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AlphaProfit Newsletter: June Indicator Update and Repositioning Schedule
Subscribers Achieve Key Milestone
June 1, 2007

Dear Valued Subscriber,

The AlphaProfit™ model portfolio returns as of May 31, 2007 are as follows:

  May 2007 1H2007* 1 Year 3 Year Sep. 2003 Inception
AlphaProfit Focus™ Model Portfolio 4.7% 10.3% 18.0% 85.2% 134.4%
AlphaProfit Core™ Model Portfolio 3.4%   8.1% 20.4% 57.3%   87.4%
DJ Wilshire 5000® Total Market Index 3.6%   9.2% 22.5% 48.9%   70.4%

  * Dec. 31, 2006 to May 31, 2007

Stocks extended their winning ways in May as M&A activity became more of an everyday event. The value of deals announced worldwide since the start of 2007 exceeded $2 trillion in May. The S&P 500 index exceeded its record high set in year 2000.

The Focus model portfolio's 4.7% advance made the month noteworthy for long-term AlphaProfit Subscribers as well. Subscribers tracking the Focus model portfolio since the start of 2004 more than doubled their account values this month. In other words, their assets have increased 107.7% in 41 months at a 23.8% annualized rate.

All of the three industry group funds included in the Focus model portfolio gained in May. Fidelity Select Computers (FDCPX) was the best performer gaining 6.6%. Fidelity Select Paper & Forest Products (FSPFX) and Fidelity Select Software & Computer Services (FSCSX) gained 4.6% and 2.9%, respectively.

Performance in the computer hardware group was helped by strong earnings from Hewlett-Packard. Investors also enthusiastically bid up Apple's share price to an all-time high on Apple TV and iTunes-related developments. In software, the web advertising space was the epicenter of deal activity. Rumors of a deal between Microsoft and Yahoo! pumped up the latter's share price.

In the forest products space, institutional investors continued to embrace timberland as an asset class while forest product companies and REITs increased efforts to better monetize timberland value.

Meanwhile, inflation fears abated as the U. S. dollar gained against major world currencies and the price of crude oil and natural gas declined. This milieu weighed on gold and the precious metal lost over $22 per ounce in May. Fidelity Select Gold (FSAGX) included in the Core model portfolio declined nearly 1.0%.

From a capitalization perspective, mid-cap stocks fared better than both large-caps and small-caps. The Spartan 500 Index fund (FSMKX) included in the Core model portfolio serves to track the large-cap Standard & Poor's 500 index. This fund's return essentially matched the performance of the DJ Wilshire 5000 model portfolio benchmark.

The model portfolio compositions as well as exchange traded fund (ETF) and mutual fund recommendations are available in the Subscriber Login area of the web site. We are not making any changes to the model portfolios at the present time. The funds included in the model portfolios are equally attractive and none of the funds carries a Favored Buy rating.

Maintaining the AlphaProfit Sector Portfolio Indicator at 'Buy on Dips'.

Equities have been on an impressive run in recent months with the DJ Wilshire index gaining 8.8% since February. With less than a month left for the scheduled repositioning of the model portfolios, we maintain the AlphaProfit Sector Portfolio Indicator reading at 'Buy on Dips'. We suggest new Subscribers to consider the impact of short-term redemption fees before putting a portion of their assets to work. Current Subscribers seeking to add capital to their investment accounts may want to defer investing the cash until the model portfolios are repositioned.

Repositioning Schedule

The model portfolios will be repositioned after the markets close on June 29. To help you closely track the model portfolios, we will publish the Repositioning Alert Preview by 12:00 p.m. Central Time on Friday, June 29 in the Subscriber Login area. We will follow this with the Repositioning Alert Confirmation by 11:00 a.m. Central Time on Sunday, July 1. The Repositioning Alert Preview and Confirmation documents will be e-mailed to you when they are published on the web site.

We welcome your comments.

Best regards,
Sam Subramanian
AlphaProfit Investments, LLC
Ideas. Insights. Results.
http://www.alphaprofit.com

Notes: The AlphaProfit Sector Investors' Newsletter™ is for information purposes only. AlphaProfit Investments, LLC is not soliciting any subscriber to buy or sell any security. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. Before buying or selling any mutual fund, exchange-traded fund, security, or investment, read the prospectus carefully. For securities held in brokerage accounts, read the broker's specific terms and conditions which apply to trading of the securities. AlphaProfit Investments, LLC cannot and does not give any assurance that the present or future model portfolio changes will be profitable. Past performance is not a guarantee for future results. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. AlphaProfit Investments, LLC is not responsible for any errors or omissions. AlphaProfit Investments, LLC neither is associated with nor receives any compensation from any of the mutual fund companies, brokers or entities connected with the exchange-traded funds mentioned in the newsletter. Please review our Terms and Conditions of Use and Subscriber Agreement which is available on our website at www.alphaprofit.com; they govern your relationship with AlphaProfit Investments, LLC, including, but not by way of limitation, use of this newsletter. No part of the AlphaProfit Information may be reproduced or re-transmitted in any manner without written permission of AlphaProfit Investments, LLC.

Copyright © 2007. AlphaProfit Investments, LLC. All rights reserved.