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Subject: APM Q4 2006 News
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          <TD class=3Dtopleft width=3D"22%"><A=20
            href=3D"http://www2.business.ku.edu/apm/amp_frontpage"><IMG =
height=3D85=20
            =
src=3D"http://www2.business.ku.edu/apm/newsletter/templates/apm_resources=
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          <TD class=3Dtopright vAlign=3Dtop align=3Dleft width=3D"78%">
            <P><!-- InstanceBeginEditable name=3D"Date" --><SPAN =
class=3Dtitle1>APM=20
            Quarterly<BR>4th Quarter=20
            2006</SPAN><!-- InstanceEndEditable --><BR><SPAN =
class=3Dheadingsub>a=20
            publication of Applied Portfolio Management, KU School of=20
            Business</SPAN></P></TD></TR></TBODY></TABLE></TD>
    <TD><IMG height=3D85 alt=3D""=20
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        <TR>
          <TD class=3Dleftnewsheading>Inside This Issue:</TD></TR>
        <TR><!-- InstanceBeginEditable name=3D"Story List" -->
          <TD class=3Dleftsubheading>
            <UL>
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#kent">The=20
              Return of Kent </A>
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#dillon">Kroger=20
              CEO Dave Dillon </A>
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#mcadoo">Bob=20
              McAdoo </A>
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#koenig">Steve=20
              Koenig- JP Morgan </A>
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#laming">Tom=20
              Laming- TrendStar</A>=20
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#update">Stock=20
              Update </A>
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#donors">Donors</A>=20

              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#alums">Alumni=20
              News </A></LI></UL></TD><!-- InstanceEndEditable --></TR>
        <TR>
          <TD class=3Dleftnewsheading>Links:</TD></TR>
        <TR>
          <TD class=3Dleftsubheading>
            <UL>
              <LI><A href=3D"http://www2.business.ku.edu/apm" =
target=3D_blank>APM=20
              Website</A>=20
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/portfolio/portfoliotyped.shtml"=20
              target=3D_blank>APM Portfolio</A>=20
              <LI><A class=3Dleftsubheading =
href=3D"http://www.business.ku.edu/"=20
              target=3D_blank>KU Business</A>=20
              <LI><A href=3D"http://www.ku.edu/" target=3D_blank>KU Home =
</A>
              <LI><A href=3D"http://www.ku.edu/home/cshenoy" =
target=3D_blank>Prof.=20
              Shenoy's Homepage</A> </LI></UL></TD></TR></TBODY></TABLE>
    <TD vAlign=3Dtop align=3Dleft bgColor=3D#ffffff>
      <TABLE width=3D"100%" border=3D0>
        <TBODY>
        <TR>
          <TD vAlign=3Dtop align=3Dleft height=3D10><!-- =
InstanceBeginEditable name=3D"Beginning" -->
            <P class=3DmainHeading>Portfolio Performance Report<SPAN=20
            class=3Dstyle1><A=20
            =
href=3D"http://www2.business.ku.edu/apm/portfolio/2006performance.pdf"=20
            target=3D_blank>...more</A></SPAN></P><!-- =
InstanceEndEditable -->
            <TABLE class=3Dperformancefulltable cellSpacing=3D0 =
width=3D"100%"=20
            bgColor=3D#cccccc border=3D0><!--DWLayoutTable--><!-- =
InstanceBeginEditable name=3D"Performance Table" -->
              <TBODY>
              <TR>
                <TD class=3Dperformancetotal width=3D107>&nbsp;</TD>
                <TD class=3Dperformancetotal width=3D108>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance"><STRONG>Total=20
                  Return YTD</STRONG></A></DIV></TD>
                <TD class=3Dperformancetotal width=3D106>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance"><STRONG>4th=20
                  Q Return</STRONG></A></DIV></TD>
                <TD class=3Dperformancetotal width=3D111>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance"><STRONG>Latest=20
                  4 Quarters</STRONG></A></DIV></TD></TR>
              <TR class=3Dperformancetotal>
                <TD class=3Dperformancetotal><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance"><STRONG>SP500</STRONG></A></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">13.6%</A>=20
