Monday, November 10th, 2003                                                         Volume 3, Issue #23

Published every other weekend, the StreetAuthority Investor Update is your all-inclusive guide to the stock market, the analysts who follow it, and the investing personalities whose ideas and insights have helped turn StreetAuthority into one of the nation's leading financial publishing firms.  Although this newsletter is comprehensive and valuable in its own right, our premium, fee-paid services -- the StreetAuthority Market Advisor, the StreetAuthority Swing Trader, and The ETF Authority -- include a wealth of additional information such as:

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1.  MARKET RECAP

2.  STREETAUTHORITY MARKET COMMENTARY

I've heard of "buy on the rumor, sell on the news" before, but the market's dismal reaction to the non-farm payroll and unemployment report last week was nothing short of astounding. The data were very strong, but clearly a whole lot of traders and analysts were looking for an enormously positive number. Still, considering the fact that the actual figure doubled the consensus expectations for a gain of 55,000 to 65,000 jobs, plus that September figures were substantially revised higher, plus the fact that we have now seen three consecutive months of job gains, it is difficult to understand the market sell-off on Friday.

However, I still believe the market will break out higher before we ultimately see the longer-term correction I've been warning about for several weeks now. So the trend, though on life support, is still higher. Chasing the market at today's rich valuation levels would be a bit risky, but outside of well-chosen shorts in weak sectors, outright short sales are definitely not a good idea quite yet.

LAST WEEK'S ECONOMIC DATA
I am not going to spend much space here on the numbers. They were strong -- mostly stronger than expected. Payrolls were huge. If there is any concern, it is that hours worked really did not move higher, nor did earnings. This may mean that recent employment gains have mostly been in temporary and low-paying jobs. Also, manufacturing jobs are still falling. However, the numbers overall say that if the economy remains in good shape, then there will be more jobs out there. Economists are already starting to issue predictions for another stellar payrolls number next month.

The Institute for Supply Management (ISM) services survey was also very strong and unemployment claims tumbled. The stock market's lack of excitement at these data, which could imply a powerful and multi-year economic run, is disconcerting.

NEXT WEEK'S DATA
There's nothing terribly important until late next week. We do get the weekly jobless claims report on Thursday, and it will be important to see if the sharp drop in claims reported last week continues. If it does, then we could see a big rally in stocks and a large fall in the bond market.

Friday begets a slew of numbers, including retail sales, producer prices, consumer sentiment, capacity utilization and industrial production. All are expected to be bullish, with inflation still in check. However, the current forecasts are not exactly for blowout numbers in retail sales, as recent chain store sales data has been mixed. A warm streak in October may hold back industrial production, as the utility part of the equation may be weak. However, excluding utilities, the industrial production data should be strong and will likely show continued economic growth.

Good investing in the week ahead!
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Important Note:  The above article was an excerpt from our premium ETF (exchange-traded fund) newsletter -- The ETF Authority. In that newsletter, which is written by technical trading expert Steven Poser and is available only to fee-paid subscribers, we included additional guidance on exactly where we think the markets are headed in the coming weeks and months, as well as several individual short-term ETF trades that are poised to capitalize on the market's future direction. To view the rest of that issue, you'll need to sign up for a completely FREE three-week trial to this publication. To learn more, please click here:  http://www.StreetAuthority.com/subscribe.asp#etf

3.  HIGH-QUALITY STOCKS TO WATCH IN THE COMING WEEKS

Below you will find an in-depth analysis of two quality stocks that Paul Tracy, editor of our premium investing service -- the StreetAuthority Market Advisor -- is now considering for addition to his various recommended portfolios. Those sample portfolios, which are available exclusively to paid subscribers of Mr. Tracy's premium newsletter, have handily outperformed the major indices over the course of the last several years, in some cases delivering returns in excess of +100%. As such, if you're looking to put your money to work in the markets, then the following stocks are probably worth a closer look...

MEDIMMUNE (MEDI)
The seasonal conundrum: getting the flu or getting a shot. Millions of Americans wince at the sight of a needle. MedImmune thinks it has the solution. Those hoping to ward off the winter flu can now choose between a $15 flu shot and MedImmune's $40 FluMist -- a nasal-spray version of the flu vaccine that involves two puffs of spray up the nose. The company acquired FluMist in January 2002 when it bought Aviron, the developer of FluMist, for $1.5 billion in stock. In June 2003, the FDA approved the flu treatment for use starting this fall.

