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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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            <P><!-- InstanceBeginEditable name=3D"Date" --><SPAN =
class=3Dtitle1><A=20
            name=3Dtop></A>APM Quarterly<BR>3rd Quarter 2004</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
      =
src=3D"http://www2.business.ku.edu/apm/newsletter/templates/spacer.gif"=20
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    <TD class=3Dleftpane vAlign=3Dtop align=3Dleft bgColor=3D#ffffff>
      <TABLE width=3D"100%" border=3D0>
        <TBODY>
        <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/q3-04/apmnews_q3-04.ht=
m#s2">Portfolio=20
              Performance</A>=20
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#s3">Investing=20
              in China</A>=20
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#s4">Matt=20
              Taylor Interview</A>=20
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#s5">Group=20
              4 Profile</A>=20
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#s6">Jones=20
              and Preheim</A>=20
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#s7">Group=20
              1 Profile </A>
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#s8">Quick=20
              Stock Updates</A> - VLO, KR, OPLK, HDTV=20
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#s9">Alumni=20
              News </A>
              <LI><A=20
              =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#s10">Donor=20
              Honor Roll </A><BR></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><!-- InstanceBeginEditable =
name=3D"Beginning" -->
            <P class=3DmainHeading><A=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#perform">Portfolio=20
            Performance</A> <SPAN class=3Dstyle8><A=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#s2">see=20
            full story </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=20
                width=3D107><!--DWLayoutEmptyCell-->&nbsp;</TD>
                <TD class=3Dperformancetotal width=3D108>
                  <DIV align=3Dcenter><STRONG>Total Return =
YTD</STRONG></DIV></TD>
                <TD class=3Dperformancetotal width=3D106>
                  <DIV align=3Dcenter><STRONG>3rd Q =
Return</STRONG></DIV></TD>
                <TD class=3Dperformancetotal width=3D111>
                  <DIV align=3Dcenter><STRONG>Latest 4=20
              Quarters</STRONG></DIV></TD></TR>
              <TR>
                <TD class=3Dperformancetotal><STRONG>SP500</STRONG></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>0.2%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>-2.3%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>9.5%</DIV></TD></TR>
              <TR>
                <TD class=3Dperformancetotal><STRONG>SP600</STRONG></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>7.8%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>-1.6%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>20.4%</DIV></TD></TR>
              <TR>
                <TD =
class=3Dperformancetotal><STRONG>NASDAQ</STRONG></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>-5.3%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>-7.4%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>3.5%</DIV></TD></TR>
              <TR>
                <TD class=3Dperformancetotal><STRONG>APM</STRONG></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>9.0%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>5.1%</DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter>17.1%</DIV></TD></TR>
              <TR>
                <TD =
class=3Dperformancetotal><STRONG>APM-adjusted</STRONG></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><STRONG>4.1%</STRONG></DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV align=3Dcenter><STRONG>5.1%</STRONG></DIV></TD>
                <TD class=3Dperformancetotal>
                  <DIV =
align=3Dcenter><STRONG>21.6%</STRONG></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=3DmainHeading><A name=3Ds1></A>APM Class Going =
Strong<BR><SPAN=20
            class=3Dauthor>by Catherine Shenoy</SPAN></P>
            <P class=3DmainParagraph>This quarter and this semester APM =
has had=20
            lots of good investment performance, great students, and =
<IMG=20
            height=3D138=20
            =
src=3D"http://www2.business.ku.edu/apm/images/f04_cs_q3_newsletter.jpg"=20
            width=3D159 align=3Dleft border=3D1>impressive speakers. One =
highlight of=20
            the semester was the Investing in China conference sponsored =
by the=20
            Business School. The featured speaker was Kent McCarthy, and =
there=20
            was a big turnout by the Kansas City community. See David =
Brown=92s=20
            article about the conference in this edition. Kent was in =
class=20
            September 22, 29 and October 3. He discussed Sohu, Sina, and =

