From grayzhu@panix.com Wed Jun  1 21:56:24 1994
Return-Path: <grayzhu@panix.com>
Received: from panix.com by ifcss.org (4.1/IFCSS-Mailer)
	id AA14302; Wed, 1 Jun 94 21:56:22 CDT
Received: by panix.com id AA00422
  (5.65c/IDA-1.4.4 for jiang@ifcss.org); Wed, 1 Jun 1994 22:54:10 -0400
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
Message-Id: <199406020254.AA00422@panix.com>
Subject: IC940601:IRA-III, Can I take IRA deduction?
To: jiang@ifcss.org
Date: Wed, 1 Jun 1994 22:54:04 -0400 (EDT)
Mime-Version: 1.0
Content-Type: text/plain; charset=US-ASCII
Content-Transfer-Encoding: 7bit
Content-Length: 9167      
Status: R

================= IC940600 ==================

Do you know?

    o 80% of all American households can take at least a partial IRA
      deduction, even if they have employer's retirement plan.
    o Even if your IRA contributions are not tax-deductible, 
      the earnings on those contributions compound tax-free until
      withdrawl. - you can always have an IRA account, enjoy
      the deferred tax on the earnings, and let the earnings make more 
      money for you. while for normal investment, you have to pay tax
      each year on the dividend and realized capital gain.

(CONTINUE IF YOU LIKE TO KNOW ...)

====================== table of contents ======================

1. Can you take the IRA Deduction?
2. How an IRA works
3. Rollovers of Distributions from Qualified Retirement Plans
4. IRA Transfers
===============================================================

1. Can you take the IRA Deduction?

- If you or your spouse are covered by your employer's retirement plan
  for any part of the year, you may be able to take a partial tax
  deduction.

- If you or your spouse are not covered by your employer's retirement
  plan for any part of the year, you can take full IRA tax deduction.

Check the following table and see if you are eligible for deduction.

   IRA deductibility for active participants in a qualified plan
   =============================================================

                 Modified Adjusted      Allowable IRA Deduction
Filing Status    Gross Income           For active participants
---------------------------------------------------------------------
Single           up to  $24999          Full amount
                 $25000-$34999          Deduction reduced by $200
                                        for every $1000 over $25000  
                 $35000 & Above         No deduction
---------------------------------------------------------------------
Married/joint    up to  $39999          Full amount
                 $40000-$49999          Deduction reduced by $200
                                        for every $1000 over $40000
                 $50000 & Above         No deduction
---------------------------------------------------------------------
Married/separate  up to $9999           Deduction reduced by $200
                                        for every $1000 of income
                 $10000 & Above         No deduction
---------------------------------------------------------------------

a) Modified Adjusted Gross Income - determined before reduction for 
   any deductible contribution to an IRA.
b) Married/Joint - either spouse is an active participant
c) When applying calculation to determine deductible limit, any amount
   greater than $0 but less than $200 is round up to $200.

2. How an IRA works

An IRA allows you to contribute up to $2000 annually toward
retirement, or $2250 between two IRAs if you have a non-working
spouse. The contribution can be invested somewhere (I have mentioned
in the previous messages) just as normal investment, the difference is
the tax treatment of the investment. Discuss with your financial
advisor/broker to set up an IRA account and IRA investment.

Tax-deferred compounding can have a dramatic effect on your retirement
savings. The following table compares a $2000 annual investment in an
IRA with the same investment in a taxable account at the 31% effective
rate, both earning 8% a year with earnings reinvested. you can see
that the IRA investment builds up to $244,692 over a 30-year period,
while the same investment in a taxable account products only $153,401.
Of course, the IRA assets will be subject to tax upon withdrawal; but
your retirement savings will probably come out far ahead with tax
deferral!


                 The Power of Tax-Deferred Compounding
                 =====================================
-------------------------------------------------------------------------
                5 years  10 years  15 years  20 years  25 years  30 years
-------------------------------------------------------------------------
tax-deferred    
returns         $12672    $31291    $58648    $98846    $157909   $244692
after-tax
returns         $11783    $27198    $47363    $73743    $108254   $153401
-------------------------------------------------------------------------

3. Rollovers of Distributions from Qualified Retirement Plans

An IRA rollover is a means of deferring taxes on a distribution of
plan assets that have been paid to you from your employer's qualified
retirement plan - due to retirement, job termination, or upon
termination of the plan. UNDER NEW LAW EFFECTIVE JAN. 1 1993, YOU ARE
NOW SUBJECT TO A 20% IRS WITHHOLDING TAX IF YOU CHOOSE TO HAVE THIS
DISTRIBUTION PAID TO YOU. You can, however, avoid this and other taxes
by making a direct rollover into an IRA. The monies will then
accumulate free of tax until withdrawl, according to the normal IRA
rules. As an alternative, you can choose to take receipt of your
distribution minus the 20% withholding tax, and roll the remaining 80%
into an IRA within 60 days after receipt - because the 20% is sent to
IRS, you have to make up the "missing" 20% out of your own pocket to
roll over if you do it after but within 60 days of the distribution.
you may get the 20% refund when you file your income tax next year.
And, if you are under 59.5 years old when you receive the
distribution, you may have to pay additional 10% penalty tax on any
amount that you do not roll over.

4. IRA Transfers

you can transfer your IRA from one trustee or custodian to another if
you are unhappy with the return you are getting. In the previous
messages, I have said that there are 4 place to invest an IRAl: bank
CD (less than 4% nowadays), insurance company (7%-8% return), mutual
funds (depending on fund performance), brokerage firm (depending on
where you invest).

- From Gray Zhu, Ph.D
_______________________________________________________________________
 ALL INVESTMENTS INVOLVE WITH RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1. what is ICnet:

ICnet (Investment Club on network) is a club organized as mailing list
discussing  investment issues, organized by Gray  Zhu.  Membership  is
free. Read the ANNOUNCE, WELCOME for more information.

2. ftp 

Past  messages sent out is available  for  anonymous ftp,  archived at
ifcss.org (thanks to ifcss.org, Yuan Jiang and Zhang Yun Fei):

ftp ifcss.org
     username: anonymous
     password: your-email-address
ftp> cd /org/icnet
ftp> mget *        (for everything)
ftp> quit

Files are named  by 9405a, 9405b, ..., etc. New files from date 940528
(May 28 1994) will be named by "yymmdd". VIP material is not available
for ftp.

3. Subscription/signoff/correction/contribution, send email to:

grayzhu@panix.com. You  must  read  the DISCLAIMER (see item 4), and I
assume you have read and  agree with  all the terms in the  DISCLAIMER
before become a Club member.

4. Disclaimers:

Material on ICnet is for general information only, and  made available
to  voluntary  subscribers  (subscription  is   free).   There  is  no
guarantee of accuracy in either text  or numbers, so  please read with
your own discretion.  Opinion expressed by any author is his own,  not
necessarily his  employer's.  Nobody on the ICnet related (Gray Zhu or
his employer,  or any other members, or  ifcss.org  which  is  the ftp
provider)  except   yourself   assumes  any  responsibility   for  any
consequences of using the material.

You are free to forward and copy the material  for private use. If you
do forward, it is mandatory to let it ALWAYS GO  WITH THIS DISCLAIMER.
Use of the material for commercial  purpose without written consent of
the author is prohibited.

Message sent  to grayzhu@panix.com will be screened. Gray Zhu reserves
the right to hold a message  which he thinks it is unsuitable on ICnet
without being posted.

Because  the law  (suitability and  to-know-the-customer requirements)
prohibits me to  make recommendations  of  a  specific stock or mutual
fund to general public (which ICnet members are), so I personally will
not answer  a question like "Should  I  buy XYZ fund now?" (except you
are a  VIP  member,  see  next  paragraph),  But  I can  forward other
members' opinion (not necessarily mine) sent to grayzhu@panix.com.

However, if you want specific recommendations from me, you may want to
become a VIP member by sending me your name, phone numbers (especially
daytime)  and  address, so that  I  can  contact you  or send  you our
recommendations  through  post office.  Even if you become a  VIP, you
are not obligated to buy anything or pay for anything unless you place
an order with me towards your own benefit.  This  is optional and 100%
voluntary. VIP material is not available for ftp.

