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MI CRO-CAP REVI EW

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microcapreview.com VOLUME 4 ISSUE 2 3RD QUARTER 2009
Made i n Amer i c a Edi t i on
Feat ur i ng
Ask Mr. Wal l st r eet
Bor n i n t he USA
by I l ene Chunko and Avi k Roy [ 6]
Wi nni ng Mi c r o-Cap
St r at egi es Usi ng ETFs
by C Mi c hael Car t y [ 14]
Li f e I nsur anc e
f or I nvest ment
by Jef f Kel l er [ 23]
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EDITORIAL
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PUBLISHER
Wesley Ramjeet
wesley@microcapreview.com
EDITOR
Ronald Stone
Ron@microcapreview.com
WRITERS
C. Michael Carty
Ilene Chunko
John Faessel
Steven Greeneld
Chet Hebert
Jeff Keller
Jordan Kimmel
Sheldon Kraft
Jack Leslie
Larry May
Daniel R. Murphy
M.C. Elvis Oxley
Avik Roy
ACCOUNTING
Jennifer Anglade
Accounting@microcapreview.com
ADVERTISING
Vong Bui
Vong@microcapreview.com
BUSINESS DEVELOPMENT
Ron Stone
Ron@microcapreview.com
CIRCULATION
Jackie Peters
Jackie@microcapreview.com
Suki Chen
Suki@microcapreview.com
GRAPHIC PRODUCTION
Tony Vibhakar
Tony@microcapreview.com
WEBMASTER
Kelvin Chen
Kelvin.chen@3amediaonline.com
Micro-Cap Review Magazine is published Quarterly,
Spring, Summer, Fall, Winter POSTMASTER send ad-
dress Changes to Micro-Cap Review Corporate Ofces.
Copyright 2009 by Micro-Cap Review Inc. All Rights
Reserved. Reproduction without permission of the Pub-
lisher is prohibited. The publishers and editors are Not
responsible for unsolicited materials. Every effort has
been made to assure that all Information presented in this
issue is accurate and neither Micro-Cap Review Maga-
zine or any of its staff or authors is responsible for omis-
sions or information that is inaccurate or misrepresented
to the magazine.
If we put 2009 in a time capsule and go di-
rectly from 2008 to 2010, just think what we
would have missed in 2009. The highlights of
2009 should really begin with the lowlights. In
fact, the lowlights of 2009 were multi-faceted.
They appeared across the nancial landscape
similar to weather patterns leading up to a
perfect storm. In this perfect storm, the hous-
ing market bubble reached its pinnacle and
dropped like a stone. The torrent of losses fell
largely on Wall Street, washing away years of
prots from the purchase of subprime loans.
The tide of losses kept rising until the nan-
cial industry was shaken at its foundation.
Legendary names like Lehman Brothers, Bear
Stearns, and AIG drowned under a tsunami
of debt. The banking system was a ship that
was sinking fast until the federal government
came to the rescue. The Federal Reserve did
what it had to do, pouring billions of dollars
into the banking system. The stock market,
led by the Dow Jones Industrial Average and
other nancial indexes went down like the Ti-
tanic. Both Main Street and Wall Street alike
were left stunned by the bad news, losses,
and bankruptcies. People everywhere were
asking, How could this have happened?
Perfect storms take time to develop, happen
quickly, and in their aftermath leave a trail
of destruction. The perfect storm left many
people homeless and jobless, while causing
the federal debt to swell. The loss of jobs will
take longer to rebuild than New Orleans af-
ter Hurricane Katrina. General Motors stock
has no value, and Chrysler is a penny stock.
The year 2009 will also be remembered like
the movie, The Day the Earth Stood Still. The
money froze like Ted Williams. There was no
movement, except redemptions and internal
calculations of losses. IPOs went MIA.
The buzz words of 2009 became stimulus
and bailout and all the money that the gov-
ernment could print. The micro-cap stock
market became an orphanage where all
adoptions were cancelled and at best post-
poned. They say money talks, but the micro-
cap market became empty like the streets of
Anchorage, Alaska on a January evening. The
disappearance of investment capital created
a very lonely atmosphere in which lenders and
funders vanished.
Somehow we remain standing, shaky perhaps
and teetering on the abyss. Many of us are
wet, some drenched, and some washed out.
Incredibly the spirit gauge is turning higher for
the better. Although 2009 has been a horrible
year for most, the worst appears to have been
averted. The perfect storm is ending, although
there are still some lingering clouds ahead.
There are many silver linings including gold.
Thankfully you made it through the storm! We
welcome the opportunity to share many of
these positive stories with you on our future
pages.
Wesley Ramjeet
Publisher
This Publication is not to be construed, under any circumstances, by implication or otherwise, as an offer
to sell or a solicitation to buy or trade in any commodities or securities herein named. Micro-Cap Review
Magazine and its employees are not, nor do they claim to be registered investment advisors or broker/deal-
ers. This magazine contains forward-looking statements within the meaning of Section 21E of the Securi-
ties and Exchange Act of 1934 relating to companies future operating results that are subject to certain
risks that could cause results to differ materially from those projected. Readers are cautioned not to place
undue reliance on these forward-looking statements. This publication undertakes no obligation to update
these forward-looking statements. Micro-Cap Review Magazine, its owners, employees, their families and
associates may have investments in companies featured within this publication and may elect to sell these
investments or purchase additional investments in these companies at any time. However, the policy of our
editorial staff is to avoid any pre-publication trading of featured stocks or sales until the release date of the
magazine. In order to be in full compliance with the Securities Act of 1933, Section 17(b), where the publisher
has received payment for advertisement/advertorial of a security, the amount and type of consideration will
be fully disclosed. All information about the Company contained within an advertisement/advertorial has
been furnished by the respective Company and the publisher has not made any independent verications of
such information and makes no implied or express warranties on the information provided. Readers should
perform their own due diligence before investing in any securities mentioned. Investing in securities is specu-
lative and carries a high degree of risk. All MicroCap Review Disclaimers apply http://www.microcapreview.
com/disclaimer.php before investing view www.sec.gov/investors
W esley R a mjeet
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TABLE OF CONTENTS
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BUSINESS & MARKETS
Born in the USA
by Ilene Chunko and Avik Roy 6
Broker Dealer Update
by Jack Leslie 22
Life Insurance for Investment
by Jeff Keller 23
Micro-cap Capitol News from Washington, D.C.
by M.C. Oxley & Murphy 35
Compliance Corner
by Chet Hebert 48
FINANCE & INVESTMENTS
Concentrate on the Best Micro-Cap Companies-
The Magnet Method of Investing
by Jordan Kimmel 12
Winning Micro-cap Strategies Using ETFs
by C Michael Carty 14
Ask Mr.Wallstreet
Where Have All the IPOs Gone?
by Sheldon Kraft 17
Stock Research: Sionix (SINX)
by Steven Greeneld 24
On The Market: Reading International (RDI)
by Dr. John Faessel 39
Industry News: Obituaries, Retirements and
Change of Firm 50
PROFILED COMPANIES
Bagger Daves (OTCBB:DFRH) 8
AngioGenex (OTC:AGGX) 19
Veritec (OTC:VRTC) 27
US Preventive Medicine 31
Stanton Chase International 36
Viper Motorcycle 41
Reuven Enterprises 44
Laser Energetics (OTC:LNGT) 45
LIFESTYLES
Vitamin Complexities
by Dr. Larry May 28
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8orn in the U3A
8y llene Chunko ono Avik Roy
When we use the phrase Born in the USA, we are not using
it in the way that rock singer, Bruce Springsteen, had in mind.
Rather, we use the phrase to mean the spirit of innovation and
entrepreneurship that is at the heart of American business. In
fact, this spirit is very much alive and well, despite current
market conditions. Exciting new companies continue to be
created, even as bad economic news remains widespread.
While nancing is very difcult for most new ventures today,
companies continue to survive, and some even thrive.
Entrepreneurship drives economic growth. In America, people
become entrepreneurs for two reasons. They do it because
that is the best path available - necessity entrepreneurship,
or they do it because they want to make money and create
economic value - opportunity entrepreneurship. Whereas
necessity entrepreneurship has no meaningful effect on the
economy, opportunity entrepreneurship has a signicant ef-
fect on economic growth. In this article we will focus largely
on opportunity entrepreneurship in the United States.
