Author: Serkadis

  • Wait, I Thought Piracy Had Killed Any Chance Of Zombieland 2?

    Last month, we wrote about Zombieland director Rhett Reese, complaining on Twitter that the fact that his movie was a top unauthorized download would make it that much more unlikely that there would ever be a sequel. Others picked up that claim and ran with it, as if this was proof that piracy was harming the movie business. The whole thing seemed curious to us, since the movie has been quite successful at the box office, and has made a ton of money. Given that, who cares how much it’s pirated. If it can make a bunch of money, of course it’s ripe for a sequel.

    And, guess what? Despite all the doom and gloom about how Sony would never make a sequel, Variety is reporting (you guessed it!) that Sony is about to ink a sequel for Zombieland, which will be done in 3D. Shocking. Even though the movie was pirated so much, the studio still wants to make a sequel? Could it be that there really are some people who recognize that how much a movie is pirated doesn’t really matter if the movie can still make a ton of cash?

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  • Make It A Cheesey Holiday: Cookbook Review

    If you’re a cheese lover like me then you’ll be delighted to know that there is a cookbook designed just for us. This cookbook was created by cheese expert and founder of Vermont Butter & Cheese Company Allison Hooper. It was put together in celebration of their 25th Anniversary of cheese making. ‘In a Cheesemaker’s Kitchen’ is a must read and will definitely add some excitement to your Holiday dishes.

    In a Cheesemaker's Kitchen

    This cookbook will provide you with more then just recipe ideas for your Holiday menu but also with informative tips on wine and cheese pairings, food pairings with certain cheeses, and the process that goes into making cheese.

    You’ll learn so much about cheese and finally you’ll be able to justify your love affair with what most people perceive as fatty. Cheese is good for you in moderation and paired with healthy ingredients.

    Each recipe has been originally created by executive chefs in the U.S. who incorporate Vermont Butter & Cheese in each dish. The result is a masterpiece of fabulous, healthy, and gourmet dishes that are easy to make and will please everyone.

    This holiday season I suggest serving Goat Cheese Crostini with Grilled Vegetables as your crowd pleasing appetizer!

    iStock_000003100855Small

    Image Credit: istockphoto

    Ingredients:

    1 baguette, sliced diagonally, 1/2-inch-thick

    1/2 cup olive oil

    Salt and Pepper

    1 mini-eggplant sliced

    1/2 pound asparagus, blanched and bottoms trimmed

    8 mushrooms whole

    1 bell pepper cut in half

    4 ounces creamy goat cheese, plain

    4 ounces creamy goat cheese with olives and herbs

    4 ounces creamy goat cheese with roasted red pepper

    1 ear of corn in the husk, soaked in water for 15 minutes

    1/4 cup mixed chopped herbs (thyme, basil, oregano)

    Directions:

    In a bowl toss sliced bread with 4 tablespoons of olive oil, sprinkle with salt and pepper. Grill bread for 2-3 minutes on each side until lightly toasted. Place bread on large platter.

    Place the corn on the grill and turn while preparing other veggies. Corn will grill about 15 minutes.

    Toss veggies with remaining olive oil, sprinkle with salt and pepper, and grill for 3-5 minutes on each side until they become soft and show nice grill marks. Set aside to cool.

    Slice the eggplant, mushroom, and bell pepper in thin slices or cubes. Slice the asparagus diagonally in 2-inch pieces. Remove the husk from corn and cut off the cob.

    Spread creamy goat cheeses on the bread, top with grilled veggies, and garnish with fresh herbs.

    ***

    I don’t know about you but I’m starving just reading this recipe! This will definitely be a perfect, light appetizer that will keep your guests busy while you prepare the rest of your holiday feast!

    Enjoy!

    Recipe Source: In a Cheesemaker’s Kitchen by Allison Hooper

    Post from: Blisstree

    Make It A Cheesey Holiday: Cookbook Review

  • Coal Consumers Switching To Use Natural Gas

    Burning Off Natural Gas

    With natural gas prices depressed due to oversupply, it’s only a matter of time before markets respond and natural gas starts to replace other more expensive power sources.

