Clean Energy Rolls Out Worldwide.

by Natalie Pace.

Includes a Clean Energy Stock Report Card.

Remember when cell phones were the size of toasters and solar panels were about as easy to lift as King Kong? Few imagined fifteen years ago that businessmen would have cell phones holstered in their belts or that volunteers could roof a home with solar panels in less than a day, but Solar for Weaklings has indeed arrived, and quite honestly, friends, this is the breakthrough I’ve been hoping for. For years, I’ve had difficulty hunting down even a solar brochure at Home Depot, and next year I should be able to roof my own home with solar panels that are available at every home improvement store across the land!

On July 22, governors of several states participated in building a Habitat for Humanity home powered by the UNI-SOLAR® lightweight, flexible thin-film solar panels. United Solar Ovonic, a wholly owned subsidiary of Energy Conversion Devices, Inc. (NASDAQ: ENER) unveiled this new residential solar product for the Habitat for Humanity home this summer, showcased the product again at the Emmy® Awards on September 17th, and will have the product available to the public by the end of 2007, according to the company. (The sun canopy that was installed at the Emmys® will be transferred to the CHIME Charter Middle School, located in Chatsworth, California.)

Solar is a popular choice among the Fortune 500 companies, many of which are committed to becoming green, because photovoltaic converts sunlight directly into electrical power, operates silently and unattended, has no moving parts, emits zero emission, requires no storage of hazardous fuels, lasts a long time, is low maintenance and doesn’t multiply into additional operating costs. UNI-SOLAR’s worldwide customer base includes General Motors, which has installed the solar panels on two of its California facilities.

Two years ago, Energy Conversion Devices was a favorite on Wall Street for powering hybrid cars, but today the company's solar business represents 89 percent of total revenues, at $41.9 million in the most recent quarter. The substantial increase in demand for UNI-SOLAR(R) laminates came from growing domestic orders, as well as strong international demand from customers in Italy, France and Germany.

Revenues in the first quarter of fiscal 2008 were $47.0 million, up 31 percent from prior-quarter revenues of $36.0 million and up 73 percent from $27.2 million in the first quarter of fiscal 2007. ECD reported a net loss for the period of $7.6 million, or $0.19 per share, compared to a net loss of $2.3 million, or $0.06 per share, in the year-ago period, but still has $156 million in cash and short-term investments. About a third of the quarterly loss -- or $2.5 million – was due to reshuffling in the executive suite.

Robert C. Stempel retired as ECD's Chief Executive Officer on August 31, 2007 and will step down as Chairman of the Board and a director of ECD, effective at the company's Annual Meeting of Stockholders scheduled for December 11, 2007. Mr. Stempel, 74, has been Chairman of the Board since December 1995. Energy Conversion Devices plans on electing a non-executive Chairman of the Board – a very positive sign that the company and the new CEO are committed to doing what is in the best interest of the stakeholders now and going forward.

Mark Morelli -- ECD's new president and CEO and a former senior executive at United Technologies with a MIT MBA -- claims that he will be hyperfocused on sales, execution and profitability. According to Mr. Morelli, "Our laminates continue to gain momentum in the marketplace as demonstrated by our growing pipeline of business. For example, our supply agreements and commitments for the second quarter of fiscal 2008 exceed our available capacity."

I first looked at Energy Conversion Devices two years ago, during the SunPower IPO, but thought the price was unattractive at $32.43, (which was the share price on November 25, 2005.) Energy Conversion Devices is an example of how keeping a company on your shopping list can pay-off for the patient buyer! At $25.83, which is near the 3-year low, and with a new residential solar product available on the marketplace, I’m practically leaping out of my skin with delight, as I add Energy Conversion Devices to the Hot News list. I’d love to wake up on the morning of December 25th to see Energy Conversion Devices stock in my Christmas stocking as well!

3-year Chart of ENER Share Price:

source: MoneyCentral.msn.com

Now, as I was searching for other clean energy companies to include in the Clean Energy Stock Report Card alongside Energy Conversion Devices, I came across Zoltec and American Superconductor, which are top holdings of the Power Shares Wilderhill clean energy portfolio (PBW). (I’ve indicated before how well this ETF is managed.) Both of these companies are experiencing a spike in sales, and share price, based upon an exploding market of wind power, and even though Energy Conversion Devices is the star of this article, both of these companies certainly shine as well.

In May 2007, Zoltec, which makes carbon fibers used in various industries, including wind turbines, entered into a new contract with Vestas Wind Systems valued at approximately $300 million over the next five years. In August 2007, a new contract with Gamesa Group (another wind power company based out of Spain) came in at $142 million over a five-year term. In June 2007, DeWind Incorporated contracted for $30 million of carbon fibers over a three-year period. Based upon these contracts, and expanding their manufacturing facilities from two lines in 2004 to 18 lines currently to 26 lines by 2009, Zoltec projects to achieve a sales milestone of $500 million annually by fiscal 2010. There are a lot of if’s in that sentence but pre-orders are strong enough going forward to support that goal, and past expansion plans have run smoothly enough to justify a little faith in Zsolt Rumy, the founder, Chairman and CEO of Zoltec.

For fiscal 2007, Zoltek reported net sales of $150.9 million, compared to $92.4 million for fiscal 2006, an increase of 63%. The net loss for the year was $2.5 million. Zoltec’s share price jumped on the strong earnings news on November 28, 2007. Though we wish we’d had Zoltec on our radar at the 52-week low, the upside over the next few years could still be strong enough to justify buying at the higher price of $42.62 today.

American Superconductor, which is also a wind energy supplier and consultant, has a backlog of orders that exceeds $180 million. Clients include: the Department of Energy, Sinovel Wind in China (wind power), AAER Inc. of Canada (wind turbine design), Southern California Edison, TECO-Westinghouse, Zhuzhou Electric in China (their 2^nd Chinese customer) and more.

All of this is great for the long-term future at American Superconductor, but the company anticipates a few hiccups along the way. "We are revising our net loss guidance for fiscal 2007 to include the restructuring charge related to our Massachusetts facilities consolidation. We also are anticipating increased operating expenses to support our rapid growth, higher stock compensation expense as a result of higher than anticipated stock prices, and unabsorbed overhead in our AMSC Superconductors business unit as a result of delays in certain projects," according to David Henry, senior vice president and chief financial officer (source: November 1, 2007 press release). According to Mr. Henry, the net loss for the full fiscal year will be in the range of $27.0 million to $31.0 million, or $0.70 to $0.81 per share, as opposed to the previous guidance of $21.0 million to $24.0 million, or $0.54 to $0.62 per share.

The company is working toward positive EBITDAS in the fourth quarter of fiscal 2007, and EBITDAS positive for the full year in fiscal 2008. The cash and short-term investments on hand is at $118 million, so even though American Superconductor is still losing money, it is not in danger of going out of business before it expands to fulfill its orders. Still there are enough investors who read earnings headlines to warrant an alert before the full year fiscal 2007 report is released, which should be around June 2008. (This year’s annual report, or 10-K, was filed on June 14, 2007.)

The growth at both AMSC and Voltek is being driven primarily by the wind energy market, while Energy Conversion Devices is tapped into solar. AMSC recently established offices with 25 employees in China, and expects the Asia-Pacific marketplace to account for up to 50% of sales in fiscal year 2007.

Energy Conversion Devices, American Superconductor and Zoltec were added to the Hot News on Cool Stocks List on December 1, 2007. Click to go to the Clean Energy Stock Report Card.

Please note: NataliePace.com does not act or operate like a broker. We are adding a splash of green to Wall Street by publishing the news, information and education you need to succeed in investing, business and life The publicly traded companies mentioned in this article are not intended to be buy or sell recommendations. ALWAYS do your research and 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.

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Stocks, Not Diamonds, Are a Girl's Best Friend,

and Guys Want Massages and Pampering More Than Skype Phones or even Gisele Bundchen! Great Holiday Gift Ideas from our Subscribers.

