Vol.1 Issue 54 November 1st. , 2004
Send comments and
suggestions. or get more information at
of the Month: "Investors
can't really count on a favorable push from a rising market
to help their stocks move upward. And that makes concentrating
your bets in rising sectors -- and avoiding the falling ones
-- just that much more important right now."
Jim Jubak, Money Central
Read his article at: http://moneycentral.msn.com/content/P93645.asp
Kerry! Who Will Be Invited to the Texas Tea Party?
by Natalie Pace.
cocktails: Investing in the $10 Billion Industry
of New Cancer Treatments By Paul Woods, President &
CEO of Odyssey Advisors, LLC.
Poker Challenge: Super Star Biotech Companies of
Tomorrow by Natalie Pace (Includes Biotech Stock Report
the Fun Back in FUNDS: 5 Ways to Make Investing
More Delightful Than Shopping by Natalie Pace.
Estate Values Go Down 10% in Las Vegas Is Your Town
Next? Q&A with Steve Dietrich, President of FRG and
a Guest Lecturer at the Anderson Graduate School of
Lights Up a Dull Market A Look at the Performance
of Stocks and Bonds, by Sector, in the 3rd Quarter.
By Paul Woods.
and Receive. Negotiate To Improve Your Life by Stefan
Whitwell, CFA, Managing Partner, Tierra Capital, L.P.
Sandwich Generation. A Professional Gets Help Navigating
the Financial and Emotional Trauma of Placing Her Mother
in an Assisted Living Facility in this month's LIVING
Update: Copper Hits $146/ounce!
Money: Election Year Quotes.
and Power: What are the Secrets to Having It All?
By Christopher Howard, entrepreneur and internationally
acclaimed results coach.
Guide: Tips From the Pros, to Print Out and Keep
In Your Wallet.
Divorced and Desperate to Dream Come True: by Natalie
Pace, founder and CEO of NataliePace.com.
Natalie Pace, CEO & Founder of NataliePace.com ("wisdom").
Will Be Invited to the Texas Tea Party?
this year, sailing on the highs of the stock market returns of
2003 and a return of corporate earnings and capital spending,
there was a lot of optimism that the markets would perform well
again in 2004. NataliePace.com was more skeptical, calling for 2004 to
be a day-trader's paradise, and warning investors to take their
profits as early as January. As we predicted, day-traders have
had a lot of fun with the volatility this year, largely prompted
by escalating oil prices and rising interest rates, but for the
long-term investor, it has been déjà vu 2002--more
disappointments in an unbearable market. The Dow Jones Industrial
Average is off 6%, NASDAQ is down 4% and the S&P 500 is finishing
off just under the wire, at -1%. Joseph Lisanti, the Editor of
the S&P 500's Outlook lowered their yearend target
to 1130, projecting a meager 1.6% gains for 2004.
Do you think
your candidate has the goods to bring back the Clinton highs (market,
not marijuana) of the stock market? The macro truth in presidential
politics this year is that it doesn't matter which candidate gets
elected; half of the nation is not going to be happy about it.
Both are stuck with inflation, rising interest rates and a $7.4
trillion public debt (source: http://www.publicdebt.treas.gov/opd/opdpenny.htm).
Neither Bush nor Kerry will electrify Wall Street, more than a
limp Bush victory rally or a tepid Kerry sell-off on fear of increased
capital gains taxes. Both post-election events will be short-lived,
as Americans turn in horror to the fire in their budget, fueled
by rocketing oil prices and rising interest rates, which, rhetoric
aside, are burning up the nation.
are greater than the price of oil and the daily terrorist strikes,
which have kept investors from noticing that earnings on Wall
Street have been up 20% or more on average. Yes, the economy is
back on track and corporations are healthier. The problem is:
so are interest rates and inflation. That remodel you were planning
is going to cost at least three times as much as you planned,
with the tripling in price of material costs. And considering
the back-orders on some basics, you might consider yourself lucky
to get what you need at ANY price.
were selective and thrilling, such as Google more than doubling
from its Dutch auction price of $85, to $172.43 on 10.22.04. And
losses were devastating, like Merck losing $19 billion in its
market capitalization on the day it was announced that Vioxx had
been pulled and hundreds of lawsuits were pending. Spectacular
gains and losses, like roller coaster rides, are not for the faint
of heart, and the markets are expected to continue this colossal
trend in 2005, of flat to disappointing year-end results, marked
by wild swings. Picking your companies carefully and timing your
buy-in and sell is essential to profiting in the markets these
days, and CASH is King.
is still one great hope for 2004 that you might consider before
you trade in all your stock certificates for savings accounts
and gold bouillon—the annual Santa rally. Approximately 50% of
the annual gains in the stock market occur in the last quarter.
January, as we've said many times in our e-zine, is historically
the top-performing month of the year, while September and October
tend to be the most dismal. (ie. If you sell now, you're likely
to be selling at an annual low.) Historically, the year of an
election is the second best performing year of the 4-year cycle,
second only to the year BEFORE the presidential election (when
magical things happen, like 2003, to give the incumbent a strong
platform to run on). With average S&P500 returns of 13.52%,
election years trounce the returns of year one and year two of
the presidential term, by 81% and 56% respectively. So the Santa
rally, increased earnings (especially in NASDAQ, IT, media and
electronics companies) and the election year cycle are all playing
toward a favorable year-end to 2004, provided there isn't a successful
terrorist strike or other major calamity on U.S. soil.
for a chart outlining stock market returns by the election year
500 Index Average Total Returns 1928-2002
Before Presidential Election
of Presidential Election
After Presidential Election
After Presidential Election
how likely is a Post-Election Santa Rally? We put the question
to a few of our colleagues. Len Hartkemeier, a venture capital
advisor from Malibu, California, thinks all roads lead to Texas
tea—oil. "I think it depends upon oil prices. If they fall
after the election, there will be a rally. If they don't, there
will not be." Len believes that if oil falls back below $40/barrel,
the Dow will soar to over 11,000 in a month to two. Is that scenario
likely to occur anytime soon? Doubtful.
Not many oil
industry insiders see oil going below $40 a barrel, and most see
demand pressures, especially in China and India, pushing prices
even higher. One oil executive spoke candidly on CNBC last month,
saying, "There is no supply anywhere that can keep up with
the current demand." Back in April, when oil traded in the
low $30s per barrel, Rupert Murdoch worried that a successful
terrorist attack would take oil to $80, and now, just six months
later, it looks as though $60/barrel may be the new settling point.
With the political problems in Russia, the instability in Venezuela,
the ongoing attacks on the Iraq supply chain, which have kept
output running at under capacity for many months, and China and
India drinking up oil and basic materials like growing teenagers,
it is no surprise that oil is pushing new highs. It's hard to
imagine a scenario in the near future, where oil falls miraculously
to under $40/barrel.
to oil dragging down operating margins (especially for airlines),
many of America's more mature corporations are experiencing significant
challenges with regards to their under-funded pension plans. It
is very likely that defaults and reckless management of pension
plans will become the headlines of 2005. We've already seen the
network airlines struggling with this problem, and American automakers
are not far behind. GM's answer to the pension problem is to demand
super portfolio performance out of its pension fund portfolio
managers, which means taking on higher risk with retirement money
than is prudent. Higher risk is traditionally reserved for the
young, who can afford to rebuild in the case of loss.
in America, with their younger workforces and lack of retirees,
have a clear-cut advantage, which is part of the reason why Jet
Blue's cost per seat mile is the lowest in the airline industry.
This significant phenomenon alone favors NASDAQ over most NYSE
companies, which shows up both in earnings AND in the performance
of NASDAQ versus the Dow Jones Industrial Average. Over the summer,
NASDAQ rallied 8%, while the Dow Jones Industrial Average has
lost 5% of its value. Companies like Yahoo more than doubled their
sales, while Ford lost a percent in market share and posted another
loss in its worldwide operating margins. Don't be overly infatuated
with dividends and blue chips in today's climate. Dividends won't
make up for significant share price losses. Earnings, growth,
operating margins, debt and management (the visionaries and team
who run the shop) count now more than ever. If you don't like
the CEO or the management team, get out of the company stock.
CASH OUT of the markets altogether? I was surprised to learn that
Ben Horowitz, a Silicon Valley CEO, had only one holding in the
stock market—a substantial holding in his own publicly traded
company, Opsware, and nothing else. "I do not own any stock
other than Opsware and don't plan to own any stock other than
Opsware after the election," Ben wrote me in an email last
week. Top money managers aren't CASHING OUT completely, but many
portfolios are far more liquid than they've been in over a decade.
If you haven't taken a look at portfolio diversification recently,
now is certainly a great time to remember that CASH IS KING. It's
not a bad idea to have a little more cash around to hedge against
inflation and to capitalize on buying opportunities.
If Mr. Horowitz
has so little faith in the stock market, why isn't he cashing
out of his own company? In short, Ben believes in Schumpeter's
Theory of Economic Innovation, that it takes two cycles for any
new invention to become mainstream. Ben believes that this time
the Internet is here to stay, and that investors who get in early
are in line for a long, rewarding ride, akin to what occurred
in the PC revolution of the 80s, which made Bill Gates the wealthiest
man on the planet.