            chinadotcom. He also provided his thoughts on LSB and more. =
He=20
            hosted his First Annual Jayhawk Capital Shareholder meeting =
the=20
            afternoon before the Investing in China conference. Several =
students=20
            were invited to attend. The class also met with Kent at =
Barley=92s=20
            after the October 3 class. It was great to spend a few =
minutes=20
            relaxing with Brad Shoup and Kent after a 4 hour class!</P>
            <P class=3DmainParagraph>We kicked off the semester with a =
visit from=20
            class alum=92s Todd Preheim and Scott Jones. Group 2 has a =
full=20
            article, but I would like to thank them for the extra time =
and=20
            effort they=92ve spent with the class over the last few =
years. This=20
            semester their donation enables the class to have access to =
Thomson=20
            Analytics and the First Call analyst reports. Students are =
now able=20
            to read up-to-the-minute research as it becomes available. =
I=92ve=20
            found the resource to be tremendously valuable. They=92ve =
also been=20
            urging me for a while to plan an APM reunion golf =
tournament. We=92re=20
            tentatively looking at having the golf tournament on the =
Friday=20
            before the first KU football game in 2005. Mark your =
calendars and=20
            I=92ll keep you posted.</P>
            <P class=3DmainParagraph>In addition to Scott and Todd, =
we=92ve had a=20
            great group of speakers so far this semester:<SPAN =
class=3Dstyle3><IMG=20
            height=3D164=20
            =
src=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/brad_shoup.jpg"=20
            width=3D246 align=3Dright border=3D1></SPAN></P>
            <UL>
              <LI class=3Dstyle7>Mark Fleischhauer=96 VP, Jayhawk =
Capital. Mark=20
              discussed LSB and BHBC.=20
              <LI class=3Dstyle7>Brad Shoup =96 Principal, BCS Capital. =
Brad=20
              recommended Encore Acquisition (EAC). The class now owns a =
3%=20
              position.=20
              <LI class=3Dstyle7>Scott Hartman - CEO Novastar (NFI). We =
purchased=20
              more for the portfolio after his talk. </LI></UL>
            <P class=3DmainParagraph>In October, Matt Michaelis =96 APM =
Alum and VP=20
            of Jeffrey Williams &amp; Co. =96 is coming in from New York =
to speak=20
            about local wireless. Kent Gasaway is returning to talk =
about=20
            Kornitzer Capital and the Buffalo Fund. Todd Banks is also =
returning=20
            to discuss his company, BlackThorne Capital and their =
strategy.=20
            Marcey Berges, APM alum and CFO, Jayhawk Capital, and Carol =
DiRasio,=20
            CFO Applebee=92s International will also be in.</P>
            <P class=3DmainParagraph>We haven=92t had as many call-ins =
as usual, but=20
            Tony Shelby, CFO LSB Industries,<IMG height=3D164 hspace=3D2 =

            =
src=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/class.jpg"=20
            width=3D246 align=3Dright vspace=3D1 border=3D1> called in =
twice, once to=20
            discuss the company and the next week to review the case =
write-ups=20
            in detail. He had many detailed comments for the students. =
During=20
            Mr. Shelby=92s second call, APM Alum Jon Blumb, took some =
wonderful=20
            shots of the class. Jon is a professional photographer and =
has=20
            donated his time and talents to us in the past. Many of the =
shots=20
            for this newsletter are from that photo session. To see a =
slide show=20
            of some of the shots, go to: <A=20
            =
href=3D"http://www2.business.ku.edu/apm/f2004class_show/index.html">http:=
//www2.business.ku.edu/apm/f2004class_show/index.html</A>.=20
            </P>
            <P class=3DmainParagraph>Many thanks to all of our students, =

            supporters, alums, and speakers. You make the class very=20
special.</P>
            <P class=3DmainParagraph><SPAN class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></P>
            <P><SPAN class=3DmainHeadingpagebreak><A name=3Ds2></A>Third =
Quarter APM=20
            Portfolio Performance Report</SPAN><BR><SPAN =
class=3Dauthor>by Group=20
            3</SPAN></P>
            <P>T<SPAN class=3DmainParagraph>he APM portfolio ended the =
third=20
            quarter at $696,875, up $28,740 over the last three months. =
This=20
            equates to a positive return of 5.1% compared to negative =
third=20
            quarter returns for the major market indices. Our =
year-to-date=20
            return of 4.1% trails the S&amp;P 600 smallcap index, but =
has=20
            managed to beat the S&amp;P 500, S&amp;P 600, Value Line, =
and NASDAQ=20
            indices over the last four quarters.</SPAN></P>
            <P class=3DmainParagraph>It has been an active quarter for =
the APM=20
            portfolio with 12 transactions compared to 8 in the second =
quarter.=20
            Sales of note include the selling off our entire 2,500 =
shares of=20
            Level 3 Communications (LVLT). We also pared down our share =
holdings=20
            of Garmin (GRMN) by 17%, chinadotcom (CHINA) by 11%, LSB =
Industries=20
            (LXU) by 14%, and Beverly Hills Bancorp (BHBC) by 24%. </P>
            <P><SPAN class=3DmainParagraph>On the buy side, we started =
out the=20
            quarter by taking a small position of 50 shares in Jiangxi =
Copper=20
            ADR at $19.90. We have since added significantly to our =
interest in=20
            the company on the Hong Kong market on October 1st. We also =
added a=20
            position in China Green Holdings (904 on the Hong Kong =
exchange) by=20
            picking up 72,000 shares in two separate transactions at an =
average=20
            price of $0.23. Another new purchase was Encore Acquisition =
Co.=20
            (EAC) on September 23rd. We bought 500 shares of EAC at =
$32.80, our=20
            first holding in this company. After only one week, EAC =
closed the=20
            quarter up 5.2% at $34.50. Finally, this quarter we added =
800=20
            additional shares of SOHU to our portfolio, bringing the =
total to=20
            2,300 shares.</SPAN></P>
            <P class=3DmainParagraph><SPAN class=3DmainParagraph><IMG =
height=3D271=20
            =
src=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/perform.jpg"=20
            width=3D390>Significant winners over the third quarter =
included our=20
            short in Qiao Xing Universal Telephone (XING), chinadotcom =
(CHINA),=20
            LSB Industries common (LXU), and our new holding in Jiangxi =
Copper=20
            ADR (JIXAY). Losers in the portfolio included American =
Italian Pasta=20
            (PLB), Kroger (KR), SOHU.com (SOHU), and PC Tel (PCTI). =
</SPAN></P>
            <P class=3DmainParagraph align=3Dleft><SPAN =
class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN><BR></P>
            <P><SPAN class=3DmainHeadingpagebreak><A =
name=3Ds3></A>Investing in=20
            China Seminar - A Big Success</SPAN><BR><SPAN =
class=3Dauthor>By David=20
            Brown</SPAN></P>
            <P class=3DmainParagraph>On September 24, 2004, =
professionals,=20
            academics, and students alike gathered<IMG height=3D298=20
            =
src=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/kent_china.jpg"=20
            width=3D199 align=3Dright border=3D1> at the Overland Park =
Convention=20
            Center to learn about and discuss the merits of investing in =
China.=20
            Professors from the KU School of Business, Claremont =
Graduate=20
            University, and the Yale School of Management made =
presentations=20
            along with professionals ranging from lawyers and =
accountants to=20
            economists and portfolio managers.</P>
            <P class=3DmainParagraph>The morning session began with =
presentations=20
            from a panel of academic experts who discussed background=20
            information about China and their individual experiences in =
China.=20
            While each of the panelists recognized the tremendous growth =
that=20
            has taken place and may continue to take place in China, =
each also=20
            had reservations that seemed to outweigh the positives from =
an=20
            investing standpoint. The panelists saw the largest danger =
in=20
            China=92s weak legal system, one that does not provide for =
civil=20
            lawsuits and thus does not afford investors the protection =
we are=20
            accustomed to here in the United States. Other important =
issues were=20
            cited, such as the geopolitical issues involving Taiwan and =
North=20
            Korea, environmental issues, disease, growing income =
disparity, and=20
            growing unemployment.</P>
            <P class=3DmainParagraph>In addition to presenting the =
drawbacks of=20
            investing in China, the panelists also spoke on the =
geography of=20
            China and its effect on population distribution and thus the =

