Corruption is essentially a function of Core-ness in the “Pentagon’s New Map”
ARTICLE: “Oil, Cash and Corruption: How Influence Flowed Through Political Pipelines,” by Ron Stodghill, New York Times, 5 November 2006, p. BU1.
Transparency International’s “corruption perceptions index 2005” matches up very nicely with the PNM’s mapping of the world.
Basically, it’s the Old Core of the West and Japan that are the least corrupt, the New Core pillars that are more corrupt, and the Gap that is--on average--the most corrupt.

Bush says kleptocracy is an obstacle to democracy, but it’s a natural aspect to market adolescence, and the reality is that you need to develop your way past that adolescence before you’re likely to head into democracy anyway.

As I’ve noted many times, the states most reliant on the exporting of one or two raw materials, especially energy, tend to be the most corrupt and the most authoritarian. Anything that easy to control gets over-controlled, even though that approach remains the slowest way to grow an economy. So getting out of the Gap is first and foremost a function of getting FDI that diversifies your economic base.

But yeah, corruption scares that money off, which is why the Gap ain’t going away without some real effort.

Posted by Thomas P.M. Barnett at 1:59 PM | Comments (0

The China backlash on globalization is coming, and China’s smart enough to try and blunt it
EDITORIAL: “Wrong model, right continent: China knows what it wants from Africa and will probably get it. The converse isn’t true,” The Economist, 28 October 2006, p. 17.
ARTICLE: “Never too late to scramble: China is rapidly buying up Africa’s oil, metals and farm produce. That fuels China’s surging economic growth, but how good is it for Africa?," The Economist, 28 October 2006, p. 53.

Good editorial and good article.
Some factoids: China now consumes 10% of Sub-Saharan Africa’s exports, controls over $1b of FDI and boasts an overseas presence of 80k people.

So out comes the oil and ores and timber and down go the Taiwanese embassies.

Here’s the real point:

Sadly, China’s success is an obstacle, as well as an inspiration. Its rise has bid up the price of Africa’s traditional raw commodities, and depressed the price of its manufactured goods. Thus Africa’s factories and assembly lines, such as they are, are losing out to its mines, quarries and oilfields in the competition for investment. Even if Africa’s labor is cheap enough to compete with China’s, its roads, ports and customs are far from good enough. If they are to provide jobs for their workers, not just rents for their governments, Africa’s economies must find less-exposed niches in the world economy.
In the end, China needs to help build that local infrastructure more broadly (and not just around the sources of raw materials) and eventually help move lower-end manufacturing to Africa as it moves up the production ladder itself. But before that happens, the editorial notes, Africa should bargain better on a more collective basis with Beijing.
For now, China’s share of African total trade with the world is not much more than half America’s (we’re almost 20 percent) and still way below the dropping EU share (currently at just above 30%), but it’s likely to continue growing. For example, Angola recently surpassed Saudi Arabia as China’s chief source of oil. So trade is expected to double by 2010, with high concentrations in places like Sudan, where China absorbs 70% of the country’s exports.

Nigeria is a good example of China’s tactics: low-interest loans to the government allow Chinese companies to come in and rebuild infrastructure destroyed in decades of civil war. The debt is then repaid in oil.

Yes, China’s aid reduces Africa’s dependence on Western aid--and Western demands. And yes, China is more forthcoming with technologies.

But both China and India are still sporting too many tariffs against cheap African manufactures while flooding those same markets with their own cheap goods, thus stifling movement toward diversification away from raw materials.

Eventually, the backlash will grow and expand from complaints to resistance to riots to serious targeting of Chinese firms and people as purveyors of unfair globalization practices.

And this will be a good thing that helps China see it’s purpose in the world as being something beyond just taking what it needs for development back home.

Posted by Thomas P.M. Barnett at 2:11 PM | Comments (0) | Email this post

Saddam Hussein calls for reconciliation
By SINAN SALAHEDDIN and ROBERT H. REID, Associated Press WritersTue Nov 7, 10:04 AM ET
A somber Saddam Hussein called on Iraqis to forgive each other Tuesday, when he returned to court two days after being sentenced to death for crimes against humanity in another case.

Saddam, speaking to the court in the afternoon session, cited references to the Prophet Muhammad and Jesus who had asked for forgiveness for those who opposed them.

"I call on all Iraqis, Arabs and Kurds, to forgive, reconcile and shake hands," Saddam said after respectfully challenging one witness' testimony.

The ex-president, who was wearing a black suit with a white shirt, appeared subdued during the proceeding, where he and six other defendants are on trial for the Operation Anfal crackdown against Iraqi Kurds in the late 1980s.

Saddam showed none of the bravado of Sunday, when he shouted "Long live the people and death to their enemies!" as another court sentenced him to the gallows for the deaths of nearly 150 Shiite Muslims following a 1982 assassination attempt against him in the town of Dujail.

He and two others were sentenced to death by hanging. Four co-defendants received lesser sentences and one was acquitted.

