What You Don't Know About Money Scams Could Kill You.

by Natalie Pace.

Mary Winkler, preacher's wife, victim of Nigerian email scam Photo Credit: mug shot from the Baldwin County Alabama Sheriff's Department

Mary Winkler: Why would a preacher's wife shoot her own husband in cold blood?
While court transcripts indicate that Matthew Winkler had been highly critical of Mary, criticizing her for the way she walks, eats and "everything" until she "snapped," there are reports that her "bad bookkeeping" was really writing checks up to $17,000 to the scam artists behind the infamous Nigerian 419 scam. While this story is still developing and Mary Winkler is free on bail in the amount of $750,000, more victims continue to fall prey to the same email scam and others like it.

Who Falls for Scams and Windfalls?
You might think you're too smart to fall for an exiled Nigerian freedom fighter who needs help getting his money out of the country, but what about your lonely mother or father? What if the email was from an Iraqi soldier who wanted to donate the windfall to an orphanage? Would you give in? Would your college student? And if someone you love does fall prey and loses money as a result, how desperate will s/he become if you try to address the situation, like Matthew Winkler did? Did you know that the Nigerian government considers the scam victims to be breaking the law of larceny, and are not sympathetic to people who are trying to smuggle money out of Nigeria illegally?

An ounce of prevention is worth a pound of cure. Making sure that your loved ones are aware of email scams and frauds, which abound online and are becoming ever more sophisticated, could save you more than money. It could literally save your life. Below are even more traps, ones that intelligent people can EASILY fall for, including tips from the FBI on how to avoid losing your nest egg - or your neck.

The 9 Most Common Email and Phone Scams

1. US soldiers in Iraq (formerly known as the Nigerian 419) fraud scam. This is the latest variation on a scam that began back in the 1990s. The individual says that he is in possession of millions of dollars that allegedly came from a soldier who was an orphan and recently died while on a mission in Iraq. The individual claims he needs assistance donating the funds to an American orphanage. This and other "larceny" or Nigerian 419 scams occur when any "official" or person with a windfall of money contacts you seeking help transferring money out of a foreign country with the assistance of your bank account. It is called the Nigerian 419 fraud scam, but variations with the Iraqi soldier and high-ranking government officials from other countries, like South Africa, are common as well.
   
   
2. Citibank, Fifth Third Bank and other Fraudulent Bank Notices, Asking You to Update Your Account Records online. Scam artists have gotten better at posing as official corporations and government agencies - including the Fifth Third Bank, Citibank, the IRS and more - and luring individuals to go to web sites to "update" their account information, where the information is captured and used to steal money from the victim. To be safe: Never give out ANY personal information to ANY STRANGER EVER, especially someone who requests it in an email. Tell tale signs that an email was sent by a scam artist are listed below, but the most obvious sign is bad grammar, misspelling and gobbledy gook at the end of the email. I received an email from "Fifth Third Bank" with a return address of: "FIFTH THIRD bank, 2006" customersupport-159733541.cust@53.com (Fifth Third's email is 53.com, so you can see how sophisticated the scam is!) But the email was backed by a cheap black background, contained bad grammar and then had over 20 lines of gobbledy gook, including "pike van, altruism ambulatory tat, arid clinic ding lockup."
   
   
3. Jury Duty. The FBI is currently warning about a new telephone scam whereby individuals are called to jury duty and asked to provide their social security number, and then, a credit card number. If the request is refused, that person is threatened with a fine. DON'T BE FOOLED. This is an attempt to get your credit card information and defraud you. Jury duty notices are sent through the postal service, not by phone or email! If you are suspect fraud, tell the caller that you wish to verify that they are indeed from the company or government agency they say they are representing. Ask for a phone number where you can call them back!
   
   
4. Penny Stocks. Hot stock on the rise! Must act now! Is trading at 29 cents, and is sure to trade above $2.00 by the end of tomorrow! This "notice" is sent out by paid e-marketers. These are pump and dump schemes - you buy and the price of the stock goes up. They sell (quickly) to lock in the profits, which makes the price fall flatter than a stone. You lose. Any stock trading under $1.00 is likely to be trading off the boards (which means there is less compliance with GAAP accounting and SEC securities standards) and is more apt to be involved in a "pump and dump" scheme. Never respond to a direct mail or email campaign to BUY any stock NOW before it explodes. No credible company would send a notice like that. The SEC has laws against it.
   
   
5. Incredible Deals on Rolex, Tiffany and more. I received an email from Andy Gay tknott@suffolkconstruction.com, who is representing www.perfectiobox.com. Andy's email says that his company has a "complete line of high quailty replicated products." Notice the mismatch between the email address and the company name AND the misspelling in the ad. The www.perfectiobox.com URL then feeds into eSalesResort.com, which looks official, but there is no information on where the corporate offices are located and no way of contacting the company other than by email. Of course, there is only ONE-WAY to order a Tiffany bracelet for $53 or a "pure gold" Rolex for just $239 - you guessed it: with your credit card. NEVER shop with your credit card online with a company that doesn't list any contact or customer service information. Those fill-in-the-blank emails that you submit don't qualify as contact information. You need a toll-free number at minimum.
   
   
6. Email from the FBI or other government agency warning you that you might be committing a crime. "We have logged your IP address on more than 30 illegal Websites. Important: Please answer our questions! The list of questions are attached." NEVER OPEN ANY ATTACHMENT FROM ANY STRANGER EVER, including one claiming to be from the FBI, the IRS or another government agency. NEVER. That is the EASIEST way to catch a virus or a worm, which could destroy your computer and/or the entire network of your company. If the authorities were really that interested in asking you questions about something, they would knock on your door.
   
   
7. Buyer's Real Estate Market: When an overpriced real estate market begins to soften, there are more houses and fewer buyers. Real estate brokers and mortgage brokers get desperate. I received a notice that Southern California was a "buyer's market" last month from a mortgage broker. Brokers are salespersons; they make their living by selling you things. When you stop buying, their livelihood and career depends upon their ability to get you to take out your wallet again. This doesn't technically fall under a "scam," as you probably will receive something for your money. If you are vulnerable to salespersons, especially unethical salespersons of assets like real estate, stocks and bonds, you could definitely lose a lot of money. (Note: There are many ethical brokers. Make sure you've got one.) For nonbiased market analysis, you need to get your information from a reputable analyst and/or news source, like NataliePace.com. We don't make any money on what you buy or sell! We make money when we become the financial news site of choice. (So tell your friends!)
   
   
8. Equity Loans. "Your credit doesn't matter to us! If you OWN real estate and want IMMEDIATE cash to spend ANY way you like, or simply wish to LOWER your monthly payments by a third or more, here are the deals we have TODAYÉ Hurry, we have requests limits, so when these deals are gone, they are gone!" Scammer/Spammers will do anything to get your credit card number. Whether you fall for a "guaranteed" equity loan or a windfall of millions, or whether you think you are complying with a notice from the government or a bank, if you answer an email from a stranger and type your personal information online, it is a scam. Legitimate business is not conducted that way.
   
   
9. Chain letters. A desperate mother reports that her teenage daughter was abducted. A child's science project reveals that water heated in a microwave kills plants. A chain letter promises thousands from Microsoft at the click of a button. There are prayer chains, Deepak Chopra chains, and spiritual guides to happiness chains. The two things that all of these have in common is that they are designed to add email addresses to spam lists and they are HOAXES. The desperate email from a parent of an abducted child was a SCAM. It wasn't true. If you tried to contact the desperate mother, you discovered that the email address was not working. God surely won't strike you down for ignoring a spammer/scammer's prayer chain email. Your friends don't even like getting forwarded all that junk mail. They'd rather just have a nice, personal note from you directly.

If you have an Internet scam to report, click to go to the Internet Crime Complaint Center.

SHARE YOUR STORY so others will be SPARED!
If you want to make sure that other innocent victims get alerted to the most recent money scams out there, go to NataliePace.com. Click on Sharing Wisdom. Click on the topic "Internet Scams." Share your story.

Keeping your email address off of spam and scam lists.

