Entertainment-Blue Chip Stock Holdings End of Year

Entertainment

McDonalds Symbol: MCD

http://www.aboutmcdonalds.com/mcd

Rationale: McDonalds builds ugly buildings worldwide, advertises “FAT food” to kids, and serves a terrible product.

Everything about their model of “food crime” is perfect, and we are a long-term holder of both stock, and call.

Their foray into “designer coffee” concerns us, and is the only negative on the stock. Buy grease and little toys.

Guidance: We bought McD in March 2009, at 50.75, right near the bottom of the year to date. With a 3.43% yield and a firm understanding of their market, we’ve also returned up to 80% on recent call options, which expire in January.

MCD is a strong buy any time under 57.00. Use a 25% trailing stop loss

Disney Symbol: DIS

http://corporate.disney.go.com/careers/who.html

Rationale: Disney is entertainment. They do it right. As America comes from recession entertainment will prosper, and Disney is the perfect “American Dream” company. A very conservative investment long term.

Guidance: We have owned Disney since 2007. We bought more at 6800, doubling our position. Our average cost for most traders is $12.00 to $13.50 a share.

Use a 25% trailing stop loss.

Smith and Wesson Symbol: SWHC

http://www.smith-wesson.com

Rationale: America believes in guns. It’s like entertainment to me, as we must protect ourselves, while we grow fatter. This is my sin stock. Sales and earnings are bound to go up as America arms itself by the TV.

Guidance: It concerns me that SWHC has not grown with the recent market upswing, but it’s a low priced stock with good potential.

Use a PNF stop loss on SWHC, bought at 4.96 average, of 3.50. We’re seeing a double bottom Breakdown that is holding, and either time for a shift in position, or stop loss.

YUM Brands Symbol: YUM

http://www.yum.com/

Rationale: Pizza Hut, Taco Bell, and KFC-it’s simple. Terrible products, horrible for you, and loved worldwide. We’re impressed with their international expansion. They control costs well. We play this as a long-term stock, and put and call.

YUM is often replaced in our portfolio for extraordinary gambling, video, or other entertainment companies.

Guidance: We bought YUM originally in January 08 at 32.00 and doubled our position at the market bottom when we saw 23.00, for an average price of 26.00

Currently trading at 35.71 we believe YUM is strategically in the sweet spot for international development, selling our food slop to others.

Precious Metals Blue Chip Holdings End of Year Update

Real Money Commodities

Spyder Gold ETF Symbol: GLD

http://www.spdrgoldshares.com/s ites/us/value/

Silver Standard Resources Symbol: SSRI

http://www.reuters.com/finance/stocks/overview?symbol=SSRI.W&rpc=66

or we often use Silver (SLV)

Canadian Exchange Fund Symbol: CEF

http://www.centralfund.com/

Rationale: All three ETFS/funds invest in core commodities and are excellent barometers for the price of Gold or Silver. We trade both options and long trades on Gold and Silver.

CEF invests in actual gold and silver bullion and is a very underpriced, not yet known, core way to invest in Gold and Silver.

We believe the world should be, and will be again, on the Gold Standard.

AngloGold Ashanti Ltd Symbol: AU

www.anglogold.com

The world’s largest gold mining company, value priced as of 10/1/09

Rationale: Gold is the strongest asset in the world, and more nations are beginning to hoard, and to value our actual debt to the Gold Standard the value of gold should be between $6200 and $7333.00 per oz.

Guidance:

Purchase Price Symbol Avg. Cost Status

55.12 GLD 55.12 2/3 of position sold at up to 60^ % profits by 10/1/09. Hold 1/3 of existing buy position taken 3/17/07 and on.

40.00 AU 40.00 Began buying 11/09

7.40 CEF 7.40 Began buying 11/08

CEF is still recommended as a superb hedge in ACTUAL gold and silver bullion, backed by the Canadian dollar. It’s a sleeper fund that holds gold and silver.

11.50 SLV 11.50 Began buying 9/08

SLV is a core commodity that is less expensive than Gold, and will share in the precious metal boom.

13.00 SSRI 13.00 Began buying 3/09

SSRI shows more stability yet volatility than SLV for playing options and is easier to track.

AU we consider a superb mining play on Gold that is undervalued and we began buying 11/09.

CEF we consider a slower, but better long-term investment vehicle for Gold and Silver than any other.

We believe Gold commodities can reach $3000 per oz.

Industrial Blue Chip Holdings End of Year Update

Industrial

KHD Humboldt Symbol: KHD

http://www.khdhumboldt.com/phoenix.zhtml?c=92949&p=irol-irhome

Rationale: Many of our traders still own this in our speculative portfolio, bought at 7.40 range

We recommend buys at any time this stock is available at 9.00 or less, long-term hold.

Guidance: KHD was a seriously undervalued industrial behemoth last year, just now catching momentum and almost doubling in value.

Use a 20% trailing stop loss on KHD, or a pnf stop loss at 8.00

L-3 Communications Symbol: LLL

http://www.l-3com.com/

Rationale: This is Defense Company on the cutting edge of electronics and technology, ripe for $100 a share, and more ripe for takeover.

Waste Management Symbol: WM

http://www.wm.com/

Rationale: Bill Gates owns 16 million shares. The largest trash recycler and trash Management Company in the world.

Guidance: We bought 11/23/09 at 32.30. Use a tight stop loss of a pnf support line at 27.00, or a 20% trailing stop loss

Republic Services, Inc Symbol: RSG

http://www.republicservices.com/

Rationale: Warren Buffet has built a 3.62 million-share portfolio in the #2 trash recycler.

Guidance: We own with a stop loss at 23.00 using PNF, or recommend a 20% trailing stop loss. We purchased this position on 11/23/09 at 27.40

Healthcare Blue Chip Stock Holdings-End of Year Update

Healthcare

Shares Dow Jones U.S. Healthcare Sector Index Fund Symbol: IYH

http://www.reuters.com/finance/stocks/overview?symbol=IYH.W&rpc=66

Rationale: Healthcare is “it”. We follow this sector for long term holds, and for puts and calls.

Guidance: On Watch. Do not hold

United Healthcare Symbol: UNH

http://www.unitedhealthgroup.com/main/default.aspx

Rationale: United is a terrible company that I hate immeasurably. They’ve destroyed healthcare, and are one of the largest Medical Criminal Corporations out there.

We follow them as a stock, and puts and calls.

Right now we’re waiting to see how the healthcare bill plays, before we even think more of this sector.

On Watch. Do not hold

Health Management Systems Symbol: HMSY

http://www.hms.com/

Rationale: This Company provides cost management services for government sponsored health programs. 80% of its revenue comes from Medicaid. It’s involved in 37 state Medicaid clients, and 100 Medicaid managed care plans. With our current health insurance situations it’s a money machine.

Guidance: We bought this 9/3/09 at 37.58. On 11/30/09 it’s at 44.85 and remains a buy. Use a 25% trailing stop loss on this stock, and pay to highs of 47.00. It has just broken a double top and if it can hold has strong upside potential around healthcare.

Banking Blue Chip Holdings End of Year Update

Banking

Wells Fargo & Co. New Symbol: WFC

https://www.wellsfargo.com/

Rationale: The best and brightest in the banking industry. We recently played calls on this for 50% to 64% profits.

We often watch this position for put and call, around the sector.

Guidance: We initially began recommending WFC as a call option, returning 60%^ in the summer of 2008. We also took a core position in Wells Fargo at that time at 15.50. WFC has doubled during this time and most traders have taken at least 1/3 of their position off the table at a doubling.

Stop Loss: 20% trailing stop loss, or PNF support lines at 20.00