Ben isn't the only person placing money in Opsware. Institutional
Holdings have jumped to 48.6%. Stock Scouter predicts that Opsware
will significantly outperform the market over the next
six months with average risk," and Opsware's analyst rating
has moved from a weak 4 out of 10 last year to a robust 7 today.
investors today are selectively picking their stocks, their sectors
and their buys and sells VERY carefully. As Jim Jubak, a Money
Central finance guru writes, "Investors can't really count
on a favorable push from a rising market to help their stocks
move upward. And that makes concentrating your bets in rising
sectors -- and avoiding the falling ones -- just that much more
important right now." So which sectors are winning? According
to Michael Thompson, Financial Dir. Of Thomson Research, "There
has been 73% earnings growth in basic materials. Energy earnings
are up 38%. Technology is up 38%. The two chumps [losing sectors]
are telecommunications and utilities."
stock picks this year have been heavy in metals, energy and technology.
View our Stock
Picks and price points here! Read up on why we believe
that key great NASDAQ
Internet companies are ready to explode in share price.
going to include two paragraphs that came in from a money manager
just as I went to press. Since crystal balls are not compatible
with scientific analysis, most money managers prefer to remain
anonymous when predicting the future. Agreeing to speak under
the cloak of invisibility, here are the comments of someone I
(1). The stock
market likes Bush a lot more than Kerry. It's important
to keep the tax on capital gains and dividends at 15% and not
stick it to all those nasty rich people who create jobs. Ever
try to get a job from a poor guy? About 2/3 of our economic
growth comes from consumer spending. Raising taxes and giving
consumers less money to spend will tank the economy. If
Kerry wins, the market will struggle. If Bush wins, look
for a rally of about 10% between November and January.
(2). The economy is slowing and the government is lying
about the inflation rate because they want to minimize the increase
in Social Security. Have you bought gas, health insurance,
or anything else lately? The 2% inflation number is a joke.
Returns in the stock market are about 50% lower in the years
after an election, and slowing growth and rising inflation aren't
going to make this time any easier. We're getting defensive.
Well-diversified portfolios focus on companies that benefit
from or aren't hurt by inflation. Small companies can respond
faster that the big guys and should continue to outperform, and
we love high dividend stocks and companies that are cheap. Valuation
will matter. Avoid high P/E stocks.
Know your holdings and get rid of any rotten fruit. Believe your
budget more than the government numbers when it comes to inflation.
Get some inflation resistant stocks in your portfolio. Lock in
the fixed mortgage rate on your home. Cash is king. Get some.
Natalie Pace owns shares in the following companies mentioned
in this article: Opsware, Jet Blue.
Woods, President & CEO of Odyssey Advisors, LLC.
in the $10 Billion Industry of New Cancer Treatments.
approach used by early chemotherapy is the equivalent of flooding
a building to put out a fire in a wastebasket. In contrast, second
generation drugs are designed to specifically target cancer cells
and leave surrounding tissues undamaged… Keeping patients alive
longer will also expand what is already a $10 billion market.
The result is that some of these new drugs have enormous potential."
of advances in the treatment of cancer, it remains a deadly disease.
As our population ages, cancer rates are increasing. [Ed's note:
There are roughly 76 million Baby Boomers who will begin retiring
in 2008, totaling 26% of the total US population (US Census Bureau).]
Many types of cancer are curable in their early stages, and many
treatments can hold cancer at bay for a period of time. However,
cancer cells have the annoying habit of mutating and eventually
overcoming treatments designed to control them. A cure remains
elusive and cancer will probably pass heart disease in the next
few years and become the leading cause of death in America.
a disease characterized by a breakdown of cell growth regulators.
The resulting loss of cellular growth control allows cancer
cells to proliferate rapidly. For this to occur, tumor suppressor
genes also have to fail to function. These are genes that normally
inhibit the division of cells if they detect DNA damage or defects
in the cell. Unfortunately, cancer cells have the ability to
overcome both these genetic systems and overwhelm healthy tissues.
First Generation Treatments: Chemotherapy
generation cancer chemotherapy is composed of compounds that target
and kill rapidly growing cells. Unfortunately, hair cells, cells
in the stomach lining, and bone marrow cells also grow faster
than others. The result is that most first generation chemotherapy
leaves a patient bald, sick, and with a severely damaged immune
many patients aren't told about first generation cancer chemotherapy
is that 20-30% of them will die from the side effects of the
drugs, not the disease. Another 25% of cancer patients are too
sick to be given these drugs. In spite of this, the current
market is believed to be in excess of $10 billion and growing
Second Generation: Genetically Targeted Approaches
approach used by early chemotherapy is the equivalent of flooding
a building to put out a fire in a wastebasket. In contrast, second
generation drugs are designed to specifically target cancer cells
and leave surrounding tissues undamaged. The goal of these treatments
is to make cancer a treatable disease by stopping tumor growth
and preventing cancer from metastasizing.
the poisonous side effects, cancer patients that are too sick
to be given first generation drugs can now be treated. In addition,
keeping patients alive longer will also expand what is already
a $10 billion market. The result is that some of these new drugs
have enormous potential.
Fly in the Ointment
getting specific, we need to add one caveat. New drugs require
approval by the Food and Drug Administration. In the last few
decades, the amount of time required to obtain approvals has doubled.
There is new leadership at the FDA saying all the right things
about speeding up the drug approval process. However, predicting
drug approvals remains extraordinarily difficult and the FDA almost
always seems to find a reason to delay the first drug from a new
class of drugs. For this reason, investing in companies with
drugs awaiting approval by the FDA is very difficult and we recommend
that investors focus on companies with drugs already on the market.
is an overview of some of the most promising new treatments and
the companies that currently appear to have the strongest positions.
body's immune system is programmed to produce antibodies when
foreign substances like viruses, bacteria, and tumors are recognized
as invaders. These invaders produce antigens and the body's immune
system in turn produces proteins that seek out these antigens
and destroy them. Monoclonal antibodies are specialized antibodies
engineered to target specific antigens produced by tumors and
attack them without harming healthy cells.
One of the
first drugs to show the potential of second-generation cancer
treatments was Rituxan, marketed by Genentech (DNA) and
Biogen Idec (BIIB) for the treatment of lymphoma. Rituxan
has been on the market for about six years and is at least as
effective as first generation cancer drugs without the poisonous
side effects. This drug now produces sales of well over $1 billion
and is still growing rapidly.
involves the formation of blood vessels to support new tissue
growth. Cancer cells grow faster than others and have a constant
need for new blood supplies to supply nutrients and support this
growth. Anti-angiogenesis is designed to starve tumors of the
blood necessary to support them by arresting the growth of new
In May 1998,
the New York Times created a furor by running an article on
this technology and announcing that a cure for cancer was finally
on the horizon. EntreMed (ENMD) was featured and its stock rose
75 points the day the article appeared, even though the company
had yet to begin human trials. Once human trials began, results
were mostly disappointing. Scientists discovered that it's very
difficult to target blood vessel growth on tumors only, and
most investors dismissed this technology.
continued to press ahead and it's fair to say that the investment
community was stunned when the company announced in May 2003
that their anti-angiogenesis drug, Avastin, showed very positive
results in treating colorectal cancer. Just as surprising was
having the FDA approve the drug in near record time in February
sales are now growing rapidly, but may just be scratching the
surface. Most solid tumors including those associated with breast
cancer, lung cancer, and prostate cancer are likely to have
at least some susceptibility to this drug, and it appears to
have blockbuster potential.
growth factors are proteins secreted by various types of cells
to promote cell growth. They bind to receptors on the membrane
of cells and this process eventually leads to the cell receiving
a signal to divide. Epidermal growth factor receptors are found
on most solid tumors, and the goal of this technology is to essentially
put gum in the lock to prevent the key from being inserted. If
these receptors can be blocked, it makes it very difficult for
many types of solid tumors to grow.
the drug produced by ImClone Systems (IMCL), is the most notorious
drug in this group. It was granted fast track status by the
FDA for the treatment of colorectal cancer, only to have the
New Drug Application rejected in December 2001. While the company's
founder and his girlfriend ended up in jail for trading on this
news before it was public, the real scandal was the unnecessary
delay by the FDA.
finally got around to approving Erbitux in February 2004. While
they were dithering, over 300,000 people died of colon cancer.
Erbitux would probably have helped a significant percentage
of these, but no coherent explanation was ever provided for
this delay. Although Erbitux is priced at a premium and is currently
being used as a second line treatment for colon cancer after
Avastin, it also has the potential to be used in multiple types
AstraZeneca (AZN) had already received approval in May 2003 to
market Iressa in the U.S. for the treatment of lung cancer. This
is a very large potential market, but AZN is already a huge pharmaceutical
company, so even a blockbuster drug will have a fairly modest
overall impact. However, being first to the market and pricing
the drug more reasonably than Erbitux gives Iressa a big competitive
advantage for the time being.
In the meantime,
there's another very impressive EGFR blocker waiting in the
wings to treat lung cancer. OSI Pharmaceuticals (OSIP) has partnered
with Genentech (DNA) on a drug named Tarceva. This recently
demonstrated a remarkable survival benefit in advanced human
trials. In patients with lung cancer that failed to respond
to initial or secondary treatments, Tarceva increased survival
rates by over 42%. FDA approval is possible in early 2005. AstraZeneca
is also conducting broad scale human trials on Iressa, but it
they can't match Tarceva's impressive survival statistics, OSI's
drug may end up becoming the front line treatment in this market.
became an even more interesting drug in September with the announcement
that it also appears effective in the treatment of pancreatic
cancer. In a broad scale human trial with patients suffering
from advanced pancreatic cancer, Tarceva increased the survival
rate by 23.5%. This is noteworthy as there are few treatment
options at present, and pancreatic cancer is the fourth leading
cause of cancer deaths.
vaccines are an old idea that may finally be showing some promise.