Entrepreneurship During Recessions
During recessions, there is a noticeable uptick in accidental
entrepreneurs, unintended entrepreneurs, or forced entre-
preneurs, all signs of necessity entrepreneurship ratcheting
up. Thats understandable. And its true that a few of these
necessity entrepreneurs will surprise themselves and others
with big successes. But what happens to opportunity entre-
preneurship during downturns? The overall number of start-
ups tends to remain roughly constant during good times and
bad. During economic winters, high-income potential start-
ups decline while low-income potential start-ups increase.
That suggests the increase in the number of necessity en-
trepreneurs is actually offset by a decrease in the number of
opportunity entrepreneurs.
Why should we care about how many and what kind of com-
panies are born in the United States during this downturn?
Primarily because it will determine what kind of growth we
can expect when this economic storm ends. That is not only
a widely held view among Americans today, but is based on
empirical research. We could return to the high growth of the
post-1995 decade. Or we could nd ourselves in the midst
of a sustained period of sluggish growth, like the early 1970s
through the mid-1990s. Since a third of all new jobs in
good times and bad are created by start-ups, the quantity,
quality, and speed of job creation through entrepreneurial ac-
tivity will be critical to determine how we exit from the current
recession.
Recessions A Challenge or an Opportunity?
Opportunity entrepreneurs face daunting challenges when
U.S. markets turn south. Outside capital dries up, valuations
get depressed, exit options disappear, and strategies shrink.
Most importantly, many consumers and businesses are nan-
cially strapped and, as a result, reduce or eliminate spending.
Additionally, investing in innovation, marketing, operations,
or capacity carries higher risk. Finally, in an unforgiving mar-
ketplace, there is almost zero margin of error for even small
mistakes in business strategy or execution.
So is it all gloom and doom for those with entrepreneurial
aspirations? Does a recession spell the end for motivated
founders? Do bad times create a cohort of businesses with
lesser potential? The answer to these questions is a re-
sounding no.
Opportunity entrepreneurs enjoy signicant advantages dur-
ing tough times. According to the Kauffman Foundation, a
non-prot organization that focuses on entrepreneurship,
Good things grow even in the darkest times. Dark times
bring together two powerful concepts, Schumpeters creative
destruction and Darwins survival of the ttest, in a smolder-
ing cauldron of opportunity and risk. Disruptions to the pre-
recession status-quo create new opportunities for discerning
entrepreneurs.
The winners among the recessionary start-ups the com-
panies that succeed often tend to win big. The prize to the
winners is bigger than you would expect, considering the
challenging economic conditions that accompany their birth
and infancy. In 2008 just under half of the Inc. 500 and a
majority of the U.S. Fortune 500 were started during reces-
sions or bear markets. Our economy has contracted a total
of 556 months over the course of the past 152 years (through
2007). That is, the U.S. economy has been in a downturn 30.5
percent of the time. A whopping 57 percent of U.S. Fortune
500 companies founded during the last 152 years were born
in the midst of those difcult times.
Entrepreneurs benet from some striking advantages during
recessions. First, key start-up costs tend to fall, such as rent,
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equipment, and labor. Second, founders are forced to bootstrap
more effectively, given nancing is scarce. Investors and lenders
are more risk-averse, so only the most promising ideas will at-
tract capital. Third, newly born companies hatched during reces-
sions often have more time to set up the business right before
they launch. These start-ups also experience the business at a
measured pace before volume ramps up. Fourth, some badly
run businesses get wiped out during downturns, offering related
newbies a chance to swoop in and ll the void. Finally, loyalties
loosen and customers are more open to cheaper alternatives to
replace more pricey vendors.
Announcements of Recent Births
During this recession, entrepreneurs are busy creating new op-
portunities and doing deals that create viable businesses with
robust prospects for growth and protability. A combination of
necessity, aspiration, ambition, and desperation is driving bright,
energetic, and resourceful individuals to create new ventures.
Are there certain types of businesses that are more popular? Past
recessions show that only a handful of technologies remain the
focus of most start-up activity. Information technology is still big,
but specic areas that help cut costs and increase productivity,
like e-learning or virtual collaboration, are attracting entrepreneur-
ial attention. In addition, healthcare is generally a magnet for new
ventures at all times. Alternative energy and clean technology,
fuelled by government largess, continues to be popular. There is
a somewhat heavier emphasis than in the past on ventures that
view the government as a primary customer. There are some
businesses that are recessionary staples - household products,
food, personal services, telecommunications, transportation, and
the vices (e.g., alcohol, tobacco, and gambling).
Some examples of recent entrepreneurial activity in the NY/NJ
area reect these patterns.
C-MAIL, a New York-based start-up, has created a platform
that prioritizes e-mails (within Microsoft Outlook / Exchange) and
captures business intelligence across the enterprise. The tech-
nology integrates with existing enterprise systems and provides
productivity, workow, and collaboration features to end users,
managers, and IT departments. C-MAILs technology is used by
a small but growing user base, ranging from Fortune 100 compa-
nies to small businesses and government agencies. According to
CEO, Manish Sood, Our value proposition of increased produc-
tivity and collaboration, cost savings and innovation is even more
appealing to companies in these trying economic conditions.
MySkin is another New York-based start-up. It was created
by current CEO, Rahul Mehendale. Mehendale, a Harvard MBA
graduate, was unhappily toiling away at a large consulting rm
when he decided to do something more interesting. He got to-
gether with another Harvard MBA graduate, a leading physician,
and one of the worlds eminent biophysicists, to create a com-
pany that helps individual customers identify specic skin care
products best suited for them. At MySkins Web site, visitors are
escorted through a series of questions that leads to a personal-
ized prole of their skin. MySkins technology engine then helps
visitors identify skin products that work best for them. It is almost
like a personal clinical test designed for the customer. To keep the
recommendations unbiased, the Web site has no advertisements
from skincare manufacturers.
lnternationally renowned retinal specialist and serial entrepre-
neur Bert Glaser, M.D., founded retinal diagnostics company,
Ocular Proteomics LLC, in April 2009. Ocular Proteonics was
founded to improve eye health care for millions of people suffer-
ing from wet Macular Degeneration (wet AMD), the leading cause
of blindness in adults over age 50. Lorraine Marchand, the CEO
of the company, is clear about the benets of what others would
consider poor timing, The recession conveyed certain advantag-
es in our situation. Research and development, and operating ex-
penses had declined; companies were eager to partner and ven-
dors were eager for work; and high quality talent was abundant
at fair market prices. We were fortunate because we had cash to
sustain us for 12 months, so raising capital was not an immediate
concern. With unshakeable conviction that the potential market
was robust, Dr. Glaser committed personal funds to take the busi-
ness to the next stage. Connecting her companys path to suc-
cess with other companies born in a recession, Lorraine claims,
Surviving a recession and emerging as a sustainable company
strengthens the credibility of start-ups, making them that much
more attractive to investors looking for their next opportunity as
the market starts to swing back.
A new CEO, Brian McDonnell took a different path to entrepre-
neurship. He once said, If you cant nd a job, buy one. With
an SBA loan, he not only bought one, but two companies. Both
companies provide separate but related technology services.
McDonnell uses both companies as a platform to develop more
sophisticated products and services. With the base business,
he can evaluate different growth strategies, including expanding
product offerings, services, and geographic coverage. He can do
all of this and have a core business to fund the expansion. While
both companies are not early-stage start-ups, they are start-ups
nonetheless.
Clean energy start-ups are abundant, but how many can claim
a former division president of a major energy utility as the head of
their venture? Steve Morgan retired from a senior leadership role
before moving into the challenging world of start-ups. While he
has been forced to dramatically change his thinking and the scale
for how he operates day-to-day, he has not downsized his vision
for the new venture. Backed by commercial real estate investors
and founders, this little venture has the potential to change the
way we think about clean energy.
Looking Beyond the Downturn
There are some indications that the United States may be on
the brink of an entrepreneurial boom. Contrary to popularly held
beliefs, entrepreneurship is being driven by the most unexpect-
ed demographic trendthe aging population. According to Carl
Schramm, CEO of the Kauffman Foundation, Over the past de-
cade or so, the highest rate of entrepreneurial activity occurs in
the 55- to 64-year-old age group. The 2034 age bracket has the
lowest rate. Part of the reason is the signicant decline in long-
term employment among people between the ages of 35 and 64.
