Presented by Vali Lazarescu

This ownership feature of HOLDRS has important benefits

for investors:

Diversification. HOLDRS automatically provide you with

diversified exposure to an industry, sector or group of stocks

in a single investment. If you buy individual names, you

would have to buy an equivalent number of different stocks

to achieve the same level of diversification.

Liquidity. HOLDRS are exchange-traded and are priced

throughout the trading day just like any other stock.

ETF that follows the Oil Service names

Beta of 1.29

It is 93% Institutionally owned

Market Cap of 2.15 BN

World Economic Recovery is picking up

Oil is priced in USD. Weaker $=Higher oil prices

Fed’s QE2 will keep the USD low and the economic recovery will push demand for oil higher

World’s strongest economies are recovering and growing at stable pace

USD has been appreciating against most

currencies. The USD Index has gone from 76$

in November to 81.25$ in January.

What happened to oil prices? Maintains

inverse relationship?

Tape tells me Oil want to go higher

LONG position of 7% of portfolio

Target price of Oil at 101$

Target price for OIH at 155$ (13% gain)