b.i.g. tips 3/6/09

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B.I.G. Tips 3/6/09

of 13 © Copyright 2009, Bespoke Investment Group, LLC. Bespoke Investment Group, LLC believes all information contained in this report to be accurate, but we do not guarantee its accuracy. None of the information in this re-port or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities.

This Week In Review: A Series of Worsts Another month, another worst. March started of much the same way that February ended, with the worst week of 2009 and a 6.2% decline in the DJIA. The inauspicious start to 2009 continues, as the worst January on record (-8.84%) was followed by the third worst February on record (-11.72%), which is so far being followed by the worst start to March on record. Add them all together, and you get the worst start to the year ever with a decline of 24.49%.

In the chart to the right, we highlight the Dow’s daily changes during the worst five years since 1900 through March 6th. In three of these years the DJIA finished the year higher than it was on March 6th, although there were no years where it rebounded by more than 10%. The one down year of the four was in 1920 when the DJIA continued to decline an additional 24%.

The market’s declines so far this year have also officially ended what in name only was a bull market off the November 20th lows. As shown, from the low on November 20th, through January 2nd, the S&P 500 gained 24%, fitting the technical definition of a bull market. Since then, the US benchmark index has more than erased those gains for a loss of 28%. The rally began on the premise of hope with Tim Geithner’s nomination, but ended as reality set in.

DJIA: Five Worst Starts to a Year Since 1900 (Thru 3/6)

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S&P 500: 11/20/08 - 3/6/08

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S&P 500 vs. Oil Intraday: 3/2 - 3/6

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Year January Year February Year March Year YTD2009 -8.84 1933 -15.62 2009 -6.17 2009 -24.491916 -8.64 1920 -12.05 1931 -5.24 1920 -11.831960 -8.35 2009 -11.72 1942 -4.39 2000 -11.541978 -7.37 2000 -7.42 1980 -4.06 1978 -10.641910 -7.21 1946 -7.12 1929 -3.85 1960 -10.24

DJIA: Five Worst Percentage Declines By Month: 1900 - 2009


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Not only have we erased the gains since November, or the gains during the previous bull mar-ket, but the market is lower now than it was at the end of 1996, erasing more than 12 years worth of gains. Earlier in the week, we looked at the performance of the largest 100 stocks in the S&P 500 since October 1996, which was the last time the index traded at these levels.

Of the names in the index, 36 are up, 43 are down, and the rest were either acquired or went bankrupt. As shown, the best stocks include AOL/Time Warner, Exelon, Wal-Mart, EMC, Am-gen, Exxon Mobil, and Oracle. Intel is up just 3.33%, JP Morgan is down 27%, GE is down 58%, and Citigroup and Ford are down 90%. There's no doubt that the S&P 100 will look much dif-ferent if we fast forward 4,528 days to July 27, 2021, but hopefully the index and most of its members will at least be higher!

