Subject: Investment Newsletter - October 15, 2000

Volume 1 No. 6 October 15, 2000

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1. Market Overview ==> "That was quite a bounce Batman"
2. Week in Review ==> "TGIF"
3. Upcoming Week's News
4. Investing Web-site of the Week =>""
5. Stock of the Week =>"ADBE"'
6. Stocks to Watch  =>"AMAT, AOL, INTC, MLMN, SPWX"
7. Strategy of the Week  =>"Volume"
8. Book of the Week  =>"Riding the Bear"
9. Articles of the Week
10. Wizard's Quote of the Week =>"What are the technical indicators?"
11. Future Trends ==> "Bots are here"
12. Monkey Picks ==> "SCO, RD, BPOP, PLD, CMS"
13. Hot Links
14. Ask Us a Question ==>"5 Best Investing Books"
15. Disclaimer
16. Miscellaneous


TGIF. The Nasdaq was up over 7.8% on Friday, which is a great one day return, but is this a dead cat bounce (I never liked cats)?  The Nasdaq and the Dow held their psychological support levels of 3,000 and 10,000 which is a positive sign. In a previous issue, we predicted a 3,000 support level and a turn-around on Oct. 15th. Also in last weeks newsletter we predicted that the market could move up very quickly. This is because a lot of money was pulled out of the market, so investors may not want to be left behind after giving up their shares at a cheap prices. Also, short-sellers will have run for cover as we approach the best quarter historically. Let's hope we're right. One thing to look for is a follow through day in 4 to 7 days from Friday's rally. Another positive sign is that stocks closed strong at the end of the day at the highs of the day, this is also a bullish sign. We are currently fully invested, but we will not use margin, and don't recommend using margin as it's too easy to get burnt. If you are still scared of the bear then a dollar cost averaging strategy may be for you. Also waiting until the Nasdaq pulls above it's 200 day moving average or is in an MACD uptrend can help reduce down side risk. We will let you know if either of these occur. Our book of the week listed below may also help you tame the bear.

The Nasdaq was down for the previous week once again (I'm starting to sound like a broken record),. For the week, the Dow was down 404 points or 3.8%, the Nasdaq was down 44 points or 1.3% and the S&P 500 was down 34.9 points or 2.5%. October, is half way over, the month which is known for the 1929 and 1987 crashes, and also known for the start of last years bull run. The Nasdaq had four down days and one up day with support at 3000 and resistance at 3400. Friday's are typically good days for the market and this Friday, lived up to this reputation. I think Monday will be a down day as Monday's are historically the worst performing day and the Nasdaq has moved up too quickly, though I could be wrong. If you view chart below Thursday and Friday form a "Bullish Engulfing Pattern" (what a great term) and Fridays pattern is considered "Extremely Bullish". The Market will probably gap up on Monday. Keep your eye on the close to see where the market is headed and how close it closed in relationship to the high for the day. The Producer Price Index rose 0.9% in September, much more than was forecasted, mostly energy related. This is negative because it may prevent the Fed from lowering interest rates.

On Saturday, President Clinton said he will attend a Middle East summit Monday in Egypt with Israeli Prime Minister Ehud Barak and Palestinian leader Yasser Arafat. Which is good news.



Stocks Tumble on Oil Price Spike
Oil prices hit over $37 a barrel after a suspected terrorist attack on a US Navy Vessel and continued trouble in Israel. Home Depot, dropped $13, or 27%, to $35.94. Third-quarter profit will be about 28 cents a share, missing the 31-cent forecast, because of slower-than-expected sales growth. Dow loses 379 points or 3.64% to close at 10,034

U.S. Warship Attacked in Yemen, Six Sailors Dead

Nice move upwards on Friday, though for the Nasdaq to regain it's high of 5132.52 it will have to move up 67%, so 7.8% is to be expected after such a huge down draft. I expect volatility to continue through the rest of the year. The way the Israeli-Palestinian conflict works out will be important and currently it doesn't look good. The terrorist attack against the US, also will cause some problems, since the US will probably retaliate, and kill innocent civilians, which could put further upward pressure on Oil prices.

Fed Official: Oil Prices a Serious Matter

Wholesale Prices Shoot Up 0.9 Pct.

