Beat The Dart -"Picking Stocks the Old-fashioned Way"

With the extension of Monday's advance, investors have placed their bets before the Fed's decision on interest rates. Don't expect any changes - status quo until February. S&P 500 index rose 3.20 to 1,413.04 . Our suggestion as stated yesterday holds: . "At 1,409.84 Friday's closing price for the S&P 500 Index with a range of 1403.67 to 1414.09 should be the extent of upside." Today's Fed announcement should be discounted and the market trade in a narrow range. What may be interesting - the language used to explain their position? Be as it may, as the market creeps to year end, watch for investors exiting their position, either to take profits or lock-in tax losses. Whatever the intent, volatility will increase and opportunities abound. ... The Achilles' heel for next year will be accelerated mortgage delinquency and foreclosure rates. The impact will be greatest for loaners who provided high risk mortgages to low-income families. The Mortgage Bankers Association reported in September that mortgages foreclosures climbed in the second quarter as higher interest rates and energy prices made monthly payments harder fro some homeowners- that's only half the story. This report received little attention, but now as federal banking regulators are directing financial institutions to properly explain the risks posed to borrowers from interest-only and other nontraditional mortgages, the problem cannot be ignored. Overextended lending institutions will suffer from foreclosures and declining real estate values. Indeed, the mortgage foreclosures will affect the financial health of the banking system and place undue pressure on the equity markets. Based on our projections and industry analysis the worst is still ahead in the housing market, not only from falling home prices, but lack of liquidity to digest the growing foreclosure loan portfolios. As the first stages of foreclosures accelerates, bank regulators are placing more pressure to insure banks embrace "prudent lending practices." Such environment will reduce available loan resources and cause housing prices to decline further. And then, the stock market will catch pneumonia. Will you be ready?

.... "Send Your Picks For Stock Contest .... There's one week left to enter Sunday's Journal's next Investment Dartboard contest. We'll randomly pick six readers that we choose by tossing darts at the listings in the paper. The reader whose stock does best for the six months through June 2007 wins a Sunday Journal toe bag and lifetime bragging rights. The new contest lineup will be announced Sunday, January 7. The rules: - Choose just one stock from the NYSE or Nasdaq markets and send your choice via email to sundaydartboard@wsj.com by midnight December 17, 2006. No entries will be accepted by regular mail. - Include your name, address, daytime phone number, email address and the name of the local paper where you read Sunday Journal. Brokers and other investment professionals can't complete. Neither can former Dartboard contestants. - You must be willing to be interviewed. "

... BEAT THE DART announces modification to the STOCKSMIRF Fantasy Hedge Fund portfolio by changing the total available cash and margin to $5,000,000 from $50,000,000.00. Based on the trading dynamics of the Fund to date the gross values committed had not exceeded $3,000,000. Therefore, to carry excessive "buying power" distorted the percentage gains (losses) on the performance of the fund.

... BEAT THE DART announces new features: ... 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