I think he finally realizes that the ECONOMY will hold the key to his chances of re-election two years Bill Gunderson

Transcription

1 Bill Gunderson Weekly Bulletin #521 Friday, January 21st., 2011 "Invest in only the best, forget the rest! But, buy when the best are on sale!" MARKET PERSPECTIVE Select ETF's 2011 YTD Fri. 1/14/11 Fri., Jan. 21, 2011 Week Week Pct. 12 Mo.Total Return of S&P % US DOLLAR (UUP) -1.3% WEEK Close Close Change Change 3 Yr.Total Return of S&P % EURO (FXE) -6.9% NASD % 3 Yr. avg. annual return of S&P % Gold (GLD) 29.1% S&P % 5 Yr. Total Return of S&P % China (FXI) 1.8% DJIA 11, , % 5 Yr. avg. annual return of S&P % REIT's (RWR) 24.4% 10yr Bd. 3.31% 3.42% 0.11% 0.11% 10 Yr. Total Return of S&P % Silver (SLV) 82.4% Oil % 10 Yr. avg. annual return of S&P % U S Treas. (TLT) 5.1% Gold % 10 yr.total Return of (NVEC) 977.0% Inf Prot Treas (TIP) 3.3% 10 Yr. avg. annual return of (NVEC) 25.6% Homebldrs (XNB) 15.6% YTD 12/31/10 Fri., Jan. 21, YTD Pct. ` 25 Yr. Total Return of S&P % Agriculture (MOO) 22.4% 2010YTD Value Close YTD Change 25 Yr. avg. return of S&P % Coal (KOL) 31.2% NASD % DJIA % S&P % 10yr Bd. 3.30% 3.42% 0.116% 3.5% *The Gunderson Stock Grading System is a proprietary valuation and grading system developed by Oil % professional money manager, Bill Gunderson. It should not be assumed that stocks mentioned in Gold % this newsletter will be profitable. CROSS CURRENTS The wind is currently blowing every which way in the market. It is really hard to detect any kind of prevailing wind in this current volatile environment. The wind in the market started to shift towards the end of last year as profit taking started to set in a bit in some of the best performing sectors. The precious metals for instance, continue to sell off and remain basically without direction. A burgeoning rally in oil and oil stocks also cooled off this past week. The same thing happened in fertilizer, chemicals, and coal. For now, COMMODITIES are a ship without a clear direction. I remain BULLISH on them for now, however despite their current lack of direction. TECHNOLOGY also lacks a clear direction right now. Apple Compuer (AAPL) had blowout earnings, but that did not exactly set the Nasdaq on fire. IBM also had a nice earnings report, but others like F 5 Networks missed their estimates. The BANK stocks had a very mixed bag of earnings reports this past week and that probably spooked the market more than anything. Fear of another interest rate hike in China also did not help the market this past week. A very important lineup of companies will report earnings next week and that could very well hold the key to the future of this current BULL MARKET. It is also very encouraging to finally see President Obama turn his full attention to the sputtering economy I think he finally realizes that the ECONOMY will hold the key to his chances of re-election two years from now. He has now replaced Paul Volker with GE CEO Jeffrey Immelt, who has not done a very good job at GE. President Obama wants to put the nation's economy into "OVERDRIVE." Hey, I am all for that notion! In the meantime, the job market remains very soft and that will be Immelt's, number one job. The housing market also remains very soft, and it could also use some kind of shot in the arm right now. The BOND MARKET remains lousy as INTEREST RATES continue to drift higher. It is getting harder and harder to find juicy dividend yields. RETAIL stocks also lack direction right now as do Industrials. MEDICAL related stocks seem to be performing the best right now, but there are still a lot of cross currents in the market at the current time. Overall, I remain VERY BULLISH on the stock market, but I am currently trying to detect where the prevailing wind will start to blow. I think that until that wind direction is detected, it is best to just sit tight in most of my current positions and hope that I get the wind at my back once again! Bill Gunderson Bill Gunderson and friends can be heard "live" Mon-Fri. mornings on AM1000 KCEO from 7am-8am. The lineup includes Bill Gunderson, Leonard Velis, Mortgage Expert Craig Brock of Rancho Financial, CPA Randy Goodsell of Goodsell & Co., & Scott Voak of Voak Homes. I am very proud of the team that I have assembled and we are ready to serve you in The radio show, "Positively Wall St." is also replayed on AM1000 KCEO each evening from 8:00pm-9:00pm.The archived shows are also available on my website and are available on itunes. Subscribe to the Podcast,today! Next Workshop: TBA Page 1

