Stock of the Week

Performance of Our STOCK OF THE WEEK selections are listed here. For comparison purposes, we show equal investments in the S&P 500 index and Treasury Bonds. The net results will show how our selections have fared relative to the broad market. We are experience amateur investors writing for entertainment and educational purposes only. We have enjoyed much success in the past but the past offers no guarantee of future performance

Wednesday, June 14, 2006

FOLLOWING THE STRENGTH

Today we decided to cut our losses on ACAT. Arctic Cat, based in Thief River Falls, Minnesota, designs, engineers, manufactures and markets snowmobiles and ATVs along with related parts and accessories. We've held onto the stock for 6 months as it produced negative returns in the Stock of the Week portfolio. Although first quarter sales were up, ACAT has replaced last years 5% sales growth with expected losses. Proceeds from the sale were reinvested in Dell, the world's largest personal computer maker, know for high quality products with an attractive price point for the consumer.
Dellhas tripled its employment projections and landed service contracts with some major market players.
Dell is expected to offer a new desktop PC using a microprocessor from Advanced Micro Devices. We repsect Dell's manufacturing and conrol cost expertise as core strengths that will help this computer manufacturer be a long term growth stock with some hefty profits. Check it out and let us know what you think!

Wednesday, May 31, 2006

TOP DOGS


OUR STOCK OF THE WEEK HAS SEVERAL TOP DOGS POURING ON THE GRAVY IN OUR STOCK OF THE WEEK PORTFOLIO---
34% of our SOW portfolio is returning 20%+ or better
22% Returning 45% +or better
6%, returning 150% + or more
3% returning 200%+

A FEW HIGHLIGHTS!


Zones, (ZONS) 69.62% a single-source direct marketing reseller of name-brand information technology products, today announced its results Net income per share increased 50.0% Online sales increased 164.9% and represented 31.9% of net sales

We bought GME at 19.95 in March 2005 today is posted at $42.99 with a return of 53.88%. GME, retailer of video game products and personal computers (PC) entertainment software. We feel we’re right on track with this stock that reported record first quarter earnings.

(TOD) Todd Shipyard paid out a $4./share dividend. (TOD) is currently trading at $32.40 up 40.26% from original purchase price six months ago.

NAII, a formulator, manufacturer and marketer of customized nutritional supplements surged to a fresh 52-week high after its third-quarter profit more than doubled. The company's stock gained 23.20% percent, and was trading at a high of $10.38 earlier today (6/1/06)
Another great performer P.A.M. Transportation services reported a 78.5% increase in net income and a 92.3% increase in basic earnings for the first quarter of 2006.

Mac-Gray Corporation (TUC)provider of laundry facilities management services has returned 47% while AIRMthe largest air medical transportation company in the world showed a 30% profit over the first quarter of 2005 and increased in our portfolio 49% from it’s purchase price of $13.99 last November.
International Hotel Management the nation's largest independent hotel management company has earned us 43% profit.

Airline shares in CAL and AMR continue to be our top performers returning 210% and 177% respectively.

We've been riding the bull against media sentiment for over a year now. Stocks continue to out perform the S & P and the 10 year Treasury note We welcome your company on the Bull Ride.

Tuesday, May 23, 2006

Stocks Continue to beat Bonds!


Current Value of the SOW Portfolio:
$194,676.78
Simple Return: 43.79%
~~>~>~~>~>~~>~>~~>~>~~
S & P 500 Value : $152,888.68
Simple Return:3.75%
~~>~>~~>~>~~>~>~~>~>~~
Treasury Bond Value : $135,903.99
Simple Return: -8.04%
~~>~>~~>~>~~>~>~~>~>~~

As we have been writing for the last two years, Individual Stocks are the place to be. Stocks continue to outperform equal investments in the S & P 500 and the Treasury Bond index. The numbers "SCREAM" for themselves.
Past performance does not guarantee future performance. We make no recommendations! But share out of our own personal interest.


