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February 8, 2007, 7:30am

Even with the S&P 500 index closing slightly above 1,450 (1450.02) 2.02, the underlying sense that the general market is still overbought on a short-term basis remains the major obstacle for a robust rally. Wall Street wanted a lower rate to pump more liquidity into the market. A short-term, irresponsible idea, that would have created panic in the currency markets, reduce the flow of foreign capital and drop the stock market by 25 percent. Fortunately, the Fed's decision to keep unchanged interest rates at 5.25 percent insures that the dollar will have stability against the major international currencies. Indeed, higher interest rates, a weapon against inflation, support a currency by making assets denominated in that currency more attractive to investors. To keep the flow of major currencies into U.S. equities requires a strong dollar. Therefore, interest rate cannot be reduced and in general the markets have adjusted to the fact, but most digest the conclusion before a new buying wave can occur. When the Fed left the rate unchanged, a moderate pullback was expected. Wall Street is still waiting. For now, use the S&P 500 index to flash the next direct for the general market. On January 18, 2007 when the S&P closed at 1430.62, Dartline said: "On a time basis, the S&P 500 must achieve 1,450.00 within the next thirty days. If it does not happen, the likelihood for a contraction is very high, possibly to test 1,345.00." Since the level has been reached - What now? How the index reacts above 1450 should give us a better idea. Use the current posture to liquidate any laggards that a lack a "story" and let's see what a happens.

February 7, 2007, 7:30am .. For the second straight day, stocks looked soft as the lack of catalysts continued to leave investors indecisive and a bit nervous. S&P 500 index was up 1.01 to close at 1,448.00, and insured equities to maintain their upside basis. With Bernanke's silence about interest rates, the financial sector, especially dividend-paying stocks will lead the market higher. Maintain vigilance while managing your portfolio by taking profits, weeding out dead end issues and searching for company's with defensive forward guidance.

February 6, 2007, 7:30am ... ... The S&P 500 index snapped a four-day winning streak yesterday on limited profit taking, and closed at 1,446.99, off 1.40. Wall Street had little reaction to new data that suggests continued economic growth, which could disrupt the Fed's plans to ease the economy this year. The Institute of Supply Management's non--manufacturing index increased more than analysts were forecasting. Since the Fed's decision to hold rates unchanged, most investors consider the move as negative. Don't agree or be preoccupied with trying to figure out which direction interest rates will take. With billion of dollars still on the sidelines, the general market is stronger than most experts believe; just consider the deals being made and considered. Stay focused and consider new commitments based on forward values. On the short side, look for overbought situations, and act accordingly. Maintain flexibility in your portfolio and don't be afraid to take profits or trim losses.

... . Purpose of the arrows: - projecting that DJIA, Nasdaq and S&P barometers will close higher at the end of the day. - projected consolidating barometers with limited directional action. - projecting all three barometers declining for the days. .... Our Message Board and "Contact Us" elements are available at no cost to keep you up-to-date with timely information. Our Fantasy Hedge Fund gives you a concise overview of how investment ideas are executed. All transactions are posted on the Message Board
View From the Bottom - A roundup of the day's performance

February 8, 2007, 4:00 pm. ... Day Trader for the day show no activity. ... Adjustments to the 60-Day Summary list: (1) sold RTEC of $14,800.00; (2) sold ZICA for a gain of $28000.00. Net realized change for the day in Stocksmirf Fantasy Hedge Fund portfolio ("SFHF") is a gain of $13,200.00. and for the month to date a profit of $333,076.00, excluding unrealized gains or losses

February 7, 2007, 4:00 pm. ... Day Trader for the day shows a gain of $7,100.00. ... Adjustments to the 60-Day Summary list shows; (1) sold 25% of call options of CATCY.X for gain of $77,625.00; (2) sold NYMX for a gain of $15,000.00; (3) sold TND for a gain of $15,600.00; (4) sold HGR for a gain of $61,500.00; (5) sold PSDV for a loss of $25,000.00. Net realized change for the day in Stocksmirf Fantasy Hedge Fund portfolio ("SFHF") is a gain of $151,825.00 and for the month to date a profit of $319,876.00, excluding unrealized gains or losses.

