MONDAY MORNING QUATERBACK

LAKE

Revenues a bit of light, up only 3.6%. Margins impressive. Gross profits up by 17%, operating profits up by 24.1%, margins up meaningfully. EPS up by 12.5%, although it might be a bit of light of expectation. Balance sheet is clean, and valuation is modest. Chart decent. Need a bit more growth for investors to get excited. Guidance for FY07: revenue: 8-12%, and EPS 12-16%. The stock is OK to buy here, but not compelling though. Man, you never get a real feeling of the volatility, until you own it. I low-balled some at 19.50 and I did not think it would get filled. Not only did it get filled, it went all the way to below $19, after a rather decent quarter! I am not too concerned and happy to own it at 19.50.

HGRD

I also picked some HGRD at 4.10. The market continues to fall, and I am continuing to pick up stocks. My simple thesis remains that one of these days, some really blow-out quarters will move the market higher. Thus far, my thesis has not panned out. Actually, opposite has been true. The market has been selling the decent numbers. I could be wrong.

The market is so difficult that I start to question myself again. Tomorrow is a big day. If things are not working out, I don't know that I will do.