Instead, he sat in stony silence Tuesday as Kurdish survivors told of being duped by promises of amnesty, only to watch their friends and family being shot by Iraqi government soldiers.

On Tuesday, the court called three witnesses who survived the Aug. 28, 1988, slaying of more than 30 Kurdish men who had surrendered after hearing of an amnesty offer.

The first witness, Qahar Khalil Mohammed, told the court that he and other men from his village turned themselves in after being promised that Saddam had issued an amnesty for them.

Instead, the 33 men were lined up at the bottom of a hill and soldiers opened fire on them.

"When they fired in our direction, we all fell to the ground," he said.

Mohammed said he was wounded but survived.

"When I went back, I saw my father and two brothers had been killed, as well as 18 of my relatives," he testified. He said an Iraqi medical officer used a broken bottle to clean his wound.

Another survivor, Abdul-Karim Nayif, repeated the false amnesty claim and submitted a video of a mass grave found near his village after the Kurds gained self-rule in 1991. The video showed numerous human remains.

The Anfal trial, which was adjourned until Wednesday, will continue while an appeal in the Dujail case is under way. The prosecution says about 180,000 Kurds, most of them civilians, were killed in the crackdown in 1987-88.

The chief prosecutor in the Dujail case said Monday that a nine-judge appeals panel was expected to rule on Saddam's guilty verdict and death sentence by mid-January. That could set in motion a possible execution in February.

The Iranian government called for the death sentence on Saddam to be carried out, saying the former Iraqi dictator was a criminal who deserved to die.

"We hope the fair, correct and legal verdict against this criminal ... is enforced," government spokesman Gholam Hossein Elham said Tuesday at a news conference.

Iran and Iraq waged a bitter eight-year war after Saddam invaded the country in 1980.

Shiites and Kurds, who suffered terribly under Saddam's Sunni-dominated rule, have hailed the sentence as just.

___

Sinan Salaheddin reported from Baghdad, and Robert H. Reid from Amman, Jordan. Some material from a pool report was included.

How serious is China getting on squeezing North Korea?
ARTICLE: “Money May Underlie North Korea’s Return to Talks,” by Evan Ramstad, Wall Street Journal, 2 November 2006, p. A4.
NEWS ANALYSIS: “North Korea Talks: Back to the Table, Some Reluctantly,” by Helene Cooper, New York Times , 2 November 2006, p. A8.

ARTICLE: “China May Be Using Oil to Press North Korea: Halting oil sales, even before a nuclear test, hints at a tough line,” by Joseph Kahn, New York Times, 31 October 2006, p. A10.

When I was in Beijing last month, I got earfuls about how serious the Chinese leadership were in squeezing the North Koreans toward more acceptable behavior--right down to the oil.
As these articles indicate, the squeezing from both ends got us at least a restart of the talks. U.S. squeezing was mostly financial, which got very specific complaints and requests from Pyongyang, especially since Chinese banks were seemingly dropping the DPRK”s business lest they get tagged.

The Chinese approach was preemptive: they stopped all oil sales to NK in September, apparently in anticipation of the test. Didn’t stop it, but a clear signal according to foreign policy experts in Beijing.

These are all baby steps, we must admit. Thinking these first acts will bring Kim to his knees on the nukes is a bit dreamy, as most American experts on Pyongyang argue, with one Heritage Foundation guy saying that China’s chief goal right now is to clamp down on all the counterfeit U.S. dollars floating around its economy.

The real purpose of all this activity shouldn’t focus on North Korea per se, but logically on China. Getting China to the confidence level of dropping Pyongyang for good is what’s going to get us what we really want (a denuclearized Korean peninsula) and really need (an East Asian NATO).

Fortunately for us, China wants #1 now and can be made to understand the logic of #2 far faster than most experts on our side realize

Movie Studio Heavyweights Want to Go Digital

In the spring of 2002 seven movie studios — Disney, Universal, MGM, Paramount, Warner Bros., 20th Century Fox and Sony, banded together to form the Digital Cinema Initiative (DCI).

Their purpose: To develop, in cooperation with the American Society of Cinematographers (ASC), a common, system-wide standard for digital cinema that ensures a uniform and high level of technical performance, reliability and quality control.

The 3 Big Reasons for All the Excitement

“Digital is a very big deal.”

— Dan Fellman,
president, Warner Bros.

Reason One: Money. Digital media is cheap!

Rick McCallum, a producer on Star Wars Episode II: Attack of the Clones, said it cost him $16,000 to shoot 220 hours of his movie on digital tape. If he had shot the same amount of hours on traditional analog film (literally a 19th century technology), it would have cost him $1.8 million.

Distributors will also save money.

A single analog film print can cost over $1,200. So imagine printing 4,000 copies for a worldwide release of a movie — it could cost a distributor $5 million or more (which doesn’t include the cost to ship all those reels of film in those heavy metal cans)!

But with a digital distribution system, whether you show a movie in 1,000 theaters or in just one, the cost is about the same.

“Digital projection is coming, not only to Landmark Theaters but to the larger chains, too.”