The idea behind this treatment is to stimulate the body's immune
system to recognize a tumor as a foreign body. Once recognized
as such, the body's immune system produces cytotoxic T-lymphocytes
(CTLs) that bind specifically to cells with antigens they recognize
and kill the targeted cells. When done, the CTLs go to more cells
with these antigens and repeat the process until no more of these
can be found.
vaccines to be effective, several conditions have to be met.
First, tumor cells must have tumor-specific antigens on their
surface. Second, CTLs must be able to find these antigens. Third,
CTLs must recognize these antigens as foreign. Finally, the
immune system must be able to summon the cavalry and attack
and kill the cancer cells. A vaccine that can overcome all these
obstacles can, in theory, cure cancer.
is that different vaccines overcome each problem with varying
degrees of success. Some stumble on one hurdle; others have
a problem with the next. Until further advances are made, it's
likely that this therapy will eventually be used in conjunction
with surgery or with treatments already discussed to try to
clear the last traces of the disease or prevent cancer from
these vaccines target specific tumors and may not be a first
line treatment, the potential market is not as large as treatments
targeting multiple types of cancer. However, the companies developing
these vaccines have relatively small amounts of outstanding
shares, so even a drug that eventually generates $100-500 million
in revenues can have a significant impact upon earnings.
appears to be closest to the market with a vaccine named Provenge
for treating prostate cancer. A clinical trial now underway will
be used by the FDA to evaluate the drug and determine whether
or not the drug is approved. If the trial is successful, this
drug may be on the market in 2006. Cell Genesis (CEGE) also appears
to have promising cancer vaccine technology that appears to be
a bit behind Dendreon.
Provenge is in Phase III trials, and should be complete in about
a year. Looks promising so far, but need more information before
getting too excited. Provenge isn't likely to be on the market
until 2006. Look for an update in NataliePace.com issue 55.]
and the proteins they produce control every stage of life, including
disease. As we already discussed, cancer is the product of a breakdown
in the genetic systems designed to control it. It's the result
of defects in either cancer promoting or cancer inhibiting genes.
The successful completion of the Human Genome Project and the
broader understanding of DNA opened the door to the enormous potential
of gene therapy.
is a technique for the treatment of disease that entails the
manipulation or inhibition of defective genes, the replacement
of missing genes, or the direction of therapy based upon gene
detection. The goal of gene therapy is to repair the root cause
of all disease, including cancer. However, like the college
football coach said, "Potential means you ain't done it
promising technology in this area is antisense, which focuses
on overcoming diseases by preventing the proteins that cause
disease from being formed. Antisense is essentially a jamming
signal that targets the RNA that carries instructions from DNA
to the cells. Antisense creates a mirror image of the RNA messenger
that spreads disease. When injected into the body, it's supposed
to bond with the RNA and prevent it from delivering its message
to the protein building machinery. According to one scientist,
"It's like cutting the wires from central command to the
troops. All I have to know is what gene I have to screw up."
this isn't nearly as easy as it sounds. It turns out the dummy
genetic material often does more than just snip communication
between bad genes and their deadly proteins. Many antisense
drugs have been found to negatively affect other genes and proteins
not implicated in disease. Still others have proven ineffective
in snipping the wires. Enormous potential and drugs that have
yet to demonstrate it have characterized this therapy to date.
(GNTA) and its partner Aventis (AVE) are in advanced human trials
with Genasense, a drug that continues to show mixed results
in treating a number of cancers. It has a number of trials underway
for multiple myeloma, leukemia, melanoma, kidney cancer, pancreatic
cancer, and lymphoma. So far, the drug has shown some benefits
but has not significantly increased survival rates. Until this
changes, it's hard to get too excited about Genta.
(ISIS) is the other dominant company in gene therapy. It has
a number of drugs in research and has partnered with several
high profile pharmaceutical and biotech companies. However,
it has also not yet found a drug that demonstrates effectiveness
in advanced human trials. If it does, it has already partnered
away a big chunk of any potential profits.
oncolytic virus technology is still in its early stages. It's
not as advanced as the treatments already discussed, and is still
too early to evaluate. However, it's based upon a very intriguing
idea. Engineered oncolytic viruses are viruses that cannot survive
in healthy cells. They are designed to be able to only survive
and reproduce in cancer cells. In cancer cells, the theory goes,
they reproduce very rapidly and cause the cell to burst. Once
free, they find more cancer cells and repeat the process until
all cancer cells have been wiped out.
a handful of companies involved in this area. The leading company
appears to be Cell Genesis (CEGE). It's in early human trials,
and progress appears to be worth monitoring.
of the different types of treatments discussed so far are complementary.
Because they have limited side effects and target different aspects
of cancer, it's realistic to expect some of these to be used together
once they reach the market. The cancer cocktail of the future
may very well include monoclonal antibodies, anti-angiogenesis,
EGFR blockers, cancer vaccines, and gene therapy.
goal is to make cancer a treatable disease by stabilizing or
shrinking tumors. In the meantime, however, cancer patients
can expect to live longer with a better quality of life, and
cancer patients too sick for first generation drugs will now
have treatments available. This will allow what is already a
market in excess of $10 billion to expand significantly. With
impressive drugs in several of these areas including one potential
blockbuster, Genentech (DNA) appears to be the best-positioned
company in this group.
people, I have lost too many friends to cancer. However, there's
a quiet revolution now going on in treatment that promises to
improve the quality of life for cancer patients and may eventually
make this a treatable disease. A number of treatments are emerging
for solid tumors, and we're sharing this information in case
you have friends or loved ones now undergoing treatment and
looking for alternatives.
purposes, it should be noted that Odyssey Advisors, LLC has investments
in Genentech, ImClone Systems, and OSI Pharmaceuticals.
has been obtained from sources believed to be reliable however
Odyssey Advisors LLC does not warrant its completeness or accuracy.
Opinions constitute our judgment as of the date of this material
and are subject to change without notice. This material is not
intended as an offer or solicitation for the purchase or sale
of any financial instrument. Securities, financial instruments
or strategies mentioned
Star Biotech Companies of Tomorrow (Includes Biotech Stock Report
Card). Which one will win the championship pot in your portfolio?
Drugs and the Companies That Own Them in the $10 billion Plus
Market of Cancer Cocktails.
million insider sells
DNA's 3Q 2004
Sales of $1 billion are up +54% over last year. Myrtle Potter,
president of Commercial Operations, reports that DNA "is actively
preparing for our next milestone with the anticipated launch of
Tarceva." On September 20, 2004, DNA and OSI Pharmaceuticals
completed Phase III Tarceva trials, which demonstrated 23.5% improvement
in overall survival for pancreatic cancer patients. If the FDA
agrees with the results and is not measurably concerned with the
risks (mostly rashes, according to the study results), the New
Drug Application could be approved anytime between now and early
2005. Pancreatic cancer is one of the most deadly diseases on
the planet, with less than 5% survivability rate. Drugs that extend
life by even a few months are blessings to many families, which
should improve the odds that the FDA will approve the NDA. Additionally,
as Paul Woods noted in his Cancer Cocktail article, Tarceva works
on the same premise as IMClone's Erbitux, which has already been
approved. Tarceva's survivability rates are even more impressive
for lung cancer.
are rocket launchers for a biotech's stock, but Genentech has
a few clouds in its blue sky, which, depending on how well the
stories are managed could rain on the parade. Insider trading
isn't a reliable measure on its own, but, given that a criminal
and civil investigation of Genentech (NYSE: DNA) from the US Attorney's
Office in Pennsylvania was formally announced in October and the
consensus insider selling at Genentech of $85 million occurred
in April and May, there is cause to smell something fishy going
on. There is another concern, as well. The problems with Avastin
causing deadly blood clots in a small portion of those receiving
the drug hit the newsstands in August. These are a series of red
flags that can be a major drag on the share price, especially
if any of these back page items become headlines. I agree with
Paul Woods that Genentech is diversified in some of the most promising
cancer treatments available, but over the next year, it is at
least somewhat likely that the negative press of the Rituxan investigation
or the Avastin arterial blood clots will find an audience and
spook investors. If you want a shot at the pop of the FDA approval
of Tarceva (assuming it occurs) without the potential legal problems
at Genentech, OSI Pharmaceuticals might be a better play.
has had a lot of volatility in its share price since 2000, providing
great profit-taking opportunities for day traders. I'd watch closely
and buy on opportunity, below the 52-week low of $39.75. Merck
and VIOXX should continue to weigh down the Biotech sector, especially
the high profile companies, like Genentech, which have question
marks of their own on their star drugs.
and Drugs: A Tale of a Wayward Executive
you'd expect to see heroin or cocaine as the drug associated with
wayward executives, but IM Clone's founders actually created a
miracle cancer drug. The original executives have been booted
from the company. Sam Waksal is in jail for insider trading, as
is his buddy, Martha Stewart. Sam's brother, Harlan, was asked
to leave the company for tax issues related to the sale of over
$50 million of IMClone stock. (Interesting that Harlan's sale
of stock occurred just two weeks before Sam's more notorious,
criminal action, but that's a story we wrote a year and a half
people don't know about IMClone is that Bristol Myers-Squibb is
a major partner. In fact, Daniel S. Lynch, IM Clone's CEO, was
an executive at Brisol-Myers Squibb for 15 years, prior to joining
the executive team at IMClone. Bristol Myers-Squibb has a big
stake in IMClone and is a blue chip play for your portfolio—for
stability and dividends— only if you overlook what money managers
call "notoriously creative and aggressive accounting."
