Sunday, September 30, 2007

Estate- How To Lower The Price of Gas

Gas prices seem near all-time highs and the summer driving season hasnt even started yet! A recent email presented a simple solution that will force gas prices back to the $1.25 a gallon range. Read on for details and to learn basic principals that may make investing more profitable.

Have you ever received one of those chain emailsthe kind where you are supposed to forward it to 10 of your friends? My wife received one this morning. The email contained the simple solution to the gas crisis. Supposedly, the solution was created by a high-level executive at a major U.S. corporation and an engineer that worked for an oil services firm. These guys should know their stuff, right? Wrong.

The solution proposed was that we should all decide to stop buying gas from ExxonMobil. If we stopped buying gas from them then they would be forced to lower gasoline prices to tempt us to buy from them again. The email said that we consumers need to teach the Big Boys that we are in charge, not them.

The Laws of Supply and Demand, the basis for capitalism, are taught in Economics 101. The law says that the market price of a good or service will be determined based on how much of it is available and how much buyers are willing to spend for it. This principle is one of the underlying reasons that bond, real estate and stock prices move up and down.

Lets look at salt as an example. In centuries past, salt was hard to come by and many people needed it. At one time it was so valuable, it was worth its weight in gold.

Thats not the case nowadays. Salt is very inexpensive. The container its sold in probably cost more than the salt inside it. Why? Because the supply of salt is high and the demand for it is low. Salt is easily mined in vast quantities. Also, refrigeration and the use of other preservatives drastically cut demand.

This supply and demand law is the reason the simple solution to reducing the price of gasoline cant work. First, gasoline is a commodity product with a limited supply. If you only switch the outlet from which you purchase gasoline, you arent reducing the demand. The same amount of gasoline will be sold, keeping demand, and therefore the market price, level. It may hurt ExxonMobil but will help someone else.

Reducing the price of gasoline by decreasing demand will require that people use less gasoline. That means we need to carpool, ride bicycles, walk or drive more fuel-efficient vehicles. In the last year or so weve seen that demand remains strong even when prices rise by a dollar or more. So demand probably wont change until prices are much higher than they are today.

Second, the simple demand solution doesnt take into account the fact that there is a global market for oil. Gasoline is produced by refining oil. ExxonMobil doesnt set the price of oil, the market does. Even if demand is reduced in America, the demand elsewhere continues to increase. The demand in China and India is growing so rapidly that prices will go up even if we cut back here in America.

Third, the supply of oil must be factored into the equation. There hasnt been a discovery of a major oil-field in decades. The amount of oil pumped from an oil-field doesnt stay the same. It will naturally decrease over time. There have been improvements made in getting the oil out of the ground, but overall, the number of barrels a day pumped is declining. For instance, did you know that the production of OPEC is lower today than it was in 2005?

So this simple solution obviously wont work. I believe that there is little we can do in the United States to significantly lower the price of oil. There simply isnt enough oil to meet the needs of the world economy. Understanding that affects how I manage my clients portfolios.

As an investor, understanding the Laws of Supply and Demand will help you select where you should invest. Avoiding industries where supply is increasing faster than demand will reduce your losses. Investing in industries where demand is growing faster than supply can increase your profits.

Nationally-syndicated financial columnist and Certified Financial Planner Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. Hell answer your financial question FREE at

10 Proven Tips for Stock Market Trading

The internet is jam packed with so-called independent experts who claim that they made a fortune trading stocks. They are only too willing to share those tips with you for a price. Maybe you recognize the name of the expert, maybe you dont. Which expert is right? Here are 10 tips common to the best stock market trading strategies.

1.Set financial limits. Dumping all your cash into a stock hoping for fast return is not investing. You might as well put that money on a horse in the fifth race and admit to gambling. Stock market investors decide how much money to put at risk before buying.

2.Buy low sell high. Thats the tried and true formula for making money in the stock market. The problem is determining those points. No magic here, just plenty of analysis and research to achieve that simple yet elusive goal.

3.Price rules, value drools. The best research may show that a stock is undervalued or overvalued but the proof is in the price. For totally absurd reasons a stock price may rise or fall regardless of what you and the experts believe is the value. As with anything, the actual price is what people are willing to pay.

4.What goes up, comes down. Even a Cinderella stock on a wild ride to the top is headed back to the bottom when the clock strikes midnight. Online stock traders must get off with some profits before riding their pride to a crushing loss.

5.Change happens. Stocks are subject to directional swings that make no sense. The trends may show it or the change may be due to external events. Either way, smart online stock traders live with it and move on. Asking why is not as important as deciding what now.

6.Yield for Curves Ahead. Once a market move is evident, watch for the direction and duration of the trend. Generally a trend move during a bull market is more likely to be positive. A trend move during a stalled or bear market is more likely to be negative.

7.Says who? The internet is jam packed with stock market trading advice from software vendors, online trading firms, stock market newsletters, analysts and people who want to make money from you. How reliable is their advice? Keep a healthy skepticism about whose advice you use in making trading decisions.

8.Expertise is no substitute for Instinct. If technical tools alone made for success than the market would be packed with millionaires. Instinct leads the pack when analysis shows up a day late and a few dollars short.

9.The Efficient Market does not exist. The Efficient Market Hypothesis is a myth. The idea that the stock market will benevolently work itself out from peaks and valleys to a level playing field only works in textbook models of capitalism.

10.Be True to Your School. Consistently apply your trading strategy. Flipping strategies only leads to confusion. If the latest hot tip does not fit your trading strategy, its not for you.

Get your Momentum Stock Trading System and sign up for my free weekly online trading system newsletter here at:

All About The Stock Market

Does stock trading interest you? If it does, here are a few items to consider before jumping into the stock trading arena. First and foremost, what exactly is a stock? A stock is a representation of a share in the ownership of an incorporated company, you essentially own a piece of the company. When you purchase a stock, you are given the opportunity to watch the company and stock grow or decline. This is why research is needed before you begin purchasing stocks. You should always research the company , look at the trends of the company and the industry that the company is in. If you completed your research thoroughly, you can stand to earn a profit, given the industry that you picked is growing. Always be aware, the industry could turn at any moment and you could end up losing money.

Essentially the goal of stock trading is to earn a profit, this is done by purchasing stocks when they are low and trading them when the stock grows. Here are four different ways to go about trading stocks;

Scalping - Scalping involves buying large quantities of shares in a stock, and you are just looking for a small move in the stock price.

Day trading - Day trading is similar to scalping but you are looking for bigger moves in the price, and you do not hold the stock overnight.

Swing Trading - Swing trading is when you buy a stock and hold it for a short period of time looking for a substantial move in the price.

Buy and Hold - Buy and hold is when you plan on holding on to the stock for a long time. You believe the company is going to grow in value and the price is going to go much higher.

When you enter into the stock trading arena, you need to decide which kind of stock trader you would like to be. They all have their good and bad attributes, it just depends if you are looking for short term gains or long term gains in the stock market. We specialize in training you to become successful with Forex & Stock Trading! To gain an education in Forex and Stock trading, please take the time to visit us!

Investing Mining Stocks and Warrants

The Canadian Dollar is now one of the strongest currencies in the world and there have been many forecasts of parity with the U.S. Dollar and as of today, the Loonie is trading at 90.35 as we write this article.

The first and second charts below shows the strength of the Loonie over the last year and the third chart is of the XAU Gold Index. Observe the long term trends in all of the charts.

For investors around the world how can you best position yourselves to benefit from the rising value of the Canadian Dollar?

If you are like many of us, you are currently participating in the bull market in the commodities sector, specifically, in the precious metals, i.e., gold, silver, copper, zinc, etc. If you are not on board this rally perhaps we can enlighten you to some different ways to benefit not only from the Canadian Dollar but also from your investments.

When an investor purchases shares in the Canadian mining companies you are in essence invested in the Canadian Dollar. With the Canadian dollar increasing relative to your countrys currency, your investment is increasing. As the value of your Canadian investments increases, you win again. Thus, you gain from the increasing in the currency as well as the increase in your investments in the mining shares or perhaps, long-term warrants on the mining shares.

The point is, currently investors are experiencing the best of both worlds and we would expect this trend to continue with normal corrections along the way for at least several more years.

We, as investors ourselves, prefer to defer to the experts, Jim Dines, Doug Casey, Pam & Mary Ann Aden, James Turk and others as to the continued direction and strength of the current bull market.

Perhaps you are a conservative investor and neither you nor your investment advisor are currently aware of the bull market in the commodity sector. We believe that soon, within the next few months or within the year, you, yes, you will be investing in this sector, so the choice is yours, now or later.

Investors have many wonderful opportunities for investments from the gold and silver bullion, ETFs of gold and silver, mutual funds, mining shares and for those investors looking for additional leverage, long-term warrants on mining shares, some of which do not expire until 2011.

As the experts mentioned above believe, this bull market has strong legs and many years to run, we accordingly suggest investors position themselves and not to worry about the day to day fluctuations of the market.

The important thing for all investors is to recognize the big picture, take a position and enjoy what may be the ride of our lifetime.

Dudley Baker is the owner/editor of Precious Metals Warrants, a market data service which provides you with the details on all mining & energy companies with warrants trading on the U. S. and Canadian Exchanges. As new warrants are listed for trading we alert you via an e-mail blast. You are provided with links to the companies' websites, links to quotes and charts, tips for placing orders.

Kuala Lumpur Stock Market Outlook - Forecast for the day - 04 July 2007!

Dow rally and strength of ringgit keeps index alive. Re-enter property, construction stocks.

Technically speaking:

1. As at Tuesdays close at 1373.14 the KLCI was higher by 8.77 points or 0.64%. Gainers led losers 642 to 273. Volume traded reached 1.23 billion shares

2. Technically, many property, oil and gas and construction stocks were stopped out on Monday like EQUINE, SUNCITY, KEURO, E&O, E&O-WA, PLENITUDE, EDEN, FAVCO, SAAG, etc.

