War in Iraq Triggers Stock Market Worries

The down draft in the financial markets continued in February as geopolitical concerns dragged on in both Iraq and North Korea. Consumer confidence was nowhere to be seen, and gas prices moved up almost on a daily basis. Hawaii stocks fared better, bolstered by a record earnings performance at CB Bancshares and a Tesoro upgrade by a Lehman Brothers analyst. While the Dow Jones Industrial Average and the S&P 500 were down approximately 2 percent in February, the Hawaiian Industrial Average was up by approximately the same amount.

CB Bancshares, the holding company for City Bank, was up almost 10 percent for the month, fueled by record earnings of $3.43 per share for the year 2002. Investors were pleased with the progress that was made by management to improve credit quality and earnings in Hawaii's virtually no-growth environment.

Tesoro Petroleum jumped more than 30 percent in February, after the company reported that it was on track with the debt-reduction program initiated last year. A Lehman Brothers analyst rewarded the company by upgrading his recommendation from "underweight" to "overweight." Additionally, the rapid rise in gas prices, especially in Tesoro's West Coast market, has contributed to investor interest.

Hawaiian Airlines went in the opposite direction, down almost 30 percent for the month, along with its industry peers. Hawaiian was one of 11 passenger air carriers named by Defense Secretary Donald Rumsfeld in his mobilization of the so-called Civil Reserve Air Fleet. This is only the second time the military has made this call on domestic U.S.A. air carriers in case of the need for massive military air transportation.

Resort Quest was also weak in February, driven by the concern for a major drop in tourism if the country ends up going to war against Iraq. Its shares were down approximately 10 percent, even after reporting better than expected earnings in 2002. This included a more than 20 percent rise in Hawaii gross lodging revenues.

Ticker Symbol	Company	Exchange	Price 1/31/03	Price 2/28/03	Change in Period	Percent Change in Period	Earnings Last 12 mos.	Dividends	Yield	High 12 mos.	Low 12 mos.	P/E Ratio
ALEX	Alexander & Baldwin	OTC	25.95	24.82	-1.13	-4.35	1.42	0.90	3.63	29.25	20.50	17.48
BOH	Bank of Hawaii	NYSE	30.46	31.10	0.64	2.10	1.70	0.76	2.44	31.05	22.79	18.29
BRN	Barnwell Industires	ASE	21.20	22.35	1.15	5.42	0.56	0.60	3.0	22.80	19.40	39.91
CBBI	CB Bancshares	OTC	41.21	45.15	3.94	9.56	3.43	0.44	1.0	46.40	30.45	13.16
CEAH	CEATECH USA	OTC	0.22	0.17	-0.05	-22.73	0.00	--	--	0.90	0.15	--
CPF	CPB, Inc.	NYSE	28.15	28.60	0.45	1.60	2.04	0.44	1.60	31.24	13.82	14.02
CYAN	Cyanotech	OTC	0.43	0.51	0.08	18.60	-0.13	--	--	1.25	0.25	-3.92
DOL	Dole Foods	NYSE	32.62	32.80	0.18	0.55	2.76	0.60	1.83	33.99	24.14	11.88
HA	Hawaiian Airlines	ASE	1.99	1.40	-0.59	-29.65	-1.44	--	--	4.60	1.38	-0.97
HE	Hawaiian Electric	NYSE	41.24	39.80	-1.44	-3.49	3.24	2.48	6.23	49.00	34.55	12.28
MRPI	Mera Pharmaceuticals, Inc.	OTC	0.05	0.05	-0.01	-10.00	NA	--	--	0.16	0.03	--
MLP	Maui Land & Pine	ASE	17.60	18.51	0.91	5.17	-0.79	0.00	0.00	22.75	13.75	-23.43
NUT	Mauna Loa Mac	NYSE	3.45	3.30	0.15	-4.35	-0.02	0.20	6.06	3.95	3.13	-165.00
RZT	Resort Quest Intl. Inc.	NYSE	3.87	3.47	-0.40	-10.34	-0.37	--	--	8.12	3.17	-9.38
TSO	Tesoro Petroleum Corp.	OTC	4.10	5.35	1.25	30.49	-1.93	0.00	0.00	14.54	1.24	-2.77
This information is based on sources believed to be reliable, but is not guaranteed by this corporation. Any opinion expressed reflects judgment as of date of submission of materials, and may be subject to change. OTC stocks priced at the bid, listed stocks priced at the last trade.

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