WELCOME TO THE MCGEHEE REPORT, INC. Is there any other newsletter, mutual fund or money manager that has, over the last 10 years, outperformed THE MCGEHEE REPORT? 40.5% is the average annual return for our Aggressive Growth Portfolio!!! 19.2% is the average return for the Growth Portfolio!!! $10,000 would have grown to $74,900 if invested in the Aggressive Growth Portfolio over the last 8 years, ending 2001. The Nasdaq would have yielded only $24,900. The S & P 500 Index only $24,300. The Dow only $26,700. ___________________________________________________________ The McGehee Report concentrates on finding undiscovered and undervalued stocks at the right price with potential price appreciation. Our "top-down" approach allows us to be in the right sectors at the right time of the economic cycle. We combine this with technical analysis, up-trending earnings, and solid fundamentals for our recommendations. Our returns are enhanced by our proprietary "MCGEHEE TREND-TURN INDICATOR." This indicator developed by portfolio manager, Stewart B. McGehee over the past 25 years, has called market turns of 7% or more with a 90% correlation. Just read some excerpts from the newsletter on our Home Page. We were in at the market bottom after September 11th, 2001. As early as November 1994, we published in Investors Business Daily, claiming another major buy signal. And were buying with both hands in October 1998, at the bottom. The Nasdaq was up over 100% in the next 2 years. February 2000 we did not make any new recommendations as we saw more downside activity. HERE ARE SOME TIMELY EXCERPTS FROM THE MCGEHEE REPORT: "We are very bullish, plain and simple. The market is a little bit hard to read here. We believe the reason for that is we are in a transition period from a bear market to a bull market in stocks. The bond market is transitioning from a bull market to a bear market...We expect another couple of legs up in this move. It should end after earnings season is over. After that we will correct this rally, but it will not be the deep correction we've become use to over the last 3 years. After that the economic recovery will be more apparent, and the new bull market will resume." 4/2003 "The market finished its bear market rally in January. We had hoped that we were starting a new bull market since the Fed was cutting interest rates. However, this obviously is not true... despite the Federal Reserve cutting inerest rates we must conclude we are still in an equity bear market." 3/01 Past performance is no guarantee of future results. We will however, continue to use all the stock picking techniques you have read about to make future stock recommendation for subscribers to THE MCGEHEE REPORT!
"STOCKS STEWART HAS RECOMMENDED IN THE PAST" Apple Computer +252% 1 year Teva Pharmaceuticals +322% 3 years Dell Computer: +10,000% in 5 yrs. General Electric: +435% in 4 yrs. Oracle: +600% in 2 yrs. Merrill Lynch: +320% in 3 yrs. Biogen: +445% in 2 1/2 yrs. STOCKS YOU WOULD HAVE FOUND IN OUR AGGRESSIVE GROWTH PORTFOLIO. WE LOVE UNKNOWNS WHERE YOU CAN BUY THEM AT LOW PRICES, WHILE THE REST OF WALL STREET RECOMMENDS THEM MONTHS LATER AT HIGHER PRICES. WOULDN'T YOU LOVE TO TELL YOUR FRIENDS YOU HAVE THESE TYPES OF RETURNS!!! Sirius Satellite +348% 1 year Hansen Natural +330% 14 months Intuitive Surgical +291% 14 months SINA.COM: 500% in 4 1/2 months. Cytyc: 456% in 2 yrs. Check Point Software: +1,700% in 3 yrs. Q Logic: +100% in 4 months Legato Systems: +1,183% in 2 1/2 yrs. Human Genome Sciences: +640% in 18 months. Charles Schwab: +260% in 1 year. Please note that we recommend individual stocks and not mutual funds. Not only do we trust our proven methodology , but even no-load funds have some fees and capital gains distribution at the end of the year. Even if the fund is DOWN! We also have never received compensation for recommending a stock.	"RETURNS" AGGRESIVE GROWTH PORTFOLIO: ______________________________ 1994 ..... +40% 1995 ..... +192% 1996 ..... +60% 1997 ..... +10% 1998 ..... +28% 1999 ..... +111% 2000 ..... -45% 2001 ..... -24% 2002 ..... -39% 2003..... +74.9% __________________________ 40.7% AVERAGE ANNUAL RETURN GROWTH PORTFOLIO: ______________________________ 1994 ..... +10% 1995 ..... +53% 1996 ..... +24% 1997 ..... +48% 1998 ..... +39% 1999 ..... +36% 2000 ..... -20% 2001 ..... -11% 2002 ..... -24% 2003 ..... +37.8% ___________________________ 19.28% AVERAGE ANNUAL RETURN S & P 500 INDEX: _________________________ 1994 ..... +1.30% 1995 ..... +37.60% 1996 ..... +23% 1997 ..... +33.40% 1998 ..... +26.40% 1999 ..... +19.00% 2000 ..... -10.10% 2001 ..... -13.00% 2003.....+26.6% __________________________ 12.70% ANNUAL AVERAGE RETURN $10,000 invested in 1994 returned at the end of 2001: *Aggressive Growth Portfolio $81,225 *Growth Portfolio $41,571 *S&P 500 Index $26,906 WHICH RETURN DO YOU PREFER? Of course, the higher the reward the higher the risk! And past performance does not guarantee future results! Returns are based on the Intramonth Subscription service.
"OUR SERVICE TO YOU" THE MCGEHEE REPORT, published monthly, includes the following information: 1) Market Comment - the current conditons of the market and the economic/geopolitical factors influencing it. 2) Stock Industry Outlook - in depth look at different market indusrty sectors and their performance. 3) Stock Market Technicals - analysis of both widely followed and proprietary technical indicators that help us predict the stock and bond markets. 4) Stock Market Outlook - using all the tools described in our report, including our proprietary "McGehee Trend-Turn Indicator", we give our best indications of the market direction. 5) Additons and Deletions - in this section we make new buy and sell recommendation for our 2 portfolios. INTRAAMONTH SUBSCRIBERS receive these recommendations before the newsletter is published. 6) Aggressive Growth Portfolio - this portfolio is very aggressive, with the inherited risk/reward ratio. As you can see by the returns, over time it can be quite rewarding! 7) Growth Portfolio - this portfolio is less volitile, and the reward can still be very good over time! Many of the stocks pay a dividend. NOTE: Both portfolios include current opinions on holdings, plus lots of other information. 8) Portfolio News Update - we keep you abreast of important corporate news about our stoks that hit the news wires since we last published.	"2 LEVELS OF SERVICE" THE MCGEHEE REPORT offers you 2 different levels of service. You chose which level best fits your needs. First Level ___________ Monthly Newsletter - Each month The McGehee Report is mailed to you via US mail. Mailing date is aimed toward the middle of the month. The timing may also be enfluenced by the action we see in the markets themselves. If we think the markets are about to make an important turn we can time the mailing around this event to better serve you! Second Level ____________ Monthly Newsletter and Intramonth Notices - you receive the newsletter same as above. You are also notified by e-mail of all buy and sell signals on individual stocks, before the newsletter is mailed! To subscribe to THE MCGEHEE REPORT simply scroll down to the subscription form below!!!
“TO SUBSCRIBE” 1) Print our subscription form, Fill it in and send it today to the address below, or 2) Call Stewart B. McGehee at (501) 661-1702 with your credit card information. The McGehee Report 29 Overlook Dr. Little Rock, AR. 72207 (501) 661-1702 stewart@mcgeheereport.com Thank you, Stewart B. McGehee President Portfolio Manager