Thursday, April 06, 2006

SCREAMING RETURNS


Current Value of the SOW Portfolio:
$205,536.32
Simple Return: 51.81%
~~>~>~~>~>~~>~>~~>~>~~
S & P 500 Value : $157,141.39
Simple Return:6.64%
~~>~>~~>~>~~>~>~~>~>~~
Treasury Bond Value : $138,647.57
Simple Return: -6.29%
~~>~>~~>~>~~>~>~~>~>~~

As we have been writing for the last two years, Individual Stocks are the place to be. Stocks continue to outperform equal investments in the S & P 500 and the Treasury Bond index. The numbers "SCREAM" for themselves.
Past performance does not guarantee future performance. We make no recommendations! But share out of our own personal interest.


CONSTELLATION ENERGY

Constellation Energy (CEG) is located in Baltimore. Their divisions include merchant energy and as of May 3, 1999, Baltimore Gas & Energy (BGE). Transforming (CEG) into the holding company for BGE and its affiliates and strengthened their ability to compete with energy companies across the nation.

The Group is now in a great position for its sector. It is a solid regional utility company in the Mid-Atlantic region and seem to have a highly valuable base-load power plant portfolio in PJM.

PJM handles the buying, selling and delivery of wholesale electricity through the Energy Market. In its role as a market operator, PJM balances the needs of suppliers, wholesale customers and other market participants and monitors market activities to ensure open, fair and equitable access to energy.

Most of (CEG) earnings come from competitive markets. The firm's low-cost nuclear and coal base-load facilities are concentrated in the desirable PJM power markets. The huge run up in U.S. gas and power prices has benefited these units substantially, and the company is ready to extend these benefits as its legacy fixed-price contracts roll off.

On 12/19/05 (CEG) announced they signed a definitive agreement with Florida Power & Light (FPL) which if approved will create the nation’s largest competitive energy supplier. The merger could create an energy company with a market capitalization of approximately $28 billion (based on current market values), with a combined annual revenues of $27 billion, and $57 billion in total assets.

A merger with (FPL) could help (CEG)'s growth while lowering its risk profile. If approved, this merger would create a premier East Coast utility with two big benefits: First, it solves the problem of (CEG)'sincreasingly unbalanced risk profile by adding (FPL's) regulated utility earnings to the mix, lowering merchant generation's contribution to earnings. It also creates new opportunities for (CEG) trading group by allowing it to use (FPL's) merchant portfolio as a platform to work around.

(CEG) financial health looks good. The company has used strong free cash flow to reduce its debt to 43% of total capital at the end of 2005. This merger with (FPL) could only improve (CEG) financial position.

They closed the market on Tuesday, April 4th @ $55.23. That is $7.37 or 11% off their 52 week high of $62.60 on 10/04/05. Their 52 week low was $49.58 on 3/29/05.

Investing in energy companies can be risky but Constellation might be one to look at. Can (CEG) control their “energy” and make you a profit?

Tuesday, April 04, 2006

20% OR BETTER

Our most incredible producers have by far been our Airline investments (CAL) & (AMR), however, Many of our Stock of the Week investments for our Stocks or Bonds sitehave returned 20% or better. We update a few of these profitable picks:
(TFX), PAM Transportation (PTSI), Weider Nutrition International (WNI),
RTK, and (TOD).

34%
Todd Shipyards,(TOD) which has operated in the northwest since 1916,declared a 50% increase in dividends just last week.(TOD)Although we just purchased the stock in December, it has been one of our best performers with an ROI of 34%. One of the most attractive aspects of (TOD) is thier knowledge and history of and industry that is unpredictable. (TOD) has proven to be a leader in our portfolio.


26%

Teleflex Incorporated (TFX), designs and manufactures specialty engineered products.

TFX is made up of three very different business segments:

Teleflex Aerospace supports commercial and military aircraft;Teleflex Medical which supports health providers , and Teleflex Commercial

We purchased TFX in May of 2005. The stock has risen 26% trading today at $56.