    Or at least holders of the ETF United States Natural Gas (UNG) hope.

    It should be heartening then that in England, where there is a glut of natural gas as in the U.S., utilities have indeed been making the switch.

    Canada.com: According to a recent report by Reuters, electrical plants in the U.K. are increasingly relying on natural gas to generate the base load power instead of coal.

    This is obviously being driven by the current surplus of natural gas, which has taken away the arbitrage opportunities and kept prices within a range that makes it economic to use the more environmentally friendly fuel.

    Read more here.

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  • Smith & Wesson Shares Plunge As The Gun Boom Comes To An End

    Smith Wesson Handgun

    Earlier this week, Smith & Wesson’s stock rallied as Obama announce he would send more of our troops into Afghanistan.

    Now, despite the promise of a full out world war, shares are dropping thanks to a horrible outlook.

    Smith & Wesson said it expects third quarter revenue of $90.0 million to $95.0 million.

    The current consensus estimate is revenue of $104.8 million for the quarter ending January 31, 2010.

    The stock closed at $5.27 yesterday and is currently holding steady at $4.37, a 17% dip!

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  • Amazon Said to Be in Talks to Acquire Vente-Privee for $3 Billion

    The economic downturn has taken its toll on the retail sector, even online but one bright spot, at least in Europe, has been private sales clubs, which have taken off in recent years. One of the most promising companies of this type is Vente-Privee, a French one, which is seeing some serious revenue numbers these days. Traditionally, if you can use this term for a market that is barely a decade old, e-commerce outfits have been very interested in the space and it looks like Amazon may be getting close to acquiring Vente-Privee for around $3 billion, according to TechCrunch.

    Vente-Privee isn’t confirming anything officially but it looks like the two companies are closer to finalizing negotiations. They haven’t agreed on a deal yet but are apparently converging on a price of around 2 billion Euros. Xavier Court, Vente-Privee marketing director, told TechCrunch about the rumored sale that it was “very flattering but not true at all.”

    Business Insider cites other sources saying that, even though the two companies have been in talks for the past year, a deal is not near completion at this point although it may come at a later date. Rumors about an acquisition have been going around for a while now and it’s said that companies like Amazon, eBay and Gilt, a private shopping US startup… (read more)

  • Hope you locked yesterday! Keeping pipelines clean; News from Comerica, MGIC, HUD, Wells

    pipeline-press

    rob-chrisman-daily

    There’s a way of transferring funds that is even faster than electronic banking. It’s called “marriage”.

    Since the dawn of the mortgage pipeline, probably during the Paleozoic Era, companies who are concerned about managing their risk have struggled with the issue of how best to keep it clean. Specifically, what is the best way to eliminate expired locked loans, or loans that have already closed somewhere else, in their pipeline? As anyone in Secondary knows, hedging a loan that won’t fund makes no sense whatsoever, but it is rarely a priority for agents to cancel out loans on their own. Many wholesalers have specific policies designed to limit “excess baggage”, and companies typically put in an automatic system to gradually phase out including loans that haven’t moved through the pipeline in timely manner.

    The latest change comes from Wells Fargo, although they mainly address extensions. Back on 11/9 “for all loans, if you wish to extend the expiration date on a loan, you must lock the loan in order for the commitment to be extended. Wells Fargo Wholesale Lending will no longer allow the submission of updated documentation to extend the commitment on unlocked loans.

    more news on Wells Fargo, MGIC, Comerica Bank, GNMA buyouts, HUD letters on condos, mortgage rates, the economy, and joke of the day <<< CLICK HERE

  • You Ask, Henry Blodget Answers!

     

    Henry Blodget, Editor-in-Chief, The Business Insider

    Your Economic-Market-Investing Questions (4 min):

    • How do you invest personally?
    • Is the recession really ending?
    • Does Megan McArdle work for the site now?
    • If Conan is the new Oprah, are you the new Drudge?
    • When are you going to add more great features to the site?

