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Minddoc #2: Fed Shift on Interest Policy Likely
By JEANNINE AVERSA
.c The Associated Press
WASHINGTON (AP) - As the country bounces back from a recession, the Federal Reserve's next mission will be to prepare Americans enjoying the lowest interest rates seen in a generation for the possibility that rates will go higher this year, economists said.
The Fed's 11 interest rate cuts last year may have rescued the economy from the downturn that began in last March and will allow healthy economic growth to return in the months ahead, economists predicted.
Recent economic data suggest the recovery is gaining momentum. The nation's manufacturing sector, which lost hundreds of thousands of jobs during the recession as factories throttled back production, is mounting a comeback.
Also, companies that had been shedding workers to cope with the downturn added jobs in February for the first time in seven months and helped push the unemployment rate down to 5.5 percent, the lowest jobless rate since October.
Against this backdrop of improving economic conditions, economists believe the Fed will begin acting to shift its policy stance. Currently, the Fed's policy directive, which can signal future rate moves, is tilted toward risks of economic weakness, something that leaves the door open to interest rate cuts.
However, many economists predict Federal Reserve Chairman Alan Greenspan and his colleagues will change the policy bias at their meeting Tuesday. Economists are predicting the Fed will move to a neutral policy directive, which would mean they believe risks to the economy are balanced equally between economic weakness and the threat of inflation.
Economists view that as the first step toward preparing consumers and businesses for the possibility that interest rates may go up later this year.
``They are teeing it up for a rate hike,'' said Richard Yamarone, economist with Argus Research Corp. ``They don't want to keep rates at a 40-year low for too long, because then inflation could blossom.''
The Fed's chief policy-making group, the Federal Open Market Committee, started its meeting Tuesday morning and was to announce its decision in the afternoon. Most economists are predicting the Fed also will decide to leave interest rates unchanged, as it did at its last meeting in January.
The Fed's last rate cut came on Dec. 11 and left the federal funds rate, the interest that banks charge each other, at a 40-year low of 1.75 percent. Commercial banks' prime lending rate was reduced in lockstep with the Fed's 11 rate cuts and now stands at 4.75 percent, a level last seen in November 1965.
``It is clear we are no longer in a time of economic crisis, but we have a crisis-level borrowing rate at the moment,'' said Carl Tannenbaum, chief economist at LaSalle Bank/ABN AMRO. ``The first step is to go to neutral and then start reeling in a lot of the slack.''
Economists believe Fed policy-makers will begin raising rates either at their May 7 or their June 25-26 meetings. That would mark the first rate increase in two years. Some are forecasting the federal funds rate will rise to around 3 percent and the prime to around 6 percent by the end of this year. Such rates still would allow the economy to grow and would remain favorable to many borrowers, analysts said.
In his most upbeat assessment of the economy in more than a year, Greenspan told Congress this month that a recovery was ``already well under way'' for the country, bruised by the Sept. 11 terrorist attacks and the recession.
The economy bounced back with a 1.4 percent growth rate in the fourth quarter of 2001, after shrinking at a 1.3 percent rate after the terror attacks.
On the Net:
Federal Reserve: http://www.federalreserve.gov
M&M Man
Minddoc. . .the rumor on the street is that the interest rates will remain unchanged. Expect to see a hike in May.
Tin .. .brdsng. . .is a long-term HRCT shareholder from way back.
Peace,
M&M Man
LOL! I can't believe how I can sometimes think of TOO many things at one time! At any rate, Dr. Phan may benefit from picking up one of them PSVs! from LFZA LOL!
Peace,
M&M Man
We'll have to see what Ciresa can do for LFZA! Not HRCT LOL! Waitress. . .another cup of coffee, pleZ!
Peace,
M&M Man
PLRP up another 18% on good volume. eom
M&M Man
We'll have to see what Ciresa can do for HRCT. If it's anything like what he did for Porche and KIA. . .this could be an interesting little stock (LFZA) when it comes off the pinks. I'd sure like to know what their strategy is. Nonetheless, it appears to be moving forward. Ciresa will establish the networking with LDI. And he appears to be well networked. One of the problems with the stock is. . .the number of shares in the float! We'll see. Hopefully they won't pull a R/S or some crazy thing of that nature. Now a share buyback, that would be nice!
Peace,
M&M Man
Thanks EZ eom
M&M Man
Does anyone have a link to a China website that we can go to in order to find out the latest statistics on ratings for Internet domains in China? If so, please post.
Thanks:).
Peace,
M&M Man
HAL hitting its' point of resistance at 17 eom
M&M Man
Great Catch! Thomas Ciresa Appointed President and CEO of LAFORZA Distributors Inc.
Company is Global Distributor of the World's First Factory-Designed and Manufactured Personal Security Vehicle(TM) (PSV(TM))
ESCONDIDO, Calif., Mar 19, 2002 (BW AutomotiveWire) -- LAFORZA Automobiles Inc. (Pink Sheets:LFZA) (OTCBB:LFZA) today announced the appointment of Thomas Ciresa as president and CEO of LAFORZA Distributors Inc., global distributor of the first luxury Personal Security Vehicle(TM) (PSV(TM)).
The LAFORZA, manufactured in Italy, is a high-performance, ultra-luxury 4-wheel-drive vehicle designed to meet the growing security concerns of motorists worldwide.
