Condor Capital - Investment Advisor

Welcome to the February 2009 issue of Condor Monthly!

This issue is now available online along with an archive of past issues. To access past Condor Monthly and Condor Newsletters, just click on the link below or copy & paste the link into your favorite browser.

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Please continue below to view the "From the Portfolio Manager" and "Financial Planning Corner" segments in this month's issue.

From the Portfolio Manager

International Business Machines Corp.

(IBM)

Large Cap Growth Strategy Update

Condor Capital has recently initiated a position in global technology giant IBM, a leading provider of computer products and information technology services.

Stimulus Legislation Beneficiary

In the American Recovery and Reinvestment Act of 2009 that was recently signed into law, President Obama set out ambitious goals to create new jobs while seeking to fix various types of infrastructure and make communication in different industries more efficient. In the weeks leading to this historic measure, IBM's Chief Executive Officer, Samuel Palmisano, was a vocal supporter of the stimulus bill and even briefed the President and key aides about the upside to smart spending in certain sectors. IBM will seek to become involved in - either directly or indirectly - the implementation of "smarter" technologies to make energy use more efficient, expanding broadband access in rural areas, and overhauling how healthcare records are kept and utilized by digitizing them.

Higher-End Services and Wide Geographic Reach

Since the end of the last recession, IBM has sought to transform itself by moving away from producing commoditized goods that have lower margins and into offering higher-end services across the world. To illustrate, IBM sold its personal computer business to Lenovo in December 2004 due to recurring losses. Instead, it has successfully established relationships with foreign governments and corporations to offer a wide range of solutions and services that include optimization, systems integration, and outsourcing. Additionally, with well over 50% of its total revenue coming from international markets, the direct impact of a sharp slowdown in the United States is mitigated.

Since adding to our IBM position recently, the affirmation of its earnings forecast for all of 2009 amid a view that service-oriented technology companies will be vital for firms looking to cut costs have buoyed its stock, even as the broader market has remained under considerable pressure. Overall, the possibility of acquiring significant business from the American Recovery and Reinvestment Act of 2009, its focus on higher-growth areas such as technology services, and considerable geographic footprint have IBM's prospects looking upbeat for the years ahead.

Financial Planning Corner

Ten Ways to Avoid Identity Theft

As if the world's recent economic turmoil was not enough to make us nervous about our finances, every day it seems new scam artists are being revealed in the news. In a time where we can do everything on a computer and through the internet, it is becoming easier and easier for thieves to find ways to gain access to our personal information. To help combat identity theft, the IRS recently put out IRS TAX TIP 2009-11, which lists ten ways to help protect from identity theft. This list is below and can also be found on the IRS website, http://www.irs.gov.

1. If you receive a letter or notice from the IRS which leads you to believe someone may have fraudulently used your Social Security Number, respond immediately to the name and address or phone number printed on the IRS notice.

2. If you receive a letter from the IRS that indicates more than one tax return was filed for you, this may be a sign that your SSN was used fraudulently.

3. Another sign that you may be the target of identity theft is an IRS letter indicating you received wages from an employer unknown to you.

4. The IRS has a department which deals specifically with identity theft issues. The IRS Identity Protection Specialized Unit is available if you have been in contact with the IRS about an identity theft issue and have not achieved a resolution.

5. You can contact the IRS Identity Protection Specialized Unit by calling the Identity Theft Hotline at 800-908-4490 Monday through Friday from 8:00 am to 8:00 pm local time (Alaska and Hawaii follow Pacific Standard Time).

6. The IRS Identity Protection Specialized Unit is also available if you believe your identity may be at risk of being stolen due to a lost or stolen purse or wallet or due to questionable activity on your credit card or your credit report.

7. The IRS never initiates communication with taxpayers about their tax account through emails. If you receive an e-mail or find a Web site you think is pretending to be the IRS, forward the e-mail or Web site URL to the IRS at phishing@irs.gov.

8. The IRS has many more resources available to help inform taxpayers about identity theft on the IRS Web site at IRS.gov. On IRS.gov you can access information on how to report scams and bogus IRS Web sites. You can also visit the IRS Identity Theft Resource Page, which you can find by typing Identity Theft Resource Page in the search box on the IRS.gov home page.

9. The Federal Trade Commission is also available to assist taxpayers with identity theft issues. You can reach them at 877-ID-THEFT (877-438-4338).

10. Visit http://www.onguardonline.gov for protection tips from the federal government and the technology industry.