Ticker Company 10/10/96 Current % Chg Ticker Company 10/10/96 Current % ChgTWX AOL/Time Warner Inc 1.61 7.47 364.15 BMY Bristol-Myers 23.44 18.38 -21.58EXC Exelon Corp 12.13 45.32 273.77 JPM JPMorgan Chase 27.00 19.75 -26.85WMT Wal-Mart Stores Inc 13.50 47.86 254.52 CPB Campbell Soup Co 37.56 26.77 -28.74EMC EMC Corp 3.03 10.61 250.63 RSH RadioShack Corp 9.94 7.01 -29.51AMGN Amgen Inc 15.41 48.54 215.07 MRK Merck & Co Inc 32.95 22.98 -30.26XOM Exxon Mobil Corp 21.46 65.79 206.51 WMB Williams Cos Inc 15.38 10.39 -32.42ORCL Oracle Corp 4.99 15.11 202.94 AEP American Electric Pwr 41.13 25.77 -37.34IBM IBM 31.94 89.36 179.80 BA Boeing Co 48.81 30.18 -38.17CL Colgate-Palmolive 21.78 59.03 171.01 BDK Black & Decker Corp 40.88 22.36 -45.30UTX United Technologies 15.20 39.33 158.70 AES AES Corp 10.69 5.55 -48.07BAX Baxter International 21.51 52.52 144.13 SLE Sara Lee Corp 15.09 7.40 -50.96ETR Entergy Corp 26.75 64.25 140.19 WY Weyerhaeuser Co 45.00 20.93 -53.48GD General Dynamics 17.16 39.93 132.74 ATI Allegheny Tech 41.24 19.05 -53.80MCD McDonald's Corp 22.81 52.80 131.45 AA Alcoa Inc 14.39 6.17 -57.14SO Southern Co 13.32 28.82 116.32 GE General Electric Co 15.33 6.40 -58.26MSFT Microsoft Corp 7.52 16.27 116.28 DD EI Du Pont de Nemours 47.50 18.03 -62.04TXN Texas Instruments Inc 6.89 14.80 114.79 CBS CBS Corp 13.46 3.67 -72.73CSCO Cisco Systems Inc 7.22 15.23 110.88 DOW Dow Chemical Co 26.30 7.08 -73.08BNI Burlington Northern 27.66 56.86 105.59 EP El Paso CGP Co LLC 22.75 5.99 -73.67FDX FedEx Corp 20.28 41.44 104.33 XRX Xerox Corp 27.56 4.72 -82.88PG Procter & Gamble Co 23.66 47.37 100.21 BAC Bank of America Corp 21.88 3.72 -82.99SLB Schlumberger Ltd 19.74 37.97 92.31 HIG Hartford Financial Svcs 30.13 4.38 -85.46JNJ Johnson & Johnson 25.44 48.36 90.11 IP International Paper Co 42.50 4.62 -89.13PEP PepsiCo Inc 26.57 47.66 79.40 C Citigroup Inc 11.80 1.21 -89.75HPQ Hewlett-Packard Co 17.51 28.81 64.54 F Ford Motor Co 20.26 1.89 -90.67MS Morgan Stanley 11.98 19.51 62.75 OMX OfficeMax Inc 33.00 2.85 -91.36HD Home Depot Inc 12.81 18.93 47.83 GM General Motors Corp 39.40 2.15 -94.54AVP Avon Products Inc 12.44 16.42 32.02 UIS Unisys Corp 7.13 0.38 -94.67MMM 3M Co 35.38 44.97 27.12 EK Eastman Kodak Co 75.50 2.92 -96.13USB US Bancorp 9.37 11.36 21.27 AIG American Intl Group 24.36 0.44 -98.18HAL Halliburton Co 13.88 16.16 16.47 Alcatel-Lucent USATYC Tyco International 17.40 19.76 13.56 Bank One CorpNSM National Semi 9.88 10.69 8.25 Clear Channel CommHNZ HJ Heinz Co 30.41 31.87 4.81 Delta Air Lines IncINTC Intel Corp 12.48 12.90 3.33 Enron CorpCI CIGNA Corp 13.94 14.24 2.12 Gillette CoNSC Norfolk Southern 30.04 29.61 -1.44 Global Crossing LtdVZ Verizon Comm 28.72 28.01 -2.47 Harrah's EntertT AT&T Corp 23.63 22.79 -3.54 HCA IncWFC Wells Fargo & Co 10.56 9.99 -5.42 May DepartmentPFE Pfizer Inc 13.50 12.29 -8.96 Medimmune IncCSC Computer Sciences 40.12 35.95 -10.40 Merrill Lynch & Co IncBHI Baker Hughes Inc 32.00 28.39 -11.28 Nestle Purina PetCareAXP American Express Co 13.53 11.53 -14.79 Nextel CommLTD Ltd Brands Inc 8.36 6.81 -18.49 Pharmacia CorpDIS Walt Disney Co 20.93 16.90 -19.24 Sears Roebuck and CoRTN Raytheon Co 46.13 37.17 -19.41 Toys R US IncKO Coca-Cola Co 49.00 39.42 -19.56 Nortel Networks CorpHON Honeywell Intl 32.38 25.55 -21.08 Lehman Brothers Bankrupt

