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February  15, 1999

Our new buy ideas from Mid Cap Growth this week are: Amerisource Health Cp(AAS), Biochem Pharma Inc(BCHE) and Complete Business Solutions(CBSI). Details and rationale for new ideas and a list of all current ideas in Mid Cap Growth is in the attached file.

Monday, February 15, 1999: The share price index of the Mid Cap Growth index has declined by 30% relative to the S&P 500 since the September, 1996 high. Current relative price to sales is near the lowest level in the record of the index.

Last week the share price index of the Mid Cap Growth index fell by 2.1% compared to a 0.8% decline for the S&P 500. Gaining stocks in the Mid Cap Growth index numbered 121 or 28.9% of the index total compared to a 29.1% gaining stocks frequency within the S&P 500 and 25.8% across the 3548 stocks in the GEARS U.S. stocks universe.

There are 51 stocks in this index with unusually depressed share prices. Within that group we can find 41 stocks with current evidence of improving fundamentals. Last week there were 34 depressed-share-price stocks with improving fundamentals in this index.

There are 193 stocks in this index with unusually extended share prices. Within that group we can find 111 stocks with current evidence of deteriorating fundamentals. Last week there were 113 extended-share-price stocks with deteriorating fundamentals in this index.

We have collected fourth quarter sales data for 214 of the 419 companies in the Mid Cap Growth index representing 56% of the capital value. The index capital weighted average sales growth rate is 27.3%. The proportion of index market capital accounted for by rising sales growth companies is up to 44.2%, compared to 35.1% last quarter.

Currently, sales growth is low in the record of the Mid Cap Growth index but higher than last quarter, but failing the rising sales growth test.

There is still too little fourth quarter margin data to calculate an index average. Third quarter gross margin data has been collected for 417 of the 419 companies in the Mid Cap Growth index, representing 99% of the capital value. The proportion of total market capital accounted for by rising gross margin companies is up to 58.7% compared to 58.7% last quarter.

The index is recording a rising gross margin. Inventories are up, diminishing the chance of a future increase in the gross margin.

Sectors showing growing strength in fundamentals compared to this time last quarter are Consumer Cyclicals, Basic Industry and Technology. The sectors in this index showing growing deterioration in fundamentals compared to this time last quarter are Consumer Growth, Consumer Staples and Energy.

We collected new accounting numbers from 36 companies in this index this week. Group fundamentals generally deteriorated with those reports.

New buy ideas this week in this index are Amerisource Health Cp and Complete Business Solutions.

New sell ideas in this index this week are Resmed Inc, BA Merchant Svcs Inc, Steel Dynamics Inc, Pri Automation Inc, Diamond Offshore Drilling, DII Group Inc, Siebel Systems Inc, Vicor Corp, Brightpoint Inc, Cymer Inc, Cirrus Logic Inc, Jabil Circuit Inc, Dsp Communications Inc and Sawtek Inc.

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© Copyright 1998, Business Financial Network. All rights reserved.  This material is for personal use only.  Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of Business Financial Network. The content provided within Business Financial Network's web sites is provided for informational purposes only, and should not be construed as investment advice.  At no such time should information contained on Business Financial Network be considered an offer to buy or sell securities. This analysis is based on publicly-available information, and is in no way warranted by Business Financial Network as to accuracy or completeness. Business Financial Network does not guarantee to advise you as to any change in this information. Business Financial Network owners, editors, management, and contributors may currently be stockholders in this Company as the result of purchasing its stock on the open market. Business Financial Network may from time to time purchase or sell this Company's securities on the open market. Business Financial Network otherwise has no affiliation with this Company. Business Financial Network is not compensated by the in any way whatsoever by the company for issuing or distributing this report.