STEVE FORBES SAVES CALIFORNIA!

In an exclusive, one-on-one interview with iSophia's founder and CEO, Natalie Wynne Pace, Steve Forbes, one of the most respected financial minds in the world, saves California, examines China's potential as the next great economic wonder and tests the staying power of the latest stock market rally.

Did you know that Mr. Forbes is the only writer to have won the highly prestigious Crystal Owl Award four times, a prize given (in past years) to the financial journalist whose economic forecasts for the coming year proved most accurate? Whether you're interested in knowing if America's economy is back on track (or poised for another October stock market derailment), if China is still the worldwide economic wonder, how Mr. Forbes would save California from its $38 billion budget crisis, or just curious about one of the most well-known faces in America, this exclusive peek into the man who would be America's President, may be the most important personal investment you make this year.

Steve Forbes' political platform didn't win him the presidency in 2000, but his economic acumen is respected worldwide. His flat tax is being implemented in Eastern Europe, and considered in many emerging countries (including China). Steve Forbes was the Chairman of the Board for International Broadcasting (BIB) during the democratization of Eastern Europe, and Poland's Lech Walesa considers him to have been critical to the struggle against communism. Wonder what Mr. Forbes would do to save California, and which candidate he endorses? Find it curious that all three of his annual CEO conferences have been held in Asia? So were we. We tackle those issues (and more) in iSophia's exclusive interview with Mr. Forbes, the man whose name has become synonymous with money. (Rub this interview and make your money wishes!!)

N. WynneÑThis is the third annual Forbes Global CEO Conference, and all of them have been in Asia--2001 in Singapore, Hong Kong in 2002 and now Shanghai in 2003. It seems clear that you are very interested in the business opportunities in the region. What goes on in these CEO conferences?

S. Forbes--We will be discussing the business opportunities in China, the challenges of Asia, as well as the broader global economy. As you know, at conferences like this one, many fascinating things happen outside the conference hall.

N. Wynne--Earlier this year, before SARS, China was the great world hope for economic growth, predicted to grow in the upper single digits, while the rest of the world's economies remained anemic. What is going on in China? How is it growing, while the rest of the world's economies are contracting?

S. Forbes--China's role is expanding because the country has thrown off its feudalist and totalitarian past. While it's an authoritarian nation now, one can hope that it will evolve like Taiwan and Hong Kong did. China is where Germany was in the 19^th century--destined to become a major power. The question is, "Will it take a liberal or authoritarian path?"

N. WynneÑBefore investors start pumping money blindly into Chinese ADRs, should they be more aware of the aspirations and challenges of China, particularly in the world of business, finance and geopolitics? What are the challenges of China, and what is your prediction for China's economic growth this year? Will it round out 2003 with the 7% GDP growth that was predicted earlier?

S. Forbes--Well it will certainly continue to grow. There's a great controversy about how the Chinese measure growth, but, when you go to Shanghai, it's easy to see that the skyline changes monthly. With regard to challenges, China has to deal with tens of millions of people moving from one area to another, its state-owned industries are winding down, its banking industry is decrepit and it must make sure that local party apparatchiks don't crush entrepreneurs. There is no end to the challenges and headaches.

N. Wynne--The speakers scheduled for the 2003 Forbes CEO conference (this September) are a Who's Who of world leaders: His Excellency Han Zheng, (Mayor of Shanghai of the People's Republic of China), Caspar Weinberger (Chairman of Forbes), you, and then there is Guy Kawasaki, CEO of Garage Technology Ventures. Why is the former "Chief Evangelist" for Apple included in this elite group?

S. Forbes--Because we want to have an array of people who have had a variety of traditional and entrepreneurial business experiences. What developing countries don't appreciate is that innovation comes from people they have never heard of. We see this in the U.S. all the time. Who had ever heard of Michael Dell or Bill Gates 20 years ago? Now they are household names.

N. WynneÑEconomists are saying that the U.S. GDP appears to be on track for 4% to 6% annual growth this year. Are those figures low or high?

S. ForbesÑIn real growth this year, the US will do about 2.5 % or so, with the second half stronger than the first. Next year it will be 4+%, in real terms. It's finally for real. It's been awhile.

N. WynneÑDo you see signs of increased capital spending?

S. Forbes--Yes. Definitely. You see it in equipment orders. Even in Internet technology, there are signs of life. This recession was so distinctive because of the collapse in business capital spending.

N. WynneÑDo you think that current consensus for corporate profits are too high, too low or right in line?

S. Forbes--Profits have come in fairly well. I think next year, they will be above many people's expectations. [iSophia note: Hey gang, this is from the Owl. Take heed!!] Companies are lean. It was painful getting to that state. It's a much more flexible, healthy environment than it was three years ago.

N. Wynne--When will interest rates begin to rise, and how fast?

S. Forbes--They already have, certainly in the 5- to 10-year treasuries, in the mortgage market. You have to put this in perspective, however. Rates still are where they were 40 years ago. The short-term rates will move up, but that will be in response to growth. It won't be a bad thing.

N. Wynne--How will interest rates affect housing, the hottest sector of the economy for the last three years?

S. Forbes--If there are more jobs, the economy is growing and the stock market is improving. People will be in a position to pay for a house.

N. Wynne--Are REITs too leveraged? Will rising interest rates place an unexpected burden on this sector of the market?

S. ForbesÑIt depends on what sectors and what parts of the country they're in. In real estate, it's location, location, location. There are always people who are overextended. In real estate and housing, there is a spread of risk. In the past, during recessions, housing and commercial real estate got slammed. This is the first time that housing and commercial real estate haven't suffered the blows past downturns have delivered.

