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Vol.5 Issue 4 April 1st, 2008
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Quote of the Month:
hourly earnings of college-educated persons grew from about 40%
higher than that of high school graduates in 1980 to about 80%
higher in recent years."
Nobel Laureate winning economist and author of A Treatise on
We Are Saying is Give Peace (and Business) a Chance.
By Natalie Pace.
- The New Gender Gap in Education.
Dr. Gary S. Becker, Nobel Laureate, Economics, and author
of A Treatise on the Family.
- Solar Springs Up Again.
By Natalie Pace. Solar energy stocks went dormant this
winter, but are prepared for another scorching hot summer.
Includes a Solar Energy Stock Report Card.
- The Business of Books. By Chellie Campbell, author of Zero to Zillionaire.
- Thoughts Become Things. What are you creating: Depression
and Despair or Joy and Freedom? By Gary Kobat. Includes
your very own Emotional Guidance System (EGS) chart.
- Building Immunity Through Whole Foods.
. By Janelle Deeds CNC, NE, Nutritional Consultant, Functional
By Marilyn Tam, co-founder, Us Foundation, and author
of How to Use What You've Got to Get What You Want.
- Reverse Mortgages: Avoiding a Reversal of Fortune.
Investor Alert from FINRA.org.
- Turn off the Tele and Turn on the Returns!
subscribers chat with Blue Chip stock picker, Kelley Wright,
managing editor, Investment Quality Trends stock
- Why You Should Rebalance Your Portfolio.
Olson, vice president, Schwab Center for Financial Research.
- Market Mood Swings:
Capitalizing on Fear and Loathing on Wall Street. By Natalie
Pace. Includes my Hot News on Cool Stocks List.
- NataliePace.com Calendar:
Don't miss the biggest global conference of the year -
the Milken Global Conference. Also, join us for chats
with Natalie Pace and life and fitness Coach Gary Kobat,
on how to beautify your fiscal and physical fab self.
All We Are Saying is Give Peace (and Business)
Chopra, author of The Third Jesus: The Christ We Cannot Ignore
On March 11th,
525 peacemakers flocked to the capital city of San Jose, Costa Rica
to hobnob with spiritual leaders, attend Presidential ceremonies
and brainstorm strategies for promoting, in the words of Deepak
Chopra, "a new world where hope, social justice, peace and
a sense of the sacredness of life prevail." For the next three
days, Americans, Mexicans, Europeans, Asians, Australians, Africans
and even a few Texans spent time in small groups envisioning what
the world needs now, what actions need to be taken to bring about
the new vision and how they could network to support one another
in an Alliance for a New Humanity. Spiritual gurus like Deepak Chopra
(the president of the Alliance), the eloquent Marianne Williamson
(bestselling author and Chair of The Peace Alliance), President
Oscar Arias Sanchez (the 1987 Nobel Peace Prize winning President
of Costa Rica), Baltazar Garzon (the Spanish judge who was responsible
for nailing Pinochet) and other respected academics, authors, policymakers
and even business leaders lead provocative debates by day, and celebrated
the lush Costa Rican heritage by night.
In fact, Costa
Rica was the perfect place for such a global conference, as well
the leaders of the Alliance knew. Costa Rica is a groundbreaker
in many regards. The country has no military, having disarmed its
army in 1949. The former military headquarters is now a Museum of
Peace. Money that would have been diverted to defense is poured
into education. As a result, Costa Ricans are very well educated
and about one out of ten people speak English almost as well as
Spanish. (Learning English is compulsory, as is education, in Costa
Rica.) Electric service abounds – reaching 97% of the territory!
And recently, Costa Rica became the first Central American country
to establish diplomatic relations with China. On October 24, 2007,
President Arias of Costa Rica and President Hu Jintao of China agreed
to cooperate on technologies, investment, culture, public health
Costa Rica is
known for protecting their rainforests, for electing a Nobel Peace
Prize winning President, for their educated citizens, for their
spectacular beaches and for pura vida – enjoying a grand life. The
cultural mix of African, Spanish and Indian makes for some of the
most beautiful people in God’s creation. (I overheard a woman comment
that she’s surprised that everyone isn’t half-Costa Rican -- the
men and women are so beautiful.) So does peace work flawlessly when
given a chance?
to work amazingly well, especially when you consider how literate
the people of Costa Rica are – in the fine arts, in addition to
basic math and language skills -- compared to their neighbors. However,
there are some unique factors that play into Costa Rican peace,
which are not the case in war-torn countries. Costa Rica doesn’t
have any rare, expensive natural resources – like diamonds, oil
or gold – and the citizens feel that the United States has their
back if they were to be invaded. It’s much easier to walk the back
alleys of the world in daylight without anything of value glistening
on your neck, and a big security guard a few paces behind you.
suggests that countries like the U.S. don’t need to disband their
armies (yet) to start actively promoting peace now. As the Chair
of the Peace Alliance, an organization with the goal of putting
a Department of Peace in the United States government, Marianne
is not proposing either or. According to Williamson, the United
States needs both -- a department of peace and a department
"What 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 proclaimed
to a crowd of peacemakers last February, who seconded her thoughts
with a standing ovation. "We must do more than fight our enemies.
We must create more friends," she said.
Chopra speaking at the National Peace Museum in San Jose.
with personal interaction -- even at a peace rally. It wasn’t all
good times and Hallelujah in the group dialogs at the Human Forum
in Costa Rica. Two brothers complained that there was too much politicizing
and flagrant promotion of Costa Rica real estate for sale. "I
thought that this was going to be more spiritual," they said.
One panelist, Sam Keen, called for an end to all business now, saying,
"The best thing the business community can do is commit suicide."
In a discussion on how to influence the "influencers,"
an American man called business leaders "monsters," who
were in the business of "profiteering for greed."
Since half of
the audience was made up of business leaders (who understand the
responsibilities of running a business), there were more than a
few uncomfortable moments before the presupposed myths of business
and money as "bad," which were held by a very vocal minority,
began to be deflated. One person received a standing ovation when
she called for a capital markets solution to the inhumane conditions
of raising cattle, which might be contributing to the greenhouse
gas effect. "If you want to stop ranchers from raising cattle,
simply stop eating meat!" she said. In solidarity, the conference
leaders asked for vegetarian meals to be served the following day.
for an end to all business were probably not aware that I was sent
to the conference to represent business by an enlightened investment
banker, a senior executive at his company, who believes that capital
solutions have been responsible for many of the social innovations
that we most love. He believes something even more radical -- that
creative banking, for example, Mike Milken’s high yield bonds, can
contribute to the "democratization of capital." This particular
executive protects the people he employs, feels personally responsible
for their livelihoods, promotes the interests of his customers and
works to ensure that the corporation is sound so that shareholders
– regular folks, like you and I, with a pension plan -- continue
to benefit from their investments.
anonymity, the investment banker wrote to me by email:
and business are not evil. Enlightened spiritual architects
must be cautioned to not blame commerce for the structure of
society. Money is a storage of potential energy. It is a transactional
"battery". We don't blame batteries for the poor direction
of flashlights; we shouldn't blame money for the poor direction
Chopra with Costa Rican President Oscar Arias Sanchez and Culture
Minister María Elena Carballo.
Photo Credit: Erika Rand
the business leaders and policymakers, another attendee counseled
that, "They are parents. They are people who care." She
recommended that promoters of peace and sustainable living sit down
and meet with business and governmental leaders as fellow souls,
and that individuals should be quick to thank fast food companies
that switch to paper packaging over Styrofoam. Deepak Chopra would
agree. In an interview with me, the bestselling author said, "You
start by giving recognition to organizations and communities that
are nurturing the environment that are using wisdom-based economies
for their affluence."
And thus, having
525 tourists infuse capital into Costa Rica, supporting a state
of peace by spending their money on food, hotels and by shopping
in the malls, is in perfect alliance with the mission of
the Human Forum. Whether the attendees understood it or not, the
money brought into Costa Rica from their conference plays a role
in ensuring that a country dedicated at its core to natural existence,
preservation of rain forests and promoting peace among its neighbors
continues to flourish. As Deepak Chopra said, "Costa Rica could
serve as a model, as a microcosm for what
could happen in the rest of the world."
By the end of
the three days, it felt as though business leaders had infused greater
tolerance into the peacemakers and the peacemakers were learning
to employ best business practices to achieve their ends. All in
all – it was just another day at the office, full of give and take,
push and pull, frustration and insight, and, ultimately, celebration
and a spark of new ideas. They came thinking that peace began with
an end to business as usual, and left singing, "All we are
saying is give peace and good business practices a chance."
Chopra is the President of The Alliance for a New Humanity, the
founder of the Chopra Wellness Center and the author of more than
40 books. You can access more information on Deepak
Chopra, on The
Third Jesus, on the Chopra
Center and on the Alliance
for a New Humanity, at Deepak Chopra’s website, DeepakChopra.com.
information on Marianne
Williamson and Marianne’s new book, The
Age of Miracles, go to Marianne.com.
For more information on the Peace Alliance and the Department of
Peace bill that is currently before the House of Representatives,
go to ThePeaceAlliance.org.
To find out
more about vacationing in beautiful Costa
Rica, with their white-sand beaches and rain forests,
go to VisitCostaRica.com.
articles of interest in our ongoing Peace = Prosperity series:
Sandra Day O'Connor on Peace and Fairness in Iraq. Exclusive
Interview with Natalie Pace. Vol. 4, issue 9.
= Prosperity. Q&A with Dr. Gary Becker, esteemed University
of Chicago economist and Nobel Laureate, on how freedom, democracy,
war, terrorism, riots and gangs affect a nation's prosperity. By
Natalie Pace. Vol. 4, issue 6.
Economics of Disaster Management. By Dr. Gary S. Becker.
Vol. 4, issue 6.
Shine on Marianne Williamson’s Peace Plan. by Natalie Pace.
NataliePace.com archived ezine, vol. 4, issue 3.
Steven 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!
Gurus Weigh in on The Department of Peace Bill. By Natalie Pace.
NataliePace.com archived ezine, vol. 4, issue 3.
Evolution Toward Freedom. A candid interview with one of the
most respected CEOs in mainland China, Dr. Charles Zhang, Chairman
and CEO, Sohu.com. By Natalie Pace. NataliePace.com archived ezine,
Vol. 4, issue 1.
Inc(RED)ible Campaign to Empower Africa. By Natalie Pace.
Featuring (PRODUCT) RED. Vol. 3, issue 12.
New Gender Gap in Education.
S. Becker, Nobel Laureate, Economics, and author of A
Treatise on the Family.
average hourly earnings of college-educated persons grew from about
40 % higher than that of high school graduates in 1980 to about
80% higher in recent years. -- Dr. Gary S. Becker
Gary S. Becker,
University Professor, Dept. of Economics Sociology Professor,
Graduate School of Business, the University of Chicago
Nobel Laureate, 1992
Until the mid
1960's, female high school graduates were less likely than male
graduates to go to college, and female college students were far
more likely to drop out than were male students. The direct reason
for this difference was that many younger women married and then
dropped out of school - mainly to start having families. Perhaps
a more basic reason for this gender difference in education was
that women did not participate in the labor force so much in those
days, and hence many women did not believe a college education was
All this has
changed radically since 1970. Female high school graduates are now
no less likely to enter college than are male graduates, and a much
larger fraction of girls than boys finish high school. These two
facts imply that considerably more women enter college than men.
The fraction of college students who are female is further increased
by the greater propensity of women who enter college to finish and
graduate. About 57% of American college students are women, and
they constitute about 60% of those who graduates. Similar trends
toward making women a majority of college students apply to many
European countries, and some Asian countries as well.
this reversal from under representation of women in college to over
representation (see the related discussion in my blog entry for
July 17, 2006)? One important cause is that marriage and child-rearing
exert a much weaker pull out of school for women than in the past,
since women marry and start families at much later ages than 40
years ago. This increase in age at marriage is related to the decline
in birth rates, and to the increased time that women want to spend
working rather than caring for children and running households.
college education is more attractive to women who spend greater
time in the labor force since going to college significantly raises
earnings of women as well as men. The financial attractiveness of
a college education has grown sharply for both sexes since the 1970's
because of the large rise in the earnings premium from a college
education. The average hourly earnings of college-educated persons
grew from about 40 % higher than that of high school graduates in
1980 to about 80% higher in recent years. This trend toward a much
higher college education premium is also found in many other countries
as well as the United States.
evidence on non-earnings benefits are more limited, the advantages
of a college education in improving health, raising children, managing
financial assets, responding to adversity, and in other areas of
life have also grown along with the growth in the college earnings
premium. This implies a widening advantage of a college education
even to women who spend a significant portion of their time raising
children and managing a household. In addition, the propensity of
college-educated women to be married has increased a lot relative
to the marital rates of women with less education, so that graduating
college no longer significantly reduces a woman's chances of marriage.
forces pushing women toward a college education have been strong
during the past several decades, it is no surprise that a much larger
fraction of young women now enter and complete college than a half
century ago. This does not, however, fully explain why women are
more likely than men to be in college since most of these forces
have been just as powerful for men, and college-educated men still
spend a larger fraction of their time working in the labor force
than do college-educated women.
reason why women not only closed the education gap with men, but
also changed the direction of that gap, relates, I believe, to the
better performance of women in school. The average grades of women
at every education level exceed the average grades of men, while
the variation around the average is larger for men. Persons with
low grades find school unpleasant since their teachers criticize
them, and they come to believe that they are failures. Since many
more boys than girls in high school have low grades because both
average grades are lower and the variance in grades is greater for
boys, more boys than girls find high school unpleasant and drop
out before graduating. Dropouts truncate the grade distributions
of graduates at the lower end, so that average grades of boys who
graduate high school are closer to the average grades of girls who
graduate than are the averages for all boys and girls in high school.
The same process
operates at the college level. Men have much lower grades in college
and find the experience less pleasant, so they drop out of college
in much larger numbers than women, and are much less likely to graduate.
That many more men than in the past continue on to college after
high school indicates that they are aware of the rise in financial
and other benefits from college. That they drop out of college in
large numbers presumably indicates that they are either discouraged
by their low grades, or they just do not like being students.
Why women at
all ages do better in school than men is not so easily understood.
It is unlikely that women do better mainly because they expect to
remain in school longer- this is causation from remaining in school
longer to better grades- since women had better average grades than
men even when they were more likely to drop out of school. One line
of explanation argues that women are more diligent students, less
rebellious, and more docile students. Whatever the explanation for
the remarkable shift in college attendance rates of men and women
during the past 40 years, this shift is likely to have major implications
for future changes in the gender gap in average earnings, the fraction
of heads of business that are women, and other measures of gender
differences in achievement.
Becker is the University Professor, Department of Economics,
and Sociology Professor, Graduate School of Business, The University
of Chicago. To keep track of Dr.
Becker’s continuing research and commentary, visit
his web site and blog.
To hear more of his recommendations for strengthening the U.S.
economy, plan on attending the 2008
Milken Global Economic Conference.
Solar Springs Up Again.
energy stocks went dormant this winter, but are prepared for another
scorching hot summer. Includes a Solar
Energy Stock Report Card.
at the speed of light? Solar energy sales.
