Hi John:

e your daily insightful comments on the market and individual stocks.

1) i would appreciate if you can list a couple of good agressive stocks that you like for year end rally or even small rally for the begining of next year. If you know any.

Sorry, but I cannot give specific advice, only general ideas. Any stock ideas would be listed in the IA portfolio. That being said, I did mention if anyone wished to speculate on a year-end rally I would do so using the following:

S&P 500: SPY,or SPX calls 3-4 months out on a pullback.
DJIA: DIA Diamonds, or buy a 3-4 month call on the DJI on a pullback.
NASDAQ: QQQQ

2) About CHK. i know you have been commenting about insider purchase. But isn't it illegal to buy your company shares based on possible buyout of your company? I am sorry i am not too familiar with insider trading trasaction.

d keep up the good work.

Shawn

Yes, trading on inside information is illegal. But, this does not prevent it from happening. Insiders insulate themselves from conflicts of interest by investing in a takeover several months before the deal actually happens.

The SEC has strict rules in place that dictate when company insiders may execute transactions in their company's stock. All transactions that do not conform to these rules are a violation under US securities law. This doesn't mean that some insiders aren't smart enough to dance around the rules.

On November 23, 2005, I made these comments about some very timely selling by Cooper Company insiders:

Cooper Companies (COO):

en tracking the insider selling on this company for the better part of 2005. The corporate insiders have been selling in droves. In September, insider selling accelerated at prices ranging from $73-75.

On November 21st, the stock was trading at $73. The next day, November 22nd, the company lowered guidance for the fourth quarter, and the stock fell 19% in one day. COO stock is currently trading in the 50's.

Here are some comments from the company. "The buying has just absolutely dried up," Cooper Chairman and Chief Executive A. Thomas Bender said. "Many of the (retail) chains have moved to pushing two-week silicone products."

On September 19th, Chairman and Chief Executive Thomas Bender sold
47,800 shares, and 18,200 on the 20th, at prices above $74.

According to Yahoo, Cooper insiders have sold 947,583 shares in the last 6 months.

If the Feds thought they had a good case against Martha Stewart, the Cooper insiders need to be questioned.

A QUESTION ON MIDWAY GAMES (MWY):

John:

rgot to mention this stock for a huge insider trasaction.
MWY-midway games..the insider have been buying since this stocks was in 10s..and now it is 20 bucks..do you think it is a good company that you would add in your portfolio?

thanks for your comments.

I have followed the insider trading on Midway since the stock was around $5. Sumner Redstone, CEO and majority shareholder of Viacom (VIA & VIAB) has been the buyer of Midway stock.

Redstone, and his family business, National Amusements, has been accumulating Midway shares for about 2 years. Mr. Redstone's daughter, Sherri, has been hand picked by her father to be put on Midway's board.

Its become obvious that National Amusements, or the Redstone family wants to own or control Midway. If they buy Midway, they may take the company private. With the stock now in the 20's, their probably is not much more upside should a takeover occur.