The Cow Report – February 16, 2007

“There are bulls, there are bears and then there are cows.

Cows use Covered Calls to generate consistent monthly income from a stock
investment to meet living expenses or to compound the growth of a portfolio.

By definition bulls and bears are wrong half the time, whereas a cow
consistently produces returns, regardless of market direction."
Table of contents

Client of the week ……………………… 3

Joseph Hooper’s weekly editorial ……………………… 4

Update of this week’s activities ……………………… 9

How to get educated ……………………… 15

Upcoming Seminars ……………………… 17

Special offers ……………………… 18

Tune into our weekly radio show ……………………… 20

LEAPS stock of the week ……………………… 21

Covered Call Toolbox ……………………… 22

CLIENT EMAIL SECTION ……………………… 24

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What we do

Let’s get right to the point. There is a better way to invest your money.

For over 7 years we have been teaching investors how to make a cash return
of 3 – 6% per month from their stock investments, regardless of market
direction.

We achieve these remarkable returns through a proprietary application of the

Covered Call technique, which has been developed and practiced by us for
over 25 years.

Our clients use this technique in both retirement and non-retirement accounts.
The large monthly returns can be reinvested to dramatically compound the
growth of a portfolio or withdrawn on a monthly basis to provide cash income
in retirement.

Does 3%– 6% per month, regardless of market direction, sound too good to
be true? We invite you to listen to dozens of recorded interviews with our
clients who achieve these returns, month after month, year after year, through
good markets and bad - just CLICK HERE.

Client of the week

Compound Stock Earnings Founder, Joseph Hooper and Aaron Zalewski host
"UNCONVENTIONAL WI$DOM - The CSE Investment Show", a weekly
financial talk back radio program airing in Dallas, LA, Boston, Chicago and --
Atlanta. Unlike regular financial talk shows, which are full of esoteric fodder
like paying off your credit cards or picking a better mutual fund - we talk about
how you actually make money in the stock market through the use of Covered
Calls.

Each week we have a different client on the show as our guest and the show
is then archived on our website. This week we have an international client on
the show, Mike from Australia. Mike first read our book 3 years ago, but only
just became active using our technique 4 months ago. Mike has since been
earning while he’s been learning – making over 6% per month from his
investments while since he started using our technique. Mike comments on
the show that his only regret was not getting started earlier.

To listen to Mike’s appearance on our radio show - CLICK HERE.

To listen to past radio shows CLICK HERE.

These links may take some time to download.

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Joseph Hooper’s Weekly Editorial

....well...as you read this Cow Report....we are conducting our first "LEAPS
Seminar" for 2007 in Dallas both for "in person" attendance and "on Line"
attendance.......we intend to have these one day LEAPS Seminars every
other month .. . ... watch for the exact day/time/location for the next one......

.....well...we had our live "on line coaching" seminar this past
Wednesday...this time the recording equipment worked completely so the
program is archived but only available to those that subscribe to the on line
coaching service......this is the most cost effective service....in just one
session you can get the answers on how to handle a position to increase
returns or speed up the close out of the position....just listening to others
questions and comments is just so important....anyhow..you pick up enough
good information to pay for the service for a year or more....subscribing to this
service makes the difference between growing your assets rapidly or just so
so....education is so important vs. ignorance ........

.....We will be presenting the January $5,000.00 Scholarship Check to Aaron

Chouravong at the next Dallas Two Day Intensive Seminar at the end of
February...then we will be drawing for the winner for the February $5,000.00
Scholarship check...want be too much longer that these Scholarship winners
will have enough months of investing with the new accounts that we can have
a special on our radio show featuring how they are doing etc. etc....

..if you are not bringing your 14 to 21 year old person to the 2-Day
Intensive...you are really stunting their financial future.......don't forget that
Monday, February 19 is President's Day and all the markets are
closed....short editorial for this Cow Report for we have to prepare for the
LEAPS Seminar tomorrow......have a great long weekend.........

...moving on...

IMPORTANT: New Scholarship recipient for January....his name is Aaron

Chouravonhl, age 20 from Austin, Texas.....we have notified him and will be
posting more about Aaron in next weeks Cow Report....remember that when
you attend a 2-Day Intensive in February..bring that kid 14 to 21 years of age
for free...one of them will be the February Scholarship recipient........

“Covered Calls and LEAPS: A Wealth Option” now published!!!

.....Wiley Publishers has printed our book, “Covered Calls and LEAPS: A
Wealth Option”.... The forward to the book has been written by Robert

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Kiyosaki, author of “Rich Dad, Poor Dad” and the highest selling personal
finance author of all time.

Our book outlines in great detail in over 200 pages the exact Covered Call
and LEAPS processes, rules and techniques to achieve consistent monthly
returns of 3 – 6% from a stock portfolio.

......biggest surprise of all....attached to each book are two segments of the

Master's Class 2-Day Seminar HD DVD.... one 3 hour DVD featuring our long
term client Don showing how he uses our LEAPS technique to generate
returns allowing a fine retirement income and the other 3 hour DVD featuring
our long term client George showing how he does the same thing with
traditional covered calls.....there is around 6 hours of classroom training
included in these DVD’s....and they are free when you buy the book....what a
deal....

....lots of interest from most of the national financial papers and magazine
publications...you might see some really interesting articles about Compound
Stock Earnings in those publications real soon.....

Order a copy today from our website:

https://www.compoundstockearnings.com/book/?product=CCWEALTHOPTIO
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Tips for using the Toolbox

......for those that subscribe to the Toolbox.....sometimes as as the option

month progresses you will find that the screener for conventional near month
covered call positions might not show any selections at sometimes during the
day....

...what you need to do is adjust downward the "called out returns" and the "if
not called out returns" from the default values...

...why....?

...because as the month goes forward the returns go down so if you have the
default returns in the screener you will have fewer selections...

.....for example the + 3.9% returns assume the first day of the new option
month.....so half way through the month you should be using half of 3.9% or
1.5% or so....your returns will be the same for the month because the money
will out for a lesser number of days.....

....ok....that might help and will answer a lot of the emails that

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come in that say...."help....no selections today".....

....just use your head and adjust the rates.........

Download our radio show to your iPod

..........don't forget that you can download to your MP3 player our radio
shows if you will just go to our website www.compoundstockearnings.com
and right click on the shows to download......

..........if you have an IPOD...go to itunes and go to PODCAST, search for

"unconventional Wisdom" and download the radio shows....

Scholarship Program Continues

........listen...in January 07 we will be starting the new month for the

Scholarship program.. first Seminar is in Atlanta ....a deposit of $5,000.00 will
be made to a brokerage account in the name of each winner for
the month.....we will draw the name from a hat during our radio show the first
week after the close out of the Dallas Seminar each month (Dallas is always
the last Seminar for the month and will be December 2-3)......

....the way it works is that all the young folks (14 years old to 21 years old)
who attend the 2-Day Intensive Seminar on conventional covered calls during
a month with their parents (the young folks attend free) will have their name
put into the hat for the drawing for that particular month......

...at present we have a Seminar each month in Boston, Atlanta, Chicago,

Dallas and Los Angeles ...except in December when we do not have any
Seminars......exception is for the first week in December we will have a Dallas
Seminar to make up for one not held over Thanksgiving .....

....for each of the young folks who attend any of those Seminars during a
particular month (starting this last September, 2006)....their name will go into
the hat for the drawing for that month.....in other words, all those young
folks who attend in Atlanta, Boston, Chicago, Dallas and Los
Angeles in Octobrer will have their name put into the hat and then we will
draw from that hat on the first radio show after the Dallas Seminar.....then all
names will be taken from the hat and we will start over for the new
month.....so if some young folk want to have their name back in the hat for the
new month, they will need to attend again....this way they reinforce their
knowledge of our technique etc....

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...there is only one hat and those attending the Seminars in each city will all
go into the same hat...in other words, there is only one $5,000.00 scholarship
per month, not one for each city where the Seminar is held........

.....these young folks are doing great with the use of our program....if you
want to be the best parent ever...sign up for one of our 2-Day Intensive
Seminars and bring your kid or kids.......for free....

........set them up for life financially................

...........let's move on................

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Attend a FREE LIVE ONLINE introductory workshop

These sessions are held each Tuesday evening from 7.00 – 9.00pm Central
Time. They are conducted live over the internet, so investors from all over
the world can attend in the comfort of their own homes.

At these online workshops, we provide an introduction to our Covered Call

technique. Investors are also invited to discuss particular positions they hold
and we will demonstrate how to lock in a MONTHLY return of between 3% -
6% on a stock investment.

To register for a free online introductory workshop - CLICK HERE

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Update of this week’s activities

Here is an update of the week’s activities. The transactions below are ones
executed by us. We also send these transactions out real time, as they
happen, to our Covered Call / LEAPS Selections subscribers. Watching what
we’re doing in our accounts is a great way for clients to learn to the practical
application of the technique!

Subscriptions to Covered Call / LEAPS Selections service is $100.00 per

month. (You can only subscribe if you are a graduate of the 2-Day Intensive
Seminar.)

To subscribe to the Covered Calls / LEAPS Selections service just Click Here

Here is an update of the Open and Closed Positions for our Managed
Covered Call Selection service. It shows all positions that have been entered
into and closed out and the returns. It also shows the transactions that have
been entered into and are still open and the net income to date from that
position.

MANAGED COVERED CALL SELECTIONS - COMPLETED AND OPEN POSITIONS

RETURN ON ENTIRE PORTFOLIO

All Positions Average At 3-Nov-06
All Positions Days Held Return
AVERAGE 57 6.9%
AVERAGE PER MONTH 3.8%
AVERAGE PER YEAR 55.6%
1. Average per year includes monthly compounding

The above table shows the current return over the entire portfolio since March
2005. The return is 3.8% per month or 55.6% per year. Please see the next
page for a list of the open and closed positions in that portfolio. The open
positions are the positions in the portfolio that we are currently managing and
the closed positions are those that have been profitably completed.

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OPEN POSITIONS
Stock Details Near Month or TSS Call
Date Purchase Days Net Prem Short Call
Stock Purchased Price Held To Date Exp. Strike Price

EOG 26-Apr-06 $75.15 191 7.7% Jan-08 $50.00 $19.70

ELOS 22-Mar-06 $29.62 226 8.1%
EXP 23-May-06 $51.07 164 1.3%
GG 21-Aug-06 $29.64 74 8.6%
JOYG 22-Jun-06 $49.78 134 6.2% Jan-08 $25.00 $14.80
MTH 10-Jan-06 $66.58 297 33.2% Sep-07 $35.00 $10.50
NLS 11-Jan-06 $19.65 296 13.5% Jan-08 $10.00 $3.20
NVT 11-Jul-06 $40.20 115 14.7% Jan-08 $25.00 $13.10
PSUN 7-Feb-06 $24.61 269 10.4% Jan-08 $12.50 $8.40
SNDK 11-Apr-06 $61.38 206 21.5% Jan-08 $25.00 $17.50
URBN 24-Feb-06 $27.73 252 24.0% Jan-08 $17.50 $9.00
WIRE 28-Sep-06 $37.15 36 9.8%

AVERAGE 188 13.2%

AVERAGE PER MONTH 2.2%
AVERAGE PER YEAR 26.2%
* Net premium to date =
1. Uncalled return on positions that have near month calls. And / Or
2. Net premium received from calls that have expired or have been bought to close.
ie: Net Prem to Date does not include premium from open TSS call positions

Please see the next page for the completed Managed positions over the last
12 months.

