- Money Grows on WisdomTrees.
By Natalie Pace. Includes a Hedge Fund Stock Report Card.
- Our Deepest Fear Is That We
Are Powerful Beyond Measure.
By Marianne Williamson.
- Stars Shine on Marianne Williamson's
Peace Plan. By Natalie
- Spiritual Gurus Weigh in on The Department of
Peace Bill. Give us your opinion in the survey on the home
page at NataliePace.com.
- Faith….Now! By Gary Kobat, Life and Fitness Coach
to the Stars.
- The Mighty Chirp of a Cougar, and Other Surprises
at a Remarkable Sanctuary for Wild Cats.
By Paul Woods, President & CEO of Odyssey Advisors, LLC.
- International Investing:
Should You Invest in the Oil-Rich Middle East, Infrastructure
in India, Labor-Rich China or the former Battle Fields
of Eastern Europe? Q&A with Global Strategist Dr. Marc
- The Secret of Wealth: Double Your Fun Budget.
- Living the Rich Life Retreat:
An Exclusive, Intimate Opportunity to Transform Your Life
with Natalie Pace.
- Spring Break in Santa Monica, California.
to Living the Rich Life in Tinsel Town's Beach Community
-- on Any Budget.
- "Phishing" and Other Online
Identity Theft Scams: Don't Take the Bait.
NASD Investor Alert.
- Seven Tips to Protect Yourself From Online Identity
By NASD (National Association of Securities Dealers).
- Don't Sell on the “China's
Black Tuesday” Scare. By
Natalie Pace. Includes our Hot News on Cool Stocks list,
featuring 33 companies in the money, versus just two that
are slightly in the red.
- NataliePace.com Calendar:
Conferences (featuring billionaires, royalty and statesmen),
educational opportunities, retreats and online chats with
millionaire money managers. Stay plugged in! Visit our
calendar section often.
Money Grows on WisdomTrees.
Includes a Hedge
Funds Stock Report Card.
wanted to invest in a hedge fund like the mega-wealthy do? Well,
the Fortress Investment Group (NYSE: FIG) provided the first opportunity
for anyone with a brokerage account to invest in a hedge fund
on February 9, 2007, when the company became the first publicly
traded hedge fund, with a listing on the New York Stock Exchange.
Since the first day of trading (at $27.10), investors have pushed
the price as high as $37.00, and back down to a close of $29.38
on February 23, 2007.
you were on the right side of that volatility, there was money
to be earned, which is a big part of the hedge fund strategy,
but is investing in a hedge fund a sound idea for the average
investor? Are there more risks than most investors really understand?
Can you find a more stable company in the money management world
with just as much upside potential?
answer those questions, we lined up the news, facts and numbers
of hedge funds, Exchange-Traded Funds, and debt/equity funds,
alongside the only publicly traded hedge fund, Fortress. Click
Report Card to access the price to earnings ratio,
debt/equity ratio, sales and income, key news and insider trading
information of Fortress Investment Group (hedge fund), Wisdom
Tree (ETFs), Goldman Sachs (investment bank), State Street (mutual
funds), Barclay's Bank (bank, ETFs, credit card +) and more. (If
this paragraph just made your brain hurt because you don't know
what ETFs or hedge funds are, take a deep breath and have faith
that you can learn more by reading on and by looking up the definition
of some of these terms.)
funds are thrilling in theory, but as sophisticated money managers
understand very well, the higher the return, the greater the risk.
At the time of the Enron collapse, Enron had become essentially
a trading firm, far away from its pipes and gas origins. When
the company imploded, it went down faster than most investors
(other than the insiders) could pull their money out. As Paul
Woods, the CEO of Odyssey Advisors warns, hedge funds can be wiped
out in a single day because when a short goes the wrong way, the
loss is unlimited (and hedge funds hold long and short positions).
According to Paul, "They can have a great record, and in
a week they owe so much money they don't know how to repay it."
fall of Enron wasn't just a loss of income or investment or retirement.
Two executives lost their lives. If you're just an average person
thinking that it would be fun to invest in a hedge fund, consider
your heart, my friend, and read on.
criticism of hedge funds is the exceptionally high compensation
of the principal executives, who are making the best living there
is to be made - anywhere. According to the IPO papers that Fortress
filed with the SEC, "In 2007, $98.1 million, $95.1 million,
$63.8 million, $59.4 million and $92.8 million was distributed
to Mr. Briger, Mr. Edens, Mr. Kauffman, Mr. Nardone and Mr. Novogratz,
respectively" (the five principals at Fortress). And "subsequent
to September 30, 2006, [the company] distributed $528.5 million
to our principals in the period prior to the consummation of this
offering." This pay package makes these Fortress five principals
the best-paid executives on Wall Street! They are better paid
Nardelli, who has taken so much heat for his $210
million golden parachute from Home Depot -- an $83 billion company.
(Fortress has an $11 billion dollar market valuation, and this
is the annual salary of these principals, not their buyout cost.)
there a safer way to pluck a buck from the money tree than being
seduced by the pop appeal of the first publicly traded hedge fund?
Of course there is… The investment bank Goldman Sachs has been
around since 1869, and, in addition to managing the assets of
high net worth institutions and individuals (like hedge funds
do), Goldman also has a piece of the hottest money products and
markets - ETFs -- and one of the best performing industries of
2006 - mergers and acquisitions (companies buying one another).
Goldman's last Chairman and CEO, Hank Paulsen, is now the Secretary
of the U.S. Treasury.
Sachs isn't going anywhere, and the firm is so well established
that continued success does not turn on the health and mental
capacity of any one individual, like the success of Fortress does.
Goldman Sachs is a great holding for your long-term portfolio.
It's just a matter of buying in at a decent price -- which occurred
five years ago, when Goldman traded for under $100/share. (It's
hard to get excited about buying Goldman Sachs at $216.50, when
the U.S. gross domestic product growth is moderating, and the
Goldman Sachs' price to earnings ratio is on an uptrend, from
11.00 to 11.60.
Sachs and Barclay's Bank were two of the first firms to take a
piece of the ETF action, and the ETF divisions within these legacy
corporations are performing like high growth companies. Barclay's
is another legacy blue chip that can be a stabilizing force for
your portfolio. However, in order to participate in the upside
of Barclay's ETF division, you have to also take on Barclay's
pension plan obligations and the BarclayCard default problems.
As one experienced investment banker told me, "I'd invest,
if you could just invest in Barclay's Global Investors, and not
the bank." And that's exactly where another ETF money tree
starts looking attractive - Wisdom Tree.
rare when you find a corporation that is trading on the pink sheets
with a war chest of cash and a rolodex of advisors that includes
a former SEC chairman. Wisdom Tree just launched a portfolio of
earnings-weighted ETFs. They currently have $2.4 billion in assets
under management. Their Chief Investment Strategist is Professor
Jeremy Siegel. Arthur Levitt, a former SEC chairman, is one of
their senior advisors. Wisdom Tree's CEO is Jonathan Steinberg,
who has the enviable personal distinction of being Mr. Maria Bartiromo.
growth of the Wisdom Tree family of ETFs and assets under management
has been impressive. Between June and the end of December, they
launched 30 ETFs and grew assets under management to $1.5 billion.
Since the company first came up on my radar less than three months
ago, they have grown assets under management by almost another
billion dollars. I wanted to publish this article next month and
include an interview with the Chairman and/or CEO, but, as happened
when I first found MySpace in 2004, you can't afford to wait with
companies that are moving this fast! It's rare to find a money
tree that is hidden off the boards, and when you do, you want
to pick a few bills before the mob arrives.
"With the launch of earnings-based indexes and ETFs, WisdomTree
takes fundamentally weighted indexing a step closer to its 'tipping
point.' We believe this will happen when investors fully recognize
the structural flaws of market cap-weighted indexes," commented
Jonathan Steinberg, CEO of WisdomTree Investments. Mr. Steinberg's
principal investors agree. Win Neuger, Chairman & CEO, AIG
Global Investment Group said, "We believe that WisdomTree's fundamentally
weighted approach will be essential to the future of indexing,
and we are impressed with their execution of the concept." Jim
Manley, CEO of Atlantic-Pacific Capital added, " Having raised
more than $28 billion in the last decade for private equity and
hedge funds, we have seen many innovative ideas and few have caught
our imagination like WisdomTree. This is the largest principal
investment Atlantic-Pacific Capital has made to date."
AIG and Atlantic-Pacific bought 18.8 million shares for $56.4
million, or $3 each. You're paying triple that, but, in a company
that has gone from zero to over $2 billion strong in under a year,
it still could be a bargain.
Tree's central thesis centers on buy low; sell high -- a strategy
any investor can get behind, but few ETFs and mutual funds have
as a principle mandate. According to Wisdom Tree Chairman Michael
H. Steinhardt and Chief Investment Strategist Professor Jeremy
Siegel, "At WisdomTree, we believe that fundamentally weighted
indexes avoid the structural flaw inherent to market capitalization-weighted
indexes: the tendency to overweight overvalued stocks and underweight
undervalued stocks. As a result, ETFs that track cap-weighted
indexes tend to hold more of a company when its market value is
high and own less of it when its market value is low. We believe
this is counterintuitive to the strategy of buying low and selling
Steinberg, CEO, Wisdom Tree, could not have found a more respected
megaphone than Arthur Levitt, the former SEC chairman, who became
senior advisor to Wisdom Tree on August 15, 2006. "I am pleased
to serve as an advisor to a firm that is committed to serving
investors with a well-reasoned investment strategy that is packaged
in an investor-friendly structure. ETFs are transparent, tax-efficient
and often cost less to own than traditional mutual funds,"
according to Levitt.
and SEC chairmen (and the man who captured Maria Bartiromo's eye
and heart) are a lot sexier to me than the first publicly traded
hedge fund. I'm adding Wisdom Tree to the Hot News list this month.
press time, Natalie Pace does not own shares in any company mentioned
in this article.
Deepest Fear Is That We Are Powerful Beyond Measure.
Williamson's book, A
Return To Love: Reflections on the Principles of A Course in Miracles.
Reprinted with permission from Marianne Williamson.
Not since Shakespeare
has an author become so much a part of the fabric of society as
Marianne Williamson has, and, as with Shakespeare, many people quote
her without knowing that the words are hers. The inspiring, important
words listed below have been quoted in movies (most recently Akeelah
and the Bee and Coach Carter), in speeches and is so
often attributed to Nelson Mandela that we felt compelled to publish
it in its entirety to set the record straight (and to inspire you
to live large)!
these words in her book, A Return to Love, in May of 1996.
Her quote was not mentioned in Nelson
Mandela's Inaugural Address on May 10, 1994, even though
folk lore has assigned the quote to him many times! As you can see,
Marianne has been penning "The Secret" to enlightened
living for decades!
fear is not that we are inadequate. Our deepest fear is that we
are powerful beyond measure. It is our light, not our darkness that
most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous,
talented, fabulous? Actually, who are you not to
be? You are a child of God.
small does not serve the world. There is nothing enlightened about
shrinking so that other people won't feel insecure around you. We
are all meant to shine, as children do. We were born to make manifest
the glory of God that is within us. It's not just in some of us;
it's in everyone.
we let our own light shine, we unconsciously give other people permission
to do the same. As we are liberated from our own fear, our presence
automatically liberates others.
Be sure to read
the article "Stars Shine On Marianne
Williamson's Peace Plan," to learn about Marianne's
plan to establish a Department of Peace in Washington D.C. If you
are interested in reducing violence and war worldwide, this might
be the movement for you to become involved in.
Stars Shine on Marianne Williamson's Peace Plan.
Tyler, Joaquin Phoenix, Amy Smart, Deepak Chopra, Reverend Michael
Bernard Beck, Frances Fisher, Denise Brown and Marianne Williamson
entertain, inspire and educate Marianne's Peace Alliance conference
attendees to become citizen lobbyists on behalf of House Bill number
808, calling for a U.S. Department of Peace!
Tyler sing "Dream
On" at the finale of the conference on YouTube.com!
Steven Tyler, Marianne Williamson and Representative Dennis
Photo Credit: Mark Tompkins
On Monday evening,
February 5, 2007, the stars turned out for peace, packing into a
small auditorium on the George Washington University campus. Steven
Tyler, the outrageously alluring lead singer of Aerosmith, sang
his blockbuster anthem "Dream On" to 1100 hardworking
dreamers, with only an electric piano backing him up. What's Tyler's
passion all about this decade? As you might expect, it involves
a beautiful woman - Marianne Williamson. What you might not expect
is that it also involves politics. Marianne Williamson's Peace Alliance
supporters were in D.C. to promote a new bill being introduced in
the House to establish a U.S. Department of Peace.
As Tyler performed,
some of Hollywood's coolest stars danced and clapped backstage,
including Joaquin Phoenix (Commodus in Gladiator; Johnny
Cash in Walk the Line), Amy Smart (star of Just Friends
and Crank) and Frances Fisher (of Titanic fame).
A handful of the world's most respected visionaries, including Deepak
Chopra, Reverend Michael Bernard Beckwith (star of The Secret)
and Denise Brown inspired the Peace Alliance conference attendees
earlier in the week in keynote speeches. The audience was mesmerized,
rapt, supercharged - bonded as only trailblazers who are dedicated
to co-creating a historic moment can be. The mood was infectious.
day it was all business, however. Marianne locked arms with Denise
Brown (co-founder of the Nicole Brown Foundation). Frances Fisher
joined forces with Amy Smart, and conference attendees grouped by
state to conduct almost 200 meetings with senators, representatives
and their staff, who might be convinced to support a U.S. Department
Bill #808 is
not intended to replace or reduce the budgets of the Department
of Defense or Homeland Security, but rather to also
promote best practices of post-war reconstruction, violence prevention
and coalition building, hand in hand with a strong military and
police force, domestically and internationally. According to Marianne
Williamson, it's not "either or," it is "both and."
Marianne Williamson and Deepak Chopra
Photo Credit: Mark Tompkins
Department of Peace will do is give a more sophisticated analysis
of what constitutes peace, of what it would take to wage peace in
as meaningful and sophisticated a way as we now know how to wage
war." The crowd gave an enthusiastic roar when Marianne proclaimed,
"We must do more than fight our enemies. We must create more
is an approach that was called for recently in the report of the
Iraq Study Group, as well. The bipartisan Iraq Study Group agrees
with President Bush that the United States should "significantly
increase the number of U.S. military personnel, including combat
troops" in Iraq, but their report also quite candidly criticizes
Bush's reconstruction plan, calling it "a lack of coordination
by senior management in Washington." According to the report,
"No single official is assigned responsibility or held accountable
for the overall construction effort," and, as a result, taxpayer
dollars are wasted on half-baked peacemaking schemes. Congressman
Paul W. Hodes (Dem: New Hampshire) isn't as kind in his assessment
of the White House's policy in Iraq. Testifying in front of the
House Oversight and Government Reform Committee, Representative
Hodes asked, "How much more must the Iraqi citizens pay in
dollars and lives before this cycle of incompetence, corruption
and cronyism ends?"
Wayne Gilchrest (Rep: MD) is so fed up that he is forming a Dialogue
Caucus because he believes a "Dialogue Surge" is more
needed than a "Troop Surge" in Iraq. His group of 25-30
House members, Republican and Democrat, will pursue dialogues with
"many countries around the world that we don't have a dialogue
with," including Iran, Cuba, Syria and Burma. According to
Gilchrest, "The vast majority of people, no matter where they
are, still have a level of intellectual capacity that we have not
tapped, a level of interest in business activity that we have not
tapped, a level of interest in trying to prevent infectious disease
that we have not tapped. That's the human infrastructure that we
need to be talking to directly, on many, many different levels.
We're not doing that."
of Peace would put best business practices in peacemaking, dialogue,
reconstruction, violence prevention and more at the seat of power
in our nation's capital. This senior official would be an active
part of domestic and international policy making.
Joaquin Phoenix, Steven Tyler and Marianne Williamson
Photo Credit: Mark Tompkins
Over 300 universities
currently offer degrees in peacekeeping, and there is solid data
about the efficacy of violence prevention and reconstruction efforts.
Lisa Schirch, the Program Director for 3D Security Initiative and
the Associate Professor, Institute for Justice and Peacebuilding
at East Mennonite University, notes that stability in Iraq "requires
lowering the unemployment rate, which is currently between 50-75%
in some cities." As Schirch reports, "High unemployment
rates correlate closely with high public violence levels."
3-D Security outlines three key areas for any successful national
security plan: development, diplomacy and defense, yet Schirch complains
that Bush's policy is focused "almost exclusively on defense."
not seeing the deeper causes of distress," according to the
respected doctor and spiritual guru Deepak Chopra. Chopra believes
that the world needs to take a proactive, holistic view toward promoting
peace, just as healthy persons take an active interest in wellness,
instead of waiting for disease to erupt and then declaring war.