                  </DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">6.2%</A></DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">13.6%</A></DIV></TD></TR>
              <TR class=3Dperformancetotal>
                <TD class=3Dperformancetotal><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance"><STRONG>SP600</STRONG></A></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">14.1%</A></DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">7.6%</A></DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">14.1%</A></DIV></TD></TR>
              <TR class=3Dperformancetotal>
                <TD class=3Dperformancetotal><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance"><STRONG>NASDAQ</STRONG></A></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">11.0%</A></DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">7.4%</A></DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">11.0%</A></DIV></TD></TR>
              <TR class=3Dperformancetotal>
                <TD class=3Dperformancetotal><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance"><STRONG>APM=20
                  Managed </STRONG></A></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">23.4%</A></DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">12.9%</A></DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance">23.4%</A></DIV></TD></TR>
              <TR class=3Dperformancetotal>
                <TD class=3Dperformancetotal><A=20
                  =
href=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06.ht=
m#Performance"><STRONG>APM=20
                  Total</STRONG></A></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>29.18%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>12.9%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>29.18%</DIV></TD></TR><!-- =
InstanceEndEditable -->
              <TR>
                <TD height=3D3><IMG height=3D1 alt=3D""=20
                  =
src=3D"http://www2.business.ku.edu/apm/newsletter/templates/spacer.gif"=20
                  width=3D107></TD>
                <TD><IMG height=3D1 alt=3D""=20
                  =
src=3D"http://www2.business.ku.edu/apm/newsletter/templates/spacer.gif"=20
                  width=3D108></TD>
                <TD><IMG height=3D1 alt=3D""=20
                  =
src=3D"http://www2.business.ku.edu/apm/newsletter/templates/spacer.gif"=20
                  width=3D106></TD>
                <TD><IMG height=3D1 alt=3D""=20
                  =
src=3D"http://www2.business.ku.edu/apm/newsletter/templates/spacer.gif"=20
                  width=3D111></TD></TR></TBODY></TABLE><!-- =
InstanceBeginEditable name=3D"Main" -->
            <P class=3DmainHeadingBlue align=3Dleft><A id=3Dkent =
name=3Dkent></A>Kent=20
            McCarthy Grills APM Class</P>
            <P class=3Dauthor align=3Dleft>By Group 4: Adrienne =
Cichelli, Ryan=20
            Patton, Stefan Stoyanov </P>
            <P class=3DmainParagraph align=3Dleft>Applied Portfolio =
Management=20
            executive lecturer,<STRONG> Kent McCarth</STRONG>y, visited =
class on=20
            October 4th and 11th. During these two classes we discussed =
various=20
            holdings in the portfolio, with added emphasis on LSB =
Industries,=20
            Golden Meditech, and Internacional de Ceramica. On October =
4th, Mr.=20
            McCarthy was able to attend and lead the entire class =
session.=20
            Adding to the class discussion on this day were several =
conference=20
            calls Mr. McCarthy had set up with executives from LSB =
Industries,=20
            Golden Meditech, and the Baoye Group. In listening to these=20
            conversations, we were all able to learn a great deal more =
about the=20
            companies we had researched, LSB and Golden Meditech, and =
also gain=20
            some insight on the Baoye Group.<BR><BR>Mr. McCarthy =
returned on the=20
            eleventh and again led class discussion for the first half =
of the=20
            class. While Mr. McCarthy was leading discussion, we =
continued to=20
            focus on the companies that we had discussed during the =
previous=20
            week. However, in addition to the companies we called, we =
spent a=20
            great deal of this class discussing Internacional de =