23%
Rock-Tenn Company (RKT) is primarily a manufacturer of packaging, merchandising displays and paperboard. For the three months ended 31 December 2005, RTK revenues rose 27% . The investment we’ve owned since June 05 has returned a 23 % gain to our portfolio.

20%
PAM Transportation (PTSI) is a land carrier generating 99% of its revenues by operations conducted in the United States. Net income and earnings per share were up over 2004 with mechanics in place to reduce operating ratio and increase bottom line profitability.Putting an additional 20% revenue into our pocket PAM Transportation (PTSI) is nothing to sneeze at!

20%
Weider Nutrition International (WNI), debelops manufacturers and sells vitamins and nutritional supplements . Weider distributes its products to over 60,000 retail locations as Schiff International. Third quarter profits in 2006 doubled over 2004.

Monday, March 20, 2006

STOCKS OF THE WEEK KEEP SOARING



Current Value of the SOW Portfolio:
$195,920.65
Simple Return: 49%
~~>~>~~>~>~~>~>~~>~>~~
S & P 500 Value : $152,787.37
Simple Return:6.57%
~~>~>~~>~>~~>~>~~>~>~~
Treasury Bond Value : $139,602.08
Simple Return: -3.02%
~~>~>~~>~>~~>~>~~>~>~~

As we have been writing for the last two years, Individual Stocks are the place to be. Stocks continue to outperform equal investments in the S & P 500 and the Treasury Bond index
Past performance does not guarantee future performance. We make no recommendations! But share out of our own personal interest.


STOCK OF THE WEEK: OIL DRI

Oil-Dri (ODC) located in Chicago, develops, manufactures and markets sorbent products for use in a variety of applications. They(ODC) are the country’s largest manufacturer of kitty litter, which accounts for the majority of their revenue. They also operate four other divisions as well as owning a group of mines where they get the minerals used in their products:

Consumer Products consists primarily of cat litter and dog treats. They are the maker behind Jonny Cat and Cat’s Pride labels.
Specialty Products consists primarily of bleaching, filtration and clarification clays.
Crop Production and Horticultural Products include carriers for crop protection chemicals and fertilizers, drying agents, soil conditioners, sports field products, pellet binders for animal feeds.
Industrial and Automotive Products consists of oil, grease, clay & non-clay water sorbents.

On December 6, 2005, Oil-Dri reported a regular quarterly cash dividend of $0.12 per share of the Company's Common Stock. The dividend will be payable on March 17th to stockholders.

Then on February 22nd Oil-Dri announced record second quarter sales of $53mm for the three month period ending January 31st . Sales were 9% greater than sales of $49mm in the same quarter one year ago. Net income for the quarter was $1.8mm or $0.32 per share, compared with net income of $2mm or $0.36 per share in the second quarter one year ago.

Dan Jaffee, President and CEO stated, "We are quite pleased with our second quarter results as they reflect an improving trend in our overall business. Quarterly results demonstrate the company's progress in rebuilding our profit margins after the unprecedented increase in energy and other costs following hurricanes Katrina and Rita”.

Their business seems to be strong and showing growth in both existing and new accounts with margins improving over the previous quarter. Jaffee also reported that the company had been able to raise prices to help offset some of the energy cost increases, which have now leveled off but are nearly double since last year. Additional price increases are scheduled in the second half of the year.

Oil-Dri seems to be another casualty of hurricanes Katrina and Rita but is now on the rebound. They closed Tuesday, March 14th at a NEW 52 week high of $19.21. That is $.10 higher than their recent high 5 days ago, 3/10/06, @ $19.11. Their stock has been as low as $16.40 on 6/3/05.

Are you ready to make your portfolio purr? Oil-Dri may be one to absorb.

