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Intraday Alert

February 25, 2013


Market Date
Company Name Symbol Industry Last Trade
Cap($MIL) Added

Summit Hotel INN Hotel REIT 425 02/26/13 9.17

Market Date Price
Company Name Symbol Industry Last Trade Change
Cap($MIL) Added Added
No Current Signal


Market Date Price
Company Name Symbol Industry Last Trade Change
Cap($MIL) Added Added

Service Corp SCI FUNERAL SVS 2,195 11/29/11 9.71 15.41 58.70%

Apogee APOG GLASS PRODUC 446 08/13/12 15.53 24.62 58.53%

Terex TEX MACH-CONST/M 2,618 09/27/12 22.72 30.98 36.36%

Redwood Trst RWT REIT-MTGE TR 1,137 10/17/12 14.60 19.72 35.07%

United Rent URI BLDG&CONST-M 3,847 12/03/12 41.05 50.47 22.95%

Eagle Mtrls EXP BLDG-CMT/CNT 2,227 10/17/12 49.84 60.43 21.25%

AZZ Inc AZZ ELEC PRODS-M 911 10/17/12 36.49 43.43 19.02%

ResMed RMD MED PRODUCTS 5,124 08/13/12 36.08 42.79 18.60%

Haverty HVT RETAIL-HOME 304 10/11/12 14.21 16.64 17.10%

BBCN Bancorp BBCN BANKS-WEST 844 06/22/12 10.59 12.32 16.34%

Corelogic CLGX CONSULTING 2,420 08/02/12 22.80 24.52 7.54%

Private Bank PVTB BANKS-MIDWES 1,198 12/03/12 16.38 17.42 6.35%

On Assignment ASGN STAFFING 1,029 11/05/12 19.99 21.05 5.30%

Live Nation LYV ENTERTAINMEN 1,900 01/08/13 9.90 10.32 4.24%

Capital Sr CSU HEALTHCARE F 592 01/25/13 21.09 21.83 3.51%

HomeStreet HMST FIN 350 12/28/12 25.00 25.05 0.20%

Tesla Motors TSLA AUTO 4,275 02/01/13 38.23 34.38 -10.07%

American Van AVD CHEM-SPECIAL 953 11/27/12 33.93 29.80 -12.17%

Guidance Sof GUID SOFTWARE 291 01/04/13 12.13 9.89 -18.47%

Sell Off Continues
Posted 02/25/2013 VIDEO COMMENTARY
By Brian Bolan
HRI Introduction April 2012
January 22, 2013
Home Run Investors, October 23, 2012
Click for older videos
We are going to be adding some names this week... Click for older videos
and I might even sell a few more out of the portfolio. I
found this stock on screener about a week ago and I think it fits the bill for us as we want to be somewhat defensive
with what we are buying given the current climate. We want to be invested, but be positioned well should the pullback

Summit Hotel Properties (INN) is a Zacks Rank #2 (Buy) and was added today. I should warn you that this stock will
report earnings after the close tomorrow after the close. The conference call will be the next morning (Feb 27 at 9 AM
EST). So that is a potential catalyst for us.

The stock was initiated with a Buy at Cantor Fitzgerald with a price target of $10.50. Cantor thinks the company is an
attractive small-cap lodging REIT that operates mostly under the radar screens of investors in lodging equities. They
believe Summit offers a compelling combination of upside potential in its share price and a healthy dividend yield.

The biggest metric in the hotel world is RevPAR - Revenue per available room night -and growth in that is key. In the
most recent quarter, reported on 11/7/12, INN reported an 11.6% increase to $72.24 as the average daily rate
increased 5.6% and a 5.7% increase in occupancy. Basically the prices bumped higher and the number of people
staying at their hotels increased as well.

The company has moved to acquire a lot of hotels and importantly they are high quality brands. In the third quarter of
2012, the company added 9 hotels with 1,141 rooms. The price was about $82,000 per room.

The company also recently closed a follow on offering of 12M shares for $8.15 per share, so we are mostly out of the
woods on something like that. That has been a failure in the past of a few holdings here, so let's leave that concern at
the door.