            economics of investing in China. By showing population =
density maps=20
            and presenting materials based on his own experiences, =
Professor Yi=20
            Feng (Claremont University) suggested that the Tiajin, =
Hubei, Hunan,=20
            and Fujain Provinces provide the best environment for =
current=20
            investing.</P>
            <P class=3DmainParagraph>The second morning session =
highlighted=20
            another panel of academic experts that talked about the =
evolution of=20
            capital markets in China. The background of how companies =
have been=20
            privatized and what the legal rights of various shares of =
stock are=20
            were discussed in great detail. Much attention was paid to =
the=20
            difference between A shares (only may be invested in by the =
Chinese)=20
            and B shares (open to US investors) and the discrepancies =
that exist=20
            between the markets for these different shares. While this=20
            information was useful, little attention was paid to how we =
as=20
            investors could do more than buy what ADRs are available in =
the=20
            United States. However, later in the day Kent McCarthy would =
fill in=20
            this gap by pointing out the usefulness of H (Hong Kong) =
shares=20
            which are open to all investors.</P>
            <P class=3DmainParagraph>Following lunch, Kent McCarthy, APM =
found and=20
            president of Jayhawk China Fund, addressed the group with =
his=20
            keynote speech. He spoke about experiences he has had =
investing in=20
            China as well as opportunities he sees there in the future. =
In a=20
            respectful manner he countered the presentations of the =
morning by=20
            detailing his logic behind why investors in China can expect =
to=20
            triple their money in the coming years. He addressed the =
criticisms=20
            that each panelist had by sharing his experiences or =
comparing it to=20
            the US markets. In response to a comment that China=92s =
market fails=20
            to allocate resources well, McCarthy quickly and with humor=20
            referenced the tech-bubble of the late 90s. Kent=92s =
engaging style=20
            was evidenced by the audience=92s numerous questions. Kent =
fielded=20
            questions until they had to be cutoff due to time =
constraints.</P>
            <P class=3DmainParagraph>The afternoon panels consisted of =
portfolio=20
            managers instead of academics. They followed in the path =
Kent had=20
            set forth and each made concise arguments for investing in =
China=20
            according to their own areas of expertise. The short and =
powerful=20
            messages that each speaker brought forward made for a lively =
Q&amp;A=20
            session in which many ideas were shared and debated. </P>
            <P><SPAN class=3DmainParagraph>The reception following the =
last panel=20
            discussion gave everyone a chance to reflect and discuss the =
various=20
            experiences of the day. The entire conference brought to =
light many=20
            views and provided a well-rounded experience for all those =
involved.=20
            The variety of opinions that were expressed throughout the =
day gave=20
            the audience plenty to think about and forced them to make =
up their=20
            own minds about China and its appeal for =
investing.</SPAN><BR><SPAN=20
            class=3DmainParagraph><SPAN class=3DmainHeading><A =
class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></SPAN>=20
            </P>
            <P><SPAN class=3DmainHeadingpagebreak><A =
name=3Ds4></A>Mentor Interview:=20
            Matt Taylor and Garmin</SPAN><BR><SPAN class=3Dauthor>By =
Group 3<IMG=20
            height=3D180=20
            =
src=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/taylor.jpg"=20
            width=3D269 align=3Dleft border=3D1></SPAN></P>
            <P class=3DmainParagraph>When a group recommends the short =
sale or=20
            purchase of a new stock for the APM portfolio, at least one =
member=20
            of the group agrees to serve as the alumni mentor for as =
long as the=20
            stock is in the portfolio. Alumni mentors are responsible =
for=20
            keeping the class and portfolio manager up to date on the =
stock, and=20
            are invited to all group presentations relating to the =
stock. Matt=20
            Taylor is the current alumni mentor for Garmin (GRMN), the =
Kansas=20
            City-based manufacturer of GPS devices. His group =
recommended the=20
            initial purchase of Garmin in the Fall 2002 semester. Matt =
agreed to=20
            answer a few questions about his experiences. </P>
            <P class=3DmainParagraph>Group 3 (G3): Tell us a little =
about your=20
            background and what you have been doing since leaving the =
APM=20
            class.</P>
            <P class=3DmainParagraph>Matt Taylor (MT): I graduated with =
my MBA in=20
            May 2003 and went to work for Ernst &amp; Young, LLP. I am =
currently=20
            working with the Technology and Security Risk Services group =
in KC.=20
            I am actively involved in a number of Sarbanes Oxley 404 =
audits at=20
            various public companies. It is keeping me very busy, as =
many of=20
            these firms will have to file their reports by December 31 =
of this=20
            year. My educational background is in Finance and =
Information=20
            Security, which both come in very handy in my current =
position.</P>
            <P class=3DmainParagraph>G3: What did your group see in your =
analysis=20
            that convinced you that APM should own Garmin shares?</P>
            <P class=3DmainParagraph>MT: At the time we first covered =
Garmin, we=20
            were immediately impressed with the 45+ percent aggregate =
profit=20
            margin the company enjoyed at that time. The company also =
benefited=20
            greatly from its first mover position it held in the =
aviation and=20
            consumer industries. These two reasons, combined with three =
straight=20
            quarters of double digit revenue growth made Garmin a very=20
            attractive pick.</P>
            <P class=3DmainParagraph>G3: Garmin has continued to exhibit =
strong=20
            revenue growth. However, there is some concern that the =
introduction=20
            of lower-margin products along with increased competition =
may=20
            continue to negatively impact earnings going forward. Do you =
feel=20
            that Garmin still exhibits the positive characteristics that =

