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ULTA SALON, COSMETICS (ULTA) RUN UP IS UNWARRANTED

June 7, 2011

Ulta Salon, Cosmetics (ULTA) runs health and beauty retail stores. This has been a fast growing chain. After the close Ulta Salon reported earnings of $0.37 per share $0.06 more than the consensus. Revenues rose 20.5% to $386 million vs $372 million. The Ulta Salon has high short interest and thus a pop on these earnings is reasonable. Our issue is with the headlines describing Ulta Salon’s guidance. Headlines are screaming ‘upside guidance’. Ulta Salon’s guidance is $0.31 to $0.33 vs. $0.30 for the earnings. Revenue guidance is $378 – $384

TEMPLE-INLAND (TIN) BID BY INTERNATIONAL PAPER (IP) HAS ANTITRUST RISK

June 7, 2011

Temple-Inland (TIN) bid by International Paper (IP) has antitrust risk. In some segments, the combined company will have over 30% market share. Such market share will invite scrutiny of Temple-Inland and International Paper by the Department of Justice. The possibility of the Department of Justice rejecting the bid by International Paper for Temple-Inland is real. Even without the antitrust risk, if Temple-Inland decides to fight the bid by International Paper, Temple-Inland can delay any acquisition by almost a year. Those holding Temple-Inland stock may consider taking profits right here and focusing on other stocks in

TALBOTS (TLB) GETTING CLOSE TO A BUY POINT

June 7, 2011

This morning Talbots (TLB) reported lower than expected earnings. Projections from Talbots were also lower than expected. Talbots is going to close 100-200 stores. A proven way to make money is to buy when it is the darkest, but long-term fundamentals are in tact. Talbots has a new management team. The work is cut out for them and it is not going to be easy to turn Talbots around. Talbots is rapidly approaching a point where buying it makes sense for an eventual 300-400% gain. When the time is right, we will

A SECOND OPPORTUNITY TO TAKE PROFITS ON PENSON (PNSN)

June 6, 2011

Those who did not take partial profits on Penson (PNSN) on Friday have now a second opportunity to take partial profits around $4.41. We will continue to hold the core position. Those not in the Penson may consider waiting for a deep pull back. We will provide updates on Penson in real-time on the Real Time Feed of the ZYX Buy Change Alert.

SUNOPTA (STKL) RUN UP IS AN OPPORTUNITY TO SELL

June 6, 2011

SunOpta (STKL) has run up on recommendation by Jim Cramer on CNBC. Based on the past trading pattern of SunOpta the run up in the range of $8.70 to $9.50 is an opportunity to sell. If there is an overall market correction, we will have an opportunity to buy SunOpta at much lower prices. SunOpta is on our watch list and we will provide a buy signal on the real time feed of the ZYX Buy Change Alert when all six screens of the ZYX Change Method are satisfied.

PENSON (PNSN) ROCKETING

June 3, 2011

Our position Penson (PNSN) is rocketing this afternoon. Penson presented at Global Exchange Conference yesterday. There appears to be take over chatter. We are taking partial profits at $4.44.

MORE ON APOLLO (APOL)

June 3, 2011

Yesterday, we wrote that a number of education stocks are likely to see their multiples expand. Further analysis of the impact of new regulations show that Apollo (APOL) is the best positioned company to benefit from the new regulations. Apollo may run to mid $50’s. However, we are not issuing a buy signal at this point and will wait for a pull back. When all six screens of the ZYX Change Method are satisfied, we will issue a buy signal on the Real Time Feed on the ZYX Buy Change Alert.

EDUCATION STOCKS: APOLLO (APOL), CORINTHIAN COLLEGES (COCO), CAREER EDUCATION (CECO), DEVRY (DV), AND ITT EDUCATIONAL SERVICES (ESI)

June 2, 2011

Apollo Group (APOL), Corinthian Colleges (COCO), Career Education (CECO,) DeVry (DV), and ITT Educational Services (ESI) are higher today on the Department of Education rules being less onerous than expected. The companies also get more time to comply with the rules. In the near term, PE multiples are likely to expand. Further in several of these stocks, there is very high short interest that may lead to short squeezes. When all six screens of the ZYX Change Method are met, actionable signals will be provided on the Real Time Feed of the ZYX Buy Change Alert.