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Investing in St. Louis Real Estate

It is common for investors to express uncertainty over their ability to manage their portfolios during prolonged periods of market volatility. But prudent investors understand that making sound investment decisions shouldn’t be based on the market’s twists and turns. Rather, these decisions should stem from an understanding of investment fundamentals and an awareness of the mistakes others have made. Keeping a few common mistakes in mind and steps to avoid them may help you as you work toward your goals.

Mistake #1: Maintaining unrealistic expectations

There’s nothing wrong with hoping for the best from your investments it’s human nature. However, you could encounter serious long-term cash flow problems if you base financial plans for the future on unrealistic assumptions. According to an August 2004 Gallup poll, nearly one third of 800 investors surveyed expected to generate profits of 10% or more in their portfolios during the next year. How does that anticipated return compare with actual historical returns? Based on data from Standard & Poor’s and the Federal Reserve, from 1926 to 2003, a hypothetical portfolio divided equally among stocks, bonds and cash would have had an average total return of 7.3% annually*. While the composition of your portfolio may be different from the portfolio in this example, it is important to maintain realistic expectations in order to have the best chance at reaching your goals. Although past performance is no guarantee of future results, familiarize yourself with the historical performance of appropriate investment indexes or appropriate benchmarks and use their average long-term returns to help maintain realistic expectations for your own investment returns.

Mistake #2: Chasing “hot” investments and overtrading

Investors tend to convince themselves that recent investment performance represents the future. The problem with chasing today’s winning stocks or mutual funds is that by the time you hear about the latest “hot” performers, you may have already missed out on all or most of the opportunity to participate in that price appreciation. Chasing past winners is closely correlated with another potential investment mistake overtrading. Shuffling your investments too often increases the chance you’ll buy high and sell low a worst-case scenario for investment success. Overtrading also generates more transaction costs and fees that cut into investment gains. One potential solution: work with a financial advisor. An experienced professional may be able to help you stay focused on your goals and avoid the urge to trade frequently. In fact, studies have found that investors who work with a financial advisor tend to hold on to their investments longer and realize better returns than do-it-yourselfers.

Mistake #3: Failing to keep your balance

You might be surprised to find that strong or weak returns in one area have caused a shift in your overall investment strategy that could affect your ability to reach goals or manage risk. Work with your financial advisor to review your asset allocation once or twice a year to make sure that it remains in line with your investment objectives.
Of course, investment mistakes do happen, but many are avoidable. Learn from the missteps of others, start applying these lessons to your investment strategy and make a point of working with a qualified professional.

Leveraging Your Investments

One of the best vehicles for your money is real estate. In St. Louis, we are experiencing an average return of 9 - 12%. Because there was not the fast and explosive growth that other cities experienced, the correction that the market is undergoing currently will not be nearly as volatile and will provide a much safer investment for home buyers. St. Louis real estate can also be much more affordable that in other parts of the country because it enjoys a relatively low cost of living. Many of the residents who have relocated to St. Louis have done so because of the affordability factor. Because of this, St. Louis is poised to enjoy a steady and comfortable growth over the next 20 years.Then the question remains - what to look for and how to know what to purchase. That is where you will need the experience of a proven real estate professional who knows the market, can demonstrate to you a proven track record of success. The real estate process can seem complex and daunting but working with an experienced agent can make all the difference. Currently in St. Louis, the downtown neighborhoods are turning over and experiencing a strong urban renewal. Neighborhoods to watch include Benton Park, Tower Grove East, and Old North St. Louis.

Tim Leeker is a Missouri Mortgage specialist who works with real estate agents that handle investment properties, rehabs and second homes. His site contains many tools and resources to help you get started on your home search including full MLS access to search for Saint Louis Real Estate. Tim can be reached at 314-628-2099 or visit him online at www.getmepre-approved.com.

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Four Key Components To Building A Trading System

Need some insight on what you should really be striving for when you’re building a mechanical trading system? When it comes down to it, there are really only a few criteria that are used in judging the merits of a trading system. The most obvious one is profitability - does the system work? But really, there’s more to it than just that. The number of wins versus the number of losses is important too, but there’s a lot of latitude there if the profitability is high. The size of the average win versus the size of the average loss tends to be held as important, and it is. However, that criteria is correlated to the number of wins and losses, so again, there’s a lot of leeway there. The one thing that is too often overlooked is the consistency of a system. The fancier term for this is ‘drawdown’, but it’s just a matter of consistency…..you’ll see why below. Each of these four components is examined below, and then some of the common mistakes made when folks start building trading systems are discussed.

1) Profitability. You wouldn’t think this would be tough to figure out, but building a system that actually works over a long period of time isn’t easy. But what you really want to make sure of is that your software is running a hypothetical portfolio the same way you trade. Your software should allow you to specify a dollar amount for your total portfolio, and a dollar amount or a set number of contracts for each trade. That allows you to allocate just a portion of your portfolio, say 10% per trade, into the trading system to give you some real-life trading results. The thing you absolutely must do is factor in commissions into your trading. Most software can do that, but if yours can’t, then do it manually. Once that’s done, the final test is this…..does your system beat the market. or would you be better off in an index? Or, if the market is losing ground, is your system at least profitable to some degree.

PITFALLS: Many system builders run a hypothetical trading system over a long period of time (like the last five years) to make sure the system is an ‘all-weather’ type of system. Rather than run a system over five years, run it over five separate one-year periods. Why? You may find that one of the years is VERY profitable, and the other four years are losers. Your system can’t be a one-trade-wonder. It has to be profitable in many environments.

2) Win/Loss Ratio. This is just an extension of the pitfall mentioned above (about systems applied to a long-term timeframe). One winning trade and nine losing trades may have been (net) profitable if your win occurred in the red-hot tech rally in 1999. That one win was the fluke though. The other nine trades are most likely what you’re going to experience on an ongoing basis. So what should your win/loss ratio be? Some new traders think you need to win on at least half of your trades to make it worthwhile. Others think you need to win at least 2/3 of the time. If only!