3. Some of these rebounded yesterday, but we were not wrong in calling for a buy on other property, construction and oil and gas stocks that triggered a buy.

4. Stocks like BRDB, YTLLAND and YTLLAND-PA were excellent.

5. We were also right about MRCB, BURSA, COMMERZ*, BURSA-CB, COMMERZ-CA, COMMERZ-CC*, GENTING-CB and new stock GENTING.

6. There is once again resurgence in interest in IDR stocks from the southern corridor yesterday. Stocks such as UEMWRLD, TEBRAU, EKOVEST are awakening again. So are other property stocks like MKLAND, SUNWAY, SUNWAY-WA, HUNZPTY, BRDB, FABER, etc.

7. Construction stocks like MRCB, GAMUDA, UEMBLDR, etc are also attracting buying interest.

8. In short see a resurgence of buying interest in many stocks, triggering buy signals in many of them. If we were stopped out of some of them, a chartist would re-enter buy.

9. GENTING was once a sell, but now its a buy again, and we would not hesitate to go with the flow to buy GENTING and its warrant. So is COMMERZ, AMMB, BURSA, MRCB, TEBRAU, UEMWRLD, UEBLDR.


11. Also, we would want to mention here that we expect the positive Dow to keep the KLCI strong. Hence longer-term investors would like to hold onto stocks, as we see the Dow hitting 14,400 and our KLCI hitting 1494.

12. The ringgit closed slightly lower yesterday, from 3.4320 to 3.4440 or 120 pips, but news of the Malaysian government determined to keep the ringgit strong, and CNN News advocating to buy the ringgit vs the U.S. dollar should help Malaysian stocks.

13. As the KLCI closed at 1373.14, higher by 8.77 points, the short-term buy signal is intact. CONCLUSION: We expect as a recovering Dow to rub off onto the Asian and Malaysian market this week. So far we are correct.

The KLCI stopped exactly at the lower Bollinger band support of 1348 and rebounded to close above it, at 1373.14. A breakout of the upper band at 1379 or higher today would be a good sign of a possible explosive rally.

Long-term Upside Targets:1492 (Target amended on 15/6/07).

Immediate downside targets: 1348/1319/1291/1222

Fred Tam is the owner of and F1 Trader Online - Know when to enter & exit the markets.

The Benefits Of A Mechanical Forex Trading System

Most everyone knows that a lot of money can be made in a short amount of time and with a relatively small amount of money (a few hundred to a few thousand dollars). Some people make a tremendous amount of money regularly in the forex market. But you need to have a proven system or systems. And, especially for new traders, the system or systems used should be easy to understand and easy to use. They should also be mechanical.

Why is it good to use one or more mechanical trading systems when trading forex? Because a lot of emotions can come into play, especially greed and fear, that can destroy even an experienced discretionary trader. To make money consistently you need mechanical systems that keep emotions out of the equation. Like Mr. Spock on Star Trek.

It is that emotionless, logical trading with mechanical systems that have been proven to work over months of testing that will make even the new forex trader a winner almost immediately. Emotion free trading is the way to go. You can be one of the best forex traders anywhere when using proven mechanical forex trading systems. You want systems that are easy to understand and use, and require only an hour or two of work a day to give you the freedom and time you need to enjoy the other activities of your life. Emotion free mechanical trading is essential for success!

By Roger Bovee, Editor And Publisher of Forex Trading Machine Blog. Grab Your Copy of GBP/USD Mechanical System No Cost Ebook That Averages 70 Pips Profit A Trade There Right Now! $39 Value

Saturday, September 29, 2007

Financial Futures - The Commodities of the Investment Business

Just as dramatic changes in the price of wheat affect farmers, bakers and ultimately consumers. So do changes in interest rates, the value of currencies and the direction of the stock market takes can send ripples and sometimes even waves crashing though the financial community. With the creation of financial futures, traders like pension and mutual funds investment managers rely on financial commodities to protect themselves against the unexpected. These traders are the hedgers of the financial futures market.

Along with the other futures markets that active with constant trading. Speculators buy and sell futures contracts depending on which way they think the market is going. World politics, trading patterns and the economy are the unpredictable factors in these markets. Rumors also play a major role. Financial speculators are no more interested in taking delivery of 125,000 francs, than grain speculators are in taking hold of 5,000 bushels of wheat. These traders are interested in making money on their gamble.

The large variety of financial futures contracts in the marketplace are always in flux. Like other commodities, they trade on specific exchanges. The Chicago Board of Trade's U.S. Treasury Interest Rate futures, is the nations most actively traded contract. Their accounts make up two-thirds of the exchanges business.

The details of financial futures trading, are recorded daily. The value of an index contract is calculated differently from other futures contracts. This is because the price index is two steps removed from the commodity. Instead of taking delivery of a contract, that is only numbers in a computer. Traders take delivery of the cash value of the contract.

Indexes, and futures contracts on these indexes, don't move in locked steps. When they are out of sync, index future contract prices will either move higher or lower than the index itself. Traders can make a lot of money by simultaneously buying contracts that are less expensive and selling the more expensive contracts. This technique is known as arbitrage, and the chief tool being used here, is a very sophisticated computer program that follows the price shifts.

To learn more about options trading and stock options trading then visit:

A Guide to Forex Courses

For anyone interested in forex trading, education is essential. There are many online forex courses. There are home-study programs, seminars, webinars, books, DVDs, free demo accounts and more. In fact, with all the information that is out there, it would be silly to begin trading without first educating.

Some of the best sites will, in fact, offer a complete package of forex trading courses that will take the beginners, who know little or nothing about forex trading, and teach them everything they need to know to become successful forex traders. In the home study forex courses, students learn vocabulary and types of orders. They learn to read forex charts, an important part of successful trading. The online forex trading courses teach investors to grow their accounts by determining market direction. Online mentoring provides access to a professional trader and one on one tutoring. A two day on-site forex course sometimes the program to reinforce everything learned.

Other interesting and helpful services that most online forex trading platforms offer is the demo account. The demo accounts are like a mini forex trading courses that will help new investors learn to trade quickly. These accounts are set up to work like a regular account, but the trades are not real. With no risk, you can learn to place orders and set stops, watch your profit increase (or your loss) as you watch exchange rates changing. These accounts also include charts with live streaming information. It is still wise to choose one of the many forex courses available, but when used along with a demo account (you usually get a 30 day trial) everything makes a lot more sense.

There are many books written on the subject of forex trading, but most of these focus on forex strategy. Before you can plan a trading strategy, you need to learn how to trade. Forex trading courses are far superior to reading a book.

It is commonly stated that 90-95% of all new traders lose their initial investment in the three to six months following their first trade. Sometimes even seasoned investors lose focus or forget to change their trading plan when indicators call for it and lose big.

Forex courses are no guarantee of big profits, but professionals agree that education reduces risk in an already risky market.

Click here to read about our recommended forex courses. Or learn more about forex at

Forex2u Forex Strategy On Successful Forex Trading

The essence of the FX2u Forex strategy is that it does not have any Forex trading system but could forecast the market trend accurately.

Every set of Forex trading system available has its disadvantages. The market trend could not be forecasted. If the market could be forecasted, by depending on the RSI, PAR, MOM analysis techniques and some other theories, Forex traders could easily make a fortune.

Many Forex traders could not obtain the anticipated outcome by using these analysis tools, and suffer huge losses. The main reason is relying on some imperfect tools to forecast the unpredictable market trend is just a waste of effort. Therefore the FX2u Forex strategy spirit is to abolish the entire subjective analysis tool.

To survive in the market is to follow the market trend, following the market trend is the essence of the FX2u Forex strategy. By using the opposite theory to enter the market, will only lead to lost. The reason is that if the market rises, it may continue to rise. If the market drops, it may continue to drop. No one is able to forecast when the market trend will stop.

By following the market trend, the market risk could be reduce to the lowest, the FX2u Forex strategy will advance the following the ten principles:

fully understand the how market function and the market trend, else dont trade

After entering the market, the Forex trader MUST immediately put a market stop.

If the stop order has been hit it MUST be executed immediately, NEVER make changes by lowering the stop order price.

If the forecast is wrong, Forex traders should leave the market immediately, then analyze again.

If the forecast is wrong, Forex traders should stop loss and should not increase trading.

Forex traders should admit mistakes, do not continuously make mistakes.

All analysis tools are imperfect, mistakes could always occur.

If the market rises Forex traders should buy, if the market drops Forex traders should sell, always follow the market trend.

Forex traders should not forecast the market price because such forecast will not be as easy as forecasting the market trend.

If the forecast is wrong, once the loss reach 10%, Forex traders must stop loss immediately, do not let it surpasses 10%, otherwise it would be difficult to recoup the capital again.

Alvin Han is the editor of;

Which Country Will Be The Largest Economy In The World?

Currently, the United States is the top economic power in the world, followed by Japan, Germany, China and France, respectively.

Will another nation eventually overtake the U.S. in this role? It has been speculated by some that China is destined to take the top spot in terms of economic GDP if it can continue its bustling double digit economic growth. This is possible, but there are several factors to consider.

A double digit growth rate generally only happens to a younger, growing economy. When a national economy matures, it generally settles into a 2-3% annual GDP growth rate. That is about what we see in the U.S. and many western European nations, for example. In recent years Ireland grew at a double digit growth rate but has since settled to a more modest growth rate.

The same may happen with China. Obviously, if it can continue such a high growth rate it will eventually overtake the U.S in this regard, but it will have to maintain this rate for some time. Since the U.S. economy is larger to begin with, China and other rival economies must sustain a considerable larger GDP growth margin in order to catch up.

But there are other factors involved as well. One is current trend of trade blocks, such as that of NAFTA. If you were to include Canada (a member of the Group of Eight leading Industrialized economies) with a huge economy in it's own right), Mexico (nearly ninety million consumers and very rich in natural resources such as Oil, Gold and Silver), and the various Central American nations which are seeking membership, this bloc would me much more difficult to catch up to in terms of market size and total GDP. In addition, there is a push in some circles for the FTAA (Free Trade Area of the Americas) which may one day include all nations in North and South America.