— The New York Times
Digital movies of course are nothing more than big computer files... and just like computer files they can be sent anywhere through a broadband cable or via satellite.

And so with hundreds of movies distributed every year on average, industry savings, using digital media, could reach $1 billion!

Now can you see why the industry is dying to go digital?

Movies can open in theaters all over the world on the same day — with hardly any additional cost or effort.

Theater Owners Will Make Even More Money

“This can be as profound a change in the movie-making experience as color and sound.”

— Titanic director James Cameron
Theater owners will also have more control and increased flexibility over programming.

In fact, they can change their programming as easily as you can rearrange a play list on an iPod.

With the flick of a switch, digital theaters can show supersized non-movie entertainment on their screens — like pay-per-view live concerts and major sporting events — and fill their houses with enthusiastic cash-waving audiences.

Just recently, a 90-minute concert by rocker David Bowie was simultaneously beamed by satellite to 22 digital cinemas across Europe. And a pay-per-view Bon Jovi concert was shown on theater screens the day before the band released its latest CD.

Studios can also distribute digital films with soundtracks in multiple languages to attract even wider audiences. A movie house could schedule a new blockbuster to play in Spanish at 5 p.m., Japanese at 7 p.m. and then go back to English at 9 p.m.

“You could see a substantial transition (to digital) by the end of 2006.”

— John Fithian, president, National Association of Theatre Owners
And when a movie is successful, theater owners can copy the digital file and feed it to multiple projectors within the movie house.

With celluloid, theaters must estimate in advance how many prints they’ll need. Then they’re often caught short when a movie is a surprise hit — and they have to wait for more prints to be delivered.

They can also turn a theater’s “dark time,” when they’re normally empty, into dollars. They can program content from museums and performing arts centers — content that their audiences would want to view — but can’t normally see on TV.

Theaters could also become more attractive venues for corporate presentations, college lectures and religious services — which would bring in even more dollars.

For example, theater-chain operators, like the Regal Entertainment Group, have leased their theaters to companies like Microsoft, Sprint, eBay and American Express for corporate events, complete with big-screen satellite presentations.

Protection Against Piracy –$3.5 Billion Saved

“The full optimization of theaters will come, experts say, when the business converts from celluloid to digital. The new format will allow not only for instant and dirt-cheap distribution of films but also for targeted distribution of independent films, distinct versions for unique audiences, subtitles, and dubbing, never mind beamed-in rock concerts or kids’ shows.”

— Andy Serwer, FORTUNE editor at large, FORTUNE Magazine
Reason Two: When a movie is digitally encrypted, and with only the theater owner or vendor in possession of the releasing key or code, bootleg copies will become more traceable, enabling prosecution — which could make movie piracy a thing of the past.

The Motion Picture Association of America estimates Hollywood lost $3.5 billion last year to bootleg movies.

And $3.5 billion saved — is $3.5 billion earned!

Reason Three: The audience. They benefit, too. Digitally-recorded images are clearer, cleaner and crisper, and remain so even when viewed 1,500 times.

Celluloid, over time, wears thin, scratches, smudges and tears, and eventually has to be replaced.

And, with digital tape, each movie frame is more evenly lit, from edge to edge. There’s no bright spot in the middle as there is with celluloid film.

The whole theater experience will be dramatically enhanced, which may lead to increased attendance — which would bring in even more dollars!

So How Did This Tiny Company
Single-Handedly Conquer Hollywood?

“...A digitally projected digital movie is a shiny marvel...”

— Entertainment Weekly

Founded in 2000 in Morristown, New Jersey, this visionary software company saw its opportunity and jumped all over it.

And now it owns the keys — the 4 keys — to the digital cinema kingdom.

Key #1- Distribution Management Software: In its simplest form, this company owns the listing service that enables digital content owners (movie studios, independent producers, etc.) and distributors to buy and sell program content online.

So a content owner, for example, can log on to this company’s Web site and list all its available digital titles for sale or rent.

Key #2- Exhibition Management Software: Movie theatres, museums, community arts centers and other venues that exhibit programming to large audiences could then log on to this same Web site and view all the available content.



Massive Revenue Acceleration!

“We applaud the successes of this company and acknowledge it as one of the very few to accomplish such a fast growth rate over the past five years.”

— Paul Mlynarski, partner,
Deloitte & Touche LLP

Key #3- Managed Digital Delivery: Once an exhibitor finds the content that he’d like to order, the selection screen provides a link that sends a “Memo of Interest” to the distributor.

And then from that point forward the service takes care of transmitting the selected title to the theatre — securely and efficiently.

Key #4- Common Platform: The company’s proprietary software programs enable the different brands of hardware owned by distributors and exhibitors (projectors, servers and routers ) to “talk” to one another — eliminating any and all technical incompatibilities.

Year Over Year Revenue Growth – 58%

2-Year Revenue Growth – 99%
The company has also signed formal agreements with various satellite and bandwidth providers, system integrators and hardware vendors (digital projector manufacturers, for example) to host their system, and further spread their digital cinema revolution.