Each year, we post a best gift survey, and each year we are surprised at the results. Did you know that women would rather have stock than diamonds, with an Apple iPhone showing up 2^nd on the Christmas/Kwanza/Hanukkah Wish List? Guys really, really, really just want to be pampered and get a great massage – in front of their brand new flat screen television!

So, if you’re stumped on what to get the fabulous, delightful loves of your life, please check out the items below for some ideas. You can also click over to our Shopping Mall for some interesting websites and items you might not have thought of.

Best Holiday Gift for Women?

 Best Holiday Gift for Guys?

So, guys, give stock in Apple and the Apple iPhone to that special woman in your life! (First check the Hot News on Cool Stocks list to see which stocks are trading for a great price!) And ladies, if all it takes to make your guy jolly this season is a great massage and some pampering, how easy is that! One great overnight splurge at a hotel (away from the kids) and massage oil could yield relationship dividends for life, and imagine how thrilled he’ll be if you design 12 gift certificates for massages and pampering that he can cash in over the next year!

Now, in the best holiday gift for humanity department, let’s not overlook Peace on Earth, which The Peace Alliance is in the business of promoting.

You can support the work of the Peace Alliance and the Department of Peace Campaign easily online now, and join the ranks of Joaquim Phoenix, Marianne Williamson, Paula Abdul, Walter Cronkite and more, who are united to establish a Department of Peace in Washington D.C. Click on The Peace Alliance or go to their website directly to make a donation, or to join a local chapter in your city. Many cities have endorsed the Department of Peace campaign, including Atlanta, Chicago, Cleveland, Detroit, Oakland, Providence, San Francisco, San Jose and more.

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Party Crashers:

by Natalie Pace.

Former British Prime Minister Tony Blair, Nobel Laureate winner Muhammad Yunus, best-selling authors David Bach and Eckhart Tolle, and a few local guys crash the California Governor and First Lady’s Women’s Conference in Long Beach, California, on October 23, 2007. Click to view an audio/visual webcast of the conference on the CaliforniaWomen.org website.

Former British Prime Minister Tony Blair. Photo Credit: © CaliforniaWomen.org

Former British Prime Minister Tony Blair, authors David Bach and Eckhart Tolle and Nobel Laureate winning banker Muhammad Yunus were invited to be guest speakers at the California Conference for Women on October 23, 2007, which explains their presence among 14,000 women, but when I had to squeeze by an unescorted man to get to my seat, I knew that the party had now grown cool enough to crash. The question is why? What was this lone man seeking here, surrounded by more estrogen than most men can stand in a lifetime, much less a day? A date? A wife?

"Being in the public sector, I’ve worked for women bosses most of my career," he said. "I’m comfortable around women, and this is the best opportunity I know of to see these important speakers up close and personal." John (not his name) had come for the enlightenment, just like the rest of us, in particular to hear Eckhart Tolle, Her Majesty Queen Rania, California First Lady Maria Shriver and Tony Blair.

I’ve been covering the California Governor’s Conference for years now, and the evolution of the event can truly be divided into AM and PM – After Maria and Pre Maria Shriver. In the PM, it was a platform for the governor to blather on about all of the important things he felt he’d done for California (in an obvious bid for next term’s vote). After Maria Shriver – AM -- it was the dawn of a new day for the entire planet. The conference today has become one of the most important gatherings in the world – a platform for leaders worldwide to speak on issues that promote greater peace and prosperity for all of humanity.

This year, Her Majesty Queen Rania Al-Abdullah of Jordan inspired the attendees to have an open mind about foreign people and foreign customs. "The voice of the heart needs no translation," she said. "Each of us in our own small realm can greet the world with open arms."

Her Majesty Queen Rania Al-Abdullah of Jordan. Photo Credit: © CaliforniaWomen.org

In 2006, the Dalai Lama led the audience in a 3-minute meditation, centered on the role of women as peacemakers and comforters who are capable of creating more "warm heartedness" in the world. In 2005, Queen Noor bravely told the crowd that if the world addressed the core challenges of land disputes in the Lebanon/Israeli region, it would "drain the swamps of the extremes on all sides and give us an opportunity for the future." And at Maria’s first conference as First Lady, in 2004, her friend Oprah supercharged the keynote, pacing the stage like a preacher filled with the spirit, saying, "Things are not just happening willy-nilly in your life… The universe is speaking to you right now. There is a calling for you. I go to work. It doesn’t feel like work. It feels like breathing. That’s when you know you’re home."

With these powerful, inspiring and candid keynote speakers, it is easy to see why women (and a few party-crashing men) come in full of excitement, and leave inspired to make their lives and their neighborhoods a better place. They enter hoping to learn, and exit full of wisdom. They open their hearts and minds to experiences and perspectives they’ve never seen before, and hear heroic stories from women improving lives in far-flung neighborhoods, from Watts, to Iraq and even outer space. From queens, to Nobel Laureates, to astronauts and rock stars, it appears that everyone follows Maria to Long Beach every fall, and if you haven’t made sure that your corporation sponsors the event so that you can grab one of these hard-to-come-by tickets, now’s the time to begin lobbying. This year, the event sold out in just 72 hours.

The overall theme in 2007 was green, and for the 4th year in a row, it sported a Zero Waste lunch. What is a recyclable lunch? Well, included in every completely recyclable box, the women were provided just one plastic (and recyclable) utensil – a fork – with which to eat their chicken salad, meaning that the chicken tenders were stabbed and gnawed like a campfire meal, rather than cut and eaten in a civilized manner. While this did incite some eye-rolling from the more mannered among us, everyone in the audience stood and clapped wildly, giving Tony Blair a standing ovation when he said, "If we don’t act and this evidence [about climate change] turns out to be true, then we are betraying the future generations that we should be looking after. We do not have the right to do that."

Now, Maria does take the stage and speak every year, but it sounds more like the personal diary of the chief explorer of the complicated landscape we call modern woman, rather than a bully pulpit. "Money, success, fame -- that brings you a lot," Maria said. "But it’s wonderful and important to know that none of those things soothe a restless heart. They don’t fill an empty hole. They don’t satisfy a deep hunger that’s inside of every single person."

First Lady Maria Shriver adds her personal touch to the conference. Photo Credit: © CaliforniaWomen.org

How does Maria know? These were the pearls of insight she discovered when she peered into the recesses of her soul and refused to rejoin the media frenzy that was feeding off of the death of Anna Nicole Smith. Remember Maria the famous news personality? Maria missed that part of herself, but the job that lay at her feet in 2007 was not the one she left behind when she began campaigning for her husband to become governor back in 2003, and so, without a real destination, she walked away from a path and past that no longer served her.

While 2007 was a challenge for Maria, the career woman, it was an extra special year, for Maria, the daughter. At the 2007 Women’s Conference, Maria honored her mother, Eunice Shriver, with an inaugural lifetime achievement Minerva Award.

Maria conceived of the Minerva Awards in her first year as California’s First Lady "to honor dreamers who turn their dreams into reality," and her mother, Eunice, does indeed embody the qualities of the Goddess Minerva, who graces the California state seal – courage, strength and wisdom.

Eunice Shriver Receives Lifetime Achievement Minerva Award. Photo Credit: © CaliforniaWomen.org

As the founder of the Special Olympics, Eunice is an "architect of change," with a remarkable life and legacy of her own, outside of her role as sister to President John F. Kennedy and Senator Robert Kennedy Jr. Eunice is so frequently photographed as she beams while standing next to a victorious Special Olympics athlete, that few of us stop to consider what it must have felt like to lose two brothers by assassination and to have an older sister who was mentally disabled? What kind of person "bucks up" in the face of those challenges, works with her husband, Sargent Shriver, to expand the legacy of the Peace Corps (which was founded by Sargent Shriver), while raising four boys and a young woman to carry on a family tradition of philanthropy and service?