The reality is that even the best traders win less than half of the time….it’s just that their winners are much bigger than the losers (we’ll get to that in a second). I’d say shoot for a system that wins about 40% to 50% of the time. Is your tested system showing wins more than 65% of the time? That’s great, but I’d be skeptical of those results. We’ve been doing this a while, and when the success rate of a system starts to outperform everybody else’s by that much, there’s usually something very unique about it…..and it’s usually something that won’t be part of the equation going forward. In other words, if it’s too good to be true, it probably isn’t. This is often the case when a system is tailor-made for a certain timeframe or certain chart. All the criteria and parameters of a system are optimized for all the little nuances and unusual movements that occurred during that specific period. Those nuances and movements, though, may never occur again. If you’re winning 40% to 50% of the time, and you’re doing so in several different timeframes (as mentioned in the ‘profitability’ comments), then you’ve got a good system.

PITFALL #2: An acceptable win/loss ratio and average win/average loss ratio are inter-dependent. If you can win up to 50% of the time with your system, then you may not need to have your winners be enormously bigger than your losers. If you’re winning less than 40% of the time, you’ll probably need your winners to be three times a big as your losers. If you’re serious about building a system, you have to know and respond to both numbers. (be sure to see below)

3) Average Win/Average Loss. How big is the typical winner compared to the typical loser? Obviously, winners need to be bigger than the losers for the system to be worthwhile. At a minimum, your winners should be at least twice as big as your losers. That may sound easy, but it’s not.

PITFALL #3: A lot of traders have high win/loss ratios and strong average winner/average loser ratios with their systems. Unfortunately, they may only get to trade about twice a year. Unless they’re putting their entire portfolios into that one trade (which is crazy), the system doesn’t do them much good. Make sure you’re getting a high enough trade count to fit your trading style and desired activity level.

PITFALL #4: Make sure you understand that most of your winning trades will be very small wins. You’ll only have a handful of mega-winners, but they will significantly pull up the size of your average winner. That’s ok. Even the best of systems can’t predict how big the win will be - they can only guess as to which direction the market will take. Even if the system doesn’t result in a homerun on a particular trade, as long as it doesn’t wipe you out, it’s a good system. You only want your system to get you in a trade when there’s a chance of a big win, and it should get you out of the market when there’s little to no chance of a big move. Most trades will just be mediocre.

4) Consistency (Or drawdown). This may be one of the least mastered components of system trading. In a nutshell, ‘drawdown’ just refers to the biggest string of dollars lost at any given time using the system. For example, say you started with a $100,000 account, and built it up to $160,000. Along the way, say you took the balance from $150,000 back down to $120,000 before it went up to that $160,000 mark. Your drawdown would be $30,000 ($150K minus $120K). Or, in terms of percentages, it would be a 20% drawdown ($30K/$150K = 20%).

Why is that important? Trading gurus disagree on the issue. Some would argue that you have to limit your drawdown as a defense against losing any capital - a mathematical rationale. However, if you’ve created a system that is (1) proven to be profitable, (2) has a good win/loss ratio, and (3) the winners are a lot bigger than the losers, than the drawdown shouldn’t matter. After all, a good system will always overcome short-term losses. The reality is that the most important reason to understand drawdown is inside your head. How much loss can you stomach before you give up on the system?

There is bound to be some disagreement about this, but you should worry less about the degree of drawdown, and more about the total number of consecutive losing trades the system will probably produce. This recognizes that even with trading systems, which are designed to take emotion out of the decision, there’s still an emotional impact. Even if your losses and your drawdown are small, how many losing trades are you really going to accept before turning the system ‘off’? Four? Five? Ten? Try three. Yes, three. There’s something about the number three that humans seem to respond to (three strikes in baseball, The Three Musketeers, “three’s a crowd”, etc.) If your system results in three consecutive losing trades, odds are that you’ll abandon it. For that reason, I recommend striving to limit your total number of consecutive losers in your backtest to two. THIS WILL BE TOUGH TO DO! If you stick with the system, then the profitability will take care of itself, but you have to make sure it’s a system you can tolerate. Two losers is the limit for most people.

As a review…

1) Systems should be profitable in several distinct timeframes
2) Between 40% and 50% of your trades should be profitable

3) Average wins should be at least twice as big as average losses
4) Worry less about dollar drawdown, and more about limiting consecutive losers to two

Hopefully we’ve given you a specific set of criteria to shoot for. If you’re not yet using a trading system, you should consider applying one. It will take your trading success to the next level, if applied properly.

James Brumley is the chief analyst at Bluegrass Portfolio Management. After spending time as a broker, he established an independent investment research firm. He now manages portfolios, and you’ll find his market commentary and analysis on several financial websites.

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Your Sure Way to Lasting Success in Trading the Markets

Why is it that some people are successful in trading the markets? And why is it some people fail? Is it luck that determines if you are successful or not in making money from the market? Is it the system or strategy that a person use which determines their success?

A lot would say that it is the system or strategy that they employ which ultimately determines if they come out winning from the market.

Every system that exists on the internet will show you how to make money using it. Without a doubt, it will make money for you. The question is usually how much money will the system make for you. All the system that out there will show to you how their system has work base on historical data or activity and then at the bottom of the page there would be a disclaimer clause that states ‘.. Historical data does not determine or guarantee future earnings….’

So why is it that these sites or page include this disclaimer clause?

The disclaimer clause is incorporated in it because they know that there are certain elements which they can not control. Human emotions.

Human emotions are always the key to either success or failure in any business. And it is no difference when trading the markets. Read all the books about trading that you want, buy all the successful system that you want. If you can’t control your emotions, you can’t succeed in the markets.

That’s the reason for the disclaimers clause because the one thing that the author can not control is their subscribers or customers emotions.

In the market there are but only two main emotions that every trader will experience; GREED and FEAR. When this emotion appears it is not how we eliminate it but rather how we act on it. There are natural emotions that can not be eliminated. This emotions forces us to action, thus how we act on it will determine the outcome.

Like anger, when we are angry at someone, it’s either we say something nasty or we can just kick a bucket or we can just dive into a pool of water. Which ever action that we take, it produces a different outcome or result.

All too often when we begin to see two to three consecutive loses on our trading activities, we would begin to have doubt. When this happens we are already at the state of fear, we fear losing more of our money and thus begin to doubt that the system is working.

While no system is absolute, meaning no system will guarantee that you will make money ALL the time. The system seller would say that we would be able to make money consistently, provided we follow their system to the dot.