Goldman's Cohen Says Slump Overdone

Stocks That May Gain from a Gore Presidency,1299,3758,00.html


Clinton orders steps on high-speed wireless tech

Earnings Warning Jolts Lucent
Stock was down 24% in after hours trading

Transmeta’s Big-Bark, No-Bite IPO

Gateway Shares Rise Over 20 Percent

Juniper Networks' Stunning Growth Continues

PMC-Sierra Again Shows Why It's Top Dog

Amazon Tastes Its Own Patent-Pending Medicine

RealNetworks plunges, tarred by advertising fears

DoubleClick Falls Sharply with Results

Yahoo!'s Q3 on Track

Yahoo! Launches Voice Services


Pharmacia says cancer drug data promising

New AHP drug shows promise in cancer tests

Genentech drug boosts breast cancer survival-study

Immunex wins FDA nod to promote Novantrone for MS

Celera sequences 9.3 mln base pairs of mouse genome

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Intel and J&J Previews


RightNow Technologies (RTNW)
MCE Companies Inc. (MCEI)
Endwave Corporation (ENWV)

Get quote for above stocks at,mcei,enwv,xxia&d=v1

Alliance Fiber Optic IPO set at 6.25 mln shrs

Some Upcoming Earnings

BankAmerica (BAC)
Cobalt Networks (COBT)
Novellus (NVLS)
Idec Pharmaceuticals( IDPH )
Universal Health (UHS)
Marimba (MRBA)
Millipore(MIL )
Network Associates( NETA )
Bank One (ONE)
Boston Scientific (BSX)
Enron (ENE)
Global Marine (GLM)
Intel (INTC)
Johnson & Johnson (JNJ)
Southern (SO);
Schlumberger (SLB)
Sprint PCS (PCS)
Wells Fargo (WFC)
America Online (AOL)
Apple (AAPL)
Ariba (ARBA)
Alliance Semiconductor (ALSC )
Avis Rent A Car( AVI )
Caterpillar (CAT )
Citigroup( C )
Copper Mountain Networks (CMTN )
Cypress Semiconductor( CY )
Delta Air Lines (DAL)
Digital Lightwave (DIGL )
Entrust Technologies (ENTU)
Handspring Inc (HAND)
Incyte Genomics (INCY)
International Business Machines (IBM )

For complete list, see

Interesting Upcoming Stock Splits
Imclone Sys (IMCL )
Biovail (BVF )
Flextronics (FLEX )
Medarex (MEDX )
Millennium Pharm (MLNM)
DST Systems (DST)
Exar Corp (EXAR)

For complete list see

Lockups Expiring

360Networks Inc. (TSIX)
Embarcadero Technologies Inc. (EMBT)
Packard Bioscience Company (PBSC)
PEC Solutions Inc. (PECS)
Rockford Corp (ROFO)

Economic Calendar


Our web-site of the week is This is the web-site for Technology Investor magazine. Check out their daily market review, portfolio and view back issues. Their magazine is well worth the subscription price as it is well written, easy to understand and helpful in learning about the technology markets.

If you'd like to nominate an investing site as our "Investing Web-site of the Week" send us an email to

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This report is dated 10/15/00

Our stock of the week is not a recommendation to buy or sell, just an interesting company you might want to follow. Please see our disclaimer at the end of this newsletter.

Our stock of the week is Adobe ticker (ADBE). Adobe's home page is at Get a quote for Adobe at

Adobe Systems, Inc. is a provider of graphic design, publishing, and imaging software for Web and print production. The Company offers a line of application software products for creating, distributing, and managing information of all types. The Company licenses its industry-standard technologies to major hardware manufacturers, software developers, and service providers, and offer integrated software solutions to businesses of all sizes. Adobe wants to be the foundation for the shape of things to come. A leader in desktop publishing software, the company generates nearly 75% of sales through Web and print publishing products such as Photoshop, Illustrator, and PageMaker. Its Acrobat Reader -- which uses portable document format (PDF) -- is popping up all over the Internet as businesses shift from print to digital communications. Adobe also markets print technology to manufacturers and has stakes in a string of complementary technology firms. It has spurred sales and accelerated product growth through a restructuring effort and the introduction of its InDesign publishing package -- labeled a "Quark-killer" by industry observers. Stock is scheduled to split 2-for-1 on Oct. 25.

