Stockscom Report for Sunday July 1 2007
Publisher: Colin Alexander      Editor: Ken Wilson (450-691-4617)
Subscriptions and Administration: Pierre Fichaud (toll-free: 866-487-9711)

· Stocks slide and we turn cautious  weakness continues

Technically Speaking

Little changed over this past week with the broader large cap markets  the Dow Jones and the S&P 500  managing only one solitary day where index prices finished higher. The Nasdaq twins surpassed that mark by one allowing for two days of higher prices. The midweek rise was significant though since it was substantial in value if not in volume. Overall, markets appeared to be digesting the heavy losses from the previous Friday and the general increase in downside risk.

Some of the trading activity over the course of this last week could be attributed to mutual fund window-dressing as both the month ended as well as the second quarter.

Interestingly, not even the Federal Reserve’s decision to stand pat on interest rates had any meaningful effect on the markets. The decision to leave the overnight rate unchanged at 5.25% was met by a collective yawn as little changed in the Fed’s policy announcement summarizing their outlook on the inflation risk. However, we should point out that reactions to Fed decisions can often occur a couple of days after the market has had time to digest the news.

The key factor for now is that these indexes were, with one exception, able to remain above their June lows. The exception being the S&P 500, which touched down very briefly Wednesday a few points lower than the previous low before rebounding strongly. In particular, the Nasdaq twins were comparatively stronger all week as they remained well above their respective June lows and were not seen to be threatening this important level.


New Buy Recommendations (in order of preference):

Robbins & Myers Inc. (RBN)  This firm’s strong results and improved guidance announced Thursday afternoon propelled its stock on Friday to a new all-time high. On the daily chart, the impressive gap combined with the breakout from congestion between $35 and $47 signals that a new leg higher has begun in the near term. We see this move as well over longer terms such as the weekly chart and the monthly chart depicts a very broad inverted head and shoulders pattern over many years that is now being concluded.

SJW Corp. (SJW)  SJW reached a low for the 2007 year a week ago Friday but bounced back strongly to settle just short of reversing the past two months’ stock performance on higher than normal volume. This low was supported well when viewed on the weekly chart as the highs from the second half of 2005 and the first quarter of 2006 approached this level. On the monthly chart, we see that the low also corresponded with the 25-week moving average and again the unusually high volume accentuates the bounce in this latest month.

New Short Sales  

None.

Stock Positions to Sell/Exit:

We were exited from several positions on our stops this past week, an occurrence that we don’t find surprising given the overall weakness and volatility in the market at this time. Moreover, we’ve added a couple of sell recommendations one of which relates to the steel industry while the other relates to the financials; sectors that are currently under substantial market pressure.

The re-pegging of stop-loss prices last week has left many other stocks in tight positions that could result in additional exits over the coming days and weeks.

Portfolio Comments:

New stops have been added to the list while others have been modified. Those that have blanks are being carried unstopped for now. Please see our complete list of stops in the table below.

List of Current Stock Recommendations:

Action Ratings. The following is the legend for designating immediate action
for our stock recommendations. The first is B, meaning the stock is timely
to buy but the case for doing so right here is not overwhelming. Either the
stock may have gotten ahead of itself and may be vulnerable to a retracement or
else the stock has been performing disappointingly but may simply be
regrouping. B+ and B++ indicate stocks for which there is a technical case
to buy now, with plusses adding weight according to how many there are, up
to a maximum of two. Stocks rated H are ones to hold, awaiting confirmation
to buy more or to sell. SELL, of course, means what it says. It seldom pays
to override this designation. In the case of stocks held short, the rating is S where positions should be retained. S+ and S++ indicate stocks for which there is a technical case to add to the positions with plusses adding weight similar to long positions. The maximum number of plus signs is 2.

N.B. There are no longer restrictions on foreign stocks held in Canadian retirement savings accounts.

        
 

Date of Entry	Name	Symbol	Entry Price	Current Price	Stop	Action Rating
04/30/07	Allied Waste Ind.	AW	13.37	13.46	13.00	B
06/11/07	Amer Sci & Eng	ASEI	56.25	56.85	50.00	B
04/09/07	Cameco Corp.	CCJ	46.22	50.00	50.00	SOLD
12/26/06	Cheniere Energy	LNG	29.15	38.79	37.00	B
06/18/07	Cleveland-Cliffs	CLF	81.01	74.96	75.00	SOLD
06/25/07	Columbus McK.	CMCO	31.15	32.20	28.00	B
05/29/07	Dycom Industries	DY	29.32	29.98	28.00	B
06/11/07	Euroseas	ESEA	14.92	14.26	13.35	H
03/26/07	Fronteer Dev’t Grp	FRG	12.40	11.90	11.00	H
05/21/07	Gerdau Ameristeel	GNA	15.25	14.63	14.00	SELL
11/13/06	Goodyear Tire	GT	18.00	34.76	31.00	B
03/12/07	Grant Prideco	GRP	46.75	53.83	52.50	B
05/07/07	Intercont Exch Inc.	ICE	138.48	147.85	140.00	SELL
06/18/07	Opsware Inc.	OPSW	10.06	9.00	9.00	SOLD
04/30/07	Portfolio Rec. Ass.	PRAA	56.17	60.02	53.80	B
04/23/07	Synalloy Corp.	SYNL	36.39	40.00	40.00	SOLD
03/19/07	Tsakos Energy Nav	TNP	49.50	69.91	62.00	B
03/26/07	Vasco Data Sec’y	VDSI	17.92	22.76	20.00	B

New stops in BOLD
* Stop on a closing basis
** Buy if above entry price
*** Split-adjusted price