SELL EARNINGS (GOOD OR BAD)

Talking about the difficult market. LMS announced a great quarter: exceeding, great growth in all three segments, guidance for both Q2 and 06 increased, and the stock sold off significantly. In the conference call, I thought the management went to a great deal of length to emphasize that the guidance is rather conservative, and there's potential to increase after Q2. The valuation is very cheap, trading at approximately 12.8X of its 06 EPS, when visibility is very strong. I have no explanation for the sell off today other than the overall weakness of the market. But I am not selling. As a matter of fact, I would not mind to add here if my position is at a fairly large size. I believe this one should be traded at least 15X of its 06EPS, which will result in a 30 stock and it should be there soon, probably at Q2 report, if management beats and increases its guidance again. Similar stories for BTUI, WFR, ALDA, to name a few (not to mention UNH). All very strong quarters and very strong guidance, all sold off, to a very reasonable valuation level. While it is not fun to endure these declines, I am confident that these stocks will continue to move upward in the next few quarters.