For that matter, the combined European Union is already a much larger economy than that of the U.S. The EU has some 450 million highly educated consumers compared to about 300 million in the United States, and it is adding new countries at swift pace. In any case, it should be noted that a number of top economists predicted back in the 1970's that both Japan and the Soviet Union would overtake the U.S. economy.

This of course did not happen, due to bank mismanagement in the former case and political dismantling in the latter. As i write this article, Yahoo news reported that 'China's stock market plummeted from record highs as investors took profits when concerns arose that the Chinese government may try to temper its ballooning economy by raising interest rates again or reducing more of the money available for lending.

The Shanghai Composite Index tumbled 8.8 percent to close at 2,771.79, its biggest decline since it fell 8.9 percent on Feb. 18, 1997. Since Chinese share prices doubled last year as investors poured money into the market after the completion of shareholding reforms, trading in Shanghai has been very volatile.' It is certainly possible that China could eventually be the top economy, but wise economic policies will probably be a biggest long term factor of whether or not this occurs.

Ryan Joseph is a writer/researcher. More news at

Friday, September 28, 2007

Creating And Maintaining A Mailing List

Starting to collect proper information to create a mailing list is not difficult, once you know how to proceed. In this report, uses for mailing lists are briefly described. The first steps in identifying the names that might be included on your mailing list are also outlined. Finally, the important concept of a database is introduced.


Mailing lists are a versatile tool that your business or organization can use to help achieve many administrative and marketing objectives.

1. In Daily Administration: For-profit and nonprofit organizations alike use mailing lists constantly in their day-to-day operation. Well-maintained mailing lists are required to efficiently carry out important activities such as:

* updating employee phone lists.
* sending company newsletters and special notices to employees.
* compiling membership directories.
* sending out newsletters to organization members.
* determining school bus routes.
* tracking and evaluating suppliers.
* monitoring contract commitments and schedules.
* alerting customers about warranty dates.

2. In Marketing: But it is in the marketing area that mailing lists can really make a contribution to the "bottom line." Much of the information in this report can be used for all list needs. Selling through the mail via a catalog is one basic example of a marketing application where a mailing list plays a very important role. The list is the source of names to which the catalog is mailed. Today, organizations of any size can benefit from using a mailing list in marketing functions.

Here are some other marketing uses for which a mailing list is a critical ingredient:

* Soliciting orders without incurring the expense of a direct sales call. (This can be particularly efficient for smaller accounts where the amount of the order does not justify the high cost of a personal sales call.)
* Generating and/or qualifying leads for your sales staff or for another direct mail effort. Using direct mail to qualify leads is another way to save on direct sales costs.
* Providing background information about your product or services. This type of effort can be used to generate leads, which are then followed up with personal or telephone sales calls.
* Reminding patients of the need for periodic checkup appointments.
* Conducting a fundraising campaign.
* Increasing the membership of your organization.
* Extending invitations to attend a public meeting, a seminar, or a special event.
* Following up on contacts made in personal appearances (at a trade show or seminar, for example).
* Announcing changes in company personnel, product line, pricing structure or location.
* Obtaining referrals from current customers or members.
* Reviving inactive accounts.
* Building good will with customers or members.

You will find that the administrative and marketing uses for mailing lists are almost endless. How many of the ones we've described above would benefit your business or organization?

In the next section, we will define the different types of lists you can develop.


From a business or organizational point of view, everyone is not equal. Just as a bird in the hand is worth two in the bush, existing customers are worth more than potential customers. The same principle applies to mailing lists. They can be divided into four types, according to the value of the names they contain:

1. Current Customer: Your list of current customers contains your most valuable names. They have already bought your products or used your services. They are the people or companies most likely to respond again to your future offers.

In this booklet we refer to these names as "customers." However, depending on your type of business or organization, the term "customer" can also include a whole range of people (or organizations) such as:

* clients of professional service firms.
* donors who contribute time, money or goods to fundraising campaigns.
* investors in a business or stock issue.
* patients of health care practices.
* policyholders in an insurance agency.
* members of an association, religious or cultural institution, or club.
* subscribers to a magazine or newsletter.
* users of a sports or recreational facility.

2. Inquiries: Businesses or individuals who have contacted your organization to request something - catalog, sample, quote, or perhaps just information - are more likely to respond to your offers than others who have not shown an interest in you. Further, the faster you are able to contact an inquiry with an answer, the more likely it is that he or she will react positively to your next offer.

3. Prospects: Prospects are potential customers. They are people who have not yet responded to your offers nor inquired about your organization. However, you have reason to believe that they may have a need for or interest in your product or service. You also expect that these prospects have the ability to pay (if you're selling a product or service).

(A smart way to look at your customers is to also view them as prospects to be wooed and won for other products or services. Never take a customer for granted. For example, a customer who has bought only one product or service from you may be a prospect - and a very good one - for the other products and services you offer.)

4. Suspects: Suspects are prospects who may have some potential to become customers, but their need for your product or service (and their ability to pay) is uncertain. Developing a mailing list of suspect names should probably be the lowest priority for your business or organization.

For each type of mailing list you create - customer, prospect, inquiry, or suspect - you will want to keep basically the same descriptive information (data) on each of the names you include. If you can keep and maintain the same data on each of your customers, you can find which common characteristics are processed by your best customers. If you can then find prospects which closely match those characteristics, you have a greater chance of success in your prospect mailings.

The next step, in creating your mailing list, is deciding on the data you should try to capture for each of the names.


This section of the report offers some preliminary guidance in making the necessary decision about which piece of descriptive information, or "data element," to include in your mailing list records.

When you are identifying the data elements you want to include in your mailing list, you are really laying the groundwork for your database.

"Database" is a popular term among mailing list specialists today. However, the concept of a data base is fairly simple. A database is a collection of information about your customers, organized so it can be easily expanded, updated, and accessed by any of a number of its component parts or variable. Mailing information (name, address, etc.) is part, but not all, of a database.

Why is a database so important? Let's begin by reviewing some basic principles:

* Whatever your product or service, there is an audience because of its characteristics, is a "natural" customer group for you. For example, expectant mothers are a natural audience for a store selling maternity clothes.
* The more you know about your customer, the better you will be able to appeal to their specific wants and needs.
* Prospects who share characteristics with your current customers are generally your best potential customers.

Therefore, to make decisions about what data elements to include in your database, first determine what common characteristics your customers share. For example:

* Do your customers share a certain level of income (in the case of individuals) or annual sales volume(in case of businesses)?
* Do all of your customers have similar household sizes or numbers of employees(businesses)?
* Is age or number of years in business a common characteristic shared by your customers?
* Are your customers located in a specific area or a particular type of geographic location?

These are just a few of the characteristics your customers may share.

The following questions don't apply to prospects, but they can also help youdetermine who your best customers are:

* How often do your best customers buy - daily, monthly or even yearly?
* What sales volume makes them food customers?
* When was the last time they purchased?
* When do they buy? Anytime or only at certain times of the year?

The better you understand your best current customers, the better you will be able to identify the data you want to maintain about potential customers.

Copyright 2004 by DeAnna Spencer

DeAnna Spencer is a virtual assistant that helps entrepreneurs run a successful business by providing affordable administrative help. She also publishes a blog for small business owners. Visit this small business resource today.

Surviving The Commodity Markets, PART 5 - Trading Guidelines For Different Account Sizes

Of all the important skills in trading, survival is number one. For unless we make it through the inevitable bad times, we won't be around to capitalize on the good. I've laid out some trading account guidelines that specify the account size required to conduct various commodity futures and option trading activities. Stick within these guidelines and you will have an edge on most of the commodity trading public.

$20,000 ACCOUNT
(Risk no more than 5% max ($1000)

A $20,000 account is a where you can begin to manage your money like a pro. Risking $1,000 a trade is usually prudent for many commodity markets. My philosophy is if you cannot enter a normal market for less than $1000 risk per futures contract or option, you do not have a low risk, high probability trade in the first place. Wait for a better entry point.

The same basic rules apply for $20,000 as for the $10,000 account, except you now have even more flexibility. Remember that EACH trading idea can have no more than $1,000 (5%) associated with it. This leaves out pyramiding on profits or adding to commodity positions at all. Ive found over time that adding to positions after a good low risk entry is a formula for messing up a would-be good trade. Just put on your initial position and let the market run.

When you let your average price creep up when averaging up, (pyramiding) its as if you staggered in at a higher price in the first place. The first sharp correction will many times put you in average loss territory. Forget the romantic stories about traders starting with $1,000 and pyramiding it to $1 million. This stuff is fantasy and the cause of $billions in losses by the public over the years. Yes, it is possible, but so is winning the $100 million lottery. Commodity gambling is where most of the money comes from to pay the disciplined, realistic, winning traders...the type of trader you are striving to be.

Your best method of surviving and making money in the long run is to find a low-risk, high-probability trade, put on whatever position your risk management dictates and let it run. Then wait for the next DIFFERENT low risk, high probability trade and repeat. This will more safely and methodically spread the risk and probabilities in your favor.

$50,000 ACCOUNT

Risk no more than 5% max ($2500)

Heres where you can begin doing two of everything if you wish. You can now risk two futures contracts, two commodity options, etc. (per trade) Some very conservative traders may even stay with one futures contract to reduce the risk to 2.5% ($1250). I like that idea best. Just think how long you could survive if you could be wrong forty times in a row before being carried out? Just think about how much money you can make if you are around to eventually catch your big string of winning trades? Most traders don't hang around long enough to get their share.

Even trading conservatively, you can make serious money when you are right. Remember that the commodity markets are leveraged at 5-10% margin down. For every $1000 in margin money you may control $10,000- $20,000 of commodity futures. If you are right on a string of big trades, you can can do very well. By having forty chances to perform this is what its all about. A $50,000 account holding two contracts in four markets (good risk management) can control between $500K to $1 million in commodities. (depending on markets) A 10% move in the futures means a $50,000 - $100,000 move.