Ciresa has vast U.S. and International automotive experience. After a distinguished career with Ford, American Motors Corp., and Toyota, he led the start-up team that formed Porsche Cars, N.A. as its vice president, operations. He then served as the chief operating officer of Hyundai Auto Canada and was responsible for the development for KIA, N.A. Ciresa was a member of the executive team that launched Autobytel.com (Nasdaq:ABTL).
"We are very excited to have Tom leading the team at LAFORZA Distributors Inc.," said Gerry Berg, CFO. "His extensive experience in working with automobile manufacturers and establishing dealer networks will be a key asset to LAFORZA's successful launch."
"The Personal Security Vehicle is a concept that's time has come. I believe that there is a real need for a vehicle that can address society's concerns for safety and security," said Tom Ciresa. "I look forward to the opportunity to work with LAFORZA to bring this unique vehicle to market."
About LAFORZA Automobiles Inc./LAFORZA International SpA
LAFORZA Automobiles Inc. manufactures luxury-class Italian sport utility vehicles and Personal Security Vehicles(TM) (PSV(TM)). LAFORZA Distributors Inc. distributes these vehicles throughout the world. The bodywork is styled by the renowned automotive stylist Thomas Tjaarda and the vehicle is manufactured in Cherasco, Italy by LAFORZA International SpA.
For more information about LAFORZA, visit at www.laforza.com.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Expression of future goals and similar expressions reflecting something other than historical fact involve risks and uncertainties. The actual results the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.
CONTACT: LAFORZA Automobiles Inc.
Gerry Berg, 760/738-1515
URL: http://www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
M&M Man
Good for ADSXers! :) eom
M&M Man
Thomas Ciresa Appointed President and CEO of LAFORZA Distributors Inc.
Company is Global Distributor of the World's First Factory-Designed and Manufactured Personal Security Vehicle(TM) (PSV(TM))
ESCONDIDO, Calif., Mar 19, 2002 (BW AutomotiveWire) -- LAFORZA Automobiles Inc. (Pink Sheets:LFZA) (OTCBB:LFZA) today announced the appointment of Thomas Ciresa as president and CEO of LAFORZA Distributors Inc., global distributor of the first luxury Personal Security Vehicle(TM) (PSV(TM)).
The LAFORZA, manufactured in Italy, is a high-performance, ultra-luxury 4-wheel-drive vehicle designed to meet the growing security concerns of motorists worldwide.
Ciresa has vast U.S. and International automotive experience. After a distinguished career with Ford, American Motors Corp., and Toyota, he led the start-up team that formed Porsche Cars, N.A. as its vice president, operations. He then served as the chief operating officer of Hyundai Auto Canada and was responsible for the development for KIA, N.A. Ciresa was a member of the executive team that launched Autobytel.com (Nasdaq:ABTL).
"We are very excited to have Tom leading the team at LAFORZA Distributors Inc.," said Gerry Berg, CFO. "His extensive experience in working with automobile manufacturers and establishing dealer networks will be a key asset to LAFORZA's successful launch."
"The Personal Security Vehicle is a concept that's time has come. I believe that there is a real need for a vehicle that can address society's concerns for safety and security," said Tom Ciresa. "I look forward to the opportunity to work with LAFORZA to bring this unique vehicle to market."
About LAFORZA Automobiles Inc./LAFORZA International SpA
LAFORZA Automobiles Inc. manufactures luxury-class Italian sport utility vehicles and Personal Security Vehicles(TM) (PSV(TM)). LAFORZA Distributors Inc. distributes these vehicles throughout the world. The bodywork is styled by the renowned automotive stylist Thomas Tjaarda and the vehicle is manufactured in Cherasco, Italy by LAFORZA International SpA.
For more information about LAFORZA, visit at www.laforza.com.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Expression of future goals and similar expressions reflecting something other than historical fact involve risks and uncertainties. The actual results the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.
CONTACT: LAFORZA Automobiles Inc.
Gerry Berg, 760/738-1515
URL: http://www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
M&M Man
Thomas Ciresa Appointed President and CEO of LAFORZA Distributors Inc.
Company is Global Distributor of the World's First Factory-Designed and Manufactured Personal Security Vehicle(TM) (PSV(TM))
ESCONDIDO, Calif., Mar 19, 2002 (BW AutomotiveWire) -- LAFORZA Automobiles Inc. (Pink Sheets:LFZA) (OTCBB:LFZA) today announced the appointment of Thomas Ciresa as president and CEO of LAFORZA Distributors Inc., global distributor of the first luxury Personal Security Vehicle(TM) (PSV(TM)).
The LAFORZA, manufactured in Italy, is a high-performance, ultra-luxury 4-wheel-drive vehicle designed to meet the growing security concerns of motorists worldwide.
Ciresa has vast U.S. and International automotive experience. After a distinguished career with Ford, American Motors Corp., and Toyota, he led the start-up team that formed Porsche Cars, N.A. as its vice president, operations. He then served as the chief operating officer of Hyundai Auto Canada and was responsible for the development for KIA, N.A. Ciresa was a member of the executive team that launched Autobytel.com (Nasdaq:ABTL).
"We are very excited to have Tom leading the team at LAFORZA Distributors Inc.," said Gerry Berg, CFO. "His extensive experience in working with automobile manufacturers and establishing dealer networks will be a key asset to LAFORZA's successful launch."