The flu is among the most serious public health problems in the country. Every winter in the U.S., the flu season (November to March) results in about 50 million Americans getting sick, 100,000 hospitalizations and more than 36,000 deaths. The Center for Disease Control recommends flu shots for the most vulnerable of our population, including the elderly, those with chronic illnesses and those who are at high risk of contracting the flu, such as healthcare workers. The current needle-delivered vaccine has been approved for almost everyone above the age of six. Meanwhile, FluMist has been approved for use by anyone between the ages of 5 and 49, about half of those who get the flu shot annually. The key for MedImmune is to get approval for use by the elderly -- the group most vulnerable to the flu. That approval could take a couple more years.

MedImmune's Drug Portfolio
In 1998, MedImmune received approval for Synagis, a drug that prevents respiratory syncytial virus (RSV), a disease that mainly affects children and infants. Premature infants and children with chronic lung disease are at higher risk of acquiring RSV, including pneumonia and bronchiolitis. The drug quickly became one of the best-selling pediatric prescription drugs on the market, and is quickly climbing to blockbuster status with worldwide sales of $668 million in 2002. Some analysts estimate that annual Synagis sales could hit $1.5 billion by the end of the decade.

Another important drug in MedImmune's portfolio is Ethyol, a treatment used to reduce the side effects of certain chemotherapy and radiation therapy used to treat cancer. Initially, the drug was used to reduce the cumulative renal toxicity associated with repeated use of the drug cisplatin (which treats ovarian cancer). In 1996, the Food and Drug Administration (FDA) approved a new drug application (NDA) for Ethyol for the treatment of patients with non-small cell lung cancer. In 1999, MedImmune received approval for the use of Ethyol to reduce the moderate-to-severe xerostomia (acute and chronic dry mouth) in patients who have undergone treatment for head and neck cancer.

Rounding out MedImmune's important drug lineup is CytoGam, an intravenous drug used to prevent cytomegalovirus (CMV), a disease brought about by kidney, lung, liver, pancreas and heart transplants and one that is responsible for high mortality rates in transplant recipients. CMV may cause severe pneumonia, bacterial and fungal infections as well as organ rejections and organ failure.

MedImmune's Pipeline
Recently, MedImmune announced that it has submitted an investigational new drug application with the FDA for Numax, a treatment for serious respiratory syncytial virus (RSV), a high-risk disease in infants. MedImmune believes that preclinical studies show Numax may be 20 to 100 times more potent against RSV than the company's existing treatment, Synagis.

MedImmune's Vitaxin, a treatment for cancer and Rheumatoid arthritis (RA), is undergoing clinical trials to develop an effective and safe treatment for patients with skin cancer (the tenth most common cancer in the U.S., and one of the fastest growing forms) and joint and bone damage from RA.

MedImmune also has several other drugs in clinical trials, including: Siplimuzab for psoriasis, HPV vaccine for cervical cancer, Epstein Barr vaccine for Epstein Barr, and CMV vaccine for cytomegalovirus.

In 2002, MedImmune's earnings slipped from $0.68 to $0.42 a share. This year, analysts expect earnings to climb sharply to $0.91 a share, a gain of +116%. If current projections prove to be correct, then the company will follow this up with earnings of $1.18 (+30%) and $1.44 (+22%) in 2004 and 2005, respectively. Analysts expect MedImmune to deliver annual earnings growth of +22% over the next five years -- a good deal better than the overall market's growth rate of +11.4%.

Revenue has been one of the drivers of MedImmune's share price. In 1998, MedImmune's revenue came in at just $200.7 million. Since then, revenue has shot sharply higher each year. Last year MedImmune's revenue hit $786 million, a +25% jump from the year before. Analysts expect revenue to grow +32% this year.

MedImmune is currently trading at less than 25X next year's estimated earnings of $1.18 per share, an attractive valuation given the company's long-term expected growth rate of +22%. When looked at on a PEG basis (calculated by taking a company's PE ratio and dividing that figure by its expected growth rate), the stock seems reasonably valued with a PEG of around 1.0.