Everything goes to: *************** grayzhu@panix.com *****************
_______________________________________________________________________
 ALL INVESTMENTS INVOLVE WITH RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From grayzhu@panix.com Sun Jun  5 10:47:56 1994
Return-Path: <grayzhu@panix.com>
Received: from panix.com by ifcss.org (4.1/IFCSS-Mailer)
	id AA13813; Sun, 5 Jun 94 10:47:55 CDT
Received: by panix.com id AA11268
  (5.65c/IDA-1.4.4 for jiang@ifcss.org); Sun, 5 Jun 1994 11:45:51 -0400
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
Message-Id: <199406051545.AA11268@panix.com>
Subject: IC940605: Another investment.. etc
To: jiang@ifcss.org
Date: Sun, 5 Jun 1994 11:45:51 -0400 (EDT)
Mime-Version: 1.0
Content-Type: text/plain; charset=US-ASCII
Content-Transfer-Encoding: 7bit
Content-Length: 9615      
Status: RO

==================    IC940605: Investment Club  ======================

1. Another investment - house .......................... Xiaobin Bob Ge
2. Security analysis (I): risk ......................... Gray Zhu
3. My way of picking stocks ............................ Gray Zhu
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)

1. Another investment - house

>From: xge@euridice.ess.ucla.edu (Xiaobin Bob Ge)

Hi! Gray,

Regarding retirement plan, it just turns out to me that another
investment is not bad at all after a little more than one year: A
residential rental house. The following is the figure: Purchase
$74,700	down $700 Loan VA 30 yr fixed 7% Total expense before tenant
moving in $4000 Annual appreciation rate everage >5% ; last year(most
of nation down) 11% (in Orlando FL) Monthly Cash flow now $9 (rent
increase ~3% every year) Current appraised at $90,000 ( one year after
purchase at marginaly below market price) I don't want to bother the
return rate because it is unreasonably high (way over 100%) If this is
a rare opportunity I won't even tell you. This opportunity
available(term and house) about 300-400 cases every 3 weeks in the far
away Southern California.  By the way, for those start paying tax, the
depraiciation rate is 1/27.5.  The interest things is 30 year down the
road when I am retired, I got a free house plus an about $1000 per
month pure income every month, with the initial investment only, does
this look like an IDA?  Back to Wall Street, what do you thing the
near future of Southeast Asia market vs Japan Market(sorry "think"
instead of "thing")?  Please don't feel offensive if you think this is
STOCK club only as your business outreach. I don't mind to keep this
under personal communication gear.

Best regards
Bob (Ge Xiaobin in UCLA)

--------------------------------------------------------
2. SECURITY ANALYSIS (I): RISK

                       I. Risk

Two basic issues of investing are RISK and RETURN. In order to find a
stock which has the desired risk and return, you have to do a two-step
analysis: FUNDAMENTAL and TECHNICAL.  Basically, fundamental tells
what to buy, technical tells when and at what price to buy. What I am
going to do is to introduce you the RISK factor today, and then
fundamental and technical analysis in the future (when I get time).

SYSTEMATIC RISK (MARKET RISK): 

It is caused by some factor that will have the similar effect on all
securities in the same manner. One example is interest rate, another
example is the U.S. government decides socialize the country.

UNSYSTEMATIC RISKS:

o BUSINESS RISK: is the uncertainty that the specific issuer whose
securities you have purchased will not have the business performance
you expected. A company's predicted earnings is $2.0, it come out to
be $1.5, the stock price will probably reach your expectation, not
because of the market, but because the business just didnt perform.
 
o CREDIT RISK: this is related to bond. does the company have the 
ability to pay back the debt?

o PURCHASING POWER or INFLATIONARY RISK: Investor's income or growth
does not keep pace with inflation. A real story: a Korea War veteran
bought AT&T 30 year two bonds ($1000/per bond) bearing rate of 2.875%
in 1955 when he could have bought a new Chevy coupe, and held till the
80's, inflation was in double digits (percetage), he was still paid
28.75/bond per year, and the two bonds worth less than $2000 in the
market (high interest rate, remember when interest rate goes up, bond
price goes down. but when the bonds get closer to maturity, the price
get closer to the face value), and of course, worth less than 1/5 of a
Chevy Coupe.

o INTEREST RATE RISK: described above.

o LIQUIDITY RISK: the risk the regular market doesnt exist. When you
  want to sell something, you cannot find somebody to buy, then you may 
  have to lower your sell price. So, stock volume is importance. when
  you invest, you should be studying total shares issued, the volume,
  insider holding (insiders cannot trade prequently), institutional 
  holding, ... etc.

      THE LESS ACTIVE THE MARKET IN A SECURITY, THE WIDER THE SPREAD
  	(spread: the difference between the bid and ask prices)

o RISK OF LEGISLATIVE CHANGES: an example is: new tax law. 

o CALL RISK: some bonds are callable. i.e. the issuer has the right to  
  buy back the bond from you at certain time and a fixed price, and you
  have the obligation to turn it in. But the time and price are written
  on the bond, and you should know that before you buy it.

o SELECTION RISK: you could make a wrong choice between two seemingly
  similar securities.

o TIMING RISK: when you are bullish, the market may be bearish.


--------------------------------------------------------------
3. My way of picking stocks:

a. check Wall Street research reports:

Many investment banking firms publish research reports, especially
when they are market makers (i.e. dealers, they have inventory of this
stock). Those reports contain most fundamental and technical data,
fundamental includes: line of business, news, competitions, future
prospects, balance sheet, income statement, earnings history and
predictions; technical data includes price history, moving averages,
volume history, momentum, P/E, etc. Some of the reports give ratings
(bug/sell/hold, risk high/medium/low).

o I have like the industry, which must be a growing industry.
o Check the ratings from several reports, if majority of them says 
  buy or outperform (10%-25% return per year), then I would buy.
o Check the future prospects, new products? patents? management changes?
  restructuring?
o Check the p/e ratio, if it is low in the industry, and fundamentally
  sound, this stock is probably undervalued.
o Check the average earnings prediction. if company ABC has earnings
  $2, and the stock price is $36, then current P/E is 18, and the averaged
  earnings prediction is $3.6, the lowest prediction is $3.0, I would 
  expect the price of this stock go to over 18x$3.0=$54 as long as the 
  18 P/E assumption is not odd.

b. Watch the news closely.

  News is the trigger of stock price. But sometimes if you have done
  good fundamental research, you knew something is coming up.

--------------------------------

- From Gray Zhu, Ph.D
_______________________________________________________________________
 ALL INVESTMENTS INVOLVE WITH RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1. what is ICnet:

ICnet (Investment Club on network) is a club organized as mailing list
discussing  investment issues, organized by Gray  Zhu.  Membership  is
free. Read the ANNOUNCE, WELCOME for more information.

2. ftp 

Past  messages sent out is available  for  anonymous ftp,  archived at
ifcss.org (thanks to ifcss.org, Yuan Jiang and Zhang Yun Fei):

ftp ifcss.org
     username: anonymous
     password: your-email-address
ftp> cd /org/icnet
ftp> mget *        (for everything)
ftp> quit

Files are named  by 9405a, 9405b, ..., etc. New files from date 940528
(May 28 1994) will be named by "yymmdd". VIP material is not available
for ftp.

3. Subscription/signoff/correction/contribution, send email to:

grayzhu@panix.com. You  must  read  the DISCLAIMER (see item 4), and I
assume you have read and  agree with  all the terms in the  DISCLAIMER
before become a Club member.

4. Disclaimers:

Material on ICnet is for general information only, and  made available
to  voluntary  subscribers  (subscription  is   free).   There  is  no
guarantee of accuracy in either text  or numbers, so  please read with
your own discretion.  Opinion expressed by any author is his own,  not
necessarily his  employer's.  Nobody on the ICnet related (Gray Zhu or
his employer,  or any other members, or  ifcss.org  which  is  the ftp
provider)  except   yourself   assumes  any  responsibility   for  any
consequences of using the material.

You are free to forward and copy the material  for private use. If you
do forward, it is mandatory to let it ALWAYS GO  WITH THIS DISCLAIMER.
Use of the material for commercial  purpose without written consent of
the author is prohibited.

Message sent  to grayzhu@panix.com will be screened. Gray Zhu reserves
the right to hold a message  which he thinks it is unsuitable on ICnet
without being posted.

Because  the law  (suitability and  to-know-the-customer requirements)
prohibits me to  make recommendations  of  a  specific stock or mutual
fund to general public (which ICnet members are), so I personally will
not answer  a question like "Should  I  buy XYZ fund now?" (except you
are a  VIP  member,  see  next  paragraph),  But  I can  forward other
members' opinion (not necessarily mine) sent to grayzhu@panix.com.

However, if you want specific recommendations from me, you may want to
become a VIP member by sending me your name, phone numbers (especially
daytime)  and  address, so that  I  can  contact you  or send  you our
recommendations  through  post office.  Even if you become a  VIP, you
are not obligated to buy anything or pay for anything unless you place
an order with me towards your own benefit.  This  is optional and 100%
voluntary. VIP material is not available for ftp.