Bruce Springsteen wrote Born in the USA as a tribute to patri-
otic American soldiers who returned home from Vietnam only to
be greeted by a hostile public. Likewise, we see American en-
trepreneurs being resilient, ghting their own battles despite the
downturn in the economy. And while it may be surprising that this
battle is mostly fought by seasoned professionals, most of these
daring entrepreneurs hail from Springsteens own generation.
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The 8urger Pub, An Americon
Clossic, ^okes o Comebock
^ichoel Ansley of Diversineo Restouront Holoings, lnc. (TC88.
DFRH} Forges the Post lnto o New Fronchise pportunity
It all started in 1996, when
Michael Ansley and a college
buddy explored franchising
opportunities. After research-
ing the options, they decided
to open a Buffalo Wild Wings
franchise. They were in their
mid-20s and had no prior res-
taurant experience. With that
sort of background, no bank
wanted to lend them money.
Determined to move ahead, they found help from their fami-
lies and opened their rst Buffalo Wild Wings restaurant in
Michigan in 1996.
After a slow start and two years of losses, Michael and his
partner nally realized a small prot in the third year. By then,
Michael had learned some hard lessons of running a busi-
ness and decided to go out on his own. He sold his interest in
the franchise to his partner and opened his rst Buffalo Wild
Wings restaurant in Sterling Heights, Michigan in 1999.
Reinventing the Wheel and Making It Better The
Full-Service Model
You would think that most franchisees would be content
with a company that had a strong brand, a superior product,
a high growth rate, and a record of protability. But it was
not so with Michael. He saw an opportunity to improve the
model. Michaels hands-on approach and innovative thinking
had made him particularly sensitive to what his customers
wanted in their dining experience. I realized that the demo-
graphics were changing. Many of our guests had been former
loyal college customers. Many were now employed, married
with children, and were living in the suburbs. When dining out
with young children, customers preferred not having to get
up from their tables for food and beverages.
His answer: a hybrid, full-service model coupled with coun-
ter service at his restaurant in Novi, Michigan. He did this
against the advice of the corporate ofce and fellow franchi-
sees, which were still wedded to the successful self-service
model. In the rst year of operations, the Novi store recorded
the highest sales in the Buffalo Wild Wings system and con-
tinued to increase sales until it reached the $4 million mark in
its third year of operation.
Michael was one of the rst to offer full service to his guests.
By the end of 2003, the Novi location had recorded the high-
est sales in the franchise.
The full-service model was successful because of its diverse
and enhanced customer appeal; prots increased on two lev-
els:
With the addition of tipping, hourly labor costs fell from 14.5
percent to 11.2 percent of sales, and
Table checks increased due to the ability of servers to up-
sell more menu items.
Between 2004 and 2005, Buffalo Wild Wings corporate lead-
ership embraced the full-service model. Today this model is
now available nationwide.
Even before transforming the Novi restaurant into a full-ser-
vice operation, Michael was already considered a rising star
in the franchise, having been awarded Operator of the Year
in 2000 by the Buffalo Wild Wings corporate ofce for the
outstanding performance of his Sterling Heights and Fenton
restaurants.
The full-service restaurant in Novi collected numerous
awards:
Highest Annual Restaurant Sales-2003, 2004,
2005, and 2006
Highest Weekly Restaurant Sales-2003
Jimmy Disbrow Founder's Award -2004
Scott Lowery Franchise Development Award -2004
lnternational Franchise Association Franchisee
of the Year 2007
Today, Diversied Restaurant Holdings, Inc. is one of the larg-
est and most successful franchisees of Buffalo Wild Wings,
Inc. and the only franchisee that is public (OTCBB: DFRH).
Diversied Restaurant Holdings currently owns and oper-
ates 16 Buffalo Wild Wings restaurants, 5 in Florida and 11 in
Michigan. In August 2010, the company expects to acquire
the nine Buffalo Wild Wings restaurants it currently manages,
increasing annual sales by $24.8 million.
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Going After Bigger Game The Massive Burger
Market
According to the Library of Congress, Connecticut is home
to the rst hamburger restaurant in the United States. Louis
Lassen of Louis Lunch, a small luncheonette in New Haven,
sold the rst hamburger in 1895. According to New York
magazine, The dish actually had no name until some rowdy
sailors from Hamburg, Germany named the meat on a bun
after themselves years later. The rest, as they say, is history;
the lowly hamburger has become a multi-billion dollar icon of
American food culture.
In 2006, Ansley started looking at opportunities in the fast-
casual segment of the hamburger market where his Buffalo
Wild Wings experience could give him an edge. The one
niche that jumped out was the mid-range price market that
existed between Wendys on the low end and Red Robin on
the high end. This segment was still relatively underdevel-
oped. It had a loyal family-oriented customer base and ap-
pealed to people during difcult times. New startups in this
sector showed signicant growth.
Finding the Local Hook
I felt that a niche opportunity lay in creating a restaurant that
combined all the cost efciencies and consistent product
quality of a franchise restaurant with the traditional feel and
community loyalty of an English Pub. Put those two concepts
together and you have a potent advantage.
The inspiration for the restaurants design came from a wa-
tering hole that I found in Cincinnati. The 80-year-old pub
was a classic. It had dark wood paneling and a copper-plated
bar. To reinforce the timeless theme, we christened the bar,
Bagger Daves Legendary Burgers and Fries. We used
nostalgic images gathered from local museums and histori-
cal societies to connect with the neighborhood. We even built
an electric train railway running the length of the pub to add
to the fun.
Bagger Daves was launched in January 2008 in Berkley,
Michigan. The second store opened in Ann Arbor in August
2008. Marketing focused on grassroots programs that sup-
ported neighborhood non-prots and other events to under-
score the companys connection to the community.
The Launch
The menu featured freshly made burgers
(never frozen) accompanied by more than
30 toppings, fresh-cut fries, a selection of
wines and beers, and hand-dipped milk-
shakes. Signature items included Sloppy
Daves BBQ, the Train Wreck Burger
(shown at left), and Bagger Daves Amaz-
ingly Delicious Turkey Black Bean Chili.
Hello there! We just wanted to quickly write and tell you that
we are head over heels for Bagger Daves after trying it for the
rst time last weekend. The burgers taste amazing. They are
juicy and tender, the sauces are great (Chipotle BBQ, hello!),
the veggies are crunchy and large, and those Belgian fries are
original and tasty. We went last week and then again yester-
day, and we plan to go again this week, even though we live
an hour away in Adrian. Thank you for delivering such great
food in a great atmosphere.
Benjamin Ray and Jessica Klein
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On the public relations front, Bagger Daves scored fourth in
the National 2009 March Burger Madness contest. The head-
line of the tongue-in-cheek press release reads:
Bagger Daves Upsets Top Seeded McDonalds
Rolls into Final Four of the March Burger Madness Tour-
nament
Defeated perennial champion with their fresh and fast deliv-
ery
This brainchild of BurgerBusiness.com was publisher Scott
Hume. Hume simulated the excitement of the NCAA Basket-
ball Championship Tournament by substituting various burger
chains for the college teams. He renamed the traditional four
regional brackets: the Kroc (named for McDonalds entre-
preneur Ray Kroc), McLamore (for Burger King founder Jim
McLamore), Thomas (for Wendys founder R. David Thomas),
and Karcher (for Carls Jr. founder Carl Karcher). Burger fans
could follow the games by going to
www.burgerbusiness.com and clicking on the Burgerbrack-
et1 link to see all the teams and their rankings.
BurgerBusiness.com also selected Bagger Daves as a can-
didate for the Top Five Burger Menus.
Future Expansion Plans
For the Company as a whole, we are on track with an ag-
gressive expansion program, said Michael Ansley, which will
include:
The purchase in August 2010 of nine Buffalo
Wild Wings afliated restaurants, increasing
overall sales by an estimated $24.8 million;
The opening of eight Buffalo Wild Wings and
ve Bagger Daves restaurants over the next
three years.
This expansion will lay the groundwork for projected revenues
of $60 million by the end of 2011, with an estimated EBITDA
margin of 13.8 percent.
Additionally, the board of directors of Diversied Restaurant
Holdings recently agreed to evaluate the benets of franchis-
ing the Bagger Daves concept.
For more information on Diversied Restaurant Holdings,
please visit www.diversiedrestaurantholdings.com.