            originally attracted your group to the stock?</P>
            <P class=3DmainParagraph>MT: Obviously the fact that profit =
margin is=20
            dropping is a legitimate concern going forward. The =
decreased profit=20
            margin has led to the company guiding earning estimates =
lower lately=20
            and it has negatively affected the stock price. However, I =
still=20
            believe this company has a very impressive business model, =
and=20
            R&amp;D has not slowed at all. As GPS technology continues =
to=20
            improve, notice that Garmin has stayed ahead of the =
competition in=20
            terms of product quality and sales volume. I don=92t expect =
this to=20
            change any time soon.</P>
            <P class=3DmainParagraph>G3: What is the best and worst part =
about=20
            being a stock mentor for the APM class? </P>
            <P class=3DmainParagraph>MT: I enjoy being a stock mentor =
for APM=20
            because it gives me the opportunity to discuss my favorite =
stock=20
            with others. It keeps me up to date on what is going on in =
the GPS=20
            industry, and what is going on with the competition. It has =
also=20
            given me the opportunity to get to know Kevin Rauckman =
(Garmin CFO)=20
            better, and it=92s always good to know famous KU alum!</P>
            <P class=3DmainParagraph>G3: Any advice for current and =
future APM=20
            students?</P>
            <P class=3DmainParagraph>MT: My advice for current APM =
students would=20
            be to truly dig in to the analysis of the stocks covered in =
class.=20
            Dig in not to earn an A in the class, but rather to learn =
valuable=20
            skills that will benefit you monetarily in the future. I =
know it has=20
            served me well and as I look back I realize it was the most =
valuable=20
            class I had in all of my graduate studies. Also, be prepared =
when=20
            Kent comes to class!</P>
            <P class=3DmainParagraph><SPAN class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></P>
            <P><SPAN class=3DmainHeadingpagebreak><A name=3Ds5></A>Group =
4=20
            Profile</SPAN><BR><SPAN class=3Dauthor>Group 4: Doug Briggs, =
Mei-Yin=20
            (Diana) Lu, Leo Tolkachev, and Megan Parker</SPAN></P>
            <P class=3DmainParagraph>Group 4 of the APM class is made up =
of four=20
            people with very different backgrounds and interests. Its =
members=20
            include: Doug Briggs, Mei-Yin (Diana) Lu, Leo Tolkachev, and =
Megan=20
            Parker. Doug and Leo are graduate students in their <IMG =
height=3D131=20
            =
src=3D"http://www2.business.ku.edu/apm/images/f04_g4newsmall.jpg"=20
            width=3D256 align=3Dleft>final semester of the MAIS tax =
program. Leo=20
            will be entering the field of corporate and personal =
taxation and=20
            Doug will be joining KPMG=92s tax department. Diana is a =
second-year=20
            MBA student planning to major in Finance, specifically in =
the area=20
            of Investments and Portfolio Management. Megan is a senior =
in the=20
            undergraduate program at KU and is majoring in Finance and=20
            Accounting. She will be graduating in May 2005 and is =
thinking about=20
            pursuing a career in portfolio management.</P>
            <P class=3DmainParagraph>Each group member is taking APM to =
further=20
            their understanding of investing and to apply techniques and =

