Current Value of the SOW Portfolio:

$93,782.44

Simple Return: 22.36%

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

S & P 500 Value : $86,384.52
Simple Return: 3.11%

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

Treasury Bond Value : $78,853.
Simple Return: -83.33%

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

80% of the SOW Portfolio is returning 17% or better. Airline Stocks are through the roof with current earnings in AWA and AMR at better than 55%, CAL is at 91%

and GME with returns at 69% respectively. Individual Stocks continue to outperform equal investments in the S & P 500 and the TLT Treasury Bond index fund which turn a nose dive this week.

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: SPORTS CHALET

Sport Chalet, Inc. operates specialty sporting goods superstores in Southern California and Nevada. The Company sells traditional sporting goods merchandise like footwear, apparel and other general athletic products and nontraditional merchandise like downhill skiing, mountaineering and SCUBA products. In addition, Sport Chalet also offers value-added services from “The Experts” enabling their serious sports enthusiast customers to take lessons, giving them a complete experience from getting advice to receiving training in their sport. In addition, they operate a retail e-commerce store at http://www.sportchalet.com/

Their legacy started on April 1, 1959, when a young man named Norbert Olberz heard about a little ski shop for sale. It was located north of Los Angeles. In 1981, Norbert doubled the size of his Company by opening a store in Huntington Beach and began to build a loyal following of beach customers.

In 1992, Sport Chalet went public, trading on the NASDAQ Stock Market under (SPCH). In 2001, Sport Chalet expanded beyond Southern California for the first time, entering Nevada. In 2003, Sport Chalet opened stores in Northern California. Today they have 36 stores and are continuing to expand.

In June 1998, six years after gong public, the founder of Sport Chalet, Norbert Olberz gave nearly 300,000 of his own Sport Chalet shares to all employees who had been with the company for more than 10 years and managers with more than one year of company loyalty in celebration of its most profitable year in sales and gross profits.

Trading on July 28th @ $17.05. 48% higher than their 52-wk low (11/3/2004): $11.51. Their 52-wk high (6/29/2005):$19.50

Their goals for 2005 are to leverage the investments they have made to intelligently grow. This year they expand into Northern California with three new stores. Their first Central California store will open and they will add another Southern California location. These five new store openings will set a record for new store growth.

Remodeling older stores will give them 44% of their store base being three years old or less. Their employees have been challenged to work more closely together than ever before to improve their logistics processes, bringing in merchandise to market even faster yet at a lower cost and making sure every item is received in their stores in "floor-ready" condition.

Are they on the right financial track? On June 28, 2005 Sport Chalet, Inc. announced the results for its fiscal year ending March 31, 2005. Sales increased 17.0%, from $264.2 million last year to $309.1 million this year. The increase was the result of opening five new stores this year and three last year, as well as a same store sales increase of 5.7%.

The same store sales increase is due to better inventory assortments compared to the same period last year and increased customer traffic from the appeal of winter related merchandise. Sales of winter related merchandise were driven by record winter weather conditions at the resorts frequented by their customers. Same store sales excluding winter related products increased 4.7%.

Gross profit margin increased from 30.3% last year to 30.9% this year primarily due to a strong winter season, which reduced the need for markdowns as well as reduced costs from more efficient inbound logistics.

Net income increased $1.5 million, or 32.9%, from $4.6 million to $6.2 million this year.

Commenting on the results, Craig Levra, Chairman and CEO said, "Our outstanding results for the fiscal year reflect the consistent and effective execution of our strategic plan. The entire Sport Chalet team contributed to a very successful year during which we made strides in both enhancing our operational performance and implementing our growth plans. As we expand into Arizona in the new fiscal year, we believe we are well positioned for continued strong performance.

“As we announced in a separate release today, the Company’s board of directors has proposed a recapitalization plan that is designed to facilitate the orderly transition of control from Norbert Olberz, the principal stockholder, to the Company’s management and increase financial flexibility for the Company and its stockholders. The proposed recapitalization plan retains current stockholders’ existing voting interests and allows management to maintain our strong culture and continue to focus on our growth strategy. Overall, we are pleased with our results for fiscal 2005 and encouraged about the direction of our business. We remain committed to our strategy to generate long-term top and bottom line growth and increase stockholder value.”

Being debt free for the last seven years, this forty-five year old sports company seems to have a feel for their customers and what they want. Can Sports Chalet successfully have a “changing of the guard”, add new stores and still be a climber in this Bull Market?