Marianne Williamson argues that criminal behavior at home and terrorist
movements abroad are akin in that "99% of the times, one thing
was present in someone's home or city or nation, and it's called
despair. There is nothing more dangerous to our society than large
groups of desperate people."
that the $8-$12 billion that would be spent on the Department of
Peace would pay for itself many times over. She claims that breaking
the cycle of violence in the home and implementing "best practices"
in alliance building, violence prevention and conflict resolution
domestically and abroad, will save far more money than the cost
of the department. Currently hundreds of billions are spent on the
- 25-45% of
classroom instruction time is spent on discipline, not instruction
- 50% of new
teachers in urban areas leave the profession within 3 years
- In the U.S.,
4 women die every day at the hands of someone they love, whom
they are supposed to trust, and 132,000 women report that they
have been victims of rape or attempted rape (more than half of
them knew their attackers)
- $620 billion
will be spent next year on the Department of Defense and the Wars
in Iraq and Afghanistan
people have died from armed conflict - most were civilians
- In 2004,
students ages 12-18 were victims of about 1.4 million nonfatal
crimes at school, including about 863,000 thefts and 583,000 violent
crimes—107,000 of which were serious violent crimes (rape, sexual
assault, robbery, and aggravated assault). There were 21 homicides
and 7 suicides of school-age youth (ages 5-18) at school.
- $36.6 billion
is budgeted for Veteran's health care services, 83% higher than
when President Bush took office
Peace is even
becoming "in" with football coaches and investment bankers.
Jim Moglia, the Executive Managing Director, Bank of Montreal, commented,
"It used to be the Department of War, so if it goes from the
Department of War to the Department of Defense to the Department
of Peace, that seems like the natural order of things." The
Indianapolis Colts ‘ head coach Tony Dungy's first comment after
winning Super Bowl XLI was, "Sure, I'm proud to be the first
African American coach to win the Super Bowl, but I'm more proud
of being a Christian coach and showing you can win doing it the
Lord's Way!" Coach Grady is well regarded for his peaceful
approach to coaching - no yelling or cursing, ever. If the Indianapolis
Colts can win as peaceful warriors, can the U.S. as well?
All they are
saying is give peace a chance AND a seat at the table of power.
This time Peace Alliance supporters are not being laughed off as
pie-in-the-sky, tree-hugging vegans, but they still have a long
way to go. Representative Kucinich and Marianne Williamson may be
dreamers, and though they're not the only ones, the masses of peace
supporters have yet to lend their weight to the cause. On average,
the Peace Alliance sent a dozen people from each of 47 states to
visit their Congressional representatives. There are hundreds of
millions of people worldwide who want peace, but as long as the
supporters of Bill 808 number in the thousands, it will be easy
for opponents to bury the bill.
To read the
of Peace Bill #808, go to The Peace Alliance website
To weigh in on the bill, contact your local Senator
is a respected journalist and one of the most successful stock pickers
in the U.S., with over 38% 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. Natalie has appeared on Forbes.com Video Network, Sohu.com
(China's "Yahoo"), Forbes on Fox, Your World with Neil
Cavuto, Cavuto on Business, Good Morning America, Time magazine,
More magazine, USA Today, NPR, Kiplinger's Personal Finance, KNX
radio, BizRadio, and other global financial news media. You can
access her articles at NataliePace.com.
Gurus Weigh in on The Department of Peace Bill.
us your opinion in the survey on the home page at NataliePace.com.
of the Bill:
a Department of Peace will do is give a more sophisticated analysis
of what constitutes peace, of what it would take to wage peace in
as meaningful and sophisticated a way as we now know how to wage
war." Marianne Williamson
are getting shot. Gangs are out of control. War is costing a lot
of money and taking a lot of lives. The Department of Peace is powerful
because it teaches proactive ways to prevent violence within the
communities. Maybe now, with technology and knowledge, we can teach
nonviolent communication in our country and in our world."
Denise Brown, co-founder, the Nicole
big addiction is part of the violence in the world; the addiction
to adrenalin. We need new music to change some of those addictions.
We need a new narrative to change who and what we are… The Peace
Alliance: it is inevitable that it will be born." Deepak
Michael Bernard Beckwith
Founder and Spiritual Director, Agape International AgapeLive.com
are seeking to institutionalize peace as a way of life by putting
real money behind the understanding of what brings about violence,
and a real understanding of how peace can be anchored in our lives.
Anyone with any common sense knows that handling violence with violence
brings about resentment and fire in which hate can run amok."
On. Dream until your dreams come true." Steven Tyler, lead
Steven Tyler sing "Dream
On" at the finale of the Peace Alliance conference
only do we have 55 million school kids who every day live in an
environment that should be safer, more nurturing and comforting,
we have teachers who can't last more than three years. In many cases,
they have worked three jobs to get that degree. Most of them, two
years after they enter the classroom will leave the classroom and
never return. Our schools do not teach them how to create a community
in the classroom." Dr. Tricia Jones, Temple University
Against the Bill:
and Peace Alliance conference attendees were not all enamored with
the Department of Peace proposal:
the government has a lot of departments that are not needed as it
is (such as the Departments of Agriculture, Education, Health and
Human Services), it does not make sense to have yet another department."
is a grass roots effort, not a department."
take on the bill? Weigh in at the Sharing
Wisdom bulletin board and take our survey.
Currently, 63% of those surveyed believe the U.S. should establish
a U.S. Department of Peace, while 36% oppose the bill.
Kobat, Life and Fitness Coach to the Stars.
"...We are our practice."
Kobat with Jim Carrey and Will Ferrell
faith. Living our highest best self, creating a personal best,
or attaining an impossible dream is all a matter of
is: Where do you place yours?
When we place our faith in fear, we live in a house of anxiety.
When we place our faith in comfort, we stop growing, stop doing
the fundamentals that serve us and aide as a base to build and grow
So we ask the question again: Do you have faith in fear, faith in
comfort or faith in being, doing, and living your impossible dreams
today, right here and right now?
Remember: fear and faith cannot harmoniously live in the same
When our faith is in fear, when we are so accepting of fear, completely
convinced of the idea of fear, any contradiction is unthinkable
and impossible. Faith in fear can paralyze us and produce more fear
in our life. This is not only a spiritual principle, but a street,
a scientific, and logical principle as well.
We live in a world of infinite possibility. That which we
focus on, believe in and chant in our minds is reproduced in our
outer world. We can pile up all the evidence in our mind that validates
what we should have faith in, ultimately however, we have a choice.
When we choose our light, not our dark, our positive, not our
negative, our good, not our bad, our peace, not our anger, our forgiveness
and belief, not our blame or our shame, we are no longer at the
effect of temporary circumstances. Results that we passionately
want in our life, feelings that we want to experience, don't have
to wait till you "get the check", "heal the adrenals", or "they
make a decision". We don't have to change to be happy, participate,
or feel better... We have a choice right here and right now to do
it, in many ways, at many levels, at many intensities.
So the next time we're challenged, we must not forget: we're not
missing anything, we're whole as we are, with plenty of faith to
The question is: where are you investing yours?
When would "Now" be a good time to begin?
Do you ever treat this moment as if it were an obstacle
to be overcome? Do you feel you have a future moment to get
to that is more important?
Almost everyone lives like this most of the time. Since the
future never arrives except as the present, it is
a dysfunctional way to live. It generates a constant undercurrent
of unease, tension, and discontent. It does not honor life, which
is now and never not now. When
our attention moves into focus, into now, there is an alertness,
a clarity, a simplicity, no room for problem making, just this moment,
like waking up from a dream.
Since there is no escape from the now, why not welcome it, become
friendly with it. When we make friends with the present moment,
we feel at home no matter where we are. It is recognizing
what is primary, and then we can deal with what is secondary with
Turning 40, looking 30, and feeling 20; creating the life of our
dreams we have to place our faith in the here and the now. After
the age of 40, we get the face and body that we deserve, however
with every moment of our life, regardless of our age,
we actually manifest and create the life that we believe
So we ask: when would "Now" be a good
time to begin?
Train smart. Live, race, recover smarter.
Mighty Chirp of a Cougar, and Other Surprises at a Remarkable Sanctuary
for Wild Cats.
Woods, President & CEO of Odyssey Advisors, LLC
A while ago,
my wife and I pulled into an 8-acre piece of property in an unincorporated
part of northern Oregon that can only be found with very explicit
directions and a 4-wheel drive. Mike and Cheryl Tuller own this
property and, as soon as we got out of our SUV, we were met with
numerous high-pitched chirps. When Cheryl came out to meet us, I
asked where she kept the birds. "Oh, that's just the cougars"
was the casual reply. Just the COUGARS? Great, now I'm going to
be hard pressed not to wet myself every time I'm out of the city
and hear a chirp.
Lynx trying to decide if the view would be better from the top
of my head.
We were about to receive the equivalent of a backstage pass to a
wildcat sanctuary that isn't open to the public http://www.wildcathaven.org/.
Their only interest is wild cats that purr, so the biggest cats
there are cougars. We had already adopted two of their cougars,
which is roughly the equivalent of adopting a child in Africa. You
send a contribution and receive a picture and background information
on the cat you adopted. The contribution goes to the care and feeding
of your cat at WCH, but don't expect to ever bring that cat home.
You may be allowed to visit once Cheryl gets to know you and decides
you have enough common sense. Being from Southern California doesn't
help in that regard, but Cheryl and I had been e-mail buddies for
several years. By the way, I'm the cat person in our family. Meri
Anne was doing a remarkable job of controlling her enthusiasm at
the prospect of getting up close and personal with around 40 wild
in mind that most cats are easy to bribe, so showing up with a steak
or at least some raw meat is a pretty good icebreaker. Wild cats
that want attention aren't shy about letting you know, otherwise
leave them alone. During the visit, I had a bobcat in my lap, was
head-butted several times by a very friendly Canadian Lynx, and
petted a few Servals.
One of the things
I discovered on our first visit is not to wear sandals. Some wild
cats, particularly bobcats, consider toes a delicacy and aren't
easily dissuaded. We also learned that just about any cat smaller
than a cougar considers eye contact a challenge and may react poorly.
It's reasonably safe to go in with the biggest, wildest bobcats
as long as you avoid looking at them directly. Cougars, however,
are the exception to this rule. You're fine as long as you're looking
at them, as cougars are programmed to jump on you when your back
is turned or when you're not looking at them.
Top of the Food Chain
We had brought
steak for our cougars, Neko and Noni. It was time to visit the top
of the food chain and see what all the chirping was about. The cougars
were in a separate locked area with larger enclosures. My first
reaction to seeing them up close was a holy crap sort of amazement
at looking at the most lethal creature I'd ever been close to. Their
paws were the size of dinner plates, and the matching claws looked
like something from a science fiction creature. The powerful jaws
and sharp teeth would easily crunch a spine. However, their experience
with humans had been positive and they knew there was little to
fear from anything in their part of the world. They were laying
around like dogs, soaking up the sunshine.
The steak was
a big hit and I still had all my fingers. Noni was even acting as
though he'd like to clean them for me. A lifetime with cats has
alerted me to the danger signals but strangely enough, I wasn't
getting any. Neko put the side of his head against the enclosure.
There was enough room to get a hand through, and I rubbed his ear.
He started purring. How about a neck rub? The purring got louder
as I massaged the equivalent of fur-covered steel. Noni came over
to get some attention and gently licked my fingers with a tongue
that wasn't as sandpapery as I expected. A chin rub produced DEEP,
rumbling purrs that could be heard from a distance. My mind was
completely boggled as Neko and Noni had similar reactions to everything
our housecats respond to.
I visited the
other cougars and shared the rest of the steaks. I didn't get the
same signals, so they went unpetted. Returning to Neko and Noni,
I was greeted with chirps and bodies against the enclosure that
required more petting. Most of the rest of the day was spent hanging
out with them, but it didn't take long to realize that, if I went
in the enclosure and they played with me the way they played with
each other, I'd be lucky to survive the experience. The last thing
I heard as I was leaving was a chorus of chirps
Start of a Long Relationship
how does an otherwise healthy male end up with a thing for cats?
For me, the question has always been why most guys like a creature
that's needy, noisy, has to be followed around with a bag and a
scoop, and suffers separation anxiety if left alone for more than
a few hours. One of the first things I remember is using a big,
mother cat as a pillow when I was still in a crib. We lived in Oregon
at the time, on the north bank of the Rogue River. Next to our house
were wooden steps leading down to a myrtle wood grove and the river.
Once I was soundly
asleep, my cat would usually go hunting by the river. The kill of
the evening would then be dragged up the steps and left under my
window. It got interesting because my mother usually added excitement
to her life by choosing the most implausible possible explanation
for things she didn't understand. To her, thumping in the night
and a dead animal under my window could only be explained by a cult
of inbred crazies living in the hills and conducting bizarre sacrifices
at night. She was terrified to go outside in the evening as a result
and couldn't get rid of whatever was under my window fast enough
the next day. The next night, my cat would notice her present missing,
assume I'd eaten it, get another, and send my mother over the edge
again. I've had a soft spot for cats ever since.
distinguishes cats from the other animals domesticated by man is
they were the last ones to decide to share their lives with humans.
My guess is they suspected all along that if they became domesticated,
too many overly protective women would keep them imprisoned indoors
for the rest of their lives. However, in observing wild and domestic
cats, domestics clearly still have a paw in the wild as there are
striking similarities in behavior. The biggest difference is that
domestics have had thousands of years to work on their manners.
The key to understanding
the difference between wild and domestic cats is to understand what
keeps a cat alive in the wild. To survive and reproduce, they have
to establish a territory for hunting. The territory has to be marked
with urine, feces, and scratching (trees mostly). The territory
has to be defended when necessary by aggressively driving out competitors.
If a male wants to attract a female, he has more competition to
overcome. Finally, wild cats have to hide from more dangerous predators,
are pretty much hard wired by nature and don't change just because
someone allows a wild cat to live in their house. What this translates
into is a cat with poor litterbox habits that can be aggressive
toward other pets, very destructive, and shy toward humans.
serval with its domestic posse
the last few decades, a lot of wild cats have become part of the
captive population. One reason has to do with the successful development
of wild/domestic hybrids. Several decades ago, Asian Leopard Cats
were successfully crossed with domestics to produce a breed known
as Bengals. After that, jungle cats were crossed with domestics
to produce Chausies. Recently, the new rage is the crossing of African
Servals with mostly Bengals to produce Savannahs. As a result, the
demand for the wild part of this equation has increased dramatically.
a few decades ago, producing a bobcat hybrid became the holy grail
of hybrid breeders. Hundreds of domestics that were unlucky enough
to come into heat when a captive bobcat was close by were killed
or maimed in unsuccessful mating attempts. To date, there are still
a few third rate con artists on the internet selling bobcat hybrids,
but none of these cats have withstood a simple genetic test for
parentage. About the only tangible result of this, besides the body
count of domestics, was more bobcats in captivity.
Internet has made it much easier to locate and purchase wild cats.
In addition, it has also allowed some enterprising lowlifes to keep
fur farms in business by redirecting these cats to the pet trade.
Once the demand for fur dried up, fur farms should have gone out
of business as it was impossible to feed a cat for three years and
get enough for the pelt to make the economics work. In addition
to living in horrific conditions, most fur farm cats were severely
inbred and suffered from numerous genetic disorders including digestive
problems, neurological problems, and even blindness. However, the
mindset of the folks running fur farms is that as long as none of
this damaged the pelt, it wasn't a cause for concern.
Fur farm cats
have the additional problem of being poorly socialized. After all,
who's going take the time to socialize a cat they'll end up killing
at age 3? Between the health problems and the lack of socialization,
the people trying to sell these clearly had a marketing problem.
Not to worry. Buyers with little or no experience with wild cats
were targeted and fur farm cats were billed as friendly and healthy,
priced around $2,000 each. When the inevitable health or behavior
problems cropped up, these were invariably blamed on the inexperience
of the buyer ("the cat had no problems when I shipped it, what
did you do to it?"). The result of this was that wild cats
with severe genetic problems also entered the market.
present, all of the above have led to an oversupply of wild cats
in the captive population. Selling kittens that will melt just about
anyone and giving unrealistic assessments of their future personality
to inexperienced buyers still appears to be the preferred method
of moving the merchandise. When problems arise as the cat matures,
disagreements between buyer and seller always come down to a case
of he said/she said, with the buyer invariably ending up as the
Add health problems
from genetic diseases to the mix, and it isn't hard to imagine the
result. That cute kitten is growing up and spending a lot of time
at the vet. When not running up the vet bill, it destroys the furniture,
attacks other pets, hides most of the time, and leaves the house
smelling like a public toilet. When the kitten phase wears off,
many of these cats become expendable as their owners try to find
another home. Unfortunately, wild cats form a very close bond with
the person that raised them and will never understand why they wore
out their welcome or why their favorite human is no longer part
of their lives.