2 Now is the time to consider CONVERTING your TRADITIONAL IRA to a ROTH IRA! The benefits of doing so are great and there are several strategies that can be employed to help minimize the tax bite. Radio team member and local CPA Randy Goodsell has offered to run the numbers and review strategies for all my clients and radio listeners at no charge. Randy owns Goodsell & Company and has been a CPA in the San Diego area for the last 30 years. To take advantage of this very generous offer, give us a call at (760) and we will set you up with Randy. THE GUNDERSON INVESTMENT METHOD It begins with a database of about 2,700 stocks, 1000 ETF's, and about 2,500 Mutual Funds. They are first compared to one another on a short-term (1-3 years), intermediate term (3-5 years), and long-term performance (5-10 year) basis. Obviously some stocks have not been around long enough to have established a long term record or sometimes even an intermediate term track record. This has to be taken into account in the overall analysis of the stock. Next, I look at the relative overall relative safety of the stock in the past. In my mind, relative safety is represented by overall volatility of the stock, especially during the "watershed" year of 2008 when many stocks weaknesses were exposed to the world during a very difficult time in the economy. Lastly, I put considerable weight in VALUATION. We learned from the TECH crash of 2000 that VALUE does matter! We learned again from the REAL ESTATE crash of 2006-???? that VALUE does matter! We are also beginning to be reminded again by the sudden sell-off in the BOND MARKET that once again, VALUE does matter. I then compare every stock, etf, and mutual fund against one another and come up with my own proprietary grade for each one of them. To me, it is always startling to find how POORLY well known, widely held stocks stand up against lesser known, not as popular OUTSTANDING stocks! There truly are stocks of yesteryear, stocks of today, and rarely perennial champions. Just like in the sports world, there are great programs, great management, and great coaches that that make the cut year after year. Almost every sport has it's annual all-star game where only the best of the best are invited to play. Why wouldn't investors want the very best in their portfolio? WASHINGTON WATCH, THE ECONOMY, GLOBAL WATCH and THE EARNINGS FRONT. The big news this past week came in the way of earnings reports. We are now moving into the center of earnings season, and next week will be hot and heavy. So far, earnings season has been a mixed bag. Apple (AAPL) and IBM knocked the ball out of the park, while Goldman Sachs (GS), Citigroup C, Bank of America (BAC), Well Fargo (WFC), and F 5 Networks disappointed. General Electric (GE), Google (GOOG), and Ebay (EBAY) reported good earnings. GE CEO, Jeffrey Immelt, will be replacing Paul Volker as one of President Obama's chief economic advisors. I hope Immelt does better for our country than he has done at GE! The Initial Jobless Claims came in a little bit better than expected this past week, while interest rates nudged their way upwards and housing remains soft. Next week we will get earnings from the likes of McDonalds (MCD), American Express (AXP), Amgen (AMGN), CSX (CSX), Texas Instruments (TXN), Johnson + Johnson (JNJ), Yahoo! (YHOO), Boeing (BA), Netflix (NFLX), Qualcomm (QCOM), AT& T (T), Caterpillar (CAT), Ford (F), Potash (POT), Amazon.Com (AMZN), Microsoft (MSFT), and Chevron (CVX), just to name a few. Next week has the potential to MAKE OR BREAK the current BULLISH trend in the market! BIG PICTURE-MARKET WATCH The DJIA is hitting a 52 week HIGH as of Friday. It is pretty hard to call this anything but a BULLISH TREND. The S&P 500 is just a hair below its 52 week high. It too remains in a BULLISH uptrend. The NASDAQ has pulled back to its 20 day moving average, but it too remains in a BULLISH trend. The BOND MARKET remains in a BEARISH downtrend. Have a home to sell or are you looking for some new digs? The NUMBERS once again work out real nice on the right INCOME PROPERTIES This a great time to buy or sell real estate. Give radio team member Scott Voak of Voak Homes a call and he will get job done for you. He can be reached at (888) or visit his website at Be sure and listen to Scott Voaks' best buys of the week every week on the radio show. CHART WATCH, BEST SECTORS, FRESH BREAKOUTS, MOMENTUM AND IDEAS FOR TRADERS. 751 stocks made new weekly highs this past week. This is up from the 477 number, just three weeks ago. This is also a very BULLLISH indicator for the stock market. Highly rated stocks in the Gunderson Grading Systerm that hit new Page 2