1. Chain emails: Stop forwarding email addresses indiscriminately. Chain letters are hoaxes. You could be adding all of your friends to yet another spam list.
2. Change your email address if the spam becomes too prolific. You'll enjoy at least a few months of hearing only from your friends and biz colleagues. Notify only those in your address book of the new email address.
3. Always delete spam without opening it. If you get repeat trash from one particular sender, then click on your junk mail option and future email will be filed in your junk mail folder. If you suspect a money scam offer, report it to the ICCC.

Telltale Signs of a Scam
- ACT NOW: "You must act 'now' or the offer won't be good."

- COMPANY AND EMAIL DIFFERENT URLs: Company and/or government agency looks legitimate, but the return email address of the sender looks extremely suspect. You might receive an email from the Third Fifth Bank asking you to update your account information, but the return email address is: JennieJewell@1-dog-jewelry.com. Remember, misspelling, poor grammar and gobbledy gook are red flags, and companies don't email you to find out your account or credit card number.

- FREE PRIZE, but YOU PAY SOMETHING FIRST TO GET IT: "You've won a 'free' gift, vacation, or prize." But you have to pay for "postage and handling" or other charges.

- CREDIT CARD, BANK NUMBER etc.: "You must send money, give a credit card or bank account number, or have a check picked up by courier." You may hear this before you have had a chance to consider the offer carefully.

- NO CONTACT INFORMATION: You will be told that, "You don't need any written information about their company or their references." UNTRUE. If they don't provide legitimate addresses and phone numbers, there is no reason to do business with the company.

- SURE SHOTS: "You can't afford to miss this 'high-profit, no-risk' offer." There are no high-profit, no-risk offers, especially ones being offered by a stranger. In the past, scam artists sold snake oil and swampland. Today it is penny stocks and a piece of a million-dollar windfall.

- SECRECY: "You don't need to check out the company with anyone." The callers say you do not need to speak to anyone including your family, lawyer, accountant, local Better Business Bureau, or consumer protection agency. In a long-drawn out scam, like the Nigerian scams, the offender will tell you that the "operation" that you are carrying out must be conducted under the cloak of secrecy. Legitimate business concerning large sums of money is conducted with due diligence, contracts and forms that are filed with government agencies. Professionals with lots of money do business with other professionals whom they have done business with before. They do not search for strangers online.

If you hear these--or similar--"lines" from an email or telephone salesperson, just say "no thank you," and delete the spam or hang up the phone.

More Tips from the FBI to Avoid Telemarketing Fraud:
It's very difficult to get your money back if you've been cheated over the Internet or the phone. Before you buy anything, remember:

• Don't buy from an unfamiliar company. Legitimate businesses understand that you want more information about their company and are happy to comply.
• Always ask for and wait until you receive written material about any offer or charity. If you get brochures about costly investments, ask someone whose financial advice you trust to review them. But, unfortunately, beware -- not everything written down is true.
• Always check out unfamiliar companies with your local consumer protection agency, Better Business Bureau, State Attorney General, the National Fraud Information Center, or other watchdog groups. Unfortunately, not all bad businesses can be identified through these organizations.
• Obtain a salesperson's name, business identity, telephone number, street address, mailing address, and business license number before you transact business. Some con artists give out false names, telephone numbers, addresses, and business license numbers. Verify the accuracy of these items.
• Before you give money to a charity or make an investment, find out what percentage of the money is paid in commissions and what percentage actually goes to the charity or investment.
• Before you send money, ask yourself a simple question. "What guarantee do I really have that this solicitor will use my money in the manner we agreed upon?"
• You must not be asked to pay in advance for services. Pay services only after they are delivered.
• Some con artists will send a messenger to your home to pick up money, claiming it is part of their service to you. In reality, they are taking your money without leaving any trace of who they are or where they can be reached.
• Always take your time making a decision. Legitimate companies won't pressure you to make a snap decision.
• Don't pay for a "free prize." If a caller tells you the payment is for taxes, he or she is violating federal law.
• Before you receive your next sales pitch, decide what your limits are -- the kinds of financial information you will and won't give out on the telephone.
• It's never rude to wait and think about an offer. Be sure to talk over big investments offered by telephone salespeople with a trusted friend, family member, or financial advisor.
• Never respond to an offer you don't understand thoroughly.
• Never send money or give out personal information such as credit card numbers and expiration dates, bank account numbers, dates of birth, or social security numbers to unfamiliar companies or unknown persons.
• Your personal information is often brokered to telemarketers through third parties.
• If you have information about a fraud report it to state, local, or federal law enforcement agencies.

What to Do if you Smell a Scam

• If you receive a letter from Nigeria asking you to send personal or banking information, do not reply in any manner. Send the letter to the U.S. Secret Service or the FBI.
• If you know someone who is corresponding in one of these schemes, encourage that person to contact the FBI or the U.S. Secret Service as soon as possible.
• Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas bank accounts.
• Do not believe the promise of large sums of money for your cooperation.
• Guard your account information carefully.

Other Articles of Interest:
Common Fraud Schemes

Ethanol: Mixing Alcohol & Politics.

by Paul Woods, President & CEO of Odyssey Advisors, LLC

Is ethanol the fuel of the future or another giveaway to farmers?

Although our economy has morphed into something that would make Adam Smith turn over in his grave, the U.S. still generally permits more old-fashioned capitalism than the rest of the world. However, there is one glaring exception. This industry is protected from free market competition with subsidies and welfare payments that single mothers with too many children can only dream of. The undisputed kings of welfare in this country are big farmers and food processors, and they did it the old fashioned way. In many states, they're the biggest contributors to politicians.

Although most large farmers pay pennies on the dollar for water while city folks make up the difference, the big money is in price support payments. These payments were originally designed to help farmers when crop prices were low. However, once politicians begin writing checks to powerful constituencies, those checks tend to keep coming even when circumstances change. With most crop prices now high, the practical effect of continuing price supports is to encourage too much production. Besides wasting taxpayer dollars, the unfortunate result is that these excess supplies hold world crop prices down and keep third world farmers at poverty levels.

Finding a Use for All That Excess Corn
Given that rising energy costs are finally making alternatives look better, it was probably inevitable that politicians would notice all that corn sitting around in warehouses. Creating subsidies for turning it into ethanol is a politician's wet dream, which is why both parties support it. It makes them look as though they're doing something about the energy problem, gets rid of those embarrassing corn surpluses that annoy the third world, and allows them to throw even more taxpayer dollars at folks who already know how to play the game and will gladly return a portion in the form of bigger campaign contributions.

The Market
The ethanol made in this country, also known as ethyl alcohol, is basically 100 proof corn whiskey. The production process isn't exactly high tech and hasn't changed much in over a century. Ethanol can be distilled from a wide variety of plant materials, but is produced most efficiently from those with more sugar as there's a direct correlation between sugar content and the resulting amount of alcohol that's produced.

Ethanol got a boost in the last few years when some states began to ban MTBE as an additive in gasoline because traces of it were beginning to show up in drinking water. MTBE is used primarily to oxygenate gasoline and make it burn cleaner, which reduces emissions. For consumers in states like California that oxygenate their gasoline, the result is a gasoline that also costs more and produces poorer mileage. Some California consumers are less than thrilled at having to put this in their cars, which explains why the ARCO station on I-80 in Nevada a few miles from the California state line is one of the busiest gas stations in the country.

In looking at ethanol production over the last few years, it's important to tune out the fuel of the future hype and understand that most of the demand is coming from another source. Ethanol also oxygenates gasoline, and has begun to replace MTBE as an additive. That's the primary reason for production increases in the last few years and is likely to be the primary driver of demand over the near term. The open question is, once ethanol has mostly replaced MTBE in gasoline, will its use as a fuel allow demand to continue to grow?

Ramping Up
According to the Renewable Fuels Association www.ethanolrfa.org, there are currently 97 ethanol plants in the U.S. with a total production capacity of 4.48 million gallons.

