'Mad Mail'

Cia Vale do Rio Doce (VALE)

Q:      I got in on VALE at $13 and rode it up to almost $19 where it is now. I read a few articles that indicate that VALE is a long-term play on Brazil as an emerging market. That said, I've heard China is negotiating a cut in their iron ore prices by 40%. What should I do?

Jim:    VALE is a large iron ore producer. China is a big consumer of iron. I don't think China's going to be able to cut its build like that. I think you can stick with VALE fundamentally, but the fact that you're up 6 points on it, tells me that you should be taking that money that you put in out. Let the rest run. You can play with the house's money. It's a terrific situation to be in.

'Mad Mail'

Digital Globe (DGI)

Q:      What happened to DGI? I picked up the stock in the range you suggested, between $20 and $22. Since its IPO, the stock has been down every day. I was wondering if you could enlighten me on why and how come this is happening. The company looks good. I don't understand.

Jim:    First of all, GeoEye, Inc. (GEOY) reported a bad number right around that time. That knocked it down. But what I was trying to get you in the IPO... not pay $20-22... I was trying to get you to go to your broker, and say, I'm willing to pay $22... That way, you would get what you wanted if they priced it below... They did. They priced it at $19, okay... so the idea was