3 weekly highs this past week include: Apple Inc., (AAPL), Amerisourcebergen (ABC), Aceto Corp., (ACET), Apco Oil and Gas (APAGF), Alliance Res. Partners (ARLP), B P Prudhoe Bay (BPT), Albermarle (ALB), Brigham Exploration (BEXP), Continental Resources (CLR), Clean Harbors (CLH), Cummins Inc. (CMI), Corvel Corp. (CRVL), Credo Petroleum (CRED), Eaton Corp (ETN), CSX Corp. (CSX), Concho Res. (CXO), D X P Enterprises (DXPE), Express Scripts (ESRX), Ford (F), First Cash (FCFS), Georesources (GEOI), Alaska Air (ALK), Altera (ALTR) JB Hunt (JBHT), M S C Industrial (MSM), M W I Veterinary (MWIV), N V E Corp. (NVEC), Novo Nordisk (NVO), Priceline.com (PCLN), Alexion Pharmaceutical (ALXN), Potash (POT), Skyworks (SWKS), Trimble Navigation (TRMB), Union Pacific (UNP), Walter Energy (WLT), Zoll Medical (ZOLL), Amerigroup (AGP), Alliance Holdings (AHGP), Amtech Systems (ASYS), EZCorp (EZPW), IBM (IBM), Gartner Inc. (IT), and Pricesmart (PSMT), MORTGAGE RATES ARE STILL VERY NEAR to ALL TIME LOWS!! Have Gunderson & Friends radio team member, Craig Brock analyze your current mortgage and see if he can help lower your payments for you! Rates may never be this low again. Give us a call at (760)736-VALU and will put you in touch with Craig IMMEDIATELY! INCOME INVESTING It is getting harder and harder to find good yields in the market. It is not like two years ago when high yield bonds were yielding in the mid teens. The BOND MARKET still looks awful and I would continue to avoid it all costs. The wheels have come off of the bus on the IRON ORE stocks like GNI and MSB. That pretty much leaves REIT's, Propane, Natural Gas, Oil, and Mortgages. I got rid of GNI and ANH this past week. My current favorite income ideas are listed below: 2010 Symbol Yield Category Tot. Ret. AGNC 19.0% REIT-Mortgage 28.4% ARLP 4.8% Energy-Coal 69.0% BPT 6.3% Oil & Gas Royalty Tr. 72.0% CRT 6.9% Oil & Gas Royalty Tr. 28.5% FGP 7.6% Propane MLP 31.3% JRS 8.5% REIT-Property 37.5% MSB 10.0% Mining-Metal Ores 234.0% NHI 5.3% REIT 29.4% NLY 14.4% REIT-Mortgage 16.0% O 5.1% REIT-Property 36.1% OHI 6.7% REIT-Healthcare 26.8% WHX 10.0% Oil & Gas Royalty Tr. 55.0% INTERNATIONAL AND EMERGING MARKET WATCH: It is still fairly soft out there for International and Emerging Markets. With the recent strength in Oil, Russia is about the only International Market that is currently in a good uptrend. India is really soft rigth now, while China remains undecided YTD Russia RSX New 52 week highs here as oil prices continue to move higher. 5.2% China FXI China still in the doldrums for the second straight year. 3.4% Japan EWJ Japan is on a roll right now. 2.2% Europe EFA Europe is beginning to break out. 2.1% Mexico EWW Mexico hitting a new 52 week high. 1.4% Canada EWC Natural resources helping Canada hit new highs 1.0% Taiwan EWT Ditto Taiwan (making new highs) 0.6% Brazil EWZ Still choppy sideways trade. 0.0% Peru EPU Top Performer in 2010! Seeing some profit taking right now. -8.4% Page 3

4 Chile India CH 2010 second best performer also undergoing some profit taking -8.8% INP Chart looks a little shaky right now % CURRENCY WATCH Sell Dollars and buy Pesos! Just kidding YTD Peso FXM Breaking out to new highs right now. 3.2% Yuan CYB The Chines Yuan is finally being allowed to float a bit. 0.3% Dollar UUP Range bound for two months 0.3% Euro FXE Starting to show some strength 0.1% Yen FXY Range bound. -2.2% Franc FXF Ditto the Swiss Franc -3.2% Australia FXA Commodity rich Australia has one of the strongest currencies in the world right now. -3.4% COMMODITY WATCH 2011 Commodities had a really last week this past week. Fear of an interest rate hike in China dumped a gatorade bucket on the burgeoning commodity rally for now. YTD Coal: Steel Grains: Copper: Oil: Cotton: Gold: Silver: KOL Been on a tear. Finally starting to correct. 2.7% SLX Ditto Steel 1.6% JJG Hitting New Highs! 1.5% JJC Hitting New Highs! -0.1% USO Nice, steady uptrend -0.2% BAL Cooling off after a torrid run -1.3% GLD Three month sideways trend -4.3% SLV Ditto Silver -8.1% BEAR, TECHNICAL WEAKNESS AND SHORT-SELLING WATCH! It would not be wise to hold any short positions at the current time. PST (shorting interest rates) would be the only one that I would even consider at the current time. 401-k WATCH. Most people's BEST weapon for future retirement. I want to continue to emphasize the point, that if you have a 401-k available to you through your employer, do the very best you can to put away as much as possible each and every week. The second step is choose wisely amongst the choices that are available to you. Most 401k plans have a very limited and dull set of fund choices, but one still has to do the best amongst the offerings. I like a BASIC 401k allocation as follows at the current Best Bond Fund Choices that you have: 0.0% Best Large Cap Choices that you have: 0.0% Page 4

5 Best Mid Cap Choices that you have: 40.0% Best Small Cap Choices that you have 40.0% Best Nat. Resource Choices that you have: 10.0% Best International Choices that you have: 10.0% Cash 0.0% TOTAL 100.0% I have a plan that charges $295 per year to manage your 401k. I will personally put ALL of your choices into my GRADING database and make your initial allocation. I will then monitor your 401k on a weekly basis and make changes as see fit. Contact me through the website or call me at (760) for more info. A few percentage points over time can make a huge difference in your retirement funds. MY CURRENT SINGLE BEST IDEA (From among a database of 3,700 stocks and etf's) Perrigo Co. (PRGO)-$70.26-The company develops over-the-counter and generic pharaceuticals, diagnostic and nutritional products and active pharmaceuticals. Headquartered in Allegan, Michigan, the company has a current market capitalization of $6.48 billion (mid-cap). Gunderson Smart Phone APP View PRGO Perrigo Co. Medical Generic Drugs Cap Mkt. Cap 6,480,000,000 Mid Price 3-5 Yr. Tgt. Upside $70.26 $ % Value Grade: B+ Div. Yield 0.40% Performance Stock S&P Mo 76.8% 12.4% 3 Yr. CAGR 27.6% -3.0% 5 Yr. CAGR 36.9% 0.1% 10 Yr. CAGR 25.4% -0.2% % -38.5% LT Perf. Gr. A+ ST Perf. Gr. A Page 5

