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No. of Recommendations: 6
And another question -

For this year, seems like we would sell HWP and IP because they aren't 2002 picks.

And for HD and MSFT - what? Sell them because they've reached their upside target? Continue to hold until they *do* reach the upside target? (For that matter, what *was* their upside target 'way back on 1/1/2001?)

Sell them to start with a clean slate and put the proceeds into more AA since that's the only 2002 pick?


You need to be careful with AA. Since AA's last report Value Line issued a supplemental lowering this years and next years earning forecast. They have changed their forecast for the 4th quarter from .35 cents a share to $.10 and next years earnings from $2.30 to $2.00.

Being this is all the data they gave it is hard to say whether AA still meets the earnings bogey. Also usually when the forecast goes down the ROE and/or Book Value also get lowered when the next issue comes out.

Therefore in my opinion it is very questionable if Alcoa is really a legitimate pick and we won't know for sure until the next issue because at this time Value Line has basically warned that the forecasted information for the company is wrong.

Moe
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