Al Frank Asset Management

1) What is The Prudent Speculator?

The Prudent Speculator (TPS) has been ranked the #1 investment newsletter in total return for 15. 20 and 25 years according to The Hulbert Financial Digest as of 7/31/08. TPS is focused on value investing and created for the individual investor.

We have developed a proprietary stock selection methodology that is used to filter and analyze data. As a subscriber, you'll get our stock selections first-hand - these are the stocks that we believe to be undervalued and have the greatest potential for capital appreciation over the long term. These stocks are chosen from among the more than 1,000 publicly traded companies that we monitor.

TPS content focuses on giving you important tools that allow you to construct your own portfolio. You'll gain access to our monthly buy list, as well as an invitation to view suggestions in our monthly Portfolio Builder section. TPS combines prudence and selection for potential profits and tranquility.

2) Who is the editor of The Prudent Speculator and how long has he been with the company?

The Prudent Speculator was founded by Al Frank in March 1977. John Buckingham joined Al Frank Asset Management Inc, in 1987. John took over the day to day operations, such as research and portfolio management, in the fourth quarter of 1990 when Al Frank retired. He is the CEO of AFAMI and is a current editor of The Prudent Speculator.

3) Are there any other long-term advantages to subscribing?

In addition to John Buckingham's personal expertise, TPS' content focuses on giving you important tools that we believe will help you construct your own investment portfolio. You'll gain access to our monthly buy list, as well as an invitation to view suggestions in our monthly Portfolio Builder section.

4) What will I receive with my subscription to The Prudent Speculator?

Each monthly issue is a cover-to-cover resource for valuable information, including:

• Updated goal prices on all of our recommended stocks
• Close-up observations regarding current market activity
• Breaking coverage of activity in The Prudent Speculator Portfolio
• Timely "Stock of the Month" research, analysis and commentary
• Detailed exposure to Portfolio Builder, which can assist investors in their stock selection as they begin building a diversified portfolio from our lengthy buy list

In addition, subscribers will also receive twice weekly Hotlines emailed to them.

5) What are Hotlines?

The Prudent Speculator subscribers stay current in between monthly issues of TPS with 3 times weekly e-mail Hotlines. We start off our subscriber's week with a Monday Morning Call (sent late Sunday evening) where John focuses on weekly market commentary. Then, Wednesday evening (approximately 5:30 PM PST) John writes his Hotline report in which he provides real-time, actionable investment information based on the day's market and stock activities. We report stocks traded for our model portfolios, offer market commentary, indicate special-interest items, and provide goal price revisions. These e-mails are closed with The Hotline Special Stock in which John gives in-depth analysis to a selected stock currently on our recommended list. Hotlines are also written on days the NASDAQ and/or Dow move at least 5% and 3%, respectively. Hotlines are sent via email as well as being accessible in the subscriber premium section at Al Frank.com.

6) How many portfolios does The Prudent Speculator follow? How are they different?

The newsletter tracks four model portfolios. Two theoretical model portfolios: the PruFolio and the Millennium portfolio. Two actual portfolios: TPS is Al Frank’s original portfolio, and the Buckingham Portfolio, which is John Buckingham’s personal portfolio. Each portfolio is managed using the same Prudent Speculator strategy and philosophy. The size and the inception date of all four portfolios varies, which has resulted in the different stocks that are selected from the buy list and held in each portfolio. While our two theoretical model portfolios are not margined, the Buckingham and TPS portfolios incorporate margin usage to a degree.

7) Is the performance of your newsletter in the Hulbert Financial Digest due to margin leverage? If so, how much margin do you normally use to achieve the performance stated in the Hulbert Financial Digest?

The performance of our publication, as calculated by the Hulbert Financial Digest, is presently based on the average of our four model portfolios – TPS, Millennium, PruFolio and Buckingham. TPS is, and has always been, heavily leveraged, while Millennium and PruFolio use no margin whatsoever. The Buckingham Portfolio started with roughly 20% leveraged, however, as of January 31, 2006, Buckingham Portfolio uses about 3% margin.

PruFolio was started January 2001 and Millennium began January 2000. Prior to then, our performance, according to Hulbert, was based solely on TPS Portfolio. We have also calculated the performance of all stocks ever recommended in the 26-year history of the newsletter. Perhaps this is a better measure, as it does not include any effects of leverage. To be fair, it also does not include commissions, dividends or dividends reinvested.

8) How do you suggest we enter the market with your suggested portfolios from months ago?

Our mission at The Prudent Speculator is to educate our subscribers as to how we build portfolios so that subscribers can construct their own.

We cover over 1000 stocks. We publish a “Buy” list on Pages 4 and 5 of the newsletter, which contains all of the stocks we presently rate as “Buys.” We break this list down into a 10-Stock Portfolio Builder, which would be an excellent place to begin for someone just starting out with our strategy. Finally, we feature a Stock of the Month as well as Hotline Specials, for those seeking one investment idea at a time. Most of our subscribers use our research as a tool, picking and choosing from our recommendations. Others may not want to do this much “work,” so they rely on our portfolios. The choice is up to you.