On the other hand, when we begin to see two or three consecutive we begin to feel on top of the world. We begin to feel that we can start making good money from the market and then start tweaking the system or maybe putting more money in the market to leverage our earnings or maybe begin to take on more positions, which ultimately make us deviate from the system which we were using. This is when greed has already stepped in to rule our thoughts.

There is saying ‘The system is only as good as the person using it’. So if we don’t follow the system either with we are making loses or when we are creating profits. We would ultimately fail. And to follow the system requires discipline. The discipline to act on our fear and greed when it sets in, will determine how well we do in the market.

Once again discipline is the key. We must have the discipline to say ‘I have reached my target. I should take profits now even though it may go higher’ when greed sets in. And when fear sets in one should say ‘I have to take a position even though the market does not seem to be moving in my favor’

While these are but two circumstances when greed and fears arises, there are, and will be many instances when we need to make a decision to either enter or exit the market. And these are very two most important decisions to take in order to succeed in the markets. The discipline to follow the system diligently no matter what happens to the market

So no matter how good the system is, the only and sure way is to lasting success in the market depend on the discipline to overcome our personal emotional to follow a particular system religiously.

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About the author

Casey Lim is a part time trader, who share his experiences in his journey into trading the markets while keeping a day time job. His objective is to make every trade a profitable trade every time which he believes is possible.

His site Celestial Trading is all about sharing information about trading the exchange markets; stocks, futures, commodities, and forex. There are articles and resources to help visitors make their trading journey a more successful and profitable experience.

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Turbocharged Financial Planning

Financial planning is an ongoing process individuals and businesses should implement by organizing all aspects of their finances. This will assist in identifying financial goals, providing a comprehensive written Financial Plan, and implementing the plan in accordance with the objectives that
are most important to you.

Comprehensive financial planning should involve these areas and these specific questions.

ESTATE PLANNING

*How can you accumulate a sizable estate to pass on as a family legacy?
*How will your hard-earned assets be distributed after your death?
*How can you minimize federal estate taxes and state inheritance taxes?
*How can you best provide for your surviving spouse and children?
*Whom do you want to carry out your wishes?

RETIREMENT PLANNING

*How can you accumulate enough in retirement savings and pension benefits to enjoy a comfortable retirement free of financial worry and not be a burden to your family?
*How much (or little) can you expect to receive from Social Security?
*How can you coordinate your IRA, 401k, pension, Social Security, and other retirement benefits for maximum effectiveness?
*At what age can you really afford to retire, especially if you have children to send to college?

TAX PLANNING

*Are you taking full advantage of the tax laws so that you are not paying more than necessary?
*Are there changes you could make in your business structure that would reduce your income taxes?
*Do you have access to changes in tax law that affect you?

RISK MANAGEMENT

*How are you protected against the unpleasant and potentially catastrophic losses associated with natural disasters, illness or accident, disability, property loss, personal liability, and premature death?
*Is your business protected against these potential losses?
*How would your business be affected if your key people were no longer able to function?

INVESTMENT STRATEGY

*Do you really have a structured investment strategy or do you just invest haphazardly in the latest investment fad?
*Do you know how to increase your investment returns and lower your investment risk through the use of the principles of the Modern Portfolio Theory of Asset Allocation?
*Is your asset mix appropriate for your short-term needs as well as your long-term goals?
*Do you adjust your investment strategy as your investment objectives change?
*Are your investments effectively overcoming the ravages of inflation and taxation?
*Do your investments accurately reflect your risk/reward profile?

Answers to these questions should be incorporated into a customized personal financial plan tailor made just for you.

A Financial Plan is specific to your unique needs and will include the following:

*Current and projected financial statements
*”What if” scenarios with different assumptionsv
*Cash flow objectives
*Retirement goals and tax-efficient ways to achieve them
*Funding children’s education
*Protecting against the financial impact of premature death or disability
*Implementation schedule with a time frame to follow.

Expect this process to be an eye-opening experience. You should be able to see all the disparate areas of your financial life come together into a comprehensive, meaningful, integrated whole.

All parts will work together like a well-oiled machine. You will see exactly where you are now, where you want to go, and most importantly, how to get there. Any obstacles you face will be clearly identified.

Your personal financial plan is a living document that should be reviewed on a regular schedule and altered to meet your changing circumstances.

Developing your financial plan is only the first step in a life-long process of wealth accumulation and financial security. Free financial planning resources are available at http://www.flanancialplanninginfo4u.com when you are ready to begin.

C.C. Collins is a Financial Planning Advisor and Author of “Scientific Wealth Strategies” at http://wealthscientist.com Find more information at http://www.financialplanninginfo4u.com

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How Did ISL Uranium Mining Begin?

It’s time to rewrite the history books. In Situ Leach Mining (ISL), or Solution Mining, was not first commercially started in Bruni, Texas in 1973 by Westinghouse, a consortium of oil companies and others. The birthplace of ISL was never South Texas, as some have claimed. It was begun in Wyoming, about 16 years before an ISL operation was started in Texas. Why there has been a whitewash over the true history of ISL is not our concern. This series is an in-depth investigation into how and why ISL mining came about, how it has been tested over a period of nearly 50 years, and why this type of uranium mining will play an important role in providing U.S. utilities with the raw fuel to power nuclear reactors for the next few decades.

In this modern era of uranium mining, extremely skilled engineers, hydrologists and geologists establish ISL mining operations. Most insiders compare an ISL operation to a water treatment plant. It’s really that simple to understand. However, as with every modern industrial operation, the roots of ISL mining came about in a less genteel or sophisticated manner. In 1958, Charles Don Snow, a uranium mining and exploration geologist employed by the Utah Construction Company, was investigating a Wyoming property for possible acquisition for his company. During the course of that visit, he discovered a new method of uranium mining and helped pioneer its development into the modern form of ISL.

Since 1957, R.T. Plum, president of Uranyl Research Company, had been experimenting with a leach solution on his property at the Lucky June uranium mine. “They mixed up the sulfuric acid solution and just dumped it on the ground, and soaked it through the material and collected it in a little trench at the end,” Charles Snow told StockInterview. It wasn’t very scientific. Snow added, “They were just learning how, and I observed it and thought that the application could be made through some of the ore that we had in the Lucky Mc mine.” The company was mining uranium this way because it was below the grades miners were used to, when mining. As Snow noted, “It was not worth mining.” But it was practically at the surface. He explained what they were doing at the Lucky June, “There was an area where uranium leached out to the surface in a small area, and it had a clay under-bed. These people put solutions onto the surface, collected the solution, and ran it by resin beads to absorb the uranium.”