Everything goes to: *************** grayzhu@panix.com *****************
_______________________________________________________________________
 ALL INVESTMENTS INVOLVE WITH RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From icnet-l@ifcss.org Sat Aug 27 22:32:43 1994
Return-Path: <icnet-l@ifcss.org>
Received: from  (localhost) by ifcss.org (4.1/IFCSS-Mailer)
	id AA00880; Sat, 27 Aug 94 22:32:05 CDT
Date: Sat, 27 Aug 94 22:32:05 CDT
Errors-To: grayzhu@panix.com
Message-Id: <199408280328.AA01665@panix.com>
Errors-To: grayzhu@panix.com
Reply-To: icnet-l@ifcss.org
Originator: icnet-l@ifcss.org
Sender: icnet-l@ifcss.org
Precedence: bulk
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
To: Multiple recipients of list <icnet-l@ifcss.org>
Subject: IC940827: Thoughts about Market - Jianping Zheng
X-Listprocessor-Version: 6.0c -- ListProcessor by Anastasios Kotsikonas
X-Comment:  Investment Club on network
X-Mailer: ELM [version 2.4 PL23]
Status: R

==================    IC940605: Investment Club  ======================

0. The market had another 51 points move on Friday.
1. Some Thoughts of the Market ......................... Jianping Zheng
2. Book, Interest rate and stock market ................ Gray Zhu
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)

