Thought I would pass on this e-mail response I got from
BuyandHold about their recent auditor's opinion. I and my
club fully support B&H and their services and will continue
to do so. But as an investment club community, this is a way
to keep all infomed (if you are a Motley Fool Member, you
will see the BuyandHold board has been in discussion about
this)..

Link to B&H audit opinion:
http://www.buyandhold.com/bh/en/statement/index.html

E-mail response from BuyandHold:

Thank you for contacting BUYandHOLD. I appreciate the
opportunity to respond
to your email.

Currently, BUYandHOLD Securities Corporation has
approximately 210,000
accounts. We remain highly optimistic about the future of
our firm as we are
in discussions with our investors to obtain the additional
financing needed
for us to reach profitability. Although this funding has not
yet been
attained, these discussions are positive and we are
anticipating a positive
response shortly.

In the event of the firm's insolvency, BUYandHOLD Securities
Corporation is
a member of SIPC (Securities Investor Protection
Corporation). SIPC provides
protection in the event of losses resulting from a brokerage
firm's
insolvency or liquidation. SIPC provides protection of up to
$500,000
($100,000 of which covers cash balances). If BUYandHOLD
Securities
Corporation were ever to become insolvent, each customer's
account would be
protected up to $500,000 ($100,000 of which covers cash
balances). Customers
would then have the option of either transferring out their
shares to an
outside brokerage firm with no additional charge or to have
their shares
issued to them in certificate form. You would be notified as
soon as
possible if the situation did arise.

We thank you for your continued support and do consider you
to be a valued
customer. We look forward to assisting you in reaching your
long term
financial goals.

If you should have any further questions, I encourage you to
contact me via
email (mdunn@buyandhold.com) or at 1-800-646-8212, Monday
through Friday,
8:00 am to 6:00 pm, EST.

Sincerely,

Mary Ellen Dunn

BUYandHOLD Securities Corp.

Michael,
 
I believe the language in the auditor's report is standard for a
startup that isn't profitable yet. I don't think BUYandHOLD
ever planned to be profitable at this time - it only launched
in late 1999. Of course, we don't know how well they are
doing, and that is what will determine if investors see it
through or not. From the outside, the company seems
to be on a successful track - > 200,000 accounts in
a year's time.
 
My two cents.
 
--Ion