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Weekly Update: We Wish You A Foolish Christmas

Monday December 24, 2012

Dear Motley Fool Share Advisor Member,

The presents have been wrapped, the tree trimmed and the market has closed early today in preparation for Santa’s journey around the world this evening.

At Fool HQ, we’ve swapped our jester’s caps for Santa hats (just for a day, mind you!), and we’re warming our voices to sing along to tonight’s Carols on television.

But before we do all that, we had some work to do — namely preparing this email update!

We will be taking next Monday off — unless news breaks that you need to know — and our next (scheduled) weekly update will arrive in your inbox on January 7. Rest assured, though, we’ll be keeping an eye on the companies on our scorecard, and if there’s anything you need to know, we’ll bring it to you, as always.

In this week’s update:

  • Mea culpa – The gremlins struck our email list, sorry
  • Seek Asia moves to full ownership of JobsDB
  • ‘Twas the (Foolish) day before Christmas

Rogue Email – The IT Arms Race

As most of you would know, we sent a marketing email out on Saturday morning, titled ‘The Technology Arms Race You Can’t Afford to Miss‘.

In that email, we highlighted a member report ‘How to Profit from the IT Arms Race‘.

We’re sorry you received that email — it was only supposed to be sent to non-members, but we seem to have had some gremlins in our system that meant our members received the email as well.

As most of you realised, that was the report we highlighted in last Monday’s update, but some members were concerned that they hadn’t received the report.

Rest assured, our members always receive our reports first. All of our special reports are available from the member-only homepage at www.shareadvisor.com.au.

Again, please accept our apologies for the email you received — we’ll do our best to make sure it doesn’t happen again!

Seek Asia Buys The Rest of JobsDB

As you’d expect, this time of year is a quiet time for company announcements.

The only significant update from our companies this week, is news that Seek Asia has moved to 100% ownership of JobsDB, a leading pan-Asian employment website.

As you would recall from our original recommendation, Seek‘s (ASX: SEK) international businesses have a complex ownership structure.

Seek owns just under 69% of Seek Asia, and Seek Asia previously owned 80% of JobsDB. Last week’s announcement means that JobsDB is now wholly owned by Seek Asia, increasing Seek’s proportional ownership.

Seek’s share of the purchase price is $54 million, which will be debt funded by both Seek directly and Seek Asia.

The transaction likely simplifies the business slightly, and gives Seek slightly increased exposure to the Asian job market, but doesn’t change our view on the company. Seek remains a Buy.

‘Twas the (Foolish) day before Christmas

Twas the day before Chriistmas, And here at the Fool
We typed up this update, With tidings of Yule
The holiday season is upon us once more
Another year closes its unopenable door

As Santa Claus readies his best reindeer team
His elves shine that big old red sleigh to a gleam
Meanwhile on the markets, investors slow down
Not much happens now at the big end of town

Holidays start for the CEOs now
Though markets keep trading, both here and the Dow
Of course, here in Fooldom, we also relax
Though not so far as to put cues in their racks

While slow down we might, and lighten the load
The journey continues, along Folly Road
So briefer, this update, with less news to tell
But we’ll keep an eye on the Buy and the Sell

Just in case good or bad news does appear
Or management try to use this time of year
To ‘take out the rubbish’, to hide something smelly
While most of the us check out the cricket on telly

Unless something happens, that you need to know
This’ll be our last missive of this year’s Fool show
We’ll be back in your inbox on the seventh of Jan
With fire in the belly and an exciting year planned

We’ve got lots to tell you, more companies to pick
We’ll bring you more live chats, coming fast and thick
More stocks on the radar, and weekly updates
It’s the quick and the dead, coming out of the gates

As always and ever, we want to say thanks
For your endless support (and one or two cranks!)
For the emails and questions, the laughs and the fun
For giving us the chance to do what we’ve done

Perhaps it’s a cliché, but we hold it true
We exist for our members, we do this for you
It’s right that without you, there’d be no more us
Motley Fool Share Advisor would be nought but dust

But much more important, at least to our mind
Your humble Fool servants really do find
That we love what we do, and we do it because
We genuinely believe in this great Foolish cause

We want all our members to gain from our toil
A sense of control and of freedom — the spoils
Of learning and thinking and buying the best
Of becoming a Fool (and in learning to jest)

Our Foolishness helps us keep brevity near
And our purpose — invest better — we hold very dear
We’re genuinely honoured that you’ve chosen us
To join your life’s journey, to ride on our bus

And so as we close off the year twenty-twelve
We turn down the lights and catch a glimpse of the elves
It’s Bruce and Scott, Mike, Robyn and Lynette
All Fools planning to make next year the best yet

We also think of those for whom this is tough
Those far less fortunate, this time can be rough
We hope that this Christmas can be one of cheer
That those of us able can bring Christmas near

And our soldiers and airmen and sailors who are
Serving our country, at home and afar
And those in our services, firies, ambos and cops
Working this Christmas, we thank you, you’re tops

And so as we bring this short poem to close
(With apologies to Clement Clarke Moore for the prose)
Little remains to be said and be done
It’s Christmas, bring on the pudding and fun

We wish you great joy,  please be safe, have much cheer
As we count down to yet another new year
To all of our members, we hope this sounds right
“A Foolish Christmas to all, and to all a good night”!

