The Gee$e.

[di4]

4/18/2007 ***********************************************
ZACKS.COM PROFIT from the PROS
** Tactics that Work in Good and Bad Markets **
***********************************************

Today's Topics: Wednesday - April 18, 2007

1) ZACKS RANK BUY STOCKS - Today we highlight four new stocks
with a short-term "Buy" or "Strong Buy" recommendation:
Middleby Corporation (MIDD), MasterCard (MA), Arcelor Mittal
(MT) and U.S. Steel (X). Get these stories below.

2) SCREEN OF THE WEEK - Kevin Matras explains how to find
winning stocks in the winningest sectors.

3) ZACKS EQUITY RESEARCH - A late winter chill helped improve
natural gas' storage level to some extent, but it still
remains above historical levels. Read the Analyst Interview
and get our Bull and Bear Stocks of the Day.

4) ZACKS WEALTH MANAGEMENT - Discover the best way to utilize
various asset classes within a shorter time frame.

5) BEST OF THE ZACKS $100,000 CHALLENGE- Zoroleheros says U.S.
indices are overbought right now and are due for a correction.
Read this Simulator participant's blog post along with two of
his competitors.


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==============================================

1) ZACKS RANK BUY STOCKS

==============================================

Zacks #1 Rank stocks average a 31.8% annual return. Every day
on Zacks.com we highlight four new Zacks Rank Buy stocks. Each
individual stock is chosen based on how well they match the
criteria for the four main schools of investing: Aggressive
Growth, Momentum, Growth & Income and Value.

Aggressive Growth - The Middleby Corporation (MIDD)

The Middleby Corporation (MIDD) has met or exceeded earnings
estimates in 13 consecutive quarters, with 12 of those periods
registering positive surprises. One analyst raised his numbers
for this year. Over the past 60 days, this year's earnings
estimates have increased 22 cents to $6.02 per share. The
stock is trading at 20x next year's estimates compared to its
long-term growth rate of 15%. Read the full analysis on MIDD
at http://at.zacks.com/?id=2498


Growth & Income - MasterCard Incorporated (MA)

MasterCard Incorporated (MA) topped analysts' earnings
expectations over the past three quarters by an average margin
of 55%. Consensus estimates have jumped over the past two
months. On Feb 9, the Board of Directors declared a 66.7%
boost in its quarterly cash dividend to 15 cents per share
from nine cents. MA's return on equity tops that of the
industry average-23% compared to 16%. Read the full analysis
on MA at http://at.zacks.com/?id=2499


Momentum - Arcelor Mittal (MT)

Arcelor Mittal (MT) is up over 28% for 2007, and while
slightly off its highs, momentum should continue to the
upside. Supporting the trend, the latest earnings surprise was
followed by upward earnings revisions and the announcement of
a share buyback program. Read the analysis of MT at
http://at.zacks.com/?id=2500


Value - United States Steel Corporation (X)

United States Steel Corporation (X) exceeded analysts'
earnings expectations in four straight quarters by an average
margin of 20.8%. Consensus earnings estimates for both this
year and next are up over the past 30 days. On Mar 29, X
announced that it will acquire Lone Star Technologies, Inc.,
making it North America's largest producer of tubular steel. X
has a price-to-book ratio of 2.9 and a current dividend yield
of 0.76%. Read the full analysis on X at
http://at.zacks.com/?id=2501


Zacks Rank Resources

* Zacks Rank Homepage at http://at.zacks.com/?id=3102

* Zacks Elite: Discover Ben Zacks' hand picked #1 Rank stocks
on his Timely Buys list at http://at.zacks.com/?id=2546

* Zacks Rank Breakout Trader: When a stock moves quickly to a
Zacks #1 Rank, this trading service uses that turnaround to
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* Zacks Options Trader: Combine the timeliness of Zacks #1
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* Zacks Wealth Management: Own all the Zacks #1 Rank stocks in
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==============================================

2) SCREEN OF THE WEEK

==============================================

Zacks.com offers a unique stock search strategy from Kevin
Matras each week to help you Profit from the Pros. Each week,
Kevin shares with you another winning screen he has discovered
using the Research Wizard software from Zacks Investment
Research. Learn more about the Research Wizard at:
http://at.zacks.com/?id=2335

"Great Stocks often have Great Peers"

We've mentioned it before, but it's worth saying again; nearly
half of a stock's price movement is tied to the performance of
its respective group (sector and industry).

That being said, most great stocks from great groups often
have some great peers as well.

If you find yourself in a killer trade (or wished you were in
one), take a look at the characteristics of THAT STOCK and
then hunt within its group to find OTHER STOCKS that share the
same characteristics.

Does a certain outstanding stock exhibit great sales growth?
I'm sure there are at least a few within its group that are
also showing similar numbers.