"The Personal Security Vehicle is a concept that's time has come. I believe that there is a real need for a vehicle that can address society's concerns for safety and security," said Tom Ciresa. "I look forward to the opportunity to work with LAFORZA to bring this unique vehicle to market."
About LAFORZA Automobiles Inc./LAFORZA International SpA
LAFORZA Automobiles Inc. manufactures luxury-class Italian sport utility vehicles and Personal Security Vehicles(TM) (PSV(TM)). LAFORZA Distributors Inc. distributes these vehicles throughout the world. The bodywork is styled by the renowned automotive stylist Thomas Tjaarda and the vehicle is manufactured in Cherasco, Italy by LAFORZA International SpA.
For more information about LAFORZA, visit at www.laforza.com.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Expression of future goals and similar expressions reflecting something other than historical fact involve risks and uncertainties. The actual results the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.
CONTACT: LAFORZA Automobiles Inc.
Gerry Berg, 760/738-1515
URL: http://www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
M&M Man
DVNT chart >>>>>>>>>>>>>
http://host.wallstreetcity.com/wsc2/Chart.html?Symbol=DVNT&Timespan=260
Peace,
M&M Man
Arch. . .DVNT is running back up from the 50 cent level. Now at 71 cents on low volume (yesterday). I haven't looked at the chart but that one usually makes a quick run. . .and comes down just as fast! Keep an eye on that one. . .
Peace,
M&M Man
From an actual press release:
"Mr. Zhong Tian, Strategic Partner Manager of Microsoft (China) said, 'Microsoft (China) will provide its support to Sinobull Financial Group in developing applications and sales within the Chinese financial industry utilizing Microsoft's network platform and other technologies. We will also assign the necessary manpower, services, and technical resources needed to assure that this alliance can be successful in delivering E-Commerce solutions to Chinese clients.'"
??? From MBR ~~
"Question) At one time Microsoft was going to lend all of the man power and technical support to help build .... what was it? SinoBull? Have they kept their word? Was there a contract? What, if anything, are our partnerships with the likes of Yahoo!, Microsoft, IBM, Nokia, Legend etc... etc..... doing for Hartcourt and it's subs? Is there any revenue generated from their help?"
From HRCTWeb. . .
"A) This question is a little misleading, we did not say that Microsoft would put all their manpower into developing our joint projects. UAC and Microsoft did develop software programs for the UAC162 stock trading network. Legend and UAC also developed the set top box for trading over the UAC162 network, as well as wireless trading with HP’s palm top and Nokia cell phones. The problem has been the network costs per minute for customers were fairly expensive, and China Telecom didn’t lower their costs as quickly or as low as they estimated. So products were developed for our partners, marketing in place, and at the product release shows people were excited, but few were buying, the market wasn’t there (like all parties thought it would be)."
Just an observation. It could probably be interpreted in many different ways. Nevertheless. . .it's time to focus forward and bring clarity to what it is that Sinobull CAN do with where they are. The same with HRCT. It will be nice to see the breakdown of the next 10Q.
Peace,
M&M Man
EZ. . .I hope, too. Up to this point, that stock has been a major let down. This is the worst PR period I have seen out of HRCT since 98'. The same is true with the performance of their stock.
WLDI. . .WTG to those that were in! See you all in the morning!
Peace,
M&M Man
Ray et al,
Good catch! Will certainly be one worth watching! Here's a little memoir to keep us all motivated:
http://home.swbell.net/karvol/a.htm
Peace,
M&M Man
Yes, Lucky. . .we all change our plans in accordance with what we initially base our plans on. However, after a while. . .it gets a little crazy to try and plan anything when we attempt to make plans based on someone/something with no apparent plans at all. When one makes plans. . .usually, and typically, they base their plans on a sound strategy. But one cannot base plans on a "sound" strategy. . .and expect that their plans will ever come to fruition if those whom they are basing their plans on never deliver on their plans. Keep the faith. I will. . .for those things I can control. Not sure if I trust in those to deliver on their statements. But I have delivered on mine. World Away is coming alive;).
Peace,
M&M Man
Opinions vary, Lucky. I think it is unfortunate that some of the longs do not see the focal point of the conversation or the matter at hand. At some point, people can see the light. I don't care if a person is running a doughnut shop, coffee shop, or Microsoft. There is a plan. . .and it gets followed. Short-term, long-term. . .and goals and objectives. There is also a vision. HRCT has diverted itself in so many ways that Dr. Ching will probably work for a year or two to find the focus of where this company is headed (I guess at this point the direction is towards HRCT Capital). At one poing it was Sinobull.com. Then it was StreamingAsia.com. Then it was the E-education platform. Now, it's HRCT Capital. Also. . .NOTHING is getting done on time. Hey. . .any company can get one thing done on time. HRCT as achieved the "any" zone. However, it appears that many thought HRCT was much more. Lets just see what happens this year. YEARS after the facts.
Go sinobull. Go, go. It appears that's all I have left of my Sinobull position. . .and that particular subsidiary was the only reason I invested in HRCT in the first place (and Innostar, which never happened). Good luck to you all. I really doubt management will prove me wrong on Sinobull (it won't be worth the paper it's printed on if somebody doesn't improve their IR philosophy).
