INVESTools Advisory
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In This Issue:

1. B2B E-Commerce Leader Turns Profitable (FMKT)
2. Insider Buys Indicate "Grossly Oversold Prices" (VTA)
3. Mutual Fund Trading Strategy Shines Amid Turmoil (CSVFX)
4. The Latest Addition to a String of Tech Stock Hits (MTON)
5. Harmon's Top Stocks and Sectors for 2002 (MSFT)


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INVESTools Advisory
By John Brobst, INVESTools.com


1. B2B E-Commerce Leader Turns Profitable (FMKT)

Despite recent gains, Internet stocks excite few investors
these days. That's why Carlton Lutts is buying. His newest
pick is FreeMarkets (FMKT), a maker of B2B marketplaces for
a number of major sectors. For instance, aerospace giant
United Technologies saved 17% by using FreeMarkets to hold
over 2,000 auctions representing $1.5 billion of purchasing
contracts. Automotive parts and accessories supplier Visteon
is another major customer.

Instead of trying to supplant a company's purchasing
department, FreeMarkets aims to provide a valuable tool for
buyers to do their work. The company's 1,000+ employees put
in a lot of effort to learn a client's business and ensure
that the auction site is tailor made and user friendly.
FreeMarkets also adds value by actively seeking out
qualified suppliers and creating detailed requests for
quotes.

Lutts says financial results show that FreeMarkets' model
is working. The firm projects an operating profit of $0.05
to $0.09 per share for Q4 and $0.22 for 2002. Investors
jumped on the news and quickly bid up shares from $15 to
$25 in December 2001. "It has held those gains well, and
thus we rate it buy," he says. "Investors have a hunger
for real earnings, and FreeMarkets is turning the corner
on profitability."

For more on Carlton Lutts' advice see "Cabot's Sector
Inspector," January 4, 2002. Momentum advisor Carlton Lutts
profiles the profit potential of one top-performing stock
each week.

For a free 30-day trial go to:

http://www.investools.com/c/go/CABI/MTXTH-cabi012402?s=S601

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2. Insider Buys Indicate "Grossly Oversold Prices" (VTA)

Substantial insider buying at Vesta Insurance Group (VTA)
tells insider watcher Richard Cuneo that management sees a
bargain. Last November, the firm reported a decline in net
operating earnings for the quarter. Shares quickly dropped
50%, and insiders just as quickly grabbed the stock. Cuneo
says this indicates management sees "grossly oversold
prices" and "the first indication of insider enthusiasm year
to date."

Vesta would have reported a profit from continuing
operations for the quarter. But a pre-tax charge of $30
million to settle securities litigation pushed a $1.3
million gain to an $18.2 million loss. Management sees final
court approval for the settlement by the year's end. In the
mean time, the firm is in good financial shape and plans to
repurchase over six million shares.

Cuneo says the buyback plan combined with the aggressive
moves of insiders make Vesta "a solid candidate for
inclusion in our Risk Portfolio." He recently added shares
and maintains a buy recommendation.

For more on Richard Cuneo's advice see "Commentary and
Insider Index Rankings," January 16, 2002, Vickers Weekly
Insider. Richard Cuneo provides the most up-to-date
information on transactions and holdings of corporate
officials, significant shareholders and institutions.

For a free 30-day trial go to:

http://www.investools.com/c/go/VICK/MTXTH-vick012402

-----------------------------------------------------------
3. Mutual Fund Trading Strategy Shines Amid Turmoil (CSVFX)

Investors spent the past two years unlearning the lessons of
the booming late 1990s. For instance, one lesson was to buy
on dips as those who did this lost mightily since early
2000. Janet Brown's strategy continued to outperform even
when the market turned south. She invests in top mutual
funds while they are performing well and nimbly moves to
others when the original choices no longer perform the best.
By doing this, she profits regardless of what kind of fund
is currently in favor.