Reality is there
are limited options. Cats that weren't taught to hunt by their mother
won't survive in the wild, so turning them loose in the wild won't
work. Zoos are full and aren't a great option anyway as the average
wild cat doesn't want to be stared at by hundreds of strangers per
day. Public and private shelters are also busting at the seams and
are usually prevented legally from taking wild cats. Euthanizing
these cats or finding a private sanctuary for them is about the
Sanctuary of Last Resort
differentiates Wild Cat Haven from sanctuaries run by many others
is the size of Cheryl Tuller's heart. She has plenty of wild cats
turned in by their original owners for the usual reasons, but Cheryl
and Mike also run the sanctuary of last resort. A wild bobcat kitten
that lost a leg in a trap isn't the kind of crowd pleaser that a
facility open to the public would welcome. Neither is a blind lynx
from a fur farm or an old starving male cougar with broken teeth
that ended up in an auto body shop. Thanks to Cheryl, these and
many other cats get medical attention, a proper diet, and a quiet
place to spend the rest of their lives. She and Mike do an amazing
job with limited resources, and help is always appreciated. To adopt
one of their cats, go to http://www.wildcathaven.org/Difference/difference.html.
Who knows, one of these days, you may even get to go for a walk
on the wild side.
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 email@example.com.
Chat with Money
Manager Paul Woods, CEO, Odyssey Advisors
March 21st, 2007
through 9:30AM PT (11:45 AM ET)
Back up the
Truck! Learn why money manager Paul Woods is bullish on 2007. Paul
is a 30-year veteran in managing money for high net worth individuals
and institutions. Free to subscribers.
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.
© 2007 by Odyssey Advisors LLC
in Bratislava, Slovakia Photo credit: European Commission.
You Invest in the Oil-Rich Middle East, Infrastructure in India,
Labor-Rich China or the former Battle Fields of Eastern Europe?
Global Strategist Dr. Marc Miles.
On January 26,
2007, NataliePace.com subscribers asked one of the most respected
global strategists, Dr. Marc Miles, for guidance on international
Marc Miles is
the former Editor of the Heritage Foundation/Wall Street Journal
Index of Economic Freedom. Prior to that he spent almost
20 years advising large institutional money managers on changing
trends in the US and global markets. Marc has a Ph.D. from
the University of Chicago and was a tenured professor of economics
at Rutgers University.
I understand that the foreign market is a very good place to invest
right now. In your opinion, what are the best investment areas in
the foreign markets?
Dr. Miles: The
emerging states of the former Soviet Union are the best place. Western
Europe is lagging behind.
Over what period
of time? The dollar has been exceptionally weak, which means it
is probably near the bottom, and is likely to gain relative to other
will you clarify which emerging states of the former Red Bloc are
most desirable? Do you think say, Estonia, is better than Russia?
Are there certain countries that are more poised than others in
There are two
kinds of countries in the former Soviet Union, those that believe
in markets and those that still want to do "deals" among
insiders like before. Russia and Croatia are examples of countries
that like to do "deals". The Russian mob has bought up
much of the Dalmatian Coast in Croatia. Estonia, on the other hand,
is a very open market.
name a few of the other countries in Eastern Europe, which look
attractive to you? What's the easiest way to invest in these countries?
Are there very many publicly traded platforms? ETFs? Mutual funds?
There are a
growing number of ETFs for investing there. Also, many emerging
market mutual funds are tilting their portfolios in that direction.
The easy countries, like Estonia, have been picked off. I would
say that Bulgaria, Slovenia, and Romania are good bets today. Basically,
you have to move farther and farther East. An examination of the
website, or those of PowerShares,
State Street Global Advisors
(SSGA.com) or Wisdom
Tree would be a good place to start.
note: We have two mutual funds listed on the hot news list - EUROX
and TREMX. You might also check out the Goldman Sachs emerging market
fund, GEMAX. If you have the symbol for the ETF, you can enter it
into the RESEARCH NOW box on the NataliePace.com home page. That
link will take you to a stock page on MSN that allows you to view
the TOP HOLDINGS of the ETF with one click.
the Middle East. Wasn't Egypt or Turkey the top performing market
a few years ago?
with Egypt is that it is still has heavy regulation and corruption,
problems that affect many emerging markets. As a result, free markets
are not really developing there. Turkey on the other hand is becoming
a very strong market economy, and I would expect good performance
there. The most open market economy in the Middle East is actually
Israel. As long as it stays out of war with its neighbors, its market
should perform well.
I am surprised
that no one has asked me about China and India. Those seem to be
the darlings of the investment world.
Yes! I have
a potential investment project in India. I have many strong personal
contacts there. One is a developer in Nasik - a distant bedroom
community to Mumbai. He and I are creating a hard money-lending
project that seems like an easy and profitable venture.
I do not see
China and India in the same light. I think China is potentially
a much more promising investment than India. While India seems to
be growing at around 8% per year, its population is also growing
very fast. As a result, its per capita income (a measure of the
wealth of individuals) is lagging far behind other countries.
My main concern
is getting the money in and more so out.
India is burdened
with regulations and controls. Unfortunately, countries tend to
reflect the time at which they were founded. The U.S. was founded
in a period of political enlightenment and that is reflected in
our Constitution. India was founded in the mid-20th Century,
when the popular belief was that countries should regulate everything
that moves, as well as everything that does not move. The currency
controls are a legacy of that. Interestingly, the inventive Indians
have developed grey market ways of getting money in and out.
Pace: Grey market sounds like risky business for the newbie. Will
this be your first venture into India to do business?
Yes, the "grey" means are what I keep hearing
about, too. I am comfortable because I am in business there with
good friends. I would like to expand this program and bring in other
monies from here. It feels a little riskier to use the grey channels
with other people's money. Yes, it is my first time. I want to do
a trial run with a smaller investment to see if it is as easy as
One area that does interest me in India is the rapidly growing marketplace
for surgeries - medical tourism. The Americans and Canadians who
are traveling to India to get great medical care and a vacation
at the same time. Will you comment on that marketplace? Is there
a way to identify and invest just there? That particular area relies
on the wealth of the U.S. and Canadian consumer and seems more promising
I am not sure
what you mean that it relies on the U.S. and Canadian consumers.
India is relatively closed, so its economy relies a lot on the Indian
consumer. The exception
is the one area that is not regulated, i.e. services. That is why
we have seen the explosion of computer services and call centers.
But many U.S. firms are rethinking that strategy now because of
poor performance. Naturally, with an exploding population, the need
for human services will rise accordingly. Therefore medical services
may be a good sector to focus on in India.
What I mean
is that rather than pay for hip replacement surgery here, I have
many friends and colleagues who are going to India. They say the
physicians there are MORE qualified, the cost is less than what
they'd pay in co-pays in the US, AND they get a vacation to boot.
is trade in services. But the interesting point you make is that
instead of physically or electronically exporting those services,
people are going to India. That may be fine for a while. But what
happens when the Indian Government sees medical services being gobbled
up by "foreigners"? My fear is that they will limit this
practice in a political attempt to provide medical services to Indians.
My project also relies on population. Mumbai (18+ million) is sprawling
northward and Nasik is sprawling southward toward Mumbai. Incomes
are increasing and there is a seemingly endless demand for mid-level
Have you been to Mumbai? Personal knowledge and experience can be
very valuable. Seeing whether the rural working poor have now got
enough income to qualify for "mid-level housing," would
be very important. I've heard that seeing the poverty in India firsthand
is a very sobering experience.
everyone says go for infrastructure of any kind.
One of the reasons Enron went down is because they were investing
in infrastructure in India. The Indians couldn't afford the power
and were simply plugging their own lines into the main power source
to get it for free...
Dr. Miles: Again,
the population is in fact exploding, and there are in fact people
who are doing better from income in the service sector. But remember
that for India as a whole, the per capita income is not growing
rapidly, which limits the overall demand for these things you mention.
there reason to fear nationalization with regard to foreign investment
in mid-level housing -- that the government regulators might come
in and want the upside to stay with Indian nationals? That's what
worries me about anything "grey" in a country with heavy
Maybe they are
looking at government projects and trying to jump on that bandwagon.
Not sure the private sector market will keep pace. Having a good
friend on the ground in India is a savvy way to do private investment.
But I think there is a significant downside risk.
there is very formidable. For instance, the "shares" market
in India Is very strong (moderate packages return 40%), but Americans
are not allowed to buy into the shares market.
will be limited if foreigners cannot easily move their money in
and out. The degree to which you can do that should be a tip-off
to you about the riskiness of investing there.
Dr. Miles, I've heard many reports from multiple sources that China
is really cracking down on foreign capital investment in real estate.
I've heard that they've put the kibosh on building permits. What
do you know there? One of the reasons I ask is that one of the best
performing investments of the past few years has been Las Vegas
Sands, which is developing Asia's Las Vegas in Macau. The fine print
on their SEC documents says that they haven't received final government
approval for the project. That worries me.
to be an open area for investment. In fact, most of the development
in China occurs in the Southern provinces. Macau is a city/state
that is in the very south tip of China. The government gets significant
revenues from those gambling ventures. They also see them as a way
for the new middle class to spend their money internally.
the promising investments in China?
The new investments
in China are in the financial sector. The financial sector has teetered
on the brink of insolvency. It needs foreign capital and foreign
management. That sector -- particularly banking -- has begun to
be open to foreigners.
publicly traded companies moved into that space? I understood that
The Carlyle Group and other private equity firms were the first
in to invest in Chinese banking and investment products.
Yes, and Citigroup
has bought a significant stake in one of the ailing banks. They
were willing to absorb huge existing debt in order to get in. But
when you look at the population and the growing wealth, that looks
like a good long-term investment.
Well, I love
hearing that. We just added Citigroup to our list a few months ago,
and their first mover advantage in China was one of the reasons.
One thing to
keep in mind is that while the south of China is booming, the peasants
in the north are not sharing in this. In fact, the Chinese government
has been taking away land (forcefully) from peasants to build plants,
etc. Historically, revolutions in China have been started by the
peasants. There have been numerous peasant riots over the last year.
This would make the government nervous, perhaps leading to a crackdown
in several areas of the country.
I am not bullish on most of Latin America, but there are some exceptions.
Those are Chile, El Salvador, Panama, and maybe Guatemala.
America have a long legacy of socialism and communism? The recent
events in Venezuela reminded me of that, as well as a book I just
read on Che Guevara.
has the "lost decade" in the 1980s. Given the populist
movements in Venezuela, Bolivia, Equador, Nicaragua, etc., many
countries there could be headed for another "lost decade."
So, China, not
India, Eastern Europe over Western Europe and avoid Latin America
… And… thank you, Dr. Miles, for your wisdom and insights!
If you have
a question for Dr. Miles, please feel free to email us at info@NataliePace.com.
We'll collect your questions and tap Dr. Miles' wisdom in another
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.
DISCLAIMER: Information has been obtained from sources believed
to be reliable however NataliePace.com 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.
The Secret of Wealth. Double Your Fun.
is talking about the
Secret, and if you haven't seen the movie yet, whatcha
waiting for? For the stars to appear on Oprah? It already happened!
The producer and select stars of the Secret appeared on Oprah on
Thursday, February 8, 2007, and now even my bartender knows about
it! To order your copy now, simply go to TheSecret.TV.
So, what is
"the secret?" The secret is simply the law of attraction.
What you believe and do attracts everything that is going on in
of thinking about the law of attraction is as Henry Ford was fond
of saying, "If you think you can, you can. And if you think you
can't, you're right." In other words, whatever is in your life right
now is there because, on one level or another, that is what you
believe you deserve. And conversely, if you want something new in
your life, you'll need to consciously direct your thoughts, words
and actions in a manner that welcomes in the new qualities, persons
and events that you wish to attract. As Gandhi says, "Be the
change you wish to see."
I have two real-world
examples of how this works. As a teenager, my boyfriend had a recurring
dream, one that he talked about frequently. He dreamed that he was
riding a motorcycle and was hit by a car and died. "I'm going
to be hit by a car and die before I turn 19," he used to tell
me with such conviction that nothing I said could convince him to
think or talk differently. Right before his 21st birthday,
he was riding his motorcycle and his dream came true. Was it fate,
or simply an event that he subliminally willed into his life, even
down to buying a motorcycle to commute to college on? R.I.P. JG.
You were a great friend.
In my early
20s, I had a poet friend. He was well educated and very dedicated
to writing great poetry, which of course is not a great way to make
a living. Yet this person was well fed and quite happy, living in
a modest, but functional apartment, even though he had no measurable
means of support, or of even buying a cup of coffee
you survive?" I asked him.
day, someone simply brings me over some food," he responded.
that?" I said. "Like magic?"
like magic. The universe is a very magical place. You just have
to have faith."
Well, sure enough,
we walked out of his door -- his apartment was owned by a very wealthy
Iranian who let him live there for free -- and lying on the doorstep
was a sandwich and an invitation for him to join a friend's family
for Sunday dinner that night. It was hard for me to believe that
the entire thing hadn't been orchestrated just to mess with my head!
And, of course, the second thought was, well perhaps he can do that,
but no one else can. I mean, who wouldn't get tired of taking sandwiches
to a poor poet! And yet, all over the world, everyday, we find people
who exchange their gifts and talents with one another, some providing
the poetry, others the cure for cancer, others the musical inspiration,
others the television shows, and others the cornbread.
fitness and life guru to the stars, says, "It's all about faith.
Everyday, you place your faith in something. If you place your faith
in fear, you get to live in the house of anxiety." (Read his
article this month for how to place your faith in living the life
of your dreams.)
Now, as we apply
these principles to wealth, it is clear to see that the motorcyclist
was living a less "rich" life than the poor poet, even
though my ex-boyfriend had a nice home, three steady, warm, homemade
meals a day and was going to college! Technically, he had nothing
to fear, and yet, every day, he lived with the certainty and the
dread that he was just inches away from death! Living the rich life
is not necessarily about being a billionaire. It is about thriving
and enjoying most of your moments exactly the way you wish to. It
is about designing a life that you are in love with. It is about
not being chained to your job, or the mortgage or being shackled
by anything, and, instead, living, breathing and doing exactly that
which makes your soul sing!
And here is
why the idea of "cutting out a café latte" and
saving the two bucks a day is not the best strategy for getting
wealthy. That plan is all about deprivation and penny pinching,
and completely sidelines the basic principle of "the secret,"
which is to think and act every moment as if your wildest dreams
were coming true. True wealth is about bringing in more money than
you need to pay your bills and buy your coffee, about giving
back to charity (because we all share this world, and happy people
make better neighbors, business partners and customers), about circulating
money (so that it can come back to you), about creating things with
like-minded friends and enjoying work so much it feels like play.
The budget below is designed to put you on track.
Double Your Fun; Cut Your Expenses in Half Budget:
to your financial freedom plan first. Make sure that the
first check you write each time you sit down to pay bills is a
check to yourself in the amount of 10% of your take-home pay.
This goes directly into your financial freedom account, where
it should be invested to do a little work and earning on its own
- while you sleep. (I call the traditional "retirement plan"
a financial freedom plan.) If you did this religiously, even if
you only made $13/hour, you would be a millionaire within 31 years,
thanks to the magic of returns and compounding. Even if you do
not know where/how to begin investing, you can earn bond-like
returns in the money markets these days. The discipline and practice
to tithing to your financial freedom account is very important,
and you should NOT wait until you "get out of debt"
to start saving, anymore than you'd wait until you graduate from
college to start learning. Investing helps you to get out of debt.
Learning is the only way to graduate from college.
to charity. 10% of your take home pay must then be written
to a charitable organization. I do not recommend that you simply
tithe to your favorite religious organization or any one organization
for that matter. You may have one organization that you want to
support on a regular basis, but I'd encourage you to be creative
and to really enjoy the feeling of helping someone or something
out that you know needs the support. As Deepak Chopra says, you
must see the connection between the river that flows as your circulation
(it is your water!) and the trees in the rain forest as your lungs
(they produce your oxygen). Learn to see the interconnectivity
of all things, and you'll see that tithing to the greater good
of all is really making the world more beautiful and sustainable
for yourself as well.
I wrote a check to Us
Foundation to help get vitamins and anti-parasite
medicine to poor children in India. Last month, my check went
which offers a service for single mothers house sharing. As you
get more creative with your giving, you'll be more connected to
the good that you are doing in the world. Believe it or not, when
you enjoy something, you smile. It shows up on your face. And
when you look happy, you're more attractive to other people who
are smiling and doing things they enjoy. When your smile radiates
with a new and real vibrancy, this will automatically begin attracting
a new type of person into your inner circle.
time can be tithed as well! The
Airlines Ambassador Program allows you to get on board with
other humanitarians to bring care and compassion around the world.