Gadzooks. Absolutely incredible.
Peace,
M&M Man
**There's a problem when the wise shareholders begin asking unanswered questions. eom
Peace,
M&M Man
Denis is to be held in "honorable" regards. You answered your own question. . .query. . .whatever you wish to call it. We know Denis. He is honest. We also know some of the others. Lets just watch and see. Denis DID NOT answer those questions. Lets all see which Internet site can determine who did.
Peace,
M&M Man
John. . .that's very good news. In fact, that's incredible. This company could very well be a big hit.
Peace
M&M Man
CSFBdirect also raises TTN to "Strong Buy" eom
M&M Man
TTN is worth watching eom
M&M Man
TTN upgraded to "Strong Buy" by CS First Boston. Good company!
Peace,
M&M Man
EELN is continuing its upward trend. Now trading at 1.50 eom.
M&M Man
That's the way, Sherry. . .keep us wondering LOL.
Lets hope this market balances out sooner or later! Gonna do a quick review. . .
Peace,
M&M Man
Arch. . .it appears that Israel is pulling out of Palestine. I believe after Cheney completed his rounds he brought up the concerns with Iraq. If the Palestinian border on the side of Isreal is occupied by Israel. ..that would weaken the front on the Iraqian side. . .which in turn would make Palestine vulnerable to occupation by Iraq. At least, that's what I'm seeing here. Unless Iraq permits U.N. investigators to go in and research their "weapons of mass destruction" program, some type of action on Iraq seems inevitable. It would seem likely that Cheney is trying to keep the surrounding/neighboring countries of Iraq strong. ...so they can protect their own borders when action takes place with Iraq. Diplomacy at its best. We're just going to have to watch. I sincerely hope Hussain permits investigators inside. From what I have read, Bush has made it clear that a "no" answer is not one of the options. And we all know of the statement from Hussain on the first go-around. What an uncomfortable feeling it must be to be living in the Middle East.
Peace,
M&M Man
Goodbye OTCBB ~~ Hello T-3!
Goodbye OTCBB. . .Hello T-3!
LITTLE BOARD GROWS UP
NASD is about to kill the OTCBB. Get ready for T3.
SEC Reading Room reveals 'Enhanced Bulletin Board' is coming.
http://www.sec.gov/news/headlines/adv-marchround.htm
The much-maligned OTCBB has grown from a daily volume of 29m shares with $100m market volume since its introduction in 1990 to more than 400m shares and $400m market volume today. OTCBB data is now fed into more than 450,000 Level I terminals. Since 1993, all trades have been reported in real-time, and since January, 1999, every company trading on the OTCBB must be a reporting entity. On Feb. 8, 2001, the SEC approved a proposal prohibiting member firms from trading ahead of customer limit orders.
Today, some 3,800 companies are traded by nearly 300 marketmakers, quoting an average of 39,000 positions daily. All MMs subscribing to Nasdaq Level 3 service and in compliance with SEC Rule 15c2-11 are eligible to "voluntarily" participate in the OTCBB and may enter or exit at will. With 26m small businesses in the U.S., the number of companies choosing the liquidity of public equities is still miniscule.
A further breakdown shows 475 banks, 28 insurance companies and 3,265 companies trading, although 25% of the OTC companies have financial SIC codes. The largest company on the OTCBB was Publix Super Markets with a $9b market cap and $15b in revenues. Heroes, Inc., as of November, 2001, was the smallest, with a $302k market cap and revenues of $6.5m. Some 2,000 OTCBB companies have an average market cap of $1m or less. Some 42% of all trades are made in the top 100 OTCBB securities. The top 500 total 74% and the top 1,000 have 88% of the total. Likewise, 10 MMs handle 83.2% of the total trades.
In 1998, Investrend participated in and helped organize a "Bulletin Board" roundtable for the SEC Corporate Finance and Market Regulation staff and NASD, NASDR and the Nasdaq officers and capital market practitioners. Since that time, many of those participants have continued to work in an Advisory Committee to develop better practices. A meeting is scheduled this Friday in Austin, Texas.
Documents on file in the SEC Reading Room reveal that this committee has been quite busy. If all goes as planned, in January, 2003, a new "third-tier" -- or T3 -- issuer market operated by the NASD will begin, and by December, 2003, the OTCBB as we know it will be history. At that time, Nasdaq believes 2,000 qualifying OTCBB companies will be left, and the remainder will be relegated to the Pink Sheets.
As part of the transformation, qualifying small issuers will need to meet defined listing standards and pay listing fees. Minimal governance standards will require that companies must have at least 100 shareholders who own at least 100 shares each, and 200,000 shares in the public float. Also, the auditor must be subject to peer review, the company will need to issue an annual report, there will have to be an annual shareholder meeting with proxies and a quorum of at least 1/3rd of the shareholders present in person or by proxy.
Listed companies will need at least one independent director and there must be an independent audit committee with a majority of independent directors. Certain transactions will require shareholder approval, and rules will be in effect to prohibit voting restrictions.
Because Nasdaq has applied to the SEC to become an "exchange," some of the committee's ideas have already been vetted at the SEC and set aside as not acceptable. The major rejections had to do with trading on margin -- which will become a thing of the past in all Nasdaq markets if and when it becomes an exchange -- and the SEC is adamantly opposed to the elimination of the penny stock rules for the proposed T3 Exchange.