If you do well and double your account, you can then double your risk and go from there. Its all about having a conservative plan and staying that way through the entire trading cycle. Most commodity traders start out with high hopes and good intentions, make some money and then think they are invincible. When you lose control, the commodity market doesnt take the money away you give it away.

Part Six of Six Parts - Next!

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.

Thomas Cathey - 27-year trading veteran heads the managed futures division of Thomas Capital Management, LLC. View his TimeLine Trading market predictions and get his complete, free 44+ lesson, "Thomas Commodity Trading Course".

Main site:

Currency Trading We Published 5 Trades On Monday and ALL Made Big Profits! Why?

If you read our currency trading big profits for the week ahead from Sunday and took the trades you will now be sitting on huge profits for the week.

Are we gurus or knew what was going to happen of course not! The lesson is in timing moves with a sensible strategy that anyone can use.

Lets look at how you could use the tools we used to pile up huge gains.

The Importance of entry

We all know this is the key how do you get in with the best risk reward with your currency trading?

The answer is the Bollinger band and simple support and resistance the bands give you targets and support areas to focus on.

Now for the hard bit, timing your entry!

Timing the entry

Many traders like to predict the market and get in early this is a mistake.

You should always wait for strength if you want to go long or weakness if you want to go short.

This is where the stochastic indicator is so effective. As a short term momentum indicator it is un rivalled and trading bullish and bearish divergence is extremely effective.

The result

We focused on 5 trades (while we gave advice on the yen we decided to stand aside although the advice was correct) but the other 4 we took and piled up huge gains for the week.

Focus on the long term

Our view last week was to get in to our trades focusing on the long term dollar downtrend.

We had a good dollar correction to the upside that was obviously running out of steam and acted accordingly and got some great profits.

Keep it simple!

Many traders will say or currency trading last week was simple strategy, we will take that as a compliment thats what trading should be!

The more complicated your strategy is the more likely it is to fail. There is no correlation between a complicated strategy and profits in fact the reverse is true, the simpler the strategy the more robust it is in the face of brutal market conditions.

When trading currencies keep in mind the following:

1. Focus on the long term trend

This is the way to make huge gains forget small moves the odds are not on your side and profit potential is not there to cover your inevitable losses.

2. Look at charts for areas of support & resistance

Then use Bollinger bands and stochastics to define and implement your entry points and stop levels.

3. Hold on to the trends

Its always tempting to bank and snatch profits, but if you have confidence in your trading and the trend is in your favour hold on keep in mind currency trends last many months or years and you need them to make big profits.

Is it really that simple? We think so. We were right last week on all our trades, ( and we did even better in energies check out our reports ) of course we could have been wrong, but our entries were timed well and had close stops for risk control.

Try the above for yourself and see if the tools and tips above can help you make bigger profits from your currency trading!

For more FREE advice

On how to trade currencies and commodities for huge profits get a FREE trading Newsletter and other valuable trading tolls including a 100 page CD packed with tips and strategies at

Ten Simple Investment Tips

When I first started trading the stock market, there was not the wealth of information available online like there is today. I read a lot of books and learned the terms and thought I knew everything necessary to make my fortune trading the market. I found a discount broker and started plugging away, and immediately lost my shirt.

Even though I had read these same tips in numerous places, I really didnt understand the importance of them until I had learned them the hard way. As they say, experience is the best teacher, if you survive the lesson.

These are things that I wish I had really used when I first started trading.

1.Never invest money you cant afford to lose.

2.Never invest money you are afraid to lose. If you are too uptight, you are guaranteed to make bad decisions.

3.Never buy a stock you receive in an unsolicited email or in a mass mailing. Many times, these turn out to be low cost, thinly traded penny stocks that some one is trying to pump up the price and dump them.

4.Most of them time, you should not buy stocks at the open of the market. The first hour of the trading day typically has a lot of volatility. Stocks tend to stabilize after the first hour; you could end up paying too much trying to get a stock, only to have it settle down in price 30 minutes later.

5.As a new investor, never buy stocks on margin. It is ok to have a margin account; just dont use the margin until you have enough knowledge to keep yourself out of trouble.

6.Dont worry if you think you just missed the biggest trade of the year. Never chase a stock trying to get on board, if you wait 30 minutes, another trade will come along that is just as lucrative. (This one tip would have saved me a fortune)

7.Learn how to use a trailing stop. Immediately after buying a stock, put in a stop loss order, and keep raising the stop limit. This will preserve your gains, but more importantly will preserve your capital.

8.Never buy until you have determined when you are going to sell. You need to know what point you will accept a small loss and move on. Then when you buy, keep that stop loss point; never change this point in the heat of the battle, because this is guaranteed to cost you money.

9.Never get greedy. The old market saying is Bears make money, Bulls make money, Hogs get slaughtered is very true.

10.Dont treat the stock market like it is your private Las Vegas gambling casino. Its ok for a small portion of your portfolio to gamble, but its called investing for a reason.

If you follow these simple tips, they will save you some of the misery that I went through early in my trading career. Try not to get bogged down in all of the information overload that is coming at you from all directions. Slow down, there will plenty of good trades available to you tomorrow, if your trading capital is still available.

If you would like additional trading information, please go to Trade The Stock Market or to my Forex Review Site.

Wall Street to Main Street: News, Views and Commentary: March 6, 2006

NEW YORK, NY, (NAMC) - Its Monday March 6, 2006, and the big news this morning is in the telecommunications industry. This past weekend telecommunications giant AT&T (NYSE: T) has made strides to expand their reach and regain their dominance in the telecommunications industry.

AT&T has agreed to purchase BellSouth (NYSE: BLS) for over $67 billion in an effort to fully acquire Cingular Wireless, which they own a portion of currently.

On the heels of launching the biggest advertising blitz in the history of AT&T they are continuing to follow through with an acquisition that would give them tremendous presence in the southeastern United States.

As part of the deal BellSouth will receive 1.325 shares of AT&T common stock for each common share of BellSouth. Based on AT&T's closing stock price on March 3, that equals $37.09 per BellSouth common share, a 17.9-percent premium.

So what is the next step, well Verizon (NYSE: VZ) may start to step up their acquisition and strategic alliance efforts as this new combination of AT&T and BellSouth just tightens the playing field and puts telecommunications in play.

You could expect both Verizon and AT&T to begin looking at international telecommunications companies as well as smaller U.S. based ones.

Well begin to feature some of these potential acquisition candidates this week on Wall Street to Main Street.

Research in Motion and NTP Settle

In a case that would have shut down millions of mobile devices that utilize Research in Motions (NASDAQ: RIMM) popular BlackBerry service has finally been settled.

Late Friday both Research in Motion (RIM) and NTP agreed to a resolution that will end the patent litigation that is currently pending in the United States District Court for the Eastern District of Virginia.

RIM has agreed to pay NTP over $612 million and NTP has agreed to grant RIM a license that would keep BlackBerry service alive and well.

This is good news for BlackBerry users this morning that were looking to ditch the BlackBerry for the Palm (NASDAQ: PALM) Treo.

Now the fallout will be with Palm as investors were looking at the BlackBerry shutdown as a big opening for Palm to capture additional market share. This puts a wrinkle in that possibility, but do not rule out a potential acquisition for Palm, or of Palm, Microsoft (NASDAQ: MSFT) is in the process of preparing to launch their own mobile units and operating system, so it may make sense for them to acquire an existing business as opposed to trying to build it themselves.

Expect Research in Motion to trade higher in this trading session and you may see Palm slip a little bit as investors that were involved in the stock for the blackberry news will probably be getting out.

Alanco Technologies Slips

The prison technology company Alanco Technologies (NASDAQ: ALAN) slips into the 40 cents range and comes dangerously close to their 52 week low.

Bare in mind that the company is currently not in compliance with Nasdaq trading requirements, the stock needs to trade above $1 a share for 10 consecutive trading days and they are far away from that number.

Possible scenarios may be a reverse stock split, that would put the company back in compliance with the Nasdaq but it is damaging to the shareholders as it presents a shorting opportunity to traders. This is often the last resort.

One thing that could be a big help would be for the CEO Bob Kaufmann to create a strategic plan for increasing shareholder value. Though we like the company, we have to look at what they are doing to accomplish this.

This is a company that is not only overlook but its underexposed, some argue that they are in beta mode, while others doubt the viability of the company. We have been covering Alanco for a few months and have received several emails from investors and the investment community giving their take on the situation.

Our take is this, Alanco Technologies is in an industry that is in need of their technology, at this point they are the only ones that offer this, but that could be changed quickly if they do not position themselves as the leader in the industry. Nothing prevents a company like Cisco (NASDAQ: CSCO) from stepping in and developing a system equivalent if not more expansive than Alancos current system.

Weve spoken to various law enforcement professionals and the general consensus was that a system like the one that Alanco has would only be beneficially in larger prisons and not in local police stations or central booking locations. So the value is there, our question is when are we going to hear more about it in the media, this is a question that Alanco has failed to answer.

Gourmet Coffee Picks Up Steam

With the popularity of gourmet coffee growing at a rapid pace, with Starbucks (NASDAQ: SBUX) putting the spotlight on the industry. Fast food giant McDonalds (NYSE: MCD) has made the move to introduce gourmet coffee to their millions of customers worldwide recently.

You can expect others to follow suit, but this brings us to a little known company that is in the market of providing gourmet coffee in the United States, Canada and Europe from Papua New Guinea.

The company is Coffee Pacifica (OTCBB: CFPC), and though you probably havent heard of them yet you may want to keep a watchful eye on this company as more fast food chains begin to introduce gourmet coffee to their customers.

The green bean coffee that is found in the highland region of Papua New Guinea, where rich volcanic soils exist, give their coffee beans a unique flavor.

We will try to schedule an interview with Coffee Pacifica in the coming weeks but in the meanwhile this is their website so that investors can perform their due diligence

The stock is trading in the $2 range.