Try a different type of vacation!
to your education fund. 10% of your take home pay should
go to an education fund. The single most correlating factor with
wealth advancement is education. As your education level goes
up, so does your intellectual capital and your salary. Getting
educated and getting a better job are the two easiest ways to
improve your living condition - to get beyond hand-to-mouth and
enter into the world of "hmmm. What should I do with all
of this leftover money?" As Oprah said when she developed
her Leadership Academy in South Africa, "Education is the
key to unlocking the world, a passport to freedom." Educating
yourself on wise investment strategies could be a very great use
of your education fund, especially if you are already a master
to short term fun and 10% to long-term fun. Short-term
fun includes things like iPods, clothes, movies, dinner dates,
massages/facials, and smaller purchases, anything you can do now.
Long-term fun includes vacations, Jacuzzis and anything that makes
life more enjoyable, which you'll need to save for to get.
a man who loved mining and polishing semi-precious rocks and stones.
He dabbled in it throughout his life, but put off taking lapidary
classes and jewelry making until he retired. Unfortunately, since
this man was a welder in a copper mine, by the time he retired,
he was missing the tops of two of his fingers, and he had a condition
that caused his hands to shake uncontrollably. It is very important
to enjoy life every day, and not put off pleasure for some future
moment. You deserve to thrive now. (And if you are actively tithing,
you don't have to feel guilty about being selfish.)
- 50% of
your take-home should go to expenses. I can see you getting
almost livid with this! Yes. You don't need to cut back on café
lattes, you need to get your expenses down to a level that allows
you to enjoy life, with those café lattes (short term fun)
every day, if you so desire! Tax obligations, housing, food, insurance,
clothing, debt and utilities - every fixed expense that
you need to pay in order to survive -- should fit into this 50%
to survive/50% to thrive plan!
you blow a gasket wondering how you are going to cut back on your
mortgage or rethink that car payment, consider this. There are many
ways to increase income and/or reduce your MAJOR living expenses,
and that is exactly where you need to get more in line. (Saving
those pennies, can help, but they won't go very far in even paying
the heating bill of a McMansion.)
If you are working
at a job you hate in order to make a house payment that leaves you
so squeezed each month that you and your spouse scream at one another
on date nights, no amount of therapy is really going to get your
life back into balance. You can try to be nicer and love one another
more, but every waking moment is still a crisis waiting to erupt.
Loving and being lovable is key to a great companionship, but you
also need an action plan to remove the major stress factors as well.
Are you living
in a McMansion that sucks up more energy than the state of Rhode
Island? Do you really need to live in a home that big? Are you paying
thousands of dollars for your mother or father to live in their
own home, when they could live in the guesthouse out back for free?
Are you a single mother who could cut her expenses in half and have
her paycheck go twice as far, if you moved in with another single
mother and shared expenses and household duties? (Gloria Allred
did this when she was a young, struggling mother, before she went
on to great success in her career!)
This is why
CoAbode.org is one of the most effective springboards for struggling,
single mothers. Single mother's house sharing almost immediately
cuts a mother's expenses in half, while doubling her spending power
and time off. The model is also being used for elderly parents,
and of course has always been used by college students and rock
stars! When people share babysitting duties and basic chores/expenses,
there is more time and money for the fun (instead of work, work,
work, chores, chores, chores, homework, bills, crying, hair pulling,
sadness, resentment, unforgiveness...). Remember The Odd Couple,
about two divorced men who share an apartment? It's a good idea!
up café lattes may sound like heaven compared to rethinking
your house and car expenses, but the budget of rich, happy people
is not one where basic needs are sucking the life out of you! Driving
a fancy car or living in an expensive house is not living the "rich
life" if you are an unhappy, overburdened person who screams
at your loved ones every time they shut the door too hard, or spill
milk on a hardwood floor, or if you are working yourself toward
a health attack.
Having a budget
that allows you fun, investing and education will put you on the
path to a better tomorrow and a career that pays you more - both
in dollars and smiles. Freedom is not a zip code or a car model.
It is simply living each moment in a way that makes your soul shine
and sing. Remember: living the rich life is a path, not a lottery
ticket! Be the change you wish to see now.
Natalie online Chat: Subscribers Only:
March 14th, 2007
8:45AM through 9:30AM PT (11:45 AM ET)
Stock tips from the guru who is earning 40% annualized gains (that's
every year). Her easy 3-part investment recipe works for real estate,
stocks, classic cars, postage stamps and Beanie babies!
Living the Rich Life
Exclusive, Intimate Opportunity to Transform Your Life with Natalie
Pace , utilizing The Secret tools of investing and wealth.
Imagine living the rich life NOW. You earn a great living, enjoy
your job, have fun, exercise regularly, give back to your community,
surround yourself with people and family who adore you, invest in
stocks, bonds and real estate that earn a great return AND provide
you with satisfaction of ownership AND you are always learning more
and adding more value to your own life and earning potential. No
matter how far away from this vision you are, or where you feel
bankrupt in your life, the rich life is yours for the taking NOW.
It is simply a matter of investing your talents and energy on living
the life of your dreams, instead of focusing on debt and complaining
that you cannot do anything more than plod through the rat race.
Credit: Barry S. Selby
Event/Candid/Vision/Moments in Time Photography
This 4-day Living
the Rich Life retreat is designed to focus you on the proactive
skills, habits, mindset and mastery of success, health, wealth and
happiness. You will learn how to cook up profits with an easy to
use 3-Step Investing Recipe. This strategy outlines, step-by-step,
how to use Stock Report Cards, consumer information, online research
and simple buy low-sell high strategies to achieve superior gains
in the stock market. You will learn how to budget for fun, education,
investing and charity, instead of bankrupting your budget solely
on basic needs.
What is keeping
you from living the life of your dreams? Are you overwhelmed by
debt? Are you a fantastic earner who feels chained to an 80-hour
workweek and is seeing signs of distress in your health, family
and personal life? Are you a mother who has not had a moment to
herself in years? Do you think winning the lottery will solve everything?
Why not try a week at the beach, surrounded by a dozen others who
are proactively immersing themselves in the principles and tools
of success and happiness now today?
will live like royalty for four days of transformational reprogramming
and investing strategies with one of the most respected and successful
stock pros on Wall Street. Since the inception of her stock newsletter,
going into the 8th year, the companies featured on NataliePace.com
are earning 40 percent annualized (that is 40 cents on the dollar
every year), which puts Natalie Pace at the top of over 830 A-list
pundits. The investment club that she founded doubled their money
by the time Natalie cashed out (from 2002 to April 2004). During
this retreat, you will be immersed in easy-to-do investment strategies
(which work for all investments) and learn secrets for evaluating
breakout stocks that are poised for outstanding returns.
intensive, exclusive, educational, rewarding and FUN experience
will be limited to just 12 people, and will take place in a 4-star
oceanfront hotel in Santa Monica, California. The retreat will also
include an evening at Agape International, the sanctuary of Reverend
Michael Bernard Beckwith. (He is one of the stars of The Secret!)
If you think
you must pay down debt before you can start living and investing,
you will remain miserable. The rich life requires healthy, daily
fiscal habits. Do you think it is easier for a billionaire to save/invest
$100,000,000, than it is for you to set aside $1,000? Get the proportions
in line, and you will find your money going farther, your income
increasing, your smiles more frequent and your circle of powerful,
successful friends plentiful. Start by aligning yourself with 12
other people who want exactly the same thing that you want, the
life of their dreams!
The Rich Life
Retreat is being offered for the first time ever, and there is no
guarantee that it will be offered again in such an intimate setting.
Be sure to sign up as one of only 12 lucky individuals now. (There
are only 6 spots left! Email now!) Reply to Heather@NataliePace.com
NOW to register before the opportunity is sold out.
April 10-April 13, 2007.
Pre-Registration Cost (if registration occurs before March
10, 2007): $1655.00
(Payment Plan: $500 due upon registration. $500 on March 20. $655
on April 1, 2007. Because this is a limited opportunity, charges
if you register after March 10, 2007: $1855.00
Plan: $700 due upon registration. $500 on March 20. $655 on April
1, 2007. Because this is a limited opportunity, charges are Non-Refundable.)
Loews Santa Monica Beach Hotel, 310.458.6700
City View: $279
Ocean View: $309 a night
View: $339 a night
You can have
your own room, or share a room if you desire. The rate holds true
for single or double occupancy. You might even consider adding a
few days over the weekend for your own special time in one of the
most exciting cities in the U.S. -- Santa Monica!
with Natalie Pace: Natalie will be available for private coaching
sessions on Friday afternoon after the retreat. So, consider adding
an hour consultation one-on-one with Natalie. (Regular cost of the
coaching is $500/hour. Attendees will receive half off the normal
Monica, CA 90406
What You Will Learn:
Investing: Google, MySpace, China and Eastern Europe
- we found these investments first! Learn different strategies
for your Nest Egg vs. your Stocks on Steroids portfolio, and why
your home is more than just an investment - it is a lifestyle choice
and where you enrich and feed your soul. Practice the NataliePace.com
trademarked 3-ingredient recipe for cooking up profits. It
works in real estate, stocks, classic cars, postage stamps or Beanie
and Philanthropy: How circulating money and giving back comes
back to you ten-fold
Budget of a Yogi: The rich life is not about denying yourself
café lattes. It is about putting a budget in place that places
a value on investing, fun, philanthropy and education, instead of
just focusing on the basic needs and coming up short on all
of the other areas of your life. When all of your time attention
and money goes to the basics, you are not investing anything in
fulfillment, in growth, in health, in empowerment or in your future.
Get on track now.
Principles: Networking and Building a Team. How giving
your partners ownership gives them a vested interest in promoting
the success of your enterprise.
Capital: The truth about who gives you money and why.
Learn why your best bet for growth capital is probably lying in
your wallet, or in your inner circle.
like royalty on a PriceLine budget: Natalie has stayed
at the Waldorf Astoria, one of the most luxurious hotels in the
world, (located in New York City) for just $125 night. At a recent
conference, almost 700 people paid $300 night. She paid $75.
Learn her tricks and you can live like royalty when you travel,
and no one will ever know the difference! <P>
What you will experience:
Dream visioning on the beach (or in a beachfront hotel).
Santa Monica has over 300 days of sunshine, and the beaches
during the day are practically empty in April!
Soul inspirations with the Agape community on Wednesday evening.
(Reverend Michael Bernard Beckwith gives very inspiring sermons
on Wednesday evenings, and Dr. Rickie Byars Beckwith leads an awesome
Hands-on Coaching on Evaluating Investment Opportunities: Report
cards will help you line up the numbers. Checklists will help
you evaluate the people associated with the investment. Doing
your due diligence and turning over the tiles, gives you a more
complete picture of the health of the investment you are considering.
Board Room Problem Solving: Not only will you have
12 people at your service, you will be sitting in a 12-member board
room in one of the most exclusive properties in the world - the
Loews Santa Monica Beach Hotel! So… if you believe that what
you focus on expands and what you dream and plan for you can achieve,
you are putting a very powerful tool to work for you. You
are actively creating a world where you have a power seat in the
If you wish to book a private consultation with Natalie
Pace, she will be available Friday afternoon. If you are a premium
subscriber and you have not already used your private consultation
time, you may trade your telephone conference time for an in-person
consultation at the end of the retreat on Friday afternoon
subscribers receive a $500 discount on the event! Email now!
Break in Santa Monica, California.
Tricks to Living the Rich Life in Tinsel Town's Beach Community
on Any Budget.
You might think
we love Santa Monica just because our home offices are located here,
but it is actually the other way around. Our home offices are located
in Santa Monica because we love this city! And did you know that
this time of year, when the beaches are practically empty, and the
air temperature is still sunny and warm, an average 4-star hotel
in Los Angeles is just $220/night! (Santa Monica is slightly more,
however, there are some wonderful rates for 4-star beachfront hotels
this time of year, as well!)
Now, with the
following tricks, you too can enjoy the beautiful Southern California
beaches, the celebrity-filled restaurants, the architecturally awesome
museums, Placido Domingo's Los Angeles Opera, the fabulous Sunset
Strip, and more, without breaking the bank! Living the rich life
and visiting one of the most legendary cities in the world doesn't
have to be super expensive, if you know a few tricks. And what better
way to splurge with your tax return money?
the Rich Life Retreat. There are only 5 spaces left to
join an intimate group of individuals who are actively transforming
their reality into a field of dreams at the NataliePace.com Living
the Rich Life Retreat in Santa Monica, CA, from April 10-14, 2007.
Attendees will have four days and three nights of beachfront bliss
(Santa Monica Beach) and intensive education in stock report cards,
picking the leader in the sector, Natalie's 3-part investment
recipe and "The Secret" to wealth budget. Whether you
are a super earner who is bankrupt in his/her personal life, or
a real estate mogul looking to diversify your assets, or a business
owner looking to attract partners and expand, this retreat will
immerse you in investing, partnering, earning and learning how
to enjoy the rich life starting now. Stop whining. Start thriving.
Email now. (For more information, read "The Rich Life Retreat"
article in this month's ezine.) Email Heather@NataliePace.com
NOW if you would like to be one of the lucky dozen April 10-14,
with the Hotel. If you have a favorite hotel -- and ours
would be the Loews
Santa Monica Beach Hotel or the newly remodeled Huntley
Hotel - check online for the cheapest rate (that's
where they can usually be found). The average price of a 4-star
in Los Angeles this time of year is just $220! Such a deal! If
hotel and location doesn't matter as much to you, and you just
want to get the lowest price possible, try Priceline (see #3 below!).
Bear in mind that Loews has ocean view rooms, a view of the famous
Santa Monica Pier, is located steps from the sand, is a cab ride
from all of the movies, restaurants and entertainment you could
possibly desire, and even has their own bike and skate rental
shop, located right on Santa Monica Beach! The Huntley is offering
awesome deals right now since they just reopened. The Huntley
Hotel boasts The Penthouse bar and restaurant with the most stunning
penthouse view in all of Santa Monica! Located on 2nd
Street, The Huntley will require a long walk or a cab ride to
get to the sand, but you can stroll two blocks to the Palisades
Park, a cliff which overlooks the Santa Monica, Venice and Malibu
beach coastline. Shops, movies and restaurants are also a few
blocks away from the Huntley. Loews is more ideal for romantic
couples, families and surfers; while the hip Huntley is a better
destination for upscale trend-setters who enjoy whimsical architecture
and mood lighting.
Priceline allows you to name your own price for hotels,
and even gives you a few tries to get it right. When you go to
a city during the "off season," the prices can be bargains.
Santa Monica is not the spring break capital of the world, so
coming here in April might mean great deals and wonderful weather,
without the crowds. Try to avoid Easter weekend for the best prices.
- Go to Priceline.com
- Enter in
Santa Monica for the city and the dates you'd like to travel
- For the
cheapest rate, select Name Your Own Price (you will not get
to pick the hotel, but you will get to select 4-star, 3-star,
the area you wish to stay in and the star level
- Enter in
a price that is about 40% cheaper than the listed price. (If
you want to play it safe and hit the price on your first try,
plug in a price that is just 25-30% less expensive.)
If you are
willing to try other areas, you will get a few more chances, if
your first price isn't accepted. For instance, if your first choice
is a Beverly Hills 4-star hotel, and your price of $132/night
(40% cheaper than the average room rate of $220/night) is NOT
accepted, you could add Hollywood and then increase your price
by $5-$10. Downtown and the LAX area also have 4-star hotels,
so if you're willing to be flexible about where you stay, you
could get up to four chances to hit the acceptable price. Using
Priceline's Name Your Own Price, I've saved thousands of dollars!
I've gotten the Waldorf=Astoria In New York City for $115/night
(right after 911) and have consistently paid amazingly low prices
for accommodations everywhere I travel.
and biking along the beach. You can spend $7 parking
and less than $15 an hour on a bike or rollerblades and have one
of the most Zen rides of your life, as you cruise up and down
the Santa Monica coastline, which boasts over 17 miles of waterfront
bike paths. Be sure to bike down toward Venice, where you'll see
a collection of freak-show fire-eaters, weightlifters, smudge
stick shaman and knick-knacks that seem time-warped from the 60s!
If you're staying at Loews, they have a convenient bike/skate
kiosk just steps from the hotel. Otherwise, take Ocean Park Boulevard
to the beach. Head one block south (left), and you'll see the
parking lot on your right. Perry's Pizza rents bikes and blades!
Food. For upscale culinary delights, great people watching
and the occasional celebrity sighting, don't miss Josie's Restaurant,
The Lobster, Ivy at the Shore or The Penthouse. For great local
Mexican food that leaves plenty of dough in your wallet, try Gilbert's
El Indio. The Figtree Café on the Venice Boardwalk is a
tasty/healthy place to catch breakfast or lunch after you finish
biking/blading. The quesadilla, cornmeal pancakes and vegetable
stir-fry are all outstanding, and come with a caffeine-charged
café latte, if you desire.
