INDIVIDUAL STOCK PERFORMANCE CONTINUES TO SHINE

Current Value of the SOW Portfolio:

$82,086

Simple Return: 19.57%

~~>~>~~>~>~~>~>~~>~>~~

S & P 500 Value : $77,863
Simple Return: 2.73%

~~>~>~~>~>~~>~>~~>~>~~

Treasury Bond Value : $73,082
Simple Return: 1.56%

~~>~>~~>~>~~>~>~~>~>~~

As you can see, our SOW Portfolio continues to outperform equal investments in the

S & P 500 index and in the TLT Treasury Bond index fund.

Be sure to check out Kupsky's review of this week's Stock of the Week to see if it's a pick you want to include in your portfoio.

Past performance does not guarantee future performance. We make no recommendations!

Please call or write if you have questions about how to make money in stocks, bonds and real estate. You can reach me during office hours at 336-778-0543 or write me

STOCK OF THE WEEK: JEWETT CAMERON

The Jewett-Cameron Trading Company, Ltd., Incorporated in 1987 and is headquartered in North Plains, Oregon. Jewett Cameron. Through its subsidiaries, they primarily operate as a wholesaler of lumber and building materials, as well as processor and distributor of agricultural seeds in the United States. The Company also processes and distributes industrial wood and other specialty building products.

JCT’s operational facilities are located in North Plains and Portland, Oregon, and Ogden, Utah. Its wood products include fencing, residential decking, lattices, garden timbers, gates, arbors, pine shelving and furring, dimension lumber, plywood and oriented-strand-board, fire-retardant dimension lumber/plywood, and dowels.

The Company’s non-wood products comprise kennels, greenhouses, portable storage buildings, metal gates, and metal fencing. Its customers include transportation and recreational boating industries, original equipment manufacturers, and home improvement retailers.

The Continental Western United States is the focus of most of their distribution and is an area which includes the Pacific and Rocky Mountain Regions, as well as Alaska and Hawaii. This market area includes the five fastest growing states in the country; Utah, Idaho, Colorado, Nevada and Oregon. This region has seen an increase of 30% in building material sales during the past five years.

They also market the value-added lumber products to customers in the Eastern and Southeastern United States, shipping truckload and rail car shipments of fencing and cherry-tone garden ties.

JCT’s major customers are the leading home improvement retailers in the Western United States, including The Lowes Companies, based in North Carolina; Fred Meyer, Inc., in Portland; HomeBase, Inc., in Irvine, California; and The Home Depot, in Atlanta.

For its home improvement center customers, JCT is an inventory hub. They provide a unique and excellent level of service that is characterized by consistent quality, responsive deliver, specialized packaging, UPC labeling and most importantly, inventory levels that are based on customer needs. Most customers stores are within a days driving distance from their two main distribution centers, allowing less than full truck load shipments on a "Just-in-time" basis.

In spite of the home improvement centers huge "super stores" and mammoth inventories, their major customers still have inventory and space problems. In this fact lies the key to JCT’s growing success and superior levels of service. In addition to inventorying the large items; lumber, decking, fencing, garden timbers and lattice panels, they have developed a specialized packaging system that literally "sandwiches" and shrink-wraps each mixed load of products that might include anything from small fence post caps and dowels to handy-panels and lattice, into pallet-sized packages for rapid delivery to the individual retail outlets.

It is their fast, flexible and highly efficient distribution system, coupled with savings and efficiencies that customers value. Leveraging their many years of lumber industry experience, JCT is able to purchase product at favorable prices with savings passed on to customers. Many products are pre-tagged with the customer bar codes which translate into additional savings for home improvement center customers who can get inventory on the selling floor immediately.

Experts feel the sizzling lumber markets of 2004 will cool slightly this year and into 2006. Despite the decreases, lumber demand should remain at historic highs. The Portland-based trade association reported preliminary totals show lumber demand in 2004 reached a record 61.8 billion board feet, an increase of 8.4 percent above the previous high of 57 billion board feet set the year previous. In 2005, lumber demand is forecast at 59.6 billion board feet, down 3.5 percent, while 2006 demand should slip to 58.9 billion board feet. Although, lower, the 2005 and 2006 demand volumes would be the second and third highest in history.