Thursday, March 09, 2006

SOW PERFORMANCE REVIEW



Current Value of the SOW Portfolio:
$181,705.09
Simple Return: 42.61%
~~>~>~~>~>~~>~>~~>~>~~
S & P 500 Value : $146,071.02
Simple Return:4.79%
~~>~>~~>~>~~>~>~~>~>~~
Treasury Bond Value : $164,732.40
Simple Return: -3.73%
~~>~>~~>~>~~>~>~~>~>~~

As we have been writing for the last two years, Individual Stocks are the place to be. Stocks continue to outperform equal investments in the S & P 500 and the Treasury Bond index
Past performance does not guarantee future performance. We make no recommendations! But share out of our own personal interest.


STOCK OF THE WEEK: NAII

Natural Alternative International (NAII)
makes nutritional products and provides related services. Located in San Marcos, CA, the Company produces nutritional supplements in capsule, tablet, and powder forms. Founded in 1980, Natural Alternatives has operations in Southern California, Switzerland, and Japan.

Their complete partnership approach offers a wide range of innovative nutritional products and services to the client including: scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance.

On Feb. 14th Natural Alternatives
announced a second quarter net sales decrease of 8% to $19.9 mm from $21.5 mm for the comparable quarter last year. The reduction in net sales resulted mainly from a decrease in private label contract manufacturing sales. Also, an additional $3.8 mm of term debt was obtained on December 5th to fund part of the $5.6 mm of net cash used in the recent acquisition of Real Health Laboratories, Inc. (RHL).

According to company President, Randall Weaver"During the second quarter, we aggressively reduced costs in response to the net sales decline. We are pleased with our progress related to the integration of the RHL acquisition and do not expect a significant impact on profitability in the third quarter”.

Earlier this year the Company had announced receiving an initial purchase orders from two new contract manufacturing customers. These two new customers are expected to produce net sales in excess of $10 mm for the remainder of the ‘06 fiscal year.

Why does Weaver seem so positive on this news? Just 5 months before that the headlines read- Natural Alternatives
announces record breaking revenue for Fiscal 2005. For the fiscal year ending June 30, 2005, their revenue increased 16% to $91.5 million from $78.5 million in the prior year.

On March 8th they closed the day at $8.33. Are they headed back up to their 52 week high on March 1st of $8.65? On Oct. 26, 05 they were at $5.03. A 52 week low.

With talk about health savings and flex spending accounts to support supplements are you ready to invest in making your financial account healthier?

Wednesday, June 14, 2006

FOLLOWING THE STRENGTH

Today we decided to cut our losses on ACAT. Arctic Cat, based in Thief River Falls, Minnesota, designs, engineers, manufactures and markets snowmobiles and ATVs along with related parts and accessories. We've held onto the stock for 6 months as it produced negative returns in the Stock of the Week portfolio. Although first quarter sales were up, ACAT has replaced last years 5% sales growth with expected losses. Proceeds from the sale were reinvested in Dell, the world's largest personal computer maker, know for high quality products with an attractive price point for the consumer.
Dellhas tripled its employment projections and landed service contracts with some major market players.
Dell is expected to offer a new desktop PC using a microprocessor from Advanced Micro Devices. We repsect Dell's manufacturing and conrol cost expertise as core strengths that will help this computer manufacturer be a long term growth stock with some hefty profits. Check it out and let us know what you think!

#

Wednesday, May 31, 2006

TOP DOGS


OUR STOCK OF THE WEEK HAS SEVERAL TOP DOGS POURING ON THE GRAVY IN OUR STOCK OF THE WEEK PORTFOLIO---
34% of our SOW portfolio is returning 20%+ or better
22% Returning 45% +or better
6%, returning 150% + or more
3% returning 200%+

A FEW HIGHLIGHTS!


Zones, (ZONS) 69.62% a single-source direct marketing reseller of name-brand information technology products, today announced its results Net income per share increased 50.0% Online sales increased 164.9% and represented 31.9% of net sales

We bought GME at 19.95 in March 2005 today is posted at $42.99 with a return of 53.88%. GME, retailer of video game products and personal computers (PC) entertainment software. We feel we’re right on track with this stock that reported record first quarter earnings.

(TOD) Todd Shipyard paid out a $4./share dividend. (TOD) is currently trading at $32.40 up 40.26% from original purchase price six months ago.