If you invest in this stock please use only an amount you are willing to lose as it is risky. Stock is currently MACD up-trend which is good and above it's 50 and 200 day moving average which is good. If you do enter it you should cut your loses at 8% of your original investment which is a stop price of $132.52 at its current price of $145 1/8. Stock is up 6% in the last 3 months, up 48% in the last 6 months and up 147% in the last 12 months and its performed better than stocks in its industry group over the past 3, 6 and 12 months.. Its 52-week high is $170.18 and it's currently trading at 145 1/8 which is 14.7% from its high. Resistance at $150 and support at $130. According to their 10Q there are no legal proceedings against Adobe. Their revenues for the previous 12 months were $1.2 billion with $306 Million in income.  One year sales growth of 24% and income growth of 46%. rates Adobe as a "C" for Growth, "A+" for profitability, "A" for financial health, and a "D" for valuation which is an OK rating but a little overvalued. rates 20% short term sell, 25% Medium term buy and long-term 67% buy which is good. Stock has a 1.73 rating on Yahoo, which is good. VectorVest rates it fair value, very good safety, good timing. for an overall rating of good and they have a buy recommendation on the stock. To do a complete analysis go to .

A report put out on 10/4/00 stated:

"Adobe Systems (ADBE) 157 1/8 -6 5/16: Tucker Anthny Clry initiates coverage with a BUY rating and price target of $193; saying growth of web content demand puts ADBE at the front of pack; thinks e-product focus should continue to fuel top-line growth; like recently released Illustrator upgrade which is web-enabled and should demonstrate renewed growth for product in fiscal 2001. "

On 9/27/00 a press release:

NEW YORK, Sept 28 (Reuters) - Salomon Smith Barney said analyst Jonathan Rosenzweig started coverage of Web publishing software maker Adobe Systems Inc. (ADBE) on Thursday with a rating of outperform.

-- in report, set 12-month price target of $177.

-- "Adobe sits at the crossroads of several 'New Economy' trends and a revolution in the visual media space.

-- "This includes very strong demand for rich images, dynamic content and multimedia over the Internet, on PCs (personal computers), and via wireless communication to handheld devices.

-- "We believe that these trends will drive sustainable revenue growth of 25 percent, and perhaps even some acceleration, over time."

-- shares up $1-5/16 at $149-5/8.


It has a high P/E ratio relative to its peers. Stock is overvalued, and the Nasdaq has been performing poorly. Technology risk if competing platform takes market share away. Post split, stock may see a 10% decline which is typical for stocks which have split.

Click below for research link on ADBE:

* Motley Fools at
* Money Central at
* at
* at
* at
* at
* Yahoo at
* Second Opinion at
* Thomson I-watch at
* Raging Bull at
* 10Q at
* Broker Reports at
* Momentum report at
* Vector Vest at
* Price History YTD:
* Previous News:

Please note that author doesn't own shares of this stock.

YTD (Year-to-date) Chart

If you'd like to nominate a "Stock of the Week" send us an email to

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AMAT - support at 50? @ 53 1/2
AOL - Earnings
INTC - Earnings
MLMN - Stock Split

See how they're doing at,aol,intc,mlnm,spwx&d=v1


Volume can tell you where the market or your stock is headed. Rising prices on rising volume and falling prices on falling volume are bullish signals. Falling prices on rising volume and rising prices on falling volume are bearish signals.

On Balance Volume (OBV) is a technical indicator which was developed by Joseph Granville. There is an excellent description of it at uses a slightly different mechanism at


Our book of the week is "Riding the Bear, How to Prosper in the Coming Bear Market" by Sy Harding. Had you been following his strategy, you would have missed the downside from September. Sy Harding introduces a very simple system to reduce risk of getting caught in a bear market, and criticizes the buy and hold strategy. It's rated five of five stars and listed at $12.95, on sale through Amazon at $11.65. Click below to read reviews or purchase.
From the Author
Thanks to the exciting bull market of the 1990s, there are now more than 40 million investors in the U.S., and they have far and away more money, and a higher percentage of their net worth at risk in the market than ever before in history. Unfortunately, 85% of that money flowed into the market in just the last five years, and so has never experienced a bear market or anything like a bear market. Most of those new investors are not only unprepared, but are unaware of what they will inevitably face at some point, sooner rather than later. I fear for them. And I despair in the knowledge that a book by an unknown author will reach so relatively few of them. I hope readers will help spread the word of its value. Shakespeare or a John Grisham novel it is not. But honest, outspoken, and unafraid to tromp on Wall Street's self-serving propaganda it is. Riding the Bear will be a virtual life jacket for those it reaches.