    Produced By: Kamelia Angelova & William Wei

    More Video: TBI Calendar Click HERE >

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  • REPORT: Infiniti still mulling production Essence coupe

    Filed under: , , , , ,


    Infiniti Essence Concept
    click above for high-res image gallery

    When we first laid eyes on Infiniti’s Essence concept at this year’s Geneva Motor Show, we were, quite frankly, smitten by its voluptuous lines. We apparently weren’t alone, as Infiniti exec Ben Poore has reportedly told Motor Trend that reaction to the concept was “phenomenal.” When the Essence was unveiled, Infiniti told the audience at Geneva that the vehicle was concept-only and that future vehicles would be influenced by its stunning design. We were a bit disappointed by that news, because, of course, the world can never have too many stunning twin-turbo V6 hybrid coupes capable of a combined 592 brake horsepower.

    But while we were let down by Infiniti’s initial decision on Essence, we’re at least encouraged by the fact that Poore recently told MT that that the concept is “only a show piece… for now.” Could that mean that we could have a production vehicle based off of the Essence in the future? We hope so. Will it have a twin-turbo 3.7-liter V6 with a lithium-ion backed disc-shaped electric motor? Perhaps not, but we wouldn’t exactly be disappointed if it did.

    [Source: Motor Trend]

    REPORT: Infiniti still mulling production Essence coupe originally appeared on Autoblog on Fri, 04 Dec 2009 11:28:00 EST. Please see our terms for use of feeds.

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  • Producing Hydrogen from Water Will Not Suck the Lakes Dry

    This blog that I’m writing today is partly in reaction to a post that appeared in sustainablog titled, “Will Hydrogen Power Suck the Lakes Dry?” and partly because this is one of the most frequently asked questions I get. For some reason, people think that going to a hydrogen based economy will cause a water shortage.

    According to the National Hydrogen Association, “Conversion of the current U.S. light-duty fleet (some 230 million vehicles) to fuel cell vehicles would require about 110 billion gallons of water / year to supply the needed hydrogen.

    “For comparison, the U.S. uses about 300 billion gallons of water/year for the production of gasoline, about three times the amount needed for hydrogen. Domestic personal water use in the United States is about 4800 billion gallons/year.”

    So, no, creating hydrogen for cars or using hydrogen in power plants will not suck the oceans, lakes and rivers dry. But, the estimates of water usage for hydrogen production could actually be lower than projected.

    I’ve talked before about whether the steam emissions from hydrogen cars will contribute to greenhouse gases. In the same blog post I talked about how research was underway to recycle this steam back into the fuel cell.

    There are also a number of patents such as this one that talks about water recycling in fuel cell systems. On a larger scale at hydrogen power plants, there are also patents for closed loop and semi closed loop systems for recycling water.

    The U. S. Department of Energy (DOE) also lists four different methods for high temperature steam recycling at hydrogen power plants. If hydrogen were created at the pump through electrolysis and fuel cell cars captured and stored extra water from the fuel cell reaction, this could be dispensed right back at the hydrogen stations for recreation of compressed H2 gas.

    As people learn more about hydrogen, naturally questions and especially fears arise. Fears of hydrogen cars blowing up like atomic bombs or fears of either running out of water or water emitted from fuel cells contributing to greenhouse gases are common. But as these fears are dispelled many people come to see that hydrogen is the clean, green fuel of the future that will solve many environmental problems along with our dependence on foreign fossil fuels.

  • Apple Delivers Minor Updates Mac Pro and Xserve

    Apple sometimes provides updates to its products stealthily, in the dead of night, if said updates don’t merit a dedicated press event. That happened yesterday to both the Mac Pro desktop computer and the Xserve rack-mountable server. Both are minor updates, but will be of great interest to those looking to buy either type of machine.

    The Mac Pro got a new option in the processor customization department, a 3.33GHz quad-core Intel Xeon processor for an additional $1,200. As of yet, there’s no option to double up the 3.33GHz version of the quad-core to create a more powerful 8-core machine on the more expensive configuration of the Mac Pro.

    You can also now outfit your Mac Pro with 2TB hard drives, instead of the 1TB option at which capacity previously maxed out. That means the official total capacity of the Mac Pro, as configured in the Apple Store, is now 8TB, which is nothing to sneeze at. Each 2TB drive will set you back $550.