S&P 100 Stocks on October 10th, 1996

AcquiredAcquiredAcquiredAcquiredAcquired

BankruptAcquiredAcquiredAcquiredAcquiredAcquired

AcquiredAcquiredAcquiredBankruptBankruptAcquired

Bankrupt


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With the Financial sector being at the center of the market’s storm, many investors think a market rally is close to impossible without that sector participating. However, as Wednesday’s trading showed, rallies without the Financial sector are becoming increasingly common. Even as the S&P 500 rose by over 2%, the Financial sector declined!

Since daily sector data begins in 1989, Wednesday was only the 13th time that the S&P 500 rose by more than 1% on a day when the Financial sector was down. Even more notable was the fact that Wednesday's decline in the sector was the first ever occurrence where the sector declined on a day when the S&P 500 rose by over 2%. Usually on a 2% day, almost everything goes up! Wednesday, though, of the 61 stocks in the index that finished the day lower, 21 were Finan-cials.

As shown to the right, of the thirteen instances highlighted since 1989, four have come during the last six months. That's what happens when a sector that was once over 22% of the S&P 500 now makes up only 8.4%, for its lowest weighting since 1990.

Date S&P 500 Financial Sector10/14/93 1.16 -0.693/11/96 1.03 -0.604/16/97 1.17 -0.1312/1/98 1.00 -0.098/25/99 1.34 -0.90

11/18/99 1.01 -0.041/10/00 1.12 -1.782/3/00 1.12 -0.241/18/01 1.39 -1.20

10/23/08 1.26 -0.8612/10/08 1.19 -0.68

2/3/09 1.58 -2.523/4/09 2.38 -0.75

S&P 500 Up 1%+ and Financials Down

Percent Change (%)

Financial Sector Weight in S&P 500: 1990 - 2009 (Percentage)

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The way things are going for the Financials, the outlook doesn’t look too bright. On Thursday, Citigroup traded below $1 per share. Citigroup is now the only stock in the Dow and one of six stocks in the growing list of S&P 500 stocks (AIG, ETFC, ODP, GNW, and THC) currently trading under a dollar. The only question investors have now is when does Citi get pulled from the Dow? Although at this point does it really matter? Consider the fact that if Citi dropped to zero, given its weight in the index, it would have less than an 8 point impact on the overall price of the index.

With a market cap of $5 billion, what was once the largest bank in the US and the rest of the world is now smaller than most Russian, Chinese, and Indonesian banks. Additionally, the con-troversial $400 million naming deal for the new Mets stadium now represents 8% of the com-pany’s market cap. Regarding the stock price, it is now cheaper than the ATM fee Citi charges to use their ATMs, and cheap enough to be sold in a dollar store.

While Citi may have been the Financial stock whose decline was the most talked about, it cer-tainly wasn’t the only one under pressure. The whole sector fell this week, as even names who were thought of as being relatively immune to the crisis, like JPM and Goldman, saw dou-ble digit percentage declines. Even non-financial companies with financial exposure were sold, with GE among the most high profile names to see declines.

Last Friday, the decline in the stock began to intensify when the company announced that it would cut its dividend from $0.31 down to $0.10 per share. This came even after repeated assurances by CEO Jeff Immelt that the dividend was safe through 2009. Even though the move wasn’t much of a surprise to Wall Street, the company lost a considerable amount of credibility from their flip-flop.

Citigroup Intraday: 3/5/09

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This week the selling further accelerated as the stock traded under $6 per share. What was once the largest company in the world in terms of market cap is now barely hanging in there on the list of twenty largest stocks in the S&P 500. With a market cap of $73 billion, GE is now less than one quarter of the size of XOM, which remains the largest company in the index.

