TECHNOLOGY DIGEST
Vol. 2, No. 41
June 26, 2002

STOCKS IN THIS ISSUE

INVESTMENT SPOTLIGHT

@ROAD: AT A WAY TO GO

"Although consumer technology such as digital photography attracts a great deal of attention, more mundane commercial products can be equally profitable," notes Jim Powell (Tech Stock Alert, (800) 818-3232, Email: TSAmail@jeffinc.com, 12 issues, $298, 6/02). "That's certainly true of the new tracking systems permitting companies to monitor the movements of their vehicles. Knowing where every vehicle is at all times makes it far easier to use them efficiently. It's no wonder that every type of transportation firm, from long-haul carriers to interstate bus lines, is buying them. Most existing vehicle monitoring systems use Qualcomm's "OmniTrack" technology, which relies upon satellites for the necessary connections. The systems work very well for nationwide applications, but are not as useful within municipalities. 

ñFor the latter market, a cellular and Internet-based technology offers greater benefits and lower costs. In our opinion, the company that is in the best position to capture a lion's share of that market is At Road (ARDI 6.71 NASDAQ NM). @Road, as the company is best known, has very cleverly combined Global Positioning Systems (GPS), electronic maps, cellular telephones and wireless Internet connections to create a very useful and popular service for municipal transportation and delivery companies. With @Road's technology, both the company's driver and his home office can identify a vehicle's location with great precision. In most cases, the exact address of the unit can be identified. Because @Road already utilizes cellular links and wireless Internet connections, its systems can also carry two-way messaging between offices and drivers. The service also allows drivers to conduct business operations such as signature verification, credit card processing and even confirmation. @Road's system has such a positive effect on efficiency, customers find it quickly pays for itself. @Road uses digital packet technology to transmit data back and forth between drivers and their offices. That keeps costs very low because airtime is limited to the few seconds each hour that information is exchanged. 

The company has agreements with AT&T Wireless, Cingular, Nextel, Verizon and others to carry its services in more than two hundred cities in North America. Coverage is continuing to expand, and will soon be available in most metropolitan areas. The company is also discovering there are markets for its products that it did not anticipate. Because the @Road system will store packets of information for up to two days if a vehicle ventures out of cellular range, the system can be used in many rural areas that don't have good coverage. Whenever the delivery vehicle reenters a cellular zone, data is exchanged and the network is updated. 

ñThe company's system can also be expanded to include additional capabilities. Internet data terminals, fax machines, wireless credit card readers and ruggedized personal data assistants (PDAs) are available, and are becoming widely used. A new service that converts voice messages to text and vice versa is also attracting customers. In early May, @Road took another step forward when it introduced RoadFORCE Service Suite, a set of software applications for sales personnel and mobile workers that collects productivity data, business activity, locations visited and miles traveled. Reports are sent periodically to managers, who use them to make their operations more profitable. 

ñAt Road is now moving to apply its technology to America's Homeland Security program. The company's new homeland protection initiative will add security-related monitoring of vehicles, tight location tracking, and certain prevention, response, and investigation capabilities to its tracking systems. The goal is to enhance the security activities of business and public entities that have mobile resources. The thieves who recently hijacked a truck carrying 96 barrels of cyanide would not have traveled very far using this new technology. @Road has bucked the weak economy, and had a strong first quarter. Revenues rose 90% to $9.7 million. Net loss fell 57% to $5.2 million. The most important number is revenue growth, because it reveals the rapid increase in this company's subscribers. 

HOT OFF THE PRESS ­ TECHNOLOGY NEWS

THE LATEST FROM THE QUEST FOR THE FOUNTAIN OF YOUTH

"Time flies," says Adriane G. Berg (Adriane G. Berg's Wealthbuilder, 1549 Springfield Ave., Maplewood, NJ 07040, (800) 609-2374, 12 issues, $64.95, 6/02). "And as it does, the march of bio medical and bio technical science continues, with fascinating and promising results continuously produced." During the last year, biologists, chemists and doctors have made some significant breakthroughs utilizing the new genetic information and taking advantage of faster, more powerful and hugely sophisticated computer technology. These advances and discoveries have been in cancer and aging research and in immunology and biophysics, as well. 