While they only recovered about $3600 worth of uranium, roughly 600 pounds, Snow was impressed. He later wrote an inter-office memorandum in July 1959, with the subject header: “Recovery of Uranium from Low Grade Mineralization using a leach in place process.” In his conclusion, Snow recommended, “From the preliminary information available, it appears that it will be possible to treat very low grade mineralization for recovery of uranium at a large net profit.” He explained the process to his bosses, encouraging them to consider this as an option:

“In brief, the process introduces a leach solution onto the surface of the ground and allows the solution to percolate down through the area to be leached. The solution is then recovered from wells and circulated through an ion exchange circuit with the barren solution being returned to the leach area. Recovery of the uranium is made by stripping from the ion exchange medium.”

He wanted the Utah Construction Company to try this method of mining where there was low grade mineralization. Snow succeeded in convincing his bosses. That began yet another innovation for Utah Construction Company, the same company which helped construct the Hoover Dam, decades earlier, before it got into the uranium mining business.

Utah Construction Becomes the
First Commercial ISL Miner

Newspaper reports, through the 1960s, illustrate that ISL mining was in full bloom more than a decade before anyone in Texas began a commercial ISL operation. On June 18, 1964, the Riverton Ranger newspaper reported, “The Shirley Basin mine is on a standby basis. The timbers are being maintained and the water pumped out. Total production comes from solution mining.” Between 1962 and 1969, ISL was the only method producing uranium at Utah’s Shirley Basin Wyoming. Later in that same article, under the section entitled, “Gas Hills Solution Mining,” it was reported, “The Four Corners area is ‘mined’ by solution mining techniques similar to those employed at Shirley Basin.” Credit for this new mining method is also reported in that same article, “Lucky Mc introduced the heap leach process of recovering values from low grade ores in 1960.”

Charles Snow explained how his company made the transition from underground mining to solution mining, “The underground mining at Shirley Basin was very expensive, and we were having a lot of heavy ground problems.” The sandstone aquifers containing the uranium were uncemented and brittle, supported with timbers. “In some places, it was too heavy to hold with timbers,” said Snow. “We had to use steel sets underground, and it was even mashing the steel sets. So the expenses were getting very high.”

Water was flowing into the open drifts at prodigious rates. Snow recalled, “Barney Greenly said, ‘Let’s try solution mining over here.’ They did a test, and it did operate quite well. They got some pretty good results. So the underground mine was shut down, and they went to a solution-mining program to produce the allocated pounds in the Shirley Basin area.” The procedure was tested for a few years before a full-scale commercial production began. This fulfilled 100 percent of Utah’s Shirley Basin uranium production allotment from the AEC.

There were problems at first. “We started out initially using sulfuric acid, and we had some reaction with carbonates in the formation.” Sulfuric acid plus calcium carbonate produces calcium sulfate, and this plugged up the formation. Calcium sulfate is gypsum, which was insoluble in the leach solution. “It tended to plug up the formation and reduce the transmissivity of the fluid from the input hole to the output recovery hole.”

To prevent interference with the porosity of the formation, Snow switched to nitric acid, but admitted, “We were reluctant to use nitric acid because it was much more expensive than sulfuric.” But they did, because the nitric acid solution did not form gypsum. Unlike present-day ISL methods used in Texas, Nebraska and Wyoming, Utah Construction did not use a carbonated leaching solution in their solution mining. Nitric solution was used during the 1960s and continued until the Lucky Mc switched over to open pit mining.

It all started as a heap leach experiment. “We had quite a bit of low grade in Lucky Mc,” Snow told us, “so we thought we would try a heap leach experiment.” Results were good on the test, and Utah pioneered ISL mining. Snow wrote in an August 2, 1960 memo, “The favorable results of the heap leach project and other research indicate that the process can be successfully applied in many of the low-grade areas to recover much of the mineralization.” Later in his report, Snow calculated reserves from random samples obtained from previous drilling at Lucky Mc, “The estimated reserve for the block is 147,000 tons @ 0.0361 percent U3O8, or 106,616 pounds of U3O8.” He estimated the program would cost $111,471. Using a value of $6/pound for U3O8, the anticipated returns were calculated as follows:

50 percent recovery: 53,318 pounds: $208,377
25 percent recovery: 26,654 pounds: $ 48,453

That was just the start. By the end of the decade, Shirley Basin’s solution mining operation was producing U3O8 at comparable levels to present day production at any of the major U.S. ISL facilities. In a paper presented by Ian Ritchie and John S. Anderson, entitled “Solution Mining in the Shirley Basin,” on September 11, 1967, at the American Mining Congress in Denver, Colorado, these Utah International executives explained the success of the Shirley Basin solution mining operation. In a summary explaining the company’s activities, we discovered the Shirley Basin operation not only filled the Atomic Energy Commission (AEC) allocation requirements from 1962 through 1969 but we learned of the sizeable commitments into the future Shirley Basin was to fill:

“In 1968 sales of uranium concentrate were made to purchases other than the AEC. One of the first sales was to Sacramento Municipal Utility District with a minimum of 950,000 pounds to a maximum of 1,100,000 pounds of uranium concentrate in 1971. Additional contracts were signed with General Electric Company and with Nordostschwerzerische Kraftwerke A.G. (Baden, Switzerland). The contracts called for delivery of 8,000,000 pounds of concentrate to GE between 1968 and 1975, and 500,000 pounds of concentrate to NOK commencing in July 1969.”

Conclusion

The single reason solution mining stopped, well before the first “commercial” ISL operation began in Bruni, Texas in 1973, was because of the improved market forecast for uranium in the 1970s. Utah Construction switched to open pit mining because they needed to produce a lot more uranium. The nuclear renaissance of the 1970s demanded massive quantities of uranium to fuel the rapidly growing nuclear power industry.

Don Snow’s initial field tests, begun in the late 1950s, resulted in continuous production achieved by late 1962. Subsequently, production in the underground uranium mine was shut down by May 1962. The underground mine was maintained in a standby condition until 1965, when all underground operations were written off. Millions of pounds were mined by Utah Construction through its ISL operations in Shirley Basin. It wasn’t heap leaching.

