Just after the market close of today (Thursday, 05/25/06), Standard & Poor announced that Juniper Networks (JNPR) will replace Albertson’s (ABS) in the S&P 500 index (S&P 500 GICS [Global Industry Classification Standard] Communications Equipment Sub- Industry index). Albertson’s is in the process of being bought by Supervalu (SVU) and CVS (CVS) in a deal that is still pending final approvals. We believe that JNPR will see a nice increase of its shares tomorrow, Friday, May 26th 2006, since companies that are added to the S&P 500 often see their shares getting an initial lift because mutual funds that track the index will have to buy the stock. Juniper Networks, headquartered in Sunnyvale, CA, provides Internet Protocol networking products and services, with a specific emphasis on telecom routing solutions. JNPR is an excellent value play with 20 cents projected earnings per quarter and a current share price of $15.29, +0.74 (5.09%) at 4:00PM ET on Thursday, May 25, 2006.

We are up 30% this week, as demonstrated here, since we sold Escala (ESCL) on Tuesday, Generex (GNBT) on Wednesday and Sirius Radio (SIRI) today with a 10% profit each (minus commissions). Individual results will vary but always remember to buy first thing in the morning and place an upper GTC limit order of 10% higher than your buying price. If the stock should not hit this price during the day, then you should sell the stock just before the market closes in order to be able to participate on the next pick. Good luck and happy trading.

We sold Generex (GNBT) with a 10% profit today and our pick for tomorrow, Thursday, May 25th, 2006 is Sirius Satellite Radio (SIRI). It hit a new low of the year today, Wednesday, 05/24/06. After hours, the news was distributed that Howard Stern and CBS reached an undisclosed settlement. CBS sued Stern in February, claiming that its former star radio star breached his contract with the broadcast giant when he moved to Sirius Satellite Radio Inc. The lawsuit said that Stern improperly used CBS radio’s air time to promote his new satellite show, which started in January. CBS also said Stern made plans with Sirius without disclosing them to CBS as his contract required. The settlement should be positive for SIRI. Sirius also reiterated its 2006 guidance and projected to have 6.2 million subscribers by year-end. This came on the same day when its competitor XM Satellite Radio Inc. (XMSR) trimmed its subscriber forecast.

A lot of bird flu news is all of a sudden hitting the wires (see below). We expect bird flu stocks (GNBT, NVAX and STTK.OB) to be up tomorrow (May 24th, 2006). Generex (GNBT) has been down over 65% and is expected to have a nice rebound, since they have developed a peptide vaccine that can be mass produced. Escala (ESCL) was up over 10% today and we sold out of it with a 10% profit. We reinvested all the money in GNBT at $1.81 shortly before close of the market.

======= NEWS ABOUT BIRD FLU (May 23rd, 2006) =======
Thousands of people quarantined as Romania battles bird flu (interactive investor) 19:59 22-May-06
Bird flu victim may have been infected (The Globe and Mail) 02:47 23-May-06
Test confirms another human infection of bird flu (People’s Daily) 02:54 23-May-06
Bird flu deaths in Medan raise fresh fears (New Straits Times) 01:03 23-May-06
Indonesia probes possible human transmission of bird flu (People’s Daily) 01:30 23-May-06
Pandemic flu plan raises concern (Federal Times) 14:47 23-May-06
WHO probes possible human-to-human bird flu spread (Reuters via Yahoo! US) 20:38 23-May-06
How to Protect Yourself from Bird Flu (PRNewswire (Press Release)) 10:33 23-May-06
Romanian President Holds Urgent Meeting on Bird Flu (SEEurope) 09:46 23-May-06
Study Warns of “Chaos” and “Panic” If Bird Flu Strikes (ConsumerAffairs.Com) 21:18 23-May-06
Logan To Guard Against Bird Flu (TheBostonChannel.com, Massachusetts) 21:17 23-May-06
Fears of human-to-human bird flu spread (Ninemsn) 21:16 23-May-06
WHO probes bird flu spread (The Daily Telegraph, New South Wales) 21:08 23-May-06
Thousands of people quarantined (ADVFN 19:48) 22-May-06
American Tamiflu Stocks Sent To Unnamed Asian Country (Medical News Today) 17:45 22-May-06
Two dead with signs of bird flu (ADVFN) 18:24 22-May-06
Webcast set for this afternoon about pandemic flu (Lawrence Journal-World, Kanas) 17:51 22-May-06
Lehman Brothers warns of bird flu economic threat (FinanceAsia.com) 00:53 22-May-06
Local officials say bird-flu preps misdirected (KRQE News 13, New Mexico) 22:59 22-May-06
WHO says bird flu cluster in Indonesia (News-Medical.Net) 23:44 21-May-06

Just minutes after the close of the markets today (May 22nd, 2006), ESCL has announced that it will host a investor’s conference call tomorrow morning at 9 a.m. EDT (Tue, May 23, 2006). The conference will be hosted by Jose Miguel Herrero, the company’s chief executive. Shares of Escala plunged two weeks ago after police in Spain arrested nine people in an anti-fraud swoop on Afinsa and another Spanish company. Escala lost more than $750 million in market capitalization from that plunge. Escala has since declared it would defend itself against a number of lawsuits that allege violation of securities laws. Escala’s stock closed at $7.87 on Nasdaq today, May 22nd, 2006. Shares have rebounded from a low of $3.95 on May 12, but are off from a 52-week high of $35 set on Feb. 8.

Based on the after hour action of ESCL, the news will most likely be positive. However, ESCL could also be an excellent short, if news release should be negative. Either way, ESCL will be very volatile tomorrow and should be watched at the open.