Throughout the week, GE also made several assurances to investors that it remained on firm financial footing. On Thursday, the CFO even took the unusual step of appearing on the com-pany’s CNBC network to help dispel fears that the company was in financial trouble and needed to raise capital. While the stock stabilized somewhat, investors remained skeptical. After all, beginning with Alan Schwartz’s claims that Bear Stearns was on solid financial footing three days before the firm collapsed, there has been a long line of financial sector executives saying one thing, when the reality was another (John Thain, Dick Fuld, Robert Steele, Jeff Immelt, etc…)

Ticker Name Sector Price Market Cap ($,bln)XOM Exxon Mobil Energy 62.72 309.94WMT Wal-Mart Consumer Staples 48.80 191.42MSFT Microsoft Information Technology 15.08 134.07PG Procter & Gamble Consumer Staples 45.08 132.12JNJ Johnson & Johnson Health Care 47.41 131.10T AT&T Telecommunication Services 22.06 130.01CVX Chevron Energy 57.56 115.38IBM IBM Information Technology 84.93 113.95GOOG Google Information Technology 306.39 96.60KO Coca-Cola Consumer Staples 38.59 89.32PFE Pfizer Health Care 12.51 84.41CSCO Cisco Systems Information Technology 14.24 83.13VZ Verizon Telecommunication Services 26.80 76.13AAPL Apple Information Technology 84.75 75.47GE General Electric Industrials 6.89 72.82ORCL Oracle Information Technology 14.35 72.42PEP Pepsico Consumer Staples 46.38 72.18ABT Abbott Labs Health Care 46.54 71.92INTC Intel Information Technology 12.29 68.37PM Philip Morris Consumer Staples 32.68 65.49

Largest 20 Companies in the S&P 500


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With the market in a freefall, trading at more than 12 year lows, and a genuine lack of trust on the part of investors, it comes as little surprise that investor sentiment is at record lows. This week's survey of investor sentiment by the American Association of Individual Investors (AAII) showed that investors are now at their most bearish levels in the history of the survey. As shown, 70.27% of respondents to the weekly survey are currently in the bearish camp.

While investors are at record high levels of bearish sentiment, strategists have yet to throw in the towel. While two more Wall Street strategists lowered their year-end S&P 500 price tar-gets recently, collectively they're still looking for a 46% gain from the index's current levels. As shown below, UBS, Goldman, and Credit Suisse have now lowered their year-end price targets since the start of the year. The UBS move from 1,300 to 1,100 makes Deutsche Bank the most bullish with a target of 1,140. Barclays has the lowest price target of 874, which would still be a 27% increase from here.

Firm StrategistPrice Target At

Start of Year% From S&P 500

on 12/31/08Current

Price TargetCurrent %

From S&P 500 Deutsche Bank Binky Chadha - - 1140 65.94UBS David Bianco 1300 43.92 1100 60.12JP Morgan Thomas Lee 1100 21.78 1100 60.12RBC Myles Zyblock - - 1050 52.84Citigroup Tobias Levkovich 1000 10.71 1000 45.56HSBC Kevin Gardiner 1000 10.71 1000 45.56B of A Richard Bernstein 975 7.94 975 41.92Morgan Stanley - - - 975 41.92Goldman Sachs David Kostin 1100 21.78 940 36.83Credit Suisse Andrew Garthwaite 1050 16.25 920 33.92Barclays Barry Knapp 874 -3.24 874 27.22

Average 1049.9 16.2 1006.7 46.54

Lowered

Strategist S&P 500 Year-End 2009 Price Targets


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On the economic front, Friday’s employment report, which showed the unemployment rate at a 28-year high, served as a reminder that the economy keeps digging itself deeper into a hole. On Wednesday, we noted that since initial and continuing jobless claims do not take the size of the labor force into account, they tend to overstate the severity of the jobs downturn. At the same time, though, other indicators like vehicle sales are understating the severity of the downturn in the consumer sector.

