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					       Investment
       Opportunities
        Supplement to:



        sddt.com/investmentopps08                                                                                                                               Thursday, June 26, 2008 / Vol. 123, No. 128




Opportunities still exist for                                                                               Oil speculators
San Diego real estate investors
       By JOHN GROSS               investment broker — an             approach that engages a team
        Colliers International     opportunity that brings us         of specialists that includes
   Just 12 months ago, the         back to the basics of being a      leasing, property manage-
real estate investment market      real estate adviser.               ment and capital markets
boasted endless transactions.         These questions are well        professionals to increase
Last year’s opportunity is this    suited with our value offering     operating, equity and debt
year’s uncertainty.                to be a capital markets part-      solutions. Leasing and prop-
   Underwriting assumptions        ner and problem-solver. The        erty management specialists
are offering a strong dose of      market demands more of a           are critical to proving value
reality, as rents, tenant          broker than the simple ques-       through operations.
improvements, lease down-          tion, “Do you want to sell            Pairing an operations team
time and other factors are         your building?”                    (leasing and property man-
scrutinized. Buyers are not           We start by considering         agement) with the capital
speculating on what could be       what our clients would like to     markets team (sales and
— they demand proof of what        see happen with their prop-        financing)     structures    a
exists. Many investors are on      erty, and what challenges are      durable cash flow to create
the sidelines, waiting for the     keeping them from their            certainty. The result is maxi-
bottom.                            objectives. A key concern          mizing the value of clients’
   What does this mean for         that we encounter today            property.
your property value? What          emerges when building own-            According to a quarterly
can a seller do to regain con-     ers drop rents to generate         market research report pre-
fidence? What are viable sale      leasing activity to counter        pared        by       Colliers                                                                        Photo: Brendan Smialowski/Bloomberg News
strategies in today’s market?      tenants’ indecision. Our           International , the median            Bart Stupak, U.S. representative from Michigan, chairs a House Energy subcommittee hear -
   While transaction volume        clients are concerned about        sale price per square foot as         ing on speculation in the energy markets in Washington, D.C., on Monday. Stupak ques -
is down precipitously, the         how this impacts capital           well as the rental rate per           tioned the role of large investors like pension funds and endowments that participate in oil
market is actually more            value.                                                                   markets through index funds.                                                       Page 6C
enjoyable for the skilled             We      recommend        an         See Real estate on 2C


Alternative investments find opportunity in current market                                                                                     Time to put the banks and Wall
   By TREVOR CALLAN and
        TIM CALLAN
                                   deeds.” The investment focus-
                                   es on pools of owner-occupied
                                                                      higher yields than traditional
                                                                      investments such as stocks and
                                                                                                          sugar) as well as foreign cur-
                                                                                                          rency and U.S. bond futures.
                                                                                                                                               Street dealers back together?
           Callan Capital                                                                                                                                                             reserve ratios similar to that of
                                   residential real estate loans      bonds and have historically            The ability to take either           By DENNIS K. BERMAN
   While the dollar is strug-      with at least 35 percent equity    provided        non-correlated      long or short positions effi-               The Wall Street Journal         deposit-taking banks. Second,
gling, commodity prices have       in the home as collateral.         returns to traditional invest-      ciently in a wide variety of            Investment banking kills.           short-term bank funding now is
skyrocketed and the credit cri-       Working with a direct pri-      ments. The key to investing in      global markets is managed by            In the carnage of the Great         regarded with suspicion. It is
sis drills further into the psy-   vate moneylender, these indi-      first-trust deeds in this market    a group of special investment        Depression, Congress hoped to          capable of being yanked at a
che of investors, navigating       viduals are investing in pools     environment is working with a       professionals called commod-         safeguard small investors by           moment’s notice, sending a
this market is beyond tricky,      of trust deeds that provide        highly skilled lender with          ity trading advisers. CTAs are       separating stock-touting invest-       bank such as Bear Stearns to
and potentially dangerous.         diversification, high monthly      extremely stringent loan            required to register with the        ment banks from deposit-tak-           the brink of bankruptcy (it is
Hoping to insulate portfolios      income and the security of the     acceptance and property             U.S. governments Commodity           ing commercial ones.                   now part of J.P. Morgan
from market volatility, many       properties having low “loan to     appraisal criteria, low loan to     Futures Trading Commission              Now that it is clear that one       Chase). Third, the securitiza-
high net worth investors are       values.” Loan to value is an       values and investing in pools of    and are highly regulated and         small investment bank, Bear            tion markets also have con-
seeking guidance about cre-        equation used by lenders to        loans to provide diversification.   offer more transparency than         Stearns, had the potential for         tracted, which is in turn forcing
ative alternative investment       assess their risk in lending                                           most hedge funds.                    ruining the financial markets,         the investment banks to shrink
vehicles.                          and return on investment.                 Managed futures                 Access to the global com-         the best way to protect the pub-       their balance sheets.
   Defined by Investment           The equation reflects the per-        Many individual and insti-       modities markets, increased          lic may be the most ironic one            In theory, these problems are
Advisor as “any investment         centage of the loan amount         tutional investors have been        adviser transparency and an          of all: to push commercial and         all solved by putting a large,
outside of stocks, bonds and       divided by the property value.     gravitating toward managed          overall reduction in portfolio       investment banks ever-closer           plodding typical bank — with
cash, alternatives are general-    The low loan to value charac-      futures as another alternative      risk are drivers of the current      together.                              stable deposits and returns —
ly uncorrelated to the general     teristic is very important         investment that has the ability     interest in managed futures.            The hope would be to absorb         next to the more-speculative
market and are well-known          when making this type of           to profit irrespective to trends    Recent studies support the           the volatile side of investment        realms of investment banking
for their potential to enhance     investment. It allows the          in the stock, bond and real         strategy that adding managed         banks with more capital and            and trading.
portfolio diversification.” In     investor to sell the home in       estate markets.                     futures to a portfolio of stocks     stable deposit bases. It is like          Citigroup (NYSE: C), the
addition to mitigating risk,       the event of a default to             According to the Dr. John        and bonds can lower the over-        burying a live bomb in a sand          prime “universal bank” sound-
some alternative investments       recoup the original invest-        Lintner,       of      Harvard      all risk of a portfolio and          pit.                                   ed good in theory, too. It has
are showing great returns by       ment and potentially profit in     University and author of the        enhance returns.                        Around Wall Street there is a       performed miserably since its
leveraging the opportunities       this scenario.                     landmark Lintner Survey,               A Goldman Sachs study             rising,     albeit    reluctant,       creation after Congress rolled
available in a bear market.           The high yields are driven      “Portfolios ... in managed          covering a 25-year period con-       acknowledgment that this may           back the Depression-era limits
Below are two investments          by borrowers who are willing       futures accounts show sub-          cluded that by “allocating only      be the best path for the likes of      a decade ago. That misses the
gaining traction with high net     to pay premium interest rates      stantially less risk at every       10 percent of a securities port-     Merrill Lynch (NYSE: MER),             relative success of J.P. Morgan
worth investors in the current     for short-term loans that close    possible level of expected          folio to commodities, invest-        Morgan Stanley (NYSE: MS)              Chase (NYSE: JPM) and Bank
market.                            quickly, with very little of the   return than portfolios of           ors can vastly improve their         and maybe even Goldman                 of America (NYSE: BAC), the
                                   red tape demanded by con-          stocks (or stocks and bonds)        performance.” A Chicago              Sachs Group (NYSE: GS).                country’s two other big univer-
       First trust deeds           ventional lenders. The current     alone.”                             Mercantile Exchange study               Speculation has in recent           sals.
  A group of savvy investors       credit crisis has wiped out           Managed futures take             reports, “Portfolios with as         weeks mounted that one of the             “Three or four years out, the
and advisers is finding dou-       many of the players in this        either long or short positions      much as 20 percent of assets         Street’s brokers may even buy a        investment-banking model is
ble-digit returns by investing     field, giving those remaining      on futures contracts such as        in managed futures yield up          commercial bank. Whether               coming to an end,” says Brian J.
in subprime loans. Contrary        the ability to be selective with   metals (gold, silver), grains       to 50 percent more than a            true, the rumors speak to three        Sterling, co-head of investment
to the current headlines,          loans.                             (soybeans, corn, wheat), equi-      portfolio of stocks and bonds        deep changes under way.                banking for boutique adviser
investors are utilizing a cre-        Like all investments, first     ty indexes (S&P, Dow, Nasdaq        alone.”                                 First,    looming     Federal       Sandler O’Neill & Partners. “If
ative real estate investment       trust deeds represent a level of   100 futures), soft commodi-                                              Reserve assistance and regula-
vehicle called “first trust        risk, but they also provide        ties (cotton, cocoa, coffee,         See Current market on 3C            tion could force brokers to keep        See Banks & dealers on 4C


Stocks rise after Fed says economic risks have diminished
  By GEORGE CHAMBERLIN                                                                                    investors including institu-
          Executive Editor                                                                                tions in Qatar, Singapore,
   An early rally on Wall Street                                                                          China and Japan. Half the
following the decision by the                                                                             new money will be used to
Federal Reserve to leave inter-                                                                           bolster Barclay’s capital and
est       rates      unchanged                                                                            the rest will be used for “busi-
Wednesday faded and prices                                                                                ness opportunities,” including
closed slightly higher.                                                                                   acquisitions, Barclays said.
   The Dow Jones industrial                                                                               The stock jumped 6.5 percent
average — up more than 100                                                                                in London trading.
points during the session —                                                                                  Zions        Bancorporation
finished with a gain of just                                                                              (Nasdaq: ZION) led gains in
4.40 points at 11,811.83. The                                                                             regional lenders, the worst-
Nasdaq composite index was                                                                                performing industry group in
up 32.98 points to 2,401.26                                                                               the S&P 500 this year. The
and the S&P 500 stock index                                                                               Salt Lake City-based bank
gained 7.68 points to 1,321.97.                                                                           with operations in 10 Western
   The dollar and two-year                                                                                states said it won’t cut its divi-
                                                                                                   AP
Treasury yields fell as traders                                                                           dend or raise dilutive capital.
reduced bets that policy mak-      benchmark rate seven times         the 1930s spurred record            The shares climbed $1.65 to
ers will raise rates at upcom-     since September to bolster         home foreclosures.                  $32.64.
ing meetings. Oil erased about     economic growth and restore          Bank shares got an early             Hudson City Bancorp Inc.
half of a decline of almost $5 a   confidence in debt markets.        boost     Wednesday        after    (Nasdaq: HCBK) added 49
barrel after the Fed said “over-   Banks have reported almost         Barclays Plc (NYSE: BCS),           cents to $17.75. The third-
all economic activity contin-      $400 billion of loan losses        Britain’s       fourth-biggest      largest thrift by assets said
ues to expand.”                    and asset writedowns as the        lender, said it will offer $8.9
   The Fed had reduced its         worst housing slump since          billion in new shares to              See Market Report on 7C
2C                                          THURSDAY, JUNE 26, 2008 •     Investment Opportunities • THE DAILY TRANSCRIPT

Candy a sweet spot in sour economy
     By MARTHA IRVINE            National       Confectioners     Co. , which tracks consumer       Candy’s reputation for        that was established in 1927.        Earlier this year, the
       The Associated Press      Association. That’s about a 3    habits, go as far as calling    getting people through          Now the company does              Hershey Co. (NYSE: HSY),
  CHICAGO — Like a lot of        percent increase from the        the candy business “reces-      tough times is long-stand-      business on the Internet as       one of the nation’s biggest
people, Nate Towne is cut-       previous year.                   sion-proof,” compared with      ing.                            Candyfavorites.com.               candy makers, raised its
ting back on spending. He’s         That sizable sweet tooth is   other discretionary items,        During      the      Great      But even if consumers are       prices and, last year,
carpooling to work and only      a big reason many analysts       such as tobacco and carbon-     Depression a nickel choco-      willing to spend, this isn’t      announced job cuts and a
shops at grocery stores that     say the candy business is        ated beverages (though beer     late bar was sustenance.        an easy time for the candy        plan to close several U.S.
take coupons or offer dis-       likely to fare better than       also tends to do well when      Some had names such as          industry, says Jon H.             manufacturing plants, caus-
count “rewards” cards.           other nonessentials in these     the economy is hurting).        “Chicken Dinner.”               Prince, president of both         ing merger speculation.
  But even in this economy,      economically trying times,         They note that consumers        “Candy bars, during the       companies.                           And this spring, M a r s
he remains a self-described      even as prices for commodi-      are cutting back on longer-     Depression, were really           “Are we going to say that       I n c . , the Virginia-based
“candy snob.”                    ties such as sugar, milk and     distance shopping trips to      America’s fast food,” says      business is easier now that       maker of M&Ms and
  “I’m serious when I say I’ll   cocoa have risen.                save gas. As a result, they     Steve Almond, author of         gas is $4 a gallon? Probably      Snickers, announced the
pay a premium for my top            The bottom line is: As        are spending more at drug       “Candyfreak,” a book that       not,” he says, noting such        purchase of Chicago’s Wm.
favorites because in the         vices go, candy is still rela-   and convenience stores with     examines the economic his-      factors as the cost of trans-     W r i g l e y J r . C o . (NYSE:
grand scheme of things, it’s     tively cheap for most con-       big, easy-access candy sec-     tory and allure of chocolate.   porting candy.                    WWY), which is known for
only a few bucks,” says          sumers.                          tions.                          “They were expressly mar-         It’s also a time when           its       Juicy     Fruit    and
Towne, a 37-year-old public         “People may not be able to      Then there’s the “feel        keted in a way that would       you’re likely to see the          Doublemint gum, as well as
relations consultant in          flip for Starbucks or even to    good” factor.                   suggest to people that this     biggest candy makers con-         Life Savers.
Madison, Wis.                    go to McDonald’s. But they         “A dollar candy bar treat     was a cheap meal.”              solidating, much like the            “Unless you have a very
  He’s not the only one          have the ability to pay a dol-   in the face of filling up the     Such strategies helped        airline industry, says Pat        powerful niche, the worst
who’s stuck on candy.            lar for a treat,” says Jim       gas tank for nearly $100 can    some candy makers and           Conroy, a consumer prod-          place you want to be is in
Americans buy billions of        Tillotson, professor of food     be a powerful psychological     sellers weather those a weak    ucts expert at accounting         the middle (in size),” Conroy
dollars worth of the stuff       policy and international         motivator,”    says    James    economy.                        and consulting firm Deloitte      says. “That’s the danger
each year — with more than       business        at      Tufts    Russo, vice president of          One of them was the           & T o u c h e U S A L L P . The   zone.”
$29 billion in retail sales in   University’s Fletcher School.    marketing for Nielsen’s food    McKeesport Candy Co., a         rising price of ingredients is
2007, according to the              Analysts at The Nielsen       sector.                         wholesaler in Pennsylvania      part of the issue.                       See Candy on 5C



                                                                                                                                                                    Real estate
                                                                                                                                                                         Continued from Page 1C
                                                                                                                                                                    square foot in San Diego for
                                                                                                                                                                    all product types (office,
                                                                                                                                                                    retail, industrial) are trend-
                                                                                                                                                                    ing up. Average cap rates
                                                                                                                                                                    have increased for industrial
                                                                                                                                                                    properties,     remain      un-
                                                                                                                                                                    changed for retail properties
                                                                                                                                                                    and are moving down slightly
                                                                                                                                                                    for office properties.
                                                                                                                                                                       Investor demand remains
                                                                                                                                                                    steady for industrial build-
                                                                                                                                                                    ings that feature stable ten-
                                                                                                                                                                    ancy and are located in sup-
                                                                                                                                                                    ply-constrained submarkets.
                                                                                                                                                                    In first-quarter 2008, the
                                                                                                                                                                    industrial/ R&D vacancy
                                                                                                                                                                    rate increased by a mere
                                                                                                                                                                    four basis points to 8.4 per-
                                                                                                                                                                    cent. As construction activi-
                                                                                                                                                                    ty in the county slows,
                                                                                                                                                                    vacancy should remain
                                                                                                                                                                    below 9 percent for 2008.
                                                                                                                                                                    The median sales price per
                                                                                                                                                                    square foot in the first quar-
                                                                                                                                                                    ter of 2008 was $168, up
                                                                                                                                                                    from $139 in fourth-quarter
                                                                                                                                                                    2007.
                                                                                                                                                                       Retail     vacancy      rates
                                                                                                                                                                    remain      low,    increasing
                                                                                                                                                                    slightly to 3.7 percent in the
                                                                                                                                                                    first quarter of this year.
                                                                                                                                                                    Demand for retail invest-
                                                                                                                                                                    ments continues with medi-
                                                                                                                                                                    an pricing accelerating to
                                                                                                                                                                    $270 per square foot in the
                                                                                                                                                                    quarter.
                                                                                                                                                                       Prices for core office assets
                                                                                                                                                                    are holding steady while
                                                                                                                                                                    Class B and C properties are
                                                                                                                                                                    experiencing pricing dislo-
                                                                                                                                                                    cation. However, opportuni-
                                                                                                                                                                    ties exist to acquire well-
                                                                                                                                                                    located office properties
                                                                                                                                                                    with reasonable underwrit-
                                                                                                                                                                    ing assumptions (leasing
                                                                                                                                                                    and debt). Office vacancy
                                                                                                                                                                    continued its upward trend
                                                                                                                                                                    in the first quarter. Net
                                                                                                                                                                    absorption nearly reached
                                                                                                                                                                    250,000 square feet, but
                                                                                                                                                                    could not keep pace with
                                                                                                                                                                    new supply totaling close to
                                                                                                                                                                    1 million square feet. The
                                                                                                                                                                    median sales price per
                                                                                                                                                                    square foot in the first quar-
                                                                                                                                                                    ter was $220, up from $215
                                                                                                                                                                    in the previous quarter.
                                                                                                                                                                       In a world of cycles, the
                                                                                                                                                                    investment market is now in
                                                                                                                                                                    a correction that forces more
                                                                                                                                                                    discipline and a renewed
                                                                                                                                                                    respect for the art of real
                                                                                                                                                                    estate trading. Real estate
                                                                                                                                                                    investors should demand
                                                                                                                                                                    advisers who have both the
                                                                                                                                                                    experience to accurately
                                                                                                                                                                    value and position property,
                                                                                                                                                                    as well as the access to pow-
                                                                                                                                                                    erful marketing systems and
                                                                                                                                                                    an extensive pool of buyers.

                                                                                                                                                                      Gross is managing direc-
                                                                                                                                                                    tor for Colliers Private
                                                                                                                                                                    Capital Advisors.
                                                                                                                                                                     Source Code: 20080626cra



                                                                                                                                                                          The Daily
                                                                                                                                                                          Transcript
                                                                                                                                                                           Founded April 3, 1886
                                                                                                                                                                              www.sddt.com
                                                                                                                                                                     ROBERT L. LOOMIS, Publisher
                                                                                                                                                                           George Chamberlin,
                                                                                                                                                                            Executive Editor
                                                                                                                                                                            Joseph Guerin, Editor
                                                                                                                                                                    Richard Spaulding, Real Estate Editor
                                                                                                                                                                           Jennifer Chung Klam,
                                                                                                                                                                           Special Sections Editor
                                                                                                                                                                         Tracye Grimes, Web Editor

                                                                                                                                                                             Ellen C. Revelle,
                                                                                                                                                                            Publisher Emerita

                                                                                                                                                                          San Diego Daily Transcript
                                                                                                                                                                               P.O. Box 85469
                                                                                                                                                                          San Diego, CA 92186–5469
                                                                                                                                                                               (619) 232-4381
                                                                                                                                                                           Web site: www.sddt.com
                                                   THURSDAY, JUNE 26, 2008 •         Investment Opportunities • THE DAILY TRANSCRIPT                                                                       3C

Close-up: Scott Parker

Banking veteran leads new Hispanic-focused institution
    By JILL BLACKFORD                 community banks do not               fun.”
    Special to the Daily Transcript   really lend in that capacity,           Vibra, led by chairman of
   The strength in any com-           public perception of banks           the board Enrique Schon,
munity bank is in its rela-           in general has still been            reached out to Parker with
tionships with its customers.         affected.                            the chance to take the post
It’s also in the knowledge of            “Some (of the rationale for       at the helm when Parker’s
business practices in the             starting a bank now) is com-         current      bank,     Rancho
market. The mission of                mon sense, but some sounds           Bernardo Community Bank,
V i b r a B a n k , currently in      like the opposite,” Parker           was in an aforementioned
organization, is to provide           said. “Community banks are           M&A phase. He was its chief
insight not only on the U.S.          certainly impacted by the            credit officer when he decid-
market, but Mexico’s as               market slowdown in gener-            ed to join the Vibra team.
well.                                 al. But we’re a startup, so we          “I’d seen three acquisi-
   Poised to be the only bank         have no existing loan portfo-        tions in the course of two
in San Diego County since             lio — no problem loans, no           years at Rancho Bernardo
1980 to service the Latino            foreclosed real estate. We           Bank,” Parker said. “Vibra
community, Vibra plans to             are free from that distrac-          had a business strategy in
capitalize on the expertise of        tion.”                               place, and it seemed to be a
its directors, about three-              Parker also noted that            good fit. Luckily for me, tim-
fourths of whom are                   some of the most successful          ing was good. It seemed like
Mexican, to inform decision-          banks actually started prior         an excellent market — and
making — and advising —               to or during a recession. And        an excellent idea.”
for its clients.                      community banks in partic-              The bank’s organizers
   “A number of our directors         ular can capitalize not only         have looked to other
are business people who are           on personalized expertise,           Hispanic-focused         banks
active in Mexico and know             but also on inside, direct           across the country, in cities
how business is done there,”          access to decision-makers            like Chicago and Denver, for
said Scott Parker, president          on behalf of customers.              best practices insight. Many
and CEO of the bank. “For                Parker is an esteemed             of those are finding success.                                                                                Photo: J. Kat Woronowicz
someone establishing a busi-          observer of the San Diego               Parker sees Chula Vista as         Scott Parker, president and CEO of the new Vibra Bank, says that community banks not only
ness presence here, it would          banking market. He’s been            another location that hints           capitalize on personalized expertise, but also on inside, direct access to decision-makers on
be helpful for them to bank           involved with the San Diego          largely of success, with its          behalf of customers.
with a bank like ours                 banking community for                Hispanic and bicultural
because we can engage them            more than two decades.               population and growth rate            few weeks,” he said.
and be part of that learning             Parker’s career began dur-        among the fastest in the                 As its initial goal, Vibra
process.”                             ing college in New Mexico,           nation.                               has a three-year plan that
   According to Parker, the           when he started out as a                “I’m excited to be a part of       calls for maintaining the
United States is much more            teller in 1983. His goal has         it and part of a new bank in          launch     location    versus
financial statement-oriented          been to stay with locally            Chula Vista. I think it’s a           expanding into new branch-
than Mexico. There, clients           owned community banks.               great place to be.”                   es. Parker acknowledges the
may be more used to sitting           Since the typical lifespan of           With the industry’s latest         relatively short tenure of
down and establishing a               a community bank tends to            technologies, Vibra will be           most community banks as he
relationship right up front.          be relatively short, that has        able to service not only              talks about the bank’s initial
But, he said, “Business is            often meant seeking out new          Chula Vista, but well                 goals.
still business on both sides          opportunities when it looks          beyond.       With     remote            “There does seem to be a
of the border.” And Vibra             like a merger or acquisition         deposit capture, as Parker            lifespan to community banks
includes non-Hispanic cus-            is on the horizon.                   said, not only do you not             of five to 10 years,” he said.
tomers in its mission state-             “Being part of a small            have to be down the street,           “The best way to bring the
ment as well.                         organization, you have much          you don’t even have to be in          most value to customers is to
   Yet even with its niche            more autonomy and impact,”           the same city.                        run the bank like it’s always
approach, one of the most             Parker said. “There is a lot            Parker expects the open-           going to be there. Right now
common           questions   the      flatter      decision-making         ing to take place by the end          we just want to get it open
banks organizers have been            structure, generally, as             of June.                              and grow it to be as success-
getting is: Why start a bank          opposed to a large bank,                “We’re tying up loose ends,        ful as we can.”
now? The ripples of the sub-          where your particular input          such as staffing and systems
prime mortgage crisis are             may be much less meaning-            training. There are a lot of            Blackford   is   a   Los
still shaking the banking             ful. You can also get deci-          moving parts, and it’s a bit          Angeles-based    freelance
industry — and the U.S.               sions made quickly on behalf         like herding cats. But we             writer.
economy at large. While               of customers. It’s a lot more        hope to be open in the next            Source Code: 20080626cre