-----------------------------------
1. Some Thoughts of the Market

>From Jianping.Zheng@comlab.oxford.ac.uk  Sat Aug 27 07:48:25 1994

The Bull is not Dead
~~~~~~~~~~~~~~~~~~~~

The 70 points rise of Dow gives everyone a relief: the Bull is not Dead!

I am strongly advocate the point of letting market tell where it is, rather
than been preoccupied to speculate where the market is. Therefore, though
I felt the market is coming back quietly early in the month (ref. IC940608),
I don't think it worths more than just a speculation.

At the time, things were still uncertain. The most obvious: people were 
still haggling whether the Fed should or should NOT raise the rate again. 
And perhaps more important, whether the market will react to such a move 
or non-move. 

However, the unexpected rate-hikes in Italy and Sweden did betray the market
psyche. Rather than seeing a great turbulance, many markets stabilised 
after the initial shock. What it told us? Well, the market is waiting 
for something: some GOOD news (or excuses) to muscle a rally. Seeing that,
the decision of riding over the storm would not be too difficult to make.

It is a bit funny to see how the coverage tried to relate the 50 points
rate-hike with the market rally, and particularly, how badly the non-rate
-hike (which would never happen afterwards) would damage. If we remember
the days market used every excuses to drop, we should not be difficult 
to see that the market will rise even without such a rate-hike. Poor
economists, they should really resort to psychology books rather than 
stick to their thick economic books.

Don't Forger: The Bull has been Wounded
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

It will be unwise to think that the market will rocket regardless of the 
recent deep scar. The Bull is already severely wounded. 

If the 70 points rise of Dow tells that the market is still a place to stay,
the afterwards 50 points rise should be an alarm. A too rapid rally would 
only bring, at the best, a subsequent prolonged period of consolidation.
I would rather see a few months digestion at the current level rather than
a sharp up-and-down, which will give us an ominous short-term double-top 
pattern and an extremely difficult time.

When over-pessimism turns to over-optimism, it is probably the time to make
an orderly retreat.

Summarise of my points: the trading window, which I stated in IC940608, will
close shortly. It is probably the time to be cautious and take some profit.
The market is still a place to stay, but it does need a very long period 
to consolidate, which is just the time to restructure your portfolio for
the serious rally that will occur no earlier than the end of this autumn.

=====================================================
2. Book, Interest rate and stock market

>From wud@engmail.ulinear.com Thu Aug 25 13:39:05 1994
>What tutorial book on stock market would you recommend to begin with?
>By the way, what's the effect of interest rate change on stock market?

Gray:

The first book I read was "Understanding Wall Street". I do not know
much about other books, but this one is enough to start with.

WHEN INTEREST GOES UP, BOND PRICE GOES DOWN, and normally the stock
market goes down too. To understand this, let us talk about T-bond
with PAR value $1000 and fixed 8% return (coupon yield), i.e. it pays
you $80 a year. In the market, the current yield, which is $80 divided
by current market price, should move in the same direction as the
interest rate. What could be changed is the denominator - current
market price, not the $80 in the numerator. 

Bonds are related to stocks in many ways such as convertable bonds,
when bonds go down, stocks go down too sometimes.  Also, when the
interest rate goes up, bank savings could be more attractive than the
stock market to some people. Those people may move their money from
stock market to savings, which creates a supply. Big supply (selling)
will make the market lower.

==========================================================================
                           Disclaimers:

 a) Material on ICnet  is for general information only, and made available
    to  voluntary  subscribers  (subscription  is  free).    There  is  no
    guarantee of  accuracy in either text or numbers, so please read  with
    your own discretion.  Opinion expressed by any author is  his own, not
    necessarily  his  employer's.  Nobody on  the icnet-l or related (Hong
    Guang, Gray Zhu or their employers, or any other members, or ifcss.org
    which is the  ftp provider) except yourself assumes any responsibility
    for any consequences of using the material.

 b) You are free to forward and copy the material  for private use. If you
    do forward, it is mandatory to let it ALWAYS GO  WITH DISCLAIMER.  Use 
    of the material for commercial  purpose without written consent of the 
    author is prohibited.

 c) Any past performance examples should  not be considered a guarantee of
    future   results.    Any  company mentioned   does    not constitute a
    recommendation by anybody.

==========================================================================
For specific recommendations and info on IC-VIP, contact grayzhu@panix.com 
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
                  ICnet - Investment Club on network
__________________________________________________________________________
  SUB/SIGNOFF to: LISTSERV@IFCSS.ORG, with mailbody as:
                  SUB ICNET-L Firstname Lastname or: SIGNOFF ICNET-L
  Post mail to:   ICNET-L@IFCSS.ORG
  Anonymous ftp:  at ifcss.org, in direcctory: /org/icnet
  Gopher:         /org/icnet on ifcss.org, /ifcss/org/icnet on cnd.org
  Managers:       Guang Hong, HONG@opus.mco.edu
                  Gray Zhu, grayzhu@panix.com (800)-289-2498
__________________________________________________________________________
     ALL INVESTMENTS INVOLVE RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From grayzhu@panix.com Tue Jun  7 23:10:28 1994
Return-Path: <grayzhu@panix.com>
Received: from panix.com by ifcss.org (4.1/IFCSS-Mailer)
	id AA18097; Tue, 7 Jun 94 23:10:26 CDT
Received: by panix.com id AA11649
  (5.65c/IDA-1.4.4 for jiang@ifcss.org); Wed, 8 Jun 1994 00:08:02 -0400
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
Message-Id: <199406080408.AA11649@panix.com>
Subject: IC940607: Stock Picking Thoughts - by Jianping Zheng
To: jiang@ifcss.org
Date: Wed, 8 Jun 1994 00:08:02 -0400 (EDT)
Mime-Version: 1.0
Content-Type: text/plain; charset=US-ASCII
Content-Transfer-Encoding: 7bit
Content-Length: 6002      
Status: R

==================    IC940607: Investment Club  ======================

Some Thoughts about Stock-picking and Investment
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>From: Jianping.Zheng@comlab.ox.ac.uk
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)


>From: Jianping.Zheng@comlab.ox.ac.uk

Some Thoughts about Stock-picking and Investment
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

In the last  two issues Gray talked  a bit  about stock-picking. The timing
of his talking may just be accurate as the markets seem to enter the period
when  only  good  stock-picker will win,  while poor  stock-picker may lose 
very heavily.

Here are a few points I know about this specific issue, and some points a
beginner investor must consider.

1. The first thing is not to lose money, rather than how much to win
--------------------------------------------------------------------

It is enticing to read all the statements like "in the long run, shares
offer far more decent return than any other investment". Although this has
been proved in the most general cases according to historical data, you
have to bear in mind that most advertisements are trying to exaggerate 
the return part while hide carefully the great potential risks. Chopping
history in a different way, you may well-underperform and even lose.

What is more, even if the stock market performs well, you may still lose
because your stock-picking method always leeds you to the doghouse (where
dogs --- bad stocks --- is in store).

The best investment is certainly to have a method which wins each time, 
unfortunately no such method exists and probably there will never be.
The more practical way is to reduce losses to minimum, which you may do.

One way to keep you from over-exposed is to set a limit loss price each
time you enter, and strictly followed the rule. Once you know that the
share (or the general market) behaves not as you expected, exit with a
small loss. You may win back the money with other successful investment 
later. 

This method has been successfully used by many great investors. They won
because they knew that they are humble compared with the market. They knew
they could be wrong, and when they were wrong, cut the loss before it was
too late, and ask why it was wrong afterwards.

Don't let your ego win. Stay in a loser may wipe you out. There are not less
examples that share prices halved. The extreme one went from $100 a share
to $1 a share, before the inside information says something wrong with the 
company.

2. Do you own home work
-------------------------------------------------------------------

Gray said a little about reading the analysts reports and find the shares
that are recommended by all of the reports. While this could be the first
step to do a rough selection, which saves your time, you have to work 
much harder afterwards. After all, it is your money and nobody will care
too much if you lose.

It is more important to understand why the reports recommend the share 
rather than simply they said it is good. If the report is not backed by 
concrete data, it worths absolutely nothing. You should also read the 
company's quarterly and annual reports, verify the data and read the details
about how these data are obtained. You may find why different people 
quote data in different ways and whether the reports are biased.

Also, different reports serve different customers. Some expect you to sit
in with a 5 to 10 years time horizon. If you can't wait that long, it's
not for you.

3. Is Market Efficient or Inefficient?
------------------------------------------------------------------

My understanding is that market is efficient, in the sense that all the 
known news and things quite certain to happen (together with their risk)
has been discounted in the share price. That is why "buy at rumor", because
the speculation may bring handsome return when the risk is removed; and
"sell in news", because the price has topped already.

When you know a share is to pay dividend, to split, or to have some big 
move, everybody else knows. The price has been discounted. Therefore never
buy shares just because these. Buy shares because they are fundamentally 
sound, and technically up (you may have your own method that works).

On the other hand, I will say market is inefficient. People view big 
pictures in different ways. They have great arguments about whether China
will be bigger or collapse, for example. And people interpret data in 
different ways. Once you find you own way that works for you, you'll 
consistently beat the market, as already demonstrated by many market 
wizards.


4. Some details: PE, etc.
-----------------------------------------------------------------------

How to look for good companies. Technical data are helpful. PE is widely
used as one of the indicators, but it may just mislead you. There is 
always a reason behind the company with low PE, sometimes a very bad
one (remember market is efficient). Never judge a company undervalued just
because of its low PE.

Growth rate is another indicator. Unfortunately you can only estimate how
much it would be and the risk is that it may never be achieved. PE and
growth rate in combination may give you a hint of whether the company is 
overvalued. If you found a company with high PE and low growth rate, walk 
away quickly no matter how many reports and experts say it is hot.

Some of the other fundamental indicators can be read from a company's
balance sheet and cashflow statement. Gray may talk about these later so I
try to cut it here.

5. Find you own method
-------------------------------------------------------------------

There is no general method that fits everyone. You should find yours.
Though, you may find lots of great book to read. If you feel these are
boring, safely, put your money in the banks.

Happy investing, and good luck.

