In entry # 17 (May, 1998), we introduced you to The Cigar Shoppe in Easton, Pennsylvania (www.thecigarshoppe.com). We are happy to report that the shop will soon celebrate its first anniversary and is doing well. The owner, Jim O'Brien, has done a nice job giving the place some character. Cigar art fills the walls and he has somehow laid his hands on an antique barber chair in which you can sit while you seek his recommendations or just catch up on local events.

Jim has also done a good job filling his humidors with top-0f-the line selections – Fuentes, Avos, Ashtons, Macanudos, Dominican Cohibas and the like. So many stores these days are selling whatever they can get including many new brands that are poor values.

Jim recently invited us to attend a financial seminar at the shop. He planned to have several representatives of Legg Mason make presentations on various investment vehicles. We consider ourselves to be investment moguls and doubted whether we would learn anything new. However, Jim promised free food and complimentary cigars so we decided to go.

About 20 guys (and two women) showed up, most of whom were knowledgeable about both investments and cigars. A round of free cigars kicked off the event. We each selected a white label Habana Gold. These Honduran cigars offer a medium-bodied smoke and are worth trying. The filler, binder and wrapper are all Nicaraguan. A black label with an Indonesian wrapper is also available.

Everyone lit up and looked for a comfortable place to settle down. Bill made a beeline for the barber chair which was strategically located near the food. Someone beat him to it. It was now decision time - stand near the food or sit on the opposite side of the room. Bi11, of course, opted for the former.

The guys from Legg Mason covered four different areas - mutual funds, annuities, preferred stocks and unit investment trusts.

The presentations were general in nature and the delivery was low pressure. They also emphasized the risks involved the recent volatility of the stock market and the fact that past performance is no guarantee of future results.

The most interesting presentation was on the "Dogs of the Dow" strategy. Under this strategy, you invest an equal amount in each of the ten highest dividend-yielding stocks of the 30 stocks that comprise the Dow Jones Industrial Average (DJlA). You hold the portfolio for a year and then rebalance and readjust it to account for changes in valuation and dividend yields. Over the last 25 years, the strategy has reportedly outperformed both the S&P index and the DJIA. Various unit investment trusts allow you implement this strategy with a minimum investment of about $ l,000.

The evening wrapped up with some door prizes and everyone got a free cigar cutter. All in all, the event wasn't a bad idea. It was cheaper than a cigar dinner and we even made the argument to our wives that we were doing something constructive.

You could design a similar event around just about anyone wishing to promote his or her line of work- computer consultants, golf equipment representatives - even politicians.

Speaking of politicians, how's our grass roots movement doing? (See last month's entry.) We've heard no mention of our proposal either on the nightly news or from the President. Habanos are going to continue to be illegal unless you guys and gals start flooding the White House with email. The elections are coming and events are unfolding quickly so time is of the essence.

We continue to enjoy Atlantic City, especially Harrah's which is located in the marina area as opposed to the boardwalk. Harrah's operates its own marina at which you can dock for a very reasonable fee. You get power, cable TV and use of the hotel-casino's common facilities. Boats from all over the northeast can be found there during the summer.

We visited with Bill's brother-in-law, Scott, and his family when Scott's boat was berthed there a few weeks ago. We did some fishing off the dock at dusk and then sat down to enjoy a little wine and some mild, Nicaraguan series Napas. (This is a brand that has become quite popular at our monthly cigar nights. A medium-bodied Dominican series is also available.) The weather, wine and cigars were perfect. Who cared if the house had the edge?

It just doesn't get any better.

The Cigar Guys

You can The Cigar Guys at: tbill@enter.net for any comments or questions.

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