Organization wants ‘angel investing’ to soar in SoCal
   By ELIZABETH MALLOY                   Watson’s group, which is          same no matter what country
          The Daily Transcript        based in Toronto but has offices     they’re from, Watson said: Does
    When it comes to angel            all over Canada, is focusing on      this investor feel the same way
investing, personal relation-         Southern California in part          about the future of a company
ships can be just as important        because a lot of the region’s        as I do?
as finances, according to Bryan       industries also are growing             “The      main      difference
Watson, the executive director        industries in Canada, like tech-     (between angels and venture
of Canada’s National Angel            nology and life science.             capitalists) is venture capitalists
Organization.                            The biggest disadvantage          … are people who have raised
    When you’re investing your        remains geographical distance,       the funds to manage other peo-
personal funds into a company,        Watson said. Even in an age of       ple’s money,” Watson said.
it’s good to know you and your        Internet and Blackberries, the       “Whereas angels, traditionally
co-investors are on the same          idea that a co-investor is time      … it’s their own money.”
page.                                 zones and a border away can be          Angel investers also use their
    That’s what inspired a dinner     disconcerting.                       own ideas and their own man-
last month in San Diego that             “What really needs to happen      agement styles, he continued.
brought         together    angel     is for that investor to come         Angel investors might not just
investors         from    Canada,     down, spend the time,” Watson        want a financial return on an
Southern California, and other        said. “Online … just doesn’t get     investment, but they’ll want
countries.                            it done.”                            certain accomplishments for
    Watson said he hopes that            Another disadvantage is that      the company as well.
dinner is the starting point to       it is sometimes hard for                This is the main reason the
an influx of relationships            investors to know everything         National Angel Organization
between          Canadian     and     about tax codes in different         hosted the dinner, to create
Southern California angel             states and countries.                more one-on-one relationships
investors that will connect              Also, some investors are wary     between investors, in hopes
some of the two region’s similar      of investing in a business that is   that those relationships can
industries.                           far away, afraid they can’t prop-    overcome issues like borders
    “The real key to that co-         erly vet the company.                and tax laws.
investment is that I know the            According to Watson, a lot of        It’s too early to know if any
guy sitting next to me,” Watson       investor groups, including his       connections made at the dinner
said.                                 own, have developed treaties         will result in actual collabora-
    The idea of angel investing,      that promise an investor only        tions, but Watson said he hopes
where investors put their own         will look for partners on a com-     to jump-start the process.
funds — and often their own           pany they have thoroughly               “We really came together to
ideas and management — into           investigated themselves.             explore opportunities of invest-
a company, is fairly new,                But the biggest concern           ing,” Watson said.
Watson said.                          about co-investing between               elizabeth.malloy@sddt.com
    In its current form, the prac-    angel investors remains the                Source Code: 20080527czj
tice goes back about 15 years in
North America, with organized
groups like Watson’s cropping
                                      Current market
up in the past eight years or so.          Continued from Page 1C          Portfolio Theory suggests that
    Part of moving to the next          Additionally, Credit Suisse        holding a well-diversified port-
level, Watson said, is creating       reported (through May 2008)          folio of noncorrelating invest-
more international co-investing       that the Managed Futures             ments reduces risk and can
between angels. Most of the           index returned 11.49 percent         improve overall returns. In a
Southern California angels he’s       over the last year, while the        down stock and bond market,
spoken with were receptive to         S&P 500 lost 6.70 percent.           alternative investments have
the idea.                             Since 1994, the worst month          the ability to step forward to
    “Money doesn’t care what          for the Managed Futures              offer smart investors an oppor-
industry or what country it’s         index was -9.35 percent com-         tunity to increase their wealth
found        in,”    said   Doug      pared to -14.41 percent for the      and improve their portfolio per-
Pennington, executive director        S&P 500 index.                       formance.
of the Private Capital Network
in Orange County, according to                 Diversification               Trevor Callan is CEO and co-
a press release from the                 In today’s more global invest-    founder, and Tim Callan is
Consulate of Canada in San            ment market, the definition of a     president and co-founder of
Diego.                                well-diversified portfolio is con-   Callan Capital, a boutique
    At a May 8 dinner, organized      stantly changing. Being “diver-      wealth management firm pro-
in part by the consulate, these       sified” in stocks and bonds          viding custom solutions to help
investors came together to dis-       alone can no longer be consid-       high net worth families navi-
cuss the challenges and advan-        ered a comprehensive diversifi-      gate the complexities of wealth.
tages of such arrangements.           cation     strategy.     Modern         Source Code: 20080626crb
4C                                                THURSDAY, JUNE 26, 2008 •        Investment Opportunities • THE DAILY TRANSCRIPT

  A light at the end of the tunnel?

  San Diego’s current commercial real estate investment market
       By ADAM ROBINSON                underwriting is now the             As of now, it is currently 70      marily felt in residential real              acknowledging that proper-
            Lee & Associates           norm, as opposed to previous        percent LTV, with much high-       estate and related companies                 ties that would have sold a
     As the U.S. economy con-          years where just about any-         er     interest-only      rates.   and those interrelated to that               few years ago are now sitting
  tinues to struggle through its       one could procure an invest-        Construction lenders are           industry.                                    on the market and then final-
  current downturn and econo-          ment loan. The leniency of          probably the most cautious            Office rental rates have                  ly being taken off the market
  mists can’t seem to come to          criteria has fallen by the way-     and keep a close watch on the      been inflated in the last few                if not more reasonably priced.
  an agreement as to whether           side. Not only is it harder to      market and track record of         years due to investors paying                Unlike a couple of years ago,
  America is in a recession or         procure a loan, but the num-        the borrower.                      record low CAP rates for                     when that same property
  inflationary market, one             ber of lending sources for             As stricter and tighter         properties and having to try                 would have sold quickly, sell-
  thing is certain — the reper-        investors is drying up. For         underwriting serves to “weed       and push rental rates to justi-              ers are recognizing the mood
  cussions of the credit crunch,       long-term fixed rate mort-          out the pack,” so-to-speak,        fy the prices they paid for the              of the investment community
  the residential real estate          gages, the usual players —          lenders will eventually begin      property. We are now seeing                  and waiting for the market to
  meltdown        and     investor     commercial banks and life           coming back into the equa-         an increase in tenant conces-                pull out of this current cycle.
  uncertainty have made its            insurance companies — are           tion as the market picks up.       sions, mostly in the form of                    On the brokerage side, bro-
  way into the arena of com-           very picky about whom they             Out of industrial and office    free rent and/or increased                   kers have had to cast a broad-
  mercial real estate investment       will finance. The commercial        investments, office invest-        tenant           improvement                 er net when marketing prop-
  markets, including the San           mortgage-backed         security    ments have been affected           allowances.                                  erties for sale. We are seeing
  Diego market.                        (CMBS) lenders are out of the       most by the fall in market            In the San Diego submar-                  some of our local buyers pass             Adam Robinson
     To put it bluntly, the invest-    game at this point and are          activity. This is partially due    kets, Carlsbad and Del Mar                   on properties and more buy-
  ment market in commercial            waiting on the sidelines until      to developers overbuilding         Heights top the list with the                ers coming from out of state        did back in 2000 during the
  real estate has drastically          things begin to look up.            and putting a lot of new prod-     highest office vacancy rates.                and even out of the country.        dot-com crash. In fact, in 18
  slowed down in 2008.                   We are seeing the banks           uct on the market, as well as      Currently, Carlsbad has                      Indeed, there has been a            to 24 months, we will likely
  Indeed, when compared to             and life insurance companies        residential real estate-related    approximately 1.5 million                    marked increase in foreign          see the market rebound and
  2007, our figures for the San        requesting a minimum 1.20           companies closing their doors      square feet of vacant office                 investment, particularly given      become healthier.
  Diego investment market              debt coverage ratio and 65          and adding sublease space to       space,     translating      into             the state of the weak U.S. dol-
  show a drop of about 50 per-         percent loan to value (LTV).        the market.                        approximately 22 percent                     lar.                                  Robinson, SIOR, CCIM,
  cent in sales from this time a       Shorter-term bridge financ-            Fortunately, this cycle does    vacancy, which is the highest                   There does appear to be          is a principal in Lee &
  year ago. Even though we             ing is available for the non-       not compare to the dot-com         in the county. Del Mar                       some good news, however.            Associates’ San Diego North
  might see investment offer-          credit, more local credit deals,    bust of the late 1990s and         Heights has approximately                    Although it seems we are            office. He specializes in all
  ings increase throughout the         or deals with leases rolling in     early 2000s, which saw a           550,000 square feet of vacant                close to hitting the bottom,        aspects of industrial, R&D,
  year, there is little doubt that     the near future. These bridge       huge increase in office vacan-     office space, translating into               because this is an election         office and investment trans-
  we will remain in this current       lenders,      however,      are     cy. Then, unlike now, we saw       approximately 12 percent                     year it’s difficult for anyone to   actions, including landlord
  slump throughout 2008.               extremely selective and look        a wide variety of companies        vacancy rate.                                really predict what will hap-       representation, tenant rep-
     One huge factor that has          very carefully at underwrit-        close their doors literally           On the sales side, sellers are            pen by year’s end. It does not      resentation, build-to-suits
  contributed to the downturn          ing, market fundamentals            overnight. In this current eco-    becoming more realistic                      appear as though we will see        and land sales.
  in investment is that accurate       and the prospective borrower.       nomic cycle, the impact is pri-    about their property values,                 office vacancies quite like we       Source Code: 20080626crg



Banks & dealers
     Continued from Page 1C              The contrary answer would        to take advantage of a weak dol-
                                                                                                              Steep fall for high-fliers
it walks like a bank and quacks       be to find the best partner pos-    lar. “Whoever’s got the highest          By JOANNA SLATER                       markets. It is also a sign that      trading at about 17 times their
like a bank, it’s going to have       sible, before a rival snaps one     multiple (of earnings) is going            The Wall Street Journal              not all emerging markets can         2008 earnings, according to
capital ratios like a bank.”          up. Among the big commercial        to win,” says Sterling.                As 2008 approaches its                   be lumped together. While            UBS estimates, as are Chinese
   Of course, now is a terrible       banks, troubled Wachovia               During the stock market          midpoint, two of the world’s                India and China struggle,            shares in which foreigners
time to be purchasing either an       (NYSE: WB) is trading at            boom of the 1920s, one bank         worst-performing stock mar-                 stocks in Brazil and Russia          invest.
investment bank or commer-            slightly less than half its book    chief, Charles Mitchell of          kets were not long ago                      have held up relatively well.          Foreign investors have
cial bank. Both still are littered    value. The likes of PNC Finan-      National City (the precursor to     investors’ biggest darlings —                  Even U.S. stocks haven’t          pulled a net total of more than
with securities and loans that        cial Services Group (NYSE:          Citigroup),      rejoiced     in    China and India.                            fared as badly, despite mount-       $5.5 billion out of Indian
are nearly impossible to value.       PNC) or SunTrust Banks              “bring(ing) the investment             Both countries came into                 ing pressure from credit trou-       stocks this year, according to
   Investment-bank          chiefs    (NYSE: STI) may be attractive       banking house to the people ...     the year with stocks trading at             ble and rising oil prices. The       Standard Chartered Bank .
would do well to resist this          to a Wall Street firm looking for   in a way that is part and parcel    expensive levels, leaving them              Dow Jones industrial average         China’s domestic stock market
change for as long as possible.       a steady deposit base.              of their everyday life.”            vulnerable to a reversal in                 is down 11 percent this year,        remains almost entirely closed
The return-on-equity for an              Each of these scenarios             Today, the investment banks      investor sentiment. While                   even after Friday’s big selloff.     to foreigners, whose invest-
investment bank is typically          implies that a Wall Street firm     are so entwined with the every-     economic growth remains                        While economic worries are        ment is limited to a quota of
above 20 percent, while com-          will be the acquirer. That isn’t    day financial system that their     robust in the two countries,                helping drive the stock              about $10 billion that global
mercial banks generally deliver       necessarily the case, either,       problems belong to all of us —      few analysts believe it will                declines, the sharp market           investors       would       like
a midteen return. Why rush to         especially given how a foreign      whether we like it or not.          match last year’s stellar per-              reversals don’t yet appear to        increased. Foreigners can also
cut your own profitability?           acquirer may eventually want             Source Code: 20080626crc       formance. And investors are                 be reverberating into the            buy some big Chinese shares
                                                                                                              increasingly anxious about                  economies. That is partly due        in Hong Kong, where the
                                                                                                              rising inflation and govern-                to the outsize gains of recent       Hang Seng index is down 18
                                                                                                              ment efforts to stem it, which              years, which are cushioning          percent this year.
                                                                                                              could further dent growth.                  losses for many investors.             The U.S. economic slow-
                                                                                                                 Indian shares are off 28 per-            Still, the tumbles do represent      down threatens to dent export
                                                                                                              cent this year as of last week,             a risk for consumer confi-           growth for both countries.
                                                                                                              well into bear-market territo-              dence and investment by com-         High commodity prices and
                                                                                                              ry. Chinese stocks have tum-                panies that had been eagerly         mounting inflation are an
                                                                                                              bled 46 percent. Still, both are            tapping public markets to            even bigger threat. On Friday,
                                                                                                              much higher than they were a                fund expansions.                     a key measure of Indian infla-
                                                                                                              few years ago.                                 China’s vibrant Internet          tion, the wholesale price
                                                                                                                 June is likely to mark the               chat scene offers reminders of       index, jumped to 11 percent
                                                                                                              fifth monthly loss in six                   the damage to investor psy-          for the week ending June 7,
                                                                                                              months for a deeply depressed               chology. One Web site warns          sending the Sensex down 3.4
                                                                                                              Chinese stock market that has               not to trade stocks unless you       percent. China’s consumer-
                                                                                                              seen some $2 trillion in mar-               want to “arrive in a BMW,            price index for May grew 7.7
                                                                                                              ket value evaporate since                   leave on a bike” and concludes       percent year on year, accord-
                                                                                                              January. Down by more than                  the “Earth would shrink to the       ing to China’s national bureau
                                                                                                              half from its peak, the                     size of a ping-pong ball in this     of statistics.
                                                                                                              Shanghai Composite Index is                 market.”                               The World Bank expects
                                                                                                              trading at levels last seen in                 Many           international      China’s economy to grow 9.8
                                                                                                              early 2007. The drop in the                 investors are bearish, too.          percent in 2008, compared
                                                                                                              Sensex has taken it back to                 “Neither (market) is looking         with 11.4 percent in 2007.
                                                                                                              levels last seen in August.                 outstandingly attractive, but        Moody’s Economy.com sees
                                                                                                                 The development is a                     they’re starting to get back in      India growing 7.6 percent in
                                                                                                              reminder that a spectacular                 touch with reality,” says Allan      the year ending March 31,
                                                                                                              run of economic growth in                   Conway, who manages $23              2009, compared with 9 per-
                                                                                                              emerging markets hasn’t ren-                billion in emerging-market           cent in the most recent year.
                                                                                                              dered them immune to dra-                   shares for Schroders in
                                                                                                              matic drops in their financial              London. Shares in India are                  See Fall on 6C


                                                                                                              Short sales could be silver lining
                                                                                                              in San Diego real estate market
                                                                                                                             By DENNIS ELLMAN                               home, it ends up costing them much more
                                                                                                                             Special to the Daily Transcript                than if they had sold it through a short sale. “
                                                                                                                 Prices are down as much as 30 percent to 40                  Battiata said that while foreclosures or REOs
                                                                                                              percent in many areas, foreclosures and short                 (short for “real estate owned” — by the bank)
                                                                                                              sales are at historic highs, downtown condos                  can sometimes sell for as much as 10 percent to
                                                                                                              and suburban tracts stand abandoned and                       20 percent below market; short sales can often
                                                                                                              unfinished, and agents and mortgage brokers                   sell at even greater discounts.
                                                                                                              are leaving the business in droves.                             The key, according to Battiata, is to hire the
                                                                                                                 Sound dismal? Perhaps.                                     right agent.
                                                                                                                 But according to one San Diego Realtor,                      “Buyers need to make sure they hire a good
                                                                                                              there is a silver lining.                                     buyer’s agent — one who is experienced with
                                                                                                                 “The next few years represent probably the                 short sales and knows the market. They also
                                                                                                              biggest buying opportunity for San Diego real                 need to be sure that the listing agent on the
                                                                                                              estate in our lifetime,” said Matt Battiata, the              short sale they want to buy is an experienced
                                                                                                              top selling Realtor known for his “I’m not brag-              short sale negotiator.”
                                                                                                              ging, I’m applying for a job” TV commercials.                   Without these two key ingredients, Battiata
                                                                                                                 “For a long time, there were no deals to be                said, most short sale transactions are destined
                                                                                                              had in San Diego. Now we are in the middle of                 for foreclosure.
                                                                                                              a correction that anyone who was paying atten-                  “Every foreclosure or REO that hits the mar-
                                                                                                              tion knew was coming. It is a natural and                     ket is the result of a failed short sale. The banks
                                                                                                              unavoidable market cycle, and it is a huge                    do not want to foreclose; they want to do a
                                                                                                              opportunity for the savvy investor.”                          short sale. It is in their self interest to do so.
                                                                                                                 Battiata, the broker and CEO of The Battiata               But very often they are too disorganized and
                                                                                                              Real Estate Group, said that in addition to                   overwhelmed to get out of their own way,” he
                                                                                                              foreclosures, so called “short sales” (also                   said. “It takes a determined effort and a lot of
                                                                                                              known as “pre-foreclosures”), in which the                    time invested on the part of the agents to get a
                                                                                                              lender agrees to take less on a property than                 short sale through, but the rewards for the
                                                                                                              they are owed, often represent the best chance                buyer can be enormous.”
                                                                                                              to get real estate at a bargain.
                                                                                                                 “Next year will go down in history as the year               Ellman is founder and principle of Beck
                                                                                                              of the short sale,” Battiata predicted. “The                  Ellman Heald Agency.
                                                                                                              lenders know that when they foreclose on a                                    Source Code: 20080626crd
                                               THURSDAY, JUNE 26, 2008 •       Investment Opportunities • THE DAILY TRANSCRIPT                                                                        5C