Okay... so the company has the means to deliver on the promise.

But... can the company turn the promise into a moneymaking, profit bonanza for its shareholders?

You bet!

This Company Is Intent on World Domination

1,202% Year Over Year Cash
In the summer of 2005, the company announced a major studio-backed plan to deploy 4,000 DCI-compliant digital projection systems throughout the United States by the end of 2007 (and it’s already way ahead of schedule).

It is the first and largest deployment of its kind in the world.

Not only would this deployment have a major impact on the company’s bottom line in the here and now — it’s also thought to be the blueprint for the potential conversion of all 105,000 cinema screens throughout the world.

Coming Soon to a Theater Near You

And this is no pipe dream — bags of money will flood this company’s coffers...!

Many of the highest-grossing films of 2006 have been digital releases. They include, in order of domestic gross:

Pirates of the Caribbean: Dead Man’s Chest (2006 box office gross - $416,591,183)…
Cars (2006 box office gross - $242,618,740)…
X-Men: The Last Stand (2006 box office gross - $234,337,076)…
The DaVinci Code (2006 box office gross - $217,536,138).
1st Quarter 2007
Revenue Growth Estimates – 40.42%

2nd Quarter 2007
Revenue Growth Estimates – 118.23%

3rd Quarter 2007
Revenue Growth Estimates – 162.02%

— Charles Schwab Research

And let’s not forget these winners:

Superman Returns (2006 box office gross - $197,430,626)…
Ice Age - The Meltdown (2006 box office gross - $195,329,763)…
Over The Hedge (2006 box office gross - $155,019,340)…
Talladega Nights: The Ballad of Ricky Bobby (2006 box office gross - $143,040,578)…
Click (2006 box office gross - $136,812,330 )…
Mission Impossible III (2006 box office gross - $133,501,348).
Which brings the total 2006 box office gross, for these digital releases, to a whopping $6,601,887,559 – and don’t forget some of these films are still in theaters making money!

And Why Are These Billions of Dollars Important to You?

You’ll love this...

Every time a digital film is shown on a digital projector supplied, owned or financed by this company (and a truly significant portion are) the company is paid a royalty.

AND... even if a theater doesn’t use this company’s equipment... if the company merely delivers a digital movie to the theater — it’s still paid a royalty!

Are you seeing the possibilities here?

And Next Year Promises to be a
Blockbuster Digital Movie Bonanza!

“National CineMedia, a joint venture formed last year by theater owners AMC, CineMark, and Regal, recently hired J.P. Morgan Chase to help develop a financing plan to convert 13,000 screens to digital cinema. J.P. Morgan will try to raise about $1 billion for the effort over the next six months.”

— Los Angeles Times

In fact, next summer is expected to be the biggest single movie season in history.

Here’s what’s on tap to be released:

May 4: Spider-Man 3
May 18: Shrek the Third
May 25: Pirates of the Caribbean: At World’s End
June 8: Ocean’s Thirteen
June 15: Fantastic Four: Rise of the Silver Surfer
June 22: Evan Almighty
June 29: Live Free or Die Hard
July 4: Transformers
July 13: Harry Potter and the Order of the Phoenix
July 27: The Simpsons Movie
August 3: The Bourne Ultimatum

And every one of these films will be a digital release.

Our prediction is that this company’s stock price is going to soar — again!

How Soon Could You See $147,300 in Your Pocket?

Let me put it to you this way… In just 21 months, this company’s share price has already skyrocketed 360.22% — from a share-price low of $3.20 in August of 2004 to a high of $14.73 in May of this year.

Had you bought just 1,000 shares of this company at a cost of only $3,200 — you would’ve more than tripled, almost quadrupled, your money, and pocketed $14,730.

Had you bought 10,000 shares — for just $3.20 a share — right now you’d be smiling ear to ear with $147,300 in your pocket.

Your Profit Window: Buy This Company
Now at Just Around $8 a Share

Currently the company’s share price has backed off from its all-time high, and now hovers around $8 a share. And that’s not bad news — not by any measure.

Just the opposite.

If you’ve been in the market for any length of time, you know that no stock moves straight up without occasional pause or pullback.

Indeed, occasional short-duration pullbacks are what you hope for in a stock. It offers you, as a potential investor, an excellent entry point to either add or establish a position.

A pullback is also “the pause that refreshes” — allowing “technical” strength to build up in a stock. In effect, it “primes the spring” that propels the stock to new and durable highs.

If you can afford the price of a movie ticket... and before this company’s share price shoots up again... take advantage of this little gem for odds-on, fast-paced and stellar gains.

Just click on the link at the bottom of this letter, and I’ll immediately send you a Free Special Report, with even more information about this blockbuster investment opportunity.

Why am I So Confident This Company
Will Be Your Shortcut to Monumental Gains?

“There are two or three serious and significant deployment plans that will come together over the next couple months.”

— Julian Levin,
executive vice-president,
20th Century Fox
Allow me to briefly introduce myself, and you’ll quickly understand.