Power Holdings annual sales in 2007 was $1.35 billion, more than
double 2006’s total of $599 million, which in turn was more than
double the prior year’s sales of $226 million (in 2005). LDK Solar
has already tripled last year’s sales (at $331 million over
$106 million), and they have yet to release the 4th quarter
results (due in June 2008). Trina Solar’s annual sales jumped to
$302 million, from $115 million a year ago.
that I mention all of the Chinese companies, while overlooking First
Solar (based out of Phoenix, Arizona) and Sunpower Solar (based
out of San Jose, California). Why? Mostly due to the source material,
which has killed profit margins in Sunpower and inflated the profit
potential of First Solar. Yes, First Solar and Sunpower saw their
sales double in 2007. The question is: "What will be the case
in 2008 and 2009?"
a big problem with supply in the last quarter of 2007, which is
why we chose Suntech Power Holdings for our Company of the Month
in October 2006, over Sunpower. Suntech had secured long-term silicon
supply at a more reasonable price with MEMC Electronics, whereas
Sunpower was experiencing more difficulty obtaining a clear, uninterrupted
channel for silicon at a reasonable price, especially during the
second half part of 2007. This problem was foreseeable in October
2006, and is largely responsible for the death of Sunpower’s profits
was reflected in the profit margin disparity between Suntech Power
Holdings and Sunpower last year. Suntech’s net profit margin was
at 12.55% compared to just 1.19% for Sunpower. "In the latter
part of 2008 and beyond, we expect our industry's silicon feedstock
to become more abundant, leading to lower solar panel prices which
will redistribute the power and profit pools in the value chain,"
according to Sunpower CEO Tom Werner, in his annual report. Even
though Sunpower’s profitability was just a hair’s breath above the
red, Sunpower remained popular with investors, probably because
their solar panels are aesthetically appealing and their energy
efficiency is at the top of the marketplace. However, in our view,
the better bet, at least for 2008, remains Suntech Power Holdings,
which has long-term supply contracts with MEMC Electronics and is
partially funding a new silicon manufacturing plant for Hoku Scientific.
In 2007 and
the beginning of 2008, First Solar was the most popular solar energy
company on Wall Street. First Solar is trading at a lofty price
to earnings ratio of 91.60, and is one of the few solar companies
that is still trading near its 52-week high. Most solar energy companies
experienced an extreme pullback earlier this month (which is when
we put Suntech Power Holdings and World Water and Solar back on
the Hot News list -- at prices not seen for a year!). However, there
are a few factors in First Solar’s powerful past dominance that
investors should take note of.
film solar versus silicon panels
Solar uses cadmium telluride instead of silicon to transfer sunlight
into useable energy. This was a huge competitive advantage when
silicon was hard to get at a reasonable price. Thus First Solar’s
operating margins were the highest in the industry – at 31.42%.
That is shifting, however.
As Dr. Harry
Atwater advised a crowd at the Green Xchange Conference last December
2007, silicon is an abundant source material, whereas cadmium telluride
is rather rare. Once silicon manufacturing heats up, which is expected
to happen this year, the desirability of cadmium telluride could
diminish rapidly, as the advantage right now is cost, rather than
efficiency. Once the costs of using silicon as a source material
line up with cadmium telluride, silicon has the edge. Silicon based
solar panels produce more energy more efficiently, and with the
source material of sand, there is no foreseeable end in supply.
Thus as the
market forces that supported First Solar’s lofty share prices shift
back down to Earth, don’t be caught clinging to a rare trace element,
when you could be walking in miles and miles of sand for years to
come! This isn’t to say that there won’t be room for First Solar
solar products in the years to come, but rather to say that the
scientists believe that silicon is a better bet as the source material
to power renewable energy as the fuel of choice, as we attempt to
scale back our reliance on coal and fossil fuels.
So, this year,
the solar energy companies that top our hot list include Suntech
Power Holdings, Trina Solar, LDK Solar and our perennial favorite
– World Water and Solar. Trina Solar is a Chinese company, in direct
competition with Suntech Power Holdings. Trina has strong management
and board, which is necessary in a highly competitive, rapidly growing
industry, that is still very reliant on government subsidies and
incentives to achieve market dominance. LDK Solar is a silicon wafer
manufacturer that supplies wafers to companies, like Suntech and
Trina, which has been tripling it’s sales over the last year.
was added to the Hot News list last week, when it was trading at
$30/share. World Water was added at $1.01. Both companies have enjoyed
a rally since that time, with Suntech trading at $42 and World Water
and Solar trading at $1.23, as of March 31, 2008. In today’s market
place of share price mood swings, it’s better to be patient for
the lower buy-in price.
I’m adding Trina
Solar and LDK Solar to the Hot News list today.
Click to access
Energy Stock Report Card.
Natalie Pace owns shares of World Water and Solar.
note: NataliePace.com does not act or operate like a broker. We
are a new media website. 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.
should NOT be using the Hot News on Cool Stocks list or the Cooling
Off list to trade their nest eggs. Your retirement plan should reflect
a long, safe strategy, which has been designed with the assistance
of a financial professional who is familiar with your goals, risk
tolerance, tax needs and more. The "trading" portion of
your portfolio should be a very small part of your investment strategy,
and the amount of money you invest into individual companies should
never be greater than your experience, wisdom, knowledge and patience.
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.
Business of Books.
Campbell, author of Zero
you’re a successful published author – can I take you to lunch and
pick your brain about the book business and how to get my book published?"
Campbell, Author of Zero to Zillionaire Photo credit: Mary Ann
I can’t tell
you how many requests like that I have had since The Wealthy
Spirit and Zero to Zillionaire were released in 2002
and 2006, respectively. After awhile, I was getting too fat from
all that lunching out, and wrote it all up in a book publishing
report (available free to all Dolphin Club members). Here are some
interesting book industry statistics from that report:
1. 2% of the
200,000 books published each year become bestsellers.
2. 84% of the
bestsellers are published by the 5 largest New York publishers.
3. 2 out of
10 books published make a profit for the publisher.
4. In 2004,
950,000 titles out of the 1.2 million tracked by Nielsen Bookscan
sold fewer than 99 copies. Another 200,000 sold fewer than 1,000
5. Only 25,000
books sold more than 5,000 copies.
6. The average
book in America sells about 500 copies.
7. Only 10 books
sold more than a million copies in 2004.
8. Fewer than
500 books sold more than 100,000 copies in 2004.
9. The magic
number for a book to be considered successful is 10,000. When The
Wealthy Spirit reached 12,000 books sold, my editor called me
and said, "We’re ready for your next book!" And so I got
the contract to write Zero to Zillionaire. The Wealthy
Spirit has now sold nearly 20,000 copies and Zero to Zillionaire
is approaching the magic number of 10,000 copies sold.
The good news
is you don’t have to have a blockbuster like The Da Vinci Code
in order to be successful with your books. You only have to sell
5,000 to be in the top 2% of bestselling books. That looks a lot
more doable than selling a million, doesn’t it?
books usually start at 10% - and unless you have a major publisher,
they are now based on wholesale price and not retail, and the reserve
against returns is 15-25%. So the odds on making your fortune from
a book alone are slim.
books are like business cards. They are my best marketing pieces,
help me spread the word about my seminars and professional speaking,
and give me oodles of credibility so I can charge good fees for
my work. Many times people have signed up for my workshops just
because they were fans of my books. They are one of my "multiple
streams of income" and I have ideas for more books to come!
book sales are all about PLATFORM. That means, how many people know
who you are and will buy your book? That's why you see so many celebrity
books - they have huge platforms and so will sell many more books
than an unknown author. That is why Jessica Seinfeld got a book
deal for her cookbook when the unknown author who pitched basically
the same book six months prior to her didn't get a deal.
Books are widgets
and publishers are manufacturers and their number one goal is to
sell a lot of widgets. Never forget that! Here's some insider
info: I was a speaker at a conference in Mexico in October, along
with Marci Shimoff, author of 6 Chicken Soup for the Soul
books. She is a part of a mastermind group of best-selling speaker-authors
that do mailings for each other – you’ve seen the "Be a Bestseller
on Amazon" promotions with all the free goodies from other
self-help authors, yes? Marci’s announcement about her new book
Happy for No Reason, which is a fabulous book, went out to
5 million people! That's what I mean by platform, and why she got
a big deal with a major publisher.
But look, she
started small, too. She pitched Chicken Soup for the Woman's
Soul to Jack Canfield when there wasn't any idea for a series
of "Chicken Soup" books – there was only the one book.
But she saw a sequel in meditation and called Jack and pitched her
idea. Then she built her reputation by speaking and writing more
of those titles and I'm guessing not much money in the beginning.
Now she commands big speaking fees and gets big advances for her
The book business
is like every business. People who have made it usually built their
brand and their business slowly over time and came into the big
money later, after years of hard work. Read the biographies of any
famous person and you'll find that same story over and over. Faith
Hill became famous with her fourth album. Bon Jovi sold his 50th
song demo, and the band didn't make any money until their 3rd album.
That's why you
have to love your work – your goals have to be so juicy that it’s
fun just to work towards them! Because that's all that will sustain
you through the failures along the road to success. Look at everything
as fun and an adventure along the way and you'll be happy and successful
every day of your life.
And that’s my
secret of happiness.
Speaker and Author of The Wealthy Spirit and Zero
to Zillionaire has been teaching Financial Stress Reduction®
Workshops since 1990. The Wealthy Spirit was a book-of-the-week
on the Doctor Laura Schlessinger radio show and a GlobalNet book-of-the-month
selection. She has been quoted in Good Housekeeping, Lifetime,
Woman's World, and Essence, and more than 30 popular
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 Financial Stress Reduction®
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.
Thoughts Become Things.
are you creating: Depression and Despair or Joy and Freedom?
Includes your very own Emotional Guidance System (EGS) chart.
pacing World Champion Sara Chojnacki to a podium finish in Austin,
you haven't gotten it by now: we are the creator of our own experiences.
Our emotions are our indicators of our alignment, our direction,
and/or connection to our future and our source. Like a sculptor,
painter, potter, or writer molding and crafting through the focus
of our minds, we broadcast our signals at every moment, with these
signals easily understood and received by many. What we are feeling
and thinking creates our world. The stronger the feelings; the stronger
the alignment with those thoughts. You are inviting your highest
good, or sentencing yourself to a term of "in your own way-ness."
are our compass. With this knowledge, we can now guide our
direction or even what we attract, using our emotions to feel our
way to joy or happiness. And once we are in control of our
emotional direction, we feel a sense of relief, with less doubt.
We see and enjoy our life, as a prisoner of nothing.
To help you
navigate the path of infinite possibilities, we've created an EGS,
an emotional guidance system, a tool, a chart, a visual for you
to cut out, paste up on the wall, the desk, fold in the planner
or purse to be utilized to help you "move up" on the scale of joy
and happiness. Some of you may be feeling bad, and not really
know how bad till you grade yourself on the scale. Fret not.
As your goal would be to just allow yourself to do the best you
can, to feel the best feeling you can at that very moment, allowing
yourself to find relief by reaching for the best feeling that you
can resonate with on the scale. And with practice, you'll
find yourself moving up the scale quicker, easier, and with less
resistance, feeling better, more frequently, enjoying your day,
your week, your month, your life with more flow.
Recently I read
about the USA’s own Mary Lou Retton, Olympic Gold medalist, world-class
gymnast, 39-year young Mom of 4 beautiful kids, needing to go through
a hip replacement after being so fit and energetic all of these
years for us to witness. I was thinking about the challenge it must
have been for her to go from an assertive, smiling inspiration every
day to limping and painful each day as the hip deteriorated. From
+10s in life, just as she had in the Olympics, to questions about
that was the day that my own hip began to deteriorate: I went from
the high of running my 51st marathon with a client, along with being
presented Team USA’s All-American award days later, which was a
+10 for me - this new 50-year-old -- to barely walking from the
pain just six months later. I sat in church, tears flowing down
my cheek, feeling depressed, a negative 10 out of
10 on the scale of ultimate emotions, worrying about not being able
to serve my clients, compete for my country, make a living in what
I loved or even energetically move as I have the other 49
years of my life.
But then it
hit me, "What about that new hip resurfacing procedure just
approved by the FDA like Tour de France winner Floyd Landis just
received?" This started to move my emotions from the lowest
of lows, from devastation, up a few notches to worried
("Can I do this?"). As I allowed this possible solution
to take center stage, my emotions climbed to contentment
("Okay, I need to get researching"). From there my mood
edged up to hopeful (after I found out more) to optimistic
(after phoning a recent athletic patient and hearing his results)
to positive (being a life coach after all, we know
that what we focus on we attract!) to passionate (about
having the surgery) to freedom when I did it!
Vijay Bose with Gary Kobat after hip resurfacing surgery
in Chennai, India.
Yes, I am almost
a year post-op from flying to see the best surgeon in the world
(located in India) for this new hip resurfacing procedure and I’m
feeling, seeing, and moving like I never have in my life. I’ve been
given a new opportunity in life to do all the things I’ve always
wanted to do by not allowing myself to live in that depressed state.
Rather, I had faith, and a knowing if I just moved up on the scale
of better emotions, that I would manifest better solutions to help
manifest a better outlook. I did not know, however, the how, where,
why, or when it would all get done, but, rather just trusted
that my own state of optimism and faith would connect me with the
universe’s best results for me. Just as Mary Lou did for herself
in her moment of "movement despair".
So with that
energy I have created a scale for you to use: an emotional guidance
scale structured for you to go from the negative or bad: a –10,
to the positive or good: a +10.... with the positive being in alignment
with source energy and with the negative being disconnected from
that same love and source energy, that of which we were made.
Or putting it another way: "The negative is as far from the answer
as universally possibly."
So the next
time you're in an emotional bind: go ahead: plot yourself on the
scale.... and start moving on up.
The EGS: Show
your kids, your spouse. Share it with a friend.
Until next time:
smart. Live, race, recover smarter. Gary.
online with Gary on April 9th, and learn
why it’s hip to get a new hip resurfacing procedure done in India.
Gary Kobat is a life and fitness coach to many celebrities and the
recent recipient of a new hip resurfacing procedure, which he had
done in India by Dr. Vijay Bose, after doing extensive research
into hip replacement and resurfacing options.
Gary is not a doctor and cannot recommend what is best for you personally,
he can share the names of well-respected doctors and research, which
might help to inform your decision-making. Gary’s recovery is unbelievable
proof – so far -- that getting hip surgery does not mean that your
athleticism will suffer greatly or that you will become a cripple!
How did a world-class
athlete go from needing a hip replacement back to world-class competition
in under a year? Learn this and more in Gary and Natalie's 21 day
coaching-call series designed to create a healthier, wealthier,
more beautiful you here and now, setting the stage for the rest
of your life! It's all about energy, tapping into, nourishing and
monetizing the magical essence that you were born to embody.
Get more information
on this chat at the Calendar
Section of NataliePace.com. (Practice going into the chat room now,
so that you can be sure you have your passwords, and do not have
any firewall issues that prevent you from participating.)
Days to a Healthier, Wealthier, More Beautiful You:
miss Gary Kobat and Natalie Pace’s ground-breaking new coaching
call series of 21-day lessons in grounding, anchoring and course
correcting your thinking, eating, moving, and finances.
more about the 21-day program, join us in the online chat with Natalie
Pace and Gary Kobat on Wednesday, April 9th, 2008, at 8:45 a.m.
PT. (Information above and on the calendar section.)
up NOW, simply go to Natalie Pace.com and click on the JOIN NOW
link, or call 866.476.7442 or email Heather@NataliePace.com.
Thank you so much for the incredible coaching series. The daily
calls were just what I needed to start and become comfortable in
some new habits. I would listen when I first woke up each
morning, and it was a phenomenal way to start my day.
Some of what you taught was new to me. And some concepts that
I had heard before I now accept and have internalized at a new level.
It was presented in such an energizing and non-judgmental
manner, and the way new tasks were added each day was prefect. I
implemented some of the concepts, and plan to start again for another
21 days and implement even more.
