We finished out 2007 up 19.99%. Not bad, not great.

We managed to beat the market averages by more than 10 point in all cases. The Dow was up 6.4%, NASDAQ was up 9.8% and the S+P 500 was up 3.5%. The Russell 3000 was up 3.3% and the Wilshire 5000 was up 3.9%.

Our biggest winner in 2007 was Datawatch up 128% and our biggest loser was Lion (LINN.ob) down 70%.

Of our 32 stocks reccomended since the beginning of 2006, 23 stocks are winners and 9are down. 5 of our losers are down less than 15%.

In 2007 we closed out 12 positions compared to just 4 in 2006. 14 of these were winners and just 2 were losers.

For 2008, we think that AVSO.ob, MEDW, anf BDAY will be likely big gainers. Our only position that we are worried about right now is CLZR.

Good investing to all in 2008.