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Former Short Position - PBIInitial Cover-Stop was established off the hilltop resistance points which were above the 30wk moving average (Risk Corridor = 17.0%). The next valley-bottom occurred at 10/4/02 as confirmed upon the third subsequent increase in closing price on 10/25/02. The next hilltop occurred on 11/29/02 as confirmed upon third subsequent decrease in closing price on 12/20/02. Since the 11/29 hilltop was below the 30wk moving average, we adjusted the Cover-Stop to the 30wk level at $36. From that point forward, Cover-Stops are adjusted downward in $1 increments in tandem with the 30wk. This particular issue really behaved according to Hoyle (so to speak). We had to exhibit some patience awaiting the formation of a legitimate hilltop (which finally occurred on 11/29/02) so we could begin advancing the Cover-Stop. Our first Cover transaction provided an ROI of 13.5%, as did the second. The third Cover transaction provided a 9.3% ROI. All told, after reduction for dividends, we earned a 10.6% ROI on this one.
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