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The Bold and the Beautiful - Epilogue

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Today VSEC and AXE are again a couple of the weakest performers; so there is no point in putting off the decision. I've sold half of each. I've decided to buy another of my Magic Micro Caps which has been doing well recently, LB Foster Co. (FSTR). WIth 447.56M Market Cap it has outgrown microcap status. (My cutoff is 250M or 300M at the max.) This company makes products for the rail, construction, energy, and utility markets in the United States. You'd think that a railroad industry company founded in 1902 would be obsolete at this point but it is currently full of life. Top line and bottom line have been growing for the past 3 years and 2007 should be outstanding. The bad weather this summer severely damaged the railroads so that FSTR has lots of repair business. We do still depend greatly on rail transportation in this country, a fact that was borne home to us in Colorado recently. Due to the moisture our grain and other agricultural products had a bumper year; however we could not get enough transportation to haul it from the granaries and some of it simply rotted. Their misfortune is my fund's gain.

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