INVESTools Advisory
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In This Issue:

1. Fried Sells 4 Stocks, Gains +46.8% in 3 Months (KM)
2. Rowe: January Index Confirms Bull Market for 2002 (ALOY)
3. Small-Cap Advisor Earns +31.6% in 2001 (LBIX)
4. Compounding Returns with Pine Trees (PCL)
5. Undervalued, High-yield Bank Puts Customers First (ASO)


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INVESTools Advisory
By John Brobst, INVESTools.com


1. Fried Sells 4 Stocks, Locks in +46.8% in 3 Months (KM)

David Fried knows a stock is undervalued when the company's
management buys back its shares on the open market. His
latest triumph is pocketing an impressive +46.8% gain in
three short months by selling four buyback stocks. These
include a +43.3% gain on auto retailer Automation
Incorporated (AN) and a +62.7% gain on digital phone system
purveyor Inter-Tel (INTL).

Fried's most recent move is to buy KMart Corporation (KM),
the beleaguered discount retailer who just declared
bankruptcy. "We do not think that K-Mart will go out of
business," Fried says. "It will take a while but recovery is
a possibility." He just bought 500 shares for $380.

Another Fried pick is C-Cor.net Corporation (CCBL), who
provides a range of technology services to broadband
networks. Today's telecom spending slowdown hit the company
hard; net sales fell 34% to $52 million last quarter and
caused a net loss of $5.4 million vs. a $5.8 million gain
last year. But Fried cites a buyback plan and a $1.5 million
restructuring charge as proof that management sees a rosier
future.

For more on David Fried's advice see "Buyback Index
Portfolios," January 2002, The Buyback Letter. David Fried
provides wealth-building opportunities in companies
repurchasing their stock.

For a free 30-day trial go to:

http://www.investools.com/c/go/BACK/MTXTU-back012902

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2. Rowe: January Index Confirms Bull Market for 2002 (ALOY)

Don Rowe says the January Index confirms that 2002 should
see a bull market. The first five trading days of 2002
provided gains for the Nasdaq (+5.4%), S&P 500 (+1.1%) and
Dow Industrials (+1.3%). Rowe says this five-day index has
correctly predicted the market's direction for the year
since 1951 with only four exceptions. Those include three
war years (1966, 1973, 1990) and 1994, when the Fed Funds
rate doubled from 3% to 6% for the year.

Rowe maintains "be sure to own" recommendations on seven
companies he says are leading the market. One of these is
Alloy Incorporated (ALOY); the media company and direct
marketer provides content, community and commerce to
"Generation Y," roughly 58 million people between 10 and 24
years of age. Rowe likes this market as it accounts for $250
billion in disposable income and should grow 20% faster than
the overall population. Q3 saw earnings up +119% on a 58%
increase in sales.

Another Rowe pick is New Century Financial Corporation
(NCEN). The financier makes, buys, sells and services sub-
prime mortgage loans secured by first mortgages on single-
family homes. Borrowers typically have plenty of equity in
their properties to secure a loan but suffer from weak
credit profiles or high debt-to-income ratios. Q3 earnings
grew +238% on a 56% hike in sales.

For more on Don Rowe's advice see "Investment Opportunity,"
February 2002, The Wall Street Digest. Momentum investor
Donald Rowe targets stocks and mutual funds capable of
generating 26+% annual returns.

For a free 30-day trial go to:

http://www.investools.com/c/go/WALL/MTXTU-wall012902?s=S600

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3. Small-Cap Advisor Earns +31.6% in 2001 (LBIX)

The major indexes suffered a terrible year, but Richard
Geist's 12 recommendations for 2001 earned a healthy +31.6%.
He lists many reasons why his selections should see growth
going forward. These include "extremely bullish" monetary
conditions with high productivity and no inflation in sight,
and a yield curve that continues to steepen. Also, investor
sentiment polls are becoming more bearish. "These are always
a contrary indicator," he says.

Geist's latest recommendation is to buy shares of Leading
Brands (LBIX). The company is Canada's largest independent
food brand management company, and it is now expanding into
the US. Geist particularly likes how the firm saves money
with its integrated distribution system; the system makes
products from raw materials and provides packaging,
warehousing and distribution.

