Sweet 16 Update

[dan_s]

As of June 25, our Sweet 16 Growth Portfolio is down 0.63% year-to-date. For the same period the S&P 500 is up 1.97%.

Since 1-1-2010 the Sweet 16 is up 73.81% compared to the S&P 500 being up 13.75%.

The Sweet 16 preformance this year is rather surprising when you consider that the portfolio is heavily weighted to oil and oil prices have been very strong during the first half of the year.
> 1st quarter results were rock solid
> 2nd quarter results will be even better

> MIND (up 35.3% YTD) leads the pack. They had "stunning" 1st quarter results and are on-track to have the best year in company history. I am begging them to host a luncheon for us soon.
> The Bakken companies (BEXP, CLR, DNR, GEOI) will all report some weather related delays during the 2nd quarter caused by all the flooding in North Dakota. They are all great buys on the dip as 2nd half growth will be strong in the Bakken. (Updated forecast for KOG and NOG, two Bakken companies on our Watch List, are available under our Watch List tab.)
> GPOR should report very strong 2nd quarter oil prices as they sell 85% of their oil into the Gulf Coast market, getting more than a $15/bbl premium to WTI. DNR sells 40% of their oil into that market.
> GPOR is also close to announcing test results from Thailand, which could be a "Game Changer" for that small-cap.
> Many of the companies will report eye catching earnings due to large mark-to-market adjustments on the hedges. As you know by now, these non-cash gains mean little to me but they can draw some attention from the Wall Street gang. CLR will report a huge jump in reported EPS from Q1 to Q2.
> PTEN and all of the other onshore drillers on our Watch List look very good to me right now. Rig utilization and dayrates in all the shale plays will be going up in Q3.
> I'm in discussions with Petrominerales (PMG) about hosting a luncheon for us in August. PMG and GTE, our two South American companies are going to report strong production growth this year. IMO both are grossly oversold, in part because of recent election results in Peru where neither company has production.
> We should have an updated company profile and forecast for TGA posted to the website on Monday.

[dan_s]

The Sweet 16 is now trading at a 62.2% discount to my Fair Value estimates. This is the largest discount ever to what I consider the break-up values of the companies.

Premium Members can find my Fair Value estimate and the current First Call 12-month price target for each company on the Sweet 16 Forecast spreadsheet. They are on the right hand side of the "YTD Gain" tab.