My name is Christian DeHaemer, and I’m the editor-in-chief of the Red Zone Profits Trade Analysis System.

Over the years, Red Zone Profits has been profiled in the Los Angeles Times, Forbes Magazine, MarketWatch.com, StockDr.com, Money Matters, Personal Finance Radio, On the Money, and The Hollywood Reporter, to name but a few.

And the reason is simple: I pick winning stocks.

I’ve beaten the market — the Dow, the NASDAQ, the S&P 500, every year for the last five years.

Who else do you know who can say that?

A Winning Track Record You Can Bank On

Here’s our cumulative year-end totals for all closed Red Zone Profits recommendations.

In 2002: We closed the year up +531%…
In 2003: We closed the year up +2578%…
In 2004: We closed the year up +1756%…
In 2005: We closed the year up +1432%
And today in 2006(YTD): We’re up a stunning +2677%.

And let’s be clear: that’s the sum total of every one of our recommended picks — winners, losers and draws. Not just the best plays that we “cherry-picked” in order to impress you.

But — if you want to be impressed — here are just a few of our recent winners and the length of time we held the position:

184% and 243% gains on the first half of a Cemex play — in only 3 months…
184% and 220% gains on the second half of a Cemex play — in only 4 months…
97.6% gains on Solidere — in only 11 months…
337% and 363% gains on an Evergreen Solar play — in only 1 month…
134% gains on Arena Resources — in just a year…
89% gains on Quilmes SA — in only 11 months…
66% gains on half of Left Behind Games — in only 1 month.

Want to be further impressed? Since 2002, my Red Zone team has closed out positions on 391 recommendations — an average of one to two a week. And our total gain — counting every single pick, losers included — 8,974%!

Now I don’t know how you feel... but even the multimillionaires I know won’t turn up their noses to me putting an extra hundred thousand dollars in their pocket.

And that’s exactly why I’m writing to you today: I want to help you get rich. And if you’re already rich... I want to help you get even richer!

Why Red Zone Profits Delivers Time and Time Again

“In the month of January alone this year, I made $213,800 on three nano stocks. It is awesome!”

— R.C., Red Zone Profits subscriber
Red Zone Profits is a novel and unique publication, offering investment opinions based upon a revolutionary, never-before-seen System.

Red Zone Profits combines technical and fundamental analysis in a new and uniquely predictive way to identify high-profit — very high-profit — opportunities in stocks and options that could provide fast gains in a minimum period of time.

Of course all this sounds very impressive... but where’s the proof?

Right here:

As I just stated... since 2002 my Red Zone Profits System is up 8,974%. A truly amazing number indeed. And I get that number by simply adding up the winners and subtracting the losers.

“I bought Cemex in October 2005 at $1.10 and sold them yesterday at $7.70 for a 600% profit. Thanks!”

— A.S., Red Zone Profits subscriber
And that comes out to an average daily return — yes, daily return — of 5.45% for the past four years — on more than 300 recommendations — which roughly equals two trading recommendations every week.

You don’t trade twice a week? Nobody says you have to.

But isn’t it comforting to know, whichever way the market is moving — up, down or sideways — and no matter what hot economic, political or social event is influencing the market during the course of the week — you can rely on me and my team to tell you about a money-making opportunity, on average, twice a week!

Money Speaks Louder Than Words

“Sold 3/5 of position (30 calls), for net gain of $27,682. Will close out remaining 20 calls this week for expected gain of approximately $22,000. Thanks for the heads up on this.”

— A.A., Red Zone Profits subscriber
With Red Zone Profits you’ll never have a reason for worry or concern. I’ll always tell you exactly where I think the best investment plays are, so you won’t ever have to second-guess the market.

Just read my analysis and you could easily see substantial gains no matter what the stock market is doing.

So now... let me ask you one question:

Do you know of any other trading research service that can deliver equal or better gains than we can?

154% gains on Niku Corporation in 12 months and another 123% just a month later...

162% and 100% gains on Markland Technologies in just 5 and 6 days, respectively...

“I have been a subscriber of Red Zone since about August last year. I have traded on and off for about 15 years, and really enjoy your newsletter. I finally funded my account at my brokerage with $5,000 and had also been trading some covered calls from another advisory service. However, since I had them in energies and gold, they did not protect my portfolio in this last dip in the gold and energy markets so my portfolio went down to about $3,500 pretty rapidly. However, since I use a stop loss from 2-5% of my account value, I still had enough left to take some of your recommendations, such as the SEAC, CDE, BIVN, ELN and DD.

“Well, the great news is thank you so much for advising me of the above stocks. They are returning my account to green very rapidly, and in no way shape or form could I have ever discovered these amazing stocks and options alone. Your service is invaluable… You are literally saving my account from ruin, so I wanted to say thank you. Your insights, and picks are tremendous.”

— P.A., Red Zone Profits subscriber

127% gains on Petro-Kazakhstan calls in just 2 weeks...

79% gains on Videsh Sanchar Nigam Ltd in a little over 4 months...

147% gains on Biophan in just 9 months...