Close-up: Rick Mandelbaum

CEO leverages local ties for new business bank venture
    By CHRISTINE MEADE             of Landmark National Bank          Mandelbaum said.
        The Daily Transcript       in Solana Beach, which was            As part of Manchester
   Manchester         Financial    sold in July 2007 to 1st Pacific   Financial Group, the bank is
Bank ’s CEO Rick Mandel-           Bank.                              looking to bring a sense of
baum plans to utilize previ-          Manchester Financial Bank       hospitality to its banking. The
ously existing relationships       is Mandelbaum’s first turn at      goal is to create a bank that is
within the San Diego commu-        walking into a bank as CEO.        more user-friendly, has better
nity to help see the               He has the added advantage         service, is very personalized
Manchester Financial Group’s       of bringing on his previous        and high-tech.
latest business to success.        executive team and hand               “We have the advantage of
   Set to open during the          selecting the rest of the bank-    being able to start from
fourth quarter of 2008 in La       ing team.                          scratch and invest in new sys-
Jolla, Manchester Financial           “I looked for individuals       tems, where other banks are
Bank is coming to life during      that shared the same culture       forced to work with the sys-
a challenging economic time        in customer satisfaction qual-     tems they already have,” said
in the banking world. But          ities and have been in the         Mandelbaum.
Mandelbaum remains confi-          banking industry for a period         The bank’s No. 1 focus is its
dent the bank will flourish.       of time. A lot of integrity and    clients, and intensified train-
   “No question, it’s not the      good reputations will help         ing will be provided for all
best time to start a bank, but     enhance the bank and bring it      staff members on how to greet
we are going to be a self-fund-    to profitability,” Mandelbaum      customers and exceed expec-
ed private placement, and we       said.                              tations.
have raised $20 million in            Also helping track Man-            “We want to bring a clear
capital coming from basically      chester Financial Bank to          focus of what we are all about
12 individuals,” Mandelbaum        profitability is its affiliation   to help reduce the stress of
said.                              with      the       Manchester     banking for our customers,”
   The full-fledge commercial      Financial Group, led by chair-     Mandelbaum said.
and community business             man “Papa” Doug Man-                  One      way     Manchester
bank is not open to the public     chester. Although the bank is      Financial Bank will relieve                                                                                  Photo: J. Kat Woronowicz
as far as capital offering goes,   not a holding company, it is an    stress is to be virtually paper-   Rick Mandelbaum, tapped to lead the new Manchester Financial Bank, says the bank will pro-
he said. The bank will prima-      individually owned bank with       less. Business owners can set      vide personalized, high-tech and user-friendly service.
rily cater to small- and medi-     multiple sister-ships and a        up remote capture in their
um-sized businesses as well as     common ownership.                  office,     which      provides    became available in August       bank is currently working on     lator, National Bank OCC
commercial property owners.           “The Manchester Grand           machines that can scan             2007.       The      location,   all systems software and hard-   (Office of the Comptroller of
Mandelbaum believes draw-          Hyatt has tremendous bank-         checks for instant credit to       Mandelbaum       said,    was    ware before opening day. And     the Currency). We are now
ing businesses to the new          ing requirements for a facility,   their account. In addition,        absolutely key in Manchester     when exactly is opening day?     only waiting for approval
bank will not be as difficult as   and we will provide them with      almost all of the bank’s servic-   Financial Bank coming to         That is guesswork at this        through FDIC, which is back-
it may seem.                       banking services as part of our    es will be available online.       fruition.                        point, said Mandelbaum.          logged at this time.”
   “We have eight outside          growth strategy. We plan to           The other piece of the puz-       All onsite improvements           “We were approved on May         christine.meade@sddt.com
directors and I am an inside       leverage the relationships we      zle ensuring Manchester            are basically complete and the   14, 2008 by the primary regu-       Source Code: 20080626crf
director. They are all well-       have, including White Tail         Financial Bank will hold its
connected and they know part       Lodge in Idaho and the Grand       own in the banking world,
of their duty is to help the
bank grow and help gather
                                   Del Mar,” said Mandelbaum.
                                   “It’s nice to have a base to
                                                                      Mandelbaum added, is avoid-
                                                                      ing much of the inward focus
                                                                                                         Candy
customers,”       Mandelbaum       work with.”                        of other banks worried about           Continued from Page 2C       French-style chocolates.            Back in Wisconsin, Towne
said. “We have all developed a        Manchester, who owned a         problems such as loan portfo-        Still, he and others say the      “I don’t buy chocolate        has found his own way to
following over the years, and      couple of banks years ago          lios and getting deposits.         largest companies with           every single day,” says          deal with his sweet tooth,
I’ve been in banking for 20-       before selling them, will serve       “We don’t have bad loans        dominant brands should do        Bason, who lives nearby. “So     while trying to keep his
plus years.”                       as chairman of the board and       because we don’t have any          well, as will smaller special-   if I’m treating myself once a    candy budget in check. He’s
   Of the nine directors, seven    will be a major shareholder in     loans, and our focus is out-       ty shops, which make the         week, it doesn’t seem like I     asking friends to sift through
live in La Jolla and five have     Manchester Financial Bank.         ward, ensuring customers get       type of high-end chocolate       really need to cut back          the discount bins at a local
previous commercial banking           “He has always had a bank-      the service they deserve,” he      stay-at-home mom Nancy           because it’s not an everyday     drugstore chain for boxes of
experience, which holds a          ing interest and has been          said.                              Bason seeks out.                 purchase.”                       Chewy       Lemonhead        &
solid promise of drawing local     thinking about starting a new         The bank found a home at          A recent craving prompted         She says she’s much more      Friends, a new favorite that’s
clients. Mandelbaum, who           bank for the past two or three     7825 Fay Ave., Suite 100 in La     her spontaneous visit to         likely to forgo the expensive    a variation on a candy classic.
resides in North County, start-    years. The timing was right        Jolla. Formerly, the location      Sarah’s Pastries & Candies, a    latte, and is also holding          “Pathetic? Perhaps,” Towne
ed with Escondido National         with our facility and executive    was a Commercial Capital           storefront and kitchen in        back on buying clothing and      says of his cost-cutting tac-
Bank in the 1980s. Most            team being available, and it all   Bank that merged with              Chicago’s Lincoln Park neigh-    big-ticket items such as         tics. “But oh so delicious.”
recently, he served as the CEO     dovetailed in August of 2007,”     Washington Mutual and then         borhood that specializes in      appliances.                        Source Code: 20080623faz
6C                                                  THURSDAY, JUNE 26, 2008 •       Investment Opportunities • THE DAILY TRANSCRIPT

When ‘preferred’ holders come second                                                                            Calls for crackdown on oil speculation increase
     By SHEFALI ANAND                 tion-rate preferreds, based on       this amount has been                    By MATTHEW PERRONE                  Saudi Arabia said Sunday         calling for restrictions on
       The Wall Street Journal                                                                                           The Associated Press       it would add 200,000 bar-           speculative trading. The
                                      filings made last year, the lat-     redeemed or is expected to be
   Over recent weeks, some of         est available. He was the            redeemed shortly, according              WASHINGTON                 —    rels per day in July to a           debate spilled over onto the
the biggest closed-end fund           largest investor in one of these     to data from Thomas J.                Lawmakers          highlighted     300,000 barrel per day pro-         campaign trail over the
companies, ranging from               funds as of last August, the         Herzfeld Advisors Inc.                investors’ role in rising oil      duction increase it first           weekend with presumptive
Eaton Vance Corp. (NYSE:              Pimco Corporate Opportunity             Monday,       Eaton     Vance      prices Monday, pointing out        announced in May. But that          presidential contenders Sen.
EV) to Nuveen Investments             fund. Harris has $775,000 in         unveiled a plan to redeem             that speculation in crude          pledge at the meeting held in       Barack Obama, D-Ill., and
Inc. (NYSE: NQM), have                two Allianz closed-ends, one         about $310 million in auction-        futures has nearly doubled         the Saudi city of Jeddah fell       John McCain, R-Arizona,
unveiled plans to redeem their        from Pimco and another from          rate preferreds for 15 of its         since 2000.                        far short of U.S. hopes for a       sparring over who would be
auction-rate preferred securi-        Nicholas-Applegate.                  municipal funds. This move               Pension funds, Wall Street      larger increase.                    tougher on policing energy
ties, allowing frustrated                A Pimco spokesman said            brings Eaton Vance’s redemp-          banks and other large                 “Make no mistake about it,       futures markets.
investors to cash out.                employees’ personal holdings         tion total to $3.6 billion, or 72     investors that have no inten-      the excessive speculation in          House Democrats on
   But some other prominent           “play no role whatsoever in          percent of its amount out-            tion of taking delivery of fuel    commodity markets is hav-           Monday suggested a range of
closed-end fund companies,            the firm’s search for an appro-      standing as of February.              have increasingly pumped           ing a devastating effect at the     actions, including: higher
like Pimco (NYSE: PHK), are           priate and sustainable solu-            Meanwhile, funds like              money into contracts for oil       gas pump that is rippling           margin requirements, stricter
not rushing to redeem auc-            tion.” To say otherwise, it          Pimco are giving no indica-           and other commodities as a         through our entire economy,”        position limits and increased
tion-rate preferreds, because         added, “is outrageous.”              tion how quickly they will            hedge against inflation when       said Rep. Bart Stupak, D-           disclosure of unregulated
cashing out this quasi-debt              Auction-rate preferreds are       move to help preferred                the dollar falls.                  Mich., who chaired the hear-        over-the-counter trades.
would hurt the funds’ com-            long-term securities that            investors. A Pimco spokesman             After more than a half          ing of a House Energy and             House       and       Energy
mon shareholders. Funds               functioned like short-term           wrote in a statement that the         dozen hearings in Congress         Commerce Subcommittee.              Committee Chairman John
function like stand-alone             investments. When the mar-           company is “working diligent-         on the issue, Democratic              But Rep. Joe Barton, R-          Dingell, D-Mich., said those
companies, with common                ket was working as intended,         ly” to find a solution that “rec-     House lawmakers said they          Texas, said insufficient sup-       measures and more “need to
shareholders and debtholders.         rates would be reset at weekly       onciles the competing consid-         intend to tighten restrictions     ply is the main driver behind       be debated, evaluated, and
As of now, Pimco and its              or monthly auctions, and             erations facing common and            on pension funds, invest-          rising energy prices. He            acted on, sooner rather than
cohorts appear to be favoring         investors could sell the securi-     preferred shareholders.”              ment banks and other large         called for increased domestic       later.”
investors in the common.              ties there. In February, as the         The big problem here for           investors which they blame         production of oil, natural gas        At a hearing Tuesday, Sen.
   So their preferred holders         credit crunch worsened, buy-         fund managers is that replac-         for driving up fuel prices.        and coal.                           Joe Lieberman, D-Conn., is
may have to wait months or            ers for these securities van-        ing the auction-rate debt with           Many Republicans, ana-             Speculators have increased       expected to explore his pro-
even years before they can            ished.                               other leverage likely would be        lysts and regulators, howev-       their share of oil futures con-     posal to ban pension funds
cash in. For closed-end funds,           Holders of auction-rate pre-      more expensive, and that              er, say soaring oil prices are a   tracts on the New York              and other institutional
issuing auction-rate pre-             ferreds are left in limbo by         could eat into fund earnings.         reflection of macro-econom-        Mercantile Exchange to 71           investors    from       futures
ferreds adds leverage that can        fund houses like Pimco and           It is too early to measure what       ic factors, including the          percent this year, up from 37       exchanges altogether.
juice returns, a potential boon       Neuberger       Berman.      Ed      the extent of this may be,            falling dollar, unrest in the      percent in 2000, according            In prepared testimony,
to investors in the funds’ com-       Dowling, 53 years old, of            though.                               Middle East and increased          to figures released by              New      York      Mercantile
mon.                                  Huntington Station, N.Y.,               Plus, auction-rate financing       demand from countries like         Stupak’s office. At the same        Exchange Chief Executive
   Allianz SE ’s (NYSE: AZ)           owns preferreds issued by five       has the virtue of longer matu-        China and India.                   time contracts held by tradi-       James Newsome said limits
Pimco       and       Nicholas-       fund companies. Neuberger            rities than bank loans and               Oil futures prices rose         tional oil users have fallen to     on oil trading are “misguid-
Applegate funds, Lehman               Berman is the only one that          bonds typically have. The             $1.73 to $137.09 a barrel on       less than 30 percent from           ed.” Such restrictions would
Brothers Holdings Inc. ’s             has stayed silent on redemp-         funds that have replaced the          disappointment over Saudi          over 60 percent.                    drive large investors toward
(NYSE: LEH) Neuberger                 tions. He holds $300,000 in          preferreds with bank borrow-          Arabia’s modest production            Lawmakers have cited the         less transparent, less regulat-
Berman funds, Bank of New             Neuberger’s preferreds, and          ings run the risk the bank may        increase and concerns that         pain prices are causing air-        ed markets, doing more
York Mellon Corp.’s (NYSE:            he worries that he could be          charge a higher rate to extend        output from Nigeria will           lines, trucking companies,          harm than good.
BK) Dreyfus funds, and                stuck in them for a long time.       that loan, or it may not extend       decline.                           farmers and consumers in               Source Code: 20080623fv
Pioneer Investments are                  “What if Lehman goes              at all.
among the prominent closed-           under? What happens to                  Many of the closed-end
end operations that have not          Neuberger? What happens to           funds      that      have     not
announced plans to redeem
auction-rate preferreds. They
                                      me?” Dowling asks. He is con-
                                      sidering selling the securities
                                                                           announced           redemptions
                                                                           invest in municipal bonds,
                                                                                                               Investors hide as banks come knocking
have a total of $7.6 billion of       in the secondary market, even        and it has been more complex               By ROBIN SIDEL                sweeter terms, further raising      New York Stock Exchange.
auction-rate preferred among          if it means getting 90 cents on      to refinance these, says Cecilia           The Wall Street Journal       the costs of doing these deals.        “Obviously, the investors
them.                                 the dollar. “I don’t want to         Gondor of Thomas Herzfeld.             Once bitten, twice shy.              Before announcing plans          who jumped in early are down
   Pimco’s closed-end funds           wait and bite my fingernails,”       These funds pay a lower inter-         As banks rack up billions of      earlier this month to raise $1.5    materially, but I don’t feel by
have some powerful common             he says. Neuberger says it is        est rate on their auction-rate      dollars in losses from bad           billion, KeyCorp (NYSE:             any measure that the market
shareholders, including leg-          “actively pursuing a broad           preferreds than a taxable           loans and blundered invest-          KEY), of Cleveland, quietly         is closed or dead,” says John
endary bond-fund manager              solution” it expects to              fund, and replacing that with       ments, large investors are           reached out to more than a          Duffy, chief executive and
Bill Gross and Pimco Funds’           announce “near-term.”                bank debt would be very cost-       becoming skittish about              dozen of its largest institu-       chairman of KBW Inc., a bou-
chairman, Brent Harris.                  In February, when the auc-        ly. To address this, firms like     pumping more money into              tional shareholders to gauge        tique investment firm in New
   According to data from             tion-rate market melted              Eaton Vance and Nuveen              them.                                their interest in participating     York that is advising a number
FactSet Research Systems              down, there were about $64           Investments        have    made        In the past several weeks,        in a transaction, according to      of financial institutions on the
Inc., Gross has about $43 mil-        billion of these securities          attempts to create new securi-      bank executives have encoun-         people familiar with the mat-       prospects of raising additional
lion in nine Pimco closed-end         issued by closed-end funds.          ties to replace auction-rate        tered unexpected resistance          ter. A number of those              capital. Duffy attributes much
funds, which have issued auc-         Now, around 31 percent of            preferreds in municipal and         from investors, who have             investors rebuffed the offer,       of the recent decline in stock
                                                                           other closed-end funds.             expressed reluctance to par-         expressing concern about            values to “the sentiment that
                                                                              Funds that have not              ticipate in the capital-raising      their existing exposure to the      the banks didn’t raise enough
  The Daily Transcript presents:                                           redeemed,              including    transactions          sweeping       poor banking environment,           capital and will be back to the

  Soaring Dimensions
                                                                           Neuberger Berman, Pioneer           through the industry, accord-        these people said. KeyCorp’s        market at even lower prices.”
                                                                           Investments and Dreyfus             ing to people familiar with the      stock price fell 24 percent            When Joseph Fenech went
                                                                           funds, are mostly mum on            situation. Already bruised by        when it announced the capi-         on the road with the manage-
                                                                           their plans to help preferred       big losses and fearing that          tal-raising deal. It is down 3.8    ment of Sterling Financial
  August 28, 2008                                                          holders. In a recent notice,        bank shares haven’t yet hit          percent since then.                 Corp. (Nasdaq: STSA) of
                                                                           Neuberger Berman said that          bottom, some of these                   A KeyCorp spokeswoman            Spokane, Wash., recently, the
                                                                           while it is looking at various      investors are choosing to            declined to comment.                banking analyst at Sandler
                                                                           options, “a critical part of our    tighten their purse strings.            Dozens of Wall Street firms      O’Neill & Partners LP in New
                                                                           efforts is the full recognition        “The window for capital-          and commercial banks have           York was surprised to hear a
                                                                           of, and focus on, the best          raising is closing,” says Brad       raised capital, and many more       number of investors discour-
                                                                           interests of all of our Fund        Evans, a portfolio manager for       financial institutions are          age Sterling executives from
                                                                           shareholders.”                      Heartland Advisors Inc. , a          expected to follow the same         raising capital “on the basis
                                                                              In a press release Thursday,     money-management firm in             path in coming months, par-         that the marketplace does not
                                                                           Dreyfus said it was mulling         Milwaukee that invests in            ticularly as regulators clamp       seem to be rewarding the
                                                                           options, but it did not specify     small,      regional      banks.     down on these institutions to       additional capital cushion.”
                                                                           a solution. A spokesman for         “Investing in a bank right now       ensure they have adequate              A spokeswoman for Sterling
                                                                           Pioneer Investments said the        means investing in a large           capital levels to withstand the     declined to comment, citing
                                                                           company plans to merge one          portfolio of loans that are          credit crunch.                      the pending release of the
                                                                           of its municipal-bond closed-       essentially a black box.”               That is particularly the case    bank’s earnings next month.
                                                                           end funds into an open-end             The change in sentiment           for small, regional banks and          In a recent report, Fenech
                                                                           fund, which would help              could have sweeping implica-         mom-and-pop lenders just            attributed the slides in the
                                                                           redeem a fifth of its outstand-     tions for financial institutions     starting to be hit hard by loss-    share prices of banks that
                                                                           ing auction-rates. He did not       that are trying to shore up          es in their real-estate and con-    recently raised capital partly
                                                                           specify if the company would        their balance sheets by issuing      struction-loan        portfolios.   to skepticism as “investors
                                                                           pursue this option for the          stock and other securities to        With so many banks already          began to assess the possibility
                                                                           remaining preferreds.               their investors. Some may be         having gone hat in hand to          that many companies would
                                                                               Source Code: 20080626crj        forced to lure investors with        shareholders, these financial       soon be back to the well for
                                                                                                                                                    institutions ultimately may be      additional capital and/or
                                                                           Fall                                                                     forced to deal with a limited
                                                                                                                                                    pool of investors who still
                                                                                                                                                                                        began to more fully digest the
                                                                                                                                                                                        massive dilution associated
                                                                                Continued from Page 4C           The Shanghai index is still        would be willing to pump in         with these actions.”
                                                                              This situation poses a           at double its July 2005 level,       money.                                 The latest test of investor
                                                                           dilemma for policy makers.          so some investors remain in             Investors have good reason       fortitude:          BankUnited
                                                                           The typical response to high-       good shape. Still, more than         to be skittish. Most of the         Financial Corp. (Nasdaq:
                                                                           er inflation is tighter credit,     90 percent of individual             banks that issued new securi-       BKUNA), a Coral Gables, Fla.,
                                                                           but that would slow growth.         investors report they have           ties in recent months have          bank announced late last
                                                                           Policy makers could allow           lost money since January             continued to see their share        Wednesday a $400 million
                                                                           their currencies to strengthen      2007, according to a poll by         prices slide, some by 40 per-       public offering. Terms of the
  The 27th Annual Edition of Soaring Dimensions goes online and            faster to stem import infla-        government         broadcaster       cent or more. That means            deal weren’t disclosed, but
  print on Thursday, August 28th – featuring in-depth coverage of the      tion — but that could hurt          CCTV.                                investors who bought into           BankUnited’s stock-market
  county’s real estate and construction developments.                      exports. Beijing last week            India is still up 55 percent       those transactions are far          value is less than $100 mil-
                                                                           took steps to allow highly          from the start of 2006, but it       underwater. And existing            lion.
  Find out what’s going on in North County, South County, East             regulated domestic fuel             has its own concerns. Where          investors who didn’t bite have         BankUnited shares plunged
  County, Central San Diego, Southwest California and Imperial             prices to rise, which could cut     2007 was a bumper year for           had their holdings diluted by       19 percent, or 45 cents, to
  County all in one place.                                                 into corporate profit margins       India initial public offerings,      the issuance of piles of new        $1.90, in trading the following
                                                                           and squeeze consumers.              these days such deals are get-       shares.                             day, and an additional 12 per-
  Special topics include: environmental issues and green building,
                                                                              The Chinese government           ting a cold reception. Since            “Investors are tired of trying   cent on Friday.
  leasing space and infrastructure plans, real estate & development,
                                                                           might also take further steps       the listing of Reliance Power,       to catch a falling knife,” says        Growing queasiness could
                                                                           to arrest the stock market’s        India’s biggest IPO, the mar-        one investment banker who           force some banks to downsize
  high-tech clusters and design innovation. Take a closer look at local
                                                                           slide, as it did in April when it   ket has turned sour and other        specializes in the financial-       their capital-raising ambi-
  expansion and renovation projects, ongoing and new plans. Keep
                                                                           lowered the tax on stock            high-profile IPOs have been          services industry.                  tions. That is how some ana-
  yourself up-to-date on the latest industry issues and the hottest new
                                                                           transactions.                       shelved. “The market has fall-          Even the smart money isn’t       lysts and investors interpreted
  trends.
                                                                              China’s stock decline has        en so sharply that I would           looking so smart. In April, pri-    the actions of Fifth Third
                                                                           sparked comparisons with            hope any positive triggers           vate-equity firm TPG and            Bancorp (Nasdaq: FITB),
  This publication lands directly into the hands of 50,000+ business
                                                                           the implosion of the tech-          would at least create a bot-         other investors agreed to           which last week said it would
  readers countywide, in print and online at sddt.com.
                                                                           stock bubble in the United          tom,” says Punita Kumar-             pump       $7     billion    into   raise $1 billion through an
                                                                           States. Late last year, the         Sinha, a senior managing             Washington Mutual Inc.              offering of convertible pre-
  Take credit for your company’s contributions to San Diego’s success by   country’s big oil company,          director at Blackstone Group         (NYSE: WM) in a transaction         ferred stock and sell $1 billion
  advertising in the largest, most anticipated issue of the year.          PetroChina, was briefly val-        (NYSE: BX) who manages $2            that valued their investment        in assets. The Cincinnati bank
                                                                           ued at more than $1 trillion.       billion in a mutual fund             at $8.75 a share. The deal rep-     also cut its dividend for the
  Call 619.232.4381 or e-mail sales@sddt.com today!                        Now it is valued closer to          focused on India.                    resented a discount to the          first time in three decades.
                                                                           $400 billion, demonstrating                                              bank’s share price of about            “The decision we made
  Ad space closes: August 6, 2008                                          even high oil prices aren’t           Bai Lin and Tariq Engineer         $13 at the time.                    speaks for itself,” a Fifth Third
  Artwork due: August 8, 2008                                              enough to hold up Chinese           contributed to this article.            Not anymore. WaMu’s stock        spokesman said.
                                                   www.sddt.com
                                                                           stocks.                               Source Code: 20080626cri           closed Friday at $6.38 on the          Source Code: 20080626crk
                                                                   THURSDAY, JUNE 26, 2008 •                   Investment Opportunities • THE DAILY TRANSCRIPT                                                                                                                       7C