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CLOSED POSITIONS
Date Days
Stock Opened Date Closed Held Return

RES 17-Aug-06 25-Oct-06 69 16.7%

RS 25-Jul-06 21-Nov-06 119 14.5%
THE 20-Sep-06 25-Oct-06 35 6.2%
TDW 18-May-06 8-Nov-06 169 8.4%
Last option month 3.6%

Prior to last option month

AAPL 20-Apr-06 26-Sep-06 159 6.6%
HXL 24-Sep-06 20-Oct-06 26 6.8%
IRF 28-Sep-06 20-Oct-06 22 3.8%
MTW 28-Sep-06 20-Oct-06 22 4.3%
NUE 7-Sep-06 20-Oct-06 43 6.2%
SII 5-Oct-06 20-Oct-06 15 3.4%
BEAV 23-Aug-06 15-Sep-06 22 4.1%
CAL 17-Aug-06 15-Sep-06 28 4.2%
GFIG 7-Sep-06 15-Sep-06 8 2.4%
NTRI 22-Aug-06 15-Sep-06 23 5.7%
THE 29-Aug-06 15-Sep-06 16 4.2%
WIRE 22-Aug-06 15-Sep-06 23 4.3%
AUO 25-May-06 18-Aug-06 84 11.0%
GME 26-Jul-06 18-Aug-06 23 5.4%
RIMM 20-Jul-06 18-Aug-06 22 4.7%
SSL 20-Jul-06 18-Aug-06 28 6.6%
TPX 24-Apr-06 18-Aug-06 115 10.7%
BJS 27-Apr-06 21-Jul-06 66 8.9%
CBI 24-Apr-06 21-Jul-06 73 8.0%
NOV 20-Jun-06 21-Jul-06 136 4.0%
USNA 21-Mar-06 21-Jul-06 227 11.0%
NOV 22-May-06 16-Jun-06 25 4.8%
YHOO 4-May-06 25-May-06 21 4.3%
MEE 27-Jan-06 3-May-06 96 14.6%
PCLN 18-Apr-06 3-May-06 15 4.6%
MGM 17-Feb-06 21-Apr-06 63 9.5%
TDY 15-Mar-06 21-Apr-06 37 5.9%
THE 22-Mar-06 21-Apr-06 30 6.3%
YHOO 5-Apr-06 21-Apr-06 16 4.0%
CAI 18-Jan-06 17-Mar-06 58 7.6%
COGN 3-Feb-06 17-Mar-06 42 4.3%
ECA 7-Feb-06 17-Mar-06 38 6.7%
GLBL 17-Feb-06 17-Mar-06 28 4.1%
NSS 22-Feb-06 17-Mar-06 23 4.0%
NVT 25-Jan-06 17-Mar-06 51 7.8%
PII 6-Feb-06 17-Mar-06 39 3.8%
PLCE 23-Feb-06 17-Mar-06 22 4.5%
THX 8-Dec-05 17-Feb-06 71 12.4%
SCHN 17-Jan-06 17-Feb-06 31 3.9%
COHR 11-Jan-06 17-Feb-06 37 4.4%
GTRC 20-Dec-05 17-Feb-06 59 9.5%
FMD 13-Dec-05 17-Feb-06 66 12.7%
CHKP 19-Dec-05 20-Jan-06 32 4.1%

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COGN 28-Nov-05 21-Jan-06 54 6.0%
MBT 8-Dec-05 22-Jan-06 45 4.7%
OI 15-Nov-05 23-Jan-06 69 8.1%
VCLK 10-Nov-05 24-Jan-06 75 13.6%
OVTI 20-Jun-05 23-Jan-06 217 19.7%
ADCT 30-Aug-05 16-Dec-05 108 14.9%
AHM 2-Dec-05 16-Dec-05 14 2.5%
CREE 9-Nov-05 16-Dec-05 37 5.7%
ENER 16-Nov-05 16-Dec-05 30 7.9%
FDG 14-Nov-05 16-Dec-05 32 5.5%
WFR 25-Oct-05 12-Dec-05 48 22.2%
MIK 22-Nov-05 23-Nov-05 1 2.8%
EPL 8-Nov-05 22-Nov-05 14 1.5%
MT 8-Nov-05 18-Nov-05 10 2.8%
CREE 12-Oct-05 21-Oct-05 9 5.4%
JBHT 25-Jul-05 11-Oct-05 78 3.5%
CAMD 29-Sep-05 4-Oct-05 5 2.6%
TPX 29-Aug-05 16-Sep-05 18 2.9%
ZQK 8-Sep-05 16-Sep-05 8 2.2%
OS 24-Aug-05 30-Aug-05 6 6.2%
TOMO 8-Jul-05 20-Aug-05 43 5.3%
WFS 15-Jul-05 20-Aug-05 36 4.0%
NTGR 28-Jul-05 10-Aug-05 13 8.9%
VTIV 4-Aug-05 8-Aug-05 4 2.5%
DRIV 19-Jul-05 28-Jul-05 9 5.0%
SYNA 21-Apr-05 19-Jul-05 89 5.1%
KOMG 21-Jun-05 18-Jul-05 27 0.4%
RECN 6-Jul-05 16-Jul-05 10 1.9%
PALM 8-Jul-05 14-Jul-05 6 7.9%
IIG 27-Apr-05 8-Jul-05 72 5.1%
IIG 7-Jun-05 8-Jul-05 31 11.2%
IIJI 1-Jul-05 8-Jul-05 7 5.4%
PLAY 21-Jun-05 6-Jul-05 15 2.6%
PALM 21-Jun-05 30-Jun-05 9 6.1%
NAVR 7-Jun-05 22-Jun-05 15 8.5%
MDR 27-Apr-05 20-Jun-05 54 4.5%
TSM 13-Jun-05 15-Jun-05 2 0.6%
ELOS 10-Jun-05 13-Jun-05 3 2.0%
CEDC 2-Jun-05 10-Jun-05 8 3.1%
ASPT 1-Jun-05 7-Jun-05 6 1.1%
SHOP 21-Mar-05 2-Jun-05 73 19.8%
PALM 23-Mar-05 24-May-05 62 5.7%
DRDN 20-Apr-05 4-May-05 14 4.0%
NAVR 29-Mar-05 27-Apr-05 29 9.3%
IIG 30-Mar-05 25-Apr-05 26 7.4%
DRIV 22-Mar-05 18-Apr-05 27 3.5%
KOSP 29-Mar-05 30-Mar-05 1 4.3%
Average prior to last option month 6.4%

Closed transactions average

AVERAGE 40 6.3%
AVERAGE PER MONTH 4.9%
AVERAGE PER YEAR 58.3%

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Here are the Covered Call / LEAPS positions that closed out this week from
our Covered Call / LEAPS Selections Service.

Close outs this week

Return on
Stock Strike Position

BUCY $45.00 5.0%

IRF $40.00 6.1%
BUCY $45.00 6.6%
ADCT $15.00 5.0%
DRIV $50.00 4.2%
KWK $35.00 4.5%
FORM $40.00 4.8%
BW $30.00 8.0%
AVCT $32.50 3.7%
ELOS $25.00 4.8%
BMY $25.00 4.2%
CNQ $50.00 2.9%
IN $25.00 2.5%
NTRI $40.00 2.3%
UTHR $30.00 1.5%
AEM $40.00 1.5%
AEM $40.00 1.9%

Remember, our returns are represented by real cash, not paper values that
can disappear as quickly as they appear. These cash returns can be
withdrawn and spent on whatever you desire or all or some positions can be
left to compound your values into significant figures as time goes by.

Unlike speculating in stocks, when writing covered calls, the day to day
market value of the stocks and LEAPS is not significant. It is the cash returns
produced each month that prevent you from finding yourself in a situation
where you have to liquidate a stock at a loss to generate income. You receive
every month returns that the average stock speculator would be overjoyed to
have on a yearly basis.

If you have stocks and are not selling calls against them each month, you are
leaving large amounts of cash on the table month after month. Every month
you do not sell covered calls against your stocks you are simply making less
money and exposing yourself to more risk. If your broker says it is risky to
sell calls against your stocks, he is ignorant of the covered call technique (like
most are) and you need to take control of your own financial future.

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Subscriptions to Covered Call / LEAPS Selections service is $100.00 per
month. You can only subscribe if you are a graduate of the 2-Day Intensive
Seminar.

To subscribe to the Covered Calls / LEAPS Selections service just Click

Here.

Non 2-Day Intensive Graduates can subscribe to the Covered Call

Toolbox (without the Selections service) for $80 per month. Click Here.

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How to get educated

For a country so focused on education, our level of financial literacy is

incredibly poor. The Street, serving it’s own interests, has taught us all the
wrong ways to invest.

Even the most business savvy and educated generally have no idea how to
effectively invest for growth throughout their working lives and for income in
retirement.

The world is caught up in a speculative “buy and hope” mentality to secure

their financial futures. To the correctly educated, the foolery going on in the
investment world today is almost criminal.

You need an education about how to invest your money. No one else is
going to do it for you. You wouldn’t be reading this if your financial advisors
had consistently made you money in both good markets and bad.

Attend a FREE LIVE ONLINE introductory workshop

These sessions are held each Tuesday evening from 7.00 – 9.00pm Central
Time. They are conducted live over the internet, so investors from all over
the world can attend in the comfort of their own homes.

At these online workshops, we provide an introduction to our Covered Call

technique. Investors are also invited to discuss particular positions they hold
and we will demonstrate how to lock in a MONTHLY return of between 3% -
6% on any stock investment.

To register for a free online introductory workshop - CLICK HERE

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2-Day Intensive Seminar

Our 2-Day Intensive Seminar provides the most comprehensive Covered Call
education available anywhere in the world. The seminar is also offered online
through a live audio visual link over the internet - so attendees can learn in
the comfort of their own homes.

The Seminar explains and significantly elaborates on every topic contained in

Covered Calls: A Wealth Option and covers much, much more.

The most vital function of the 2-Day Intensive Seminar is to show investors
the practical application of our proprietary rules and techniques for Covered
Call investing. This is the information that simply can't be passed on through a
book.

Investors leave the 2-Day Intensive Seminar with an unprecedented

knowledge of the Covered Call technique and are ready to begin investing the
very next day.

Our 2 Day Intensive Seminar includes our 180 page “Covered Calls: A Wealth
Option - Seminar Manual” which is the most comprehensive covered call
manual ever compiled and is not available for separate purchase.