What about increasing margins? If the stock is doing well,
it's likely that the industry itself is experiencing
meaningful increases in margins too.

This type of screening is often called `modeling'. Figure out
the components of what makes something successful and
concentrate on that.

If you're in love with a certain stock or sector but it's not
doing anything, or even moving against you, then move on.

If you see great stocks in great groups while you're bemoaning
your misfortune in laggards or non-movers, find what stocks
are successful and model them.

If the winningest stocks in a particular sector or industry
are trading at PE ratios that you generally won't consider,
... instead consider this; if you had considered them, they
would be winning for you.

So therefore, see what characteristics some of the best stocks
have in common and try getting on some of those.

Here's something to start you off.

The top four Sectors based on the percentage of stocks at (or
within 10% of) their 52 week highs are listed below.

Current standings:

1 Utilities 69%
2 Conglomerates 59%
3 Finance 52%
4 tie between:
Transportation 48%
Basic Materials 48%

Here are a few stocks from each of those current top sectors
for Tuesday 4/17/07):

SWX Southwest Gas Corp. - Utilities
ITT ITT Corp. - Conglomerates
DLR Digital Realty Trust - Finance
RJET Republic Airway - Transportation
KOP Koppers Holdings, Inc. - Basic Materials

Now try screening for stocks in these Sectors that are in the
best Industries.

In fact, in the Research Wizard, you can rank the Industries
on whatever item you choose. (Same thing for the Sectors.)

Want to find the `best' Industries based on the Zacks Rank?
You can. What about the highest ROE or biggest Earnings
Estimate Revision? No problem! Whatever items you want to use
to rank your Industries can all be done with a few clicks of
the mouse.

And then you can even narrow it down to the best stocks within
those groups, again based on whatever criteria you choose.

To search for the best stocks (and Groups) yourself, sign up
for your two-week FREE trial to the Research Wizard. Remember
the key to successful screening is in discovering those
screens that have produced profitable results in the past. And
that's exactly what you get with the powerful Screening and
Backtesting ability of Research Wizard. You can do it. Learn
how, today. http://at.zacks.com/?id=2335

Discover all the Free Screening Tools on Zacks.com at
http://at.zacks.com/?id=2336

Disclosure: Officers, directors and/or employees of Zacks
Investment Research may own or have sold short securities
and/or hold long and/or short positions in options that are
mentioned in this material. An affiliated investment advisory
firm may own or have sold short securities and/or hold long
and/or short positions in options that are mentioned in this
material.

====================================================

3) ZACKS EQUITY RESEARCH

====================================================

In yesterday's interview with senior energy analyst Sheraz
Mian , we focused on more of the big picture regarding the oil
industry going forward. Today, we wanted to address some of
the specific sub-groups in the industry, instead.

Let's talk about some of these sub-groups in the oil industry.
How is E&P [Exploration and Production] doing, for instance?

One major differentiating factor between E&P companies and the
large, integrated major oil companies is their commodity
exposures. In addition to crude oil and natural gas prices,
the integrateds are exposed to refining margins, marketing
margins as well as chemical margins - not just in the U.S. but
on a global level. The E&P companies, on the other hand, have
a disproportionate exposure to U.S. natural gas prices.

More...

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Zacks Equity Research continued...

Developments in U.S. natural gas markets, in turn, have a
strong impact on how stock prices of E&P companies perform.
Natural gas prices have generally been weak since early 2006,
primarily due to unfavorable weather. A late chill in the most
recent winter helped improve the commodity's storage level to
some extent, but it still remains above historical levels. As
a result, while the commodity's price outlook has improved to
some extent, it still remains relatively tentative. In
addition to facing commodity price pressures, the E&Ps are
also dealing with a fairly steady cost creep, both from the
oilfield and personnel sides. So margins are getting squeezed,
and this is reflected in the stock prices. On balance, though,
we expect the group to do better this year compared to 2006.

What about for the Oilfield Service group?

This group is in pretty good shape, with respect to earnings
power and cash flows. We can look at this group by breaking it
up into three distinct sub-groups.

The first group contains the larger names that service the
industry on a global level - not just the U.S.-based and
international publicly traded oil and gas companies, but also
national oil companies, the state-owned oil companies of OPEC
and non-OPEC countries. These companies - some typical names
are Schlumberger (SLB), Baker-Hughes (BHI), and Halliburton
(HAL). We like all three, but prefer the latter two on
valuation grounds.

The other sub-group is exposed to drilling operations within
the on-shore U.S. So if the natural gas markets remain
relatively tentative and weak, then drilling operations in the
U.S. might suffer, and that might impact the results and the
stock performances of these companies. You have companies like
BJ Services (BJS) and Nabors (NBR) in this group. There is
some evidence that onshore drilling has been softening in
response to weakness in natural gas prices, which has been
weighing on these stocks for a while.