            practices learned in classes to a real portfolio. Doug says, =
=93My=20
            primary goal is to understand the steps that need to be =
taken in=20
            order to make wise investment decisions. While I=92ve taken =
classes=20
            that have theorized about different investing techniques, =
APM=20
            provides a unique opportunity to apply those concepts in the =
real=20
            world.=94 Leo joined the class because of the excellent =
reviews from=20
            former students and his desire to learn more about =
investing. Leo=20
            says, =93I have heard so many wonderful things regarding =
APM. I have=20
            been told the class is challenging, very demanding and takes =
a lot=20
            of time. However, I find that I learn the most in such =
classes and=20
            so far I have not been disappointed.=94 Diana feels that =
this is the=20
            course that specifically meets her needs to understand =
portfolio=20
            management. =93After taking several basic finance courses, =
it is=20
            really helpful to have a chance to learn how to integrate =
the=20
            knowledge and to put it into practice.=94 Megan joined this =
class=20
            because of her possible career choice as a portfolio =
manager. She=20
            wants to =93get a real life feel for what it takes to be a =
portfolio=20
            manager, learn how to choose stocks and about the companies, =
and=20
            what it takes on a daily basis to be on top of the stock =
market.=94=20
            Thus far, she has learned that she has =93a long way to go =
to get a=20
            good grasp on the stock market.=94</P>
            <P class=3DmainParagraph>After the first few classes, Group =
4 realized=20
            that APM was not an ordinary college course. According to =
Leo, =93from=20
            the very beginning, the class lived up to the =
expectations.=94=20
            Everyone expected to do a lot of work and take risks in =
order to=20
            gain higher returns. Doug says, =93If you want to make money =
in the=20
            market, you have to work hard. The instructors and =
professionals who=20
            visit the class expect a lot, but they share so much =
valuable=20
            knowledge in return.=94 Diana comments, =93We try to analyze =
different=20
            stocks and learn what analysts think of the stock. It is =
hard work=20
            to come up with a valuation every week but it is also a =
learning=20
            process. We learn more each class period in how to gather=20
            information, how to value the stock price, and how to =
organize the=20
            information in a concise manner. It=92s really very =
helpful.=94=20
            According to Megan, =93APM is the only class that really =
allows=20
            students to apply what they have learned.=94 Leo comments, =
=93On the=20
            first day of class, the instructors explained that the first =
few=20
            weeks of class were similar to drinking from a fire hose.=94 =
However,=20
            Group 4 feels that with hard work and dedication, they will =
overcome=20
            any obstacles in their way and enjoy doing so. </P>
            <P class=3DmainParagraph><SPAN class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></P>
            <P><SPAN class=3DmainHeading><A name=3Ds6></A>Jones and=20
            Preheim</SPAN><BR><SPAN class=3Dauthor>by Group 2 =
</SPAN></P>
            <P class=3DmainParagraph>Scott Jones, CFA is the founder and =
Managing=20
            Partner of The Capital Foundation, LLC where he=92s in =
charge of=20
            making proprietary investments in stocks and real estate =
debt and=20
            equity. Prior to founding his own company, Scott was a =
sell-side=20
            research analyst covering the healthcare industry for over =
seven=20
            years and was most recently a senior research analyst at =
A.G.=20
            Edwards in St. Louis, Missouri. He was frequently quoted in =
the=20
            financial press and appeared on CNBC. His last coverage list =

            included Applied Biosystems, Waters, Affymetrix, =
Mettler-Toledo,=20
            Sigma-Aldrich, Techne and Apogent. Scott holds a B.S. in =
Business=20
            Administration and an M.B.A., both from the University of =
Kansas and=20
            is a Chartered Financial Analyst.</P>
            <P class=3DmainParagraph>Todd Preheim is currently president =
of=20
            Campanile Capital, a company he founded in 2001. Prior to =
starting=20
            Campanile, he worked as a junior software equity analyst at =
RBC=20
            Capital and a financial analyst at Sprint PCS. Todd also was =
a=20
            summer intern at Goldman Sachs. Todd received a BA in Math =
from the=20
            University of Kansas in 1995 and an MBA from the University =
of Texas=20
            in 2001. </P>
            <P class=3DmainParagraph>Todd and Scott came to class on =
September 1=20
            and presented a basic overview of the investment industry. =
They also=20
            critiqued the class=92s cases on Garmin Ltd. Their industry =
overview=20
            stressed the different activities and people that comprise =
the =93Buy=20
            Side=94 and =93Sell Side=94 mechanics of investing =
explaining the various=20
            positions within both sectors and detailing the =
responsibilities of=20
            traders, analysts, managers, sales departments, and =
investment=20
            bankers. Each touched on the trading process and reenacted =
the=20
            procedures of a simplified trading transaction, outlining =
for the=20
            =93buy=94 and =93sell=94 sides how analysts interact with =
traders, how=20
            traders interact with each other, etc. The insight and =
experiences=20
            they shared prompted a lively discussion that was enjoyed by =

all.</P>
            <P class=3DmainParagraph>Todd and Scott recently made a =
generous=20
            contribution to the APM class of a three year subscription =
to=20
            Thompson ONE Analytics. Thomson ONE Analytics offers the =
class=20
            access to analysts' research report as soon as they are =
published.=20
            Each day students can see which research reports have come =
out in=20
            the last hour, the last day or the last year. Scott and Todd =