As she accepted the award, Eunice was surrounded by four of her five children, -- Timothy, Anthony, Bobby and Maria -- and an extended legacy of family organizations and achievements, including (PRODUCT) RED, Debt, AIDS, Trade in Africa (or DATA), Best Buddies and her daughter, the First Lady. It is clear that all of the Shriver siblings share an optimism that they can make the world a better place, and a regard for service that was bred at the table and in the home of Eunice and Sargent Shriver. In true form, Eunice Shriver, ever the feisty Chief Inspiration Officer, had three bits of advice for the audience members.

   1. Find Your Family.
   2. Find Your Mission.
   3. Follow Maria.

What does following Maria look like? Maria says, "Take the time to unwrap yourselves. Beneath all of that stuff -- the make up, the clothes, the outfits, the resume, the responsibility -- is an extraordinary human being." She encourages women to find time for themselves, to discover your own personal journey because "you are entitled to your own dreams, your own goals and your own legacy."

Follow Maria. If you don’t, next year, you’ll be missing one helluva party, and one of the most important moments of confluence with world leaders that our planet has ever known. And if soul food is less appetizing to you than girl gossip, the challenge of eating chicken strips like a popsicle and the hundreds of convention stands, which are conveniently open for pre-holiday shopping, know that there is truly something at the California Women’s Conference for everyone – even men.

Pricing To Make Your Business Profitable.

by Chellie Campbell, author of Zero to Zillionaire.

If you’re working in a home-based business or plan to, you need to become proficient at counting your money. Keep it simple—list all your income from your business each month at the top of a piece of paper. This is your "gross." Then list all the expenses related to your business. When you subtract the money you spent from the money you made, you have your profit or "net". (My friend and accountant, Barbara Barschak, has an easy method for remembering the difference between "gross" and "net": "Net" is a smaller word.) You can do a simple spreadsheet or you can use an accounting software package.

Here is the reason you do all this counting: Look at your "net" and see if that’s the amount of money you want to be making every month. If the figure is too low, you need to raise your prices, make more sales, or make bigger sales to bigger customers. Or perhaps your income is fine, but you’re spending too much money on new computer programs, advertising, taking clients to lunch, or promotional giveaways. Debtors Anonymous has a special section called Business Owners Debtors Anonymous because business owners can make a case to justify endless expenses because they’re "good for business" or "tax deductible." And that can trap them in an endless cycle of overspending.

Entrepreneurs love to get new clients for their businesses. They work hard developing their skills and marketing them and then the payoff comes when someone says, yes, they want to hire them. But you have to make sure you’re charging enough to meet your income goals. If you are an entrepreneur or hope to be one, here are some guidelines to ensure that you take everything into consideration when pricing your services:

1. Calculate your "profit price." Create a monthly operating budget for your business that factors in all your costs including overhead, sub-contractors, taxes, salaries, marketing expenses and every variable you can think of. Factor in irregular expenses that occur annually or quarterly such as insurance expenses, annual tax preparation fees or Christmas gifts. Don’t forget repairs and maintenance and an allowance for refunds or bad debts. Total all these expenses and then add an additional 5% for contingencies (because you will have forgotten something!) and an additional percentage for your profit. Now add in your income goal which would be equal to the salary you would be paid if you were employed by someone else plus fringe benefits including a retirement plan. Divide this total by the number of hours you want to (or are willing to) work each month and that will tell you the hourly rate you must charge for your service.

You might question whether or not this hourly rate is competitive for your type of business. The rule of thumb is to be priced in the "high middle" range of your competition. If your income goal calculation puts your hourly fee too high, then you must trim expenses, work more hours, reduce your income expectation, choose another line of work with a higher profit potential, or get very creative.

2. Not all work hours are billable hours. When calculating your "profit price", don’t forget that you will work a number of hours "on" your business but not "in" your business. That means that not all of your time is billable to a customer—there is administrative time writing letters, doing budgeting, billing or accounting and marketing time making phone calls, going on appointments, attending networking meetings, etc. Entrepreneurs are often overly optimistic about the number of hours each week they can work on client business and perform all these other tasks and therefore overestimate their income potential. Or they find themselves working too many hours each week and then burning out. Make sure to take this into account when figuring your "profit price". Raise your price rather than increase the number of hours you’re willing to work or find someone to delegate to.

3. Marry your "profit price." That is, be faithful to your income goal and avoid the temptation to lower your fees to your absolute bottom line in order to get business. Yes, you work hard marketing in order to find someone who wants to hire you and you are anxious to make the deal. But everyone knows cheapest price doesn’t equal best quality. You will find that the clients who are shopping for the lowest fees are the most difficult and demanding to work for and you will spend more time than you will be paid for on their work. Stand firm on your "profit price" and you may have fewer clients initially but they will be higher quality clients—Dolphins—easy to work for and happy to pay you. And it often happens that the higher your fee, the more respect you get.

Sometimes you can eliminate yourself from consideration by a client because your rate is priced too far under market. The prospective client might then assume that you are either new at this, not good enough, or in financial trouble. A friend of mine started a home-based business doing computer consulting. When she called a friend to solicit business and told him her price was $50 per hour, he told her that he could not recommend her unless she charged at least $90 per hour. She understood then that he could only refer his customers to a top-notch professional and that such a professional would charge this kind of fee.

The time and care which you invest in pricing your services will pay off handsomely as you start to meet and then exceed your income goals. You are successful and you deserve it!

Chellie Campbell is the author of Zero to Zillionaire and The Wealthy Spirit. She created and teaches the Financial Stress Reduction® Workshops, on which her book is based, in the Los Angeles area and gives programs throughout the country.

If you are stuck in a rut in your business or life and/or having too much "month at the end of your money," Chellie’s workshop might be just what you need to get things on the right track. You can sign up for Chellie's Ezine and workshop at www.chellie.com.

10 Investing Habits of Rich People.

by Natalie Pace.

Embody the habits of the rich to enrich your own wallet!

1. Tax-free: Contributing and trading within a tax-qualified brokerage account means that you could be earning up to 30% additional in returns (which you don’t give to the IRS for capital gains taxes). Compound that year in and year out and it could be worth millions.
2. Play it Safe: Always keep a percent equal to your age safe, i.e. out of the stock market. Certificates of Deposits, savings accounts, money markets, and bonds are less risky than stocks. (Bond funds should be counted as stocks, not bonds.)
3. Stocks on Steroids: Take a small percentage of your stock portfolio for trading. (Don’t trade the whole nest egg.) Subscribe to a great stock newsletter, which is tracked by an independent agency, to achieve superior returns.
4. Great Partners: Interview your financial partner (broker) as if your life depends upon it. Your lifestyle does!
5. Tithe: The first check you write each month should be to your financial freedom fund. 10% for investing, so that your money can make gains while you sleep! With this habit alone, you could be a millionaire in 31 years, even if you only made $14/hour.
6. Don’t be the Bank of Mom and Dad: You’re not qualified to, nor would you want to, establish the underwriting guidelines for loaning out money to relatives. If someone needs money, consider any gift you give to be a gift or charity. If someone wants you to go into business with him or her, consider whether or not you want to provide that widget or service to the world. In most cases, you’ll be better off considering your help to be charity or an investment, and not a loan.
7. Avoid Fair-Weather Friends: Whether it is a new broker, a new person you met by email or just new interest from someone who never cared much about you, if the new relationship is all about the money, make sure you are doing business with a monk! Do your due diligence and don’t be seduced by promises of guaranteed riches, guaranteed love or a fabulous lifestyle.
8. Switch-Hit: Do as much of your day trading as possible in a tax-qualified retirement plan, such as an IRA or even possibly a college fund or health savings account. That could help you are reduce the taxes you pay on capital gains.
9. Getty/Guggenheim Your Fab Self: Find out every tax-qualified account that exists and stock up your holdings in as many protected accounts as possible, including IRAs, 401 (k)s, health savings accounts, college funds and foundations!
10. Live the Rich Life: Wealth is not just money. Wealth is enjoying a happy, fulfilling rich life with people you care about, and investing in products and services that make the world a better place. Health is wealth, so get happy & exercise! Breathing is health, so invest in green!