STOCK PERFORMANCE SOARS

Current Value of the SOW Portfolio:

$89,552.18

Simple Return: 23.26%

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

S & P 500 Value : $82,282.78
Simple Return: 3.12%

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

Treasury Bond Value : $76,435.
Simple Return: .62%

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

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. Airline Stocks are through the roof with current earnings in AWA and AMR at better than 55%, CAL is at 97%

USG, and GME also show incredible returns at 46% and 72% 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

STOCK OF THE WEEK: ZONES INC

Stock of the Week: Zones, Inc.

Zones Inc and its subsidiaries principal activity is to resell name-brand information technology products to the small to medium sized business and the public sector. The products are offered through catalogs, trade publications and a telemarketing sales team. They are also sold through outbound and inbound account executives, specialty print and e-catalogs and the Internet. They market more than 150,000 products, which include printers, monitors, keyboards, modems, scanners and desktop. These products are supplied by more than 2,000 manufactures such as Apple, Compaq, Hewlett-Packard, IBM, Microsoft and Toshiba. The Group conducts its business in the United States under the service marks The PC Zones (R) and The Mac Zone (R) registered with the United States.

Incorporated in 1988, Zones, Inc., (ZONS) is headquartered in Auburn, Washington. Traded on NASDAQ since July 1996, they closed July 18th @ $3.72. Their 52 week high $7.40 came on 11/19/04 and their 52 week low $2.45 came on 9/12/04.

Their business model relies on building and maintaining relationships with their customers by anticipating their needs and providing the customer with service they have come to expect from Zones. They strive to deliver the best-in-class service by offering the most competitive value based on:

Price. Competitive pricing.

Availability. With more than 150,000 products available, Zones delivers.

Information. Because the technology industry is constantly changing with new and upgraded products and services, Zones Account Executives receive continuous training.

Fulfillment. Zones goal is to deliver every order complete- and on time.

Service. Zones offer a breadth of services that support the customer IT relationship. For example, their free customized online order management system called ZonesConnectTM helps their customers reduce administrative costs and streamline their purchasing process. With additional services such as asset tagging, imaging and product upgrades, Zones is a proactive business partner throughout the sales cycle, from presale to after the sale.

Zones Announced its Financial Results for the Year and Quarter Ended December 31, 2004. Highlights-

Sixth consecutive profitable quarter
2004 earnings per share increases to $0.32 compared to earnings per share $0.11 in 2003
2004 net sales increased 8% year over year

Net income for the year ending December 31, 2004 improved to $4.7 million, or $0.32 per diluted share, compared to $1.6 million, or $0.11 per diluted share, for the corresponding period a year ago. For the year ended December 31, 2004, net sales increased 7.6% to $495.6 million from $460.8 million for the corresponding period of the prior year.

Firoz Lalji, President and CEO, remarked, "We just completed our 6th consecutive quarter of profitability and by any measure our financial performance in 2004 was outstanding. Looking ahead to 2005, we remain committed to the initiatives that were the impetus behind our 2004 success. We intend to add to the number of account executives, which we increased 20.1% during 2004, diversify our customer mix and accelerate our programs to raise our presence in the public sector market while maintaining a sharp focus on reducing our operating expenses."

Operating highlights included Fourth quarter 2004 direct online sales increased 109.3% over the prior year, representing 20.6% of total sales. While consolidated outbound sales to the small to medium sized business, large customer account and public sector markets were $115.8 million in the fourth quarter of 2004 compared to $115.2 million in the same period of 2003.

Gross profit margins were 11.6% in the fourth quarter of 2004, representing an increase from 10.7% in the fourth quarter of 2003, as well as a sequential increase from 10.9% in the third quarter of 2004. The sequential and year over year increase in gross profit percentage is due to product mix and an improvement in related vendor programs.

The Company's balance sheet remained strong and ended the year with a cash balance of $6.5 million. Consolidated working capital was $27.0 million at December 31, 2004 compared to $20.9 million at December 31, 2003.

Zones has 3 main competitors (CDWC) @$56.96; (NSIT) @$20.07 and (PCCC) @ $6.23. Notably, on June 3rd Microsoft announced that Zones was the recipient of the Microsoft's Operational Excellence Award for fiscal year 2005. This prestigious award was presented at Microsoft's annual Channel Partner Summit and recognizes that Zones has exceeded rigorous standards for operational excellence.

With a vision to be a learning community, empowered to serve their customers with integrity, commitment and passion they must be doing something right. Check out their web site and see for yourself.

Are you ready for the Zones?