ñEvery once and awhile, the advance of medicine and technology requires a statistical validation. The quest for immortality is no different. Mankind is, indeed, extending the life expectancy of human beings by large and measurable amounts. Last month, researchers at Duke University published a study suggesting that, contrary to popular scientific belief, there may be no limit to the natural life span of human beings. The study reviewed longevity data from developed and industrial countries including the U.S., Japan, Iceland, Australia, Norway, Sweden and Switzerland. They concluded that in these countries, the average life expectancy is increasing at a phenomenal rate of 3 months per year. In Japan, women have an average life expectancy of 85 ­ a four-decade increase since the last measure. The report concludes: "It may be the most remarkable regularity of mass endeavor ever observed ­ record life expectancy will reach 100 in about six decades. Centenarians may become commonplace within the lifetimes of people alive today." 

Scientists are zeroing in on the answer to the question: why do older people succumb more easily to infectious diseases than do younger people with the same problem? The answer is not, as instinct might dictate, in the frailty of old age. It is, rather, in the production of B Cell antibodies. Researchers at the National Jewish Medical Research Center (in cooperation with the University of Colorado) found was that there are two types of B Cells, cells that produce disease fighting antibodies ("Naive" B cells and "experienced" B cells). Experienced cells are those that have some prior exposure to the disease or infection that they are called upon to fight. The Naïve cells are new cells, without such exposure. The study determined that naïve cells are far and away the superior disease and infection fighters and that new, Naïve B cell production slows down with age. B cells that have no exposure to disease and infection die much faster. Those with exposure live on. So, not only does the older person have fewer Naïve B cells, but also has far greater experienced B cells as well. Scientists are well on their way to find a way to allow the naïve B cells to survive longer and/or strengthen the experienced ones. 

Cancer researchers at the University of Warwick have made some exciting advances in the war on cancer. Key to many research paths is the issue of why some cells cease reproducing and others stop. The answer may be in a body protein called "c-Myc" that appears to have an "on-off" switch. When switched on, the body grows more of the cells it needs; when off, cell growth stops. In some cancers, there appears to be a fault in the on-off mechanism, and the c-Myc switches on for unwanted cancer cells instead of remaining naturally off. The experiment at Warwick produced astounding results. When an uncontrolled (always on) mutated c-Myc cell was introduced to healthy pancreatic cells, a cancer was established within days. This was duplicated over and over again. Similar results were reached at John Hopkins where it was found that the on-off mechanism in c-Myc was also effective in controlling genetic production of another protein (PRDX3), present in breast cancer. When the c-Myc turns off production of PRDX3, tumors stopped growing. When they turned it on, growth started. All of this has led researchers to believe that "cancer is't as complicated as people first thought." The pharmaceutical inquiry into controlling the on-off switch is well under way, and with it, another big step toward a cancer cure. Research into the causes and possible cure for Alzheimer's Disease have been focusing on two factors, which up until very recently was seen as quite separate. Both beta-amyloid plaques and tau tangles have been suspected as the cause of this longevity related horror. Finally, a link between the two has been found. The protein beta amyloid has long been identified as the cause of the degeneration of brain cells that characterizes Alzheimer's, while tau tangles, are a physical manifestation in the brain's neuron structure that appears in Alzheimer's patients. This year, a team at Northwestern University discovered that there was a relationship. The experiments showed that neurons with normal amounts of tau, degenerated into tau tangles in the presence of beta amyloid, while neurons that were treated to be devoid of tau did not degenerate. These results have created a new opening for research into deciphering the toxic pathways that beta amyloid opens and the role of tau in blocking them. Solving the Alzheimer's riddle is key in correlating the advances in longevity with the issues of the quality of life.

