiday season Let's try and stay out of harms way and look at only a few issues and make those mostly opportunities when the dollar is weak. Let's slowly get our feet wet with the following initial 3 recommendations of which two are directly tied to the lowering of the dollar. We will add a few more positions to the recommendation list going forward, but a lot of plays will be coming from the SUPPLEMENTAL PLAY list, more than usual, because of the clouds hanging over this current market environment. Profit should always be secondary to risk-aversion and preservation of capital

Prediction: A tough month ahead of the Holidays for the market and the U.S dollar

Recommendations for December:

We are recommending the following put writes for our DECEMBER recommended list.

We are recommending put writes in the following issues:

CELL - Brightpoint, Inc. is a leading provider of outsourced services in the global wireless telecommunications and data industry. The innovative services include contract manufacturing, customized packaging, prepaid and e-commerce solutions, inventory management, distribution and other outsourced services. The customers include leading network operators, e-tailers, retailers and wireless equipment manufacturers

GFI - Gold Fields Limited is one of the world's largest unhedged gold producers with operating mines in South Africa, Ghana, and Australia.

NG - Novagold Resources is a company focused on exploration and development of high quality gold properties in North America. NovaGold is advancing four separate gold deposits in Alaska and Western Canada toward production, including two of the largest undeveloped gold deposits in North America

We are recommending the following specific put writes:

CELL 16.43
SELL DEC 15 PUT =
ULN-XC
Target Price $35.00
Potential Profit(10 x = $350.00

Initial Margin $3,636 10 (contracts)
Return on Investment 9.63%
Cost Basis in Stock = $14.65
Days to Expiration = 40
Stock goes on Watch List Price at: $16.00
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $15.00


GFI $19.13
SELL DEC 17.50 PUT =
GFI-XW
Target Price $45.00
Potential Profit(10 x = $450.00
Initial Margin $4,276 10 (contracts)
Return on Investment 10.52%
Cost Basis in Stock = $17.05
Days to Expiration = 40
Stock goes on Watch List Price at: $18.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $17.50

NG $20.94
SELL DEC 17.50 PUT = NG-XW
Target Price $55.00
Potential Profit(10 x = $550.00

Initial Margin $4,738 10 (contracts)
Return on Investment 11.61%
Cost Basis in Stock = $16.95
Days to Expiration = 40
Stock goes on Watch List Price at: $19.50
STOP EXIT STRATEGY
Close option position if Stock CLOSES less than $17.50

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