February 6, 2007, 4:00pm ... Day Trader for the day shows a loss of $1,174.00. ... Adjustments to the 60-Day Summary list (1) sold SEED for a gain of $11,500.00. Net realized change for the day in Stocksmirf Fantasy Hedge Fund portfolio ("SFHF") is a gain of $10,326.00, and for the month to date a profit of $168,051.00, excluding unrealized gains or losses.

note: Most upsetting was the convolved display of misinformation issued by Scottish Re Group Ltd. (SCT) management and their desire to "steal" the company and offer it at a substantial discount to a special interest predator that had no desire to insure the lowly shareholders receive a fair share of the company's true value. On the 23rd of February, SCT will be given away at less than 25% of intrinsic worth and the collective shareholders will be further deluded. However, since the "new" investors will have a major equity stake, they're major means to enhance value would be to insure the stock value appreciates. From now to the 23rd, management will "bad mouth" the company to push the stock closer to $4.00 per share as a means of insuring the transaction becomes effective. It is difficult to believe that such a tactic had been successfully executed.

.For the fourth calendar quarter of 2006 on the SFHF portfolio. Total performance, including unrealized gains, was $1,027,724.90 on weighted capital of $4,832,125.72, representing 0.2127%. for the period ending December 31, 2006.

*** based on the weighted portfolio value adjusted daily.

 
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best idea

.. . February 8, 2007

... 3:19pm ... BUY Corautus Genetics Inc. (VEGF) - last $0.499. Merger with privately-held Via Pharmaceuticals Inc. (VIA) will create a drug development company focused on compounds that target inflammation in the blood vessel wall to treat cardiovascular disease. The lead product VIA-2291, a small molecule drug, is under Phase II clinical trails. Under the merger agreement VIA shareholders will own 76.4% and existing VEHF shareholders 23.6%, plus $12 million in cash. Therefore, the dilutions would increase the outstanding shares to 78 million and projected $0.40 book value. Also consider that VEHF had failed to meet NASDAQ Capital Market continued listing requirements, which would force the stock to trade on the pink sheets. As a HIGH RISK idea, VEHF should be consider only with the likelihood of losing most of the committed capital if the company fails to bring VIA-2291 to commercial fruition. note: Consult with your investment adviser or other professional before considering this suggestion.

... 1:58pm ... BUY DIVX, Inc. (DIVX) - last $23.23. DIVX is becoming the standard for Internet video with its compression-decompression software library. With the recent content partnerships in the the U.S. and international markets, the company should rapidly grow revenue and earnings. After the close DIVX may exceed analyst 4Q estimates of $0.09 per share and 12-months of $0.46 per share. BUY for near-term advance with EXIT POINT at $27.50. Longer term, DIVX is a perfect takeover target for Goggle, Microsoft or Amazon.

Ticker
Last Trade
Direction
Entrance Point
Exit Point
DIVX
February 8, 2007
$23.23
$27.50


P/E Ratio: 104
Forward P/E Ratio: 39
Float Shares2: 23 M
Company Guidance: *
Recommendation3: Initiated as market perform by Avondale Partners / Overweight by JP Morgan/ Buy by Canaccord Adams
Support4: near-term 22.90
Resistance5: 311.99
Under Accumulation6: yes
Under Distribution7: limited

 
today's action

... DAY TRADER

.. February 8,2007, 7:30am. No action.

February 7, 2007... 1:01pm .. SELL MEDI - last $30.92. Take loss.... 12:37pm ... Transfer NAV to 60-Day Summary list since the time horizon is longer than a day.... 10:33am ... BUY MEDI - last $30.65.... 10:32am ... COVER SHORT on MEDI - last $30.60.... 10:16am .. . SHORT Navistar International Corp. (NAV) - last $46.93. Delisting placing pressure on stock.... 10:09am ... SHORT Medimmune Inc. (MEDI) - last $31.04. Under further distribution after 8.3% decline. Macd contracting as volume increases.

