Stocks Give Up All of 2010's Gains

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Stocks Give Up All of 2010's Gains

8 May 2010 - Barrons - Kopin Tan

SINCE NOTHING IMPROVES A BAD MOOD like spreading it around, this latest global outburst of negativity should ultimately make you feel better.

Google, of course, has fallen on hard times, but only by its own exalted standards. Revenue growth has slowed from 56% in 2007 to 23% last quarter, Chinese authorities and European antitrust officials proved peskier than hoped, and Microsoft's (MSFT) Bing snagged more than 9% of the search market in April.

Still, Internet ad spending is on the upswing. Although Google won't enjoy the same revenue per search as it expands abroad, the impact is well considered by the stock's 20% slide this year. And Google still rakes in $27 a share in free cash flow and boasts net profit margins near 32%.

Sure, tweaking its logo to sharpen the colors and cast no shadows is a bit...creepy, but the momentum crowd's fleeing of Google has gone too far. "For a dominant, best-of-breed company that enjoys an oligopoly, if not a monopoly, to trade at a near-market multiple is just crazy," says Harry Rady of Rady Asset Management, who has been buying shares.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Contrarian Long/Short Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 877.302.7239. The prospectus should be read carefully before investing. The Contrarian Long/Short Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC.

	RAM L/S	S&P 500
One Year	4.05%	49.74%
Three Year	7.29%	-12.01%
Since Inception	7.65%	-12.77%
Q1 2010	0.09%	5.39%

Mutual Funds involve risk including possible loss of principal. ETFs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in stocks and bonds. When the Fund invests in foreign securities through ADRs, the Fund could be subject to greater risks because the Fund’s performance may depend on issues other than the performance of a particular company or U.S. market sector. Stocks of mid-cap companies may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general. The Contrarian Value Long Short Fund has the same management practices and is in all material respects identical to the predecessor Limited Partnership and is managed by the same portfolio manager since the predecessor limited partnership’s inception on February 2007. The Fund’s investment goals, policies, guidelines and restrictions are, in all material respects, equivalent to the predecessor limited partnership. From its inception date, the predecessor limited partnership was not subject to certain investment restrictions, diversification requirements and other restrictions of the 1940 Act of the Code, if they had been applicable, it might have adversely affected its performance. In addition, the predecessor limited partnership was not subject to sales loads that would have adversely affect performance. Performance of the predecessor fund is not an indicator of future results.