2008 Stock Portfolio Performance Summary and 2009 Outlook

The total realized gain for 2008 came in at 1.69% helped largely by gains from writing covered calls, employer stock sales, and income from dividends. Selling several losing positions just before the end of the year offset most of the gains. This was to help minimize the capital gains tax impact.

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
LDK Solar (LDK)	11/21/2007	30.30	01/08/2008	40.83	34.75	2.64
Fannie Mae (FNM)	02/15/2008	30.70	03/10/2008	19.82	(35.44)	(2.18)
Navteq Inc.(NVT)	03/11/2008	73.32	03/12/2008	72.15	(1.62)	(0.06)
Suntech March 45 Call (STPCI)	10/15/2007	NA	03/22/2008	NA	NA	0.50
LDK Solar March 40 Call (LDKCH)	02/13/2008	NA	03/22/2008	NA	NA	0.44
Taiwan Semi April 12.5 Call (TSMDV)	10/18/2007	NA	04/20/2008	NA	NA	0.1664
Cypress Semi April 27 Call (CYDB)	04/04/2008	NA	04/20/2008	NA	NA	0.2137
Cypress Semi (CY)	04/02/2008	24.89	04/20/2008	26.95	8.26	0.4113
EMC Corporation May 16 (EMCEQ) Call	04/23/2008	NA	05/17/2008	NA	NA	0.1639
EMC Corporation (EMC)	04/08/2008	15.00	05/17/2008	15.97	6.48	0.2915
Suntech June 45 Call (STPFI)	04/01/2008	NA	06/05/2008	NA	NA	0.3538
Taiwan Semi Oct 12.5 Call (TSMJV)	04/21/2008	NA	10/18/2008	NA	NA	0.2061
Plum Creek Timber Nov 50 Call (PCLKJ)	06/03/2008	NA	10/21/2008	NA	NA	0.2028
Suntech Power Dec 50 Call (STPLJ)	06/06/2008	NA	10/21/2008	NA	NA	0.4656
Taiwan Semi Nov 7.5 Call (TSMKU)	10/31/2008	NA	11/22/2008	NA	NA	0.4682
Plum Creek Timber Nov 35 Call (PCLKG)	10/28/2008	NA	11/22/2008	NA	NA	0.3931
Plum Creek Timber Dec 35 Call (PCLLG)	NA	11/24/2008	12/20/2008	NA	NA	0.4659
Plum Creek Timber (PCL)	5/12/2005	35.50	12/20/2008	34.93	(1.6056)	(0.0815)
MCG Capital (MCGC)	Various	10.86	12/23/2008	0.63	(94.22)	(3.90)
Suntech Power (STP)	03/14/2007	36.73	12/23/2008	10.49	(71.44)	(2.50)
Anthracite Capital (AHR)	11/09/2007	7.97	12/23/2008	2.58	(67.63)	(1.28)
Aegon N.V. (AEG)	04/28/2008	15.99	12/23/2008	6.57	(58.92)	(1.35)
Advantage Energy Fund (AAV)	12/29/2006	11.22	12/23/2008	3.82	(65.93)	(0.53)
Employer Stock	Various	NA	Various	NA	82.37	3.25
Total 2008 Stock Transactions - Gain/(Loss)	-	-	-	-	-	(1.39)
Income (Dividends, Interests, etc.)	-	-	-	-	-	3.07
Net Realized 2008 Gain/(Loss)	-	-	-	-	-	1.69

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.

And, below is our updated portfolio - it is about 35% in the red:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of BOY Portfolio Value Plus Deposits
Altria (MO)	Various	16.69	15.06	3.94	(9.74)	0.16
Philip Morris International (PM)	1/4/2005	32.19	43.51	7.66	35.16	0.23
Kraft Foods (KFT)	Various	24.03	26.85	4.68	11.71	0.11
Pfizer (PFE)	Various	24.37	17.71	7.72	(27.32)	0.33
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	19.25	8.39	(23.84)	0.17
Taiwan Semi (TSM)	7/27/2006	8.71	7.97	6.95	(8.36)	0.24
Advantage Energy Fund (AAV)	11/2/2006	11.22	4.21	1.84	(62.49)	0.22
Central Europe & Russia Fund (CEE)	Various	39.23	16.43	5.01	(58.11)	1.85
Patni Computers (PTI)	8/10/2007	20.85	5.89	2.57	(71.77)	0.03
Itron Inc. (ITRI)	11/07/2007	85.01	63.74	5.56	(25.11)	None
Anthracite (AHR)	11/09/2007	7.97	2.23	0.97	(72.02)	0.35
ClickSoftware (CKSW)	11/09/2007	4.61	1.85	1.61	(59.87)	None
Harvest Energy (HTE)	11/28/2007	21.01	8.77	3.06	(58.27)	0.45
iRobot (IRBT)	12/18/2007	18.65	9.03	3.15	(51.17)	None
LDK Solar (LDK)	01/22/2008	30.49	13.12	3.43	(56.97)	None
Aegon N.V. (AEG)	04/28/2008	15.99	6.05	1.58	(62.16)	0.24
LM Ericsson (ERIC) (AEG)	05/05/2008	11.83	7.81	5.45	(33.97)	0.20
TD Ameritrade (AMTD)	05/21/2008	17.68	14.25	4.97	(19.42)	None
Trina Solar (TSL)	06/06/2008 and 07/31/2008	45.61	9.29	2.03	(77.94)	None
Costco (COST)	08/01/2008	62.28	52.50	4.58	(15.70)	0.03
Frontline Limited (FRO)	10/06/2008	36.95	29.61	3.87	(19.85)	0.41
DryShips Incorporated (DRYS)	10/09/2008	11.66	10.66	5.58	(8.57)	0.41
Companhia Siderurgica Nacional (SID)	10/10/2008	11.47	12.81	4.47	16.15	0.02
Cash				1.01
Total Portfolio					(35.49)	5.46

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• The yield column is current as of 11/21/2008.

Looking forward, we will continue to write near-the-money near-term covered calls against some of our defensive positions. That should help the portfolio gain an aggressive tilt, which should help whenever the market turns around.

We expect to fund the portfolio with additional monies in the neighborhood of 20% of the total portfolio value in the coming year. The exact timing will depend on the timing of our sales on ESPP shares – for those positions, we shifted from the “immediate selling strategy” to the “long-term capital gain realization strategy” over the last 18 months. Going forward, the plan is to write near-the-money near-term covered calls against portions of ESPP shares that qualify for long-term capital gains, if sold.