    The only reason to hesitate if you’re thinking about picking up a Mac Pro is that the last time they were updated was back in March 2009. Chances are another major upgrade isn’t too far around the corner, possibly involving Intel’s forthcoming i9 processor, so if you can wait, you probably should.

    The configuration options for the Xserve were also updated, allowing for use of the same 2TB drives that are now available to the Mac Pros. That means max capacity for the Xserve is now 6TB. RAM options also got upgraded, with 4GB modules now available, so that the max configurable memory is now 24GB on the quad-core Xserve, and 48GB on the 8-core.


  • Here’s What It Looks Like When Half Your Company Is Fired And You’re Forced To Pick Up The Slack

    Looking at this chart from the Bureau of Labor Statistics, one can see that worker productivity has shot up during 2009 as more and more employees were forced to pick up the work left by their fired co-workers:

    BLS: Nonfarm business sector labor productivity increased at an 8.1 percent annual rate during the third quarter of 2009. This was the largest gain in productivity since the third quarter of 2003, and reflects a 2.9 percent increase in output and a 4.8 percent decline in hours worked.

    In the third quarter of 2009, nonfarm business productivity was revised down from 9.5 percent to 8.1 percent, reflecting a downward revision to output and an upward revision to hours.

    BLS Chart 1204

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  • How Long IE6 Has to Live

    Well, here’s another anti-IE6 (Internet Explorer 6) article to go with the 254,000 I found on Google recently. While many of IE6’s detractors are web designers or web developers, we can certainly put on the board some greater flaws in Microsoft’s browser than the extra amount of working hours put by professionals to optimize websites for it.

    In the past, several security vulnerabilities plagued the browser in the eyes of a lot of industry experts, many of them actively recommending some of IE’s rivals as more secure browsers to use.

    There are many news articles across the web, which report on vulnerability flaws. For example, this one on The H Security, or Computer World. Let’s not even explore our Security or Microsoft news sections that are full with all kinds of Internet Explorer 6-related stories.

    In the past few years, IE6 has revealed many security flaws that had serious consequences on user privacy. From ActiveX holes to SSL certificates, from drive-by installs to code injections, IE6 managed to get itself time after time, year after year in Secunia’s Security Report.

    But all bad things lead to something good. While constantly trying to improve on its browser’s security, Microsoft’s later products have been recognized as some of the safest environments for Internet browsing these days, as an NSS Labs… (read more)

  • Four Tips to Make Indoor, Winter Air Hepatitis C Friendly

    Discover four tips that can help those with Hepatitis C avoid additional liver damage from the high percentage of toxins found in wintertime indoor air.

    by Nicole Cutler, L.Ac.

    According to the Environmental Protection Agency, a growing body of scientific evidence indicates that indoor air is more seriously polluted than outdoor air – even in the largest and most industrialized cities. Because pollution is toxic to the liver, those with Hepatitis C are especially vulnerable to polluted indoor air. Furthermore, the time typically spent indoors during the winter increases someone with Hepatitis C’s vulnerability to indoor air toxins during the colder months.

    Depending on the health issues of each individual, exposure to environmental pollutants poses varying degrees of risk. Unfortunately, those with Hepatitis C are more susceptible to liver damage from environmental toxins because:

    · Their liver isn’t working as efficiently, so toxins normally processed by the liver remain in the body longer than usual. With toxins lingering in the body longer, those with Hepatitis C are more likely to incur cellular damage from the toxins.

    · When toxins cause injury to liver tissue, healthy livers typically rejuvenate quickly. However, those who already have liver damage from Hepatitis C are likely to have a much harder time recovering from toxin-causing injury.

    The primary causes of indoor air quality problems in homes are from sources that release gases or particles into the air. Another prime culprit of indoor air pollution is inadequate ventilation – by not bringing in enough outdoor air to dilute emissions from indoor sources and by not carrying indoor air pollutants out of the home.