NAMC Newswire Note

Go to the NAMC Newswire for updates at and you can listen to the NAMC Radio for the audio version of Wall Street to Main Street at

To register to receive the Wall Street to Main Street Free Daily Newsletter Click Here or go to our site and click on the Newsletter section.

CEOs that want to contact us can do so by going to or call us at 888-463-9237.

Louis Victor NAMC Newswire 888-463-9237

Information contained herein is the opinion of Louis Victor and is intended to be used strictly for informational purposes. You should be aware that Mr. Victor attempts to assure himself of the accuracy of the information contained in the analyses he publishes. None of the information contained in this opinion constitutes a recommendation by Mr. Victor, New Age Media Concepts nor the NAMC Newswire that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. The companies that are discussed in this opinion have not approved the statements made in this opinion Louis Victors past results are not necessarily indicative of future performance. Neither Mr. Victor, New Age Media Concepts nor the NAMC Newswire guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or Investments Opinion posted here. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained here, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. Louis Victor, New Age Media Concepts nor the NAMC Newswire are not licensed brokers, broker dealers, market makers, investment advisors, analyst or underwriters.

Thursday, September 27, 2007

Trading Industry Sees Repeat of May 6, 1954 this Thursday (Sept 14)

An effort by a single person can sometimes change the world.

On May, 1954, Roger Bannister broke the four-minute mile, and in doing so, he removed the barrier that had been in place for decades: the belief that it was not possible for a human to run the mile in under four minutes. The belief had been supported by the medical community with studies and evidence that the human body had physical limitations and that this was all the better humans could do. The claim was further supported by the many efforts of world-class runners that failed. Even the best of the best just couldn't seem to beat the mark.

What had been holding all the runners of the world back was not a physical limitation. It was a mental obstacle that kept everyone from achieving that elusive goal. Because everyone believed that it was impossible, numerous attempts fell short.

In a single day, Roger Bannister opened the minds of people around the world to believe that anything is possible, in spite of substantial evidence to the contrary. Once it had been accomplished, the four-minute mark was soon surpassed by many.

There has been a similar phenomena occuring over decades in the trading industry. The failure rate has been at 90% for new traders, even with the advances of technology and efforts of numerous people to affect that number. Despite the efforts and tools available to traders these days, there has been a barrier just like that of the four-minute mile.

Thousands of traders struggle with the challenge of survival in trading, wondering why they can't seem to make money. Most eventually suffer the "financial death" that is quite common and leaves empty accounts strewn across the markets.

This Thursday is September 14th and marks the First Annual "Improving the Success Rate Day" in the trading world. Trading veterans, brokers, and tens of thousands of traders are coming together for the revealing of the obstacle that has held traders back for all these years. The obstacle that traders face is unfortunately not simply a matter of belief. It is a combination of factors that affect the trader mentally and emotionally.

As Trading Veteran Mark McRae has stated, "Too many traders think that the system or method is the be all and end all of trading. There simply isn't enough attention to the psychology of trading and the correct approach that needs to be adopted."

Just like Roger Bannister did for the runners of the world with running, the "Improving the Success Rate Day" is doing for the traders of the world and the trading industry. The barrier, the mental obstacle that is holding everyone back will be revealed.

This Thursday, September 14th, 2006 tens of thousands of traders are going to break through their own four-minute barrier and improve the success rate around the trading world.

Copyright 2006 New Ireland Ventures, LLC

Brian McAboy, The Aspiring Trader's Best Friend. More information on the "Improving the Success Rate Day" can be found at

Small Business Opportunities Magazine Business

A Small Business Opportunities Magazine is one of the new small business opportunities opening up everyday. More and more companies are looking to outsource for basic services, cutting their budgets in the process and increasing profits. With this happening globally, the small business opportunities available are increasing. This process will only benefit the company's bottom line, but will also open the door for more employees to own their own businesses and take control of their lives.

So where does one go to showcase their skills or to find a small business opportunity? Small business opportunity magazines is one place worth checking out. It is also a great place to make an investment to own a business of your own.

Magazines are a multi million dollar industry every year. Advertisers and consumers both will benefit from a well laid out small business opportunities magazine. Small business opportunity magazines have a myriad of information in them regarding new positions, new trends, and new industries for the small business owner. Having a magazine available to the small business and home based business owners would be a gold mine.

This magazine concept would be helpful to anyone looking to start a small business as well. Articles regarding how to start businesses, tax information, and investment estimates are all things that a home based professional will need to know. This magazine could be offered to anyone interested or already involved in a home based business.

Additionally, the companies and organizations looking to hire home based employees would then be your advertisers. MLM and other marketing strategies are continually looking for the next advertising boom and your small business opportunity magazine could be it. Advertisers are interested in reaching an eager market, and small business opportunities magazines would provide them with that.

Start up cost for you, as a self publisher of a small business opportunities magazine will vary greatly. You will need to find a printing house to print your magazine, or purchase the equipment to do it yourself. With all the computer software available you could do your own publishing quite easily. Deciding on the extent and scale to which you want to distribute is an important factor in cost as well.

To avoid the costly nature of publication, some small business magazines are being published on line as ezines (electronic magazines). Ezines offer the same benefits as regular publication, except that you avoid printing costs. Quality and timely delivery are still essential.

Even though ezines are a relatively newer market, they are widely popular. Ezines are perfect for email, which is how many telecommuters and home based businesses are communicating these days. Web space to house your ezine is going to be greatly cheaper than print, and of course there are millions of Internet users worldwide. Shipping costs will be zero and you can email links to your subscribers and advertisers virtually for free.

Clients interested in web based advertising will appreciate this twist on your publication. You will have access to a worldwide audience. Now all you have to do is get the news out that you have this publication to share.

Advertising for your magazine is going to be imperative. Looking through and communicating with web site owners of freelance and small business web sites is a good place to start. Trading advertising is also an idea. Offering an ad in your publication for promotion on a web site could be a good offer.

Do some research on ezines and small business opportunities magazines for price comparisons. Make sure that you are offering a fair value for your product. Advertisers on the Internet are looking for places to advertise. People looking for home based opportunities are looking for resources. There is demand on both sides of the spectrum, and you should be able to do well in this industry.

Copyright Randy Wilson, All Rights Reserved.

Randy has dozens of home based business articles at Profitable Home Businesses such as Start a Medical Billing Service.

Wednesday, September 26, 2007

World Wide Web Pages with World Wide Legal Issues of Tax Jurisdiction

The Central board of revenue has only authority to tax the Pakistani source income of nonresident individuals and foreign corporations of income derive from the trade and business having direct connected with Pakistan and with respect to income that arises from a trade or business within the jurisdiction of Pakistan. For tax purposes the CBR generally asserts its jurisdiction only to taxable income which is directly connected with the course of a trading or business within Pakistan.

For avoidance of double taxation CBR has conducted various tax treaties with other Countries for defining Pakistan tax jurisdiction in matter connected with imposition of taxation. There are certain treaties which CBR has conducted other countries for defining the right to tax the Pakistani source trade or business income of foreign individuals or any other source and corporations only when such income is attributable on the principles of permanent establishment" or "fixed base" in the Pakistan. When we intend to apply these principle of taxation in electronic commerce, there emerge many legal issues which our tax administrative department or adjudicative system is not position to resolve complexities and technicalities caused by advancement of information technology. The application of our tax laws to Pakistani income derived by electronic commerce has caused our tax statutes ineffective neither their construction nor interpretation help in resolving these legal issues.

First, the legal issue whether a foreign person engaged in electronic commerce is conducting a trade or business "in Pakistan" is difficult to adjudicate by reference to the traditional criteria of imposition of taxation. The trade or business which is conducted in the jurisdiction of Pakistan evolved in the context of trading methods of interpretation of law provisions because application of law provisions where the identification of parties to transaction or business are identifiable physical locations but the technological advancement of electronic commerce has made it possible for parties to conduct transaction log in any jurisdiction without having any presence there. In above conclusion it can be said that electronic commerce allows the business concern to conduct through telecommunications and computer links that have no physical connection to the jurisdiction in which the income-producing activity occurs.

Secondly when any foreign person is conducting business is Pakistani customer who are residing in Pakistan but the question of permanent establishment of these foreign person in their territories are still matter of concern legal adjudication of dispute for imposition of taxation on these transactions. In other words a foreign person engaged in electronic commerce with Pakistan customers is supposed to be engaged in Pakistani trade or business; it may be even more problematic to adjudicate a matter that such a person has a "permanent establishment" in the Pakistan in the many cases that will be governed by Pakistan tax laws and treaties. The concept of permanent establishment implies anything which is fixed and attached to earth as a fixed place of business through which the business of the enterprise is wholly or partly carried on. The legal issue which are encountered in electronic commerce are that concept of permanent become obsolete because in number of delivery of goods and performance of services are done without anything attached to earth. These jurisdictional issues have significant implications for the neutrality and administrability principles for imposition and adjudication of tax issues. If income that a foreign corporation earns through electronic commerce will escape taxation either because it is not effectively connected with a trade or business "in Pakistan" or because the corporation lacks a permanent establishment in the Pakistan, it will negate the principle of neutrality earned through tax income generated by trade which are earning in competing market businesses and further offend basic principles on that commerce is itself is carried out. Neutrality considerations favor of similar jurisdictional rules for both forms of commerce conventional and electronic.

On the other hand, even if jurisdictional principles could be developed that would treat economically similar forms of commerce the same for income tax purposes regardless of their mode of delivery, it is not at all clear that such a rule would be administrable. The power to enforce the tax obligation in case where the tax payer presence can only be connected through remote server who are not falling in Pakistan or any effort on part of CBR to administrate or adjudicate on electronic commerce of remote hosting server who can only be connected by wireless means, it can be easily concluded that these enforcement of orders are beyond the power and jurisdiction of Central board of revenue.

