Market watch... Invest guardedly" in 2003, leading stock market researchers urge; restaurants perform poorly while IT and telecom services rebound

January investment insight from 30-year stock market veterans

HINGHAM, MA, ISSUED JANUARY 15, 2003...In its latest research report, Contravisory Research & Management Corp., an established and respected Hingham-based investment management firm, has told investors to invest guardedly, not audaciously" in 2003 and shows that information technology, consumer staples and telecom services are on the upswing, while the financial sector is showing signs of erosion.

These are trends that we are watching closely as a new year commences," said Phil Noonan, Executive Vice President. He noted, We continue to like the prospects of several foreign telecommunications issues, and in the information technology sector, we find the Internet and computer-related groups as the most interesting area to purchase or hold on to."

Other findings for January include:
·   Early upgrade trends for Ameritrade, BEA Systems Inc., Deutsche Telecom, and Novoste
·   A downward trend for restaurant stocks

Noonan noted, The restaurant industry has been in a bullish trend since the third quarter of 2000. This industry has deteriorated seriously since 3rd quarter of 2002. We have shifted to a 'sell stance on restaurants." Not all restaurants have performed poorly, Noonan notes, saying that Starbucks Corp. and Panera Bread Co. remain in an upward mode relative to the market.

Contravisory sees 3M, Bemis Inc., Gillette Co., Hershey Foods Corp., Southern Co., Sovereign Bancorp. Inc., and Union Pacific as strong stocks.

Contravisorys track record of identifying trends in the market is extremely strong. The Hingham-based firms equity model portfolio consistently outperforms those of 15 major brokerage houses in their own benchmark surveys, as compared to two published reports in the Wall Street Journal. Contravisorys results, compared to a November 18, 2002 Wall Street Journal article that evaluated fifteen top brokerage houses, showed a 68% increase over five years, topping the published results of key brokerage houses including Bear Stearns, Merrill Lynch, Raymond James, Edward Jones, Credit Suisse F.B., Prudential Securities, Goldman Sachs, Morgan Stanley, A.G. Edwards, Lehman Bros., U.S. Bancorp Piper JAF, Salomon S.B., Bank of America, RBC Dain Rauscher, and J.P. Morgan Sec. Contravisorys results were equally impressive when compared with a published report August 22, 2002, where Contravisory's results showed a 121% increase over five years, again higher than the published results of the same key brokerage houses.

"We are pleased to say that Contravisory's equity portfolio results continue to perform well relative to what 15 major brokerage firms are doing," said Phil Noonan, Executive Vice President.

Contravisory's recommendations come from its own proprietary research methods, which are entirely internal research. The firm is often sought out by key players in the industry for initial research or corroboration of outside research.

Contravisory Research & Management Corp. was established in 1972 by Edward Noonan, who had been associated with several investment firms as a bond and equity research analyst prior to the founding of this firm. The firm is a recognized leader in market research and uses a proprietary, technical/quantitative methodology to identify the long-term trend of stocks and industry groups. This technology is supported by a real-time database of more than 400,000 buy/sell signals and a history of solid performance since 1972. In addition to market research, Contravisory also manages investment portfolios for individuals, families, profit-sharing plans and corporations. Today, Mr. Noonan is joined by two sons, William M. Noonan and Philip A. Noonan, who serve in the capacity of Vice Presidents. The firm maintains headquarters at 99 Derby Street, Hingham, MA 02043. For additional information about services, please call (781) 749-3380 or visit www.contravisory.com.

Editors: If you are interested in receiving 'monthly updates, or would like to speak with either Ed or Phil Noonan to learn more about their research methods or general market trends, please call Jim Farrell at 781-681-6616.