    Homes contain many sources of indoor air pollution, including:

    · Combustion sources like oil, gas, kerosene, coal and wood
    · Tobacco smoke – and its toxic aftermath
    · Building materials and furnishings like asbestos-containing insulation and cabinetry or furniture made of certain pressed wood products
    · Household cleaning and maintenance products
    · Central heating and humidification devices

    As a result of dropping temperatures outside, many of us spend greater amounts of time indoors. Due to the fact that windows and doors are usually sealed tight during the winter to conserve energy, the concentration of indoor air pollution always increases during this time. Since those with Hepatitis C are more susceptible to indoor air pollution, the following four tips can help minimize the toxins breathed in each day:

    Tip 1. Plants – NASA researchers found that common houseplants effectively purified the air in spacecraft. Household plants can remove common chemicals from the air, such as formaldehyde, benzene and carbon monoxide. Peace lily, bamboo, palm, English ivy, mums, golden pothos, nepthylis, spider plant, snake plant, aloe, philodendron and gerbera daisies are among the top air-purifying plants.

    Tip 2. Low VOC Paint – Volatile organic compounds (VOCs) are plentiful in paint and are a known lung, liver, kidney and central nervous system toxin. If repainting a room is on your to do list this winter, choose one with low VOCs.

    Tip 3. Replace Heating System Air Filter – Replacing a standard air filter with one that is pleated and electrostatic will capture more pollutants from a furnace’s forced air. Experts suggest using a minimum efficiency reporting value (MERV) rating of 10 or higher.

    Tip 4. Choose Cleaners Wisely – Cleaning products are known to harbor some of the most hazardous chemicals known. While several environment-friendly companies now offer toxin-free cleaning products, there are also many ways to make your own safe and effective cleaners.

    Because many are cooped up inside, winter is definitely a time for those with Hepatitis C to be aware of indoor air pollution. The increased demand that indoor air pollution puts on the liver is best averted by reducing the amount of airborne pollutants in your space. Simple steps like adorning your living area with several houseplants, using low VOC paint, putting a new, pleated, electrostatic air filter in your heating system and using toxin-free cleaners all add up to improved indoor air quality. By reducing indoor air pollution, those with Hepatitis C can emerge in the spring unscathed by wintertime indoor air.

    References:

    http://www.care2.com/greenliving/simple-steps-to-clean-your-indoor-air.html, Simple Steps to Clean Your Indoor Air, Retrieved October 17, 2009, care2.com, 2009.

    http://www.epa.gov/iaq/pubs/insidest.html, The Inside Story: A Guide to Indoor Air Quality, Retrieved October 17, 2009, United States Environmental Protection Agency, 2009.

    http://www.hepatitis-central.com/mt/archives/2009/04/cleaning_safety.html, Cleaning Safety for Hepatitis C, Nicole Cutler, L.Ac., MTCM, Natural Wellness, 2009.

    Paul, Nina L, Gina Pollichino, Living with Hepatitis C for Dummies, Wiley Publishing Inc., Hoboken, NJ, 2005; 158.

  • THQ to open its biggest studio in Montreal

    Montreal is really moving up on the gaming density. As of THQ’s latest announcement, the city will be home to yet another development studio. This won’t be just another studio, for the publisher, plans have it that

  • LA 2009: 2010 Kia Forte and Forte Koup crowned NADAguides.com COTY

    Filed under: , , , , ,


    2010 Kia Forte – Click above for high-res image gallery

    With a brief press release and a trophy handoff at the LA Auto Show, car pricing authority NADAguides.com has heaped the first of what we could be many accolades upon the stylish and affordable 2010 Kia Forte and Kia Forte Koup by naming the duo their Car of the Year for 2009. Citing the pair’s “best in class” features and stylish interior and exterior design, the group said these Kia compacts were standout vehicles in a pretty impressive field. Other contenders for the crown included such significant and praiseworthy vehicles as the Ford Fusion Hybrid, Mercedes-Benz E350 and Nissan 370Z Roadster.

    In our own review of the Kia Forte, we praised its styling, build, layout and performance, and especially its budget-minded pricing, so we see where NADA is coming from. Sometimes, we have to scratch our heads a bit when one of these sorts of awards are announced, but in this case, we certainly think the cars are deserving.