Ceramica. It=20
            seemed that the class and Kent agreed that LSB Industries, =
Golden=20
            Meditech, and Internacional de Ceramica are all extremely=20
            under-valued. One stock we discussed that had the class =
somewhat=20
            split was Brooke Corporation. We had researched this company =
several=20
            weeks ago and their President, Anita Larson visited class to =
speak=20
            to us as well. However, between the uniqueness of their =
business=20
            model and accounting, the class as a whole was not =
convinced.=20
            However, Mr. McCarthy felt very strongly that they werea =
solid and=20
            exciting company. <BR><BR>Both of these classes were =
extremely=20
            educational. Simply hearing Kent speak to us gave us all a =
better=20
            understanding of how to value a company. Add to that the =
conference=20
            calls that we got to listen in on, and the questions we were =
asked=20
            and had answered, and these two classes were very beneficial =
for all=20
            of us.</P>
            <P class=3DmainHeadingBlue align=3Dleft><A id=3Ddillon=20
            name=3Ddillon></A>Kroger CEO Dave Dillon visits APM </P>
            <P class=3Dauthor align=3Dleft>By Group 5: Doug Goehl, =
Sydney Hayes,=20
            Marc Schmenner, Queena Tao</P>
            <P class=3DmainParagraph align=3Djustify>On November 8th, =
Mr.=20
            <STRONG>Dave Dillon</STRONG>, Chief Executive Officer of =
Kroger=20
            Co.(KR), came to speak to the APM Class. The Kroger Co. is =
one of=20
            the largest retailers in the United States. It operates =
under=20
            various brand names and retail formats and has stores in 44 =
major=20
            markets in 31 states. Mr. Dillon discussed the problems =
Kroger=20
            encountered in the 1990=92s and how Kroger has made =
strategic=20
            decisions to face the challenges in the competitive =
supermarket=20
            industry. Kroger=92s new strategic orientation is focused on =
sales=20
            growth through lower prices<IMG height=3D240 hspace=3D5=20
            =
src=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/dillon.JPG"=20
            width=3D320 align=3Dright vspace=3D5> and a strict =
orientation towards the=20
            needs of the customers, a component of the strategy referred =
to as=20
            =93customer First=94 by Mr. Dillon. While Kroger=92s margins =
have dropped=20
            over the years, Mr. Dillon explained that Kroger=92s =
business model is=20
            a sales driven growth model, which required price decreases =
from=20
            previously high levels. Kroger believes that in the =
long-run, the=20
            increased revenues resulting from this strategy will more =
than=20
            compensate for the decrease in profits stemming from the =
lower=20
            margins. To reduce the impact of lowered prices, Kroger is=20
            continuously working on reducing expenses to improve its=20
            margins.<BR><BR>Mr. Dillon discussed six important values =
inside the=20
            company: honesty, integrity, safety, diversity, inclusion =
and=20
            respect. He also talked about the importance of ethical =
values and=20
            about how as the CEO of his company he prepares for =
conference=20
            calls.<BR><BR>Mr. Dillon was elected Executive Officer of =
the Kroger=20
            Co. in June 2003. He received his undergraduate degree from =
the=20
            University of Kansas and was student body president. Sharing =
both=20
            his professional and his personal experiences, Mr. Dillon =
discussed=20
            how to develop leadership ability.</P>
            <P class=3DmainHeadingBlue align=3Dleft><A id=3Dmcadoo =
name=3Dmcadoo></A>Bob=20
            McAdoo Wows Class with Ryanair </P>
            <P class=3Dauthor align=3Dleft>By Group 3: Greg LaRue, Erin =
Rudy, Kevin=20
            Sandefur, Andrew Smith</P>
            <P class=3DmainParagraph align=3Dleft>Mr. <STRONG>Bob =
McAdoo</STRONG>, a=20
            sell side analyst with Prudential Equity Group since 2004, =
is no=20
            stranger to the airline industry. Before rejoining =
Prudential after=20
