Retail/Distribution Blue Chip Holdings-End of Year, sect 1

Retail/Distribution

Prestige Brands Symbol: PBH

http://www.prestigebrandsinc.com/

Rationale: Prestige Brands, Inc. markets well-recognized, branded consumer products in over-the-counter healthcare, household cleaning and personal care categories.

Guidance: On 9/14/09 we recommended and bought PBH at 7.16. Use a 20% trailing stop loss on this position. Pnf chartists may take a larger second buy, however, and defined support lines. This position will do well over time

Wal Mart Symbol: WMT

http://walmartstores.com/

Rationale: This is another company we hate. They import over 90% of their non-food products, put them in large unattractive warehouses, and sell the hell out of them. This is the greatest distribution company in the world. They’ve just opened an “all Hispanic” Wal-Mart store in Texas, testing regional ethnic distribution.

This company has revolutionized the blight of our small downtowns, while creating a distribution model that has “created the cost plus” mentality of our economics.

One cannot be part of it. We trade the stock, and options.

Guidance: New subscribers should look for entry in WMT at 51.00 or less. Long-term subscribers bought this in 2007 at 44.00 and doubled their position with us at the October 08 market bottoms, averaging our cost to 45.33. Currently at 55.00 we suggest a trailing stop loss of 20% or a pnf chart stop loss at 48.00

Berkshire Hathaway B Shares Symbol: BRKB

http://www.berkshirehathaway.com/

Rationale: This is Warren Buffet. The greatest investor of all time. It’s a superb long-term investment, at bargain prices.

Guidance: One of our largest holdings in our CORE investments BRKB we first bought in 8/05 $2013.00 and doubled our position again in October 2008, and have recommended added to the stock several times since then on dips. We now have an averaged price of $2205.75.

We consider this one of the safest long-term investments, and a long-term hold.

Agricultural Blue Chip Holdings End of Year Update

Agricultural

Caterpillar Symbol: CAT

http://www.cat.com/cda/layout?m=8703&x=7

Rationale: CAT is agriculture. It is the big machinery to move the world. CAT follows both agricultural and industrial development. We play it short/long, and puts and calls.

Guidance: Long-term subscribers bought this with us at 42.00 in March of 2008 and added to our position in October 2008. Our averaged cost is now 30.66. With the stock trading at 59.05, and dividend producing, traders should have sold at least 1/3 of their positions.

Use a 25% trailing stop loss, or a PNF stop loss at 42.00

Powershares DB Agricultural Fund ETF Symbol: DBA

http://dbfunds.db.com/dba/index.aspx

Rationale: This ETF mirrors agricultural/farm products well and we trade as both put and call.

Guidance: Not currently trading

Intrepid Potash Symbol: IPI

http://www.intrepidpotash.com/

Rationale: What Potash is: http://en.wikipedia.org/wiki/Potash

We play this both long term at times, and are new to trading to this position, replacing another Potash manufacturer.

Guidance: We bought IPI 7/19/08 at 26.00 and doubled our position near market bottoms at 18.00. Our average cost on IPI is 20.66. IPI has just passed a double top breakout on a PNF chart and we continue to hold.

Use a 20% trailing stop loss on IPI, or a PNF Stop at 27.00, to preserve profits.