Current Value of the SOW Portfolio:

$93,782.44

Simple Return: 22.36%

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

S & P 500 Value : $86,384.52
Simple Return: 3.11%

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

Treasury Bond Value : $78,853.
Simple Return: -83.33%

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

80% of the SOW Portfolio is returning 17% or better. Airline Stocks are through the roof with current earnings in AWA and AMR at better than 55%, CAL is at 91%

and GME with returns at 69% respectively. Individual Stocks continue to outperform equal investments in the S & P 500 and the TLT Treasury Bond index fund which turn a nose dive this week.

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: SPORTS CHALET

Sport Chalet, Inc. operates specialty sporting goods superstores in Southern California and Nevada. The Company sells traditional sporting goods merchandise like footwear, apparel and other general athletic products and nontraditional merchandise like downhill skiing, mountaineering and SCUBA products. In addition, Sport Chalet also offers value-added services from “The Experts” enabling their serious sports enthusiast customers to take lessons, giving them a complete experience from getting advice to receiving training in their sport. In addition, they operate a retail e-commerce store at http://www.sportchalet.com/

Their legacy started on April 1, 1959, when a young man named Norbert Olberz heard about a little ski shop for sale. It was located north of Los Angeles. In 1981, Norbert doubled the size of his Company by opening a store in Huntington Beach and began to build a loyal following of beach customers.

In 1992, Sport Chalet went public, trading on the NASDAQ Stock Market under (SPCH). In 2001, Sport Chalet expanded beyond Southern California for the first time, entering Nevada. In 2003, Sport Chalet opened stores in Northern California. Today they have 36 stores and are continuing to expand.

In June 1998, six years after gong public, the founder of Sport Chalet, Norbert Olberz gave nearly 300,000 of his own Sport Chalet shares to all employees who had been with the company for more than 10 years and managers with more than one year of company loyalty in celebration of its most profitable year in sales and gross profits.

Trading on July 28th @ $17.05. 48% higher than their 52-wk low (11/3/2004): $11.51. Their 52-wk high (6/29/2005):$19.50

Their goals for 2005 are to leverage the investments they have made to intelligently grow. This year they expand into Northern California with three new stores. Their first Central California store will open and they will add another Southern California location. These five new store openings will set a record for new store growth.

Remodeling older stores will give them 44% of their store base being three years old or less. Their employees have been challenged to work more closely together than ever before to improve their logistics processes, bringing in merchandise to market even faster yet at a lower cost and making sure every item is received in their stores in "floor-ready" condition.

Are they on the right financial track? On June 28, 2005 Sport Chalet, Inc. announced the results for its fiscal year ending March 31, 2005. Sales increased 17.0%, from $264.2 million last year to $309.1 million this year. The increase was the result of opening five new stores this year and three last year, as well as a same store sales increase of 5.7%.

The same store sales increase is due to better inventory assortments compared to the same period last year and increased customer traffic from the appeal of winter related merchandise. Sales of winter related merchandise were driven by record winter weather conditions at the resorts frequented by their customers. Same store sales excluding winter related products increased 4.7%.

Gross profit margin increased from 30.3% last year to 30.9% this year primarily due to a strong winter season, which reduced the need for markdowns as well as reduced costs from more efficient inbound logistics.

Net income increased $1.5 million, or 32.9%, from $4.6 million to $6.2 million this year.

Commenting on the results, Craig Levra, Chairman and CEO said, "Our outstanding results for the fiscal year reflect the consistent and effective execution of our strategic plan. The entire Sport Chalet team contributed to a very successful year during which we made strides in both enhancing our operational performance and implementing our growth plans. As we expand into Arizona in the new fiscal year, we believe we are well positioned for continued strong performance.

“As we announced in a separate release today, the Company’s board of directors has proposed a recapitalization plan that is designed to facilitate the orderly transition of control from Norbert Olberz, the principal stockholder, to the Company’s management and increase financial flexibility for the Company and its stockholders. The proposed recapitalization plan retains current stockholders’ existing voting interests and allows management to maintain our strong culture and continue to focus on our growth strategy. Overall, we are pleased with our results for fiscal 2005 and encouraged about the direction of our business. We remain committed to our strategy to generate long-term top and bottom line growth and increase stockholder value.”

Being debt free for the last seven years, this forty-five year old sports company seems to have a feel for their customers and what they want. Can Sports Chalet successfully have a “changing of the guard”, add new stores and still be a climber in this Bull Market?