Bristol-Myers Squibb was one of the 350 companies that had to
restate earnings a few years back. To date, BMY has been content
to let IMClone take most of the glory for Erbitux, so you'll likely
to see a lot more movement with IMClone stock than with BMY.
1Q 2004 Erbitux
sales came in at $17.5 million, with Bristol Myers-Squibb reporting
the sales and IMClone receiving a 39% royalty on the sales. IMClone's
European partner, Merck Germany, issued a cash payment of $5 million
to IMClone on 8.5.04 for reaching a major milestone in Europe.
IMClone's drug has received a strong bill of health and sales,
and is being considered for approval for other forms of cancer,
instead of just colon. According to Business Week, Standard
& Poor's analyst Frank DiLorenzo sees peak annual sales for
Erbitux at $2.3 billion by 2012. On 10.28.04 IMClone beat earnings
by a noteworthy amount. Analysts surveyed by Thomson First Call
were looking for the company to post earnings of 33 cents per
share on sales of $83 million in the latest quarter. IMClone's
net income was 45 cents per share, on total revenue of $94.8 million.
Considering that IMClone will be adding European sales in the
coming quarters, through its partner, Merck KGaA, earnings should
continue a positive trend. Alternatively, however, IMClone is
carrying a lot of debt and the valuation is considered to be high.
Though Genentech is a strong long-term bet, the current legal
inquiries there and the Avastin arterial blood clots both have
the potential to become larger stories and could present a buying
opportunity at a later date (or a major losing opportunity for
investors who get in before the stories run their full course).
To date, Genentech has been very good at managing their press,
and you'll likely see fireworks when/if Tarceva is approved by
the FDA, something both OSI Pharmaceuticals and Genentech (partners
on this drug) are waiting for. For investors who can handle
a little spice in their portfolio, NataliePace.com is recommending OSI
Pharmaceuticals as a buy now, looking to capitalize on an FDA
approval of Tarceva. This is a risky bet that could be well worth
it, if the FDA approves the drug.
with Genentech, and buy on weakness, at under $40.00 share. If
the DNA low occurs before the Tarceva FDA decision, odds are your
investment will yield strong returns. Keep profit taking to a
narrow window, however, in case the other problems emerge.
in the markets today is very risky, as you can see from Merck.
All it takes to tank share price is one terrorist attack, one
drug gone very badly or a press conference wherein Eliot Spitzer
mentions your company's name. Be cautious and practice portfolio
diversity, fundamentals and a more than normal portion of liquidity.
Consider "playing" in the markets to be a key phrase.
Don't play around with more money than you can have fun with
the Fun Back in FUNDS:
Ways to Make Investing More Delightful Than Shopping.
Wynne Pace Founder & Ceo, NataliePace.com
"spreading wealth by sharing wisdom"
the Information that You already HAVE.
Joy, an NataliePace.com member shares her FUNding secrets: "My best
tip is to find what feels fun to your personality, fits your budget
and then play with it. Don't be afraid to make or lose a little.
When things aren't going right, ask somebody what's up. Don't
be embarrassed! Plus, it is more human than it looks. Don't discredit
your own experience of sales, kids, life and reality. That really
has helped me. I was scared to get started…and I've overcome my
fear. This is a blast! This is a mecca for women at home. We can
change our lives here. It is not beyond anyone who is intelligent!"
Joy, NataliePace.com chatter, October 13, 2004.
shopping. As Chris Howard, respected empowerment
coach notes, "People who live their lives without much
money have often been conditioned from youth to associate pleasure
with spending. Those who do have money have often been conditioned
to associate pleasure to saving and investing." Reprogram
Your Brain to love saving and investing more than spending.
The easiest way to do this is to change your behavior. Every
time that you get the urge to spend, check the performance of
your stock holdings, read an article on real estate or research
that company that you've been meaning to invest in. Change your
behavior and watch how the results come in. Every time you spend,
that is money OUT THE DOOR. If you instead water your money
tree, it grows.
throw in the towel every time your investment takes a hit.
This is tricky because you are going to have to start educating
yourself, instead of operating through fear. It is human nature
to be disappointed when an investment goes down. What determines
the ultimate outcome of that speed bump is whether or not you
have champion or loser mentality. Make sure that if your stock,
real estate or other investment is on the ropes, you evaluate
whether it can go the distance, instead of just throwing in
the towel the first time your fighter goes down. Cashing out
for GAINS is FUN, FUN, FUN. Throwing in the towel and taking
the loss reinforces those old sob stories you may have of loss
and failure. Throwing in the towel too early, before evaluating
the situation, is a message to yourself that you will never
have the stamina, will power, determination, and smarts to become
a winner. Champions overcome adversity and rise to the challenge.
They only take a dive if it looks like continuing the fight
is going to prevent them from ultimate victory (at a later date).
In other words, if you're holding an Enron (or possibly Delta
Airlines, which is skirting bankruptcy right now), take the
loss. It's better than dying. You can always enter the ring
again on stronger footing. If you throw in the towel after careful
evaluation, you will feel like a champion. (Imagine all those
elated people who cashed out their Enron stock at $16, instead
of waiting for the bankruptcy filing!) If you hang onto a distressed
company and win, you'll dance on the ceiling, like those IMClone
investors who saw their shares rise as high as $87.24, after
the FDA approved Erbitux.
Investing NOW! If you don't know how to swim in the
markets, wade in or put on some water wings. You'll never learn
if you don't get wet. Try investing a comfortable amount ON
YOUR OWN NOW so that you can begin your path to financial wisdom
(and to becoming the brains behind your portfolio and a better
partner with your broker/financial planner). Stocks are still
relatively low on the year and we are entering a period called
the Santa rally, where most of the stock market gains are made
each year. Historical trends are working in your favor right
now, especially if you re-evaluate your investment and/or take
your profits in January. Pick a company that you like or pick
one that a respected financial pundit recommends. NataliePace.com has
a number of recommendations in the STOCKS
ON SALE article in issue 53. Try the Stock Picks from
your favorite magazine or money guru. Investor's Business Daily
and Motley Fool have good track records.
Your Gains in Shorter Time Frames…
These days, anything more than a 10% gain is good, anything
above 25% is great and doubling your investment is outstanding.
Gains on paper can disappear BEFORE you get the joy of OWNING
them, as anyone who was invested in the stock markets in 2000
knows or anyone who has had their home destroyed in a hurricane,
earthquake, fire or other natural disaster! There is a big difference
between all and nothing. You can keep some chips on the table,
if you believe the company still has legs, but don't be afraid
to reap the harvest and eat a little of the fruit now. President
Bush has adjusted the tax code so that your tax liability is
much lower than in the past.
Estate Values Go Down 10% in Las Vegas:
Pace, CEO, NataliePace.com
Your Town Next? Q&A with Steve Dietrich, President of FRG, and
a Guest Lecturer at the Anderson Graduate School of Business,
a Southern California based real estate consulting and development
cut prices in Las Vegas, one of the nation's hottest real estate
markets, from 5 percent to 28 percent, with most in the 10 percent
range, according to Pulte Homes Vegas President, Sheryl Palmer
said. While this isn't exactly the popping of the great real estate
bubble, one of the most impressive asset performers in the last
four years, it is cause to re-evaluate your current position.
If you're looking to BUY now, you need to understand the dynamics
of a declining market and the possibility that your mortgage could
go underwater, at least in the near term. If you're tempted to
cash in the equity you've built up, either to free up some cash
for other investing or because you believe that a slow down will
make some of your profits disappear, then rising interest rates,
flat or declining growth in values and increasing supply, with
more homes sitting longer on the market, all point to the fact
that the high in the real estate market likely occurred earlier
this summer. To make sense of the new statistics and to get some
real world counsel on how to maximize profits and protect against
losses, NataliePace.com members had the opportunity to question Steve
Dietrich, a respected real estate consultant.
what's the bottom line? Will real estate values start to decline?
seeing that now. One of the largest homebuilders reduced their
prices in Las Vegas by 10%.
someone who bought a new home in summer, hoping to sell their
old home in summer. They look to be a little strapped. The old
home isn ‘t selling, and worse, there just aren't that many people
looking to buy. This, by the way, is in Southern California, one
of the hottest real estate markets in the world over the past
someone buying long term, you cannot afford to be only 10% smart.
It is more important to find the home that fits [so] that you
will not be forced to sell in the short or intermediate term.
another way of saying that right now is very likely as high as
the market will go? With values declining, are you concerned that
new buyers will get underwater on their mortgage? What's the best
advice that you can give right now—wait a year or two to buy?
be very careful in my selection of a home and also in the amount
of debt. I would not want to have to sell the home over the next
As the rate
of sales decrease in some markets there will appear to be bargains,
which might simply be an overpriced market marked down to market.
Over the past few years, if a home went on the market in a hot
areas above market price, it simply waited for the market to rise.
However, if the market goes flat, the overpriced homes will accumulate.
It is important
to remember that real estate is immobile and thus, local. It is
important to look at the forces driving the local market. Often
it is an industry or a group of industries.
last few years, low interest rates and liberal lending policies
have lead the rush, don't you think? More than local factors?
Are we now looking at a period where the markets return to the
has been the availability of financing which has created demand
in a market where the overall supply was constrained in the short
run. The fact that rates have been low for a sustained period
has encouraged the production of housing. It takes a long time
to get raw land into finished housing.
any bargains out there today, or is most everything overpriced
by at least 10%?
will always be people who need to sell in any market through changing
family conditions—death, health, marriage or divorce. My neighbors
just dropped the price on their home 10% in a very hot market
because they were not getting buyers and they need to sell and
NataliePace.com chatter: I'm wondering if I should sell my condo, due
to an oversupply of condos.
depends upon your personal goals and resources, plus the market.