This week's release of vehicle sales for the month of February came in at an annualized rate of 9.1 million cars and trucks, which was the lowest reading since December 2001 (8.8 mln). In the chart below we have calculated the monthly annualized auto sales number as a percent-age of the US population. As shown, this February's level equaled 2.97% (annualized) of the population, which is the lowest level in at least 40 years.

2.90%

US Vehicle Sales as a Percent of Total Population: Monthly Annualized

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While the major averages have made new lows, the flight to Treasuries that we saw last time the market was this low hasn’t materialized. The yield on the ten-year US treasury got as low as 2.03% late in 2008, but with the anticipated issuance of government debt on the horizon, yields have remained in the high 2% range.

High yield credit spreads are on the upswing once again, indicating heightened anxiety on the part of fixed income investors. While still below the lows of last year, the direction is discouraging.

Similarly, financial default risk as measured by our Bank and Broker CDS index has once again spiked to the same levels seen during the panic around the time that Lehman went under. Back then, de-fault risk for the major brokers was causing our in-dex to spike. Now it’s default risk for the big banks like Citi, JP Morgan, Bank of America, and Wells Fargo that is pushing the index higher. Over the last month, financial default risk is up 47%, and it’s up 25% in the last week. This is occurring at the same time that the entire finan-cial sector is withering to nearly nothing. The S&P 500 Financial sector is now down to just 80 after crossing above the 500 level back in 2007. The government still had a little bit of ammo left in late 2008 when the first real panic spread. But that ammo is running very low, if not already gone, at this point.

% Change

One YearOne MonthOne Week 24.66

-72.58-24.24-15.71

Bespoke's Bank and Broker CDS Index vs S&P 500 Financial Sector

Bespoke Financial CDS Index

S&P 500 Financial Sector

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High Yield Credit Spreads: 7/1 - 3/5 (Merrill Lynch Index)

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While most (if not) every aspect of the market seems to be negative, we would be remiss if we didn’t at least point out some of the positives, and for the most part they are things that are just getting less worse. For starters, both the ISM Manufacturing index and the change in non-farm payrolls increased compared to the prior month’s level for the second straight month. Make no mistake, the levels of each indicator are extremely negative, but at least the pace of the declines is getting less worse.

While worries over increased supply in the pipeline has kept Treasury yields stubbornly high relative to their recent range, the dollar has managed to rally even in a climate of trillion dollar deficits and bailouts. One would think that the dollar would be under pressure, and yet this week it hit its highest level since April 2006. But when you're competing against the likes of Europe, the dollar suddenly doesn't look so bad. So while, the US is faced with plenty of prob-lems, our currency’s status as a safe haven is a positive for our markets.

ISM M anufacturing Index: 2006 - 2009 Change in Non Farm Payrolls: 2006 - 2008

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While analysts continue to find themselves behind the curve in terms of earnings estimates, the pace of negative revisions is slowing. As we noted in this week’s Earnings Revisions report, for the S&P 1500 and each of the ten sectors, analysts are still cutting forecasts for more com-panies than they are raising forecasts for. However, for every sector with the exception of Utilities, the pace of negative revisions is slowing. While it will be hard for the market to make a meaningful advance until analysts find themselves behind the curve on the upside, you have to start somewhere, and what we have been seeing in the last several weeks is a step in the right direction.

S&P 1500 Net Earnings Revisions By Sector

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S&P 1500 vs Net Earnings Estimate Revisions

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For each sector, we measure the net percentage of companies in each sector that have

seen estimates raised or lowered over the last four weeks

Revisions rate improving, even as the market sinks to new lows.


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As shown below, the S&P 500 and each of its ten sectors are all currently oversold to close out the week. As is often the case during bear markets, the correlation among the sectors is high at the moment. On Monday morning, we put a substantial part of our cash position to work in the model portfolio, and based on the market’s performance during that time, we were clearly early.