MedImmune's shares recently took a big hit after Wal-Mart (WMT) said it would not carry the company's nasal flu vaccine, FluMist, in its pharmacy because it is not clear if is legal for pharmacists in all states to administer the vaccine. Wal-Mart said it would continue to evaluate the program for the future. On the positive side of things, a number of other retailers, including Safeway (SWY) and Albertson's (ABS), have so far remained on board to sell the vaccine. Walgreen's (WAG) and CVS Corp. (CVS) are still considering whether to offer FluMist.

Risks
One of the issues raised prior to the drug's approval is that FluMist could be inadvertently transmitted through the air to people who should not be exposed to the vaccine. Another concern is that the live virus could combine with other viruses to create new viral strains. FluMist is also more expensive than conventional vaccines to prevent the flu, but MedImmune has the marketing muscle of pharmaceutical giant Wyeth (WYE) on its side to tout the pain-free benefits of FluMist. And, of course, there's no assurance that any of MedImmune's experimental new drugs will pass muster with the FDA or will achieve marketing success in the future.

Here's a look at some of the company's key statistics...

MedImmune (MEDI)
Market Capitalization:  $6.4 billion
Shares Outstanding:  249.8 million
Average Daily Volume:  6.5 million
2002 Revenue:  $786 million
2000 EPS:  $0.67
2001 EPS:  $0.68
2002 EPS:  $0.42
2003 EPS:  $0.91 (Estimate)
2004 EPS:  $1.18 (Estimate)
2005 EPS:  $1.44 (Estimate)
Institutions own 82% of the outstanding shares
52-week range:  $23.29 to $42.09
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HOSPITALITY PROPERTIES TRUST (HPT)
Operating as a real estate investment trust (REIT), Hospitality Properties buys, owns and leases hotels throughout the United States. The lodging REIT has about $3 billion invested in 274 hotels. This diversified portfolio includes a total of over 37,000 rooms located in 38 states.

All of the hotels that Hospitality buys are operated by well-known brands, including Marriott, Wyndham and AmeriSuites. These major operating companies lease the hotels from Hospitality under long-term, "triple net" leases. What this means is that tenants are required to pay base rent regardless of industry fluctuations, plus pay for such expenses as taxes, insurance and utilities. Most of the firm's triple net leases require the lessee to pay a base rent plus 5% to 10% of total hotel sales. Also, the lessee must stash away 5% of gross revenues each year as a reserve for renovations and refurbishments. Hospitality also requires a large security deposit and additional security features from the lessee, such as minimum net worth requirements and limited parent guarantees.

Hospitality's strategy is to acquire and lease well-located hotels in the moderately priced brand-name segment of the lodging industry. The company focuses on relatively new properties or those that have undertaken or committed to undertake extensive renovations. For example, in 2002, Hospitality bought 21 properties from Candlewood Hotel, which Hospitality then leased back to Candlewood. That purchase followed a purchase of eight hotels in 2001.

Recently, Hospitality bought 16 Staybridge Suites hotels from InterContinental Hotels Group for $185 million. These hotels are upscale properties spread across 11 states. In return, Hospitality received a $16.9 million security deposit, which is equal to one year's rent, and as well as 5% of gross hotel revenues, which are to be escrowed for capital expenditures.

Hospitality's hotel brands include:
Courtyard by Marriott
Residence Inn by Marriott
Wyndham
AmeriSuites
Candlewood Suites
Homestead Studio Suites
TownePlace Suites by Marriott
SpringHill Suites by Marriott

Hospitality Properties has also invested in three Marriott Hotels and Resorts: The Kauai Marriott Resort and Beach Club (a 356-room hotel in Hawaii), The Marriott St. Louis Airport (601-room hotel) and The Marriott Nashville Airport (399-room hotel).

With respect to Hospitality's stock, the firm is currently paying out a solid +7.6% dividend yield to investors -- a good bit higher than the REIT industry average. And based on Hospitality's historical dividend record, we believe the firm will continue to increase its dividend payout in the years ahead. After all, Hospitality is one of the few remaining hotel REITs that has managed to boost its dividend steadily in recent years. Since 1995 -- its first year as a publicly-traded REIT -- Hospitality has increased its dividend each and every year. And with industry conditions expected to improve in the coming 3-5 year period, Hospitality's dividend looks to be in good shape.