The Energy Policy Act of 2005 requires U.S. fuel ethanol production capacity to increase to 7.5 billion gallons by 2012, and more plants are currently under construction. According to the RFA, there are another 33 ethanol plants under construction that will increase production capacity by about 1.9 million gallons. At present, there's a 51-cent per gallon tax credit given to refiners and blenders that mix ethanol into their gasoline (the biggest beneficiary, Archer Daniels Midland, will receive over $500 million from this per year even though Congress can't find any more loopholes to plug). Numerous states are also offering incentives at present. As a result, there are undoubtedly more plants on the drawing board.

Infrastructure Issues
At the end of 2006, there will probably be around 700 gas stations offering ethanol fuels, out of a total of about 170,000 in the U.S. Not surprisingly, most of these are located in the corn growing states in the Midwest. It's safe to say this number has to expand a bit for ethanol to have any impact on our demand for gasoline.

Even though more ethanol plants are going to be built, getting it to consumers will take time and a big capital investment. The biggest problem is that it is very corrosive when it comes into contact with anything containing iron. This is one of the reasons cars have to be retrofitted before using it. However, the biggest problem comes in transportation. Not only does ethanol evaporate quickly, but also it can't be pumped through existing gasoline pipelines because it corrodes them. As a result, it has to be shipped on trucks, trains, and barges in relatively small amounts to special storage facilities where it's blended with gas. Finally, fuel pumps at existing gas stations have to be specially adapted for its use.

The final infrastructure issue is that, by some estimates, if all the corn produced were turned into ethanol, it would produce enough fuel for only 10-12% of our vehicles. There's simply no way to produce enough ethanol from existing corn supplies to make a major impact on our gasoline consumption.

Brazil
Brazil is the world's leading manufacturer and low cost producer of ethanol. It isn't rocket science to figure out that, if there's a correlation between sugar content and the resulting amount of ethanol that's produced, the best stuff to make it from is sugar cane or sugar beets. That's precisely how it's made in Brazil, and they'd happily ship ethanol to the U.S. for less than it costs to make and distribute here. However, in our efforts to protect U.S. farmers and food processors from free markets and competition at all costs, there's currently an import duty of 54 cents per gallon on Brazilian ethanol.

The tariff on low cost Brazilian ethanol speaks volumes about the motives behind the current push for ethanol. If the goal was really to help consumers deal with rising energy costs, this import duty would be removed, Brazilian ethanol would be brought in, and the savings would be passed on at the pump. Since that isn't happening, it's hard not to be cynical about the politics here.

Pricing
The most common ethanol based fuel is known as E85, which is 85% ethanol and 15% gasoline. In states with an established infrastructure, it's generally priced at 40-50 cents per gallon less than gasoline. However, in states that have just begun to offer it, the cost of building the infrastructure can result in E85 being priced as much as 50 cents per gallon MORE than gasoline.

In comparing E85 with gasoline, we'll use the best-case scenario as far as ethanol pricing. Assume gasoline costs $3.00 per gallon and E85 costs $2.50. However, keep in mind that the EPA recently tested the gas mileage of the 2006 flexible fuel vehicles. For the 31 models tested, the average was a 26% reduction in gas mileage when E85 was used (http://zfacts.com). In other words, a flexible fuel vehicle that gets 20 MPG on gasoline will get 14.8 MPG with E85. For comparison purposes, here's the cost of driving 15,000 miles per year on each fuel using that vehicle:

Gasoline @ $3.00 per gallon will cost $2,250 to drive 15,000 miles

E85 Ethanol mix @ $2.50 per gallon will cost $2,534 to drive 15,000 miles

In this example, the lower miles per gallon of E85 makes it 12.6% more expensive to use as a fuel, even when it's priced 50 cents per gallon less than gasoline. To equalize driving costs in the above example, E85 would have to be priced at $2.22 per gallon.

The Inconvenience Factor
Even if ethanol is priced at enough of a discount to equalize the cost using gasoline, it still may not be used widely because of its inconvenience. If a consumer with a flexible fuel vehicle fills it with gasoline once a week, using ethanol will require a fill up about every 5.2 days. Over the course of a year, that's an additional 18 days that have to be spent looking for a gas station. Everyone places a different premium on their time, so pricing this into the equation is difficult. However, my guess is that, if the ethanol infrastructure is built and not many people use it, this will be one of the reasons.

The Biofuel of the Future?
There's a fuel under development made from biomass that produces slightly better gas mileage than gasoline, can be used as a fuel without retrofitting existing cars, and can be transported through existing gasoline pipelines. The fuel is butanol (www.butanol.com), which is part of the alcohol family. Since this is a new technology, it costs more to build a plant and break-even costs are higher.

The biggest thing going for butanol might be that there's a limit to how much ethanol can be produced from excess corn, while butanol can be made from any plant material containing cellulose. Like any number of technologies under development, it sounds good, is expensive, and remains to be seen what will happen with large-scale production.

All Things Considered

Paul Woods, President & CEO, Odyssey Advisors LLC.

Ethanol has been around a long time, and the powerful corn lobby and producers like Archer Daniels Midland seem to dress it up and trot it out every time the price of oil goes up. Ethanol was also touted as the fuel of the future and received significant incentives and subsidies during the last energy crisis in the 1980s. At that time, the number of ethanol plants increased from less than 10 in 1980 to 163 in 1984. By the end of 1985, 89 of these plants had closed as the price of oil came back down (www.eia.doe.gov).

The chances of oil prices staying high look better this time and consumers now appear to be more serious about finding alternative fuels. Ethanol manufacturers are ramping up production capacity again and appear to be betting that consumers will be willing to pay a significant premium and will also be willing to spend more time finding gas stations. Some people will undoubtedly use this as a fuel, but we're less confident that ethanol will overcome these problems and find widespread use. As a result, the odds of a capacity glut in the future appear significant. Overall, it's hard not to conclude that the reasons for using corn to make ethanol in the U.S. are political, not practical. For now, we're happy to sit on the sidelines.

Paul Woods is President and CEO of Odyssey Advisors LLC, an independent investment advisory firm specializing in equity and fixed income management for individuals, entrepreneurs, families, endowments, and non-profit institutions. He can be contacted at pwoods@odysseyadvisors.com

Information has been obtained from sources believed to be reliable however Odyssey Advisors LLC does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this material and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

Copyright © 2006 by Odyssey Advisors LLC

eBay's Skype Outpaces News Corp's MySpace, with 113 million registered users.

by Natalie Pace.

Online Freebies Rake In Millions For News Corp. and eBayÉ

Free rules cyber space. Skype, which gives away long distance worldwide, reported in June that it has 113 million users worldwide, while MySpace, a social networking site, celebrated its 100 millionth registered user on August 8, 2006 (during the News Corp. annual earnings call, as if on cue), and is clicked in at 106 million on September 1, 2006. (Skype will report user count again in October.) Both of these companies exploded out of nowhere less than three years ago, and both are in the top 10 most trafficked sites, behind Yahoo!, Time-Warner Network (AOL), Microsoft and Google. (Skype is included with eBay statistics below.)

Source: comScore Media Metrix
(Note: comScore Media Metrix is a division of comScore Networks, Inc.)

It turns out that FREE VOIP long distance on Skype is slightly more attractive than cruising cyberspace for new friends on MySpace.com. But the world's two fastest growing sites have a couple of things in common. While their main product is given away to the consumer, the companies are starting to rake in a whole new generation of revenue for giant corporations, like eBay and News Corp, the owners of Skype and MySpace, respectively.

Rupert Murdoch noted in a News Corp. earnings call on August 8, 2006, "One out of four people in America are interacting with [MySpace] content and services. To have achieved this in just one year is remarkable." What's even more remarkable is that News Corp. picked up MySpace last fall for $629 million at a time when Wall Street thought the crazy Australian was overpaying by at least $400 million. By comparison, Skype was purchased by eBay for $2.6 Billion on October 14, 2005.

NetGear Skype phone.

While News Corp. does not break out the numbers of MySpace, the company signed a $900 million "search" deal with Google this week, which means that MySpace has paid for itself in under a year, with significant upside left. According to Peter Chernin, COO, News Corp., "We would hope and expect that we would deliver a greater amount of profitability. This should be a deal that generates significant, incremental profits." Both Mr. Chernin and Mr. Murdoch admitted that they are pleased to be attractive to so many partners, and should "easily" exceed their previously projected $500 million in annual revenue from their Fox Interactive sites.