            a ten year absence, Mr. McAdoo gained first hand experience =
as an=20
            executive of a number of airlines. He rose to Vice President =
of TWA,=20
            and started two public airlines in which he held executive=20
            positions. He served as CEO of low cost Vanguard Airlines =
and CFO of=20
            People Express. Mixed in with all of his operations =
experience in=20
            the airline industry, he took a leap over to the investment =
side,=20
            holding positions as an airline analyst with two different =
firms=20
            from 1986-1991. in 2006 he was rated as Fortune's overall =
number 2=20
            analyst. Needless to say that he brought plenty of knowledge =
to the=20
            APM class at his alma matter.<BR><BR>Mr. McAdoo began the =
discussion=20
            by illustrating a brief overview of what it=92s like to be a =
sell side=20
            analyst, and how the analyst industry functions as a =
business=20
            itself. He explained what might be a typical day, giving =
advice and=20
            news information to institutional brokers, which in turn =
share this=20
            information with their clients. He also pointed out that it =
is a=20
            service industry in which your job is not just understanding =

            companies or financials but to make people money, and =
covered how=20
            compensation actually flows to the analyst from within the=20
            industry.<BR><BR>After the specifics of an analyst career =
and the=20
            work involved were covered, Mr. McAdoo moved on to discuss =
the=20
            airline industry from an investment perspective, eventually =
reaching=20
            the topic of the class=92s most recent analysis of RyanAir. =
His=20
            discourse ranged from correlations between the price of oil =
and=20
            stock movements to comparison of different industry =
player=92s cost=20
            structures to his general belief that airlines are becoming=20
            attractive investments again. He views airlines as =
attractive again=20
            for several reasons. Fuel is down, but fares have remained=20
            significantly above costs for the first time in a few years =
and=20
            airlines are likely to have established more hedges going =
forward.=20
            Also, demand is not letting up as we seem to be moving past =
recent=20
            terrorist issues. RyanAir is particularly interesting to him =
within=20
            the airline industry because of their high net margins, =
expected=20
            continued expansion, and little threat of a meaningful =
challenge=20
            from current competitors. His expertise involved with =
RyanAir built=20
            upon the student=92s own analyses, highlighting the =
class=92s strong=20
            points as well as ideas overlooked making for a tremendous =
learning=20
            experience. <BR></P>
            <P class=3DmainHeadingBlue align=3Dleft><A id=3Dkoenig=20
            name=3Dkoenig></A>Steve Koenig of JP Morgan speaks on =
Trading and More=20
            </P>
            <P class=3Dauthor align=3Dleft>By Group 2: Adam Hall, Alex =
Harbin, Dan=20
            Krejci </P>
            <P class=3DmainParagraph align=3Dleft>On November 8th 2006 =
the APM class=20
            welcomed Mr. <STRONG>Steve Koenig</STRONG>, who created the =
Latin=20
            American derivatives trading department for JP Morgan. Mr. =
Koenig=20
            was unlike any other visitor the class has had all year and =
his=20
            passion for derivatives and humo<IMG height=3D182 hspace=3D5 =

            =
src=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/apmnews_q4-06_cli=
p_image002.jpg"=20
            width=3D243 align=3Dleft vspace=3D6>r enticed the class into =
an=20
            interesting discussion. Topics included: derivative swaps, =
knockout=20
            features on options, no cost collars, and more. Mr. Koenig =
took the=20
            time to explain to students strategies for getting top jobs =
on Wall=20
            Street and shared his personal experiences. Mr. Koenig, who =
is self=20
            taught in derivatives, allowed students to see that there is =
no=20