Although REIT shareholders won't reap the benefits of the government's new dividend tax cut, a significant portion of dividends paid by most REITs are not taxed as ordinary income for individuals anyway. Only 74% of Hospitality's dividend was taxable as ordinary income in 2002, and the remainder was tax-free at both the corporate and individual levels.

The primary risks to Hospitality's shares include a prolonged slump in business travel or a large number of defaults by its major tenants. Hospitality's properties are also heavily concentrated in one major tenant -- Marriott International (MAR) -- which accounts for a large percentage of Hospitality's revenue.

Here's a look at some of the company's key statistics...

Hospitality Properties Trust (HPT)
Market Capitalization:  $2.4 billion
Shares Outstanding:  62.6 million
30-day average volume:  352,000
2002 Revenue:  $348.7 million
2000 FFO:  $3.87
2001 FFO:  $3.69
2002 FFO:  $3.96
2003 FFO:  $4.10 (Estimate)
2004 FFO:  $4.25 (Estimate)
Yield:  7.6%
Institutions own 36% of the outstanding shares
52-week range:  $26.50 to $38.17

*FFO, or funds from operations, is a standard measure of profitability used by most real estate companies.
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We sincerely hope you've enjoyed today's analysis of several high-quality stocks that Paul Tracy -- editor of our premium StreetAuthority Market Advisor newsletter -- is now considering for addition to his various recommended portfolios. To receive email news alerts when Mr. Tracy ultimately decides to add these picks to his holdings, as well as his premium weekly investing newsletter and access to all five of his recommended equity portfolios on our web site, please click on the following link:  http://www.StreetAuthority.com/subscribe.asp#ma

If you're not already a subscriber to one of our premium investing newsletters, all of which include a wealth of additional information and specific investing guidance, then please click on the link below to learn more:

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4.  ANALYST UPGRADES/DOWNGRADES

Below is a list of some of the most important analyst upgrades and downgrades from the previous week (abbreviated where necessary)...

5.  EARNINGS CALENDAR

Below is a list of important quarterly earnings releases that are getting set to take place in the coming weeks:

6.  ECONOMIC CALENDAR

Below is a list of important economic reports to be released this week and next week:

7.  STREETAUTHORITY SCORECARD

EDITOR STEVEN POSER DEVELOPS NEW PROPRIETARY TRADING MODEL
Although he just started writing for us in November 2002, technical trading expert Steven Poser has already shown why he's one of the top analysts in the country and is highly sought after for speaking engagements and public appearances.

In recent months, Steven has worked hard to develop a new computerized ETF (exchange-traded fund) selection model that he uses to uncover winning ETF trading ideas. The goal of this new system is to identify a select group of ETFs that will outperform the broader market over the long haul. Along those lines, he has developed a computerized model that provides him with buy signals on ONLY the best-performing ETFs in the market while ignoring the laggards.

After back-testing this unique computerized system with data starting in 1999, we're pleased to announce that the model has performed admirably over the past several years, outperforming the broader market every step of the way.

And because it is based on a variety of important trading rules that have stood the test of time, this new proprietary model, which we've dubbed the "ETF Profit Selection System," should continue to perform as well in the future as it has during our historical testing period.

A $100,000 portfolio placed in this model in the middle of September 1999 would be worth nearly $140,000 today. By contrast, the same funds placed in the S&P 500 would be worth less than $95,000! And if you had made the mistake of putting all of your eggs into one basket -- the Nasdaq Composite -- then your portfolio would now be worth less than $70,000!

To learn more about Steven's Poser's ETF investing model, please click here to sign up for his premium weekly newsletter -- The ETF Authority.

MORE ABOUT EDITOR STEVEN POSER
Prior to joining our staff, Steven was employed for more than a decade at Deutsche Bank in New York City, where his main function was as a global markets technical strategist. After holding a series of increasingly important roles, Steven spent his last four years at Deutsche Bank working as the firm's Chief U.S. Technical Analyst. A regular guest on CNBC, CNNfn and Reuters Financial Television, Steven is frequently sought after for speaking engagements and trading seminars.