N. Wynne--Is that all Alan Greenspan?

S. Forbes--It's mainly due to technology and innovation in the marketplaceÑthe creation of instruments that could put mortgages and debt instruments together and spread out the risk. Derivatives has a scandal every few years. Freddie Mac--all is not well on that front. You could get something that can explode, but you don't get rid of autos just because people drive carelessly. You improve the rules of the road, and the enforcement of those rules.

N. WynneÑPolitics have come center-stage a little early this year, with the California gubernatorial recall election. Before we talk about the California crisis and your ideas for fixing the problems, I'm interested to know the status of your own political platform. Now that we are three years into the new millennium (and beyond the 2000 presidential campaign), would you change any of the ideas you laid out in your 1999 book, A New Birth of Freedom (Regnery, 1999)?

S. Forbes--I think my two [presidential] campaigns helped set the foundation for reform. The flat tax has been adopted by Russia and by the Baltic States. Ukraine is putting it in. The Chinese ministry is actively exploring the idea. My [presidential] campaign helped bring social security reform to the House and Senate floor. Personal retirement accounts are something that can be discussed now, the same with medical savings accounts. I'll continue to be a political agitator. Someone has to keep pushing these guys.

N. WynneÑI was surprised to learn how active you've been in world politics. As the Chairman of the bi-partisan Board for International Broadcasting, you helped to free Eastern Europe and were praised by Lech Walesa as being critical to the struggle against communism. What would you do to fix California's $38 billion dollar fiasco?

S. Forbes--California has a Gross Domestic Product of almost $2 trillion. The state has immense wealth--over $8 trillion. It has great universities. California needs to overhaul workers' compensation, which is destroying small business. It's got to get rid of paid family leave. Small business cannot afford that. Most important is reducing the small business owner's taxes. Then it has to tackle the legal system. Texas enacted great reforms this year. If California made those kinds of reforms, there'd be no reason California couldn't come back. All of us have a stake in California's recovery. It's so big.

N. Wynne--On September 3, 2003, five candidates met to offer their rescue plan for California's $38 billion budget deficit. The Green Party candidate, Peter Camejo, wants to see California become the world leader in renewable energy. Lt. Governor Cruz Bustamante thinks that oil companies are gouging Californians, like the gas companies did in 2001. Arianna Huffington, an independent, would have corporations pay their fair share, and free Californians from "oppressive special interests." California Senator Tom McClintock (Rep) blames the "spending lobby" that controls California government. Arnold Schwarzenegger has surrounded himself with business leaders, and believes that creating jobs and keeping business in California will solve the budget deficit. Do you support any one of the California gubernatorial recall candidates?

S. ForbesÑArnold Schwarzenegger.

N. WynneÑRe: the dollar vs. the EuroÑDo you see the dollar strengthening, weakening or continuing status quo over the next six months?

S. ForbesÑStatus quo.

N. WynneÑThanks for giving us a piece of your mind, Mr. Forbes. I trust that our readers will use it to their good fiscal health!

STEVE FORBES: Steve Forbes is President and Chief Executive Officer of Forbes and Editor-in-Chief of Forbes magazine, the leading U.S. business magazine, and its international edition, Forbes Global, which together have a worldwide audience of nearly five million readers, topping one million in total circulation. In 2003 the company launched Forbes China and Forbes Korea, which join with Forbes Global and the Japanese edition, Forbes Nihonban, for a combined circulation of 272,000 in Asia.

Mr. Forbes assumed his position in 1990. Since that time, Forbes has expanded, launching a variety of new publications and businesses. They include: Forbes FYI, the irreverent lifestyle supplement; Forbes Global, the magazine's international publication, introduced in 1998; a Japanese-language edition of Forbes; Forbes Brasil, a Portuguese-language edition serving Latin America's largest economy; and the Gilder Technology Report. In 1997, Forbes entered the new media arena with the launch of Forbes.com. Now receiving an average of four million visits a month, it has become a leading destination site for business decision-makers and investors.

Other company divisions include: Forbes Management Conference Group; and Forbes Custom Communications Partners. Mr. Forbes is also Chairman of the company's American Heritage division, publisher of American Heritage magazine and two quarterlies, American Legacy and American Heritage of Invention & Technology.

Mr. Forbes writes editorials for each issue of Forbes, under the heading of "Fact and Comment." A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by USX Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate.

In both 1996 and 2000, Mr. Forbes campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Mr. Forbes continues to energetically promote this agenda.

Steve Forbes received a B.A. in history from Princeton in 1970. At Princeton, he was the founding editor of Business Today, which became the country's largest magazine published by students for students, with a circulation of 200,000. The magazine continues to be published today by Princeton undergraduates.

Mr. Forbes holds honorary degrees from: Lycoming College, Jacksonville University, Heidelberg College, Iona College, Kean College, New York Institute of Technology, Lock Haven University, Westminster College, Francisco Marroquin University (Guatemala), Sacred Heart University, Centenary College, Pepperdine University, Lynn University, Lehigh University, New Hampshire College, Siena College, Universidad Espiritu Santo (Ecuador), Lincoln College, New Bulgarian University, Spring Arbor University, Seton Hill University, and Raritan Valley Community College. Mr. Forbes serves on the boards of The Ronald Reagan Presidential Foundation, the Heritage Foundation, the National Taxpayers Union and The Foundation for the Defense of Democracies. He is on the Board of Overseers of the Memorial Sloan-Kettering Cancer Center and serves on the Board of Visitors for the School of Public Policy of Pepperdine University. He served on the Board of Trustees of Princeton University for ten years.

