Sold Johnson Controls, Inc.

We sold JCI today and redeployed the cash. Although a still quality stock, revenue growth has been slowing and the project average return dropped to 6.5%. We used the above stock selection guide in making this decision.

This is an update of the SSG for Johnson Controls, Inc. The projected average return (PAR) is 12.4% and quality rating is 69.7.

Company Description: Johnson Controls, Inc. has two divisions: the Automotive Systems Group, which supplies seating systems, interior systems and batteries to the orig. equip. and replacement auto markets (75% of ’03 revs., 76% of oper. income); and the Controls Group, a provider of systems and related services for HVAC, lighting, security, and fire protection in commercial buildings (25%, 24%). Acq. Borg Instru. (7/03); Varta AG (10/02); auto electronics unit of Sagen SA (10/01). Has about 119,000 empl. Fidelity Mgmt Trust controls 100% of series D conv. pfd. stock (12/03 proxy). Chairman and CEO: John Barth. Inc.: WI. Address: 5757 N. Green Bay Ave., P.O. Box 591, Milwaukee, WI 53201. Telephone: 414-228-1200. Internet: www.johnsoncontrols.com.