                                                                                                   Halozyme Therapeutics Inc. : SEC documents showed
                                                                                                Director and Ben. Owner Randal Kirk purchased 741,695                                  Monsanto profit climbs
                 Daily Digest                                                                   shares at $5.51 to $5.93 per share on Monday.
                                                                                                   ideaEDGE Inc.: Company announced that Joe Abrams has
                                                                                                joined its Board of advisors.
                                                                                                   Novatel Wireless Inc.: Company announced the successful                             42% on broad sales rise
                                                                                                completion of interoperability testing for the Expedite PCI                                          By JIM SALTER                         still nearer the high end of their
                                        The Daily Transcript                                    Express Mini Card Embedded Module on NTT Docomo’s                                                    The Associated Press                  52-week range of $58.50 to
  Editor’s note: The Daily Digest intends to help readers track                                 3G/HSDPA network in Japan.                                                                ST. LOUIS — Monsanto Co.’s                       $145.80.
major announcements made by and about companies on the                                             Tri-Isthmus Group Inc.: Company announced that it is                                (NYSE: MON) profit soared 42                           For the first nine months of
San Diego Stock Exchange Index. The Daily Digest tracks                                         bringing its advanced diagnostic technology to the rural                               percent in its third quarter on a                   the fiscal year, Monsanto
announcements and SEC filings released from midnight until 4                                    Oklahoma communities of Stroud, Chickasha and Anadarko.                                strong      performance        by                   earned $2.2 billion, or $3.93
p.m., or three hours after the stock markets close. To see how                                     Vical Inc.: Company announced it has successfully completed                         Roundup herbicide and by its                        per share, up from $1.2 billion,
companies on the San Diego Stock Exchange Index performed,                                      first-year milestones under a three-year, $6 million grant                             seeds and traits business. The                      or $2.18 per share, a year ago.
see below.                                                                                      awarded in 2007 and is advancing with its DNA vaccine, with                            company also boosted its earn-                      Nine-month sales were $9.47
                                                                                                the potential to produce several million doses of vaccines in a                        ings guidance for the year.                         billion, up 35 percent from
  DEI Holdings Inc.: Company announced Executive Vice                                           matter of days.                                                                           But its shares fell more than                    $6.99 billion.
President and CFO Kevin Duffy will present at the                                                  WD-40 Co.: Company announced a conference call to discuss                           4 percent in morning trading as                        Earnings per share results for
Oppenheimer eighth annual Consumer Growth Conference,                                           quarterly earnings on July 2.                                                          its revenue for the quarter came                    the first nine months were
July 8 in Boston.                                                                                                                   Source Code: 20080625tbg                           in below expectations.                              affected favorably by 23 cents
                                                                                                                                                                                          The St. Louis-based company                      per share after tax from the set-
Market Report                                                                                                                                                                          said Wednesday that it earned
                                                                                                                                                                                       $811 million, or $1.45 per share,
                                                                                                                                                                                                                                           tlement of Monsanto’s claim
                                                                                                                                                                                                                                           related to the emergence from
         Continued from Page 1C                       ter will be $3.2 billion to $3.3          attractive entry point,” he                     Boeing Co. (NYSE: BA)                  in the three months ended May                       bankruptcy of Solutia, the
analysts’ full-year earnings                          billion and per-share profit              wrote in a note to clients. The               slumped $5.15, or 6.9 percent,           31, up from earnings of $570                        chemical maker that spun off
estimates are “reasonable” and                        excluding some items will be              stock had fallen 11 percent in                to $69.64, its steepest drop             million, or $1.02 per share, in                     from Monsanto in 1997.
the company is on course for a                        29 cents to 33 cents, the com-            the past month. Moffett                       since August 2002 and the                the same period a year ago.                            Hugh Grant, president and
“significant” increase in profit.                     pany said. Analysts projected             reduced his price estimate to                 steepest loss in the Dow. The               Sales rose 26 percent to                         chief executive officer, called
   Bank shares erased most of                         sales of $3.19 billion and prof-          $42 from $44 to “reflect the                  second-biggest defense con-              $3.59 billion, up from $2.84                        the nine-month performance
an earlier rally, limiting the                        it before some items of 28                broader pullback in the equity                tractor was downgraded to                billion.                                            “remarkable.”
market’s jump, on the central                         cents, on average.                        markets overall.”                             “sell” from “neutral” at                    Monsanto cited increased                            “This strong growth sets up a
bank’s assessment that “finan-                           “We’re seeing increasing                  The Fed’s Open Market                      Goldman Sachs Group Inc.                 sales of Roundup and other                          solid foundation for our busi-
cial markets remain under                             demand among all our cus-                 Committee said that inflation                 (NYSE: GS) The brokerage                 glyphosate-based herbicides                         ness to reach our target of more
considerable stress.” Apple                           tomers” in the mobile-phone               is becoming a serious problem                 also added the shares to its             globally; increased revenue                         than doubling gross profit in
Inc. (Nasdaq: AAPL), General                          market, Jabil Chief Financial             and, therefore, ended its                     “conviction sell” list, citing           from soybean, corn and cotton                       2012,” Grant said in a state-
Electric Co. (NYSE: GE) and                           Officer Forbes Alexander said             series of interest rates cuts                 “continued weakness in the               seed and traits revenue in the                      ment. “Because we’re both dis-
Wal-Mart Stores Inc. (NYSE:                           on a conference call.                     that     started     back     in              economy, continued high fuel             U.S.; and higher corn seed rev-                     covering and delivering innova-
WMT) helped lead the                                     Motorola Inc. (NYSE:                   September. The Fed funds                      prices” in a note to clients             enues in Europe and Africa.                         tive tools that can help increase
advance as the Fed said the                           MOT) rose 17 cents to $7.52.              rate remained at 2.00 percent                 Wednesday.                                  Analysts polled by Thomson                       productivity on farm, we offer
economy is still expanding.                           Texas      Instruments      Inc.          and the possibility of higher                   Rockwell Automation Inc.               Financial projected earnings of                     an attractive solution to the
   Apple advanced $4.14 to                            (NYSE: TXN), the second-                  rates is not being ruled out.                 (NYSE: ROK) tumbled $6.42,               $1.34 per share on higher rev-                      farmer and their mission of
$177.39. GE rose 40 cents to                          largest maker of processors                  The Energy Department                      or 12 percent, to $45.77 for the         enue of $3.71 billion.                              meeting our world’s growing
$27.99. Wal-Mart added 80                             used in mobile phones,                    reported a large increased in                 biggest loss in the S&P 500.                Monsanto raised its full-year                    food, feed and fuel needs.”
cents to $58.12.                                      increased 66 cents to $29.69.             oil supplies in the past week,                The world’s largest maker of             guidance. The company now                              Monsanto spokesman Lee
   Jabil Circuit Inc. (NYSE:                             AT&T Inc. (NYSE: T)                    ending seven weeks in a row of                factory automation products              expects a profit of $3.40 per                       Quarles said the DeKalb brand
JBL), the maker of mobile                             climbed for the first time in             declines. That led to a $5 drop               said full-year earnings will             share excluding discontinued                        of corn seed products could see
phones for Nokia Oyj (HEL:                            eight days, rising 20 cents to            in crude prices. However, at                  trail its forecast of $4.25 to           operations      and     one-time                    2-3 percentage point share
NOK1V), climbed the most in                           $34.47. Sanford C. Bernstein              the close oil was down just                   $4.45 a share on slower-than-            charges, and $3.63 per share                        growth once final returns are
six years after forecasting                           & Co. analyst Craig Moffett               $2.45 to $134.55 a barrel. It                 expected growth in the United            overall. The company previously                     in. The American Seeds Inc.
earnings that topped analysts’                        lifted his recommendation to              has traded as low as $132.03.                 States and Europe.                       projected overall full-year earn-                   brands could see percentage
estimates. Jabil rose $2.24, or                       “outperform” from “market-                   Crude      prices,    which                                                         ings of $3.38 to $3.48 per share.                   growth of 1-2 percent. And in
16 percent, to $16.57 for the                         perform.”                                 reached a record $139.89 on                      Bloomberg News con-                      Its shares fell $5.79, or 4.3                    Argentina, Monsanto’s brand
biggest gain since May 2002.                             “The recent weakness in                June 16, have almost doubled                  tributed to this report.                 percent, to $130 in morning                         increased 5 percentage points.
Revenue for the fourth quar-                          AT&T shares provides an                   from a year ago.                                  Source Code: 20080625tb              trading Wednesday. They are                              Source Code: 20080625fn



                                                                                                San Diego Stock Exchange
                                                                               Volume 52-Week                                                                         Volume 52-Week                                                                                    Volume 52-Week
  Company                      Ticker        Close      Change    in 1,000’s    High    Low     Company                     Ticker   Close    Change     in 1,000’s    High    Low     Company                      Ticker       Close     Change        in 1,000’s      High    Low
  1st Pacific Bancorp CA        FPBN          7.50       0.00        0.00       15.50    7.27   IdeaEdge Inc                 IDAE     1.90      0.28       531.44       1.90    0.47   Remote Surveillance Tech        RSUV       0.01       0.00           0.00          0.58     0.00
  Acadia Pharma                ACAD           4.02       0.07      248.36       17.33    3.73   Illumina                     ILMN    84.88      2.19     1,133.05      85.34   38.61   ResMed                          RMD       34.53       0.34       1,454.82         54.58     33.45
  Accelrys                      ACCL          5.13       -0.07      51.64        8.24    5.08   Imagenetix                   IAGX     0.65      0.00        47.70       1.50    0.51   R.F. Industries                 RFIL       7.50       0.25          10.06          8.50     5.20
  Actis Global Ventures         AGLV          0.00       0.00      925.00        0.01    0.00   Imageware Systems           IWSY      0.74      0.04        15.25       2.35    0.25   Royale Energy                   ROYL      12.00       -1.15      3,690.63         14.70     2.18
  Adventrx Pharma               ANX           0.35       -0.04     302.07        2.85    0.33   Imcor Pharma                 ICRP     0.01      0.00         1.30       0.03    0.01   Rubios Rest                     RUBO       5.18       0.18           4.80         12.02     4.55
  Aethlon Medical              AEMD           0.41       -0.01      33.50       0.88     0.38   ITLA Capital                  IMP     6.71     -0.25       110.75      54.48    6.56   SAIC Inc                         SAI      20.56       0.13       2,052.98         21.90     16.11
  Akesis Pharma                 AKES          0.71       -0.04      10.00        1.05    0.38   Infosonics                   IFON     0.81     -0.02         8.45       3.80    0.81   San Diego Trust Bk              SDBK      16.50       0.00             .40        34.50    16.50
  Aldila                        ALDA          6.00       -0.21       17.23      18.36    5.73   Inovio Biomedical             INO     0.97     -0.02       54.82        3.22   0.50    Santarus                        SNTS       2.29       0.11         231.81          5.83      1.78
  Alliance Pharma               ALLP          0.02       0.00        4.57        0.10    0.01   Intl Lottery                  ITSI    0.39      0.00        0.00        0.90    0.26   Seacoast Commerce Bk            SCCB       8.44       0.00           0.00         10.95     8.05
  Alphatec Holdings Inc         ATEC          4.26       -0.09       74.15       6.53    3.32   Invitrogen                   IVGN    39.86      0.63     2,735.48      49.58   35.12   Security Asset                  SCYA       0.00       0.00           0.00          0.01     0.00
  American Tech                 ATCO          1.46       -0.12      91.05       4.50     1.43   Ipex                         IPEX     0.00      0.00        0.00        0.01   0.00    Security Business Bk            SBBK      11.25       0.00           0.00         19.80     11.25
  Amistar                      AMTA           0.18       0.00        0.00        1.03    0.11   ISIS Pharma                   ISIS   13.95     -0.23     1,202.03      20.15    9.03   Sempra                           SRE      55.98       0.56       2,022.31         64.21    48.58
  AMN Healthcare                AHS           17.31      0.49      305.08       22.63   14.25   Jack in the Box               JBX    24.45      0.89       937.66      36.85   22.57   Senomyx                      SNMX          4.77       0.29         185.69         14.00     4.35
  Amylin Pharma                AMLN          26.27       0.37     1,374.57      53.25   23.75   Javo Beverage                JAVO     0.75      -0.01       42.75       1.55    0.42   Sequenom                     SQNM         15.94       1.69       4,246.95         16.89     4.25
  Anacomp                      ANCPA          0.00       0.00        0.00        7.35    0.20   JMAR Tech                   JMAR      0.21      0.00        25.43       0.28   0.04    SGX Pharma                      SGXP       1.36      -0.03            3.48         7.95      1.18
  Anadys Pharma                ANDS           2.28       -0.11      44.36        4.10    1.36   Kintera                      KNTA      1.11     0.00        22.43       2.83    0.20   Somaxon Pharma               SOMX          4.22       -0.19          27.19        13.25     3.69
  Arena Pharma                 ARNA           4.87       0.04      928.34       14.78    4.55   Kratos Defense & Security    KTOS      1.97     0.00       120.63       3.09    1.44   Sound Health Solutions Inc SHSO            0.04       0.00           0.00          0.13     0.02
  Armor Electric               ARME           0.02       0.00        0.00        0.07    0.01   La Jolla Pharma              LJPC      1.93     0.01        11.31       5.59    1.45   SpaceDev                        SPDV       0.63       0.03            1.25         1.06     0.51
  Artes Medical Inc             ARTE          1.39       0.03       50.19        8.37    0.75   Lancer Ortho                 LANZ      1.01     0.00        0.00        1.75    0.55   Steakhouse Partners             STKP       0.00       0.00           0.00          0.33     0.00
  Ashworth                     ASHW           3.37        0.01       11.85       7.53    2.47   Leap Wireless Intl           LEAP    46.47      -1.81    2,218.48      99.04   29.87   Surge Global                    SRGG       0.07       0.01            1.82         0.44     0.05
  Axesstel                       AFT          0.87       0.00       25.10        1.44    0.19   Ligand Pharma                LGND     2.71      0.16      346.29        7.36    2.16   SYS Technologies                 SYS       2.42       0.04          28.46          2.52     1.30
  Bakbone Software             BKBO           0.91       0.06       10.60        1.69    0.60   Lpath                        LPTN     1.30      0.00        2.00        2.54    1.26   Telanetix                       TNXI       0.53       0.04           9.35          5.20     0.48
  BioMed Realty                 BMR          25.34       0.59     1,027.72      27.75   19.32   Mad Catz Interactive          MCZ     0.67      0.02       161.29       1.50    0.55   Tri-Isthmus Group               TISG       0.52       0.00           0.00          0.90     0.26
  BofI Holding                  BOFI           7.45      -0.10       5.70        8.19    5.20   Maxwell Tech                MXWL     11.52     -0.06        73.40      16.50    7.10   US Microbics                    BUGS       0.00       0.00       1,942.50          0.01     0.00
  Cal-Bay Intl                  CBAY          0.00       0.00    28,677.85      0.00     0.00   Medicinova Inc              MNOV      4.89      0.07        15.90       9.02    3.27   US Farms                        USFI       0.10       0.01          12.00          0.90     0.05
  California Community Bk      CABK          13.65       0.00        0.00       16.60   12.25   Meltronix                   MTNX      0.00      0.00        0.00        0.01   0.00    Verenium Corp.               VRNM          1.78       -0.21        366.52          6.98      1.75
  Callaway Golf                  ELY         12.17        0.11     795.04       19.49   11.88   Metabasis                   MBRX      1.49     -0.02        18.85       7.77    1.40   ViaSat Inc                      VSAT      21.20       0.25         141.64         36.49    19.06
  CardioDynamics Intl           CDIC          1.62       0.00        12.11       5.32    0.70   MicroIslet                   MIIS     0.27      0.00        0.00        0.74    0.23   Vical Inc                       VICL       3.39       0.06          26.63          5.69     3.00
  Cardium Therapeutics          CXM           2.36       -0.01       9.30        3.19    1.50   Micromet                     MITI     2.74      0.00        89.74       2.95    1.22   Viper Networks                  VPER       0.00       0.00           5.58          0.01     0.00
  Charlotte Russe               CHIC         18.34       0.96      291.00       27.32   12.27   Miracor Diag                MRDG      0.00      0.00        0.00        0.01   0.00    Vyrex                           VYXC       2.70       0.00           0.00          2.75     0.30
  China Stationery              CSOF          0.08       0.00        0.00        0.51    0.05   Mitek Systems                MITK     0.42      0.00        0.00        0.70    0.15   WD-40                        WDFC         31.23       0.51          74.38         42.70    28.91
  Cohu                         COHU          15.64       0.03      242.26       23.70   13.27   Molecular Imaging            MLRI     0.00      0.00        0.00        0.01   0.00    Websense                     WBSN         17.87       0.27         479.14         23.10     15.43
  Com-Guard.com                CGUD           0.01       0.00      140.00        0.01    0.00   Nanogen                      NGEN     0.42      0.00       212.58       1.65    0.27   Whos Your Daddy                 WYDI       0.26       0.02          14.29          4.92     0.13
  Coronado First Bank           CDFB          8.50       0.00          .40      12.00    7.60   Natural Alt                  NAII     8.00      0.24          .50       9.20    5.64   World Waste Tech            WDWT           0.24       0.08             .55         0.95     0.10
  Cubic                          CUB         21.54       -0.19      141.25     50.68    21.26   Naturewell                  NAWL      0.00      0.00        0.00        0.00   0.00    Xenonics                         XNN       1.25      -0.07          26.15          2.65     1.25
  CyberZone                     CYZN          0.00       0.00        0.00                       Neurocrine Bio               NBIX     4.51      0.11       124.45      13.07    4.11
  Cymer                         CYMI         27.98        0.61     338.82       44.73   22.86   NexPrise                     NXPS     0.80     -0.05         2.40       0.85    0.12                          San Diego Stock Exchange
                                                                                                                                                                                       One month
  Cypress Bio                   CYPB          7.88       -0.10     289.55       15.60    6.17   Nextwave Wireless Inc       WAVE      4.50      0.09       277.60       9.55    3.28
  Cytori                        CYTX          6.78       0.00      272.40        8.56    4.62   Nitches                      NICH     1.23      0.00        0.00        4.17    0.99      140
  Dalrada Financial             DFCO          0.06       0.00        0.00        0.70    0.03   No Borders                   NBDR     0.00      0.00        14.00       0.03   0.00
  Directed Electronics          DEIX          1.50       0.03      109.62        9.06    0.99   Novatel Wireless             NVTL    12.32      0.37     1,554.69      29.14    7.42
  Dexcom                       DXCM           6.88       -0.29      98.01       10.91    3.69   NTN Comm                      NTN     0.30     -0.02       113.14       1.12    0.26      130
  Digirad                      DRAD           2.25       0.03        4.90        4.68    2.05   NuVasive                     NUVA    44.40      0.75       325.71      46.06   25.65
  Discovery Banc                DVBC          8.75       0.00        3.50       16.39    8.30   NW Tech Capital Inc         NWTT      0.00      0.00       110.00       9.50   0.00
                                                                                                                                                                                          120
  DivX Inc                      DIVX          8.01       0.10      170.76       19.35    6.12   One Voice Tech               ONEV     0.01      0.00     1,114.25       0.03    0.01
  Dot Hill Systems              HILL          3.02        0.14     105.33        4.12    2.12   Onsite Energy                ONSE     0.08      0.00        0.00        0.10   0.04
  Duska Therapeutics Inc       DSKA           0.45       0.00        0.00        0.74    0.16   Open Energy                  OEGY     0.21      -0.01      247.15       0.83    0.20
                                                                                                                                                                                          110
  e.Digital                     EDIG          0.10       0.00      423.52        0.23    0.08   Orange 21                   ORNG      3.70      0.00        0.00        6.76    3.20
                                                                                                                                                                                                   5/28                6/4               6/11              6/18                  6/25
  Encore Capital                ECPG          9.05       0.09      141.02       12.81    6.10   Overland Storage             OVRL     1.07      0.00         4.89100000.00      0.93
  Enterprise Informatics Inc    EINF          3.75       0.00        0.00      195.00    3.75   PacWest Bancorp             PACW     16.05      0.35      402.77       64.00   15.01
  EntrePort                     EPCN          0.02       0.00        0.00       0.06     0.00   Path 1 Network               PNOT     0.00      0.00        0.00        0.02   0.00
                                                                                                                                                                                                                         Market Analysis
  Favrille                      FVRL          0.06       0.00      388.88        3.87    0.05   Patriot Scientific           PTSC     0.21      0.02      646.49        0.94    0.17
                                                                                                                                                                                                                  San Diego Stocks Index: 118.33       0.95%
  First PacTrust Banc           FPTB         13.50       0.00        2.25       26.35   12.87   Phoenix Footwear              PXG     1.60      0.05          .50       4.45    1.10                        $ Gainer          Illumina                                 2.19
  Freedom Environmental Svc FESI              0.91       -0.09        9.13       2.60    0.14   Pico Holdings                PICO    44.45      0.55       102.72      48.87   28.62                         $ Loser          Leap Wireless Intl                      -1.81
  Gen-Probe                     GPRO         49.77       0.29       313.75      71.84   44.82   Planet Biopharmaceuticals IncPBPH     0.15      0.00        0.00        4.00    0.15                        % Gainer          World Waste Tech                      50.00%
                                                                                                                                                                                                             % Loser          Verenium Corp.                        -10.55%
  Genoptix                      GXDX         30.92       -0.04      151.78      37.88   17.00   Pricesmart                  PSMT     23.23      0.78       64.58       33.67   19.17
  Glacier Water                GWSV          47.00       0.00        0.00      60.00    33.00   Protein Polymer              PPTI     0.04      0.00        0.00        0.21    0.03                              33          issues down
  Greenzap                      GZPI          0.20       0.00        2.80       0.80     0.06   Pure Bio                     PURE      4.11     0.14        81.51       8.72    2.58                              61          issues up
  Halozyme                      HALO          5.58        0.15     231.02       10.50    4.19   Qualcomm                    QCOM     47.16      0.89    24,580.28      50.82   35.17                             65           issues unchanged
                                                                                                                                                                                                                159           stocks are listed
  Hat Trick Bev                 HKBV          0.00       0.00    4,904.88        0.01    0.00   Quidel                       QDEL     17.66     0.43        75.66      21.07   12.95
                                                                                                                                                                                                           $2,237.19          is the total price for all stocks today
  Hollis-Eden Pharma            HEPH          1.63       0.05       40.56        2.87    1.40   Realty Income                   O    23.42      0.00     1,247.22      30.70   20.27
                                                                                                                                                                                       San Diego Stock Exchange designed by The Daily Transcript. Information
  Homefed                       HOFD         46.00       -1.00         .52     68.00    45.00   Remec                       REMC       1.19    -0.02         2.15       1.75    0.95
                                                                                                                                                                                       provided by Bloomberg News.
8C                                                       THURSDAY, JUNE 26, 2008 •              Investment Opportunities • THE DAILY TRANSCRIPT

                                                                                                                                                                                            Sector performance year to date
                                                Sector Snapshot:                                                                                                                              89