One of the funds Brown advises buying now is Columbia
Strategic Value (CSVFX). "While many growth funds found the
transition to value difficult, CSVFX delivered spectacular
performance since its fortuitous inception in November
2000," she says. That could be because of what Brown calls
"a growthy complexion" to a fund whose main objective is
value.

One third of the fund's portfolio is short-term growth and
special situation opportunities while the rest is
traditional value. By value, fund managers mean P/E and
price-to-sales ratios less than those of the S&P 500 index.
Current holdings include infrastructure industries like
transportation, cement, natural gas and others likely to
benefit if government decides to refurbish after neglect in
the late 1990s.

For more on Janet Brown's advice see "The Complete NoLoad
Fund*X," January 2002, No-Load Fund*X. Janet Brown offers
leading insight on no-load and low-load mutual funds,
including advice on when to upgrade to the winners.

For a free 30-day trial go to:

http://www.investools.com/c/go/NLFX/MTXTH-nlfx012402

----------------------------------------------------------
4. The Latest Addition to a String of Tech Stock Hits (MTON)

The portfolios of investors who bought Geoff Eiten's top
monthly tech stock picks have performed admirably over the
last year. Sample gains include +22% since July 2001 on
Extreme Networks, +144% since May 2001 on OmniVision
Technologies, +37% on ADC Telecommunications since April
2001, and +39% since March 2001 on Portal Software.

Eiten's latest tech stock pick is Metro One
Telecommunications (MTON). The firm provides directory
assistance and information services to telecom providers
like Sprint PCS, AT&T Wireless, Nextel, Verizon Wireless and
Cingular Wireless. Metro One charges its clients $0.75 to
$1.40 per call plus airtime for each use of its services.
The firm handled roughly 218 million calls during the first
six months of 2001.

Eiten is bullish about Metro One as competitive pressures
force carriers to bundle more and more services into one
package, and the firm's directory assistance service is the
best of the breed. Last quarter saw revenues grow 42% to $60
million while net income ballooned 174% to $7.6 million.
Eiten just issued a buy recommendation.

For more on Geoff Eiten's advice see "Technology Stock
Watch," January 2002, OTC Growth Stock Watch. Geoff Eiten
advises on high-growth, low long-term debt, niche-oriented
firms with sales of $5-100 million.

For a free 30-day trial go to:

http://www.investools.com/c/go/OTCG/MTXTH-otcg012402

----------------------------------------------------------
5. Harmon's Top Stocks and Sectors for 2002 (MSFT)

Before discussing his best bets for year 2002, Steve Harmon
lists what he believes the year will not be about. "Not
Internet. Not wireless. Not e-commerce. Not infrastructure.
Not fiber optics," he says. Instead, he predicts 2002 will
be about practical solutions. "Technologies that make
businesses run better, cut costs and improve earnings.
Everything else is hype."

Harmon predicts manufacturing-intensive firms like Ford will
continue to lay off tens of thousands as technology takes
over many aspects of the supply chain and labor. That means
growth in fields like automation, robotics and procurement
systems. "This is all heavy lifting and the companies most
likely to benefit are gorilla technology solution
providers," Harmon says, including Microsoft (MSFT), Intel
(INTC), IBM (IBM), Oracle (ORCL), Cisco (CSCO) and Texas
Instruments (TXN).

Harmon also reiterates his buy sign on the Nasdaq QQQ series
trust shares (QQQ) designed to mirror the performance of the
Nasdaq 100 index. QQQ gives substantial exposure to
technology and healthcare, sectors that Harmon calls
"engines of the recovering economy." He advises maintaining
stop loss limits of 10% on QQQ, 15% on large cap techs and
20% on everything else.

For more on Steve Harmon's advice see "Harmon New Technology
Stocks," January 2002, Broadband Investor. Steve Harmon puts
investors at the forefront of the convergence of technology,
entertainment, communication, commerce and fiber-optics.

For a free 30-day trial go to:

http://www.investools.com/c/go/BRBN/MTXTH-brbn012402?s=S601



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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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