Equally important as the new action habits I started is a new way
of thinking and feeling and being. I am uncomfortable with
a meal that does not include tons of vegetables. Cravings
for sweet things have subsided greatly, and I can pass by gooey
chocolate treats without even a twinge of deprivation. I look
forward to pushing my body a little more. My fear of making mistakes
in investing has diminished. I am looking forward to the challenge
of working toward 50 percent of my income to survive, when I used
to rebel at the idea.
Thank you again. This has been a life-changing event.
In peace and gratitude,
Building Immunity Through
Deeds CNC, NE, Nutritional Consultant, Functional Endocrinology
Why is it that
with all of improved technology, in depth research and modern knowledge
that we continue to reach epidemic proportions of disease instead
of optimal health? Why are our bodies not responding to conventional
treatments, but instead we find that we have multiple diagnosis
and a cupboard full of medication?
I believe that
these answers lie in our choice of lifestyle. From eating habits
to our environment all of these factors have an impact on our health.
In a 1999 study
of the American Cancer Society it is suggested that over one-third
of the 563,100 cancer deaths were caused by lack of proper nutrition.
But more importantly, it concluded that MOST of these could have
been prevented. Let’s just hear that word again, prevented. That
means there is something that we can do about it.
have taken notice and are committed to regaining their health by
going on a diet or taking the best advertised supplements, not to
mention that new gym membership or fitness equipment. These are
all positive steps toward improving health; however, it is HOW we
use the tools that are available to us as to whether or not it makes
A balanced whole
foods diet is key.
books, trends, fads, that excess weight, it all comes and goes.
But basic whole food nutrition has been a staple of health for many
years. These powerful principles help in:
healthy cellular function and metabolic balance,
our appropriate level of fitness, and
a stress-free mind.
Foods and their
vital ingredients can be enjoyed as well as be nourishing when they
are not over processed, isolated individual nutrients but remain
in their closest to natural state. Such a diet ensures that the
3 functions of digestion – absorption, assimilation and elimination
– work in perfect harmony. Often "synthetic" or "processed"
foods create conditions that disrupt the harmony between these 3
functions. Over years, this leads to severe physical and psychological
The golden rule
of whole foods cooking is to keep it simple. Enjoy herbs and spices
to give it gourmet flair but don’t over complicate.
A balanced diet
of immune-boosting foods and bacteria balancers just might help
you ride out the final days of winter's chill.
Powerful Immune-Boosting Foods
Fresh Juices – Vegetable and fruit juiced fresh and
whole contains vital nutrients and many anti-oxidants. Think
of these anti-oxidants, including Vitamin C as your best pre-cold
and flu friend. While loading up on the stuff will help once
you've been bitten by the bug, there is definitely power in
keeping your immune system in top shape.
Tea – If disease fighting had a prize fighter, it would
be green tea. Besides providing much-needed antioxidants (also
found in whole grains, legumes, and nuts), green tea is said
to have disease-fighting powers to prevent cavities and protect
– First it was fed to the Egyptian slaves to give them strength
to build the pyramids, then it was hailed as the refuter of
vampires–it seems there is nothing garlic can't do. There is
contention that one of its real strengths comes in its pungent
flavor, a key to clearing up congestion.
– Hailed as a "nutritional powerhouse," almonds are packed with
fiber, folic acid, magnesium, calcium, potassium, riboflavin,
and vitamin E. Raw almonds and other raw nuts contain many more
active nutrients than roasted nuts.
– Packed with virus-fighting agents, ginger is a warrior in
the battle against colds and flu viruses. It's touted for opening
nasal passages, clearing congestion, and even soothing nausea.
– Fight stuffy noses and chest congestion with a fiery helping
of horseradish, hot sauce, or hot peppers. Consuming these zesty
items not only allows you to taste something you're eating,
but also encourages the congestion lingering in your sinuses,
head, and chest to loosen up.
– When the worst of winter colds hits, steer your grocery cart
toward the produce section and fill up on bitter greens, such
as arugula and watercress. These fresh leafy veggies are packed
with iron and vitamins A and C, and are believed to help relieve
many flu-like symptoms, ranging from chest congestion to the
An annual wellness
visit will offer you the opportunity to determine your current health
status. This is important because it is really up to you. Your health
or lack of is in your hands. Some simple annual markers assist in
determining if your body is functioning well or there is room for
improvement. A comprehensive Functional Endocrinology Blood Serum
Analysis (blood based biomarker profile) http://healthwalk.com/health-walk-clinic-services/blood-and-saliva.aspx
is one of the lab tests we evaluate and work with in our clinic.
Everyone will benefit greatly from a once a year to look at their
body’s baseline indicators especially as we get older. Aging doesn’t
have to mean not feeling as good or sharp as you did a few years
ago. Energy, stamina, memory, mood and quality of life are your
health right when it comes to vibrant and healthy living.
CNC, NE, is a Nutritional Consultant, and Functional Endocrinology
Specialist at HealthWalk clinic in Carlsbad, CA. HealthWalk is a
healthcare company which offers leading edge, scientifically proven
and effective products and services that provide an integrated healthcare
system for a vibrant life. HealthWalk offers non-invasive and effective
long-term support to enable the body’s own innate powers to do the
healing. One of their services is to provide guidance on healthy
nutrition based on your individual needs and life style, juicing,
whole food blending, nutritious meal plans and supplements, including
HealthWalk’s Rupronol™ http://healthwalk.com/health-walk-product.aspx?ID=5
(to fend off viruses and bacteria). HealthWalk’s mission: Vibrant
health, you can attain it and we are here to support you on your
path to regaining and maintaining it. You can read and subscribe
to their monthly newsletter at http://healthwalk.com/health-walk-newsletter-list.aspx
For more information, go to HealthWalk.com.
Tam, co-founder, Us
Foundation, and author of How
to Use What You’ve Got to Get What You Want.
this first of two articles, Marilyn Tam chronicles her trek to India
to provide anti-parasitic medicine and Vitamin A to impoverished
children in India.
you are doing, give thanks for your life because it is so abundant
compared to so many people who will think that they are in heaven
with 10% of your cast offs and garbage." Marilyn Tam
Tam, co-founder, Us Foundation, and author of How to Use
What You’ve Got to Get What You Want.
Hi Dear Friends,
A short write
up on what’s going on in my world for the moment….
we were on our way to Happy Model School in the rural areas of Varanasi,
India. in fact our car was just negotiating around another cow when
I thought about you. Not that cows are exclusive to the countryside;
the city has many more cows than the countryside it seems…. They
lie down in the middle of the road, eat people’s produce from their
stalls and generally act like they own the place, which in ways
they do. It is so weird to see the bony starving people and fat
cows. The dogs are mangy and the goats are well fed, maybe because
they eat everything and there is certainly lots of garbage for them
Ah, I’m on an
animal theme right now. So many domesticated animals, but I haven’t
seen a cat or any rats. I wonder if it is because people ate them
all? Hah, I’m only half joking.
This place is
the widest dichotomy of spiritual and almost incomprehensibly, intensively
physical place. One has to stay fully present because the environment
is so immediate and in your face. The noise level is deafening,
with horns blaring, screeching of tires, chants and music coming
from shops and temples, bicycle bells ringing, people hawking products
all happening at once. Then there is the sheer crush of people,
cars, pedicabs, bicycles, pedestrians, people sitting on the sides
and middle of the streets, beggars, hawkers with push carts, men
with piles of various items to sell as they walk along, touts trying
to get people to go into their commissioned stores, policemen that
stand around and do nothing, security guards with guns with bayonets
on the end, and of course all the animals who seem to be oblivious
to the cacophony of sound, traffic and general assault on the senses
and very often one’s life, since no one drives, rides, or walks
in lanes or in any remotely organized fashion. And of course no
one stops or gives much of a right of way, yet it all seems to work
relatively smoothly. No one seems to get hurt badly although our
driver did pin a man on a bike between us and a pedicab and also
glanced a school boy that was a bit too close to the car…. No one
stops, says anything and they all keep going.
Then there are
the smells. It is amazing that the place doesn’t smell worse. There
is cow dung, goat dung, dog doo and human urine everywhere since
the men just stop when they feel the call and just turn towards
the wall of the building and start urinating. All that is before
the huge amount of garbage which seems to be generated by the minute;
people just throw trash including one time used ceramic cups, banana
leaves (aka plates) and all other manners of refuse into the side
walk which is periodically swept up by the untouchable caste of
people. All this is before the sheer emotional, philosophical and
sociological aspects of seeing people live in abject poverty and
in decrepit conditions that are hard to imagine. To see maimed beggars,
hollow cheeked, desperate looking mothers with tiny babies come
up to beg and people lying by the filthy sidewalks, which are their
homes…. It’s surreal.
For a Westerner
who is used to having personal space it can be overwhelming, and
in fact it can be frightening and very upsetting. Fortunately for
me I’ve experienced this before so I’m managing, although I’m certainly
going to be thrilled to leave this environment. But I wonder how
you would do in such conditions. The intensity of the assault on
all the senses is so high. I wonder if people just break down under
the strain, if they have not been exposed before.
I elected not
to go to explore the other side of the Ganga with the whole group
to have the time in my room to write to you. There are only two
computers for the whole hotel and only one of the two cables works
with my computer. I’ll explain later. Anyway you can imagine that
it is literally almost impossible to get on line, so I’m writing
this in my room and then I’ll go down and see if I can get online.
Women and Children
Today we distributed
the anti-parasitic medicine and vitamin A to two schools, about
2,000 kids. We were so late because of traffic that we missed one
other school. We will make that up on Monday. We now have a good
system and it is heartwarming to see how needed what we are doing
is for the children.
who came with us told me that every one of the children is anemic
and obviously malnourished. Their big eyes fill up most of their
little faces and I can see evidence of ringworms in at least 5%
of the children. Since they are all in uniforms, their poverty is
camouflaged, but the skinny little arms and small statures attest
to their true economic status. Some have visible signs of worms,
open sores, extended stomachs and that listless stare, but they
are all wonderful little personalities in their own right.
Since I have
to give a speech in every place (a very Indian thing to do, give/listen
to speeches for every occasion; maybe that is why they can be so
patient.) I had them repeat, "Namaste" and "Om jai,
jai Maa" back to me. They loved it; we clapped hands and they
sang us their national anthem.
with the head of the IMA (Indian Medical Association, like our AMA)
on Monday to work out the fine logistics for the balance of the
100,000 distribution after I leave and to put in place the foundation
for larger distributions after we get this program established.
I also want to get a new program for newborns established because
then with one dose we can cut infant mortality a minimum of 27%.
It is a very effective program and we have already started this
program successfully in four countries. India has the worst performance
in improving infant mortality and in fact has slightly declined
in this measure in the last few years. I remind myself to be in
acceptance and acknowledge the good people who are volunteering
to help, instead of any judgment on the social/cultural system that
allows for so much suffering when there is a growing middle class
and cases of extreme wealth here.
are great and they make it all worthwhile. We will distribute to
about 12,000 children before I leave and I will have a signed off
distribution schedule for the rest by then also. The head of the
IMA is a great guy. He is motivated and I believe that this program
really opened his eyes on the people living in the underbelly of
society here. He has committed to me that he will work with me to
get the program to all of the state and eventually to the whole
of India. Ambika is now signed on to help make sure things happen
properly for the balance of the distribution and for future distributions.
My goal is to be able to train her so that she can do this without
my physical involvement in every distribution. These trips are hard
on my body. The food is so unlike what we usually eat, and it is
especially difficult since we’ve been served the same meal items
three times a day everyday. Gee, I know I’m making this trip sound
There are many
great things, the kids, the internal quiet moments, the sacred sites,
the inspiring people…..and what an adventure in so many ways! Definitely
something to be experienced …. Some people thrive on this; Howard
my colleague from Vitamin Angels loves this, which is why he does
what he does. I think India self selects who chooses to come. Funny
that I am not attached to being here or not at all. After all that
I said about people really having a visceral reaction to either
being in India or not, I’m neutral. I love the work but the place
does not really call to me. I know that things are incredibly inexpensive
and you can get almost anything for cheap and at once, but I cannot
imagine wanting to shop even if we had time.
There is a sense
of unreality to the place that makes me wish to stay away from other
interactions other than with the anti-parasitic medicine and vitamin
A and health and nutrition program I am on. Maybe it’s the constant
need to be aware that everyone seems to have a personal agenda and
that it is to take some advantage of the situation for some personal
gain, very exhausting to deal with that. You can’t even ask for
direction without knowing that the person (always a man because
most "good" women aren’t allowed to be out alone) is going
to try to figure out how to get some advantage out of the deal…
Can he have you stop by a shop of someone he knows so that he can
get some commission? Or what about a tour of some kind so that again
he gets some cut? Or what if he can sell you something, hashish,
change money or to direct you to another hotel so that he can make
some $ there too? It’s exhausting.
I know many
people love India and come for the incredible sights, the history,
the spirituality and the inexpensive luxury of being pampered. You
may be one of them and enjoy the place. I come for the work. There
is so much that can easily be done to drastically improve the health
and wellbeing of the children. I’ll be here for a few more days
and then I get to go to Hong Kong for a day and a half to see my
brothers and then home. I will be so happy to enjoy quiet open spaces,
to sleep in my own bed, shower in my own shower and yes, eat fresh
leafy green vegetables that I feel safe eating raw!
are doing, give thanks for your life because it is so abundant compared
to so many people who will think that they are in heaven with 10%
of your cast offs and garbage.
I am grateful
for you in my life because you are part of my abundance.
went to India as the facilitator of a collaboration of three organizations,
Us Foundation www.usfoundation.org
, Humanity in Unity www.humanityinunity.org
and Vitamin Angels Alliance www.vitaminangels.org
to provide anti-parasitic medicine and vitamin A for 100,000 children.
As the representative of Us Foundation, Marilyn took the lead in
organizing this project and is responsible for implementing the
program. Marilyn’s group works with the local teams affiliated with
Humanity in Unity, distributing the anti-parasitic medicine and
vitamin A to prevent blindness, improve their immune systems and
brain development and to educate and hand out hygiene and nutrition
picture flyers translated into the local language so that the children,
parents and teachers could take the information to their villages.
If you are
interested in participating in a future mission, please log onto
For tax-deductible donations to this program, please send your donation
to the India Children’s Project at:
P.O. Box 5780
Santa Barbara, CA 93150
is the founder and executive director of Us
Foundation, the author
to Use What You’ve Got to Get What You Want,"
and former President of Reebok Apparel Products & Retail
Group. Marilyn’s vision is to expand the current 100,000 children’s
health & education program in Varanasi, India to a program which
will serve all the millions of children whose families subsist on
under $1US a day in India… Us Foundation will be collaborating with
the same organizations above, adding Save the Children, and eventually
will be doing this program in 41 countries!
Reverse Mortgages: Avoiding a Reversal
Alert from FINRA.org.
you are in your sixties, and own your home, chances are you have
heard about reverse mortgages—or will soon. Reverse mortgages can
be helpful to homeowners who want to stay in their homes but are
having trouble keeping up with their mortgage payments, or who have
no other source of funds to pay bills or meet unexpected expenses.
But as more Americans near retirement age, some financial institutions
are aggressively marketing reverse mortgages as an easy, cost-free
way for retirees to finance lifestyles—or to pay for risky investments—that
can jeopardize their financial futures.
FINRA is issuing
this Alert to urge homeowners thinking about reverse mortgages to
make informed decisions and carefully weigh all of their options
before proceeding. And, if you do decide a reverse mortgage is right
for you, be sure to make prudent use of your loan.
is a Reverse Mortgage?
homeowners who want to tap the equity in their homes typically have
three options. They can sell their house and downsize, take out
a home equity loan, or consider a reverse mortgage. A reverse mortgage
is an interest-bearing loan secured by the equity in your home.