            cookie cutter approach to obtaining top jobs, or being =
successful.=20
            He shared personal experiences on business ethics with =
student and=20
            made a point about the importance of honesty in the =
workplace. He=20
            discussed the difference between hedging and speculating =
with=20
            students and how thin the line can be sometimes. </P>
            <P><SPAN class=3DmainParagraph>Mr. Koenig=92s personality =
and knowledge=20
            made having him as a speaker for the APM class a wonderful=20
            experience. His visit created the most in depth analysis of=20
            derivatives the class has had all year. New ideas and =
strategies for=20
            asking officers of corporations questions provided students =
with=20
            valuable tools. Mr. Koenig explained how in life you keep =
gathering=20
            up mental tools and how each tool becomes a valuable asset =
in life=20
            and business. Mr. Koenig currently lives and works in New =
York City.=20
            His wife went to KU Medical School and they own a home in =
Stillwell,=20
            Kansas.</SPAN><BR></P>
            <P class=3DmainHeadingBlue align=3Dleft><A id=3Dlaming =
name=3Dlaming></A>Tom=20
            Laming of TrendStar</P>
            <P class=3Dauthor align=3Dleft>By Group 6: Steve Baru, =
Jeremy Simmons,=20
            Matt Terrill </P>
            <P class=3DmainParagraph align=3Dleft>On November 1, 2006, =
Mr.=20
            <STRONG>Tom Laming</STRONG>, President and Chief Information =
Officer=20
            of TrendStar Funds, provided his unique investing =
perspective to the=20
            class. Mr. Laming provided a fascinating introduction to his =
firm=92s=20
            strategy for investing based on identification of long-term =
market=20
            trends. TrendStar spots these trends utilizing a rather =
scientific=20
            and mathematical process of statistical analys<IMG =
height=3D238=20
            hspace=3D5=20
            =
src=3D"http://www2.business.ku.edu/apm/newsletter/q4-06/laming.JPG"=20
            width=3D235 align=3Dleft vspace=3D7>is that developed from =
its managers=92=20
            technical background. Factors that TrendStar focuses heavily =
on=20
            include demographic and technological trends, industry=20
            competitiveness, a company=92s ability to capitalize on =
identified=20
            trends, and traditional underlying financial strength of the =

            company. Mr. Laming=92s talk sparked a lengthy question and =
answer=20
            session with the students, who demonstrated curiosity in =
TrendStar=92s=20
            methods. Some students wondered if TrendStar=92s highly =
technical=20
            methods could cause them to miss important, emerging trends. =
Mr.=20
            Laming answered this by saying that his firm generally is =
not=20
            interested in emerging trends, but rather in unnoticed, =
underlying=20
            market trends that provide strong long-term growth prospects =
instead=20
            of short-term possibility. The visit was challenging and =
informative=20
            to the KU students, forcing them to think outside the =
typical box of=20
            stock analysis and market evaluation and exposing them to an =

            alternative, successful method for investing.</P>
            <P class=3DmainParagraph>Mr. Laming earned his bachelor=92s =
degree in=20
            physics from the University of Kansas, his Master=92s of =
Aeronautics=20
            and Astronautics from MIT, and his MBA from Indiana =
University.=20
            Prior to his current position at TrendStar, he has held =
positions as=20
            an engineer with TRW at the Johnson Space Center in Houston, =
as a=20
            technology analyst with Waddell &amp; Reed, and as a manager =
of the=20
            Buffalo Funds at Kornitzer Capital Management.</P>
            <P class=3DmainHeadingBlue align=3Dleft><A id=3Dupdate=20
            name=3Dupdate></A>Stock Updates </P>
            <P class=3Dauthor align=3Dleft>By Group 7: Barbara Hewitt, =
Brent Mason,=20
            Shawn Schneider, Brent Mason </P>
            <P class=3DmainParagraph align=3Dleft>Garmin continues to =
perform=20
