SNDA & JRJC

Our second sitting with SNDA: Commandment #5 states to never fall in love with any stock position. It's difficult to tell SNDA that it's over, but we have to make the painful SELL call based on the macro market environment in China. SNDA continues to be on our list as one of the best American Depository Receipt (ADR) ideas in terms of mid cap growth, but the pressure on the Chinese Index is troubling. Shanghai is down exactly 30% from its 52 week high of 6,124. We suggest our readers SELL their shares in SNDA at current levels and revisit the trade after the Shanghai bear market shakes out further. Congratulations to those who profited from our recommendation in a very lopsided tape. Our second sitting with JRJC: As for JRJC, we suggest our readers hold their short position. We look for $18.50 to be breached by Friday. JRJC's CFO will have a much harder Q/Q comparable coming up. We feel he'll have to admit the truth and swallow his pride. We reiterate the Chinese Shanghai Index is down 30% from its 52 week high. We view the stock macro market environment to be of critical significance in attracting new "subscribers" as well as building a "stickier" customer base. Neither of those targets will be satisfied in this current Q, and we won't be surprised to see shares retrace and test $12.00 around the time of 2008’s first Q confession. We see JRJC's visibility to be more questionable today than ever before. We look forward to updating you on JRJC in one week, on March 12th. We want to thank you for returning to the Psychology of the Call again and again.