D|sc|a|me|: 7||s co|oo|ate o|oh|e |s oased 0oon |nfo|mat|on o|o-
v|ded oy t|e |ss0e| o| comoany |eo|esentat|ve. 7|e |nfo|mat|on |s not
|ntended to oe, and s|a|| not const|t0te, an offe| to se|| o| so||c|tat|on
of any offe| to o0y any sec0||t|es. /t |s |ntended fo| |nfo|mat|on o0|-
ooses on|y, and to |nc|ease awa|eness of Bagge| Dave's and D|ve|s|-
hed Resta0|ant Ho|d|ngs, /nc.
Safe Ha|oo| Statement: 7|e statements |n t||s adve|to||a| |e|at|ng
to f0t0|e o|od0cts, oa|tne|s||os, tec|no|ogy, and oos|t|ve d||ect|on
a|e fo|wa|d |oo||ng statements w|t||n t|e mean|ng of t|e P||vate Se-
c0||t|es /|t|gat|on Refo|m Act of 1995. Some o| a|| of t|e asoects
ant|c|oated oy t|ese fo|wa|d |oo||ng statements may not, |n fact,
occ0|. Facto|s t|at co0|d ca0se o| cont||o0te to s0c| d|ffe|ences
|nc|0de o0t a|e not ||m|ted to cont|act0a| d|fhc0|t|es, demand fo| t|e
comoany's common stoc|, and t|e comoany's ao|||ty to oota|n f0t0|e
hnanc|ng. M|c|o-cao Rev|ew magaz|ne may |ave |ece|ved S6,000
cas| and/o| stoc| to o0o||s| and o||nt t||s co|oo|ate o|oh|e. M|-
c|o-cao Rev|ew magaz|ne d|sc|a|me|s aoo|y and may oe |ev|ewed
at www.m|c|ocao|ev|ew.com/d|sc|a|me|.o|o. Befo|e |nvest|ng |n any
sec0||ty, |eade|s a|e st|ong|y adv|sed to |ev|ew a|| o0o||c h||ngs of t|e
|ss0e| of s0c| sec0||ty, w||c| can oe fo0nd at www.sec.gov, as we||
as wa|n|ngs o0o||s|ed oy t|e SEC at www.sec.gov/|nvesto|s.
PROFILED COMPANIES
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Concentrote on the 8est ^icro-Cop
Componies-The ^ognet ^ethoo of lnvesting
8y Joroon Kimmel
The nancial markets have become so emotionally driven
over the last few years that even seasoned investors have
lost their way. Media discussions have dumbed down the
issue into a debate of whether we are in a bull market or
whether the dramatic rise since the market low on March 9,
2009 is a bear market rally. If investors are to make money in
the stock market, they need to tune out the day-to-day media
nonsense and remember that all companies are not created
equal. This law applies to people, animals, and public com-
panies.
The stock market is a lot like sports. The games remain vir-
tually the same, but the names of the best players change.
Once investors realize this, they can better invest and man-
age portfolios. In sports, a player rarely shows up in the pros
without rst being a superstar in high school. For a company
to be added to the S&P 500, it usually gets added rst to the
smaller market cap indexes. Our Magnet Method of invest-
ing has been developed to capture and identify these fast
performing companies as they begin to generate prots and
accumulate cash.
In my new book, 7|e Magnet Met|od of /nvest|ng, I try to
help investors relate two well known scientic concepts to
the stock market, the bell curve and the S-curve. Below are
two excerpts that highlight these two powerful realities.
Interestingly, the indexes continue to go higher because the
components that make up the index keep changing. So, al-
though long-term investing in indexes has proven protable,
investing in the individual companies making up the index
has not. Many former index companies, such as Pan Ameri-
can World Airways (Pan Am) and Bethlehem Steel have gone
bankrupt. The index creators simply replaced these names
with new companies to help the indexes go higher. Although
several names that were removed from the index had been
involved in mergers or acquisitions, the majority of the names
were removed due to underperformance. New industries
continue to emerge, and new market leaders show up unan-
nounced. Individual investors have to nd a way to identify
these industries and companies. Also, investors need to re-
member that the leaders of past bull markets will often not be
the leaders of the next bull market.
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It amuses me when so-called experts cite the lack of growth
in the United States and highlight the problems of General
Motors as proof. Back in the 1800s, a libuster pressured
Congress to close the U.S. Patent Ofce. The argument was,
Now that everything has already been invented, why are we
wasting taxpayers money? On the contrary, with the ad-
vances in communications and technology, new discoveries
are accelerating today. Interestingly, these breakthroughs
usually do not come from larger companies, which are gen-
erally too set in their ways. Instead, breakthroughs are usually
found in smaller, more innovative companies. Initially, small,
niche companies create the new, enabling industries: Micro-
soft in 19872000, America Online (AOL) in 19922000, or
Google in 20002008. In the beginning of the twentieth cen-
tury, Ford and Radio Corporation of America (RCA) were the
Magnets of their day, but they eventually lost their leadership
role.
Perhaps Charlie Munger said it best in the August 2008 issue
of O0tstand|ng /nvesto| D|gest:
Youve got to remember that its in the nature of
things that most small businesses will never be big
businesses. Its also in the nature of things that
most big businesses eventually fall into mediocrity
or worse. So its a tough game out there. In
addition, the players of the game all have to die.
Those are the rules of the gameand you have
to get used to it.
When I was in high school, I used to take the subway train
from Manhattan to the Bronx High School of Science. One
stop along the way was Yankee Stadium. As we passed the
stadium, I would think about Babe Ruth, Lou Gehrig, and
Mickey Mantle. I often thought how many kids grew up and
wanted to play in the major leagues. How many made it?
How many ever batted .350 for a season or hit 40 home runs
in a year? You were talking about the cream of the crop. In
track and eld, how many athletes ever ran the 100 meters
in under 10 seconds? In basketball, how many players ever
scored 40 points in an NBA game? I would often tell myself
that investors needed to think about public companies in the
same way as well.
By nature, there can be only a few superlatives in anything,
publicly traded companies included. The stock market fol-
lows the natural order of things. When I was a college student
studying nance and investments, I sat in class looking at
a chart of the bell curve and asked myself a couple of life-
changing questions. Understanding that only ve percent of
companies can be truly superlative, why would anyone rec-
ommend buying the whole list? Why would anyone accept
the premise of investing in all 500 companies in the S&P or
in all 2,000 companies in the Russell small-cap index, unless
the investor was willing to accept only an average return?
My next thought turned to nding a quantitative way to isolate
and measure the superlative companies for investment. This
became my quest over the next 20 years and remained the
backbone of the Magnet Stock Selection System. Under
this method, I focus on nding the up and coming companies
of the day, and the knowledge that is needed to nd a few
companies at any given time. And that keeps me searching
for the best micro-cap stocks.
Jo|dan K|mme| |s a ma||et st|ateg|st at Nat|ona| Sec0||t|es
Co|o. and a hnanc|a| o|anne| fo| c0stome| acco0nts at |ts af-
h||ate, Nat|ona| Asset Management. He |s t|e a0t|o| of t|e
|ecent|y |e|eased ooo|, The Magnet Method of Investing.
Mo|e |nfo|mat|on aoo0t M|. K|mme| and ||s ooo| can oe
fo0nd at www.magnet|nvest|ng.com.
D|sc|a|me|: NAM |s a |eg|ste|ed |nvestment adv|so| w|t| t|e Sec0||-
t|es and Exc|ange Comm|ss|on. NAM o|ov|des f0ndamenta| |nvest-
ment management se|v|ces to |nvesto|s. 7|e v|ews exo|essed con-
ta|n ce|ta|n fo|wa|d |oo||ng statements. NAM oe||eves t|ese fo|wa|d
|oo||ng statements to oe |easonao|e, a|t|o0g| t|ey a|e fo|ecasts and
act0a| |es0|ts may oe mean|ngf0||y d|ffe|ent. Act0a| events may ca0se
ad|0stments |n oo|tfo||o management st|ateg|es f|om t|ose c0||ent|y
exoected to oe emo|oyed. 7||s mate||a| |eo|esents an assessment of
t|e ma||et at a oa|t|c0|a| t|me and |s not a g0a|antee of f0t0|e |es0|ts.
