Bulls on Parade

The rally continues through the month of May with the Dow Jones Industrial Average up almost 5 percent. Since mid-March the Dow has risen from approximately 7,500 to 9,000, or up almost 20 percent. The Bulls definitely have the advantage. In Hawaii, the Hawaiian Industrial Average was not quite as strong, registering an almost 3 percent gain in May and up approximately fifteen percent since mid-March. Forty year low interest rates have been fueling the drive with indications that they might even go lower in the near future.

The big winner for the month was Resort Quest (NYSE:RZT), up over 30 percent in just one month. As we approach the summer travel season, RZT reported favorable earnings in the first quarter of 2003. Hawaii lodging revenues were up 6 percent from the same period last year. Additionally, their "Ski Now/Tan Later" promotion generated over $1 million gross lodging revenues in the first quarter alone.

Hawaiian Electric (NYSE:HE) was also in the plus column with more than a 10 percent gain in May. Besides the attractiveness of their dividend yield in this low interest rate environment, the Web-casting of their May 13th analysts' presentation brought investors off the sidelines. Subsequently, Goldman Sachs upped their recommendation on their shares from an "under-perform" to "in-line".

On the downside, Hawaiian Airlines (ASE:HA), operating under Chapter Eleven of the Bankruptcy Code, lost approximately twenty five percent of their market value over uncertainty of what will be the resulting look of the airline after bankruptcy. The big news was that the creditors, especially Boeing, prevailed in court and had a trustee imposed to run the airline. The court appointed Joshua Gotbaum as trustee.

The hostile takeover battle between CPB (NYSE:CPF) and City Bank (OTC:CBBI) continued even after a disputed shareholders meeting was held and the City Bank shareholders voted to reject CPB's offer. The shares of City Bank held up well after the vote, indicating that some investors still feel the deal will go through.

Ticker Symbol	Company	Exchange	Price 4/30/03	Price 5/30/03	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	26.71	27.18	0.47	1.76	1.28	0.90	3.31	27.53	20.50	21.23
BOH	Bank of Hawaii	NYSE	32.96	34.92	1.96	5.95	1.76	0.76	2.18	35.00	22.79	19.84
BRN	Barnwell Industries	ASE	23.05	224.50	1.45	6.29	.94	0.60	2.45	24.60	19.40	26.06
CBBI	CB Bancshares	OTC	68.02	65.00	-3.02	-4.44	3.53	0.48	0.74	69.34	33.05	18.41
CEAH	CEATECH USA	OTC	0.17	0.15	-0.02	-11.76	0.00	--	--	0.80	0.15	--
CPF	CPB, Inc.	NYSE	25.45	27.43	1.98	7.78	2.09	0.64	1.60	31.24	13.82	13.12
CYAN	Cyanotech	OTC	0.52	0.44	-0.08	-15.38	-0.10	--	--	0.87	0.25	-4.40
GGP	General Growth Properties	NYC	55.62	58.65	3.03	5.45	2.97	2.88	4.9	59.86	41.35	19.75
HA	Hawaiian Airlines	ASE	1.00	0.72	-0.28	-28.00	-1.89	--	--	4.00	0.36	-0.38
HE	Hawaiian Electric	NYSE	41.35	45.80	4.45	10.76	3.15	2.48	5.41	49.00	34.55	14.54
MRPI	Mera Pharmaceuticals, Inc.	OTC	0.03	0.04	0.01	23.33	NA	--	--	0.16	0.03	--
MLP	Maui Land & Pine	ASE	20.86	18.55	-2.31	-11.07	-0.99	0.00	0.00	21.52	13.75	-18.74
NUT	Mauna Loa Mac	NYSE	3.27	3.36	0.09	2.75	-0.06	0.20	5.95	3.91	3.16	-56.00
RZT	Resort Quest Intl. Inc.	NYSE	3.04	4.05	1.01	33.22	-0.46	--	--	6.85	2.85	-8.80
TSO	Tesoro Petroleum Corp.	OTC	7.70	7.01	-0.76	-9.78	-0.46	0.00	0.00	8.55	1.24	-15.24
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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