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UPDATE ON PNSN

March 22, 2012

The Fundamental Case for PNSN is Still Positive PNSN still is drastically undervalued from a long-term perspective. PNSN derives significant revenues from providing clearing services to brokers. History tells us that over a long period of time, volume of transactions increases. This long-term trend is beneficial for PNSN. There is an increasing trend towards independent RIAs (financial advisors). This trend works towards the advantage of PNSN. PNSN is also a prime acquisition target. A logical buyer of PNSN is another financial company. Balance Sheet Risk PNSN has been hit hard due to company’s missteps with its balance sheet. The company is tightly regulated and so far there is no news from

MORE ON NG

March 22, 2012

NG is engaged in development and exploration of gold and silver in Alaska and British Columbia. 52 week high for the stock is $14.02. Yesterday we recommended a 10% tranche at $7.12. In our view, NG is a take over candidate. It has long been on our list to buy, but never hit our buy zone. Our buy zone has been at $6.25 to $6.56. Yesterday, we raised the upper band of the buy zone to $7.30. There were three reasons for this change. First, there were persistent rumors of interest by ABX to buyout NG. Second, Electrum a New York based firm

URGENT: HOLD OFF BUYING MORE NG

March 22, 2012

Please consider holding off buying more NG and canceling any pending limit orders. We will be back with more information.

NEW IDEA ON NOVAGOLD RESOURCES (NG)

March 21, 2012

Novagold Resources (NG) is a gold producer. It has long been on our list to buy. Now the rumors are surfacing that the company is for sale. Starting a 10% tranche right here at $7.12. Buy zone on NG is $6.25 to $7.30, preferably closer to $7.00. Stop zone is $5. to $5.73 and target zone is $9.60 to $11.20. There is high risk to this trade, therefore we do not recommend buying more than a 10% tranche here. Consider adding a second 10% tranche around $6.80.

NEW OPPORTUNITY IN HERO

March 20, 2012

New subscribers — an opportunity to scale in a buy in HERO is now at hand. HERO provides shallow water drilling and marine services for oil and gas exploration. HERO announced the execution of a definitive agreement to acquire the offshore drilling rig Ocean Columbia from a subsidiary of Diamond Offshore Drilling (DO). The purchase price is $40 million in cash. Ocean Columbia is a LeTourneau Class 82 SD-C self-elevating drilling rig registered and flagged in the Marshall Islands. Subject to customary closing conditions, the company expects the acquisition to close in May. Hercules Offshore also announced that it has entered into a

SAUDI KING DEFIES IRAN’S MULLAHS TO HELP OBAMA

March 20, 2012

It is no secret that President Obama’s reelection hinges in part on gas prices in the United States. Republicans have made a point of emphasizing that Obama’s energy policy is part of the reason behind high gas prices. Republicans often cite the president’s decision not to allow the Keystone XL pipeline as evidence to support their argument. Now Saudi Arabia is coming to Barack Obama’s aid. The Saudi Council of Ministers, the cabinet, has declared that it wants to return oil prices to fair levels. Saudi Arabia has been emphasizing that it would like oil prices to return to $100.

SIRI, IS THIS FRANK FAZIO APPLE LAWSUIT FOR REAL?

March 20, 2012

Frank M. Fazio thinks that Siri is so bad that he has not only sued Apple(AAPL), he wants the suit to be a class action. The complaint, filed in the U.S. District Court of Northern California, states that the iPhone 4 S Siri feature does not perform as advertised. The complaint states, “Notwithstanding Apple’s extensive multi-million dollar advertising campaign showcasing the Siri feature and the fact that the iPhone 4 S is more expensive than the iPhone 4, the iPhone 4 S’s Siri feature does not perform as advertised, rendering the iPhone 4 S merely a more expensive iPhone 4.” The

TAKING MORE PARTIAL PROFITS ON ADBE

March 18, 2012

ADBE reports earnings tomorrow after the close. ADBE has an inconsistent record of earnings. There is considerable risk of holding this stock through earnings. ZYX Change Method is focused on maximizing risk adjusted returns and not just absolute returns. It is time to take profit on another 10% tranche tomorrow before the close. On Friday the stock closed at $33.82. After this sale, only 10% of the full core position size will be held through the earnings. We will keep you advised after listening to the earnings conference call.