MONTHLY INVESTMENT COMMENT

Nutmeg Securities, Ltd. EQUITY RESEARCH Nutmeg Securities, Ltd., 1960 Bronson Road, Bldg. 2, Fairfield CT 06824 (203) 255-3838 (800) 288-5513 Fax: (203) 255-3069 MONTHLY TECHNOLOGY COMMENT Vol. IV, Issue #10 October 1, 2004 Peter Labé, CFA SEASONAL LOW ZONE, REMAINING AS BUYERS In this issue: • How to Play the IT Spending Cycle (in our view) • EMC vs. Hitachi • Gateway Morphs Again September-October are traditional low points for tech stocks. This may be true this year as well – not only do we have fund tax selling in October, but we have a third quarter that looks ok but not exceptional. The stocks look better towards yearend, as we will discuss. THE PRESIDENTIAL ELECTION: LOOKS LIKE A PLUS FOR STOCKS Unless there is some major new development, it is our view that President George W. Bush will be re-elected president, and probably winning big. We would expect the market to go up with a sigh of relief, although how sustained that would be, is strictly conjectural (after all, the same problems are there, on the other hand, we might feel better about eliminating one important uncertainty). Disclosure I, Peter Labé, certify that (1) the views expressed in this report reflect my personal views on all of the subject companies and securities, and (2) my opinions are not affected by my compensation which is derived solely from brokerage trade commission(s) which may or may not be of securities discussed in ...