Then you have the offshore drillers. Of this group, the ones
who have fleets that can drill in deep waters, both in the
U.S. and internationally, are well positioned - both right now
and on a long-term basis. You have companies like Diamond
Offshore (DO) and Transocean (RIG) in this group.

So in a broader outlook, look for differentiated names within
the sector, but on the whole the outlook is pretty much
positive. This has been so in the recent past, as well, and is
expected to continue in 2007.

Read the complete ANALYST INTERVIEW article at
http://at.zacks.com/?id=2525

Sheraz Mian is a senior analyst covering the oil & gas
industry for Zacks Equity Research.


****************************************************************

MORE FROM ZACKS EQUITY RESEARCH...

Analyst Blog

Real-time market insights from Zacks Equity Research Analysts.
Stocks featured recently include Horizon Offshore (HOFF), Joy
Global (JOYG), Amdocs (DOX) and Johnson & Johnson (JNJ). See
their latest posts at http://at.zacks.com/?id=2582


BULL OF THE DAY

URS Corporation (URS) - Pricing to Improve.
Full Zacks research report at http://at.zacks.com/?id=2325


BEAR OF THE DAY

Natural Resource Partners (NRP) - Ripe for Pullback.
Full Zacks research report at http://at.zacks.com/?id=2326


EARNINGS PREVIEW

The Week of Apr 16 - Apr 20

Earnings season kicks into high gear this week:
http://at.zacks.com/?id=3243


EARNINGS TRENDS

Expectations Set Low for First-Quarter Earnings

Even with a "normal" level of earnings surprises, S&P 500
earnings growth will struggle to make it to double digits this
quarter:
http://at.zacks.com/?id=2396


Rating Upgrades (Premium)

Find out which stocks have been recently upgraded by Zacks
Equity Research:
http://at.zacks.com/?id=2990


Zacks Equity Research Buys (Premium)

Read the reports on all of the stocks on the
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****************************************************************

Learn More about Zacks Equity Research at
http://at.zacks.com/?id=2323

Full access to Zacks Equity Research is now available on
Zacks.com:
http://at.zacks.com/?id=2992

Zacks Wealth Management: Own all the Zacks #1 Rank stocks in a
portfolio managed by Zacks. Learn more at
http://at.zacks.com/?id=2713


====================================================

4) ZACKS WEALTH MANAGEMENT

====================================================

Every week, Zacks Wealth Management provides informative
articles on how to build and protect wealth. Today's topic is:

Sequence of Return Risk

In past commentaries we discussed the optimal level of risk
based upon various personal criteria. In that discussion (or
any discussion) there are major assumptions we make about the
performance of various asset classes. It is important that we
keep in mind that these historical numbers are based on years
of data.

Your portfolio performance matters most during the period when
you have the most invested. We as professionals tend to make
the mistake of quoting historical returns of the market based
upon decade's worth of data whereas the average person plans
his or her life in three, five, or ten year segments at best.
Some studies have shown that since 1925, large and small-cap
stocks combined have lost money 31% of the time over one-year
rolling periods; over five years they have lost money 13% of
the time. Only over 20 year rolling periods did they not lose
money. So what is the best way to utilize various asset
classes within a shorter-time frame?

Remember the basic principle of investing - "buy low, sell
high!" If you are in the growth stage of your wealth, add to
the asset class that has been underperforming. This is
contrarian in nature but will have a significant impact on
long-term returns. Rebalancing your portfolio on a regular
basis will help you optimize this strategy.

It is more challenging for those already in retirement who are
in the distribution phase of their assets. Regardless, the
same principle applies. If the bond portion of your portfolio
is outperforming equities, you may want to make your
withdrawals from your bond allocation and allow for the equity
portion to recover.

It is always wise to have a cushion of cash and cash-related
positions so you are not forced into a situation of having to
draw assets out during a market correction. This reserve
should generally range from three to six months of living
expenses.

The bottom line is this: separate your decisions of what to
invest in or draw from based upon the relative performance of
the various asset classes in your portfolio. In the long-run,
this will have a dramatic impact on the actual returns of your
portfolio and also keep the portfolio from becoming too
unbalanced.

Feel free to contact me at [e-mail] if you have any
questions or comments.

Fritz Fiebig a Certified Financial PlannerTM professional.

This article is provided for informational purposes only and
does not constitute legal or tax advice. Zacks Investment
Management, Inc. is not engaged in rendering legal, tax,
accounting or other professional services. Publication and
distribution of this article is not intended to create, and
the information contained herein does not constitute, an
attorney-client relationship. Do not act or rely upon the
information and advice given in this publication without
seeking the services of competent and professional legal, tax,
or accounting counsel.