Jianping from Oxford

From grayzhu@panix.com Mon Jun  6 21:53:04 1994
Return-Path: <grayzhu@panix.com>
Received: from panix.com by ifcss.org (4.1/IFCSS-Mailer)
	id AA27119; Mon, 6 Jun 94 21:53:02 CDT
Received: by panix.com id AA12640
  (5.65c/IDA-1.4.4 for jiang@ifcss.org); Mon, 6 Jun 1994 22:50:53 -0400
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
Message-Id: <199406070250.AA12640@panix.com>
Subject: IC940606: BANK ON IT
To: jiang@ifcss.org
Date: Mon, 6 Jun 1994 22:50:53 -0400 (EDT)
Mime-Version: 1.0
Content-Type: text/plain; charset=US-ASCII
Content-Transfer-Encoding: 7bit
Content-Length: 9545      
Status: R

==================    IC940608: Investment Club  ======================

1. how can an investor take advantage of a stock split or buy back?
2. BANK ON IT - Bank stocks are favored by Peter Lynch
3. Introducing India Market
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)

1. how can an investor take advantage of a stock split or buy back?
>From: jiang@ifcss.org (Yuan Jiang)

>Question:
>In what situations does a company buys back stocks or split stocks.
>How do they affect the going of the companies stocks.  How can an
>investor (buyer or seller) take advantage of such occassion?

Gray: 

company buys back stocks to raise the earnings per share (may not
happen immediately), when the earnings is up, the stock price normally
goes up. But this is a long term effect, and the company normally buys
back over a period of time.  Stock split makes the price lower so that
a investor who has $3500, cannot buy 100 shares of stock priced at $70
(in a cash account, you may do it in a margin account), can buy 100
shares after a 2 for 1 split.  Note that you pay a slightly higher
price when you buy less than 100 shares of stocks.  When there are
more buyer, the price could go higher, this is the law of SUPPLY and
DEMAND. Also the volume would go up making the stock more liquid. But
I do not think those effects are significant.

--------------------------------------------------------------
2. BANK ON IT - Bank stocks are favored by Peter Lynch

(In the interest rising environment, banks actually made a little more
money, and their stock has appreciated as a result. To catch you
attention, I copied the first paragraph of an article by Peter Lynch
to introduce you to the area - Gray), here we go:


WORTH, april 1994

  the author, perhaps the most famous stock picker ever, tells how to
  profit from the best opportunities he has witnessed during  a 30-year
  career of beating Wall Street.

             BANK ON IT  -by Peter Lynch

My first column for worth appreared in the august/september 1992
issue. the subject was the great investment opportunities in the
scores of mutual savings banks and thrifts (a.k.a savings and loans)
that were going public. Perhaps you know what's happened since then:
The share prices of many of these new public companies have doubled,
tripled, quadrupled in the period following the initial offerings.  In
my 30 years of looking at stocks, I've rarely seen a group do as well
as this one has.

During good times for packaged foods, insurance, or retailers, not
every food packager, insurance company, or retailer is going to share
in the prosperity. An investor may find the right sector but choose
the wrong stock and lose money. But among the mutual savings banks,
it's hard to find a wrong stock. Of the 13 that began tradeing in
1991, the worst performance is up 89%. (for more on that year's
conversions, see "Class of 1991.") Out of 46 new issues in 1992,
there's only one loser to date. And of the 57 initial offerings in
1993, there are no losers; 30 have gained more than 30%.

I'm telling this old story to exercise my hindsight - who cares about
the wonderful investments we all might have made in years past? what
causes me revisit the topic is the 1231 mutual savings banks that
havent yet converted to public ownership. On top of those, a sizable
number of prior converts are trading in the market at bargain prices.

... (omitted)

THE TRAGEDY is that millions of people have turned down the investment
opportunity of a lifetime.

... (omitted)

WHEN YOU PAY the same price as corporate insiders, you're in with the
right crowd.

------------------------------------------------------------------
3. Introducing India Market

Gray: India is the world's second most populous country. Following
independence in 1947, India pursued a policy based on strong
centralized panning, regulation and control of private enterprise,
state ownership, trade protectioism and strict limits on the
penetration of foreign capital and technoloty. In response to a crisis
in 1991 in its balance of payments, which threatened to destablize its
economy, the Indian Government initiated a program of structural
reform aimed at stabilizing the economy and promoting reliance on
market mechanisms. Asignificant component of the porgram is the
pormotion of foreign technology transfers and foreign investments in
key areas of the economy as well as the further development of the
private sector. - Thanks to my friend Ramam Mohotra for providing the
information.

The following are highlights in an FORBES article "Now we are out own
masters"

FORBES, May 23 1994

A half-century after India won its independence from Britain, 900
million Indians are finally winning their economic liberation from the
oppressive bureaucracy the Brits left behind -with the result that
India now has the look and feel of the next China and Latin America.

               "NOW WE ARE OUT OWN MASTERS"

(the following are highlights only)

o So far in 1994 India's stock market is up by 12% in dollar terms,
  tops among Asia's developing countries.

o Some 40 million Indians - the "super-haves," as the local media call
  them - live in households with annual incomes of over 900,000 rupees, 
  or $30,000; in purchaseing -power terms, $600,000 in the US.

o The 150 million people who live in households with incomes of 30,000
  rupees ($1000) and up, in local purchasing power, $1000 is the
  equivalent of around $20,000 in the US.
  
o Large foreign companies are also opening their wallets and endorsing
  India's reforms. In the past two years $5 billion worth of foreign
  investment projects have been approved by the Indian government;
  according to a recent report by Salomon Brothers, the Indian
  government expects another $10 billion to arrive by the end of next
  year.

o India has strength that China lacks, Unlike China, India operates
  with a rule of law. The law and the respect for individual rights and
  freedoms makes India much more stable than China.

o More engineers graduate each year in India than in China and South
  Korea combined.

o Exports last year rose over 20%, to $22 billion, and are on course
  for a further 20% jump.

- From Gray Zhu, Ph.D
_______________________________________________________________________
 ALL INVESTMENTS INVOLVE WITH RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1. what is ICnet:

ICnet (Investment Club on network) is a club organized as mailing list
discussing  investment issues, organized by Gray  Zhu.  Membership  is
free. Read the ANNOUNCE, WELCOME for more information.

2. ftp 

Past  messages sent out is available  for  anonymous ftp,  archived at
ifcss.org (thanks to ifcss.org, Yuan Jiang and Zhang Yun Fei):

ftp ifcss.org
     username: anonymous
     password: your-email-address
ftp> cd /org/icnet
ftp> mget *        (for everything)
ftp> quit

Files are named  by 9405a, 9405b, ..., etc. New files from date 940528
(May 28 1994) will be named by "yymmdd". VIP material is not available
for ftp.

3. Subscription/signoff/correction/contribution, send email to:

grayzhu@panix.com. You  must  read  the DISCLAIMER (see item 4), and I
assume you have read and  agree with  all the terms in the  DISCLAIMER
before become a Club member.

4. Disclaimers:

Material on ICnet is for general information only, and  made available
to  voluntary  subscribers  (subscription  is   free).   There  is  no
guarantee of accuracy in either text  or numbers, so  please read with
your own discretion.  Opinion expressed by any author is his own,  not
necessarily his  employer's.  Nobody on the ICnet related (Gray Zhu or
his employer,  or any other members, or  ifcss.org  which  is  the ftp
provider)  except   yourself   assumes  any  responsibility   for  any
consequences of using the material.

You are free to forward and copy the material  for private use. If you
do forward, it is mandatory to let it ALWAYS GO  WITH THIS DISCLAIMER.
Use of the material for commercial  purpose without written consent of
the author is prohibited.

Message sent  to grayzhu@panix.com will be screened. Gray Zhu reserves
the right to hold a message  which he thinks it is unsuitable on ICnet
without being posted.

Because  the law  (suitability and  to-know-the-customer requirements)
prohibits me to  make recommendations  of  a  specific stock or mutual
fund to general public (which ICnet members are), so I personally will
not answer  a question like "Should  I  buy XYZ fund now?" (except you
are a  VIP  member,  see  next  paragraph),  But  I can  forward other
members' opinion (not necessarily mine) sent to grayzhu@panix.com.

However, if you want specific recommendations from me, you may want to
become a VIP member by sending me your name, phone numbers (especially
daytime)  and  address, so that  I  can  contact you  or send  you our
recommendations  through  post office.  Even if you become a  VIP, you
are not obligated to buy anything or pay for anything unless you place
an order with me towards your own benefit.  This  is optional and 100%
voluntary. VIP material is not available for ftp.

Everything goes to: *************** grayzhu@panix.com *****************
_______________________________________________________________________
 ALL INVESTMENTS INVOLVE WITH RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From grayzhu@panix.com Thu Jun  9 22:40:05 1994
Return-Path: <grayzhu@panix.com>
Received: from panix.com by ifcss.org (4.1/IFCSS-Mailer)
	id AA24620; Thu, 9 Jun 94 22:40:02 CDT
Received: by panix.com id AA21108
  (5.65c/IDA-1.4.4 for jiang@ifcss.org); Thu, 9 Jun 1994 23:37:54 -0400
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
Message-Id: <199406100337.AA21108@panix.com>
Subject: IC940609: India: way to go ... etc
To: jiang@ifcss.org
Date: Thu, 9 Jun 1994 23:37:53 -0400 (EDT)
Mime-Version: 1.0
Content-Type: text/plain; charset=US-ASCII
Content-Transfer-Encoding: 7bit
Content-Length: 9843      
Status: RO

***********************************************************************
panix.com does not allow me do massive mailing (to over 400 members).
no matter it is moot or not, I have no time to argue with or go to the
court with them. So we are in danger of discontinuation or disruption,
I am trying to find a new place for it.  We hope to get the support
from ifcss.org, otherwise this may be one of the last messages, let me
know if someone can help also. Last a few times, I sent duplicated
e-mails to some people on the list because of machine memory fault or
cannot fork problems (over number of processes limit), I had to redo
it after some had been sent, thank for your understanding and
corporation. -Gray
***********************************************************************
==================    IC940609: Investment Club  ======================

1. Could you name a few india funds ? .................... Gray Zhu
2. Another view about Peter Lynch's WORTH article ........ Shiwei Xu 
3. Would you suggest some reading for beginners? ......... Gray Zhu
4. India - a long way to go .............................. Daniel X. Wu
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)

--------------------------------------------------
1. Could you name a few India Funds?

>From: jiang@ifcss.org (Yuan Jiang) name a few india fund

Indeed, I think India was a sort of socialist country until recent.
That's why there was democracy but no money.  Its future should be
very bright.  Can you name several mutual funds which invest in
India?  I would imagin that it's better to rely on mutual funds
to invest abroad becayse they have the hard to get information.
Yuan

Gray: (not recommending) From the same FORBE article:

Open-end:

Greater India Funds (Eaton Vance)

Closed-end funds:

India Growth Fund  (?)
India Fund Inc. (Oppenheimer & Co.'s)
India Fund (Jardine Fleming)
India investment (Morgan Stanley)

note that buying closed-end fund is like buying a stock, you pay
