TAKE SOME DRILLERS OFF THE EARTH

PSI

Trim a little of PSI (42) today. This is another stock that I hate to sell, but have to, given the 60% return. This is the strong season for drillers and I plan to sell most of them by the early spring anyway. I still have a small position and I would like to take a look of Q4/04 and Q1/05 earnings before let them go as well. I have raised quite bit of cash now and I will need to add some positions, unfortunately, I really do not have a lot of ideas at this point. I would like to add some large cap financials (banks, insurance) to counter balance exposures in the material and energy sectors. So far, I am having a hard time to pick one.