-Executive Summary-

• The markets recovered most of the sell-off from yesterday afternoon.  The equities markets are responding with strong resilience to difficulties in Japan and the Middle East.  A flat or predictable market is all that we need for story-stocks to emerge.
• We sent out 2 SMC Intra-Day Alerts – One involving China Shen Zhou Mining (Ticker: SHZ $4.92) and one involving Silicon Image, Inc. (SIMG).  We’ve included them below.  SHZ is very speculative.
• We SOLD our Silicon Image, Inc. (Ticker: SIMG) “toe-in” holding at $9.05/share after a very reputable firm questioned its upcoming earnings, giving it a downgrade due to exposure to Japan.  We can always get back on board if the stock shows resilience or on extreme weakness.
• Here’s our SECOND Stock Market Companion Customer Testimony video.
  

– Stock Market Companion – Current Holdings –

Nr.	Co.	Ticker	Action	Entry Date	Current Gain (Loss)
1	Nexxus Lighting	NEXS	Holding	3/18/2011	-20%
2	Dell Inc.	DELL	Holding	3/21/2011	-1%
3	Nvidia, Inc	NVDA	Holding	3/24/2011	+4%
4	Silicon Image, Inc.	SIMG	Sold Today	3/24/2011	-6.8% (Final)

5

China Shen Zhou Mining

SHZ

Purchased Today

3/29/2011

+1%

If the above “Current Holdings” table is empty it means that we are not holding ANY stocks at this time and that we are therefore 100% in cash.

– Markets “At a Glance” –

(Please scroll down to the end of the report to see your favorite benchmarks – Dollar, Oil, Gold … closing prices and daily direction.)

Market	Price (Today’s Close)	Unit of Measure	Today’s Direction
SP-500	1,319.44	Index	UP = +9.25 points
DOW-30	12,270.01	Index	UP = +81.13 points
NASDAQ	2,756.89	Index	UP = +26.21 points
NASDAQ 100	2,325.54	Index	UP = +22.44 points

– Market Trends –

Trend	SP-500	DJ-30	NASDAQ	NASDAQ 100
Short Term	Flat	Flat	Flat	Flat
Intermediate	UP	UP	UP	UP
Long Term	Lateral	Lateral	Lateral	Lateral

*Summary of terms from Trader Vic II-Principles of Professional Speculation (pg. 140-141)
*_________* Represents a change in trend rating.

– Market Perspectives –

For your added perspective, we’ve included this chart of the broader market (Successful stock investors develop and start with a minds-eye view of the broader market and keep it clear) –

1. SMC SP-500 ETF Daily Chart (Click to open helpful chart in a separate browser window).

– Today’s Highlights –

The markets have stabilized.  Extreme conditions in the world’s third largest economy = Japan, combined with extreme unrest and power struggles taking place in the world’s leading oil producing nations have caused the markets to pause in their recent ascent, but NOT sink very far.

To many, this is an enormous surprise.

Today, Japanese technicians have discovered plutonium in the soil outside of the reactor.  Japan has declared a state of “maximum alert”.  This is terrible news.

The markets did NOT sell-off on this news.

In the U.S., increases in fuel costs and the sinking of home values are taking their toll on consumer sentiment.  Today the Case-Shiller index of home prices for the last three months provided further disappointing news concerning home values.

Where else can Americans and other investors find increasing asset values other than valuable stock stories – the ones where sales, earnings, and / or market share are increasing, yet the share prices have not yet reached a zenith?  Very few places – and fewer still with the liquidity of the stock market, where you can take your money and head to the sidelines with the click of a mouse button.

– Story-Stock Investing –

We sent out these SMC Intra-Day Alert’s today –

Dear Subscriber-Friend –

There is a small scale drama unfolding with China Shen Zhou Mining (Ticker: SHZ).   The company reported revenues increasing this morning to $4.9 million for the quarter.  That would be roughly $20 million for the year.  That’s a very, very small company.  Here’s what interests us –

1. Revenues have tripled in one year.
2. The company is anticipating net earnings of $11 million.
3. The company has approx. 28 million shares out, but only 7 million shares in the public’s hands.  60% of these public shares are sold short.
4. When we do the math using their net earnings, we calculate that the stock should probably be about twice this current price of $4.80/share, simply on a price / earnings basis.
5. Given the huge percentage of shorts in the stock who would need to cover their shares in the event of the stock going higher, the stock could really move higher for a time, as shorts would be forced to cover.

There is a lot of negative press on this stock, centering on the idea that the company has had several 5 chief financial officer’s in a short period of time.  That’s never good.

These two articles highlight some of the controversy surrounding the co. –

Article 1

Article 2

The company was able to raise $20 million in cash from private investors at a share price of approx. $7, back in January.  But then the negative press came out…

We are not opposed to profiting from a little bit of drama, and have purchased a modest holding in the stock here at $4.87/share.

Our stop is just under $4/share.

Dear Subscriber-Friend –

Growth stock investing involves being prepared to take a modest risk for strong gains.

