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AlphaProfit Newsletter: September 28, 2006 Bulletin
Subject: Enhancements to the AlphaProfit Newsletter
Dear Valued Subscriber,
In the August 17 Bulletin, we noted the changes proposed by Fidelity Investments to the Fidelity Select Portfolio mutual funds. Since then, things have moved forward as planned by Fidelity and shareholders have approved certain changes.
Starting October 1, Fidelity Select funds will be priced once a day at 4:00 p.m. Eastern Time and the hourly pricing practice will be discontinued. The investment policies and names of certain Select funds will change.
As described below, AlphaProfit will provide a preview of the Repositioning changes ahead of time so as to enable you to track each model portfolio one-to-one. We do not anticipate the investment policy changes to materially alter the investment thesis for funds included in the model portfolios and we are not making changes to the model portfolios at the present time.
In response to requests from numerous Subscribers, we will be adding a new feature, Stock Searchlight to the Monthly Report.
Preview of Repositioning Changes
AlphaProfit will provide a preview of the model portfolio repositioning changes prior to actually repositioning them at market close on the last trading day of December and June. The preview will be published by Noon Central Time on the last trading day and will include adequate information for you to reposition your investment portfolio. The preview will enable you to track each model portfolio one-to-one.
The Repositioning Alert in its present format will be communicated after the closing prices become available and the model portfolios are actually repositioned.
Investment Policy and Name Changes
Among the Select funds currently included in both model portfolios, Select Industrial Materials will broaden its focus beyond industrial materials to include all types of materials and the fund will be renamed Select Materials. In the Core model portfolio, Select Business Services & Outsourcing will narrow its focus to information technology services and will be renamed Select IT Services. Select Food & Agriculture will broaden its focus beyond food to cover all types of consumer staples and the fund will be renamed Select Consumer Staples.
Going forward, AlphaProfit Communication will reflect the above investment policy and name changes. The investment policy change is likely to marginally increase the volatility of Select Business Services & Outsourcing. The investment policy change is unlikely to modify the volatility characteristics of Select Food & Agriculture or Select Industrial Materials.
That said, we do not expect the investment thesis for each of the three funds to be materially impacted by the investment policy changes. As such, we are not making any changes to the model portfolios at the present time.
Introducing Stock Searchlight Feature
Several of you have suggested that the Monthly Report will be more useful if it includes a list of stock ideas.
Starting with the October Monthly Report, we will be introducing a new feature called Stock Searchlight. Culled out of companies discussed in the Monthly Report, this short feature will highlight stocks with appealing earnings trends and relatively attractive valuation characteristics. To make the Searchlight cut, stocks should offer an above-average probability of outperforming the Dow Jones Wilshire 5000 Index over the intermediate-term. We believe Subscribers seeking stocks for the intermediate term will find the list worthy of further study.
The emphasis of the Monthly Reports on sector as well as market outlook and analysis will remain unchanged.
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.
Copyright © 2006. AlphaProfit Investments, LLC. All rights reserved.