Also included in the 2 Day Intensive Seminar package are 10 two hour
audiovisual Herd Talk CD's (a separate $700 value).

The 2-Day Intensive Seminar Package is $2,995.

To register -

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Upcoming Seminars

2-Day Intensive Seminars

Our 2-Day Intensive Seminars are held EACH MONTH in selected locations.

Upcoming events include:

• Dallas – February 24 & 25, 2007

• Los Angeles – March 3 & 4, 2007
• Atlanta – March 3 & 4, 2007
• Boston – March 10 & 11, 2007
• Chicago – March 17 & 18, 2007

To register for a 2-Day Intensive Seminar -

Remember we allow all our past graduates to re-attend any seminar for free,
at any time they choose. The reason we do this, is so people who are brand
new to our technique can meet and network with “seasoned pro’s” who have
been using our Covered Call technique for years. It is very rare that we ever
hold a seminar where there isn’t at least two clients in attendance who have
been using our technique for over a year. Come along and you’ll hear their
successes first hand.

Additionally, our Dallas seminars are offered online – so you can attend them
from the comfort of your own home and without having to travel. This is
achieved through a live audiovisual link over the internet. If you attend online,
you see exactly what the live audiences sees. You also get to hear the
presentation, hear the audience’s questions and ask questions yourself.
Online attendance is exactly like sitting in the live seminar room, except
without the expense of travel. Online attendees are then entitled to attend as
many live seminars as they wish, at any time in the future.

To register for a 2-Day Intensive Seminar -

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Special Offers

Educate your children for free

You know one of the greatest missed opportunities by many clients is not
teaching their teenaged son or daughter our covered call technique...what for,
you ask??....well, there is no better way for a young person to provide for their
own college education and life thereafter than learning our technique....

....what brings this up is the ever increasing number of clients signing up for
the 2-Day Intensive and paying to bring along their sons and daughters...
The last three 2-Day Intensives we have had a Father who is currently using
the technique, pay for and bring along a son so that he can start investing
too... pretty smart move as it turns out....

.....a deposit of $5,000.00 when a child is around 13 will turn into $93,395.92
by the time the child is 18 and graduates from high school....that assumes
you use our technique to do conventional covered calls and average 5% per
month......that provides funds for tuition .....with enough left over to continue to
produce monthly income to pay for the other expenses.....what an
opportunity!!.....

.....we have clients who have teenage sons and daughters (and
grandchildren) who are earning better monthly returns than the parents....For
example, many of you would have heard our great client Kevin recently on
our radio show "Unconventional WI$DOM". Well, Kevin's been earnings
4.5% per month over about 12 months now. He’s also got his two sons
involved and they are averaging around 4% a month. How is that
possible?....because these young folks do not have the limiting mindsets of
the parents because they have not been exposed to the corrupt thinking of
main street investment advisers and brokers.....

......a good example is how quickly young people take up and master
computers.....I am still trying to figure out how the radio
works.....anyhow.....point is that young folks are mastering our technique
quicker than their parents.....

.....once you set them up, you have given them the ability to pay for a college
education and have a nest egg that will give them the ability to continue to
build their wealth and maximize life's opportunities once they are out of
college by not having to take some "job" so they can pay off college loans etc.
or take a "job" to be able to pay the rent....besides...it will assure they will

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move out of the house quicker....because they will graduate college and have
immediate income if they continue to invest.....

...can you think of anything better to give or teach your children??!!....you

really set them up for life.....

....something else on this subject...Aaron is a good example of what a young

person can do.....when Aaron was 20, he purchased our book “Covered Calls:
A Wealth Option” emailed me from Australia stating that he wanted to learn
the technique so he could leave his job in investment banking, invest with our
technique and became financially independent....he did in a big time way....in
a short time...

.....is there a better place for your teenager to get motivated than to bring
them to a 2-Day Intensive, meet Aaron and expose them to a golden
opportunity that can change their lives forever??!!.....

....as a special motivating benefit, Aaron will take all the teens attending the 2-
day Intensive to lunch during our lunch break to discuss with them the
benefits of learning this technique early in life, paying for their education and
building a life with wealth vs. having to take unrewarding jobs just to get
along....Aaron can be a much more motivating influence than most parents
because he is young and started learning our technique at a young age and
the younger folks can identify with him......

......we will help with this. If you want to sign up for the 2-Day Intensive in
Dallas (June/July/August) or Boston (August) you can bring your teenagers
for FREE.

... just pay the regular $2,995 for yourself (all the other benefits remain like
support, attend as many times as you wish etc etc).. and bring them
along.....here is a link for that purpose...this is a special price and only for
your own children..... You can call Sylvia to register, or CLICK HERE.

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Tune in to our weekly radio show – “UNCONVENTIONAL WI$DOM”

Compound Stock Earnings Founder, Joseph Hooper, and Aaron Zalewski

host "UNCONVENTIONAL WI$DOM - The CSE Investment Show", a weekly
financial talk back radio program airing in Dallas, LA, Boston, Chicago,
Atlanta. You can listen live over the Internet from anywhere in the world at
www.krld.com (Dallas), www.wrko.com (Boston), www.wlsam.com (Chicago),
www.wgst.com (Atlanta) www.kabc.com (Los Angeles).

Apart from taking live callers, we have a long-term client on the show each
week as our guest to talk about their returns using our technique. Tune in,
and you'll hear how our clients are making returns between 3% and 6% per
month, even those who had never bought a stock in their life before becoming
Compound Stock Earnings clients. After their appearance on our radio show,
we interview them and post these interviews on our Web-site.

To listen to past radio shows CLICK HERE.

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Joseph Hooper’s LEAPS Stock of the Week

Each week we put the LEAPS stock of the week in this location. The stock for
this week is ISCA. The top of the cycle (circle) indicates when you should sell
the call and the bottom of the cycle (X) indicates when you should buy it back
for a gain. Just look at all the returns that could have been made with ISSC
over this particular period!! Buy HERD Talk Two and find out how to do all
this buying and selling, just CLICK HERE to buy the CD. Each CD is $69.95.

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CSE Covered Call Toolbox

CSE Covered Call Toolbox

What is the Covered Call Toolbox?

The Covered Call Toolbox is a proprietary search and filter tool developed by
us specifically for the use of our technique. The toolbox completely replaces
and improves on PowerOptions, searching for positions with REAL TIME
PRICES and is tailored specifically to meet our rules for finding and
constructing positions.

The toolbox includes the following items:

1) CSE Screener – Covered Calls (REAL TIME PRICES)

2) CSE Screener – LEAPS (REAL TIME PRICES)
3) Option Chain (REAL TIME PRICES)
4) SSR Worksheet
5) CPR Worksheet

Following is a screenshot of the new CSE Covered Call Toolbox:

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Existing clients who currently subscribe to Covered Call / LEAPS Selections
get the new Toolbox for FREE. Existing Covered Call / LEAPS Selections
subscribers can CLICK HERE to sign up for their FREE password to the
Toolbox. Only current Covered Call / LEAPS Selections subscribers can use
this link (the system will only recognize email addresses of existing
subscriber’s PayPal accounts). If you cancel Covered Call / LEAPS
Selections, you’re subscription to the Toolbox will also be cancelled.

To subscribe to the Covered Calls / LEAPS Selections service + Toolbox

just Click Here. Only 2-Day Intensive Seminar Graduates can subscribe.

Non 2-Day Intensive Graduates can subscribe to the Covered Call

Toolbox (without the Selections service) for $80 per month. Click Here.

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CLIENT EMAILS

This is our favorite section of the weekly Cow Report… why … because it is
the most educational. You will learn so much from these client emails and
our responses.

………………………………………………………………………………………….

Dear Joseph,

Just wanted to extend to you and Aaron a Texas sized thank you.

Though I am still too young to think about retirement, I realized after this last
seminar in LA that I could actually reitire now and have a substantially greater
income than I currently make.

It is a great relief to know the light at the end of the tunnel is no longer
attached to a train. We have friends who recently moved to Fort Worth. I
would love to visit your offices sometime if we ever get a chance to visit them.

Would it be possible to get a list of your favored stocks that you spoke about
at the seminar. I look forward to seeing you and Aaron again and to many
successful years using your covered call techniques.

Thanks again,

Kirk

Dear Kirk;

Well, there you go. We always say that after each 2-Day Intensive Seminar
one or more folks discover they can retire now not down the road. So, it was
with you. That is great. Now you don't mind working.

Sure, when you are in FT. Worth, come on by. Just give us a day to two
notice so we can make sure we have time to visit and maybe have lunch.

Thanks and hope to see you in LA next month.

Joseph R. Hooper

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Hi Joe and Aaron,

First, let me say thanks for the system you've put together, and the great
support you offer. I recently passed the 1-year mark since converting my IRA
from Fidelity, to an account I manage and build via covered calls. With
Fidelity, my account rarely grew more than 5-6% per year. This past year my
account grew 41% in value using your techniques. So… thanks! When I
reviewed my activity, I realized I missed several management opportunities,
when positions were heading down. So this year my focus is to improve my
management skills. 55-60% growth is the goal.

My question is a management-related one. I have the same (roughly) ELOS

position as the one Aaron is managing. Aaron-when you did the "Stretched
SSR" a few weeks ago, I plugged my costs, etc. into the SSR worksheet and
all the called return values were negative. This past weekend I notice the
purchase price listed on the "Managed Covered Call Selections Position
Overview" was several dollars more than what you used in the SSR
Worksheet. Did you use the adjusted cost basis for the worksheet? My
position is in account we use for current income, and the money from
previous positions is no longer in the account (except for current TSS
positions, of course!). So it seems using the adjusted cost basis is not the
proper thing for me to do. I have 200 shares of ELOS purchased at $29.40,
and did the same TSS you did a few months ago (STO Mar 07 @ $5.60). My
question: since the SSR is not profitable, and the March expiration is right
around the corner, it appears my best action is to roll the open call out to Jan
08 $30 (TSS). I would appreciate a reality check on this. Does this action
make sense to you guys?

Thanks in advance.

Ron

Dear Ron;

I have given this email to Aaron and he will be getting back to you.

Can you be on our radio show. We will record this Thursday and we would
call you around 4:30 pm CST. It will take about 30 min.

Please let me know and let me have your phone number to call.

Thanks,

-25-
Joseph R. Hooper

Dear Mr. Hooper,

My name is Aaron Chouravong, you can call me "the other Aaron".

I am twenty years old, and a business major at the University of Texas in San
Antonio.

Your giving is an investment into my life that you'll reap a hundred fold. As
the recipient of the $5000 investment scholarship, I'm excited to compound
the money using CSE techniques. At just the thought of it, I can only thank
God and take a sigh of relief.

A sigh of relief because I know I'll be a millionaire before the age of 30.

A sigh of relief because I'll let my money work for me, instead of working for
my money.

And one more sigh of relief because I can sleep through the Investment
Banking lecture in my Finance class.

Then I realize it's more than just a sigh of relief. I'm ecstatic, elated, excited!
I'm… I'm as merry as a school boy!

