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SSI Update

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Up on these recent recommendations: Visa (NYSE: V), Baker Hughes (NYSE:BHI) and Genentech (NYSE: DNA). Here's what I suggest you do now and an eye towards the future.

Update #078  April 28, 2008

Dear SuperStock Subscribers,

 

It's been a few weeks since I updated some of my recent recommendations including Visa (NYSE: V), Baker Hughes (NYSE:BHI) and Genentech (NYSE: DNA).

 

I recommended adding Visa (NYSE: V) to your portfolio holdings on March 20th in our SuperStock Flash Alert #03 at $65 or better. The next trading day should have allowed you to pick up shares for as little as $60. Today Visa is trading at approximately $76 a share.

 

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I said when I recommended Visa the stock is heading to $200. I still believe this will be the case despite the fact that Wall Street "experts" are calling Visa expensive. To that all I have to say is hogwash. The company has a license to print money and every pull back is a buying opportunity. Visa is the Apple (NASD: Appl) of the financial service sector. Still hedging against a pull back makes good sense. If you have at least 100 shares of Visa you can write a covered call option like June $85's

 

http://finance.yahoo.com/q/op?s=V&k=85.000000

 

Writing these covered calls will allow you to take in about $250 on every 100 shares you own. If Visa rolls all the way to $85 by June you'll still be sitting pretty because you'll wind up with $87.50 a share in pocket. Chances are Visa will run into the 80's but I expect it to fall short of $85 by that June expiration which means you just get to keep the $2.50 for share and get to hold the stock towards my $200 target.

 

I recommend Baker Hughes (NYSE:BHI) at $70 a share on February 19, 2008 (despite the 07 typo). This oil driller is now trading at $81 a share. I recommend some call writing on this one as well. The June $85's are paying almost $3 per share, so for every 100 shares you can drop about $300 in your account. My target was $86 a share so if I'm right on ths play you'll wind up with either $88 a share or if the stock falls back you'll have reduced your cost by almost $3 a share and be in position to ride the stock further with another call writing opportunity.

 

http://finance.yahoo.com/q/op?s=BHI&m=2008-06-20

 

 Genentech (NYSE: DNA): You should be in for about $68 a share, no more than $70. It recently ran to over $80. It's heading back to $80 and much higher. It's currently my favorite Biotech.

 

Best Wishes,

 

James DiGeorgia

Editor