ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

All of those sectors you mentioned have had a pretty good run. Home builders in particular last year, right? So, the argument will be: Well, Barry what are you think? Why don't you actually take money off the table?

BARRY JAMES, PRESIDENT, JAMES INVESTMENT RESEARCH (ENGLISH) SAYING:

Yes. Well, you make a good point. The biggest mistake that we find people make is that they sell the winners and hold on to the losers. And what we try to find are companies that are cheap and have good earnings, and their prices are actually in a nice long term rising pattern called relative strength. And in each of these categories you can find companies that reflect those three tenets of the way that we approach. And that really comes down to what do you own; if it's cheap and has good earnings, why wouldn't you want to own it? But more importantly, when do you own it? And it's in the rising pattern. People are starting to add the positions to their portfolios, and that can continue for a long period of time. So we're not afraid of buying a company at a new high as long as it's cheap and has good earnings.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

And so cheap would be a P/E below its sector of the market overall?

BARRY JAMES, PRESIDENT, JAMES INVESTMENT RESEARCH (ENGLISH) SAYING:

Typically, not perfectly correlated but, yes, typically there are stocks that are going to be cheaper than the market.

ANCHOR QUESTION OFF-CAMERA (ENGLISH) SAYING:

Alright. So give me an example of one or two you like that fill that category. You don't have to get into too much explanation, but just the names.

BARRY JAMES, PRESIDENT, JAMES INVESTMENT RESEARCH (ENGLISH) SAYING:

Well, of course, Ford would be one. P/E less than 10 and they're buying back shares- something we like. They do pay a dividend. So it would rate very highly in the way that we try to look at stocks. Earnings are improving and the price has been rising, of course, pretty nicely in the last quarter or so. Lockheed Martin would be another one that meets that criteria. You also get the bonus of a pretty good dividend yield on Lockheed Martin. But again, it's trading around 10x earnings today and earnings have been improving at a nice pace. So, you've got a company that's been doing a little bit better than the market overall over a 12-month period. Those are things that we like and we think that you can hold onto for an extended period of time.