K FUND REBALANCED FOR THIRD QUARTER 2007

To rebalance the fund for the third quarter, all of the stocks were sold and replaced with the top 10 S&P 500 G&I stocks.
See SPIVEYINVESTING.BLOGSPOT.COM
The only repeat stock was WB.

AFTER REBALANCING, THE HOLDINGS WERE:

DDR 199 sh @ 52.71 = $ 10,489.29
FRE 173 sh @ 60.70 = $ 10,501.10
HST 455 sh @ 23.12 = $ 10,519.60
KIM 276 sh @ 38.07 = $10,507.32
LEG 477 sh @ 22.05 = $ 10,517.85
PLD 185 sh @ 56.90 = $ 10,526.50
SPG 113 sh @ 93.04 = $ 10,513.52
TEG 207 sh @ 50.73 = $ 10,501.11
VNO 95 sh @ 109.84 = $ 10,434.80
WB 205 sh @ 51.25 = $ 10,506.25
cash $ 259.80


TOTAL $ 105,277.14

K FUND REBALANCING FOR SECOND QUARTER

TO REBALANCE THE FUND FOR THE SECOND QUARTER, CZN, MO, T,& WIN WERE SOLD ON 3/30/07AND REPLACED WITH C, HBAN, USB, AND WM.
ON 3/31/07 THE VALUE OF THE FUND WAS $103,230.72

AFTER REBALANCING, THE HOLDINGS WERE:

BAC 191@51.02 = $10,188.01
C 199@51.34 = $10,216.66
GE 275@35.36 = $10,219.80
HBAN 467@21.85 = $10,203.95
LLY 196@53.71 = $10,219.65
MRK 234@41.17 = $10,205.25
PFE 395@25.26 = $10,224.74
USB 292@34.97 = $10,211.24
WB 179@55.05 = $10,186.45
WM 253@40.38 = $10,216.14
CASH $1238.83

TOTAL $103,230.72

K FUND

A VIRTUAL FUND BASED ON THE TOP 10 INCOME AND GROWTH STOCKS OF THE S&P 500

STARTED 1/1/07 WITH $100,000.00

BAC 187 shares @ 53.39=9983.93
CZN 695 shares @ 14.37= 9987.15
GE 268 shares @ 37.21= 9972.28
LLY 191 shares @ 52.10 = 9951.10
MO 119 shares @ 83.93 = 9987.67
MRK 229 shares @ 43.60 = 9984.40
PFE 386 shares @ 25.90 = 9997.40
T 279 shares @ 35.75 = 9974.25
WB 175 shares @ 56.95 = 9966.25
WIN 703 shares @ 14.22 = 9996.66
CASH $198.91