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Lemley Yarling Management Co
309 W Johnson Street
Apt 544
Madison, WI 53703
Bud: 312-925-5248       Kathy: 630-323-8422

October 31, 2014

Model Portfolio Value As of 31 October 2014

$ 747,190

Comment on Model Portfolio activity

What correction? The markets ended the month on the upside on News that Japan is going to begin buying bonds ala the U.S. Fed and also is going to move $400 billion into world stock markets.

During the week we traded Verizon for a dividend better profit and added to Juniper, Huntington Bank and KB Homes.

All is grand in the land. If the Republicans win the Senate the ensuing rally should mark a short term top. By the by, what happened to Ebola, and Russia, and the European doldrums? Talk about ADHD, these markets and the big boys and girls have it in spades.



October 24, 2014

Model Portfolio Value As of 24 October 2014

$ 739,428

Comment on Model Portfolio activity

The correction seems to have satisfied itself as a quick 10% down move. Unfortunately the out of favor stocks we favor are not participating in the rebound yet.

During the week we took a large loss in Cree- it hurt. But we have had a few good trades this year to offset that loss. We added to Sprint, Alcoa and Old Second Bank. We also repurchased Verizon and more AT&T and sold Chicoís and Coach for wash trades.

We bought Urban last week and earlier this week when it dropped 20% but when Abercrombie dropped $2 on Friday on an analyst cut we bought more shares and sold Urban for a wash. We would rather have a larger position in ANF priced at half of sales. We have made good money trading Abercrombie this year and weíre just early on this last trade.

We bought an equal amount of GM warrants with the Urban money. †GM remains in the doghouse but we consider it real value.



October 17, 2014

Model Portfolio Value As of 17 October 2014

$ 735,483

Comment on Model Portfolio activity

This week the market completed a 10% correction on Wednesday when the DJIA drop 400 points before rallying a bit into the close. Then on Thursday morning a 206 point drop and then subsequent rally successfully tested that correction.

Ebola, ISIL. European recession, Greek bonds crashing, and other nefarious events were all the news and all the rage as the high frequency volatility had their best week in months... on Friday stocks rallied as the realization that - Ebola may not kill everyone in Texas, the hope that Europe governments would spend some money, - the bombing in Syria was showing some success and the big boys and girls deciding to go long or at least cover their shorts - led to a 1% rebound.

Stocks are still not out of the woods and another test would be positive but for the moment the tsunami tower has been arrested.

During rent week we sold Chicoís and Deere at losses to redirect that and additional money to more Whole Foods, Huntington Bancshares, GM common and warrants, Ascena, AT&T and Coach plus the repurchase of Verizon and the addition of Urban Outfitters (down 15% on Friday), and Hecla mining as a silver speculation.

We still have a bunch of cash ready to deploy if the 10% correction turns into a 20% wipeout.

The economy is fine, employments numbers are super, company health is very good and the correction we expected and the market needs are occurring. Not to worry. Itís all about the journey.



October 10, 2014

Model Portfolio Value As of 10 October 2014

$ 732,454

Comment on Model Portfolio activity

Three weeks ago all was wonderful and all news was positive. Currently all news is negative and stocks are overpriced. And so it goes with the markets. Volatility has increased and bearish bets are being placed.

We have been awaiting a correction for it seems like forever. But now that it seems to have arrived we donít like seeing account values decrease any more than the next person. Happily we have large cash reserves which we have been slowly putting to work and at that same time we have pruned holdings to take advantage of perceived better options.

During the week we sold Post for a too large loss and placed the funds in GM common stock. We also sold Alcoa flat and added to our GM warrant position as well as adding shares of J.C. Penney that dropped on reports of flat September sales. Those actions were switching from less aggressive to more aggressive position.

We are not surprised by the sudden change of sentiment- thatís how corrections correct.



October 3, 2014

Model Portfolio Value As of 3 October 2014

$ 749,634

Comment on Model Portfolio activity

During the week we traded DreamWorks for a nice profit when merger rumors surfaced and then sort of faded. We repurchased Abercrombie which we have had good luck trading this year. Cree dropped 20 % on a disappointing forecast and we added to shares. We also repurchased Sprint and bought a few more General Motors B warrants in accounts.

Doubt is creeping into the marketplace and even with an excellent Employment report on Friday the markets see more inclined to weakness than strength. That is healthy given the run higher over the last 15 months and we are hoping for but not predicting more weakness so we can continue to add issues to accounts.




































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309 W Johnson Street Apt 544 Madison, WI 53703 312-925-5248
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