Sufficient evidence confirms that Wyoming, not Texas, first pioneered commercial ISL mining. Not only were well fields designed as early as 1960, but the entire concept of an ISL “water treatment” plant can trace its roots to Utah Construction’s pioneer work. Everything from injection wells to production wells were pioneered in the early 1960s. We challenged Charles Don Snow that some have claimed it was heap leaching, not ISL mining. Snow shot back, “No, we drilled holes in the ground and the material had never been mined. We got our ideas, certainly, from heap leaching, which came from the copper industry.” Snow explained that after the solution mining experiment was successful, “A recovery plant was designed and put into the hoist house, where they had had the underground mine. That was designed by Robert Carr Porter and Ian Ritchie.” Snow added, “In fact, Ian Ritchie and J.S. Anderson have a U.S. Patent on the well completion procedures that we used at Shirley Basin.”

Snow pondered if his friend Jack Bailey may have exported the ISL technology to Texas. “Jack Bailey was the Shirley Basin project manager for the underground mine when we switched over to solution mining,” Snow said. “He later went to work for Chevron, and Chevron had operations in Texas. I believe they even experimented with solution mining. Now, whether or not Jack was directly involved, I don’t know.” As it is with history, many of the old-timers are gone. We were told Jack Bailey had had a stroke a number of years back, and did not trace this further. There may have been others. “Some of the people from that area (Shirley Basin) had gone to Texas,” Snow recalled. “There is documentation, it was published information, and a lot of people who went to Texas, came from the Wyoming area. So, I’m sure there wasn’t a paucity of information being transferred.” Ironically, the Westinghouse-led consortium, which included U.S. Steel and Union Carbide, among others, was called Wyoming Minerals. Now we know exactly why they chose that name.

While there have been a number of ISL operations built and operated in Texas, there may be little future for uranium mining in that state, unless there are new discoveries. By a few, Texas has been inaccurately called the “home of ISL mining.” Perhaps that came about because ISL operations continued, during the uranium depression of the past two decades, with small amounts of production occurring in Texas. According to Energy Information Administration figures published in June 2004, uranium reserves in Texas stand at 23 million pounds of U3O8 based upon $50/pound uranium. By comparison, Wyoming and New Mexico reserves, using that same benchmark, reach as high as 363 million and 341 million pounds, respectively.

This may explain the rush by junior exploration companies, such as Strathmore Minerals (TSX: STM; Other OTC: STHJF), Energy Metals Corporation (TSX: EMC), UR-Energy (TSX: URE), Uranerz Energy (OTC BB: URNZ), Kilgore Minerals (TSX: KAU) and others, to Wyoming. The large quantities of pounds are in Wyoming, not Texas. It may also explain why Uranium Resources (OTC BB: URRE) has looked beyond Texas into New Mexico to develop its ISL operation, and Strathmore Minerals has quickly been advancing through its permitting stage on one of its properties in that state. It is fitting that the big past uranium producing states may again become tomorrow’s leading U.S. producers. In any event, the entire world of ISL mining owes a debt of gratitude to Charles Don Snow for his pioneering efforts in bringing a heap leach experiment into full fruition as modern-day in-situ mining.

James Finch contributes to StockInterview.com and other publications. You can email James Finch at jfinch@stockinterview.com. All of his archived articles (with photos, maps and charts) can be read at www.stockinterview.com

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The New Investor Special Report

The Nature of Stocks and Their Markets

Stock Brokers

Besides money, the only thing you need to start investing is a
stock broker. Your broker will be the individual or organization
that have execute your buy and sell orders. They will have an
account for you which is just like a normal bank account, except
that it can contain not only cash, but stocks and bonds as well.
Money from the sale of shares will go into this account, and
cash to buy shares will be taken from this account.

There are two types of stock brokers which you can choose
between, full service and discount. Each has advantages and
disadvantages, as discussed below. Full Service Stock Brokers

Full service brokers will give you advice and investment
recommendations. However, they do have very high commission fees
and are usually only suitable for investors who have a great
deal of money to invest and who do few trades. For penny stock
investment, the frequency of trading and the small amounts of
capital per trade make full service brokers inappropriate,
because their commission fees will be too high. You may be
required to pay as much as $100 or more to have your full
service broker buy you some shares, and just as much again when
you sell.

Discount Stock Brokers

Discount brokers can answer any investment questions you may
have, but they offer fewer personalized services for their
clients, such as making stock recommendations or giving you
portfolio advice. These are the brokers you see on television,
advertising $10 or $20 a trade commission fees. When you buy or
sell stock, you will be required to pay this lower commission
rate, and can therefore keep more of your own money in your
pocket.

As well, with discount brokers you can often monitor your
account and execute trade orders from your computer or through
an automated telephone system. With the computer system you are
able to see all of your open buy orders, check market indexes
and get stock price quotes. On-line discount brokers are best
for anyone investing in penny stocks, as you are able to check
prices anywhere there is a modem, and as many times as you like
throughout the day.

When you’ve chosen which broker you want to establish an account
with, simply contact them and they will help you fill out any
forms and set up your account. You generally will need an
initial deposit of cash. Getting your account running and ready
for trading is simple and should not take more than three days.

Buy Orders

When you want to acquire shares of a stock, you give your broker
a buy order. Make sure you have enough money in your account to
cover the cost of the shares, as well as the commission fee. You
will need to know the following;

1. The ticker symbol of the stock (i.e.- COMX is the ticker
symbol for Comtrex Systems) 2. The market the stock is trading
on (i.e.- NASDAQ) 3. How many shares you want to acquire. This
is also referred to as the volume. With penny stocks you should
always buy in multiples of 1000 shares, as you may be otherwise
subject to extra commission charges from your broker. 4. The
price you are willing to pay for the shares. A ‘market’ order
means you are willing to pay the best available price at the
time. A ‘limit’ order means you will specify a price which you
are willing to pay, and your trade will only take place if
shares reach that price. We strongly suggest the use of limit
orders, to increase you control over the transaction and to
avoid price volatility. 5. The duration of your order. For
example, you may keep your order good for just that trading day,
or have it good every trading day until it expires on the date
you specified, which may be weeks later.