I think homes in my area will decline, but I like where I live
so I'm not thinking of selling.
Some of the
unique characteristics of high rise condos is that they take a
long time to build and they come in large sizes. In a low-rise
condo development, you can phase the project in small batches,
but with the high-rise development you get a lot of condos on
the market at the same time. You frequently get a number of builders
building at the same time, which further increases the market
It is very
hard for a development team to stop working on a project which
they have invested millions and several years. The temptation
is to keep moving ahead and imagine that the market will improve.
see inflation or deflation in the future?
development business, we are seeing very large price increases,
some of which are temporary and others which are longer term.
We are in a unique situation. We are at war, and probably more
than at any time since the British sacked DC, our homeland is
threatened. This is the real wild card. Not much we can do about
it but to lean a little more to the conservative side of the boat.
wood prices, nails and cement? A friend said that everything had
tripled or more in price and that you can't even get cement…
has become a huge consumer of construction materials, plus a lot
of producers of local materials have closed. The hurricanes consumed
vast amounts of plywood and other materials.
There is more
randomness in the world than we would like to admit.
have a question about real estate, we'll put it out there to our
community of real estate experts, who have decades of experience.
Please send an email to ShareWisdom@NataliePace.com,
with Real Estate Question in the subject.
Energy Lights Up a Dull Market:
Look at the Performance of Stocks and Bonds, by Sector, in the
are now over $50 per barrel and prices of many other commodities
and services are also rising. We doubt this genie can be kept
in the bottle much longer, and expect to see rising inflation
into 2005. This, coupled with slowing profit growth, will probably
make it difficult to produce high returns in either stocks or
bonds next year… We remain cautious and would continue to emphasize
quality, liquidity, and shorter maturities in the bond market."
Woods, CEO, Odyssey Advisors
usually a difficult period in the stock market, and 2004 was true
to form. Volume was light as the stock market performed a partial
bungee jump in the third quarter. The market declined for the
first six weeks, and then rallied without much enthusiasm for
the rest of the quarter. By the end of the quarter, the stock
market was either up or down slightly for the year, depending
on whether "the stock market" is the Dow-Jones, S&P
500, or Nasdaq.
third quarter, large companies outperformed smaller ones, value
outperformed growth, and REITs and energy were the place to be.
Income stocks also did well, and we were pleased to see that our
equity income portfolios produced a total return of just over
6%. For reference, here's the stock market and industry group
scorecard for the third quarter:
S&P 500 Index
is another reminder that, in the stock market, changes in valuations
are what make it difficult to forecast returns. With a recovering
economy, earnings were up over 20% at the end of the second quarter
and estimates were revised upward every month. However, this was
more than offset by valuations. Between higher energy prices,
uncertainties over the election and the economy, and the Federal
Reserve increasing short-term interest rates, investors found
enough reasons to sell stocks and push valuations lower.
In the fixed
income market, the differential narrowed between short-term and
long-term interest rates. The Federal Reserve continued to increase
the Federal Funds rate at a snail's pace that should keep Alan
Greenspan in the news as long as possible. Meanwhile, in the real
world, bond yields declined during the quarter. Slowing economic
growth and mixed readings on inflation took some of the pressure
off the bond market. However, we remain cautious and would continue
to emphasize quality, liquidity, and shorter maturities in the
day Treasury Bills
Year Treasury Bonds
As we look
into the remainder of the year and 2005, leading indicators seem
to be implying that economic growth will slow to a more sustainable
pace in the next few months. Oil prices are now over $50 per barrel
and prices of many other commodities and services are also rising.
We doubt this genie can be kept in the bottle much longer, and
expect to see rising inflation into 2005. This, coupled with slowing
profit growth, will probably make it difficult to produce high
returns in either stocks or bonds next year.
recent decline in stock prices appears to have discounted some
of these problems, and the election will resolve a major uncertainty
for investors. As we head into what has historically been a good
time to own stocks (November-January), we wouldn't be surprised
to see the stock market end 2004 with a positive return. Our response
to this environment is to keep the portfolios well diversified,
pay attention to valuations, and invest in sound businesses.
Whitwell, CFA, Managing Partner, Tierra Capital, L.P.
To Improve Your Life.
is the wisdom of knowing what you want and the courage to ask
well do you negotiate?
CFA Managing Partner,
Tierra Capital, L.P.
One of the
great lessons in life - which is rarely taught in school - is
that life is negotiable. What this means is that you have the
power to shape your life. Few people know this. There are lots
of people who do not choose their own path and live life passively
- accepting whatever (often frustrating) circumstances arise.
The art of
negotiating is equally important in business. The purpose of this
article is not to instruct you in the art of "how,"
but to inform you that you can and encourage you to more
actively negotiate. Let's start by asking ourselves, "What
Rule #1 - "Negotiation is the wisdom of knowing what
you want and the courage to ask for it." Negotiation,
if done well, is a positive activity that rewards the proactive
and penalizes the passive. Done well, it also earns you more respect
from the person with whom you are negotiating. Remember: it is
worth your while to negotiate.
Rule #2 - Most things in life are negotiable, no matter what
people tell you and even if the printed materials suggest otherwise.
For example, many of the services provided by banks and financial
institutions are negotiable, but this is a fact that most firms
will never publicly admit. A funny quote that comes to mind involves
a retort to the oft-repeated statement that money cannot buy you
love-- "But it can certainly improve your bargaining position!"
Here is a list of things that are price-negotiable. How many of
these things have you negotiated before?
- Bank fees
- The interest
rates banks charge on debt
- The interest
banks pay you on your savings accounts
- Real estate
- Car prices
- House prices
- Real estate
- Hotel room
prices in stores
- Fine jewelry
in high-end stores
- Legal fees
Rule #3 - Negotiation creates many additional non-financial
benefits. For example, a major benefit of negotiation is the
educational process it creates. You will learn a lot more about
the businessmen you are dealing with and the economic reality
of products or services if you negotiate. In addition, the
daily practice of negotiation will increase your self-esteem and
stimulate your creativity, by training yourself to think through
situations without the usual constraints of what most people think
is possible and impossible. Successful negotiation also increases
your attentiveness to the needs of other people since the
surest way to reach agreement with others is to meet their needs.
Rule #4 - Your choice of attitude and choice of language
makes a big difference in the outcome of your negotiation.
If you think, "There is no way they will agree," then
you will probably be right. If you think, "I believe they
will accept," they probably will. Your state of mind is crucial.
Your language is equally powerful. For example, if you ask, "Can
you lower this price?" they will often say "No."
If instead, however, you ask "How much will you lower the
price?" people will almost always respond with a price reduction
in your favor. It can be quite fun. Give it a try.
Let me give
you some real examples that I have been involved in the last two
- Last year
I gave notice to vacate an apartment that I had been renting
in Tokyo. One of the customs in Tokyo is to charge obscene fees
to tenants when they leave under the guise of ‘cleaning charges'.
I do not like this tradition so I negotiated. I arranged to
have my apartment cleaned and then told my broker that I would
only pay for specific damages (such as the remote which I had
lost) and that I would not pay for a duplicative cleaning fee,
since I had just cleaned the apartment. In Japan, brokers tend
to represent the landlord (who provides them future business).
Nevertheless, I did not want to pay $3,000 just for the sake
of tradition. Predictably, the broker came back and told me
my request would likely be rejected. In return I told him that
I confidently expect that the owner would honor my request and
made it clear that I was unwilling to consider anything to the
contrary. Several times the broker came back and asked me to
reconsider. Each time I made my case. Months passed. I withheld
the last months' rent until this was resolved. Last week I got
an email from the broker with the news that the owner was only
going to charge me $500 instead of the "traditional"
$3,000. The point is that no one was looking out for me in the
system and that by negotiating, I got a better deal.
- This example
relates to a moving company with whom I had a dispute (moving
things from Tokyo to the United States). Despite a fixed price
contract, the moving company tried to bill me an additional
$2,000. I did not agree with their reasoning (since it was a
fixed price contract) and I insisted on asserting my rights.
After many emails back and forth, they came back with a compromise
offer of only $1,000. Although this was movement in the right
direct, I continued to negotiate and eventually reduced the
additional payment to only $500. In this situation, despite
the fact that the contract was on my side, the reality is that
legal action would have cost me more time and money than I was
willing to invest and importantly, they had significant leverage
over me since they had in their possession and control a lot
of items that I valued and did not want to lose. I persevered
and succeeded in negotiating a significantly improved result
from the one that we were facing at first. The point of this
story is that even when you feel that your position is unfavorable,
because the other side has some type of leverage they can use
against you, stay calm and remain focused on your goal.
example relates to my company, Tierra Capital which runs a real
estate investment fund that focuses on buying assets at a cheap
price, improving the assets and then selling them for a big
profit. We are in the midst of negotiating a deal on a 70,000
square foot building in a major city in Texas. A bank currently
owns the debt on this property - which went through bankruptcy
several years earlier. We are negotiating with the bank. When
we first found out about this deal, the bank was selling the
building for $2.5mm, even though six years ago the previous
tenant/owner had spent over $6.0mm improving the property. When
we inquired about the price, we were told by the selling broker
that there was no way that the bank would consider an offer
below $2.5mm. We told the broker that we were not interested
(since we think that the price is still high based on current
rents in the area). Despite what the broker told us, we put
in a bid of $1mm, and we have been told that there are two other
bids for $1.5mm that the bank is seriously considering. In this
case we probably will not win the bid, but the point is that
sometimes it is worth focusing on what you think makes sense
in negotiations, instead of what people tell you is or is not
- My last
example is particularly telling. As mentioned above, I run a
real estate fund. Several months ago we deposited millions of
dollars into our bank account, with a famous brand-name bank.