And just as a new breed of miniature speaker components has flourished under the halo effect of Apple's iPod, new products, partners and monetization models are sprouting from the enormous success of free VOIP long distance. NetGear has a new Skype phone that fits in the palm of your hand and allows free wireless long distance for Skype users, who are free to roam anywhere in the house or office. Netgear's Skype phone should be available this year. Preorders for the Skype phone are available now on Skype.com's shopping page for $299.99, which means that eBay is pushing beyond online auctions into online retail, striking first in a new marketplace that is already 113 million customers strong.

NetGear's CEO Patrick Lo reported on August 3^rd, in an exclusive interview on the Forbes.com Video Network, that preorders for the NetGear Skype phone are "strong and healthy," and that he hopes to attract at least 12-15 million "diehard Skype users" from the 113 million strong marketplace. Of course, there are plenty of companies that want to take a piece of the VOIP phone market from NetGear. Belkin has a Skype wireless phone with a price of $189.99, and Earthlink has vowed to bring the price point down to $50-$100 with its own model. But even a million phones at $100 bucks each adds a significant chunk to the top line of NetGear's $491 million in annual sales, and positions it to stake territory in one of the most robust new marketplaces in the world.

Click to check out NetGear's Skype phone and to watch my interview with Patrick Lo.

Will Earthlink, with its fee-based, bundled Internet and VOIP service, make significant gains into Skype's dominance of the VOIP market? Will NetGear continue to expand its presence as an award-winning provider of wireless technology products, and produce and sell a few million Skype Wi-Fi VOIP phones before Christmas? Will free wireless Internet phone calls destroy Ma Bell AND the cell phone business?

What is true is that there are a number of Internet and technology companies that are positioned to do well, under the aegis of the new Internet giants - MySpace and Skype. When free rules, you, the consumer, win. But in this case, so do eBay and News Corp. (owners of Skype and MySpace respectively), and, potentially, a whole new breed of small cap companies, like Earthlink and NetGear, that are still largely flying under Wall Street's radar.

Click to review the NataliePace.com Skype/MySpace Stock Report Card. Please note that I have added Time-Warner to the Hot News List (located at the bottom of the NataliePace.com ezine, vol. 3, issue 9), and eBay to the Watch List.

Known for "breakouts," Natalie Pace is a respected journalist and one of the most successful stock pickers in the U.S., with over 49% annualized gains on the companies featured in NataliePace.com (since inception), according to TipsTraders.com, an independent ranking agency that tracks over 730 A-list market gurus. To check out other articles by Natalie, go to NataliePace.com.

Other Articles of Interest:
Skype Hype.The new verb that is changing the world, and why the password is sell AT&T now. By Natalie Pace.

Gold and IT Gold.

Exclusive interviews with NetGear's Chairman and CEO Patrick Lo and U.S. Gold's Chairman and CEO Rob McEwen.

Rob McEwen, Chairman and CEO, U.S. Gold Photo Credit: Norm Bettis.

During his 18 years of leading Goldcorp, Rob McEwen survived a bitter 46-month labor strike, found new reserves in a tapped-out mine, invented the Goldcorp Principle, which is now an industry standard for identifying new reserves, won awards, and added billions to Goldcorp's bottom line. He's one of the most respected CEOs in the gold mining industry, and on August 22, 2006, he joined Natalie Pace in the studios at Forbes.com to discuss the future of gold prices and gold company share prices. With gold trading at over $600 an ounce, is it time to sell or is there more upside on the horizon? Click to watch Natalie's Forbes.com Video Network Q&A with Mr. McEwen.

Patrick Lo, Chairman and CEO, NetGear, ringing the opening bell at NASDAQ © Copyright 2006, the Nasdaq Stock Market, Inc. Reprinted with permission Photo Credit: Rob Tannenbaum.

NetGear's Patrick Lo recently won an Ernst & Young Entrepreneur of the Year Award. His company's networking products get high marks from both retail and high tech players.  But are great products, awards and momentum enough for a small, young startup to take on the IT giant, Cisco? NetGear's Chairman and CEO Patrick Lo joined Natalie Pace in the Forbes.com studios on August 3, 2006 to answer that question and others. Click to watch Natalie's Forbes.com Video Network Q&A with Mr. Lo.

Green: Are You Walking the Walk?

by Greg Wendt, Certified Financial Planner, Specializing in Sustainable Wealth and Socially Conscious Investing.

Measure Your Own Ecological Footprint.

News Flash: Refuting the myth that what is good for the environment is bad for economy.
California grows economy, but not per capita energy use! Per capita energy use has stayed level in California over the past 30 years -- of major economic growth -- while doubling in the U.S. as a whole.

Sustainable Wealth
What is wealth? What is sustainable? How can wealth creation for our society be brought back into alignment with true happiness and well-being? Where do wealth and sustainability intersect? Some say true wealth is "quality of life" - well then, what is quality of life? I'll survey thinkers, articles and topics to address these and related questions in upcoming articles.

Measuring how much is too much.
Redefining Progress is doing some groundbreaking work in this area to measure the impact of our industrial civilization on the planet's carrying capacity. Basically they say that it takes the earth one year and three months to restore what our global human civilization is using in one year. Here's an excerpt from their "Sustainable Economics" program:

"The myth that environmental protection must come at the expense of economic growth is dead. Short-sighted policies and approaches to producing the energy and other products we need can and do have harmful impacts on society and the environment. Pollution, traffic congestion, and health risks are examples of such impacts, which often disproportionately effect communities of color and people living in poverty. RP's Sustainable Economics Program works to develop and promote creative, market-based policies that protect the environment, grow the economy, and promote social equity."

If you want to know if you are walking the walk, instead of just talking the green talk, measure yourself in Redefining Progress' ecological footprint analysis on this web page

For example here is the analysis I got from their website for MY ECOLOGICAL FOOTPRINT:

Category Acres Food 3.7 Mobility 2.7 Shelter 7.7 Goods/Services 7.2 Total Footprint 21 Acres

IN COMPARISON, THE AVERAGE ECOLOGICAL FOOTPRINT IN THE U.S. IS 24 ACRES PER PERSON. WORLDWIDE, THERE EXIST 4.5 BIOLOGICALLY PRODUCTIVE ACRES PER PERSON. IF EVERYONE LIVED LIKE US, WE WOULD NEED 4.8 PLANETS.

Greg Wendt, CFP.

Greg Wendt, CFP, a 15-year veteran financial advisor, is the leading expert on Socially Responsible Investing in Southern California. He is one of five principals of Enright Premier Wealth Advisors, Inc., a well-established Registered Investment Advisor with offices in Los Angeles and the South Bay. You can learn more about how he can help you at his website www.gregwendt.com or his blog at www.sustainablewealth.blogspot.com.

Let Your Life Speak.

by Marilyn Tam, author of How to Use What You've Got to Get What You Want.

"Maybe that's the most important legacy, to live life with passion and love, doing what calls to your soul. Your legacy is living your life with love and in love with life." Marilyn Tam

Life, Love and Legacies
Two weeks ago I gave the first Wilmer Memorial Lecture at the Institute of Humanities at Salado, Texas in honor and memory of Dr. Harry Wilmer and his son Harry Wilmer III. It was not supposed to be that. It was intended to be the Harry Wilmer III Memorial lecture, in tribute to Dr. Harry and Jane Wilmer's late son, Hank. But Fate intervened.

I had the privilege of meeting Dr. Harry Wilmer M.D. in November of 2004. What a modern day renaissance man! He pioneered group psychotherapy and his groundbreaking work formed the basis the television movie, People Need People, starring Lee Marvin. At University of Texas Health Science Center in San Antonio, Texas, Dr. Wilmer helped Vietnam veterans recover from schizophrenia and post-traumatic stress syndrome. He authored sixteen books and numerous articles. He organized four film festivals, produced plays, films and a PBS documentary. In 1980, Dr. Wilmer founded the Institute of Humanities at Salado to increase knowledge, to stretch minds and to foster compassion in light of our rapidly changing world. And if that wasn't enough, he was an acclaimed artist in paint, sculpture and needlepoint, and a published poet too!