                                         Biotech & Pharmaceutical Firms




                                                                                                                                                                                                                                                                                                                           Source: Bloomberg News
                                                                                                                                                                                              82



A      s part of the Finance and Investing section, The Daily Transcript publishes Sector Snapshot, a look at industry sectors that play a vital role in San
       Diego’s economy. Rotating on a daily basis, the Sector Snapshot provides a detailed overview of public company stock performance in a particular sec-
tor. For reader convenience, The Daily Transcript put in bold all information for San Diego-based companies and placed a triangle before companies with
                                                                                                                                                                                              75

facilities in San Diego County. The Sector Snapshot features Financial Institutions on Monday, Technology businesses on Tuesday, Telecommunication com-
panies on Wednesday, and Biotech and Pharmaceutical firms on Thursdays. On Friday, the Sector Snapshot rotates among other selected sectors in which                                          68
local firms play a significant role such as Defense and Aerospace, Medical Device Manufacturers, and Recreational Equipment Manufacturers.                                                            J        J    A        S            O         N      D         J       F      M        A       M          J

                                        52-week    52-week     market     weekly   earnings     5-year    5-year        earnings                                                 52-week       52-week  market      weekly    earnings     5-year                                                  5-year           earnings
Company            Ticker   Close          high       low capitalization volume weekly % change high        low        per share    Company             Ticker        Close        high          low capitalization volume weekly % change high                                                     low             per share
AVI Bio             AVII      1.25         3.14       1.00          887     6296                   9.20      1.00           -.59    Maxygen            MAXY             4.01        9.56             3.40               1485           3413                                       12.79               3.40             -1.51
Aastrom          ASTM           .38        1.43         .30         504     6648                   4.36       .30           -.16    Medarex             MEDX            6.91      18.23              6.88              8818           44853                      -4.3             18.23               4.37              -.32
Accelrys          ACCL        5.13         8.24       5.08         1374      1694     -5.0       23.25       4.73          +.04     MediCo              MDCO          19.54        21.41           14.26             10162            29750                      +5.7             36.18             14.26               -.32
AdolorCp          ADLR        5.40         6.09       3.05        2485     10992      +2.9       27.80       3.05           -.96    Medicis               MRX         20.77       32.18            18.51               11721          20955                       +.6             45.26             18.51            +1.42
Affymetrix        AFFX      10.24        29.29      10.08         7108    45259        -2.3      59.73    10.08            +.81     Merck                 MRK         36.98       61.62            34.49            807745           646329                      +5.3             61.62             25.50            +2.24
AlbnyMlc         AMRI        14.12       19.05        9.25        4479       3533        -.4     19.05       8.01          +.32     MillPhar           MLNM           24.97       25.00              9.49             81723                                                       25.00                7.63            +.04
Alexion           ALXN      71.48        80.12      43.49        27461     20670      +3.9       80.12     13.30           -1.74    Monsanto             MON         131.52      145.80            58.50            721740           369801                      -6.0            145.80             14.04            +4.02
Alkerm            ALKS      12.68        18.78      10.32        12115     33816       -1.6      26.81      8.48         +3.40      Mylan                 MYL         12.12       19.00            10.04             36899           137949                      +1.1             26.00             10.04             -5.58
Allergan            AGN      53.31       70.40      51.00      162594      91932      -2.2       70.40     33.39         +1.84      MyriadGn            MYGN          47.83       59.18            34.35             21349            25491                      -4.4             59.18              12.11              -.57
AllosThera        ALTH        6.58         7.70        3.91       4482       5634       +.6        8.54      1.54           -.65    NPS Phm              NPSP           4.25        6.36             3.45              2006             4696                      -1.2            36.61               3.25              +.16
Alpharma            ALO     22.94        28.67       17.55       10157     35036        +.3      33.88       9.39        +3.17      Nanogen h           NGEN              .42       1.99                .27              309             4911                    +1.2             14.95                  .27            -.69
AlseresPh         ALSE        2.40         3.50        1.95         499         55     -5.9        8.70      1.56         -1.05     NaturlAlt             NAII         8.00         9.20             5.64                 561               8                       -.4           14.00               5.03              -.97
Amarin rs        AMRN         2.05         6.50        1.57         286        357     -9.3      43.50       1.57        -4.00      NeoPhrm h            NEOL             .60       1.64               .48                170             548                     -1.6            22.70                 .48             -.25
Amgen            AMGN       46.82        59.08      39.16      509727 309758          +3.7       86.92     39.16         +2.92      NeoseT h             NTEC              .37      2.62               .25                201            1991                     -2.9            13.80                 .25             -.24
Amylin           AMLN       26.27        53.25      23.75       36009     56545       +1.1       53.25    14.50           -1.72     NeurobiT rs           NTII          1.44      13.65              1.55                 387             795                   -19.6             49.00               1.55            -1.65
AnadysPh          ANDS        2.28         4.10        1.36         654       1118   -19.1       16.60       1.36           -.34    Neurcrine            NBIX           4.51      13.07               4.11              1732            4991                      -3.8             73.13              4.11            -5.31
Angiotch g        ANPI        3.22         7.90       1.50        2740       8278     +7.3       29.14       1.50            -.91   Neurgn              NRGN            1.04         7.25                .71             438            2907                     +3.0              11.43                  .71          -1.27
AnikaTh           ANIK        8.98       22.49         7.85        1017        676     -3.3      22.49      6.48           +.48     NexMed              NEXM            1.18         1.93             1.01               986             1052                    +5.4               4.70                 .47            -.09
Antigncs          AGEN        1.85         3.90       1.56         1214     5460     +2.8        12.46       1.38           -.83    NthfldLb h           NFLD              .76      3.08                .75              204              860                    -6.2             23.88                 .75             -.79
ApplBio              ABI    33.73         37.67     28.75       56890    126016         +.2      39.49      17.76        +1.71      Novartis              NVS         53.65        59.17           46.19           1219732            74283                      +3.9             61.60             41.30            +5.02
ArQule            ARQL        3.84         8.34       3.48        1683       3754      -3.3      10.59       3.48         -1.27     Novavax             NVAX            2.51        4.38             2.24               1550             5179                    -4.6               8.39                .70             -.56
ArenaPhm         ARNA         4.87       14.78        4.55        3596     23216      +1.9      20.68       3.48         -2.53      Noven               NOVN           10.91      24.44              8.49              2708             5090                        -.8           27.80               8.49             -1.93
AriadP            ARIA        2.51         6.40       2.37         1743    19260       -3.5       13.74      2.37           -.89    NovoNord s            NVO         65.98       73.73            50.26            338911            11688                      +3.9             73.73             19.52
ArrayBio          ARRY        5.00       13.02        4.82        2376       6811       -7.1     14.59      4.82          -1.73     Novogen             NVGN            5.90       10.13             3.89                1151             193                       +.9           29.49               3.89
AstraZen            AZN     42.82        56.60      35.03      623913     44204      +4.3        66.49    34.72          +3.74      Nutritn21 h          NXXI             .53       1.79               .25                333           5798                   +23.5                2.72                .25            -.32
AtheroGn h        AGIX          .60        3.32          .35        237      7274    -10.3       41.93         .35         -1.31    Nuvelo              NUVO               .57      3.40               .55               306            3342                     +2.3             20.98                 .55           -1.38
AvantIm rs        AVAN      13.28        19.79       4.80         1982       3253    -11.6       47.04      4.80          -3.36     NymoxPh            NYMX             4.11        7.00             2.83               1217              440                     -3.5              7.50              1.55              -.19
Avigen            AVGN        2.75         6.38       2.37          818       806                  7.98      2.37           -.92    OSI Phrm             OSIP         40.27       52.00            28.68             23033            16907                        +.6            98.70             20.81            +1.50
BarrPhm              BRL    43.50        58.38       37.40      47007     60422       +5.9       70.25     32.01         +2.16      OnyxPh              ONXX          35.99       61.18            24.60             20002            42008                      +6.9             61.18             10.38               -.15
BentleyPh           BNT     16.24        16.39        9.05        3646       5713       +.7      22.90      6.50           +.06     OraSure             OSUR            4.20      10.57              4.09               1967            6198                      -1.4             14.14              4.09            +.06
BioRef             BRLI     23.87        35.80      22.45         3290      4440      +5.2       35.80     10.59         +1.04      Ore Phm rs          ORXE            1.34        8.80             1.30                   73            619                   -10.7             31.80               1.30           -4.95
BioRadA              BIO    82.58       115.23      70.24        18111       2371     -2.8      115.23    46.54          +3.39      OscientPh            OSCI           1.50        4.75             1.06                 211            1106                     -1.3            57.44               1.06            -2.19
Biocryst          BCRX        2.77        13.18       2.58        1054       2365      -1.4      23.00      2.58            -.96    Oxigene             OXGN            1.33        4.25              1.14                379            1183                  +15.7               11.34               1.14            -.78
▲BiogenIdc          BIIB    58.12        84.75      51.44      170304     89882         +.2      84.75     33.18         +1.81      PDL Bio s            PDLI         11.05       18.55              6.30             13183           46354                       -1.4            33.30               9.00              -.79
BioMarin         BMRN       29.20        41.00       17.29      28776    180033      -11.4       41.00       3.87           -.04    PainTher              PTIE          7.58      11.50              6.80               3173           11705                     +2.8             11.80               4.78             +.22
Biopure rs h      BPUR          .49        4.85           .31        171    3964      -2.0       77.40          .31       -1.83     ParPharm              PRX         16.90       30.68             15.51              5835            14614                     +3.8             66.90             12.80              +.32
Biovail             BVF     10.68        26.48      10.00        17197     34573      +1.2      28.28     10.00            +.98     ▲Parexel s           PRXL         25.05       29.76             19.21             14181            16672                     +6.4             29.76               7.90            +.88
BrMySq             BMY      20.32        32.35       19.43    402254 372885           +3.8       32.35     19.43         +1.07      Penwest              PPCO           2.93      14.60              2.40                926            4765                     +5.8             23.70               2.40           -1.60
CV Thera          CVTX        8.70       13.68         5.41       5283    24806       +5.3       29.79       5.41        -2.65      Peregrine h         PPHM              .35         .99               .31               791         16853                      -2.8               3.14                 .31            -.19
CVD Eqp             CVV       3.48         6.50       2.66          164        198   +4.8          9.25        .75         +.20     Perrigo             PRGO          33.16       43.08             18.13            30972             37479                     +2.0             43.08             12.76            +1.33
CaliperLSc        CALP        2.88         6.24       2.77         1376     2846      -4.6         9.85      2.77            -.51   ▲Pfizer                PFE        17.88       26.15             17.30          1209617          1510638                      +3.2             39.10              17.30           +1.12
CelSci             CVM           .70         .82          .37       823      3031     +3.7         1.78         .37         -.20    PhNetDev             PDGI          17.61      43.05            13.45               3403            13534                     +3.5             45.73             12.38              -.20
CeleraGrp           CRA     12.25         17.00      11.39        9797     13088         -.5      17.99      9.09           -.20    ▲PharmPdt            PPDI         43.48       49.39            32.76             52022            15684                      +3.6             49.39              13.37           +1.35
Celgene            CELG      61.97       75.44      41.26      270106     92788      +4.0        75.44       9.37         -3.58     Pharmcyc             PCYC           1.74        2.95               .55               452             3374                  +10.8              15.20                 .55           -1.05
CellGens          CEGE        2.91         4.67        1.78       2291     25011      -6.4       16.24       1.78          -1.21    Polydex h          POLXF              .65        1.93              .25                  19            205                    +8.3             10.50                 .25            -.26
CellThera h        CTIC         .48        4.97          .46        557      7266     -4.0       43.40         .46        -3.28     Poniard h           PARD            4.56         7.42            3.27               1581            2999                      -2.6            35.88               2.34            -1.05
Cephln            CEPH      69.23        83.25      56.20       46898      51613       -2.7      84.83     37.35          -3.56     Pozen                POZN         11.25        19.75             8.29              3348           10264                     -10.2              19.75              3.50             -.04
Cepheid           CPHD      28.49        33.36      12.45        16217    22305      +4.0        33.36       5.83           -.32    ProgenPh             PGLA            1.15       4.30              1.11                683             921                     -3.4             10.71               1.11
CerusCp           CERS        4.47       10.29        4.18        1448      5454      -2.8       14.76       1.60         -1.37     ProgPh              PGNX          16.66       26.10              4.33              5001            13763                       -3.9           30.83               4.33            -1.72
Chattem           CHTT      63.32        82.17      55.68        12142     10736      +4.1       82.17      17.73        +3.12      QIAGEN              QGEN          19.22       23.83            16.07             37728            20236                       -2.1            23.83               8.69             +.33
ColumLab          CBRX        3.44         4.29       1.89         1791      3170     -8.0        8.08       1.04           -.30    QLT                   QLTI          3.58        7.68             2.42               2671            7522                       +.8            30.70               2.42            -1.67
CwlthBio          CBTE        1.36         3.86       1.08            75       364    +1.5       14.16       1.08           -.81    QstDiag               DGX         48.24       58.63            43.65             93985            33447                                       64.69             35.94            +1.92
Compugn           CGEN        2.06         3.16       1.56          583        321    +2.0        8.09       1.56           -.40    ▲Questcor           QCOR            4.48        6.60                .21             3109           17571                      -8.2              6.60                 .21           +.57
CortexPh            COR          .75       3.47          .44        356     2962      +1.4         5.94        .44          -.30    Quigley              QGLY           5.12        6.13             2.92                658               65                      -1.0           16.94               2.92              -.18
Covance             CVD     85.18        96.81      65.93       53546      24749      +6.7       96.81    26.07          +2.87      RTI Biolog           RTIX           9.10       11.99              7.02             4889           12539                      +2.8              13.45              4.87             -.05
Crucell           CRXL       17.34        23.91     12.76        11331       1427    +4.5        30.47      6.00                    Regenrn             REGN          15.18       25.25            13.55             12008             12775                     +3.4             28.74               4.61            -1.29
CubistPh          CBST       17.82       25.72      16.54       10048      14166        +.2      26.77        7.71      +1.05       Replgn              RGEN            4.79        6.93             3.53               1493            5760                         -.8            6.93              1.22           +1.18
CuraGen           CRGN            .97      2.05         .60         560      1836      -6.7        9.53       .60        +.64       ReprosTh            RPRX            9.95      14.38              6.99               1271            2076                       -3.1           15.09               1.83           -1.30
Curis              CRIS       1.48         1.63         .86         937      1670        -.7       6.59       .86        -.26       RigelPh              RIGL         23.99       31.00              6.64               8751          16900                      +2.1             31.00               6.64           -2.69
CyprsBio          CYPB        7.88       15.60         6.17       2957      5694       -5.1      18.20       4.31        +.03       SangBio             SGMO            9.24      19.82               7.61              3771          12504                       +1.9            19.82               3.00              -.63
CytRx             CYTR          .69        4.05         .68         626   16000       -2.8         5.49       .68         -.45      SavientPh           SVNT          25.70       28.10            10.58              13936           32875                       -1.8            28.10               1.77              -.96
DUSA              DUSA        2.02         3.30        1.63         486        187    +1.0       16.30       1.63         -.61      ▲SchergPl              SGP        19.73       33.40            13.83            319904           411216                      +6.2             33.81             13.83             -1.25
decdGenet         DCGN            .93      4.50           .77       574     3044    +10.7        13.80          .77     -1.64       SciClone             SCLN           1.62        2.60             1.63                 748            1149                     -1.8              8.19              1.63              -.33
Dndreon          DNDN         4.66         8.56       4.15        4342     27974      -6.0       25.25       3.57       -1.05       ScielePh             SCRX         19.70       28.83             17.77              6903           16563                      +5.2             28.83             10.48            +1.30
DiscvLabs         DSCO        1.72         3.25       1.29        1663     32036       -1.7      13.90       1.16         -.47      SeattGen            SGEN            8.68      13.44              7.20              6881           10768                       -6.4            13.44               3.52             -.84
DrReddy             RDY      15.67       18.66       13.07      26333        3902     +1.0       19.06       7.46                   Sepracor             SEPR          19.71       43.31           16.85              21243           45097                          -.7          66.55             16.85              +.48
eResrch           ERES       17.70        17.56       8.53        8968    20547       +5.4       29.80      5.88         +.36       Sequenom            SQNM          15.94       15.25              4.25               7237          63346                     +11.9             15.25               1.33             -.62
▲Elan                ELN    34.74        35.50      16.37      163833    236371       +5.4       35.50       3.00         -.85      Shire              SHPGY          50.07       81.00            45.12             93366            26395                      +5.8             81.00             23.76            -2.20
ElitePh              ELI        .49        2.77           .43       110      1297     +2.1         4.90         .43       -.87      SigaTech h           SIGA           3.34        4.70             1.78               1135            2470                     +2.1               6.04                .69             -.10
EmisTech          EMIS        2.42         5.17       1.28          734      8130   +22.2        11.40       1.28         -.75      SonusPh h           SNUS              .30       5.54                .27                111           3154                      -3.2             8.81                 .27            -.37
EntreMd h        ENMD           .58        1.70           .51       497      4553      -1.7        4.90         .51       -.29      SpectPh              SPPI           1.49        7.88               .46               468            9730                        -7.5           10.13                .46           -1.14
EnzoBio             ENZ      11.83       18.98         7.00       4401       5167     +1.1       20.66       7.00         -.29      StemCells           STEM            1.20        2.53             1.00                969             7891                       -7.7            6.77              1.00             -.34
EnzonPhar         ENZN         7.73      10.36         6.31       3457      6830         -.8     18.40       5.70       +1.20       SuperGen            SUPG            2.15        6.63             1.95               1236            6983                     +2.4              14.14              1.95             +.26
ExactSci          EXAS        1.83         6.17        1.70         497      1089     -4.7       10.49       1.34         -.44      TargGene h           TGEN             .62       3.23               .46                122            1349                       -7.5          32.90                 .46            -.85
Exelixis           EXEL       5.52       12.77        4.81        5802    28023        -1.8    999.99        4.81        -1.01      TelikInc             TELK           1.26        4.96             1.18                669           76510                     -11.9            29.67               1.18              -.93
FlamelT           FLML      10.02        24.83         7.85       2410       2677     -4.6        37.42      7.85        -1.33      TevaPhrm             TEVA         45.01       50.00            40.16            365481           152341                       +1.9            50.00             22.82            +2.14
ForbesM rs        FMTI            .97      6.16          .69        372         57     -4.9      69.36         .69      -2.48       Theragen               TGX          3.37        4.74             3.20               1125            1940                      -4.8              6.95              2.60             +.18
ForestLab           FRX     33.50        47.53       31.75     102093     66484       +4.9       78.03     31.75        +3.05       ThrdWve             TWTI           11.19       11.18              5.17             4932           80616                         +.4            11.18              2.20              -.67
GTC Bio h         GTCB           .47       1.23          .36        483    30215    +20.5          4.47        .36        -.48      TitanPhm               TTP          1.36        2.60               .90                792           2023                         -.7            5.89                .90             -.42
GenProbe          GPRO      49.77        71.84      44.82       26876      12698        +.3      71.84    29.40         +1.76       Trimeris s          TRMS            5.00        6.93             4.10                1111            4195                     -4.8            21.35               4.35             +.97
Genentch            DNA     73.78       82.20       65.35      775348      57356       -1.3    102.56     41.00         +2.67       TrinityBio           TRIB           3.98      11.85               3.31                757             916                    +1.5             23.96                3.31           -1.95
GenBiotc          GNBT           .98       2.05           .81     1092     13538      +2.1         5.02         .51       -.29      UtdThrp             UTHR          93.45      110.69            61.94             21039              11118                      -1.7          110.69             20.51            +1.47
GenVec            GNVC        1.40         2.95           .97     1079       7623                  4.72          .91      -.25      UGrdn                   UG        11.87       18.00              8.50                 587              62                    +5.0             15.98               5.55             +.66
▲Genzyme          GENZ      72.03       82.08       58.71      192545      86961     +4.5       82.08     40.67         +1.70       ValeantPh             VRX          17.13       17.75           10.35             15295             26171                        +.6            27.37            10.35               -.07
GeronCp           GERN        3.72         8.37       3.65        2898     13876       -5.1      12.44       3.65         -.76      Vermlln hrs         VRML            2.41      11.50                 .93               153             459                   +13.7            116.84                  .93         -4.82
GileadSci          GILD     54.48        56.95      35.22      502561    173912          -.4     56.95    12.88         +1.76       VertxPh              VRTX         32.90       41.42            13.84             46247            90907                        -1.4           45.38              8.00            -2.67
GlaxoSKln           GSK     44.40        54.64      40.51     1174158      37551      +2.5       59.98    38.80                     Vical                VICL           3.39        5.69             3.00               1329             1077                    +2.7               8.14              3.00             -.92
Hemisphrx           HEB         .80        2.08          .53        591      2207    +11.1         5.40        .53         -.41     VionPh rsh           VION           1.20      12.10              1.02                  96             536                     -5.5            55.00               1.02           -5.02
HeskaCp           HSKA        1.26         3.00       1.22          650      1540      -1.6        3.25        .52        -.01      ViroPhrm            VPHM          11.28       15.00                7.11            7890            27737                     +6.2             24.36               1.40           +1.12
HiTchPhm           HITK     10.22        12.57        8.33         1152       849        -.4     50.03       8.33         -.66      WatsnPh               WPI         27.55        33.91           23.90             28773            35095                      +3.2             49.19             21.35            +1.43
HollisEden        HEPH        1.63         2.87       1.40          472      1384     -5.8       16.50       1.40         -.78      Wyeth                WYE          47.03       62.20            38.39            627068           310053                        -1.7           62.20             33.50            +3.35
HumGen             HGSI       5.47        11.95       4.74        7408    40082        -3.2      15.50       4.74        -1.92      XOMA               XOMA             1.81        4.39             1.75              2394           20488                        -1.1              7.71               .98             -.10
IdexxLab s         IDXX      51.51      64.68       45.16        31061      11614      -1.7     64.68     22.65         +1.57       Zila h               ZILA             .30       1.55                .16               186           7587                     -17.8              5.53                 .16            -.27
IGI Labs h            IG      2.40         2.71         .50         357        353      +.8        2.71       .50         +.01
Illumina          ILMN      84.88       84.96       38.61       47892     26447         +.3     84.96        3.99        +.54
                                                                                                                                       Public Company Profile
Imclone           IMCL      38.65        49.18      30.34       33448     34428       +1.2       87.24    26.28           -.53
ImmuCell           ICCC       3.39         6.23       2.54            98        39     -9.6        9.65     2.54          +.15         QUALCOMM INC.
ImunoGn          IMGN         3.08         5.86       2.64         1321      8318     +2.3       12.40      2.64          -.58         Qualcomm Inc. develops and delivers digital wireless communications products and services based on the company’s CDMA digital
Imunmd           IMMU         2.45         4.58        1.92       1840       6198     -2.0         6.24      1.52         -.27         technology. The company’s business areas include integrated CDMA chipsets and systems software, technology licensing, Eudora
Incyte             INCY        7.91      12.83        4.75        6695    28000       -6.8       12.83       3.51        -1.24         email software for Windows and Macintosh platforms and satellite based systems including Omnitracs and Globalstar systems.
InSiteVis            ISV        .56        1.58         .50         529      7355                  2.70        .39       +.09                                                                                                                                  THE COMPANY/THE STOCK
                                                                                                                                       The Executives
InspPhar           ISPH       4.55          7.27      2.89        2574     23675       -1.3       19.19     2.89         -1.43         IRWIN MARK JACOBS                                CHAIRMAN                                                               Symbol: . . . . . . . . . . . . . . . . . . . . . . .QCOM
IntegLfSci         IART     45.80        51.46      39.21       12506        5981                52.85      27.14       +1.24          PAUL E. JACOBS                                   CHIEF EXECUTIVE OFFICER                                                Exchange: . . . . . . . . . . . . . . . .NASDAQ GS
                                                                                                                                       STEVEN RUSSELL ALTMAN                            PRESIDENT                                                              2006 Revenue: . . . . . . .$8,871,000,000
InterMune         ITMN      13.60        27.48       11.72         5317    10987      -6.8       36.60       9.33        -1.42
                                                                                                                                       SANJAY K. JHA                                    COO/PRES: QUALCOMM CDMA TECH                                           2006 Net Income: . . . . .$3,303,000,000
IntrgnTh          INGN        1.59         4.85       1.58          699      4776      -5.4      10.37       1.58         -.62         JEFFREY A. JACOBS                                CHIEF MARKETING OFFICER                                                Employees: . . . . . . . . . . . . . . . . . . . .12,800
Invitrogn s       IVGN      39.86       49.58       35.12       35664     113977      +3.5      49.58      23.10        +1.77          LEN J. LAUER                                     EXEC VP/GROUP PRESIDENT                                                Common Shares
Isis                ISIS    13.95        20.15        9.03      13306     35909        -3.6      20.15       2.76        -1.51                                                                                                                                    Outstanding: . . . . . . . .1,618,690,000
                                                                                                                                                                                                                                                               Web site: . . . . . . . . .www.qualcomm.com
IstaPh             ISTA       1.82         8.15        1.16         601     2444     -21.6       15.60       1.16        -1.26
                                                                                                                                                                                                                                                               Price Per Share
JohnJn               JNJ    65.28       68.85       59.72     1839715     297111      +1.9       69.99    49.25         +4.01            $54                                                                                                  54,000,000          as of June 25, 2008 . . . . . . . . .$47.16
KV PhB lf          KV/B      19.16       31.37      18.20         2344          74    +3.1       31.37     15.40                                                                                                                                               52 Week High: . . . . . . . . . . . . . . . .$50.82
KV PhA lf          KV/A      19.21       31.46      18.10         7243     21785      +5.8       31.46     14.64                                                                                                                                               52 Week Low: . . . . . . . . . . . . . . . . .$35.17
                                                                                                                                                                                                                                                               52 Week EPS: . . . . . . . . . . . . . . . . . . .$1.92
KeryxBio h        KERX           .53     11.40          .40         231     8266      +1.9       19.86        .40        -2.07           $36                                                                                                  36,000,000
                                                                                                                                                                                                                                                               Shareholder Equity: . .$15,835,000,000
KingPhrm              KG    10.24        21.10        8.26      25253      59148     +6.0        22.25       7.50         +.63                                                                                                                                 Price/Earning Ratio: . . . . . . . . . . . . .24.56
KosanBio          KOSN        5.50         6.40       1.28        2346       9267       +.2      14.92       1.28          -.93                                                                                                                                Book Value per Share: . . . . . . . . . . .$9.57
                                                                                                                                         $18                                                                                                  18,000,000       Market Value: . . . . . . . .$76,337,420,000
LaJollPh           LJPC        1.93        5.59        1.45         765        761    -2.5       21.70       1.45        -1.38
▲LabCp                LH     70.17       82.32      65.13       78099     42088         +.4      82.32    36.70         +4.09                                                                                                                                                Company Address
LexiPhrm          LXRX        1.76         4.03        1.27       2407      7990       -9.7        8.24      1.27         -.53            $0                                                                                                  0
                                                                                                                                                                                                                                                                            5775 Morehouse Drive
                                                                                                                                           Mar-08                Apr-08                      May-08                              Jun-08                                      San Diego, CA 92121
LillyEli             LLY    47.00        59.82      45.97      534378 206868            +.1      76.95     45.97        +3.21                                                                                                                                                  (858) 587-1121
MDRNA            MRNA         1.26        17.05         1.11        394     4446       -3.8      23.14        1.11       -2.26
Martek           MATK       34.70         37.99     23.95        11451     11278      +2.1       73.36     19.64        +1.28                                                                                                                                                       Source: Bloomberg News
                                                                                 THURSDAY, JUNE 26, 2008 •                              Investment Opportunities • THE DAILY TRANSCRIPT                                                                                                                                                                                        9C