            extremely well. The APM portfolio currently ho<IMG =
height=3D97=20
            hspace=3D5=20
            =
src=3D"http://www2.business.ku.edu/apm/images/garminolathe.jpg"=20
            width=3D231 align=3Dright vspace=3D2>lds 1050 shares of =
Garmin, and it=20
            represents just over 5% of the portfolio. It opened the year =
trading=20
            around $33, and, as of 12/12/06, had grown to almost $52. =
Garmin=92s=20
            third quarter earnings came in right at analysts=92 =
expectations of=20
            $.50. However, analysts are expecting a strong holiday =
quarter with=20
            FY 2006 EPS estimates moving from $2.01 to $2.06 over the =
past 60=20
            days, representing a 54% Y/Y EPS growth for Garmin this =
year. Much=20
            of the boost is a result of Garmin=92s strength in the very =
hot=20
            personal navigation device (PND) segment.<BR><BR>Going =
forward, the=20
            thing to watch for is the possibility of margin compression. =
Garmin=20
            has done extremely well at bringing new technology to the =
market=20
            faster than competitors, which has allowed them to manage =
their=20
            margins better than most of their competitors. However, as =
the space=20
            becomes ever more competitive, Garmin will continue to face=20
            tightening margins. </P>
            <P><SPAN class=3DmainParagraph>Although tighter margins do =
appear to=20
            be in store for Garmin, it isn=92t a fate that analysts =
expect Garmin=20
            to face in the immediate future. The sentiment among the =
followers=20
            of the PND segment is that retailers may have underestimated =
the=20
            demand for PNDs this holiday season. Up almost 60% this year =
already=20
            and heading into what appears to be a very strong holiday =
quarter,=20
            Garmin, along with its shareholders, looks to be positioned =
for a=20
            very profitable new year.</SPAN></P>
            <P class=3DmainHeading><A name=3Dalums></A>Condolences to =
Jeremy Simmons=20
            and Family</P>
            <P class=3DmainParagraph><SPAN class=3DmainParagraph>In =
</SPAN>November=20
            APM student Jeremy Simmons lost his brother, Jamie, in a car =

            accident. Jeremy put together a 3-on-3 basketball tournament =
on New=20
            Year's Eve to raise money for the Jamie Simmons Memorial =
Scholarship=20
            Fund. The APM class is donating $500 to the fund and Kent =
McCarthy=20
            has matched that with a $1000 gift. Anyone wishing to donate =
can=20
            send a check to:<BR><BR>Jamie Simmons Memorial Scholarship=20
            Fund<BR>3126 Nanette Drive<BR>St. Joseph, MO. 64506 <BR></P>
            <P class=3DmainHeading>Alumni News </P>
            <P class=3DmainParagraph><STRONG>Keven Knipp </STRONG>(S05) =
is working=20
            on his Masters of Accounting program at the University of =
Southern=20
            California. He is taking another portfolio management class. =
He just=20
            can't get enough!</P>
            <P class=3DmainParagraph><STRONG>Tim Burger </STRONG>(S05) =
is working=20
            as an analyst covering the industrial sector for UMB Asset=20
            Management.</P>
            <P class=3DmainParagraph><STRONG>Derek Smashey</STRONG> =
(F04) joined=20
            UMB in November. He is the Assistant Portfolio Manager for =
Pat=20
            Dunkerly's Scout Midcap Fund.</P>
            <P class=3DmainParagraph><STRONG>Brent Mason </STRONG>(F06) =
had a busy=20
            December. He started as an analyst at Nations Media =
Partners, a=20
            boutique investment bank in Kansas City. He and Angela Link=20
            announced their engagement on Dec 9. They are planning an =
April=20
            wedding. </P>
            <P class=3DmainParagraph><STRONG>Barbara Hewitt =
</STRONG>(F06)=20
            accepted a position as a Project Analyst in the Globals =
Division of=20
            PRA International. </P>
            <P class=3DmainParagraph><STRONG>Alums send us your news!=20
</STRONG></P>
            <P class=3DmainParagraph>&nbsp;</P>
            <P class=3DmainParagraph><SPAN class=3DmainHeading><A=20
            name=3Ddonors></A>Thanks to all our Recent =