These are our top picks of public companies that are on the cutting edge of new biotech and medical technologies. Volatility is the watchword ­ investment is speculative and risky. Techne Corp. (TECH 30.15 NASDAQ NM) is on the leading edge of protein research. Among other things, Techne researches and develops products in the cytokines, the purified proteins that effect cell behavior. Sales and income have been growing and prospects for continued growth are good. At around $31, there is room for a 20% rise in the next 18 months. CryoLife (CRY 23.68 NYSE) uses extreme low temperatures to store human tissue for transplant, specializing in heart valves and other vascular related organs and tissues. And, it's SynerGraft technology reduces the risk of organ rejection. Sales and income have been on the rise and the price drop from last year has almost been erased. It is a good buy. Neogen (NEOG 14.03 NASDAQ NM) is in the antibacteria business, producing food safety products like bacteria diagnostic kits to detect food borne bacteria such as E.coli, listeria and salmonella. It also makes detection equipment for allergens, drugs and pesticides. Income and sales have been on the rise, as has the stock price over the last quarter. Buy at $15 for a target of $25. Diagnostic Products (DP 44.71 NYSE) is one of the world's leading producers of immuno-diagnostic kits for the detection of allergens, drugs and hormones. Its over 400 different test kits are sold in over 100 countries, with more than half of the sales outside the U.S. This is a strong company and a good buy. Hybridon (HYBN.OB 1.26 OTC), our most risky pick, is on the cutting edge of DNA related research. It focuses on anti-sense technology, which is zeroing in on creating synthetic DNA to halt the production of disease causing proteins in the body. It is targeting drugs to be cancer fighters. It is not very cash rich and depends upon some large pharmaceuticals for further research. The success of its research has been promising and partnerships seems likely. Newly public, it has untested fundamentals. The fact that the price has been very steady since inception is also a good sign. It's a risk to consider.

IN SHORT...

Edwards Lifesciences (EW 24.60 NYSE) designs, develops, manufactures and markets a wide range of products and services to treat late-stage cardiovascular diseases, including heart valve disease, coronary artery disease, peripheral vascular disease and congestive heart failure. You can see how this company is well-positioned to provide the medical products that will be increasingly required by aging baby boomers. Edwards' revenues for 2001 came from cardiac surgery (48%), critical care (30%), perfusion products (15%) and vascular products and services (7%). The price-to-earnings ratio is estimated at 18.04 for this year and 15.88 for 2003. Our target price is $32. Our advice: Buy. Stephen Gadsden, BA, MA, CFP, The MoneyLetter, (800) 804-8846, www.adviceforinvestors.com, 24 issues, $97, 6/1/02

Mediware Information Systems' (MEDW 8.42 NASDAQ SM) stock has also been weak lately, though it has thus far managed to hold above a key support level. We are pleased to announce that another hospital (St. Clair Hospital in Pennsylvania) has signed an agreement to license its WORx Drug Therapy Management System. We believe the company is extremely well-positioned to continue growing its sales in the current environment for health care providers, and it would not surprise us at all to see the stock start to hit new highs again once the market regains its footing. Mediware is a strong buy under $7 and a buy under $10.î Nate Pile, Nate's Notes, www.natesnotes.com, (707) 433-7903, 12 issues, $150, 6/14/02

ITT Industries, Inc. (ITT 68.93 NYSE) announced a $16 million acquisition of the assets of the Pure Water Division of Waterlink. While small, this is exactly the type of acquisition we believe ITT should make to bolster its already strong water and wastewater platform. Unrelated to this acquisition, we lowered our 2003 earnings per share estimate to $4.05 from $4.40 to account for below the operating line adjustments, yet our operating profit was lowered by less than 2%, on slightly more conservative margin assumptions for defense and motion. We reiterate our strong buy rating with a 12-month target price of $83 (lowered from $84). John Baliotti, U.S. Portfolio Managerås Spotlight, UBS Warburg LLC, 6/7/02