Is now the time to invest in the world's fastest growing economy? Article and Stock Report Card by N.W. Pace, founder and CEO, iSophia

With a billion workers, Silicon Valley's cutting edge 3G wireless technology, an explosion in cell phones, factories, urban expansion and the world's largest pool of labor, China was the land of opportunity and the talk of CNBC earlier this year. SARS scared off American investors and travelers for a short time, but business is almost back to normal now. Forbes Shanghai CEO summit went according to schedule. Hotels are getting more bookings. Technology managers are flying back in to oversee their factories and business deals. The automotive industry, technology and fashion are pumping money into China, building factories and expanding their sales outlets, but should investors follow suit? If so, which companies are the best, the brightest and the safest? Is investing in the Shanghai stock exchange as safe as investing in NASDAQ or NYSE, or are there rules, regulations and business practices that the average investor should be forewarned about?

Over the last two years, during the U.S. recession, Silicon Valley's cutting edge technology went straight to China, while earnings-starved American businesses slashed capital spending. With so much land and so few telephone landlines already laid, Asians have embraced cell phones and Wi-Fi, two markets that are exploding abroad. The Shanghai skyline is changing every day. So why are the institutional investors keeping their money in Tommy Hilfiger, which has 74.5% institutional investors, instead of China Telecom, at 1.1% institutional investment?

As Steve Forbes says:

What pitfalls should the US investor consider before buying Asian ADRs? On one hand, China's skyline is changing, while on the other hand, most of the country's population still lives "in the 1800s," according to visitors. Factory workers are not well paid, legal experts with experience in the region acknowledge that China doesn't believe in copyrights and human rights take a backseat to the government's policies. American managers report corruption in local quarters as the cost of doing business.

What can an investor do to lower the risk? According to Chinese financial experts, the Hong Kong, Singapore and Taiwan stock markets are older, more established and have far more reliable corporate governance and disclosure policies than the newer Shanghai Stock Exchange. Oddly, though Taiwan has traditionally been a political thorn in great China's foot, over the past few years, economically, Taiwan and China are more and more becoming economic partners. Taiwan companies are building factories in China, and employing Chinese workers. When a Taiwanese investment banker was asked to explain this strange contradiction, he replied, "It's all about money!"

Certainly, with a new, money-friendly Chinese policy, with the fastest growing economy in the world, and the globe's largest pool of workers, not even SARS has significantly slowed the Chinese growth machine. Earnings are up in Chinese telecom companies, as is share price. Many of the ADRs listed in this week's report card have outpaced NASDAQ's recent rally: China Telecom is up 47.6% since October, China Unicom is up 43%, Tommy Hilfiger has almost doubled, AU Optronics Corp. has more than doubled, as has Chartered Semiconductor Mfg. AU Optronics, the manufacturers of TFT-LCD panels that are used in flat panel display technology, is expected to turn in 2Q earnings of 57.5% growth. AUO could be one of the brightest stars in the Asian sky this season.

Click here to review this week's iSophia report card on Asian-based American Depository Receipts (ADRs), an updated report card from last March, 2003.

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Girl's Guide to Brokers:

Which Broker is Right For You? How Do You Pick a Good One? By Anne Kennedy.

Which broker house is right for you? That depends on your investment needs. The full-service houses, such as Morgan Stanley, Smith Barney, Merrill Lynch, Goldman Sachs, etc., cater to larger accounts, have more personalized services and put their financial advisors through more rigorous training. They also require a significantly higher minimum deposit. The accounts available to "day-traders" and the average individual investor tend to offer lower transaction fees, and less personal service tendered by less experienced brokers. More and more, well-established brokerages, like Merrill Lynch, are offering both managed care and self-directed trading at a lower fee. Finally, the best broker for you might be an independent investment advisor. (See the following article, "WIN 10: If you've got over $1,000,000 in assets, Why Not Choose a Money Manager Instead of a Broker"? By Paul Woods, for more information.)

Brokers are your partners, but they aren't necessarily prophets and seers. A broker is the entry-level position in the field. Brokers have the least amount of experience, education and certifications. Certified Financial Planners, experienced financial advisors and executives at respected brokerage houses have more experience, more education and better access to earnings and other important stock evaluation criteria. Many beginning investors don't realize this, and give their broker (the young, inexperienced, entry-level employees) far too much power and authority. Our best advice is to interview your broker, CFP or financial planner, about their experience, investment style and market performance, as well as the time and commitment they will devote to give your account. It is, after all, your money!

Seven Things to Find Out About Your Broker or Certified Financial Planner BEFORE you open your account

1. Years of experience handling financial portfolios and/or trading stocks.
2. Education (university)
3. Education (financial sector)
4. Investment style
5. Research criteria
6. Portfolio performance
7. Years of employment with current company (and where he/she worked before)

Other tips:

1. Do your own research on the companies your broker or financial planner recommends BEFORE you sign any payroll withdrawal slips! See if you agree with their recommendation. Ask questions about the concerns you might have. For instance, a tip on Bristol Myer Squibb might mean the broker is a value shopper, i.e. he/she likes to shop when the share prices are on sale. The broker waits for weakness (essentially a dip in share price) to buy into "stable" companies. BMY restated earnings and invested $2 billion into ImClone's drug, Erbitux, (the one that was rejected last December by the FDA, but has been refiled for fast track approval now). If the broker isn't aware of BMY's trouble spots, you might have concerns about what else the broker doesn't keep up to date on. If the broker is aware of the problem areas of the company, he/she should have valid reasons for buying BMY anyway. At any rate, by asking the questions, you've just experienced firsthand what your broker or certified financial planner's investment style, research criteria and market experience are.
   
   
2. Realize that the more success and experience your broker has, the higher up on the ladder she will rise. If you're a Goldman Sachs' client, you are paying for more experience. If you are spending under twenty dollars a trade and placing orders by phone to someone whom you've never met, that person may not have a college degree, and might have barely passed the qualifying tests. If you're trading on-line, the fees are lower, but you are pretty much on your own! Better get the numbers and the vernacular right!
   