Although Nasdaq requires three independent directors on boards of its listed companies, due to the high cost of maintaining D&O insurance, T3 companies will be required to have only one independent director. Shareholder approval will be required for granting stock options to officers or directors, the issuance of large, below-market blocs of stock, and changes of control.
______________________________
HIGH-RISK, HIGH-REWARD INVESTORS
There aren't any.
Incomar Investments offers tips.
ceinvest@ix.netcom.com
The development-stage and small business enterprise has a special problem in attracting investors since institutional funds are not generally available, and it just won't do to try to tap into the retirement funds of residents at the local senior center.
While the rewards in finding the next General Electric are phenomenal, that's like winning the lottery, so only "high-risk, high-reward"-oriented investors who have set aside a small portion of their nest-egg as "monopoly money" or to play the lottery need apply.
Of course, the process can be a bit less challenging for the truly diligent, discerning investor, says Michael S. Schiff, partner in Incomar Investments, LLP, Houston, who spoke on Thursday's "Issuer Education" panel at the Community Capital Exposure Event co-sponsored by Investrend Forums. Schiff says this is where knowing management comes into play.
For those looking for this kind of capital, Schiff has some advice:
First, the "value proposition. What differentiates your product or service -- the elevator speech."
Second, he says the investor will be interested in a track record of successes, but if failures are not identified among the risk factors, and the deal goes sour, there could be trouble in the future. "Are you building a business in an industry with which you are intimately experienced? Do you have a well-prepared plan, with realistic, justifiable, supportable assumptions in your proforma financial projections?" Schiff asks.
"Do you have a strong, experienced, balanced executive team, to cover production, marketing/sales, distribution, accounting and systems? Do you know what kind of capital you want? How much? Do you have a current financial condition or risk profile of your company?"
Schiff notes that those looking for capital need to have a "realistic valuation" and must be flexible on terms, as investors want preferred positions in collateral and liquidity. Also, he says, the company's founders must think "growth = wealth. Don't focus on perecentage of ownership." He does say that founders should protect themselves with shareholder covenants and call rights.
He also states that other investors are going to want to know what you have personally at stake in the business, and what is the exit strategy.
"If your business is not the business of raising capital," he advises, "get help." Make presentations, approach "friends and family," approach recommended "angel investors" and evaluate institutional investors before approaching them to be sure that all investors you approach have expressed an interest in "buying what you are selling." The type of capital to be considered includes venture equity, later stage private equity and bridge to an initial or secondary public offering.
Finally, Schiff notes, as to "high-risk, high-reward" investors, "there aren't any. They're all moderate-risk, high-reward investors, and you have to recognize this going in.
~~~~~~~~~~~~~~~~~~~~~~
Peace,
M&M Man
Goodbye OTCBB hello T-3!
Goodbye OTCBB. . .Hello T-3!
LITTLE BOARD GROWS UP
NASD is about to kill the OTCBB. Get ready for T3.
SEC Reading Room reveals 'Enhanced Bulletin Board' is coming.
http://www.sec.gov/news/headlines/adv-marchround.htm
The much-maligned OTCBB has grown from a daily volume of 29m shares with $100m market volume since its introduction in 1990 to more than 400m shares and $400m market volume today. OTCBB data is now fed into more than 450,000 Level I terminals. Since 1993, all trades have been reported in real-time, and since January, 1999, every company trading on the OTCBB must be a reporting entity. On Feb. 8, 2001, the SEC approved a proposal prohibiting member firms from trading ahead of customer limit orders.
Today, some 3,800 companies are traded by nearly 300 marketmakers, quoting an average of 39,000 positions daily. All MMs subscribing to Nasdaq Level 3 service and in compliance with SEC Rule 15c2-11 are eligible to "voluntarily" participate in the OTCBB and may enter or exit at will. With 26m small businesses in the U.S., the number of companies choosing the liquidity of public equities is still miniscule.
A further breakdown shows 475 banks, 28 insurance companies and 3,265 companies trading, although 25% of the OTC companies have financial SIC codes. The largest company on the OTCBB was Publix Super Markets with a $9b market cap and $15b in revenues. Heroes, Inc., as of November, 2001, was the smallest, with a $302k market cap and revenues of $6.5m. Some 2,000 OTCBB companies have an average market cap of $1m or less. Some 42% of all trades are made in the top 100 OTCBB securities. The top 500 total 74% and the top 1,000 have 88% of the total. Likewise, 10 MMs handle 83.2% of the total trades.
In 1998, Investrend participated in and helped organize a "Bulletin Board" roundtable for the SEC Corporate Finance and Market Regulation staff and NASD, NASDR and the Nasdaq officers and capital market practitioners. Since that time, many of those participants have continued to work in an Advisory Committee to develop better practices. A meeting is scheduled this Friday in Austin, Texas.
Documents on file in the SEC Reading Room reveal that this committee has been quite busy. If all goes as planned, in January, 2003, a new "third-tier" -- or T3 -- issuer market operated by the NASD will begin, and by December, 2003, the OTCBB as we know it will be history. At that time, Nasdaq believes 2,000 qualifying OTCBB companies will be left, and the remainder will be relegated to the Pink Sheets.