ESS Technology(ESST 15.36 NASDAQ NM)announced a deal with Fuji Film, where DVD players powered with ESS chips can have the images stored on the Fujicolor CDs to be viewed on TV. In the comfort of your living room you can view, rotate, mirror, flip and share pictures. Buy. Stewart B. McGehee, The McGehee Report, www.McGeheeCapital.com, (501) 661-1702, 12 issues, $199, 6/02

TECHNOLOGY IDEAS

SYMANTEC: PROTECTING YOUR COMPUTER

Symantec (SYMC 32.07 NASDAQ NM) makes software that protects computers from viruses and online intruders. It also provides security software and services to corporations and governments. In the last five years, revenues grew at an annual compound rate of 16.7%, from $578.4 million in 1998 (FY 3/31) to $1.1 billion in 2002. Profits before unusual items more than doubled from $85.1 million, or $0.72 a share in 1998 to $200.7 million, or $1.30 a share in 2002. Much of this growth came from acquisitions. Last year, the company sold $600 million worth of new notes convertible into common stock in 2006. While corporate spending on new computers is down, spending on security software is still rising strongly. Symantec spends heavily on research to keep up with the constant threat of new computer viruses. In FY02, its research spending grew 11.7%, to $164.0 million (15.3% of revenues) from $146.8 million (15.6% of revenues). Symantec recently patented a new way for detecting computer viruses, which examines computer files for virus-like behavior before a virus fingerprint is available. Symantec could be headed for huge growth as organized crime and terrorists become more involved and try to generate criminal profit and commercial chaos. Symantec is still our #1 buy.

Patrick McKeough, Wall Street Stock Forecaster, E-mail: mckeough@idirect.com, (888) 292-0296, 12 issues, $99, 6/02

MICROCHIP TECHNOLOGY: IT'S EMBEDDED

Microchip Technology (MCHP 29.42 NASDAQ NM) develops and manufactures specialized semiconductor products that are used for a wide variety of embedded control applications. Its products are marketed to the automotive, communications, computing, consumer and industrial control markets. The products are highly cost-effective and offer the advantages of small size, low voltage operation and ease of development, enabling timely and cost-effective product integration. The company's chips include eight-bit microcontrollers, electrically erasable programmable read-only memories (EEPROMs) and the KEELOQ brand of secure data transmission devices for keyless locks, garage door openers and smart cards. It has signed an agreement to acquire PowerSmart, a privately-held fabless semiconductor; this is expected to contribute $7-$8 million to revenue in FY03. 4Q (3/31/02) net income fell 34% to $94.8 million, reflecting the absence of a $1.4 million gain on the sale of investment. In April, the company increased its guidance for sequential revenue growth from 5%-6% for the 1Q (6/30/02). It also anticipates earnings per share growth of 11% for each of the 1&2Q. There was a 3-for-2 stock split in May. The company continues to invest in new and enhanced products, including development system software, and its design and manufacturing process technology that will maintain its competitive position. In addition, it has aligned its market segments for future growth opportunities, which has positioned it to be the leading worldwide supplier of field programmable microcontrollers.

Jim Collins, CFA, OTC Insight, (800) 955-9566, www.otcinsight.com, 12 issues, $295, 6/02

