Zacks.com Expert Watch Highlights the Following Issues: Rydex Tempest Fund, Valero Energy, and San Juan Basin Royalty Trust

Business Wire, May 12, 2004

Business Editors

CHICAGO--(BUSINESS WIRE)--May 12, 2004

The bears have a couple of compelling arguments and recent evidence proves the market is listening. Discover how to insulate yourself. Read the full Experts Watch article with commentary and recommendations on Rydex Tempest Fund (OTC:RYTPX), Valero Energy (NYSE:VLO), and San Juan Basin Royalty Trust (NYSE:SJT), go to; http://at.zacks.com/?id=101

Here are the highlights from the Experts Watch column:

Two weeks ago, Barron's cover had a picture of the bear being thrown overboard as optimism was setting in across the market. S&P 500 earnings blew away consensus estimates and produced 25% growth in the first quarter of 2004. However, the market's reaction has been less than enthusiastic, and the market ended at its lows over the previous two weeks. A number of factors are turning the market's attention from earnings to other factors and pressuring the market downwards. Read on to discover the factors the Experts are scrutinizing for evidence of a new bearish leg in the market as well as top picks, including a hedge play that offers double insulation to a falling S&P.

Oil has been threatening its multi-decade resistance level of $40 per barrel over the past several weeks. Both Dennis Slothower, editor of Stealth Stocks, and Gregory Spear, editor of The Spear Report: Professional Edition assign blame for the market's unwillingness to rally on strong economic and earnings news to this obstinately high historical price. High oil prices directly increase the risks of inflation, which the market has become cognizant since the beginning of this year. Core inflation readings leave the price of the commodity out, oil prices are synonymous with transportation costs.

Gregory Spear recently took a position in the Rydex Tempest Fund (OTC:RYTPX), which seeks to produce results inverse to the S&P 500 by selling most of the stocks in it short. Spear notes that the fund will produce TWICE the inverse performance of the S&P 500. A close above 1145 would stop Spear out of his position. However, in either a cyclical or secular fall, the position could be a big winner.

Spear also recommends Valero Energy (NYSE:VLO). Gasoline prices are at the highest level ever recorded, $1.86 per gallon. The San Antonio based company operates 15 refineries and refines 2.4 million barrels per day. The company produces to the specifications of the California Air Resources Board. The company exploded net income by 44% to $1.82/share on a 14% revenue increase to $11 billion.

Slothower's Stock of the Month for May is an energy company that he says is as "stealth of a stock" as he can find. San Juan Basin Royalty Trust (NYSE:SJT) has a royalty interest in natural gas properties in New Mexico; the company doesn't even do the drilling. The company has 20 years of gas reserves in the ground producing at 2004 levels, and Slothower thinks the stock could trade in the high $40's to low $50's.

Read the full report with insight from the experts at Zacks.com: http://at.zacks.com/?id=102

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