The Masters take out the Trash for 10/23/2007

Fellow Masters, let's dive into the 52-week lows of the day. There were 54 on the NASDAQ and 50 on the NYSE. Let's get to the ones worth mentioning: PEIX and UBET.

Pacific Ethanol, Inc. (NASDAQ:PEIX) is now just under $8 a share. On Monday (10/22) PEIX, which has six operating or in the works ethanol plants in the Western region, received the "sell" rating from Broadpoint Capital. Shares are down 49% in the past year and with a P/E of 189, its not easy to get excited about buying the stock. You may get a bounce out of this stock by day traders but until the 2008 Presidential Candidates make a major decision on ethanol, you got time to let this stock continue to fall.

As more and more corn gets used for ethanol, consumers are seeing a surge in the price of food. With ethanol production approaching the Congressionally mandated quota, the growth could be over unless Congress decides to make another push for it.

Anyone investing in, or thinking about investing in, ethanol stocks should do so with the awareness that it's an industry that exists largely because of government subsidies -- it's a speculative political play as much as anything else.

Youbet.com, Inc. (NASDAQ:UBET) now trades at just over $1 a share. Youbet.com disclosed yesterday in 8-K that the ORC voted to commence the process of seeking a suspension of IRG's license. YouBet bet has come under fire from the Oregon Racing Commision (O.R.C.), they held a special meeting and voted to commence the process of seeking a suspension of I.R.G.'s license due to I.R.G.'s technical noncompliance with the O.R.C.'s requirement that licensees maintain a bank account insured by the Federal Deposit Insurance Corporation into which customer funds are deposited. Shares keep heading down, 9% today and 4% after-hours, is there any bottom? UBET's stock has dropped 70% in the last year. It's a gamble playing this stock either way you go.

Online Poker Protesting May Highlight Few Shares (CRYP, GIGM, UBET) - Read 247WallSt.com's article. The Poker Players Alliance is petitioning Capitol Hill this week to repeal part of the ban on online gambling, or at least for online poker. The alliance apparently represents 800,000 poker enthusiasts and is looking to get poker put in the same exemptions as online horse racing, lotteries, and fantasy sports.

AVOID TRASH STOCKS - The Stockmasters Master Picks newsletter has been kicking ass and taking names for the past year. Our new publication just came out on Monday (10/15) and our newsletter produced over a 100% gain with Onyx Pharmaceuticals (ONXX) and a 50% gain with Savient Pharmaceuticals (SVNT) within 3 months. In October 07's newsletter we cashed out:
Activision, Inc. (ATVI) up almost 20% since we told you to buy in April 2007.
Service Corp. International (SCI) up 43% since our 1st newsletter back in October 2006.
In March 2007 we said buy Halliburton Company (HAL), it's up more than 25% since we told you to buy.
Blockbuster Inc. (BBI) ran up 36% since we told Masters to buy back in June 2007.
We recommend stocks that don't take years to see a return, we look for returns within 2 to 5 months, this isn't grandpa's buy and hold strategy.
The Masters don't play when it comes to their money or yours.
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