To be eligible, you and any other co-borrowers, such as your spouse,
must own your home and be 62 or older—although some lenders offer
reverse mortgages to individuals as young as age 60.
Like a home
equity loan, a reverse mortgage allows you to convert your home
equity to cash that you can use for any purpose. Unlike other home
loans, however, homeowners make no interest or principal payments
during the life of loan. The interest is added to the principal,
which is why reverse mortgages are often called "rising debt" loans.
Unless you opt for a fixed-term loan, the loan only becomes due
when you die, sell your home to move, or otherwise leave your home
for more than 12 months—for instance, if a health issue requires
you to enter a nursing home.
If any of those
events occur, you or your heirs must repay the loan, including compounded
interest, in full. Normally, that means the house must be sold,
and the loan will be paid back from the proceeds of the sale. Because
interest will have been accruing during the life of the loan, you
will likely owe more than you borrowed—and if home values have fallen
or you live longer than expected, you may even owe more than your
house is worth. But since reverse mortgages are non-recourse loans,
the worst that will happen is that you or your heirs will receive
nothing from the sale of your house. The lenders cannot go after
any other assets that you or your heirs own.
What's The Catch?
of all, reverse mortgages may seem like "free money" but in fact,
they are quite expensive. Like traditional mortgages and home equity
loans, you will be charged interest, but interest rates for reverse
mortgages are generally higher than these other types of loans.
In addition, the fees and costs associated with reverse mortgages
are often significantly higher, too—sometimes as high as 4-8% of
the total loan amount. You can usually have these costs deducted
from the loan amount, instead of paying for them out of pocket,
but either way, you may end up with less cash than you expected.
Also, be aware
that reverse mortgages must be the primary mortgage on your home,
so if you have another mortgage already, you will have to borrow
enough to pay that off, too. That may also reduce the amount of
cash left for you to use.
are still the owner of your home and therefore responsible for property
taxes, insurance and home maintenance costs. If you are not able
to meet these obligations, the lender may have the right to foreclose
on your home, leaving you in the worst possible situation - no place
to live, and no more home equity to draw on.
Even if you
can keep up these payments, you may get to the point that you want
or need to move into a smaller home, or into an assisted living
facility, for reasons other than cost. At that point, your loan
will come due. With compounded interest due, you may be surprised
to find out how much you owe, which may restrict your future housing
Your Loan Wisely
into your home equity in your retirement years through a reverse
mortgage is a very serious decision. For many borrowers, choosing
a reverse mortgage is a last resort way to secure additional monthly
income in retirement. Whether it is the right decision for you may
ultimately depend on a number of factors—your health, your spouse's
health, other sources of income, the reason you're tapping your
home equity, when you do it, and how wisely you use your loan proceeds.
Unfortunately, some financial professionals who profit from selling
reverse mortgages aggressively urge homeowners to obtain them even
when they are not necessary—and to use the money to take dream vacations,
buy a second home, or invest in risky or illiquid investments. In
some cases, those who sell the mortgages may also profit from the
sale of the touted investment, giving them twice the incentive to
talk you into a loan you may not need.
When you obtain
a reverse mortgage, you normally have several options for receiving
the funds. You can take a lump sum payment, set up a line of credit
that you can draw on as needed, or set up regular periodic payments.
Depending on your lender, you may also be able to set up a combination
of these options. For example, you may decide to receive a portion
of the loan amount in monthly payments, and leave the remainder
as a line of credit that you can use for unexpected expenses.
choose, make sure you use your loan wisely. Just because you don't
have to pay back it back as long as you live in your home doesn't
mean you should treat it as "mad money." Reverse mortgages were
originally designed as a tool for allowing aging, low-income homeowners
to keep their homes by providing a source of additional monthly
income to meet expenses. Now, as lenders are realizing that more
and more Americans are retiring and sitting on large pools of home
equity, they are beginning to aggressively market reverse mortgages
to younger retirees as a way to finance a more extravagant retirement
lifestyle than they could otherwise afford. The trouble is, those
same homeowners may need their home equity some day for something
far more pressing than a vacation, only to find that it has already
If you are approached
by a financial professional to do a reverse mortgage in order to
fund a particular investment, keep in mind that all investments
carry risk and costs—and the higher the promised return, the higher
the risk. It's best to steer clear of investments that are risky
or underdiversifed—as well as those that make it expensive, if not
impossible, for you to access your money if unexpected expenses
When Considering Reverse Mortgages
All Your Options: Whether you need money to pay bills, or just
want some extra cash, a reverse mortgage should ideally be a last,
not a first, resort. Does it make more sense to sell your house—and
either downsize or rent while carefully investing the sale proceeds?
Take out a home equity loan or line of credit? Can you consolidate
credit card debts? Even if you are having trouble paying for your
taxes or for home maintenance, there may be local government assistance
programs that can help. Whatever your situation, ask your state
agency on aging about less risky, or lower cost, ways to address
the Risks, Costs and Fees: Just because you won't be making
any interest payments as long as you live in your home doesn't mean
the interest rate doesn't matter. If you do decide to move, for
whatever reason, you will have to pay back the loan plus compounded
interest. The same is true if you have to leave your home, for whatever
reason, for more than 12 months. Be sure to ask about all costs
and fees, including any prepayment penalties.
the Full Impact of Your Decision: While you typically do not
have to pay taxes on the proceeds of a reverse mortgage, the income
or lump sum you receive could impact your eligibility—or your spouse's
eligibility—for various state and federal benefits, including Medicaid.
In addition, depending on the laws of your state, a reverse mortgage
may not enjoy the same home-equity protection that would otherwise
apply if you have a health emergency and need to enter a nursing
home—and your spouse must liquidate assets to pay for that care.
Finally, a reverse mortgage is generally not the right choice for
those who want to leave their homes to their heirs.
* Get Independent
Advice: Reverse mortgages are such complicated transactions
that the federal government requires borrowers to meet with HUD-approved
counselors before obtaining a federally guaranteed loan. (Most loans
are federally guaranteed, but increasingly lenders are offering
proprietary loans that are not.) Make sure that any counselor recommended
by your lender is truly independent by asking whether he or she
receives any funding from the lender or the mortgage industry. Even
if you are applying for a loan that is not federally guaranteed,
it is a good idea to get advice from a trusted financial adviser
who has no interest in either the mortgage or any investment you
plan to make with the proceeds. In any event, before you agree to
a reverse mortgage, be sure to consult with legal and tax professionals
who know the consequences of reverse mortgages for residents of
your state and who are not connected in any other way to the transaction
or the lender.
* Be Skeptical
of Reverse Mortgages as Part of an Investment Strategy: If someone
urges you to obtain a reverse mortgage to make an investment or
purchase an insurance product or a security, such as a deferred
annuity, be very skeptical, particularly if they are promising high
returns. In essence, they are encouraging you to speculate with
your home equity, which you may need for more critical purposes
down the road. Also consider what will happen if the returns turn
out to be less than promised, or worse, you lose the principal.
If you cannot sustain that kind of low return or loss, you should
probably not be making the investment with your home equity.
* Ask the
Right Questions About the Proposed Investment Strategy: Reverse
mortgages are an extremely costly way to fund an investment. Before
you obtain a reverse mortgage for investment purposes, make sure
you understand both the terms of the loan AND the terms of the investment.
What fees must you pay, directly or indirectly, for the reverse
mortgage? What are the costs and fees associated with buying the
investment? With selling it? How easy will it be to get your money
out if you need it suddenly? Does the investment have a long surrender
or lock-up period? What is the potential downside? Is it marketed
and sold by the same person or entity that is offering the reverse
mortgage? How is the reverse mortgage broker compensated? How is
the seller of the investment compensated?
equity is often a homeowner's most valuable asset, and most precious
source of retirement security. Reverse mortgages can be a useful
tool for certain older Americans who might otherwise face losing
their homes. But for anyone else, they are an expensive option that
may prematurely deplete your home equity. Homeowners should consider
all the risks and explore all of their options before taking out
a reverse mortgage, and even then, should use the loan funds wisely.
* FINRA Alert:
Seniors Beware: What You Should Know
About Life Settlements
* FINRA Alert:
Betting the Ranch: Risking Your Home
to Buy Securities
* FINRA Alert:
Variable Annuities: Beyond the Hard
* FINRA Alert:
Equity-Indexed Annuities—A Complex
* U.S. Department
of Housing and Urban Development: Reverse
Mortgages for Seniors
Turn off the Tele and
Turn on the Returns!
subscribers chat with Blue Chip stock picker, Kelley Wright, managing
Quality Trends stock newsletter.
This is a
reprint of the online chat with Kelley Wright Chat of 3.19.08. Kelley’s
specialty is Blue Chips. His stock newsletter, IQTrends.com,
follows over 350 with specialty screens to determine buying and
Wright, Managing Editor, IQTrends.com stock newsletter
I read and
hear a lot about International stocks. What do you think about International
stocks offer regional and currency diversification. You can achieve
much of this diversification by investing in American companies
that are multi-nationals; meaning that they derive a fair percentage
of their revenues from overseas operations.
private client group use any international?
focus is the domestic market, however, as mentioned previously,
a large number of the companies we follow are multi-nationals.
are some internationally diversified companies that you track, and
of those, are any in your Timely Ten or highlighted as in buying
range right now?
The list is
quiet long, actually, but in the Timely Ten you will find: Rohm
and Haas (ROH); Mc Donald’s (MCD); General Electric (GE); Johnson
and Johnson (JNJ); PepsiCo (PEP) and Kimberly Clark (KMB).
is another corporation with a huge presence abroad, right? They
were first movers in mainland China and purchased one of the largest
banks in Turkey as well. What do you think of Citigroup right now.
It’s trading at multi-year lows…
Citi is indeed
multi-national. In fact, its credit card facility is the primary
lender in lesser-developed and emerging countries that do not have
mature credit and banking markets. Citi is in a bit of a bind right
now due to its indiscretions in the subprime mortgage and derivative
markets. The new CEO is a real smart guy and given some time, Citi
will be okay. It’s probably a little too early to jump in yet, however.
If you want to make a bet on the financials, look at BankAmerica
We hear such
gloom and doom that one wonders if it’s best to stay in cash. But
then our dollar is so weak, you wonder if that’s good…
Note: As of January 2008, stocks had returned 12.4% for the last
25 years, including a lot of down cycles, Black Monday 1987 and
the 2000-2002 recession.
media is in the business of selling advertising. To do that they
have to reach eyeballs and nothing grabs attention like gloom and
doom. Forget the noise and concentrate on what you can control,
primarily what goes into your portfolio. Remember, the key is to
focus on the market of stocks, not the stock market. Buy good companies
with great track records of earnings and dividends when they offer
historic good value and you will be fine. Natalie, if you still
have the link to the Mid-February Investment Outlook, it deals with
Note: Check out, "Enlightened
Investors, Not Market Timers, Crystal Ball Readers and Chart Junkies,
Earn Great Gains," by Kelley Wright, in the March 2008
Stearns portend a possible banking crisis?
in my opinion, is a case study in hubris. Hopefully BSC is an isolated
incident. If so, that might just be the bottom on financials.
Note: there have been reports from senior officials that regional
banks, especially those concentrated in the regions most affected
by subprime – where there are the highest concentrations of subprime
exposure – may be vulnerable to failure, but the word from the officials
as yet has not extended beyond that in any testimonies that I’ve
read. What have you heard, Kelley?
for regional banks isn’t so much that they will have write-downs
(regional banks focus on loan origination, packaging those loans
and selling them to the mortgage backed bond market, which replenishes
their capital and allows them to originate more loans) but the loss
of income from loan origination fees. This is to say that their
earnings engine is taking a significant hit. For those banks that
do carry and service their own loans, if those loans head south
then they may not have sufficient reserves to remain solvent. In
the regional bank space we like West America Bancorp (WABC), Associated
BankCorp (ASBC), TCF Financial (TCB), First Midwest Bank (FMBI),
BB&T Corp (BBT), Bancorpsouth (BXS), Susquehana Bank (SUSQ)
and M&T Bank (MTB).
Sachs a buy to hold, now?
We don’t follow
Goldman. As for the other brokers they still have some problems
and there may be a bank or two that will have to be rescued. The
bogeyman hiding in the closet is derivatives.
Do you have
any names of banks that might be the most vulnerable?
heard anything about Washington Mutual in California?
needs some more cash and some time. The company has a terrific platform
and network and should be okay if they can get some more reserves.
and who is going to have problems with them and why…
is a pretty deep subject. How about I write something out for Natalie
regulatory bodies allow the hubris with BSC? Does this indicate
there may be more problems hiding in the bushes?
Note: My sources don’t think it was hubris that brought Bear Stearns
down. There were a lot of people who were excited about what sub
primes were doing to help more Americans own their own homes. There
was a lot of "financial innovation" going on, and the
one thing that was fueling the real problem is that the value of
real estate and homes was skyrocketing out of the affordable range
for most Americans, especially those areas where the highest concentration
of sub primes was the only thing allowing people to own. The media
fueled the idea that it was "now or never" for the possibility
of owning a home. This was a snowball effect. The sub primes worked
fine as the tool they were intended to be. It became a problem when
real estate values skyrocketed, and then flattened out and then
began heading beneath the value that some borrowers owed on their
new homes. Even Nobel Laureate winning economists, like Dr. Gary
Becker, were taken aback at the depth and breadth of the problems
with subprime. No one expected the real estate market to have such
a dramatic, rapid pullback.
BSC though, they continued to trade in sub primes and seemed semi-oblivious
to the weakness in that market.
Yeah. I’d call that other names than hubris… We’ve seen hedge fund
managers implode before. It’s usually panic. Double up to make up.
Over-exposure. The kinds of mistakes that even newbie investors
make, but on steroids…
Kelley; My definition
of hubris is believing that trees can grow to the sky and then some…
You’re kinder than I am. I’ve been trying to avoid the word stupidity.
It doesn’t take a rocket scientist to figure out that if real estate
increases on average 6.4% every year, you can’t have double-digit
Is it profits
now and no foresight? Kind of like the Bush Administration?
When home prices
exceed incomes by too far a margin, the fundamentals will eventually
be reasserted. All bull markets end with excesses; it’s just the
nature of the beast.
That’s why Kelley has been in business for decades. He produces
steady gains that are above the general gains in the marketplace,
with less volatility. The extra 1-2% gains that his portfolio produces
per year compounds at a beautiful rate. Kelley, do you have any
comments here to help us understand this better?
If you earn
2-3 percent after inflation and taxes your capital will compound
at an astounding rate.
What do you
mean "the bottom of the financials"? And what do you anticipate
for the market over all the rest of the year?
By the bottom,
I mean that the bulk of the bad news might be out, which the market
has probably discounted. Assuming there aren’t some problems with
derivatives crashing and burning we could see the end of selling
Do you think
technology stocks will continue strong? IBM, Cisco, Microsoft?
IBM has done
well and Cisco is experiencing a bit of a resurgence. Microsoft
is a whole other story, but I don’t think we will see a replay of
the boom cycle in the 90s with the technology sector.
chips look good to buy right now?
(BAC), Clorox (CLX), General Electric (GE), Johnson & Johnson
(JNJ), Kimberly-Clark (KMB), McDonald’s (MCD), Pepsico (PEP), Rohm
& Haas (ROH), Wal-Mart (WMT).
chips are overvalued and would be a good time to sell right now?
Are there any?
