Welcome to the February issue of Condor Monthly!

In this issue, we announce an upgrade to Condor Net and summarize my interview on Bloomberg Radio. In "From the Portfolio Manager," we discuss Wyndham Worldwide Corporation, a recent addition to clients’ portfolios. In the "Financial Planning Corner" section, we explain the benefits of planning for long term care and where you can access more information.

What's New at Condor Capital

In a continuing effort to enhance the client portfolio reporting section of Condor’s website, we are pleased to announce that a more detailed Performance report has been added, which breaks out performance by asset class (i.e. equities, fixed income, & cash).

During a February 21st interview with Bloomberg Radio, I commented on some compelling investment opportunities in the health care and technology sectors. Within the health care sector, Condor is avoiding traditional pharmaceutical companies that are plagued by patent expirations, generic challenges, and a dearth of blockbuster drugs in their pipelines. Instead, we choose to focus on those segments of healthcare that are experiencing above average growth such as generics, medical devices, and biotech. Overall, technology stocks may outperform this year as this sector is expected to experience the highest earnings growth versus the market. I highlighted Dell as a stock that could outperform because it has been so beaten-up and expectations are low. The fact that Michael Dell has reassumed the CEO role should accelerate Dell’s turnaround efforts. Meanwhile, we expect Microsoft’s Windows Vista operating system launch will spawn a PC upgrade cycle which would lift all boats in the sector over the next 12-18 months.


From the Portfolio Manager

Wyndham Worldwide Corporation (WYN)

Wyndham Worldwide, spun off from parent Cendant Corp. in mid-2006, has been a recent addition to Condor Capital Management clients' portfolios.

Please note that this graph is for illustrative purposes only and does not represent the duration of Condor Capital’s investment in this security. As a result, your investment return in this security may differ from the return depicted in this chart. Additionally, whether this security was even purchased in your account is dependent on the investment strategy being used in your account and other factors.

Unique Business Model

Unlike some of the major hotel companies such as Marriott International and Hilton Hotels that concentrate on business travelers, Wyndham is primarily a franchiser of economic hotels. Additionally, the company maintains a robust timeshare business.

Lodging

Currently, Wyndham has over 6,500 franchised hotels that contain approximately 540,000 rooms across the globe. In addition to its upscale Wyndham hotel, the company franchises such hotels as Days Inn, Super 8, and Howard Johnson. With this franchising model, the company receives a steady stream of revenue even if a large portion of its rooms are vacant. This is the fastest-growing segment of the company and is expected to do well given a renewed focus on its brands under new management.

Timeshare

As of 2006, Wyndham owned more than 140 resorts throughout North America and the South Pacific with ownership totaling over 760,000 families. Between 1990 and 2006, timeshare sales worldwide grew more than 10% a year consistently and did not skip a beat during the most recent economic downturn. For baby boomers who have retired and are seeking another way to travel, owning a timeshare is an excellent alternative to the conventional way of booking a vacation each time with a travel agent. In addition to owning many timeshare resorts, the company also owns RCI, the world's biggest timeshare exchange firm with almost 4,000 affiliated resorts.

Global Expansion

While its international focus has been on Europe, Wyndham plans to grow its capacity in China by 30% over the next two years while also focusing on India, Macau, and Vietnam. 2006 marked the second consecutive year that the company exceeded its development goals in China, opening 110 Super 8 properties compared to an initial forecast of 100.

As a result of Wyndham Worldwide's robust growth prospects both here and abroad, favorable demographic and travel trends, as well as its attractive valuation, we believe shares of WYN are favorably positioned for the next 3-5 years.


Financial Planning Corner

Long-Term Care Planning

The U.S. Department of Health and Human Services (HHS) recently launched a new website to promote long-term care planning. This website is designed to provide information and urge individuals to take an active role in planning for their future long-term care needs. According to the HHS, nearly 9 million Americans over the age of 65 will require some type of long-term care services this year. Long-term care is typically needed in cases where a disability or a chronic illness leads an individual to need help with basic daily activities and includes care provided at home or in an assisted-living facility.

Unfortunately, long-term care is expensive. The 2006 national average cost for one year of nursing home care is over $62,000 for a semi-private room. One year of at-home care, assuming the average three visits per week, is nearly $16,000. While Medicaid pays for a large share of national long-term care costs, individuals must meet strict financial guidelines to qualify. In most cases, individuals must relinquish control over their assets or assets must be depleted prior to qualifying for Medicaid. Moreover, changes to the law enacted in 2006 require a waiting period of 5 years, called a look-back period, after assets were gifted away before the individual can qualify for Medicaid coverage.

It is prudent for individuals to consider their possible long-term care needs in advance. In addition to public programs, a number of private-payment options are available, including long-term care insurance, that may be appropriate for certain individuals. Long-term care insurance provides a certain dollar amount payment per day for a set period of time and can apply to care provided in an assisted living facility or the individual's own home. However, long-term care insurance can be expensive and other long-term care options may be more appropriate for your situation.

If you would like more information on this subject, please visit www.longtermcare.gov. Please do not hesitate to contact Condor Capital if you would like to discuss long-term care and for help evaluating which planning options may be appropriate for you and your family.