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Wednesday Nov 08, 2006

Courage, Foresight, Profits

Taipan Group's Dynamic Market Alert

By J. Christoph Amberger

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Courage, Foresight, Profits

by J. Christoph Amberger

“Another one who keeps his wallet in his front pocket.”

As I laboriously fished my business card from the overly crammed crevices of my wallet, the business journalist I had been chatting with about joining our TaipanFinancialNews.com editorial team smiled, leaned back while stretching out his leg, and dragged his own pocketbook from a front pocket of his pants.

“I’m from New York City,” he explained. “Nobody there can afford to keep his money in a back pocket.”

“Same with Berlin,” I concurred. “Big city subways have a way of teaching you a lesson or two.”

On the morning after the midterm elections, it looks like putting your wallet out of reach will be good advice for many people. Democrats took control of the House of Representatives and the outcome of the Senate races will depend on a few hundred votes here or there -- with the possibility of another Democratic victory being quite distinct.

And if you listened to the various acceptance speeches, there’ll be plenty of hand reaching for those wallets. “Windfall profit” taxes (another word for nationalizing parts of private industry), additional taxes on gasoline, government subsidies for college tuition (through tax credits), and a reversal of the Bush administration’s tax cuts are being bantered about already.

All of which will redistribute wealth from private hands into government spending.

Wall Street is giving us an idea of what we can expect. Stocks opened sharply lower as the news percolated through the system. This may just be a temporary setback -- it may take months if not years to sap the American economy of its power. But for those who did not buy into the campaign mantra of “change,” the economic consequences of our political prospects are taking on shape.

“The liberal vision is a more attractive vision because it assumes away many of the painful and even brutal aspects of human life, especially the fatal dangers of relying on words when dealing with people who only respect force that is backed up by a willingness to use it,” wrote columnist Thomas Powell yesterday.

“Democrats have learned to avoid admitting to being liberals and this year are running a number of moderate candidates,” he continues. “If these new moderate candidates are elected and give the Democrats control of Congress, that control will be exercised by senior Democrats who will hold leadership positions -- and all of them are liberal extremists, whether people like Nancy Pelosi in the House or Ted Kennedy and John Kerry in the Senate. Getting people to vote for moderates, in order to put extremists in power, may be the newest and biggest voter fraud.”

This scenario has now become reality. It’s especially bad news at a time that requires an unprecedentedly large segment of the American population to step up to the plate and take charge of their own financial well-being and wealth-building... for their own retirement and long-term insurance needs.

The coming months and years will place a premium on initiative and responsibility for those of us who can see farther ahead in what our economic future will look like. It will require that you maintain self-discipline and determination to succeed against increasing odds.

It also reaffirms our commitment at TaipanFinancialNews.com and the Dynamic Market Alert to help you wherever we can. Being contrarians at heart, we like a challenge when we see one... and prevailing in our goals to provide our readers with viable options at financial independence against an increasingly redistribution-oriented culture is a challenge we love to accept.

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Earnings Announcements

4Kids Entertainment, 51Job Inc, Aastrom Biosciences, Aceto Corporation, Albany Molecular Research, Applied Digital Solutions, California Pizza Kitchen, Capstone Turbine, China Yuchai International, eLong Inc, Emerge Interactive, Expedia Inc, Four Seasons Hotels Inc, Gene Logic Inc, Goodyear Tire & Rubber, Hansen Natural, Hollywood Media, Hythiam Inc, Kos Pharmaceuticals, Lions Gate Entertainment, Merge Technologies Inc, Pacific Sunwear of California Inc, Reliant Energy, Sappi Ltd, Star Scientific Inc, Tom Online Inc, Walt Disney, Westwood One, and Wireless Facilities are releasing earnings.

Brought to you by http://www.AmericanCapitalist.net

 

Unlock Dates for November 2006

11/8/06 – Basin Water is unlocking 6 million shares.
11/13/06 – Restore Medical is unlocking 4 million shares.
11/14/06 – Burger King is unlocking 25 million shares.
11/21/06 – Mastercard is unlocking 61.5 million shares.
11/29/06 – Luna Innovations Inc is unlocking 3.5 million shares.

Brought to you by http://www.gressor.com

 

Upgrades and Downgrades

F5 Networks downgraded by BMO Capital Markets from Outperform to Market Perform.

Harrah’s downgraded by Bear Stearns from Outperform to Peer Perform.

OSI Pharmaceuticals Inc downgraded by Wachovia (Outperform to Market Perform) and by JP Morgan (Overweight to Neutral).

Toll Brothers downgraded by Wachovia from Outpeform to Market Perform.

True Religion downgraded by CIBC World Markets (Sector Outperform to Sector Perform), by Friedman Billings (Outperform to Market Perform), and by Wedbush Morgan (Buy to Hold).

Verizon downgraded by Bernstein from Outperform to Market Perform.

Cumulus Media upgraded by Stifel Nicolaus from Hold to Buy.

International Game Technology upgraded by Soleil (Hold to Buy) and by Bear Stearns (Peer Perform to Outperform).

Urban Outfitters upgraded by CIBC World Markets from Sector Perform to Sector Outperform.

Whole Foods upgraded by JP Morgan from Neutral to Overweight.

Brought to you by http://www.vixtrader.com

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Quote of the Day:

“No one ever went broke underestimating the intelligence of the American public.” 

- Henry Mencken

“Given the greater political shrewdness of the Democrats and the overwhelming bias of the media in their favor, it is remarkable that Republicans have had any political success at all. That the Republicans are still a viable party is one measure of how far the Democrats’ policies and values differ from those of most Americans.”

- Thomas Sowell, Nov. 7, 2006

P.S. How to play oil’s explosive rebound like an insider!

Short-term speculation has caused oil prices to drop 20% in the last few days. But make no mistake: This decline won’t last! In fact, oil is about to snap back with a vengeance -- and when it does, a handful of investors are going to make a fortune. Wall Street insiders are already positioning themselves for a big payday, and I suggest you do the same... right now!

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