CAUTIOUS BY ADDITION?

I continue to be rather inactive and the market keeps going up. While I am a bit of upset because I have essentially missed this rally, I remain even more cautious new than a couple of months ago. Having said that, I did opened a very small position of GCM.TO this morning. It is a small software company specialized for mining industry, which I believe will remain strong in the years to come. the company has had tremendous growth, both organically and by acquisition and its earnings have grown nicely. It has come out in my screen, although I thought it might be slightly pricy. It has coming down lately, being opportunistic, I bought some today. It is expected to increase its earnings from $0.09 to $0.12 next year, and given a 20X multiple, it could go up to $2.4, about 20% return. Long term will depend on how the company execute and whether it could continue to grow.

Position: Long GCM.

A SMALL SPECULATIVE POSITION

I am rather tired and depressed, and really do not want to post here. But I have to put this in, in case I forget. I opened a very small position of OSH.V, a very small software company in Montreal, Quebec, Canada. This is a rather speculative position, as it currently is losing money and probably would not see any profits until 2008. On the other hand, it has quite impressive sales growth, decent balance sheet with a reasonable amount of cash on its book. If it achieves its profit on time, I believe it could go up to $1.5-$2.0 range. While speculative, my position is relatively small and I think I can take it here.

Position: Long OSH.V