INTUIT: QUICKEN TO THE RESCUE

ñIntuit (INTU 47.05 NASDAQ NM) is the leading provider of small business tax preparation and personal financial software products and web-based services that simplify complex financial tasks. Products and services include Quicken, Quick Books, Quicken Turbo Tax, Pro Series, Lacerte and Quicken Loans. The company signed a definitive agreement to acquire CBS Employer Services, the parent company of CBS Payroll. Intuit will acquire the outstanding shares for approximately $78 million (approximately $74.5 million in cash; the remainder in Intuit stock). Intuit expects CBS Payroll to contribute in excess of $30 million in revenue in FY03, and expects no material impact on pro forma earnings per share in FY03. Intuit also signed a definitive agreement with The Flagship Group, the holding company of American Fundware. Intuit will acquire all of the outstanding shares of The Flagship Group for approximately $22 million in Intuit stock and $4 million in cash. Intuit expects American Fundware to contribute between $15-$20 million in revenue in FY03. Intuit agreed to acquire Management Reports for about $92 million in cash. Intuit anticipates the proposed acquisition will contribute revenue of between $45-$50 million in FY03. Intuit reiterated it expects revenue to grow between 17%-22% in FY03, with 25%-30% growth in pro forma earnings per share. Analysts expect earnings of $1.11 a share for FY02 and $1.40 a share for FY03, according to Thomson Financial/First Call. Intuit has an $1.57 billion in cash and short-term investments. Long-term debt is a mere $12 million.

Frank Curzio, FXCNewsletter.com, (631) 218-3481, www.fxcnewsletter.com, 24 issues, $190 (Hard copy), $89.95 (Email), 6/15/02

IDENTIX: HAS ITS ñEYEî ON YOU

Identix (IDNX 6.23 NASDAQ NM) recently announced a merger agreement with Visionics Corporation. The transaction will require shareholder approval and is expected to close before the end of the month as the SEC has approved the proxy. Visionics is a leader in identification technologies and systems. The company is uniquely positioned with a comprehensive set of biometric identification product offerings: FaceIt, live scan, IBIS and BNP. Identix also announced the launch of its latest version of itrust, adding powerful authorization capabilities to the strong authentication in earlier versions. Identix anticipates that itrust 3 will be available for delivery by the end of 3/02. Based on the three most important aspects of security ­ authentication, authorization and accounting ­ itrust offers a comprehensive solutions platform for today's wired and wireless business. Itrust is an identity and access management platform that provides complete, integrated security of web-based resources. Identix has a leadership position in an evolving technology that could eventually become ubiquitous. Besides airline security, its products can be used for computer password solutions, credit cards, cellular phones and many more applications. We view Identix as a five-year holding with tremendous potential.

Eric Dany, Stock Prospector, www.ericdany.com, (309) 736-9376, 12 email issues, $129, 6/14/02

CELL GENESYS: IN MORE PHASE II TRIALS

Cell Genesys (CEGE 13.44 NASDAQ NM) has begun another Phase II trial for its GVAX pancreatic cancer vaccine. This study will enroll about 40 patients with inoperable or metastatic pancreatic cancer at various sites within the U.S., and is utilizing the non-patient-specific, "off-the-shelf" formulation of the vaccine. The Phase I results for the GVAX pancreatic cancer vaccine were quite impressive, with three of the eight patients that received the higher dose disease free and alive at 38, 35 and 33 months following diagnosis, and still disease free and alive at their most recent follow-up. Cell Genesys and partner EntreMed reported positive data at the American Society of Gene Therapy Meeting in Boston which showed that the systemic delivery of the Angiostatin gene (a gene which has been associated with the inhibition of angiogenesis) significantly decreased tumor burden and also increased survival in multiple cancer types in preclinical studies. Buy under $20.

John T. McCamant, Medical Technology Stock Letter, www.bioinvest.com, (510) 843-1857, 24 issues, $320, 6/6/02

GENELINK: ñBANKINGî ON DNA

GeneLink's (GNLK .86 OTC BB) banking service stores DNA before and after an individual dies that can be used to establish whether or not the disease or disorder that caused death was generic in origin. GeneLink has the only patented, FDA reviewed, non-invasive, self-administered DNA collection system available today. The consumer swabs the inner cheek of their mouth and mails it back to GeneLink's labs. GeneLink created a breakthrough methodology for SNPs based (Single Nucleotide Polymorphisms) genetic profiling, offering four proprietary new SNPs based assessments: Oxidative Stress (disease and aging), Skin aging Susceptibility, Obesity Susceptibility and Osteoporosis Susceptibility. We expect to see a revenue stream with profitability in the not too distant future. GeneLink announced a collaborative agreement with Arch Chemicals, to create an innovative category of products for the personal care and cosmetics industry to correlate with its test. GeneLink also signed a letter of intent with Unicity Network of Orem to enter into a licensing agreement for GeneLink's genetic profiling technology for skin care. Garden State Nutritionals (Vitaquest Int'l. div.), in partnership with GeneLink, created the "first-of-its-kind" customized dietary supplements that address specific genetic defects. First objective: $1.75. Ultimate target: $4.50-$5.