As part of the transformation, qualifying small issuers will need to meet defined listing standards and pay listing fees. Minimal governance standards will require that companies must have at least 100 shareholders who own at least 100 shares each, and 200,000 shares in the public float. Also, the auditor must be subject to peer review, the company will need to issue an annual report, there will have to be an annual shareholder meeting with proxies and a quorum of at least 1/3rd of the shareholders present in person or by proxy.
Listed companies will need at least one independent director and there must be an independent audit committee with a majority of independent directors. Certain transactions will require shareholder approval, and rules will be in effect to prohibit voting restrictions.
Because Nasdaq has applied to the SEC to become an "exchange," some of the committee's ideas have already been vetted at the SEC and set aside as not acceptable. The major rejections had to do with trading on margin -- which will become a thing of the past in all Nasdaq markets if and when it becomes an exchange -- and the SEC is adamantly opposed to the elimination of the penny stock rules for the proposed T3 Exchange.
Although Nasdaq requires three independent directors on boards of its listed companies, due to the high cost of maintaining D&O insurance, T3 companies will be required to have only one independent director. Shareholder approval will be required for granting stock options to officers or directors, the issuance of large, below-market blocs of stock, and changes of control.
______________________________
HIGH-RISK, HIGH-REWARD INVESTORS
There aren't any.
Incomar Investments offers tips.
ceinvest@ix.netcom.com
The development-stage and small business enterprise has a special problem in attracting investors since institutional funds are not generally available, and it just won't do to try to tap into the retirement funds of residents at the local senior center.
While the rewards in finding the next General Electric are phenomenal, that's like winning the lottery, so only "high-risk, high-reward"-oriented investors who have set aside a small portion of their nest-egg as "monopoly money" or to play the lottery need apply.
Of course, the process can be a bit less challenging for the truly diligent, discerning investor, says Michael S. Schiff, partner in Incomar Investments, LLP, Houston, who spoke on Thursday's "Issuer Education" panel at the Community Capital Exposure Event co-sponsored by Investrend Forums. Schiff says this is where knowing management comes into play.
For those looking for this kind of capital, Schiff has some advice:
First, the "value proposition. What differentiates your product or service -- the elevator speech."
Second, he says the investor will be interested in a track record of successes, but if failures are not identified among the risk factors, and the deal goes sour, there could be trouble in the future. "Are you building a business in an industry with which you are intimately experienced? Do you have a well-prepared plan, with realistic, justifiable, supportable assumptions in your proforma financial projections?" Schiff asks.
"Do you have a strong, experienced, balanced executive team, to cover production, marketing/sales, distribution, accounting and systems? Do you know what kind of capital you want? How much? Do you have a current financial condition or risk profile of your company?"
Schiff notes that those looking for capital need to have a "realistic valuation" and must be flexible on terms, as investors want preferred positions in collateral and liquidity. Also, he says, the company's founders must think "growth = wealth. Don't focus on perecentage of ownership." He does say that founders should protect themselves with shareholder covenants and call rights.
He also states that other investors are going to want to know what you have personally at stake in the business, and what is the exit strategy.
"If your business is not the business of raising capital," he advises, "get help." Make presentations, approach "friends and family," approach recommended "angel investors" and evaluate institutional investors before approaching them to be sure that all investors you approach have expressed an interest in "buying what you are selling." The type of capital to be considered includes venture equity, later stage private equity and bridge to an initial or secondary public offering.
Finally, Schiff notes, as to "high-risk, high-reward" investors, "there aren't any. They're all moderate-risk, high-reward investors, and you have to recognize this going in.
~~~~~~~~~~~~~~~~~~~~~~
Peace,
M&M Man
Goodbye OTCBB. . .Hello T-3!
LITTLE BOARD GROWS UP
NASD is about to kill the OTCBB. Get ready for T3.
SEC Reading Room reveals 'Enhanced Bulletin Board' is coming.
http://www.sec.gov/news/headlines/adv-marchround.htm
The much-maligned OTCBB has grown from a daily volume of 29m shares with $100m market volume since its introduction in 1990 to more than 400m shares and $400m market volume today. OTCBB data is now fed into more than 450,000 Level I terminals. Since 1993, all trades have been reported in real-time, and since January, 1999, every company trading on the OTCBB must be a reporting entity. On Feb. 8, 2001, the SEC approved a proposal prohibiting member firms from trading ahead of customer limit orders.
Today, some 3,800 companies are traded by nearly 300 marketmakers, quoting an average of 39,000 positions daily. All MMs subscribing to Nasdaq Level 3 service and in compliance with SEC Rule 15c2-11 are eligible to "voluntarily" participate in the OTCBB and may enter or exit at will. With 26m small businesses in the U.S., the number of companies choosing the liquidity of public equities is still miniscule.
A further breakdown shows 475 banks, 28 insurance companies and 3,265 companies trading, although 25% of the OTC companies have financial SIC codes. The largest company on the OTCBB was Publix Super Markets with a $9b market cap and $15b in revenues. Heroes, Inc., as of November, 2001, was the smallest, with a $302k market cap and revenues of $6.5m. Some 2,000 OTCBB companies have an average market cap of $1m or less. Some 42% of all trades are made in the top 100 OTCBB securities. The top 500 total 74% and the top 1,000 have 88% of the total. Likewise, 10 MMs handle 83.2% of the total trades.
