Excerpts from
THE SINE WAVE INVESTOR^tm
February 2012 (No. 96)


GREAT THOUGHTS FROM GREAT INVESTORS
Michael Mauboussin, author and Chief Investment Strategist at Legg Mason Capital Management, will pick up in his next book (due out late 2012) where he left off in Think Twice....

SWI: What are your main investment themes for the next 12 months?

Mauboussin: Subscribers Only

TRANSACTIONS
* Sine Wave II Portfolio - I'm still using the "---" method to buy and sell, and it's working well. The Dow climbed pretty steadily through January and I sold 6 ETFs for healthy gains.....

EARNINGS
* --- - ---'s 4th-quarter profits were crimped by higher material costs, adverse currency movements, a slowdown in Europe, and floods in Thailand. Earnings per share declined to 20 cents a share versus 30 cents a year ago. --- gained market share for the third year in a row and expects industry sales to rise in the coming year. Investor sentiment seems to be improving, so I may stick with --- if it rises steadily - Reconsidering

TIDBITS
* Freedom Watch (Unreasonable Search and Seizure) - The passage of the National Defense Authorization Act cannot go unremarked. The new law allows the indefinite military detention in undisclosed locations of individuals on U.S. soil, without trial or assistance of counsel. Legal experts disagree whether or not the provisions apply to U.S. citizens. The law's intended targets are people who have 'substantially supported' certain terrorist groups or 'associated forces'. Government officials have called good-hearted, law-abiding Tea Partiers "terrorists" and 'associated forces' is not defined, leaving the law's potential reach unknowable. There's so much controversy over this law, that I wanted to look at it and decide for myself what it means. But when I tried to look at the actual text, Public Law 112-81 was not available on the Government Printing Office website. When I examined the enrolled bill (passed by both Houses and signed by the President), the key section (1021) was missing on the Library of Congress website. What's going on here? And whatever happened to the 4th Amendment constitutional guarantee against unreasonable search and seizure? What happened to habeas corpus, the right of U.S. citizens to demand we not be indefinitely detained, but produced in court? Didn't we fight the Revolutionary War over such matters? An awesome power has been created. Do you trust your government to use it "properly"? I don't, not when the reach of the law seems deliberately shrouded in mystery.

DISCLAIMERS

The opinions expressed herein are subject to change without notice.

The factual representations contained herein are drawn from sources believed to be reliable but accuracy or completeness cannot be guaranteed.

etc.