Not to beat on a dead horse, but the one positive that continues to stick out is the percentage of stocks in the S&P 500 making new lows. With today’s decline to a new intraday low, only 36% of the stocks in the index made a new low. While this is high, it is nowhere near the levels we saw in October and November of last year. All we need now is a spark to get the fire going.

Sector Most Oversold Most Overbought

S&P 500 OS - 9/29/08 5/2/08

Cons. Discret. OS 0.99 10/7/08 5/15/08

Cons. Staples OS 0.96 10/9/08 4/1/08

Energy OS 0.97 10/10/08 4/21/08

Financials OS 0.98 10/9/08 9/8/08

Health Care OS 0.94 3/2/09 8/8/08

Industrials OS 1.00 10/2/08 4/1/08

Materials OS 0.99 7/2/08 4/16/08

Technology OS 0.99 9/17/08 4/21/08

Telecom Svcs OS 0.96 9/17/08 5/1/08

Utilities OS 0.97 7/17/08 4/16/08

Normal Trading Range Most Oversold Reading Most Overbought Reading

DatesCorrelation with S&P 500

S&P 500 Sector Trading Ranges: 3/6/09

One Year Trading Range Overbought/

Oversold

S&P 500 vs Net New Highs: 2008 - 2009

Net 52 Week Highs (Percentage of Stocks)

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Stock CompanyCurrent

PricePortfolio

Weight (%)Entry Price

Stop Price Date Added % Change

Consumer Discret. 11.8FDO Family Dollar 30.36 6.2 27.49 22.50 3/2/09 10.4PZZA Papa John's 21.95 5.5 22.20 18.10 3/2/09 -1.1

Consumer Staples 16.2ADM Archer-Daniels 25.96 5.5 22.64 15.75 11/21/08 14.7MO Altria Group 15.72 5.2 14.54 12.00 11/21/08 8.1MKC McCormick 30.32 5.6 31.12 27.50 3/2/09 -2.6

Energy 5.7CVX Chevron Corp 58.27 5.7 58.56 53.50 3/2/09 -0.5

Financials 10.0GS Goldman Sachs 75.65 4.8 86.89 67.50 3/2/09 -12.9MA MasterCard 142.44 5.3 151.40 131.00 3/2/09 -5.9

Health Care 4.9CPSI Comp. Program 24.85 4.9 26.91 22.75 3/2/09 -7.7

Industrials 0.0

Materials 5.6MOS Mosaic 39.16 5.6 38.60 31.20 3/2/09 1.5

Technology 15.1AAPL Apple 85.30 5.5 86.91 70.00 10/8/08 -1.9GOOG Google 308.57 5.1 333.99 285.00 3/2/09 -7.6INTC Intel Corp 12.41 4.6 13.65 10.75 11/11/08 -9.1

Telecom Services 0.0

Utilities 5.3WTR Aqua America 18.06 5.3 18.35 15.60 3/2/09 -1.6

ETFs 0.0

Cash 25.3

Performance (%): = New Position

Since Inception1 YTDS&P 500 -55.0 -24.3Model Portfolio -26.8 -11.9

vs. S&P 500 28.2 12.51 Bespoke's Model Portfolio began with an initial value of $100,000 on 5/29/07.

Bespoke Model Portfolio


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By using our site (this “Site”), you are agreeing to comply with and be bound by the following terms and conditions. If you do not agree to the following terms and conditions, you may not use this Site. The terms “Bespoke”, “us”, “we” or “our” refer to Bespoke Investment Group, LLC. The term “Service” includes, but is not limited to, the text, content, graphics, audio or video produced by Bespoke and appearing on this Site. The terms “you” and “your” refer to the user of the Service or viewer of this Site.