So from a grateful heart, thank you, thank you, and thank you.

Your stewardship and generosity will always be remembered.

Sincerely,

Aaron Chouravong

P.S. One other thing I'd like to ask your favor.

My dad called your office last week and was told that existing clients are put
on the waiting list to retake the Dallas February 2-day intensive. We had
made the reservation right after January seminar and when you called me
that I won the scholarship, my dad made a non-refundable air, hotel and car
reservation for the February seminar for both of us. I would really like to re-
attend to reinforce my knowledge and thank you in person.

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Any exception you can make for my dad and I will be greatly appreciated!

Joe and Aaron,

Dear Aaron (the other):

Thanks for your note and congrats again!!!

We announced your award of the scholarship in the Cow Report this past
Saturday (2-10-07).

I would very much appreciate if you could send me a little bio on where you
are from (you might be from Austin) and a photo that we can put in next
Saturday's Cow Report.

There is no problem with you and your Dad attending the next 2-Day
Intensive Seminar. You reference the Feb. 2 Seminar..not sure which one
your are talking about since this is Feb 12.

However, just let me know and I will make sure that Tiffany gets the both of
you confirmations. We will have you come up in front and collect the
$5,000.00 check. So please get back to me on this.

All your aspirations are in line with reality. We have folks you age producing
the 5% returns on a monthly basis and building their assets. You are really
going to have the opportunity to do in life what you want for you will not be a
slave to a job.

Please get back to me on the times you and you Dad want to attend the
Seminar.

Thanks,

Joseph R. Hooper

Dear Joseph;

Thanks guys for the very informative online session on Wednesday, February
14th. The light bulb finally illuminated for me on the construction and use of
the SSR. I undertook the SSR suggested by Aaron on AL. I had questions I
neglected to ask during the session.

1. Once the near month call (March call in this case) expires, do you attempt
to repurchase the same strike in succeeding months?

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2. Do you exit the position once you have recovered your restructure costs,
or do you continue selling calls and/or the LEAPS until some profit target is
reached?

3. If you wait for a profit, what is a reasonable target to reach before exiting
the position entirely?

Each time I've logged on the the online sessions, I've made money. Thanks
guys, I appreciate the information and support.

BTW, my brother has just enrolled with CSE for the April 2-day intensive. He
is convinced your methods are the way to go. He's a recent retiree and has
seen the steady and excellent returns I've enjoyed over the last six months.
He is also impressed with the ongoing support you give to your clients. That's
important He and I are looking forward to many years of working together
using your methods.

Thanks again.

Regards,

Cliff

Dear Cliff;

Thanks for your email. That is great on your Brother!! Be sure to let Jennifer
know about this for you get something special when you have recommended
two people that end up taking the 2-Day Intensive.

I will forward this email to Aaron and he will get back to you on it.

Thanks,

Joseph R. Hooper

Joe,

it was nice to speak with you this morning. As promised, I wanted to relate
two success stories that I feel good about in regards to taking care of my 80
year old parents. They have seen what I have been able to do with your
techniques to take control of my financial destiny and make great monthly
returns with low risk. They had a $40,000 CD mature and were going to put
the money in a one year CD at a 5% annual
return. This would net them $2000 of income on that

-28-
investment. I was able to convince them to open a Brokers Xpress account
and let me manage a portfolio for them. I used one week in the end of the
January option period to buy some positions and sell some "last call" type of
calls. Those positions were called out. I then reinvested the money in the
February option cycle and had two positions close on the Delta in two weeks.
I was able to net $2200 of profit for
them in that time period. I set up an automated fund transfer relationship from
Brokers Xpress to their checking account. I sent them $2000 directly into their
account after 3 weeks. I then called them and told them what I had done and
stated that they were 49 weeks ahead of schedule for 2007! They were
thrilled to say the least and have since added an additional $40,000 to their
account for me to manage.

Here is the great part two of this story. They are in the process of selling
some rental property that they currently receive $1500 per month in total rent.
They have to pay taxes and insurance out of that money, fix toilets, look for
renters, etc. at the age of 80 years old. They are very healthy, active people
for their age but they could be doing something fun with that time. While they
are waiting to sell the properties, I
very conservatively will be able to make at least 3% per month on their
$80,000 portfolio which is $2400. So what I am able to do for them is provide
$2400 of monthly income with funds that they have been making $4000 per
year on, more than replace their rental income and they don't have to do any
of the work managing the property. In addition, they are likely to clear an
additional $120,000 of profit from the sale of the properties that they intend to
invest as well.

With $200,000 to work with I can easily provide them $6000 per month of
income and it will likely be more. They really like this plan and I feel very good
about being able to do this for my parents. Thanks for making this happen for
my family.

Best regards,

Kevin

Dear Kevin;

Hey, thanks for the email. I did enjoy speaking with your yesterday and
getting an update on what has been going on.

This is just a great thing you are doing for your Mon and Dad!! We speak of
this all the time..that being that folks have assets that are just not being
productive and with the use of our covered call/LEAPS techniques they can

-29-
increase their returns substantially.

Needless to say...the closest thing to the security of real estate...much higher

returns and none of the work and frustration is investing using our techniques.

Please keep us posted on how things go with this.

Again, enjoyed speaking with you and look forward to visiting on your next trip
to DFW.

Thanks,

Joseph R. Hooper

Joseph,

just a note to let you know how much I appreciated your presentations at the
Feb 3-4 seminar in L.A. I had already read the book and the seminar manual
before the event and had many questions. Aaron and your presentations of
the material were very informative and clarified the areas I had questions
about. But all-in-all the real value of the class is in the many current
examples of how to implement and manage the trades. Since reading the
book and taking the seminar I have implement several covered call trades
and one LEAPS trade. All the trades are going as planned with a few that will
require follow-up management after the Feb option month ends. I can’t wait
to follow these through to there conclusion using the tools you provided.

I, also, want to let you know how great the tool box is. What a time saver. I
hope you consider adding an ETF screener to the tools as I brought up in the
class to make it even more valuable. And finally in the class you mentioned
you would send out your stock list if we emailed you. I would appreciate you
sending me a copy.

Thank you again for the seminar presentation.

Al

Dear Al:

Thanks for your email. I have sent the list by another email. If you don't
receive it, please let me know.

-30-
We really appreciate your email and comments. You are doing good and
taking the exact right slow approach to learning our technique.

Please keep us updated.

Both Aaron and I look forward to seeing you in LA at the next Seminar.

Thanks,

Joseph R. Hooper

Dear Joseph;

I am a new student and still only learning. This month was the first month I
actually purchased covered calls, and tomorrow is expiration Friday. I
received Emails from BrokersXpress saying that my expiring options are near
or in-the-money. Please review your account and determine if you have
enough equity to take assignment or exercise of your expiring options.

It sounds to me like this is meant for option purchasers or naked calls, am I

correct? I sold covered calls, basically all that will happen is I could be called,
correct? I have the stock in the account that "covers" the option. If the market
closes tomorrow at 3:00 and my screen does not show that I was exercised,
does that mean I finished the month with it just expiring, or could it happen
over the weekend when they settle?

Thanks

Mike

Dear Mike;

If you own the stock and sold the calls, your calls are covered and you have
no problem.

What concerns me is that you still say everything wrong so I don't really know
if you know what you are saying. For instance you say "This month was the
first month I actually purchased covered calls......" then later on your say..."I
sold covered calls...."

I really think you do have the stock and sold the call. You will not know the
status until Saturday night.

-31-
Thanks,

Joseph R. Hooper

Jeff,

I received your message yesterday and I apologize I didn't get right back to
you. You are now set up to attend the Leaps seminar online and will receive
instructions on how to log in a day or two prior to the seminar.

Thanks,

Tiffany

Tiffany,

Thank you for your reply. I would also like to know

if there are additional handouts other than the binder
I received when attending the 2-day intensive?

Is there updated information on the LEAPS tecnique?

Thank you.

Jeff

Dear Jeff;

There are no new additions to the Binder for conventional covered calls or
LEAPS ready to send out at the moment. They will be in a few weeks.

Thanks,

Joseph R. Hooper

Dear Joseph;

in the testimonials they talk about daily emails with alerts and what to buy.
what level of enrollment is needed and what do you receive?

-32-
Thanks

Mike

Dear Mike;

Thanks for your email and question.

What you are referencing is a subscription service we offer called

"conventional covered call/LEAPS selections". It is a service that sends out
an email each time we create a new traditional covered call or LEAP it
includes the position construction, any management moves after the position
is created and then the close out position.

One has to have taken the 2-Day Intensive Seminar to be able to subscribe.
You can only subscribe if you subscribe to the toolBox. The toolBox is $80.00
per month with the selection service and $100.00 with the selection service.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Good Afternoon Joseph!

Hope you and Aaron are both well !

I just wanted to say what a pleasure it was to meet with Marc this weekend in
Boston.He helped me understand a little more. I think that I will aattend 1
more to be on the safe side. He was very thorough in his explanations. I do
have one question not pertaining to the Seminar, but rather the covered tool
box and leaps selection. My husband and I do subscribe to Covered Calls +
leaps selections, but todate I have only received one list of your choice of
stocks, and that was the day that we orginally signed up back in
January,,,around the time of the January seminar I do believe. Are we
suppose to be getting a daily email of the choice options? Are you and Aaron
going to be in Boston in March?

Thank You

Debra

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Dear Debra;

Thanks for your email. Yep, Mark is great for he has been an expert in the
use of our covered call/LEAPS techniques for about 7 years. Then on top of
that he can teach it!! Again, thanks for your comments.

Regarding the toolBox. I think what you are speaking of are the conventional
covered call/LEAPS selections that we send out during market hours. That is
a subscription service. If you subscribe to the toolBox the "selections" that we
sent out are an additional $20.00 bring the total to $100.00 for the toolBox
and the selections. If you are paying $80.00 you do not have the selections, if
you are paying $100.00 you do and should let us know so we can make sure
you are on the proper server for the selections.

The list sent to you is a list of my stocks that are used over and over to create
new positions. We sent that list to those that have attended the 2-Day
Intensive Seminar. That would explain what you received one time.

Again, please let us know if you are subscribing to the selections.

Thanks,

Joseph R. Hooper

Dear Joe,

Those of us that are designated industry professionals and licensed cannot

gain access to your monthly screener subscription. Is there a way for us to
purchase your worksheets/spreadsheets that are needed for CPR / SSR
management?

In previous COW reports it looks as if you have some services geared

specifically for industry professionals. Could you tell me more about these
services because I believe your techniques will definately help me and my
clients.

Scott

Dear Scott;

Thanks for your email.

We have many, many financial professionals from brokers to Registered

-34-
Financial Advisers using our techniques now. We give one-on-one Seminars
to them etc. They learn how to substantially increase not only the number of
accounts they have but the size of new and existing accounts.

Being very broker oriented our covered call/LEAPS techniques facilitate

"gathering assets" in a remarkable manner...it drives the street broker that
uses the old line on a prospecting phone call "I have a stock you might be
interested in"..."our research department says...." etc...it drives them crazy.....

