Saturday, October 31, 2009

Corporate Power, The Series

Darnell’s Picks

Short Sell

First Solar (NASDAQ: fslr) shorting at $121.93, cover at $80. Darnell does not have a position in this security.

Buy Long

Kazakhstan Gold (Stock Symbol: kzg) recently traded at $8.28 on the London Stock Exchange. Darnell does not have a position in this security.

Non Investment Grade Bond

Smithfield Foods 7s08/01/2011 priced at $965.00, Standard and Poor’s B-, YTM of 9.23%.
Darnell does not have a position in this security.

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The three types of people in the world.

I classify people by three types around the world. The first type is the elite. They are the people who own everything. They can tell governments what to do. The Trilateral Commission had its last meeting April 25 to April 26, 2009 in Tokyo, Japan. The next meeting will be in Dublin, Ireland, May 7 thru May 9, 2010. To find out more about this secret society see this site: http://www.trilateral.org/about.htm.

The secret society called the New World Order is made up of very powerful families around the world. See this site for more information:
http://educate-yourself.org/nwo/.

There are other even more secret societies around the world that work with these two organizations to bring about their view of future world government.

To get into these organizations, you have to go to the right Universities and meet the right people. The first President Bush’s father did just that. This allowed the president to join and work for these organizations. President Obama was recruited years ago and is now a leader in the trilateral Commission, appointing several members to positions in the organization. He has demonstrated to many world leaders that he has what it takes to be a world leader. I look for him to be front and center in a more centralized world government after he leaves office.

I am not passing judgement on what these organizations do. What I am telling you is that these are the people who run the world. They start and stop wars. They solve world problems to their advantage. They exist to serve their members interest.

The second type of person are the lawyers. They work for the governments and corporations owned by the elite. Anyone can rise to a position in government or business. You do not have to be a lawyer but you better have access to good competent legal help to be successful. Obama, a lawyer, started as a community organizer. He won a seat in his state legislator. Then he made it into the US Senate. After showing the elite what he could do as an organizer, he became President of the United States. He is now one of the elite.

CEOs and Presidents of large corporations are in this group. Many who run Wall Street and the large banks are members of this group. They are people who have demonstrated that they can run a business or industry. That does not mean that they can run it in the interest of employees or the country. That means that they have demonstrated that they can run it for the interest of its owners.

Third, most people around the world are retarded worker bees. I say we are retarded because most of us have not grown from our child stage of social development. It is not our fault. The lawyers and the elite do not want that to happen. Just like children, most of us live from day to day with no thought of what we want for our children or for society in general. We range from wanting to be rich but don’t want to do anything to get to that level, to not wanting anything but a handout.

We are lucky to get a job making enough money to pay for our living expenses. We have high living expenses because we allowed the media controlled by the lawyers to tell us that we can’t be happy with what we have. We need to buy more. Not only that, we have to borrow money that we can’t pay back to pay for the things we don’t need. That is why most of us say, "the more we work, the more we owe."


We are going to talk about what the retarded worker bees can do to become a lawyer type.

 
Part 2: Wanted: A New Type of Union

I did not grow up like most people. At 8 years old, I was already trying to figure out how to become rich. I started learning all that I could about the stock market. By 18 years old, I understood Generic Engineering and could have gown into that field while that field was just starting out. Instead, I went into the computer field that was also just starting out. Instead of hanging out on the corner with my friends, I was hanging out in the brokerage firms with the retired steel workers in downtown Pittsburgh, Pa. They thought I was young and funny so they did not mind telling me what they were doing in the financial markets. I was very happy to take notes. After getting my Associates in Applied Science Degree from Allegheny Community College at age 25, I was accepted at Robert Morris College in their Management program. While at Robert Morris, I wrote my first book, A Guide to Stocks and Bonds for the Beginner.

At that time, I met one of my corporate idles, Siggi B. Wilzig was the CEO of Wilshire Oil of Texas. Siggi found himself in a NAZI concentration camp in Germany. His crime according to the NAZIS, he is Jewish. After the war, his family and friends moved to Texas where he worked in the oil fields. In the 1950s, they decided to create the Wilzig Investing Group with the objective of acquiring Wilshire Oil Company. It took several years before they ran several members for seats on the board. The organization controlled 25 percent of the stock. They did not win.

