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TWST: Mark, how do you view the performance of the hardline retailers in 1999? Are there any companies in your universe that stood out as stellar performers in the second half of 1999? How does the performance look for the first three months of 2000?

Mr. Mandel: I think performance disparity is an accurate way to view this diverse group. If you look at the performance of the stocks in 2000 or in either of the prior two years, one would not uncover a high degree of correlation between the various subgroups, or even within each sector.

TWST: Mark, what are your top picks?

Mr. Mandel: My top pick has been and remains Michaels Stores (Nasdaq:MIKE). I believe that this company, more than any company that I follow and have followed, is positioned to truly dominate its business. In terms of size, they are larger than their collective competition. But that growth didn't come without some pain, as prior management achieved its goal of creating a national company but failed to build the infrastructure to support such an organization. Enter Michael Rouleau in 1996 with a pedigree retail background and the vision (and mandate) to give the company the sophisticated tools (i.e., information systems, processes, distribution, etc.) necessary to fix a very broken organization. I think that the combination of size and sophistication will prove to be extremely powerful and will continue to push the company's productivity and profitability substantially higher.