AlphaProfit Sector Investors' Newsletter: January 24, 2006 Bulletin

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AlphaProfit Newsletter: January 24, 2006 Bulletin

Subject: The Move in Fidelity Select Energy Service

Dear Valued Subscriber,

Shares in the energy service group have been particularly strong this year and Fidelity Select Energy Service (FSESX) is up about 19.5% as of yesterday’s close. The sharp upward move in the energy service group is supported by a surge in crude oil prices. A strong earnings report and optimistic outlook from group bellwether, Schlumberger last Friday also added to the bullish enthusiasm.

Concern that Iran’s escalation of its nuclear program may reduce supplies and unrest in Nigeria are among the factors that have driven crude oil prices higher. While it is hard to predict the course of crude oil prices, we believe these factors have the potential of raising the oil price floor.

We continue to like the prospects for the energy service group. In the coming weeks, several energy service companies are scheduled to report their earnings. We expect news in terms of demand and pricing outlook to be good for the most part. However, given the substantial rise in share prices over the past three weeks, some level of profit taking may be in the offing over the next several weeks. As such, caution is called for here.

Given this cautious near-term outlook and more optimistic intermediate-term picture, Subscribers seeking to establish a position in Fidelity Select Energy Service may consider dollar-cost averaging into this fund over a period of time.

Meanwhile, the AlphaProfit Sector Portfolio Indicator is rated ‘Buy’. We are making no changes to the model portfolios. The Indicator will next be updated on February 1.

Sincerely,
Sam Subramanian
AlphaProfit Investments, LLC
Ideas. Insights. Results.
http://www.alphaprofit.com

Notes: The AlphaProfit Sector Investors' Newsletter™ is for information purposes only. AlphaProfit Investments, LLC is not soliciting any subscriber to buy or sell any security. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. Before buying any mutual fund, read its prospectus carefully. AlphaProfit Investments, LLC cannot and does not give any assurance that the present or future model portfolio changes will be profitable. Past performance is not a guarantee for future results. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. AlphaProfit Investments, LLC is not responsible for any errors or omissions. AlphaProfit Investments, LLC neither is affiliated with nor receives any compensation from Fidelity Investments. Please review our Terms and Conditions of Use and Subscriber Agreement which is available on our website at www.alphaprofit.com; they govern your relationship with AlphaProfit Investments, LLC, including, but not by way of limitation, use of this newsletter. No part of the AlphaProfit Information may be reproduced or re-transmitted in any manner without written permission of AlphaProfit Investments, LLC.