#

STOCK PERFORMANCE SOARS

Current Value of the SOW Portfolio:

$89,552.18

Simple Return: 23.26%

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

S & P 500 Value : $82,282.78
Simple Return: 3.12%

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

Treasury Bond Value : $76,435.
Simple Return: .62%

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

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. Airline Stocks are through the roof with current earnings in AWA and AMR at better than 55%, CAL is at 97%

USG, and GME also show incredible returns at 46% and 72% 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

#

STOCK OF THE WEEK: ZONES INC

Stock of the Week: Zones, Inc.

Zones Inc and its subsidiaries principal activity is to resell name-brand information technology products to the small to medium sized business and the public sector. The products are offered through catalogs, trade publications and a telemarketing sales team. They are also sold through outbound and inbound account executives, specialty print and e-catalogs and the Internet. They market more than 150,000 products, which include printers, monitors, keyboards, modems, scanners and desktop. These products are supplied by more than 2,000 manufactures such as Apple, Compaq, Hewlett-Packard, IBM, Microsoft and Toshiba. The Group conducts its business in the United States under the service marks The PC Zones (R) and The Mac Zone (R) registered with the United States.

Incorporated in 1988, Zones, Inc., (ZONS) is headquartered in Auburn, Washington. Traded on NASDAQ since July 1996, they closed July 18th @ $3.72. Their 52 week high $7.40 came on 11/19/04 and their 52 week low $2.45 came on 9/12/04.

Their business model relies on building and maintaining relationships with their customers by anticipating their needs and providing the customer with service they have come to expect from Zones. They strive to deliver the best-in-class service by offering the most competitive value based on:

Price. Competitive pricing.

Availability. With more than 150,000 products available, Zones delivers.

Information. Because the technology industry is constantly changing with new and upgraded products and services, Zones Account Executives receive continuous training.

Fulfillment. Zones goal is to deliver every order complete- and on time.

Service. Zones offer a breadth of services that support the customer IT relationship. For example, their free customized online order management system called ZonesConnectTM helps their customers reduce administrative costs and streamline their purchasing process. With additional services such as asset tagging, imaging and product upgrades, Zones is a proactive business partner throughout the sales cycle, from presale to after the sale.

Zones Announced its Financial Results for the Year and Quarter Ended December 31, 2004. Highlights-

Sixth consecutive profitable quarter
2004 earnings per share increases to $0.32 compared to earnings per share $0.11 in 2003
2004 net sales increased 8% year over year

Net income for the year ending December 31, 2004 improved to $4.7 million, or $0.32 per diluted share, compared to $1.6 million, or $0.11 per diluted share, for the corresponding period a year ago. For the year ended December 31, 2004, net sales increased 7.6% to $495.6 million from $460.8 million for the corresponding period of the prior year.

Firoz Lalji, President and CEO, remarked, "We just completed our 6th consecutive quarter of profitability and by any measure our financial performance in 2004 was outstanding. Looking ahead to 2005, we remain committed to the initiatives that were the impetus behind our 2004 success. We intend to add to the number of account executives, which we increased 20.1% during 2004, diversify our customer mix and accelerate our programs to raise our presence in the public sector market while maintaining a sharp focus on reducing our operating expenses."

Operating highlights included Fourth quarter 2004 direct online sales increased 109.3% over the prior year, representing 20.6% of total sales. While consolidated outbound sales to the small to medium sized business, large customer account and public sector markets were $115.8 million in the fourth quarter of 2004 compared to $115.2 million in the same period of 2003.

Gross profit margins were 11.6% in the fourth quarter of 2004, representing an increase from 10.7% in the fourth quarter of 2003, as well as a sequential increase from 10.9% in the third quarter of 2004. The sequential and year over year increase in gross profit percentage is due to product mix and an improvement in related vendor programs.

The Company's balance sheet remained strong and ended the year with a cash balance of $6.5 million. Consolidated working capital was $27.0 million at December 31, 2004 compared to $20.9 million at December 31, 2003.

Zones has 3 main competitors (CDWC) @$56.96; (NSIT) @$20.07 and (PCCC) @ $6.23. Notably, on June 3rd Microsoft announced that Zones was the recipient of the Microsoft's Operational Excellence Award for fiscal year 2005. This prestigious award was presented at Microsoft's annual Channel Partner Summit and recognizes that Zones has exceeded rigorous standards for operational excellence.

With a vision to be a learning community, empowered to serve their customers with integrity, commitment and passion they must be doing something right. Check out their web site and see for yourself.

Are you ready for the Zones?

#