July 24, 2002 (10:16 AM est)

Trying times continue. If you go to the Lucent section of our site, you will see a work in process on our Lucent analysis. We continue to vigorously monitor the company and the telecom industry. We are convinced that telecom certainly has a future. The possibility of reorganizations and potential bankruptcies are a reality. We do not currently expect Lucent to have a future bankruptcy filing, yet we continue to monitor as much information that is available.

We mentioned in our July 17, 2002 memo that trying times would continue. We are seeing weakness in all areas in investing. The weakness continues with precious metals, treasury bonds, energy, all common stocks and utilities. We have seen the US dollar strengthen during the last week, which we feel is a correction of the recent sharp decline. We continue to believe that the dollar will continue to experience weakness over the long term.

We continue to monitor our portfolios with diligence and attempt to eliminate emotions from the process of analysis. We continue to believe that we are in a prolonged bear market. We most certainly see certain selective situations that can be accumulated now. The key to that accumulation will be a strong stomach and a long term outlook. We urge you to look at our “special features section ” FEATURES\beatstreet.htm and concentrate on the section called ” Notes On Beating the Street”.

Our site is still in its Beta stage and we still need to convert many documents to an easier readable format (HTML) , instead of the current word documents.