commission rather than mutual fund sale charge. A closed-end mutual
fund is just like another company. The difference between AT&T and a
closed-end fund is that AT&T's business is telecommunication, the
fund's business is buying and selling stocks.
 
---------------------------------------------------
2. Another view about Peter Lynch's WORTH article

>From: Shiwei Xu <sxu@umdnj.edu>

Hi, Gray:

Regarding the Peter Lynch's article on WORTH, I would like to direct
your attention to the story in June 4 issue of New York Times on the
same topic if you are not aware of it.  From my memory, the essence 
of the piece was that government regulatory agencies of the security 
business deemed it unethical for the insiders of mutual savings banks
(officers, directors, etc.) reaping huge profits when they converted
these savings & loans organizations into public companies.  They in-
tentionally valued these banks below their real worth before public
offering, thus the stocks soared shortly after IPO.  The market value
of the options and warrants insiders allocated to themselves went up
substantially.  In light of this situation, government agencies intend
to put regulatory pressures on the waves of conversions of mutual 
saving banks into public companies.  Besides the limitations put on
the insiders of mutual banks, the tetative measures on the investors' 
side include a restriction of deposits in mutual banks within 100 miles
of residency.  So it looks like the opportunities here are not going 
to be as sizzling as outlined in the WORTH's article with the water-
ing down from government regulations.

Again, the above info is purely from my memory with the possibility 
of incorrect interpretation of the origial article.  All standard
disclaimers apply.         

-- 
SHIWEI XU
sxu@umdnj.edu

>From: Yuhui Ren <yren@which.csl.uiuc.edu>

Hi, I am very interested in becoming a member of your club. Can you
suggest anything to read in order to get some basic idea of the
investment opportunity?  Thank you.

Gray: read a book like "understanding Wall Street", and read a magzine
like MONEY regularly.  And those FAQ's suggested in the WELCOME
message.

-------------------------------------------------------------
4. India - a long way to go

>From: "Daniel X. Wu" <dwu@cs.umb.edu>

Gray:

Your June 6 column "Introducing India Market" painted India as the next
nirvana for potential investors. Unfortunately, India still has a long
to get there. In terms of long term, high yield returns, China is still
the best bet. 

While your friend provided you with all the eulogies, the Wall Street
Journal, on the same day, had a report from New Delhi on India's
market, with a different tone. I thought you would be interested, I
enclose it here.

Sign me:

India-is-no-China

----------------------
India's Market Reform Requires Perspective
THE WALL STREET JOURNAL
Monday, June 6, 1994

NEW DELHI -- After all of the hoopla about India's flowering capitalist
economy - a nation of 890 million casting socialism aside the country's
economic-growth numbers for last year arrived with a seeming whimper: a
3.8% expansion. The forecast for this year? About 5% growth, not a lot
more than forecasts for the mature U.S. economy, and barely a third of
what China achieved last year.

There is a message in these figures for companies planning to do
business in India, and for individual investors hoping to cash in on
its burgeoning equity markets: All of those declarations about India's
being the next China, and about its vast market of middle-class
consumers hungry for Chevys and Cokes, could get you in trouble if you
don't keep them in perspective.

India is a place of tremendous promise; many companies hoping to be
global players will clearly want to find a niche here. But doing
business in India's commercial thicket, and investing in its markets,
requires a patient hand - and a view to the long, long term.

Without doubt, India has made great strides since introducing reforms
in 1991. It has slashed tariffs to a maximum of 65% from 400%. It has
made the rupee convertible for trade, welcomed foreign competition and
done away with onerous licensing. Exports were up 20% last year, and
foreign-investment inflows, including stock purchases, hit a record
$4.7 billion. In 1993, U.S. firms committed more money $1.1 billion,
than they did in the previous 47 years.

No wonder global-finance officials have widely praised India for a
smooth, albeit partial, transition from socialism. That 3.8% growth
rate looks pretty good after just three years- China, after all, has
been at it for 16, and has had lots of help from financiers in Hong
Kong and Taiwan.

Still, investors planning to plunge into India should remember that the
nation has all of the usual emerging market problems, such as
double-digit inflation and inadequate infrastructure, plus some:

-That middle-class market, variously estimated at as many as 250
million consumers, isn't quite that large when measured by Western
standards. Though purchasing power is different in India, if the Indian
middle-class is defined as those owning a refrigerator, it is only
about 30 million people; a television set, about 100 million to 125
million. A total of 200,000 cars were sold in the country last year.
Consumption is growing rapidly; the trick is to price a product
properly. This, after all, is a developing nation where 350 million
people are said to be "food insecure."

--The wild stock market lost half its capitalization in a
scandal-induced crash in 1992, and still hasn't fully recovered. The
antiquated Bombay Stock Exchange operates by open outcry, and can
function only two hours a day, producing four hours of paperwork for
each hour of trading. And what about insider trading? "We are babies in
the field of regulation," confesses one Indian securities regulator.

-Shifting political sands could hinder reform. Many government leaders
today were advocating socialism just a few years ago. While virtually
all politicians call the reform effort irreversible, the program could
stall if the leadership fails to win a majority in national elections
in 1996. And don't discount old socialist sentiments: "Just because
Karl Marx has been proven wrong," says one opposition leader, lecturing
some visiting U.S. investors, "doesn't mean that Milton Friedman has
been proven right." What's more, religious, ethnic and other political
passions flare easily. The destruction of a Muslim mosque by Hindu
nationalists in 1992, and bombings in Bombay in 1993, dealt the economy
a setback. Nationalism, whipped up by local politicians helped block a
Cargill Inc. unit from building a salt plant in Gujarat; one recent
survey found that roughly half of Indians still want foreign investment
restricted.

-Bureaucracy and rigid labor laws remain a drag on business. So too
corruption. One foreign oil-company executive here says he has even had
to pay off the phone repairman. "I complained to his company, but they
just laughed. The police said they'd arrest him--but only for a fee."
The legal system is clogged with cases, many dating from the 1970s. And
it is no surprise that budget revenue fell short last year: Only 1% of
the nation paid taxes.

--The pace of change may slow, because a next step involves truly
opening state-run sectors such as telecommunications (470,000 workers)
and banking (700,000) to foreign competition, which would probably mean
slashing payrolls. That is something the government, fearing social
instability, is loath to do.

So, if you are planning a move into the Indian market, do so with both
eyes open. The nation's ambitious economic-reform effort offers a great
deal of opportunity - for those investors prepared for the bumps along
the way.

--JOHN BUSSEY

From icnet-l@ifcss.org Sat Jun 18 22:05:47 1994
Return-Path: <icnet-l@ifcss.org>
Received: from  (localhost) by ifcss.org (4.1/IFCSS-Mailer)
	id AA17244; Sat, 18 Jun 94 22:03:29 CDT
Date: Sat, 18 Jun 94 22:03:29 CDT
Errors-To: grayzhu@panix.com
Message-Id: <199406190301.AA10990@panix.com>
Errors-To: grayzhu@panix.com
Reply-To: icnet-l@ifcss.org
Originator: icnet-l@ifcss.org
Sender: icnet-l@ifcss.org
Precedence: bulk
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
To: Multiple recipients of list <icnet-l@ifcss.org>
Subject: ATTN: YOU MUST READ THIS
X-Listprocessor-Version: 6.0c -- ListProcessor by Anastasios Kotsikonas
X-Comment:  Investment Club on network
Status: R

==================    IC940618: Investment Club  ======================

It is so damn hot in some area, isn't it?  but ...

                YOU MUST READ - if you don't, you are lost :-)
                ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

0. New home and management for ICnet ................... Management      
=======================================================================
                     (by Guang Hong and Gray Zhu)
 
ICnet now has been converted into a list server list, thanks to 
csc@ifcss.org, especially Yun Fei and Jiang Yuan. Also thanks to
Mr. Guang Hong who volunteered to help manage this list:

	a) management is now 
		Guang Hong (primarily maintainence, HONG@opus.mco.edu)
		Gray Zhu (primarily moderating, grayzhu@panix.com)
                           
	b) Subscription/Sign off etc. :
           send message to: 
                           LISTSERV@IFCSS.ORG 
           and in the first line of the e-mail (not subject):
                           SUB ICNET-L FIRSTNAME LASTNAME
                       or:
                           SIGNOFF ICNET-L  
                       or: 
                           HELP

	=> all currently members have been subscribed automatically.
           i.e. you do not need to subscribe by yourself. you received
           this message is the confirmation of your subscription.

        c) Everything else such as post/questions/contributions etc., 
           except subscription/signoff (above) should go to:
                           ICNET-L@IFCSS.ORG
           **************************************************************** 
           currently, the messages are unmoderated - we don't know how yet.
           so, if you send anything to icnet-l@ifcss.org, everyone gets it.
                    please do not send anything like "test".
           ****************************************************************
        => this list will be moderated (screened) by management as have 
           been doing in the past. most questions will be forwarded as is, 
           for answers.

        d) IC-VIP group remains to be Gray Zhu's private communication.
           for VIP affairs send messages to the old address:
                           grayzhu@panix.com
           
        e) ftp past messages: before you ask a question, make sure it was
 	   not covered previously, read the previous messages may be 
           beneficial to you. here is how:

           ftp ifcss.org
               username: anonymous
               password: your-email-address
               ftp> cd /org/icnet      (lower case please)     
               ftp> ls                 (see what files are there)
               ftp> get filename
               ftp> get another_file
               ftp> get one_more
               ftp> binary
               ftp> get up-to-940528.zip 
               ftp> quit
               (there are commands like "help", "?", you can try)

           files are named by "YYMMDD" (year, month, date).  You can get
           everything (which you should get) up to 940528 by getting one file
           up-to-940528.zip (type "binary" before "get"), then "unzip" 
           (maybe "pkunzip", "gunzip") on your local computer.

           VIP material is not available for ftp.

        f) Because we are new to listserv list management, there may be
           mistakes or confusions, causing inconvenience to you. Your
           understanding and support is appreciated.          
 
=========================================================================
By now, you should know where you should send your next message
to, and how to SIGNOFF, if you don't, you'd better re-read.


From icnet-l@ifcss.org Sun Jun 19 00:15:19 1994
Return-Path: <icnet-l@ifcss.org>
Received: from  (localhost) by ifcss.org (4.1/IFCSS-Mailer)
	id AA21950; Sun, 19 Jun 94 00:13:48 CDT
Date: Sun, 19 Jun 94 00:13:48 CDT
Errors-To: grayzhu@panix.com
Message-Id: <199406190511.AA22560@panix.com>
Errors-To: grayzhu@panix.com
Reply-To: icnet-l@ifcss.org
Originator: icnet-l@ifcss.org