7||s |nfo|mat|on s|o0|d not oe |e||ed 0oon oy t|e |eade| as |esea|c|
o| |nvestment adv|ce |ega|d|ng any sec0||ty |n oa|t|c0|a|. No |eo|e-
sentat|on |s oe|ng made t|at any |nvesto| w||| o| |s |||e|y to ac||eve
o|ohts o| |osses. 7|e oe|fo|mance of t|e st|ategy does not |ehect t|e
effect of any ann0a| adv|so|y fee. Mo|e |nfo|mat|on aoo0t adv|so|y
fees |s ava||ao|e 0oon |eq0est. As w|t| any |nvestment st|ategy, t|e|e
|s ootent|a| fo| o|oht as we|| as t|e ooss|o|||ty of |oss. /ndex |et0|ns a|e
fo| |||0st|at|ve o0|ooses on|y and do not |eo|esent act0a| sec0||t|es
oe|fo|mance. One cannot d||ect|y |nvest |n an |ndex. /ndex oe|fo|-
mance |et0|ns do not |ehect any management fees, t|ansact|on cost
o| exoenses. /nd|ces a|e 0nmanaged. A|| M|c|o-cao d|sc|a|me|s (see
oage 3I aoo|y to t|e aoove a|t|c|e.
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Winning ^icro-cop
3trotegies Using FTFs
8y C ^ichoel Corty
Exchange-traded funds (ETFs) are perhaps the greatest in-
vestment innovation in the last 15 years. Growing at a tor-
rid 60 percent rate since its inception in 1993, ETFs have
amassed assets of $590 billion. There are now 725 ETFs, and
the reason is clear: ETFs provide investors with a low cost,
diversied means of investing across a wide variety of asset
classes in portfolios benchmarked to outperform most ac-
tively managed separate accounts and mutual funds.
Exchange-traded funds are particularly attractive to people
who invest in asset classes that are difcult to manage in
terms of time and resources. Successful micro-cap invest-
ing requires extensive research to determine suitable invest-
ments. Investors need to digest a great deal of information
about many areas: a companys business model, product
or service potential, management team, nancial resources,
productive capacity, resource endowments, proprietary tech-
nology or process, patents, and regulatory and environmen-
tal restrictions.
Given the time and nancial costs, individual investors often
dont do enough work to reach a protable decision. Even if
they did, it is unlikely that they could successfully populate a
fully diversied portfolio without professional help.
Enter micro-cap ETFs. Compared with other micro-cap in-
vestment choices (e.g., mutual funds, closed-end funds, unit
investment trusts, futures, and options), ETFs have very real
advantages:
Superior relative performance compared to actively man-
aged funds. Micro-cap ETFs are indexed to popular micro-
cap benchmarks, such as the Dow Jones Select MicroCap,
Russell Microcap, and Zacks Micro Cap Indexes. Experience
has shown that passively managed index funds typically
outperform actively managed funds by virtue of their lower
expenses, reduced turnover, fewer transactions, and lower
management fees.
A variety of choices available for gaining exposure to micro-
cap stocks. Each fund has different rules of index construc-
tion, stock selection, rebalancing, and number of holdings.
Consequently, the funds can provide investors with different
risk/return choices.
Assured transparency since companies and their portfolio
weightings are published on sponsors Web sites and updat-
ed daily to reect any changes. The funds holdings are also
published on listing exchanges Web sites, which permits in-
vestors to track their holdings and purchases.
Diversifcation from a suffcient number of components in
each fund required to meet Regulated Investment Company
Compliance standards imposed by the Internal Revenue Ser-
vice.

Continuous pricing approximating net asset value ("NAv"j
throughout the trading day, which allows investors to choose
their entry and exit prices. Mutual funds trade only once a
day at NAV after the close.

Lower expense ratios than actively managed mutual and
closed-end funds, or separately managed accounts. More of
a funds gross performance is given to shareholders, and less
to management fees and other expenses.

Tax effciency via a unique ETF feature requiring all direct
transactions between authorized market makers and the fund
to be in-kind, using baskets of securities in proportion to
those in the portfolio. Since in-kind transfers involve no cash,
no taxable event occurs. Long-term ETF shareholders are
not normally subject to the year-end capital gains distribu-
tions made to most mutual fund shareholders. Fewer capital
gains distributions mean lower capital gains taxes.
Margin requirements are more likely to be met using ETFs
than with mutual funds or individual stocks. Micro-cap inves-
tors wishing to use leverage should consider using ETFs.
People invest in micro-cap stocks mainly to prot from capi-
tal gains, recognizing that these investments have above-av-
erage risk. It is therefore advisable to mitigate risk by diver-
sifying away as much specic risk associated with individual
stocks as possible. Micro-cap ETFs are ideally suited to this
task, because they hold a sufciently large number of com-
panies; losses in any one holding will not signicantly com-
promise the portfolio as a whole.
Currently, there are three seasoned micro-cap ETFs avail-
able: iShares Russell Microcap Index Fund (NYSE/Arca:
IWC), PowerShares Zacks Micro Cap Portfolio (NYSE/Arca:
PZI), and First Trusts Dow Jones Select Microcap Index Fund
(NYSE/Arca: FDM). These three funds have a similar history
and were all created in August/September 2005. Statistically,
they are a unique asset class due to the close correlation of
their monthly returns, ranging from 0.97 to 0.99. More impor-
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tantly, they can also be considered as an asset class distinct from
the broad market represented by the S&P 500, since their cor-
relations to that index range from 0.90 to 0.92. The distinction is
evidence that they can be a valuable means of diversifying broad
market-based portfolios.
As illustrated in Table 1, these ETFs also have similar volatilities as
measured by their annualized standard deviations, ranging from
23.0 percent to 23.4 percent over the period from October 2005
to July 2009. Not surprisingly, these correlations are signicantly
higher than the S&P 500 gure of 17.5 percent.
Table 1. Risk/Return Characteristics of Micro-cap ETFs vs. the
S&P 500

* Performance statistics computed from October 2005 to July
2009.
The market trend during the October 2005 to July 2009 period
is atypical from its historic long-term trend of rising stock prices.
In the nearly four years since these funds have existed, the S&P
lost 3.5 percent annually versus the funds losses of between 5.9
percent and 11.6 percent.
This recent decline is not expected to continue indenitely; mi-
cro-cap stocks are likely to once again become a preferred asset
class for investors seeking extraordinary capital gains. While each
of these funds represents a logical means of participating in a
future long-term trend of rising prices, one or another might be
more suitable in meeting a particular investors risk/return prefer-
ences. To decide which ETF is the most suitable, investors must
understand the specic characteristics of each fund.
The iShares Russell Microcap Index Fund is the largest of the
three funds. As of June 30, 2009, it had $286 million in assets and
an expense ratio of 0.60 percent. Its annual return of -8.3 percent
positions it midway between the other two funds. The iShares
fund tries to achieve results that correspond to the Russell Mi-
crocap Index, before fees and expenses. The iShares fund uses a
consistent methodology that selects the 1,000 smallest stocks in
the Russell 2000 Index, includes only U.S. companies trading on
national exchanges, and excludes any listed on the OTC Bulletin
Board or Pink Sheets. The fund is rebalanced annually to include
only companies that meet its size criterianone too large or too
small. Despite annual rebalancing, its turnover rate is 21 percent,
the lowest of the three funds.

The PowerShares Zacks Micro Cap Portfolio has assets of $47.4
million and an expense ratio of 0.70 percent, the highest of the
funds. It also has the lowest annual return of -11.6 percent and the
greatest volatility. This fund normally invests at least 90 percent
of its assets in stocks that comprise the Zacks Micro Cap Index.
A proprietary model selects micro-cap stocks with the greatest
potential to outperform relevant benchmarks and other actively
managed micro-cap portfolios. This semi-active strategy has
produced an annual turnover of 54 percent, or 2 times that of
iShares Russell Microcap Index Fund.
First Trusts Dow Jones Select MicroCap Index Fund is the small-
est of the three funds in size, with assets of $14.4 million, and an
expense ratio of 0.60 percent. It has the smallest annual loss of
the funds, -5.9 percent, and the lowest volatility. The First Trust
fund seeks to achieve the price and yield performance of the Dow
Jones Select MicroCap Index, before fees and expenses.
The Dow Jones Select MicroCap Index comprises comparatively
liquid stocks with strong fundamentals relative to other micro-cap
stocks listed on the NYSE, NYSE Amex, and NASDAQ. These
stocks have market capitalizations falling within the bottom two
deciles of NYSE stocks. The First Trust index screens stocks
based on market capitalization, trading volume, trailing price/
earnings and price/sales ratios, quarterly EPS change, operating
margin, and six-month total return. This apparently semi-active or
enhanced strategy produced an annual turnover in the fund of 85
percent, four times greater than the iShares fund and 1 times the
PowerShares fund.