Donors!</SPAN></P>
            <TABLE cellSpacing=3D2 width=3D400 border=3D0>
              <TBODY>
              <TR class=3Dstyle1>
                <TD class=3Ddonor>David Reynoldson </TD>
                <TD class=3Ddonor>Josh Selzer </TD></TR>
              <TR class=3Dperformancetotal>
                <TD class=3Ddonor>Charles D. and Marie McCarthy</TD>
                <TD>Fred Coulson </TD></TR>
              <TR class=3Dperformancetotal>
                <TD>Kim and Gene Diederich</TD>
                <TD><SPAN class=3Ddonor>Teal Dakan</SPAN></TD></TR>
              <TR class=3Dperformancetotal>
                <TD><SPAN class=3Ddonor>Jim and Julie Colahan =
</SPAN></TD>
                <TD class=3Ddonor>Jon Blumb</TD></TR>
              <TR class=3Dperformancetotal>
                <TD><SPAN class=3Ddonor>Scott F. Jones </SPAN></TD>
                <TD class=3Ddonor>Todd and Colleen Preheim</TD></TR>
              <TR class=3Dperformancetotal>
                <TD><SPAN class=3Ddonor>Jim and Nancy =
MacMurray</SPAN></TD>
                <TD>Amos Smith </TD></TR>
              <TR class=3Dperformancetotal>
                <TD>Simon Michael </TD>
                <TD>John Katzer </TD></TR>
              <TR class=3Dperformancetotal>
                <TD>Bart Baldwin </TD>
                <TD>Hugh Gill </TD></TR>
              <TR class=3Dperformancetotal>
                <TD>William Hannen </TD>
                <TD>Sydney Pohl </TD></TR>
              <TR class=3Dperformancetotal>
                <TD>Greg Baugh </TD>
                <TD>Andrew Steinbach </TD></TR>
              <TR class=3Dperformancetotal>
                <TD>Matt Taylor </TD>
                <TD>Charles Heath </TD></TR>
              <TR class=3Dperformancetotal>
                <TD>Harry Falk </TD>
                <TD>&nbsp;</TD></TR></TBODY></TABLE>
            <P class=3DmainParagraph><A name=3Dcontribute></A>If you =
would like to=20
            donate, Kent is matching alumni donations 2:1 and all others =
1:1.=20
            Send your contributions to <BR><BR><SPAN =
class=3Dsmalltext>School of=20
            Business Endowment<BR>Applied Portfolio Management<BR>c/o =
Gregory J.=20
            Lamb <BR>KU School of Business<BR>1300 Sunnyside =
Avenue<BR>Lawrence,=20
            Kansas 66045-7585</SPAN></P>
            <P class=3DmainParagraph>&nbsp;</P>
            <P=20
        class=3DmainParagraph><BR></P><!-- InstanceEndEditable =
--></TD></TR></TBODY></TABLE>
      <TABLE width=3D"100%" border=3D0>
        <TBODY>
        <TR>
          <TD class=3Dcopyright vAlign=3Dcenter align=3Dmiddle>Copyright =
2004,=20
            Applied Portfolio Management Program<BR>University of Kansas =
School=20
            of Business</TD></TR></TBODY></TABLE></TD>
    <TD class=3Drightpane vAlign=3Dtop align=3Dleft>
      <P>&nbsp;</P></TD>
    <TD><IMG height=3D167 alt=3D""=20
      =
src=3D"http://www2.business.ku.edu/apm/newsletter/templates/spacer.gif"=20
      width=3D1 border=3D0></TD></TR></TBODY></TABLE><!-- InstanceEnd =
--></BODY></HTML>

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------=_NextPart_000_0147_01C7EBDD.30DCE070
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------=_NextPart_000_0147_01C7EBDD.30DCE070
Content-Type: text/css;
	charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
Content-Location: http://www2.business.ku.edu/apm/css/apm_styles.css

.leftpane {
	BORDER-RIGHT: #666666 1px solid; PADDING-RIGHT: 0px; PADDING-LEFT: 0px; =
FONT-SIZE: 10px; BACKGROUND-IMAGE: url(left_bgnd.jpg); PADDING-BOTTOM: =
0px; PADDING-TOP: 0px; BACKGROUND-REPEAT: repeat-x; FONT-FAMILY: Tahoma, =
Verdana, Arial
}
.toppane {
	BORDER-BOTTOM: #666666 1px solid; FONT-FAMILY: Verdana, Tahoma, Arial; =
BACKGROUND-COLOR: #990000
}
.headingsub {
	FONT-WEIGHT: bold; FONT-SIZE: 10px; COLOR: #cccccc; FONT-FAMILY: =
Verdana, Tahoma, Arial
}
.topright {
	BACKGROUND-POSITION: right top; BACKGROUND-IMAGE: =
url(topright_bgnd.jpg); BACKGROUND-REPEAT: repeat-y; BACKGROUND-COLOR: =
#990000
}
.topleft {
	BACKGROUND: url(topleft_watermark.jpg) #990000 fixed no-repeat right =
top
}
.title1 {
	FONT-WEIGHT: bold; FONT-SIZE: 24px; COLOR: #cccccc; FONT-FAMILY: =
Tahoma, Verdana, Arial
}
.rightpane {
	BACKGROUND-POSITION: left top; FONT-SIZE: 10px; BACKGROUND-IMAGE: =