    [Source: NADAguides.com]

    Continue reading LA 2009: 2010 Kia Forte and Forte Koup crowned NADAguides.com COTY

    LA 2009: 2010 Kia Forte and Forte Koup crowned NADAguides.com COTY originally appeared on Autoblog on Fri, 04 Dec 2009 10:59:00 EST. Please see our terms for use of feeds.

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  • Deutsche Bank: Bad Weather Does Not Explain The November Retail Debacle

    retail

    Yesterday David Bodamer noted how final November retail numbers were clearly a disappointment, as analyst estimates proved way to optimistic.

    Deutshce Bank retail analyst Bill Dreher takes a stab at what happened, and though he kind of blames the weather, he’s clearly not comfortable with that excuse.

    —–

    Despite the month of November having the easiest compares of the year, every sub-sector
    of Broadline retailing missed consensus expectations, including the Discount Stores (TGT),
    Warehouse Clubs (COST & BJ), Drug Stores (WAG & RAD) and Department Stores (DDS, M,
    JCP, and SKS).  

    Going into today, we expected several department stores to post November sales that
    missed Consensus estimates, and in particular we looked for weakness from Macy’s & Saks
    (see “November Sales Update” published Tuesday). 
    In addition, while JCP and SKS were very much in-line with our expectations and
    management’s guidance, they missed consensus estimates and the print was poorly
    received, with the stores down 3% and 5%, respectively, today.  

    Weather was commonly considered the culprit, as most of the country did not have
    seasonally appropriate temperatures.  We understand how weather would limit apparel sales,
    and we can even appreciate how the unseasonably pleasant weather would cause a modest
    flu season limiting the Drugstore comps.  

    What causes us to be incrementally concerned are the misses from the Warehouse clubs
    and Target; how did the weather contribute to these sales misses?
    Food deflation clearly
    would aggravate the sales sluggishness for these retailers, but that doesn’t seem to be
    enough to explain the results.  Perhaps we will need to wait for Kroger results this Tuesday
    for additional color on this food inflation & Wal-Mart pricing umbrella issues.  

    The overall take away from today has to be incrementally negative. Unless Wal-Mart achieved
    some surprisingly massive market share gains across all these sub-sectors of retailing,
    today’s widespread sales weakness is a negative indication on overall consumer spending.  

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  • Friendster to Be Sold to an Asian Investor for $100 Million

    Friendster, the social network which started it all, just got significant revamp with a design focused more on its demographic core at the moment, ahead of a possible sale by the end of the year. Barely a day after it revealed its new design, Reuters reports that the social network will be sold to an Asian investor for more than $100 million and the deal should be announced by the end of the year.

    The company has been looking to sell for a while now, the latest rumor comes from last summer, but it had similar intentions as early as 2005. The social network became extremely popular very quickly after being launched in 2002. It didn’t last long though and soon MySpace, and later Facebook, would come fast from behind to steal the glory. Friendster is still pretty much alive, but its popularity in most parts of the world has dwindled to the point where its more of a historic footnote.

    Friendster claims it has 75 million registered users at the moment, though how many of those are active users is a mystery, and that 90 percent of its current traffic comes from the Asia-Pacific region. This last part is the key part, as the social network is still going strong in this region and so far has managed to stay ahead of Facebook and other social networks. It’s not clear how long it can keep this u… (read more)

  • CBC Autobody unveils rehab vehicle Monday

    Press Release
    December 4, 2009                                                      Contact: Frank Murray, 542-4835

    The Columbia Basin College Autobody program will unveil the new Kadlec Regional Medical Center inpatient rehabilitation vehicle at a ceremony Monday, Dec. 7th, at 1 p.m. 

    CBC received a donation of one of the Pasco Auto Wrecking’s ‘Cash for Clunkers’ vehicles.  The former SUV will be used to help patients rehabilitating from strokes and other disabilities to enter vehicles, adjust mirrors, put on seatbelts, and other procedures often taken for granted by most people operating a motor vehicle.

    Seventeen CBC Autobody students worked on the project for about two weeks.  The vehicle will be transported to Kadlec on Monday, disassembled outside the medical center, and then reassembled inside the rehabilitation gym.

