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Sunday, July 30, 2006

AAS Top Ten as of July 21, 2006

Each week I provide a graph of six holdings from the Alpha Advisor Service, LLC newsletter. Included in the letter, which is provided to our subscribers on Tuesday and Thursday mornings, is the Top Ten page. The Top Ten page is broken down into six groups of equities that include: Long Stocks, Short Stocks, Exchange Traded Funds, Fidelity Select Funds, ProFunds Funds and Rydex Funds. We include ten equities within each group, ranked first by the current AAS Recommendation, and then by the AAS Rating Score. Those that are “AAS Recommended Buys” and that have the highest AAS Rating Scores are at the top. The graphs below represent the top holding within each of the six groups as of Friday, July 21, 2006. I’ve included the date that the equity was most recently labeled an “AAS Recommended Buy,” or in the case of the short-sell group, an “AAS Recommended Sell.” I’ve also included the current recommendation of each security.

CPI Corp. (CPY) was the highest rated stock within the “Long Stock” group as of July 21, 2006. CPY was upgraded to an “AAS Recommended Buy” on April 19, 2006 at a dividend-adjusted price of 20.87 (the company paid a $0.16 dividend on May 18, 2006). It shifted from an “AAS Recommended Buy” to an “AAS Recommended Neutral” on July 24, 2006. Since being up-graded to an “AAS Recommended Buy,” CPY is up 38.24%.

For the second week in a row, NVR Inc. (NVR) was the highest rated stock within the “Short Stock” group. This group includes those securities that are “AAS Recommended Sells” and that have the lowest AAS Rating Scores. This group is included in the newsletter for those investors looking to add alpha to their portfolios by shorting companies. NVR became an “AAS Recommended Sell” on April 27, 2006 at a price of 763.00 and closed at 484.49 on Friday, July 28th for a loss of -36.50%. Currently, NVR is an “AAS Recommended Neutral.” Shorting stocks, although profitable if done correctly, is risky business. There's no need to do it unless you have the experience, knowledge, and capital to cover your short if needed. QMA does not short stocks for its clients and AAS does not recommend the practice to its subscribers.

The iShares Cohen and Steers Realty Majors ETF (ICF) was the highest rated Exchange Traded Fund for the second week in a row. It was up-graded to an "AAS Recommended Buy" on June 29, 2006. As of the close on Friday, July 28th, ICF has gone up 5.83% and currently remains an "AAS Recommended Buy."

Healthcare, Utilities, Telecommunication and Real Estate have been the only four “AAS Recommended Sectors” over the last few weeks. As such, the Fidelity Select Healthcare Fund (FSPHX) was this highest rated Fidelity Select mutual fund as of July 21, 2006. It was upgraded to an “AAS Recommended Buy” on July 20, 2006 at a price of 119.32. As of the close on Friday, July 28th, FSPHX has gone up 3.31% and currently remains an “AAS Recommended Buy.”

The ProFunds Ultra Short OTC Fund (USPIX) was again the highest rated ProFund mutual fund for the week ending July 21, 2006. This fund is leveraged to correspond to twice the inverse of the NASDAQ 100 Index and has out-performed because of the recent weakness in the tech sectors. USPIX was upgraded to an "AAS Recommended Buy" on July 5th when the price was 17.48. As of Friday, July 28th, USPIX closed at 18.50 for a gain of 5.84%. Because of the past weeks market activity, and the potential strengthening of the tech sectors, USPIX is now an "AAS Recommended Neutral."

Again, the Rydex Inverse Dynamic OTC Fund (RYVNX) was the highest rated Rydex mutual fund for the week ending July 21, 2006. This fund is also leveraged to correspond to twice the inverse of the NASDAQ 100 Index. RYVNX was upgraded to an "AAS Recommended Buy" on July 6th at a price of 22.19. As of Friday, July 28th, the close was 23.43 for a gain of over 5.59%. Similar to its ProFund counterpart above, RYVNX is now an "AAS Recommended Neutral."




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