Expected Returns, June 2006 -- Manifest Investing

In\r\nthis issue, we take a closer look a key component of quality and examine what actually happens during bear markets and recessions.

In\r\nthis issue, we take a closer look a key component of quality and examine what actually happens during bear markets and recessions.

Coach has virtually no debt, a financial strength rating of A and a quality rating of 84.7.

This month's fund, American Century Ultra (TWCUX), is the first previously featured fund to make a return visit.

Oberweis Micro-Cap continues atop the list this month.

The highest rated companies are Microsoft, Coach, Walgreen and Bed Bath & Beyond.

April and May have been very unkind to the likes of portfolio holdings Home Depot, Bed Bath & Beyond, Wrigley, Microsoft and UnitedHealth.

Quality Legend:
Blue	Excellent with quality greater than 80.
Green	Good with quality between 60 and 80.
Neutral	Average or below average with quality between 20 and 60.
Red	Poor with quality less than 20.
Companies with less than 10 years of history are penalized by 5 points per year.
PAR Legend:
Green	PAR is within the target range of MIPAR +5-10%, currently 5.1%-10.1%
Yellow	PAR is above the target range of MIPAR +10%, currently 10.1%
PAR	Projected Annual Return
MIPAR	The Manifest Investing Median PAR of all stocks in the database.
Company Name Legend:
*	Not covered by Value Line Standard Edition.
b	Uses price-to-book value for valuation purposes.
P/CF	Uses price-to-cash flow for valuation.