TAKING ALMOST 900% PROFITS ON $PPC

We have been long on $PPC with an average of $0.98. We still think that the stock has room to go higher, but we will stick with the discipline of ZYX Change Method and exit the trade right here at $8.99.

We will reenter the trade again on dips if ZYX screens are supportive.

WE ARE SHORT ON $MHS FROM $64.50 AND $ESRX FROM $88.60. WILL ADD ON SPIKES UP.

UPDATE ON OUR $PPC POSITION

Co announced that it and six of its subsidiaries have emerged from Chapter 11 bankruptcy protection after a 13-month restructuring. In connection with its emergence, the company has entered into a $1.75 bln exit credit facility. The exit credit facility is secured by substantially all of the company's assets. Under the plan of reorganization, all creditors and its debtor subsidiaries holding allowed claims will be paid in full as soon as practicable. In the case of bondholders, payment will be made either through reinstatement of the bonds or in accordance with the holder's previous election of a cash-out option. Under the terms of the confirmed plan, all of the shares of the company's common stock outstanding immediately prior to the effective date of the plan were cancelled and converted on a one-for-one basis into the right to receive new shares of the reorganized company. The reorganized company issued 64% of its common stock to JBS USA Holdings, Inc. in exchange for $800 mln in cash. The remaining 36% of the common stock of the reorganized company was issued to stockholders existing immediately prior to the effective date. Proceeds from the sale of the common stock of reorganized Pilgrim's Pride to JBS are being used to fund cash distributions to unsecured creditors. The reorganized company's common stock will begin trading tomorrow on the New York Stock Exchange under the symbol "PPC."

SHORT SELL $PAR

The stock has run up on speculation in Barron's that the stock is a take over candidate. We do not believe that there are any buyers for this stock. Aggressive accounts may consider a short right here around $11.85 for a short term trade. Of course, there is a possibility we are wrong and the stock is taken out; there fore conservative accounts should not follow this recommendation.

All of ZYX Change Method Screens are supportive of this trade.

TRIGGER FOR SHORT SALE ON PHARMACY BENEFIT MANAGERS, $MHS, $ESRX

On Nov5, 2009, we wrote on this blog, "The next question is what to do with $MHS and $ESRX stocks. $MHS and $ESRX are clearing capturing market share by being aggressive on price. There is the age old question, how do higher volumes at lower margins work out. At this time we do not have enough data to construct a model that we can be confident of. However, we can not run away from the simple twin realities. First the Wall Street is uniformly bullish on these stocks and believes there advantage will continue forever. Second if Obama's health care IT vision comes true, and all medical records are electronic and everyone in the business is interconnected, the next step is for the technology to disintermediate the likes of $MHS and $ESRX. In a nut shell, we agree with the Wall Street in the intermediate term but see Wall Street's bullishness as an opportunity to short these stocks in the very long term."

Since then the stocks have moved up as the Senate bill failed to include the provisions that would have adversely affected these stocks. This up move is now providing an opportunity to start scaling in short positions in MHS and ESRX tomorrow on spikes up.

ZYX Change Method requires a trigger event to initiate an entry. Caterpillar is providing the trigger in the news that it will directly steer its 120,000 employees to Walmart and Walgreen bypassing PBMs. The most important part of the news is complete price transparency. This flies in the face of business model of PBMs that depende on opaque pricing. Running this news through ZYX Change Method Screens shows that the probability of large employers either following Caterpillar or demanding price transparency from PBMs is very high.

MERRY CHRISTMAS

Merry Christmas to all. I am especially thankful to those who have followed The Arora Report, encouraged me, sent me emails, retweeted and helped with further refinement of the ZYX Change Method.

TAKING ADDITIONAL PARTIAL PROFITS ON GOLD $GCZ9 RIGHT HERE AT $1090.8 AND ON $ABX AT $38.28, $GLD, $GC_F

WE WILL MAINTAIN OUR SHORT POSITION ON $WAG (WALGREEN)

We have substantial gains in our $WAG position. $WAG reported earnings this morning. Stock was up $2 pre-market and now it is down over $1. Based on a review of earnings, our thesis has not changed.