Anyhow...we are working on being able to offer the full toolbox to

professionals. We will know in a week or so. If we cannot offer the
screener..we will be offering the CPR/SSR//worksheets services etc. So, we
are working on it and will have an answer for you shortly.

Thanks for your question and we appreciate you as a client.

Thanks,

Joseph R. Hooper

Dear Jennifer,

I left a message on your phone yeasterday but I'm not sure you recieved it.
My question is , my son wants to sign up for the 2 day Intensive but is unable
to attend until the April 14-15 in Boston. If he pays the $2,995.00 now will he
and his wife be able to attend and also future 2 Day Intensive classes free? .

As previously indicated, I am attending the seminar in Boston this week end.

Thanks,

Jim

Dear Jim;

Thanks for your note. If you Son signs up now, he and his wife will be able to
attend the future 2-Day Intensive Seminars for no charge. If they attend on
line after one time, there will be a $195.00 charge each time. This is what
Micro Soft charges us each time someone attends the on line for all the audio
and visual hook ups.

-35-
They can, however, attend the 2-Day Intensive Seminars in person as often
as they like for no charge. They can also attend at any of the locations other
than Boston (Dallas, Atlanta, Chicago, LA) also for no charge.

Thanks for your questions I look forward to meeting you in Boston soon.

Joseph R. Hooper

Dear Joseph;

How much startup capital is considered optimal? What would be the minimal?

Thanks,

Dear Sir;

Thanks for your note.

$4,000.00 min. no maximum.

Thanks,

Joseph R. Hooper

Hello,

I believe there is a service you offer where I can see the actual live trades you
are making with your own real money. How do I access that?, and is there a
separate fee?

Thank you

Thomas

Dear Thomas;

Yes, those are real transactions sent out. They originate during our one on
one Seminars.

-36-
You receive the executions of the position construction, management moves
and then the exit transaction. You receive them by email as they are done.

It is a subscription service. You get the toolbox and the covered call/LEAP
selections for $100.00 per month. The toolbox is just $80.00 per month
without the selections.

Hope this has helped you, if not, let's try again.

Thanks,

Joseph R. Hooper

Hi there:

Thank you for your prompt response. It appears that I

can sign up for the Covered Call / LEAPS Selections +
Toolbox only after I complete the seminar you offer.

I will find it difficult to attend one of your seminars, so is there any way I can
still subscribe to your service above without having completed the seminar?

Thank you

Thomas

Dear Thomas;

That is correct, you cannot sign up for the selections unless you have had the
Seminar. You can attend the Seminars on line once a month when we are
doing the Dallas Seminar which always the last week end of the month.

Thanks,

Joseph R. Hooper

Dear Joseph;

I've listened to the radio program and am very curious. Question: Does your

-37-
book 'Covered Calls & Leaps' take the place of the seminar? Same material?
I can't afford the seminar but would like to learn the techniques. Please let me
know.

Thanks so much,

Kevin

Dear Kevin;

The book is complete. The seminar is like any seminar, you will accelerate
your success with the Seminar, it will pay for it's self many times over, but the
book gives you all you need.

Thanks,

Joseph R. Hooper

Hi Joe -

What a nice surprise to see the email regarding re-taking the seminar for
free. I will try to re-take it in the near future.
I learned a lot in the month since taking the seminar in L.A. and my trades are
going swimingly.

Thank you, Joe -

Linda

Dear Linda;

Thanks for your note. We appreciate you as a client and I do look forward to
seeing you in LA again soon. I am so pleased that your positions are doing
well. Just remember to call or email when you have any questions.

Thanks,

Joseph R. Hooper

-38-
Dear Mr Hooper

I attended for the first time two day intensive seminar at Hilton Hotel in
Dedham,Massachusetts. I paid for the seminar in April 2005 but could not
attend due to personal circustances until now.

It was an excellent seminar. Mark Dannenberg is not only very

knowledgeable he is also very helpful. His presentation was clear and he
made sure that we understood the concepts and practical details of the
strategies.

Thank you.

Sincerely

Madhukar

Dear Madhukar;

First, thanks for attending our 2-Day Intensive. Second, thanks so much for
your comments about Mark. He is an absolute gold asset to us for two
reasons. He is a great educator and he is an accomplished investor with our
covered call techniques. There is not better teacher than one that is actually
accomplished in what is being taught.

Again, thanks for your comments and I hope meet you at the

Seminar in Boston soon.

Thanks,

Joseph R. Hooper

Dear Joseph

i bought your book and am slowly digesting it as time allows. if i download

your archived radio shows to listen to later can i

load them on my ipod to listen to on the treadmill?

thanks!

-39-
also if i attend the chicago seminar i will probably take the southshore train up
from south bend indiana, or the shuttle up to ohare. which would be better?

thank again!

fred

Dear Fred;

Thanks for your note. Yes, you can down load the radio shows off our
website, www.compoundstockearnings.com. Just right click on the radio show
and download to an MP# player. As you have an iPod you can go to iTunes
put "unconventional wisdom" in the search area and then download to an
ipod.

I will have Tiffany get back on the best route the hotel in

Chicago.

Thanks,

Joseph R. Hooper

Dear Joe:

I attended the 2-day in Boston on 2/10-11, with Mark Dannenberg doing the
honors. I had attended the Dallas seminar in October put on by Aaron &
you. At the end of the Dallas meeting, my head was swimming trying to put
together everything. My personality is such that everything has to in line
before a decision is made to move forward. Needless to say, after three
months, I still had not got on the horse.

That's is when I decided to take a refresher course in Boston. I must say a

learn a lot more on the second time around. Mark did a very good job in
clearing up the questions in my mind. So much so, that I plan to go "virtual"
to get my confidence in gear. I do own a stock that would do well with TSS or
JFC. I also have an IRA account set up with Brokers Xpress.

Again, I want to thank Mark for doing a great job. Looking forward to seeing
you and Aaron in Boston in March

Regards,

-40-
George

Dear George;

Thanks for your email. Listen, it is important to attend the seminars on a

frequent basis for you always pick up things that were missed. We appreciate
your attending the Seminars. Yep, Mark is just great and knows what he is
speaking about having been using our technique for around seven years now.

Yep, Aaron and I will be doing the Boston Seminar in March, so hope to see
you there.

Thanks for being a client, we appreciate you.

Joseph R. Hooper

Dear Joe,

I have just returned from the 2 Day Intensive in Boston,Dedham-Hilton,

conducted by Mark. He did a great job giving us all the whats and wherefors
in a very smooth delivery.

I would like to mention how much I enjoy reading the Cow Report every
saturday morning. I look forward to it each week and I learn so much from
the email exchange between you and your clients.

My son is now interested in taking in the the 2 Day Intensive in April in

Boston, however he is older and will be a paying customer.

Thanks for all your help.

Jim (and still your only client from Maine.)

Dear Jim;

Well, thanks for your email. I know it must be cold us there and we appreciate
you taking the time to email.

Yes, Mark is just great. He knows what he is speaking having used our
techniques for around seven years. Unusual to have a good teacher that
actually has experience with what he is teaching.

That is great about your Son's plans to attend the seminar in Boston.

-41-
Mark will not be able to teach the March Seminar in Boston due to another
commitment. Aaron and I will be there so hope you can attend in March.

See you later and stay warm..

Joseph R. Hooper

Hi Joe,

I just got back to New York from the Boston Seminar it

was great.

Mark Dannenberg was excellent he was very generous and

I received a lot from his teaching.

Very happy to be member of the CSE group.

Joe, I have a quick question. I am looking at a broker

by the name of http://www.TradeKing.com do you know of
them and would you recomend them ?

Thanks

Nick

Dear Nick;

Thanks for your comments. We really are lucky to have Mark doing the
Boston Seminar. Here is the difference, Mark actually has been using our
techniques for many years...he knows what he teaches and then he is a great
teacher on top of actual experience!!

We really appreciate your comments. Now regarding TradeKing. We do not

have experience with them but we have a lot of clients that do use them and
they have only compliments about the service etc.

Hope this helps, if not, let's do it again.

Aaron and I will be teaching the Seminar in Boston in March (second

weekend, I think). mark has another commitment but he will be back in April.
Hope to see you there.

-42-
Thanks,

Joseph R. Hooper

Good Morning Joseph,

I attended the LA 2-day seminar Feb. 3/4. I was the person with all the
Countrywide stock. Because the market happened to be at the top of a cycle,
you recommended me to STO the Jan 08 Call at 8.60 on Monday Feb 5 with
a $2.25 (5%) target drop to 6.35. I couldn't actually do that because I did not
have an options trading account. However, I notice those calls opened today
at 6.30 ask.

I'm sold!

My account was set up on Friday. I guess I need to wait for another market
peak? Or is there something else in CFC I should be looking for?

Best regards,

Larry

Dear Larry;

See, it only cost your $20,000. You have such a great income producing
stock. It just follows the best pattern. You are correct, it is on support and
needs to go back up to resistance before you sell the call. Last month you
could have sold and BTC at least four times. Remember the "v" is important
whether it is turning over at support or resistance.

You have a great JFC opportunity at this time (6:20 am cst, pre-market,
2/13/07) if you sell the Feb 07 42.50 for .25. I think you have around 5,000
shares or something like that so you are talking about a free $1,000.00 for
just a few days (expires on Friday).

Hope this helps, if not, let's try again. If you want to do the JFC give me a call
and I will walk you through it.

Hope to see you in LA soon.

Joseph R. Hooper

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Hi Joe:

I attended the 2 day intensive seminar in January in Chicago and enjoyed it

very much. Mark did an excellent job at the seminar, he was very informative
and professional.

Now I'm getting my feet wet with your program and can hardly wait till
February 16 to see how I do in my first month. After I read your book back in
November, I did some paper trading, but real live money is certainly more
exciting.

If you would, I would like to get a copy of your 250 stocks that you trade for
covered calls.

Thanks, for sharing this program with your clients and I look

forward to meeting you someday.

Jack

Dear Jack;

Thanks for your email and comments about the Chicago Seminar.

Yep, Mark is a real treasure. He cannot only teach, but he know our
techniques for he has been using them for seven years.

I am sending the list by another email. If you don't receive it, please let me
know.

Thanks,

Joseph R. Hooper

Hello,

I intend to sign up for one of your intensive 2 day

seminars. Can spouses come along for free (or a
discount)?

Regards,

-44-
Tim

Dear Tim;

Thanks for your note. Yes, spouses can come for free and can repeat for free.
If on line, after the first on line Seminar there is a charge of $195.00. That is
the amount that MSFT charges us for the audio and other hooks up per
person for the on line Seminar.

Thanks,

Joseph R. Hooper

Dear Joseph;

I love coming each month and have done so since September - every time I
learn something vital. Extending this to new comers again is really great - I
continue to be impressed with how you guys operate.

Maggie

Dear Maggie;

Well, your sure welcome!! You are an asset to us and we think it is great that
you attend the Seminars on a regular basis.