We met at Master Chungliang Al Huang's tai chi weeklong seminar in Morro Bay, California. Dr. Wilmer had known Chungliang Al Huang for many years and was a strong supporter of his work. But with his busy life, he hadn't personally attend a workshop of Chungliang's until then. Dr. Wilmer had a wonderful time at the tai chi workshop and said that he wished he had done it years earlier. He moved easier and stood taller as the week went on. It was fun to see him move with such enthusiasm and grace.

I was impressed with Dr. Wilmer's passion for life and for making a difference in the world. We spoke about our mutual mission to make a positive difference in people's lives and we committed to work together on our joint passion. The first step in that process was for me to give the Harry Wilmer III lecture in June of 2006. Sadly, Dr. Wilmer died in 2005 from a bad fall. My lecture, which was going to be the beginning of a long collaboration between us, was now a tribute to his work and life.

So in honor of Dr. Wilmer I made the theme of my talk, "Life, Love and Legacies." He dedicated his life to his loves: his family, his work helping people and his multitude of artistic talents in the arts. Through the Institute of Humanities that he founded, he created a legacy, which is living on to do more good. Life, it is what we choose to make of it. Dr. Wilmer was an inspiring example of what one person can do to create a lasting legacy of love and positive impact in the world.

A lady in a floral print silk dress and sensible shoes placed a gentle hand on my arm at the reception following my talk, "Thank you for the speech, it was a spiritual experience for me," she said quietly. She smiled a winsome smile and slipped away. Hmmm... before I had time to contemplate the meaning of her remark, a tall grey haired gentleman in a navy blue suit and red striped tie strode up and clasped my hand. "Will you consider running for President of the United States?" he boomed. Two radically different responses to the same words and theme - Life, Love and Legacies.

Life, love and legacies have been on my mind. Just two days prior to my lecture at the Institute of Humanities at Salado, I was in Greece, receiving an honor that I never even dreamed was possible: I was presented with a Greek postage stamp with my likeness on it! My postage stamp was part of the Artemis Award given by the Euro American Women's Council and the Greek government for my business and humanitarian work. It was a humbling and inspiring experience.

What constitutes a life well lived? Well loved? What do we leave as a legacy? The whole magical Greek experience brought these questions up in a very tangible way.

In May, 2006, under the majestic Athenian stars, I was awed by the history and beauty of the setting and the occasion. Our delegation of honored men and women "represents vision," according to the Honorable Dr. Christos Veronis (the Mayor of the World), "and [we] contribute immensely to [our] heritage connecting together business and culture."

On the island of Delos, where we were inducted to the Women's Hall of Fame of Goddess Artemis, I stood next to the statue of Goddess Artemis, which touched me deepest. We were at the birthplace of Artemis and Apollo, being inaugurated in a special and very emotional ceremony into the historic lineage of the ancients. What a great honor and how humbling an experience! How can I live up to the responsibility of such a tribute?

Does having your own postage stamp constitute a legacy? What if your passionate good works are not rewarded by public recognition? Do they still count as much? Or do they mean more since you are toiling unnoticed and therefore not tainted with the benefits/burdens of high visibility?

As much as I may like to, I can devote little time to deep reflection on this subject. I have pressing work to do. Children and the poor in Africa, Bhutan, India, Thailand, and in the natural disaster zones of Sri Lanka, the Mississippi and Louisiana areas need help. Companies, non-profits and governments are looking for support in incorporating the concept of the highest common good into their management strategies and operations. My colleagues and friends who work so diligently in these areas are calling and emailing. I have to get back to work. There are calls to be made, talks, workshops and articles to be written and given to support the creation of more happiness, success and harmony between people and people and the planet. Maybe that's the most important legacy, to live life with passion and love, doing what calls to your soul. Your legacy is living your life with love and in love with life.

Marilyn Tam, author of How to Use What You've Got to Get What You Want.

Marilyn Tam is the co-founder and Executive Director of the Us Foundation whose mission is to facilitate global action plans and dialogue to address social, economic and environmental issues. Ms. Tam has had an extraordinarily diverse life, from her beginnings in a traditional Chinese family in Hong Kong to her meteoric rise through the executive ranks of the international business world to become an influential corporate leader, speaker, corporate consultant, author and respected humanitarian. She has led numerous world-class companies, as CEO of Aveda Inc., President of Reebok Apparel & Retail Group, and Vice President of Nike. She consults and speaks globally with Fortune 500 companies, governments and non-profit organizations on leadership, change management, diversity and how to integrate social & environmental concerns into businesses profitably.

Marilyn Tam's internationally selling book, How to Use What You've Got to Get What You Want is available in English, Chinese, Japanese, Spanish and Indonesian and soon will be in Greek and Thai.

High Velocity Change.

by Gary Kobat

...surrendering to change does the most to eliminate stress; creating opportunity for breakthrough rather than breakdown.  It's strength becomes ours.. instead of seeing it as an adversary... align with it, use it, allow it to become your greatest ally.

Jim Carrey, Will Ferrell and Gary Kobat

Change is heavy-duty stuff. Not the sort of challenge you take on simply because it sounds good, or because it's the "in" thing to do. We do it because what worked isn't anymore, or that we want to shift to another level, embrace another level... or if smart enough, we do it before we have to, knowing we must to maintain a competitive edge, a relationship, a career, a home.

Most don't have the foresight to shift before their world forces it upon them. Some start, but lose determination along the way, while others dabble in so much that they lose track of their destiny.

Change, shifts, overhauls, cultural transformations can't be done without some pain, chaos, and unCOMFORTableness. Shifting correctly - the payoff is worth the price of admission.

Follow the guidelines given here, and you can achieve dramatic shifts in record time. It just might be the best way for you to protect your future.

1) You'll have trouble creating the "new" if you insist on doing it in ways consistent with the "old." The "old" rules are probably part of the problem. Defy tradition. Disregard norms. Let go of relics of an antiquated "way." Be alien to the status quo.
2) Focus on the Future. Analyzing your present is like going to history class, when you could learn more from studying the future.
3) Deliberately Destabilize. Hit with enough shock effect to immobilize the "old" at least temporarily.
4) Care Harder. Care enough to take yourself through the tough, unpopular so it can excel. Trying not to disturb can be the cruelest move of all.
5) Set Higher Standards. Raise the bar; focus on higher-octane energy rather than resistance to change.
6) Measure, Reward. Celebrate results, spotlight poor and expose.
7) Change needs to be a cause, a crusade, and your job is to champion the vision.
8) Simplify. Get rid of worn out rules, free yourself.
9) Crank Up Communication with yourself, with others. Standard communication simply won't cut it.
10) Expect Casualties.
11) Demonstrate Unwavering Commitment. Be dead serious to see it through.
12) Involve Everyone. Insist on involvement.
13) Be a Living Example. Consider yourself on display.
14) Build Momentum. Hard results talk louder than words or intangibles.
15) Create a "new" breed, a new culture.
16) Lose the Uncommitted. People who are uncommitted don't strengthen you.
17) You cannot achieve change without the influence of deviant, rebel, radical, revolutionary, howling, and eccentricity.
18) Orient, Educate, Train.
19) Go ALL Out. Leave skid marks.

Start out throwing gravel, don't even think about usual or quitting. When you get to the other end of "change," you'll look back and say you should have done it faster.

Manifesting will take some 1) asking  2) believing that the answers are on their way, and 3) allowing yourself to be open to receive.

Change smart.

Gary

A passionate life and fitness coach, world-class athlete, author, and keynote speaker, Gary works one-on-one with select individuals, customized mastermind groups, and larger goal oriented teams for lasting personal and professional change. If interested in joining a group or for a private consultation, email him directly at: gary@e-coach.com or visit one of his spinning classes at Revolution Fitness in Santa Monica, California.

It's Not Cold Calling-It's Gold Calling!

by Chellie Campbell, author of Zero to Zillionaire.

How networking warms up the cold call.