In the last
issue of Investment Quality Trends there were 70 companies,
almost 24% of our Select Blue Chip universe that were Overvalued;
far too many to list here. As you might guess the list spans across
many industries. The one sector that seems problematic to me though
is the Utilities, which look a little toppy in here.
at this time that an investment strategy is to stick with stocks
with strong fundamentals and not try to leverage (margin).
I usually avoid
margin as that sword cuts both ways.
What is your
strategy for your private clients right now? Are you buying? Selling?
I like big pharma.
I like Eaton Vance for when the market really turns. I like Pepsi,
McDonald’s, Johnson and Johnson, Clorox and Wal-Mart. Think about
stuff that consumers will buy regardless of the economy. Gannett
(GCI) is kind of interesting, although media stocks have been hammered.
I don’t comprehend
the term "toppy" and "margin avoidance" regarding
utility stocks. My FPL Group stock is ten dollars from its top 63/73.
Do I need to sell that, since the price FPL and others pay to generate
energy can’t be recouped from strapped households?
You need to
look at your cost basis. If the Undervalued area is still above
your basis, hold on. As for margin, I just don’t like it in general.
Note: You might find some information to help you determine your
buy/sell strategy in the two articles from February 2008 ezine –
Proof Your Portfolio"
Tips for Turbulent Times."
Are we headed
for a recession?
I think a recession
might actually be shorter and more shallow than is being reported.
I like the defensive stocks I mentioned because they all offer good
value right now. A defensive stock is a company that sells goods
or services that the average consumer will continue to buy regardless
of the economic situation.
biotechnology? People still have to take their medication right?
I love a company
called Sigma-Aldrich (SIAL). They make the chemical building blocks
for pharma and biotech. Another good specialty chemical company
is Rohm and Haas (ROH).
alternative energy? Why is it floundering?
be over-hyped, but I don’t want to go there. Look at United Technologies
(UTX). They are doing some cutting edge stuff in alternative energy.
Suntech Power Holdings go up and down, for example. Particularly
in growth stocks, I can’t tell when to sell, especially if I think
I am in early.
Note: Remember gang, that Kelley’s specialty is Blue chip companies.
There aren’t too many alternative energy companies, outside of GE,
that have been around long enough to meet Kelley’s criteria. Alternative
energy is still largely a growth industry.
We have a very
hard and fast sell discipline. When a company hits its historically
repetitive high-price/low-yield area, we are gone.
Do you think
it’s a good time to buy UTX now?
UTX is a Dow
stock that is doing some good work in the alternative energy field.
UTX is a component of our 2008 Lucky 13 and we think it is attractive
at current levels.
I’m in cash
right now, do you think I should jump in now, that the water’s fine,
in the stocks you mentioned, or tip toe in?
Buy shares of
companies that have long track records -- 25 years – of uninterrupted
dividends that are trading at low prices and high yields. When the
yield drops (from price appreciation) most of the reward has been
wrung out of the stock. That’s the time to sell and find another
How do your
subscribers know when to buy and sell?
We alert subscribers
that a stock has entered the Overvalued or Undervalued area. We
publish every 15 days.
egg! Does that mean IRA?
Nest egg is
any money you absolutely cannot put at risk of loss.
does a private client need to invest to have you manage the account?
account size is one million. I have been managing for 25 years.
My area of specialty is high-quality, dividend paying blue-chip
Note: So, for those of you who love T. Harv Eker and Peak Potentials,
you just had access to a millionaire money manager. You can really
now say that YOU have a millionaire mind!
is an experienced money manager, with an impressive track record,
who has been in this business for decades. He is a private money
manager, not an economist or policymaker.
stock newsletter Investment Quality Trends is currently performing
at the top all of his peers on Wall Street for the past 20 years,
in the top 10 of all-star performance, and #4 in risk-adjusted performance.
Kelley’s stock newsletter, IQTrends.com, is earning 12.5% in annualized
gains over the past 20 years, according to Hulbert’s Financial Digest,
compared to general stock market performance of 11.8% (as of January
2008). IQTrends.com also has lower risk and volatility than the
market average. To subscribe, go to IQTrends.com.
REMINDER: Please keep in mind that as an investment newsletter,
the staff at Investment Quality Trends are legally bound to only
answer questions of a general nature and are unable to provide specific
buy/sell recommendations or specific advice on an individual basis.
For those interested in obtaining more information on individual
management services in accordance with our approach, our sister
company, I.Q. Trends Private Client Asset Management, is a Registered
Investment Adviser with the U.S. Securities and Exchange Commission.
Among the platforms available through I.Q. Trends Private Client
are individual portfolio consultations and active account management.
For more information, please contact Mr. Michael Minney at (866)
927-5250. Disclosure documents are located at: http://www.iqtrendsprivateclient.com.
April 2008 is
the month of the annual Milken
Global conference. If you are a big investor, this is a
conference that is well worth spending the money on attending. You
can find a link to this conference at the calendar section of NataliePace.com.
articles of interest:
We Headed Into a Recession? Subscribers Chat with Global Strategist
Dr. Marc Miles.
By Natalie Pace.
Tips for Turbulent Times. by Natalie Pace.
You Should Rebalance Your Portfolio.
Olson, vice president, Schwab
Center for Financial Research
Olson, vice president, Schwab Center for Financial Research
your portfolio (buying or selling assets to restore your portfolio
to your original target allocation) is an important part of controlling
risk. It is one of those things that sounds logical, but in practice
can often feel counterintuitive because rebalancing requires you
to sell assets that are performing well and buy assets that are
currently out of favor. Try thinking of it this way: You're taking
profits from your winners and buying other assets likely poised
talking about rebalancing and its benefits, you need something to
rebalance. The initial step, as always, is picking a strategic asset
allocation plan appropriate for your risk profile, investment goals
and time horizon.
asset allocation and investment plan is only the first step of the
portfolio management process. A long-term successful strategy requires
important ongoing maintenance in order to achieve the desired results.
In the case of investing, rebalancing is a key form of maintenance.
Your Worst Nature
rising stock markets, people often take on more risk than they're
suited for. We saw this in the late '90s, when large numbers of
investors fell in love with technology stocks and didn't rebalance.
Many even added to their already overweighted technology positions
by buying more and more, assuming the stellar performance trend
would continue indefinitely. Even a broadly diversified hypothetical
portfolio of 60 percent stocks and 40 percent bonds grew to a much
riskier nearly 80 percent stock mix. When the market began a sharp
fall in 2000, people's investments were pounded -- more than they
likely expected and more than if they had rebalanced.
The same holds
true today with the strong performance of small-cap and international
stocks since 2002, outperforming bonds by more than 15 and 20 percentage
points annualized, respectively. Recent outsized investor flows
into these categories illustrate that many investors may have increased
their risk beyond what is appropriate for them today and may by
repeating mistakes of the past.
times people only realize they've taken on too much risk when they
experience the negative effects of that risk -- when the market
goes down. Then, they scramble to unload, and usually sell after
experiencing substantial declines in investment value. For those
who added to their stock positions during the rise, they've bought
high and sold low -- contrary to conventional wisdom. Without a
disciplined rebalancing plan, you're making the mistake of letting
the market and emotions dictate the risk level of your portfolio.
Value of Regular Rebalancing
plans and foundations that manage hundreds of millions of dollars
have learned over time the critical need for regular rebalancing.
Most have documented policies for when to rebalance and formal investment
committees that meet regularly to evaluate their portfolio's allocation.
This systematic review strategy is a smart way to control risk and
avoid poorly timed emotional decisions.
A regular rebalancing
plan helps to instill discipline in your investing process. To show
the value of this discipline, we looked at the risk and return of
annually rebalanced portfolios versus portfolios that were not rebalanced.
In most case, a rebalanced portfolio had lower risk and similar-to-slightly-higher
This lower risk
and higher return combination is optimal, and it's due to the contrarian
nature of rebalancing. When you rebalance, you sell some of the
asset classes that have performed well and move to asset classes
that haven't done so well -- in other words, you buy low and sell
There are some
tax-smart ways to approach rebalancing, like using a tax-deferred
account to avoid taxable gains from such sales. If that is not possible,
target any new saving for the asset category that has fallen behind.
Another option is to receive dividend and capital gain distributions
in cash and channel them toward underweight asset classes. These
strategies can help you get gradually back up to your target allocations
without incurring fees and taxes on the sales of your investments.
How often should
you rebalance? We recommend taking a look at your portfolio at minimum
once a year, and adjusting any asset class that's deviated from
its target by more than 5 percent. Depending on portfolio makeup
and market movement, you may want to evaluate more frequently and
combine with an evaluation of the quality of your individual investments.
Rebalancing is an art, rather than a science.
investing and market commentary, go to:
to RSS feeds for articles and podcasts, go to:
information provided here is for general informational purposes
only and should not be considered an individualized recommendation
or personalized investment advice or an offer or solicitation to
purchase or sell any particular security. It is not intended to
be a substitute for specific individualized tax, legal or investment
planning advice. The strategies mentioned may not be suitable for
everyone. Each investor needs to review investments and strategies
in light of his or her own particular situation. Where specific
advice is necessary or
Schwab recommends consultation with a qualified tax advisor, CPA
and/or attorney. Data contained here is obtained from what are considered
reliable sources. However, its accuracy, completeness or reliability
cannot be guaranteed.
is for educational purposes only and should not to be considered
investing or tax advice. Diversification
strategies do not assure a profit and do not protect against
losses in declining markets. Past results are not indicative of
Mood Swings: Capitalizing on Fear and Loathing on Wall Street.
my Hot News on Cool Stocks List.
Record of our Reporting
Hot News and Cooling Off lists below have a winning track record
Pace, founder and CEO, Women’s Investment Network, LLC Photo
by: Stacie Isabella Turk, Ribbonhead.com ©2008 Stylist: Arlene
and bull market years. 15 companies listed below have performed
well this volatile year, versus just five that went in the opposite
direction of the reporting. Even during the flat year of 2007, our
featured companies had outstanding performance between Oct. 2006
and June 2007! 4 out of 9 companies – almost half – doubled or more.
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.)
of 5 Company of the Year selections more than doubled. My
2003, 2004 and 2007 Companies of the Year have posted up to 9000%
gains (Taser), up to 690% gains (Opsware) and up to 215% gains (Suntech
Power Holdings), respectively. MySpace, my 2006 Company of
the Year, has been a large part of News Corp’s success with shareholders.
Only OSI Pharmaceuticals, my 2005 Company of the Year, has
lost money. So three out of five are superperformers, one
is performing well above the market and one is down. That’s the
kind of record that puts you on top on Wall Street. (I launched
my first publication on 11.15.02, and featured the first Company
of the Year on 1.1.03.)
the market performance of the companies that are featured in my
Hot News on Cool Stocks list has kept me at the top of over 830
A-list pundits on TipsTraders.com.
I’ve repeatedly occupied the #1 position. TipsTraders.com listed
me as a Highly Recommended Stock Picker, in 2006 and 2007. Some
of our best picks include: Bioteq Environmental (BQE) +144%, Blockbuster
Video (BBI) +82.5%, Genentech (DNA) +415%, Google (GOOG) +545%,
Las Vegas Sands (LVS) +139%, LifeCell (LIFC) +180%, Macerich (MAC)
+150%, Opsware (OPSW) +690%, Rio Tinto (RTP) +145%, Sohu (SOHU)
+150%, Suntech Power Holdings (STP) +107%, Taser (TASR) up to 9000%
gains and World Water & Solar (WWAT) +181%.
Stock Market Performance
, 1-year & 3 mo.
+14% & -1% & -6%
+ 2% & -6% & -12%
+ 5% & -6% & --8%
, 1-year & 3 mo.
+8% & -6% & -10%
-3% & -10% & -17%
Flat & -10% & -12%
Trading Tips for Turbulent Time
issued a 911 UPDATE ON THE HOT NEWS ON COOL STOCKS LIST on March
11, 2008, the morning after the markets dropped to their lowest
point in years. This update is still available online at the Sharing
Wisdom bulletin board in the topic of the same name.
As we indicated
in the Hot News List this month, there is so much volatility in
the marketplace that we may be providing updates to the list between
the updates! So, even though most of the news on the individual
companies remained the same (outside of the financial sector, which
continues to be under extreme pressure daily), on March 11, 2008
the markets dropped to their lowest point since the beginning of
2006. Oil was over $100 per barrel and the financial markets were
March 2008 was
your chance to own companies like Google for prices that haven't
been seen for years. Imagine, if you bought Google for $411 on 3.11.08,
you were buying at a discount of 45% from the high of $747.
So, read the
Hot News updates on any of the companies listed below that you are
interested in adding to your portfolio. What this note is intended
to do is to alert you to the prices that these stocks are trading
at today, so that you can decide if they should jump into your Stock
Shopping Cart or stay on your Stock Shopping List. Remember that
in your long term portfolio, you’re looking for a multi-year low
price, so that you can hang onto the company for years to come (at
an ever-increasing profit). In your short term trading portfolio
(which should be a very small percent of your investment portfolio),
it is important to take profits early and often when the markets
are swinging 200 points in opposite directions day to day.
Some of the
companies listed on the Hot News list are more appropriate to add
to your long term portfolio, and others are more appropriate for
you if you’re interested in short term trading. How can you tell
the difference? If the company has a market capitalization that
is under $1 billion then it is a "small cap" company with
a higher risk of volatility in the share price.
In a market
that swings as wildly as this market has in the past few months,
that means that the share price is having dramatic fluctuations
(something options traders love). If you don’t want the stomach
ache or to monitor the position daily, and if you aren’t prepared
to take your profits early and often, it’s best to avoid individual
small cap companies. On the other hand, when you see companies that
are valued at over $50 billion trading at multi-year lows, like
Google, Johnson & Johnson and General Electric were in the first
part of March, that might be a good time to add them to your long
term portfolio. The markets can shake the price around, but over
the long term – many years -- if you can buy for a 40-50% discount,
that should pay off.
Note that the
general market trends continue to be down-trending with very high
So, why did
I think that share prices might go up again, when March 10th felt
so awful? Because the Feds were expected to come riding to the rescue
again with another dramatic rate slash. According to a report from
Reuters on March 11, 2008, Goldman Sachs analysts were expecting
the Fed Fund rate to fall to two by April. As you can see, the rate
was slashed as they predicted and currently stands at 2 ¼ percent.
There has been a very high correlation between these rate slashes
and the markets getting stronger again.
note that some of our top performers are on the Cooling Off list.
If you don't know options trading, you should consider coming to
my May Retreat. This is where most of the money is being made in
today's marketplace -- in puts. And because the downtrend has been
so strong and dramatic, you can make quite a lot in a short period
of time, even buying into options that don't expire until 2009.
Of course, the commitment you MUST make when trading options is
to keep the amount limited to a VERY small portion of your stock
portfolio and equal to your experience. In other words, if you have
never traded options before, do it in a fictitious portfolio for
a year before putting your hard-earned cash on the line. And, because
the market mood swings are daily, you have to commit to a daily
awareness of whether your puts and calls are "in the money."
very high risk and are only for the experienced trader. AND YOU
SHOULD NEVER BE TRADING YOUR NEST EGG (not in options or individual
stocks). Taking a long term view and letting the magic of compounding
and religious investing each month (where you participate in various
buy and sell moments) really does work over time. The average gains
for the last 25 years were still 12.4% as of January 2008, and that
includes 9.11.01, the Asian Crash of 1997, Black Monday 1987...
To learn "Trading
Tips for Turbulent Times" and how to "Recession-Proof
Your Portfolio," read the articles in the February
1, 2008 ezine, which is archived at NataliePace.com in the online
Natalie, how does one watch gold prices online? I have a few American
Eagles and wonder whether I should sell them (now that gold is supposed
to be record high) and transfer to some of the undervalued stock
such as Google and Microsoft? What do you think? Where would be
the best place, in your estimation, to cash out of gold? Signed
– Gold Bug
Dear Gold Bug,
is the most important part of any portfolio, second only to rebalancing.