Jurisdiction in cyberspace without any physical existence

The jurisdiction often is vested in authority to impose taxation where subject matter situates or where parties are residing. Jurisdiction of law traditionally defined as the geographical boundaries within where a law or set of laws are enforceable. The jurisdiction often vests in authority to impose taxation on the transaction of sellable goods and services rendered in the territorial boundaries of the country.

The concept of the jurisdiction to impose taxation was not difficult question before the e-commerce transactions have started in cyberspace which have no physical existence and location. The scattered individuals across the world conducting the e-commerce transaction without having any locus point of establishment. Where the encryption of data has taken place, rather the right to impose tax to be vested in place of where encryption of database has taken place or where the physical establishment is there. The world adjudication on electronic commerce taxation dispute is bifurcating on this particular point.

Legal issue of Jurisdiction to legislate, Adjudicate and enforce

The e-commerce world, the question who own jurisdiction to decide question who own the right to legislate, adjudicate and enforce the taxation is most crucial concern. Legislation is first step to ultimate adjudication of the matter, but question arises who can legislate. The selling e-commerce transaction, the purchaser could be from any jurisdiction across the globe, rather the country who own jurisdiction over the purchaser have the right to impose taxation and to reconstruct statutory provisions for same purpose.

Likewise the seller physical establishment and data encryption place also arise many tricky and crucial questions concerning the imposition of e-commerce taxation which are hard to answer in the light of scientific advancement of e-technology.

Multi dimensional location of Transaction

The geographic location of a person vest where the tax payer is a residing, however, physical location can not appropriately interpreted in light of present tax statutes when technology exists that enables taxpayers to carry out almost every e-business transaction into another jurisdiction while never actually physically leaving their geographic location even for a single day. Most crucial concern for the tax authorities is that a tax payer or customer can made effectively thousands of login into e-pages in moments via the World Wide Web page or other electronic communication means highway to another jurisdiction without ever being subject to a border control mechanism .

The seller and buyer jurisdiction and location is primary principle of imposition of taxation, but to figure out the location of the e-transaction is most formidable task.

The location of parties where they are residing, it could in within Pakistan tax jurisdiction or it could be any where, the parties residence arise the multi-jurisdictional issues.

The issue of jurisdiction has been defined in Sale Tax Act,1990 , which has considerably has followed the definition of jurisdiction based on the territory and place of transaction as has enunciated in sale tax the in Pakistan implies any thing within the territory of Pakistan.

"...taxable supplies made in Pakistan by a registered person in the course or furtherance of any taxable activity carried on by him".

Like wise the central excise duties Act 1944 also remained adhere to the jurisdictional issue to the definition of in Pakistan which are considerable important to look at the wordings of statutory construction.

" on all excisable services, provided or rendered in Pakistan as and at the rates, set forth in first schedule."

There is liberal definition of the statute is available in income tax ordinance 2001, let us look at the definition which has been enunciated in the income tax ordinance.

"...Subject to the provisions of this Ordinance, the total income, in relation to any assessment year, or a person,- (a) who is a resident, includes all income from whatever source derived, which- (i) is received, or is deemed to be received, in Pakistan in the income year by, or on behalf of, such person; or (ii) accrues or arises, or is deemed to accrue or arise, to him in Pakistan during such year; or (iii) accrues or arises to him outside Pakistan during such year; (b) who is a non-resident, includes all income from whatever source derived, which- (i) is received, or is deemed to be received, in Pakistan in the income year by, or on behalf of, such person; or (ii) accrues or arises, or is deemed to accrue or arise, to him in Pakistan during such year;

Where the data encryption has been taken place, jurisdiction issues arise there, as we could understand the matter, because of e-commerce transaction, the location of parties difficult to deduct, under given circumstances, because of factors which I understand are how to configure out the exact location of the parties unless the ISPs and web hosting sites are not monitored?

Issues of Evasion of taxation and imposition of double Taxation

Challenging for the policy maker to stop evasion and imposition of fair taxes on e-commerce transaction, but when the multi dimensional issue are invoked that could lead to imposition of double taxation or evasion of taxes. Unless the international co-operation is not sought to adopt desirable policy for the imposition of taxes, that can lead to imposition of double taxation.

The writer is an advocate of High Court and practicing immigration and corporate laws in Pakistan since September 2001. Author can be contacted by Adil Law Company (Advocates and Immigration lawyers) Office No.3 2nd Flr Hafeez Chambers 85 The Mall Rd Lahore Pakistan Telephone: +9242-6306195 +9242- 6360108 Fax: + 9242 6360108 Cell: +92300 4254910 E-mail:

Replacing a Stock Radio in a Ford Taurus 2002 SEL

So my friend and I are somewhat into car audio/visual (it's a lot of fun) and decided to change out my stock Ford radio for an aftermarket one.

We didn't really know what we were getting ourselves into until we got out the old deck. The 'ol junker (well not really a junker, since it's an EATC temperature control module coupled with a CD player) was one big circuit board. This thing looked so out-of-date that man could have went to the moon with it (produced in 1974).

We got the deck out, bought an aftermarket dash kit from the local car audio dealer, and connected the new deck. THAT part was easy - but wiring the EATC back up (electronic automatic temperature control) was worse then sticking yourself in the eye with a hot poker.

Here's a tip to anyone who wants to replace their stock car radios - NEVER cut the wiring harnesses. That being said, finding another wiring harness for the beast that actually works has been almost impossible. None of the wiring diagrams off any website were of merit - and Ford has none themselves that could be of help to us.

On top of that, the aftermarket dash kit we bought didn't have any knobs - they expected us to supply ones from the last heating system - and nothing to plug the knobs into. We could order the knobs - $12 each - order the switches - etc. The wiring harness was $80, the switches were around $100 for all the total cost for fixing this heating system would be getting close to $500 when you incorporate the cost of the aftermarket dash kit as well.

I don't think I'll ever replace the stock radio in a Ford again. At least if I do, it would have to be a model that Ford RECOGNIZES and actually has help regarding the model. Buying replacement parts at Canadian Tire just dosen't cut it - they never work or fit - and when a Ford dealership can barely help you, you really wonder who can.

Long story short - with winter fast approaching we fused two wires together to turn the heat on for the winter. Simple solution. Likely when summer rolls around, we'll fuse a couple together to turn on the AC.

Only thing that bothers me is I can't turn the heat up or down. But it's on - so scrue it.

Please check out our website, selling audio/visual at Canadian wholesale prices at

Starting Up A New Business - How You Can Quickly and Easily Do a Break Even Analysis

Break-even analysis is a good tool for quickly determining if an idea has any legs under it. It is not meant to be used alone as a sole decision making tool. Most business formula-tools work better when tracked over time and compared with other decision making tools, including the owner's gut instinct.

Break-even needs you to track your direct costs. Direct costs are expenses that only occur when you sell a product. Examples of direct costs are cost of products you sell and supplies. Once you subtract these costs from your income, you know how much each sale contributes to pay for your overhead (another term for indirect/fixed costs) costs. Business terminology can get confusing but hang in there.

This can also be done with percentages.

Step 1 is to subtract your direct costs from your income to get a number called Gross Profit.

Step 2 is to divide the gross profit number by your income to determine its percentage of income; e.g.

$2,000 of income minus $500 of direct costs equals $1,500 of gross profit.

$1,500 divided by $2,000 equals 75%. This means that 25 cents of every $1 of sales goes to paying direct costs (products and supplies) and that 75 cents is left over to pay for all the other expenses (indirect costs) plus your profit.

If your company has rent, advertising, utilities, and auto expenses (all indirect costs) of $1,000.

Then $1,000 divided by .75 equals $1,333 (this is the sales volume necessary to pay all your indirect costs and your profit equals zero.

The $1,333 level of sales in this case represents your break-even point.

How can you use break-even info? Using the above example, say you want to hire a helper that is going to cost you $800 per month. How much more income do you need to pay for this helper?

$800 divided by .75 equals $1,067.

You need $1,067 additional income per month to pay the $800.

Break-even analysis is a great way to set sales goals for your sales staff. The base salary you pay would be an indirect cost and any commission would be a direct cost.

Lets use the above example.

$800 for base and you are going to offer a 20% commission on all sales.

The 20% would have to be added to the direct costs (25% + 20% commission = 45%).

The new gross profit as a percent would be 100% (total sales) - 45% = 55% gross profit.

$800 base salary divided by .55 = $1,455 in additional sales to pay for their base salary and commission.

Lets say you want $5,000 per month for yourself. Add the $5000 to the indirect costs and then divide by the Gross Profit % and you now have a pretty good idea of what your sales volume needs to be to provide you with $5,000 a month income.

Let's build on the salesperson example.

$5,000 plus the indirect costs of $1,800 equals $6,800.

$6,800 divided by the gross profit % of 55% or .55 = $12,364 in monthly sales volume should provide you with $5,000 in monthly income.

Break-even analysis is a linear tool and assumes that operational relationships between sales and expenses will remain the same (as laid out in the formula). Decisions involving longer terms or with multiple variables are more difficult to predict and should be re-analyzed over time.

Bruce Hunter is the CEO of CORE Magazine CORE is the leading online source for starting up a new business Visit our free online resource center now to get free access to information on loans for small businesses

Love The Thrill of Risk? Invest in an Annuity!

With the stock market in steep decline, people are looking for safe places to invest their savings. Many banks and investment companies are pushing annuities. Annuities offer a higher interest rate than CD's, but are they safe?

You could view an annuity as a tax deferred CD. You don't pay taxes on the interest until you start drawing from the annuity. But there are some important differences between an annuity and a CD.

An annuity is a product offered by an insurance company. With giant corporations like Enron, Kmart, Worldcom, and United Airlines going bankrupt, can you guarantee that the insurance company won't fold, leaving you with nothing? Insurance companies are insured by re-insurers, like General Re. But it seems no matter how large a company is, you can't be sure it won't fold. The bankruptcy of a large insurance company might cause the re-insurer to collapse along with it.