6 Gunderson Grade A Safety Grade A- Previously Featured Stocks Winners and Losers for the week: It was a great week for the ENERGY stocks last week. This week was a LOUSY week for the ENERGY stocks. Northern Oil & Gas (NOG) was down 7.7% for the week, while Brigham Exploration (BEXP) was down 6.8%, and Quaker Chemical was down 8.5%. Oil prices loosened up a bit this past week, but they still remain in a five month uptrend. TECHNOLOGY also had a pretty good week last week and a pretty LOUSY week this week. It all started with the announcement over the last weekend that Steve Jobs would be taking yet another medical leave of absence. Even the BLOWOUT earnings by Apple could not overcome the negative bias created by the Job's news. F 5 Networks sales did not live up to expectations and the stock was down 23.5% for the week. Skyworks reported fairly good earnings, but the stock was down 7.7% for the week. Cirrus Logic (CRUS) was also down 7.5% for the week, while NVE Corp. (NVEC) was down 6.5%. I have nothing to brag about at all in the tech sector. PRECIOUS METALS also had another rough week as Gold and Silver continue their pullbacks. Central Fund of Canada was down 6.8% for the week, while Silver Wheaton was down 8%. Coal also continued its pullback this past week as Walter Energy (WLT) was down 9.5% for the week and Alliance Resource Ptnrs (ARLP) was down 7.2%. These are big pullbacks! Retail is the only area where there was a little bit to brag about this past week. Joseph A Bank (JOSB) was up 4.0% for the week, while Ross Stores (ROST) was up 2.0%, and Dollar Tree (DLTR) was up 2.1% for the week. Deckers Outdoor (DECK), on the other hand was down 9.2% for the week. Stocks that look exceptionally good right now! ABC, ALXN, CRT, CXO, CSH, ESRX, EZPW, FCFS, FGP, GEOI, KMP, NVEC, POT, SWKS, TRMB, and UNP Stocks that are giving me heartburn right now! AEM, FFIV, SLW, AAPL, CEF, CSTR, JOSB, and WLT. PREVIOUSLY FEATURED STOCKS-Along with proprietary GUNDERSON GRADE & VALUATION Gunderson Rating of (A+,A,A-)=STR.BUY CANDIDATE, (B+,B,B-)=Hold <B=SELL CANDIDATE *Target Prices updated 1/21/11 *Feature **Current Dividend Pct. S&P ***3-5 Yr. Upside *GUNDERSON Featured Symbol Name Price Price Yield Change 500 IBD Sector/Ind. Group Target Potential Grade 01/14/2011 ACET Aceto Inc. $9.38 $ % -6.1% -0.8% Chemicals-Specialty $ % A- 01/07/2011 CLR Continental Resources $58.15 $ % 3.1% 0.9% Oil & Gas-US Exploration $ % A- 12/31/2010 NSU Nevsun Resources $7.53 $ % -20.2% 2.0% Mining-gold/silver/gems $ % A- 12/24/2010 MWIV M W I Veterinary Supply $64.54 $ % -2.0% 2.0% Medical-whlsle Drg/suppl $ % B+ 12/17/2010 HGR Hanger Orthopedic $21.50 $ % -2.7% 3.1% Medical-outpnt hm Care $ % A- 12/10/2010 TRMB Trimble Navigation $41.26 $ % 2.4% 3.4% Consumer Prod-elecronic $ % A- 12/03/2010 NVEC N V E Corp. $53.11 $ % 7.6% 4.7% Electronic Parts $ % A 11/19/2010 FDO Family Dollar $48.69 $ % -9.3% 7.8% Retail-discount/variety $ % A- 11/12/2010 RES R P C Inc. $17.28 $ % 0.9% 8.1% Oil & Gas-Field Svcs. $ % A 11/05/2010 FFIV F5 Networks $ $ % -9.7% 4.6% Computer-Networking $ % A 10/29/2010 AEM Agnico Eagle Mines $75.44 $ % -8.2% 8.4% Mining-gold/silver/gems $ % A- Page 6

7 10/22/2010 KWR Quaker Chemical $37.10 $ % 7.3% 8.4% Chemicals-Specialty $ % A- 10/15/2010 CEF Central Fund of Canada $17.70 $ % 3.9% 9.0% Finance-Precious Metals NA NA A- 10/08/2010 AZO Autozone $ $ % 8.5% 10.1% Retail-Auto parts $ % A- 09/24/2010 UGP Ultrapar Participaco ADR $58.58 $ % 8.7% 11.6% Chemicals-Specialty $ % A- 09/10/2010 LZ Lubrizol $ $ % 2.6% 15.6% Chemicals-Specialty $ % B+ 08/27/2010 HE Hawaiian Electric $23.69 $ % 4.2% 20.5% Utility-Electric Power $ % B 08/20/2010 IT Gartner Inc. $28.12 $ % 21.6% 19.7% Comml Svcs-market Rsrch $ % A- 08/13/2010 ARCC Ares Capital Corp. $13.66 $ % 18.5% 18.8% Finance-investment mgmt $ % B 07/30/2010 BWA Borg Warner $43.86 $ % 56.2% 16.4% Auto/Truck-Original Equip. $ % A- 07/23/2010 PSMT Pricesmart $26.78 $ % 47.5% 16.3% Retai-major Disc Chains $ % B+ 07/16/2010 ARLP Alliance Resource Partners $46.67 $ % 40.0% 20.4% Energy-Coal $ % A- 07/09/2010 JAS Joann Stores $39.16 $ % 54.2% 19.0% Retail-Specialty Bought Out NA 07/02/2010 MNRO Monroe Muffler, Brake $26.53 $ % 21.4% 25.4% Retail-Whlsle Auto Parts $ % A- 06/10/2010 CRUS Cirrus Logic $14.09 $ % 23.8% 18.0% Elec-Semiconductor-Fabless $ % B+ 06/03/2010 JOSB Joseph A Bank Clothiers $38.15 $ % 11.8% 