Warm Calling vs. Cold Calling

Cold calling sounds like what it is - harsh and cold. But since the money is in the phone, I call it "Gold Calling." My telephone is spray painted gold and I wear gold fingernail polish to remind me to dial the golden phone. All the money you want is waiting for you at the other end of the phone, but you have to pick it up and reach out and touch someone. Selling isn't about zapping. It isn't about you. Selling is serving. You are searching for the people who need and want what you have - who are praying for you to show up with it - and you are helping them to have it.

Cold calling works. But the percentage of ships that come in is very small in relation to the number you have to send out, unless you are very good at finding your target market. I know an accountant who has a lot of clients in the restaurant business. She cold calls restaurants every Tuesday and introduces herself to see if they need her services. She doesn't always enjoy it that much, but it works, so she does it.

I prefer to network. This way, all of my calls are warm calls. I've met these people already and we have a mutual interest in each other. This is a much easier phone call to make than a cold call to someone you don't know.

If you don't have your own business, perhaps you do fundraising for your favorite charity, help your Scout troop sell cookies, or want to set up interviews with companies for your next job. But if you don't have your own business, why not? It could be a terrific source of additional income eventually, even if it's just a hobby on the side for now. You can meet a lot of new people and develop your financial and social skills at the same time. It can be a tax write-off, a source of additional income during retirement, or it just might end up being the most fun and profitable thing you ever did for yourself. Take a risk and try it. There are many valuable multi-level marketing companies that will train you while you learn to earn.

I have found making sales calls - sending out ships - is the single most important action missing from most people's game plans. In networking groups everywhere, I meet chiropractors, acupuncturists, attorneys, massage therapists, escrow officers, real estate professionals, mortgage brokers, computer technicians, bookkeepers, interior designers, architects, cosmetologists, hair stylists, beauty consultants, writers, musicians, artists, actors, accountants, insurance brokers, financial planners, personal and business coaches, web site designers, travel agents, florists, etc. They are at networking meetings in order to get business. They are happy to go to the meetings and say hello to people, but most will never pick up the phone and call the people they meet. They think the idea is to give everyone their business card. They have the illusion that if people are interested, they will call.

Let me give you a tip: They aren't going to call you. Why? Because they have a life, they have priorities, they need clients themselves, they have another appointment, it's their mother's birthday, and they have to wash their hair. You and your stuff are way down at the bottom of their priority list. Even if what you have is what they most need and close to the top of their list, they aren't going to call you. They have fears. They have objections: You're going to charge too much, they really should remodel their house first, it's their daughter's birthday tomorrow, maybe you aren't really the best one for the project, it's too far to drive, they'd have to convince their Significant Other and that might mean an argument and that would lead to problems and - oh it's just easier to forget the whole thing...

Not to mention that calling strangers on the phone is scary. You don't know how you are going to be received, or if someone is going to be nice to you, or if they are somehow going to manipulate you into buying something you don't need and spending more than you can afford to spend. You're afraid you might be calling a con artist who is going to promise you the world and rob you blind. And what if they're angry and mean to you if you say no? What people want most in the world is love and acceptance, and the biggest risk when you call a stranger is that you not only won't get loved, but you'll get screamed at.

So you can see how most people find it much easier to just wait and dream that their phone is ringing off the hook with people calling to give them money...

Chellie Campbell, author of Zero to Zillionaire.

Then there are all the people who do pick up the phone and make the sales call, but who do it badly. They call and immediately start talking about themselves: "Hi, this is Charlie. Let me tell you about me!" That's an immediate turn-off. And right then, when their prospect is turned off, they launch into a long presentation about their stuff, not even knowing if it is anything you need or want. How would they know after meeting you for two minutes? You instinctively know this person is focused on his/her own needs and problems and not on serving you. How's your trust level then?

Don't try to sell people your product or service bang out of the gate. Try to get to know someone. Ask about their business. Wait until they ask you before talking about your product or service. Then they are a willing listener and you have an opening to interest them in what you have to offer. No, don't wait an hour for them to get around to you - if it's taking that long, you've probably called someone who has too much time on their hands or is trying to avoid making sales calls. Have an exit line ready for those occasions, like, "Oh, I can see that I could talk to you all day, but my next appointment has just arrived," or "I'm so sorry but I have to wash my hair now..."

But no business is going to get transacted after a networking meeting unless someone makes a phone call. Somebody has to go first. And since you're reading this, that somebody is you.

Chellie Campbell is the author of Zero to Zillionaire and The Wealthy Spirit. She created and teaches the Financial Stress Reduction® Workshops on which her book is based in the Los Angeles area and gives programs throughout the country. You can sign up for Chellie's Ezine at www.chellie.com.

Ask Natalie:

Is the High Net Worth World of Investment Banking Worth It?

Recently, an NataliePace.com member wrote me with a very simple question:

I am a woman seeking to work in the financial industry and/or investment banking upon graduation, and have been warned about the discrimination I might face. So, I would love to get advice from anyone who works in the investment banking field. I am seeking general advice from women in the financial industry. Please share your wisdom on how to succeed in the field, and/or possible hurdles you have overcome.

Regards,

Sophia M.

For a woman to succeed in the financial industry, she must forget about gender and concentrate on hard work, long hours, and doing the very best she can.  In my day, there was a prejudice against women.  I do not think that prejudice is as great today.  I see many women standing shoulder to shoulder with men in the industry and getting the same respect and responsibility. Excellence is key ... whatever the gender and, thankfully, the idea that women are less capable than men has been proven false. In fact, if you think about it, women may be even more capable than men in the field of finance.  After all, they are taught at their mother's knee to shop for bargains, look for values, and not be misled by rumors and false promises.  There is no reason in the world why a woman cannot rise to an executive position in the financial industry. It does not require "heavy lifting."

 ---  Geraldine Weiss, Publisher Emeritus, Investment Quality Trends stock newsletter.

Geraldine Weiss is a great example of a woman who is more capable than most men in the field of finance! Her newsletter is ranked number one for risk-adjusted returns for the past twenty years by Hulbert's Financial Digest, a respected independent stock newsletter-tracking agency. In the Vol.3 Issue 3, March 1st, 2006 archived NataliePace.com ezine, Ms. Weiss spoke to me about her formula for ruling Wall Street for the past 20 years with her Blue Chip Stock picks. Click below to check this Q&A out!

Meet the Most Successful Blue Chip Stock Picker on the Planet, Geraldine Weiss, the founder of Investment Quality Trends. By Natalie Pace, CEO, NataliePace.com.

Shrek, the highest grossing animated feature in history Photo courtesy of: DreamWorks Animation.

Coming out of Columbia, you have three choices, investment banking, consulting or treasury jobs. I wasn't willing to work 90 hours a week, every weekend, with all my vacations cancelled at the last minute, so I went the corporate treasury route. In 1990, I began at Paramount Pictures. I felt like the treasury job would be a lot more interesting at an entertainment company.  

--- Kris Leslie, CFO, Dreamworks Animation.  

To read more of the Kris Leslie Q&A, click or go to the archived ezine, Volume 3, issue 5:

DreamWorks Animation Rewrites the Fairy Tale, Putting Three Women In Charge. Q&A with Kris Leslie, DreamWorks Animation CFO. By Natalie Pace, NataliePace.com, CEO and founder.

Feel free to post your own comments directly at the Sharing Wisdom bulletin board at NataliePace.com (Topic: Question For Investment Banking Women), and to check out what others are saying.

The collective wisdom and experience of our network is so vast that tapping into it through the ease of the Internet can enrich all of our lives. At the same time, there are a lot of questions that a lot of us share, and together we can work together to answer them. So, please email me your burning money questions - be they business, investing or personal - and we will continue the dialog by having our very knowledgeable network of experts answer your most pressing needs. Your questions are always confidential.

Enjoy Back to School and Back to Work this Fall!

Natalie Pace
www.NataliePace.com
Recipes for the Rich Life.
866.NataliePace.com (866.476.7442) Toll-free Number

EXPERTS WANTED!
As you know, this ezine is dedicated to spreading wealth by sharing wisdom, which is why we need your help. If you have a good answer to Sophia's question and are willing to share your wisdom, experience and advice with Sophia, please email me at info@NataliePace.com at your earliest possible convenience. Let me know if you are willing to allow me to publish your response, or if you prefer that your thoughts are forwarded directly to Sophia M. only. Also, please include your company and title. Short, sweet, pithy, memorable responses are always best.