All of the growth in lumber consumption came in residential construction and repair and remodeling. Housing starts roared to 1.96 million units in 2004, pushing residential lumber use to a record 26.7 billion board feet. Use of lumber in repair and remodeling also reached all-time highs of 19.5 billion board feet, fueled by record numbers of existing home sales.

They anticipate housing starts and remodeling activity will decline over the next two years as interest rates begin to move higher. Since both markets together comprise nearly 75 percent of annual lumber consumption, the drop in housing and remodeling activity will be the chief reasons for the decreases in lumber demand this year and next they feel.

However, JCT has positioned themselves with strong Non-wood areas of interest like their (4) new dog kennels produced under license for the American Kennel Club highlighted in May at the National Hardware Show. They also make an “adjustable” all steel Gate Kit System that fits all homeowners needs.

JCT continues to achieve deeper market penetration within the home improvement center market, while at the same time, expanding their territory, product mix and the services they provide clients.

In April, Jewett-Cameron announced earnings of $0.19 per share versus $0.03 for the same 6 month period last year. Trading under (JCTCF) Don Boone, President of Jewett-Cameron stated “Our earnings increase was in keeping with management’s expectations.” July 11th showed a closing price of $ 8.58- Up $.45

Just another company on a Bull run? Or is JCT diversified enough to with stand a drop in the housing market?

STOCKS OF THE WEEK :SWEET PERFORMANCE

Current Value of the SOW Portfolio:

$74,772.39

Simple Return: 17.53%

~~>~>~~>~>~~>~>~~>~>~~

S & P 500 Value : $71,776.69
Simple Return: -.04%

~~>~>~~>~>~~>~>~~>~>~~

Treasury Bond Value : $69,892.42
Simple Return: 2.84%

~~>~>~~>~>~~>~>~~>~>~~

As you can see, our SOW Portfolio continues to outperform equal investments in the

S & P 500 index and in the TLT Treasury Bond index fund.

Big performers include airlines stocks (AMR up 33% and CAL up 65% over purchase prices)GME continues to soar at 68% growth and USG at 29%. J. Alexander, Team Global and Russell Corp continue to lead income potential for the total investment package to date with 28%, 24% and 22% respectively. Be sure to check out Kupsky's review of this week's Stock of the Week to see if it's a pick you want to include in your portfoio.

Past performance does not guarantee future performance. We make no recommendations!

Please call or write if you have questions about how to make money in stocks, bonds and real estate. You can reach me during office hours at 336-778-0543 or write me

A cup of Coffee

The Diedrich Story is as rich as the flavor of their coffee. It all started in 1916, when Charlotte Diedrich inherited a coffee plantation in Costa Rica. Founded in 1972, Diedrich Coffee, Inc. specializes in sourcing, roasting and selling the world's highest quality coffees. Their primary brands include Diedrich Coffee, with coffeehouses primarily in California, Colorado and Texas; Gloria Jean's Coffees, established in 1979 and Coffee People, established in 1983 with coffeehouses in Oregon.

Headquarters in Irvine, California, Diedrich Coffee
trades on the NYSE under (DDRX). Their 52 week Low came on 12/1/04-@ $2.75 and their 52 week High came on 12/20/04 @$6.49. Closing on July 5th @ $4.78.

Today, Diedrich Coffee continues a rich tradition and pride for growing, selecting and roasting some of the finest coffees in the world, and serving them fresh at coffeehouses that reflect the warmth and down-to-earth feeling one gets from drinking a fine cup of coffee. The Company's 199 retail outlets, the majority of which are franchised, are located in 33 states and 13 other countries.

The Nation’s #2 coffeehouse company (behind Starbucks), Diedrich Coffee also sells its coffees through more than 460 wholesale accounts including office coffee service distributors, restaurants such as Ruby Tuesday and Ruth’s Chris Steak House and specialty retailers, via mail order and the Internet. Every Diedrich product is embraced by the Diedrich logo, which is centered by the family coat of arms.

