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Former Short Position - SHU

Initial Cover-Stop was established off the hilltop resistance points which were below the 30wk moving average (Risk Corridor = 12.7%). The next valley-bottom occurred at 10/18/02 as confirmed upon the third subsequent increase in closing price on 11/22/02. The next hilltop occurred at 1/3/03 as confirmed upon the third subsequent decrease in closing price on 1/24/03. Since the 1/3 hilltop was below the 30wk moving average, we adjusted the Cover-Stop to the 30wk level at $32. From that point forward, Cover-Stops are adjusted downward in $1 increments in tandem with the 30wk. 

3/30/03: We exit half the position with the Cover-Stop violation for a 2.7% ROI, with half our position still alive.

4/6/03: The second Cover-Stop violation -- for a transaction ROI of 1.3%.

4/13/03: Third and final Cover-Stop violation -- for a 0.4% transaction ROI. Unfortunately, dividends ate up the very small return on this issue. Our overall ROI after dividends was -1.6%.

Another case where, again, the important thing is that we limited our downside risk.