2002 Mid-Year
Investment Outlook

The investment market during the second quarter sustained significant losses. For the quarter ending June 30th, the Dow Jones average registered a loss of 7.1% while the S&P500 and the Nasdaq composite showed losses of 8.1% and 13.3% respectively.

The poor performance of the major indices was especially disappointing and frustrating since the underlying economic fundamentals have been improving, namely; housing, factory orders, productivity, etc… however, there is no question that the current furor over accounting practices has had a major negative impact on investor sentiment and psychology. The confusion surrounding accounting practices coupled with the outrageous practice of World Com, Xerox and Enron resulted in a high level of skepticism regarding reported earnings, which, in turn, has led to declining stock. Over the past two weeks, concerns over a sliding U.S. dollar have added to the level of poor investor sentiment.

While we recognize the impact of the “accounting scandal” on stock prices, this problem will not only be corrected but the resultant poor psychology will also pass. It should be noted that over the past decades, “Wall Street Scandals generally are short lived and the investment community will return to evaluating companies and stock prices in the relevant fundamentals associated with investment decisions.

The underlying fundamentals supporting the U.S. economy continue to improve, albeit somewhat more gradual than hoped earlier this year. As the rebound continues over the second half of 2002 and through 2003, corporate profitability will progressively improve. This improvement in corporate profitably will be a result of not only the increasing economy but also due to a streamlining of corporate expense levels.

It appears that the dismal performance of the investment markets of the First Quarter might not have occurred if the “accounting scandals” did not reach such a crescendo. Now that this “problem” is being addressed we believe that the current environment offers an attractive opportunity to invest in the stock market.

We are attracted to these companies, which will benefit from an improving economy. In this regard, we believe that companies such as Qwest Communications, Archer Daniels Midland and Theragenics are especially attractive.

If you are interested in receiving a comprehensive detailed report on these securities, contact our office toll free at 1-866-787-6397 or log-on to our website www.StockTradersPress.com for a FREE TRIAL and we will forward you these attractive Mid-year investment opportunities.

Research Staff,

Corporate Communications Corp.

Publisher: StockTradersPress.com



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