A few notes about the format of this newsletter, going forward.

1. This newsletter will continue to be issued weekly before the markets open each Monday morning and will be structured to highlight the following areas:

• market developments or news affecting the two portfolios
• stock price performance of the two portfolios
• benchmark the performance of the two portfolios against the top market indices around the world

By benchmarking against the leading market indices in the world, we will show that our portfolio can beat the market-leading indices hands down.

In the weeks ahead we will benchmark these portfolios against the leading mutual funds and, hopefully assist readers in taking control of their financial future, instead of being hoodwinked by superb marketing by overpaid mutual fund managers, whose sole aim is to "earn an average of 2% of your total asset value every year."

2. A special occasion newsletter will be issued on "as required" basis when stocks of great companies for some reasons go "on sale" e.g. recently Nortel’s CFO mis-spoke and the stock fell into a freefall to $41.80 from $95. This was a special situation which did not require rocket science to know that the price will rebound. Four months later, Nortel’s stock hit $95.70 again, providing a 129% return after 4 months. On October 8, Ericsson stock was selling for $15 and exactly one month after that, ERICY was selling for $28.375 for 89% gain.

3. As this newsletter builds on previous issues I recommend that old issues are deleted once the latest issue is received. Please forward suggestions on what you want to see in this circular or any suggestions to improve the format.

The portfolio went down by 1% in the past week, mainly because Certicom gave up $1.00 per share out of its previous gains. Certicom hit it’s lowest point $17.10 in the week on Tuesday, Feb 2, 1999 but recovered to close the week at $18, while Cryptologic traded at $13.75 on Thursday. These dips should be seen as great opportunities to take positions and the only way to be aware of these opportunities is to track them.

The good news for this portfolio lies in their gallant stride to gain listing on NASDAQ. The ticker symbols for these companies have been issued but not announced publicly as yet. Forbes ticker is FBSMF, Certicom’s trading symbol will be CCMCF or CRTJF while Cryptologic will have the symbol CYPLF.

Please note that Canadian companies have gained a ruling from NASD that the suffix "F" for foreign at the end of their ticker symbols be removed as its discriminatory. European ADR’s trading on the American exchanges will benefit from this ruling by removing the Y at the end of their ticker symbols. This means ERICY (Ericsson) becomes ERIC and SAVLY for Saville becomes SAVL.

To put Nasdaq listing into perspective, I will like to reiterate the case of Research in Motion (RIM/TSE), which languished between $5 and $8 for most of the past 18 months, until announced it was going to list on NASDAQ. Since then it has traded as high as $19. It started trading on Nasdaq on Feb 4

Our American portfolio gained 2% for week ending Feb 5 but the most significant developments in the week were the great buying opportunities provided by dips in Custom Tracks on Tuesday, Feb to $6.69 (Since Feb 2 it has rebounded by $4.31 (64.5%) to $11. On Jan 26, for example SLEU dipped to $4.75 in a general internet stock rout

The issue here is to track these stocks and take positions at prices you are comfortable with instead of chasing them or saying they have already gone up too much, hence its too late. Remember my returns for 1998 were 161%.

Compared to the main indices in the world, we are doing just fine. The surprising thing is that the FTSE is actually down on the year and despite all the hullabaloo about internet stocks the NASDAQ is only up by 8.3%. In 1999 stock pickers will be winners not the index fund investors.