Would it shock you to learn that the bankers were happy letting
it sit in a non-interest bearing account? I was livid that I
had to proactively ask for the best service - and that if I
had failed to ask, I would have gotten bad service (low interest).
I called my banker and specifically asked for the best money
market rate they could give me that still provided me instant
access to the funds (they will tend to offer higher rates if
you commit to time-deposits). I find it absurd that you have
to specifically request the best rates (as if anyone would ask
for mediocre rates) - but as my example proves, if you do
not ask you do not receive. After requesting their best
rates, they increased my annual yield to 0.95% from 0.00%. At
the same time, I asked one of our summer interns to see if there
were better deals being offered by other major banks. Indeed
he found a bank that was offering rates of 1.75%. I was incredulous.
So I again called up my banker and told him he had to further
improve my rate and do so in a hurry - despite the fact that
I was getting what he claimed was the "best rate"
they can offer. Long story short, within 48 hours, he had arranged
for me to get 1.65% (a dramatic improvement). If you think it
is the bank, think again. Most banks operate like this. If you
think it was my banker, think again. Most service providers
(with few exceptions) operate like this. The onus is on you
to stick up for your needs and ask for better service. It is
mind-blowing that one needs to do this sometimes, but asking
is much better than not asking.
On a different
subject, I think this is one reason the Japanese are going to
face some economic challenges in the next decade. The Chinese
are master-negotiators. They negotiate every second of the day
without stop. Most Japanese, by contrast, have never negotiated
anything significant in their life. As a consequence, the Japanese
do not understand negotiation-based investment strategies, such
as corporate and real estate private equity, and instead they
put most of their money in interest accounts bearing little to
no interest. This passive strategy is risky.
value comes from work (as opposed to passive strategies). Negotiation
is one of the tools you can use to create value in business and
in your personal life. Like any tool, there are times to negotiate
and times not to negotiate, but the overall message is make sure
that negotiation is one of the tools in your toolbox. People who
are proactive and focused on desired outcomes will outperform
those that are totally passive - not just in investing but also
in many areas of life.
Make It Happen!
Professional Gets Help Navigating the Financial and Emotional
Trauma of Placing Her Mother in an Assisted Living Facility in
this month's LIVING WEALTHY series.
WEALTHY: Your chance to have four seasoned financial consultants
give you a personal money makeover. In this issue, aging parents!
Wealthy financial consultants: Carista Luminare-Rosen, Ph.D.,
Educational Director of Inner Securities and Holistic Wealth Consultant,
Stu Zimmerman, Chairman & CEO, Inner Securities, Gregory Wendt,
CFPÒ Money Manager and Certified Financial Planner, and
Judith Green, Mortgage and Real Estate Financial Advisor.
of this month's LIVING WEALTHY Candidate:
Name- Jacquie Cho ( not her real name)
Age - 49
Single/divorced- divorced 15 years and not remarried
Children - grown, independent
Profession - auditor with state agency
Income - $65,000
- $35,000 vested retirement, $10,000 savings
One Year Life Goal - To see my mother settled comfortably
in assisted living
Five Year Life Goal - To have money coming from sources
other than my job
Ten Year Life Goal - To know I have enough to be able to
choose to retire
Deepest Heart's Desires - I want to be in an intimate relationship
Fear/Insecurity about Money - I will not have enough money
seeks help, in her own words:
mother has been an example of independence for me. After Dad died
ten years ago, she even bought another rental house to add to
the three properties they had bought together. She's been slowing
down, though, and now she wants to sell the houses and move into
a retirement community. Her health seemed good until she had a
heart attack last winter. Now she feels that her remaining time
is limited, although she might still live many years.
She has asked
me for help in figuring out her future. I'm her only child, and
we live in the same town and talk to each other every few days.
One of her friends just decided to cash everything in and buy
fixed income securities. Another friend of hers just got a reverse
mortgage, so she has been looking at these alternatives.
Mom has four
houses, each now worth about $250,000. They've appreciated a lot,
and now might be a good time to sell, but she's been living off
the rental income, and I don't know if bonds or annuities can
replace that. I've also wondered about buying rental property,
since they've done well for her. I don't have money for a down
payment, though. I've been a renter since my husband and I divorced
fifteen years ago and sold the house to settle our finances.
like you are very devoted to your mother and she is lucky that
you are so available to assist her as her health becomes more
challenged. Without your dad around, and being an only child,
I wonder how emotionally free you feel to choose your role
in supporting your mom. The oldest of the "old population",
85 and older, is growing faster than any other age-based segment
of the American population (U.S. Census Bureau). With rising costs
in residential health care, you are not alone in being a primary
caretaker of an elderly parent. Not all children are able to care
for their parent's emotional and financial needs as they age and
become more dependent on family support.
your concerns for your mom, it is perfectly natural to do everything
you can to "figure out her future." Make sure you are
honoring your own short and long term needs equally
as well. Too often, family members compassionately respond to
each other in times of crisis. Yet, when the health care necessities
become long term, many family members are more vulnerable to enter
into a co-dependent relationship. With awareness, you can always
re-design the functions of your roles if they become unfavorable
for anyone involved.
There is a
user-friendly definition of co-dependency I like to offer
my clients to help them clarify if they are in undesirable dynamics
-- financial, physical or emotional. If you are in a relationship
where your way of giving is either healthy or unhealthy for the
other person, but clearly UNHEALTHY FOR YOU, and you continue
the same behavior/pattern between you, this is the essence
of co-dependency. In caretaking another, the question to ask you
is, "What is healthy for me as well as the other person?"
So, I ask
you: Is it healthy for you to help your mother financially
set up her assets for her future or yours? Perhaps bringing in
an independent financial advisor may support both of you so that
you don't burden yourself while ensuring that your mother gets
the advice she needs. With all your interactions with your mom,
including how often and when you talk to and visit her, you can
ask yourself a two-part question: "Is this healthy for
Mom?" And, "Is this healthy for me?"
both of you are assured of giving each other the support that
brings out the best in your relationship, and expanding your support
circle to include those who can assist each of you to live the
balanced inner and outer life you desire.
Luminare-Rosen, Ph.D., Director of Education, Inner Securities,
Inc. To contact Carista directly to share comments or for a consultation,
she can be reached at Carista@Innersecurities.com
or visit the website www.innersecurities.com.
I would like
to help you move past your biggest fear you mentioned in the profile:
the fear of not having enough money for your retirement. For so
many people, and over 76 million Baby Boomers are retiring over
the next several years (US Census Bureau), this fear is based
on financial reality. In your case, is this fear based on fact
You seem to
have a close relationship with your mother and you are her only
child. It stands to follow that you will probably inherit a significant
portion of her assets upon her passing, which could be ample for
your retirement needs. You and your mother should consider consulting
with a family attorney that specializes in trusts and estates
to ensure that her property and holdings pass through to you in
a tax efficient manner.
I also want
to support you in fulfilling what you wrote as your deepest heart's
desire to be in an intimate relationship. You really don't disclose
much about your personal life, so I can only ask you some broad
questions to consider. If being in an intimate relationship is
so important to you, how do you make it a priority in your life?
What actions are you taking to be in the position to meet possible
mates? If you are dating, do you let your date get to know the
"real" you? Does any pain from your marriage that ended
in divorce stand in the way of being involved again?
your deepest heart's desires, you need to be honest with yourself.
Based upon what you have shared about your concern for your mother,
the plain truth is that you are a loving, caring person who deserves
to be in an intimate relationship. If you can just rest in that
fact, then you may choose to take some new action steps to have
a more fulfilling love life... just because you do deserve it!
And, Jacquie, perhaps your next step can be to do something loving
just for your self. Give yourself an allowance!
Chairman & CEO, Inner Securities. To contact Stu directly
for a consultation, he can be reached at Stu@innersecurities.com
or visit the website www.innersecurities.com
You are fortunate to see, through your mother's example, some
of the benefits of rental property, and yes, you should consider
this for yourself as well. You don't say what the properties cost
in the first place, but if she owned them an average of 15 years,
she and your dad probably bought them for around $100,000 each.
(This assumes an average of 6% appreciation per year. In some
areas, appreciation has run much higher.) That means the properties
may have gained as much as $600,000 more than their original value
just through appreciation, and that creates financial options
for your mother's retirement.
As you help
your mother through this transition, you have an interesting opportunity
to help each other financially. Many people find the down payment
to be the biggest psychological and/or financial obstacle to purchasing
property, especially rental property where lending guidelines
are more restrictive than for owner-occupied property.
If your mother
is willing to sell to you, she could help by carrying a portion
through holding a note for a second mortgage. Your new purchase-money
lender will bring in a large chunk of new money to cash out the
first 75% or so of the house value, and your mother can carry
the "down payment" portion, allowing you to finance
100% of the property. You and your mother can discuss interest
rates on this type of loan, but I suggest that you see what a
bank would charge, and use that rate as a guideline.
on your mother's monthly cash flow needs, she might even consider
deferring monthly payments for a time, while you adjust to the
financial realities of being a landlord or homeowner. For example,
on a $250,000 house, your new lender would be bringing in $187,500.