However, management was impressed by their leadership. They knew that it was only a matter of time before they gain the voting stock that they needed to gain real influence, that they negotiated with the Investment Group. As a result, in the newly organized company, they gave the investment group four board seats. Later they approached Siggi Wilzig to be their CEO of the company. Siggi died in the 1990s. This story is on page 92 of the book.

If people want to stop companies from moving away from employees then the employees will have to start challenging the management of the company. Using stock is the only weapon that employees have. We have to take over the company for our own survival.

In the 1950s, 50 percent of the stock was owned by the public. Today, most stock is owned by institutions and mutual funds. Here is the reason why our jobs are leaving our communities and going to other countries. Institutions do not have families and have no ties to a community. Your public schools do not give you an education to protect your interest. They give you an education that preserves the interest of the elite.



Part 3: Creating Your Investment Club

You and your friends can take over a small company. If you want to have a club where interesting conversation takes place, people can work for a common goal, and you can look after family interest, create or join an investment club. To get started in creating your club, do the following:


1. Talk to your friends, coworkers, and relatives about creating a club. Make sure you have an objective in mind. That objective maybe to make money in the stock or bond market. Or you may have a small public company (take over target) that will be worth owning and making a living off of.

2. Read over the information in the Better Investing Website. http://www.betterinvesting.org/public/default.htm

3. Form your organization and create your bylaws based on the information from NAIC. Usually a club has 10 to 20 member. If you are creating an organization to take over a company, the more people you have, the more money you can raise.

http://www.ag.ndsu.edu/pubs/yf/fammgmt/fs583w.htm

4. Elect your officers and start conducting business.

Over the coming years, make your plan then work your plan!

Thursday, October 8, 2009

My Fourth Quarter Picks

I called the bottom of the junk bond market at the end of January 2009. Since then, the discounted bonds that I recommended making up my portfolio rose 33.62% while the Dow rose from 8,000.86 to 9,712.65 or 21.4%. Most of the bonds that I recommended in January have matured and I purchased bonds to take their place. The new bonds mature in 1 to 2 years. Here are my Fourth Quarter Bond picks as well as their recent prices, Yield to Maturities, and Ratings. The bonds on my recommended list are;

ALLIED CAP CORP NEW SR NT 6.625% 07/15/11
Price $832.50 YTM 19.455% Rating B1/BB
Total Return $359.75 for 21 Months.

AMERICAN GEN FIN CORP INCOME NOTES 4.050% 05/15/10
Price $871.98 YTM 17.39% Rating Baa3/BB+
Total Return $151.65 for 7 Months.

DOLE FOOD INC SR NT 8.875% 03/15/11
Price $100.00 YTM 8.875% Rating Caa1/CCC+
Total Return $125.02 for 17 Months.

HILTON HOTELS CORP NT 8.250% 02/15/11
Price $800.00 YTM 11.875% Rating NR
Total Return $310 for 17 Months.

MBIA INC NT 9.375% 02/15/11
Price $993.50 YTM 9.477% Rating Ba3/BB-
Total Return $131.50 for 16 Months.


These bonds are for investors. I am a believer in a “Buy and Hold” strategy for IRA and small speculators when purchasing stock. This way, a speculator can accumulate stock on a regular bases at a low price. As time goes by, the stock appreciates in value and the speculator sells years later at a high price. I still believe in purchasing Ford Motor Company at $7.50 or below.

Who should take advantage of this?

As most of you know, in the past 30 years more and more experience people have lost their jobs. Many of them have 401k or pension plans with tens of thousands of dollars in them. Many people are suddenly put in a position where they must decide in a matter of days where to put this money. I prefer to create self directed Individual Retirement Accounts (IRA) for this cash so that the money can be tax deferred until retirement. I also recommend buying discounted corporate bonds such as the ones I recommend to make money as well as protect capital.

Where should you go to create your IRA?

To create a self directed IRA where corporate bonds can be purchased, I suggest using a brokerage firm that deals in corporate bonds. The world is full of such brokerage firms. I use Zion’s Direct 1-800-524-8875 because of their large inventory of discounted corporate bonds. They are on the internet at: https://zd.zionsdirect.com/