Bank CD's are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $100,000 per bank. The FDIC is a branch of the U.S. Government, who, as you know, are the people who print the money. If they go bankrupt, we'll have more to worry about than just losing our savings!

A new type of annuity called a charitable gift annuity has come on the market recently. These are issued by charity organizations. You give your money to the charity, you receive a tax benefit, and in exchange the charity promises you a fixed payment for life. Unfortunately, this scheme has become a mode of operation for con artists.

The charitable gift annuity has been added to top ten scam list of the North American Securities Administrators Association. They explain that charitable gift annuities are subject to virtually no federal regulation. Here in Arizona, 430 investors lost their savings in a ponzi scheme run by the Mid-America Foundation Inc.

Banks and investment companies hawking annuities promote the higher than CD interest rates, but they fail to reveal the hidden fees and high early withdrawal penalties. If you need to access your annuity before age 59, you could be subject to a 10 percent penalty.

With the recent bankruptcies, and discovery that many giant corporations have been cooking their books for years, I feel it's best to play it safe. If you love the thrill of risk, or if you have already purchased an annuity, I wish you luck. As Will Rogers said, "I am not as concerned about the return ON my money as I am about the return OF my money".

Permission is granted for the above article to forward, reprint, distribute, use for ezine, newsletter, website, offer as free bonus or part of a product for sale as long as no changes are made and the byline, copyright, and the resource box below is included.

About The Author

Copyright(C)2002 Bucaro TecHelp. To learn how to maintain your computer and use it more effectively to design a Web site and make money on the Web visit To subscribe to Bucaro TecHelp Newsletter Send a blank email to

Discover the Biggest Trading & Investing Mistake

Any online investor / trader seeks an excellent off or online future trading career opportunity. Despite this goal, did you know 95 percent of all traders go broke within the first two months? Why do investors lose vast amounts of wealth in one or more of the following markets option trading, forex trading or currency trading, stock trading, future or commodity trading etc in such a short amount of time?

Most online investors / traders interact in devastating forms of thinking, which convinces the mind to the point where the trader believes that an educational enhancement ability that develops superb market research skills is not important. On the contrary, if trading is not treated as other business opportunities, the new sales and trading job will cripple the trader. You must develop a purposeful or industrious undertaking to learn how it works. Would you conduct business as a brain surgeon with out a college or university degree? I do not think so; similarly, the same course of action holds true for trading success.

The secret of my success required an earnest and conscientious effort on my part. This action accomplished something to the point of pure boldness; in other words, no matter how boring or non-important you think learning how to trade may be, it must be done to insure a success story.

Every successful company needs a business plan. Yet, when most people take a gamble on the securities industry, they fail to put a trading plan into place. In other words, they end up going on an emotional roller coaster, governed by how the market performs.

Without a trading plan, the majority of traders approach the financial market in an inconsistent manner - i.e. they follow their whims. The typical pattern may include the following:

Day 1 - experiment with option trading
Day 2 - randomly select any online trading brokerage firm.
Day 3 try out future trading
Day 4 read about oriental trading then decides to go into that direction
Day 5 change mind completely and try currency trading or forex trading
Day 6 try day trading then in midstream chooses to hold trade for the long term
Day 7 venture off into stock trading
Day 8 dabble in commodity trading
Day 9 give up because you think it is a hopeless cause.

This example is meant to look confusing. Similarly in the illustration above, this trader may use one set of indicators one day, and the next day they will throw these indicators out the window and take on a completely set of new rules.

Unfortunately, with no consistent approach, your trading decisions, governed by emotions, are doomed to failure here is why.

When faced with losing money in the market, what do traders do? Usually, they end up rationalizing to hold on to a losing stock. The driving force behind this is that they do not want to be wrong. They let their ego get in the way of making profits.

LOOK! Let us set the record straight. THIS IS A FIRM FACT - not every trade will be a winner. You will not make the maximum profit out of every trade. There is no Holy Grail trading system! You just need a trading plan, which matches your personality.

When I say trading plan, I am not talking about fundamental analysis or technical analysis specifically, I am talking about setting up a simply a set of guidelines to follow regardless of what stock selection method you use.

In fact, through a study of successful traders, I found there are many different trading methods for entering a security. I have seen people use technical analysis; fundamental analysis even astrology to determine when to enter a trade. Despite these varied entry methods, one component remains the same among successful traders they all have a trading plan that suits them.

In fact, successful traders have a written plan and my friend this is the essential component to their success. I guarantee that investors who stick like glue to a trading plan are the ones who make NOT LOSE MILLIONS of dollars in their activities of online investing.

David Jenyns is recognized as the leading expert when it
comes to designing profitable trading systems.

His most recent course Ultimate Trading Systems is a step-
by-step trading roadmap to designing profitable trading
systems. Learn how *you* can become one of his students.
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Your House Is Your Biggest Investment Do You Really Just Want a Loan Advisor?

A Loan Officer may be able to help you qualify for a loan. Is that really what you want? When you consider that your home is your biggest investment shouldn't it be part of an Entire Investment Plan?

Most people don't look at their house as part of their overall financial plan. That is a huge mistake especially when you consider that for most people a house will be the biggest investment they ever make. When the house is integrated into an overall financial plan it by a qualified financial Advisor magic happens.

When you are young and starting out your only concern may be just to get the mortgage that will allow you to qualify for that house. Back in 1985 when I bought my first house I actually had a 40 year ARM because that was the only way I could qualify for a house. A few years later after my second daughter was born I didn't nearly have enough life insurance or emergency savings but I just couldn't afford it.

Wow if I knew then what I know now. Today most people can lower their mortgage payment by about 40% with a power option ARM. That 40% savings can be used for many things. For a young family it can be used for Life Insurance and an Emergency fund. For the older couple it can be used to help build a retirement nest egg.

A loan advisor would never be able to tell you all that. A Good financial advisor would be able to help you use your house as an integral part of your total financial plan

About the Author
Mike Makler Offers Financial Services (Mortgages,Life Insurance, Annuity) in Florissant Missouri which is in North St. Louis County Missouri Just Across the Bridge from St. Charles Missouri

Call Mike at 314 398-5547

Visit Mike's Web Page:

For Missouri Specific Insurance and Loan Questions:

Get Mike's Newsletter Here

Copyright 2005-2006 Mike Makler

Tuesday, September 25, 2007

What Is Active Trading?

Stock market investing is a great way to make money. Buy shares at a low price, and sell at a higher price. What could be easier? Sadly, its not always that easy. However, understanding the markets and the terms used by traders can help to give you an advantage. While I wont cover them all here, below you will find a couple of examples to help you get started trading.

Stock options include what is known as a covered call. Where you purchase a stock and then go back in with a covered call to ensure if the stock goes down you will not lose your money. Short sells involve buying a devalued stock because it is showing that it will increase in the next while to help increase your portfolio. A sell stop is a term for placing a stop on a stock you would like to acquire. This means you will not purchase the stock if it exceeds your set price before you can attain it.

There are what we term day traders. These active traders will buy and sell stocks in the same day. They look for stocks that are volatile, which provides the best trading opportunities for the day trader. They sit in front off their computer and watch the markets, looking for the best chart set up before taking a position. Most day traders will look at the 2 minute charts, which suggests that they wont be in a specific position for long. Unless you have a lot of time, experience and tolerance for risk, day trading wont be for you.

While there are many books out there that say they can teach you how to trade, there is no substitute for experience. The problem is, its a very expensive way to learn. The key is in keeping a stop loss, regardless of the methodology you decide to follow. Successful day traders, swing traders and even value investors use a stop loss to help minimize the amount of downside risk they are exposed to. A stop loss is a set price at which you will automatically exit your position. Its up to the investor to decide if its at a specific percentage of the trade value, a percentage off the share price, or a certain level that is deemed to be support / resistance.

Other options for the beginner trader is to use online services that will teach you how to trade in a simulated market environment. This allows you to gauge not only how good of a trader you are, but also how well you deal with risk.

Stock market investing is a great way of escaping the usual 9-5 grind. Whether you are looking to invest for retirement, or invest so you don't have to work anymore, if you can trade successfully, you will be able to attain your goals. Of course, it is not without risk. With a bit of knowledge and experience, you can improve your chances of making money in the stock market.

Visit us for more information on hot penny stocks, how to trade penny stocks online and learn to pick penny stocks.

Online FOREX Trading To Be A Success Don't Pay Attention To The News!

Can studying the news help you make profits in online FOREX trading? The answer for most traders is a no.

In fact, paying attention to the news in online FOREX Trading will lose money. Why? Read on and lets find out.

How and why prices move

In online FOREX trading (and any financial market for that matter) prices move based upon the following equation

Supply & demand fundamentals + Trader psychology = Market price

Which is most important? In todays markets definitely the latter Why?

Quite simply, markets discount fundamentals quickly and with the internet its done in seconds.

In all corners of the globe the internet delivers information quickly and its immediately discounted in the market price.

This means traders make opinions on what will happen in the FUTURE and it is their psychology that is the key to future price direction.

Sure, the papers and news wires are great at telling you why things DID happened and their normally wrong about WHAT will happen.

Traders get deluded by the experts in online FOREX trading and fail to see their wrong most of the time.

Will Rogers once said:

I only believe what I read in the papers

Now, he was joking, but most traders take news services as gospel.

Reuters and Bloomberg stories agree with them, so they must be right, is the view of most online FOREX traders. Dont think so, in fact we know so, based upon the facts and the so called experts past performance.

Its easy to be wise in hindsight, but looking into the future is much more difficult!

They write stories for a living they DONT trade, traders that are interested in making profits should not be following news stories or media hype.

Its a fact: Most important market tops and bottoms and formed when the news is most bullish or bearish. When the trends change of course, news wires have an explanation but that does not help you trade!

In the 1987 crash they were bullish in the tech stock boom they were bullish and these are just tow examples of media experts being wrong and there are many others.

Understand the past and look to the future

This is the key to successful online FOREX trading. Quite simply the fundamentals are digested in seconds and reflected in the price.