 S&P 500
 1,321.97
                  p   Today
                            +7.68            NASDAQ
                                             2,401.26
                                                              p         +32.98               DOW
                                                                                         11,811.83
                                                                                                              p           +4.40           6-MO T-BILLS
                                                                                                                                                2.21%
                                                                                                                                                                  q          -.04             30-YR T-BONDS
                                                                                                                                                                                                       4.66%
                                                                                                                                                                                                                      n          ...                     CRUDE OIL
                                                                                                                                                                                                                                                           $134.55
                                                                                                                                                                                                                                                                         q       -2.45            EURO
                                                                                                                                                                                                                                                                                                $1.5667
                                                                                                                                                                                                                                                                                                             p     +.0088                     GOLD
                                                                                                                                                                                                                                                                                                                                            $880.00
                                                                                                                                                                                                                                                                                                                                                             q            -9.20



 T     he economy is expected to
       have grown through the first
 quarter, although at a sluggish
                                                                                                                                Money&Markets
 pace. The housing industry could
 show signs of stabilizing, while a                            1,700                                                                                  3,000
 food maker with a trading business                                      1,400                                                                                  2,520                                                                                                fter the Federal Reserve left interest rates unchanged and issued
 is likely to be helped, and hurt, by
 higher commodity costs.                                       1,600
                                                                         1,340
                                                                                                                                                      2,800
                                                                                                                                                                2,420
                                                                                                                                                                                                                                                                 A   a mixed assessment of the economy, stocks ended an erratic day
                                                                                                                                                                                                                                                                with a modest gain. The Fed pointed to positive signs including “some
                                                                         1,280            10 DAYS                                                               2,320                10 DAYS                                                                    firming in household spending.” But it also said persistently rising ener-
    Economic growth                                                                                                                                                                                                                                             gy prices are likely to limit growth – and not just quicken inflation –
                                                               1,500                                                                                  2,600                                                                                                     which also remains a concern. The central bank said after a two-day
    Experts expect the final read-                                                                                                                                                                                                                              meeting it is keeping the benchmark federal funds rate at 2 percent, as
    ing on first-quarter gross do-                                                                                                                                                                                                                              was expected. The Dow industrials closed up 4.40, or 0.04 percent, to
    mestic product, which mea-                                 1,400                                                                                  2,400                                                                                                     11,811.83, after rising more than 100 points shortly after the Fed an-
    sures the output of all the                                                                                                                                                                                                                                 nouncement. The S&P 500 rose 7.68, or 0.58 percent, to 1,321.97.
    nation’s goods and services,
    will be revised upward to 1 per-                           1,300                                                           S&P 500                2,200                                              Nasdaq composite                                           MasterCard Inc.                          MA    Countrywide Financial                              CFC
    cent from a preliminary esti-                                                                                     Close: 1,321.97                                                                      Close: 2,401.26                                           Close: $289.79 9.42 or 3.4%                   Close: $4.58 -0.08 or -1.7%
    mate of 0.9 percent. The Fed-                                                                                 Change: 7.68 (0.6%)                                                                 Change: 32.98 (1.4%)                                          The company will pay American Ex-             Illinois’ attorney general is suing the
    eral Reserve in its last forecast                          1,200                                                                                  2,000                                                                                                         press as much as $1.8 billion to set-         nation’s biggest mortgage lender,
    said GDP will                                                              J              F          M           A          M          J                            J             F         M           A              M                 J                      tle an antitrust lawsuit in 12 quarter-       whose shareholders approved its
                                                                                                                                                                                                                                                                    ly installments.                              takeover by Bank of America Corp.
    likely grow be-
                                                                                                                                                                                                                                                                     $350                                              $7
    tween 1.8 per-                                         StocksRecap                                                           HIGH            LOW            CLOSE                CHG.       %CHG.       WK       MO QTR                      YTD
    cent and 2.3 per-                                                                                        DOW               11924.19        11789.36       11811.83                +4.40     +0.04%        t       t        t -10.95%                              300                                                 6
    cent for the year, but                                                     NYSE           NASD           DOW Trans.         5113.40         5001.70        5047.94               +49.59     +0.99%        t       t        s +10.44%                              250                                                 5
    Thomson Financial                                                                                        DOW Util.           527.55          521.69         524.82                +2.62     +0.50%        s       s        s -1.45%                               200                                                 4
    economist Jeoff Hall                                   Vol. (in mil.)      4,717          2,078          NYSE Comp.         8945.54         8803.22        8865.80               +62.46     +0.71%        t       t        t -8.98%                                           A        M             J                           A        M                       J
    expects that range                                     Pvs. Volume         4,606          2,155          NASDAQ             2421.25         2376.29        2401.26               +32.98     +1.39%        t       t        s -9.46%                                          52-week range                                      52-week range
    could be revised                                       Advanced             2209          1846           S&P 500            1335.63         1314.54        1321.97                +7.68     +0.58%        t       t        t -9.97%                             $120.00                           $320.30           $3.95                                     $37.59
    downward by a full                                     Declined              952          1029           S&P 400             854.86          843.26         849.13                +5.86     +0.69%        t       t        s -1.06%                             Vol.: 3.9m (1.3x avg.)     PE: 28.4            Vol.: 56.6m (2.4x avg.)       PE: 3.6
    percent-                                               New Highs              20             22          Russell 2000        720.25          708.21         716.30                +8.38     +1.18%        t       t        s -6.49%                             Mkt. Cap: $24.94 b     Yield: 0.2%             Mkt. Cap: $2.67 b      Yield: 13.1%
    age                                                    New Lows              106            194          Wilshire 5000     13634.46        13421.41       13507.12               +85.71     +0.64%        t       t        t -8.86%
    point.                                                                                                                                                                                                                                                          Monsanto Co.                         MON       Darden Restaurants Inc. DRI
         Quarterly GDP growth                                                                                                                                                                                                                                        Close: $131.52 -4.27 or -3.1%                 Close: $33.76 2.16 or 6.8%
       5 percent
       4
       3
       2
                                             est.
                                             1.0
                                                              Weak demand at home
                                                                    espite a boost from exports,                         chases. He doesn’t see housing                              Industrial production
                                                                                                                                                                                                                                                                    The agricultural chemicals company
                                                                                                                                                                                                                                                                    posted a profit, but an analyst said
                                                                                                                                                                                                                                                                    investors expected more from its
                                                                                                                                                                                                                                                                    full-year outlook.
                                                                                                                                                                                                                                                                     $160
                                                                                                                                                                                                                                                                                                                  Strong sales at the Olive Garden
                                                                                                                                                                                                                                                                                                                  and Longhorn Steakhouse helped
                                                                                                                                                                                                                                                                                                                  the restaurant operator turn a quar-
                                                                                                                                                                                                                                                                                                                  terly profit, versus a year-ago loss.
                                                                                                                                                                                                                                                                                                                    $40
       1
       0
                                                              D     manufacturing output is declin-
                                                              ing due to falling domestic demand.
                                                                                                                         stabilizing until year-end and says
                                                                                                                         commercial construction and de-                             Many industries are suffering.
                                                                                                                                                                                                                                                                      140
                                                                                                                                                                                                                                                                      120
                                                                                                                                                                                                                                                                                                                        35
             Q1      Q2      Q3       Q4      Q1
         Source: Bureau of Economic Analysis                  Industrial production peaked in July                       mand for products like steel beams                          Manufactured                      May YOY*                                       100                                               30
                                                                                                                                                                                                                                                                                  A        M             J                           A        M                       J
                                                              2007 and has lost 1.6 percent                              is weakening. Bethune also expects                          goods                               change                                                  52-week range                                      52-week range
                                                              through May, notes High Frequency                          several more years of production                            Automotive products            -12.1%                                           $58.50                           $145.80       $20.89                                        $45.83
 Housing market                                               Economics’ Ian Shepherdson. “This                          cuts in the U.S. auto industry.
                                                                                                                                                                                     Appliances, furniture, carpets -11.7                                           Vol.: 20.7m (2.9x avg.)     PE: 44.5           Vol.: 6.5m (3.0x avg.)     PE: 12.2
 The housing industry is still in the                         does not compare to the 6.8 per-                               The dollar’s multiyear decline is                                                                                                      Mkt. Cap: $72.17 b      Yield: 0.7%            Mkt. Cap: $4.71 b      Yield: 2.1%
                                                              cent peak-to-trough drop recorded                          offsetting some of the pain for man-                        Clothing                        -6.7
 pits, but combined new and existing
                                                              during the downturn in 2000-to-                            ufacturers, as it makes U.S.-made                           Construction supplies           -5.6                                           Ford Motor Co.                            F    General Mills Inc.                                 GIS
 home sales aren’t likely to hit a new
 bottom in May “which would be a                              2001, but then again we very much                          goods cheaper overseas. For the                             Misc. durable goods             -4.0                                            Close: $5.24 -0.08 or -1.5%                   Close: $61.19 -1.21 or -1.9%
 tentative sign                                               doubt the floor has been reached in                        full year, Bethune expects gross do-                        Paper products                  -1.1                                           The automaker’s Volvo segment                 Costs for hedging commodities
                 Lennar operating EPS                         this cycle,” he writes.                                    mestic product, or the output of all                                                                                                       laid off 1,200 workers in Sweden as           drove profit down, but revenue
 of stabiliza-                                                                                                                                                                       Business supplies               -0.5
                 Q2 est.:    -$0.55                              The manufacturing sector, which                         the nation’s goods and services, to                                                                                                        part of a plan to cut costs by about          topped expectations, partly on
 tion,” writes                                                                                                                                                                       Foods and tobacco               -0.2                                           $662 million.                                 strong yogurt and Cheerios sales.
 Credit Suisse Year ago: -$1.55                               supports 10 percent of the nation’s                        rise 1.24 percent, but the lion’s
                                                                                                                                                                                     Energy                           0.7
                                                              work force, has struggled as the                           share will stem from overseas de-                                                                                                             $10                                          $64
 economist       Existing home sales*
                                                              housing slump has cut residential                          mand. Yet domestic demand drives                            Business equipment               2.2                                                8                                              62
 Jonathan        May est.:     5.00m
 Basile. A                                                    construction and demand for appli-                         most of the nation’s economy; ex-                           Chemical products                2.4                                                6                                              60
                 April:        4.89m
 Wednesday       *annualized
                                                              ances, furniture and                                                  ports make up just 13                            Defense and space                2.4
                                                                                                                                                                                                                                                                         4                                              58
 report from                      Source:                     carpeting, according to                                               percent.                                         Home electronics                11.4                                                         A        M             J                           A        M                       J
                         Thomson Financial                    the Federal Reserve.                                                      Two important precur-                                                                                                                    52-week range                                      52-week range
 the Census                                                                                                                                                                          *year over year, seasonally adjusted
                                                              The automotive sector is                                               sors to the Institute for                                                                                                        $4.95                           $9.70         $51.00                                        $63.91
 Bureau said new home sales de-
 clined 2.5 percent from April. Econ-                         also to blame. Ford Mo-                                                Supply Management’s                             June. The regional readings from                                               Vol.: 40.6m (0.6x avg.)            PE: ...     Vol.: 4.1m (1.7x avg.)     PE: 15.7
 omists expect May existing home                              tor Co. and General                                                     manufacturing index,                           New York and Philadelphia suggest                                              Mkt. Cap: $11.38 b               Yield: ...    Mkt. Cap: $20.5 b      Yield: 2.8%
 sales, due today, to rise slightly.                          Motors Corp. have                                                       due July 1, posted de-                         the broader ISM will likely
                                                              slashed production of                                                   clines for the month of                        fall from its May level.                                                       Boeing Co.                               BA    Dean Foods Co.                                         DF
 Meanwhile, homebuilder Lennar
 Corp. (LEN) is expected to post a                            large vehicles such as                                                                                                                                                                                 Close: $69.64 -5.15 or -6.9%                  Close: $20.12 1.73 or 9.4%
 narrower loss compared to a year                             pickup trucks, which re-                                                                                                                                                                              A weak economy and rising fuel                The milk and dairy products distrib-
                                                                                                                                                                                                                                                                    costs caused a Goldman Sachs an-              utor raised its second-quarter profit
 ago. Homebuilders have taken                                 quire more and                                                                                                                                                                                        alyst to downgrade the defense                outlook, partly on results at its direct
 huge write-downs for unwanted in-                            bigger parts than                                                                                                                                                                                     stock to “sell” from “neutral.”               store delivery unit.
 ventory amid falling demand.                                 small cars, says                                                                                                                                                                                        $90                                           $24
                                                              Global Insight econo-
                                                                                                                                                                                                                                                                        80                                              22
                                                              mist Brian Bethune.
                                                                                                                                                                                                                                     Elizabeth Flach