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By using this Site, you represent to us that you have read and agree to the terms and conditions set forth in this legal statement, which consti-tutes a legal and binding agreement between you and us (the “Agreement”). This Agreement constitutes the only and entire agreement be-tween you and us, and supersedes all prior or contemporaneous agreements, representations, warranties and understandings with respect to your use of the Site and the Service. This Agreement may be amended at any time by us, and from time to time, without any notice to you. The latest Agreement will be posted on the Site, and you should review the Agreement prior to using or viewing this Site or the Service. You also agree to comply with U.S. law regarding the transmission of any information or data obtained from the Site or the Service in accordance with this Agreement. You also agree to not disrupt or interfere with the Site or the Service or use the Site or the Service for illegal purposes.

Copyrights and Trademarks

The works of authorship contained in the Service, including but not limited to all data, design, text, images, charts, audio, video or other data compilations or collective works, and all trademarks, tradenames, service marks and other intellectual property, are owned, except as other-wise expressly stated, by Bespoke or one of our data providers, and may not be copied, reproduced, transmitted, displayed, performed, dis-tributed, rented, sublicensed, altered, stored for subsequent use or otherwise used in whole or in part in any manner without the prior writ-ten consent of Bespoke in each instance. This Site and the Service are protected by copyrights, trademarks, service marks, international trea-ties, and/or other proprietary rights and laws of the United States. The Site and the Service are also protected as collective works or compila-tions under U.S. copyright and other laws and treaties. All individual articles, columns, and other elements making up the Site or the Service are also copyrighted works. You agree to abide by all additional copyright notices or restrictions contained in the Site or the Service.

Disclaimer and Limitations of Liability

All information, data and analysis contained in the Site or the Service are provided “AS IS” and without warranty of any kind, either expressed or implied. Bespoke is not a Registered Investment Adviser. All information, data and analysis provided by the Site or the Service is for infor-mational and educational purposes only and is not a recommendation to buy or sell a security or basket of securities, including but not limited to equities, options and other derivative products, fixed income products, and ETFs. Bespoke believes all information, data and analysis con-tained in the Service to be accurate, but does not guarantee its accuracy. Under no circumstances, including, but not limited to, negligence, shall Bespoke, any of Bespoke’s affiliates, employees, or other third party data providers be liable to you for direct, indirect, consequential, incidental, special, punitive or exemplary damages even if an authorized Bespoke representative has been advised specifically of the possibil-ity of such damages, arising from the use of or inability to use the Site or the Service, such as, but not limited to, losses, loss of revenue, antici-pated profits or lost business. In no event shall Bespoke’s total liability to you for all damages, losses, and causes and action (whether in con-tract or tort, including but not limited to negligence) exceed the amount paid by you, if any, for accessing this Site or using the Service. All opinions expressed on this Site are subject to change without notice, and you should always obtain current information and perform appro-priate due diligence before making trades or investment decisions. Bespoke, any of Bespoke’s affiliates, employees, or other third party data providers may have long or short positions in the securities discussed in the Service and may purchase or sell such securities without notice. Bespoke uses various methods to evaluate investments which may, at times, produce contradictory recommendations with respect to the same securities. When evaluating the results of prior Bespoke recommendations or Bespoke performance rankings, you should also consider that Bespoke may modify the methods it uses to evaluate investment opportunities from time to time. For this and for many other reasons, the performance of Bespoke’s past recommendations or investments is not a guarantee of future results.

The securities mentioned in this Site or in the Service may not be eligible for sale in some states or countries, nor be suitable for all types of investors; their value and income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates or other factors.

Governing Law

This Agreement and your use of the Site and Service will be governed by the laws of the State of New York, as applied to contracts entered into between New York residents and performed in New York. Any dispute arising out of this Agreement or your use of the Site or the Service will be heard only in the state or federal courts located in Westchester County, New York USA, and you consent and submit to the personal jurisdiction of such courts.

Interpretation

If any provision of this Agreement is found invalid or unenforceable, that provision will be enforced to the maximum extent permissible, and the other provisions of the Agreement will remain in force. This Agreement states the entire agreement between you and us relating to use of the Site or the Service. This Agreement may not be amended except as provided above.

Contact

If you have any questions, concerns or comments, please email [email protected].

b.i.g. tips 3/6/09

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