Celebrated chefs Josie, Jill and Jonna (pastry chef) take fresh,
local produce and create taste bud orgasms. Don't skip dessert.
Lobster: It's rare when you have a stunning view AND
a gifted chef. Not to be missed. Lunch or dinner. Sunset is extraordinary.
at the Shore: Legendary. Wonderful grilled anything
(swordfish to steak to chicken) with enough food on the side to
feed a small village in Africa. The Ivy Gimlet will put you in
the mood for an extraordinary evening, and the occasional celebrity
sighting spices up your vacation stories for life.
Penthouse: 360-degree view of beaches and city skyline.
Simply the best view in Santa Monica. The interior design is getting
rave reviews. Great place for a drink or a meal. Definitely a
breakfast or sunset excursion.
El Indio: Homey, cheesy, fresh, yummy. Great guacamole
and traditional Mexican food at the best prices north or south
of the border. Look at the pictures on the wall for celebrities,
including Brad and Jennifer enjoying a meal there (back in the
days before Brangelina).
Angeles Opera. Placido Domingo has put the Los Angeles
Opera on the world stage. Visit Santa Monica at the end of April,
for the opening of The Merry Widow on April 28th, 2007,
to delight in the talents of diva Susan Graham. The unknown bargain
tip about the opera is that if you are willing to take your chances,
the company offers rush
tickets for just $20 to students and seniors 90 minutes
before show time. Click on rush
tickets for more information.
The "Bu" is an incredibly private community, however,
there are a few spots where you can get a taste of the local life.
Drive up the coast to Paradise
Cove for unassuming breakfast, lunch and/or mojitos.
is a gorgeous view with a pricey, tasty menu.
Getty Center and the Getty
Villa (in Malibu): Admission to the Getty is free. Parking
is under $10. View one of the largest, private photo collection
in the world, alongside master art pieces, including Van Gogh's
Irises, Rembrandt and more, in an architecturally stunning "castle"
atop Brentwood, California at the Getty. Travel back in time in
a Malibu replica of an Italian villa at the Getty Villa. Lunch
in the café or picnic overlooking the gardens. Don't miss
some of the Getty's opportunities to see local bands, theatrical
troupes and poets in their Evening
at the Getty series!
Parks. The cool thing about theme parks in the off-season
is that the lines are manageable, and if you know anyone who lives
in Southern California, you can get some of the special offers
that are available to the locals. Click to access a website with
Discounts for locals.
Little Tokyo, Korea town, Olvera Street. Southern California
boasts wonderfully diverse communities of people from around the
world. Don't miss the chance to have dim sum in China Town, sushi
in Little Toyko, barbecue and kimchee in Korea Town or churros
on Olvera Street. Try the Empress
Pavilion downtown, Woo
Lae Oak on La Cienega, The
New Otani Hotel in Little Tokyo or Olvera
Street in East Hollywood.
Global Conference. Affectionately known as "Davos
West," the Milken Global Conference brings together policy
makers, government leaders, CEOs, VIPs,
Nobel Laureates and money managers for an intensive 3-day learning
and networking experience. Policy issues and solutions in business,
government, philanthropy, journalism and academics are debated.
If you want to see how ideas are developed and promoted, this
is one of the best tickets in town. April 23-25, 2007.
"Phishing" and Other
Online Identity Theft Scams: Don't Take the Bait.
of a NASD
Investor Alert from January 28, 2005.
Internet has revolutionized the way that many individuals manage
their finances, and interact with financial service providers. With
the click of a mouse, you can view account information, pay bills,
research investments, and buy and sell securities. Unfortunately,
"identity thieves" also can exploit the Internet. Through a variety
of scams, wrongdoers have managed to steal usernames and passwords,
obtain sensitive personal and financial information, and sell risky
securities to unsuspecting customers.
theft is a growing problem online, with some vigilance and caution,
individuals can better protect themselves. This Alert tells you
how to spot some of the latest online identify theft scams targeting
financial sector customers and what you can do to better protect
yourself from falling victim to these scams.
— Fraudulent Emails That Steal Your Personal Information
is a scam that uses spam email to lure you into revealing your bank
or brokerage account information, passwords or PINs, Social Security
number, or other types of confidential information. Often the emails
falsely claim to be from brokerage firms, banks, credit card companies,
Internet auction sites, electronic payment services, or some other
service that you use. In other instances, the emails purport to
be from government agencies. To appear genuine, these emails may
* The names
of real people.
looking email addresses, such as "support@[name
of your financial institution].com".
looking logos and graphics.
to pages of a bona fide Web site.
looking fine print and references to laws.
Most of these
emails attempt to lure you into providing sensitive personal information
by requesting that you provide it in a reply email or by clicking
on a link to a Web site that mimics a legitimate Web site and asks
you to provide the information. Various "urgent" messages are also
used to lower your guard, such as:
* Your account
will be shut down unless you update your information.
need to verify your identity because your account appears to be
being used by a third-party in violation of the law.
measures to protect your account from identify theft require you
to verify your account information.
to a technical update you need to reactivate your account.
changes in the law require users to identify themselves.
have targeted customers of several major financial services firms
over the last year with such deceptive e-mail tactics. According
to a recent industry study, customers of financial services firms
were the most targeted of any business sector.1
on the Rise
Number of Active Phishing Sites Reported in 2004:
Example: In January 2004, consumers across the country received
an e-mail that appeared to be from the Federal Deposit Insurance
Corporation (FDIC), the independent federal agency that insures
bank deposits, notifying them that the insurance on their deposits
had been suspended at the direction of the Department of Homeland
Security due to suspected violations of the PATRIOT Act. Further,
the e-mail directed consumers to provide their bank account information
by clicking through to a Web site that, while appearing very similar
to FDIC's Web site, was in fact a fraudulent Web site located on
a server in Pakistan.
Horses — Hidden Software That Tracks Your Every Move Online
Trojan Horses are malicious software programs that hide in files
attached to an email or that you download from the Internet and
install on your computer. While these programs can take many forms,
Trojan Horses used in identity theft scams usually take the form
of keystroke loggers—programs that log the keystrokes you type and
allow scamsters to find your usernames and passwords, giving them
access to your online accounts. Recently, Trojan Horses have been
showing up in "phishing" scams.
Example: During the summer of 2003, a Pennsylvania teenager
contacted several members of a financial Web site, alerting them
to the availability of a new stock-charting tool. The tool was actually
a keystroke-logging program that captured the typing activity of
any user that downloaded it, and periodically e-mailed it back to
the teen. Using this technique, the teen gained access to the online
brokerage account of an investor who had unsuspectingly downloaded
the keystroke-logging program. Using the investor's brokerage account
number and password, the teen proceeded to execute a series of options
trades that wiped out almost all the investor's cash holdings. The
SEC and the U.S. Attorney's Office for the District of Massachusetts
have taken civil and criminal action against the youth.
Firm Identify Theft Scams — Using a Good Name for Crime
scamsters are creating phony Web sites that misappropriate the name
or Web site content of legitimate brokerage firms to solicit business
from unwary investors. By stealing the identity of a legitimate
brokerage firm, scamsters can claim that they are members of the
Securities Investor Protection Corporation (SIPC) and registered
with NASD. Potential investors may be urged to go to SIPC's and
NASD's Web sites to "verify" the phony brokerage firm, giving them
a false sense of security.
phony Web sites, the unlicensed brokerage firms often attempt to
sell shares of small U.S. companies to investors in other countries.
After the sale, the price usually falls and the investors lose their
money. In a twist on this scam, the fraudsters may offer to help
investors recover their losses by selling their thinly traded stocks
(usually, bought through another scam). However, in order for the
transaction to proceed, the investor must first deposit money in
an "escrow account" or buy a performance bond. The phony firm then
vanishes with the money.
Example: In February 2004, the Missouri Secretary of State's
Office issued a cease and desist order against a company for
stealing the name of a real brokerage firm and creating a fraudulent
"virtual office," including a phony Web site and fake Kansas City
address. Using this stolen identity, the operators of the phony
firm solicited international investors offering to exchange thinly
traded securities for shares of Yahoo stock. The fraudsters required
investors to deposit money in an escrow account at the National
Bank of Greece in Cyprus to comply with "short sale regulations,"
telling investors that the money would be returned after the exchange
was completed. Investors were told that the phony firm's agents
were licensed investment bankers and that it was a member of the
Securities Investor Protection Corporation (SIPC). While this was
true of the legitimate brokerage firm, located in Minnesota, it
was not true of the fraudulent virtual firm.
2005: Scams Growing More Sophisticated
scammers are growing more sophisticated by the month:
* It used
to be that misspelled company names and jumbled Web URLs were a
clear tip off to early phishing ploys. But recently, seemingly
legitimate links hijack users to a fraudulent site through technical
code buried behind the message.
Life Example: MasterCard International has identified
at least 10 instances of this deception involving www.mastercard.com.
have learned to modify a directory called a host file in Microsoft
Windows that can turn your browser into vehicle for a phishing excursion:
type in a Web address from your browser and you could be directed
to a fraudulent site.
* It is suspected
that domain-name servers have been attacked in recent months. These
servers match up users or customers with the computers they use
to access the Internet. If the server is corrupted, it's possible
that identity thieves could be routing users to a look-alike site.
Want to avoid
scams and stay on top of important investor issues? Subscribe
Investor News, a free periodic newsletter that includes
valuable information such as NASD Investor Alerts, investor-related
publications, consumer tips, and more. The newsletter also
keeps you up-to-date on investor tools and resources, and regulations
or requests for comments of interest to investors.
Seven Tips to Protect
Yourself From Online Identity Theft.
(National Association of Securities Dealers).
of e-mail requesting personal information. Don't reply
to or click on a link in an unsolicited email that asks for your
credit card, bank or brokerage account information, passwords or
PINs, social security number, or other types of confidential information,
even if it looks like the email comes from a financial institution
with which you do business. When in doubt, log onto the main Web
site of your credit card, bank or brokerage firm at the normal Web
address you use or call your firm using a telephone number that
you know or one from a previous account statement to inquire about
whether the request for information is legitimate. Alternatively,
you can obtain the main office address and primary telephone number
for any brokerage firm through NASD BrokerCheck. You also can visit
the Anti-Phishing Working Group's Web site to find out about some
of the latest phishing attacks.
suspicious Web sites. If you think a Web site is not legitimate,
leave it immediately. Legitimate firms typically offer customers
a number of ways to contact them.
your personal and financial information secure online. Here
are a few simple steps that you can take to make your information
more secure when you go online.
your computer system up to date with the latest security patches.
anti-virus and spyware detection software and be sure to update
this software regularly, as new viruses and Trojan Horse programs
personal firewall software. Firewall software should thwart
intruders from getting access to your PC over a network.
download software or files from an unknown source.
your passwords on a regular basis. Never send your password
to anyone in an e-mail. Try not to write down your password,
but if you must, put it in a safe place.
e-mailing personal or financial information.
your firm's policies on online security. Review other tips and
security instructions that may be offered to better protect
submitting personal or financial information through a Web site,
look for the locked padlock image — — on your browser's
status bar or look for "https://" [note the "s"] at the beginning
of the Internet address. While a padlock image and "https://"
does not mean that the Web site is authentic or secure, the
absence of either the padlock or the https:// does mean that
the site is not secure.
off of any secure legitimate Web site after completing a transaction.
careful when using Internet kiosks or other people's computers.
Since you don't know what security precautions have been taken,
you may be putting your confidential information at risk.
who you are doing business with. Before you open an account
with a brokerage firm, use NASD BrokerCheck to make sure the brokerage
firm and broker are properly registered and to verify phone and
address information you receive from the firm or broker. Investments
are a major financial undertaking and should be afforded the same
degree of investigation and caution as any other major purchase
you might make.
a copy of your credit report. It is a good idea to check
your credit report every year. To guard against identity theft,
look for accounts you did not open and any unexplained transactions.
You can obtain a copy of your credit report from each of the
three major credit bureaus, but you may have to pay for them.
- (800) 685-1111
Union - (800)
You may be able
to obtain free annual credit reports from these three credit bureaus
online at www.annualcreditreport.com or by calling (877) 322-8228.
your account statements. This is your last line of defense.
If you are victimized, the sooner you catch it, the better. Regularly
review your online account information for unauthorized trades,
cash withdrawals, or any other unrecognized activity; do the same
as soon as you receive each monthly or quarterly statement. If you
have moved, make sure to update your postal address with all of
the firms where you have accounts. If you receive your statements
by email and change your Internet service provider or otherwise
change your preferred email address, make sure to update your email
address with all of the firms where you have accounts. Immediately
report any suspicious activity to your brokerage firm.
quickly if you believe you've been scammed. If you believe
that you're a victim of one of these scams, you need to act quickly.
For example, you may only have 60 days to report a loss or theft
of funds through an electronic funds transfer to limit your liability.
Theft. If you believe your identity has been stolen, the Federal
Trade Commission's Identity Theft Web site contains step-by-step
directions of what you should do.
Scams. If you're the victim of a brokerage firm identity theft
scam, contact NASD's Complaint Center, the Securities and Exchange
Commissionor and your state securities regulator.
Want to avoid
scams and stay on top of important investor issues? Subscribe
Investor News, a free periodic newsletter that includes
valuable information such as NASD Investor Alerts, investor-related
publications, consumer tips, and more. The newsletter also
keeps you up-to-date on investor tools and resources, and regulations
or requests for comments of interest to investors.
Articles of Interest:
Theft: Don't Leave Your Computer Unlocked With the Keys Inside.
By Jay Pestrichelli, Senior Vice President of Client Experience,
Don't Sell on the “China's
Black Tuesday” Scare.
our Hot News on Cool Stocks list, featuring 33 companies in the
money, versus just two that are slightly in the red.
is still at the top of over 830 A-list pundits on TipsTraders.com
in annualized gains! All of the companies featured in NataliePace.com
are pulling down 38.4% gains on average every year (that's almost
40 cents on the dollar, every year). The list below features 33
companies earning great gains, versus just two that are headed in
the opposite direction.
33 companies earning great gains, versus just two companies that
are down less than 10%. It's a record I'm very proud of, and one
that my friends, subscribers and I have benefited from. (For your
information, I always wait two days after publication before I make
trading changes to my portfolio.) I was reviewing the records of
the investment club that I founded in January of 2002, and realized
that I'd not only used some of the gains from that club to launch
and expand this business, I had also doubled my cash investment!
Yes, by April of 2004, when I cashed out of the investment club,
I had doubled my money, in addition to the capital invested in NataliePace.com.
I'll be reporting
further on investment clubs in the April ezine, but please take
a look at the article "The Secret of Wealth," and consider
coming to my Living the Rich Life Retreat in April. My investing
methods have been working wonders for people going on eight years,
and there is no reason why you can't employ them to enrich your
own life. All it takes is an investment in time, a little investment
in your education and the click of a button to print out the ezine
and mid-month updates each month! How easy is that! (The returns
from the TV shows and 830 other Wall Street pundits are not coming
close to the returns we've seen.)
Sell on the "China's Black Tuesday" Scare.
truth is that the 8.8% drop on the Shanghai stock index of February
27, 2007 only negated the gains of the prior six days on that exchange.
Analysts familiar with the region, including Bob Hormats, the Vice
Chairman of Goldman Sachs, who spoke on Kudlow & Company on
February 27, 2007 after the market closed, are still bullish on
the Chinese stock market in the intermediate and long term.
It will pay
to put the day in perspective, especially since the headlines tomorrow
are bound to be sensational and to play on fear (to sell more papers).
The losses of 2.27.2007 wiped out the gains of two months only,
January and February for Nasdaq and the S&P500, and shaved the
Dow Jones Industrial Average to just 2% below where it started the
year. (See below for a chart of the indices.) All of the indices
are still up since January 2006, with NASDAQ up 6%, S&P500 up
10% and the Dow Jones Industrial Average up 12.6% over the last
can be buying opportunities.
even with the sell-off of February 27, 2007, the fundamentals of
the stock market and the economy continue to stay strong, though
there are continued signs of weakening in the real estate and mortgage
sector. In fact, the sell-off may just provide you with a buy-in
point on some of the stocks that you might have thought about buying,
like Apple and Citigroup, (in addition to the other stocks that
are highlighted below on the Hot News list). It is also a reminder
that you should take your profits in shorter windows.
If you panicked and sold in September of 2001 AFTER 9.11.01, you
lost on average -35% (NASDAQ) and -17% (DOW). If you waited
just three months, until December 2001 to sell, on average, you
would be looking at 10-16% GAINS (NASDAQ) and ZERO LOSS (DOW).