You are right to think that you should take profits on any industry
that is trading near its high and buy back into undervalued assets
in another industry. Always make sure that you are doing this according
to that carefully laid out plan of diversification, however, so
that you are never over-extended in any one asset class. For instance,
if you’re 50 and you already have 50% or more of your assets in
stocks, then it might be more appropriate to take some gold profits
and buy some Treasury bills or international bonds. Certainly, if
you don’t have any large cap stocks, and Google, Microsoft, General
Electric, and more are trading at multi-year lows, that should be
stocks, remember that you must keep a percent equal to your age
safe — i.e. NOT in the stock market. In bear market years,
such as we are experiencing currently, many professionals overweight
to liquidity. Do not be in a hurry to buy anything when cash
is king. Cash will afford you the option to buy even lower
next year on many different assets, especially if we are close to
or entering a recession.
As for the exact
point that is the highest for gold prices, no one has a crystal
ball. There is a big difference between all and nothing, however.
If you’re happy with the price you’re receiving and feel that money
can be redeployed elsewhere to mark up gains again, that’s as great
as it gets. I’ve listed the annual gains of various assets directly
below. Anytime you perform above the general marketplace, you are
assuring that your wealth increases more robustly than your peers,
and that is a great, steady, calm, easy way to increase your prosperity
and abundance. Trying to "get rich quick" or wait too
long for the top price is often a money-losing proposition. In volatile
markets like today, many professionals take profits early and often
(which is one of the main reasons we are experiencing such dramatic
Annual Gains 1968-2007
Small Cap Stocks
Large Cap Stocks
and Realtor.org © 2008
You can probably
find a site that tracks gold prices by "Googling" gold
prices! Good luck!
below are links to two interviews that Natalie did with gold specialist,
CEO and Chairman Rob McEwen (U.S. Gold). Rob has been in the gold
industry for two decades, and he shares his wisdom candidly in these
interviews. He notes that gold prices are tied to consumer confidence
in the financial markets. When people have less faith in banks,
they move to gold. If the financial sector continues to experience
so many problems, then the interest in gold could continue to increase,
even if it seems high right now. There are a lot of if’s in that
on a Gold Mine. by Natalie Pace. Exclusive Q&A with
Celebrated (Former) Goldcorp CEO, Rob McEwen. Vol. 3, issue
Of Wisdom (320 sec.) Gold industry veteran Rob McEwan
on investing and exploring. 2006-08-22 on the Forbes.com Video Network
(If you have trouble finding the Forbes.com VN interview, just go
to Forbes.com, enter Natalie Pace in the search box, and you’ll
see the interview listed there.)
Chairman Ben S. Bernanke, speaking on February 27, 2008 in his Semiannual
Monetary Policy Report to the Committee on Financial Services, U.S.
House of Representatives:
1. The recently
enacted fiscal stimulus package should encourage Americans to spend
during the second half of 2008 and the first part of 2009.
outside of the financial sector, is in good financial condition,
with strong profits, liquid balance sheets, and corporate leverage
near historical lows.
3. Real GDP
is forecasted to grow a dismal 1.3 percent to 2.0 percent in 2008.
If this works out as planned, the United States will avoid a recession
in 2008. As you can see from the aggressive rate cutting that the
Feds have been doing since September of 2007, the Feds are bending
over backwards to ensure that candidates have a reasonably decent
economy for the 2008 election cycle.
4. The housing
and financial markets are not expected to recover until 2010. These
sectors will likely continue to experience weakness in 2008 and
price inflation has spiked, largely on the price of oil. Food prices
are also significantly higher, and the dollar has declined. Ouch
for the average American’s wallet! Expect to see this play out as
reduced consumer spending on discretionary items.
You can read
this report firsthand at Federalreserve.gov.
Bureau of Economic Analysis released its final report on the 4th
quarter GDP growth on March 27th. The numbers came in
at .6% -- a screeching halt from the robust 4.9% GDP growth in the
3rd quarter of 2007. The next report – advance estimates
for the 1st quarter 2008 GDP growth – will be released
on April 30, 2008. This is a report that will be widely watched
by institutional investors, so expect April 30th to be
another wild ride in the markets – up if the numbers are more robust
than anticipated (not expected), down, if the numbers are as anemic
as the 4th quarter of 2007 was.
wild mood swings are almost directly correlated with headlines –
up when Federal Reserve Board Chairman Ben Bernanke saves the day
with another interest rate cut, crashing down whenever the reality
of the depth and breadth of the real estate crunch hurts another
fundamental measurement (like GDP growth). In short, I wouldn’t
expect great news on April 30th. However, remember that
if you’re capitalizing on the volatility in the markets, bad news
one day usually means a rate cut the next day (and yet another rally).
This month, the Federal Open Market Committee’s 2-day meeting begins
the day before the GDP numbers are released, on April 29th,
so be careful getting too gleeful about a Fed rate cut if they choose
to take preemptive action on the GDP growth numbers. Anticipate
that April 30th could feature a different headline about the economy’s
dangerous descent into negative growth (and a recession), unless
a miracle happens and the economy performed better in the first
quarter of 2008 than it appeared to have.
For more BEA
release dates, go to the BEA.gov
website and be sure to visit the NataliePace.com calendar section
Open Market Committee and Monetary Policy
Federal Open Market Committee has dropped the Fed Fund Rate each
of the last five sessions. The Fed funds rate currently stands at
two and one-quarter percent. Expect the Federal Reserve Open Market
Committee to continue to ease investor worries, while monitoring
inflation. The prevailing sentiment is still weak growth, a continued
housing slump, more subprime foreclosures, a weak dollar, moderate
consumer spending and rising unemployment.
In your nest egg, take a long term view and make sure that your
assets are properly allocated. Keep a percentage equal to your age
+ 10-20% safe, i.e. not invested in the stock market (which means
NOT invested in mutual funds, ETFs or bond funds). Safer investments
include bonds, Treasury Bills, money markets, certificates of deposits,
etc. FYI: Modern portfolio theory recommends that you always keep
a percent equal to your age safe. Adding 10-20% is called overweighting
into the safe categories, which is a good idea in turbulent, down-trending
Marc Miles, global strategist, is correct in his forecasts,
the bottom of the market might occur between May and July of 2008.
For more of Dr. Miles’ observations, be sure to read the transcript
of his online chat in the March 2008 NataliePace.com ezine.
OPPORTUNITES AND INFORMATION:
Information: Interested in reading the press
release of the March 18, 2008 FOMC meeting for yourself?
You can. The official Federal
Reserve document is available online. Click on FOMC,
or go to FederalReserve.gov,
to read! According to the press release." Recent
information indicates that the outlook for economic activity
has weakened further. Growth in consumer spending has slowed
and labor markets have softened. Financial markets remain under
considerable stress, and the tightening of credit conditions
and the deepening of the housing contraction are likely to weigh
on economic growth over the next few quarters."
FOMC meeting schedule for the 2008 calendar is: 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 2008 is an
indicator of the concern in the economy at this juncture.
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, life coaches, economists, respected money gurus,
real estate veterans and CEOs! Be sure to check out the dates
of the mid-month Hot News on Cool Stocks Update and the publication
date of our next 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. Don’t miss the
Milken Global Conference, the biggest gathering of billionaires,
CEOs, Nobel Laureates, policymakers and money managers of the
is your favorite Presidential candidate? What will be the top
performing asset class in 2008? Make your opinion count with
our online surveys.
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
Clean Energy ETF (PBW)
Water & Solar
on COOL STOCKS LIST
since original feature
Carts and Sports Cars," in vol. 4, iss. 6. Looking
to add back to the Hot News List at a better price point.
The CEO and President Alan Gotcher agreed to resign as chief
executive on 2.27.08. He was immediately replaced by interim
CEO Terry Copeland. We asked the company to provide additional
information as to Dr. Gotcher’s abrupt departure and received
no return call or email. Without this news, a 25% pullback
on this stock (which is what has occurred since the beginning
of the year, when the stock was trading at $3.54), would have
been enough to to put Altair back on the Hot list. Altair
Nanotechnology is the bell of the ball with regard to the
batteries being used in electric cars, like Phoenix Motor
Cars Sports Utility Truck. The company also received a $2.5
million order from the U.S. Navy (on 1.30.08). The CEO’s departure
could be a bigger problem waiting to be revealed. It could
also be a major step in accelerating growth for the company.
At any rate, the products could be strong enough to withstand
the issues of the departure if they are negative and glisten
in the summer sun, if a new CEO is what’s needed to really
capitalize on Altair’s excellent product line.
year-end results on 3.12.08: For the year ended December 31,
2007, the company reported revenues of $9.11 million as compared
with $4.32 million for 2006. The net loss for 2007 was $31.47
million, or 45 cents per share, compared with a net loss of
$17.20 million, or 29 cents per share, for the prior year
period. At year's end, cash totaled $50.15 million. $6.78
million in one-time operating expenses was taken, related
to a recently discovered module configuration problem that
creates a potential overheating risk in first-generation (Gen
1) battery packs sold to Phoenix Motor Cars, Inc. (Phoenix),
an electric vehicle manufacturer.
out of Germany
Power article in
vol. 4, issue 11. Has multiple sales agreements with Suntech
Power Holdings to utilize STP panels in their global systems
integration. Also, since this is a German company that is
trading near it’s 52-week low, it may have a different outlook
than American companies that are trading at a high.
Corp (EMCORE) is a provider of compound semiconductor-based
components and subsystems for the broadband, fiber optic,
satellite and terrestrial solar power markets. The Company
operates in two segments: Fiber Optics and Photovoltaics.
Missed earnings estimates on 12.18.07. This $628 million dollar
company had $178 million in sales and $60 million in losses
last year. Growth in sales year over year is 20%. Current
backlog for their CPV receivers is $86 million, and on February
27, 2008, the company announced $39 million in additional
orders from Green and Gold Energy.
Announced 4Q results on Jan. 31,
2008. See my original article, "Google:
the People’s IPO,"
in NataliePace.com archived ezine, vol. 1, iss. 48. Owns YouTube.com,
one of the most popular sites on the web (which got hit with
a billion dollar lawsuit from Viacom on 3.13.07 that is still
pending). Dr. Eric Schmidt was one of our Executives
of the Year in 2007. Read the article in vol. 4, iss.
1. The growth continues to be amazing, and the share price
continues to be amazingly volatile! The savvy day-trader would
buy on disappointment and sell on hot headlines. The long-term
investor would buy at the 52-week low and hold to will to
the kids. (Notice that Google is FINALLY highlighted and is
considered to FINALLY be a good buy right now.)
Google has a major emphasis on
renewable energy and reducing greenhouse gases. Check out
ClimateSaversComputing.org and Google’s renewable energy page.
Google is doing R&D to build 1 gigawatt of renewable energy
power, which would be sufficient to power the city of San
Cash - As of December 31, 2007,
cash, cash equivalents, and marketable securities were $14.2
billion. 2007 revenues: $16.6 billion, compared to $10.6 billion
in 2006. Net income: $4.2 billion, compared to $3.1 billion
Johnson & Johnson
Read the article, "Bionic
in vol. 4, iss. 7. Johnson & Johnson is a mega-cap corporation
with many products, and a small presence in the hip resurfacing
arena. Growth is 16% annually. Stable, dividend-paying Blue
JNJ is listed on the Dow Jones
Sustainability World Index, the FTSE4Good Index and Our Company
has an "AAA" sustainability rating from Innovest
Strategic Advisors. Awards include: Green Power Partner of
the Year (2005), the EPA’s Climate Protection Award (2005).
9 JNJ companies based in CA received the Governor's Environmental
and Economic Leadership Award in 2005 for sustainable practices,
in particular for their renewable energy efforts and greenhouse
5, issue 4, vol.
4, issue 4 and vol.
3, issue 10, and
2, iss. 12 for articles
on solar energy and LDK Solar. This is a profitable solar
wafer manufacturing company, based out of China, whose customers
include Suntech Power Holdings and more. The international
management team is very strong, as are sales, growth and profitability.
Waiting for the announcement of full-year earnings. Tripled
top line growth over last year already, and still waiting
for the 4th quarter results.
World’s largest software company.
$58 billion in revenue and $17 billion in income last year.
Has $23 billion in cash and short-term investments, according
to the 2nd quarter 2008 earnings report.
RISK: HIGH (U.S.)
2005 Company of the Year
Announced earnings on February
21, 2008. NataliePace.com’s 2005
Company of the Year.
Read vol. 1, issue 56. Tarceva is the genetic based "cancer
pill," and sales have been exploding. OSIP is a partner
of Genentech (DNA) and Roche. OSIP is now testing Tarceva
as an application for other cancers, including lung cancer.
OSIP turned a profit in 2007 and
had a forward P/E of 17.10, which is pretty good for a company
with such growth.
Total worldwide net sales of Tarceva(R)
(erlotinib) for 2007, as reported by the Company's collaborators
for Tarceva, Genentech, Inc. and Roche, were approximately
$886 million representing a 36% growth in global sales compared
to the same period last year. For the three months ended December
31, 2007 worldwide Tarceva net sales were approximately $250
million representing a 32% increase over the same period last
year. The Company reported total revenues from continuing
operations of $341 million for 2007 compared to revenues of
$241 million for 2006, an increase of 41%. The Company's net
income, including results from discontinued operations, was
$66.3 million (or $1.11 per share) for 2007, compared with
a net loss of $582.2 million (or $10.10 loss per share) for
The risk to this stock is that
the majority of the revenues are currently attached to one
drug – Tarceva. In the event of a serious problem with the
drug, the company would likely be doomed.
Wilderhill Clean Energy Portfolio
Traded Fund in the green, clean, renewable energy space.
VERY HIGH RISK
Read the article, "Golf
Carts and Sports Cars,"
from vol. 4, iss. 6. Reported 3Q 2007 results on November
15, 2007. Who are SatCon’s customers? On June 27, 2007, SatCon
announced that its PowerGate(R) commercial grade inverters
had been installed as an integral part of Google's corporate
headquarters in Mountain View, California. The 1.6MW system
is the largest commercial photovoltaic system in the United
States. Should be announcing 4th quarter and full-year
earnings soon. Company has not issued press release giving
the date yet. Last year’s was filed on April 2, 2007.
Elie Nasr has joined SatCon as
Vice President of Business Development for its SatCon Power
Systems division on February 19, 2008. Mr. Nasr has relationships
from his past jobs at Siemens and General Electric, to name
two. Appears to be a great hire. Electrical engineering degree,
with a MBA in finance.
Secured $10 million credit line
at Silicon Valley Bank. "This line of credit, along with our
recent infusion of capital from Rockport Capital Partners
and NGP Energy Technology Partners, allows us to focus on
the growth of the business," said David Eisenhaure, CEO
5, issue 4, vol.
4, issue 4 and vol.
3, issue 10, and
2, issue 12 for articles
on solar energy and Trina Solar. This is a profitable solar
energy company, based out of China. The international management
team is very strong, as are sales, growth and profitability.
Waiting for the announcement of full-year earnings.
is an exploration company, not a mining company, meaning that
if they strike gold, the stock should spike and if they don’t,
you will lose your investment. Very risky. However, with rising
inflation and weakening consumer confidence, investors could
turn to gold without really looking. That could mean that
U.S. Gold enjoys a push-up on the general love lust of gold,
even while the company keeps prospecting to determine if they
are actually sitting on a gold mine. Very risky play, with
potentially high rewards.
to an exploration update of March 26, 2008: US Gold's properties
in Nevada remain buried in snow preventing cost effective
access for drilling, however work continues on completing
new resource estimates for Tonkin, Gold Bar and Limo, which
are due to be published during the second and third quarters
of 2008. US Gold's Nevada exploration program will resume
in late spring.
exploration in Mexico continues to deliver promising results
from around the Magistral Mine, the Palmarito project, and
the Shakira project.
