Blue

I know, I know, I highlighted a Joni Mitchell album previously, but it is what I know. Actually it is what I am as well. I do believe in JG's MFI approach. Actually I feel like the Cowardly Lion, "I do believe (in spooks), I do believe, I do believe!" I believe JG tested it. I believe he is trying to help the little guy (or gal).

However, it seems that the MFI stocks have had a tremendously crummy run in quarterly reporting. Let us look at the track record:

1. DLX - don't get me started, warned severely for the next decade.
2. FDG - was disappointing last week.
3. HW - warned severely.
4. ORCT - bad guidance.
5. OVTI - bad guidance.
6. TBL - bad earnings today.
7. TGIS - hit hard last week by income tax charge (overblown IMHO).

The Fast & Furious
I had four companies report earnings today.

TBL - pretty much met expectations, losing about 20 cents per share(Timberland Reports Second Quarter Results). I don't think this was a surprise, but the stock sold off $1.04. They did guide the full year at the low end of previous range, with the 3rd qtr not looking great. They do expect some improvement in 4th quarter... not sure I'll still have the stock to witness that.

PGI - wow, went up 5& today. (Premiere Global Services Reports Second Quarter Results). Overall revenues were down, but it seems that ongoing revenues were up 7%. They beat expectations, 13 cents with 18 cents, though I am a little fuzzy on some of their adjustments, not sure if excluding equity-based compensation is proper. They did confirm 2006 and said they continue to expect steady growth in 2007. Nice.

PCU - I am always confused with their earnings (UPDATE - Southern Copper quarterly net rises 41 percent) as they always appear mid-day as I think they are also traded in Mexico. As the headline mentions, they made 41% more despite a 13% drop in sold copper (due to a strike). It was noted that the price of copper more than doubled in past year from $1.53 to $3.37 a lb. They did not say when the strike would be resolved. The EPS of $2.98 seems below estimates of $3.08.

ISNS - hot off the wire, ISNS seems to have had a stellar quarter. (Image Sensing Systems Announces Second Quarter Financial Results). Net income was up 40% Y o Y. Revenues are up 29% in 1st half of 2006 vs 1st half 2005. They have been having success in Asia. I am pleased.

Rearview Mirror

Here is how some sample portfolios are faring:

February 24th - Down 6.1% (benchmark -1.9%)
April 7th - Down 15% vs benchmark -3%
May 12th - down 5.7% vs -2.6% benchmark
June 1st - down 4.3% vs -1.1% benchmark.

Let us face it, the MFI isn't working for this iteration thus far. It is not a question of whether you are down, but how much you are down. Will it change? Stay tuned to this same Blog Channel at the same Blog time.

Ok, that is it for now. I will try and post a quick comment tomorrow, but then I'll be going offline for a couple weeks as I'll be taking a summer vacation. Maybe my portfolio will do better without the pressure of daily scrutiny. I do give myself credit for not having sold anything.

Have a great two weeks!