20.4% Retail-Apparel/Shoes $ % B+ 05/28/2010 DECK Decker's Outdoor $48.24 $ % 54.5% 17.7% Apparel-shoes Rel Mfg. $ % A 05/21/2010 F Ford Motor Co. $11.11 $ % 61.5% 17.9% Auto-Mfg. $ % B+ 05/14/2010 SLW Silver Wheaton $21.14 $ % 47.1% 12.9% Metals-Silver $ % A- 05/07/2010 CLH Clean Harbors $60.13 $ % 38.0% 15.4% Pollution Control $ % A- 04/23/2010 EZPW Ezcorp. $23.39 $ % 20.1% 5.3% Finance-Consumer/cml Lns $ % A 04/16/2010 WLT 04/02/2010 ALXN Alexion Pharm. $54.56 $ % 55.2% 8.8% Medical-Biomed/Biotech $ % A 03/19/2010 DTV Directv $33.42 $ % 26.1% 11.5% Media-cable/satellite Tv $ % A- 03/05/2010 CXO Concho Resources $50.04 $ % 81.1% 12.6% Oil & Gas-US Exploration $ % A- 02/19/2010 CSH Cash America $37.96 $ % 3.5% 15.6% Finance-Consumer/cml Lns $ % B+ 01/01/2010 WHX Whiting USA Trust $15.23 $ % 42.5% 15.0% Oil & Gas Usa Trust I $ % A- 12/11/2009 ESRX Express Scripts $43.54 $ % 33.7% 16.3% Medical-Dental/Svcs. $ % A- 12/04/2009 DLTR Dollar Tree $31.19 $ % 65.5% 15.9% Retaill-discount/variety $ % A- 11/20/2009 EPD Enterprise Products $27.55 $ % 53.8% 17.5% Oil & Gas-Pipeline $ % B 11/06/2009 NLY Annaly Capital Mgt. $14.10 $ % 25.2% 19.9% REIT-Mortgage $ % B+ WLT Walter Energy $93.43 $ % 32.2% 7.6% Energy-Other $ % B+M347 09/18/2009 ENSG Ensign Group $15.24 $ % 56.8% 20.0% Medical-Nursing Homes $ % B+ 07/02/2009 PRAA Portfolio Recovery Assco. $39.80 $ % 82.5% 43.1% Financial Services-misc $ % A 05/15/2009 INFY Infosys $32.02 $ % 119.6% 46.4% Computer-Tech. Services $ % A- 02/27/2009 POT Potash $83.97 $ % 92.9% 74.4% Chemicals-Fertilizer $ % A- 02/13/2009 CLB Core Labs $32.28 $ % 164.8% 55.1% Oil & Gas-Field Svcs. $ % B+ 01/16/2009 CERN Cerner $40.10 $ % 140.6% 50.8% Comp. Sftwr-Medical $ % B+ 01/02/2009 AGNC American Capital Agency $13.89 $ % 105.4% 37.6% Finance-MBS $ % A- 11/13/2008 O Realty Income $18.21 $ % 85.1% 46.8% Finance-REIT $ % B- 11/07/2008 KMP Kinder Morgan Energy LP $46.20 $ % 55.2% 37.7% Oil & Gas-transprt/pipeline $ % B 07/10/2008 BUCY Bucyrus $62.33 $ % 45.1% 2.3% Machinery-const/mining Bought Out NA 06/26/2008 CHRW C H Robinson Worldwide $53.20 $ % 45.5% -0.1% Transportation-Services $ % B+ A- NA B+ A- Page 7

8 06/06/2008 NOG Northern Oil & Gas $14.18 $ % 81.6% -5.8% Oil & Gas-US Exploration $ % B+ 05/09/2008 GEOI Geo Resources $20.03 $ % 28.8% -7.6% Oil & Gas-US Exploration $ % A 05/02/2008 BEXP Brigham Exploration $9.48 $ % 175.2% -9.3% Oil & Gas-US Exploration $ % A- 03/21/2008 GDI Gardner Denver $36.95 $ % 91.4% -3.3% Machinery-Gen Industrial $ % A 08/31/2007 ORCL Oracle Corp. $19.79 $ % 64.1% -13.0% Computer Sftwr-Enterprise $ % A- 08/10/2007 NSC Norfolk Southern $47.20 $ % 36.0% -11.8% Transportaion-Rail $ % B+ 06/22/2007 ROST Ross Stores $30.51 $ % 113.5% -14.7% Retail-Clothing/Shoe $ % A 2/24/2006 ETN Eaton Corp $61.90 $ % 64.7% -0.5% Diversified Operations $ % B+ 1/27/2006 SWKS Skyworks $5.33 $ % 448.6% -0.1% Elec-Semiconductor Mfg. $ % A- 02/18/2005 UNP Union Pacific $29.53 $ % 220.1% 6.7% Transportation-Rail $ % A 10/7/04 CSX C S X Corp. $15.85 $ % 324.8% 13.4% Transportation-Rail $ % A- 6/25/04 CTSH Cognizant Technology $12.97 $ % 463.9% 13.0% Computer-Tech. Services $ % B+ A- REMOVED FROM FEATURED STOCK LIST 2010/ /09/2009 YUM Yum! Brands $29.16 $ % 50.5% Retail-Restaurants. $ % SOLD 1/14/11 10/01/2010 IDSA Industrial Svcs of America $15.55 $ % 11.9% Metal Proc_Fabrication $ % SOLD 1/14/11 07/16/2009 NSRGY Nestles $40.45 $ % 36.3% Food-Misc. Prep $ % SOLD 1/7/11 09/26/2008 NKE Nike $66.47 $ % 5.7% Apparel-shoes Rel Mfg. $ % SOLD 1/7/11 03/06/2009 CHD Church & Dwight $46.86 $ % 87.6% Soap-Clng Preparations $ % SOLD 1/7/11 09/12/2008 BRK/B Berkshire Hathaway $79.60 $ % 2.4% Diversified Operations NA NA SOLD 1/7/11 12/14/2007 BMC B M C Software $35.78 $ % -12.6% Computer Sftwr-Enterprise $ % SOLD 1/7/11 08/18/2006 ASEI American Science & Eng. $44.86 $ % -1.5% Comml Svcs-Security $ % SOLD 1/7/11 09/03/2010 HWK Hawk Corp. $37.31 $ % 16.1% Metal Proc_Fabrication na na Bought out 12/1/2010 6/18/04 TEVA Teva Pharm. $32.47 $ % 13.0% Medical-Generic Drugs na na SOLD 11/26/10 5/7/04 AGN From IMDC $35.00 $ % 16.7% Medical-Products na na SOLD 11/26/10 02/26/2010 SIRO Sirona Dental $35.89 $ % 16.1% Medical-Systems/Equip na na SOLD 11/5/10 07/20/2007 DRQ Drilquip $48.86 $ % -16.4% Oil & Gas-Mach./Equip na na SOLD 10/29/10 2/17/2006 ABT Abbot Labs $40.02 $ % -0.4% Medical-Drug/Diversified na na SOLD 10/22/10 09/17/2010 GMCR Green Mountain Coffee $35.43 $ % 13.9% Chemicals-Specialty na na SOLD 10/8/10 01/08/2010 EBIX Ebix Inc. $17.41 $ % 12.0% Computer Software-Ent. na na SOLD 10/8/10 02/12/2010 DFZ R G Barry Corp. $9.94 $ % 19.2% Apparel-shoes Rel Mfg. na na SOLD 10/8/10 07/24/2008 CEPH Cephalon $73.05 $ % 2.3% Medical-Biomed/Biotech na na SOLD 9/24/10 08/07/2009 CBG C B Richard Ellis $12.01 $ % 26.9% Real Estate Operations na na SOLD 9/24/10 05/08/2009 APA Apache Corp. $84.89 $ % 38.0% Oil & Gas U S Exploration na na SOLD 9/24/10 10/15/2009 ADS