   
3. Don't assume that your broker wants to succeed as much as you do! The position has a very high rate of turnover--especially in bear markets, and the broker may be pressured to keep you trading and depositing more money. Many brokers are paid on commission, and some hock certain mutual funds over others simply because the company pays a higher commission. (Ask your broker how she's paid!!)
   
   
4. All up and down the experience scale, there are unseen and/or subtle pressures for brokers and financial planners to push certain publicly traded companies over others. It's illegal for analysts and brokers to be swayed by perks, but, as we've seen over the last two years, that doesn't stop some people from succumbing to the temptation.

Now that you've gotten to know the broker a little more intimately, below are the web-sites and the phone numbers on nine major brokerages.   Remember to watch out for hidden fees. Some brokerage houses CHARGE you for NOT trading.  Brokerages are not usually the best place to park money, unless you're a trust fund baby.

+Most brokerages charge a percentage (instead of the flat fee) for trading a large amount of shares.

WIN 10:

If you've got over $1,000,000 in assets, Why Not Choose a Money Manager Instead of a Broker? By Paul Woods, President & CEO of Odyssey Advisors, LLC, www.odysseyadvisors.com. 310.568.4711

Why does the word "broke" appear in the word broker? Should you trust a money manager to handle your assets instead? Below are ten facts to help you answer that question, and a few tips that should help, no matter which choice you make.

1. Investment advisors can be less expensive with an incentive to get better results. Investment advisors are paid differently.  Brokers are paid by commission and have no stake in the subsequent performance of the investment.  Investment advisors charge a quarterly fee based upon the value of the portfolio.  The only way they make more money is if the portfolio increases in value.  When all commission charges are added up, an investment advisor usually costs less.
2. More control. Investment advisors usually work on a discretionary basis.  They work within asset allocation and investment guidelines set by the client, but do not usually contact the client before executing specific purchases and sales.  Brokers usually obtain client approval before making trades. The client maintains more control with the broker. On the other hand, however, trades that require fast action may suffer. You'll have to make one-on-one contact with the broker BEFORE the trade can be executed. No broker will execute a trade that is left on voice mail. Most advisors won't trade on voice mail instructions either, but the advisor has discretionary approval to act without your order, if she thinks it's in your best interest.
3. It does take $$ to make $$. Investment advisors usually work with larger pools of money.  Minimums for a managed portfolio range from $1mil to $10 mil, depending on the advisor.
4. Are you a Volvo or a Ferrari? Do you prefer safety or performance? Investment advisors usually have an investment bias. You can play to win or play it safe.  Portfolios managed conservatively will behave very differently in up and down markets than portfolios managed aggressively.  Everyone wants a portfolio that produces a lot of income, goes up faster than the market, and won't drop in down markets.  The problem is that investors have to live in the real world and have to choose an investment style that they can live with.  It is very important to interview different advisors and find one whose style suits a client's objectives.
5. No one has a crystal ball.  Just because investment advisors have more experience in this area, don't assume they can predict the stock market or know which stocks are going up or down.  Don't expect them to get you in at the bottom and out at the top.  (The goal is to get as close as possible!) If someone pretends otherwise, they're lying.  
6. No one bats a 1,000. If you plan to invest in equities and hire an investment advisor, give them a few years. Don't panic if they have a bad quarter or a bad year. Everyone in this business makes their share of mistakes.
7. Watch out for scam artists. I see too many people who don't want to live in the real world.  It's important to have realistic investment objectives.  Long-term returns on stocks are around 10% per year, which will double your money every 7.2 years.  If someone claims to have magic insights that will double your money a lot faster, it's usually a scam that pays them huge fees.
8. It's not a Profit Until You Take It. There's a story circulating about a little old lady who was heavily invested in NASDAQ, who took a loan on the value of her portfolio and started building her dream home in late 1999. In 2001, when her assets dwindle to almost nothing, the home had to be foreclosed on. The retirement plan is still in critical care. The woman, age 68, is having difficulty finding a job. The Adage is: "Buy low, sell high." Not, "Buy low, and get a loan against your assets when the values are high." Let your investment advisor take profits!
9. It's not a Loss until you sell it. It looks bad on paper. In fact, it stinks so much that you might have trouble breathing. But, don't sell simply because you have a hunch that we're heading toward an apocalypse. All sectors have their cycles. Bull markets do follow bear markets. Real estate does recover after natural disaster and recession, especially in desirable cities, like San Francisco, New York, Boston and Los Angeles. Selling low in a panic is, more often than not, like lighting your own money on fire and watching it burn.
10. Keep cash on hand to get you through the tough times. The worst situation to be in is one where you are forced to sell for a horrendous loss, simply because you need cash to pay for essentials. Make sure that your investment advisor or broker keeps a percentage of your nest egg liquid.

5-Star Bargain Hunters:

Ready for some relaxation & recreation at a real reasonable rate? The Canadian/American exchange rate couldn't be better for the American wallet, and Vancouver has Whistler, stunning views, world-class service and cuisine and the Sheraton Vancouver Wall Centre, one dream come true of luxury and architecture.

Sheraton Vancouver Wall Centre One Wall Centre Vancouver, BC 2001 Skyscraper of the Year Award

Americans can stay at the Sheraton Vancouver Wall Centre, 2001's Skyscraper of the Year, for less than $160 US/per night! So, on your way up to Whistler, consider adding on a few nights in one of the world's most cosmopolitan cities.

With the Canadian/US exchange rate so favorable for Americans (1.3546 as of 9.28.03), now's the time to enjoy all that Vancouver has to offer. At just three and a half hours from Southern California, Vancouver world-class accommodations at rock bottom prices is the perfect weekend retreat, birthday or anniversary celebration, office party, conference or just a good excuse to see one of the world most stunning feat's of architectureÑthe Sheraton Vancouver Wall CentreÑfor just $154.29 US per night. (Less if you have an AAA card or other discount offer.)