Those people who had the foresight to BUY when the markets
opened on 9.14.01, earned 30% on NASDAQ stocks and 20% on S&P
500 and Dow Jones Industrial stocks within four short months, by
January 1, 2002.
lenders took a big hit this month, when New Century Financial Corp.
reported on February 7, 2007 that the company would have to restate
earnings due to losses on subprime loans. Shareholders have filed
suit against the company and liquidity looks like a big issue, so
steer clear of New Century, unless you are a professional who understands
how to maneuver in very short, volatile windows. We'll report more
on this in depth for the mid-month update, which will go on the
home page at NataliePace.com on March 19, 2007. In the meantime,
below, check out recent news on the companies we follow, and enjoy
Year Performance Since 1991
Jones Industrial Average
for pre-election year returns since 1991
ARTICLE AVAILABLE FOR PUBLICATION
of you who have heard me speak know that I believe in circulating
money and in giving to charity. This month, my charitable contribution
is the report that I did from the U.S. Department of Peace conference
that was held in Washington D.C. earlier this month. I am making
that report/article available free of charge to anyone who wishes
to publish it on their own web site.
Simply go to
NataliePace.com. Cut and paste the article onto your home page.
Include my bio and photo with the article. Also include the line:
"Reprinted by permission of NataliePace.com." Activate
a link to the NataliePace.com home page, so that readers may check
out other articles of interest on my website. It is that easy! (Please
note: I do not own the rights for the photos. If you wish to reprint
one of the photos, you'll need to contact The Peace Alliance directly
and seek permission with them.)
entitled, "Stars Shine on Marianne Williamson's Peace Plan,"
discusses the current Department of Peace bill that was introduced
to the House by Representative Dennis Kucinich on February 5th.
This bill seeks to put a Secretary of Peace at the table of power
in Washington. FYI: The Iraq Study Group has recommended that a
senior executive be put in charge of reconstruction efforts in Iraq,
and has been very critical of President Bush for not having a coordinated
reconstruction effort. For more information on how this role would
function and serve and information on how to weigh on the bill with
your Congressmen, please read the article.
In honor of
the Season of Nonviolence -- which runs from January 30th
through April 4th and celebrates the lives of Gandhi
and Martin Luther King, why not send the article out to 5 of your
favorite websites -- along with instructions on how they can reprint
the article for free to their readers!
Yours in peace
OPPORTUNITES AND INFORMATION:
Rates: In a Pause Pattern. The
Federal Open Market Committee paused in August, September, October,
December and January, after raising interest rates 17 consecutive
times prior. The federal funds rate remains at 5-Ň%. The next
meeting is scheduled over the course of two days at the end
of March, on March 20-21.
in reading the Minutes
of the January FOMC meeting for yourself? You can. They are
available online. Click on FOMC,
or go to FederalReserve.gov, to read! According to the FOMC,
"Readings on core inflation have improved modestly in recent
months, and inflation pressures seem likely to moderate over
meeting schedule for the 2007 calendar is: 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.
Chats: Check out the Calendar section of NataliePace.com
regularly. There are many wonderful opportunities to chat one-on-one
with millionaire money managers, economists, respected money
gurus and CEOs! Don't miss out. Enter the chat room now to make
sure that you know how to do it and that you don't have any
firewall issues preventing you from accessing the room. (You'll
need your passwords.)
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 goals, 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.
I have listed the companies that I own or intend to buy under the
column "NP OWNS?"
News on Cool Stocks List
Companies (Hot List):
Satellite Radio (SIRI)
Removed on 2.1.07 with flat performance.
Removed on 2.12.07. 82.5% gains are good enough for us.
Vegas Sands: Removed on 1.1.07. 139% gains are good enough
for us. $223 million in insider selling, just at the time that
the company is under pressure to finalize the terms of their building
of "Asia's Las Vegas" in Macao smells fishier than the
Hong Kong harbor to us.
Wireless (RELM): This small company has an impressive CEO
who has done great things. The sales are increasing. Normally this
would keep a company like RELM on our list. My concern is simply
that while the marketplace should be huge, the Federal budget line
items may not be ramping up for this type of spending. Additionally,
with all of the focus on cutting back on defense, this communications
company may suffer, even though great communications are key to
firemen, police officers, etc. as well.
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 (if you have already purchased them or if you are willing to
come in at a higher price). 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.
Price when featured
Gains since original feature
Global Investors just purchased over 5% interest in Apple
on January 13, 2007. Google CEO Dr. Eric Schmidt joined the
Apple board of directors in Oct. 2006. Very positive for the
long term. Steve Jobs is one of our Executives of the Year
in 2007. Read the article in vol. 4, iss. 1. Former CFO Fred
Anderson resigned from the Apple Board on 10.4.06, due to
the options backdating scandal. The internal investigation
at Apple revealed that Steve Jobs did NOT directly benefit
from any back-dated options, but that he "was aware that
favorable grant dates had been selected" according to
a company press release. The board at Apple is standing behind
Jobs, but the Los Angeles Times put a scathing article
on the scandal on the cover of its paper January 3, 2007.
More ink could follow, though most of the major press orgs
are barely mentioning the problem, focusing instead on the
sexy new Apple iPhone. The popularity of the iPod and the
dominance that Jobs is gaining with his alliances with Disney
and Google should keep Apple at the top of the technology
performers over the next few years at minimum. On the other
hand, headlines on the options backdating scandals could spook
investors into selling. The price is high, and the new iPhone
isn't going to be released until June. If there is any bad
news in the meantime, there may be a buying opportunity. (However,
Apple has done a smash-up job of luring consumers, investors
and reporters to focus on products and sales, which are mind-boggling,
instead of the SEC investigation.) Apple's licensing deal
to sell Universal Music is set to expire in May. Apple is
a company you're going to want to own - and everyone wishes
they'd had the prescience to buy in at a better price. On
1.9.07, Apple(R) announced that more than two billion songs,
50 million television episodes and over 1.3 million feature-length
films have been purchased and downloaded from the iTunes(R)
Store (www.itunes.com), making it the world's most popular
online music, TV and movie store. If you want in now, there
are a lot of great reasons to jump into the iStore phenomenon.
Jobs is a genius, and the world is his oyster.
to the M&A Mania article in volume 3, issue 6 for details
on Citigroup's appeal. According to an Associated Press report
on 11.29.06, Citigroup will be one of the first banks operating
in China. Global Strategist Marc Miles says, "Citigroup
has bought a significant stake in one of the ailing banks.
They were willing to absorb huge existing debt in order to
get in. But when you look at the population and the growing
wealth, that looks like a good long term investment."
China is due to open its banking sector fully to foreign competition
by Dec. 11 under conditions set when it joined the World Trade
Organization in 2001. Purchased AkBank on 1.09.07. Akbank
currently has 675 branches and 1,617 ATMs and is a premier,
full-service retail, commercial, corporate and private bank
in Turkey, with assets of $39.6 billion, loans of $19.6 billion
and a deposit base of $25.0 billion. It is the third largest
bank by assets and the most profitable private banking institution
in the country. Hired new CFO, Gary Crittenden, on 2.25.07,
to be effective 3.15.07. (Sallie Krawcheck will return to
her old job as Chairman and CEO of Citi's Global Wealth Management.)
Sandy Weill spoke on CNBC on 2.26.07 on having such a big
company with an umbrella over many divisions. He says, "The
model really works especially right now, when we have very
good times in the economy. Emerging markets are doing very
well. Everybody is contributing to prosperity. I'd rather
be with a company that has a strong capital base, diversified
by companies and regions, in the event of a downturn."
Regarding interest rates and the ease of securing money these
days, Sandy commented, "Money is very readily accessible,
and interest rates are very low. Who would have thought that
the Feds would raise rates by and the Treasury market would
Announced1Q earnings on 2.7.07.
Revenues were up 10% from the year prior, to $9.7 billion.
Net income more than doubled, at $1.7 billion, over $734 million
the year prior. Wow! Disney/Pixar/ABC, distributed by Apple
iTunes. Hmmm… The most successful animation film company meets
the most successful family media company meets the most successful
new media device, the iPod. Sounds like the happiest place
on Earth to us. The largest individual stockholder is Steve
Jobs. During the first quarter of fiscal 2007, the Company
repurchased 29 million shares for $957 million. As of December
30, 2006, the Company had authorization in place to repurchase
approximately 177 million additional shares, of which the
Company has repurchased 18 million shares for $632 million
subsequent to quarter-end through February 2, 2007. Cash on
hand: $2.4 billion. Debt: $12.3 billion. Market cap: $72 billion.
Pirates of the Caribbean blockbusters equal film profits,
DVD profits and renewed interest in the theme parks! According
to the annual report, CEO Bob Iger received $22 million in
compensation last year (not including stock options). His
pay included $2 million salary and a $15 million cash bonus.
The company's annual shareholders meeting will be March 8
at the Ernest N. Morial Convention Center in New Orleans.
In his keynote at the Consumer Electronics Show, Bob Iger
said, "Since the day Mickey dared to speak in a `talkie,'
Disney has boldly taken its content to the cutting edge. Wherever
the path of unfolding technologies and imaginative new platforms
may lead, Disney will be there. Year in and year out, we are
proud to bring our creative content to your innovative products."
CEO Bob Iger was one of our Executives of the Year in 2007.
Read the article in vol. 4, iss. 1.
See the articles, "Wow Dow,"
in vol. 3, iss. 11 and, "eBay's Skype Outpaces News Corp's
MySpace," in volume 3, issue 9. Skype's new products
(Wi-Fi VOIP phones in particular and associated hardware)
will likely start adding a significant chunk to the eBay bottom
line by the first quarter of 2007, since Skype is growing
faster than MySpace in terms of registered users, at 171 million
as of December 31, 2006. According to Google CEO Eric Schmidt,
"We continue to forge significant partnerships with companies
such as eBay, Fox Interactive Media, and Intuit that will
be of great value to all involved." eBay bought StubHub Inc.
for $310 million on 1.12.07. StubHub said it generated about
$100 million in revenue in 2006 on $400 million gross ticket
sales. CEO Meg Whitman was one of our Executives of the Year
in 2007. Read the article in vol. 4, iss. 1. Reported year
end results on 1.31.07: eBay reported record consolidated
Q4-06 net revenues of $1.7 billion, representing a growth
rate of 29% year over year. GAAP net income in Q4-06 was $346
million, or $0.25 earnings per diluted share, an increase
of 24% year over year. For the full year, eBay generated consolidated
net revenues of $6.0 billion, a 31% increase over the $4.6
billion generated in 2005. Consolidated net income increased
4% year over year to $1.1 billion, or $0.79 earnings per diluted
share. The company repurchased approximately 31 million shares
of its common stock at a total cost of approximately $1.0
billion during the quarter, for a cumulative total cost of
approximately $1.7 billion since the program was announced
in July 2006. The company may purchase up to an additional
$300 million. According to CEO Meg Whitman, "All three
of the company's business units delivered impressive results
this quarter, including record net revenues from our Marketplaces
business, strong total payment volume on PayPal, and a triple-digit
increase in the number of Skype users."
See the article,
"Gap's Inc(RED)ible Campaign," from vol. 1, iss.
12. We were anticipating that more people would catch the
(Product) Red bug in the 2006 season, but the red states opted
for electronics, cheap duds (JC Penney and Walmart) and those
beautiful, anorexic waifs in Victoria's Secret's skimpy clothing.
The Gap experienced a 4% decline in sales (from last December),
and reduced expectations for their full year as a result.
Poor performance resulted in the resignation of the President
and CEO Paul Pressler, Gap Inc., and a number of division
heads at Gap and Old Navy, including the resignation of Charlotte
Neuville, 54, head designer for Gap North America. There
is reason to be optimistic that the company will go back to
its roots and come out with a plan that excites the world
again, especially since January sales surprised everyone by
coming in higher than expected. Additionally, in the "show
me your friends and I'll tell you who you are" category,
the friends surrounding Gap these days are mighty, powerful
and successful. You've got Goldman Sachs advising them on
the turnaround strategy. GAP is one of an elite group of companies
that are attached to PRODUCT (RED), the pet project of Bono
and Bobby Shriver, alongside Apple, American Express, Motorola,
Emporio Armani and more. Between now and the annual report,
scheduled to be released at the end of March, 2007, the share
price should be turbulent. The company is under pressure to
report something good on the leadership and designer front,
to offset the poor performance of 2006. Also, bear in mind
that there have been $123 million in insider sales since August
2006, mostly by members of the founding Fisher family. (All
of the sellers still hold tens of millions of shares.) The
fast, definitive action, the ongoing commitment to Bono and
Bobby Shriver's PRODUCT (RED) and having Goldman Sachs in
their corner really sets the stage for some promising surprises
for this legacy clothing retailer. Especially if the team
comes up with a winning designer. 4Q earnings will be announced
on 3.1.07. The company is closing its Forth and Towne stores.
Eastern Europe -- U.S. Global Investors
Vanguard seems to be in the right
countries, and within those countries, in the right growing
sectors. See vol. 2, issue 8. Great way to diversify, as well
as to add growth. Eastern EU economy rocks. Western EU economy
stalls. Your international fund should reflect the difference.
Purchased Tanox on 1.16.07. Received
8 FDA approvals in 2006. The FDA approved the use of Herceptin
for treatment in early-stage breast cancer on 11.17.06. DNA
is a Great Blue Chip Hold for your long-term portfolio. Genentech
specializes in DNA-based cancer treatments that might ultimately
eliminate the need for chemotherapy! (Avastin chokes off the
blood supply to the tumor.) Biotechnology is a volatile sector,
but this popular #2 biotechnology company has a big pipeline
of drugs. Cancer drugs are a $20+ billion annual market, and
DNA has appx. $8-9 billion of the market cornered. Avastin
alone is expected to bring in $2 billion in annual sales by
2007. Genentech reported record annual earnings results on
1.10.07: U.S. product sales of $7,169 million, a 39% increase
over sales of $5,162 million in 2005 and GAAP net income of
$2.113 billion, a 65% increase over net income of $1.279 billion
in 2005. Tarceva is rocketing up the sales charts, with sales
of $402 million in 2006.
Owns YouTube.com, one of the most
popular sites on the web. Google joined the S&P 500 on
3.31.06. Great Blue Chip Hold for your long-term portfolio.
According to Google CEO Eric Schmidt, "We continue to
forge significant partnerships with companies such as eBay,
Fox Interactive Media, and Intuit that will be of great value
to all involved." YouTube is working hard with studios and
music publishers to get licenses in place, however, with the
Universal Music Group suing MySpace, there is pressure to
get this done very quickly. We'll keep you posted. $48 million
sold so far by insiders in Dec. 2006 and Jan. 2007; $14 million
by Eric Schmidt. Dr. Eric Schmidt was one of our Executives
of the Year in 2007. Read the article in vol. 4, iss. 1. Google
reported 4Q revenues of $3.21 billion for the quarter ended
December 31, 2006, an increase of 67% compared to the fourth
quarter of 2005 and an increase of 19% compared to the third
quarter of 2006. Net income was $1.03 billion. In the 2nd
quarter of 2007, stock options granted in 2004 will become
vested, and employees could have a lot of fun cashing in.
Google anticipates taking up to $160 million on earnings for
these vested options. The growth continues to be amazing,
and the share price continues to be amazingly volatile! The
savvy trader would buy on disappointment and sell on hot headlines.
As of December 31, 2006, cash, cash equivalents,
and marketable securities were $11.2 billion. On a worldwide
basis, Google employed 10,674 full-time employees as of December
31, 2006, up from 9,378 full time employees as of September
30, 2006. You can listen to a webcast of the earnings call
to Google CEO Eric Schmidt, "We continue to forge significant
partnerships with companies such as eBay, Fox Interactive
Media, and Intuit that will be of great value to all involved."
Intuit Inc. reported on 10.30.06 that the Securities and Exchange
Commission has closed its investigation into the software
maker's stock option accounting practices without taking any
punitive action. 11.17.06 earnings report: 1Q 2007 revenue
increased 19% over the year-ago quarter to $362.1 million.
Growth was primarily driven by strong sales of its QuickBooks
software and add-on solutions, payroll and payments. Intuit
posted a GAAP (Generally Accepted Accounting Principles) net
loss of $58.9 million versus a net loss of $45.8 million in
the first quarter of 2006. According to the company press
release, "Intuit typically posts a seasonal loss in its
first quarter when it has little revenue from its tax businesses."
2Q revenue last year was 144% higher than 1Q in 2005 and similar
results in 2004. $72 million in insider sales in 2006, mostly
by Scott Cook, Chairman of the Board, who still has 26 million
shares remaining. Intuit's TurboTax product is loved by the
media and by consumers, and gets the first spot on the search
word "taxes" on Google. According to Amazon.com,
Intuit has seven of the top 10 bestsellers for office and
business, including the top four bestsellers. Announced 2Q
earnings on 2.22.07. Intuit posted GAAP (Generally Accepted
Accounting Principles) diluted net income of $145 million
in the quarter versus diluted net income of $183 million in
the second quarter of 2006.