The Top Eleven Investing Mistakes.

by Natalie Pace.

Investing mistakes are easy to fall into because it’s what everyone else is doing and it feels like a time-saver. In fact, these common mistakes are not time savers at all. They are money losers, stomach acid burners and often even relationship deal breakers!

You’ll find some people make a career of "contrarian investing," where they simply try to do the opposite of what everyone else is doing, thinking "Aha! If these are the common investing mistakes, I’ll just do the opposite!" This is not a strategy that pays off either. There is simply no substitute for the 3-ingredient investment recipe that I’ve given you!

3-ingredient recipe for cooking up profits

1. Start with what you know and love
2. Pick the leader in the sector (in real estate, it’s location, location location!)
3. Buy low; sell high

So, stick to the recipe. Use the Stock Report Cards to help you Pick the Leader and determine whether you are buying low or not. And avoid the common mistakes that newbie investors make, which are more often than not, money losers.

You might "know better" than to fall into the pits of these common investing mistakes, and still find yourself tempted to cut corners, just to fit in or to save time. I encourage you to use this list as a checklist and reminder of why you are taking the time and energy to really get to know (and love) your freedom plan and the companies and products that you are investing in. And I’m including the rationale behind each mistake so that you’ve got an argument, in case you need one, with an overzealous friend, loved one or financial partner.

The Top Eleven Investing Mistakes
Mistake # 1. Trading on Analyst Recommendations
If you thought Jack Grubman and Henry Blodget (the former analysts who got in trouble for recommending stocks in exchange for favors) were just flukes, guess again. Following analyst recommendations is a losing proposition. Researchers at the University of California and Stanford found that, in the year 2000, the stocks most highly rated by analysts lost 31 percent for the year. Even more incredible is this finding from the study: The stocks least favored by the major analysts soared 49 percent. This study examined 40,000 stock recommendations from 213 brokerages. Analysts are not all crooks, but they are definitely not fortune-tellers.

Now, in all fairness, this is mostly just a case of supply and demand. The demand shrinks when the company falls out of favor with analysts, and soars when analysts become enamored. The trick is identifying tomorrow’s Cinderella company from the cinders – before the analysts publish their reports, something the Stock Report Card™ is designed to help you master. Click on Stock Report Card to access a blank report card template that you can use in the future. I recommend setting up a table in a Word or Excel document. That way you can sort by Price to Earnings ratio, to get a sense of which company is trading for a better price.

Mistake # 2. Bankruptcy Buying
Think buying Delta at $1.54 a share when you’re positive that they will come out of bankruptcy is a brilliant idea? Guess again. Reorganization plans commonly call for the cancellation of the existing common stock, with holders receiving nothing. Nada. (Translation: your stock becomes toilet paper.) Lawsuits are a difficult and costly way to try to recover losses.

Mistake # 3. Pet Rocks
It’s very tempting to buy stock after shareholders have earned seven thousand times their investment, or after the product sells four gazillion copies, but that is called chasing money. There were people, lots of them, who bought AOL Time Warner and Priceline at peak share prices in 2000, thinking that heavenly heights could last forever. Too bad losing weight isn’t as easy as losing money.

Mistake # 4. Hot Tips
Hot tips are often merely "Pump and Dump" schemes—a colorful name for the scheme in which scam artists send out tens of millions of e-mails or load the stock market bulletin boards with messages like:

"This one is going to SKYROCKET."

"50 cents today, $3.50 by next Tuesday."

"Hot stock on the rise. Must act now. Is trading at 29 cents, and is sure to trade above $2.00 by the end of tomorrow."

They pump up the stock, so they can quickly dump when enough suckers fall for the charade and buy.

The price goes up—but not because something great is fundamentally happening with the company. It goes up just because the promoters (who are probably paid) have duped enough people into buying. Then the insiders sell (quickly), which makes the price fall flatter than a stone. People who fall for pump and dump schemes typically lose their investment. Even if the company stays in business, it might trade at the same rock bottom price for years.

These kinds of hot tip scams abound with companies that are trading "off the boards," which are also called penny stocks. Any stock trading under $1.00 is likely to be trading off the boards (which means there’s less compliance with GAAP accounting and SEC securities standards). Never respond to a direct mail or e-mail campaign to buy a stock "NOW, before it explodes." No credible company would send a notice like that. The SEC has laws against solicitation of investments.

Assume hot tips are swampland in Florida unless proven otherwise by a gazillion independent, well-respected sources. Assume anyone who tells you that they have a "sure shot" that’s going to double, is lying, self-interested, or stupid.

Mistake # 5. Sure Shots
If someone promises to double your money in a set period of time, assume that you’re dealing with a novice or a scam artist, especially if they want you to write a check before doing any due diligence. If you’re dealing with someone who doesn’t acknowledge the risk, they are lying or very naïve. Beware anytime someone wants you to hand over money before you have a chance to read or research anything.

Mistake # 6. Buying on Headlines
Headlines are written by editors to catch your eye. If you don’t read the fine print, you could be missing the most important information. Before United Airlines declared bankruptcy, investors gobbled up UAL shares on the headline that United had received $1 billion in promised concessions from its unions. The investors assumed that this was great news and that the labor concessions were all that United needed to soar the skies once again and be profitable (with the help of some federal loans). A key consideration was hidden on the inside pages of the article, however: that the Federal Loan Guarantee required $1.5 billion in union labor concessions. In fact, receiving only $1 billion in concessions – when the loan was going to fall through unless $1.5 billion was delivered -- was very bad news, not the good news that the headline trumpeted.

The Loan Guarantee application was rejected, and United Airlines was forced into Chapter 11 only a few weeks after that headline appeared in what many people consider the country’s most reliable news source, the New York Times. The headlines of less respected news sources can be even further from the complete story. The New York Times had actually printed the complete story, but too many didn’t take time to read it.

Mistake # 7. Press Releases
Press releases are written by professional writers, who are employed by the company they are writing about. And press releases are not held to the same standards as the official corporate earnings statements that public companies must make with the Securities Exchange Commission. A company can talk about an increase in revenue without ever mentioning that increased revenues don’t mean the company is profitable or that, due to cash constraints, the company’s fiscal health is on the ropes. If you read anything that is from PRNewsWire or BusinessWire—services that distribute press releases written by corporate PR people—ask yourself, "What aren’t they telling me?" Press releases can have valuable data and information, but they are designed to give you a snapshot of something newsworthy, not to draw out the full picture.

Mistake # 8. Relying too heavily upon the advice of your broker
If your broker has handled your account beautifully over a period of time, don’t bother to read this Mistake; you’re lucky to have a partner who cares about your future and has the knowledge and expertise to get you there. Many investors don’t understand that most brokers are salesmen first, especially those with fewer years in the trade, and place too much faith in a broker’s knowledge, morals, and information. You wouldn’t marry a stranger, so don’t hand your financial life over to one either! (Read the article on Selecting a Broker for tips on how to find the perfect partner.) Find the article under the Investor Edu link on the home page at NataliePace.com.

Mistake # 9. Placing all your chips on one sector
Diversify! Even with blue-chip stocks and prime real estate, you risk losing all of your money. Enron did go bankrupt, just one year after it was added to Forbes Platinum 400 List, for revenue in excess of $100 billion. A freak fire destroyed a handful of homes in the prized Malibu Colony in California in 2007. When you have your assets diversified across different investment classes – from real estate, to stocks, to bonds, to money markets, to Treasury Bills, etc. – you are protected against any one fluctuation or disaster. And in all instances, make sure that you keep enough cash on hand and enough income flowing in to meet your expenses.

Mistake # 10. Keeping too much stock in your employer’s company
Rule of thumb: no more than 10 percent of stock in your own company.