109% gains on Priceline.com in just 5 months...

91% gains on Geron in just 3 weeks...

121% gains on Penn National Gaming in just 12 months...

70% gains on Genesis Microchip in just 4 months...

79% gains on Phelps Dodge in just 6 months...

102% gains on Bluefly in just 2 months...

515% gains on PalmSource in just 3 days...

338% gains on Evergreen Solar in less than 1 month…

206% and 154% gains on Vitesse in just 11 months and 18 months, respectively.



My First Rule for Investment Success: Lose No Money

“...71% profit in 10 days. It works for me!!!”
— R.S., Red Zone Profits subscriber
Like the Hippocratic Oath that medical doctors take which states, “Do No Harm,” Red Zone Profits’ oath states, “Lose No Money.”

That’s why we screen for companies that have strong fundamental values such as powerful insider buying and a solid balance sheet.

For example, if a company trades for less than cash on its balance sheet (indicating a potential bargain), and has a price-to-earnings growth number (PEG) below 1.0 (indicating that it may indeed be a bargain) — it could become a candidate for more intense review.

Of course, we also look at the charts. And what we look for specifically is one of the most useful technical analysis tools available to the modern-day trader.

I call it the “loaded gun”...

Little-Known Secrets of Technical Analysis

“Another home run... whoever says you can’t make money in this market must not be a Red Zoner... keep up the good work boys!!”

— S.M., Red Zone Profits subscriber
Most analysts fall short by tending to look at either technical OR fundamental analysis. But my team and I, we look at both.

The “loaded gun” occurs when a stock exhibits a “bottoming pattern.”

If you can find a “flatline” on a chart you’ll see what I mean.

The “flatline” or the “bottoming pattern” represents buyers and sellers in equal numbers — where the buyers are buying on the dips, and the sellers are selling at the resistance points.

And this flatline or bottoming pattern can go on and on (until the last seller cashes in his chips, and the only people left are the buyers.)

And so, every day that this bottoming pattern continues, with the chart moving sideways — “the spring” gets wound a little tighter... like a loaded gun waiting for the hammer to fall and a spark to ignite — causing a powerful explosion that sends the stock flying upward.

What can cause the spark?

A news event, an earnings report, whatever, and then... KABOOM! The stock takes off!

The “loaded gun” of course happens all the time, but the trick is... knowing when the last seller is ready to sell.

Otherwise, you could be holding on to a “dead stock” for years.

So you need something more — a sign that the stock is percolating and building pressure for a blastoff.

3 Signs to Tell You You’re
Looking at a Screaming Winner

“...Sold AMR this a.m. @ $6.95 for a $20K profit in 7 trading days. Thank you. Thank you. Thank you.”

— P.P., Red Zone Profits subscriber
The Trigger — A volume surge: This indicates a renewed interest in the company.

The Hammer — A “gap up”: The stock gaps up as buyers overwhelm sellers. This is a precursor to a “bump-and-run rally.”

The Spark — A break above the resistance point: All analysts watch resistance points and trendlines.

And if a stock breaks above a 200-day moving average, or a major resistance point, computer-based buy signals are activated all across Wall Street. And then a rally becomes a self-fulfilling prophecy.

But these factors are still not enough. And I’ll tell you why...

You Want Downside Insurance

Another one of my rules is that the company under my microscope must have fundamental value in order to offer the most protection from downside risk. And I determine value by three factors:

Insider Buying: Strong insider buying is always a good indicator that those who know the most about a company are willing to put their money where their mouths are. You’ll rarely go wrong when you buy alongside a company’s CEO and CFO.

A Solid Balance Sheet: I like companies that trade for less than their assets. I really like stocks that trade for less than cash.

This means that the market capitalization of the stock is less than what the company has in the bank, plus short-term investments, minus debt (cash + liquid investments - debt > market cap = amazing buy).

This is a no-brainer. If the market values a company at less than the total amount of its cash, then by definition it’s undervalued.

“I bought SURE at $7.51 and sold it at $18.33 for a nice profit of 244%.”

— L.L.C., Red Zone Profits subscriber
A PEG Ratio Under 1: A PEG ratio stands for Price-to-Earnings over Growth (PE/G). It tells you not only the relative value of a company using the Price-to-Earnings ratio (P/E) but it also takes growth into account (a safer way of valuing a company.)

And when a stock meets all of the above six criteria... it enters my “Red Zone.” And only then does it become a recommendation.

And if you act in a timely manner, Red Zone Profits recommendations will almost always go up in value.

Start Investing Like It’s 1997 All Over Again!

“Thanks guys for the great trade — we banked 90% on the QQQ trade — sweet action.”

— J.W., Red Zone Profits subscriber
And you can, because it’s been more than 10 years since I’ve seen a market like the one we’re in right now.

There are so many “loaded guns” out there.

Really! We haven’t seen a market like this since the early 1990’s when the Dow Jones Industrials (DJIA) traded in the 3,000’s for four years. That’s right, in February of 1995 the Dow was at 3,845.86...