Important Note:  If you have not yet subscribed to Steven's premium exchange-traded funds newsletter -- The ETF Authority -- then you're missing out on his new investing system and many other profitable ETF trading ideas each week. To gain access to all of Steven Poser's current and future recommendations, you'll need to sign up for a subscription today.

To view our subscription options for Steven's newsletter -- The ETF Authority -- please click here.  Alternatively, if you'd like to try the publication out first, then please click on the following link to receive a completely FREE, no risk, no hassle three-week trial subscription to this newsletter:
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8.  VALUABLE RESOURCES -- EDUCATIONAL ARCHIVES FROM STREETAUTHORITY.COM

This week, we're pleased to introduce a new feature on our web site at StreetAuthority.com -- educational archives. As you may know, most of our writers here at StreetAuthority.com include educational materials within each of their respective newsletters. As an added benefit for StreetAuthority members, we have now posted a full archive of this content on our web site and have made it freely available to everyone. These lessons, glossaries and other educational materials should help you become a better investor/trader, so we'd encourage you to visit and bookmark the following pages:

To view a general listing of all of our various educational archives, click here:
http://www.StreetAuthority.com/education.asp

Alternatively, if you'd like to review each of our various archives separately, you can do so at the following links. We've organized these pages based upon the newsletter each lesson appeared in. This should make it easier for you to review materials from the particular StreetAuthority.com editor you're most interested in learning from...

Glossary of Trading Terms -- If you ever come across an unfamiliar technical analysis or trading-related term in your research, then chances are you'll find a complete description of it here in Dr. Melvin Pasternak's glossary of trading terms.

Technical Analysis and Trading Lessons -- In the following archive of technical analysis lessons, Dr. Melvin Pasternak brings you complete, thorough descriptions of nearly every major technical analysis topic -- ranging from the most basic to the most complex. Included here are introductory materials for beginning traders, as well as lessons on such important technical topics as candlesticks, bollinger bands, moving averages, gaps, MACD, trendlines, price/volume analysis and much, much more.

Descriptions of All Major Exchange-Traded Funds (ETFs) -- This is an archive of all "ETF Spotlight" sections from our weekly exchange-traded funds (ETF) newsletter --  The ETF Authority.  In presenting this information, our goal is to provide you with complete, thorough descriptions of every major exchange-traded fund on the market today, including such heavily-traded funds as the Nasdaq-100 Trust (QQQ), S&P 500 SPDR (SPY), Dow Diamonds (DIA), S&P 400 MidCap (MDY) and the Nasdaq Biotech iShares (IBB), among others.

Technical Analysis and Trading Lessons -- In this educational archive, editor Steven Poser brings you an in-depth look at a variety of important technical analysis indicators and a host of other trading topics. Included here are lessons on such important technical topics as ADX, continuation patterns, reversal patterns, gaps, intermarket analysis, key reversal days, momentum divergence, relative strength, trendlines, retracements, sentiment and much, much more.

We sincerely hope that you find all of the above sites useful in the course of your financial research.

Good investing in the coming weeks!



Paul Tracy
Editor in Chief
StreetAuthority, LLC
Washington, D.C.

P.S. -- If you're not already a subscriber to one of our premium investing newsletters, all of which include a wealth of additional information and specific investing guidance, then please click on the link below to learn more:

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StreetAuthority, LLC is not a registered investment advisor or broker/dealer. Readers are advised that the material contained herein should be used solely for informational purposes. StreetAuthority does not purport to tell or suggest which investment securities members or readers should buy or sell for themselves. Site users should always conduct their own research and due diligence and obtain professional advice before making any investment decision. StreetAuthority will not be liable for any loss or damage caused by a reader's reliance on information obtained in this newsletter or on our web site. Our readers are solely responsible for their own investment decisions.

The information contained herein does not constitute a representation by the publisher or a solicitation for the purchase or sale of securities. Our opinions and analyses are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. All information contained in this report should be independently verified with the companies mentioned. The editor and publisher are not responsible for errors or omissions.

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