February 6, 2007... 3:52pm ... COVER SHORT ON POZN - last $17.01.... 2:04pm ... SELL #2 QSII - last $41.1026.... 1:47pm ... COVER #2 SHORT ON RATE - last $43.74.... 12:32pm ... SHORT Pozen Inc. (POZN) - last $16.95... 12:16pm ... SHORT #2 ON RATE - last 43.90.... 12.06pm ... COVER SHORT ON RATE - last $43.55. Take profit.... 11:46am ... SELL enter position of ADBE - last $38.15. Under systematic liquidation as macd deteriorates. Take loss.... 11:40am ... SHORT Bankrate Inc. (RATE) - last $44.00. At technical inter day resistance after running 5.21 points.... 11:04am ... BUY #3 on ADBE - last $38.29.... 10:24am ... BUY #2 on QSII - last $41.03.... 10:19am ... BUY #2 on ADBE - last $38.64.... 9:58am ... SELL QSII - last $40.84. Unable to hold support as macd weakens. Take loss.... 9:27am .. BUY Quality Systems (QSII) - last $40.90 [opened $41.00]. Oversold for instant up move. BUY NOW..... 9:10am ... BUY Adobe Systems Inc. (ADBE) - last $38.84 [pre-market] . [opened $39.08] BUY at the market for quick move to the $39.50 to $40.20 range. Under accumulation with limited downside enhanced by recommendation.

February 5, 2007... 12:59pm ... COVER SHORT #3 on RMBS - last $22.42. Take profit.... 12:51pm ... SELL CBRX - last $1.5299. Unable to determine direction. Take profit.... 12.07am ... SHORT #3 on RMBS - last $ 22.95. Failed to hold while volume contracted.... 11:29am ... COVER SHORT #2 on RMBS - last $22.26. Take loss.... 10:49am .. SHORT #2 on RMBS - last $21.60.... 10:34am ... COVER SHORT on RMBS - last $21.55 Improved macd. Take profit.... 10:27am ... BUY Columbia Labs (CBRX) - last $1.42.. Oversold and due to 'dead cat' bounce.... 10:12am ... SHORT Rambus Inc. (RMBS) - last $22.01. After morning's gain RMBS found resistance to extend advance.

.... From the 60-Day Summary list

. February 8, 2007

... 11:26am ... SELL ZI Corporation (ZICA) - last $2.48. On the first revisit, ZICA was suggested at $2.34 on 02.02.07. Take profit in weak stock market. Plan to revisit below $2.34.

... 9:31am .. RTEC opened at $15.81,

... 7:30am. SELL Rudolph Technologies Inc. (RTEC) - last [after hours] $16.05. RTEC reported Q4 below consensus, guidance Q1 EPS and revenue below consensus. SEll at the opening and take loss.

February 7, 2007... 2:51pm ... SELL Psivida Ltd. (PSDV) - last $1.63. Originally suggested at $1.88 on 12.26.06. Take loss - disappointed with timeframe on purported announcement for drug partnership... 2:47pm ... SELL Hanger Orthopedic (HGR) - last $10.25. Originally suggested at $9.02 on 01.31.07. Take profits with intent to revisit.... 2:47pm ... SELL Thomas Betts (TND) - last $49.67. Originally suggested at $48.89 on 02.05.07. Take profit based on S&P 500 index failed to maintain 1450.... 2:46pm ... SELL 25% of the call options in CATCY.X - last bid $8.60. Originally suggested at $2.85 on 01.24.07. Take profit ... 12:26pm ... SELL Nymox Pharma (NYMX) - last $5.55. Not confident that the new drug candidate is time sensitive and may require a longer period to attract a partner. Take profit and watch this one from the sidelines until further notice.

February 6, 2007.. 2:12pm ... SELL Origin Agritech Ltd. (SEED) - last $9.05. Originally suggested at $8.82 on 01.29.07. Take profit with view to revisit later.

February 5, 2007... 1:29pm ... SELL call options in CATCY.X - last bid $7.31. Take profit on 20% of remaining position.

February 2, 2007.. 3:34pm ... SELL Scottish Re (SCT) - last $4.66. Reluctant liquidation with intent to revisit later. Taking major loss.... 12:20pm ... SELL Call Options on CATCY.X - last bid $8.00. Originally suggested at $2.85 on 01.24.07, the underlying common stock (CAT) appears to have consolidated. Reduce call options by 10% of outstanding position.... 10:52am ... SELL Asyst Technol (ASYT) - last $6.38. Failed to perform as expected.... 10:40am ... SELL ZI Corporation (ZICA) - last $ 2.38. Originally suggested at $1.84 on 01.11.07. Take profit to revisit later.... 10:27am ... SELL Ruddick Cp (RDK) - last $27.81. Take profit.... 10:18am ... SELL Perrigo Company (PRGO) - last $17.90.. Take profit. ... 9:37am ... SELL Acceltys Inc. (ACCL) - last $6.18. Earnings failed to give ACCL traction.

