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AlphaProfit Newsletter: Repositioning Schedule and June Indicator Update
June 2, 2008

Dear Valued Subscriber,

The Core and Focus model portfolios will be repositioned for the evolving market environment after the markets close on Monday, June 30. To help you closely track the model portfolios, we will publish the Repositioning Alert by 12:00 p.m. Central Time on June 30 in the Subscriber Login area. We will notify you via e-mail when the Repositioning Alert is published on the web site.

Market Developments.

The broad market as measured by the Dow Jones Wilshire 5000 Index pushed ahead for the second month in a row. Sectors like technology and energy spearheaded the rally while financials lost ground. Additionally, small and mid-cap stocks outran large-caps. As a result, the widely followed U. S. equity market benchmarks put in a mixed showing: The Nasdaq Composite Index gained 4.6% while the Dow Jones Industrial Average declined 1.4%.

Economic data supported the view that the economy is weak but not in recession. The surge in the price of oil past the $130 a barrel mark stoked inflation concerns. Veering away from its recent course, the Federal Reserve commented on inflation and talked down the possibility of another rate cut.

Maintaining the AlphaProfit Sector Portfolio Indicator at 'Buy'.

The U. S. economy appears to be showing signs of recovering from the sub-prime mortgage mess. Money market rates suggest that banks are becoming more confident about lending. Consumer spending can receive a boost in the coming weeks from tax rebates provided by the federal government. Countering these positives, the outlook for corporate earnings growth is murky.

Data from the housing sector as well as trends in energy prices are likely to be major factors affecting the course of stock prices in the period ahead. The market can continue to maintain its uptrend if the housing market shows signs of bottoming and energy prices remain stable.

We believe the equity market is likely to be range-bound in the period ahead. While we maintain the AlphaProfit Sector Portfolio Indicator at 'Buy' before repositioning the model portfolios, we encourage subscribers to maintain adequate cash reserves in their overall portfolio. The current 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.

Model Portfolio Performance

Model portfolio returns as of May 31, 2008 are as follows:

  May 2008 QTD* 1 Year 3 Year 4 Year Sep. 2003 Inception
AlphaProfit Focus™ Model Portfolio 3.8% 11.9% -4.2% 49.0% 77.4% 124.5%
AlphaProfit Core™ Model Portfolio 4.0% 11.8%  0.1% 46.4% 57.4%   87.5%
DJ Wilshire 5000 Total Market Index 2.1%   7.3% -6.1% 27.4% 39.8%   60.0%

  * QTD refers to the March 31, 2008 to May 31, 2008 period.

Factors driving performance of recommended sectors and industry groups and their investment outlook will be discussed in the June Report due for publication on the 12th.

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 advice on investing. 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 © 2008. AlphaProfit Investments, LLC. All rights reserved.