Europe Blooms as

dollar weakness enhances european equity returns. European bourses have responded with gains of around 8.9% (in U.S. dollar terms) in the S&P Europe 350 index this year through April 17. In fact, the greenback has depreciated 3% vs. the euro and 2.6% vs. the pound sterling year-to-date, the S&P Europe 350’s 8.9% advance in U.S. dollars compares with a 6% local currency gain. While the greenback still accounts for 66% of global foreign reserves, the euro is fast becoming a more competitive reserve alternative with a 25% share. Here are European stocks that trade as ADRs or ADSs on a U.S. exchange, I believe are worth looking after:

BAB One of the largest airlines, British Airways operates out of one of theworld’s busiest airports, Heathrow, as well as nearby Gatwick.I think demand for international long-haul routes will continue to be strong in fiscal2008 aided by the strength of the pound sterling vs. the U.S. dollar,

Sentiment: Buy

EN Enel is Italy’s leading company in the generation, transmission, distribution,and supply of electricity. Note, the company’s solid and above-peer annual dividend yield of 5.1%, as well as its relatively strong balance sheet. Enel’s balance sheet has allowed the company to aggressively expand its operations outside its core market. For example, it recently announced several dealsin Russia.

Sentiment: Buy

Warren Buffett!

Warren Buffett sticks to his investing philosophy. If you run a screen based on Buffett’s six investment criteria, here are:

Free cash flow (net income aftertaxes, plus depreciation and amortization,less capital expenditures) of at least $50 million

Net margins of at least 15%

Return of equity of at least 15% for each of the past three years and the most recently reported quarter.

A dollar’s worth of retained earnings generating at least a dollar of shareholder value for the past five years

Overpriced stocks are removed by comparing estimated discounted future cash flow five years from now with the current price.

Only stocks with a market capitalization of at least $500 million are included.Simply so!

The club dedicated to studying and applying the investing principles developed by Warren Buffett.

here at marketocracy

Stock Pick

NCMI fast growth plus dividend .

To expect the cinema advertising to be second fastest growth sector in media (second only to the Internet). National CineMedia should be a big beneficiary of traditional media’s woes but has compelling video delivery capabilities, wide national reach, ability to reach hard-to-get demographics, also. NCMI is a growth stock with a dividend. The initial yield will be 2%, but strong growth and a rising payout could push it to 4%-plus by 2009. Target 31. Sentiment: Buy

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On everyone’s mind

about this latest market shock.

Just how bad is the falloff in the subprime lending market?
Will conditions in the subprime mortgage market hurt national
economic output?
In recent years, home equity spending has been a major strength of the economy.

Are subprime defaults expected to change this?
Which areas of the economy could be hurt by the reduction in home
equity money?
Will this surge in subprime defaults have repercussions in any
particular region of the country?

How bad is going to be?

*

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Invitation

to the Money Show in Las Vegas, May 14-17, 2007

High Yield Stocks

picks:

FRO 20.6%

Founded in 1985, Frontline Ltd is a Bermuda-based shipping company that owns and operates Very Large Crude Carriers (VLCC) and Suezmax tankers. In 2001, the shares were listed on the NYSE. FRO is engaged primarily in the transportation of crude oil products, and, in addition, raw materials such as coal and iron ore.

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AHM 16.5%

American Home Mortgage is a real estate investment trust engaged in the investment and origination of residential mortgages in the U.S. AHM's main revenue source has been the origination and resale of securitized loans (79% of net revenue in 2006), primarily residential mortgages. The majority of the remainder of AHM's revenue (16%) is derived from net interest income from investments in high credit quality mortgage-backed securities and mortgage loans.

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CSE 9.6%

CapitalSource is a specialized commercial finance company offering senior secured cash flow, senior secured asset-based, first mortgage, and mezzanine loans to small and mid-sized borrowers through three focused lending groups: Healthcare and Specialty Finance, Structured Finance, and Corporate Finance.

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Energy sector

Crude oil futures slipped to a sevenweek closing low, as U.S. refinery maintenance and unplanned outages cut short-term demand and led to forecasts of increased inventories.
The front-month April contract, in its last day of trading, finished $2.97 a barrel lower than the May contract, which analysts said indicated demand for crude is low now.

see performance of my energy fund