Sender: icnet-l@ifcss.org
Precedence: bulk
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
To: Multiple recipients of list <icnet-l@ifcss.org>
Subject: IC940619: Beta, Annuity
X-Listprocessor-Version: 6.0c -- ListProcessor by Anastasios Kotsikonas
X-Comment:  Investment Club on network
Status: R

==================    IC940619: Investment Club  ======================

1. Beta ................................................ Gray Zhu
2. Annuity (long, but you should know) ................. Gray Zhu
_______________________________________________________________________

1. From: nlu@bcm.tmc.edu (Naifang "Helen" Lu)

>What does Beta mean?  I come across the term "beta" when I read 
>the stock in the newspaper?  What does it mean?   Some figure
>shows 0.21, some stock figure shows 1.05.  How do we read it?

Gray: 

MorningStar definition - Beta: The market risk of a stock, fund, or
bond. by definition, the beta of the market is 1.00. Accordingly, a
stock with a 1.10 beta is expected to perform 10% better than the
market in up markets and 10% worse in down markets. The "market" for
equity is based on the performance of the S&P 500 Stock Index; for
fixed-income bonds, the "market" is based on the performance of the
Shearson Lehman Government/Corporate Bond Index.

Beta is a measurement of volatility, so it is also a risk measurement.
When the beta is less than 1.00, the stock has less volatility than
average, and vice versa.

2. From: nlu@bcm.tmc.edu (Naifang "Helen" Lu)

>I read some articles in recent US News and World Report.  One article
>on annuity interests me a lot.  Returen for selected annunity is high.
>I wonder how big risks are involvement in such investment.

Gray:

Annuities are contracts purchased by an individual in which an
insurance company pays out monthly payments to the individual
beginning on the agreed upon date and guarantees the individual that
the payments will continue no matter how long he lives. The contracts
guarantee payments for life!

In contract to life insurance which protects against untimely death,
annuities fill the need to protect against living too long.

How does annuity work? let's assume someone has been putting money to
his annuity account (think of something like an IRA). He has $140,000
in that account (SEPARARE ACCOUNT) when he is 65 year old and wants to
start getting payment from the insurance company. he would probably
work out with the insurance a plan somewhat like $10,000+interests per
year for the rest of his life. For a male at age 65, the average life
span is 79 years - insurance company assumes he has more or less 14
years left. Now, if this guy lives to 100, he wins, because he lived
longer than his financial sources could support him; if this guy dies
next year, he or his survivors will not get the rest of the payment
(there are all kinds of plans, his survivors may get it, but this is
telling the basics, assuming "straight life annuity").

An annuity contract enables an investor to give money to an insurance
compnay and have the insurance company put that money into one of its
investment portfolios (mutual funds - most likely).

FIXED ANNUITY: the insurance company guarantees the investor that it
will pay him a specified pre-determined amount of monthly payout
beginning on an agreed upon date in the future, that contract is known
as a fixed annuity.

VARIABLE ANNUITY: if the investor chooses the contract in which his
money will grow at a rate based upon the performance of a specified
portfolio of the insurance company and there is no guaranteed
per-determined amount of monthly payout, but rather a payout which
varies depending on the portfolio's performance, this contract is
known as variable annuity.

Fixed annuity is kind of like a CD, so it is NOT SECURITY; Variable
annuity is like a mutual fund.  as a matter of fact, variable
annuities are registered as open-end investment company (commonly
refers to mutual fund), so it is SECURITY.

annuity is a combination of insurance and investment.  Fixed annuity
faces purchasing power risk (inflation); while as mutual funds,
variable annuity risk depends on the portfolio.
==========================================================================

                           Disclaimers:

 a) Material on ICnet  is for general information only, and made available
    to  voluntary  subscribers  (subscription  is  free).    There  is  no
    guarantee of  accuracy in either text or numbers, so please read  with
    your own discretion.  Opinion expressed by any author is  his own, not
    necessarily  his  employer's.  Nobody on  the icnet-l or related (Hong
    Guang, Gray Zhu or their employers, or any other members, or ifcss.org
    which is the  ftp provider) except yourself assumes any responsibility
    for any consequences of using the material.

 b) You are free to forward and copy the material  for private use. If you
    do forward, it is mandatory to let it ALWAYS GO  WITH DISCLAIMER.  Use 
    of the material for commercial  purpose without written consent of the 
    author is prohibited.

==========================================================================
               ICnet - Investment Club on network
__________________________________________________________________________
  SUB/SIGNOFF mail to: LISTSERV@IFCSS.ORG, with mailbody as: 
                SUB ICNET-L Firstname Lastname
  or:
                SIGNOFF ICNET-L   
  Post mail to: 
                ICNET-L@IFCSS.ORG                             
  Anonymous ftp at ifcss.org, in direcctory: /org/icnet

  Managers:     Guang Hong, HONG@opus.mco.edu
                Gray Zhu, grayzhu@panix.com (800)-289-2498
__________________________________________________________________________
  ALL INVESTMENTS INVOLVE RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From icnet-l@ifcss.org Tue Jun 21 22:17:32 1994
Return-Path: <icnet-l@ifcss.org>
Received: from  (localhost) by ifcss.org (4.1/IFCSS-Mailer)
	id AA03642; Tue, 21 Jun 94 22:14:55 CDT
Date: Tue, 21 Jun 94 22:14:55 CDT
Errors-To: grayzhu@panix.com
Message-Id: <199406220312.AA27306@panix.com>
Errors-To: grayzhu@panix.com
Reply-To: icnet-l@ifcss.org
Originator: icnet-l@ifcss.org
Sender: icnet-l@ifcss.org
Precedence: bulk
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
To: Multiple recipients of list <icnet-l@ifcss.org>
Subject: The Market Is Down, Sell off?
X-Listprocessor-Version: 6.0c -- ListProcessor by Anastasios Kotsikonas
X-Comment:  Investment Club on network
Status: R

The Market Has Been Down In The Past A Few Days:

==================    IC940621: Investment Club  ======================

1. Why the market is down? .............................. Gray Zhu
2. Should I sell my stocks/funds? ....................... Gray Zhu
3. Buy more ............................................. Gray Zhu
4. Correction: Gopher sites ............................. Jiang Yuan
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)

1. Why the market is down?
 	
the market down is due to the fear of inflation, and it has been down
all over the world. The logic is when the inflation comes, there are
more dollars around, that means the dollar is weak. this year, the
dollar is down 10% vs Japan Yan, down 8% vs German Mark.

Foreigner tend to withdraw their money from the US stock market,
because they think the dollar is not worth much even if their US
stocks make money.  Sell-off of US securities causes the stock market
to drop.

the US govenment is going to take action to defend the dollar soon or
later.

How to defend the dollar: a) Increase the interest rate, which makes
dollar not that easily available b) Central Bank buy dollars. How:
sell gold (am i right?).  c) Foreign exchange rate is self-adjusting.
when dollar is weak, it makes US export easier, because of relatively
lower cost vs Yan and Mark. When exports gain ground, the dollar
becomes stronger.

2. Should I sell my stocks/funds?

the market went down basically in 6 (unconsecutive) days this year, it
goes up in a similar also. Remember I had posted a stats, which says
in the ten years from 1980-1989, the S&P market average gained about
17% per year, if you missed the best 10 days, the average annual
return is about 12%, if you missed the best 40 days the return is down
to 3%.

you can never predict the market tomorrow, the best strategy to invest
is "STAY IN THE MARKET", not "TIMING THE MARKET".

the Fidelity Magellan Fund is the largest fund in the US, with the
great Peter Lynch as manager, one fact about this fund is that 60% of
the investor invested in this fund lost money, because they could not
swallow market down-turns, they "BUY HIGH, SELL LOW" - worst move when
investing. If you believe the fundalmentals of a stock or fund, you
should stay.

IF YOU CANNOT STOMACH A FEW DAYS OF MARKET DOWNTURN, YOU SHOULD NEVER
CONSIDER YOURSELF AN INVESTOR, OR YOU WILL NEVER BE A SUCCESSFUL
INVESTOR. BECAUSE THE MARKET IS UP AND DOWN ALL THE TIME, EVERY SINGLE
DAY.

Some investors simply stall their investment decision, waiting for
something to happen: for the market to rise, for the market to settle.
when you saw it happens, it has happened. Unfortunately, there are
only a few best market days.

3. Buy more 

The US economy is in recovery, industry productions are growing,
inflation is not really a threat at least currently. Inflation is
caused by low production and high salary. The US industry has become
more diversified globally, it is very unlikely there is going to be a
market crash.

Because the market is down, most stocks are down, but remember the
dollar is going to come back, the companies earnings are becoming
stronger. Some stocks are more than 10% down, even if the companies
earnings and growth no change, only the dollar is back, you can gain
10%. So, it is a good time to BUY, and BUY MORE if you have it, if the
market is going further down, BUY MUCH MORE providing you trust the
fundalmentals of the company or a fund. this is so called DOLLAR COST
AVERAGING, and BUY LOW, SELL HIGH.


4. From: jiang@ifcss.org

You may gopher ifcss.org or cnd.org for previous issues of ICnet.
It's /org/icnet on ifcss.org.  cnd.org has a directory that mirrors
the content of ifcss.org, and is /ifcss/org/icnet.

==========================================================================
    Any VIP related message should be addressed to: grayzhu@panix.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
                  ICnet - Investment Club on network
__________________________________________________________________________
  SUB/SIGNOFF to: LISTSERV@IFCSS.ORG, with mailbody as:
                  SUB ICNET-L Firstname Lastname or: SIGNOFF ICNET-L
  Post mail to:   ICNET-L@IFCSS.ORG
  Anonymous ftp:  at ifcss.org, in direcctory: /org/icnet
  Gopher:         /org/icnet on ifcss.org, /ifcss/org/icnet on cnd.org
  Managers:       Guang Hong, HONG@opus.mco.edu
                  Gray Zhu, grayzhu@panix.com (800)-289-2498
__________________________________________________________________________
     ALL INVESTMENTS INVOLVE RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From icnet-l@ifcss.org Sat Jun 25 21:37:56 1994
Return-Path: <icnet-l@ifcss.org>
Received: from  (localhost) by ifcss.org (4.1/IFCSS-Mailer)
	id AA08557; Sat, 25 Jun 94 21:33:45 CDT
Date: Sat, 25 Jun 94 21:33:45 CDT
Errors-To: grayzhu@panix.com
Message-Id: <199406260230.AA11367@panix.com>
Errors-To: grayzhu@panix.com
Reply-To: icnet-l@ifcss.org
Originator: icnet-l@ifcss.org
Sender: icnet-l@ifcss.org
Precedence: bulk
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
To: Multiple recipients of list <icnet-l@ifcss.org>
Subject: The 5 China stocks currently trading on NYSE
X-Listprocessor-Version: 6.0c -- ListProcessor by Anastasios Kotsikonas
X-Comment:  Investment Club on network
Status: RO

==================    IC940625: Investment Club  ======================

The 5 China stocks currently trading on NYSE ................ Gray Zhu
Security analysis (brief) (II)  ............................. Gray Zhu
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)


           The 5 China stocks currently trading on NYSE
           ============================================
              (information only, no recommendation)

1. Company: BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LTD (Ticker: CBA)
    (no information)

2. China Fund, Inc. (The) (Ticker: CHN)

    Company is a non-diversified, closed-end investment company whose
    investment objective is long-term capital appreciation which it seeks