    ConAgra Foods earnings                                    He notes the tax stim-                                                                                                                                                                                    70                                              20
    The maker of Healthy Choice,                              ulus checks are                                                                                                                                                                                           60                                              18
                                                                                                                                                                                                                                                                                  A        M             J                           A        M                       J
    Chef Boyardee and Orville                                 unlikely to result in                                                                                                                                                                                              52-week range                                      52-week range
    Redenbacher’s products recent-                            more spending on                                                                                                                                                                                       $69.16                           $107.83       $18.15                                        $32.20
      ly said it expects to top its                           big-ticket items, as
        prior quarterly outlook for                                                                                                                                                                                                                                 Vol.: 21.0m (3.2x avg.)     PE: 12.6           Vol.: 8.6m (4.3x avg.)                     PE: 25.2
                                                              consumers are still
                                                                                                                                                                                                                                                                    Mkt. Cap: $52.33 b      Yield: 2.3%            Mkt. Cap: $3.06 b                          Yield: ...
         earnings between 30 cents                            putting off such pur-
           and 35 cents per share.                                                                                                                                                                                                                              SOURCE: Sungard                                                                                            AP
                                                              SOURCE: Federal Reserve                                                                                                                           Shaila Dani • AP
            While its packaged foods
             arm is struggling with                                                                                                                                                                                                                            Interestrates                                                                  NET                   1YR
                higher raw material                                                                                                                                                                                                                                                              TREASURIES             YEST       PVS        CHG         WK MO QTR AGO
                    costs, the com-                                                                                                                                                                                                                                                              3-month T-bill         1.79        1.82      -0.03       t       t       s     4.82
                      pany was able to
                                                                                                                                                                                                                                                                                                 6-month T-bill         2.21        2.25      -0.04       t       s       s     5.03
                       raise some
                       prices. Its com-
                       modities trading
                      group, which
                                                              Still in good spirits
                                                              People are willing to pay up for                               Bars are seeing less traffic and
                                                                                                                                                                                                 In retail stores, as opposed
                                                                                                                                                                                                 to bars, premium products
                                                                                                                                                                                                 saw big year-over-year                                        Treasury bonds
                                                                                                                                                                                                                                                                                                 1-year T-note
                                                                                                                                                                                                                                                                                                 2-year T-note
                                                                                                                                                                                                                                                                                                 5-year T-note
                                                                                                                                                                                                                                                                                                                        2.47
                                                                                                                                                                                                                                                                                                                        2.82
                                                                                                                                                                                                                                                                                                                        3.53
                                                                                                                                                                                                                                                                                                                                    2.47
                                                                                                                                                                                                                                                                                                                                    2.82
                                                                                                                                                                                                                                                                                                                                    3.53
                                                                                                                                                                                                                                                                                                                                                 ...
                                                                                                                                                                                                                                                                                                                                                 ...
                                                                                                                                                                                                                                                                                                                                                   ...
                                                                                                                                                                                                                                                                                                                                                          t
                                                                                                                                                                                                                                                                                                                                                          t
                                                                                                                                                                                                                                                                                                                                                          t
                                                                                                                                                                                                                                                                                                                                                                  s
                                                                                                                                                                                                                                                                                                                                                                  s
                                                                                                                                                                                                                                                                                                                                                                  s
                                                                                                                                                                                                                                                                                                                                                                          s
                                                                                                                                                                                                                                                                                                                                                                          s
                                                                                                                                                                                                                                                                                                                                                                          s
                                                                                                                                                                                                                                                                                                                                                                                4.99
                                                                                                                                                                                                                                                                                                                                                                                4.90
                                                                                                                                                                                                                                                                                                                                                                                4.97
                      buys and sells                                                                                                                                                             sales gains.                                                  pulled back,
                                                              booze, but sales growth for premi-                         fewer drinks ordered but, says Da-                                                                                                                                      10-year T-note         4.11        4.10      +0.01       t       s       s     5.10
                   agricultural com-                          um liquor is leveling off at bars and                      vid Henkes, vice president of Tech-                                                                                                   sending yields
                                                                                                                                                                                                                  (Fastest growing                                                               30-year T-bond         4.66        4.66          ...     t       t       s     5.22
                 modities, also boost-                        eateries as more consumers drink                           nomic Inc., “people tend to remain                                                         price range)                               higher, after the
            ed earnings during the                                                                                                                                                                                                                             Fed left interest
        quarter, though the unit was
                                                                                        On-premises
                                                                Industry at home.“has slowed
                                                                             drinking
                                                                                                                         loyal to whatever they drink.” The
                                                                                                                         firm forecasts 3.8 percent dollar
                                                                                                                                                                                                        Vodka ($16-20.99)                                      rates unchanged                   BONDS                   YEST      PVS
                                                                                                                                                                                                                                                                                                                                             NET
                                                                                                                                                                                                                                                                                                                                             CHG         WK MO QTR
                                                                                                                                                                                                                                                                                                                                                                                1YR
                                                                                                                                                                                                                                                                                                                                                                                AGO
    recently sold.                                            Spotlight down fairly dramatical-                          sales growth for beer, wine and spir-                                                                       6.5%                      and signaled in-
         ConAgra (CAG)                     $22.15             ly,” but overall, consumers are still                      its in 2008 at bars, restaurants and                                                                                                  flation remains a                 Lehman Long T-Bd Idx 4.62          4.61     +0.01       t    s           s   5.26
     $28                                                                                                                                                                                                Tequila (30.00 + )                                     concern.
                   ’07 ’08                                    more likely to buy high-end liquor,                        clubs versus 4.6 percent in 2007.                                                                                                                                       Bond Buyer Muni Idx   5.26         5.26         ...     s    s           s   4.86
                                                              says David Ozgo, chief economist                           Spirits is growing the fastest but the                                                           6.0                                                                    Lehman US Aggregate 5.19           5.24     -0.05       t    s           s   5.40
       24                                                                                                                                                                                                                                                                PRIME     FED
                                                              of the Distilled Spirits Council. “Con-                    rate will slow to 4.9 percent from 5.7                                                                                                                                  Lehman US High Yield 10.63        10.46     +0.17       s    s           t   7.99
             $25.20                                           sumers view spirits as an affordable                       percent in 2007. “Total distilled spir-                                        Rum (25.00 + )                                                    RATE    FUNDS
       20                                                                                                                                                                                                                                                                                        Moodys Bond Index     5.68         5.73     -0.05       t    s           s   5.80
             Operating EPS                                    luxury. They may not be able to                            its growth has moderated in the past                                                                                                    YEST    5.00      2.00
                                            est.                                                                                                                                                                      5.1                                    6 MO AGO              4.25          Lehman US Corp        6.34         6.38     -0.04       t    s           s   6.07
                                                              make a huge purchase of a million-                         year, however, it’s been a mixed bag                                                                                                            7.25
                  .34                       .34
             .38        .53 .63                               dollar condo…but they’re still going                       in terms of Brown-Forman’s                                                                                                          1 YR AGO    8.25      5.25          KBW Bank             62.62        62.39     +0.23       t    t           t 113.03
                                                                                                                                                                                                        Whiskey (22.00 + )
             Q4 Q1 Q2 Q3                    Q4                to go out and enjoy themselves,”                           brands,” which include Jack Daniels,
                      Source: Thomson Financial               says John McDonnell, chief operat-                         says Phil Lynch, spokesman for                                                       2.8                                               Commodities                      FUELS                         CLOSE           PVS.       %CH.                %YTD
                                                              ing officer of Patron Spirits Co.                          Brown-Forman (BF-B).                                                                                                                  Wheat prices                      Crude Oil (bbl)               134.55        137.00       -1.79                +40.2
            Shaila Dani, Elizabeth Flach •AP                  SOURCE: Information Resources Inc.                                 Data through May 18                                      Lauren Shepherd, Kristen Girard • AP                                 shot up after rain                Ethanol (gal)                   2.86          2.84       +0.70                +20.7
                                                                                                                                                                                                                                                               doused parts of                   Heating Oil (gal)               3.75          3.81       -1.57                +42.1
                                                                                                                                                                                                                                                               the flood-strick-                 Natural Gas (mm btu)           12.75         13.01       -2.00                +70.5
                                                                            LocalStocks                                                                                                     Daily TranscriptTech 20                                            en Midwest.                       Unleaded Gas (gal)              3.39          3.46       -2.02                +36.7
                                        52-WK RANGE           CLOSE                                                              YTD       1YR         VOL                                                                                                     Corn and soy-                     METALS                     CLOSE             PVS.        %CH.                %YTD
NAME                        TICKER      LO                      HI       CLOSE        CHG         %CHG       WK MO QTR          CHG        RTN       (Thous) P/E             DIV       NAME          TICKER       CLOSE        CHG                     YTD     beans also rose,                  Aluminum (lb)                1.39             1.40       -0.71                +29.9
AMN Healthcare Svce AHS                 14.25                  22.63      17.31      +.49         +2.9%       t     s      s    +0.8%      -24.7%         305     17           ...     AdobeSy       ADBE          42.34        +.96    -.39                   while other com-                  Copper (lb)                  3.79             3.79           ...              +25.1
                                                                                                                                                                                       Apple Inc     AAPL         177.39       +4.14 -20.69                    modities mostly                   Gold (oz)                  880.00           889.20       -1.03                 +5.4
Amylin                       AMLN       23.75                  53.25      26.27      +.37         +1.4%       s     t      t -29.0%        -37.8%       1343      dd           ...     ApldMatl      AMAT          20.61        +.63   +2.85                   traded lower. Oil                 Platinum (oz)             2013.50          2025.00       -0.57                +31.7
                                                                                                                                                                                                                                                               dropped on a re-                  Silver (oz)                 16.50            16.63       -0.78                +11.5
                                                                                                                                                                                       Canon         CAJ           51.30        +.90   +5.47
Arena Pharmaceuticls ARNA                  4.55                14.78        4.87     +.04         +0.8%       s     t      t -37.8%        -56.6%         923     dd           ...                                                                             port of higher
                                                                                                                                                                                       Cisco         CSCO          24.70        +.22   -2.37                                                     AGRICULTURE                   CLOSE          PVS.        %CH.                %YTD
                                                                                                                                                                                                                                                               stockpiles.
BioMed Realty Trust          BMR        19.32                  27.75      25.34      +.59         +2.4%       s     t      s    +9.4%       +4.3%       1007      29        1.34       Corning       GLW           25.24        +.38   +1.25                                                     Cattle (lb)                     0.98          0.98           ...               +2.1
                                                                                                                                                                                       Dell Inc      DELL          23.55        +.51    -.96                                                     Coffee (lb)                     1.48          1.46       +1.37                 +8.8
Callaway Golf                ELY        11.88                  19.49      12.17      +.11         +0.9%       s     t      t -30.2%        -31.9%         794     13        0.28       EMC Cp        EMC           16.32        +.39   -2.21                                                     Corn (bu)                       7.30          7.13       +2.38                +60.1
                                                                                                                                                                                       EricsnTel s   ERIC          11.22        +.03    -.46                                                     Cotton (lb)                     0.73          0.72       +1.39                 +7.4
Cymer Inc                    CYMI       22.86                  44.73      27.98      +.61         +2.2%       s     t      s -28.1%        -33.2%         280     12           ...                                                                                                               Lumber (1,000 bd ft)          241.60        242.50       -0.37                 +3.0
                                                                                                                                                                                       FstSolar      FSLR         290.13       +1.91 +22.99
                                                                                                                                                                                                                                                                                                 Orange Juice (lb)               1.09          1.10       -0.91                -24.3
DivX Inc                     DIVX          6.12                19.35        8.01     +.10         +1.3%       t     t      s -42.8%        -48.3%         170     35           ...     Google        GOOG         551.00       +8.70 -140.48                                                     Soybeans (bu)                  15.38         15.01       +2.46                +28.3
                                                                                                                                                                                       HewlettP      HPQ           45.60        +.56   -4.88                                                     Wheat (bu)                      9.02          8.70       +3.68                 +1.9
Gen-Probe Inc                GPRO       44.82                  71.84      49.77      +.29         +0.6%       s     t      s -20.9%        -12.4%         294     28           ...     InfosysT      INFY          44.32        +.40   -1.04
                                                                                                                                                                                       Intel         INTC          22.65        +.24   -4.01                                                  37,500 lbs.- cents per lb.
Illumina Inc                 ILMN       38.61                  84.96      84.88 +2.19             +2.6%       s     s      s +43.2% +108.8%             1127       cc          ...                                                                                           Coffee
                                                                                                                                                                                       IBM           IBM          124.58       +1.12 +16.48
                                                                                                                                                                                       Microsoft     MSFT          28.35        +.62   -7.25
                                                                                                                                                                                                                                                                             YESTERDAY: Sales: 16,744 Open Interest: 140,857, s +1284.00
Invitrogen Corp              IVGN       35.12                  49.58      39.86      +.63         +1.6%       s     t      t -14.7%         +7.7%       2602      22           ...
                                                                                                                                                                                       NokiaCp       NOK           26.10       +1.44 -12.29                  MONTH                     OPEN            HIGH               LOW                  SETTLE                          CHG.
Jack In The Box Inc          JBX        22.57                   36.85     24.45      +.89         +3.8%       s     s      t    -5.1%      -33.1%         931     12           ...     Oracle        ORCL          22.55        +.32    -.03                 Jul 08                    146.50         148.25             144.95                 147.60                        +1.75
                                                                                                                                                                                       Qualcom       QCOM          47.16        +.89   +7.81                 Sep 08                    149.15         151.50             147.60                 150.35                        +2.00
Leap Wireless Intl           LEAP       29.87                  99.04      46.47 -1.81             -3.7%       t     t      t    -0.4%      -43.1%       2172      dd           ...                                                                           Dec 08                    152.25         155.00             151.20                 153.90                        +1.90
                                                                                                                                                                                       RschMot s     RIMM         142.34       +1.86 +28.94                  Mar 09                    155.40         158.35             154.65                 157.30                        +1.90
Ligand Pharm                 LGND          2.16                  7.36       2.71     +.16         +6.3%       t     s      t -43.9%        -63.3%         332       1          ...     SAP AG        SAP           53.05       +1.23   +2.00                 May 09                    158.30         160.50             157.15                 159.45                        +1.90
                                                                                                                                                                                       TaiwSemi      TSM           11.39        +.46   +1.43                 Jul 09                    159.60         162.60             159.25                 161.55                        +1.95
NuVasive Inc                 NUVA       25.65                  46.06      44.40      +.75         +1.7%       t     s      s +12.3%        +67.8%         324     dd           ...     TexInst       TXN           29.69        +.66   -3.71                 Sep 09                    162.05         164.60             161.90                 163.55                        +1.95
                                                                                                                                                                                                                                                             Dec 09                    164.85         167.30             164.85                 166.45                        +1.95
                                                                                                                                                                                       VMware n      VMW           62.18       +1.23 -22.81                  Mar 10                    169.00         169.80             169.00                 169.10                        +1.90
PacWest Bancorp              PACW       15.01                  62.58      16.05      +.35         +2.2%       t     t      t -61.1%        -69.3%         397     dd        1.28
                                                                                                                                                                                       Yahoo         YHOO          22.01        -.03   -1.25                 May 10                                                                             170.75                        +1.90
Qualcomm Inc                 QCOM       35.17                  50.82      47.16      +.89         +1.9%       t     t      s +19.8%         +9.0% 24209           23        0.64f                                                                                                                    GlobalMarkets
Realty Income                O          20.27                  30.70      23.42         ...           ...%    t     t      t -13.3%         -1.1%       1207      21        1.66f                                                                            INDEX                      YEST          CHG           %CHG            WK         MO         QTR               YTD
                                                                                                                                                                                                “The goal of the central                                     S&P 500              1321.97             +7.68         +0.58%              t        t            t            -9.97%
ResMed Inc                   RMD        33.57                   54.58     34.53      +.34         +1.0%       t     t      t -34.3%        -18.3%       1449      25           ...                                                                           Frankfurt DAX        6617.84            +81.78         +1.25%              t        t            s           -17.97%
                                                                                                                                                                                                   banks is to get us
                                                                                                                                                                                               through this as smoothly                                      London FTSE 100      5666.10            +31.40         +0.56%              t        t            s           -12.25%
SAIC Inc                     SAI        16.11                  21.90      20.56      +.13         +0.6%       s     s      s    +2.2%      +13.9%       2052      20           ...
                                                                                                                                                                                                                                                             Hong Kong Hang Seng 22635.16           +179.14         +0.80%              t        t            s           -18.62%
                                                                                                                                                                                                 as possible, but this is
Sempra Energy                SRE        48.58                  64.21      55.98      +.56         +1.0%       s     t      s    -9.5%       -3.6%       1170      13        1.40f                                                                            Paris CAC-40         4536.29            +62.53         +1.40%              t        t            t           -19.20%
                                                                                                                                                                                               not a science; it is an art
                                                                                                                                                                                                                                                             Tokyo Nikkei 225    13829.92            -19.64         -0.14%              t        s            s            -9.65%
ViaSat Inc                   VSAT       19.06                  36.49      21.20      +.25         +1.2%       t     s      t -38.4%        -30.3%         139     20           ...
                                                                                                                                                                                                form. This is as delicate
                                                                                                                                                                                                       as it gets.”                                          ASIA
Websense Inc                 WBSN       15.43                  23.10      17.87      +.27         +1.5%       s     s      t    +5.2%      -18.4%         438     dd           ...                   — Quincy Krosby,                                        Seoul Composite           1717.79        +6.95         +0.41%              t        t            s            -9.45%
                                                                                                                                                                                                 chief investment strategist                                 Singapore Straits Times   2986.62       +24.46         +0.83%              t        t            t           -13.82%
Dividend Footnotes: a - Extra dividends were paid, but are not included. b - Annual rate plus stock. c - Liquidating dividend. e - Amount declared or paid in last 12 months. f                    for The Hartford, on the
- Current annual rate, which was increased by most recent dividend announcement. i - Sum of dividends paid after stock split, no regular rate. j - Sum of dividends paid this                                                                                Sydney All Ordinaries     5363.10       -55.70         -1.03%              t        t            t           -16.48%
                                                                                                                                                                                                 Fed’s tap-dance between
year. Most recent dividend was omitted or deferred. k - Declared or paid this year, a cumulative issue with dividends in arrears. m - Current annual rate, which was decreased                                                                               Taipei Taiex              7855.06      +116.94         +1.51%              t        t            t            -7.66%
by most recent dividend announcement. p - Initial dividend, annual rate not known, yield not shown. r - Declared or paid in preceding 12 months plus stock dividend. t - Paid in
                                                                                                                                                                                                  slow growth and inflation
stock, approximate cash value on ex-distribution date. PE Footnotes: q - Stock is a closed-end fund - no P/E ratio shown. cc - P/E exceeds 99. dd - Loss in last 12 months.                                                                                  Shanghai Shanghai B        216.11        +8.44         +4.06%              t        t            t           -40.94%
10C                                                                                                            THURSDAY, JUNE 26, 2008 •                                                      Investment Opportunities • THE DAILY TRANSCRIPT
    For more local finance news log on to: www.sddt.com/finance


                                                      Markets                                                                                                                                    MARKET MOVER                                                                                                                                                                   International
        Year-To-Date
                         San Diego Stock Exchange
                                                                                            Past Week                                                            Oil drops more than $2 after                                                                                                                                                                                                                               Foreign Money
                                                                                                                                                                                                                                                                                                                                                                                                                   CHICAGO (AP) — Foreign money futures
                                                                                                                                                                                                                                                                                                                                                                                                               trading on the Chicago Mercantile Exchange
                                                                                                                                                                                                                                                                                                                                                                                                               Wednesday.

                                                                                      145
                                                                                                                                                    130
                                                                                                                                                                 supply gains first time in 6 weeks                                                                                                                                                                                                                  Open High Low Settle Chg
                                                                                                                                                                                                                                                                                                                                                                                                             BRITISH POUND
                                                                                                                                                    125                                                                                                                                                                                                                                                      62,500 pounds, $ per pound
                                                                                      135                                                                                                                                          By MARK SHENK                                                                                                                                                             Sep 08 1.9590 1.9648 1.9530 1.9605              +.0032
                                                                                                                                                                                                                                        Bloomberg News                                                                                                                                                       Dec 08 1.9455 1.9507 1.9410 1.9473              +.0032
                                                                                                                                                                                                                                                                                                                                                                                                             Mar 09 1.9310 1.9353 1.9308 1.9348              +.0032
                                                                                                                                                    120             Crude oil fell more than $2 a barrel after record fuel prices cut con-                                                                                                                                                                   Jun 09     1.9211 1.9238 1.9189 1.9238          +.0032
                                                                                      125
                                                                                                                                                                 sumption, causing U.S. inventories to rise for the first time in six weeks.                                                                                                                                                                 Sep 09     1.9101 1.9128 1.9074 1.9128          +.0032
                                                                                                                                                                                                                                                                                                                                                                                                             Dec 09 1.8988 1.9018 1.8978 1.9018              +.0032
                                                                                                                                                     1
                                                                                                                                                    15
                                                                                                                                                                    Stockpiles gained 803,000 barrels to 301.8 million last week, the                                                                                                                                                                          Last spot
                                                                                      15
                                                                                       1
                                                                                                  W        T       F       M       T       W                     Energy Department said. A 1.1 million-barrel drop was forecast by ana-                                                                                                                                                                        Tue’s sales 62,935
    J       J   A   S   O       O D       J       F       M   A M           J                                                                                                                                                                                                                                                                                                                                  Tue’s open int 76,361, off 3,642
                                                                                                                                                                 lysts in a Bloomberg News survey.                                                                                                                                                                                                           CANADIAN DOLLAR
                                                                                                                                                                    Fuel demand averaged 20.2 million barrels a day in the past four                                                                                                                                                                         100,000 dollars, $ per Cdn. dlr
                                                      Close: 118.33                                                                                                                                                                                                                                                                                                                                          Sep 08     .9873 .9905 .9845 .9898              +.0034
                                                                                                                                                                 weeks, down 2.3 percent from a year earlier, the report showed.                                                                                                                                                                             Dec 08     .9885 .9893 .9849 .9892              +.0033
                                                  Change: +1.11, +0.95%
                                                                                                                                                                    “There’s no question that high prices are having an impact on driving                                                                                                                                                                    Mar 09     .9875 .9889 .9849 .9889              +.0032
                                                                                                                                                                                                                                                                                                                                                                                                             Jun 09     .9849 .9886 .9848 .9886              +.0031
                    Dow Jones Industrial Average                                                                                                                 patterns and gasoline demand,” said Rick Mueller, director of oil prac-                                                                                                                                                                     Sep 09     .9854 .9883 .9850 .9883              +.0030
                                                                                                                                                                 tice at Energy Security Analysis Inc. in Wakefield, Mass. “We had a nice                                                                                                                                                                    Dec 09
                                                                                                                                                                                                                                                                                                                                                                                                               Last spot
                                                                                                                                                                                                                                                                                                                                                                                                                        .9854 .9881 .9845 .9880              +.0029

                                                                                                                                                                 crude-oil build and the market is responding as it should.”                                                                                                                                                                                   Tue’s sales 28,062
                                                                                                                                               12,600                                                                                                                                                                                                                                                          Tue’s open int 84,325, off 1,775
                                                                            14,500
                                                                                                                                                                    Crude oil for August delivery declined $2.45, or 1.8 percent, to settle                                                                                                                                                                  JAPANESE YEN
                                                                                                                                                                 at $134.55 a barrel at 3:11 p.m. on the New York Mercantile Exchange.                                                                                                                                                                       12.5 million yen, $ per 100 yen
                                                                            13,300                                                             12,300            Futures touched a record $139.89 on June 16.                                                                                                                                                                                                Sep 08
                                                                                                                                                                                                                                                                                                                                                                                                             Dec 08
                                                                                                                                                                                                                                                                                                                                                                                                                        .9318 .9332 .9251 .9310
                                                                                                                                                                                                                                                                                                                                                                                                                        .9320 .9379 .9315 .9364
                                                                                                                                                                                                                                                                                                                                                                                                                                                             -.0001
                                                                                                                                                                                                                                                                                                                                                                                                                                                             -.0001
                                                                                                                                                                    Gasoline for July delivery fell 6.94 cents, or 2 percent, to settle at                                                                                                                                                                   Mar 09     .9401 .9438 .9400 .9422              -.0001
                                                                                                                                                                                                                                                                                                                                                                                                             Jun 09                           .9483          -.0001
                                                                             2,1
                                                                            1 00                                                               12,000            $3.3941 a gallon in New York. Futures reached a record $3.5762 a gal-                                                                                                                                                                       Sep 09                           .9544          -.0001
                                                                                                                                                                 lon on June 16.                                                                                                                                                                                                                             Dec 09                           .9605          -.0001
                                                                                                                                                                                                                                                                                                                                                                                                               Last spot
                                                                                                                                                                    Pump prices are closely tracking futures. Regular gasoline, averaged                                                                                                                                                                       Tue’s sales 118,004
                                                                            10,900                                                              1
                                                                                                                                               1 ,700
    J       J   A   S O N D           J       F M         A M       J                         W       T        F       M       T   W
                                                                                                                                                                 nationwide, fell 0.2 cent to $4.067 a gallon, AAA, the nation’s largest                                                                                                                                                                       Tue’s open int 164,000, up 1,657

                                                                                                                                                                 motorist organization, said Wednesday on its Web site. Pump prices
                                                     Close: 11,811.83
                                                                                                                                                                 reached a record $4.08 a gallon on June 16.                                                                                                                                                                                        Oil
                                                  Change: +4.40, +0.04%
                                                                                                                                                                    Prices are also lower because the United Arab Emirates said it’s ready to
                                                                                                                                                                 boost supplies, if needed. Saudi Arabia said on June 22 it would increase                                                                                                                                 NYMEX Crude Oil, July
                                                          NASDAQ                                                                                                 daily crude-oil output by 200,000 barrels to 9.7 million barrels next month.                                                                                                  Year-To-Date                                                             Past Week
                                                                                                                                                                    Saudi Arabia and the U.A.E. are the biggest and third-largest produc-
                                                                                    2,870
                                                                                                                                                                 ers in the Organization of Petroleum Exporting Countries.                                                                                                                                                                                       $150
                                                                                                                                                                                                                                                                                                                                                                                                                                                             $144
                                                                                                                                                2,600
                                                                                                                                                                    Oil was unchanged from earlier trading after the Federal Reserve left
                                                                                                                                                                 its benchmark interest rate at 2 percent, ending the most aggressive
                                                                                                                                                                                                                                                                                                                                                                                                                 $125
                                                                                    2,630                                                       2,400            series of rate cuts in two decades, as record energy prices threaten to                                                                                                                                                                                                                     $136