            discussed the biases that analysts have and how to use the =
reports=20
            to enhance investment decisions. The class has already been =
able to=20
            find reports on China Green and Jiangxi Copper that aren't =
available=20
            elsewhere.</P>
            <P class=3DmainParagraph>After class Scott and Todd treated =
the class=20
            to appetizers and a round or two at Barley's. It was a nice =
chance=20
            to relax and find out what they really think. Thanks =
guys!</P>
            <P class=3DmainParagraph><SPAN class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></P>
            <P class=3DmainHeading><SPAN class=3DmainHeadingpagebreak><A =

            name=3Ds7></A>Group 1 Profile</SPAN><BR><SPAN =
class=3Dauthor>Group 1:=20
            Michelle Neely, Flori Rodrigues, Mark Sedlak, and Gordon=20
            Wood</SPAN></P>
            <P class=3DmainParagraph align=3Dleft>Group 1 has four =
members. Michelle=20
            Neely works at Bank of America while<IMG class=3Dstyle8 =
height=3D147=20
            src=3D"http://www2.business.ku.edu/apm/images/f04_g1.JPG" =
width=3D196=20
            align=3Dleft border=3D1> attending KU as a full-time =
undergraduate=20
            business major. Flori Rodrigues worked for many years as a =
software=20
            engineer. During that time, he decided to begin his MBA in =
the=20
            part-time program as a progression towards a management =
role. After=20
            getting downsized, Flori converted to a full-time graduate =
student,=20
            and he plans to graduate in December. Mark Sedlak works at =
Central=20
            National Bank. He graduated from KU in May 2004 with a BA in =

            Business and Accounting. Gordon Wood works as a Kansas =
City-based=20
            electricity trader for a privately held electricity and =
natural gas=20
            marketing company that is headquartered in Bismarck, ND.</P>
            <P class=3DmainParagraph>The APM class is one of the most=20
            comprehensive classes offered at KU. Our group got up to =
speed by=20
            tapping into each person=92s strengths. We have people with =
banking,=20
            finance, and technical backgrounds. Each person has been =
able to=20
            contribute a great deal to the group objectives by applying =
their=20
            knowledge and experience to the valuation challenges of the =
stocks=20
            in the portfolio. Our group has spent quite a lot of time =
working=20
            together on the various projects as well as pursuing some =
aspects of=20
            the assignments individually. Without a cohesive group, the =
class=20
            would be much more difficult and the quality of learning =
would not=20
            be as great.</P>
            <P><SPAN class=3DmainParagraph>We each have our own reasons =
for taking=20
            the APM class. Michelle is using the class as preparation =
for her=20
            own investment decisions as well as guidance for making a =
career=20
            decision upon graduation. Mark hopes to learn more for =
personal=20
            investment decisions and to assist clients with their =
investment=20
            options. Gordon hopes to use the valuation techniques to =
spot risks=20
            and opportunities with companies in his industry. Flori =
hopes to=20
            leverage the knowledge he gains in the APM class to solidify =
the=20
            investment choices in his own portfolio. <BR>While each =
person has a=20
            different agenda for the class, we have each helped the =
others learn=20
            more than if we were working individually.</SPAN> </P>
            <P><SPAN class=3DmainParagraph><SPAN class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></SPAN></P>
            <P class=3DmainHeading><A name=3Ds8></A>Quick Stock =
Updates</P>
            <P><SPAN class=3Dportperformtitle>Kroger (NYSE: KR) =
</SPAN><BR><SPAN=20
            class=3Dauthor>by Group 4</SPAN></P>
            <P class=3DmainParagraph>Kroger is one of the largest =
grocery chains=20
            in the nation. It was founded in 1902 and currently has over =
2500=20
            stores in Midwest, South and West regions of the country. =
Recently=20
            it opened its 500th supermarket fuel center, bringing =
Kroger=92s=20
            presence to total of 29 states. Kroger is positioned in a =
very=20
            competitive market. Along with traditional competitors like =
Safeway=20
            and Albertson=92s, it also faces increased competition from =
Wall-Mart=20
            and Target. As the company struggles to regain its market =
share, its=20
            primary objective is to lower the cost of its unionized =
labor=20
            contracts. While it is positioned more favorably then some =
of its=20
            traditional competitors, the company has made little headway =
into=20
            reduction of the contracts. Wall Mart and Target will =
continue to=20
            enjoy competitive advantage in this area in foreseeable =
future.=20
            Kroger=92s gross margin has been on decline during last two =
years due=20
            to increased commodity prices and increased sales pressure =
from the=20
            competitors. The commodity market is not showing any signs =
of=20
            letting up and oil prices have been increasing dramatically =
this=20
            year. Because of these factors the stock is rated as Sell, =
and its=20
            future position will depend on management=92s ability to =
reverse gross=20
            margin decline.</P>
            <P><SPAN class=3Dportperformtitle>Oplink Communications Inc. =
(Nasdaq:=20
            OPLK)</SPAN><BR><SPAN class=3Dauthor>by Group 3</SPAN></P>
            <P><SPAN class=3DmainParagraph>Oplink has traditionally been =
a=20
            commodity producer of passive fiber-optic components, but it =
is the=20
            Optical Manufacturing Solution custom contract manufacturing =