    to achieve by investing primarily in equity securities of companies
    for which the principal securities trading market is in the People's
    Republic of China. Co. intends to invest substantially all, but not
    less than 65% of its assets in equity securities of China companies.
    Co. intends to qualify as an investment company under the Internal
    Revenue Code.

3. EK CHOR CHINA MOTORCYCLE (Ticker: EKC)

    Ek Chor China Motorcycle (ECCM) hopes to sell 4.4 mil shares in an
    initial public offering.  The company will use 3/4 of the proceeds for
    capital spending by its subsidiaries and affiliates. ECCM reported a
    net income of $12.8 mil for the yr ended in 12/92. The company's net
    profits increased almost three-fold in 1991 and rose 40% in 1992. The
    demand of motorcycles currently exceeds the supply in China.

4. SHANGHAI PETROCHEMICAL COMPANY LIMITED  (Ticker: SHI)

    Company is the largest petrochemical enterprise and the ninth largest
    industrial enterprise in the People's Republic of China based on 1992
    sales.  Co. is located in Jinshanwei, southwest of Shanghai, and is a
    highly integrated petrochemical complex which processes crude oil into
    a broad range of synthetic fibers, resins and plastics, intermediate
    petrochemicals and petroleum products. In 1992, synthetic fibers
    accounted for 32.1% of net sales, resins and plastics 28.5%,
    intermediate petrochemicals 14.2%, petroleum products 23.1%, and other
    2.1%.  EMPLOYEES- July 23, 1993, apx. 40,000.

5. CHINA TIRE HOLDINGS LTD (Ticker: TIR)

     * China Tire is the second-largest automobile tire producer and
       the third-largest bicycle tire manufacturer in the PRC.
     * The automobile industry has been identified as one of the four
       pillar industries in China, and government directives will assist the
       industry to expand in the near future.
     * In order to capture the anticipated demand for both bias and
       radial tires, China Tire is aggressively expanding its production
       capacity.
     * The company is forecast to produce compound annual net income
       gains of over 30% in the next five years.



              A Brief Introduction to Security Analysis
              =========================================

1. Fundalmental Analysis
2. Technical Analysis


Fundalmental analysis - which company to buy, basically looks at company.
Technical analysis - when to buy, basically looks at the market.

1. Fundalmental Analysis

This type of analysis uses a quantitative approach to market
forecasting based on an analysis of corporate BALANCE SHEET and INCOME
STATEMENT.

BALANCE SHEET gives details of the following items:

               ASSET = LIABILITY + EQUITY 

this just like HOUSE = UNPAID + PAID

INCOME STATEMENT gives details of 

               REVENUE - EXPENSE = NET INCOME (profit/loss)

income statement is sometimes referred as Profit and Loss statement,
or P&L)

There are some numbers which are of importance in security analysis:

Margin of profit
Current ratio
Working capital
Quick ratio
Net worth
Levarage ratio
P/E ratio
Inventory turnover ratio

2. Technical Analysis

You really need historial stock data to plot the "chart" to do
technical analysis. What you need are the price and volume.

Technical analysis is a method of attempting to predict stock price
trends over the near term, generally 4 to 6 weeks. the prediction is
based upon current stock price trends and the relationship of the
present trend to prior trends.

Overbought: When said that the market is overbought, it means that
there has been an extended period of vigrous buying in the market.
with no more buyers to provide demand for the security, it is likely
that future prices will head downward or remain in the horizontal
level until more buyers enter the market.

Oversold: This is the opposite of overbought, i.e., there has been so
much selling that the sellers have run out of securities to sell and
hence, the prices will stablize, or perhaps begin to increase.

Consolidation: During a period of rapidly rising stock prices. If the
market doesn't pause to consolidate the gains, it may become
overbought.

Head and Shoulder: bear trend
Inverted Head and Shoulder: bull tread

Saucer: bull trend
Umbrella: bear trend

Double bottom: bull trend
Double top: bear trend

Support level: price normally above this line
Resistence level: price normally below this line
Break out: when the price movement penetrates the support or
           resistance level.
==========================================================================

                           Disclaimers:

 a) Material on ICnet  is for general information only, and made available
    to  voluntary  subscribers  (subscription  is  free).    There  is  no
    guarantee of  accuracy in either text or numbers, so please read  with
    your own discretion.  Opinion expressed by any author is  his own, not
    necessarily  his  employer's.  Nobody on  the icnet-l or related (Hong
    Guang, Gray Zhu or their employers, or any other members, or ifcss.org
    which is the  ftp provider) except yourself assumes any responsibility
    for any consequences of using the material.

 b) You are free to forward and copy the material  for private use. If you
    do forward, it is mandatory to let it ALWAYS GO  WITH DISCLAIMER.  Use 
    of the material for commercial  purpose without written consent of the 
    author is prohibited.

 c) Any past  performance examples should not be  considered an indication
    of future results.

==========================================================================
    Any VIP related message should be addressed to: grayzhu@panix.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
                  ICnet - Investment Club on network
__________________________________________________________________________
  SUB/SIGNOFF to: LISTSERV@IFCSS.ORG, with mailbody as:
                  SUB ICNET-L Firstname Lastname or: SIGNOFF ICNET-L
  Post mail to:   ICNET-L@IFCSS.ORG
  Anonymous ftp:  at ifcss.org, in direcctory: /org/icnet
  Gopher:         /org/icnet on ifcss.org, /ifcss/org/icnet on cnd.org
  Managers:       Guang Hong, HONG@opus.mco.edu
                  Gray Zhu, grayzhu@panix.com (800)-289-2498
__________________________________________________________________________
     ALL INVESTMENTS INVOLVE RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From icnet-l@ifcss.org Thu Jun 30 22:42:51 1994
Return-Path: <icnet-l@ifcss.org>
Received: from  (localhost) by ifcss.org (4.1/IFCSS-Mailer)
	id AA22745; Thu, 30 Jun 94 22:42:13 CDT
Date: Thu, 30 Jun 94 22:42:13 CDT
Errors-To: grayzhu@panix.com
Message-Id: <199407010339.AA19402@panix.com>
Errors-To: grayzhu@panix.com
Reply-To: icnet-l@ifcss.org
Originator: icnet-l@ifcss.org
Sender: icnet-l@ifcss.org
Precedence: bulk
From: "Gray Zhu, 800-289-2498, 212-279-6700" <grayzhu@panix.com>
To: Multiple recipients of list <icnet-l@ifcss.org>
Subject: IC940630: Why Investing ?
X-Listprocessor-Version: 6.0c -- ListProcessor by Anastasios Kotsikonas
X-Comment:  Investment Club on network
Status: R

==================    IC940630: Investment Club  ======================

Why Investing ? .............................................. Gray Zhu
	1. investing is diversifying your money
	2. investing make you money
	3. investing to prepare your kids education and your retirement
	4. investing is part of American culture
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)

(Yesterday, I gave a short seminar to a group of friends. I addressed
3 points: why invest, where to invest, when to invest. Here I am
posting my view on the "WHY". The market has been down a bit, do not
miss the independent day stocks "ON-SALE" opportunity. - I am glad to
hear other opinions.)

Why investing:

1. generally, people think put money into a CD is safe. I do not think
so: the "safe" means there is no market risk, or it is not subject to
market fluctuation. although CD is not an investment (does it
matter?), but it faces the so-called purchasing power risk instead of
market risk. Currently, the 5-year CD interest is about 6%, if the
inflation goes to 10% in the future, you are losing 4% instead of
making 6% considering puchasing power.

On the other hand, stock market generally rides above inflation, you
dont have much purchasing power risk, but there is market risk.

Of course, bonds share the same problem with CD, but that's why a well
diversified portfolio should consider both stocks and bonds.

2. investing make you money

Someone asked me a very interesting question: if one investor made
money, is it correct that another must have lost the same amount of
money? The answer is NO. let's assume an ideal situation where a stock
keeps going up without fluctuation, everyone who invests makes money
because he can always "buy low, sell high". The money come from the
increased total amount of money invested in the stock. - think about
it.

If you still don't understand, let me ask you a question: you work for
a company, and your salary is raised, does it mean another fellow's
salary is lowered? why?

Fact is, the odd of winning is greater than 0.5 in generally - this is
different from the casino gambling. you know, the average annual
return in the stock market is about 10% over the last 60 years, 12%
over the last 30 years, 17% in the 80's.  Again, you know, assume 12%
annual growth, a $2000 investment will become $60,000 after 30 years
if you reinvest all the returns.

3. investing to prepare your kids education and your retirement

People invest for their kids, their own retirements - The benefit is
described above. If you invest a couple of thousands for your kids
when their young, you are going to make them tuition with no
significant impact on your budget when you need to pay tuition. you
can figure it out.

4. investing is part of American culture

Most American middle class and above have investments, and they have
been doing so from generation to generation. If you have some
investments in the market, doesn't it make you have more in common
with your American friends? TV and radio broadcasts the market every
day, if you have no idea about what it is about, dont you feel you are
missing something in your life?

With investments in the market, it is very likely you are aware of the
big news events, what is bad about it?

If you do make some money or even lose money, you should feel more
excitements than those who stay in the lab all the time.

==========================================================================

                           Disclaimers:

 a) Material on ICnet  is for general information only, and made available
    to  voluntary  subscribers  (subscription  is  free).    There  is  no
    guarantee of  accuracy in either text or numbers, so please read  with
    your own discretion.  Opinion expressed by any author is  his own, not
    necessarily  his  employer's.  Nobody on  the icnet-l or related (Hong
    Guang, Gray Zhu or their employers, or any other members, or ifcss.org
    which is the  ftp provider) except yourself assumes any responsibility
    for any consequences of using the material.

 b) You are free to forward and copy the material  for private use. If you
    do forward, it is mandatory to let it ALWAYS GO  WITH DISCLAIMER.  Use 
    of the material for commercial  purpose without written consent of the 
    author is prohibited.

 c) Any past  performance examples should not be  considered an indication
    of future results.

==========================================================================
    Any VIP related message should be addressed to: grayzhu@panix.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
                  ICnet - Investment Club on network
__________________________________________________________________________
  SUB/SIGNOFF to: LISTSERV@IFCSS.ORG, with mailbody as:
                  SUB ICNET-L Firstname Lastname or: SIGNOFF ICNET-L
  Post mail to:   ICNET-L@IFCSS.ORG
  Anonymous ftp:  at ifcss.org, in direcctory: /org/icnet
  Gopher:         /org/icnet on ifcss.org, /ifcss/org/icnet on cnd.org
  Managers:       Guang Hong, HONG@opus.mco.edu
                  Gray Zhu, grayzhu@panix.com (800)-289-2498
__________________________________________________________________________
     ALL INVESTMENTS INVOLVE RISK, STUDY CAREFULLY BEFORE INVESTING.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