Please forward this email to anyone you know who is in a position to provide the best advice to Sophia. We have been fortunate to receive responses from top experts in their field. A young man whose company didn't provide medical insurance received information on health savings accounts from a Nobel-Laureate winning economist. A young fashion designer received a personal note from Daniella Clark, the founder and President of Frankie B. The first responses to Sophia's query are in, and they are just as impressive. (Please share your wisdom with me now, before September 15, 2006.)

 

China: From Confucius to Communism to Capitalism.

by Tara Vandenberg

Are Your Investment Dollars Safe There?

On Wednesday, August 8, I sat at the Milken Institute in Santa Monica waiting for John Pomfret, the former Beijing bureau for the Washington Post, to address the his audience on his unique view of the changing China. With my naïve understanding of the amazing development of the People's Republic through the past decades, I waited in anticipation to listen to a man that experienced its progress first hand. Having entered into the drama of China in 1980 as an exchange student at Nanjing University, then moving on to become a correspondent for The Associated Press and finally the Beijing bureau chief for The Washington Post, John Pomfret's new book, Chinese Lessons: Five Classmates and the Story of the New China tells the story of classmates who were among those who survived the twin tragedies of Mao's rule - the Great Leap Forward and the Cultural Revolution - and whose success in government and private industry will come to define the country's future.

What I liked most about Pomfret was his honesty and courage. I expected a somber storytelling of brutality and unimaginable scenes. Instead I was introduced to an award-winning journalist who fears standing in front of a group and speaking without note cards, and who admits to the nervous habit of bouncing back and forth during his speeches. All of this was overshadowed by his sense of humor regarding the lighter moments of his time in China.

He began his discussion setting a stage for explaining just how tough China's problems are, and that Westerners, immersed in romantic depictions from starry-eyed visitors, have no idea what kind of challenges China is facing. The West's naïve misunderstanding of China's economic, medical, political, social and environmental hurdles was the heart of Pomfret's talk.

The seriousness and highlights of the speech came with Pomfret's description of China's progress to a new and invincible future. In the 1920's, the May Fourth Movement turned intellectuals against tradition and toward Western science, democracy and then socialism. In the 1930's, Chiang Kai-shek and the Nationalists attempted to create a new East/West syncretism. With Mao Zedong's victory in 1949, China was plunged into revolutionary totalitarianism. Finally, in the 1980's, the pragmatism of Deng Xiaoping brought authoritarian capitalism.

All these tectonic reversals of identity have left China culturally deracinated and disoriented. Pomfret explained that with so many cancellations of old values systems and identities over the past century, China has been in a constant state of self-repudiation and self-reinvention. Since reformers of the Qing Dynasty first began to question Confucian values during the early years of the 20th century, China has been swept by a cascade of revolutions.

A Red Guard who beat and tortured supposed "class enemies" during the Cultural Revolution, once candidly asked Pomfret: "How do you think a society, where that type of behavior was condoned -- no, not condoned, mandated -- can heal itself? Do you think it ever can?" The issue of whether China ultimately chooses to confront its past or continues "hiding behind history" will almost certainly end up being as important to its future as all the foreign investment, technology transfers, I.P.O.s and high-rise buildings that now so impress visitors and eclipse the Communist past.

September: The Most Treacherous Month on Wall Street.

by Kelley Wright, Managing Editor, Investment Quality Trends

Wake me Up When September Ends...

Late August is the peak vacation period for the majority who work on Wall Street. All the evidence one needs is the low volume and listless trading that marks the Dog Days of Summer. Most conspicuous, but little mentioned, is the lack of new highs, which tells the tale in the most succinct manner.

Followers of the Dow Theory tell me the markets are in a state of non-confirmation. Rallies to recovery highs in the Industrials have been unconfirmed by the Transports. Declines to new lows in the Transports remain unconfirmed by the Industrials. I believe this is called a push.

This fall we should see the two Averages get on the same page; either moving to the upside or confirming to the downside. In the interim I would suggest a steady stream of more of the same.

While September is typically the most treacherous month, it's October that gets all the bad press. Will this year be different? Only Mr. Market knows, and he's not telling.

According to Charles Henry Dow, "values, when applied to stocks, are determined in the end by the return to investors." In our opinion nothing quantifies return as well as cash; specifically cash in the form of a dividend.

I reference dividends and values because I have been observing the Dow Utilities. Utilities traditionally have offered the highest dividend yields, thus their appeal to IQ Trends. As for their current degree of value, however, the Utilities Average is on the verge of moving into Overvalued territory. By example, our lone Undervalued Utility in the Mid-August issue (and maiden member of the Timely Ten) was Pinnacle West Capital (PNC), which has since moved into its Rising Trend.

The current catalyst behind the Utilities is the widely held view that the economy is slowing. In a slowing economy, the traditionally higher dividend yields provided by Utilities are in greater demand because expectations for share price appreciation are greatly diminished.

What remains to be seen is if the potential for further price appreciation in Utilities is exhausted. If so, and if the primary trend is indeed down, then squeamish investor sentiment may prove that the desire for capital preservation trumps the desire to capture yield. Given the right price/yield parameters, we would gladly add to our holdings of high quality Utilities. With September and October drawing near, generally speaking, so does opportunity. And so we wait.

Much has been written about the decline in the housing market and the inversion of the yield curve. Most conclusions are that the combination of the two guarantees a recession.

The much-publicized statistics for housing do paint a gloomy picture. However, that there is a correction underway in housing should come as no surprise. No market can go straight up for an extended period of time without corrective consequences.

Many economists are fretting about where the growth in GDP will come from now that housing is correcting. The answers remain to be learned, but, I will note that the discussion about the future source of GDP growth takes place in each economic transition. In the end, the resiliency of the American economy is truly amazing - somehow we always find our way through.

As for the yield curve, the current environment can continue for quite some time without adverse consequences. What would be a cause for concern is if short-term rates begin to decline quickly in relation to long-term rates. Declining short-term interest rates generally indicate the need for economic stimulation.

If Wall Street really begins to believe there is potential for a recession, our Undervalued category will swell with new buying opportunities. These opportunities will eventually provide the foundation for profits in the next up cycle. That there will be a next up cycle is a fore gone conclusion. Economies and markets always ebb and flow, thus cycles always repeat. We stand ready.

THE TIMELY TEN
Every stock in the Undervalued and Rising Trend categories is considered part of our model portfolio for performance tracking purposes. To mirror that performance would require holding eighty-five stocks as of the Mid-August issue; clearly too many positions to be practical.

Whether you are looking to build a portfolio from scratch, are partially invested and looking to add new positions, or fully invested and in need of some affirmation and hand holding, The Timely Ten presents our top ten recommendations as of each issue. Short of utilizing the personal investment management services of our sister company, this is as close to real time as you can get.

The Timely Ten consists of Undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better, a "G" designation for exemplary long-term dividend growth, a P/E ratio of 15 or less, a payout ratio of 50% or less (75% for Utilities), debt of 50% or less (75% for Utilities), and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation. This issue's selections are:

Fifth Third Bank (FITB) looked ready to break out, but has since lost its momentum and appears to be moving sideways. Claire's Stores (CLE), on the other hand, displayed excellent action and looks to move higher. Citigroup Inc. (C) is our first of three new additions this issue. Technically this stock has made a 180-degree turn. Popular Inc. (BPOP) performed well since the last issue and has moved up smartly in the rankings. Eaton Vance (EV) had a slight retracement due to a minor earnings miss but all in all has weathered well. The stock is still priced below Undervalue. American Int'l Group (AIG) continues to look strong and steady and has moved up a spot since last issue. Jack Henry (JKHY) is our second new entry this issue. The stock appears to be shrugging off its difficulties and is behaving more in line with its excellent fundamentals. Teleflex (TFX) had the most difficult two weeks but now offers an even higher degree of value. Sigma-Aldrich (SIAL) continues the sterling performance it has displayed all year. A move up in the rankings is more than justified. McDonald's (MCD) isn't flashy but the Golden Arches is a steady producer. We still like their second half prospects. Sysco Corp (SYY) has had a rough year. Their payout ratio is at the top end of our comfort zone and their P/E is high but the charts say they have turned. Pinnacle West (PNW) and Pfizer (PFE) have moved into their Rising Trends and out of the rankings. This is what is supposed to happen.