    A CBC Autobody Advisory Board member told CBC Instructor Rhody Hayes of the Kadlec request and Hayes contacted Pasco Auto Wrecking which generously donated the vehicle.

  • Woman Filming Parts Of Sister’s Birthday Party At Theater, Charged With Felony Movie Copying

    Over the last couple of years, the movie industry has pushed hard for stricter and stricter laws for anyone caught “filming” a movie in the theater. Of course, these days, with more and more people having portable video cameras either in their mobile phones or other devices, the likelihood of these sorts of laws being abused or misused only grows over time. Take, for example, the case of 22-year-old Samantha Tumpach, from Chicago, who took her sister out for a surprise birthday party at a movie theater recently. While there, she used her new camera to tape parts of the event, including her, along with friends and family, singing happy birthday to her sister. But, in the course of all this, she also caught two small segments of the film itself, less than four minutes, total — hardly a representative case of “pirate” or “camcording” activity. Still, the theater pressed charges, and Samantha was arrested and spent two nights in jail — and may now face three years in jail as a felon. Good thing Hollywood got those laws, so they can get young women celebrating their friends and families’ birthdays put in jail.

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  • Bob Farrell’s 10 Rules For Investing

    MerrillLynch-0909-1

    Want to invest like the former Merrill Lynch champ? Here’s how:

    ——-

    1. Markets tend to return to the mean over time

    When stocks go too far in one direction, they come back. Euphoria and pessimism can cloud people’s heads. It’s easy to get caught up in the heat of the moment and lose perspective.

    2. Excesses in one direction will lead to an opposite excess in the other direction

    Think of the market baseline as attached to a rubber string. Any action to far in one direction not only brings you back to the baseline, but leads to an overshoot in the opposite direction.

    3. There are no new eras — excesses are never permanent

    Whatever the latest hot sector is, it eventually overheats, mean reverts, and then overshoots. Look at how far the emerging markets and BRIC nations ran over the past 6 years, only to get cut in half.

    As the fever builds, a chorus of “this time it’s different” will be heard, even if those exact words are never used. And of course, it — Human Nature — never is different.

    4. Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways

    Regardless of how hot a sector is, don’t expect a plateau to work off the excesses. Profits are locked in by selling, and that invariably leads to a significant correction — eventually.  comes.

    5. The public buys the most at the top and the least at the bottom

    That’s why contrarian-minded investors can make good money if they follow the sentiment indicators and have good timing.

    Watch Investors Intelligence (measuring the mood of more than 100 investment newsletter writers) and the American Association of Individual Investors survey.

    6. Fear and greed are stronger than long-term resolve

    Investors can be their own worst enemy, particularly when emotions take hold. Gains “make us exuberant; they enhance well-being and promote optimism,” says Santa Clara University finance professor  Meir Statman. His studies of investor behavior show that “Losses bring sadness, disgust, fear, regret. Fear increases the sense of risk and some react by shunning stocks.”

    7. Markets are strongest when they are broad and weakest when they narrow to a handful of blue-chip names

    Hence, why breadth and volume are so important. Think of it as strength in numbers. Broad momentum is hard to stop, Farrell observes. Watch for when momentum channels into a small number of stocks (“Nifty 50” stocks).

    8. Bear markets have three stages — sharp down, reflexive rebound and a drawn-out fundamental downtrend

    I would suggest that as of August 2008, we are on our third reflexive rebound — the Januuary rate cuts, the Bear Stearns low in March, and now the Fannie/Freddie rescue lows of July.

    Even with these sporadic rallies end, we have yet to see the  long drawn out fundamental portion of the Bear Market.

    9. When all the experts and forecasts agree — something else is going to happen

    As Stovall, the S&P investment strategist, puts it: “If everybody’s optimistic, who is left to buy? If everybody’s pessimistic, who’s left to sell?”

    Going against the herd as Farrell repeatedly suggests can be very profitable, especially for patient buyers who raise cash from frothy markets and reinvest it when sentiment is darkest.

    10. Bull markets are more fun than bear markets

    Especially if you are long only or mandated to be full invested. Those with more flexible charters might squeek out a smile or two here and there

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