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 is
one of 71 new appointments announced by Her Excellency, the
Right Honorable Michaelle Jean, Governor General of Canada.
U.S. Gold was added to the Russell 3000 on July 3, 2007.
Capital is holding their Annual Reception on March 4, 2008.
Check the calendar section at NataliePace.com for a link and
4, issue 3, "Money
Grows on WisdomTrees,"
and vol. 5, iss. 2, "International
Money Grows on WisdomTrees."
This is a well-managed company that creates "smart"
ETFs, which update holdings regularly, and trade on earnings
instead of market cap. Trading off the boards with a former
SEC chairman as one of the senior advisors (high risk investment,
but a lot more credible than most OTCBB companies). The company
has had to delay its plans to re-list on NASDAQ, due to current
"market conditions and a $5 minimum stock price requirement."
According to a press release issued on Nov. 12, 2007, the
Company does not expect to re-list until the second quarter
of 2008, at the earliest. Don’t underestimate this company.
CEO Jono Steinberg is married to Maria Bartiromo and both
have strong relationships on Wall Street, as do Chairman Michael
Steinhardt and Senior Investment Strategy Advisor Professor
Jeremy J. Siegel, the famous Wizard of Wharton. Also, just
signed deals with Mellon and Dreyfus to create ETFs, and filed
an intention to create more international currency ETFs and
the first India focused ETF.
has also expanded its sales and operations functions to rapidly
commercialize into the $3 trillion retirement market, by launching
the WisdomTree 401(k) platform -- the first open-architecture
platform to combine ETFs and no-load mutual funds.
Deleted: Take your profits early and often!
Read the article, "Green
San Jose Company,"
in vol. 4, iss. 8. In August 2007, Governor Schwarzenegger
(CA) took Secretary General of the U.N. Ban Ki-Moon on a tour
of Echelon’s HQ in Silicon Valley the week before ELON confirmed
an order from Russia valued at $35 million. On July 10, 2007,
Echelon signed a contract with McDonald's to help it reduce
energy costs and improve efficiency. For the quarter ended
December 31, 2007, revenues were $46.9 million compared to
revenue of $13.9 million for the same period in 2006. For
the year ended December 31, 2007 revenues were $137.6 million
compared to revenues of $57.3 million for the year prior.
The GAAP net loss for the year was $14.5 million, or $0.36
cents per share compared to a net loss of $24.4 million, or
$0.62 cents per share for the prior year.
See the article, "Green
San Jose Company,"
in vol. 4, iss. 8. Since 2004, GE has achieved a 500 percent
increase in wind turbine production, and its wind business
revenues exceeded $4.5 billion in 2007. According to the American
Wind Energy Association, over the past two years, GE has supplied
wind turbines representing nearly half of the new wind capacity
across the United States. GE's 1.5-megawatt wind turbine is
among the most widely used machines in the global wind industry,
with more than 8,000 installed around the world.
With a market value of $331 billion,
a dividend yield of 3.67% and worldwide revenues of $173 billion,
General Electric is definitely a giant, Jabba the Hutt type
stabilizing force for your long-term "Buy My Own Island"
Fund. Big companies like GE trade within a narrow range, but
the stability they add to the portfolio, in addition to the
dividends they pay, can be delightful.
We’ve taken it off of the Hot News
list because in a volatile, down-trending market, it pays
to take profits early and often. If you bought GE for your
nest egg, then the $31.70 price is much lower than the 52-week
high and is a decent buy-and-hold acquisition.
SunTech Holdings Co. Ltd (Green
& Chinese Co. ADR)
2007 Company of the Year
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,
2, issue 12 for
our articles 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. Dr. Shi was named one of TIME magazine's 2007
"Heroes of the Environment," on October 22, 2007, and the
share price has been a rocket ship ever since. 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. Dr. Shi is one of our
of the Year in 2007. Read the article in vol. 4, iss.
1. In June 2007, Suntech signed a 10 year supply deal for
polysilicon from Hawaii's Hoku Scientific. Institutional holdings
of STP increased significantly on November 22, 2007. Announced
earnings on 2.20.08.
Dr. Zhengrong Shi, chairman and
CEO of Suntech: "Through the long term supply of silicon at
prices well below today's spot-market rates, Hoku will play
a key role in our plan to produce grid parity solar products.
Hoku's polysilicon supply will also enable Suntech to continuously
expand its production capacity and deliver the means to generate
clean, renewable energy to a growing proportion of the world's
World Water & Solar
VERY HIGH RISK
Trading off the boards
See vol. 4, iss. 4 for the article
Hits the Mainstream,
and vol. 3, issue 10, and vol. 2, iss. 12 for articles on
solar energy. This is a very high-risk company in the solar-energy/water
purification sector. CEO Quentin Kelly was invited by Governor
Schwarzenegger to join him on the Governor’s tour of Canada,
during the California-Canada Conference on Clean Technologies
in Vancouver in 2007. Announced on August 9, 2007 that they
would be delivering 10 Mobile MaxPure units for use in Darfur,
New CEO was named on 3.21.08. Chairman
Quentin Kelly continues as non-executive Board chairman. Dr.
Frank W. Smith has been promoted from COO to Chief Executive
Officer and elected to the Board of Directors of WorldWater
& Solar Technologies Corp. Dr. Smith served as Vice President
of Strategy and Business Development at EMCORE Corporation.
Annual results on 3.18.08: For
the twelve months ended December 31, 2007, WorldWater reported
revenue of $18.5 million, compared with $17.3 million in 2006.
Gross profit for the year was $1.7 million, versus $2.7 million
in 2006. The net loss attributable to common shareholders
for 2007 was $14.4 million, or $(0.09) per share, compared
to a loss of $15.1 million, or $(0.11) per share, last year.
In total, the Company installed 2.6 megawatts in 2007, versus
2.4 megawatts in 2006 and 275 kilowatts in 2005.
"2007 was, as expected, a pivotal
year for WorldWater & Solar Technologies," said Chairman
Quentin T. Kelly. "We recorded our highest revenue ever -
$18.5 million - and won some very large contracts, including
innovative solar installations for the Denver International
Airport and Fresno Yosemite Airport. In addition, we expanded
our offices, hired critical staff, and signed letters of intent
for a number of next-generation solar farms in Europe.
Read the article "Clean
Energy Rolls Out Worldwide,"
in vol. 4, iss. 12. Annual report was issued on 12.7.07. $151
million in annual sales in 2007, versus $92 million in 2006.
This is a huge growth market. They manufacture carbon fibers
which are used in a range of commercial products, including
wind turbines. This is A-plus interest. Waiting for the price
point to settle in.
Some of these
are great companies that we’re thinking of adding to the Hot List
and some are stinkers we’re thinking of adding to the Cooling Off
List. Read carefully to identify which is which!
right now most of our favorite companies are on the Watch List,
anticipating continued weakening of the stock market, and share
was removed on 3.1.08
Motors was deleted on 3.1.08
Conergy, Echelon, Emcore, General Electric, Powershares Wilderhill
Clean Energy Portfolio, Suntech Power Holdings, Satcon, Trina Solar,
World Water and Solar, Wisdom Tree and Zoltec were all moved back
on the Hot News List.
Price when featured
Gains since original feature
Read the article "Clean
Energy Rolls Out Worldwide," in vol. 4, iss.
12. Competitors include GE (NYSE: GE), Siemens (NYSE: SI),
Rockwell (NYSE: ROK), and DRS (NYSE: DRS). High Temperature
Superconductor (HTS) wire is able to transmit 150 times more
energy than a copper wire of the same dimensions. This enables
electric utilities to replace multiple conventional copper
cables with one HTS-powered cable, leaving valuable underground
real estate available for other uses – including future power
upgrades. The worldwide cable market represents a multi-billion-dollar
annual opportunity, but their power converters are also in
the exploding marketplace of wind turbines and fuel cells.
American Superconductor’s backlog of orders exceeds $180 million,
with growth primarily driven by the wind energy market. AMSC
expects the Asia-Pacific marketplace to account for up to
50% of sales in fiscal year 2007. Looking to add back to the
Hot News List at a better price point.
See archived ezine Vol. 4, issue
2, for the feature article, "Apple
Earnings report: January 22, 2008 wasn’t exciting enough to
make the markets rally, even though Apple had record results,
largely because the forecast for future earnings was weaker
Google CEO Dr. Eric Schmidt is
on the Apple board of directors, as is Nobel Laureate winner,
Al Gore. Added Avon Chairman/CEO Andrea Jung to the board
on January 7, 2008. The craze over the iPhone, iPod and all
things Apple, and the clout 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,
even while the rest of the stock market is really in a downward
drag. Apple is a company you’re going to want to own – and
everyone wished they’d had the prescience to buy in in the
$80s in 2007. In 2008, you may get your wish.
"We're thrilled to report our best
quarter ever, with the highest revenue and earnings in Apple's
history," said Steve Jobs, Apple's CEO. "We have an incredibly
strong new product pipeline for 2008, starting with MacBook
Air, Mac Pro and iTunes Movie Rentals in the first two weeks."
With a weaker dollar and more hard
hits on the American wallet, more people may be tempted to
take the easy way out with regard to music and movies – illegal
downloads, which are still a huge problem in the industry.
Canadian Imperial Bank
Refer to the "Banking
on Iraqi Dinars" article in volume 5, issue 2
for details on CIBC’s appeal. CIBC, like all of the financial
services industry, will continue to see hard times into 2008.
This is a price that might be attractive for your long-term
portfolio. Don’t expect wild gains in the short term with
this company, and there could be more losses before you’ll
see the upside. Again, the price is attractive if you’re looking
at a 7-year plus horizon, not if you’re looking to post great
gains in the next 12 months.
Refer to the M&A
in volume 3, issue 6 for details on Citigroup’s appeal. Citigroup,
like all of the financial services industry, will continue
to see hard times into 2008. This is a price that might be
attractive for your long-term portfolio. Don’t expect wild
gains in the short term with this company, and there could
be more losses before you’ll see the upside. Again, the price
is attractive if you’re looking at a 7-year plus horizon,
not if you’re looking to post great gains in the next 12 months.
Citigroup announced on May 10,
2007, that Citigroup China would roll-out two new investment
products -- Structured Investment Accounts -- for the Chinese
consumer that would allow him/her to invest in equities or
currencies, with a principal protection feature. Just a few
years ago, all banks in China were state-owned enterprises.
Citigroup was the first mover in the Chinese consumer equity
marketplace. Purchased AkBank (in Turkey) 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 world’s third
largest bank by assets and the nation’s largest financial
institution. Citigroup acquired servicing rights for $45 billion
worth of loans formerly held in ACC’s Ameriquest company.
Terms of the deal were not disclosed. Citigroup announced
on November 3, 2007, that Charles Prince, Chairman and CEO,
will leave the company. Robert Rubin has been named Chairman
of the Board. Sir Win Bischoff has been named acting Chief
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. We’re keeping this on the list
because as investors rebalance and get spooked by the US markets,
their brokers may put them into international funds, like
EUROX. Will monitor closely over the next few weeks.
Announced earnings on 1.23.2008.
See the articles, "eBay’s
Skype Outpaces News Corp’s MySpace," in volume
3, issue 9, "Executives
of the Year" in January 2007, which featured
CEO Meg Whitman (vol. 4, iss. 1). Lots of management changes.
Skype has a new CEO effective February 25, 2008. John Silverman
(not related to the YouTube star, Sarah), the former CEO of
Shopping.com, will head up Skype as CEO. Skype has more than
276 million registered users around the world. In Q4 2007,
it posted total revenues of $115 million, an increase of 76
percent over the prior year, while delivering a fourth consecutive
quarter of segment profitability. Meg Whitman is retiring
on March 31, 2008, and will be replaced by John Donahoe. John
was previously President of eBay marketplaces, where he oversaw
strategic acquisitions of Shopping.com and StubHub. Revenues
and profits doubled while he was president of his division.
While eBay is not keeping this a secret, the news is certainly
not making headlines – yet. Let’s wait and see what happens
on March 31, 2008, when the woman who grew eBay into the powerhouse
it currently is steps down.
Reported 4Q earnings on Monday,
1.14.08. Great biotech company with a huge pipeline of DNA-based
medical treatments. Could ultimately put chemo out of business.
U.S. product sales of $8,540 million, a 19 percent increase
over U.S. product sales of $7,169 million in 2006. GAAP operating
revenues of $11,724 million. GAAP net income increase of 31
percent to $2,769 million from $2,113 million reported in
2006. "We are pleased with our strong financial performance
in 2007, which was our tenth consecutive year of double-digit
revenue growth," said Arthur D. Levinson, Ph.D., Genentech's
chairman and chief executive officer. In 2008, we will continue
to invest in the 20 new molecular entities in clinical development
and look forward to new data from a number of potentially
important line extensions, including Rituxan for multiple
sclerosis and lupus and Avastin in combination with Tarceva
for advanced non-small cell lung cancer."
Announced earnings Jan. 22,
Giants Tap a Small Hawaiian Company For Silicon,"
in the Oct. 2007 ezine, vol. 4, iss. 10. Contracted to build
a polysilicon facility in Idaho and supply Suntech, Sanyo
and Solar-Fabrik. Hoku Materials is builing a polysilicon
production facility capable of producing up to 2,500 metric
tons of polysilicon per year in Pocatello, Idaho. Hoku Materials
estimates the total cost to construct and equip the polysilicon
facility with an annual capacity of 2,500 metric tons will
be approximately $300 million and that the first delivery
will occur in 2009. HOKU announced on 2.25.08 that the company
is bringing in $25 million through the private placement and
issuance of 2,893,520 shares of common stock (appx. $8.64
share). $20 million of the placement is coming through a subsidiary
"This equity financing is a significant
step forward to obtain our larger debt financing for the construction
and procurement of our planned polysilicon plant in Pocatello,
Idaho, as we believe that the proceeds from this offering,
plus our other cash commitments to the construction and procurement
of the polysilicon plant, will satisfy the Merrill Lynch requirement
that we contribute up to $35 million in equity towards the
project prior to completing our debt financing," said Dustin
Shindo, chairman and CEO of Hoku Scientific. "We are especially
pleased that one of our key polysilicon customers, Suntech,
has made this investment in our company, as it is a sign of
their confidence in our business."
In June 2007, Suntech entered into
a supply agreement with Hoku Materials, Inc., a wholly owned
subsidiary of Hoku Scientific, to purchase up to $678 million
of polysilicon from Hoku Materials over a ten year period,
with the first shipment scheduled for delivery in 2009.
Announced 4Q earnings on 1.15.08.
in vol. 4, iss 2. Intel is beating Advanced Micro Devices
in products and price.
Intel is a great blue chip. However,
the chip business is highly competitive and the business spending
is expected to moderate during the next year. Additionally,
traditionally the 1st quarter is a lower performing
quarter than the 4th. Wait and see what happens
to the share price!
Green: Intel and Google launched
in 2007, with a goal of achieving a 50% power consumption
reduction by 2010. They have convinced all kinds of partner
to come on board, including competitors: Advanced Micro Devices
International Rectifier Corporation
is a designer, manufacturer and marketer of power management
product devices, which use power semiconductors. The Company's
products are used in a variety of end applications, including
computers, communications networking, consumer electronics,
energy-efficient appliances, lighting, satellites, launch
vehicles, aircraft and automotive diesel injection. The good
news is that the audit committee is doing it’s job. The bad
news is that means there will be some adjustments to prior
earnings reports and a late filing for the current report.