Allliance Data Systems $64.90 $ % 16.9% Financial Services-misc na na SOLD 9/24/10 10/26/2007 WAB Wabtech $38.35 $ % -16.5% Transportation-Equip. Mfg. na na SOLD 9/17/10 4/30/04 COH Coach $21.19 $ % 13.8% Apparel-Clothing Mfg. na na SOLD 9/17/10 11/09/2007 ARO Aeropostale $15.68 $ % -11.8% Retail-Clothing/Shoe na na SOLD 9/17/10 10/13/2006 AVT Avnet $21.51 $ % -6.1% Elec-Parts Distributors na na SOLD 9/10/10 04/09/2010 ATHR Atheros Comm. $39.35 $ % 7.4% Elec-Semiconductor Mfg. na na SOLD 9/10/10 04/24/2009 ADBE Adobe Systems $26.42 $ % 48.0% Computer Sftwr-Desktop na na SOLD 9/10/10 06/17/2010 XEC Cimarex Energy $79.32 $ % 17.5% Oil & Gas-U S Exploration na na SOLD 8/20/10 12/07/2007 WTS Watts Water Tech. $28.96 $ % -14.8% Building-Construct Prod. na na SOLD 8/20/10 08/17/2007 WMT Wal Mart $41.86 $ % -11.3% Retail-Dept. Stores na na SOLD 8/20/10 6/4/04 WMB Williams Co. $10.75 $ % 14.2% Oil&Gas-Trans. Pipeline na na SOLD 8/20/10 07/31/2008 TMO Thermo Fisher Scientific $60.20 $ % 1.2% Medical-Biomed/Biotech na na SOLD 8/20/10 08/11/2006 TGT Target $46.32 $ % 1.2% Retail-Maj. Discount Chain na na SOLD 8/20/10 Page 8

9 10/24/2008 STJ St. Jude Medical $38.03 $ % 32.4% Medical-Products na na SOLD 8/20/10 12/28/2007 QLGC Qlogic $14.13 $ % -13.3% Computer-Networking na na SOLD 8/20/10 08/14/2009 PWE Penn West Energy Trust $12.23 $ % 27.7% Oil & Gas-cdn Expl Prod. na na SOLD 8/20/10 04/11/2008 ORA Ormat Technologies $45.89 $ % -3.8% Energy-Other na na SOLD 8/20/10 08/21/2009 MHS Medco Health Solutions $55.63 $ % 25.0% Medical/Dental-services na na SOLD 8/20/10 08/28/2009 MA Mastercard $ $ % 24.6% Financial Services-misc na na SOLD 8/20/10 09/11/2009 LPS Lender Processing Services $36.81 $ % 23.0% Financial Services-misc na na SOLD 8/20/10 08/24/2007 JPM J P Morgan $43.26 $ % -13.3% Banks-Money Center na na SOLD 8/20/10 06/26/2009 HSIC Henry Schein $45.49 $ % 39.6% Medical/Dental-supplies na na SOLD 8/20/10 01/23/2009 HRS Harris Corp. $42.81 $ % 54.1% Telecom-Equipment na na SOLD 8/20/10 03/30/2007 HP Helmerich and Payne $29.87 $ % -9.7% Oil & Gas Drilling na na SOLD 8/20/10 03/20/2009 BG Bunge Ltd. $56.46 $ % 66.9% Agricultural Operations na na SOLD 8/20/10 01/11/2008 AZN Astrazeneca $41.28 $ % -8.5% Medical-Ethical Drugs na na SOLD 8/20/10 02/25/2005 WDC Western Digital $11.40 $ % 5.9% Computer-Data Storage na na SOLD 8/06/10 08/22/2008 WCG Wellcare Health Plans $42.76 $ % -0.8% Medical-HMO na na SOLD 8/06/10 11/24/2006 WAG Walgreen's $39.18 $ % -8.5% Retail-Drug Stores na na SOLD 8/06/10 12/18/2009 UPW Proshares Ultra Utilities $39.41 $ % 16.3% ETF-2X Utilities na na SOLD 8/06/10 06/05/2009 UNG United States Nat. Gas Fund $14.58 $ % 36.4% Oil & Gas U S Exploration na na SOLD 8/06/10 04/30/2009 TW Watson & Wyatt $52.02 $ % 46.4% Comml Svcs-Consulting na na SOLD 8/06/10 10/01/2009 SY Sybase $37.98 $ % 24.5% Computer-Software-enterprise na na SOLD 8/06/10 10/03/2008 SHLD Sears Holding $87.32 $ % 16.7% Apparel-shoes Rel Mfg. na na SOLD 8/06/10 03/26/2010 RF Region's Financial $7.69 $ % 9.9% Banks-Super Regional na na SOLD 8/06/10 05/22/2009 PG Proctor & Gamble $53.03 $ % 44.4% Cosmetics-Personal Care na na SOLD 8/06/10 10/17/2008 PFE Pfizer $15.46 $ % 16.7% Medical-Drug/Diversified na na SOLD 8/06/10 06/19/2009 OMI Owens & Minor $27.91 $ % 39.2% Medical-Whlsl Drugs na na SOLD 8/06/10 07/09/2009 NEE F P L Group $54.47 $ % 45.3% Utilities-Electric Power na na SOLD 8/06/10 09/19/2008 LUK Leucadia National $44.00 $ % 2.2% Diversified Operations na na SOLD 8/06/10 09/23/2005 LMT Lockheed Martin $56.74 $ % 5.5% Aerospace-Defense na na SOLD 8/06/10 02/11/2005 HK Petrohawk NRG (from KCS) $6.34 $ % 6.4% Oil & Gas-US Exploration na na SOLD 8/06/10 01/22/2010 GIS General Mills $35.48 $ % 17.5% Food-Misc. Prep na na SOLD 8/06/10 12/10/04 FRO Frontline Ltd (adj for divs.) $17.82 $ % 7.9% Transportation-Shipping na na SOLD 8/06/10 09/25/2009 FLS Flowserve $98.82 $ % 22.8% Machinery-gen industrial na na SOLD 8/06/10 01/09/2009 ESGR Enstar Group $72.24 $ % 44.0% Insurance-prop/cas/titl na na SOLD 8/06/10 01/29/2010 DV Devry $61.06 $ % 19.4% Comml Svcs-Schools na na SOLD 8/06/10 02/29/2008 DISH Echostar $29.65 $ % -3.6% Media na na SOLD 8/06/10 07/24/2008 DGX Quest Diagnostics $53.07 $ % 2.4% Medical-Biomed/Biotech na na SOLD 8/06/10 01/25/2008 CWH H R P T Properties $23.72 $ % -3.6% Finance-REIT na na SOLD 8/06/10 03/12/2010 AB Alliance Bernstein $28.96 $ % 11.5% Finance-Investment Mgt. na na SOLD 8/06/10 03/02/2007 AMED Amedisys $31.78 $ % -7.6% Medical-outpnt/hm Care na na SOLD 8/06/10 07/23/2009 ATRI Altrion $ $ % 31.3% Medical-Products na na SOLD 8/06/10 07/31/2009 BAX Baxter Intl. $56.37 $ % 29.9% Medical-Products na na SOLD 8/06/10 01/30/2009 BDX Becton Dickinson $72.67 $ % 55.3% Medical/Dental-supplies na na SOLD 8/06/10 3/10/2006 CHK Chesapeake Energy $28.96 $ % 0.1% Oil & Gas-US Exploration na na SOLD 8/06/10 04/30/2010 XHB Spiders S&P Homebuilders $19.10 $ % 8.1% Building-Homebuilders