                                                                                                                                                                 increase inflation.
                                                                                    2,390                                                       2,200
                                                                                                                                                                    Futures have almost doubled over the past year as investors looking to                                                                                                                                                                       $100                                        $128
                                                                                                                                                                 hedge against the dollar’s drop have purchased commodities, helping
                                                                                                                                                                 push oil, gold and corn to records.
                                                                                                                                                2,000
                                                                                    2,150
                                                                                                  W    T       F       M       T       W
                                                                                                                                                                    Rising Asian fuel consumption and falling output in the North Sea,                                                                                                                                                                           $ 75                                        $120
    J       J   A   S   O N      D        J       F M         A M       J                                                                                                                                                                                                                                                                      J   J    A S O N D                J F M A M               J                     W T       F   M       T W
                                                                                                                                                                 Russia and Mexico have contributed to the rally.
                                                                                                                                                                    Arjun an. Murti, the Goldman Sachs (NYSE: GS) analyst who last month
                                                      Close: 2,401.26                                                                                                                                                                                                                                                                                                                      Close: $134.03
                                                  Change: +32.98, +1.39%
                                                                                                                                                                 said oil may rise to $200 a barrel within two years, increased his forecasts,                                                                                                                                          Change: -2.37, -1.74%
                                                                                                                                                                 in a report dated June 18, because output is failing to match demand.
                                                          S&P 500                                                                                                   U.S. benchmark West Texas Intermediate crude oil may average $118                                                                                                                                                                    Oil
                                                                                                                                                                 a barrel this year and $140 a barrel next year, Goldman analysts led by                                                                                                       NEW YORK (AP) — Futures trading the New York Mercantile Exchange Wednesday:

                                                                                    1,590
                                                                                                                                                                 Murti wrote in the report.                                                                                                                                                              Open      High        Low      Settle Chg.                     Open      High       Low       Settle Chg.
                                                                                                                                                1,450               Daniel Yergin, chairman of Cambridge Energy Research Associates,                                                                                                       LIGHT SWEET CRUDE                                                 Jan 10                         134.07           -1.91
                                                                                                                                                                                                                                                                                                                                           1,000 bbl.- dollars per bbl.                                      Feb 10                         133.96           -1.90
                                                                                                                                                                 told a congressional panel that oil prices are being driven by “new fun-                                                                                                  Aug 08        133.95   137.58       131.95 134.55     -2.45       Mar 10                         133.85           -1.89
                                                                                                                                                                                                                                                                                                                                                                                                             Apr 10                         133.74           -1.88
                                                                                    1,460
                                                                                                                                                1,400            damentals” involving the merging of oil and financial markets.                                                                                                            Sep 08
                                                                                                                                                                                                                                                                                                                                           Oct 08
                                                                                                                                                                                                                                                                                                                                                         134.49
                                                                                                                                                                                                                                                                                                                                                         134.82
                                                                                                                                                                                                                                                                                                                                                                  138.05
                                                                                                                                                                                                                                                                                                                                                                  138.22
                                                                                                                                                                                                                                                                                                                                                                               132.51
                                                                                                                                                                                                                                                                                                                                                                               132.85
                                                                                                                                                                                                                                                                                                                                                                                      135.08
                                                                                                                                                                                                                                                                                                                                                                                      135.33
                                                                                                                                                                                                                                                                                                                                                                                                 -2.44
                                                                                                                                                                                                                                                                                                                                                                                                 -2.38       May 10                         133.63           -1.87
                                                                                                                                                                    He added that the price of oil has hit a “break point” where the U.S.                                                                                                  Nov 08        135.00   137.96       133.09 135.52     -2.26       Jun 10 132.90 133.52 132.90 133.52
                                                                                                                                                                                                                                                                                                                                                                                                             Jul 10                         133.43
                                                                                                                                                                                                                                                                                                                                                                                                                                                             -1.86
                                                                                                                                                                                                                                                                                                                                                                                                                                                             -1.85
                                                                                                                                                                                                                                                                                                                                           Dec 08        135.09   138.30       133.10 135.62     -2.16
                                                                                    1,330                                                       1,350
                                                                                                                                                                 will begin to seek alternatives.                                                                                                                                          Jan 09        135.87   137.42       133.51 135.62     -2.08       Aug 10                         133.34           -1.84
                                                                                                                                                                                                                                                                                                                                           Feb 09        137.50   137.50       135.10 135.54     -2.03       Sep 10                         133.26           -1.83
                                                                                                                                                                    Gasoline demand has averaged 9.28 million barrels a day over the past                                                                                                  Mar 09        134.89   135.46       134.89 135.46     -1.98       Oct 10                         133.18           -1.82
                                                                                                                                                                                                                                                                                                                                                                                                             Nov 10                         133.10           -1.81
                                                                                                                                                                 four weeks, down 2.1 percent from the same period last year, the depart-                                                                                                  Apr 09
                                                                                                                                                                                                                                                                                                                                           May 09
                                                                                                                                                                                                                                                                                                                                                         134.00
                                                                                                                                                                                                                                                                                                                                                         134.93
                                                                                                                                                                                                                                                                                                                                                                  135.38
                                                                                                                                                                                                                                                                                                                                                                  135.29
                                                                                                                                                                                                                                                                                                                                                                               134.00
                                                                                                                                                                                                                                                                                                                                                                               134.93
                                                                                                                                                                                                                                                                                                                                                                                      135.38
                                                                                                                                                                                                                                                                                                                                                                                      135.29
                                                                                                                                                                                                                                                                                                                                                                                                 -1.92
                                                                                                                                                                                                                                                                                                                                                                                                 -1.86       Dec 10 132.70 135.25 131.00 133.04              -1.80
                                                                                    1,200                                                       1,300
    J       J   A   S O N        D        J       F   M       A M       J                             W T          F    M T W
                                                                                                                                                                 ment said. Demand for distillate fuel, a category that includes heating                                                                                                   Jun 09        134.95   135.75       132.95 135.15     -1.84       Jan 11
                                                                                                                                                                                                                                                                                                                                                                                                             Feb 11
                                                                                                                                                                                                                                                                                                                                                                                                                                            132.95
                                                                                                                                                                                                                                                                                                                                                                                                                                            132.87
                                                                                                                                                                                                                                                                                                                                                                                                                                                             -1.80
                                                                                                                                                                                                                                                                                                                                                                                                                                                             -1.80
                                                                                                                                                                                                                                                                                                                                           Jul 09                                     134.99     -1.83
                                                                                                                                                                 oil and diesel, averaged 4.06 million barrels a day, down by 1.1 percent                                                                                                  Aug 09                                     134.83     -1.85       Mar 11                         132.81           -1.80
                                                                                                                                                                                                                                                                                                                                           Sep 09                                     134.67     -1.87       Apr 11                         132.75           -1.80
                                                     Close: 1,321.97
                                                                                                                                                                 from a year earlier.                                                                                                                                                      Oct 09                                     134.51     -1.89       May 11                         132.69           -1.80
                                                                                                                                                                                                                                                                                                                                                                                                             Tue’s sales 370,881
                                                  Change: +7.68, +0.58%                                                                                                                                      Source Code: 20080625fbb                                                                                                      Nov 09
                                                                                                                                                                                                                                                                                                                                           Dec 09        133.89 136.15
                                                                                                                                                                                                                                                                                                                                                                                      134.37
                                                                                                                                                                                                                                                                                                                                                                               131.97 134.24
                                                                                                                                                                                                                                                                                                                                                                                                 -1.90
                                                                                                                                                                                                                                                                                                                                                                                                 -1.92       Tue’s open int 1,306,075, up 625




                                                                                                                                                                                                                                     San Diego Silver & Gold Coin Market
                                                                    Indexes                                                                                                                                                               Courtesy of Old Coin Shop
                                                                                                                                                                                                                                             WEDNESDAY’S Prices
                                                                                                                                                                                                                                                                                                                                                                                 Mutual Funds
                                                                  DAILY                                                                        52 WEEK                          YTD
                                                                                                                                                                                              US Gold Close: ............................................$880.00          Am Eagle (older dates):..........................$922.00         Top Performing Mutual Funds for June 25
                            HIGH                  LOW              CLOSE             NET CHG %CHG                       HIGH                        LOW          % CHG          % CHG                                                                                                                                                                                                                                                                          YTD
                                                                                                                                                                                              US Silver Close:..............................................$16.49        Am Buffalo (older dates): ......................$943.40
DJ STOCKS                                                                                                                                                                                                                                                                 Mexico 50 Peso: ......................................$1075.00                                                          TICKER             CLOSE        NET CHG            % CHG   RETURN
                                                                                                                                                                                              US Patinum Close: ..................................$2019.00
30 Indus                11,924.19             11,789.36           11,811.83 +4.40 +.04                             14,198.10                   11,634.82         -12.03 -10.95                                                                                            U.S. $20 Liberty BU: ................................$955.00     Direxion Fds: LatAmBul                                 DXZLX              36.39        +1.93              +5.6    +17.5
                                                                                                                                                                                              US Palladium Close:..................................$465.00                90% Silver Coin $1000
20 Transp                5,113.40              5,001.70            5,047.94 +49.59 +.99                             5,536.57                    4,032.88          -1.60 +10.44                                                                                                                                                             Direxion Fds: EgMkBul p                                DXELX              28.86         +1.11             +4.0     -19.0
                                                                                                                                                                                              Krugerrand: ..................................................$899.00       Face Value Bag:......................................$11795.00
15 Utils                   527.55                521.69             524.82 +2.62 +.50                                 555.71                      460.68          +5.79   -1.45                                                                                                                                                            Rydex Dynamic: NasdStrH N                              RYVYX              24.32          +.74             +3.1    -18.3
                                                                                                                                                                                              Canada Mleaf 1 oz: ..................................$922.00                100 oz JM/ENG Silver Bar:................$1699.00                Rydex Dynamic: NasdStrC p N                            RYCCX              22.30         +.68              +3.1    -18.6
65 Stocks                4,307.38             4,256.30             4,274.32 +18.59 +.44                             4,733.76                    3,902.27           -5.13 -2.72
NYSE                                                                                                                                                                                                                                                                                                                                       BlackRock A: LatAA r                                   MDLTX               71.61       +1.92              +2.8      +9.9
                                                                                                                                                                                                                                                                                                                                           BlackRock Instl: LatAmer r                             MALTX              72.44        +1.94              +2.8    +10.0
Comp
Financial
                        8,945.54
                        6,727.60
                                              8,803.22
                                              6,556.11
                                                                  8,865.80 +62.46 +.71
                                                                   6,613.55 +57.45 +.88
                                                                                                                   10,387.17
                                                                                                                   9,858.60
                                                                                                                                               8,343.62
                                                                                                                                               6,440.52
                                                                                                                                                                  -9.98
                                                                                                                                                                 -31.24
                                                                                                                                                                                  -8.98
                                                                                                                                                                                -20.33
                                                                                                                                                                                                                         San Diego County’s                                                                                                BlackRock B&C: LatinAmC r                              MCLTX              66.72        +1.78              +2.7      +9.4
                                                                                                                                                                                                                                                                                                                                           BlackRock B&C: LatAmB t                                MBLTX              68.00        +1.81              +2.7      +9.4
Healthcare
NASDAQ
                        6,286.31              6,186.32             6,243.17 +50.77 +.82                             7,478.62                   6,074.75          -13.45          -12.93
                                                                                                                                                                                                                    Certificate Of Deposit Yields                                                                                          DWS Scudder Cl C: CommC                                 FTICX             16.69         +.44              +2.7    -21.8
                                                                                                                                                                                                                                                                                                                                           DWS Scudder Cl S: LatAmrEq                             SLAFX              77.08        +2.04              +2.7     +8.2
Nasdaq100                1,951.49             1,910.21            1,933.86           +30.12       +1.58            2,239.23                    1,668.57             +.04          -7.25                                                                                   Minimum                                                          Fidelity Invest: LatAm N                               FLATX               67.66       +1.75              +2.7      +9.1
Banks                   2,214.48              2,147.78            2,158.85           +22.59       +1.06            3,198.44                    2,108.46          -32.08         -18.93        Institution                                                                   Deposit                  6 mos.                   1 yr.        Price Funds: LatAm N                                   PRLAX              56.54        +1.50              +2.7      +4.9
Insurance               3,584.20              3,541.62            3,564.11           +19.45        +.55            4,425.44                    3,540.21           -17.80        -12.55                                                                                                                                                     Am Perform: USLgCpEqA                                  APEQX               11.45        +.29              +2.6      -4.7
                                                                                                                                                                                              Allstate Bank                                                                    1,000                 2.50%                2.65%
Telecom                    254.93               250.78              253.20            +3.34       +1.34              300.64                      206.81              -.71         -1.32                                                                                                                                                    DWS Scudder Cl A: CommA p                              TISHX              18.24         +.47              +2.6     -21.6
Computer                 1,140.61             1,114.72            1,129.70           +20.06       +1.81            1,353.94                      971.23            -2.46        -11.94        California Bank & Trust                                                         5,000                  1.59%                1.69%
                                                                                                                                                                                                                                                                                                                                           Fidelity Advisor A: LatAmA t                            FLTAX             62.38        +1.58              +2.6      +9.5
Biotech                    807.17               789.82              802.18           +12.65       +1.60              910.60                      716.60            -1.06          -3.93       California Community Bank                                                        2,500                 3.09%                 3.37%           Fidelity Advisor B: AdvLatAmB N                         FLTBX             60.68        +1.53              +2.6      +9.0
S&P                                                                                                                                                                                           Community Commerce Bank                                                         10,000                 3.20%                3.25%            Fidelity Advisor C: LatAmC N                           FLACX              60.41        +1.53              +2.6      +9.0
S&P 100                   607.75                 597.61             601.45             +3.84 +.64                        734.51                   583.64         -13.33         -12.28        Coronado First Bank                                                              1,000                 2.50%                2.75%            Fidelity Advisor T: LatAmT t                            FLTTX             61.89        +1.56              +2.6      +9.3
S&P 500                 1,335.63               1,314.54            1,321.97            +7.68 +.58                      1,576.09                 1,256.98         -12.24           -9.97       Discovery Bank                                                                  10,000                 2.62%                3.00%            StbridgSCG                                             SBSCX                8.39        +.20              +2.4     -12.5
S&P MidCap               854.86                  843.26             849.13             +5.86 +.69                        926.67                   731.29          -5.37           -1.06                                                                                                                                                    Ivy Funds: EuroOppsI t                                  IEOIX             33.70         +.77              +2.3
S&P SmallCap              381.29                 375.16             378.96             +3.98 +1.06                      445.82                    339.99         -12.63          -4.09        Embarcadero Bank                                                                 2,500                 1.76%                2.07%
OTHER                                                                                                                                                                                         First Bank                                                                       1,000                 3.00%                3.75%            Bottom Performing Mutual Funds for June 25
Value Line Arith 2,103.13 2,064.47                                 2,087.76 +23.18 +1.12                            2,509.12                    1,916.18         -14.21           -7.03       First Business Bank                                                              1,000                 2.17%                2.42%                                                                                                                                YTD
                                                                                                                                                                                              1st Pacific Bank                                                              50,000                   2.35%                 3.51%                                                                   TICKER            CLOSE        NET CHG            % CHG   RETURN
Russell 2000      720.25    708.21                                   716.30 +8.38 +1.18                              856.48                       643.28         -14.57          -6.49
DJ Wilshire 500013,634.46 13,421.41                               13,507.12 +85.71 +.64                            15,938.99                   12,653.07         -11.33          -8.86        Home Bank of California                                                         10,000                 2.84%                3.04%            Stratton Funds: Dividend e                            STMDX                25.91        -2.02              -7.2     +1.1
                                                                                                                                                                                                                                                                                                                                           Stratton Funds: Multi-Cap x                           STRGX               42.29         -1.42             -3.2      -2.5
                                                                                                                                                                                              Imperial Capital Bank                                                           2,000                  3.50%                3.75%
                                                                        Money                                                                                                                 Iron Stone Bank                                                                    500                 2.00%                2.75%
                                                                                                                                                                                                                                                                                                                                           Fidelity Selects: DfAer N
                                                                                                                                                                                                                                                                                                                                           Rydex Dynamic: InvNasdSt H
                                                                                                                                                                                                                                                                                                                                                                                                 FSDAX
                                                                                                                                                                                                                                                                                                                                                                                                 RYVNX
                                                                                                                                                                                                                                                                                                                                                                                                                     68.39
                                                                                                                                                                                                                                                                                                                                                                                                                     12.76
                                                                                                                                                                                                                                                                                                                                                                                                                                   -2.16
                                                                                                                                                                                                                                                                                                                                                                                                                                     -.41
                                                                                                                                                                                                                                                                                                                                                                                                                                                      -3.1
                                                                                                                                                                                                                                                                                                                                                                                                                                                      -3.1
                                                                                                                                                                                                                                                                                                                                                                                                                                                              -17.6
                                                                                                                                                                                                                                                                                                                                                                                                                                                              +8.4
  NEW YORK (AP) _ Money rates for Wednesday.                                                   6 months, 3.17                                                                                 La Jolla Bank                                                                   10,000                 3.30%                3.50%            Rydex Dynamic: InvNasdStC p                           RYCDX               12.07           -.39             -3.1     +8.1
  Prime Rate: 5.00                                                                             1 year, 3.51                                                                                   Neighborhood National Bank                                                       1,000                 2.74%                3.05%            Direxion Fds: SmCpBear                                DXRSX                11.71          -.36            -3.0     +2.6
  Discount Rate Primary: 2.25                                                                Treasury Bill auction results:
                                                                                                                                                                                              Pacfic Mercantile Bank                                                          10,000                 3.56%                3.66%            Matthews Asian: AsianG&I x                            MACSX                17.75          -.51            -2.8      -6.8
  Discount Rate Secondary: 2.75                                                              average discount rate:                                                                                                                                                                                                                        AXA Enterprise A: GlbFnA px                            EGFAX                5.96          -.14            -2.3     -19.3
  Broker call loan rate: 3.75                                                                  3-month as of June 23: 1.855                                                                   Pacific Trust Bank                                                              10,000                 2.94%                3.25%
                                                                                                                                                                                                                                                                                                                                           AXA Enterprise B: GlbFnB px                           EGFBX                 5.90          -.12            -2.0     -19.5
  Federal funds target rate: 2.00                                                              6-month as of June 23: 2.255                                                                   Rancho Santa Fe Thrift                                                           2,500                 0.00%                 3.41%
Certificates of Deposit Retail:                                                                Treasury Bill annualized rate on weekly average basis,                                                                                                                                                                                      Kensington Fds: SelectInA px                           KIFAX              24.65           -.51            -2.0      +3.0
  1 month, 1.69                                                                              yield adjusted for constant maturity, 1-year, as of June                                         San Diego Community Bank                                                           500                 2.27%                2.78%            Kensington Fds: SelectInB px                           KIFBX              24.34           -.46             -1.9    +2.5
  3 months, 2.51                                                                             23: 2.57                                                                                         San Diego National Bank                                                          2,500                 1.95%                2.45%            Kensington Fds: SelectInC px                           KIFCX              24.28           -.47             -1.9    +2.5
  6 months, 2.89                                                                             Treas. Bill market rate, 6 Mos: 2.21                                                                                                                                                                                                          Columbia Class A: CnvSecA x                            PACIX              14.68           -.27            -1.8       -3.5
  1 year, 3.27                                                                               Treas. Note market rate, 10-year as of 5pm :4.11                                                 Silvergate Bank                                                                  2,500                 3.27%                3.42%
                                                                                                                                                                                                                                                                                                                                           Columbia Class Z: ConSecZ x                           NCIAX               14.68           -.27            -1.8       -3.4
Jumbo CDs:                                                                                   Fed Home Loan 11th District Cost of Funds:                                                       Temecula Valley Bank                                                            10,000                 3.10%                3.10%            BlackRock A: GlResA                                   SSGRX               81.92         -1.44              -1.7   +40.2
  1 month, 1.90                                                                                As of May 30: 3.111                                                                            US Bank                                                                          1,000                 1.55%                 1.45%           BlackRock B&C: GlRes t                                SSGDX               68.84          -1.21             -1.7   +39.7
  3 months, 2.66                                                                             Money market fund:
  6 months, 2.95                                                                               Fidelity Cash Reserves:                                                                         *Call for specific terms and conditions                                                                                                     BlackRock B&C: GlResB t                               SSGPX               68.97          -1.21             -1.7   +39.7
  1 year, 3.30                                                                                 7 day average yield: 2.37                                                                       All figures shown are Annual Percentage Yields rounded to the nearest 100th, unless otherwise noted.                                        BlackRock Instl: GlbRes                                SGLSX              89.04         -1.56              -1.7   +40.4
London Interbk Offered Rate:                                                                   x - holiday                                                                                     All information shown is for comparison only and subject to change without notice. Specific rates/yields                                    Columbia Class B: ConSecB px                          NCVBX               14.46           -.24             -1.6     -3.8
  3 month, 2.81                                                                                n.a. - not available                                                                            should be verified prior to making an investment decision. Provided by: Fouts Financial (800) 587-1400                                      Columbia Class C: ConSecC tx                           PHIKX              14.66           -.24             -1.6     -3.8


                            U.S. Prime Rate                                                                                                London Interbank Offered Rate                                                                                                         5-year Treasury Rate                                                                                       10-year Treasury Rate
                                                                                                          9.2%                                                                                                                           6.0%                                                                                                                                                                                                                5.3%



                                                                                                                                                                                                                                                                                                                                                       4.7%
                                                                                                                                                                                                                                         5.0%                                                                                                                                                                                                                4.8%
                                                                                                          7.7%

                                                                                                                                                                                                                                                                                                                                                       3.8%                                                                                                  4.3%
                                                                                                                                                                                                                                         4.0%


                                                                                                          6.2%
                                                                                                                                                                                                                                         3.0%                                                                                                          2.9%                                                                                                  3.8%



                                                                                                          4.7%                                                                                                                                                                                                                                         2.0%                                                                                                  3.3%
                                                                                                                                                                                                                                         2.0%
J       J       A   S       O    N            D       J       F     M           A     M       J                                        J        J        A   S     O        N     N       J     F      M       A       M       J                             J        J   A      S      O      N      D      J     F      M      A     M   J                               J      J     A    S     O      N      N      J     F    M     A       M     J


                                Close: 5.0%, unchanged                                                                                                                 Close: 3.51 %, -0.05%                                                                                                 Close: 3.54%, +0.02%                                                                                        Close: 4.12%, +0.02%
                                 52-Week High: 8.25%                                                                                                                   52-Week High: 5.51%                                                                                                   52-Week High: 5.18%                                                                                         52-Week High: 5.26%
                                 52-Week Low: 5.25%                                                                                                                    52-Week Low: 2.18%                                                                                                    52-Week Low: 2.23%                                                                                          52-Week Low: 3.34%

				
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