Konrad Kuhn, The Kon-Lin Letter, 5 Water Road, Rocky Point, NY 11778, (631) 744-8536, 12 issues, $95, 6/02

VITAL IMAGES: ñVIRTUALî DIAGNOSIS

Vital Images (VTAL 7.15 NASDAQ SC) develops 3D medical imaging software that is used for disease screening, clinical diagnosis and therapy planning. Vital has speeded up the 3-D imaging process so that it is easy and useful for the practicing doctor ­ the software runs on Microsoft Windows NT and XP. To date, only a minority of hospitals, clinics and imaging centers have purchased 3-D medical imaging products for use in diagnostic imaging. The sector has U.S. sales of $328 million in 2001, and expects to grow to $1 billion by 2006, a 21% growth rate. Vital expects the total worldwide market to be $2 billion by 2007. A recent marketing agreement with Toshiba Medical Systems is already increasing sales and gives Vital distribution in over 50 countries. Vital's other marketing partners are E-Z-EM, a marketer of gastrointestinal x-ray equipment, and Medtronic, which will integrate Vitrea 2 into image-guided surgery products such as StealthStation, Treon and LandmarX. 1Q revenue was up 33% to $4.44 million vs. $3.33 million; earnings per share loss was $0.03 vs. $0.09. The Toshiba agreement contributed $2 million in 1Q sales. 4Q revenue was up 51%, $4.55 million vs. $3.01 million and earnings per share of $0.02 were the first quarterly profit since Vital was spun off of BioVascular in 1997. Vital expects continued revenue growth of 40%-50% in 2002 in license fees, maintenance and service and a modest profit. Vital got nationwide publicity in March on NBC's "Today" show when host Katie Couric underwent a virtual (non-invasive) colonoscopy exam. Revenue growth should drive the shares to the $11-$12 range over the next 12 months.

Karl Drobnic, Venture Returns, 1855 NW Tyler Ave., Corvallis, OR 97330, 24 issues, $75, 6/11/02

SONIC SOLUTIONS: READY TO BREAK OUT?

Sonic Solutions(SNIC 8.77 NASDAQ NM) has broken out once this year and, after a long basing period, should be ready for another breakout to the upside shortly. Sonic Solutions develops and markets software for workstations used to process and edit digital audio and video information. Its last breakout was in its licensing of its technology to Microsoft, which took it from a losing and shrinking revenue position to very rapid growth, with an earnings increase of 144% and a 70% increase in revenues just in the last quarter. We're looking for a 25%-33% growth in this issue within the next 60 days ­ around the time of the company's next earnings report, which is due July 31st. 

Richard Schmidt, Speculatorås Corner, a supplement of Stellar Stock Report (800) 728-2288, 6/02

MARKET TALK

"Increasing Ungainly" is how one source recently labeled the action of the Dow Jones Industrial Average. Uncertainties ranging from corporate profits to tensions stemming from various hotspots around the world have contributed to investors' jitters. As stated previously, there is no shortage of building blocks to construct the proverbial "walls of worry." The question is when is the market going to start to climb? One technical development that often needs to take place is a high-volume reversal, where equities are down sharply on heavy volume in a classic capitulation, followed by a sharp rebound where stocks finish relatively unchanged or even higher. This final "throwing in the towel" is not pretty, but is often required to knock the last share of stock out of weak hands. The most frantic selling has been in technology-laden NASDAQ Composite. However, first note the already very extensive decline. The NASDAQ is reaching oversold conditions. Then note that the NASDAQ has now declined to its September lows. The NASDAQ is in the process of setting up a classic "test of the lows." Richard L. Evans, The Renaissance Report, 1540 Cambridge Av., Flossmoor, IL 60422, (708) 957-4246, 24 issues, $225, 6/02