Recent financial results show that Leading Brands is on a
roll. FY 2001 saw revenues grow 70% to $49.8 million on net
income of $1.2 million ($0.09 per share), up from last
year's loss of ($608,000). Geist predicts the company will
see revenues reach $40 million in 2002 and $60 million in
2003. That yields a forward PE of 4.3. "We think LBIX is
significantly undervalued," Geist says. "In the $1 range,
Leading Brands is a strong buy."

For more on Richard Geist's advice see "Highlighted Stocks,"
February 2002, Richard Geist's Strategic Investing. Richard
Geist integrates psychological aspects of investing into a
methodology for selecting small company stocks.

For a free 30-day trial go to:

http://www.investools.com/c/go/STIN/MTXTU-stin012902

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4. Compounding Returns with Pine Trees (PCL)

Growing trees is not usually a noisy business that catches
the attention of the investment media. "But it is a good
business," says Dick Young. The timber business is less
volatile and capital-intensive than manufacturing, and Young
sees demand for timber increasing as the population
increases. He notes how the average return on timber
investments has outperformed the S&P 500; from 1960 to 1999,
the average annual return was 13.6%.

Young's favorite timber play is Plum Creek Timber (PCL), one
of the largest private timberland owners in the US. The
REIT's primary goal is to profit by acquiring and managing
lands. Young says Plum Creek Timber's 8% yield and status as
a REIT makes it ideal for tax deferred accounts.

Another of Young's timber selections is Deltic Timber
Corporation (DEL). The company grows and harvests timber
from its over 430,000 acres in Arkansas and Louisiana. A
main company goal is to expand its timber holdings and
sustainable harvest level. Young says shares are a good
portfolio counterweight for value investors "who appreciate
the intrinsic worth of underlying real natural resources."

For more on Dick Young's advice see "Investment Commentary,"
February 2002, Richard Young's Intelligence Report. Richard
Young uses the buy-and-hold strategy of mentor Warren
Buffett to uncover low-risk, high-reward opportunities.

For a free 30-day trial go to:

http://www.investools.com/c/go/INTE/MTXTU-inte012902?s=S602

----------------------------------------------------------
5. Undervalued, High-yield Bank Puts Customers First (ASO)

Amsouth Bancorp (ASO) is giving investors a healthy yield
(4.43%) for the risk involved, says Jodie Weiss (Investment
Quality Trends). With $39 billion in assets, Amsouth is one
of the largest financial institutions in the south with more
than 600 offices. She credits the bank's success to "putting
the customer first."

Weiss likes how Amsouth uses new technology to save money by
streamlining operations. She notes how Amsouth just ranked
number six on eWeek's "Fast Track 500" list of companies
that deploy cutting-edge technology throughout operations;
at number 5, Merrill Lynch was the only financial services
firm who placed higher. Also, Amsouth's Internet banking
group quadrupled its customer base to 425,000 last year.

Weiss says ASO shares are undervalued. With the stock
selling near $20 and a yield of 4.43%, Weiss sees "43%
upside potential." Dividends have risen annually for the
past 11 years, a buyback plan for 25 million shares was
authorized in September 2001, and the stock's PE is a
reasonable 13x. "When priced to yield 7.0%, ASO is
undervalued and a buy should be considered," Weiss says.

For more on Jodie Weiss' advice see "Investment Spotlight,"
January 21, 2002, The Income Digest. The digest excerpts
from investment publications and highlights all-weather
income-oriented opportunities uncovered by the top minds on
Wall Street.

For a free 30-day trial go to:

http://www.investools.com/c/go/INDI/MTXTU-indi012902



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Disclaimer

The INVESTools Advisory is published solely for
informational purposes and does not solicit nor offer to buy
or sell any stock, mutual fund or other security. It does
not attempt or claim to be a complete description of the
securities, markets, or developments referred to in the
material. All expressions of opinion are subject to change
without notice. The information is obtained from internal
and external sources which INVESTools considers reliable,
but INVESTools has not independently verified such
information and INVESTools does not guarantee that it is
accurate or complete. INVESTools does not undertake to
advise anyone. INVESTools, its employees, and/or officers
and directors, may from time to time have a position in the
securities mentioned and may sell or buy such securities.


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