Excerpts from
March 2010 (No. 73)

THE NEXT CRISIS - (Subscribers Only)

BACK IN ---
--- is a pollution control company that gave SWI previous gains of 50% in 2 months, 25% in 5 months, 22% in 6 weeks, and 17% in 15 weeks. So I was pleased to see it pop up on my screen when I went looking for companies that have gyrated a couple of times since the March '09 market lows. When I looked into --- this time, I found essentially the same story as before - uncertainty about U.S. environmental regulations, waiting on big orders from China, etc. The future is always right around the corner for this company, which is great for Sine Wave investing. It means that people have HOPE and that will continue to drive the share price up and down.... - OK

EARNINGS
* --- - Long story short, falling revenue and a widening net loss. The company took $57 million in one-time charges, so it might be packing all the bad news into one quarter, one can only hope so. Maybe things will turn up from here, but it'll be a long time before I'm a believer again - AVOID

* --- - ...  sales dropped about 25% and the net loss ballooned about four times in the most recent quarter. The company blames the world economy (duh!) and the withdrawal of subsidies in Germany. --- has several product launches planned for the year, but I doubt this will make much difference as other companies have caught up with ---'s formerly market leading technology. There is one ray of hope - --- began selling to the Veterans Administration in November 2009. This was in the works for a very long time. It was supposed to be a game-changer. This or something comparable needs to pan out before I change my view of this company - AVOID

TIDBITS

* Country Watch (Thailand) - A recent survey of senior businesses executives in Thailand confirms my diagnosis of what ails the country. Political risk is the biggest problem, more so than the global recession, energy prices, or the exchange rate, survey respondents said. Political risk has been building for the last couple of months in anticipation of ....

* Beyond Tomorrow - 1) An experimental mercury-free nanofiber light bulb from RTI International has proven five times more efficient than incandescent bulbs, while providing the same full-spectrum white light. Commercialization is expected in 3-5 years. In case you don't know it, mercury-laden compact florescent is a stupid technology. It's promotion by governments world-wide is an accident of timing. Personally, I'm hoarding conventional bulbs and waiting for the day that LED bulbs don't cost $90 apiece or that transformative technology like nanofiber appears on the market. 2) Researchers at Penn State have constructed an experimental ....

* Freedom Watch - Plan to celebrate the true meaning of the 4th of July with a short program before you gather with your friends your picnics and fireworks. Suggested readings include the Declaration of Independence and the Bill of Rights. There is also the Instant Graduate Degree in Political Science: Too many Americans have been cut off from their heritage and no longer understand the set of ideas the country started with, or why the Founders' ideals remain important today. Understand these ideas and you will know more about our country than many a politician or college graduate. The ideas are simple to grasp, yet so very powerful. The Declaration of Independence states that you have the unalienable rights to life, liberty, and the pursuit of happiness. These rights are not something the government gives you; you have these rights before the government ever enters the equation. The Founders instituted a system of limited government so that these rights could not be taken away from you. This is the true meaning of the American Revolution, and it was truly revolutionary. For the first time in human history, a government was instituted whose express purpose was, and still remains, to protect the rights of the people. The federal government has only the enumerated powers expressly set forth in the Constitution. Under the 9th and 10th Amendments to the Constitution, all other powers belong to We The People and to the states, not to the bureaucrats or politicians in Washington. The Founders were very far-sighted in instituting limited government. They knew that, every now and then, a charismatic demagogue would come along singing a siren song about how much the government could do for you if you would only surrender your liberty. The Founders knew that somebody would always want to be King George and that the inevitable tendency of government is to grow its power and to expand its reach over the people. The system of checks and balances the Founders created will, if faithfully observed, forever prevent another tyrant or tyrannical government from emerging and ruling the land by personal whim or its own dictate. The Founder's set of ideas is superior to all political theory that went before (might makes right, the divine right of kings) and every political ideology that has come along since (Marxism, socialism, and their warmed-over derivatives that have destroyed liberty and failed everywhere they've been tried). So, as you celebrate the 4th of July, it's worth remembering the true meaning of this day and why we in America truly have cause for celebration. We the People are free and, sadly, that has not been true for most human beings who have ever walked the earth. Congratulations, you have just graduated. Now go in liberty and cherish every minute of it. Don't let anybody confuse you with sophistry or take your liberty away from you without a fight. It's your heritage and your birthright as an American.

DISCLAIMERS

The opinions expressed herein are subject to change without notice.

The factual representations contained herein are drawn from sources believed to be reliable but accuracy or completeness cannot be guaranteed.

etc.