We appreciate you.

Thanks,

Joseph R. Hooper

Dear Joe,

I really appreciate the time you took out of your busy day to remind me of
yours and Aaron’s comments and rules from past seminars. Yes, I realized
after I had sent the email that my flurry of rash statements were not proper as
to following your teachings – I was missing something. But I was putting it all
in the context of my first ever trade; as a nubie, I would have really been
bothered by my first effort not running smoothly.

-45-
Also I am SO GLAD you reinstated the “free forever” seminar re-attendance
policy. Please keep it that way. The fact that you had changed it after stating
in the past that we could come back as many times as we wish for free tells
me that nothing is for sure, so I guess anything can happen… I have been to
two repeats and picked up new tidbits of knowledge each time.

One problem that I have which may keep me from ramping up as quickly as
I’d like is that I cannot use my company computer during the day for personal
activities. So, I have to do my research at night and then call Gregg with BX
to handle my trades. So far it’s gone pretty well for me.

David

Dear David;

Thanks for your email. Listen, don't worry about not being able to get to a
computer to enter trades during the day. Many times that access makes folks
"mess" with things when they should not be doing so. The technique is
designed to use GTC orders. It is working for you, don't worry about it.

Thanks for being a client. Just call or email when you have a question or
comment.

Joseph R. Hooper

Hi Joe:

It took a while, but we are now up and trading covered calls. Recently signed
up for the CC Leaps Selection , and right out of the gate made another 4%.
This is kinda fun making money.

Anyway the reason for this email is to ask you if possible to put us on the fund
list, and to ask for your list of preferred stocks, that way I will have a selection
available to monitor.

Thanks Again

Paul

Dear Paul;

Thanks for your note. That is great on the return!!

-46-
I just sent the list of stocks, if you don't receive them, please let me know.

You are on the fund list.

Thanks,

Joseph R. Hooper

Hey Joe,

could you send me your list of 200 stocks you use, and by the way, of those
which 2 or 3 are your favorites?
Also, I was just wondering when you might have a leaps seminar in Chicago?
I'll be at the covered call seminar there this weekend, I always learn a great
deal.... Just awesome...

Thanks!!

Stan

Dear Stan;

Thanks for your email. I am going to send the list in a few moments. If you
don't receive it, please let me know.

We don't plan a LEAPS Seminar in Chicago at this time. We will be doing

them every other month from Dallas live and on line.

We appreciate you as a client and appreciate you attending our Seminars.

Just call or email when you have any questions.

Thanks,

Joseph R. Hooper

dear joe,

I would like to come to your defence in regards to a letter from David on page
37 of last saturdays cow report. Unless there was more than one RACK
posting in November here is what i did on the same position,.

-47-
On Oct 26 Buy Rack @ 28.2 STO Nov 30 @ 1.25

Stock was called out profit of$3 per share or 11.1% WOW if they all could
be like this one it would be like christmas every day. Just wanted to let you
know that one was a home run. Who cares what the stock has done since.

yours truly,

Doug

Dear Doug;

Thanks for your email. You did good!!

Keep us posted on your activity.

Thanks,

Joseph R. Hooper

Dear Joseph;

what do you think? (ccrt)

With Regards,

Mike

Dear Mike;

Looks good, right place on the chart and a stock that meets all the Criteria.

I would do this one.

Thanks,

Joseph R. Hooper

Hi Joe,

Have your book; attended the 2 day intensive here in Chicago in January and

-48-
am returning this weekend to enjoy more of Mark’s instruction. (He is so
patient). And I have my first trade on. Love the whole concept and am
grateful for your work.

I keep reading requests for your list of stocks and am now curious myself.
Would you be so kind as to send them to me?

Thank you.

Cordially,

Tim

Dear Tim;

Thanks for your email. We just sent the list of stocks by another email. If you
don't receive them, please let me know.

Well, congrats on getting started. You cannot have a better person to teach
you than Mark!!

Please keep us posted and when you have any questions, please call or
email.

Thanks,

Joseph R. Hooper

Dear Joseph;

Thanks for a great January seminar in Dallas . Nothing beats being there in
person. I have a stock (position entered before the seminar) in limbo right
now and I need your advice. Stock took a dive and I collected my call
premium then sold a leap against it. Stock immediately turned up and
continues in that direction. Can I buy back my leap at a loss, subtract that
from my premium received, and do a CPR?

Thanks,

Kevin

-49-
Dear Kevin;

Thanks for your comments. We appreciate you attending the Dallas Seminar
in January.

If you will send me the actual details on your position, I will get back.

Thanks,

Joseph R. Hooper

Dear Joe,

I wanted to thank you for the great seminar last month in L.A.. You and
Aaron do a wonderful job. My daughter and I traveled from Idaho, the
seminar was worth every mile. We met many wonderful people. I opened an
account at optionsxpress, I am virtually trading and also trading a couple of
positions with real money. So far so good. Would you please put me on your
list for your upcoming CSE managed fund, and also send me the list of
favorite stocks you mentioned at the seminar.

Thank you,

Brian

Dear Brian;

Just sent the list of stocks by another email. If you do not receive it, please let
me know.

You are on the list for the fund.

Thanks for your comments about the LA Seminar. That just make us feel
great when one puts so much effort in just to get to the Seminar and then
really benefits much more than the travel effort.

Please keep us posted and let us help you. Just email or call when you have
any questions.

Thanks,

-50-
Joseph R. Hooper

Hi,

Can you tell me how often and when I should expect to

receive the Covered Call/Leaps selection emails?

Thanks

Ira

Dear Ira;

You will receive new position creations on down market days. You will receive
management moves and close outs every day.

On down days there can be a many as 10 to 13 new positions.

Thanks,

Joseph R. Hooper

Hi Joe and Aaron:

I just had to send an email to tell you what a great job Mark did this past
weekend at the Boston Seminar. His teaching complements your and Aaron's
presentations so well it is a joy to attend the seminars by you all. I think I am
finally getting the management concepts!

Thanks,

Niles

Dear Niles;

Well, thanks so much for your email. Yes, Mark does a super job, we are so
lucky to have him on our team.

Aaron and I will be doing the March Seminar in Boston since Mark has
another obligation but will return for the April Seminar in Boston.

-51-
Look forward to hopefully seeing you in Boston in March.

Thanks,

Joseph R. Hooper

Dear Joseph;

Hi, I enjoyed participating in my first Online Coaching Seminar this a.m.

Unfortunately, I had to miss the first part, and would like to listen to it. I
understand that the sessions are archived - could you let me know how I can
access and listen?

Many thanks,

Jim

Dear Jim;

Thanks for your email. Yes, they are archived and I will get this email to
Jennifer and she will get you the instructions on how to access.

Thanks for attending the Coaching Session.

Joseph R. Hooper

Hi Joe -

Happy Valentine's Day!

I am sorry for the miscommunication on Tuesday. My mother told me that

you called looking for us. I think my dad and I both thought the other had
called you to let you know that we needed to skip this week. Anyway, we
need to take a pass tomorrow (Thursday) as well. I am in the middle of
switching brokerages right now, so I won't be able to make trades until that
gets finalized and assets moved over. I suspect that means that we will
probably skip next week as well, but I will keep you posted.

I will call or email when we are ready to start up again.

Melissa

-52-
Dear Melissa;

Thanks for your note. No problem, we will just pick up next Tuesday.

It is really funny. When I called for the Seminar....your Dad was here in our
office with his barber shop quartet singing!!! I did not know that they were
going to do that so it was a perfect delight!!

See you later.

Joseph R. Hooper

Jennifer,

Thank you, that worked. A quick question. After reading the book and
watching the enclosed DVD, I would like to try this method of investment. At
this time, I don't want to commit $3000 for a two day seminar. I will stay with
the basic covered call and TSS described in the book. What are my chances
for success plodding along without the seminar?

I would plan on using the toolkit. Also are you available to answer basic
questions that I would have along the way?

Here is a first question. I ran the CSE using the defaults tonight. It is 2/14/07
and it came up with no stocks using Feb calls. Is that because it is the middle
of the month? I did get 12 stocks using March calls. Should I wait for the first
of next month to evaluate stocks?

Here is a second question. My job as a pilot takes me away for up to six days
at a time with my schedule changing each month. Sometimes I have internet
access, sometimes not. Is it critical to check on investments daily or at
certain times of the month or option cycle?

Regards,

Dave

Dear David;

Thanks for your email.

-53-
You can be totally successful by just following the book. If you want to ramp
up quicker and start making returns quicker the Seminar more than pays for
itself. You actually lose more in returns by a slower ramp up than the Seminar
cost.

We are available to answer your questions by email. Just email when you
have a problem, thought or comment.

Regarding the defaults in the toolBox. They are for a full option month. You
need to reduce them as the month passes. In other words, if you use 2.5%
half way through the month, you will have lots of selections. 2.5% for half a
month is the same as 5% for a full month.

Regarding your access to check on your positions. Our traditional covered

call techniques are structured such that you can create a position at the
beginning of the option month and forget about it until Monday after the third
Friday. You know exactly what you are going to make if called out or if not
called out. All correctly constructed positions never lose money on a call out.
The only downside of not having access on a regular basis is the fact that
there may be some return "enhancements" that you miss, but that is not
important if you don't have access. You still will make you returns and you
know exactly what those returns are if you do nothing after creating the
position.

Hope this helps, if not. let's try again.

We appreciate you buying our book. Please keep us posted on how things
go.

Thanks,

Joseph R. Hooper

Hi Joe!

Just wanted to say that many questions that I had were answered and I have
a better understanding of the rules of managing positions.

Mark did an excellent job representing CSE. He talked a lot about you and
Arron and your devotion to CSE. He also kept talking about a spy cam behind
the screen!!

I am so fortunate to have heard your show on the radio.

-54-
Thanks Again!!
Retiring Soon!!

Robert

Dear Robert;

Hey, thanks for attending the Seminar in Boston again!! Yep, Mark is great
and the reason for that is that he is a class A educator and then on top of that
he has almost seven years of using our techniques!!. Not often do you find
someone that can teach and has actually been accomplished in what they are
teaching!!

Yep, that spy cam is there....just moves around each time.....

I am exciting that maybe we are contributing to your ability (financial or

mental) to retire earlier than you might have had you never heard the radio
show. That makes us feel great!!

Robert, thanks for being a client, we really appreciate you. Hope to see you in
Boston soon.

Thanks,

Joseph R. Hooper

Hi Joe,

As I mentioned in my last e-mail, I am just getting started with my account-

and am very pleased with my first month's 5% return.

My next step will be to manage my mother's stock portfolio for her. I have
explained the basics to her, but she is wary of selling any of her stocks, so my
plan was to TSS for income and then put the profits into new positions. She
has quite a lot of GE, INTC, MSFT, AMAT, QCOM, BA, XOM to name a few.

