Following weeks of bizarre speculation surrounding loans and regulatory filings, Focus Media (FMCN) confirmed that an internal probe did not find any evidence of improper payments involving advertising firm Everease. The company also filed its annual report and audited financial statements for 2006, which were delayed as a result of the investigation. As a result, the shares spiked 20% inclusive of after hours follow through. In addition, Citi reiterated a buy recommendation on the stock.

For the uninitiated, Focus Media is the predominant flat-panel display advertiser in China. This is one of my first forays into the Chinese equities market, going back years. I've unloaded some of the stock as it has more than doubled since entry, but as of today, I was still holding enough for the 20% boost to juice the Everyday Finance portfolio to new all time highs. Today's move put my total return at 126% according to the Ameritrade tally. In total, I'm up over 20% since the correction a few weeks back, inclusive of some turkeys I unsuccessfully tested out, in addition to hedges that are declining in value as the market continues upward.

As a result of what I consider to be a somewhat wreckless rise in the equities markets given the current credit crisis and inflationary signals (oil, gold at all time highs!), I added 3 Jan QQQQ puts with a 49 strike today. Some added insurance cost me a few hundred dollars. If the market continues to move upward, given the high beta holdings, I won't lose sleep over continued gains (of course, 401K and IRA accounts rise even more given their increased base). If the market undergoes another correction or even the recession many economists are calling for, I will have a few thousand to go shopping with when the dust settles like I did during the move recent correction.



In other news, UAW's on strike. I'm not going near the US autos at this point, I missed my opportunity when GM was under $20 last time and Kirkorian was buying shares.

HALO's release garnered the expected praise today, resulting in some extra followthrough in Gamestop GME.

The SNCR play continues to move in the right direction as well. Full portfolio update coming this weekend.

Until next time.

Hedge so you can sleep tonight!