To secure a stronger market in the US, the Company sold its international Gloria Jean's operations to its former Australian master franchisee on February 11, 2005. The Company continues to own and operate the Gloria Jean's domestic retail and wholesale business.

On June 20th Diedrich Coffee, Inc. announced operating results for the third quarter of fiscal 2005. For the twelve weeks ending March 9, 2005, the Company reported net income of $15,601,000, or $2.99 per basic share, compared to a loss of $69,000, or $0.01 net loss per basic share, for the third quarter of fiscal 2004. Results for the third quarter include an after tax gain of $2.98 per basic share from the sale of the Company's Gloria Jean's international operations.

For the thirty-six weeks ended March 9, 2005, the Company reported net income of $15,652,000, or $3.01 per basic share, compared to restated net income of $287,000, or $0.06 per basic share, for the first three quarters of fiscal year 2004.

Roger Laverty, President and Chief Executive of the Company said, "This is a fresh start for Diedrich Coffee. We believe that the sale of the Gloria Jean's international operations captured significant value for our shareholders. With over $17 million of cash, we now have resources to aggressively expand our brands in the United States, which we believe is the best market in the world for our specialty coffees. The profit contribution from the international operations was substantial, but we are excited with our prospects and we believe that successful domestic expansion can fill the void."

There are 108,000,000 coffee consumers in the United States spending an approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the foodservice sector every year. http://www.coffeeresearch.org/market/usa.htm.
It can be inferred, therefore, that coffee drinkers spend on average $164.71 per year on coffee. The National Coffee Association found that 54% of the adult population of the United States drinks coffee daily. They also reported that 18.12% of the coffee drinkers in the United States drink gourmet coffee beverages daily. In addition to the 54% who drink coffee everyday, 25% of Americans drink coffee occasionally.

This stock may take a while before it starts to “perk” but it appears consumers will always enjoy a good cup of coffee. Can Diedrich persuade the consumer to choose their cup?

INDIVIDUAL STOCK PERFORMANCE CONTINUES TO SHINE

Current Value of the SOW Portfolio:

$82,086

Simple Return: 19.57%

~~>~>~~>~>~~>~>~~>~>~~

S & P 500 Value : $77,863
Simple Return: 2.73%

~~>~>~~>~>~~>~>~~>~>~~

Treasury Bond Value : $73,082
Simple Return: 1.56%

~~>~>~~>~>~~>~>~~>~>~~

As you can see, our SOW Portfolio continues to outperform equal investments in the

S & P 500 index and in the TLT Treasury Bond index fund.

Be sure to check out Kupsky's review of this week's Stock of the Week to see if it's a pick you want to include in your portfoio.

Past performance does not guarantee future performance. We make no recommendations!

Please call or write if you have questions about how to make money in stocks, bonds and real estate. You can reach me during office hours at 336-778-0543 or write me

#

STOCK OF THE WEEK: JEWETT CAMERON

The Jewett-Cameron Trading Company, Ltd., Incorporated in 1987 and is headquartered in North Plains, Oregon. Jewett Cameron. Through its subsidiaries, they primarily operate as a wholesaler of lumber and building materials, as well as processor and distributor of agricultural seeds in the United States. The Company also processes and distributes industrial wood and other specialty building products.

JCT’s operational facilities are located in North Plains and Portland, Oregon, and Ogden, Utah. Its wood products include fencing, residential decking, lattices, garden timbers, gates, arbors, pine shelving and furring, dimension lumber, plywood and oriented-strand-board, fire-retardant dimension lumber/plywood, and dowels.

The Company’s non-wood products comprise kennels, greenhouses, portable storage buildings, metal gates, and metal fencing. Its customers include transportation and recreational boating industries, original equipment manufacturers, and home improvement retailers.

The Continental Western United States is the focus of most of their distribution and is an area which includes the Pacific and Rocky Mountain Regions, as well as Alaska and Hawaii. This market area includes the five fastest growing states in the country; Utah, Idaho, Colorado, Nevada and Oregon. This region has seen an increase of 30% in building material sales during the past five years.