There’s one exception to this rule: if you’re the owner of the company, you may need a dominating percentage of the stock for voting/power reasons. In the early days of Apple Computer, Steve Jobs was booted out of the company he had co-founded.

Mistake # 11. Handing your investments over to a loved one, relative or friend
I’ve spoken with women executives who have commanded billion dollar corporations, and others who have multi-million dollar salaries, who turned over their personal investment portfolios to a husband, in order to make him feel like "more manly." With men, it’s more likely to be the guy at the country club who convinces his poker partners to come in on a sure shot investment of his.

Money means different things to different people, but, chances are high, that whatever it means to you, it ranks pretty high on your personal Richter scale and can cause personal devastation in high dosages when tremors occur. If your friend, loved one or relative loses your money, it’s going to be hard to recover the relationship – no matter how much you like or love him/her. So, even though you might think it’s an act of love to entrust your future to someone, it’s really more like an act of annihilation. Somewhere down the road, the odds are high that person will make a bad decision (in your eyes), or there will be less money than you hoped for (if any at all), or there will be a falling out between the two of you, or simply the person wasn’t really qualified for that level of responsibility in the first place.

As Dr. Phil says – and yes, I’m quoting him – each partner in a relationship should have personal money that s/he can set on fire if s/he feels like it. Imagine how much more important it is for each partner in a relationship to control the life of her dreams and the financial means to get there. I’m not encouraging you to hide money, merely steer your own ship in this regard. Have some personal passions fueling your short time on this planet, and use your financial freedom plan to help you get there. Whether you are a mother hoping for a better home for your children, or a father preparing to send your kids to college or a bachelor building green skyscrapers or a nun building Habitat for Humanity homes, your desire for a better life is the motivation to have more money of your own to "play with."

Even if you hate investing, almost anyone can set up an auto-payment tax-free retirement account through an online discount brokerage in just a few minutes. Take, at least, that amount of time. The cyber broker, which is set up on Modern Portfolio theory, is a better strategy than having a loved one wing it with a self-penned, but poorly tested, plan.

Before you have your first child, it would be great to get a list of the top ten parental mistakes. Imagine how much easier it would be to know that the first time your child gets a scratch, you’ll mistake it for a gash and have to spend a thousand dollars on the ER. It’s really amazing how ridiculously easy common parenting mistakes are to the parent of four, who shakes her head knowingly at the rookie mom. The same is true of experienced investors. They know these tips like the back of their hand, and if you write it on your hand while you’re learning, chances are you’ll find more money sticking there, too.

Buying Sprees:

by Kelley Wright. The managing editor of Investment Quality Trends, reports on his Select Blue Chip Stocks.

The Enlightened Investor Approach to Market Corrections.

During every market-correction I encourage subscribers to avoid the knee-jerk temptation to navel gaze and try to figure out how low can we go; how long will this last? In our experience the enlightened investor who adds to his portfolio during corrections will typically reap the reward of higher market values during the next advance. For just as surely as spring follows winter there is a rally in value stocks after every market downturn.

In case your attention has been diverted elsewhere, value stocks have been in the throes of a broad, sixth month downturn. Indeed, nearly 50% of all high-quality companies are down more than 15% from their highs. Seventy percent of those are down more than 20%. Clearly the opportunity exists to add more issues to portfolios, and more shares to existing holdings. While panic may be the emotion de jour, enlightened investors understand far better than most that even high-quality companies suffer through rough patches, however, they rarely close their doors or cut their dividends.

Market corrections are as much a part of the normal stock market cycle as rallies. The catalyst for both can as easily be good news or bad news, which isn’t a contradiction if you understand the perverse nature of Wall Street. One would think that with the onset of the Information Age that investors would have learned a thing or two over the years. With human nature being what it is though, investors still over-analyze when prices become weak and lose all perspective when prices are high, thus ensuring that the "buy high, sell low" mentality of Wall Street is perpetuated ad infinitum.

Equally disconcerting is the practice of trying to find the perfect moment to jump into a falling market, as is the practice of unnecessarily taking losses on high-quality companies whose share prices are temporarily depressed. Corrections, for whatever reason, induce a type of hysteria that is typically found in estate auctions, only in reverse. The fundamental value of a high-quality company does not disappear simply because its price falls in response to market perception and/or sentiment.

With all of my experience, I continue to be amazed by the reaction of the financial media to market corrections. It is no surprise that the average investor has to be talked off the ledge! I mean, think about it; when did half off become a bad thing? Why do lower prices for high-quality stocks send everyone into a tizzy? It’s just plain nuts. Look, to borrow a line from the great Maharushie, here are (for me) a few undeniable truths: 1). Corrections are always buying opportunities, the broader the correction, the better; 2). Late-Cycle Rallies are always selling opportunities because Wall Street wants you to believe that trees grow to the sky; 3). Investment performance should be measured by whether you are growing your capital and income base to generate cash for current and future needs.

At the risk of being repetitive it is important to remember that rarely do high-quality companies go under; no matter how bad the news, how big the scandal, or how troubled the economic outlook. If you invest in high-quality companies at historically repetitive levels of undervalue, you will weather any storm. Also, taking a loss on these companies is generally unnecessary. If the price moves lower because of a knee-jerk panic buy more. Bad news creates opportunities; when all of the high-quality stocks in a sector are moving lower it’s an opportunity, not a problem. The direction of the market isn’t nearly as important as the actions we take in anticipation of the next change in direction.

Does Citi, WaMu, et al have problems? You bet. Are they going under? I think not. Are their dividends in danger? I don’t think so. Is it time to buy? Probably; look for a test of the lows and when they hold and start to move higher there is your bottom. Is this time different? The names and the circumstances are but the dynamic is the same. This is how stocks behave when their environment is out of whack. Remember, great buys are made when stocks offer great values. Is it scary? You bet, but the big money is made on the big decisions. Adversity is the catalyst for the next rally; just remember that corrections are the birthplace of opportunity.

Kelley Wright is currently outperforming all of his peers, by bringing in the top risk-adjusted returns on Wall Street for the past 20 years, with his stock newsletter, IQTrends.com, at 12.8% annualized gains, according to Hulbert’s Financial Digest. To subscribe, go to IQTrends.com.

 

Wells Fargo's Great Depression.

by Natalie Pace.

Including a Bank Stock Report Card.

Stocks slumped on the 15^th of November, after Wells Fargo CEO John Stumpf told an audience at the Merrill Lynch financial services conference in New York City that the housing slowdown was the worst since the Depression (source: Associated Press). Mr. Stumpf’s comments were relatively unexpected, especially after an upbeat earnings report from Wells Fargo on October 16, 2007 that boasted of double-digit earnings growth. What a difference a month makes!

While real estate has been in the obituary column all year, and many companies, including Bear Stearns, Merrill Lynch and Citigroup, disclosed their exposure to subprime mortgage loan losses early and shuffled up the executive suite to show investors they mean business, Wells Fargo’s October 2007 earnings report was just short of gleeful. According to a company press release, Mr. Stumpf said, "We maintained our conservative risk management practices, and our strong balance sheet and capital ratios, perhaps the strongest in the industry, which allowed us to continue to grow profitably despite the problems in the market." But is that really the case? Does Wells Fargo have "conservative risk management practices" and is their balance sheet "strong"?

According to the Milken Institute, Wells Fargo was the top subprime lender in 2006, with $83.2 billion of subprime loans and 13% of the marketplace.

Top Subprime Lenders in 2006

Source: © MilkenInstitute.org. Inside B&C lending and Credit Suisse source data

I want to reiterate that, overall, foreclosures are only at 1.4%, only slightly above the national average. 93.48% of all people who do have mortgages are paying on time, and 35% of people who own a home, don’t even have a mortgage (source: Mortgage Banking Association).