            business that has been growing tremendously. Currently =
making up 65%=20
            of sales. Although there is a high level of risk in this =
industry,=20
            OPLK=92s $1.30 per share of cash and equivalents provides =
downside=20
            protection with huge upside potential due to increasing =
broadband=20
            demand worldwide. Compound annual revenue growth through =
2007 is=20
            expected to exceed 30%. The APM portfolio is currently long =
5,000=20
            shares at an average cost of $1.95, with the stock recently =
trading=20
            at $1.76 per share.</SPAN></P>
            <P><SPAN class=3DmainParagraph><SPAN class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></SPAN></P>
            <P class=3DmainHeading><SPAN class=3Dportperformtitle>Valero =
(NYSE:=20
            VLO)</SPAN><BR><SPAN class=3Dauthor>by Group 2</SPAN></P>
            <P class=3DmainParagraph>Valero Energy Corporation is a =
Fortune 500=20
            company based in San Antonio, with expected annual revenues =
of=20
            around $50 billion. The company owns and operates 15 =
refineries=20
            throughout the United States, Canada, and the Caribbean, =
Valero=20
            accounts for about 12% of total U.S. refining capacity. =
Valero has a=20
            significant niche in premium, environmentally clean oil and =
gas=20
            products and is capable of refining sour crude. Valero is =
also a=20
            large retail operator with more than 4,500 retail outlets =
under=20
            various brand names including Diamond Shamrock, Shamrock, =
Ultramar,=20
            Valero, and Beacon.</P>
            <P class=3DmainParagraph>For the third quarter 2004, Gulf =
Coast=20
            gasoline margins are expected to average around $6.50 per =
barrel and=20
            California Air Resources Board (CARB) gasoline margins are =
expected=20
            to average about $17.00 per barrel. Valero operated at total =

            capacity to take advantage these good margins. Distillate =
margins=20
            also remain attractive due to strong demand and higher =
exports,=20
            while petrochemical feedstock margins are outstanding. Based =
on=20
            earnings to date and the outlook for the remainder of the =
quarter,=20
            the company expects to report earnings in the range of $2.50 =
per=20
            share, which would be a new record for the third =
quarter.</P>
            <P class=3DmainParagraph>=93Looking forward to the remainder =
of the=20
            year, the market continues to look strong. Distillate =
inventories=20
            are low, turnaround activity is expected to be above normal =
and sour=20
            crude oil discounts are very wide. All of these factors =
should=20
            contribute to strong earnings in the fourth quarter,=94 said =
Bill=20
            Greehey, Valero's Chief Executive Officer and Chairman of =
the=20
            Board.</P>
            <P class=3DmainParagraph>We saw the stock price rise from =
65.10 to=20
            80.21 as of September 30, 2004. The stock split on Oct 8 and =
the=20
            portfolio currently holds 150 shares of Valero. Our position =
is=20
            based on the recommendation and involvement of mentor and =
alum=20
            Robert Tracy. also suggests that we hold on to Valero =
because of the=20
            large crack spreads. Since 1996 crack spreads have risen =
from $2 to=20
            $8 and are now currently at $7 which is still significantly=20
high.</P>
            <P class=3DmainParagraph><SPAN class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></P>
            <P><SPAN class=3Dportperformtitle>SPATIALIGHT, INC. (NASDAQ: =

            HDTV)</SPAN><BR><SPAN class=3Dauthor>by Group 1 </SPAN></P>
            <P class=3DmainParagraph>SPATIALIGHT manufactures liquid =
crystal on=20
            silicon (LCoS) chipsets for use in high-definition =
rear-projection=20
            television sets. Spatialight concentrates their marketing =
efforts in=20
            Asia, primarily China and Korea. In China, Spatialight =
received the=20
            backing of several government entities. The governmental=20
            endorsements give credibility to Spatialight when =
negotiating with=20
            local Chinese OEMs. </P>
            <P class=3DmainParagraph>Spatialight has signed memoranda of =