Over the last three earnings reports, I see that INN has 3 straight beats. Over that time, revenue has been $40M,
$47M and $51M which shows some good growth. Earnings moved from $0.15 to $0.27 to $0.26, so mostly good news
there too. The upcoming quarter is calling for revenue of $49M and EPS of $0.12... which could be a set up for a big

On the valuation side, INN looks really good. The trailing 12 month PE multiple is 11.7x compared to 15.5x industry
average. The forward multiple of 10.3x is also well below the 15.4x multiple that the industry average sports. The price
to book of 1x is less than half the industry average of 2.2x. The price to sales multiple, which should generally stay
pretty low since it’s a REIT is 2.5x compared to the 6.4X industry average. Overall, the valuation is telling me this is a
good investment.

As always, I will add this stock to the portfolio today at the average of the email price and the close. I see the email did
not have a price, but I can say that I saw it at 9.21 or there abouts before the stock popped. It closed at 9.17, so I will
take the average of those two at $9.19.

Terex (TEX) has a stop of $30.22 still in place.

Tesla (TSLA) sold off again today and was down as much as 4% intraday. I think the best idea here is to add a stop in
this one to make sure that we do not get blasted like we have with ARNA, QCOR, THLD and all the others. I think ~
14% is a good spot and with a little rounding that translates to $32.75. So add that stop there.

American Vanguard (AVD) has been on a slide of late, with another 3.878% coming off the top today. This stock is
down 12% since we added it, and I used this one as a replacement for Chemtura (CHMT) - and that was a mega
error. CHMT did nothing but go up (except for lately in this sell off), and, well you already know what has happened
with AVD. I would hate to sell out of this one at the low here, but I have to say it is at the top of the list of "source of
funds" - but one has to put the commodity sell off in perspective.

After the close, CHMT reported and missed by 4 cents, so the pain in this name will likely continue.

AZZ Inc (AZZ) reported the acquisition of Aquilex Specialty Repair and Overhaul. This will add $0.25 to $0.30 to
earnings over the next 12 months, so we have to be happy about that. I think the analysts will be moving numbers up
over the next few days, so look for this stock to get a few more points down the road.

Eagle Materials (EXP) gave back what it made the other day, and a little more. The loss of 4.83% brings our gain
down to 21% which is disheartening, but still a good sized gain. It feels like our smaller caps are really being brutalized
compared to the rest of the market.

Guidance (GUID) and FireEye announced the integration of the company's two security solutions to more effectively
detect, validate, and remediate today's new breed of cyber attacks. GUID was still off $0.11 or 1.1% today as
investors barely reacted to the news. Only 81K shares traded today.

Redwood Trust (RWT) got some new research love today, with another price target moving from $20 to $25.
Wunderlich was the broker who upped the price target so we have to be happy about that.

Sell Off Continues

A good start to the day we quickly turned into a sell off of good size. Today the markets moved lower by more than
1.8%, as volume picked up and worries of the sequester take center stage. Trading in the VIX (a measure of volatility)
reached all time highs and a vehicle used in FTM Trader saw a big move as well today (VXX +13.7%). Just a few days
ago the VXX ETN was hitting a 52 week low of $20.97 and is now $25.56. The sell off kicked into high gear today
around 3 PM EST, as the Dow lost about 75 points in the final hour. Five stocks were down for every one stock that
was higher.

The Dow closed lower by 216 points or 1.55%. The S&P 500 closed down by 28 points or 1.83%. The NASDAQ
dropped 45 points or 1.44%.

The new highs vs new lows bumped higher to 318-75 as stocks that are hitting new highs continue to find new money
despite the sell off. I have to think that most of the highs were achieved in the first hour of trading as the last half our of
the day saw little if any buying. That could be a signal that tomorrow is going to be another tough day for the markets
unless the dip buyers have the patience to wait until afternoon to get in... but they never do.

Zynga (ZNGA) may be a dirty word for this service, but today the stock moved higher by 7.5%. Seems that online
gambling is on its way to a Facebook near you. This could also be a good time to start to look at Facebook as the 30%
tax it charges ZNGA might become serious money if the site starts to offer online poker with real money.

DryShips (DRYS) dropped again, and maybe I have lost my touch, or maybe its because I bought 500 shares (yeah I
am big time like that) but this one has really pulled back from $2.40 to its present level of $1.93. I will have to look into
this to see if there is something else going on.

I am looking for another stock to move into the portfolio as we are dipping down. That means I might take a profit here
or cut one of our losers soon. Either way, I want you to wait for the signal before making a move. I might do that a few
times this week too, so be prepared.

More Commentary

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