They also market the value-added lumber products to customers in the Eastern and Southeastern United States, shipping truckload and rail car shipments of fencing and cherry-tone garden ties.

JCT’s major customers are the leading home improvement retailers in the Western United States, including The Lowes Companies, based in North Carolina; Fred Meyer, Inc., in Portland; HomeBase, Inc., in Irvine, California; and The Home Depot, in Atlanta.

For its home improvement center customers, JCT is an inventory hub. They provide a unique and excellent level of service that is characterized by consistent quality, responsive deliver, specialized packaging, UPC labeling and most importantly, inventory levels that are based on customer needs. Most customers stores are within a days driving distance from their two main distribution centers, allowing less than full truck load shipments on a "Just-in-time" basis.

In spite of the home improvement centers huge "super stores" and mammoth inventories, their major customers still have inventory and space problems. In this fact lies the key to JCT’s growing success and superior levels of service. In addition to inventorying the large items; lumber, decking, fencing, garden timbers and lattice panels, they have developed a specialized packaging system that literally "sandwiches" and shrink-wraps each mixed load of products that might include anything from small fence post caps and dowels to handy-panels and lattice, into pallet-sized packages for rapid delivery to the individual retail outlets.

It is their fast, flexible and highly efficient distribution system, coupled with savings and efficiencies that customers value. Leveraging their many years of lumber industry experience, JCT is able to purchase product at favorable prices with savings passed on to customers. Many products are pre-tagged with the customer bar codes which translate into additional savings for home improvement center customers who can get inventory on the selling floor immediately.

Experts feel the sizzling lumber markets of 2004 will cool slightly this year and into 2006. Despite the decreases, lumber demand should remain at historic highs. The Portland-based trade association reported preliminary totals show lumber demand in 2004 reached a record 61.8 billion board feet, an increase of 8.4 percent above the previous high of 57 billion board feet set the year previous. In 2005, lumber demand is forecast at 59.6 billion board feet, down 3.5 percent, while 2006 demand should slip to 58.9 billion board feet. Although, lower, the 2005 and 2006 demand volumes would be the second and third highest in history.

All of the growth in lumber consumption came in residential construction and repair and remodeling. Housing starts roared to 1.96 million units in 2004, pushing residential lumber use to a record 26.7 billion board feet. Use of lumber in repair and remodeling also reached all-time highs of 19.5 billion board feet, fueled by record numbers of existing home sales.

They anticipate housing starts and remodeling activity will decline over the next two years as interest rates begin to move higher. Since both markets together comprise nearly 75 percent of annual lumber consumption, the drop in housing and remodeling activity will be the chief reasons for the decreases in lumber demand this year and next they feel.

However, JCT has positioned themselves with strong Non-wood areas of interest like their (4) new dog kennels produced under license for the American Kennel Club highlighted in May at the National Hardware Show. They also make an “adjustable” all steel Gate Kit System that fits all homeowners needs.

JCT continues to achieve deeper market penetration within the home improvement center market, while at the same time, expanding their territory, product mix and the services they provide clients.

In April, Jewett-Cameron announced earnings of $0.19 per share versus $0.03 for the same 6 month period last year. Trading under (JCTCF) Don Boone, President of Jewett-Cameron stated “Our earnings increase was in keeping with management’s expectations.” July 11th showed a closing price of $ 8.58- Up $.45

Just another company on a Bull run? Or is JCT diversified enough to with stand a drop in the housing market?

#

STOCKS OF THE WEEK :SWEET PERFORMANCE

Current Value of the SOW Portfolio:

$74,772.39

Simple Return: 17.53%

~~>~>~~>~>~~>~>~~>~>~~

S & P 500 Value : $71,776.69
Simple Return: -.04%

~~>~>~~>~>~~>~>~~>~>~~

Treasury Bond Value : $69,892.42
Simple Return: 2.84%

~~>~>~~>~>~~>~>~~>~>~~

As you can see, our SOW Portfolio continues to outperform equal investments in the

S & P 500 index and in the TLT Treasury Bond index fund.

