To: Frederick Langford who wrote (1616 ) 9/16/2002 2:50:58 PM From: Frederick Langford Respond to of 1854 Correction, VectorVest has EASI valued over 80: Thank you for requesting an analysis of Eng SupprtSys from VectorVest. The ticker symbol for Eng SupprtSys is EASI. EASI is traded on the NASDAQ and options are available on this stock. PRICE: EASI closed on 09/13/2002 at $58.14 per share. VALUE: EASI has a Value of $80.23 per share. Value is the foundation of the VectorVest system. It is a measure of what a stock is currently worth. Value is based upon earnings, earnings growth rate, dividend payments, dividend growth rate, and financial performance. Current interest and inflation rates also play an important role in the computation of Value. When interest and/or inflation rates decrease, Value goes up. When interest rates and inflation increase, Value goes down. Sooner or later a stock's Price and Value always converge. RV (Relative Value): EASI has an RV of 1.46. On a scale of 0.00 to 2.00, an RV of 1.46 is excellent. RV reflects the long-term price appreciation potential of the stock compared to an alternative investment in AAA Corporate Bonds. Stocks with RV ratings above 1.00 have attractive upside potential. A stock will have an RV greater than 1.00 when its Value is greater than Price, and its Relative Safety (see below) and forecasted earnings growth rate are above average. In some cases, however, a stock's RV will be above 1.00 even though its Value is well below Price. This happens when a stock has an exemplary record of financial performance and an above average earnings growth rate. In this case, the stock is currently selling at a premium, and the investor is banking on future earnings growth to drive the stock's price higher. This information is very useful not only in knowing whether or not a stock has favorable price appreciation potential, but it also solves the riddle of whether to buy high growth, high P/E, or low growth, low P/E stocks. We believe that RV ratings above 1.00 are required to consistently achieve above average capital gains in the stock market. RS (Relative Safety): EASI has an RS rating of 1.47. On a scale of 0.00 to 2.00, an RS of 1.47 is excellent. VectorVest looks at safety from the viewpoint of an equity investor (one who is buying stock of a company) rather than that of a purchaser of debt (one who is lending money to the company). From this perspective, consistency of financial and operating performance, stock price appreciation history, and price volatility are the key factors used in the evaluation of Relative Safety (RS). Debt to equity ratio, capitalization, sales volume, business longevity and other factors are also considered, but to a lesser degree. VectorVest favors steady, predictable performers. All stocks are rated on a scale of 0.00 to 2.00. A stock with an RS greater than 1.00 is safer and more predictable than the average of all stocks. A stock with an RS less than 1.00 is less predictable and riskier than the average stock. RT (Relative Timing): EASI has an RT rating of 1.58. On a scale of 0.00 to 2.00, an RT of 1.58 is excellent. RT is a fast, responsive, short-term price trend indicator. It analyzes the direction, magnitude, and dynamics of a stock's price behavior over the last 13 weeks; then reflects and projects the short-term price performance of the stock. Once a stock's Price has established a strong trend, it is expected to continue that trend for the short-term. If the trend dissipates, RT will gravitate towards 1.00. Should the price change dramatically, RT will notice the crucial turning point. When warranted, it will explode from a Price low and dive from a Price high. All stocks are rated on a scale of 0.00 to 2.00. If RT is above 1.00,the stock's Price is in an uptrend. Below 1.00, the stock's Price is in a downtrend. VST-Vector (VST): EASI has a VST-Vector rating of 1.51. On a scale of 0.00 to 2.00, an VST of 1.51 is excellent. VST-Vector solves the dilemma of balancing Value, Safety and Timing. Stocks with high RV values often have low RS values, or stocks with low RV and RS values have high RT's... Fred