Thus, an example order you might enter would be; “I wish to buy
6000 shares of Lore Diamonds, ticker symbol LOR, at 19 cents or
less. The stock is on the Vancouver exchange, and I want this
order to stay active until Friday of this week.”

If the price of LOR hits 19 cents or less, your broker should
acquire the shares for you. You will find that 6000 shares of
LOR have been added to your account, and the money for them has
been taken out (6000 shares * $0.19 = $1140 + commission fee).

Sell Orders

A sell order is simply the reverse process of buying. Make sure
you know how many shares you have in your account when selling a
stock. Tell your broker; “I wish to sell the 6000 shares of Lore
Diamonds from my account. The ticker symbol is LOR, and the
stock is on the Vancouver Stock Exchange. I want to sell at 24
cents or higher, and keep the order good for the day.”

If the price of LOR hits 24 cents or higher, your shares should
be sold and the money from the transaction (6000 shares * $0.24
= $1440 - commission fee) deposited into your account within
three days, ready to be used in another purchase.

Special Trading Notes

When trading on an exchange, investors either enter a bid price
(if they are buying) or an ask price (if they are selling). When
a bid and ask price meet at an agreed price, a trade takes
place. In other words, if you are willing to pay 24 cents per
share for a stock, and someone is willing to sell shares of the
same stock for 24 cents, you will exchange the shares for the
cash.

At any one time there are usually several buy orders and sell
orders all at different prices for a given stock. However, when
you check a stock quote you will only see the highest bid price
and the lowest ask price, representing the most that investors
are willing to pay for the shares, and the lowest price at which
shareholders are willing to sell, respectively.

Due to the ‘best price’ priority, your order to buy stock will
not get filled until all buy orders of a higher price are filled
first. Similarly, your sell orders will not get filled until
sell orders of a lower price are filled. For orders to buy (or
sell) stock that are entered at the same price as other similar
orders, preference will be given by the exchange in the order in
which they were received.

Unfilled Orders

Due to the above mentioned ranking order, and the often light
volume of shares trading, you may not always get your order
filled. You may put in an order to buy at a certain price, and
find that the shares did not trade at that price during the
duration of your order, and therefore you did not make the
transaction. There will be no broker fee when no trade takes
place.

Partial Fills

You may also find that you got your order partially filled. You
may want 8000 shares of a stock, but only get 2000. This is
because only 2000 shares were available at the price you had
stipulated. This applies to both buying and selling. If you
notice that this may be the case mid-day, you can respond by
adjusting the price of your order to ensure you trade all the
shares you want. You will not get an extra commission for that.
However, if your order spans several days and is partly filled
on more than one day, you will get a commission charge from your
broker each day you trade shares.

Canceling and Changing Open Orders

Buy and sell orders can be canceled or changed during their
duration. Consult your broker for more information about
changing open orders.

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Direct Public (Internet) Offerings

Direct Public Offerings, commonly known as Internet Offerings, are a development of the Internet and World Wide Web. Similar to SCOR offerings in the type of paperwork required, they remain an unknown as far as acceptance by the securities industry. Their primary setback at this time is that there are no acknowledged trading markets (like NASDAQ, NYSE, AMEX).

Test for a Direct Public Offering

Drew Field, on his web site (http://www.dfdpo.com/screen.htm) suggests the following test as to whether your venture is a candidate for a DPO:

1. The business would excite prospective investors, making them want to share its future.

Soon millions of Americans will become “securities analysts,” using computer-based tools for screening and selecting among thousands of companies to invest their retirement funds and savings. Until then, companies will have to attract us with a story close to our personal interests. We’re not ready for the “dull but good” businesses yet.

2. There is a history of profitable operations under the Company’s present management.

DPOs are sold when the prospectus is read, by cautious individuals spending their own money. With some exceptions, they want proof that management can turn a profit.

3. Company and management meet standards of honesty and social responsibility.

When people invest directly in share ownership of a company, after making their own decision and using their own money, they feel a sense of identity with that company. Polls consistently show that an overwhelming percentage of consumers prefer products from companies that aren’t causing harm. That carries over to buying shares as well.

4. The business can be understood by people who may have no experience investing.

Shares are sold in a DPO when someone reads the prospectus, and sales are lost when this prospectus is difficult to understand. Try describing your business in ten words or so. Also, try telling your whole story–what your business is, what you’re going to do with the public’s money and the particular risks of investing in your shares–in a one-page memo.

5. The Company has natural affinity groups, with cash to risk for long-term gain.

Affinity groups may be easier to explain your business to, but also need to be large enough to buy your entire offering. For instance, people in the same area of town may be likely investors, even if they aren’t also customers. Other groups may be interested in the particular technology or corporate mission of a business. Along with the number of potential investors, consider strength of the affinity (how loyal do they feel toward your company).

6. Those affinity groups will recognize the Company’s name and consider its offering.

DPOs for companies with consumer branded products should carry the logo, slogans and color identifications through into the share offering materials. Companies with names that are entirely different from their product names must transfer the feelings about the known name over to the new one. The greatest challenge is to create recognition for a company with no current identification among affinity groups.

7. Names, addresses, phone numbers and demographics are in the Company’s database.

There are ways to “profile” those customers and figure out how to reach them through selected media.

8. A Company employee is able to spend time as project manager, directed by the CEO.

There needs to be one person for whom the DPO is the top business priority. Experience has shown that anything less than that will lead to slippages in the schedule and a decline in enthusiasm for getting the job done. The ideal is someone earlier in their career who works directly under, and speaks with the authority of the CEO or CFO.

9. The Company has, or can obtain, audited financial statements for at least the last two fiscal years.

This is the requirement for the new securities law filing forms made available to small businesses (under $25 million annual revenue) by the federal Securities and Exchange Commission. Unless the company has been in business less than two years, we suggest that you not try to save accountants’ fees by using unaudited (even “reviewed”) numbers. In cases where prior years would be difficult or impossible to audit, or where accounting records need to be put in auditable shape, it may be best for the company to arrange some private financing until it is ready for public scrutiny.