Winner of architecture's most prestigious honorsÑ2001Skyscraper of the Year, the Sheraton Vancouver Wall Centre is now the most prominent building in the Vancouver skyline, and world-renowned for innovative design and functionality. In order to meet city view corridor requirements, the architects and Design team (Peter Busby of Busby & Associates Architects) dreamed up a 48-story elliptical tower, which is pointed at both ends, clad in blue glass and has a sloping roof. The tower is stabilized during high winds by water movement in the roof. The panoramic views of the Pacific Ocean and the Vancouver skyline are unparalleled. Service is everything you've come to expect from 5-star accommodations. All this at the price of a Holiday Inn, thanks to a favorable US/Canadian exchange rate.

So what about the EATs? Indigo at the Sheraton Vancouver Wall Centre is worthy of a meal, and the breakfast buffet at Café One is a great, quick way to start every morning of your visit.

At Indigo, my guest, Stephanie Hartman, gushed over her seared ahi tuna and mashed potatoes that were revved up with a dash of wasabi. I was in an autumn stew mood, and the fig and espresso braised bison shank with Gorgonzola polenta, ancho chili and orange-rosemary gremolata was tender, adventuresome and fireplace sensuous. Over the next few days, I would try out the Caesar salad with Parmesan scone, the duck rillette with Limoncello emulsion and the crab cakes served on jicama slaw with avocado salsa and chipotle dressing. All were as delightful as their descriptions, and at prices that made my ATM card sing! Appetizers at Indigo range from $7-$14 Canadian, or $5.17 - $10.33 US. Entrees run $15-$32 Canadian or $11-$24 US. Oh La la!

As for desserts, avoid the tiramisu. It tasted of freezer burn and had factory-made written all over its ready-mold shaping. The sorbets, on the other hand, are wickedly rich and fresh, definitely the best sorbet I've ever hadÑbar none! Better than ice cream! Don't miss the warm, decadent chocolate molten lava cake. (It comes with a scoop of sorbet. Yum. Yum!) Be sure to order this dessert with your entrees, as it takes 20 minutes to prepare.

As for Café One's buffet breakfast, my rule of thumb on the road is: skip the buffets. The eggs are usually runny, the bacon burnt and wilted and the service makes Jack in the Box seem luxurious. Throw out all the rules with Café One, however! Maybe it's the British influence on the Canadians, but the bangers (sausages) were inviting, the scrambled eggs fluffy, the scones, breads and pastries were delightful and the broiled tomatoes dusted with basil and olive oil were such an added treat! All together, the meal was much better than the best omelet I've ever had, and the best part of every morning in Vancouver! The service at Café One's buffet is equally impressive.

The Sheraton Vancouver Wall Centre also has pampering down to a fine art. I've visited some of the most well known spas in America, and no one does it better than Vida Wellness Spa at the Wall Centre. Just a manicure was enough to extract all the LA rush-hour traffic out of me. Call 1.800.663.9255 for reservations.

Sheraton Vancouver Wall Centre. 2001 Skyscraper of the Year.
1088 Burrard Street
Vancouver, BC Canada V6Z 2R9

Luxurious, elegant, sophisticated architecture. Hospitality taken to the level of art. Dazzling views. Extraordinary, urban oasis. Shorefront roller blading near by. Sailing. State of the art technology. DSL links. Salons. Zen massage, nails and facials. Breakout rooms for conventions, seminars, corporate meetings and important celebrations. Bar Indigo. Bar One: corporate, after work drinking. Café One: best breakfast buffet in the world. Cracked Ice Lounge..

Pasta, Watermelon and Soy Beans:

Eating to Stay Alive. Prostate cancer attacks ONE OUT OF EVERY SIX MEN. If you know and love a man over 45, this reprint of an online chat with Leslie Michelson, the CEO of the Prostate Cancer Foundation, is a MUST READ. Investors will also gain valuable insight. [Biosafe is developing an at-home PSA test that, according to Leslie Michelson, is expected to be ready for market by Father's Day.]

Chat Room Conversation 8/27/03

LDM-CEO- Good morning everyone.

Paul- Good morning

Mickey- Buenas Dias.

SantaMonica- Mr. Michelson, perhaps you could kick this discussion off by stating some of the reasons prostate cancer is such a huge problem for society.

LDM-CEO- Prostate cancer is the most common cancer in America, attacking over 220,000 men each year. To put this in context, a man is 1/3 more likely to get prostate cancer than a woman is to get breast cancer. The most disturbing aspect, however, is that as the baby boomer men reach their target zone for prostate cancer, beginning at age 50, the number of new cases will increase to 300,00 per year.

SantaMonica- Why is awareness so low?

LDM-CEO- I think the awareness is low for several reasons. First, since breast cancer attacks 5-10 years earlier than prostate cancer, baby boomer women were being attacked by the disease earlier than baby boomer men. Second, men are much less likely to discuss health matters than women are. Finally, discussions of male sexuality are still a taboo in our society.

Natalie- Is there something men can do to lower the risk?

LDM-CEO- Extensive research has been done on risk reduction. The strongest data, surprisingly, show that lycopene, particularly, which is found in cooked tomato products, can result in 35% reduction in prostate cancer. There is also a reason to believe that diets low in fat and high in soy might reduce prostate cancer risk.

[iSophia note: Lycopene is also found in watermelon and pomegranates. Think RED!]

Rob- How effective is the PSA exam in detecting prostate cancer?

LDM-CEO- On the issue of the accuracy of the PSA test, PSA is a very sensitive test and health authorities encourage all men over 50 and African Americans and men with a family history to have the test annually over the age of 40.

