Long/Short Stock Advisory

Street Smart Report Online Commentary 3

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STOCK OF THE MONTH.

June 14, 2010.

Note: The Free Stock of the Month is a featured stock from a recent issue of our Street Smart Long and Short Stock Advisory newsletter. Subscribers, management, and employees of Asset Management Research, may already have positions. And obviously a stock that has already made part of an expected move is not at as advantageous a price.

There is no follow-up advice provided free as to closing out to take profits or prevent losses from growing.

All previous Stocks of the Month since last October:

Oct. 3, 2009. Short sale of Corning GLW. From Sept 28 issue when stock was at $15.14. Hit stop, closed out. Loss (- 10.1%).

Oct. 3, 2009. Stock of Month: Verisign Inc. VRSN from Sept 7 issue when at $21.13. Subscribers took profit Feb 17: +13.5%.

Nov. 18, 2009. McCormick & Co MKC from Sept. 28 issue when at $34.04. Subscribers took profits Mar. 17: +10.2%.

No Stock of Month posted in Dec.

Jan. 7, 2010. First Potomac Realty FPO from Dec. 23 issue when at $12.35. Subscribers took profits Mar.17: + 7.3%.

Feb. 25, 2010. Tellabs Inc. TLAB from Feb. 3 issue when at $6.63. Subscribers took profits March 17 issue: +19.6%.

No Stock of the Month posted for March.

April 1, 2010. Pitney Bowes PBI. from March 17 issue, when at 24.31. Closed out for loss of - 10%.

May 1, 2010. Ecolab Inc. ECL. when at 48.83. From April 7 issue, when at 44.70. Subscriber paper profit so far + 3.8%.

A NEW STOCK OF THE MONTH: Actually an exchange-traded-fund.

June 14, 2010.

POTENTIAL OVER-PERFORMER (A Buy Candidate):

United States Natural Gas Fund, symbol UNG. $8.57. From April 7 issue. UNG was at 8.01 at the time.

United States Natural Gas Fund, symbol UNG, is an exchange traded fund designed to track the performance of natural gas. It utilizes NYMEX-traded futures contracts on natural gas to do so.

UNG was as high as 63 at the height of its popularity in August, 2008. It then plunged 89% over the next 18 months to a low of 7 by late April.

It has now triggered a buy signal on our intermediate-term technical indicators and broken out above its 20-week m.a. for the first time since it topped out in 2008.

On the fundamentals, natural gas futures have turned up apparently on forecasts of a hot summer that is expected to increase demand for natural gas.

I believe there’s more to it than that. The disastrous BP oil spill has raised awareness of the risk of offshore drilling and is likely to create renewed interest in abundant and clean-burning natural gas as an alternative for many uses.

Oil tycoon T. Boone Pickens has argued for years that natural gas is the best immediately available economic and environmental solution for U.S. energy needs, a bridge over oil and coal to the future when alternative solar, wind, and nuclear power will be ready to take over more of the load.

We also like UNG because it often moves independent of the stock market, a plus in these uncertain times for the stock market. We have an upside target of 16, and suggest a trailing mental protective stop at 6.50.

In the interest of full disclosure, UNG was a buy recommendation for our newsletter portfolio on June 6, so we, our subscribers, and our associates may have positions from lower prices.

Note: Protective stops should be moved along with the stock price, if and as the price rises, to keep it only 15% below the latest price, to increasingly lock in profit. We also highly recommend that protective stops NOT be placed with brokerage firms for automatic execution intraday, but be treated as mental stops based on closing prices, with the position to be closed out manually the next day.

NOTE: These reports reflect our opinions and are based on our best judgment, but no warranty is given or implied as to their accuracy. They are provided solely as a supplement to your own further research. It is each reader's responsibility to decide which if any opinions or recommendations are suitable for their own situation, and in what manner to use the information. Past performance does not guarantee future performance. Individual communications regarding featured stocks is not available.

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