Tony began by reviewing stocks he picked earlier. He expressed confidence that DISH, DIS, and ONE were in reasonably good shape, and recommended holding each. He thought MRCH was a lost cause.

Terry presented a plan to sell off all of our biggest losers with the intent of buying most of them back after the wash rule of 30 days expires. By doing so, the club would acquire a tax loss to off-set future gain and provide the club with available cash to re-buy a number of stocks in greater quantities while they are near historic lows. By owning more of these stocks after the re-purchase, the club may be able to recover more rapidly once the market turns around. The major hazards involved were the estimated transaction costs of $650.00, and the possibility of a market rebound before we could re-purchase. The consensus believed we had little to fear in term of a rebound despite the likelihood of the Fed lowering rates on 3/20/01. After substantial discussion, the plan was approved unanimously with the understanding that stocks would not automatically be re-purchased until the consensus agreed that the market was indeed on the way back up. Each stock was reviewed for potential sale and 22 were selected. All but DISH (8-2) and NT (5-4-1) were unanimous choices. Partial sales of AMAT, MVL, CTXS and SRNA were targeted on shares bought at the higher of two purchase orders. MVL cannot be sold until 3/19/01 or wash sale rules would wipe out any tax loss – we bought 200 shares on 2/14/01.

Brian alerted the club to the expiration of the IPO holding period for KREM occurring on 4/5/01. He anticipates a major sell-off to lock in large gains since the IPO and recommended we sell half of our holdings. That idea was approved and 20 shares will be sold.

We sold all of the following: A, DISH, GX, INKT, JDSU, LMNE, LU, MCLS, MRCH, MSFT, NT, NETO, NXTP, ORB, ORCL, QCOM, SSFT, SUNW and WCOM. We sold 20 AMAT, 20 CTXS, 65 SRNA and 20 KREM. 200 MVL will be sold on 3/19/01. Total proceeds from all sales amounted to $15,780.80. With existing cash of $407.73, dues of $2,570.00, the club now has $18,758.53 in cash. Our 2001 tax loss is $21.178.12. Details will be on page 4 of web site http://www.geocities.com/oldhillsic