If you own your home outright or if you’re not
counting on real-estate-generated capital gains to
bankroll your grocery bill in the short term,
you’re probably set to weather any fluctuations in
the market without batting an eye. If you want to
make money from the ongoing boom, keep col-
lecting your dividends from IMH and other
REIT’s and set a generous trailing stop based on your original purchase price. And if you want to make money from the
potential downturn in the real-estate market, our
Chicago correspondent Bryan Bottarelli has just
finished compiling a hard-hitting report that
shows you exactly what hedge position to take.
Please check your mailer next month for his
special invitation. “While investment trends come and go, the yearly financial and
psychological milestones stay pret-
ty much the same. The trick is to
get some idea of the market effects
of these dates, and take advantage
of them.” —Stockwar rants.com
The ultimate trading secret of professionals is really the most
obvious inclination of the masses.
It’s practically a no-brainer to buy
H&R Block during tax season or
Cadbury before Easter. Professionals like us have
long used seasonal cycle research to make money
year-round. In our Year of Profits Calendar, we look for
stocks and stock market patterns that have a proven
cyclical track record. And we’ve done pretty well
riding the cycle waves. So far in 2005, we’ve nailed
21% on natural gas index calls, 23% on online book-
seller Varsity, 49% on Martha Stewart Living puts
and a whopping two-day gain of 165% on
Monster.com puts—simply by identifying and play-
ing seasonal market patterns. This month, I’ve found a retail play with a strong
history of popping in the spring, and we’re looking
to take some healthy short-term gains on this year’s
fluctuation. Nautical dreams When the warm weather begins to triumph over nasty winter chills, some look forward to tending to
their burgeoning backyard gardens. Some plan
weekend hiking excursions. But for many, warm weather means only one
thing: time to hit the open waters and go cruising
on a boat. For the manly men, no shoddy canoe will
suffice—only a rip-r oaring powerboat will do. North Carolina-based Fountain Powerboats
(FPWR:NASDAQ) delivers the goods. Designing and
manufacturing a vast range of sporting boats, fish-
ing boats, cruisers and racers, Fountain’s diverse
product line has something for everyone. Fountain
boats are recognized as some of the top-performing
and best-constructed boats on the market, and they
enjoy the highest resale value in the industry. The average Fountain powerboat measures
between 38 and 48 feet in length, sleeps four com-
fortably and will travel 40 to 65 mph. All Fountain
boats are crafted with a unique deep V-shaped
fiberglass hull, allowing for high performance and
reliable power. If you’re wondering where to score a recreation-
al Fountain boat, the likelihood is that you won’t
have to go too far. Their boats can be found at 55
dealers across the country, as well as beyond our
borders at three international locations. But Fountain also goes beyond the recreational
realm. They produce military craft, both domestically
and internationally, and can boast top-name cus-
tomers like the US Navy, Coast Guard and the
Customs Service. On the books Fountain landed US$59.6 million on the books in 2004, a 14% increase from 2003’s earnings. FY 2004
showed the highest net sales in company history,
up 31% from 2003. Making the rounds at boat shows, dealer meet-
ings and conferences around the country, Fountain
Powerboats is looking to grow its earnings by an
additional 25% this year and is predicting a 31%
jump in sales. FPWR also sports a GPE (growth to
P/E ratio) of 0.60. Anything less than 1.0 is consid-
ered undervalued. Even better, Fountain
Powerboats has about half the P/E and nearly three 3 www.taipanonline.com APRIL 2005 Next... Powering up for a proven pop Erin Beale