NAII, a formulator, manufacturer and marketer of customized nutritional supplements surged to a fresh 52-week high after its third-quarter profit more than doubled. The company's stock gained 23.20% percent, and was trading at a high of $10.38 earlier today (6/1/06)
Another great performer P.A.M. Transportation services reported a 78.5% increase in net income and a 92.3% increase in basic earnings for the first quarter of 2006.

Mac-Gray Corporation (TUC)provider of laundry facilities management services has returned 47% while AIRMthe largest air medical transportation company in the world showed a 30% profit over the first quarter of 2005 and increased in our portfolio 49% from it’s purchase price of $13.99 last November.
International Hotel Management the nation's largest independent hotel management company has earned us 43% profit.

Airline shares in CAL and AMR continue to be our top performers returning 210% and 177% respectively.

We've been riding the bull against media sentiment for over a year now. Stocks continue to out perform the S & P and the 10 year Treasury note We welcome your company on the Bull Ride.

#

Tuesday, May 23, 2006

Stocks Continue to beat Bonds!


Current Value of the SOW Portfolio:
$194,676.78
Simple Return: 43.79%
~~>~>~~>~>~~>~>~~>~>~~
S & P 500 Value : $152,888.68
Simple Return:3.75%
~~>~>~~>~>~~>~>~~>~>~~
Treasury Bond Value : $135,903.99
Simple Return: -8.04%
~~>~>~~>~>~~>~>~~>~>~~

As we have been writing for the last two years, Individual Stocks are the place to be. Stocks continue to outperform equal investments in the S & P 500 and the Treasury Bond index. The numbers "SCREAM" for themselves.
Past performance does not guarantee future performance. We make no recommendations! But share out of our own personal interest.


#

Thursday, April 06, 2006

SCREAMING RETURNS


Current Value of the SOW Portfolio:
$205,536.32
Simple Return: 51.81%
~~>~>~~>~>~~>~>~~>~>~~
S & P 500 Value : $157,141.39
Simple Return:6.64%
~~>~>~~>~>~~>~>~~>~>~~
Treasury Bond Value : $138,647.57
Simple Return: -6.29%
~~>~>~~>~>~~>~>~~>~>~~

As we have been writing for the last two years, Individual Stocks are the place to be. Stocks continue to outperform equal investments in the S & P 500 and the Treasury Bond index. The numbers "SCREAM" for themselves.
Past performance does not guarantee future performance. We make no recommendations! But share out of our own personal interest.


#

CONSTELLATION ENERGY

Constellation Energy (CEG) is located in Baltimore. Their divisions include merchant energy and as of May 3, 1999, Baltimore Gas & Energy (BGE). Transforming (CEG) into the holding company for BGE and its affiliates and strengthened their ability to compete with energy companies across the nation.

The Group is now in a great position for its sector. It is a solid regional utility company in the Mid-Atlantic region and seem to have a highly valuable base-load power plant portfolio in PJM.

PJM handles the buying, selling and delivery of wholesale electricity through the Energy Market. In its role as a market operator, PJM balances the needs of suppliers, wholesale customers and other market participants and monitors market activities to ensure open, fair and equitable access to energy.

Most of (CEG) earnings come from competitive markets. The firm's low-cost nuclear and coal base-load facilities are concentrated in the desirable PJM power markets. The huge run up in U.S. gas and power prices has benefited these units substantially, and the company is ready to extend these benefits as its legacy fixed-price contracts roll off.

On 12/19/05 (CEG) announced they signed a definitive agreement with Florida Power & Light (FPL) which if approved will create the nation’s largest competitive energy supplier. The merger could create an energy company with a market capitalization of approximately $28 billion (based on current market values), with a combined annual revenues of $27 billion, and $57 billion in total assets.