Its trader psychology thats important as they look at the future and how they determine the supply and demand situation is reflected in price changes.

Human psychology has remained constant over time and thats why many price patterns are so reliable and point to important market tops and bottoms when the market is either very bullish or bearish.

Of course, prices then go the other way! confounding the so called media experts.

Technical analysis of markets

The only way you can win in online FOREX Trading is to use a technical analysis system that focuses on price.

Why use a technical system in online FOREX trading?

There are two main reasons

1.You will not be distracted by media stories and news hype and will keep your emotions in check.

2.If you are involved in online FOREX trading you can look at charts and see long term trends that last for months or years and many of them (in fact most of them!) run against what the papers and the so called experts say!

To be a success in online FOREX trading all you need to do is focus on these trends and forget the news and media, media experts dont get paid to trade, they get paid to write stories.

Focus on the reality of the price, not the media hype and you can make big profits in online Forex trading.


On finance including investments and becoming a succesful trader succesful trading visit our website for articles features and downloads at:

Molybdenum Supply Problems Ahead, Mining Exec Says

There is a polite arrogance to the new king of primary molybdenum producers that comes with being the big kid on the block. Thats how executive chairman referred to Blue Pearl Mining during our hour-long telephone interview discussing his companys developments, the future of the molybdenum market and new companies hoping to imitate his success.

Ian McDonald may very well be entitled to his opinions. After all, Blue Pearl could produce the same number of molybdenum poundage in 2007 as Cameco Corp would produce of uranium. (And unencumbered by those pesky legacy contracts or remediation efforts at Cigar Lake.) Blue Pearl is now the largest publicly traded primary molybdenum producer. The company plans to mine about one-fifth of the world primary moly in 2007, about five percent of the worlds total mined molybdenum. His company will also roast about 12 percent of the worlds molybdenum. Not bad for a company which was a penny stock some seven months ago.

Blue Pearl has become the darling of Bay Street since the company announced its audacious US$575 million acquisition of privately owned Thompson Creek Metals Company. Having closed the transaction in late October, Blue Pearl now owns two operating molybdenum mines and concentrators and a metallurgical (roaster) facility in Pennsylvania. In mid June, the companys shares traded for less than C$1.80; yesterday the stock closed at C$12.06. Since late August, shares in Blue Pearl have climbed relentlessly, with only brief pauses of consolidation.

We were fortunate to have included Blue Pearl in our seminal molybdenum article about the metals relationship with the energy bull market, this past July, at a time when few had heard of the company.

On Monday, the company announced encouraging cash flow from the recently acquired Thompson Creek operations. In the 67 days following this acquisition, Blue Pearl generated revenues of $150.8 million, about $2.25 million per day. Annualized, this could reach more than $800 million in 2007 if the price molybdenum remains firm and production continues according to plan.

Production costs for output from the companys Thompson Creek and Endako molybdenum mines averaged $6.28/pound. The company sold this production at an average price of $25.74/pound. By 2008, the company hopes to mine 27 million pounds from these mines. The firm moly price helped Blue Pearl discharge the Second Lien Credit Facility of $64.3 million in mid March. According to Mondays news release, the company cash balance stands at approximately $135 million.

The company expects its bank debt to fall to $320 million after paying its first quarterly installment in 2007 of $18.75 million. Blue Pearl incurred $401.9 million in long-term debt as part of its acquisition of Thompson Creek Metals. At its current production pace, the quarterly bank payments amount to a little more than one weeks production.

Whats on Ian McDonalds Mind?

Historically, according to Western Troys Rex Loesby, annual molybdenum demand has grown about four percent since the 1950s. This fits well with McDonalds forecast of 700 million pounds by 2020. Thats what will need to be the supply, he told us. And where will this come from? That, of course, is the big question, McDonald said. Theres a dearth of new projects in the pipeline. And he reminded us that China has started to consume more of their own molybdenum production.

As with uranium and other metals, China is a wild card for molybdenum supply. In any moly discussion, China remains a primary concern for miners. China was producing, 13 to 14 years ago, about 110 million pounds and exporting 100 million into a 230-million pound market, McDonald pointed out. Last year, in a 400-million pound market, China produced about 80 million pounds, net exporting about 30 million, so they are keeping more. The story is they use more of their own. He is quick to point out that global moly demand was up six percent in 2006, but Chinas demand increased some 20 percent.

Im not going to sugar coat it, McDonald points out. If they wanted to make it look bad, they would. If they start dumping on the market, everybodys trashed. But he doesnt believe this is a likely scenario. There are only 39 big mines in the world, producing molybdenum, he told us. But in China, there are over 500 small mom-and-pop operations. China is desirous of having some world-class companies, and theyve shut down some of the smaller operations because they dont use their power efficiently. If you have a big mining company, they are going to have a long-term view and maximize the countrys resources.

From where supply comes from is second to the increasing demand McDonald sees ahead. There are a growing number of applications for molybdenum. He pointed out that cars consume molybdenum. Theres about 0.9 pound or so in about a dozen different places in the automobile, and with 55 million cars in the world, thats about 50 million pounds. This is probably the third largest application of moly.

High-end molybdenum stainless steel applications consume the biggest amount, McDonald said. Any steel thats used in the ocean or near the ocean has got molybdenum in it. He pointed out that Blue Pearl leaves about 10 percent of the companys molybdenum production in the sulphide form for the high-end lubrication market the oil companies. Most of it is made into tech oxide, MO3, and about 25 percent would be ferromolybdenum, he said. We just sold some (ferromoly) in Europe for $34/pound.

His company was chosen to help produce advice on the newly launched Sprott Molybdenum Participation Fund. We asked about his involvement. We get a small fee for storing molybdenum if they choose to buy, he told us. It would be stored at Blue Pearls metallurgical facility in Pennsylvania. We would also sell them some, he added. His company would not be counseling the fund in which companies to take investment stakes. It would pose a conflict of interest and we would have to recuse ourselves, he said.

Sees New Supply on the Horizon Lacking

Theres a tremendous barrier to entry for a new primary molybdenum mine to come onstream with no forward market, McDonald observed. Because without a forward sale, financing requirements for the capital to build one of these new mined could be very, very challenging. He believes one of the other big molybdenum mines will get financed, but he cautioned, I think that once one does, it doesnt mean they are all going to. He explained his own personal experience, When we raised the US$575 million last year to buy Thompson Creek, this was a company making close to US$400 million a year after tax, and we had some heavy lifting to do. It was difficult. It would be difficult for another junior.

One place where he sees imminent molybdenum supply is from Blue Pearls Davidson deposit, not far from the companys Endako mine and milling facility. We will have the feasibility out in the second quarter I say second quarter, but I hope its very soon, McDonald told us. It will become the highest-grade molybdenum mine in the world. He said his company was lucky to have gotten it three years ago. It had been ready for production and there was a lot of development done on it. So, the company decided to move to the final feasibility study instead of bothering with a scoping study or pre-feasibility. He said the Davidson project would be in full production in 2009.

What about mine development? Theres already 2.5 kilometers of underground workings there and terrific ground conditions, he said. We opened that up a couple of years ago, after no one had been underground in 25 years. All of the scaling for the entire 2.5 kilometers fit in a five-gallon paint bucket. McDonald told us Blue Pearl plans to just mine the deposit and little else, We will not even crush it, just a rock breaker, and just haul it right down to Endako.

But Blue Pearl may take in a partner on Davidson the Japanese trading company, Sojitz. They own 25 percent of Endako, and they want to buy 25 percent of Davidson, McDonald said. It would make sense, if they own the same percentage of both. There wouldnt be any recovery issues, or combining of ore and al that. We would have the same labor force. He did caution the deal was not done yet. Well look to possibly do a transaction with them.

Another project where McDonald hopes will provide additional molybdenum supply comes with the possible expansion of Endako into a super pit. The company plans to have the scoping study done later this year, possibly by June. I feel pretty good about that, its pretty realistic, he told us. We have a massive resource there, and it would be a pretty big job. But, it could take the wind out of some of these other juniors.

We discussed his vision of expanding the mill to 50,000 tons per day. Its probably 32,000 tons per day now, he pointed out. The first step involves redoing the reserves and resource calculations at Thompson Creek and Endako using a $10/pound moly price. The previous pricing was way too conservative, according to McDonald. We suspect the higher resource figure would open the door to raising the likely $250 million to upgrade the facility to the higher tonnage operation. And his mind is already moving in that direction.

Lets say we had a study done within the next year, he explained. It would take to 2008 or 2009 to build it. Unfortunately, because the mine has been operating for forty-two years, we would have to move the existing mill. The mill would have to be moved because there is ore beneath the present mill site. It wont happen overnight, he warned.

And what about those other junior molybdenum companies? We arent going to grow our company by buying all these other moly deposits, he responded. Then, we have to go and raise $700 million, worry about marketing another 20 million pounds a year, and betting the company on it. Personally, and our board agrees, wed rather buy something thats either in production, and pay a little more for it, or take something at a feasibility stage, like copper/moly. We have a pretty good balance sheet, or we will have by the end of this year. Then maybe we could buy some moly production.

What are his plans as 2007 rolls on? We qualify for the New York Stock Exchange, McDonald confided. Weve talked to them. I think we will get the ball rolling this spring, and we could look for an early fall consummation. We are going to come to the U.S., we qualify and they seem pretty keen on having us.

Just to make sure we got his story right, McDonald added, Were not going to sit on our laurels. We have a lot of growth ahead of us, bringing on Davidson, expanding the reserves of both mines and doing a scoping study for expanding Endako. Our main job is to get the debt paid down and increase the reserves. Thats quite a bit. Its all within our backyard and with our own expertise. Anything we do outside of that we will do other things, I think, but they are things that are going to be for sure.

COPYRIGHT 2007 by StockInterview, Inc. ALL RIGHTS RESERVED.

James Finch contributes to and other publications. His focus on the uranium mining and nuclear fuel sector resulted in the widely popular Investing in the Great Uranium Bull Market, which is now available on and on