As with any investment, a nal word of caution is in order. A pru-
dent investor should investigate further, check each funds updat-
ed performance and holdings, and research other relevant data by
visiting their Web sites:

www.ishares.com
www.invescopowershares.com
www.FTPortfolios.com
__________________________________________________________
C. M|c|ae| Ca|ty |s P||nc|oa| and C||ef /nvestment Ofhce| of New M|||en-
n|0m Adv|so|s, //C, an |nvestment adv|so| t|at soec|a||zes |n des|gn|ng
E7F st|ateg|es. Based |n New Yo|| C|ty, |e |as ove| 25 yea|s of Wa|| St|eet
exoe||ence as a oo|tfo||o manage| and st|ateg|st. M|. Ca|ty |as o0o||s|ed
n0me|o0s a|t|c|es |n t|e hnanc|a| med|a, |eg0|a||y soea|s at confe|ences
add|ess|ng t|e des|gn and management of E7Fs, and |as se|ved as an
exoe|t w|tness on E7Fs. He |as a|so g|ven |0nd|eds of te|ev|s|on and |ad|o
|nte|v|ews on t|me|y |nvestment too|cs.
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Ask ^r.Wollstreet
Where Hove All the lPs Gone
Where have all the IPOs gone is a great question. Here is a test,
name the last initial public offering (IPO) that you can remember.
Okay, for me it is Google. The Google IPO is special in that it
was also a self underwritten IPO. Do you remember in what year
Google went public? Well, according to my Google search, it was
April 2004 and their rst quarterly ling as a public company was
on October 22, 2004. Dont look now but that was almost ve
long years ago. I miss IPOs. They were absolutely fun to buy, fun
to trade, and folks could make real money, if they were able to get
their hands on IPO stock. So what happened?
I look back with treasured memories, having been an underwriter
of IPOs in the day and having experienced their growth. It was
a time when the market was just getting popular outside of the
inner circle of stock market professionals. It was the early 1980s
when stocks were only found on the Pink Sheets (actual quote
sheets printed on pink paper) before quote machines, Bloomberg
terminals, and the Internet. Michael Bloomberg was still at Mer-
rill Lynch Pierce Fenner and Smith and was struggling to get his
rst boxes out into the street. New broker dealer boutiques were
sprouting up every day, and civilians and would-be brokers were
nding their way to Security Training School at 17 Battery Place in
New York City to be schooled in passing the Series 7 and 63 tests
to become registered with the National Association of Securities
Dealers (NASD).
From all walks of life, many people changed their careers to try at
making more money than they ever could have imagined. From
used car salesmen to college graduates, from the garment center
and the teaching profession, people were ocking to 17 Battery
Place like it was a big magnet.
This spurt in activity would in no way endanger the wire houses,
the New York Stock Exchange, and the American Stock Exchange,
which were pinnacles of integrity and tradition in the capital mar-
kets. Sure, the exchanges had their IPOs, but suddenly this new
emerging growth market was growing from tadpole to frog and
from the Pink Sheets to electronic trading. The advent of the
quotron machine wired Wall Street and created the transparent
market with Level 3 machines (computerized, real-time trading
system of NASDAQ), which aided the growth of the worlds larg-
est trading rms like Speer, Leeds, and Kellogg; Herzog, Heine,
and Geduld (owned by Merrill Lynch); Troster Singer (owned by
Spear Leeds); Nash Weiss (owned by Quick & Riley); and many
8y 3heloon Kroft
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others. This technological breakthrough ultimately was the market
making system that turned NASDAQ into what it is today a billion
dollar public company (NSDQ). The ultimate benet of this market
making business was the creation of unlimited liquidity, the single
most important ingredient for a robust market. Beside creating a
new place to buy and sell, the new system was fast, vast, and
trackable.
The market making system created liquidity as each new market
maker could trade the same listing with others and compete for
orders based on order size and posted price. Market making was
thoroughly different from its forbears at the exchanges. The ex-
changes only had one specialist making the book on a stock,
whereas NASDAQ had several market makers, each having its own
book. The creation of the market making system single-handedly
created an industry of its own within the nancial community.
Initial public offerings began very quickly. New retail brokerage
rms started to build branch ofces in great numbers and needed
to give hungry new registered stock brokers something to sell. Fur-
ther, the growing number of traders needed something to trade.
Securities trading was a business that needed inventory, and what
is a better way to gain inventory than to create your own? Thus,
was born the great IPO market that never looked back. The NAS-
DAQ ourished, the SEC needed more help and created the Na-
tional Association of Securities Dealers (NASD), and the ranks of
stockbrokers and traders grew exponentially. The US stock mar-
kets had spawned a capital base like no other in the world.
An amazing number of new companies was created and funded,
including Microsoft, Oracle, Intel, Apple, Sun Microsystems, and
Yahoo, until the dot-com boom market took companies like AOL
to more than $400 per share. Rational valuations and revenue and
earnings guidelines were good for the old line stocks of the NYSE,
but not for many of the new stocks. Trillions upon trillions of dol-
lars of net worth were accrued. Oh yes, it was the days of trading
stocks in fractions before the ve percent markup rule, and before
trading stocks in penny decimals removed the spreads. Lets just
say the NASDAQ had become the Wild Wild West and everybody,
including his or her mother, was going public. Financial reporting
became an obscenity, and unscrupulous characters pervaded the
once pristine integrity-lled world of the New York stock markets.
New issue whores became rampant, new issue hedge funds in-
vaded unsuspecting underwriters, and the criminal underworld
invaded the market and took no prisoners. Eventually scandals,
public outcry, political candidates promising reform, media cover-
age, major arrests and prosecutions led to heavy regulatory inter-
vention and enforcement. Finally, new rules including Rule FD (full
disclosure) and Sarbanes-Oxley became law.
So what happened to this once ourishing IPO marketplace? In
short, it came to a crashing end almost as quickly as it began. The
dot-com bust and the buildings that went down on September 11,
2001 in New York City practically put the nancial markets out of
business. One by one, NASD members started dropping like ies.
Wall Street literally cleared out, abandoning the Wall Street vicin-
ity and moving uptown, across the river, or out of business. Bro-
kers whose client books had incinerated in value went on to new
careers. Liquidity dried up, stocks didnt trade, and new money
stopped owing in. Additionally, the government clamped down
and justiably over-regulated the stock market. Focus switched
from the easy pickings of new issues that ew upwards in the af-
ter-market to the salvage of whatever money was available.
Many IPOs had difculty staying aoat. Prices dropped, capital
dried up, and those that remained suffered major market cap set-
backs. Many companies diminished in size and lost their listing on
the small-cap or national market system (NMS). Created in 1995,
the OTC Bulletin Board, received countless fallen angels and left-
over public companies. Eventually the Pink Sheets became the last
bastion of listing for non-reporting and struggling stocks. During
this time many individual investors unfortunately got destroyed.
The resilience of Wall Street was to be proven again as the pri-
vate investment in public equity (PIPE) and reverse merger busi-
ness emerged from the ruins of the dot-com bust. Remember all
of those failed new issues and useless stocks? Well, they became
public shell companies of the previous new issue market. These
shell companies suddenly had a use from a cadre of companies
that wanted to go public without an underwriting.
My next article will depict the PIPE and reverse merger market and
the rebirth of the new issue market using old public shells.
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ANGlGFNFX, lNC
Getting the 3trotegy Right
How AngioGenex Inc. is leading the way for early stage biophar-
maceutical rms in a downturn economy!
Introduction
AngioGenex, Inc., is a fully reporting public company (AGGX:OB)
that was established on world-class research of Dr. Robert
Benezra at the Memorial Sloan-Kettering Cancer Center in New
York City. Dr. Benezras discovered the Id (inhibitor of differentia-
tion) genes and the Id proteins that play a critical role in caus-
ing cancer in humans. He dened the role of these Id agents as
a nal common pathway for the induction of new blood vessel
formation by modulating other factors such as VEGF, the tar-
get for AvastinTM, Roche/Genentechs enormously successful
monoclonal antibody for the treatment of cancer. Normally, the Id
genes are activated during development of the fetal embryo and
then are turned off at birth. Dr. Benezra demonstrated that the Id
genes are activated and Id proteins expressed in the blood ves-
sels of all tumors examined to date. These new, tumor-associated
blood vessels are required to support the growth and spread of
the cancer. Dr. Benezra also demonstrated that mice without the
Id gene do not display tumor-associated new blood formation
when implanted with human tumors and are resistant to growth
of all cancers studied to date. With regard to extrapolating nd-
ings in mouse models of human cancer to treatment of cancer
patients, an important observation is that the Id genes and pro-
teins in mouse and man are virtually identical.