If your transaction costs ran 5% (including a modest transaction
fee to a Realtor or attorney, and the costs of your new loan),
your mother would get $175,000 cash in hand, per house. On your
side, the monthly payment on a $175,000 mortgage is probably less
than what renters expect to pay. Remember to look at interest-only
mortgages. For example, $175,000 at 6.5% simple interest is less
than $950 per month. That's a way you can manage your monthly
cash flow and get into property.
of caution: if your mother wants to stay in her primary residence
a little longer, and she's considering a reverse mortgage, encourage
her to explore other alternatives in house financing. The reverse
mortgage is more costly and much more restrictive than many other
mortgage products that are available these days.
a mortgage and real estate financial advisor, specializes in problem
solving for clients with more complex or non-traditional lending
and credit issues. She can be reached for comments or to request
a consultation at email@example.com.
In order to
make your decisions easier, you need to determine some of the
costs associated with your goals.
For your Mother's
needs, I suggest that you visit a number of assisted living facilities
in the area close to you to evaluate the quality of care and the
range of costs. Once you have determined the cost of your mother's
living expenses, you can explore all of the avenues suggested
by Judith to finance a comfortable retirement for this period
of your mother's life.
As far as
your goals of extra income and retirement in 10 years, you need
to begin taking action right away. If Judith is correct that you
are able to purchase a property and enter a financing arrangement
where your mortgage is equivalent to your rent, then it would
be a great start in accumulating a retirement nest egg because
your dollars for rent are now going toward equity in your home.
Secondly, if you are able to rent out the properties, you may
be able to derive some additional income beyond your employment.
however, is that in ten years you may not have accumulated enough
equity in your property to meet your retirement income needs.
I suggest that you meet with a financial planner to work through
meet with a financial planner, you will need to gather some information.
You will need to determine the amount of money you spend now and
based on that, you can estimate what your expenses will be in
have estimated the amount you need to live on in retirement, you
should look at the income side of the equation. To begin with,
your employer may have some retirement benefits and/or pension
available to you. Contact your employer and the social security
administration and request an illustration of your projected retirement
income. The difference between your expected expenses and the
retirement benefits is the amount you will need to cover with
your savings and investments. If you decide to purchase the real
estate, at some point in the future you will be able to estimate
the amount of income available to you in 10 years.
If you have
difficulty with estimating these figures you can discuss them
with your financial planner. Your financial planner will be able
to determine how much you need to have saved at retirement in
order to cover the difference between your estimated income and
expenses. From that calculation, you financial planner will be
able to create a savings schedule for you. If it looks like you
have a shortfall and you are not able to save enough to retire
in 10 years, you will need to explore other avenues to make up
the difference between your savings and your retirement accumulation
You can begin
today by finding ways to increase your current income and/or reducing
your current spending so that you are able to save more for your
future. If that is not enough, you should to consider working
for a longer period of time beyond 10 years.
The good news
is that you are moving in the right direction and asking the right
questions now. Good luck!
Premier Financial Management, LLC
Investment Portfolio Management, Comprehensive Financial Planning,
Socially and Environmentally Responsible Investing
If you want to be considered as a candidate for this Living
Wealthy column, go to www.innersecurities.com and click on
"LIVING WEALTHY." Fill out the "Living Wealthy Profile"
and "IS Quiz" and return to firstname.lastname@example.org.
For more information
on the Living Wealthy team, visit www.innersecurities.com
or call 707-425-2360.
WEALTHY - November 2004
China is building
at a Biblical pace, eating up basic materials with insatiable
growth. Meanwhile, metals companies are raising prices and stepping
up growth, but are having difficulty keeping up with demand. Opening
up new production in the mining industry is about as easy as painting
a big red stripe on Mona Lisa, so, for the foreseeable future,
demand pressures favor the metals industry.
Rio Tinto, hit $111 this month on the news of rising prices! If
you bought when we first featured Rio Tinto in May at $89.60,
hang on for more anticipated gains. If you're thinking to buy
in now, near the ten-year high, you may find a better buy-in opportunity.
Though the metals sector is not expected to taper off, the market
indices may present a buying opportunity for you to get in at
a better price. Threats of terrorism, mixed economic numbers and
oil prices, etc. have kept investors on a share price rollercoaster
this year. A rising tide lifts all ships, but a sinking tide definitely
grounds them as well. It is difficult for a company to buck the
downward trend, and Rio Tinto may suffer from the current downtrend
of the Dow Jones Industrial Average.
Straszheim Global Advisors likes BHP Billiton, an ADR traded on
NYSE under the symbol , BHP. "It is a broadly based company
that sells all kinds of commodities… all of the colored metals,"
according to Mr. Straszheim. BHP is located in Melbourne, Australia,
an economy many U.S. capitalists are currently investing in.
is trading around 21. Revenue grew 43% in fiscal year 2004, over
2003. BHP Billiton's P/E is one of the lowest in the industry,
the P/E to growth ratio suggests that the stock may be undervalued
and institutional holdings increased significantly on October
22, 2004—all positive signs. NataliePace.com is adding this stock pick
to our Buy List Now, at $20.64.
For a Great
recap of how the markets have performed over the decades, check
summary at the following link:
- Suppose you were an
idiot. And suppose you were a member of Congress...
but I repeat myself. Mark Twain
- I contend that for
a nation to try to tax itself into prosperity is like a man
standing in a bucket and trying to lift himself up by the handle.
- A government that robs
Peter to pay Paul can always depend on the support of Paul.
George Bernard Shaw
- A liberal is someone
who feels a great debt to his fellow man, which
debt he proposes to pay off with your money. G. Gordon Liddy
- Democracy must be something
more than two wolves and a sheep voting on what to have for
dinner. James Bovard, Civil Libertarian (1994)
- Foreign aid might be
defined as a transfer of money from poor people in rich countries
to rich people in poor countries. Douglas Casey, Classmate
of Bill Clinton at Georgetown University
- Giving money and power
to government is like giving whiskey and car keys to teenage
boys. P.J. O'Rourke, Civil Libertarian
- Government's view of
the economy could be summed up in a few short phrases: If it
moves, tax it. If it keeps moving, regulate it. And if it stops
moving, subsidize it. Ronald Reagan (1986)
- Talk is cheap . . .
except when Congress does it. Unknown
- The inherent vice of
capitalism is the unequal sharing of the blessings. The inherent
blessing of socialism is the equal sharing of misery. Winston
Christopher Howard, entrepreneur and internationally acclaimed
are the Secrets to Having It All?
have dreams and desires for our lives. Why is it that sometimes
we get what we want and sometimes we don't? Why do we start out
in the direction of our goals only to find ourselves off course
or falling short of what we know we are capable of? And more importantly,
how can we consistently accomplish the goals we set along the
path to living the life of our dreams?
Howard President of The Christopher Howard Companies author
of Three Steps to Wealth and Power
some of the questions I began asking myself at a time in my life
when I was $70,000 in debt, living in someone else's garage apartment
and feeling I had few prospects for my future. I had already read
all the bestsellers on personal development and taken countless
seminars so I knew what to do, just not how to do it. Finally,
I got so incredibly frustrated that I was spurred to take the
immediate action that would change my life for good. I asked myself,
"What is really the difference between those people who have
wealth and power beyond their wildest dreams and those who live
from paycheck to paycheck?" Because the mind always seeks
resolution, that one unanswered question sent me on a quest to
study the great leaders in every field, from billionaire Richard
Branson to Martin Luther King, Jr. From my research I developed
my system of Speed Modeling™, which allows anyone to replicate
the results of those high achievers they admire most.
go through life believing they have to cope with themselves as
they are and life as it comes because, "That's just the way
it is." The scientific fact is, reality is subjective and
therefore, you can actually create your life however you want
it. You can forever transform the aspects of your personality
and behavior that no longer serve you. The answer to the question—what
sets successful leaders apart—is their mindsets, attitudes, strategies,
behaviors, beliefs, and values. I developed Creation Technologies™
as a specific set of tools that literally re-patterns thinking
on a neurological level to replicate the thinking and behavioral
patterns of success. The Christopher Howard Companies were then
established to give individuals and organizations that set of
techniques to turn their dreams into realities and passions into
It's the nature
of humans to do things better, quicker, and faster. Prior to Roger
Banister, running a mile in four minutes or less was considered
physically "impossible." When Bannister broke the record,
he also broke through the commonly held limitations of people's
thinking. Now high school and college students are breaking that
barrier everyday. The same thing happened when Chuck Yeager broke
the "sound barrier" flying the X-1. Where there was
once a thought pattern or belief "that could never be done,"
we have now discovered ourselves capable of flying even further
and faster. Just as we are making major advances in the areas
of science and technology, we are leaping forward light-years
in the field of human potential. The fact is we can each break
through any of our own internal "barriers" to personal
power to achieve beyond what we previously imagined possible for
How? The specific
tools of Creation Technologies™, including Speed Modeling™,
ask a different question. If traditional psychology is the study
of "What's wrong - and why?" then Creation Technologies™
are the study and practice of "What's right - And how can
we reproduce it?" If there is anyone achieving the results
you desire for your own life, then it is possible for you to "download"
and "install" the personality factors that made their
key to taking control of your destiny, is taking charge of where
you focus your attention and time. William James, the grandfather
of American Psychology, once said, "Focus is everything.
