By Bottom Line Staff
August 29, 2007
Richard Stice, CFA
Dunham Large Cap Growth Fund
Wall Street can be fickle. The same company can be popular when investors overall are in one mood and unpopular
when their mood shifts. Fund manager Richard Stice cites Walgreens as an example. Its stock jumped in 2002, when
investors were looking for so-called defensive stocks amid an uncertain outlook for the overall market. Then in 2003,
even though Walgreens' financial picture remained steady, its stock price lagged behind other large-cap stocks as
investors sought more aggressive investments. The lesson: Consider the market's mood along with a company's
growth prospects when picking stocks.
Here are some of Stice's favorites for the current market, which is tending to favor large-cap growth stocks with big
McDonald's Corp. (MCD). Strong growth in the Asia-Pacific region, Europe, the Middle East and Africa has helped fuel
big jumps in revenue for the world's largest fast-food chain, which is based in Oak Brook, Illinois. In the US, the chain
has been helped by new items that range from premium coffee to snack wraps and extended late-night hours. McDonald's 2.5%
dividend yield is also attractive. Recent share price: $60.
Cameron International Corp. (CAM). This Houston-based company supplies parts to oil drillers. Even if oil prices back
off from recent levels above $90 a barrel, demand from countries with rapidly growing economies such as China
should keep drillers busy. Also, Cameron uses long-term contracts to lock in prices. Recent share price: $20.
Bottom Line interviewed Richard Stice, CFA, a manager of the Dunham Large Cap Growth Fund (DNLGX). The fund,
which launched in December 2004, had a return of 18.4% for the one-year period through November 8, more than
three percentage points higher than the return for the Morningstar Inc. Large Cap Growth Index and 10 points higher
than the return for the Standard & Poor's 500 Stock Index.
Reprinted with the permission of: Bottom Line Secrets, Boardroom, Inc., 281 Tresser Blvd., 8th Floor, Stamford, CT 06901
DUNHAM LARGE CAP GROWTH FUND
||NAV as of 6/30/07
||Previous 3 Months
||1.21% to 2.21%
Stock favorites indicated are the opinion of the author and not Dunham & Associates Investment Counsel,
Inc. and is not a solicitation, offer, or recommendation to buy or sell any securities.
Growth stocks tend to be more expensive relative to their earnings or assets than other types of stocks. As a result,
they may be sensitive to changes in earnings and are more volatile than other types of stocks. Fund may use investment
techniques involving margin and short-sales which involves higher risks, as well as higher potential rewards.
Past performance does not guarantee future results and that current performances may be higher or lower than the
performance as stated in the article.
* The expense ratios above are from the Prospectus dated 2/28/2007 and are Gross of any fee waivers.
Dunham & Associates Investment Counsel, Inc. serves as adviser and distributor of the Dunham Funds.
Dunham & Associates is a Registered Investment Adviser and Broker/Dealer. Member FINRA/SIPC.
Carefully consider the funds’ investment objectives, risk factors, charges and expenses before investing.
This and other information can be found in the Fund prospectus, which may be obtained by calling us at
800-442-4358. Read the prospectus carefully before investing. Investing involves risks, including possible loss
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