John Vinturella - EzineArticles Expert Author

John B. Vinturella, Ph.D. has almost 40 years experience as a management and strategic consultant, entrepreneur, author, and college professor. For 20 of those years, Dr. Vinturella was owner/president of a distribution company that he founded. He is a principal in business opportunity sites jbv.com and muddledconcept.com, and maintains business and political blogs.

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What’s Next for Emerging Market ETFs?

Exchange-Traded Funds (ETFs) tracking emerging markets have had a remarkable run. In 2005, the South Korea (EWY) was been up 57%, Brazil (EWZ) up 56%, Mexico (EWW) up 49% and the Emerging Markets (EEM) up 34%. In the last 12 months, China (FXI) has shown some life up 26% and South Africa is up 32%.

The MSCI Emerging Market index is up 82% since mid-2004. In addition, lower risk countries like Singapore (EWS) have been up for four straight years and its Straits Times Index has risen by 85% since 2003.

I am getting a lot of call lately about what to do next. Should investors buy, hold or sell?

There are two arguments out there about the future of emerging markets at polar extremes from each other. BCA Research notes that despite the run up in prices over the past three years, trailing and forward PEs are only 13 and 11 respectively. Both are far from being out of line from both a fundamental and a historical basis. Brazil is a good example with a market at about 10 times earnings.

Morgan Stanley took a different view in a research report published last week. It points to the shrinking of the sovereign risk premium for emerging markets as a sign of potential weakness. In other words, the degree of higher interest rates demanded from the market to offset the higher risk of emerging markets has shrunk sharply. In 2004 it was 3.5% and now it is about 0.50%. There can be little doubt that this shrinkage has fueled at least part of the rise in emerging markets.

The truth probably lies in the middle of these extremes. The world is filling in and emerging markets will very likely outperform more mature markets but don’t expect a straight line up. Near term there will be some pullbacks in specific countries depending on circumstances.

Be alert, get some good intelligence, and put in place some measures to control risk. Here are a few ideas.

First, follow our portfolio approach whereby we weigh each ETF in a portfolio to prevent getting carried away with too large a position in an emerging market ETF. It is a bit like dining out, you may like Thai food once in a while but do you want it every night?

Second, keep emerging market ETFs out of your core portfolio which should have the goal of preserving capital.

Third, use our trailing stop loss strategy that kicks out an ETF down 10% or so from its high.

Fourth, use put options to mitigate risk. When you buy the China ETF (FXI), consider buying a put option on this ETF out 18 months at the same time.

Fifth, if you have an emerging market ETF that has had a great run, why not take some money off the table? As old Joe Kennedy aptly put it: “only a fool holds out for top dollar”.

My view is that for the most part, emerging market countries are in far better shape today than in the 1990s and valuations are not way ahead of themselves. Also some of the lower risk countries like Singapore are appealing. In the early part of 1997 before prices crashes, the Singapore Straits index was at 24 times earnings. Now it is 15 and the broader market is at 12 times earning.

Keep in mind that 200 years ago India and China made up 50% of world GDP. We have a long way to go with this story but you need a smart strategy able to weather some turbulence now and then.

Delfeld has 20 years of global investment experience including stints in Hong Kong, Sydney and Tokyo and served on the Executive Board of the Asian Development Bank in Manila. He was also a consultant to the U.S. Treasury and the U.S. Congress on international investing and is a columnist on global investing for Forbes Asia magazine.

For more information about Chartwell’s ETF investor advisory services, please go to http://chartwelladvisor.com/etf_investing.html or call Carl Delfeld direct at
(719) 264-1503.

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How To Find An Investment Advisor

Do you think you need an Investment Advisor? Hold on before you answer because this is sort of a trick question. Also, I am definitely biased because I am an Investment Advisor. Nonetheless, I think I can assist you in looking at this issue in a way that will serve you.

Working with a fair number of investors over the last nearly 20 years, I have observed that while most are intelligent people, and many are fairly knowledgeable about the market, they are, as a group, not terribly successful with their investing.

Why should they be? More likely than not they have made their living doing something other than investing, so why would they think they can do what a professional does better than a professional? (After all, they go to professionals for health care or for car repairs when needed!)

Most investors-even some professionals-tend to be “off” in their timing: they buy things when they are hot, not when they are cold. But for the greatest benefit, it should be the opposite. The media doesn’t help much when it comes to this buying approach, and let’s face it; greed and fear play a large part in most peoples’ investment decisions.

I truly believe the majority of people would be better of (that is, they would end up with more money at the end of the day) if they used professional money managers to advise them on their investing. Specifically I am referring to Registered Investment Advisors with proven track records of performance in investing in stocks, bonds, mutual funds

Let me burst one myth right off the bat: You don’t have to be a millionaire to engage the services of a topnotch advisor. Some people think you need to start an account with $50,000 or more to get a really good advisor. Well, you may have more choices if you’re at that level, however you can find very successful Investment Advisors who will accept opening accounts for as little as $5000.

There are literally thousands of Registered Investment Advisors in the US. Just what do they do-what service do they provide you? They do the legwork; the research and analysis. Maybe more importantly, they keep their primary focus on the markets, and specifically on their specialty area like individual stocks, mutual funds, or bonds.

Because they spend the bulk of their time and energy researching, considering, and analyzing, they naturally have a greater sense of the market and its movements than those of us who don’t put this kind of attention into it. So, with the right advisor, you can keep your focus on what you want-like your business or your retirement or whatever-and still get the information you want and need to invest wisely.

How Do You Find The Advisor for You?

Since there are good Investment Advisors and bad ones, how do you find the former and avoid the latter? Good question, and there are some keys. Most large brokerage firms list the Investment Advisors they work with and maintain information about their past performance. This is not a foolproof resource, though, since they tend to recommend the Investment Advisors who invest in their products or clear their business with the firm. So if you pursue this avenue, you need to watch for conflict of interest issues.

You can always subscribe to one of the numerous database services that include information, and sometimes rankings, on Investment Advisors. These services tend to be fairly pricey, though, so they may not be your best choice. Another option is to find articles (yes, like this one) or free newsletters written by Investment Advisors. If you find one or several that make sense to you, check out the IA and see if there’s chemistry between you.

When checking out advisors, here are some things to keep in mind:

  1. Verify their record — look over their past performance;

  2. Consider their system. Will it work in different market environments?;

  3. As best you can, check out their operation and

  4. See if they’ve had regulatory problems.

  5. Equally important as doing your due diligence is making sure there is good communication between you and your advisor and that you trust this person with your money choices.