But those places where there are a high concentration of subprime loans -- specifically in the unaffordable real estate markets of California, Nevada, Florida and Arizona (where Wells Fargo has a strong presence) -- the loans are mostly held by non-occupant investors. In other words, speculators, not homeowners, who have very little attachment to the home or incentive to see it through a price downturn, are the ones getting burned by the subprime resets, and those speculators are quickly passing the buck over to the banks, with little care about how it might tarnish their credit rating. According to Angelo Mozilo, Chairman and CEO, Countrywide Financial Corp., which he co-founded in 1969, Countrywide had a lot of speculators who were lying to them on the no-document and low-document loans. "They’ve run. Gone from the scene," according to Mr. Mozilo.

Natalie’s Note: Please note that when mortgage loan holders do run from the scene, they might still be liable for phantom income, upon which income taxes could be due. It is a good idea to seek legal counsel and approach the lender to work out the issues, instead of just running away from the problem. The Federal Reserve Board has a page on their website with lots of resources for distressed home owners who are facing foreclosure. Click to go to FederalReserve.gov.

While the number of foreclosures is only slightly above average, the foreclosures of subprime adjustable loans is quite alarming, at 8.02% in the 2^nd quarter of 2007, according to the Mortgage Bankers Association. There were $171.8 billion of subprime loans in foreclosure year to date, according to the Milken Institute, and losses are expected to continue in 2008 and 2009. Wells Fargo’s $83.2 billion in subprime loans amounts to over ¾ of the current market value of the company.

The resale market for subprime has virtually dried up. If the 8.02% foreclosure rate is measured against Wells Fargo’s current exposure, that equals $6.7 billion in losses waiting to muddy up future earnings reports. That’s quite a (potential) hit waiting in the wings. Mr. Stumpf’s warnings about the Depression may be a preview of coming attractions with regard to his company’s future, rather than an omen for the general economy.

It’s important, with regard to the general state of the financial services industry, to measure the current write-downs and losses in the context of the larger story. Central banks and brokerages that bought or financed the subprime debt will take a hit on their earnings reports, will see their share price wane and will continue to be very unpopular with investors as long as subprime steals headlines – certainly into 2008, and likely into 2009. However, banks and brokerages also have diversified streams of income, many have global operations, and -- despite the subprime mortgage losses – most are still profitable. In 2008, "Banks could not only remain profitable but also still deliver upper-single-digit returns," according to Banc of America Securities analyst John McDonald.

On October 15, 2007, Citigroup reported $2.21 billion in net income for the third quarter of 2007. That profit was 60% lower than the prior-year, which exploded across headlines and spooked investors. Chairman and CEO Charles Prince resigned. Robert Rubin was named Chairman of the Board. Sir Win Bischoff is the acting Chief Executive Officer. While all of this sounds disruptive, Rubin is one of the most respected businessmen on the planet, and Citigroup’s investments in the Chinese markets are expected to provide strong growth for the company as early as 2008.

Bear Stearns is taking another $1.2 billion write-down in the 4^th quarter, according to the Associated Press, but net income for the third quarter of 2007 was $171.3 million. That was down 61% from the prior year -- which was a boom year of Mergers and Acquisitions frenzy -- but Bear Stearns is still profitable.

Merrill Lynch, however, is one of the brokerages really suffering. Losses for the 3^rd quarter were $2.3 billion, as reported on October 23, 2007. Write-downs and losses were concentrated in Merrill Lynch's Fixed Income, Currencies & Commodities (FICC) business, including write-downs of $7.9 billion across CDOs and U.S. sub-prime mortgages.

The bottom line is that the current subprime crunch is not the Great Depression. Most homeowners are not in danger of losing their homes. Credit will tighten. Banks and brokerages will see harder times. Share prices in the financial industry are expected to soften and remain weak into 2008. But the rock bottom share prices that result over the next 12-24 months in the financial services industry might be buying opportunities, not the beginning of a financial meltdown.

At the Milken Institute State of the State Conference on October 29, 2007, Ross DeVol, the Director of Regional Economics at the Milken Institute, did serve up a bleak, bearish picture for the future. He projected that the current credit crunch, housing crisis and escalated oil prices ($90/barrel) would add up to a recession within the next four quarters.

While I’m secretly hoping that everyone will buy a bike or an electric car (as quite a few are doing in my hometown of Santa Monica) and kick oil prices to 2002 prices, where they belong, I’ll be watching the next few months closely and reporting, as always, on what the top economists are predicting. As we enter December, one of the strongest months of the year historically, I’m still optimistic that the winter holiday will bring presents for investors, especially those that are into clean energy, where companies are back-ordered on their products to the tune of hundreds of millions. For more statistics and facts, check out this month’s feature article, "Clean Energy Rolls Out Worldwide," and the Hot News on Cool Stocks report, where I’ve printed my Market Summary.

I’ve added Wells Fargo to the Cooling Off List, which is a part of the Hot News on Cool Stocks article, anticipating that the share price will be under a lot of pressure for in the coming months.

Please note: NataliePace.com does not act or operate like a broker. We are a publishing, 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 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.

Fantastic STOCKing Stuffers.

by Natalie Pace.

Includes my Hot News on Cool Stocks list.

Photo © Apple. Used by permission.

The Hot News lists below feature 43 companies earning great gains, versus just eleven that are headed in the opposite direction. 48% of the companies featured in my stock newsletter between 2002 and 2005 -- 25 out of 52 companies -- DOUBLED from the time we listed them in our feature article to the time when I took the company off of the Hot News on Cool Stocks list (and the majority of the remaining 52% well outperformed the marketplace. (See the chart in the article, "25 of our Companies Have Doubled," from volume 4, issue 4, the April 2007 ezine, for a listing of companies.)

Additionally, the market performance of the companies that are featured in my Hot News on Cool Stocks list are still keeping me at the top of over 830 A-list pundits on TipsTraders.com in annualized gains. Over the last few years, I’ve repeatedly occupied the #1 position, according to that independent tracking firm. TipsTraders has me listed as Highly Recommended, again, in 2007.

Note to Subscribers: I am reprinting a large portion of my November mid-month update (below) for two reasons. One is that we have hundreds of new subscribers from the Peak Potentials Extreme Wealth Conferece and there is a lot of VERY important market data and statistics in this report. Secondly, in between November 15 and December 5, the markets were EXTREMELY volatile. As you can see, however, the below data and the statistics pointed toward a continued Santa Rally, and those investors who were patient and calm had no need to fear. In fact, in that same two-week period, while the markets waxed and waned, even better economic news came in. The GDP growth rate for the 3^rd quarter was revised upward – to 4.9%, and Secretary of the Treasury Hank Paulsen (the former Chairman/CEO genius of Goldman Sachs) took bold steps to provide relief for qualified homeowners whose mortgage loans have reset to a rate that is unaffordable.

According to Treasury Secretary Paulsen, "The U.S. economy remains fundamentally sound – core inflation is contained, continued job gains are providing a good foundation for household spending, corporate balance sheets remain healthy overall, and strong growth abroad is supporting U.S. exports." These factors helped the 3^rd quarter GDP growth rate come in much stronger than expected, even while the softening real estate market and subprime foreclosures were providing downward pressure.

If you or anyone you know are worried about losing your home, call this number, 1-888-995-HOPE, to see if you are eligible for assistance. This hotline is available 24-hours a day to provide vital mortgage counseling in multiple languages.

Reprint of a portion of the November Hot News on Cool Stocks mid-month update:
I remember the first time that I received a Publisher’s Clearing House notice. It said I might be a winner. I didn’t see the word might and called up my parents and all of my friends saying that I’d won millions. Of course, my family laughed at me lovingly and explained the power of that one word. I’ve been a critical thinker and a cynic ever since, which is part of what makes me a very good reporter and stock picker.