na na SOLD 8/06/10 09/29/2006 RIG Transocean Offshore $73.23 $ % -4.0% Oil & Gas-Drilling na na SOLD 5/13/10 02/05/2010 EFU Proshares Ultra-Short Europe $44.08 $ % 5.3% Index-Inverse 2:1 na na SOLD 3/4/10 10/08/2009 TCK Teck Resources $30.90 $ % -0.2% Metal Ores na na SOLD 2/4/10 10/29/2009 EVV Eaton Vance Ltd. Duration Inc $13.80 $ % -0.3% Income na na SOLD 2/4/10 04/04/2008 CNX Consolidated Energy $74.78 $ % -20.9% Energy-Other na na SOLD 1/28/10 05/23/2008 ABB A B B Ltd. $31.38 $ % -21.2% Electrical-Equipment na na SOLD 1/28/10 12/19/2008 MOO Market Vector Agribusiness $26.46 $ % 22.1% Agriculture na na SOLD 1/28/10 7/9/04 XTO X T O Energy $17.07 $ % 100.3% Oil & Gas-US Exploration na na SOLD 1/23/10 11/21/2008 XOM Exxon Mobile $75.81 $ % 39.5% Oil & Gas-Intl. Integrated na na SOLD 1/23/10 11/13/2009 UGP Ultrapar Particpaco $48.55 $ % 2.1% Oil & Gas-Refining/Mktg na na SOLD 1/23/10 07/28/2006 TSM Taiwan Semiconductor $7.49 $ % -12.7% Elec-Semiconductor Mfg. na na SOLD 1/23/10 Page 9

10 02/20/2009 PBR Petrobras $26.56 $ % 35.0% Oil & Gas-Intl. Integrated na na SOLD 1/23/10 08/08/2008 OPLK Oplink $13.78 $ % -13.9% Telecom-Fiber Optics na na SOLD 1/23/10 12/05/2008 NUE Nucor $44.04 $ % 27.8% Steel-Producers na na SOLD 1/23/10 03/27/2009 NEU Newmarket $43.85 $ % 36.8% Chemicals-Specialty na na SOLD 1/23/10 5/28/04 MRVL Marvell Technology $11.89 $ % -0.4% Elec-Semiconductor Mfg. na na SOLD 1/23/10 03/14/2008 KOF Coca Cola Femsa $54.65 $ % -13.3% Beverages-Soft Drinks na na SOLD 1/23/10 03/09/2007 JOYG Joy Global $41.70 $ % -8.6% Machinery-const/mining na na SOLD 1/23/10 12/12/2008 JEC Jacobs Engineering $42.43 $ % 26.9% Bldg-heavy Consruction na na SOLD 1/23/10 02/04/2005 IIIN Insteel Industries $7.93 $ % -7.2% Metal-Processing/Fab. na na SOLD 1/23/10 02/06/2009 FCX Freeport McMoran $29.81 $ % 28.5% Metal-Ores na na SOLD 1/23/10 06/19/2008 EGO Eldorado Gold $8.08 $ % -16.9% Metal Ores-Gold/Silver na na SOLD 1/23/10 05/29/2009 DVN Devon Energy $63.24 $ % 21.5% Oil & Gas U S Exploration na na SOLD 1/23/10 04/03/2009 DRIV Digital River $32.29 $ % 32.5% Internet-network-Sltns na na SOLD 1/23/10 06/12/2009 DBC Powershares Commodities $23.85 $ % 18.0% Basic Materials na na SOLD 1/23/10 10/22/2009 DBA Powershares Db Agriculture $26.89 $ % 2.2% Commodities na na SOLD 1/23/10 11/10/2006 CVX Chevron $62.73 $ % -19.1% Oil & Gas Intl. Integrated na na SOLD 1/23/10 04/17/2009 CHTT Chattem $57.36 $ % 22.1% Cosmetics-Personal Care na na SOLD 1/23/10 03/28/2008 BTM Brasil Telecom $20.00 $ % -17.8% Telecom-Svcs Foreign na na SOLD 1/23/10 9/24/04 APC Anadarko Petroleum $31.31 $ % 0.6% Oil & Gas-US Exploration na na SOLD 1/23/10 03/13/2009 AKAM Akamai $18.42 $ % 47.6% Internet-network-Sltns na na SOLD 1/23/10 **Current Prices as of 10:30 am on Friday 1/7/ % 13.8% AVERAGE 21.2% Better than S&P 500 *GUNDERSON GRADING SYSTEM-This is a proprietary stock and stock grading & valuation system that I have developed that will soon be available as smartphone app. The overall rating is based on the SHORT TERM and LONG TERM PERFORMANCE, the SAFETY RECORD, and the UPSIDE POTENTIAL of the stock in question. A score of C-,C,C+ is NEUTRAL. A score of B+, B, & B- is OK, but a score of A+,A, or A- is SUPERIOR! Obviously D's and F' are not good. There is a pile of MEDIOCRITY on Wall St. Why not focus on A stocks and put together a STRAIGHT A REPORT CARD!!! GUNDERSON GROWTH & INCOME MODEL "A" PORTFOLIO Year-to-Date: -1.11% (Includes 2% annual mgt fee and $7 trades) Comparitive S & P % 2010=12.55% Past Performance may not be indicative of future results. Performance calculations (including complete transaction history) available upon request. Performance of Managed Accounts may do better or worse than this Model. Port. performance includes dividends. Add Date Sym. Name and Add Price Current Pct. G/L Alloc. Add Date Sym. Name and Add Price Current Pct. G/L Alloc. 11/6/2008 KMP Kinder Morgan ($45.83) $ % 5.0% 11/6/2008 $CASH$ CASH ($1.00) $ % 6.0% 11/20/2009 NLY Annaly Mort. ($15.51) $ % 7.5% 11/20/2009 EPD Enterprise Prod. ($27.55) $ % 5.0% 11/20/2009 JRS Nuveen Real Est. Inc.($6.51) $ % 5.0% 5/21/2010 ROST Ross Stores ($52.45) $ % 3.8% 10/22/2010 AZO Autozone ($234.43) $ % 5.0% 11/6/2008 O Realty Income ($17.62) $ % 5.0% 10/8/2010 FGP Ferellgas Partners ($25.80) $ % 5.0% 10/29/2010 UNP Union Pacific ($87.77) $ % 5.0% 12/3/2010 CEF Central Fund Canada ($19.97) $ % 5.0% 11/19/2010 BPT BP Prudhoe ($106.99) $ % 5.0% 1/7/2011 CRT Cross Timbers ($40.89) $ % 5.0% 11/19/2010 ARLP Alliance Res Ptrs ($60.61) $ % 5.0% 1/7/2011 PCLN Priceline.com ($437.06) $ % 5.0% 12/3/2010 MSB Mesabi Trust ($49.90) $ % 5.0% 1/7/2011 NHI National Health Inv. ($45.56) $ % 5.0% 1/7/2011 OHI Omega Hlthcr ($22.27) $ % 5.0% 1/7/2011 TGH Textainer ($30.64) $ % 5.0% *all Curr. Prices as of 9:30am on 1/21/2011 Allocations are approximate NEW THIS WEEK: NONE *Portfolio as of 10:00am on 1/141/2011 SOLD THIS WEEK: NONE GUNDERSON AGGRESSIVE GROWTH MODEL "A" PORTFOLIO Year to date -3.97% (Includes 2% annual mgt fee and $7 trades) S&P 500 ytd 1.96% 2010=17.5% 2009=26.8% Past Performance may not be indicative of future results. Page 10