Another quick free way to scan through a select database and find a wide variety of candidates is with www.investortree.com . I’m registered there myself as an advisor and know that the company did a background check regarding registrations and regulatory issues.

An important question to ask is the how the advisor gets compensated. You want to stay away from commission junkies or salesmen disguised as advisors. I believe that you will get the best unbiased advice from someone who is paid a management fee based on the value of the assets that you entrust them with.

To take it one step further, ask if the advisor invests his own money in the same methodology that he recommends for his clients. If he doesn’t, ask why. If you don’t like the answer, close your check book and run as fast as you can.

Choosing an Investment Advisor can yield long-term high profit benefits. I encourage you to consider it if you haven’t before. However, as with any relationship, make sure there’s a fit before you jump into it.

About The Author

Ulli Niemann is an investment advisor and has been writing about objective, methodical approaches to investing for over 10 years. He eluded the bear market of 2000 and has helped hundreds of people make better investment decisions. To find out more about his approach and his FREE Newsletter, please visit: http://www.successful-investment.com; ulli@successful-investment.com

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Holy Grail of the Capital Markets

HOLY GRAIL OF THE CAPITAL MARKETS

Introduction

Ever since I have retired at the age of 28 (You can too! Learn
how from my Free Reports at
http://www.mastersoequity.com/MOE_FREE_REPORT.htm ), I have been
doing a lot of thinking into these “Tough Cases” of the
investment world. What I present today hopes to unveil the most
mysterious of them all, the Holy Grail of The Capital Markets
and I will be giving you my argument as to why it truly exists
and to help you find your personal Holy Grail of Trading and
Investments by the time you finish reading this report.

So let’s go treasure hunting…

The Fabled HOLY GRAIL…

We have heard it a thousand times; investors and trader, young
and old have sought it for hundreds of years and countless more
are attempting to create it everyday. It is the fabled, urban
legend of the investment world… the Holy Grail of the Capital
Markets; A trading or investment system or strategy that will
never fail.

Some believe in it, others don’t and many maintained that such a
strategy or system doesn’t exist or simply impossible. Many have
claimed to have perfected such a system but when tried by people
other then themselves, it fell from Holy Grail to torn, leaking
paper cup.

The Wrong Perception

There was once a warrior near the end of the dark ages whom
heard of the power of a new weapon… a weapon that can kill
from ten paces away and can penetrate almost any known amour at
that time… a GUN. It was supposed to be an invincible weapon
and he spent everything he had in order to acquire one of these
weapons. Once he had that weapon, he wasted no time to duel the
most powerful warrior known in that land. He fired many shots
but missed and his life was taken under the blade of the veteran
warrior.

Like the gun, we expect that the Holy Grail strategy to be
invincible at all times. We imagine that we will never again
lose money once we acquire that knowledge. We can’t be more
wrong. The question really is, are we suitable for this
invincible weapon?

The Truth Behind The Holy Grail

We all think of the Holy Grail as a strategy that can’t fail.
However, we completely ignore the Human Factor! Study all the
famous battles of any and all ages and we will see that many of
the battles were lost not because of the strategy used but
BECAUSE THEY ARE BADLY EXECUTED. Most of these strategies are
good until screwed up by us… HUMAN!

You are right. We, human, make and break every Holy Grail that
ever existed. We are the “Stand” or the Base of the “Cup”.

Yes, we COMPLETE the Holy Grail through the effectiveness of our
execution. We are truly the stand that completes the strategy
and therefore we must all make sure we are the right stand for
the right cup!

I am sure this sounds like you as much as it was me some time
ago… You purchased strategies that claimed to work wonders but
no matter how hard you try, you bend some of its rules and end
up hurt. That’s your prove that matching your psyche with the
right strategy is so important. (Here is a free to download
psychometric test to see what kind of trader you are and what
kind of strategy you are suited for. Go now to
http://www.mastersoequity.com/MOE_FREE_REPORT.htm )

You tried to stick to the rules, didn’t you? But what did you do
when your portfolio starts going into the red and the rules says
“STOP OUT NOW, AT THIS POINT!”? That is why we need to
understand what kind of stand we are BEFORE trying to understand
the cup and eventually the market!

What Cup to What Stand?

Now that you have found your stand, it is time now to find the
right cup to complete your personal Holy Grail. Unfortunately,
not all strategies are worth the title “Holy Grail”. Many of
these strategies are fundamentally unsound or that they have not
been molded in the flames of real life trading. Therefore, a
worthy cup to complete your personal Holy Grail needs to be:

1) Tested and True in real life trading with proven track record
2) Fundamentally sound 3) Logically sound 4) Tested and
developed in your market of interest!

That last point got some of you baffled didn’t it?

Yes, if you want to trade the US markets, your strategy needs to
be developed and proven in the US markets and if you want to
trade Asian equities, your strategy needs to be developed and
proven in the Asian markets. Why is this so? Due to fundamental
differences between the markets such as liquidity, investor
sentiments and behavior, level of participation of institutional
players and investor sophistication. Most strategies need to be
optimized for the market it was developed for and therefore
using it in other markets may result in a terrible loss due to
different price behaviors that results in making your profit or
loss taking point obsolete.

So why do I trade only the US markets? I trade the US markets
due to the fact that it has the highest level of sophistication
and its investors execute strategies which are little known in
other markets. This makes sure that whatever you try to do in
this market, It has the LIQUIDITY to ensure your profitability!
It is akin to a huge departmental store whereas some other
markets are small grocery stores at best.

And hey, we all know that there are more promotional and good
value items in a department store than most grocery stores can
afford to give, don’t we?

Convinced why the US markets are our best choice yet? … Good.

Where to Find YOUR Cup?

While there are a lot of good strategies out there, I wish to
recommend that you go to
www.mastersoequity.com/MOE_startradingsystem.htm (for aggressive
traders) or www.mastersoequity.com/MOE_ridetheflow.htm (for long
term traders). Both of these strategies are:

1) Tested and True with proven track records 2) Fundamentally
sound 3) Logically sound and 4) Developed and tested in the US
Markets!

CONGRATULATIONS, you have now in your possession, your personal
Holy Grail of trading and investments!

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