And then, the following year — BAM! — it was at 5,395.30.

Another massive gain, following a flatline market, also happened in 1954–1956, when the Dow jumped from 292 to 470 after trading in the 200’s since 1950.

And Now the Celebrated “Dow Theory”
Has Signaled the Start of the Next Bull Run!

If you’re not familiar with the Dow Theory... then, very quickly... it states that if the Dow Jones Industrial Average (DJIA) and the Dow Jones Transport Average (DJTA) both move in the same direction — hitting a significant high (or low) around the same time — you can positively declare the start of a bull (or bear) market.

Since the Dow Theory was first observed, 104 years ago, it’s been an accurate predictor of stock direction — 92.6% of the time.

So guess what?

On Oct. 26, 2006, the Dow Jones Industrial Average (DJIA) closed at 12,163 — marking an all-time high!

On May 10, 2006, just a few months ago, the Dow Jones Transport Average (DJTA) hit 5,038 — an all-time high !

This confirmation signal means we have a 92.6% chance of being correct when we proclaim that we’re in the first stage of the next great bull run!

I just can’t tell you how excited I am about this. And you should be as well.

The last significant Dow signal occurred in 1997 right before the Dow Jones Industrial went from 5,800 to 12,000 — and the NASDAQ went from 1,500 to 5,200 — it was the greatest bull market in history...

Creating a New Millionaire Nearly Every Minute

Now that the Dow Theory has officially confirmed a new bull market, it’s only going to get better very quickly...

Why?

According to Stock Trader’s Almanac, most bull market rallies start in October with November, December and January being the best months. The total gain on the S&P 500 since 1950 has been 49.4% in October, 91.5% in November, 92.5% in December and 80% in January.

So don’t think that you can wait to hitch a ride on the Dow’s next big bull run.

And remember: He who hesitates — loses...

Especially When It Comes to
the Digital Cinema Revolution

All the big movie studios and distributors have slated their biggest blockbuster releases for November 24 — Black Friday — the day after Thanksgiving. It’s the biggest movie day of the year.

And all the big Wall Street brokers and money managers — who have their eyes square on their year-end bonuses — know this.

So... they’re looking to buy — and sooner or later, they’ll get wind of our little New Jersey Cinderella company... and drive up the price.

So you need to get in there first — and snatch up as many shares of this digital cinema pioneer as quickly as possible — and certainly no later than November 24!

Speed and Timing Are Crucial

“In at $.50 and out at $1.10 for a very nice 120% in 3 weeks will work every time. Thanks!”

— T.E., Red Zone Profits subscriber
Indeed, the essence of our trading research service is due diligence and exact timing.

And we hold our investment picks anywhere from six days to a few years — until we either hit our profit target, or our proprietary “sell signal” is triggered.

But, rest assured, we’ll always tell you when it’s time to get in, and when it’s time to quickly get out (of course, if the going is good we’ll tell you to just hang in there for even bigger possible gains).



Staying Informed Is Key

“ADSX has done great. Thanks for the info. I got in at $4.77, and sold the stock at $7.50.”

— D.S., Red Zone Profits subscriber
And you always will be as a Red Zone Profits Member.

Members of Red Zone Profits receive...

Confidential Profit Alerts: When we spot an opportunity to make big gains you’ll be the first to know. You’ll get an e-mail telling you exactly what’s happening, and offering you our opinion on what to buy, and at what price.

And when we think it’s time to sell, we’ll let you know that too — immediately. Then, all you have to do is follow the System, and haul your profits to the bank. It’s that simple!

FREE Daily Updates! Every day, I’ll send you the American Capitalist, our “market-pulse” publication — detailing what’s happening in the market — and giving you current info on all our “open positions.” AND, you’ll also receive our daily Dynamic Market Alert — providing you with exclusive in-depth financial information, market intelligence and commentary — designed to alert you to investment opportunities — before they happen.

“I bought 8 options at $0.40... and sold this morning at $1.00 for a 150% gain. Good call!”

— L.C., Red Zone Profits subscriber
FREE PRIVATE ACCESS to our Red Zone Members-Only Web site, where you’ll have complete and unfettered access to our archive of past recommendations and analyses... and much, MUCH MORE...

Plus, you’ll receive complete and immediate access to all our, information-packed Special Reports where we thoroughly review all our current holdings and all our new picks, and examine in detail the cyclical trends that are coming to bear on each sector of the market.

Now I don’t want to appear immodest. But these are the kinds of Reports that the professional players I know would pay dearly for.

And if they were compiled by large investment companies — they would cost thousands of dollars — and they’d be worth it — every penny. But as a Red Zone Profits Member, you’ll get them for FREE.

And of course, as soon as you join us, you’ll also receive access to your FREE Special Report The Digital Revolution about the company that’s digitizing Hollywood.

And... If You Subscribe Right Now...

I’ll give you two more hot investment recommendations — outlined in two additional Special Reports:

Hot Bonus Investment Recommendation #1:
The 20-Year Stock!