Paul- I have a friend who liked his doctor because he had small hands and thin fingers. Are there any alternatives to traditional detection techniques?

LDM-CEO-The most effective detection techniques include both the PSA test and the digital rectal exam. Although the DRE is not terribly comfortable, the discomfort is momentary and fleeting. Good morning, I see there are a few more people who have joined the chat session.

MBK- I hate the DRE. Isn't the PSA by itself good enough test? If it is normal, why suffer the "fleeting discomfort?"

LDM-CEO- There are some cases where a patient has clinically significant prostate cancer that is detected by the DRE even with a very low PSA. That is why the medical authorities recommend both tests.

Natalie- Is there any concern about the over-effectiveness of the PSA exam? That it is detecting insignificant cancer cells, resulting in surgeries that are done prematurely?

LDM-CEO- That is a very good question. There is reason to believe that there is likely to be some over detection of prostate cancer that will not become clinically significant. That is why there are other tests such as the biopsy and gleason sporing that are used in conjunction with the PSA test.

Natalie- Does a man have to ask for the biopsy and gleason sporing, or is this routine procedure?

LDM-CEO- Both biopsy and gleason scoring are standard after a high PSA or a significant finding on a digital rectal exam.

Lewis- I had the surgery to remove my prostate seven years ago. Since then, my annual blood tests have shown my PSA to be close to zero. Good news. My doctor tells me that the chances of my getting prostate cancer now are slim. Is that true? Do I still have to worry? I hear about people having the surgery and then having the cancer come back.

LDM-CEO- Approximately 40% of patients who have gone through first line of treatment, that is, surgery or radiation, have the cancers return. If you have seven years of zero PSA, the likelihood of the cancer returning is very low.

Natalie- Whew!

LDM-CEO- Nonetheless, you should continue to monitor your PSA as recommended by your physician, so in the off-chance that it does return, you will be able to treat it very rapidly.

Paul- I'm not sure it's worth living longer if I have to avoid fat and eat soy. Are there other ways to lessen the risk?

LDM-CEO- The data tend to show that lycopene in cooked tomato products has an even more preventive effect than soy or a low fat diet. I can't imagine that having to eat pasta with tomato sauce several times a week would make life not worth living.

MBK- My doctor took my blood test after he gave me the DRE and the PSA came back higher than the last time he took it a year ago. My friend who has prostate cancer told me that the physical exam could be the cause of the higher PSA. Is he right or is the doctor?

LDM-CEO- Your friend is right that the disturbance to the prostate caused by a digital rectal exam could increase the PSA. I frankly don't understand why physicians do the blood work after the DRE, except that is more convenient for their workflow. Yet, if you have an elevated PSA, you can get it rechecked without having a DRE in advance.

Susanne- Is the PSA higher after the DRE just because it stimulates hormonal activity?

LDM-CEO- I am not sure why the DRE can result in a higher PSA. - Most people think that is a result of the physical disturbance of the prostate, which results in more of the PSA being emptied into the bloodstream.

AYN- It seems prostate cancer does discriminate-from age, to race etcÉMy husband is not a big fan of going to the doctor. At what age should he be asking for the PSA or confirming that it's being done. He's 43 now.

LDM-CEO- - The medical authorities recommend an annual PSA test for all men over 50 and for African-American men or men with a family history of prostate cancer beginning at the age of 40. One of the things that we have been working on is an instant read at home PSA test. This would be very similar to a pregnancy test and cost between $15 and $20

AYN-Is that on the market?

LDM-CEO- WE expect to have it on the market by next Father's Day

AYN- Is it performed through a finger prick for blood??

LDM-CEO- Yes, the at home PSA test involves a finger stick and the dropping of three drops of blood onto the test strip.

Paul- Who makes the home PSA test?

LDM-CEO- The test is being developed and manufactured by Biosafe.

MBK- I am trying to lose some weight and I have been on the Atkins Diet. On that diet you can each as much red meat and cheese as you want. I have lost almost 20 pounds in the last 3 months. Is losing weight that way putting me at risk of getting prostate cancer because of the very high fat content of the diet?

LDM-CEO- You should consult with your doctor about any specific diet program you choose. Many physicians who used to object to the Atkins diet for these reasons have far less concerns about it, as a result of some recent clinical research.

Natalie- Disclaimer: Please note that Mr. Michelson is a CEO, not an M.D. Always consult your doctor before beginning any new diet and/or treatment program.

Paul- Which of the new drugs for treating prostate cancer appear to be the most promising?

LDM-CEO- The number of prostate cancer drugs under development has increased by over 50% over the past five years. It now totals approximately 150, many of which are very promising. One of our goals as an organization is to shorten the development path for all prostate cancer drugs.

Paul- How?

LDM-CEO- We are working with the FDA and the National Cancer Institute to establish surrogate markers for survival. One of the reasons that prostate cancer research takes so long is the good news that prostate cancer grows very slowly. Unfortunately, that makes it more expensive and time consuming to conduct research.

Susanne- Surrogate markers for survival? You mean looking for different antigens?

LDM-CEO- If we can establish a surrogate for survival as an increase in the PSA, that would greatly shorten the timeline. We have funded, on an accelerated basis, analytic work being conducted by Harvard researchers to analyze whether an increase in PSA predicts survival.We expect these results to be available for our scientific retreat on September 19-21 in Washington D.C. Assuming that there is a link between increase in PSA and survival, I think this would revolutionize prostate cancer research.

Susanne- But wait. I thought an increase in PSA was an indicator that the cancer is present?

LDM-CEO- Yes that is correct. But there is also a theory that after initial treatment, if a PSA returns, and rises rapidly that means the cancer has come back and is rapidly growing.

Merianne- How often should a man over 50 have his PSA checked?

LDM-CEO- Once a year.