2007, JetBlue's grounding of planes due to snow storms iced
the stock, but we think things will thaw in Spring and Summer,
as business and family travelers climb back onboard. "We think
recent operational shortcomings will be addressed and will
not side-track the company's 'return to profitability' plan,"
said Michael Linenberg, an analyst for the Merrill Lynch research
firm. "Also, the 22% sell-off in the shares since mid-January
represents an attractive entry point." The share price could
be bumpy now through the next earnings call in April. If you
invest in JetBlue, bear in mind that a spike in gas or oil
prices would severely ping profitability at the airline. Fuel
is one of the biggest expenses of any carrier, and operating
margins are sliver thin.
Have you visited the Coffee Bean
and Tea Leaf shops lately? Seen Krispy Kreme doughnuts in
the pastry case? Sales per factory store increased approximately
16% and 12% over last year's 3rd quarter, according
to a press release issued by KKD on 12.11.06. Revenues were
down to $117 million for the 3Q of fiscal 2007, which ended
10.29.06, compared to revenues of approximately $129 million
for the third quarter a year ago, largely due to a decrease
in the number of factory stores. According to Daryl Brewster,
President and Chief Executive Officer, "The Company has agreed
to settle the class action lawsuit and most of the shareholder
derivative litigation. Average unit volumes rose at Company-owned
stores. Krispy Kreme continued its international expansion
while filling several key management positions critical to
achieving sustained growth." KKD is expanding into Asia -
namely Macao, the Phillipines, Hong Kong, Indonesia and Japan.
If you love their product, KKD's CEO has proven to be a turnaround
specialist, and he's done a great job over the past year.
KKD caught up with all of their SEC filings on 1.29.07, and
is looking to the future now. KKD refinanced old debt on 2.17.07.
The company just announced the whole wheat doughnut? Hmmm
Read "Sun Powers Whole Foods,"
article in vol. 3, iss. 10. Silicon is in high demand, and
MEMC has been able to price its product and pick its customers
accordingly. On 1.25.07, the Company reported net sales of
$420.5 million, which represents an increase of over 10% from
the second quarter level of $370.5 million. Net income was
$129 million. MEMC ended the fourth quarter with cash and
short-term investments of $585.5 million, compared to $451.9
million at the end of the prior quarter. During the 3rd
quarter, MEMC Electronics finalized its $5-$6 billion solar
wafer agreement with Suntech. As part of the agreement, the
company received a warrant to purchase up to a 4.9% equity
stake in Suntech. Nabeel Gareeb, MEMC's CEO, reports "For
the full year 2006, MEMC grew revenue by almost 40%, resulting
in the company crossing over the one-and-a-half billion dollar
mark in revenues. Our financial performance and profitability
improved significantly in almost every category in 2006 including
operating profit, which more than doubled versus the prior
year, gross margin which grew to a record $689 million, or
almost 45% of sales, and non-GAAP EPS, which also more than
doubled compared to 2005. In addition, we achieved a return
on assets (net income divided by average total assets) greater
than 25%, operating cash flow of 34% of sales and free cash
flow of 25% of sales." MEMC will receive $2.5 billion to $3
billion in revenue from sales of the wafers over the 10-year
period from Taiwan's Gintech Energy (solar). MEMC also will
be eligible to purchase a 10 percent interest in Gintech,
as well as acquire the rights to a parcel of land of about
1.7 hectares, or about 4.2 acres, located within the Hsinchu
Science Park. Buy rating and $54.00 price target at Jefferies.
You can listen to it at the company's 4Q conference call from
Thursday, January 25, 2007 at www.memc.com.
Pace's Exclusive Forbes.com
Video Network Q&A with Patrick Lo
(from August 2006). Award Heaven! Patrick Lo, CEO, won the
Ernst & Young's Entrepreneur of the Year Award (on 6.16.06),
NetGear is on Business Week's Hot 100 list (for the 2nd
year), NetGear was awarded Best Buy's Bravo Award for Business
Excellence and POPULAR MECHANICS just gave NetGear's Skype
phone its Breakthrough Award. The NETGEAR Skype WiFi phone
is available online for a price of $249.99. Skype currently
has over 171
million registered users (as of 12.31.06), and the NetGear
phone is one of the first Skype Wifi phones. An October report
from Jupiter Research predicted that 20.4 million U.S. households
will subscribe to some form of Internet-based broadband phone
service by 2010. Judges from the IT Industry and CRN readers
rated NETGEAR Best in Service and Support among crowded networking
category that included companies worldwide with both voice
and data legacies in Dec. 2005. Christine M. Gorjanc has been
awarded the position of Chief Accounting Officer. $151.1 million
in cash and short-term investments as of 10.26.06. 4Q And
full year 2006 earnings were released on February 15, 2007.
2006 net revenue increased to $573.6 million, 28% year-over-year
growth. Net income, computed in accordance with GAAP, for
2006 was $41.1 million or $1.19 per diluted share. This net
income was a 22% increase compared to net income of $33.6
million for 2005.
Vol. 2, iss. 10
Owns Owns Fox, MySpace, and print
publications. Just sold DirecTV. News Corp. has completed
$2.5 billion of a $3.0 billion buyback program initiated last
June, and increased the stock buyback program to $6.0 billion.
DVDs include: Ice Age: The Meltdown and X-Men. Theatrical
hits include: Borat, The Devil Wears Prada, Little Miss
Sunshine and Napoleon Dynamite. Universal Music
Group is suing Myspace, but previous hard stances against
AOL, Yahoo and YouTube were settled once the companies agreed
to pay royalties for the songs. MySpace CEO Chris DeWolfe
and President Tom Anderson were our Executives
of the Year in 2006.
Read the article in vol. 3, iss. 1. On 2.8.07, Rupert Murdoch
spoke out on a number of key issues. Murdoch
said that revenue from MySpace and other sites such as gaming
news network IGN, which make up the company's Fox Interactive
Media unit, could hit $1 billion in the company's next fiscal
year, which ends in June 2008. He added that sales from FIM
could wind up representing as much as 10 percent of News Corp.'s
total revenue within the next five years. Regarding selling
DirecTV to Liberty Media, Murdoch said that he still believed
satellite TV was a great market for News Corp. in Europe and
Asia but that competing in the U.S. has grown difficult since
DirecTV cannot offer the bundled packages of Internet access,
video and voice that cable and phone companies can. "The appeal
of the triple play, and potentially the quadruple play with
mobile, is tough to compete with," he said.
See issue 44. 1st featured
Named to Deloitte and Touche's
prestigious Technology Fast 50 Program for Silicon Valley
on 10.26.06. It was announced on 2.13.06 that Cisco will distribute
Opsware's products worldwide and that the companies will collaborate
on advanced network management solutions built on Opsware's
Network Automation System. Opsware automates the complete
IT lifecycle and enables IT to automatically discover, provision,
patch, configure, secure, change, scale, audit, recover, consolidate,
migrate, and reallocate servers, network devices and applications.
Over 350 of the world's largest companies, outsourcers and
government agencies use Opsware to deliver this new, automated
model of IT. Opsware announces 4Q and full year results
on March 6, 2007 before the market opens. Read the Company
of the Year
article in vol. 1,
near 52-week low.
2005 Company of the Year. Read vol. 1, iss. 56.
lost $223.1 million in the 4th quarter, largely
due to impairment and acquisition costs of Macugen eye disease
treatment business and Eyetech, a company OSIP purchased last
year. For the full year, OSIP lost $582.2 million, or $10.22
per share, compared with a loss of $157.1 million, or $3.02
per share, in 2005. Revenue rose to $375.7 million from $174.2
million. Tarceva is the genetic based "cancer pill,"
and sales have been exploding, up to $402 million in 2006,
after being approved by the FDA in just 2004. OSIP is a partner
of Genentech (DNA) and Roche. OSIP is now testing Tarceva
as an application for other cancers, including lung cancer.
Industry sales data has placed the cancer drug market's value
at more than $20 billion annually and it is growing fast.
is installed in GM cars; GM is losing market share and having
biz cash flow issues. Has had negative impact on XM. Mercedes
just agreed to make SIRI standard on 2/3rds of 2007 cars.
SIRI has deals with Ford, MBZ, Jeep, Dodge, BMW, VW, Audi
and Rolls-Royce. SIRI paid out 22,058,824 million shares of
common stock, valued at approximately $82.9 million, on 1.9.07
to Howard Stern and affiliates for beating subscriber growth
projections by 2 million. Sirius ended 2006 with approximately
6,024,000 subscribers. Originally XM projected 9 million subscribers
by year's end, but the company ended the year with only 7.625
million subscribers, adding only 1.695 million subscribers
in 2006, compared to SIRI's record 2.7 million subscriber
additions. The companies issued a joint press release on February
20, 2007 saying that they will combine the companies, for
an "enterprise" value of $13 billion and net debt
of $1.6 billion. Sirius reports earnings on Tuesday, February
27, 2007 (after we go to press with this ezine). Mel Karmazin
remains CEO of the combined company, while Gary Parsons, the
CEO of XM-SR, will become the Chairman. You can access the
earnings call at: http://investor.sirius.com/.
Sohu (Chinese Co. ADR)
918.7 Mil Market Cap
See NataliePace.com ezines, vol.
3, issue 4 and volume 2, issue 9 for feature articles on Sohu.
Financial Times ranked Sohu in the Top 10 Chinese Global
Corporate Brands on 9.6.05 (6 days after our first feature
article). Sohu was selected as the official sponsor of
Internet Content Service (ICS) for the Beijing 2008 Olympic
Games. See Dr.
in an exclusive interview on the Forbes.com Video Network,
and, separately, in our January 2007 ezine. Could be some
bumps in the road between now and Beijing Olympics 2008, which
should ultimately be worth it. Dr. Charles Zhang is one of
our CEOs of 2007. Read the articles in vol. 4, iss. 1. Announced
4Q and full year earnings on 2.5.07: Record advertising revenues
of US$91.8 million, up 29% year-on-year. Fiscal 2006 GAAP
net income of US$25.9 million or US$0.68 per fully diluted
share year. Dr. Charles Zhang says, "I have full confidence
that our competitive advantage in technology will solidify
Sohu's leadership position in the China Internet space, especially
in the brand advertising market." Ms. Carol Yu, Co-president
and CFO of Sohu.com, stated, "Our primary focus continues
to be on our core advertising business, which contributed
68% of our total revenues for fiscal year 2006. Our outlook
remains bullish, especially during the run-up to the 2008
Olympics. Our most enviable role as Internet Sponsor of the
Beijing 2008 Olympics is the most important differentiating
factor between Sohu and other Internet companies." As of December
31, 2006, Sohu's cash, cash equivalents and investments in
marketable debt securities balance was US$129.7 million.
SunTech Holdings Co. Ltd (Green
& Chinese Co. ADR)
See vol. 4, iss. 1 for our Company
of the Year article, which names SunTech the Company
of 2007. Also, check out vol. 3, issue 10, and vol. 2, iss.
12 for our article on solar energy. On February 21, 2007,
Suntech's CEO, Dr. Shi joined the Global Roundtable on Climate
Change which is part of the Earth Institute of Columbia University
in the City of New York. The Global Roundtable brings together
more than 100 high-level, critical stakeholders from all regions
of the world. On 2.15.07, STP announced that it had raised
$500 million in a public debt offering of senior note convertibles,
due in 2012. STP had to raise its offering due to strong demand
(a very good sign). STP and the University of New South Wales
signed a new $1.2 million collaborative research agreement
through 2007 with a $3 million extension through 2010. Suntech
will supply solar modules with an aggregate output of 23.2MW
to Atersa for installation in the Photovoltaic Grid Connection
Park in the Extremadura region of Spain, the world's largest
solar power plant. SunTech is also the official solar provider
of the 2008 Beijing Olympics, so expect that it will enjoy
a lot of buzz over the next 18 months. ''I am very pleased
that our team has yet again proven that Suntech is the industry
leader in combining world class R&D advancements with
high quality products while maintaining the lowest cost per
watt solution, bringing us one large step closer to being
the first solar manufacturer to reach grid parity,'' CEO Shi
said, commenting on the development of "semiconductor
finger technology." Dr. Shi is one of our Executives
of the Year in 2007. Read the article in vol. 4, iss. 1.
T. Rowe Price Em Eur & Mediterranean
See vol. 2, iss. 8
See vol. 3, issue 4 and vol. 2,
issue 8 for articles on why Eastern EU rocks, while Western
EU stalls. Great way to diversify, as well as to add growth.
Go global with the emerging countries. Avoid the countries
in the EU that are stalling in economic growth, like Germany
and France. International investing in the right sectors and
countries pays off!
See vol. 3, issue 9, "eBay's
Skype Outpaces News Corp.'s MySpace" for a report card
that features Time-Warner. TWX's The Departed won Best
Picture of the Year! AOL and Time-Warner have finally figured
out how to work together, and Chairman & CEO Richard D.
Parsons, successfully fought off Carl Icahn. As of December
31, 2006, Revenues rose 4% over 2005 to $44.2 billion, reflecting
increases at the Company's Cable and Networks segments. Net
Debt totaled $33.4 billion, up $17.3 billion from $16.1 billion
at the end of 2005, due primarily to the Company's stock repurchase
program and the closing of the Adelphia and Comcast transactions.
From the inception of its stock repurchase program through
January 30, 2007, the Company has repurchased approximately
912 million shares of common stock for approximately $16.4
billion. At existing price levels, the Company expects to
complete its $20 billion program in the first half of 2007.
After a series of blunders, could it be TWX's time to shine?
AOL is now an advertising-supported business. At AOL, Revenues
declined 3% ($58 million) to $2.0 billion, due to a 13% decrease
($210 million) in Subscription revenues, offset in part by
a 46% increase ($151 million) in Advertising revenues. Ron
Grant was appointed President and COO of AOL LLC on November
21, 2006, by AOL's new Chairman and CEO Randy Falco. Grant
has held senior positions on both sides of the aisle - at
AOL and at Time-Warner, making him ideal for the job. Prior
to being appointed Chairman and CEO of AOL, Mr. Falco was
President and COO of the NBC Universal Television Group. Jonathan
Miller's departure was unexpected, but the transition seems
to be a smooth one. All internal communiqué awards
Miller kudos for setting AOL on the right track prior to his
departure, which is a huge leap forward compared to the internal
squabbling that characterized TWX/AOL at the time of the merger.
Wall Street approves and the stock prices have been up.
trading on the AMEX stock exchange on 12.11.06. (Also trades
on the Toronto Stock Exchange.) See the feature interview
with CEO and Chairman Rob McEwen in vol. 3, iss. 2, and click
to hear Natalie
Pace's Q&A with Rob McEwen
on the Forbes.com Video Network.
Note: U.S. Gold is not producing gold at this time; is it
a gold exploration company, based in Nevada. Rob McEwen, Chairman
and CEO, was awarded the "Most Innovative CEO" award in 2006
by Canadian Business magazine in its fifth annual "All-Star
Execs roundup." On Nov. 3, 2006, Rob McEwen, Chairman and
CEO, and his wife Cheryl McEwen were honored by Tiffany &
Co. with the 2006 Tiffany Mark Award. The Tiffany Mark Award
honors men and women who are making their "mark" professionally
and in their community through tireless efforts on behalf
of charities and organizations they care about deeply. The
McEwens are avid philanthropists, particularly in the field
of medicine. Motley Fool just added U.S. Gold to their "5
Low-Priced, High-Star Stocks" on 2.6.07. As more press
comes on board, the price should reflect the wooing of Wall
Street investors. (Now, if the company strikes gold, we'll
all be geniuses…)
Wilderhill Clean Energy Portfolio
See vol. 3, issue 10, and vol.
2, iss. 12 for articles on solar energy. This is a well-managed
"smart" ETF, which updates its holdings regularly,
but falls and rises on the good or bad news of alternative
energy companies which it may not even hold in the portfolio.
Fell earlier this year on bad news at Evergreen Solar, with
regard to silicon supply, even though Evergreen Solar was
not a major holding. Top holdings on 1.12.07: SunPower, OM
Group, Ballard, Energy Conversion Devices, SunTech, Ormat,
Evergreen, Ormat and MEMC Electronic Materials.
4, issue 3, "Money Grows on WisdomTrees." This is
a well-managed "smart" ETF, which updates its holdings
regularly, and trades on earnings instead of market cap. Trading
off the boards with a war chest of capital and a former SEC
chairman as one of the senior advisors.
SNE) and Sunoco (NYSE: SUN) both had great runs for the list! LifeCell
(NASDAQ: LIFC) posted over 180% gains before being moved to the
Cooling Off list. Bioteq Environmental (TSE: BQE) had 144% gains.