11 Portfolio performance includes dividends. Alloc. Alloc. Add Date Sym. Energy **(add price) Current Pct. G/L 12.0% Add Date Sym. Medical**(add price) Current Pct. G/L 4.0% 2/12/2010 WHX Whiting USA Trust ($16.46) $ % 4.0% 4/1/2010 ALXN Alexion Pharm. ($54.56) $ % 4.0% 3/26/2010 BEXP Brigham Exploration ($15.13) $ % 4.0% 7/1/2011 MWIV MWI Veterinary ($64.92) $ % 4.0% 8/13/2010 BPT BP Prudhoe Bay ($93.76) $ % 4.0% 1/7/2011 CLR Continental Res. ($57.19) $ % 4.0% Add Date Sym. Technology Current Pct. G/L 12.0% 5/7/2010 SWKS Skyworks ($15.01) $ % 4.0% Add Date Sym. Income**(add price) Current Pct. G/L 7.0% 3/5/2010 AAPL Apple Comp. ($219.13) $ % 4.0% 11/20/2008 $CASH$ Money Market ($1.00) $ % 0.5% 12/3/2010 FFIV F 5 Networks ($139.13) $ % 4.0% 9/4/2009 AGNC Amer. Capital Agency ($21.90) $ % 2.5% 7/1/2011 NVEC NVE Corp. ($58.33) $ % 4.0% 8/13/2010 ARLP Alliance Res Ptnrs Lp ($50.24) $ % 4.0% Add Date Sym. RETAIL Current Pct. G/L 18.0% Add Date Sym. Financial Current Pct. G/L 5.0% 4/23/2010 EZPW Ezcorp Inc. ($23.20) $ % 5.0% 5/21/2010 DLTR Dollar Tree ($40.69) $ % 4.0% 7/23/2010 MNRO Monroe Muffler ($25.72) $ % 4.0% Add Date Sym. COMMODITY Current Pct. G/L 10.0% 10/8/2010 ROST Ross Stores ($56.14) $ % 5.0% 10/15/2010 CEF Central Fund Canada($17.86) $ % 5.0% 10/8/2010 AZO Autozone ($233.00) $ % 5.0% 1/14/2011 POT Potash ($171.97) $ % 5.0% Performance of Managed Accounts may do better or worse than this Model. Add Date Sym. LEISURE Current Pct. G/L 4.0% Add Date Sym. International Current Pct. G/L 10.0% 10/29/2010 PCLN Priceline.com ($376.23) $ % 4.0% 10/15/2010 EWZ MSCI Brazil Index ($80.11) $ % 5.0% 12/10/2010 CSTR Coinstar ($66.21) $ % 4.0% *Delete from the Model Port: NONE *Add to the Model Port. this week: NONE ***Model Portfolio as of 9:00am on 1/21/2011 *all Curr. Prices as of 9:30am on 1/21/2011 Source-MSN.com Begin 2011 with $118,419 allocated as indicated above. For current Model Portfolio Target Prices, see FEATURED STOCK OF THE WEEK section of newsletter. **all buy prices at close of day on buy date. Adjusted for dividends and splits Aggressive Growth Model Portfolio Sells Add Date Sym. Income**(add price) Sell Price Pct. G/L Sell Date 12/31/2008 JRS Nuveen REIT Fund ($7.88) $ % 1/7/ /20/2009 KMP Kinder Morgan ($54.22) $ % 1/7/2011 8/13/2010 ARCC Ares Capital Group ($14.30) $ % 1/7/2011 7/23/2010 NEM Newmont Mining ($59.05) $ % 1/7/ /20/2009 NSRGY Nestles ($47.16) $ % 1/7/2011 4/23/2010 UWM 2X Russ ($39.46) $ % 1/7/2011 4/10/2009 YUM Yum! Brands ($30.28) $ % 1/14/ Conservative Growth & Income Portfolio Sells Add Date Sym. Income**(add price) Sell Price Pct. G/L Sell Date 2/19/2009 PRGMX T Rowe Price GNMA ($8.87) $ % 1/7/ /6/2008 BRK.B Berk. Hathaway ($74.00) $ % 1/7/2011 Do you have a retirement and estate plan? If not contact Gunderson Capital Mgt. TODAY to get one started!!!!! Miles Romney is a certified financial planner, CPA, and professor at USD. He will be happy to meet with you at no cost and help you chart a path. It is never too early, it is never too late. Subscriptions to this weekly newsletter are $195 per year or $60 per quarter. To subscribe call us at (760) or visit our website at You can also mail a check to Gunderson Capital Mgt. 550 Seagaze Dr. #16 Oceanside, CA Page 11

12 THIS REPORT PROVIDES GENERAL INFORMATION AND IS NOT AN OFFER TO BUY OR SELL ANY SECURITY. IT IS THE SOLE OPINION OF THE WRITER, BILL GUNDERSON. BILL GUNDERSON IS PRESIDENT OF GUNDERSON CAPITAL MANAGEMENT INC. A REGISTERED INVESTMENT ADVISORY FIRM LOCATED AT 550 SEAGAZE DR. #16 OCEANSIDE, CALIFORNIA PHONE NO. (760) BILL GUNDERSON EDITS THE WEEKLY NEWSLETTER. INFORMATION IN THIS NEWSLETTER COMES FROM INDEPENDENT SOURCES BELIEVED TO BE RELIABLE, BUT ACCURACY IS NOT GUARANTEED. BILL GUNDERSON OR GUNDERSON CAPITAL MGT. INC. HAS NOT VERIFIED THE ACCURACY OF THE INFORMATION PUBLISHED BY THE INDEPENDENT SOURCES. SELECTIONS IN THIS NEWSLETTER ARE THE SOLE OPINIONS OF BILL GUNDERSON AND ARE SUBJECT TO RISKS AND UNCERTAINTIES BEYOND THE CONTROL OF BILL GUNDERSON AND GUNDERSON CAPITAL MGT. INC. SUCH RISKS AND UN- CERTAINTIES INCLUDE NATIONAL, INTERNATIONAL, ECONOMIC CONDITIONS AND FLUCTUATIONS; ECONOMIC CONDITIONS OF SPECIFIC SECTORS AND GROUPS AND COMPANIES; MANAGEMENT CAPABILITIES OF COMPANIES SELECTED. SELECTIONS IN THIS NEWSLETTER MAY NOT YIELD PROFITABLE RESULTS AND MAY ACTUALLY RESULT IN A LOSS OF INVESTMENT CAPITAL. AS AN INVEST- MENT ADVISORS, BILL GUNDERSON, OR CLIENTS OF GUNDERSON CAPITAL MGT. INC. MAY PURCHASE AND SELL SECURITIES IDENTIFIED EITHER IN THEIR OWN ACCOUNTS OR ACCOUNTS THAT THEY MANAGE. THEY MAY ALSO BUY OR SELL SECURITIES MENTIONED WITHOUT NOTICE TO NEWSLETTER SUBSCRIBERS. IF YOU HAVE ANY QUESTONS, YOU CAN CONTACT BILL GUNDERSON AT (760) Page 12