Internal Scrutiny of AngioGenex
Strengths. The companys anti-Id small molecule and anti-sense
products have been fully validated using in vivo animal studies.
The results represent a signicant commercial opportunity, if the
ndings are validated in human clinical trials. In addition, the ther-
apeutic targets of the companys drugs (Id genes and Id proteins)
are found only in fetal or cancerous tissue, suggesting a signi-
cant safety benet for a therapeutic agent that targets these moi-
eties. The company also enjoys the support of highly respected
researchers in the Id eld and has experienced management with
extensive commercial expertise in the development of this type
of product. The company has led ve patents, one of which has
been approved and the remaining patents are pending approval.
Finally, the company has developed a highly sensitive analysis
for Id in blood that can be used as a diagnostic test to support
cost-effective and efcient use of its therapeutic products (per-
sonalized medicine).
Weaknesses. The main weakness of the company is chronic
under-capitalization. This has delayed many activities required to
advance the companys promising drugs, including ling inves-
tigational new drug (IND) applications and commencing human
clinical trials.
Opportunities. If successful, the AngioGenex technology will ful-
ll a signicant unmet medical need, thereby providing a major
market opportunity.
Threats. The main threat to the company is that continued under
capitalization will delay progress of its candidate products and
will allow other companies time to develop and commercialize
competing products.
Assessment of the Current Environment for
AngioGenex
Strengths. The public increasingly recognizes that progress
made against cancer has been only marginal, despite enormous
investments over decades of private and public research. In ad-
dition, the signicant limitations with respect to efcacy (minimal),
adverse events (life-threatening) and cost (extremely high) of the
existing prototype approach to mitigate tumor associated new
blood vessel formation (Avastin) are now obvious and well report-
ed. Hopefully, recognition of these realities will increase interest
in new approaches, such as the AngioGenex anti-Id technology.
With respect to cost, the lead AngioGenex anti-Id therapeutic
drug is a small molecule that is relatively inexpensive to manu-
facture. This savings will likely increase in signicance as both
private and government medical care payers try to reduce cost.
Weaknesses. Problematic for a number of years, the investment
environment for early-stage companies has become decidedly
grimmer with the recent economic decline. In addition, the U.S.
Food and Drug Administration (FDA) has become even more ag-
gressive in auditing and evaluating data submitted by sponsors.
Opportunities. Historically, the efcacy hurdles for a product like
the AngioGenex anti-Id agents have been quite low, given that
even a modest survival benet can form the basis for an NDA
approval. In addition, there is a high probability that the FDA will
grant priority review for a product of this type, further expedit-
ing the commercialization process. Recently, Johnson & John-
son acquired a company with a similar background, Cougar Bio-
tech (NASDAQ:CGRB), at a signicant premium in a deal worth
$1 billion. AngioGenex has the potential to participate in such
a transaction once its technology has been clinically validated
(proof-of-concept achieved). Finally, the market for a success-
ful anti-cancer agent remains very large, potentially in the multi-
billion dollar range.
Threats. Many companies currently are competing for funds in
the early-stage oncology space. Also, this type of development
program lacks predictive value, since human clinical trials often
do not validate the technologys earlier in vivo results in animal
tests.
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AngioGenex Strategies
AngioGenex has formulated a number of strategies to exploit
the advantages and minimize the disadvantages and risks listed
above.
Strategy 1. Continue to attract non-institutional investors. This
was accomplished by performing a reverse merger to place An-
gioGenex in a public market so that individual investors can have
liquidity with their investment and immediate upside on news of
company advancements.
Strategy 2. Focus development of the anti-Id drugs on their
synergy with taxanes like TaxolTM instead of exploring the sin-
gle agent activity in multiple tumor types and stages of tumor
development. The synergy of an anti-Id approach with Taxol has
been demonstrated in both in-house studies conducted at a re-
spected contract research organization and in studies reported
in the scientic literature. Using the anti-Id as an adjuvant to
Taxol also provides a relatively straightforward, easy to imple-
ment, lower cost and lower risk clinical trial design for the Phase
One study with the agent. As part of this strategy, the lead small
molecule anti-Id protein molecule will be developed initially and
the lead anti-Id gene antisense oligonucleotide studied only as a
back-up to the small molecule to conserve resources.
Strategy 3. Build the company for sale or partnership after proof
of concept is achieved in a Phase Two clinical trial. This will be
done because the optimum upside for early investors appears
to be achieving proof of concept but before the enormous in-
vestments needed to bring the product through registration and
product launch. This strategy requires reliance on contract re-
search organizations for most R&D activities (minimal infrastruc-
ture, low internal overhead, only performing studies needed for
proof of concept and to affect a smooth technical handoff to a
buyer or partner). The contract research organizations selected
for the activities will need to have a successful past experience
with FDA audits.
Strategy 4. Continue to optimize and evaluate the diagnostic
test. Availability of such a test would greatly increase the value
of the project to potential buyers or partners. In particular, medi-
cal insurance companies are more likely to accept requests for
reimbursements for treatment, if the decision to use the agent is
based on a pretreatment diagnostic that detects Id proteins in
blood or tumor.
Strategy 5. Perform research, as opposed to drug development,
only to expand and protect Id-related intellectual property and
to provide supporting data for the use of anti-Id drugs to treat
ocular conditions, such as age-related macular degeneration or
diabetic retinopathy. The intention is to partner these early to
provide funding for the oncology effort.
Summary
The nancial reward for developing successful new oncology
products appears to be greater than ever. However, obtaining
and carefully spending investment funds, not technical or regu-
latory obstacles, is now the greatest challenge to achieving suc-
cess in developing new therapeutic modalities for the oncology
market. The current reality demands that AngioGenex adopts
new strategies that minimize cost and maximize the chance of
clinical success for new agents.
Find Out More
To nd out more about AngioGenex, please visit the companys
Web site at www.angiogenex.com or send an e-mail to
garlandw@angiogenex.com. AngioGenex is currently seeking
$5 million to bring its rst therapeutic through completion of
Phase One clinical development. Please contact William Watson
at wwatson@choiceami.com for details.
Footnotes:
1 Lewis T, Chasing a cure, Medical Marketing and Media,
October 2008.
2 Perk J et al. Id family of helix-loop-helix proteins in
cancer. Nature Reviews Cancer 2005; 5: 603-614.
3 Parkinson DR, Ziegler J, Educating for personalized
medicine: a perspective from oncology, Clin Pharmacol
Ther. 2009; 86:23-5.
4 Kolata G, Altman LK, Forty Years War; Weighing Hope
and Reality in a Cancer Battle, Published August 28, 2009.
5 Kolata G, Pollack A, The Evidence Gap: Costly Cancer
Drug Offers Hope, but Also a Dilemma, New York Times;
Published: July 6, 2008.
6 Shaked Y, Henke E, Roodhart JM, Mancuso P,
Langenberg MH, Colleoni M, Daenen LG, Man S,
Xu P, Emmenegger U, Tang T, Zhu Z, Witte L, Strieter
RM, Bertolini F, Voest EE, Benezra R, Kerbel RS,
Rapid chemotherapy-induced acute endothelial progenit
or cell mobilization: implications for antiangiogenic
drugs as chemosensitizing agents. Cancer Cell. 2008;
14: 263-73.
Disclaimer: 7||s co|oo|ate o|oh|e |s oased 0oon |nfo|mat|on o|ov|ded oy
t|e |ss0e| o| comoany |eo|esentat|ve. 7|e |nfo|mat|on |s not |ntended to
oe, and s|a|| not const|t0te, an offe| to se|| o| so||c|tat|on of any offe| to
o0y any sec0||t|es. /t |s |ntended fo| |nfo|mat|on o0|ooses on|y, and to
|nc|ease awa|eness of Ang|oGenex, /nc.