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Higher Oil Prices Seen As Unlikely

Forget software on CD-Rom, it's the Web, stupid

U.S. preparing to block AOL-Time Warner deal-Post

Playstation 2 Shortage Is More Than A Blip

U.S. Chooses New Online Lock and Key,1151,19101,00.html

Moving at WAP Speed (Wireless phone revolution has a wakeup call)

Ash Rajan: Tech Picks

Nokia's Price Is Right

Behind the Fiber Optics Hype

Lucent Still Has Some Loose Ends

Markets Show Correction, Not Crash

The Market's Falling

An Investing Legend Speaks (Motley Fools discuss 11 of Peter Lynch's Investing strategies)

Investing Prudently in Genomics and Biotechs

Semiconductor: All About the Flash Memory Market

Protecting Your Downside (Excellent article on how to protect against a loss)

Day Traders Proliferate in Bumpy Market

Alternative Fuel Systems to Develop Natural Gas System for New Cummins Engine

Is the Tech Bull Run Over, or Just Taking a Breather?

China Meets Wall Street

"What are the technical indicators. Did you check with"

Before for you invest in a stock check out the technical indicators that are on Clearstation. A little green circle with a line on top shows you your stock is in an uptrend. A little red circle with a line on the bottom means your stock is in a downtrend. You can improve your portfolio's performance if you buy stocks when your stock is in a positive trend.

Ask the Stock Wizard a question at
Bots are here. What are Bots? Go to , stock ticker (ALIF) for a taste of things to come. Bots are software which can inteligently interact with you. See our page on bots at

Our Monkey has picked the following stocks for the week of October 15, 2000

Royal Dutch Pet (RD)
Popular Inc (BPOP)
Prologis Trust (PLD)
CMS Energy Corp (CMS)

Get a quote at yahoo here,rd,bpop,pld,cms&d=v4

You can visit our monkey at

* Quick Research:
* Stock Wizard:
* Stock Picking Monkey:
* Software:
* Random:
* Books:
* Glossary:
* Biotech:
* What's New:
* Technology:
* Top sites:
* Our Affiliate Store:


What would you recommend as the VERY BEST 5 books on building vast wealth over time?

What suggestions would you have on starting a business with low capital and no shopfront from which to sell?
Is there any other way apart from this that I can increase my cashflow to save for a home deposit as soon as possible?

The 5 books are:

Roaring 2000's

Richest Man in Babylon

Millionaire next door

How to make money in stocks

A Whack on the side of the Head

I would suggest an internet business, see book "The Perfect Business"

Pay off your debts if you have any. Credit cards can charge you 18 - 25% interest rates. Look into improving your skills in whatever you are good at and like doing. Take action. If you do what you've always done you'll get what you've always got.

Submit you questions to If you have a question on Taxes please submit to


We are not responsible for any losses or profits that may result from the application of information contained with this website or newsletter. This site and its owners are not registered Investment Advisers nor a Broker/Dealer. This site is issued solely for informational and educational purposes only and is not constructed as an offer to sell or the solicitation of an offer to buy. The information provided on this site is in no way a verification of the methodology used for stock picking by the site or guarantees the accuracy of the information, that is your responsibility. The opinions and analysis included herein are based from sources believed to be reliable and in good faith but no representation or warranty, expressed or implied is made as to their accuracy, completeness or correctness. The inclusion of a link to a site does not, in any way, represent or imply an approval of, or a determination of the quality of that product or service, by The links provided herein are maintained by their respective organizations and they are solely responsible for their content. Users agree to hold harmless for any and all damages arising out of use of this service.  Users are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report should be independently verified with the companies mentioned. The data and materials are provided by on an "AS IS" basis. Purchasing securities is risky.  You may lose some or all of your investment.  Past performance is no guarantee of future performance. and its owners may invest in the companies that are profiled. We reserve the right to buy or sell any of these profiled stocks before and after they are posted to the site or recommended.

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