Buy & Sell
Signals
01/17/2007
Primary
Stock Portfolio:
Buy: Chipotle
Mexican Grill (CMG), a fast-casual, Mexican restaurant that
was spun-off from McDonald's Corp.
Sell: Genesis
Healthcare Corp. (GHCI). With yesterday's 15.9% rise in this
company's stock on news that it is going private, it is time
to sell, take the 125.6%
gain, and invest elsewhere.
***
High-Yield
Value Stock Portfolio:
Sell: Mills
Corp. (MLS) and Tuesday Morning Corp. (TUES).
Yesterday, Mills Corp.
saw its stock rise 16.8% on volume 400% higher than normal
after the real estate investment trust's two largest shareholders
offered to infuse $499 million of capital into the company.
This morning, Mills has announced it will
be acquired by Brookfield Asset Management Inc. The stock
is currently trading higher than the acquisition price, meaning
investors think that the company will sell for even more than
the current offer. But we aren't going to get greedy. We are
selling Mills for a 26.9% gain in less than five months (an
annualized gain of 64.6% per year).
The stock of Tuesday
Morning has risen over 24.6% after it was purchased
less than five months ago (an annualized return of 59% per
year). We believe that Tuesday Morning is now fairly valued
considering that consumer purchases of home goods are slowing
down.
The High-Yield Value Stock
Portfolio was introduced in August. As of this morning, the
portfolio has provided a 21.0% gain versus 10.2% for the S&P
500.
***
-Rex M. Jacobsen
Sr. Editor
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