MBK- How much money is being spent on research for new drugs to fight prostate cancer and what does your organization provide for this work?

LDM-CEO- In the ten years since our founding, we have provided more than $120 million to fund 1100 research programs in over 100 centers around the world. In addition, we have encouraged the federal government to increase its annual funding of prostate cancer research from $25 million to $500 million. In addition to this funding, we work very closely with all of the relevant parties, including the researchers, biopharmaceutical companies, and governmental authorities to accelerate the entire process.

Merianne- That's outstanding!

LDM-CEO- Thank you

Lewis- And has that extra funding had the impact you expected?

LDM-CEO- The extra funding has had a huge impact and we are more pleased than ever with the progress that has been made.

MBK- If half this country is men who will likely get some form of prostate cancer in their lifetime how come so little money, compared to fighting a war in a foreign country, is spent on the research?

LDM-CEO- I certainly agree that we, as a society, need to dedicate more of our collective resources to fighting prostate cancer, a disease which kills approximately 30,000 American men every year. - To put this in context, we lose more men to prostate cancer each 18 months than we did in the entire 20 years of the Vietnam War.

Chrissy- I hear there is a lot of red tape to go through in order to have promising drugs approved by the FDA.

LDM-CEO- The FDA serves a very important role in ensuring that only safe and effective drugs are approved for marketing. It takes on average $5- $800 million and 8 - 12 years to get a drug approved by the FDA. Although no one is suggesting that the FDA approve unsafe drugs, we are working with them and others to accelerate and simplify the approval process.

Deb- Are you working with anyone in Washington D.C.?

LDM-CEO- We are working with a wide array of people in Washington D.C., the National Cancer Institute, the American Society of Clinical Oncologists, and a wide array of other prostate cancer, cancer, and other disease advocacy groups.

Chrissy- How does prostate cancer compare with Heart Disease?

LDM-CEO- Heart Disease continues to be the leading killer in America.

Chrissy- What can we do as a society to reduce the percentage of those affected? I'm just one person and I feel helpless!

Chrissy- I agree.

LDM-CEO- There is no question that each of us can do something to help. We can all make financial contributions based on our capacity to give. We can all make sure that the men in our lives are tested. And we can encourage the government to be more proactive in this realm.

MBK- I want to put some heat under the people in Washington to reduce the 8-12 years that it takes to get a drug approved for use. What can I do, if anything, to speed up the process?

LDM-CEO- We would welcome you supplying us with your contact information, so that when the time comes to communicate the will of the people to the federal government, we can get back in touch with you.

Natalie- Where does one go to give financial contributions?

LDM-CEO- Please go to our website www.prostatecancerfoundation.org or mail contributions to our address: Prostate Cancer Foundation, 1250 4^th Street, Santa Monica, CA 90401

Chrissy- Do most insurance companies cover the screening process?

LDM-CEO- Yes, most insurance companies cover the screening process. - In any event, a PSA test is very inexpensive

Natalie- How can readers can get on your email distribution list. Is there an email address?

LDM-CEO I would welcome everyone to email me directly at lmichelson@capcure.org

Natalie- I want to thank everyone for joining our chat this morning. Please feel free to read the full interview with Mr. Michelson in issue 34 of the iSophia e-zine. This e-zine is available online at www.NataliePace.com, under Archived Editions.

LDM-CEO- I deeply appreciate everyone's participation and would welcome the opportunity to continue this dialogue by including interested parties in our distributions and perhaps setting up an additional time.

Rob-Chao!

Natalie-Eat pasta, cooked tomato sauce and watermelon (another source of lycopene)!

LDM-CEO- And Soy.

Natalie- This chat room is a private chat room that is available 24/7 to all members of iSophia, a leading Women's Investment Network. Many of our members use the chat room to discuss investments and stocks privately. If you're interested in becoming a member, please click on JOIN NOW on our web-site. You can also contact us by calling 310-399-0497 or by emailing npace@NataliePace.com Men are welcome, too! As you can see, we have a lot of men benefiting from our service.

Siren's Ball to Benefit Prostate Cancer on September 6th

For those of you who missed it, the Siren's Society put on a GREAT GALAÑGreat Balls of FireÑto benefit the Prostate Cancer Foundation last month, complete with Cirque du Soleil performers, autographed guitars, sports memorabilia, scripts and dates with the hottest of L.A.'s firemen. Stay tuned for more Siren's Society Gala benefits. 80 of L.A.'s hottest women gathered in one roomÑall for the good of society! Galas don't get much hotter than that.

Companies in the NewsÉ

News highlights, as reported by the most respected sources in the world. Alphabetized for easy reference.

This week's economic calendar includes the following reports:

• Wed. 10.01.03: Construction spending
  
• Thursday 10.2.03: Factory Orders and Weekly jobless claims
  
• Friday 10.3.03: Unemployment statistics

iSophia crystal ball? We don't have one, but if one of these reports will drag the market down for a day, look to Friday's unemployment stats as being the one. Our nation's top economists are saying that employers are spending on hard goods first, before adding employees. Rehiring will come as earnings and profitability continue to improve. Continued, but temporary, weakness in unemployment statistics is predicted, even though capital spending and earnings are getting back in the groove. That doesn't mean we're recommending that you wait for Friday to do your buying. These days, there is a lot of money pouring back into stocks, and $5 trillion waiting in savings accounts (at paltry interest rates) to swing the tide even further! Construction spending could be robust from the hot housing summer, and factory orders may be on the rise, as we enter the fourth quarter and holiday seasonal spending. (from the writers, not analysts, at iSophia) As the public gets wind of the seasoned investors' profits over the last year, they'll could start flocking to get back into the markets (to your gain)!