Headlines everywhere are spouting LOSSES at banks and CATASTROPHIC INCREASES in FORECLOSURES and the FALLING DOLLAR and MASSIVE DEBT and WAR. It may seem as though these big words and big claims are too numerous and too apocalyptic to have any mitigating factors, yet I’m convinced that you’ll be almost apoplectic with anger when you read what important statistics have been left out of these reports and headlines, while other information has been intentionally blown up to appear cataclysmic. If you were to harken way back to the Anna Nicole Smith network news feeding frenzy, or were alive during the OJ Simpson trial, you should very suspicious of what drives the "news." In most cases, it pays – a lot – to just ignore the histrionic headlines, and find some underpaid lone wolf who likes to talk to geeks, read data and statistics from the University of Chicago and spends her date nights writing articles and finding gold in them thar hills. (Yes, I’m referring to NataliePace.com, the most respected name in financial news.)

Which reminds me to remind you that our 2007 Company of the Year, Suntech Power Holdings, has more than doubled (+139%) since the beginning of the year and has tripled (+215%) since our first feature in October of 2006. World Water and Solar, our April feature, is up 227%. Clean energy is hotter than oil prices, outperforming every industry on Wall Street, including fossil fuels, in the 1^st and 3^rd quarter of this year. If you look below, you’ll see that we are overweight in companies that are trying to save the world through renewable resources, and have been richly rewarded for that emphasis.

So, below are a plethora of facts that should calm your fears and focus your energy on all of the great things that are going on worldwide and in our homeland. (And yes, there is a war, and many worthy organizations, politicians and citizens working hard to end that, as well.) Don’t overlook the fact that Wall Street has been rocking and rolling in returns since January 2003, and posted strong gains over the past two year period, of up to 23%.

Fast Facts:
35% of people who own a home, don’t even have a mortgage. (They own it free and clear.) And 93.48% of all people who do have mortgages are paying on time (source: Mortgage Banking Association). Even though foreclosures have increased from ZERO, which is where they have been for the last five years, the national foreclosure rate is only slightly above the 40-year annual average.

Historically, about 1 percent of all first and second mortgages have gone into foreclosure, according to RealtyTrac.com. In a national delinquency survey conducted by the Mortgage Bankers Association, in the 2nd quarter of 2007, for 1-4 unit residential properties, foreclosures nationwide are only at 1.40%. "Those are not record numbers," Douglas G. Duncan, Ph.D., the Chief Economist at the Mortgage Banking Association said, in the understatement of the year.

The stock market has posted gains of 16-23% over the last two years, and Nasdaq is up 10% this year, even with last month’s pullback. FYI: we predicted Nasdaq to be the 2007 superstar performer earlier back in November of 2006. Click on Wow! Dow! Or Nasdaq Now! Article, from vol. 3, issue 11, where I said "The NASDAQ Composite Index, where many listed companies have little or no pension and OPEBs, is not your Y2K nightmare anymore. There are real earnings in explosive new businesses on that index."

Many corporations in the U.S. have global operations, including technology (like Intel), Internet (like Google), markets (like eBay), and banks (like Citigroup). Thus, the rise and fall of the dollar does not have a catastrophic impact on the bottom line.

GDP: Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.9 percent in the third quarter of 2007, according to the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.8 percent. That’s not as good as China or India, but better than most of the countries in the world. The increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), exports, federal government spending, equipment and software, nonresidential structures, private inventory investment, and state and local government spending that were partly offset by a negative contribution from residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

"The GDP report provided scant evidence of spillovers from housing to other components of final demand: Strong growth in consumer spending was supported by gains in employment and income, and businesses increased their capital spending at a solid pace. A strong global economy stimulated foreign demand for U.S.-produced goods and services, as foreign trade contributed nearly 1 percentage point to the growth of real output last quarter." Chairman Ben S. Bernanke, speaking about the economic outlook before the Joint Economic Committee, U.S. Congress, on November 8, 2007.

"In the last five years, household net worth has gone up $18.5 trillion in the United States. Only $4.4 trillion of it can be attributed to real estate, 24%... So American have a lot of wealth to spend." Tobias Levkovich, Chief U.S. Equity Strategist, Smith Barney

Mr. Levkovich also pointed out that:
1. Pension assets, at $12 trillion, are roughly equivalent to real estate net worth.
2. Over 90% of the consumer spending came from something other than mortgage equity withdrawal. Some people were using equity as the ATM machine; most were not.
3. The OECD estimates that pension assets around the world are about $17.9 trillion, and about $12.4 trillion of that is in the U.S. We have a low savings rate because our "savings" is in our pension plans.
4. The U.S. budget deficit as a percentage of GDP is better than Europe’s and better than Japan’s. The U.S. government’s debt as a percentage of GDP is meaningfully less than for most of the European countries, as well as Japan.
5. Though credit is tightening, corporate balance sheets are in very, very good shape, and they have the ability to borrow and use cash [for M&A deals].

3^rd Quarter earnings:

• On 10.22.07, Apple computer announced results that were 28.5% higher than last year, with shipments of Apple computers up 34% year over year. Cash on hand: $15.4 billion.
• On October 17, 2007, eBay reported record consolidated Q3-07 net revenues of $1.89 billion, representing a year-over-year growth rate of 30%.
• Google reported revenues of $4.23 billion for the quarter ended September 30, 2007, an increase of 57% compared to the third quarter of 2006. Cash on hand = $13 billion.
• On Oct. 15, 2007, Citigroup reported net income for the 2007 third quarter of $2.21 billion, or $0.44 per share -- a decline of 60% from the prior-year quarter. The surprise was that a portion of that downturn came from their fixed income division, which is typically a perennial performer. Citigroup’s 3^rd quarter earnings report was a decline, not a loss. They wrote down losses on their subprime portfolio and had unexpected underperformance in some of their divisions, but the quarter was profitable for Citigroup and revenue is up this year over last.

Market Report:
The Federal Open Market Committee decided on September 18, 2007 to lower its target for the federal funds rate 50 basis points to 4-3/4 percent. The big, fat rate cut thrilled investors. The stock market immediately rallied on the news. For Halloween, the Feds decided to give investors some candy, with another 25 basis point reduction in the Fed Fund Rate. Investors fell in love with stocks and the markets soared on the news. Continued histrionic headlines and inflated statistics on the severity and pervasiveness of the subprime problems spooked investors in November, for the worst sell-off of the year. By December, however, things were looking up again, not as high as early October, but still strong on the year. Nasdaq, as we predicted last November, posted double and more gains on the S&P500.

General Stock Market Performance

The Bottom Line always is that getting rich is a matter of balance, strategy and patience. You should not be day-trading your nest egg. If you don’t know what the proper balance of real estate, stocks, bonds and Beanie Babies you should have in your investment portfolio, your next investment should be in education. If you’d like to learn how to pick stocks and sectors with my methodology – which includes an easy 3-ingredient recipe and easy to use Stock Report Cards -- I encourage you to come to my Get Rich and EnRich Retreat in January. We’re expecting a sell-out, so I recommend that you sign up online now. Reverend Michael Bernard Beckwith, featured teacher of The Secret, will be joining us to teach everyone how to apply the law of attrACTION to greater wealth and investment gains.

Wisdom + the law of attraction = the rich life. It is that simple.

The rich life is a life plan, not a lottery ticket, which is why the setting of our retreat is in the most beautiful hotel in the world – the Loews Santa Monica Beach Hotel. Join us. You know you want to. Take some from your education budget, some from your long term and short term fun budgets and register now. We’ll show you how to invest for profits once you arrive. Our premium subscriber Sam Sanders is up 87% this year. Another broker back East saw the same kind of returns over the last year, using our picks. What are you waiting for?

View of the famous Santa Monica Pier from the Loews Santa Monica Beach Hotel.

Poolside, overlooking the Pacific Ocean, at the Loews Santa Monica Beach Hotel.

USE THE SUBSCRIBER PROMOTIONAL CODE: RetreatPeak to receive a discount price of just $1,295 per person! (Regular price is $2,055. Such a deal!) Sign up now at the below link. Couples (or persons bringing a friend or second family member) can come at the low rate of just $1880 with the promo code RetreatPeak2.