The Hulbert Financial Digest ranks IQ Trends the number one investment newsletter out of the 165 letters surveyed for risk-adjusted returns for the previous twenty years. Investment Quality Trends also qualified for the Total Return Ranking for twenty years. What is important to note is that IQ Trends achieved its returns with about 24% less risk than the Wilshire 5000. Beyond the obvious that superior returns with less risk is desirable, less risk equates to less volatility and therefore generates higher compound rates of return over time. If you are interested in accessing Kelley Wright's newsletter, to post those kinds of gains yourself, go to www.IQTrends.com.

24 Winners Earning Fifty Cents or More on the Dollar.

by Natalie Pace, NataliePace.com CEO & Founder, and top-ranked stock picker. Includes our popular Hot News on Cool Stocks list, featuring...

24 GREAT Featured Companies, racking up returns, which keeps the companies featured in NataliePace.com at the top of Annualized Returns, with 50%, according to TipsTraders.com.

Adds:
We added Time-Warner to the Hot List.
We added eBay to the Watch List.
We have seven companies highlighted on our Cooling Off List.

September is historically the month of negative returns. True to form of the season of the doldrums and volatility, some of our "hottest" performers are actually on the Cooling Off List. Also, most of the stocks highlighted for your consideration are on the Cooling Off list.

Look for Back to School Stock sales to add to your portfolio at the end of the month. It is not a great time to sell anything either, especially when the Santa Rally and the pre-election year rally are waiting in the wings for their numbers!

Speaking of numbers, below is the hit count on the Internet. It's hard to imagine that just six short years ago, we were dreaming of a day when you could watch TV shows on your computer, and now you can watch them on your iPod. Steve Jobs and Bill Gates envisioned a world where everyone had their own personal computer, and now they are now creating a world where everyone has their own handheld device. Will Microsoft succeed in putting music on the cell phone? Will Apple continue to reign supreme as the world's music device of choice? Stay tuned for the October NataliePace.com ezine to get the perspective of Crush Management Principal, Jonathan Daniel.

If you don't know Crush, they manage Fallout Boy, Panic! At the Disco and Cobra Starship, who were the stars of the Video Music Awards last month (August 2006). Crush has succeeded in making a revenue model in a world of free downloads, and Jonathan Daniel is one of the geniuses who was first to capitalize on the trend.

Source: comScore Media Metrix
(Note: comScore Media Metrix is a division of comScore Networks, Inc.)
Audience: All Persons at U.S. Home/Work/College-University Locations

Source: Odyssey Advisors.

EDUCATIONAL OPPORTUNITES AND INFORMATION:

1. Higher Interest Rates? The Federal Open Market Committee paused in August, after raising interest rates 17 consecutive times. The federal funds rate remains at 5 Å%. The next FOMC meeting is scheduled for September 20, 2006.
   
   "Readings on core inflation have been elevated in recent months, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time."
   
   The Committee judges that some inflation risks remain, and that additional firming may be needed. Meanwhile crude oil prices continue to increase, as do gasoline prices, and the pressure on all companies that have transportation, trucking and/or shipping tied to their profits.
   
   Click to review the press release from the August 8, 2006 meeting. Be aware that sellers tend to dominate the boards with each interest rate hike.
   
   The tentative meeting schedule for the rest of 2006 is: September 20, October 24, and December 12, 2006. In 2007: January 30-31, 2007, March 20-21 (Tuesday-Wednesday), May 9 (Wednesday), June 27-28 (Wednesday-Thursday), August 7 (Tuesday), September 18 (Tuesday), October 30-31 (Tuesday-Wednesday), December 11 (Tuesday), January 29-30, 2008 (Tuesday-Wednesday). The fact that the Federal Open Market Committee has decided to increase the number of 2-day sessions from two to four is an indicator that there is double the concern over managing the economy in the coming months and years.
   
   
2. 24 BIG WINNERS which keeps the companies featured in NataliePace.com at the top in Annualized Returns (according to TipsTraders.com), with 50% gains each year.  This hot news article still has the proud honor of featuring twenty-four companies that have posted gains for investors (some hot/some cool), versus just ten that have gone in the opposite direction the news would indicate. Of the five that have gone south, we were most concerned with Krispy Kreme, but with the hiring of Kraft Foods veteran Daryl Brewster as president and chief executive that company seems to be sweetening up, and has even added doughnuts to Coffee Bean's pastry case. Brewster's team is selling franchises in Asia. Turnarounds are difficult to stomach, even the turnaround of the most popular sweet on the planet. Lawsuits and challenges remain. It's a question of whether or not you believe in the brand, now that the executive suite is in better shape. RELM Wireless produced 20% gains since our last Hot News update. Sirius Satellite Radio is ripe for more gains, and we have highlighted six companies as potentially attractive to put buyers. Check back in October for any Fall Back to School Stock Sales. Still love Jet Blue as a consumer, but the sector is in trouble until they figure out how to fly solar-powered planes. Start looking now for stocks to buy when September ends.  

Bottom Line: NataliePace.com is providing you with news and important information, but you need to consult your financial planner to determine your best strategy for using the information. That will depend upon your age, your retirement plan, and your risk tolerance and portfolio diversification. The stock portion of your portfolio is a higher risk classification, where you ideally seek to gain higher returns. As the NASD said in a recent investor alert, don't bet the farm on the stock market. NataliePace.com is NOT a brokerage and doesn't operate or act like one. We are an online media service with a mission of providing the news and information you need to make better choices in business, investing and personal prosperity. Always consult a trusted financial professional before buying or selling any security.

Full disclosure: I have listed the companies that I own under the column "NP OWNS?"

Hot Stocks
Investors who "never pay retail," note that highlighted stocks are trading at their 52-week lows or near the price featured in NataliePace.com's article. This may be a good buying opportunity. The companies that are listed below which are not highlighted may not be in a good buying range, but they appear to be poised to continue performing well. There are never any guarantees in life, and all stocks are risk-based investments. Consult your certified financial planner before making any changes to your investment strategy.

Yahoo and Verisign were taken off of the Hot News list and added to the Cooling Off Stocks list effective 8.1.06 and 9.1.06, respectively. Yahoo was 13% in the red, and Verisign's performance was flat. Sony and Sunoco both had great runs for the list! LifeCell posted over 180% gains before being added to the Cooling Off Stocks list.

Stocks to Watch
Great Companies. The companies that are listed are worthy of watching and/or buying in on opportunity (if you believe the news). There are never any guarantees in life, and all stocks are risk-based investments. Consult your certified financial planner before making any changes to your investment strategy.

Cooling Off Stocks (that may be in Profit-Taking Range).
Note: We may look to add some of these companies to our Hot News list again, if the price point should become attractive and if the outlook for the company improves. The companies listed in bold have recently been added to this cooling off list and/or may be currently poised for a continued decline in value. Investors who have them in their portfolio should read the recent news and consider whether it is time to sell and take profits, dump losses, short the position and/or simply weather the storms, while keeping the company in their long-term portfolio. At any rate, always consult your certified financial partner before making adjustments to your portfolio. (The stocks on this chart are expected to go down in price.)

ADP and Gevity Human Resources were taken off the Cooling Off list effective 8.1.06.

Please note: NataliePace.com does not act or operate like a broker. We are a media and information center. This article is intended to educate and inform individual investors, and, thus, to give investors a competitive edge in their personal decision-making. The publicly traded companies mentioned in this article are not intended to be buy or sell recommendations. ALWAYS do your research and/or consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies.

IMPORTANT DISCLAIMER: Information has been obtained from sources believed to be reliable however NataliePace.com, LLC does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

NOTICE: NataliePace.com is NOT a stock brokerage service, and does not operate or act as one.