On July 30th, we recommended the short sale of UAL Inc. at a price pf $5.61. Currently the price is $2.88, which represents a gain of 52%. We believe that the short position should be closed since most of the decline is associated with the possibility of a Chapter 11 filing.

  While a Chapter 11 filing is a distinct possibility it is also possible that UAL Inc. will be successful in extracting union concessions and thus be able to secure a U.S. Government loan guarantee aggregating $1.8 Billion. This becomes a real possibility since the U.S. Air bankruptcy filing.

Given the gains achieved to date, we believe it prudent to capitalize these gains.

DJIA- 8625
S&P- 899.63
NASDQ- 1307.5

Stock Traders Press Management

8-13-02