FROSTY FUTURES SEPTEMBER 30, 2004

Some of you have been asking why I haven’t been putting out the regular Frosty column for so long. Well the answer in a nutshell is that these markets have me befuddled. Between the Presidential campaigns, terrorism threats, huge deficits, confusing cash flows, etc. I don’t know what to tell you that would be really helpful. Being a writer, conversationalist, extrovert it isn’t always easy to stay silent. But since I am in the Fall of my life, I have learned that psychological characteristics notwithstanding, sometimes it is better to just be silent. There are others, Hightower, Lisanti, Refco crew, et al, who don’t seem to mind putting there opinions out there and I try to relay them to you for your perusal as often as I can, daily in some instances. But you might take into consideration my silence might speak volumes, in itself. "Follow the money" is an adage that rarely will lead you astray. But sometimes I can’t follow the trail because there isn’t one. Other times I just lose it because my vision gets impaired. But whatever the cause, your best interest is always foremost in my heart and mind.

I will tell you what I have been doing with some of my money, however. As you know I have some money tied up in crude oil puts that are not looking so good right now. But my silver call and futures positions are making up for the loss. If you got long when I told you to buy OJ you are looking good. I know, I was late getting in, but the damage to the Florida crop is so bad and will be so long lasting I hold to my target of 1.15-1.20. But the biggest part of my speculative and investment monies are in a few small cap growth stocks. Covad (covd), Bema Gold (bgo), Serius Satellite Radio (siri) and Vitesse Semiconductor (vtss). Covad I like because it is in business with Cisco and is a buyout candidate. Bema Gold is my commodity hedge. Serius Satellite Radio is the leader in the new no-commercial broadcast field, an emerging growth area. And Vitesse Semi is a gamble. Not that they all aren’t. I’m about 3/4 cash, 1/4 invested. So that’s it, as I said, in a nutshell. If you have anything to offer, please let me know.

Best to all,

Bill

CONTACT ME: williamfrost@comcast.net or call 615 331 8567.

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