_____________________________

Net liquidation value of Stocksmirf Fantasy Hedge Fund (SFHF) portfolio for the period ending 01.31.07.........,....... . $4,217,150.00

REALIZEDGAINS LOSSES FOR THE MONTH OF OCTOBER '06 in the SFHF portfolio ........................ ......... $277,601.00

REALIZED GAINS LOSSES FOR THE MONTH OF NOVEMBER '06 in the SFHF portfolio. ...............................$338,049.00

REALIZEDGAINS LOSSES FOR THE MONTH OF DECEMBER '06 in the SFHF portfolio ...... ......................... $371,020.00

REALIZEDGAINSLOSSES FOR THE MONTH OF JANUARY '07 in the SFHF portfolio .....................................$615,500.00

REALIZEDGAINSLOSSES FOR FEBRUARY '07 TO DATE in the SFHF portfolio...................................333,076.00

UNREALIZED GAINS (LOSSES) in the Stocksmirf Fantasy Hedge Fund portfolio.

February 8, 2007, 4:00pm ....089,832.03

February 7, 2007, 4:00pm .... 069,394.42

February 6, 2007, 4:00pm .... 137,872.92

February 5, 2007, 4:00pm ... 203,529.84

February 2, 2007, 4:00pm ..... 284,254.96

February 1, 2007, 4:00pm ......108,174.00

\_____________________________________

Prior Dartline summaries ... February 5, 2007, 7:30am. The general market tone was cautions, perhaps a bit nervous. Not uncommon during a period when consolidation seem overdue after a steady advance since October '06. Earnings season remains in full swing, and usually bullish strictly on the psychology of investors desiring positive results. Last week they turned uneasy, even anxious that a significant correction would began if quarterly earnings failed expectations. Indeed, Wall Street is aware that earnings growth will be slower in the immediate quarters ahead. Dartline projects that the next two quarter operating profits for the S&P 500 stocks in aggregate may be off by 10%. One would expect that the stock market would decline 10% to compensate for the earnings contraction? Don't panic! For the time being, 1450 is still upside resistance, while 1410 support. Within this range there are opportunities to participate either long or short while remaining consistent to enhance capital without inflecting critical risk. A classic pattern has developed during the last two weeks as traders were simply looking for an excuse to sell, take profits and wait for the market to fall-off. This attitude effects technology stocks and may account for their recent weakness, especially with earnings guidance. Overall, earnings reports were reasonably good; not blowout by any means, just good enough to keep most investors in the boat. Yet, the general response was disappointing. Possibly because the economic data provided further evidence that economic growth remains solid to further reduce fears of a recession or even a sharp slowdown? Thus, the trend in the data and the steady inflation numbers have reduced expectation of any Fed rate cut in the first half of 2007.

February 2, 2007, 7:30am Market liquidity was the main engine to the continuing advance .S&P 500 index was 7.70 to close at 1,445.94. Such momentum had brushed aside January's ISM index which unexpectedly fell to 49.3%, indicating contraction, and ran counter to a Fed directive that showed firming economic growth. The disappointment initially left investors confused and questioned the validity of Wednesday's rally. Again, Wall Street failed to understand that with Fed interest rate unchanged, international stability marked by a moderating dollar and low inflation meant expanding equity values. Confirming the Fed policy was the Commerce Department's report before yesterday's bell that inflation pressures had eased. The core PCE deflator - the Fed's favored inflation measure - was only up 0.01%. While the January data left the year to year increase steady at 2.2%, and a bit higher than Fed would like, the rate of increase slowing over the last three months offered added relief on the market's current focus. Remain progressive, commit funds into stocks which will participate in the upward momentum providing the S&P continues within its technical parameters. At 1450 would be upside resistance and a test appears at hand. Use today to reconcile your positions, remove lagers and take profits on issues that may appear overbought or technically suspect.