According to a Notification to File Late document which was
filed with the SEC on February 11, 2008, "the Audit Committee
of the Company’s Board of Directors has determined that the
Company’s financial statements for its fiscal quarters ended
September 30, 2003 through December 31, 2006 and for its fiscal
years ended June 30, 2004 through June 30, 2006 should not
be relied upon." Uh oh. Looks like the problems are mostly
centered in a Japan subsidiary.
4Q earnings conference call
on 1.24.08 at 5:30 p.m. ET. MEMC was added to the S&P
500 in August of 2007. 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. Volatile marketplace. Great company. Looking
to reposition on the Hot News list at a more attractive price.
With more silicon manufacturing companies coming online this
year and next, MEMC will likely have downward pressure on
its ability to charge a premium for silicon. Look for this
to start impacting the top line and profit margins in the
quarters to come.
Silicon Valley, CA
Netgear announced earnings on February
13, 2008. Net income came in below 2006, $12.5 million in
2007 versus $13.4 million in 2006. With the crushing impactthat
the subprime crisis has had on the American economy (and thus
the consumer’s buying power), I would be wary about Netgear’s
earnings reports in the coming quarters, since the company’s
many products are reliant upon the consumer electronics industry.
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 was 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. It’s a great
product that allows you to connect to Skype and call anyone
worldwide anywhere there is a WiFi signal.
Netgear’s products are amazing.
The Skype Wi-Fi phone may just be ramping up for sales. (I
love mine.) However, the 4th quarter results were
less than stellar in terms of growth, inventory turnover and
operating margins. CEO/Chairman Patrick Lo said that had a
lot to do with air freight charges. Waiting to see what the
next earnings report reveals in terms of trends.
Smith & Nephew
Read the article in vol.
4, issue 7. The company is based out of London, England,
and with a market cap of $10.57 billion is a good diversification
strategy for your portfolio. Additionally, SNN has a piece
of an exploding marketplace in the hip resurfacing business,
with the premiere product, called the BIRMINGHAM HIP* Resurfacing
System. Annual sales were up to $3.4 billion, as of the annual
report released on 2.7.08.
Withdrew 185 of its BIRMINGHAM
HIP* Resurfacing System implants following a packaging error
at a subcontractor on Aug. 16, 2007. Smith & Nephew's
investigation confirms that this problem is confined to a
small number of batches. A number of implants have already
been recovered in their packaging. The devices were distributed
to a number of countries, including the UK and the US. Proactive
notification is a good sign of the moral code of the executive
suite, but bad products can be Lawsuit City if they were implanted.
Sohu (Chinese Co. ADR)
See NataliePace.com ezines, vol.
3, issue 4 and
2, issue 9 for feature
articles on Sohu. Dr. Charles Zhang, the Chairman and
CEO of Sohu.com, is one of our CEOs
of the year in 2007.
Read the articles in vol. 4, iss. 1. You can watch a Q&A
with Dr. Charles Zhang in an exclusive interview I
did on the Forbes.com
Sohu was selected as the
official sponsor of Internet Content Service (ICS) for the
Beijing 2008 Olympic Games. Don’t get sucked into buying
at high P/Es in a declining world marketplace – even for excellent
companies, like Sohu. Full-year revenue was reported on 2.4.08.
GAAP net income = $34.9 million, up 35% over last year. Total
revenues were $188.9 million, up 41% over last year.
T. Rowe Price Em Eur & Mediterranean
4, issue 3 and
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! Upgraded to top Morningstar return rating in its
category on 7.27.07. Upgraded to Morningstar 5-star rating
on 8.12.07. (We first featured this rock star mutual fund
back in August of 2005!)
Read the article, "Golf
Carts and Sports Cars,"
from vol. 4, iss. 6. UQM Technologies, Inc. is a developer
and manufacturer of power dense, high efficiency electric
motors, generators and power electronic controllers for the
automotive, aerospace, medical, military and industrial markets.
A major emphasis of the Company is developing products for
the alternative energy technologies sector including propulsion
systems for electric, hybrid electric, plug-in hybrid electric
and fuel cell electric vehicles, under-the-hood power accessories
and other vehicle auxiliaries and distributed power generation
applications. On November 5, 2007, received a $1,046,500 cost-share
contract from the California Energy Commission's Public Interest
Energy Research Program and the U.S. Department of Energy's
National Renewable Energy Laboratory (NREL) to develop an
advanced grid-connect inverter under its Advanced Power Electronics
Interface (APEI) Initiative. UQM’s share was $439,000 (42%).
Announced 3Q earnings on 1.30.08:
Continuing operations for the third quarter resulted in a
loss of $1,322,849 or $0.05 per common share on total revenue
of $1,714,858 versus a loss from continuing operations of
$818,297 or $0.03 per common share on total revenue of $1,726,526
for the third quarter last year. 4th quarter and
full-year results should be reported in the coming month or
two. Based upon 3rd quarter’s performance, I wouldn’t
expect outstanding results.
Wisdom Tree Emerging Markets Hi-Yield
Read the article, "Banking
on Iraqi Dinars,"
from vol. 5, issue 2.
Wisdom Tree Emerging Markets ETF
Read the article, "Banking
on Iraqi Dinars,"
from vol. 5, issue 2.
Wisdom Tree International ETF
Read the article, "Banking
on Iraqi Dinars,"
from vol. 5, issue 2. Most holdings are in international finance,
including HSBC, Banco Santander, Australia, Argentina, Scotland
and Lloyds of London.
Energy Conversion Devices
Read the article "Clean
in vol. 4, iss. 12. According to MSN.com, ENER beat earnings
on 2.8.08, but warned that the earnings going forward would
be lower than expected. Revenues in the second quarter of
fiscal 2008 were $56.4 million, up 20 percent from first quarter
revenues of $47.0 million and up 146 percent from $22.9 million
in the second quarter of fiscal 2007. The solar business accounts
for 92% of sales. ECD reported a net loss for the quarter
of $5.4 million, or $0.14 per share, compared to a net loss
of $7.6 million, or $0.19 per share, in the first quarter
of fiscal 2008, and a net loss of $2.9 million, or $0.07 per
share, in the year-ago period. $2.5 million of the loss was
for restructuring, downsizing and management transition.
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.)
Companies (Cooling Off List):
Price when added to Cooling
information in vol.
4, issue 9 in the
REITs article. Boston Properties looked great prior to 2007.
With a pullback in profits and GDP growth, corporate spending
and hiring should abate. The office building REITs should
begin to come under pressure in 2008, just as they did in
the 2000-2002 recession. Will be monitoring cash flow, capital
spending, productivity, salaries, GDP growth and other signs
of the business economy, which are the customers of Boston
Fannie Mae was deleted from the
Cooling Off list on 2.11.08, after posting losses of –50%
and -56%. So, why keep the company on this chart? Because
even though the federal government is working fast and furiously
on a bailout package, Fannie Mae could be one of the hardest
hit corporations in the U.S. by the subprime crisis. It is
not an obvious put. At the same time, it could pay to know
what your mutual funds are invested in because Fannie Mae
has been a very popular holding in many of the most popular
mutual funds. In volatile markets with lots of downward pressure,
it pays to take profits early and often and to trim back your
exposure on the most vulnerable industries (which is why we
took our profits before the bailout announcement).
RISK: MEDIUM HIGH
CEO Bruce Karatz resigned under
pressure Oct. 2006, after SEC investigation of backdating
options. Read the article, "Rupert
Murdoch, Nobel Laureates and Top Real Estate CEOs. Find Out
Where They Are Investing," from vol 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 inventory.
information in vol.
4, issue 9 in the
REITs article. We first featured Macerich in May of 2003,
when it was trading at $33/share. In September, when Macerich
was trading at $81.22, the signs were pointing toward a cooling
off in retail shopping center REITs, so we removed the company
from our Hot News list (meaning that we’re capping the performance
at 150% gains). Since then, the share price has fallen 22%.
With a pullback in profits and GDP growth, consumer spending
should abate and the pressures on inflation could mount. The
mall REITs should begin to come under pressure in 2008, just
as they did in the 2000-2002 recession. Will be monitoring
cash flow, capital spending, productivity, salaries, GDP growth,
unemployment, price of oil and other signs of the consumer
economy, who are ultimately the customers of Macerich. They
missed earnings estimates in Nov. 2007, and announced earnings
on 2.12.08. For the year ended December 31, 2007, net income
available to common stockholders was $71.7 million or $1.00
per common share-diluted compared to $228.0 million or $3.19
per share-diluted for 2006. Net income available to common
stockholders for the quarter ended December 31, 2007 was $38.4
million or $.53 per share-diluted compared to $147.9 million
or $1.98 per share-diluted for the quarter ended December
See the article (Sub)
Prime Time in
the May 2007 ezine, vol. 4, iss. 5, when we warned everyone
should get out of subprime mortgage lenders. On July 27, 2007,
Novastar announced a reverse stock split. As a result of the
reverse stock split, every four shares of common stock were
changed into one share of common stock. Scott Hartman, the
company's chairman and chief executive officer, Chief Financial
Officer Gregory Metz and General Counsel Jeff Ayers are leaving
the company, effective Jan. 3, 2008. Lance Anderson, the current
chief operating officer and president, was elected by the
board to replace Hartman. In danger of being delisted by the
NYSE due to the share price falling beneath $5.00/share. Has
laid off 100s of employees, sold off most of its subprime
loans and closed doors on most of its offices. What’s left
to do? The paperwork? Don’t be fooled. Lance Anderson may
be the only guy on the planet who would take this job. The
former CEO and Chairman is reportedly getting $2.1 million
in cash for leaving, according to BizJournal.
RISK: MEDIUM HIGH
Read the article, "Rupert
Murdoch, Nobel Laureates and Top Real Estate CEOs. Find Out
Where They Are Investing," from vol. 2, issue
5 in 2005, when we first reported on REITs
as a burned out sector. There is a pending securities action
complaint (but not a confirmed investigation), from June 2007,
alleging that Toll Brothers "and one or more members
of its senior management, violated federal securities laws
by issuing various materially false and misleading statements
that had the effect of artificially inflating the market price
of the Company's securities and causing Class members to overpay
for the securities." According to the annual earnings
report filed in Dec. 2007, net income had dropped to just
$36 million, from $687 million in 2006. Chairman and Chief
Executive Officer Robert Toll said, "By many measures, fiscal
2007 was the most challenging of the 40 years that Toll Brothers
has been in business. 1974 was perhaps rougher, but the difficult
times only lasted one year."
Depression, in vol.
4, issue 12. 4Q & full-year earnings report was issued
on 1.16.08: $39.4 billion in revenue and net income of $8.06
billion. The Wells Fargo January 2009 put with a strike price
of $22.50 was priced at $1.50 on 3.24.08. On 3.31.08, it was
trading for $2.15, for a gain of 43%.
Mae on 2.11.08
Spent $1 billion on accounting
fees related to the accounting scandal. 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. December
14 annual meeting for shareholders will be held at 10:00 a.m.,
EST, at the Hilton Washington in Washington DC. Fannie Mae
is chartered, but not funded or guaranteed, by the U.S. government.
It’s funded completely with private capital, and is one of
the top holdings in some of the most popular mutual funds,
i.e. you might own it. 3rd quarter net income loss
was $1.5 billion. FNM expects that the housing crunch and
credit tightening will continue to adversely impact their
financial results in 2007 and 2008, according to the 3rd
quarter earnings report.
miss the biggest global conference of the year – the Milken Global
Conference. Also, join us for chats with Natalie Pace and life and
fitness Coach Gary Kobat, on how to beautify your fiscal and physical
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.
Premiere of The Moses Code, LA, CA
April 4th, 2008
to The Secret by the director, featuring Michael Bernard
Beckwith, Neale Donald Walsch, Mary Manin Morrisey and more.
Riviera Cruise for Moms
April 5th, 2008
your passion without sacrifice on this Mexican Riviera Cruise with
MomsTown Moms Mary Goulet and Heather Reider from April 5-12, 2008.
Being a mother is amazing, but it isn't always easy. Let go and
with Life and Fitness Coach Gary Kobat
April 9th, 2008
through 9:30AM PT.
to a healthier, wealthier, more beautiful you. It's all about energy,
tapping into, nourishing and maximizing what you already have to
make extraordinarily easy life changes to embody your highest potential.
THIS 21-DAY COACHING CALL SERIES WITH NATALIE PACE AND GARY KOBAT
BEGINS IN April, 2008. SIGN UP NOW AT THE JOIN NOW LINK AT NATALIEPACE.COM.
Don’t wait to become the best you ever, and watch how everything
in your life – your health, your wealth and your relationships –
become more beautiful as a result.
Strategies for Biz Women Conference, Washington, DC
April 11th, 2008
Depot presents this one-day conference, awards luncheon full of
great biz tips and even the latest gossip from the celebrity apprentice
star Nely Galan.
Subscriber Online Chat with Natalie Pace
April 16th, 2008
through 9:30AM PT
like solar energy, and sinkholes, like the financials. What's the
best strategy for the next few months? Did you make your IRA contribution?
2008: Quantum Quickening, LA, CA
April 17th, 2008
15th Annual Transformational Conference, featuring Rev. Michael
Bernard Beckwith, star of The Secret, Dr. Rickie, the Agape
International Choir and more to transform your life.
Goes Green Expo: NY, NY
April 25th, 2008
HOW FORWARD THINKING COMPANIES CAN GO GREEN AND STILL MAKE MONEY.
Summit is from April 25 through 27 at the NY Hilton.
Milken Global Conference, Beverly Hills
April 28th, 2008
3-day conference, from April 28-30, brings together some of
the most extraordinary people in the world – business executives,
institutional investors, asset managers, government leaders,
academics and Nobel laureates. Network, share & learn.
Maher and Tony Snow Lecture, LA, CA
April 28th, 2008
Lecture Series, brought to you by American Jewish University and
Whizin Center for Continuing Education. Call 310.440.1246.
April 29th, 2008
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?
Biz Women's Conference, San Francisco, CA
April 29th, 2008
New Year's resolution to jumpstart your career and come to Northern
California's premier event for professional women. get the skills
and knowledge you need to take your career in a new direction. Madeleine
Albright and Cokie Roberts keynote.
1Q 2008 report (advance)
Wednesday, April 30th, 2008
8:30AM through 8:45AM ET.
The U.S. Dept. of Commerce, Bureau of Economic Analysis (BEA.gov)
releases its advance report on GDP growth in the 1st quarter of
April 30th, 2008
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?
Rich and Healthy Retreat with Natalie Pace, LA, CA
you live if you had all the money in the world? Learn green investing,
sustainable living and play the billionaire game with Natalie Pace,
#1 stock picker and the most trusted name in financial news. Get
more information at the banner ad of the same name on the home page.
Annual Inspiration Awards, Beverly Hills, CA
May 9th, 2008
Step Up Women's Network rolls out the red carpet & gathers 700
members, celebrity supporters, industry elite, & community insiders
to honor 3 women who embody the spirit of Step Up through their
philanthropic impact in the lives of women & girls.
Fuels & Vehicles Conference, Las Vegas
May 11th, 2008
conference will run from May 11-14, 2008 in Las Vegas, NV. Waste
Management, UPS, the United States Postal Service, the City of Dallas
and Wal-Mart all know that green is gold. 200 experts discuss economics,
market opportunities, technology, electric cars, biofuels and fuel
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