Although TSS for income was mentioned during the seminar last weekend, I
feel like there must be more info I need to be aware of to manage these
sucessfully. Any advise you can give on what kind of returns I can expect on
these stocks, and how best to manage them would be greatly appreciated.

thanks

-55-
Steven

Dear Steven;

Thanks for your email. Well, sounds as if you are getting off to a great start
with your first position.

Regarding your Mom's stocks, the TSS for income is a great technique to use
to produce income of around 4% to 5% based on what was paid for the
stocks or the market value whichever is greater.

I would really just like to discuss the use of the technique on the phone for it
would be quicker and we could take a couple of the stocks mentioned and go
through the TSS steps.

If you would just give me a call we can discuss the technique. If I am not in or
on the phone, I will call back. Monday and Wednesdays are the best days to
call.

Thanks,

Joseph R. Hooper

Mr. Hooper,

I just wanted to say thanks for extending the free repeats of the 2-day
intensive to existing clients like myself who started a little later. Many other
companies would never take that into consideration, especially if their
programs worked as well as the CSE program. After trying other programs, I
never thought I would recoup the cost of the CSE program, plus some of the
money I blew on the other programs so quickly.

Now for a few questions. I was planning on taking the Leaps program and
was wondering if repeats were free, and if the price was going to increase
too? Do you and Aaron ever teach the Chicago 2-day intensive? Also, can
you put me on the list for the CSE fund and send me the list of 200+ stocks
Mark from the Chicago intensive said you follow regularly

Thanks,

Brian

-56-
Dear Brian;

Thanks for your email and comments.

Your sure welcome..we try to make it easier for our clients to become more
efficient with the use of our techniques. The ability to re-attend the Seminars
is an important part of the process.

Let's look at your questions:

Question #1: "I was planning on taking the Leaps program and was
wondering if repeats were free, and if the price was going to increase too?

Answer: The repeats will be free. We will be raising the prices on the LEAPS
Seminar at the same time we do on the 2-Day Intensive.

Question # 2: "Do you and Aaron ever teach the Chicago 2-day intensive?"

Answer: Sometimes Mark has other obligations and we do teach the Chicago
Seminar at that time. However, we will start attending the Chicago Seminar
just to meet others and do a portion of the Seminar with Mark.

Question # 3: "Also, can you put me on the list for the CSE fund and send me
the list of 200+ stocks Mark from the Chicago intensive said you follow
regularly"

Answer: I am send the list by another email. If you don't receive it, please let
me know.

Brian, you are doing great. You are making money!!

You will not believe how fast your assets will compound.

Please keep us posted and I look forward to seeing you in

Chicago.

Thanks,

Joseph R. Hooper

Hi Joe,

-57-
My very first TSS (on AVR, bought at 22.56 on 12/19) was bought back on
Friday. It was 15 Jun 07 call (sold for 3.1) bought back for 2.75 as you
suggested at the L.A. seminar, netting 1.35% in 10 days. Yea! (that's added
to the 4.9% I got
previously)

Now, it looks like it's at support and I should wait for the
next peak to TSS it again. Do you see it this way?

I could make a case that in the down-trending channel starting

at the end of December, it is still in the upper 75%. Is there
some amount it could drop early this morning that would lead you to say the
support was broken and so TSS it again right away? I don't remember you
ever saying anything like this. You did say that it's hard to mess up TSS'ing a
downtrending stock.

Anyway, I really want to learn to do TSS's right 'cause it looks like I'll have
plenty of opportunities.

Thanks for all your help. It's amazing and gratifying that you
spend so much time helping your new students. I truly, truly
appreciate it.

Jon

Dear Jon;

Thanks for your email. The stock AVR is on support right now. So TSSing is
not an option.

It is true that you cannot mess up a TSS on a down trending stock. However,
no need to push fate.

AVR has a shallow movement and you will be able to TSS in a few days.

Hope this helps. We really appreciate your nice comments and we really
appreciate you as a client.

Thanks,

Joseph R. Hooper

Mr. Hooper,

-58-
I've been successfully using the CSE method for several weeks now and I
recently had a GTC BTC order fill which closed a TSS with a nice profit. But
since this position has continued to move down it has raised a question.

While I don't have time to monitor my positions constantly throughout the day,
I am usually able to look at them midday, plus I always look at each position
after market close to monitor any change in direction.

Since I am always able to monitor each position at least daily, I'm wondering if
I would be better off not using a GTC order in order to maximize potential
profits by allowing a position to continue to run down.

I'm not looking to "break the rules", but if I am able to increase profitability
through management, would that be OK?

As always, your advice is appreciated.

Regards,

Bill

Dear Bill;

Thanks for your email. Sounds like you are doing well.

To answer your question, No. What you are doing is trading speculation for a
sure thing. Go for the 5% returns on buy backs etc. Don't try to get the "best"
execution each time based on speculation.

Thanks,

Joseph R. Hooper

Dear Jennifer;

Thank you for this heads-up Jennifer – it is really appreciated.

I would like you to know in return for your professional follow up to your
challenging new telephone system installation issues, that I was fortunate to
be able to get through to CSE phone support today around noon ET & spoke
with Tiffany who was exceedingly helpful with my issues. I commend both
her & CSE for your high level of customer service.

-59-
Good luck with your new phone system & I look forward to working with
Compound Stock Earnings now & going forward. CSE’s customer support
has been exemplary from the start (Jan 9, 2007).

Thanking You I Remain,

Sincerely,

Ancora Imparo…

Russ

Dear Russ;

Thanks for your comments. I will make sure that Tiffany gets this email.

We really appreciate you as a client and now we can speak with you more.

Thanks,

Joseph R. Hooper

Dear Joseph;

Have you planned a one day leaps seminar for Los Angeles yet?

Thanks,

Ed

Dear Ed;

Thanks for your note. We have not planned a Los Angeles LEAPS Seminar
as of this time. For the moment, the LEAPS Seminar will be conducted from
Dallas live and on line.

Thanks,

Joseph R. Hooper

Dear Joseph,

-60-
A quandary. If BBY Jan 08 35 has a delta of .92, how is it that today, when
the stock went down $0.54 the Jan 08 35 call went UP 20 cents! SHouldn't it
have gone down about 49 cents?? Puzzled,

Steve

Dear Steve;

Who knows and what difference does it make. Don't waste time with that kind
of analysis, it does not mean anything.

Thanks,

Joseph R. Hooper

Dear Joseph;

Obviously my wife understands my psyche…

Orrin

-61-
Hi Joe,

I attended the Boston seminar last weekend and was very impressed with
Mark. It was my second time going and I was able to grasp the concepts a lot
better this time around. It’s reassuring to know that if you personally can’t
make it that you have very qualified instructors to take your place. My
confidence level in trading this week is much better. I love this method and
thank you greatly for sharing it.

Regards,

Steve

P.S. In keeping with the acronym theme at CSE, should Mark be referred to
as a SIR (Surrogate Instructor Replacement)?

Dear Steve;

-62-
Thanks for your great email!! I love that designation, SIR!! We are going to
adopt that.

Mark is super because he is just not a great Seminar giver, but he has seven
or so years with our technique and never a loss (except once when he
violated a rule).

We really appreciate your comments. Aaron and I will be giving the Seminar
in Boston in March for Mark has another obligation.

He will be back in April.

Come again and see us.

Thanks,

Joseph R. Hooper

Hi,

I'm thrilled to be working my way through the book. It is just amazing that I
keep looking for the smoking gun of why it won't work, and I'm leaning very
strongly toward it doesn't exist. The further I get the easier this seems to be.

I do have one question that I may be making hard on myself. In the book
when It talks about buying back the call - I'm not sure what I am picturing
there.

$20 stock price, covered call for $1.00, the stock goes up to $22, so the
option price goes up lets say to $1.60. The call is excersised, does the buy
back mean that I buy an option at $1.60 and immediately excersise it and sell
the stock at $22?thank you, and I look forward to reading the book a couple
more times then more than likely coming to a seminar.

Herb

Dear Herb;

Thanks for your email and questions.

It really helps to read the book a couple of times to grasp the use of our
technique. The best thing to do then is to "virtual trade" which is just like being

-63-
in the market but you don't have any real money at stake. Most modern
trading platforms have "virtual" trading and they are really "real".

Let's look at your question: "$20 stock price, covered call for $1.00, the stock
goes up to $22, so the option price goes up lets say to $1.60. The call is
exercised, does the buy back mean that I buy an option at $1.60 and
immediately exercise it and sell the stock at $22?"

Answer: No. The "buy back" is a "management" tool we use to manage a

position. Has nothing to do with being exercised. If you are exercised you are
paid the strike price of the call you sold.

Your stock goes out of your account being replaced by the cash.

You also keep the premium you received for selling the call. You do not buy
back the call , exercise it and then sell the stock.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Joseph,

Joseph;

Excellent, starting to be a little clearer. I’ll read through it a couple of more

times and see if I figure out the “buy back”.

It’s not clear to me yet. I’ll e-mail back if I’m still stuck.

Thank you for the response, I look forward to the “wealth” of knowledge I’m
getting.

Herb

Joe,

I'm a friend of Orrin's who attended the class first

in December.

On 2/5, a new CC position on ARXT was suggested by

your emails.

-64-
I entered a little later in the day, as follows:

Bought 200 ARXT at 44.97.

STO 2 PKQBI ARXT Feb 07 45 calls at 1.55

Within a day or two the stock dropped out of my

perception of the trading channel. I gave some
thought to doing a CPR both Wednesday and Thursday
last week but, perhaps since I've never done one
before, I hesitated.

I was thinking maybe the stock is forming a new chanel

(maybe horizontal -- but who knows at this point) at
this lower level.

I thought I'd let the call I have now expire this

weekend and then think about a TSS next week.

But I notice that there are no longer term calls and

no LEAPS available. Calls now are just the Feb, Mar,
Apr and Jun 07.

Is a TSS possible just 2 months out (Apr?).

If you have a minute to look at this, could you give

me your thoughts on this?

Dale

Dear Dale;

Thanks for you note.

First, just let it expire.

Second, it will probably form a new formation in a day or two and we can start
TSSing again.

There are calls all the way out to July not June. There are plenty to TSS with
with great premiums.

Hope this helps, if not, let's try again.

Thanks,

-65-
Joseph R. Hooper

Joe

I have been following the tool box. However, over the past week, most days
there are no recommendations to look at, using the default settings.. Is this
typical?

Wayne

Dear Wayne;

Yep it is. The default settings assume 4% to 5% from the first of the month.
All you have to do is lower the rates as the month goes by. For instance, if
you put in 2.5% half way through the month, you will have pages of
selections. 2.5% for half a month is the same as 5% for the month.

Thanks,

Joseph R. Hooper

Dear Joseph;

I bought the book recently and listened to the 2 hour presentation last night.
In that presentation,the moderator mentioned an Option Broker that was best
to start with due to having only to pay $3/trade.

Please send me the name of that Broker.

Thanks

Bill

Dear Bill;

Thanks for your email. That broker is brokersXpress. The gentlemen you
should call is Gregg. His phone number is

-66-
1-800-233-9605.

Hope this helps.