CFP Board, a nonprofit regulatory organization, fosters
professional standards in personal financial planning so that
the public values, has access to and benefits from competent
and ethical financial planning. CFP Board owns the
certification marks CFP(R), Certified Financial Planner(TM) and
federally registered CFP (with flame logo), which it awards to
individuals who successfully complete initial and ongoing
certification requirements. CFP Board currently authorizes
more than 50,000 individuals to use these marks in the United
States. For more about CFP Board, visit
"http://www.cfp.net/"www.CFP.net.

Learn more about Zacks Wealth Management at
http://at.zacks.com/?id=2994


==============================================

5) Best of the Zacks $100,000 Challenge

==============================================

Zacks is conducting a nationwide talent search to find the
very best stock pickers. The winner gets a $100,000 dream job
with Zacks! Sign up for free to join the competition, or just
read what stocks the leading players are trading on the Zacks
Challenge Player Blogs. http://at.zacks.com/?id=3469

Best of the Zacks Challenge Player Blogs
-----------------------------------------

Here's what the leading players are saying lately:

Zoroleheros (Rank #2 with $190,696)

MARKET IS OVERBOUGHT
The market continues to surprise me... it keeps on getting
higher and higher even if the fundamentals are deteriorating...
but it's true that if you price the US market in most of the
major currencies, it's been in a bear market for a while...

Read More or Comment on this post:
http://at.zacks.com/?id=3491


Java J (Rank #106 with $125,020)

>> JAVA'S MARKET MUSINGS #32 <<
We are now right in the lower portion of overhead resistance,
and I would expect some sort of a pullback as sellers appear
in this price area going back to late February... it will be
important to observe how resilient the market will be on any
kind of profit taking decline...

Read More or Comment on this post:
http://at.zacks.com/?id=3492


Beris (Rank #15 with $154,476)

WHEN THINKING LATIN, THINK BRAZIL (ELP)
The Mexican stock market has risen to record highs and many of
the Mexican stocks traded both in Mexico and the US have
reached high valuations. Brazil, on the other hand, along also
reaching highs, still has lower stock valuations...

Read More or Comment on this post:
http://at.zacks.com/?id=3493


Read all the Player Blog posts at:
http://at.zacks.com/?id=3482


****************************************************************

OTHER TOOLS FROM ZACKS

At the heart of Zacks Investment Research is the Zacks Rank
investment philosophy that continues to vastly outperform the
market. Our Zacks #1 Rank (Strong Buy) List has generated the
following results for investors:

* +31.8% average annual return since 1988 versus +11.8% for
S&P 500

* Outperformed S&P 500 in 17 of the last 18 years

* +43.8% total return from 2000 to 2002 - the worst
bear market in over 60 years.

* +18% in 2005

And just as importantly, the Zacks #5 Rank stocks (Strong
Sell) list has alerted investors as to which stocks to dump
from their portfolios to avoid unnecessary losses.

To truly take advantage of the Zacks Rank, you need to first
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FREE PORTFOLIO TRACKER

Do you believe that these events affect stock prices?

* Broker Recommendation changes
* Earning Estimate revisions
* Earnings Announcements
* Zacks Rank changes

If you answered yes, then how are you staying on top of these
changes for your stocks? If you are one of the 45,000
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---------------------------------------------------------

We hope you enjoyed this issue of "Zacks.com Profit from the
Pros" and we look forward to visiting with you again tomorrow.

REFER-A-FRIEND

If you enjoy this e-mail newsletter, then please pass it along
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Regards and Happy Investing,

Charles Rotblut, CFA

Senior Market Analyst
Zacks.com

p.s. What is the mission for Zacks Profit from the Pros?
To find out how we will help you become a more
successful investor, visit http://at.zacks.com/?id=2334

The Zacks Performance Rank performance is the total return
(price changes + dividends) of equal weighted portfolios,
consisting of those stocks with the indicated Zacks Rank,
assuming zero transaction costs and monthly rebalancing.
Simulated results do not represent actual trading and may not
reflect the impact that economic and market factors might have
had on decision-making if an adviser were actually managing a
client's money.

*The S&P 500 Index is a well-known, unmanaged index of the
prices of 500 large-company common stocks, mainly blue-chip
stocks, selected by Standard & Poor's. The S&P 500 Index
assumes reinvestment of dividends but does not reflect
advisory fees. An investor cannot invest directly in an
index.

Disclaimer: Past performance does not guarantee future
results. Investors should always research companies and
securities before making any investments. Nothing herein
should be construed as an offer or solicitation to buy or sell
any security.

To contact us by mail:

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Attn: Profit from the Pros
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