Our bearishness has been focused even more on the NASDAQ than it has on the Dow. The RSI has made a clear series of lower lows and lower highs and has drifted into bearish ground. The only thing positive to be said is that the bearish cycle has been apparent for quite a long time ­ under these circumstances we might not be surprised to see at least a short, sharp rally to relieve some of the pressure. The Stochastic also looks terrible, although it has just begun to cycle upwards and should offer some kind of rally over the next week or two. More than anything, the technical indicators should gain some strength from the fact that the NASDAQ has declined to the 09/11 lows and will almost certainly benefit from some buying associated thereto. The danger that no one wants to admit to thinking is, "What happens if 1,500 doesn't hold? Frankly, the risk/reward here does not look good." Chris Bunka, Outsider's Overture, www.newsgurus.com, (800) 528-0559, 12 issues, $119 (Hard copy), $239 (E-Mail Tracker), 6/02

The NASDAQ is trading at centerline support in a declining (bearish profile) 14-month channel. Could trade up into resistance at 1,700 maybe 1,850. Daily oversold. NASDAQ 100 is trading at centerline support in a declining (bearish profile) 14-month trend channel. Might be able to rally up to about 1,250, maybe 1,350. Daily oversold. The S&P Small Cap is trading at the bottom of a 9-month rising (bullish profile) channel. Should rally back toward centerline resistance at 245-250. Daily oversold. And the S&P Mid Cap is trading at the bottom of a 9-month rising (bullish profile) trend channel. Should be able to rally toward centerline resistance at 530-535. Daily oversold. Joseph Barthel, Director of Investment Strategy, Fahnestock, 6/17/02

TECHNOLOGY FUNDS

Baron Opportunity (BIOPX), launched in February 2000, positions itself as a conservative, value-oriented Internet and information technology play. The fund invests in new media, interactive communication, electronic content delivery, networking and e-commerce. It selects stocks without regard to cap size. You can get an idea of its philosophy by the fund's top ten holdings: Hotel Reservations Network, Ticketmaster, Expedia, Overture Service, Accenture, University of Phoenix Online, TMP Worldwide, Getty Images, Flextronics International and AOL Time Warner. These ten stocks account for 40.6% of the fund's assets. Recent performance has been negative, but it's lost less than the Morgan Stanley Internet Index or NASDAQ Composite. We believe the fund will do well in a new bull market. The portfolio manager is Mitch Rubin. Expense ratio is 1.5%.Sheldon Jacobs, The No-Load Fund Investor, www.sheldonjacobs.com, (914) 693-7420, 12 issues, $139, 6/02

ñNeedham Growth(NEEGX) operates much like a hedge fund, meaning that it can short stocks as well as hold long positions. That strategy permitted Needham to participate in the tech boom (up 80% in '99), without participating in the bust (+7% in '00). Although theoretically a general growth fund, Needham's portfolio is typically filled with mostly small or midcap, tech or medical device stocks. 2001 return 12.1%. Harry Domash, Winning Investing, (800) 276-7721, www.winninginvesting.com, $14.95/mo., (U.S. Mail), $13.95/mo (Email), 6/15/02

Mutual Fund Name	Fund	NAV		Return (in %)		Min.	Phone #
	Objective		3 mos.	1-year	3-year	Invest.
Baron Opportunity	BIOPX	4.49	(20.25)	(24.28)	n/a	$2,000	(800) 992-2766
Needham Growth	NEEGX	23.31	(16.81)	(14.24)	13.37	$5,000	(800) 625-7071

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