            understanding (MOUs) with seven OEMs for delivery of =
Spatialight=20
            LCoS chipsets. The OEMs test the Spatialight chipsets to =
produce=20
            their own HD television sets. In Korea, Spatialight signed =
an=20
            exclusive contract with LG Electronics to sell a minimum of =
21,000=20
            beginning in January 2005, a dramatic increase over their =
2004=20
            deliveries of less than 2000 units. Spatialight plans to =
begin=20
            construction on a manufacturing facility in Korea in Q3 or =
early Q4=20
            2004 that will meet their large-scale manufacturing =
projections.=20
            Until that plant is completed, Spatialight has contracted =
for extra=20
            clean room capacity to meet their short-term production=20
            requirements. </P>
            <P class=3DmainParagraph>In other developments, Intel Corp., =
a=20
            potential competitor in the LCoS market, announced that they =
are=20
            indefinitely delaying production of their LCoS chipsets. =
</P>
            <P class=3DmainParagraph>Spatialight must clear several =
hurdles to be=20
            successful. They have never turned a profit, and they are=20
            dramatically increasing their sales volumes. Assuming they =
meet=20
            their contract delivery deadlines, we have them becoming =
profitable=20
            in 2005 with $95MM in sales and $25.4MM of EBITDA. At those =
rates,=20
            we have a target price of $12 to $15. While we like =
Spatialight and=20
            their prospects for success, we are rating Spatialight a =
hold=20
            because of the speculative nature of the investment and our=20
            portfolio=92s 4% weighting in the stock. Patrick Lin is =
APM=92s mentor=20
            for Spatialight. </P>
            <P class=3DmainParagraph><SPAN class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></P>
            <P class=3DmainHeading><A name=3Ds9></A>Alumni News</P>
            <P class=3DmainParagraph>Yeliz Sunucu (APM F03) was married =
on=20
            September 18.</P>
            <P class=3DmainParagraph>Todd and Colleen Preheim welcomed =
1st son=20
            Derek to the world in February.</P>
            <P class=3DmainParagraph><SPAN class=3DmainParagraph>Jeremy =
Glauner (APM=20
            TA 2001) was married to Stephanie Ford this summer. Jeremy =
and=20
            Stephanie now reside in Shanghai where Jeremy is opening the =
first=20
            China office for Louis Dreyfus.</SPAN></P>
            <P class=3DmainParagraph><SPAN class=3Dportperformtitle>Send =
in your=20
            news to <A href=3D"mailto:apm@ku.edu">apm@ku.edu</A>! We =
would love to=20
            hear from you. </SPAN><BR></P>
            <P class=3DmainHeading><A name=3Ds10></A>Thanks to all our =
Recent=20
            Donors!</P>
            <TABLE cellSpacing=3D2 width=3D400 border=3D0>
              <TBODY>
              <TR class=3Dperformancefulltable>
                <TD><SPAN class=3Dstyle7>Bart Baldwin</SPAN></TD>
                <TD><SPAN class=3Dstyle7>Shane Parr</SPAN></TD></TR>
              <TR class=3Dperformancefulltable>
                <TD><SPAN class=3Dstyle7>Jon Blumb</SPAN></TD>
                <TD><SPAN class=3Dstyle7>Margaret and Teal =
Dakan</SPAN></TD></TR>
              <TR class=3Dperformancefulltable>
                <TD><SPAN class=3Dstyle7>Jim MacMurray</SPAN></TD>
                <TD><SPAN class=3Dstyle7>Andrew =
Steinbach</SPAN></TD></TR>
              <TR class=3Dperformancefulltable>
                <TD><SPAN class=3Dstyle7>Paul and Michelle =
Melland</SPAN></TD>
                <TD><SPAN class=3Dstyle7>Bill Self</SPAN></TD></TR>
              <TR class=3Dperformancefulltable>
                <TD><SPAN class=3Dstyle7>Charles and Marie =
McCarthy</SPAN></TD>
                <TD><SPAN class=3Dstyle7>Josh Selzer</SPAN></TD></TR>
              <TR class=3Dperformancefulltable>
                <TD><SPAN class=3Dstyle7>Jacquelyn Summers</SPAN></TD>
                <TD><SPAN class=3Dstyle7>David C. Brown</SPAN></TD></TR>
              <TR class=3Dperformancefulltable>
                <TD><SPAN class=3Dstyle7>Ivo Voynov</SPAN></TD>
                <TD><SPAN class=3Dstyle7>Jeremy =
Richardson</SPAN></TD></TR>
              <TR class=3Dperformancefulltable>
                <TD><SPAN class=3Dstyle7>Scott Jones</SPAN></TD>
                <TD><SPAN class=3Dstyle7>Todd and Colleen =
Preheim</SPAN></TD></TR>
              <TR class=3Dperformancefulltable>
                <TD class=3Dstyle7>Julie Colahan </TD>
                <TD>&nbsp;</TD></TR></TBODY></TABLE>
            <P class=3Dportperformtitle>Thanks to these matching =
corporations:</P>
            <BLOCKQUOTE>
              <P class=3Dperformancetotal align=3Dleft>Ernst and Young=20
              Foundation<BR>Deloitte Foundation<BR>George K. Baum=20
              Foundation<BR>Vanguard Charitable Endowment<BR>Yum! Brands =

              Foundations<BR>Union Central Life =
Insurance</P></BLOCKQUOTE>
            <P class=3DmainParagraph><SPAN =
class=3DmainParagraph>Earnings from the=20
            APM portfolio are used to endow a Basketball Scholarship =
(presently=20
            a $16,000 annual disbursement). Your contributions also help =
defray=20
            class expenses. Last year we used contirbutions to visit =
A.G.=20
            Edwards in St. Louis. If you would like to show your =
support, you=20
            can make your check payable to the KU Endowment Association =
McCarthy=20
            Fund. Kent will match student and Alum contributions 2 to 1, =
and all=20
            other contributions on a 1 to 1 basis</SPAN>. Your =
contribution=20
            continues to benefit the university and the APM class! </P>
            <P><SPAN class=3Dportperformtitle>Send your contributions=20
            to:</SPAN><BR><SPAN class=3Dstyle3>School of Business=20
            Endowment<BR>Applied Portfolio Management<BR>c/o Gregory J. =
Lamb=20
            <BR>KU School of Business<BR>1300 Sunnyside =
Avenue<BR>Lawrence,=20
            Kansas 66045-7585</SPAN></P>
            <P><BR><SPAN class=3DmainParagraph><SPAN =
class=3DmainHeading><A=20
            class=3Dperfomancelink=20
            =
href=3D"http://www2.business.ku.edu/apm/newsletter/q3-04/apmnews_q3-04.ht=
m#top">top</A></SPAN></SPAN></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
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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_010F_01C7EBDB.CE836030
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 {
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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 {
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#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_010F_01C7EBDB.CE836030--