Thanks,

Joseph R. Hooper

Dear Joseph,

thanks for the Cow Report. Very interesting information.

I am writing to you from Bad Toelz, Bavaria, Germany. Two weeks ago I
accidentally came across your homepage. As I am interested in option
strategies and covered calls in particular and have been investing according
to that approach with more or less success over the last two years, I
registered for the Online

Introductory Seminar last week. Yet our two little girls had caught the flew and
the night before the seminar my wife and I did not sleep at all. So I had to
make up for that the following night, which meant that unfortunately I could
not attend the seminar (it takes place from 2 to 4 in the morning german
time).

I will try again in one of the following weeks. I also found out that your book is
available here in Germany via Amazon and I am thinking of ordering it. But
before I do, please answer me one question, which is the reason why I write
this mail: What would the returns look like (or what did returns actually look
like) following your approach in a market that we saw between 2000 and 2003
or even worse in an decade long decline like the Nikkei experienced?

Thank you ever so much for your response.

Sincerely

Kai

Dear Kai;

Thanks for your email and comments.

Well, I hope the girls are better now and you and your wife are getting more
sleep.

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Actually, you can attend the exact same 2-hour Introductory

Seminar anytime you wish. Just go to our website,

www.compoundstockearnings.com and click on the button at the top right of

the site that says "2-hour Introductory Seminar". It is not live but recorded but
the same information.

Regarding your question "What would the returns look like (or what did
returns actually look like) following your approach in a market that we saw
between 2000 and 2003 or even worse in an decade long decline like the
Nikkei experienced?"

Answer: Our returns never change as a result of market conditions or

directions. Our techniques have nothing to do with speculation but rather
"management" of positions with the covered call tool.

That is the beauty of our techniques. Our returns have never been less, on
average, than 4% to 5% per month with conventional covered calls. Many of
our clients do better. We have many clients that have averaged those returns
for over 7 years now regardless of market direction.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Dear Joseph;

thanks for the hints. Please leave me on the mailing list for the

cow report. Interesting stuff!

One other question. Do you have other germans among your clients i.e. on
your mailing list. If so, could you forward me names, numbers and mail
adresses? I would like to get in touch and share experiences.

Thanks a lot.

Sincerely,

Kai

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Dear Joseph,

The Countrywide Call we BTO yesterday (CFCBV) for a JFC is getting very
near the strike price of 42.50. I know we are OK now, but just to make sure I
would like to confirm when I should start considering a TSS for Defense. (I'm
guessing 42.30 with the .20 rule). Or whatever else you would recommend.

Thanks for your help.

Best regards

Larry

Dear Larry;

Just tried to call you but got answering machine.

The stock is only 42.02 at the moment. No problem. Let's talk and map our
strategy just in case we need to TSS. But the stock is pretty much on support
at the moment.

Thanks,

Joseph R. Hooper

Hi Joseph,

It seems that January was a more obvious month for my portfolio as far as
TSSing goes. Most of my holdings were clearly at the top of their price cycles
and I was quite successful in all my TSS positions. February has been less
clear and provides another reason to look forward to the March seminar
where I hope more of the subleties of chart cycles will be discussed and
illustrated.

Currently looking at GE & PFE which both seem to have broken through
support and continue to trend down. I'd been waiting for them to cycle up
before TSSing again but wonder if now is the correct time. Also wonder what
you think about the DOW Jan08 35 which I sold for 7.80 on January 22 and
which closed today at 8.30. Am I correct in believing that I should have BTC
after the first "V" around January 30th? Still unclear on some aspects of exit
strategy.

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As always, Thanks and Best Regards,

Robert

Dear Robert;

Thanks for your email and comments.

Regarding GE, it can be TSSed when it reaches around 35.90 right now it is
at 35.64.

Regarding PFE it cannot be TSSed until it reaches around 256.68, right now it
is 26.22.

Regarding DOW, yes you should have bought it back on the first "V".

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Joe –

I have been telling the members of a stock trading club that I belong to about
you, Aaron and CSE and urging them to buy the book or go to the CSE web
site and sign up for the free two hour seminar. They have asked that I give a
talk at an upcoming meeting about the book and the techniques presented
therein.

Before I say yes I wanted to make sure that I was not violating any copyright
or other laws or doing something that would offend CSE. Thanks again for all
you and CSE do to help us folks out here in the investment trenches.

John

Dear John;

Thanks for your note and comments.

That will be just fine. No problem. If you or they have any questions after your

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"book review" just call or email and we will get right back.

Thanks,

Joseph R. Hooper

Mr. Hooper:

I'm curious as to the minimum time commitment you believe should be spent
to make your program work? Also, what type of balance you one have to
really get started and what kind of learning/initiation curve can be expected
until one can see the results you mention? I work full time therefore have
minimal time to watch the market and am trying to use alerts and GTC orders
at predetermined buy and sell amounts, which really doesn't allow me to work
with the market direction of the day. I've was playing with cover calls in my
IRA, then heard your radio program and sat in on your Tuesday intro a while
back and now have read your new book. As good as the book is, I really
think I need to attend your intensive to comprehend the discipline needed
(fear lack thereof is hurting my returns right now) and understand better the
finer details. I have a Waterhouse account, check that - Ameritrade account,
and I don't think they give me the flexibility to fully implement your program in
my IRA - do you know if this true (can't seem to find a fully trained
representative to give me a straight answer)?

Thanks for your time,

Glenn

Dear Glenn;

Thanks for your email, questions and comments.

Let's just look at your questions:

Question # 1: "I'm curious as to the minimum time commitment you believe

should be spent to make your program work?"

Answer: If you are doing conventional covered calls you are looking at about
two hours a week either during market hours or after.

Question # 2: "Also, what type of balance you one have to really get started
and what kind of learning/initiation curve can be expected until one can see
the results you mention?

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Answer: You can start with $3,000.00 or $4,000.00. This will not allow any
diversification but you will get started and that is what is important. Your
returns will be immediate..no learning curve.

Question # 3: "I work full time therefore have minimal time to watch the
market and am trying to use alerts and GTC orders at predetermined buy and
sell amounts, which really doesn't allow me to work with the market direction
of the day."

Answer: Our technique is designed to be used not during market hours. Many
times those that just are limited to after hours do better for they follow the
rules and don't mess with things after a position is created.

Question # 4: "As good as the book is, I really think I need to attend your
intensive to comprehend the discipline needed (fear lack thereof is hurting my
returns right now) and understand better the finer details."

Answer: The Seminar is always useful and does make you more efficient with
the use of our techniques.

Question # 5: "I have a Waterhouse account, check that - Ameritrade

account, and I don't think they give me the flexibility to fully implement your
program in my IRA - do you know if this true (can't seem to find a fully trained
representative to give me a straight answer)?"

Answer: These brokerage companies are "your grandfathers". They are

totally out of tune with what opportunities are available with covered calls.

Glenn, thanks for your questions and comments. Hope this helps, if not, let's
try again.

Thanks,

Joseph R. Hooper

Perfect, thank you for your time.

Sincerely,

Glenn

Dear Joseph;

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Can you add the stock selection (email ) to my tool box?

Thanks.

Camille

Joseph;

Do I need to do anything, or will the selections just show up in my inbox?

ABout how many a month should I expect to see?

Thanks.

Camille

Dear Camille;

Selections are sent out on down days when we create new positions be they
conventional covered calls or LEAPS. Then you will receive any management
moves and you will receive the close out transactions for the positions.

You receive these by email as we do them. Some days you may have one or
two some days you may have 13 as was the case yesterday when the market
was down all day.

Hope this helps, if not, let's try again.

Thanks,

Joseph R. Hooper

Joseph

I am planning on attending the online seminar on Tuesday Feb 13th. Am I to

understand that the sound does not come over the computer and is done by a
long distance telephone call? If this is so is the conference call 866 number
a toll free number or am I going to have to pay long distance charges for it. I
thank you in advance for your timely answer to my question.

Phil

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Dear Phil;

Nope, it is a free number.

Look forward to seeing you at the seminar.

Joseph R. Hooper

Hello Joe or Arron,

Can't say how happy I am that I found your program, and attended your
seminar. Now I just have to learn the rules.

I purchased 300 shares of ARXT on Feb. 5 at $45.36 and STO Feb 07 45

(PKQBI) at$1.80 (soon after CSE purchased ARXT) The stock is now trading
around $40.42
and the call is .10. Would this be a good time to buy back the call, and then
TSS the stock later, or should I just let the call expire?

Thanks for your help,

Carter

Dear Carter;

Just let it expire.

The stock is on support and will be making a new formation in a day or two so
we can TSS.

Thanks,

Joseph R. Hooper

Mr. Hooper,

I've been successfully using the CSE method for several weeks now and I
recently had a GTC BTC order fill which closed a TSS with a nice profit. But
since this position has continued to move down it has raised a question.

While I don't have time to monitor my positions constantly throughout the day,

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I am usually able to look at them midday, plus I always look at each position
after market close to monitor any change in direction.

Since I am always able to monitor each position at least daily, I'm wondering
if I would be better off not using a GTC order in order to maximize potential
profits by allowing a position to continue to run down.

I'm not looking to "break the rules", but if I am able to increase profitability
through management, would that be OK?

As always, your advice is appreciated.

Regards,

Bill

Dear Bill;

Thanks for your email. Sounds like you are doing well.

To answer your question, No. What you are doing is trading speculation for a
sure thing. Go for the 5% returns on buy backs etc. Don't try to get the "best"
execution each time based on speculation.

Thanks,

Joseph R. Hooper

Joseph;

Thanks for the advice. As usual, the only time I get into trouble is when I start
thinking!

Bill

Joe,

I was in the last Dallas online seminar and have noticed that a lot of the
people attending have asked for your list of 200+ stocks that you follow.

I am setting up my accounts and will begin to trade starting this week.

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Can you please send me a copy of the list of stocks that you follow.

I look forward to meeting you at the next seminar in Dallas.. My sister and I
plan to attend.

Thanks for your help.

Ron

Dear Ron;

Thanks for your note and I do look forward to seeing you and your sister in
Dallas for the next Seminar.

I have sent the list of stocks by another email, if you don't

receive it, please let me know.

Thanks,

Joseph R. Hooper

Hi Joe,

I own SNDA at a cost basis of 28.83. On 11-21-06 I sold the Jan 2008 20 for
1.90 when the stock was at 16.67. A few days later, the stock moved up
about 3 points and established a new higher uptrend range. The ask price for
the Jan 2008 20 is currently 5.1 with the stock at 22.02.

SSR and CPR don’t seem to be of any immediate help, but at the last Dallas
seminar you mentioned a new technique called SCR, which I guess would be
surrogate call replacement. Is my SNDA position a candidate for SCR?

Thanks for your help and I’m looking forward to leap seminar this weekend.

Wayne

Dear Wayne;

Yes it is but not quite now. The stock is moving up and needs to be at or
closer to resistance. When it gets there, contact me and I will walk you
through it.

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Thanks,

Joseph R. Hooper

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