LONE BULL REVISITED 1992

Does the title get your attention? Good. No, I didn't write it just to get your attention. I really do believe it. How can I be so bullish when the economy is so bad? Some people think that we're in a depression. Well, if those pessimists are right, it would appear that we're all going to be miserable. But let me ask you, what if the pessimists are wrong? What if we are in the greatest bull market of all time? What if this country were to refocus its energy from fighting the fallen "evil empire" of Communism to focusing on global competition? What if the kind of technology that produced the Patriot anti-missile missile and other highly sophisticated smart weapons were to produce competitive consumer electronic goods? What if our smaller innovative companies were to create a need for employment sufficient for bubble-up (opposite of trickle-down) employment for major U.S. companies now in the doldrums? What if the lessons learned by new MBA's taught in today's universities can actually be applied successfully?

What if the Federal Government were to motivate savings and investment through intelligent fiscal programs? What if the "peace dividend." proper business incentives and careful spending by our government were to reduce the deficit? What if the laid-off workers from the union-intensive auto and steel industries would be motivated towards productivity in their next jobs? What if the Federal Government were to help finance companies engaged in "joint efforts" to compete in global markets in such areas as electronics (high-definition television, semi -conductors) aircraft and shipbuilding? What if, in light of the events of the past year, the time for pessimism is over? What if this were the greatest opportunity for growth since the beginning of the industrial revolution?

Sure, we have our problems, but there are always problems. There are those who believe that a problem is just another name for an opportunity waiting for a solution.

We don't have a homogeneous society like the Japanese or the Germans, but perhaps that is to our advantage. This could also be a time when everyone can win. New markets are opening for us, as the former Communist countries and third world nations lift their living standards. The "manifest destiny" that our forefathers envisioned for this country might truly bring dignity to mankind and the realization of the potential for freedom expressed in our Declaration of Independence and Bill of Rights. This is more than revolutionary. It is evolutionary.

In September of 1981, with the Dow below 800, I wrote the "Lone Bull Letter". I was quoted in Barron's as calling for a "surge in the market to even 2500". Pretty heady stuff for that time. Now with the Dow above 3000, I foresee even loftier heights. Then, as now, there was a great deal of pessimism. But that's what Bull Markets are made of. No, I cannot guarantee it, and therefore, there is a risk as always.

The fact remains that that old "Lone Bull Letter" looked back in history and saw five bull markets between 1949 and 1966 (the last full Bull-Market series), with the Dow doubling five times in a row. This most recent Bull-Market series has only doubled twice! A Dow of 5000 to 8000 is a possibility for the 1990's. Be cautious, but think positive. What if I'm right? (Again).

ADDITIONAL INFORMATION IS AVAILABLE UPON REQUEST

This report has been prepared from original sources and data we believe reliable but we make no representations as to its accuracy or completeness. Birkelbach Investment Securities, Inc.,

its affiliates and subsidiaries and/or their officers and employees may from time to time acquire, hold or sell a position in the securities discussed in this report, we may act as principal for our own account or as agent for both the buyer and the seller.

MEMBER N.A.S.D. / S.I.PC. Research Reports Published by Birkelbach Investment Securities, Inc.

NEITHER BIRKELBACH INVESTMENT SECURITIES, INC. NOR ITS' OFFICERS OR EMPLOYEES WARRANTS OR IMPLIES THAT PAST PERFORMANCES ARE ANY INDICATION OF FUTURE SUCCESS FOR NEW RECOMMENDATIONS.

Birkelbach Investment Securities, Inc. is a full-service investment brokerage firm serving the investment community for some twenty years. Each of our experienced brokers will take the necessary time to explain investment alternatives, tailoring our investment advice to meet your particular situation and goals. We stress understanding rather than expediency, answering all questions necessary for you to make an informed and comfortable investment decision. Our investment research is independent of Wall Street conformity. In addition to our personalized service and independent advice we offer the flexibility to discount commissions.

Birkelbach Investment Securities, Inc. is a member of the NASD and SIPC. Accounts are insured up to ten million dollars ($ 10,000,000). Interest is automatically paid on cash balances awaiting reinvestment. We are a correspondent of Donaldson, Lufkin & Jenrette (the second-largest broker based on New York Stock Exchange volume). They execute our orders, issue confirmations, accept payment and hold both cash and securities. This unique combination offers you the personalized services and independent advice of a regional firm, together with the safety and execution capabilities associated with a major national firm.

THE LONE BULL REVISITED

A DOW OF 5000 TO 8000