D & D Securities Inc.

Morning Call: Thursday, July 2^nd, 2009

As we start a new quarter, here are some thoughts about the changing landscape. The appetite for risk has been at least partially satisfied and, in most measures, rewarded. It will continue but at diminished levels. Losing ground, but a slower pace won't be enough to drive equity prices. The non-Farm payroll numbers at minus 467K was worse than expected despite an argument about some internals being better. Jobless claims at 615K is a horrible number. We've come back from the expectation of a Depression, and only in that context was "less bad” cause for celebration.

The combination of less risk appetite and disappointment in the strength of the recovery will give the market headwind challenges.

Next week at the G8, China will want to talk about a Global Reserve currency. That can't help the USD action. The will explain that all they want is "Stability". We are really incredulous that they would do that now and that it will be in a public forum.

Our tempered optimism persists, and we like U3O8, Technology (especially Internet advertising) and Fertilizers/Agriculture.

We continue to…invest the money.

Solar Thursday

First Solar (FSLR:NASDAQ) had an analyst conference on the 24th of June 2009 in Las Vegas. They have provided updated guidance of their cost per watt: from $0.65-0.70/W to $0.52-0.63/W by 2014. Mostly achieved though panel and manufacturing efficiencies. FSLR also projected BOS costs to reach $0.91-0.98/W by 2014.

QQQQ US (Bloomberg): PowerShares QQQ is an exchange-traded fund incorporated in the USA. The Fund represents undivided ownership interests in the PowerShares QQQ. The Fund’s objective is to provide investment results that generally correspond to the price and yield performance of the component of the Nasdaq 100 Index.

Quote of the Day:

“A word to the wise ain't necessary - it's the stupid ones that need the advice.”

-Bill Cosby

Ed Pennock, CFA, Managing Director
416-369-6921, epennock@dominick.ca

Graham Farrell, Institutional Equity Trading
416-369-4208, gfarrell@dominick.ca

The above note is prepared by an Institutional Salesperson based on morning meeting comments and general Institutional desk discussion and should not be construed as a research report or a solicitation. For information purposes only. D&D Securities, its clients, and principals may have positions in these securities.