We are very interested in Silicon Image, Inc. (SIMG), but today the stock was DOWNGRADED by a reputable financial company named Needham.  Growth stocks that are in their early phases of lining up investor support for their story, are susceptible to downgrades and can lose a lot of value when hit with one.

BUT downgrades are not all equal.  We have experienced over the years that downgrades can actually be buying opportunities when the downgrade is based on VALUATION of the stock … because the story behind the shares increase in value is often stronger than its current valuation.

Today’s downgrade of Silicon Image, Inc. is based also on expectations for an earnings MISS ahead – due to trouble in Japan.  This may be significant, so we are going to take the path of caution, defer to this downgrade and SELL our exploratory shares in Silicon Image, Inc. (SIMG) and wait for a more opportune time to engage the stock.

Notice please that the opposite has happened with our investment in Nvidia, Inc.  Yesterday the stock received an UPGRADE and a $25/share target.

For your protection and our own, we would like to remind everyone that this is not an investment recommendation for any particular individual.  We cannot possibly know the risk tolerance and investment suitability of such investments for any particular subscriber. Successful investors know their own objectives, purposes, and risks associated with any investment – whether in real estate, stocks, or other investments.  Each investor is on their own.

We are simply reporting the SMC actions in the market place.

Your – Stock Market Companion

For your protection and our own, we would like to remind everyone that this is not an investment recommendation for any particular individual.  We cannot possibly know the risk tolerance and investment suitability of such investments for any particular subscriber. Successful investors know their own objectives, purposes, and risks associated with any investment – whether in real estate, stocks, or other investments.  Each investor is on their own.
We are simply reporting the SMC actions in the market place.

Your – Stock Market Companion

Please remember – at the Stock Market Companion we do not and cannot give individual investment advice. According to the State of Washington RCW 21.20.005 the Stock Market Companion is not a Registered Financial Advisor and we do not render any advice on the basis of the specific investment situation of a particular individual. This information is for a wide readership and is not intended for any particular individual,  and under no circumstances should our Market Update or Watchlist be considered an investment recommendation or plan for any specific individual.  By accessing this material, you agree that the Stock Market Companion will not be held liable for any actions taken by a subscriber or other parties.  Please seek the council of a broker or other licensed investment professional for accurate pricing and concerning the suitability of all investments that you may be considering. Disclosure : You understand that the Stock Market Companion holds positions in the above mentioned securities.  Based on market related or personal events these positions may change without notice.

– Stock Market Companion – Performance –

Please click on this chart to see the Stock Market Companion 15MinuteStocks stock performance versus the SP-500.  It will open in a separate browser window.
* Gains (losses) do not include brokerage fees.   Our returns are very strong … BUT …  WE have to remind everyone just like all other financial sites in America – Past Performance is No Guarantee of Future Returns.  Unlike others however, our objective is to teach you to be able to make these types of strong returns On Your Own.

All of the investments – stocks, entries, and exits are listed on our Stock Market Companion Watchlist at the bottom of the spreadsheet, in the section labelled Former Holdings.

– Benchmarks “At a Glance” –

US Dollar	1.4110 USD = 1 Euro	USD / EUR	Dollar = Down a bit.
Gold	$1,419.90	Ounce	Gold =Flat
Oil	$104.55	Barrel (West Texas Crude)	Oil = UP a dollar.
30 Yr. Fixed Mortgage	4.79%	Percent	Flat
10 Yr. Bond Yield	3.49	Percent	Flat
1 Yr. CD	1.16	Percent	Flat

Data Source : Financial Visualizations Inc.

Signing-Off for Today,

Your -Stock Market Companion

** Stock Market Companion Disclaimer **

The Stock Market Companion (SMC) Market Update and Watchlist are published documents to subscribers that show how we (SMC) are viewing the markets and what we are watching, investing in or selling today.  This information is for a wide readership and is not intended for any particular individual,  and under no circumstances should this Market Update or Watchlist be considered an investment recommendation or plan for any specific individual.  By accessing this material, you agree that the Stock Market Companion will not be held liable for any actions taken by a subscriber or other parties.  You understand that the Stock Market Companion holds positions in the above mentioned securities.  Based on market related or personal events these positions may change without notice.

Furthermore, the Stock Market Companion, Inc. is a content provider and publisher and not a registered broker-dealer or licensed investment professional.  Our intent is to publish very accurate market information for an audience of subscribers (1000+ subscribers).  By accessing the Stock Market Companion website and/or using the Stock Market Companion products and services such as this Market Update and accompanying Watchlist, you understand and agree that the material provided in the Stock Market Companion products and services is for informational and educational purposes only, and that no mention of a particular security in a Stock Market Companion product or service constitutes a recommendation to buy, sell, or hold that or any other security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.  To the extent any of the information contained in any Stock Market Companion product or service may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person.  Before selling or buying any stock or other investment you should consult with a qualified broker or other financial professional to verify pricing information and to solicit advice as to the appropriateness of a given transaction or investment.