Prior Best Ideas ... February 7, 2007...11:06am ... BUY Rudolph Technologies Inc. (RTEC) last $16.55. RTEC provides process control equipment for thin film measurement and macro-defect inspection for integrated circuit manufactures. New product traction continues to record increase levels of revenue and earnings. Increasing gross margins will show on the bottom line as RTEC strengthens financials as the August Technology merger becomes fully integrated, and be confirmed after the close with earnings and revenue gains. With a true float of 19.3 million shares and strong institutional support, RTEC is positioned to be a big winner, especially with forward P/E at 13.92 times earnings. Technicals have stabilized with near term support at $15.95, while resistance at $20.15. BUY as mid-term limited risk position with EXIT POINT at $25.70 or 17 times projected P/E.... 9:33am .. HIMX opened at $5.09. ... 7:30am ... BUY Himax Technologies Inc. (HIMX) - last $5.01 [after hours]. HIMX designs, develops and markets semiconductors that are critical components of flat panel displays. Its recently closed acquisition of Wisepal Technologies Inc., a fabless IC design company specializing in LCD Driver ICS for small and medium sized panels, will be immediately accretive. Management believed the purchase of 10 million of the company's ADSs (American Depositary Shares) was taking advantage of unrealized value that existed in their common stock and "cheap" at $5.00 per share. HIMX is considered a near term growth play with EXIT POINT at $8.10, representing 14 times forward earnings.

February 6, 2007... 3:06pm ... BUY Nymox Pharmaceutical Corporation (NYMX) - last $5.40. NYMX has a primary drug known as NX-1207 for the treatment of benign prostatic hyperplasia, which can be a blockbuster application, and should receive attention from a major drug company. Moderate financials, but above average technical staff, NYMX is consider a mid-term high speculation. Yet, the company may have a significant upside and warrants the risk. However, consider the possibility of NX-1207 may have a long term horizon and the company may not have the resources to complete testing. With a float of 14.57 million shares and insider controlling the stock ownership, NYMX may be a takeover play. note: consult with your financial professional before purchasing NYMX because of the high risk component of the decision. 1:04pm ... SELL IVAC - last $22.75.Lack conviction that IVAC can accelerate in value in near term. SELL and take profit ahead of earnings .... 10:18am ... BUY Intervac Inc. (IVAC) last $22.50. IVAC a maker of equipment to build computer disks has substantial increased backlog to enhance values going forward. Excellent management and strong financial statement offers mid-term potential to move into the $25-$27 range.

February 5, 2007....2:54pm ... BUY Thomas & Betts Corporation (TNB) - last $48.89. Originally suggested as a a BUY with limited order on 02.02.07 at $48.20. Change to market order - consider reason as posted below under Prior Best Ideas.... 7:30am ...BUY Veeco Instruments Inc. (VECO) - last $19.24. VECO designs, manufactures, markets and services equipment used by manufacturers in the data storage, semiconductor, diode and wireless telecommunication industries. As a leading supplier of atomic force microscopes and nanotech process equipment, VECO generates 40% of its revenue and represents its fastest growing markets, especially in Asia. At 17 times forward earnings VECO is a value play with excellent mid-term growth. Management has prudently executed on its business plan and the potential has not been fully recognized. BUY as a limited risk investment with no EXIT POINT determined

February 2, 2007... 2:53pm ... SHORT Pitney Bowes Inc. (PBI) - last $48.10. With earnings due Monday, PBI will show revenue improvement, but may surprise to the downside on guidance. However, the real issue is the $1.1 billion payment immediately due in tax liability from the Capital Services business sale. On a technical basis, PBI is at resistance with little room for further gains above $48, while on the downside support develops in the $40-$42 range. PBI is a prudent short with limited risk. EXIT POINT is set at $42.... 11:28am .. BUY ZI Corporation (ZICA) - last $2.34. Had ZICA as a sell at $2.38 under 60-Day Summary and take profit. However, improving maca and level of buying interest suggests a momentum play. BUY with no EXIT POINT determined.

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1 Based on market conditions and other factors previewed in Best Ideas, changes can happen at any time. Accordingly, continue to log-in on a regular basis to maintain maximum performance.
2 Float - Available stock position in the hands of the general public of the total outstanding.
3 Institutional recommendations during the last 30 days.
4 Under technical analysis the term 'support' refers to a point in the stock's price that is immediately maintained and usually suggests an entrance point to purchase.
5 Under technical analysis the term 'resistance' suggests that a point in the stock's price has been reached and further gains are temporarily unlikely.
6 Under Accumulation occurs when abnormal buying in a particular stock takes place, and suggests that inside information may be at play and anticipates future price appreciation.
7 Under Distribution suggests that insiders and others are stealth fully selling on the belief that lower stock prices will occur.
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