It determines everything in an individual's life. My deep regret
is that it seems to be too difficult to teach." Well times
have changed… You can get in charge of your focus and therefore
masters of their focus. They train themselves to be present in
each moment so that they are ready to make the best of those moment-to-moment
opportunities, yet strategize the future. A soccer player running
down the field towards the goalpost knows what he wants and the
most direct route to it. If he dwells for even a second on the
last goal he missed, he might not see that split-second opening
between the two players in front of him. He not only has put a
picture in his mind of what he doesn't want [another missed goal],
he's missed a valuable opportunity in the present by staying in
the past. This same ability is essential to success our business,
financial and personal fulfillment. All of our power to create
what we want is always in the present. When you learn how to redirect
your focus to what you want rather than what you don't want, the
possibilities for your life are as endless as your imagination.
Howard is an entrepreneur and internationally acclaimed results
coach. He is the author of Three Steps to Wealth and Power. For
more information about Chris Howard and his upcoming seminars,
check his website at: www.powerofinfluence.com
Or in Australia
California --Breakthrough to Success--November 5-7
New York, New York -- Breakthrough to Success--Nov. 12-14
From the Pros, to Print Out and Keep In Your Wallet.
smart. "Good investors, like good drivers, anticipate
potholes, lean in on turns, have enough cash on hand to fill
up the tank, and race confidently on the open road, while everyone
else is sleeping." Natalie Pace, founder of NataliePace.com, "wisdom"
it Simple, Stupid. "I don't try to jump over 7-foot
bars: I look around for 1-foot bars that I can step over."
Off Season. "Be contrarian. Buy "straw hats in
January," when no one else wants them and prices are lower."
Luck. "Don't confuse wisdom with a bull market."
Low/Sell High. "Nobody likes to buy low and sell high.
They like to buy high and sell higher." Ben Horowitz, CEO
of Opsware, Inc.
Bagging. "The way to make money is to Buy When There
is Blood in the Streets" John D. Rockefeller
"If you want to succeed you should strike out on new paths,
rather than travel the worn paths of accepted success."
John D. Rockefeller
Contests. "Don't buy into a stock that has hit it's
first high in a long period of time. Holders are going to jump
ship!" Rance Mashek, President, SpreadTrader
Return of NASDAQ. "Technology stocks are going to be
one of the major sources of profits for a long time." Frank
Husic, Husic Capital Management
"If you don't study any companies, you'll have the same
success buying stocks as you do in a poker game if you bet without
looking at your cards." Peter Lynch
Divorced and Desperate to Dream Come True :
Natalie Pace, founder and CEO of NataliePace.com.
sucks. Your dreams are shattered. Your expenses double. Guilt.
You're afraid that only creeps get divorced (that's your new dating
pool, plus, you're one of the creeps). To make the situation worse,
you probably can't afford your home anymore.
it is during a crisis when most of us start thinking about our
finances. When you're swimming happily through life, why open
401K statements? They're not bills after all. You can file them
directly in the cabinet without fear of debtor's prison.
It might surprise
you to learn that the average age of widowhood is 56 (Waddell
& Reed, 1997), or that 33-39% of married couples will end
up divorced within ten years (National Center for Health Statistics).
When a life crisis comes at you, and it will, you will feel so
overwhelmed with responsibility, fatigue, hopelessness, time constraints
and grief that the temptation to trust in strangers on serious
and consequential matters will feel like a matter of necessity.
In fact, that is the time to trust your instincts most. That doesn't
mean all of your choices will pan out perfectly, but you will
be on the right path.
I thought. I'll be home for my kid after school! How naïve
I was. When you consider that teachers don't get paid to be at
school early, or to stay late and grade papers into the middle
of the night, my caregiver was earning more per hour than I was.
years of teaching, I was so far behind on my bills that the county
was threatening to put a lien on my one asset--my condominium--in
order to collect the property taxes that I owed. My credit card
debt had blossomed into a nuclear waste dump that I stored on
the top of my refrigerator--so toxic that it made your eyes bleed
just to pass by. Needless to say, I was an emotional wreck, and
I could only approach the nuclear fallout of which bills to pay,
which companies to plead with and which to completely ignore on
the nights when my son went with his father. How could I let things
get to this point? What kind of world expected me to work all
day to pay basic necessities without having a latchkey kid who
turned to drugs or television for comfort?
doesn't pay the bills. I got an executive level position at a
nationwide phone company. The salary was double that of a teacher's
and the hours, though longer on paper, were MUCH less.
At the same
time, the wonder of investment cycles began to work in my favor.
In 1998, at the time of my divorce, I was locked into a home that
I couldn't afford, couldn't sell, and couldn't rent. Real estate
had been depressed for most of the 1990s, and my mortgage was
underwater, due to a series of Los Angeles disasters--the Rodney
King riots, the Malibu fires, mudslides and the Northridge earthquake.
(Diversify!) Things were so dire, that, in 1994, you could have
bought a home north of Montana for $750,000. (In 2004, you couldn't
buy a termite-ridden hut for under $1.7 million.) By spring 2000,
however, the Los Angeles real estate market came roaring back.
I borrowed money, gave my crappy little condo a new coat of paint
and new carpets and sold it for a small profit.
nine years by real estate, I turned my eye to Wall Street. You
could have thrown a dart at a wall full of stocks and found a
winner in 1999, and cocktail parties were abuzz with people touting
On a breezy
Santa Monica lunch period, I met with Steven Snappy, a certified
financial planner, NASD and SIPC. Steven drew up a pie chart telling
me that if I tossed my real estate profits into a bowl of mutual
funds, and dumped in an additional $500/month, that I'd churn
up a minimum of 12-15% return. "That return," he said
in a whisper, behind a cupped hand, "is VERY conservative."
(Never mind that I'd have to give up eating to afford the $500
per month!) His mutual fund brochures (which I still have) boasted
up to 43.24% returns on funds anchored by AOL, Global Crossing
and Enron, to name three. These brochures quoted returns from
March of 2000, at the stock market high, something Mr. Snappy
neglected to tell me, even though our meeting occurred in September
of 2000, after NASDAQ had already tumbled about 40%.
When I met
Steven Snappy, I thought P/E was the company in Erin Brockovich.
I had no idea what Cisco did. I did know, however, that the telecommunications
companies were overbooking revenue. I was on the phone daily trying
to get hundreds of thousands of dollars worth of credits from
a major company that had been over-billing my company at triple
the contracted rate for ALMOST A YEAR. If telecommunications companies
were cooking the books, what other companies were doing it?
became very impatient with my questions. It was perfectly easy
to see from his charts that the mutual funds he was recommending
were amazing! By diversifying, I would be protected from the fluctuations
of any one sector. How hard was it to see that! Besides, he was
making a HUGE, UNAUTHORIZED exception for me by lowering the minimum
buy-in. If my money sat in savings at 4-5% interest that was less
than inflation. We were talking TEN times GAINS in upside potential!
Just what was it that I didn't understand? (If you ever hear someone
talking to you like this, remember s/he is a SALESMAN, not an
investment genius! RUN!)
There I was—a
professional woman in sharp, new clothes, who had a pen poised
to sign a slew of documents that I didn't believe in because I
wanted some sleazy salesperson to approve of me! Think fast!
Gore was campaigning
on eight years of prosperity, and how he was going to be the candidate
to continue it! "Not with less than 50% of the vote," I thought.
It didn't matter whether Gore or Bush was elected, over 50% of
the nation wasn't going to be happy about it. In fact, who could
continue eight years of prosperity? And didn't it take a few years
for the rookie in office to figure out how to get anything done?
How could technology companies, like Amazon.com, operate for YEARS
in the red? Too many red flags.
kept calling, nagging me to sign the documents. I was too busy
researching the P/Es, P/E/Gs, Debt/Equity ratios, and 10-Ks of
my favorite companies to take his call. I didn't make much money
in 2000 in interest, but cash turned out to be the top performing
asset class of the 2000 recession. Since then, I've had extraordinary
gains in the markets, and founded my own multi-million dollar
that I didn't lose all of my money with Steven Snappy, but the
most important gain that I received that year was confidence.
When you have nagging doubts, that is your heart begging for more
information. Trust that your uneasy spirit knows something. By
prospecting into the heart and soul of your concerns, you will
discover USEABLE INFORMATION, and knowledge and wisdom is always
the best place to make decisions from. Interesting that the first
place I found gold was in my heart and intuition. Bet on your
heart and prosper.
is from the book, Inspiration to Realization, compiled by Christine
Kloser. If you wish to order the book, which includes the inspiring
stories of over 40 incredible, successful women, contact Christine
PO Box 661274
Los Angeles, CA 90066
If you want
to start watering your money tree with wisdom, NataliePace.com is currently
offering 30% off our subscription rates. So, for less than one
night on the town, you can get smart all year about real estate,
stocks and bonds, have access to our stock picks (which are significantly
outperforming the market indices) and chat one-on-one with the
financial consultants and money managers of millionaires. JOIN
NOW and receive a bonus gift of Smart Math software to track
all your capital gains. (Does the math for you.) Cost: $54.00
(value: wisdom is priceless)
VISION: To build
a global community of investors through a worldwide website, seminars,
radio, television and print partners.
GOAL: To provide high-quality, first-run, ethical financial news,
information and education, presented in an entertaining format,
across all media (television, radio, print and online).
MISSION: To provide the news, information and education investors
need to make better choices and to make investing as much fun
PHILOSOPHY: Member Mosaic. Piecing together a more complete picture
of the publicly traded company, one tile at a time, by valuing
firsthand consumer experience, conducting evaluations of the executive
team and lining up the numbers of the publicly-traded company
with its competitors in a Stock Report Card.
For more information on NataliePace.com contact us at info@NataliePace.com
NataliePace.com is NOT a stock brokerage service, and does not operate
or act as one.