Register NOW, before December 10, 2007, to guarantee your attendance.

The Writer’s Guild Strike Update
Leaders from the WGA and the AMPTP have mutually agreed to resume formal negotiations on November 26. No other details or press statements will be issued.

You’ll see that I’ve made my choice to keep media on the Hot News List for now, though I continue to monitor the situation carefully (but not obsessively).

Peace and Prosperity,

Natalie Pace

EDUCATIONAL OPPORTUNITES AND INFORMATION:

1. Interest Rates: The Big, Fat Rate Cut! The October 31, 2007 move marked the 2^nd consecutive rate cut since September of 2007. The Federal Open Market Committee cut the Fed Funds rate by 25 basis points on Halloween 2007 and 50 basis points on September 18, 2007. The federal funds rate is currently at 4-1/2%.
   
   
2. FOMC Information: Interested in reading the minutes of the October FOMC meeting for yourself? You can. The official Federal Reserve document is available online. Click on FOMC, or go to FederalReserve.gov, to read!

The tentative FOMC meeting schedule for the 2007-2008 calendar is: December 11 (Tuesday), January 29-30, 2008 (Tuesday-Wednesday), March 18, 2008 (Tuesday), April 29-30, 2008 (Tuesday-Wednesday), June 24-25, 2008 (Tuesday-Wednesday), August 5, 2008 (Tuesday), September 16, 2008 (Tuesday), October 28-29, 2008 (Tuesday-Wednesday), December 16, 2008 (Tuesday). The fact that the Federal Open Market Committee decided to increase the number of 2-day sessions from two to four in 2007 is an indicator of the concern in the economy at this juncture.

3. Calendar Section: Conferences, Online Chats and more: 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, real estate veterans and CEOs! Be sure to calendar the dates of the mid-month Hot News on Cool Stocks Update and the publication date of our special Company of the Year January 2008 ezine. Get more information on how to best use our articles in the FAQs article, located under the Investor Edu link on the home page of NataliePace.com.
   
   
4. Survey Results: Check out our article on the Best Gifts for Guys and Women in this month’s ezine. Great holiday tips are to be found there.

Bottom Line: NataliePace.com is providing you with news and important information, but you need to consult your financial planner to determine your best strategy for using the information. Your investments and portfolio should take into account your age, your retirement goals, 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.

The Hot News on Cool Stocks List
Full disclosure: I have listed the companies that I currently own under the column "NP OWNS?"

Hot Stocks List
Investors who "never pay retail," note that highlighted stocks are trading at their 52-week lows or near the price featured in NataliePace.com’s article. This may be a good buying opportunity. The companies that are listed below which are not highlighted may not be in a good buying range, but they appear to be poised to continue performing well (if you have already purchased them). 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.

Highlighted Companies (Hot List):
American Superconductor (AMSC)
Citigroup (C)
Conergy (CEYHF)
Echelon (ELON)
Energy Conversion Devices (ENER)
Hoku Scientific (HOKU)
Krispy Kreme (KKD)
Smith and Nephew (SNN)
UQM Technologies (UQM)
U.S. Gold (UXG)
WisdomTree (WSDT)
ZOLTEC (ZOLT)

Recent Additions:
AU Optronics is not considered to be in buying range. Only those stocks that are highlighted above are trading at a price that we consider to be attractive.

1. Conergy was added on November 2, 2007.
2. AU Optronics was added on October 3, 2007.
3. American Superconductor, Energy Conversion Devices and Zoltec were added on December 3, 2007.

Recent Deletions:
Jet Blue was deleted on December 3, 2007 with negative performance.

Hot News on Cool Stocks List

Sony (NYSE: 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 February 12, 2007. Intuit, deleted in June 2007, was a wash for us – up and down. Macerich posted 150% gains between May 2003 (when it was first featured) and September 2007 (when it was removed from the list). Jet Blue was removed on December 5, 2007 with losses of 24-45%. Still love the airline as a consumer, but oil prices are killing the industry.

Stocks to Watch
Great Companies. The companies that are listed are worthy of watching. Some we’re watching to add to the Cooling Off list and some for the Hot List.

Recent Additions (added on 12.05.07):
Emcore
International Rectifier

Recent Deletions:
Advanced Micro Devices on 12.05.07

Cooling Off Stocks List (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.)

Highlighted Companies (Cooling Off List):
Wells Fargo

The following companies were taken off of the Cooling Off list effective 10.16.06: Verisign (+15%). IMClone (-11%). Yahoo (-28%). LifeCell was removed on 7.2.07 with -4.5% overall performance. (The cooling off list anticipates that a company will lose share price value.) Google was added on 7.16.07 and then removed on 8.1.07 with losses of -6.7%. General Motors was removed on 10.01.07 with mixed performance.

Please note: NataliePace.com does not act or operate like a broker. We are a publishing, 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 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.

NataliePace.com Calendar:

Don’t Miss the Get Rich and EnRich Retreat featuring Natalie Pace, Michael Bernard Beckwith and Dr. Rickie Byars Beckwith on January 2-5, 2008. You must be it, in order to do it. Experience the rich life with us and change your life now and forever.

Photo: View of the Santa Monica Pier from the Loews Santa Monica Beach Hotel © Loews

The NataliePace.com Calendar section features conferences, retreats, educational opportunities, cultural events, galas, market events and online chats with executives and VIPs. Stay plugged in! Visit our calendar section often.

See below 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 website and registration, go to the Calendar section at NataliePace.com.

GreenXChange Conference, Los Angeles, CA
Monday, December 10th, 2007
Top private and public decision makers who buy, manufacture, sell, finance, endorse and legislate green technologies, products, innovations and services. An Inconvenient Truth Director Davis Guggenheim will speak.

Mid-Month Update: Hot News on Cool Stocks
Monday, December 17th, 2007
Look for our mid-month update on the home page between noon and 7:00 p.m. You can access the article under the online magazines link as well!

Global Peace Meditation Day
Saturday, December 22nd, 2007
The Club of Budapest and The World Peace Prayer Society are sponsoring a worldwide event to celebrate the Winter Solstice.

New NataliePace.com Ezine!
Friday, December 28th, 2007
The new January 2008 ezine will be posted between 9 a.m. and 8 p.m. PT. Don't Miss our Special Company of the Year feature article!

New Year's Meditation Retreat, LA, CA
Saturday, December 29, 2007-January 1, 2008
Don’t Go Into The New Year Without A New You! Facilitated by Rev. Michael Bernard Beckwith, featured teacher of the Secret.

Living the Rich Life Retreat, Santa Monica, CA
Wednesday, January 2-5, 2008
Attend this 4-day beachfront retreat and create a new Living the Rich Life plan, learn Natalie's trade-marked 3-ingredient recipe for cooking up profits and attend Reverend Michael Bernard Beckwith's Agape Sanctuary! Email Heather@NataliePace.

Mid-Month Update: Hot News on Cool Stocks)
Monday, January 14th, 2008
The mid-month update of the hot news on cool stocks report will be published on or before 5:00 p.m. PT. Check online before noon, just in case we get it out early!

Wagner's Tristan und Isolde at the Los Angeles Opera
Saturday, January 19th, 2008
David Hockney designs. Bold and fanciful, eye dazzling, creating a "tone of antic freshness, of fairy-tale legend filtered through adult (and adulterous) fantasy, according to the NY Times.

5th WSF World Spirit Forum: Zurich, Switzerland
Sunday, January 20th, 2008
WSF hosts spiritual and religious and political and social activists to gather and develop a plan for a unified humanity with equity and solutions for global concerns.

FOMC Meeting
Tuesday, January 29-30, 2008
The Federal Reserve Board governors meet to determine whether inflation is more of a factor than the housing pullback and subprime defaults. Will the Feds keep the rate where it is, raise it or lower it?

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