Benj Gallander Stewart Enterprises Inc STEI-Q HOLD Sep 14, 2006

(A Top Pick Aug 9/11. Up 32.69%.) 2nd largest public funeral and cemetery business in the US. Likes the long-term attributes of this one.

Death care industry. The oldest company he has by about 3 years. Pays a dividend. Recent results were excellent and they keep raising the dividend yearly. Debt is high but normal in this industry. Would not buy it now although there is still a lot of upside.

Funerals and cemeteries. Has done a really good job of cutting costs in the last year. Increased their dividend and have been buying back stocks. Near-term outlook is very good. Logical acquisition candidate.

Funerals should be a very stable business. Tons of recurring revenue and good demographics. However, looking at the industry, this has not been the case. It’s a unionized business, dominated by mom and pop stores. Balance sheet on this one is a little rough. Doesn’t have the stability that he wants.