url(rightpane.gif); BORDER-LEFT: #666666 1px solid; BACKGROUND-REPEAT: =
no-repeat; FONT-FAMILY: Tahoma, Verdana, Arial; BACKGROUND-COLOR: =
#cccccc
}
.leftnewsheading {
	PADDING-LEFT: 1px; FONT-SIZE: 12px; COLOR: #ffffff; FONT-FAMILY: =
Verdana, Tahoma, Arial; BACKGROUND-COLOR: #666666
}
.leftsubheading {
	PADDING-RIGHT: 0px; PADDING-LEFT: 2px; FONT-SIZE: 10px; PADDING-BOTTOM: =
0px; COLOR: #000000; PADDING-TOP: 0px; FONT-FAMILY: Tahoma, Verdana, =
Arial
}
.copyright {
	FONT-SIZE: 9px; COLOR: #666666; FONT-FAMILY: Tahoma, Verdana, Arial
}
A:link {
	COLOR: #666699; TEXT-DECORATION: none
}
A:hover {
	COLOR: #666699; TEXT-DECORATION: underline
}
A:visited {
	COLOR: #666699; TEXT-DECORATION: none
}
bodyHeading {
	FONT-SIZE: 14px; WORD-SPACING: 5px; FONT-FAMILY: Verdana, Tahoma, Arial
}
mainHeading {
	FONT-SIZE: 18px; FONT-FAMILY: Verdana, Tahoma, Arial
}
.mainHeading {
	FONT-SIZE: 18px; WORD-SPACING: 7px; COLOR: #333333; BORDER-BOTTOM: =
#999999 1px solid; FONT-FAMILY: Verdana, Tahoma, Arial; LETTER-SPACING: =
4px
}
.mainParagraph {
	PADDING-RIGHT: 3px; PADDING-LEFT: 3px; FONT-SIZE: 12px; PADDING-BOTTOM: =
1px; COLOR: #000000; TEXT-INDENT: 1em; PADDING-TOP: 1px; FONT-FAMILY: =
Tahoma, Verdana, Arial; TEXT-ALIGN: justify
}
.portperformtitle {
	FONT-WEIGHT: bold; FONT-SIZE: 14px; LEFT: 0px; COLOR: #333333; =
BORDER-BOTTOM: #666666 1px solid; FONT-FAMILY: Verdana, Tahoma, Arial
}
.performancetotal {
	BORDER-TOP: #666666 1px solid; FONT-SIZE: 11px; FONT-FAMILY: Tahoma, =
Verdana, Arial
}
.performancefulltable {
	BORDER-RIGHT: #666666 1px solid; BORDER-TOP: #666666 1px solid; =
BORDER-LEFT: #666666 1px solid; BORDER-BOTTOM: #666666 1px solid
}
.author {
	FONT-SIZE: 10pt; WORD-SPACING: 7px; COLOR: #333333; TEXT-INDENT: 3em; =
FONT-FAMILY: Verdana, Tahoma, Arial; LETTER-SPACING: 3px
}
.subtitle {
	FONT-WEIGHT: bold; FONT-SIZE: 11pt; COLOR: #666666; FONT-STYLE: normal; =
FONT-FAMILY: Verdana, Tahoma, Arial
}
.mainHeadingpagebreak {
	FONT-SIZE: 18px; PAGE-BREAK-BEFORE: always; WORD-SPACING: 7px; COLOR: =
#333333; BORDER-BOTTOM: #999999 1px solid; FONT-FAMILY: Verdana, Tahoma, =
Arial; LETTER-SPACING: 4px
}
.caption {
	FONT-WEIGHT: bold; FONT-SIZE: x-small; FONT-STYLE: normal; FONT-FAMILY: =
Verdana, Tahoma, Arial, sans-serif
}
.link {
	FONT-WEIGHT: bold; FONT-SIZE: small; COLOR: #0066ff; FONT-FAMILY: =
Verdana, Tahoma, sans-serif; TEXT-DECORATION: underline
}
.perfomancelink {
	BORDER-TOP: #666666 1px solid; FONT-WEIGHT: bolder; FONT-SIZE: 11px; =
COLOR: #0066cc; FONT-FAMILY: Tahoma, Verdana, Arial; TEXT-DECORATION: =
underline
}
.list {
	PADDING-RIGHT: 3px; PADDING-LEFT: 3px; FONT-WEIGHT: lighter; =
LIST-STYLE-POSITION: inside; FONT-SIZE: 12px; PADDING-BOTTOM: 1px; =
COLOR: #000066; TEXT-INDENT: 5em; PADDING-TOP: 1px; FONT-FAMILY: Tahoma, =
Verdana, Arial; LIST-STYLE-TYPE: disc; POSITION: relative; TOP: auto; =
TEXT-ALIGN: justify
}
.smallpurplelink {
	FONT-SIZE: 10px; COLOR: #666699; FONT-STYLE: normal; FONT-FAMILY: =
Verdana, Tahoma, Arial; TEXT-DECORATION: none
}
.smalltext {
	FONT-SIZE: 10px; FONT-STYLE: normal; FONT-FAMILY: Verdana, Tahoma, =
Arial
}
.smallpurplelink A:hover {
	TEXT-DECORATION: underline
}
A.smallpurplelink:hover {
	TEXT-DECORATION: underline
}
.mainHeadingBlue {
	FONT-SIZE: 18px; WORD-SPACING: 7px; COLOR: #000066; BORDER-BOTTOM: =
#999999 1px solid; FONT-FAMILY: Verdana, Tahoma, Arial; LETTER-SPACING: =
4px
}
.donor {
	BORDER-RIGHT: 0px; BORDER-TOP: #666666 0px; FONT-SIZE: 11px; =
BORDER-LEFT: 0px; BORDER-BOTTOM: 0px; FONT-FAMILY: Tahoma, Verdana, =
Arial
}
.golfheader {
	FONT-WEIGHT: bold; FONT-SIZE: x-large; TEXT-TRANSFORM: capitalize; =
COLOR: #000066; FONT-STYLE: normal; FONT-FAMILY: Verdana, Tahoma, Arial, =
sans-serif; TEXT-ALIGN: center; FONT-VARIANT: normal
}
.golfsubheader {
	FONT-WEIGHT: normal; FONT-SIZE: large; TEXT-TRANSFORM: capitalize; =
COLOR: #970f1d; FONT-STYLE: normal; FONT-FAMILY: Verdana, Tahoma, Arial, =
sans-serif; TEXT-ALIGN: center; FONT-VARIANT: normal
}
.golfmain {
	FONT-WEIGHT: bold; FONT-SIZE: 14px; WORD-SPACING: 7px; COLOR: #000066; =
BORDER-BOTTOM: #999999 thin; FONT-FAMILY: Verdana, Tahoma, Arial; =
LETTER-SPACING: 4px; TEXT-ALIGN: center
}
.researchlist {
	FONT-SIZE: small; COLOR: #000033; FONT-STYLE: normal; FONT-FAMILY: =
Verdana, Tahoma, Arial, sans-serif; HEIGHT: auto; TEXT-ALIGN: left
}

------=_NextPart_000_0147_01C7EBDD.30DCE070--
