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TWST: Tim, bring us up-to-date on the performance of the specialty chemical stocks. What happened to the group in the second half of 1999, and how have they done in 2000 year to date?

Mr.Gerdeman:Specialty chemical stocks continued to underperform broader-based indices in the second half of 1999, with the exception of the few days in 1999 when the group witnessed a cyclical investor rotation into select specialty chemical stocks. The aforementioned late-year rally carried over into the first few trading sessions of 2000, and then the group fell back out of favor early into the first quarter of 2000. In late March and early April 2000, we witnessed another powerful rally, benefiting many of the larger (market cap) specialty chemical stocks.

TWST: Are there others that you would like to highlight that investors should consider as trading stocks?

Mr. Gerdeman: Well, as I previously stated, they are all "trading stocks." I would point out, however, that the one major exception to my previously outlined trading rule is Cambrex (NYSE:CBM). Cambrex has actually beaten the S&P 500 over the past several years on a compounded average annual return to shareholders basis, which is fascinating. And I think that Cambrex still has meaningful appreciation potential from here, particularly if the company is acquired at a life sciences multiple of 14+ times EBITDA, a high probability event, in our opinion.

TWST: Give us a brief profile of Cambrex.

Mr. Gerdeman:Cambrex is the leading US-headquartered pure-play manufacturer of active pharmaceutical ingredients, a strength that plays directly into the global outsourcing trend by big pharmaceutical companies, as they move more toward becoming virtual companies that focus on R&D, championing new products through the FDA approval process, and marketing the approved drugs, but outsourcing the majority of the actual drug production. Additionally, Cambrex is increasingly an important player in such life sciences sectors as adult stem cell research and providing cell cultures to the scientific community. We believe that the financial community will increasingly place a life sciences valuation on Cambrex, fueling additional share price appreciation, not to mention the probability of upside earnings surprises from Cambrex later this year serving as a catalyst. And as it does, we think that it will be ultimately valued in the range of a 14 to 15 firm value/EBITDA multiple, significantly above its current valuation. Cambrex also happens to be one of the leading companies on my recommended Top 10 Consolidation Candidates list for 2000, due mainly to the fact that so many larger chemical companies increasingly want to get involved in the active pharmaceutical ingredient sector. The acquisition of Cambrex could provide the fastest path to gaining critical mass, intellectual knowledge and, perhaps most importantly, credibility with the big pharmaceutical producers.

TWST: So you're looking at Cambrex as a growth stock, I take it.

Mr. Gerdeman: Yes, both as a growth stock and a value stock at current levels.