Apple Records wants a bite of Apple Computer's iMusic profits. In the "what was he thinking department?" Steve Jobs has again bitten off more than his company should have to chew by breaching an agreement he signed with Apple Records in 1981. What was the agreement? According to Tech Edge online e-zine, Jobs and Apple agreed that Apple Computer would NEVER go into the music business. Can you see Exhibit A in the courtoomÑa giant guitar with the Apple Computer logo or the silhouette of a teenager dancing to music from his iPod? Apple Computer isn't releasing the sum total of damages already paid to Apple Records to date, but reports put damages before the launch of Apple's online music store at $50 million (from the first lawsuit in 1981 and a subsequent lawsuit ten years later). According to Gartner Dataquest, Apple's computer market share has shrunk to 2.3%, while Apple Computer profits have rested largely on popular new productsÑlike the iPod and iMusic. Apple's online music store sold a million songs on its first day, and has reportedly just crossed ten million sold to date. Legal pundits agree that Apple Records was on solid ground on July 4th, when they filed a trademark infringement suit against Apple Computers, about a month after the launch of iTunes. It's less a legal issue, and more a matter of how much Apple Computers will have to payÑagain.

Brightpoint (CELL): Many of the staff at iSophia were lucky enough to buy this technology outperformer last year at $2.05, when CELL slid into a reverse split to keep its NASDAQ listing. Since that low point, CELL's share price has rallied over 2000%. So, is CELL overpriced now? Not according to Jon Markman of MSN's Money Central. Markman notes that CELL is still under-owned by mutual funds, has little or no insider selling activity and a price sales multiple below its peer group of .28. 2Q 2003 results were outstanding, when revenue increased by 25% to $379 million, largely on strong demand in the Asia-Pacific region, and a little help from the weak dollar. Earnings expectations have jumped +45% for the year, coupled with at least an add-on of +28% for 2004, according to Zach's. Brightpoint recently announced (9.15.03) its second split of the year, another 3:2, which is set to be distributed on 10.15.03 to shareholders of record on September 30. (Zach's, Money Central) Full disclosure: iSophia staff members own CELL.

EBay: Last quarter, revenue growth was 91%. Without PayPal, it wouldn't have been that high. Earnings estimates are 75 cents this year. Valuation is 73X earnings, but earnings estimates keep going up each quarter. They'll probably do better than 75 cents this year, which puts the valuation at a discount to the growth rate. What's the valuation of something growing 90%? What's a fair valuation for a company that is growing that fast? eBay is a little pricey. They obviously can't keep growing at 90%. Growth will slow down. God knows when. It's one of our largest holdings. I thought PayPal was a great acquisition, and it's helping their numbers this year. Still a great company, but hard

to get too excited at these share prices. (Paul Woods, Odyssey Advisors, contributing writer)

Goldcorp (GG): The gold sector, including gold mining companies like Goldcorp, is on the move, setting new 52-week highs. Institutional holdings of Goldcorp have increased to 45.5% and the market cap has swollen from $2.11 billion to 2.5234 billion, since iSophia featured this company last March. Tune into the next e-zine, when we revisit GOLD as our Stock Report Card feature sector. (Money Central)

JET BLUE: Over the years I've come to love foie gras more than fries and eighteen-year-old single malt scotch more than Boones Farm Strawberry Hill. That's why I refused to admit that I flew Jet Blue more often than not on my trips to NYC. Last week, however, on a trip to Vancouver, I was forced to take another airline. (Jet Blue doesn't fly Long Beach to VancouverÑyet.) On this other airline (which I used to quite like), I had to manually pull the seat to its upright position. The bathroom reeked like an old bar. The sandwich was stale, bland and dry. I ate it anyway because, without DirecTV, and after racing through the easiest Crossword puzzle in the skies, what else was there to do? Come to think of it, now that I'm addicted to oversized, leather seats, I wonder how I'd feel on Southwest? Am I ultra worried that Jet Blue may have shared some information on me (one of its most frequent travelers) with the authorities after 9.11? Terrorists crashed four planes into three of my favorite buildings and killed thousands of people on my homeland. Under those circumstances, I'll give up a little privacy. Just don't take away my blue chips. (Full disclosure: N.W. Pace owns shares of Jet Blue.)

NASDAQ is up 50% from last October's lows. NYSE is up 20%. Jet Blue is up 125%. Brightpoint is up 2,000%. Can this rally continue? Tobias M. Levkovich of Smith Barney, one of the world's most respected analysts, believes that "one would expect the powerful rally seen so far this year to continue based on historical precedent." Though investors are fearful that NASDAQ valuations are entering Fantasyland again, Mr. Levkovich points out that "earnings estimate revisions are gaining strength, suggesting the high valuations [of NASDAQ] may be the result of inaccurate (and low) earnings forecasts." For more of Mr. Levkovich's U.S. Equity Strategy, go to: www.smithbarney.com. Click on Portfolio Strategist. Click on: Macro/Commentary. Click on: U.S. Equity Strategy: The Realities of Stock Market Recoveries - Tobias M. Levkovich.

Wonder which stocks are hitting their 52-week highs this week? The hottest sectors are technology and financials. For a complete list of the Hot 50 52-week highs, led by Motorola, Exelon Coprporation, Prudential financial, Waste Management, Mitsui & Co. (ADR), Portugal Telecom (ADR), Mobile Telesystems, NVR, Inc., Hudson City Bancorp and Quilmes Industrial S.A. (ADR), click here!

Whether you take your profits now, or let them ride into this very bewitching October, kiss the sky for the first sustained rally the markets have seen in three long, hard years! And if you live in California, DON'T FORGET TO VOTE OCTOBER 7^th, in the CALIFORNIA RECALL ELECTION!

From the very happy staff at iSophia

VISION: To build a global community of investors through seminars, a world-wide web-site and, ultimately, television.
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