In 1998, Investrend participated in and helped organize a "Bulletin Board" roundtable for the SEC Corporate Finance and Market Regulation staff and NASD, NASDR and the Nasdaq officers and capital market practitioners. Since that time, many of those participants have continued to work in an Advisory Committee to develop better practices. A meeting is scheduled this Friday in Austin, Texas.
Documents on file in the SEC Reading Room reveal that this committee has been quite busy. If all goes as planned, in January, 2003, a new "third-tier" -- or T3 -- issuer market operated by the NASD will begin, and by December, 2003, the OTCBB as we know it will be history. At that time, Nasdaq believes 2,000 qualifying OTCBB companies will be left, and the remainder will be relegated to the Pink Sheets.
As part of the transformation, qualifying small issuers will need to meet defined listing standards and pay listing fees. Minimal governance standards will require that companies must have at least 100 shareholders who own at least 100 shares each, and 200,000 shares in the public float. Also, the auditor must be subject to peer review, the company will need to issue an annual report, there will have to be an annual shareholder meeting with proxies and a quorum of at least 1/3rd of the shareholders present in person or by proxy.
Listed companies will need at least one independent director and there must be an independent audit committee with a majority of independent directors. Certain transactions will require shareholder approval, and rules will be in effect to prohibit voting restrictions.
Because Nasdaq has applied to the SEC to become an "exchange," some of the committee's ideas have already been vetted at the SEC and set aside as not acceptable. The major rejections had to do with trading on margin -- which will become a thing of the past in all Nasdaq markets if and when it becomes an exchange -- and the SEC is adamantly opposed to the elimination of the penny stock rules for the proposed T3 Exchange.
Although Nasdaq requires three independent directors on boards of its listed companies, due to the high cost of maintaining D&O insurance, T3 companies will be required to have only one independent director. Shareholder approval will be required for granting stock options to officers or directors, the issuance of large, below-market blocs of stock, and changes of control.
______________________________
HIGH-RISK, HIGH-REWARD INVESTORS
There aren't any.
Incomar Investments offers tips.
ceinvest@ix.netcom.com
The development-stage and small business enterprise has a special problem in attracting investors since institutional funds are not generally available, and it just won't do to try to tap into the retirement funds of residents at the local senior center.
While the rewards in finding the next General Electric are phenomenal, that's like winning the lottery, so only "high-risk, high-reward"-oriented investors who have set aside a small portion of their nest-egg as "monopoly money" or to play the lottery need apply.
Of course, the process can be a bit less challenging for the truly diligent, discerning investor, says Michael S. Schiff, partner in Incomar Investments, LLP, Houston, who spoke on Thursday's "Issuer Education" panel at the Community Capital Exposure Event co-sponsored by Investrend Forums. Schiff says this is where knowing management comes into play.
For those looking for this kind of capital, Schiff has some advice:
First, the "value proposition. What differentiates your product or service -- the elevator speech."
Second, he says the investor will be interested in a track record of successes, but if failures are not identified among the risk factors, and the deal goes sour, there could be trouble in the future. "Are you building a business in an industry with which you are intimately experienced? Do you have a well-prepared plan, with realistic, justifiable, supportable assumptions in your proforma financial projections?" Schiff asks.
"Do you have a strong, experienced, balanced executive team, to cover production, marketing/sales, distribution, accounting and systems? Do you know what kind of capital you want? How much? Do you have a current financial condition or risk profile of your company?"
Schiff notes that those looking for capital need to have a "realistic valuation" and must be flexible on terms, as investors want preferred positions in collateral and liquidity. Also, he says, the company's founders must think "growth = wealth. Don't focus on perecentage of ownership." He does say that founders should protect themselves with shareholder covenants and call rights.
He also states that other investors are going to want to know what you have personally at stake in the business, and what is the exit strategy.
"If your business is not the business of raising capital," he advises, "get help." Make presentations, approach "friends and family," approach recommended "angel investors" and evaluate institutional investors before approaching them to be sure that all investors you approach have expressed an interest in "buying what you are selling." The type of capital to be considered includes venture equity, later stage private equity and bridge to an initial or secondary public offering.
Finally, Schiff notes, as to "high-risk, high-reward" investors, "there aren't any. They're all moderate-risk, high-reward investors, and you have to recognize this going in.
~~~~~~~~~~~~~~~~~~~~~~
Peace,
M&M Man
Update on potential market concerns:
Iraqi paper calls Cheney 'messenger of war'
BAGHDAD, March 14 (Reuters) - Iraq's most influential newspaper on Thursday called U.S. Vice President Dick Cheney a "messenger of war."
Cheney is on a Middle East tour of 11 nations, including countries bordering Iraq, to drum up support for U.S. military action against Iraq.
"The messenger of war will harvest nothing from his tour, but an increasing rejection to the American endeavour to launch a new war (against Iraq)," wrote Babel, newspaper of President Saddam Hussein's eldest son Uday.
Cheney gained valuable Arab support on Wednesday for a U.S. pressure campaign against Iraq, with Egyptian President Hosni Mubarak saying his country would push Baghdad to accept international arms inspectors.
"We'll try hard with Saddam Hussein to accept the U.N. inspectors to go there," Mubarak told a joint news conference with Cheney. "We are going to meet some of his special envoys and tell them that this is a must."
