Cardinal Capital Management
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Joel Millikan Participates in TBJ Roundtable

RALEIGH, NC. June 13, 2006: Cardinal Capital President Joel Millikan was recently one of eight Triangle-area investment advisors chosen by Triangle Business Journal (TBJ) to participate in a roundtable discussion of how to build wealth.

Cardinal President Glenn Andrews notes, "Joel's participation was noteworthy both for how his investing experience contributed to the conversation and how that experience continues to pay dividends to our investors."

The roundtable results were published verbatim in the August 11 edition of the Business Journal. Additionally, a short synopsis of the session was aired on WNCN-TV in Durham as part of the station's 7 p.m. newscast on the NBC affiliate.

Millikan's views made up a major part of the newscast segment; a DVD version is now available for Cardinal Capital Management clients and prospective clients.

Andrews commented, "Here at Cardinal, we think the essential message being sent by the current market is that opportunities exist if we proceed with care. That was a recurring theme in Joel's commentary at the roundtable."

Asked if the last year on Wall Street included major surprises, Millikan told TBJ, ""My perspective of the last 12 months has been very normal, typical. Nine percent return (from) the S&P 500, about 13 percent on mid- and small-cap stocks."

Cardinal Capital is properly well-known for using investment models where possible. Millikan made that clear to TBJ and his fellow advisors. He said, "We are strong believers in

valuation models and our valuation models are telling us that the small caps are not the place of opportunity today."

Millikan added, "And conversely, the opportunity on a valuation basis is showing up that the large caps are the bluest of the blue (chips)."

While Millikan concurred with others in the group that escalating energy prices are bound to hamper economic growth, he reserved his strongest criticism for IPOs, few of which have been launched in the last year.

He said, "IPOs come to market when the business is as good as it can be prettied up, when the enthusiasm is high and the stocks that are the cream of the crop are not available to the individual investors…There are exceptions, but if you consistently play (IPOs), you're playing a loser's game in my opinion."

Asked by TBJ to make some stock picks, Millikan responded with Johnson & Johnson, Home Depot and CitiGroup from decidedly differing sectors. He said, "They are all three growing companies. They are all very solidly profitable, return on equity from 18 to 27 percent. These are tremendous opportunities in our opinion."

Andrews noted, "Joel's comments were consistently measured and laced with the tactical caution that has been a hallmark of Cardinal Capital Management, Inc. for almost 15 years."

Andrews cited this Millikan comment made to the advisory group: "Basically, we don't believe we can time the market. We don't think anybody else can. We do think we can identify opportunities within the market. At all times, there are good places to be and places that evaluation says you shouldn't be."

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