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%
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.
Corporate Communications Corp.