The WhisperNumber Long Short Portfolio
Entry and Exit Points Triggered By Erlanger Chart Room (ECR)

At WhisperNumber.com, we pride ourselves on being able to pick up data sentiment points that others are not able to collect, interpret, and make money from. Our whisper number sentiment data point is simply whether the herd is too bullish or bearish on what earnings will be for each company in our universe. Now we have been able to team up with another pro in the sentiment universe, Phil Erlanger. Mr. Erlanger tracks short interest, options, and technical moves to predict which way stocks are going to move.

By overlaying whisper number's with Erlanger's data, we feel that we have created a great vehicle of buy and sell recommendations through the WhisperNumber Long Short Portfolio. The concept is simple - buy stocks with low sentiment risk and improving technicals and heavy short interest. Conversely, short stocks with high sentiment risk and low short interest and technicals that are long in the tooth.

We will own up to 10 names in the portfolio. At times, we may hold cash if our sentiment reports dictate a vulnerable period or have a heavily short portfolio in such an environment. When we are bullish on the market, then we will have more long ideas.

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1/9/06 Portfolio Update: The bulk of the fourth quarter earnings release is close at hand. If this were the equivalent of rollercoaster ride, then we would hear the sound of that last tug from the chain as it gets set to launch on a wild ride of twist, turns, dips and flips. In this update, we will be closing out some residual ideas from the previous quarter, establish some stops for existing names, and bring on some new ideas. Buckle up folks...let's make it a fun ride.

Weekly Review:

1. Alcoa Inc. (AA - Long) reported $0.35 vs. the $0.37 whisper number after the close today (January 9, 2006). So far the stock is trading down in after-hours. We will be closing out this name using tomorrow’s initial open price.
   
2. Johnson & Johnson (JNJ - Short) has seen a spike in price action, triggering our established 62.50 closing stop on January 4, 2006. See below for details.

Keep on the Radar:

1. Southwest Airlines (LUV - Short) will be reporting on January 18, 2006 before the market open. The stock has moved close to our established stop of $17.50. We will only close out this position before the earnings release if LUV closes above that stop price. If that does occur, we utilize the next days opening as the final closing price for performance. LUV still has a 'High Risk' rating in WhisperNumber.com with a whisper number one penny ahead of the Wall Street Estimate of $0.12.
   
   

Changes to Recommendations:

1. Add Linear Technology Corporation (LLTC - Long) as a long recommendation. The stock is expected to report January 17, 2006 after the market close and has a 'Low' Whisper Risk Rating with a high level of short interest based on Erlanger Research.
   
2. Add Convergys Corp (CVG - Short) as a short recommendation. The stock is expected to report earnings on January 18, 2006 and has a 'Very High' Whisper Risk Rating and low level of short interest based on Erlanger Research.
   
3. Add 3m Company (MMM - Short) as a short recommendation. The stock is expected to report earnings on January 24, 2006 before the market open and has a 'High' Whisper Risk Rating and low level of short interest.
   
4. Add Motorola Inc. (MOT - Short) as a short recommendation. The stock is expected to report earnings on January 19, 2006 after the market close and has a 'High' Whisper Risk Rating and low level of short interest.
5. Johnson & Johnson (JNJ - Short) has been covered at a price of $62.57 (January 5, 2005 opening price). As a reminder to our reader base, from our 12/19/2005 Update: "We will be adding a new column to our weekly snapshot of open positions. The 'Stop' column will designate our current stop loss we have for a long or short position. We look to close out positions intra week that have violated a stop on an end of day basis. As with our weekly entry and exit prices, we will use the following days opening as an exit price to the 'stopped' long or short position. These stops will be adjusted on a weekly review for either protecting profits or protecting principal."
   Johnson and Johnson closed on January 4, 2005 at $62.58, violating our $62.50 stop on the short recommendation. The opening price on January 5, 2005 was $62.57 representing a final loss of 2.2% for the 31 calendar days.
   
6. Close Barr Pharma Inc. (BRL - Long). Barr is a residual name from the 3rd quarter reporting period. It has recently picked up a few more points prompting us to book a profit.
   
7. Close Alcoa Inc. (AA - Long). AA reported $0.35 vs. $0.37 estimate after the close on January 9. We entered AA at a price of $28.45 on December 19, 2005.
   
8. Close Dollar Tree Stores (DLTR - Long). Dollar Tree is also a residual name from the previous quarter recommendation. Dollar Tree reaffirmed its fourth quarter sales guidance causing an increase in the stock price today. We look to book this gain.
   
9. Establish closing stop for Altera Corporation (ALTR - Long) at $18.50. ALTR was a recommended long from the previous weeks update.
   
10. Establish closing stop for Fiserv, Inc (FISV - Short) at $46.20. FISV was a recommended short from the previous weeks update.
    

Performance Review:


The portfolio will be updated on a weekly basis. The following trading day opening price is used to determine entry/exit levels.

Learn more about the Erlanger Technical and Short rankings. Click here.