A merger with (FPL) could help (CEG)'s growth while lowering its risk profile. If approved, this merger would create a premier East Coast utility with two big benefits: First, it solves the problem of (CEG)'sincreasingly unbalanced risk profile by adding (FPL's) regulated utility earnings to the mix, lowering merchant generation's contribution to earnings. It also creates new opportunities for (CEG) trading group by allowing it to use (FPL's) merchant portfolio as a platform to work around.

(CEG) financial health looks good. The company has used strong free cash flow to reduce its debt to 43% of total capital at the end of 2005. This merger with (FPL) could only improve (CEG) financial position.

They closed the market on Tuesday, April 4th @ $55.23. That is $7.37 or 11% off their 52 week high of $62.60 on 10/04/05. Their 52 week low was $49.58 on 3/29/05.

Investing in energy companies can be risky but Constellation might be one to look at. Can (CEG) control their “energy” and make you a profit?

#

Tuesday, April 04, 2006

20% OR BETTER

Our most incredible producers have by far been our Airline investments (CAL) & (AMR), however, Many of our Stock of the Week investments for our Stocks or Bonds sitehave returned 20% or better. We update a few of these profitable picks:
(TFX), PAM Transportation (PTSI), Weider Nutrition International (WNI),
RTK, and (TOD).

34%
Todd Shipyards,(TOD) which has operated in the northwest since 1916,declared a 50% increase in dividends just last week.(TOD)Although we just purchased the stock in December, it has been one of our best performers with an ROI of 34%. One of the most attractive aspects of (TOD) is thier knowledge and history of and industry that is unpredictable. (TOD) has proven to be a leader in our portfolio.


26%

Teleflex Incorporated (TFX), designs and manufactures specialty engineered products.

TFX is made up of three very different business segments:

Teleflex Aerospace supports commercial and military aircraft;Teleflex Medical which supports health providers , and Teleflex Commercial

We purchased TFX in May of 2005. The stock has risen 26% trading today at $56.

23%
Rock-Tenn Company (RKT) is primarily a manufacturer of packaging, merchandising displays and paperboard. For the three months ended 31 December 2005, RTK revenues rose 27% . The investment we’ve owned since June 05 has returned a 23 % gain to our portfolio.

20%
PAM Transportation (PTSI) is a land carrier generating 99% of its revenues by operations conducted in the United States. Net income and earnings per share were up over 2004 with mechanics in place to reduce operating ratio and increase bottom line profitability.Putting an additional 20% revenue into our pocket PAM Transportation (PTSI) is nothing to sneeze at!

20%
Weider Nutrition International (WNI), debelops manufacturers and sells vitamins and nutritional supplements . Weider distributes its products to over 60,000 retail locations as Schiff International. Third quarter profits in 2006 doubled over 2004.

#

Monday, March 20, 2006

STOCKS OF THE WEEK KEEP SOARING



Current Value of the SOW Portfolio:
$195,920.65
Simple Return: 49%
~~>~>~~>~>~~>~>~~>~>~~
S & P 500 Value : $152,787.37
Simple Return:6.57%
~~>~>~~>~>~~>~>~~>~>~~
Treasury Bond Value : $139,602.08
Simple Return: -3.02%
~~>~>~~>~>~~>~>~~>~>~~

As we have been writing for the last two years, Individual Stocks are the place to be. Stocks continue to outperform equal investments in the S & P 500 and the Treasury Bond index
Past performance does not guarantee future performance. We make no recommendations! But share out of our own personal interest.


#

STOCK OF THE WEEK: OIL DRI

Oil-Dri (ODC) located in Chicago, develops, manufactures and markets sorbent products for use in a variety of applications. They(ODC) are the country’s largest manufacturer of kitty litter, which accounts for the majority of their revenue. They also operate four other divisions as well as owning a group of mines where they get the minerals used in their products:

Consumer Products consists primarily of cat litter and dog treats. They are the maker behind Jonny Cat and Cat’s Pride labels.
Specialty Products consists primarily of bleaching, filtration and clarification clays.
Crop Production and Horticultural Products include carriers for crop protection chemicals and fertilizers, drying agents, soil conditioners, sports field products, pellet binders for animal feeds.
Industrial and Automotive Products consists of oil, grease, clay & non-clay water sorbents.