The Motley Fool Share Advisor Scorecard

If you haven’t had a chance to pick up some of our recommendations, we still think there’s great value to be had in all of our Buy recommendations.

For those who’ve come in late, reading the scorecard is simple. Company names highlighted green are Buy recommendations, while companies highlighted in yellow are HoldsCompany names highlighted in red are Sells.

The ‘Return’ column shows the return of each recommendation since we recommended it, and is coloured green when the return of that company is beating the market and red when it lags the market return.

Please also note that the ‘Then’ price is automatically adjusted by our data provider to show the cost base of each company, including dividends. The ‘Now’ price is the current market price, or the price on the date we decided to sell a recommendation. In that instance, the All Ords Total Return is also frozen as of that date.

The All Ords Total Return is similarly dividend-adjusted, making for a fair and more accurate comparison than share prices alone.

Company Rec Date Then Now Return All Ords Total Return
Retail Food Group (ASX: RFG)buy 20-Dec-12
2.95
3.05
3.4%
-0.1%
3D Systems (NYSE: DDD)buy 20-Dec-12
49.10
49.84
1.5%
-0.1%
Domino’s Pizza (ASX: DMP)buy 22-Nov-12
9.39
10.47
11.5%
4.8%
Westinghouse Air Brake Tech(NYSE: WAB)buy 22-Nov-12
77.45
84.43
9.0%
4.8%
Codan (ASX: CDA)buy 25-Oct-12
2.07
2.37
14.5%
3.1%
Priceline.com (Nasdaq: PCLN)buy 25-Oct-12
544.59
594.03
9.1%
3.1%
Seek (ASX: SEK)buy 27-Sep-12
6.73
6.99
3.9%
6.2%
Google (Nasdaq: GOOG)buy 27-Sep-12
723.66
686.90
-5.1%
6.2%
Corporate Travel Management(ASX: CTD)buy 23-Aug-12
2.30
3.66
59.4%
6.9%
Starbucks (Nasdaq: SBUX)buy 23-Aug-12
45.73
51.45
12.5%
6.9%
Metcash (ASX: MTS)buy 26-Jul-12
3.12
3.35
7.5%
13.7%
Netflix (Nasdaq: NFLX)buy 26-Jul-12
58.02
87.67
51.1%
13.7%
OrotonGroup (ASX: ORL)hold 28-Jun-12
6.94
7.00
0.9%
16.2%
Westport Innovations (Nasdaq: WPRT)buy 28-Jun-12
35.37
25.88
-26.8%
16.2%
Amcom Telecomm.(ASX: AMM)buy 24-May-12
1.02
1.40
37.0%
16.1%
Teradata (NYSE: TDC)buy 24-May-12
72.07
59.89
-16.9%
16.1%
Sirtex Medical (ASX: SRX)hold 26-Apr-12
6.24
12.83
105.7%
7.7%
Titanium Metals (NYSE: TIE)hold 26-Apr-12
13.59
15.81
16.3%
7.7%
Industrea (ASX:IDL) 22-Mar-12
0.98
1.21
23.5%
2.2%
WisdomTree (Nasdaq: WETF)buy 22-Mar-12
7.83
5.96
-23.9%
9.8%
Vocus Communications(ASX:VOC)buy 23-Feb-12
1.70
1.62
-4.7%
10.6%
Amazon.com (Nasdaq: AMZN)buy 23-Feb-12
168.85
246.60
46.0%
10.6%
QBE Insurance Group (ASX: QBE)buy 26-Jan-12
11.20
10.55
-5.8%
12.1%
Dolby Laboratories (NYSE: DLB)buy 26-Jan-12
30.45
29.27
-3.9%
12.1%
Thorn Group (ASX: TGA)buy 22-Dec-11
1.48
1.99
34.3%
17.2%
Apple (Nasdaq: AAPL)buy 22-Dec-11
387.98
498.48
28.5%
17.2%
Integrated Research (ASX: IRI)buy 5-Dec-11
0.40
1.30
223.2%
11.1%
Coach (NYSE: COH)buy 5-Dec-11
59.34
55.26
-6.9%
11.1%

All figures are accurate as of 4:00pm on Friday December 21, 2012.

As a reminder, the prices of the U.S. recommendations are in Australian dollars and all start prices are adjusted for dividends. As we explained from the outset we wish to be totally transparent with our scorecard and to ensure all returns account for dividends, capital gains and currency movements.

Coming Soon — A break, then back better than ever

As we mentioned above, we’re not planning to send you an update next Monday, unless circumstances require it. We’ll be back in your inbox on Monday January 7, 2013!

(If you need some Christmas Foolishness, there’s plenty of great content in our past issues as well as our special reports and weekly updates. Don’t forget you can also check out some of our recommended reading in the education section of our most recent issue).

If you’re on Facebook, you can like us here, or you can follow us on Twitter.

Merry Christmas and Happy New Year, Fools!

Bruce Jackson and Scott Phillips

Motley Fool Share Advisor

Disclosure: Of the companies mentioned in this email, Bruce Jackson owns shares in Corporate Travel Management, Thorn Group, Vocus, Woolworths, 3D Systems, Apple, Google, Starbucks and Titanium Metals. Scott Phillips owns shares in Corporate Travel Management, QBE Insurance, OrotonGroup, Woolworths and Amazon.com. Click here to view The Motley Fool’s disclosure policy.

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