Stick this overlooked and undervalued company in your retirement account. Then, let it do its magic for the next 20 years... and you could have a million dollars to draw on.

The company buys hospitals, then leases them back to the health-care companies — long term.

It’s got a forward price-to-earnings ratio (P/E) of 10. A profit margin of 63.17%. Quarterly revenue growth, Y-O-Y, of 81.8%, and is expected to continue paying a 7.7% dividend.

Tell me, are those numbers to drool over, or not?

Health care is the fastest-growing segment of the U.S. economy. And I predict it’s going to grow even faster and higher as the baby boomers grow older.

“ASTM — bought at 92 cents and sold at $3.65.”

— F.H., Red Zone Profits subscriber
When the market “discovers” this hot stock — watch out! What a ride that’s going to be!

And it’ll be yours... when you subscribe...

Hot Bonus Investment Recommendation #2:
Profits as Hot as the Sun!

With gas prices tugging at America’s wallets and crude soon heading back above $70 a barrel, there’s a lot of interest in alternative energy. Everything from ethanol to bio-diesel is being touted as a potential savior — and alternative energy stocks are soaring!

Well, I’ve found a company that’s a shiny bright star in the solar energy field.

The industry as a whole boasts a compound annual growth rate of around 35%. By the way, we’ve played the solar technology field before, when we took 363% gains on Evergreen Solar options.

Now, we’re looking at a great buying opportunity in another powerhouse solar stock. It’s a company that provides photovoltaic systems — throughout the most populous nation in the world — China!

China’s power demand, as you well know, is growing almost exponentially. And considering the amount of fossil fuels China already burns, I expect solar power adoption to skyrocket.

And that skyrocketing growth rate is already evident in the company’s financials.

This is a value stock, growth stock, and emerging technology stock all rolled into one — and it could be your next great stock buy — a possible 10-bagger!

Your Burning Bottom-Line Question Answered...

“Bought 1,000 shares of VSL $7.29 and got out, on your advice, today at $15.95 for an $8,700 profit… Thanks again...”

— S.M., Red Zone Profits subscriber
How much will a subscription to Red Zone Profits cost you?

Considering all the evidence — the hard facts I’ve presented to you within this letter — the answer should be obvious. A Red Zone Profits subscription is not going to cost you anything — in light of all the gains you’ll be positioned to pocket!

In the next 12 months you could see more fast-paced gains than you ever imagined possible.

And any investor who’s been around the block a few times, and can recognize a rare opportunity when they see it, wouldn’t even flinch if I said a year’s subscription to our trading research service is priced at $2,500.

BUT, you won’t have to pay $2,500... or even $2,000... or even $1,000.

A year’s subscription to Red Zone Profits is yours Risk Free for only $295.

Yes, you read that right.

You’ll receive over 200 potentially profit-making recommendations — buys and sells — e-mailed directly to you over the next 12 months for only $295. That works out to be less than $1.50 a play! Where in the world can you ever get that type of analysis for that low a price?

But Wait... If You’re Not Happy —
You Won’t Even Pay That

Because I want you to test Red Zone Profits for the next 90 days — FREE !

That’s right FREE! If you’re not completely satisfied and seeing gains at the end of 90 days — you won’t owe me, or my research service, a penny — you say the word and I’ll immediately send you a FULL REFUND on your subscription. No questions asked.

And even if you decide to cancel Red Zone Profits, you can still KEEP EVERYTHING I send you... FREE of charge! Let me repeat that:

If you decide to cancel Red Zone Profits, I’ll give you your money back, AND you can still keep everything I send you, including the three Special Investment Reports.

All Yours to Keep — With No Strings Attached or Obligation of Any Kind.

“Up 41% on ALTI, 38% on TGAL, 43% on NANX, 23% on NGEN. So far so good!!! All those %’s add up to about a $13,000 gain in less than 20 days...!”

— C.H.L., Red Zone Profits subscriber
And here’s an even better deal!

If you grab a two-year Risk-Free subscription to Red Zone Profits right now — you’ll receive 24 months of high-caliber, gains-grabbing investment research for only $385.

That’s a 30.5% discount off the one-year subscription rate — a savings of $205.

So don’t hesitate — subscribe right now.

Because you’ve got absolutely nothing to lose... and a world of wealth to gain.

Yours truly,

Christian DeHaemer
Red Zone Profits

P.S. Remember: As soon as you subscribe, you’ll receive my three “sure-to-be blockbuster” investment recommendations contained in the following three Special Reports:

The Digital Revolution: The company that’s digitizing the movie and entertainment business and bringing it into the 21st century.

The 20-Year Stock: The one investment that just might secure your retirement — and stuff $1 million in your pocket.

Profits as Hot as the Sun: The alternative energy company that’s powering up China — and possibly your entire investment portfolio.

Yes! These three stocks could make you rich beyond your wildest dreams — but only if you subscribe NOW!

Seize this investment opportunity — before Wall Street takes notice, and skyrockets these hot, undiscovered stock picks.

The clock is ticking — don’t miss out!

Information as of: August 10, 2006