On December 6, 2005, Oil-Dri reported a regular quarterly cash dividend of $0.12 per share of the Company's Common Stock. The dividend will be payable on March 17th to stockholders.

Then on February 22nd Oil-Dri announced record second quarter sales of $53mm for the three month period ending January 31st . Sales were 9% greater than sales of $49mm in the same quarter one year ago. Net income for the quarter was $1.8mm or $0.32 per share, compared with net income of $2mm or $0.36 per share in the second quarter one year ago.

Dan Jaffee, President and CEO stated, "We are quite pleased with our second quarter results as they reflect an improving trend in our overall business. Quarterly results demonstrate the company's progress in rebuilding our profit margins after the unprecedented increase in energy and other costs following hurricanes Katrina and Rita”.

Their business seems to be strong and showing growth in both existing and new accounts with margins improving over the previous quarter. Jaffee also reported that the company had been able to raise prices to help offset some of the energy cost increases, which have now leveled off but are nearly double since last year. Additional price increases are scheduled in the second half of the year.

Oil-Dri seems to be another casualty of hurricanes Katrina and Rita but is now on the rebound. They closed Tuesday, March 14th at a NEW 52 week high of $19.21. That is $.10 higher than their recent high 5 days ago, 3/10/06, @ $19.11. Their stock has been as low as $16.40 on 6/3/05.

Are you ready to make your portfolio purr? Oil-Dri may be one to absorb.

#

Thursday, March 09, 2006

SOW PERFORMANCE REVIEW



Current Value of the SOW Portfolio:
$181,705.09
Simple Return: 42.61%
~~>~>~~>~>~~>~>~~>~>~~
S & P 500 Value : $146,071.02
Simple Return:4.79%
~~>~>~~>~>~~>~>~~>~>~~
Treasury Bond Value : $164,732.40
Simple Return: -3.73%
~~>~>~~>~>~~>~>~~>~>~~

As we have been writing for the last two years, Individual Stocks are the place to be. Stocks continue to outperform equal investments in the S & P 500 and the Treasury Bond index
Past performance does not guarantee future performance. We make no recommendations! But share out of our own personal interest.


#

STOCK OF THE WEEK: NAII

Natural Alternative International (NAII)
makes nutritional products and provides related services. Located in San Marcos, CA, the Company produces nutritional supplements in capsule, tablet, and powder forms. Founded in 1980, Natural Alternatives has operations in Southern California, Switzerland, and Japan.

Their complete partnership approach offers a wide range of innovative nutritional products and services to the client including: scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance.

On Feb. 14th Natural Alternatives
announced a second quarter net sales decrease of 8% to $19.9 mm from $21.5 mm for the comparable quarter last year. The reduction in net sales resulted mainly from a decrease in private label contract manufacturing sales. Also, an additional $3.8 mm of term debt was obtained on December 5th to fund part of the $5.6 mm of net cash used in the recent acquisition of Real Health Laboratories, Inc. (RHL).

According to company President, Randall Weaver"During the second quarter, we aggressively reduced costs in response to the net sales decline. We are pleased with our progress related to the integration of the RHL acquisition and do not expect a significant impact on profitability in the third quarter”.

Earlier this year the Company had announced receiving an initial purchase orders from two new contract manufacturing customers. These two new customers are expected to produce net sales in excess of $10 mm for the remainder of the ‘06 fiscal year.

Why does Weaver seem so positive on this news? Just 5 months before that the headlines read- Natural Alternatives
announces record breaking revenue for Fiscal 2005. For the fiscal year ending June 30, 2005, their revenue increased 16% to $91.5 million from $78.5 million in the prior year.

On March 8th they closed the day at $8.33. Are they headed back up to their 52 week high on March 1st of $8.65? On Oct. 26, 05 they were at $5.03. A 52 week low.

With talk about health savings and flex spending accounts to support supplements are you ready to invest in making your financial account healthier?

#