Big performers include airlines stocks (AMR up 33% and CAL up 65% over purchase prices)GME continues to soar at 68% growth and USG at 29%. J. Alexander, Team Global and Russell Corp continue to lead income potential for the total investment package to date with 28%, 24% and 22% respectively. Be sure to check out Kupsky's review of this week's Stock of the Week to see if it's a pick you want to include in your portfoio.

Past performance does not guarantee future performance. We make no recommendations!

Please call or write if you have questions about how to make money in stocks, bonds and real estate. You can reach me during office hours at 336-778-0543 or write me

#

A cup of Coffee

The Diedrich Story is as rich as the flavor of their coffee. It all started in 1916, when Charlotte Diedrich inherited a coffee plantation in Costa Rica. Founded in 1972, Diedrich Coffee, Inc. specializes in sourcing, roasting and selling the world's highest quality coffees. Their primary brands include Diedrich Coffee, with coffeehouses primarily in California, Colorado and Texas; Gloria Jean's Coffees, established in 1979 and Coffee People, established in 1983 with coffeehouses in Oregon.

Headquarters in Irvine, California, Diedrich Coffee
trades on the NYSE under (DDRX). Their 52 week Low came on 12/1/04-@ $2.75 and their 52 week High came on 12/20/04 @$6.49. Closing on July 5th @ $4.78.

Today, Diedrich Coffee continues a rich tradition and pride for growing, selecting and roasting some of the finest coffees in the world, and serving them fresh at coffeehouses that reflect the warmth and down-to-earth feeling one gets from drinking a fine cup of coffee. The Company's 199 retail outlets, the majority of which are franchised, are located in 33 states and 13 other countries.

The Nation’s #2 coffeehouse company (behind Starbucks), Diedrich Coffee also sells its coffees through more than 460 wholesale accounts including office coffee service distributors, restaurants such as Ruby Tuesday and Ruth’s Chris Steak House and specialty retailers, via mail order and the Internet. Every Diedrich product is embraced by the Diedrich logo, which is centered by the family coat of arms.

To secure a stronger market in the US, the Company sold its international Gloria Jean's operations to its former Australian master franchisee on February 11, 2005. The Company continues to own and operate the Gloria Jean's domestic retail and wholesale business.

On June 20th Diedrich Coffee, Inc. announced operating results for the third quarter of fiscal 2005. For the twelve weeks ending March 9, 2005, the Company reported net income of $15,601,000, or $2.99 per basic share, compared to a loss of $69,000, or $0.01 net loss per basic share, for the third quarter of fiscal 2004. Results for the third quarter include an after tax gain of $2.98 per basic share from the sale of the Company's Gloria Jean's international operations.

For the thirty-six weeks ended March 9, 2005, the Company reported net income of $15,652,000, or $3.01 per basic share, compared to restated net income of $287,000, or $0.06 per basic share, for the first three quarters of fiscal year 2004.

Roger Laverty, President and Chief Executive of the Company said, "This is a fresh start for Diedrich Coffee. We believe that the sale of the Gloria Jean's international operations captured significant value for our shareholders. With over $17 million of cash, we now have resources to aggressively expand our brands in the United States, which we believe is the best market in the world for our specialty coffees. The profit contribution from the international operations was substantial, but we are excited with our prospects and we believe that successful domestic expansion can fill the void."

There are 108,000,000 coffee consumers in the United States spending an approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the foodservice sector every year. http://www.coffeeresearch.org/market/usa.htm.
It can be inferred, therefore, that coffee drinkers spend on average $164.71 per year on coffee. The National Coffee Association found that 54% of the adult population of the United States drinks coffee daily. They also reported that 18.12% of the coffee drinkers in the United States drink gourmet coffee beverages daily. In addition to the 54% who drink coffee everyday, 25% of Americans drink coffee occasionally.

This stock may take a while before it starts to “perk” but it appears consumers will always enjoy a good cup of coffee. Can Diedrich persuade the consumer to choose their cup?

#