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September 22, 2011 Dear Friend,
We previously listed 5 stocks as Buys on
our top picks tab, where were UFS, Xstrata, Anglo American, Vale and Duluth
Metals.
We deleted Duluth Metals, which spun out
Duluth Exploration Ltd to fulfill a near term positive and we are concerned
will have cap ex escalations and want to emphasize very liquid, larger cap
stocks.
We added Int'l Paper, Allegheny Tech, Teck and FCX, which makes our new "Top Picks" = UFS, XSRAF, AAUKY, VALE, TCK, FCX, ATI and IP. It is unusual for us to have 8 stocks, but we had tough choices cutting the list down. "Honorable Mentions" that we considered, but did not make final cut to a smaller list were Packaging Corp of America, U.S. Steel, Alumina Ltd and BHP Billiton. We avoided smaller cap or less liquid stocks, as from a practical standpoint you want stocks that you are able to get large volume executions. We avoided any company with a risk of a net loss or likely 2012 P/E > 10 times earnings if the world economy slows. We selected companies with 50% to over 100% upsides, in our opinion. We did not cite any short sale candidates previously, unfortunately, nor do we cite any currently. Faithfully,
John C. Tumazos, CFA
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Copyright © 2008 John Tumazos Very Independent Research,
LLC
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