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The following is an investment opinion issued by

WESTPORT, Conn.--(BUSINESS WIRE)--July 14, 2003 (CRD# 43608) believes International Business Machines (NYSE:IBM) will outperform market this quarter and AOL Time Warner (AOL:NYSE) is going higher. Oracle Corporation (ORCL:NASDAQ) is on a roll and headed for high teens in our opinion. Dell Computer (DELL:NASDAQ) goes higher, and Lucent (LU:NYSE) goes with it. believes IBM will take off this quarter. We recommended the stock on June 9th at $81.32. We would be very surprised not to see IBM trade to a substantial premium to the S&P 500. In recent years IBM has traded about 18 times the next year's earnings. In light of this company being totally dominant in its arena, we believe a minimum of 20 times future earnings is warranted. Our target is $105 per share by year end.

IBM's outsourcing business competes directly against EDS which has been plagued by problems over the last 12 months. This now makes IBM the default company for outsourcing. IBM will use outsourcing as an entry into being a total solutions provider. In other words leverage outsourcing to penetrate every aspect of a customers information needs, thus the premium to the S&P is justified. believes AOL Time Warner trades substantially higher. We put it on the list on May 20th at $13.75 per share. The stock can pop right here based on the unveiling of AOL version 9.0 which will be demonstrated for analysts TODAY. Analysts will get very excited and we believe, recommend the stock this week. Buying begets buying. Long-term, AOL must lose subscribers to broadband because they are the heavy elephant with the lion's share of subscribers to begin with and therefore the most to lose. AOL itself will still throw off over a billion dollars a year in free cash flow (FCF) for years, and that's just part of the $4.5 billion in FCF that AOL Time Warner will have available in 2004. The rest of the company is performing brilliantly. The company is back. believes Oracle should move up into the upper teens by year-end. Oracle is the low cost answer in just about every market it is involved with. Their product position has strength and broad range. We have an economic recovery coming which will include information technology spending and ORCL will directly benefit. Corporations will open up their treasuries once again and Larry Ellison's company has the proven technology that companies need. We are looking for $17 to $18 per share by year end. believes the Dell Computer story is not over. Dell has publicly stated that they are targeting $60 billion in sales over a five year period. Current revenues are $35 billion. Wall Street is starting to believe the story once again. Dell is unique in being able to enter a new market, compress their competitor's margins and expand their own. No other technology company has been able to duplicate this scenario and that justifies an exorbitant Price Earnings ratio.

Dell is the low cost producer with unrivaled quality control. With entries into the storage, service and networking venues, the story is getting bigger and better. We are looking for continued market share gains in desktops, notebooks, and servers. Dell has made its bet that America and the world will continue to move toward open systems as opposed to proprietary solutions. We believe that Dell has bet right and the stock therefore goes appreciably higher. believes Lucent will move 50% higher from its current $2 level. There are major contracts to be won. Lucent is trading at less than 1 times revenues, unlike its major competitors that are trading closer to 1.5 times revenues. With companies like AT&T looking for suppliers to upgrade their network, we think Lucent is at the top of the list for a major contract award. Couple this with an improved financial picture and access to capital markets and we smell upgraded analyst ratings. Look for a move to the $3 area by year-end.

Subscribers to have seen a 40% compounded growth pattern in their portfolios over the last four years which have included one of the century's worst market environments. We are up 27.1% in 2003.

All information presented herein is the opinion of We do not own directly or indirectly any shares in the stocks that are mentioned in this article. The above are not recommendations to buy or sell. We can not advise you without determining your suitability to own any security. All stocks involve substantial risks. Investigate before investing. Form your own opinion.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 14, 2003
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