Stock Market Commentary for 5/19/08

Friday the major indices finished flat, with the DJIA and the Nasdaq down minimally and the S&P 500 up slightly. But this was a positive ending for a positive week when you consider that it was a Friday and the price of oil rose to nearly 128 dollars a barrel. This week also Goldman Sachs analysts estimated that the price of oil could rise to 200 dollars a barrel in view of developing levels of supply and demand. Unemployment levels rose slightly, but not so much as predicted.

Although the major indices were flat, our VAQ Index rose again to 227, reflecting the growing number of viable acquisition stocks according to our mathematical selection model. Note that all of the stocks listed in our computer listing have at least doubled in the past challenging 52 weeks, and overall they have averaged a gain of 3.6 times their starting prices. Some stocks, like JRCC, have actually multiplied more than ten times this past year. The present list reincorporates cash flow and free cash flow into the model, and thereby strengthens the predictions. On Friday alone those stocks registering gains of more than 5% were as follows: MXC +38.9%, GGB +6.3%, WLL +6.8%, PDO +6.1%, JRCC +7.0%, PCX +7.9%, SUTR +11.4%, and TELOZ +8.0%. The biggest loser was DGLY -1.7%. You can see from the list that energy stocks and alternative energy stocks again topped the list as the most lucrative sectors.

Best wishes, GH

The HHI Index for Monday, May 19, 2008 is as follows:

+7 (very strong buy) — FSYS, MEE, WTI, GNK, /

+6 (strong buy) — MXC, SOL, CSIQ, BEXP, GEOI, ANR, SOHU, GHM, CLF, SNHY, GTI, GGB, SCHN, EGLE, WRLD, WLL, /

+5 (buy) — VISN, CWEI, GU, WLT, UFPT, GTE, FSLR, SWN, SGY, TTES, SID, /

+4 (hold) — PDO, JRCC, PCX, LL HUSA, IPHS, STEC, SUTR, DGLY, TELOZ, OFI, MEA, /

Daily Stock Market Commentary is accompanied by a daily Bible Reflection.

• Today's Bible Reflection: Reflections on Psalm 12
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• Yesterday's Bible Reflection: Reflections on Psalm 11
• What is the HHI Index?

_{The HHI Index is a list of stock ratings derived from a proprietary computer model and are being shared as a public service with no guarantee of or responsibility for trading success. Readers are strongly encouraged to do their own research and to exercise caution in all trading activity. Click here for an explanation of the HHI Index.}

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Stock Market Commentary for 5/16/08

HHI

Thu May 15

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