An Iraqi presidential envoy arrived in Cairo on Thursday for talks with Mubarak as part of a tour of Arab states to organise opposition against possible U.S. military strikes on Iraq.
U.S. President George W. Bush told a White House news conference on Wednesday: "I am deeply concerned about Iraq. This is a nation run by a man who is willing to kill his own people...a man who won't let inspectors into the country...He is a problem and we're going to deal with him."
Babel said: "If America commits another foolish action the Iraqi people know how to deal with it and the U.S. administration will find itself in a big crisis."
Washington has repeatedly warned Saddam that his country would face severe consequences if he did not allow the return of inspectors hunting for Baghdad's weapons of mass destruction.
The inspectors left Iraq on the eve of a U.S.-British bombing campaign in December 1998. A U.S.-led coalition, in alliance with key Arab states, evicted Saddam's forces from Kuwait in the 1991 Gulf War.
04:26 03-14-02
Bush: U.S. Will 'Deal With' Iraq
President Downplays Importance of Catching bin Laden
By SCOTT LINDLAW
.c The Associated Press
WASHINGTON (March 14) - President Bush has declared that Osama bin Laden is fading into irrelevance. Saddam Hussein remains ''a problem,'' however, and ''we're going to deal with him,'' Bush said.
Shortly after the Sept. 11 attacks, Bush said he wanted bin Laden ''dead or alive.'' Since then, as bin Laden vanished and the war progressed, Bush shifted his message, saying the war was about more than one man.
Bush took that rhetoric to new territory in a news conference Wednesday, saying of the al-Qaida leader: ''I truly am not that concerned about him.
''I was concerned about him when he had taken over a country. I was concerned about the fact that he was basically running Afghanistan and calling the shots for the Taliban.''
But, Bush said, ''We shoved him out more and more on the margins.''
Vice President Dick Cheney is on a coalition-building mission to the Middle East to make a case for widening the war on terror to include Iraq under Saddam. Bush took pains to say the United States will consult with allies on Iraq but didn't rule out unilateral action.
The president was continuing his consultations Thursday in a meeting with Prime Minister Jean Chretien of Canada, who sent hundreds of combat soldiers to Afghanistan for Bush's anti-terror coalition.
''I am deeply concerned about Iraq, and so should the American people be concerned about Iraq, and so should people who love freedom be concerned about Iraq,'' Bush said. ''This is a nation run by a man who is willing to kill his own people by using chemical weapons. A man who won't let inspectors into the country. A man who's obviously got something to hide.
''And he is a problem, and we're going to deal with him.''
In his fifth news conference, Bush dealt with a range of questions on nuclear strategy, Mideast violence, U.S. casualties in Afghanistan and other topics. He also laced the 45-minute session with humor, mostly at the expense of reporters. He mixed in jokes about their ''trick questions,'' banter on their nicknames and even a little Spanish.
Bush said he is leaving ''all options on the table'' as the Pentagon reworks its nuclear weapons policy to deter any attack on the United States, including from non-nuclear states such as Iraq, Iran, Libya and Syria.
''We want to make it very clear to nations that you will not threaten the United States or use weapons of mass destruction against us or our allies or friends,'' Bush said.
With envoy Anthony Zinni headed to the Middle East to try to cool deadly violence there, Bush said Israel's recent escalating military operations were ''not helpful.''
Bush also said he was ''plenty hot'' over news that his administration recently issued visas to two of the suicide hijackers who slammed a commercial airliner into the World Trade Center. ''I could barely get my coffee down when I opened up my local newspaper,'' he said.
Bush said he was confident in his pick to head the Immigration and Naturalization Service, James Ziglar. ''He's held accountable. His responsibility is to reform the INS; let's give him time to do so,'' Bush said.
He firmly rejected congressional investigators' requests for documents relating to his energy task force last year.
''I have an obligation to make sure that the presidency remains robust and that the legislative branch doesn't end up running the executive branch,'' Bush said.
He refused to acknowledge Zimbabwe's election, calling the victory of incumbent Robert Mugabe the result of a ''flawed election.''
AP-NY-03-14-02 0756EST
M&M Man
You jinxed yourself! Shhhh! eom
M&M Man
EELN up 9%. Good watch at this point. eom:)
M&M Man
EZ. . .LOL! I figure the less I say, the more apt a stock is to increase in price. Therefore, I have ceased talking about the ones I own LOL!
Peace
M&M Man
Question. . .will the vehicles LFZA produces in Italy be included in their "revenues" when they begin filing their quarterly reports? If they own the factory in Italy, one would think that the revenue coming out of that facility would be included in their financial reports. Any input on that one?
TIA
Peace,
M&M Man
Morning Sherry. . .thanks for posting the update!
Peace,
M&M Man
Charts to watch>>>>>>>>>>>>>>>
* = Moderate potential for price increase
** = Good potential for price increase
*** = Very good potential for price increase
**** = Excellent potential for price increase
* PVAT, ADAT, MCHP
** CMTO, EELN, VLNC, FONX, PLRP
*** GVLT, ECOC, CYBR
Peace,
M&M Man
Five isn't a bad number! If they can turn five vehicles out a month. . .that's 60 for the year. And by the time the stock takes off. . .I'll be a LONG term shareholder
. Less taxes! Yahoo!
Peace:)
M&M Man