Position Statement: In our Prime Recommendation Letter we attempt to identify the recommendation with the highest probability of moving higher.  We recommend that stop orders be placed at the time of purchase,  and once the position has moved profitable we recommend a stop be placed a minimum of $0.25 above the purchase price and moved higher as the position moves higher.

Today’s Comments: The overall market finished Tuesday mixed with the NASDAQ finishing slightly lower, while the S&P 500 and the Dow Jones Industrial Average finished the day slightly higher. It appears that the broader market moved lower on the day with the weakest sectors being the Gold/Silver, Semiconductors, Pharmaceuticals, Healthcare Providers, Biotech, Computers, High Tech, Telecom, Technology, Interactive, Internet, Oil & Gas, Commodities, Banking, and Cyclicals. There was strength in the Airlines, Consumer, Utilities, Broker/Dealers, Natural Gas, and Chemicals. The bond market was weak as interest rates moved slightly higher. Well, to say these recent storms have created a wave of uncertainty in the markets would put it mildly. The vast majority of the sector indices I track are not giving a clear signal as to the direction of their trends; in other words they appear to be tracking sideways. The rest appear to be weak and trending lower. I think what is certain is that time passes and more information becomes available about the total damage and the recovery process, the market will not be where it is now. I think the "smart money" in the market is doing one of two things. It is either trying to place its bets on which direction the market will go, whether it is higher or lower; or they are structure their positions so that regardless of the direction the market moves they will make money. For us, it means that we need to keep our stops close on our current positions. For the overall market, the 1st Rule of Trends applies "A trend remains in place until it is broken." The Bottom Line: The overall market should continue to move lower.

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Sterling Calendar for September 28th, 2005

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Recommendation: Pride International, Inc.
Company: Pride International, Inc.		Symbol: 'PDE'	Closing Price: $27.30
YH: $27.49 YL: $17.63		EPS: $0.13 P/E: 218	Forecasted EPS: $1.60
Shares Outstanding: 158 Million		Float: N/A	Market Cap.: $4.3 Billion
Dividend: $0.00	Yield: N/A	Average Daily Trading Volume: 1.7 Million
Price Targets:  $29.61, $32.92, and then $47.40			Downside Stop:  $26.71/share
Options Rec.: October 25 Calls @ $2.65/contract			Options Symbol: PDEJE

Company Description: Pride International, Inc. provides onshore and offshore contract drilling and related services to oil and gas companies, as well as to independent oil and gas producers. It provides rigs and drilling crews, as well as cementing, stimulation, carbon dioxide, coiled tubing, and production services. The company also manages integrated services projects in Argentina and other South American countries. Further, Pride International offers various rig management services comprising technical drilling assistance, personnel, repair and maintenance services, and drilling operation management services. As of March 1, 2005, the company operated a fleet of 290 rigs that comprised 2 ultra-deepwater drillships; 12 semisubmersible rigs; 29 jackup rigs; 20 tender-assisted, barge, and platform rigs; and 227 land-based drilling and workover rigs. Its operations are conducted in the oil and gas basins worldwide, including South America, the Gulf of Mexico, the Mediterranean, West Africa, the Middle East, Asia Pacific, Russia, and Kazakhstan. The company is headquartered in Houston, Texas.

Recent News:	9/27 Market Pulse: Pride Int'l: No significant damage to rigs due to Rita MarketWatch (Tue 12:11pm)
	9/2 Pride Int'l Says Katrina Damage Mimimal AP (Fri, Sep 2)
	8/1 Pride International's 'Disappointing' Guidance at Forbes.com (Mon, Aug 1)

Our Analysis: The shares of Pride International, Inc. 'PDE' set a new yearly high yesterday on heavier than normal trading volume. This is a bullish trading signal. In the process the shares of 'PDE' completed a "cup and handle" pattern which is also a very bullish trading signal. The shares of 'PDE' should continue to move higher and test $29.61/share, our price target from the "handle" portion of the pattern. If the shares of 'PDE' close above that level, as I expect they will, then they should continue to move higher and test $32.92/share, our price target from the "cup" portion of the pattern. On a longer term basis the shares of 'PDE' have completed a larger "cup" pattern with a measured move to $47.40/share. I see downside support on the shares of 'PDE' at $26.96/share, and have set our stops accordingly at $26.71/share.

Dow Jones Industrial Average (INDU): Closed @ 10,456.21 Last Signal: Called lower on September 14th with the close of 10,544.90 Current Expectations: I am expecting the Dow Jones Industrial Average to move lower and test 10,397.29 on a closing basis.

S&P 500 (SPX): Closed @ 1,215.66 Last Signal: Called lower on September 14th with the close of 1,227.16 Current Expectation: I am expecting the S&P 500 to move lower and test 1,205.10 on a closing basis.

NASDAQ 100 (NDX): Closed @ 1,568.84 Last Signal: Called lower on September 14th with the close of 1,589.63 Current Expectations: I am expecting the NDX move lower and test 1,558.84 on a closing basis.

CBOE Ten Yr Treasury Index (TNX): Closed @ 4.301% Last Signal: Called higher after the close of trading on September 12th at 4.169% Current Expectations: This index should continue to move higher and test then 4.419%

CSGS, HAL, GSIC, EME, RRC, CPK, USLM, SKYW, WST, MYOG, PZZA, VTS, MO, TNT, EBAY, SGP, ATYT, EP

INTC, CSCO, ORCL, PFE, GLW, AMAT, AMGN, BAC, DNA, JNJ, AA, SNDK, MXIM, BLS, GM, WB, DD, MDT, KLAC, RRC, TOL, TER, NSM, ADI, HDI, MRVL

The Sterling Investment series of newsletters is produced by Sterling Investment Services, Inc.  If you would like to receive a chart on any index or stock mentioned in this report please contact us at the below mentioned numbers.  We also offer custom research reports on any stock investment that you may desire information on.  To receive further information on these services please visit our web page at:  www.sterlinginvestments.com   If you would like to contact us our # is 800-275-6901,  fax # (404)-816-8830  Email address is: enelson@sterlinginvestments.com  Sterling Investment Services may hold positions in the securities recommended or may be providing consulting services to the companies mentioned within this report.