Rio Tinto was removed on 11.15.2006 with 145% gains. Las Vegas Sands
was removed on January 5, 2007 with 139% gains, Agilent on 2.1.07
with flat performance, and RELM Wireless was taken off with 3% gains
on 2.1.07. Blockbuster ran up 82.5% in gains, which we cashed in
on Feburary 12, 2007.
removed from the Hot Stocks List:
Price (when featured)
Price (when "sold")
Gains or Loss
The company's fourth quarter Return
On Invested Capital was 29% -- a new high. 2006 net income
of $3,307 billion, includes $1,816 billion income gains from
selling off their semiconductor business. Agilent is still
in restructuring mode. We're too impatient to wait. This company
was removed on 2.1.007.
RISK: VERY HIGH
See vol. 3, issue 4, "Blockbuster
Sale." At that time, BBI was a very high-risk company
in a competitive market, when/where films may be downloaded
instead of rented in the near future (think iPod). Now, it
appears as though BBI is going to make its own run at the
digital download market, however, it'll not only have to compete
with Apple, it will also run up against Wal-Mart. BBI plans
to enter the digital download market by the end of 2007, according
to reports from the Consumer Electronics Show in Las Vegas,
January 2007, which seems to be almost a year too late, since
Wal-Mart just launched their own film download service. In
this high risk, highly competitive marketplace, it pays to
be more cautious than optimistic. Also, if I were to bet on
anyone winning the film download war, it would be the companies
that have a lot of consumers packed into their stores, like
Apple and Wal-Mart. 82.5% gains is good enough for us. Deleted
from the hot news list on 2.12.07.
Las Vegas Sands Corp.
Read Vol. 2, Iss. 7
Read "Company of the Year"
article in vol. 4, iss 1 and Viva Las Vegas! From vol. 2,
iss. 7 for reasons why LVS was added to the hot list in July
2005, and then taken off of the Hot News list, effective 1.1.07.
LVS has a high price to earnings ratio (at 84.00), high debt
(with a debt equity ratio of 2.0) and the loosest insider
selling (at $223 million in the last six months). Too bad
the slot machines at the Sands and Venetian aren't cashing
out $223 million for Las Vegas and Macao casino visitors,
instead of lining the pockets of Las Vegas Sands executive
insiders. Insider selling of this magnitude, right at the
time when the company is under pressure to finalize the terms
of their proposed building of "Asia's Las Vegas" in Macao
smells fishier than the Hong Kong harbor. This is further
exacerbated by the many reports I've received from Chinese
economists and investors who confirm that the government officials
have intentionally slowed the pace of foreign companies building
in China and Chinese provinces, like Hong Kong and Macao.
A key disclosure in Las Vegas Sands' November 9, 2006 earnings
report convinced us to take Las Vegas Sands off of the Hot
News list this month as well. According to the quarterly earnings
report, "The Company does not have all the necessary Macao
government approvals that are needed in order to develop the
Cotai Strip developments." 139% gains since we first featured
the company in July of 2005 works great for us, even if the
stock closed at $103.74 on 1.12.07. Incidentally, for those
willing to risk for more upside, Dr. Marc Miles, global strategist,
advises that: "The Chinese government gets significant
revenues from those gambling ventures. It also sees them as
a way for the new middle class to spend their money internally."
Even so, that doesn't mean the permits continue to go to LVS,
especially since the legacy casino operator in Macao prior
to the entry of U.S. capital, was an Asian, and he had a monopoly
$6.00 on 12.30.06
Added to the Russell Microcap Index
on 6.30.06. According to Feltl & Co. analyst Richard Ryan,
RELM has just 1% share of a domestic market worth $1.9 billion
(and the global market is eight times larger), so there is
plenty of room for growth. In addition to providing communications
for national security needs, RELM can actively address communications
needs at hazardous substance facilities such as oil refineries,
mines and chemical plants. The United States Postal Service
Extended its Exclusive Contract with RELM Wireless on 7.13.2006.
RELM announced 3Q earnings on 11.2.06. Sales increased approximately
20.7% to $9.2 million from $7.6 million for the same quarter
last year. Net income for the third quarter was $1.1 million,
or $0.08 per diluted share, compared to net income of $1.2
million, or $0.09 per diluted share, for the same quarter
Companies. The companies that are listed are worthy of watching
and might be worth buying in on opportunity (i.e. at a better price),
if you believe the news on future potential. 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
Price when featured
Gains since original feature
Advanced Micro Devices
Read the "Apple
Chips" article in vol. 4, iss. 2 for our take on
the current battle between AMD and Intel. AMD's strategy of
litigate to win loses, in our view. In tech, the geeks beat
the suits. Better products win, not law suits. The most recent
losses that AMD has taken (due to an acquisition they made
and the price squeeze on products that Intel put them in)
have also led to rumors that the company is in a cash crunch.
Don't buy into the hype that airlines
are "doing better." Read the article, "$72
Oil Will Sink Airlines," in vol. 3, issue 7. American
Airlines' financial obligations surpass $17 billion, including
$5.4 billion owed to pension plans and other post retirement
benefits (which is close to AMR's market value). American
Airlines has such a strong brand, and so few investors are
aware of the depth of their debt, that AMR tends to run up
on any good news in the sector. It's not a slam-dunk short
or put, until the unions renegotiate their contracts in 2008
because the Feds are not going to let every legacy airline
in the U.S. go down. Competition from low-cost carriers and
competitors that have gained cost advantages through the bankruptcy
reorganization process remains a significant challenge. We
moved AMR to the Watch list (as in WATCH OUT!) on March 1,
2007, until the labor negotiations get closer. In the
meantime, good short-term headlines of profitability could
elate the informed.
Gold dropped to $573/$580 range
on 9.15.06 causing losses for most gold mining stocks, but
is back up to $686.90. As you can see from the 52-week high,
GG's price is not unreasonable, however, we like keeping an
eye on good companies like this, just waiting for weakness
in the sector to cause a more attractive buy-in rate. Goldcorp
has more upside potential, in our view, than most of the other
larger gold companies, like Newmont.
See "Apple Chips," article
in vol. 4, iss 2. Intel is beating Advanced Micro Devices
in products and price. AMD is fighting back in court and by
slashing costs. The price war is tough on both, but easier
for Goliath to win. If Intel were trading near 52-week low,
we'd move it to the Hot List. Keeping an eye on price. No
need in being in a rush to buy this time of year.
World's largest software company.
$31 billion in cash. Launched Zune on Nov. 14, 2006 and Vista
earlier this year. New products have not received "buzz"
or outstanding sales. The latest ruling that Microsoft has
to pay $1.52 billion to Alcatel Lucent is a blow to any music
service that didn't license MP3 technology with Alcatel, including,
potentially, Apple. Great blue chip for your long term portfolio
because with the war chest and talent at MSFT, even this year's
assembly line of flops shouldn't bring the company down, although
it may bring out the firing rod. Will pressure come down on
Steve Ballmer, CEO? Trading at a 52-week high, so waiting
for a better buy-in opportunity might yield better returns.
Off Stocks List:
Companies (Cooling Off List):
Companies (Cooling Off List):
Airlines (moved to the Watch list, as in Watch Out!)
Off Stocks (that may be Poised for a Decline in Share Price).
Note: The companies listed in bold have recently been added to this
cooling off list and/or may be currently poised for a 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. (Again, note, that the stocks on this chart are
expected to go DOWN in price.)
Price when added to Cooling
$1 billion on accounting fees related to the accounting scandal.
Fannie Mae also said it would miss a regulatory deadline Wednesday
for filing its financial report for the third quarter of 2006.
The company hasn't filed an earnings statement since late
2004, and the NYSE has given FNM a deadline of 3.15.07 to
file the 2005 annual report. If it fails to file the report,
the company could be delisted. And yet investors are still
in to the tune of $58.44 billion…. Are you? Better check your
mutual funds. The recent subprime lending fallout doesn't
bode well for FNM. According to the AP, "Maintaining
strong asset quality position will be a challenge for Fannie
Mae, given the recent weakening of housing values from the
very strong levels seen over the last few years." Standard
and Poor's has a negative outlook on Fannie Mae.
Blue Chips" in vol. 3, issue 8. According to the
AP, Delphi could be in trouble with investors who are offering
to help them emerge from bankruptcy, if they do not get concessions
from their labor force by February 28, 2007. The UAW issued
a press release on February 1, 2007, writing, "Neither
the company nor the potential investors has demonstrated a
willingness to resolve the substantial issues which divide
us." Delphi used to be a division of GM, and GM has a
stake in the company and in their labor force obligations.
Delphi reported a $2 billion loss for the 3rd quarter.
GM's General Motors' market capitalization is $19.84 billion,
their pension and health care obligations exceed $50 billion
and last year the company lost over $10.6 billion. With a
debt equity ratio of 3.85, most investors are probably unaware
of the fact that GM has financial obligations that exceed
the value of the corporation by over 4 times. For more information,
please read the "Wow Dow! Or NASDAQ Now?" article,
in vol. 3, iss. 11. The 4th Q and Full year earnings
releases should be issued at the end of March. Meanwhile,
the company has scheduled sales calls, instead of earnings
calls, and is probably delighted that the media is focusing
on whether or not someone will buy Chrysler, instead of whether
or not GM is getting any healthier, after losing $10.6 billion
in 2006. A major cable financial news organization reported
erroneously that GM's pension plan was OVERFUNDED by $19 billion
earlier this month. (Our numbers come directly from the Nov.
7, 2007 earnings report which was filed with the SEC.)
Chairman and CEO Bruce Karatz resigned
under pressure Oct. 2006, after SEC investigation of backdating
options. The company announced on 2.23.07 that the Department
of Justice is also looking into the backdating issue, but
assured investors that "KB Home is not a target of this
investigation." It's hard to imagine that Karatz could
be investigated and not KB Home, since he has been CEO since
1986 and Chairman and CEO since 1993! Karatz is scheduled
to repay $13 million to the company, however, his retirement
package has not been negotiated, meaning that his golden parachute
could far exceed the $13 million he's promised to reimburse.
Additionally, Karatz cashed out over $100 million in stock
over the last two years. KBH missed filing 4Q report on time,
due to SEC investigation into stock options. KBH will have
to restate results for fiscal 2005, as well as the first two
quarters of 2006, as a result of the incorrectly reported
stock option grants. Moody's Investor Service has placed KBH
on review status for a possible downgrade. Restated 4Q and
full year earnings on 2.13.07. The Company incurred a net
loss of $49.6 million, or $.64 per diluted share, in the 2006
fourth quarter, reflecting previously announced pretax non-cash
charges of $343.3 million related to inventory and joint venture
impairments, and the abandonment of land option contracts.
In the fourth quarter of 2005, the Company reported net income
of $304.4 million, or $3.44 per diluted share. The 1Q 2007
earnings release is late. In 2006 and 2005, the reports were
issued at the end of February. No word from the company on
when the earnings calls for Q1 will take place. Read the article,
"Rupert Murdoch, Nobel Laureates and Top Real Estate
CEOs. Find Out Where They Are Investing," from volume
2, issue 5. In May 2005, we called REITs a burnout sector,
and the fallout should continue, with high home prices, rising
interest rates, people backing out of contracts and rising
Vol. 1, iss. 55
The FDA issued a warning on "unscreened
human tissue" on 10.26.05. LifeCell reported a recall
of products, and took a charge of $1.4 million in 3Q ‘05 to
reflect the recall. LifeCell's product is in high demand and
sales are growing rapidly, however the story on some of the
unscreened and untested tissue it received from Biomedical
Tissue Services is not over. According to the Associated Press,
the FDA shut down BMT for not screening the tissue for communicable
diseases, among other violations. Lawsuits have been filed
by some plaintiffs who unknowingly received products from
Biomedical Tissue services and the impact of those lawsuits
is still largely unknown. LifeCell has set up a testing program
for anyone who received the BTS donor tissue. LifeCell has
been named in "several" lawsuits related to this
matter, according to the earnings report filed on 10.26.2006.
"There can be no assurance that the level of insurance
maintained will be sufficient to cover the claims or that
the all of the claims will be covered by the terms of any
insurance." There has been at least $15.5 million in
insider sales by CEO, CFO and controller in last 12 months.
LifeCell has a great product in high demand, but the potential
fallout of the unscreened human tissue could be more than
most small capitalization companies can take. According to
preliminary year-end results, issued on Jan. 8, 2007, Preliminary
product revenues for full-year 2006 were $140.5 million, up
51% compared to $93.3 million in 2005. 4Q Earnings call is
scheduled for March 1, 2007 at 8:00 a.m. ET. Call (877) 704-5386
to listen in. Replays are available at (888) 203-1112 or (719)
457-0820: The replay access code is 1324869.
1Q earnings on 2.22.07: first-quarter
contracts totaled 1,027 units, down 33% from 1,544 units in
the first quarter of FY 2006. 2007's first-quarter cancellation
rate of 29.8% was lower than the 36.9% cancellation rate in
fourth-quarter 2006. However, it was still well above the
Company's historical average of about 7%. The company is trimming
its exposure to optioned land, reducing lots to 67,500, from
83,200 just two years ago. Robert Toll, CEO, reports $1.1
billion in unused credit lines and $450 million in cash. 2007s
first-quarter net income was $54.3 million, or $0.33 per share
diluted, compared to 2006's first-quarter record of $163.9
million, or $0.98 per share diluted. Meanwhile, brother Bruce
Toll continues his selling spree, which totals $49 million
since September 2006 (source: MoneyCentral.Msn.com). Read
the article, "Rupert Murdoch, Nobel Laureates and Top
Real Estate CEOs. Find Out Where They Are Investing,"
from volume 2, issue 5 in 2005, when we first reported on
REITs as a burned out sector.
companies were taken off of the Cooling Off list effective 10.16.06.
Verisign (+15%). IMClone (-11%). Yahoo (-28%). (The cooling off
list anticipates that a company will lose share price value.)
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 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.
(featuring billionaires, royalty and statesmen), educational opportunities
and online chats with millionaire money managers. Stay plugged in!
Visit our calendar section often.
for just a few of the amazing educational and networking opportunities
that world-class organizations are offering for you. To access links
to the event websites and registration, go to the Calendar section
Fiorina will be the keynote speaker at the Office Depot Success
Strategies for Women Conference In Orange County, CA on March
March 6th, 2007
Conference: Branding Yourself for Unstoppable Success, Anaheim,
Fiorina, the former Chairman and CEO, Hewlett-Packard, offers business
insights to women who want to connect, learn, inspire and succeed.
Women's Campaign Forum's Gala Benefit, NYC
is dedicated to putting women in power and politics. Some 2007 highlights
include Catherine Crier, Paul Kellogg, Kay Unger, Diane von Furstenberg
and Silda Wall Spitzer.
March 14th, 2007
through 9:30AM PT
online Chat: Subscribers Only.
tips from the guru who is earning 38% annualized gains (that's every
year). Her easy 3-part investment recipe works for real estate,
stocks, classic cars, postage stamps and Beanie babies!
March 21st, 2007
through 9:30AM PT
Money Manager Paul Woods, CEO, Odyssey Advisors
the Truck! Learn why money manager Paul Woods is bullish on 2007.
Paul is a 30-year veteran in managing money for high net worth individuals
and institutions. Free to i-Sophia subscribers.
April 10th, 2007 to Friday, April 13th, 2007
Living the Rich Life Retreat in Santa Monica, CA. with Top-Ranked
Stock Pundit, Natalie Pace.
Read the article in this ezine for more
April 19th, 2007
through 9:30AM PT
Top-Ranked Green Money Manager
Greenie tops Hulbert Charts! Money manager David Fried, the editor
of the BuyBack Letter, chats with NataliePace.com subscribers about
being socially conscious, and making superior returns through publicly-traded
companies that are buying back their own stock.
Economic Conference, Beverly Hills, CA
Institute brings together VIPs, Nobel Laureates and executives for
an intensive 3-day learning and networking experience. Policy issues
and solutions in business, government, philanthropy, journalism
and academics are debated.
VISION: To build
a global community of investors through a worldwide website, seminars,
radio, television and print partners. GOAL:
To provide high-quality, first-run, ethical financial news, information
and education, presented in an entertaining format, across all
media (television, radio, print and online).
MISSION: To provide the news, information and education investors
need to make better choices and to make investing as much fun
PHILOSOPHY: Member Mosaic. Piecing together a more complete picture
of the publicly traded company, one tile at a time, by valuing
firsthand consumer experience, conducting evaluations of the executive
team and lining up the numbers of the publicly-traded company
with its competitors in a Stock Report Card.
For more information on NataliePace.com contact us at
P.O. Box 1350, Santa Monica, CA 90406-1350
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