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Index

Investment Views (September 4th 2000)

Markets in General

Two weeks ago, we noted that because everyone is so bullish for
September that we would be cautious. Last week's action has proven
us correct in our judgement. The market has finally begun to correct
its extreme overbought condition. As we had expected, Nasdaq has been
weaker than the Dow. This week is tripple witching, ie. the expiration
of futures and options. The action of this week will not necessarily make
a trend. We'll have to wait until next week to be able to truely say, if
the market is in a correction or not. Short term: the Dow should have
support around the 11000 area. Nasdaq might fall to the 3800 area.

The European markets are following the US. The Dax and CAC still
do not seem to found their own trends. CAC made a new yearly high, thus
showing some strength. But the DAX has been disappointingly weak.
The double wammy of weak Euros and high crude oil prices is taking
its tolls.

The SMI is finally correcting. We have no idea how far this correction
will go. The Swiss Market had been the only European market that
did not go through the summer correction. Judging from the depth of
the German and French correction, we should see the market fall below
8000 again. Our target is 7800. Other analysts even call for 7400.
The Swiss are momentum investors. So the upwards and downwards
movements tend to be extreme. Also we're approaching the traditional
weak months: September, October, November. So only time will tell
how low this correction will bring the market.

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Stocks

Our favorite stocks remains SAP, Nokia, Ericcson, Cable and Wireless.

High of the Year	Low of the Year	Price and year of recommend.	Performance since recommend.	Stock	Last Week's Close	Daily high	Daily low	This Week's Close
8080	6968			SMI	8234.90	8150.70	8075.80	8088.10
E 48.30	12.40	26.75 (2000)	+55.14%	AT&S	45.50	42	41	41.50
SFr. 4000	2475	1351(1998)	+158.70%	Bachem	3490	3495	3465	3495
Gbp17.56	3.13	6.50(2000)	+19.84%	BaltimoreTech	9.01	8.01	7.61	7.79
E 420	207	260 (2000)	+28.46%	Biodata	333	338	333	334
Gbp 15.77	8.28	4.9(1998)	+139.8%	C&W	12.72	12.42	11.65	11.75
E 368.90	210.10	140(1998)	+57.50%	Cap Gemini	240.10	233	220.50	220.50
SFr.44.25	21.5	10(1998)	+244.50%	Ericsson	35.80	36.50	34.45	34.45
E.102.50	E.16	14 (1999)	+305.28%	Evotec	44.80	59.69	54.85	56.74
E 97	70.25	37.8(1998)	+130.15%	LVMH	90.20	90	86.10	87
Sfr.275	133	60(1999)	+167.08%	New Ventur	172	163	160.25	160.25
E.64.90	37.50	7.50(1997)	+557.33%	Nokia	52.32	51.35	49.11	49.30
SFR.19400	17600	SFr.16900** (2000)	-9.05%	Roche GS	15545	15450	15305	15370
SFr.456.33	218	46.66(1997)	+652.25%	SAP	355.50	359	351	351
E 97	33.10	17.7(1999)	+107.28%	Sonera	39.85	38.10	35.71	36.69
SFr.850	660	460(1998)	+145.65%	Syn-Stratec	1120	1135	1115	1130
SFr1050	661	703(2000)	+30.72%	Think Tools	949	950	912	919
E 18.325	4	3.725(1999)	+369.8%	Zeltia	17.50	17.50	17.50	17.50

*We decided to calculate the performance since recommendation, because we have recommended the different stocks
to buy at different times. Since we're convinced that one should be long term investors, we think the performance
since recommendation is a better reflection of our goals. **adjusted for Givaudan spinoff.

Zeltia has splitted 4:1. This stock has been a super performer. We remain very enthusiastic
about the firm. It has transformed itself into a very interesting biotech company instead of
traditional pharma.

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Currencies and Bonds

The Euro has been extremely weak. The support around .87 and .88 did not hold.
We expect to see the .85 level soon. Indeed we might even see .80 level. Fundamentally
we do not feel the .85 level is justified, despite of the strong crude oil prices. But
currency markets tend to move from one extreme to another. Therefore there is
no guarantee that the Euro will not become extremely undervalued.

The Swiss Franc has been stronger than the Euro. But still it has fallen to the 1.78 level.
We still expect to see the Franc to fall to the 1.80 before a more serious recovery.

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Future Trends

Investors seem to be cooling towards the idea of the 3rd generation wireless
telephones. But it is a technology that is coming to the market within the
next couple of years. So why are the stocks of Qualcomm down so much
and that of Ericsson and Nokia are going nowhere? The problem seems to
be the high 3rd generation licence fees that countries in Europe are demanding
from the telecom companies. People seem to think that the sky-high
cost could delay the implementation and that telecom companies
might be tempted to only build the 3rd generation systems in areas
where the telephone charges will be able to cover costs. Therefore
the capacities build might be much smaller than anticipated. On the
other hand people should take into consideration that the telecom
companies might be very anxious to get their systems going as soon as
possible, because the licence fees are so high. They will need the
income stream generated by the new systems as soon as possible.
Plus companies like Qualcomm and Ericcson will only stand to
profit from the building and converting the present telephony system
to the new standards. The question will be how much and how soon and not
if at all. We recommend buying these stocks on weakness.

*The stock prices are provided for informational purposes only and not intended for trading purposes. The opinions expressed in these pages are what they are: opinions!