TAKE MORE PARTIAL PROFITS ON $ABX RIGHT HERE AT $39.85 AND TIGHTEN THE STOPS ON $ABX AND ALSO ON $GCZ9

TAKING PARTIAL PROFITS ON GOLD $GCZ9 RIGHT HERE AT $1111.6 $GC_F

$BTIM (BIO TIME)HAS HIT OUR TARGETS

Exit the entire short position right here at $4.25.

LOCK IN PROFITS ON $BTIM

As per our earlier tweet, we are short on BTIM from $5.17. Aggressive accounts may want to lock in some profits here at $4.75. Next targets are $4.61 and $4.31

EXITED $APOL WITH A VERY NICE PROFIT AS THE PROTECTIVE STOP HIT AT $55.66

700% PROFIT ON PGPDQ (PILGRIM PRIDE) AND STILL HOLDING AS A MAJOR MILESTONE IS REACHED

Our average is $0.98 and our target is around $10

The United States Bankruptcy Court for the Northern District of Texas has approved the amended joint plan of reorganization of the Company and six of its subsidiaries that are debtors and debtors in possession in the Chapter 11 cases pending before the court. Pilgrim's Pride said that it expects to emerge from bankruptcy before the end of December.

The stock has moved up to $7.10

TAKE PROFITS IN $VCI

As per our morning tweet, we are long on VCI from $17.50. Now it is time to take profits right here at $19.14 and exit the position. Our fund flow screen has turned negative.

TIGHTEN STOP ON $APOL TO $55.66 TO LOCK IN SUBSTANTIAL PROFITS

CONSIDER EXITING $HEB (HEMISPHERX BIOPHARMA) WITH LARGE PROFITS RIGHT HERE AT $0.61

CONSIDER TAKING PARTIAL PROFITS ON $ABX RIGHT HERE AT $40.84

CONSIDER TAKING MORE PARTIAL PROFITS ON GOLD, $GCZ9 AROUND $1131

SHORT SELL ON $NVDA (NVIDIA)

$NVDA has spiked higher on $INTC (INTEL) news. The INTEL news will have no material positive impact on $NVDA's numbers over the next 4 quarters. Consider lightly scaling in shorts right here at $15.18 and short more if the stock continues to spike higher. Investors are clearly misunderstanding the news.

OUR $APOL (APOLLO) SHORT SELL TRADE AT A CRITICAL JUNCTURE

Recent Department of Education's draft rules related to incentive compensation have met with a mixed reaction. Credit Suisse is cautious. Piper thinks it is manageable. Wedbush calls it slightly negative. Our take on fundamental basis remains negative. The draft rules recommend elimination of 12 exceptions to a 1992 law that barred for profit colleges from paying admission officers based on the number of students they enrolled. We believe that, if enacted, these rules will eliminate the boiler room environment and reduce enrolment.

Technicians have been taking comfort from the rounding bottom formation on the chart. However, on a break below $54.55 this formation will be invalid and may result in stops getting hit. Our plan is to add to our short position on a break of $54.55, hunt for the stops, and use our Fund Flow screen to guide us to take some short term profits as the stock may rebound after stops are taken out. We will maintain our original core position.

TRAIL STOPS ON $GCZ9, AND $ABX.

$GCZ9 is at $1143 and $ABX is at $41.95. We have substantial profits. ZYX Change Method trade management guidelines dictate that stops be closely trailed. Do not let profits slip away but still allow room for further gains.

TAKING MORE PARTIAL PROFITS ON $GCZ9 AT $1151.90, $GLD

TAKING MORE PROFITS ON $GCZ9 AT $1170 AND TIGHTENING STOPS ON THE REST, $GLD,

TAKING PARTIAL PROFITS ON $ABX

We are short on $ABX from $45.60. Consider taking partial profits at $43.05 with tight stop on the rest.

TAKING PARTIAL PROFITS ON GOLD, $GCZ9, $GLD,

We are short on $GCZ9 from $1196. Consider taking partial profits right here at $1178 with a tight stop on the rest.

SELLING SHORT $ABX ON BOUNCES WITH TIGHT STOPS

SELLING SHORT GOLD ON BOUNCES WITH TIGHT STOPS IF DOLLAR COOPERATES $GLD, $GCZ9,

IN VIEW OF THE VERY POSITIVE EMPLOYMENT REPORT, TIGHTENING STOPS ON ALL OF OUR SHORT POSITIONS $$