In this Issue:
• Bucking the Odds?: We believe strong corporate profits and continued low long-term interest rates will allow stocks to end 2005 slightly higher.
• In the Limelight
• STARS Status: Changes in S&P analysts' STARS rankings for June 6 through June 10.
• Views of a Veteran Drug Industry Observer
• Five Star Stocks in the News
• Higher-Yielding Consumer Staples Stocks: Standard & Poor's recently raised its recommendation on the consumer staples sector to overweight. Here are some issues we think have strong total return potential.
• "Five by Five" Stocks: The stocks in this table carry both a five-STARS ranking for expected outperformance over the next 12 months and a fair value ranking of five, indicating that we think they are undervalued on a quantitative basis as well.
• Master List Stocks Update: Our three supervised Master List groups of stocks, recommended as core holdings for long-term investors, are regularly featured on these two pages. Group 1, highlighted this week, consists of mainly large-cap stocks.
• A Slight Adjustment in Foreign Exposure: Standard & Poor's recently increased its recommended allocation to the MSCI EAFE international exchange-traded fund. Some of the Companies Featured:
Citigroup
Colgate-Palmolive Co.
Comverse Technology
Endo Pharmaceuticals
Franklin Resources
Loews Corp.-Carolina Group
Maxim Integrated Products
Nestlé Sa
Procter & Gamble Co.
Prologis
Unilever Nv
Unitedhealth Group
Walgreen Co.
Weatherford International | 