Safe Ha|oo| Statement: 7|e statements |n t||s adve|to||a| |e|at|ng to
f0t0|e o|od0cts, oa|tne|s||os, tec|no|ogy, and oos|t|ve d||ect|on a|e
fo|wa|d |oo||ng statements w|t||n t|e mean|ng of t|e P||vate Sec0||t|es
/|t|gat|on Refo|m Act of 1995. Some o| a|| of t|e asoects ant|c|oated oy
t|ese fo|wa|d |oo||ng statements may not, |n fact, occ0|. Facto|s t|at
co0|d ca0se o| cont||o0te to s0c| d|ffe|ences |nc|0de o0t a|e not ||m-
|ted to cont|act0a| d|fhc0|t|es, demand fo| Ang|oGenex's common stoc|,
and t|e comoany's ao|||ty to oota|n f0t0|e hnanc|ng. M|c|o-cao Rev|ew
magaz|ne may |ave |ece|ved S6,000 cas| and/o| stoc| to o0o||s| and
o||nt t||s co|oo|ate o|oh|e. M|c|o-cao Rev|ew magaz|ne d|sc|a|me|s ao-
o|y and may oe |ev|ewed at www.m|c|ocao|ev|ew.com/d|sc|a|me|.o|o.
Befo|e |nvest|ng |n any sec0||ty, |eade|s a|e st|ong|y adv|sed to |ev|ew
a|| o0o||c h||ngs of t|e |ss0e| of s0c| sec0||ty, w||c| can oe fo0nd at
www.sec.gov, as we|| as wa|n|ngs o0o||s|ed oy t|e SEC at www.sec.
gov/|nvesto|s.
PROFILED COMPANIES
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NY Seth Farbman PRESIDENT
(212) 730-4302 sfarbman@v lings.com
150 West 46th Street New York, NY 10036
LA Shai Z. Stern CHIEF EXECUTIVE OFFICER
(310) 417-1050 sstern@v ings.com
5670 Wilshire Blvd. Los Angeles, CA 90036
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8roker Deoler Upoote
This initial column will address the duties of the Financial Indus-
try Regulatory Authority (FINRA). The FINRA Web site states the
following:
Created in July 2007, FINRA is the leading non-governmental
regulator for all securities rms doing business with the U.S.
publicnearly 4,800 rms employing nearly 647,000 registered
representatives. Our chief role is to protect investors by main-
taining the fairness of the U.S. capital markets. We carry it out by
writing and enforcing rules, examining rms for compliance with
the rules, informing and educating investors, helping rms pre-
empt risk and stay in compliance, and providing trade reporting
and other industry utilities.
(www.nra.org/AboutFINRA/Leadership/index.htm)
When someone has concerns over their interaction with FINRA
they need to contact the Ofce of the Ombudsman. This ofce
is in place to provide a private and impartial forum for any entity,
which interacts with FINRA. I urge you to utilize their services
more frequently. Listed below is the purpose of the ofce and
the contact information.
The Ombudsmans Ofce provides a neutral and condential
forum for member rms and their employees, public investors,
and any other business or individual who interacts with FINRA
to voice their concerns about operations, enforcement, or oth-
er FINRA activities or staff. Individuals who are unsure of the
proper channel for addressing a concern or feel that the issue
cannot be resolved through other channels should contact the
Ombudsmans Ofce.

Upon receiving a concern, the Ombudsmans Ofce conducts
an independent review of the situation and works toward the
identication and evaluation of positive solutions for all parties
involved.

Please note that the Ofce of the Ombudsman is not meant to
replace other channelssuch as the Investor Complaint Center,
the Ofce of the Whistleblower or BrokerCheckfor addressing
issues related to other organizations. Rather, the Ombudsmans
Ofce can help resolve concerns about FINRA or its staff in a
fair, impartial and condential manner. If staff from the Ombuds-
mans Ofce is unable to assist you with your concern, we will
gladly direct you to FINRA personnel who can help you.
Contact the Ombudsman:
Call toll-free at (888) 700-0028, weekdays from 9 a.m. to 5 p.m.,
EST.
Write to: FINRA Ombudsman
P.O. Box 9492
Gaithersburg, MD 20898-9492
(www.nra.org/AboutFINRA/Ombudsman/index.htm)
FINRA is establishing a consolidated FINRA rulebook that will
consist solely of FINRA Rules. Until the completion of the rule-
book consolidation process, the FINRA rulebook includes NASD
Rules and Incorporated NYSE Rules (together referred to as the
Transitional Rulebook), in addition to the new consolidated
FINRA Rules. As the FINRA Rules are approved and become
effective, the rules in the Transitional Rulebook that address the
same matter of regulation will be eliminated. When the consoli-
dated rulebook is completed, the Transitional Rulebook will have
been eliminated in its entirety.
While the NASD Rules generally apply to all FINRA members,
the Incorporated NYSE Rules apply only to those members of
FINRA that are also members of the NYSE. FINRA Rules apply
to all members, unless such rules have a more limited applica-
tion by their terms.
All FINRA members are subject to the FINRA By-Laws and
Schedules to the By-Laws.
(www.nra.org/Industry/Regulation/FINRARules/index.htm)
Fifty-eight rule lings have been initiated so far this year. Over
53 notices have been listed through August 31, 2009. There is
a short time window allowed for members, investors, and the
general public to comment on the proposed FINRA rules and
regulatory notices. FINRA members should be more proactive in
commenting on the proposed rules that govern FINRA member
rms.
Navigating this maze of lings and notices can be overwhelm-
ing. This column will help guide the broker dealer community
through these complex corridors and direct rms to the appro-
priate resource that can help them nd what they need.
8y Jock Leslie
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I was never good at selling life insurance. This was because I
couldnt honestly tell clients that they would ever make a penny
from a policy. Despite the returns and tax savings touted in
glossy marketing materials, I couldnt look clients in the face
and tell them that the returns would accrue only after they were
dead. And when this happened, the death benets would go to
someone elsetheir heirs. What kind of investment was that?
And besides, I had been more of an investment guy than an
estate planner, so I avoided life insurance pretty much across
the board. Then I learned about the life insurance settlements
market, or simply life settlements market.
I learned that seniors could actually sell their policies to inves-
tors who would hold and pay for the policy until the eventual
death claim was paid. This changed everything for me. What if
seniors could activate a policy, and later sell it at a prot? There
was a time when there was no question that this could be done.
These days doing so may not be that easy, but the point is that
a living person has a way to get out of a policy that he/she no
longer wants. In fact, policy holders can often make a prot, or
at least recover a portion of their investment. For seniors, life
insurance is no longer a dead-end street where they are left with
an unwanted policy that faced lapse after years of premium pay-
ments. Now there is liquidity where once there was none.
I also learned that banks owned tons of life insurance policies on
executives who worked at the bank in the past. Large corpora-
tions also took out policies on their key employees. After the
key employees retired, some retained the policies and others
sold them to investors. Warren Buffet is one such investor in
these types of policies.
The life settlements market is a large market in which insurance
policies are bought and sold every day. We used to say that this
market was not correlated to the stock, bond, and real estate
markets. Last fall many investors realized that when liquidity
evaporated to such a point, all assets dropped in value, regard-
less of past correlation.
The life settlements market has been knocked around by the
credit crunch in recent years, but the market seems to be re-
covering. From a practical standpoint, there appears to be no
correlation between how long an individual will live and what is
happening in the stock market. This is one of the primary driv-
ers behind the growth of the life settlements market. People
simply want easy-to-understand investments whose value will
not evaporate overnight. I view this market as one of the key
areas without any real correlation to other asset classes where
investors can get solid returns.
The basic premise is simple you buy a dollar for a dime and
you pay a nickel each year until the dollar matures at some un-
known date. My oversimplication is meant to explain that this
investment involves buying a contract at a steep discount, with
an annual carry cost that is also low. There is, however, no cer-
tain maturity date, so the risk is that the insured person lives too
long and wipes out any gains you may expect. You can imagine
that buying an insurance policy on an 80 year-old male for a
dime and paying a nickel each year to continue the policy seems
like a safe and protable investment. Continuing our example, if
our 80 year-old male lives to 90, the cost basis is only 60 cents
on the dollar.
I recently spoke with a few investment ofcers of large European
pension funds. The investment managers expressed interest in
the market, but said that the market would have to grow sub-
stantially before they could invest. This surprised me because
the market was estimated to be $12 billion or so annually. The
problem was that these pension fund managers were managing
VERY large funds. A direct allocation (one-half percent of assets
under management) would equate to roughly $12 billion and
soak up an entire years worth of policy sales! This market was
clearly not ready for such large investors. Investment manag-
ers admitted that they had invested in smaller hedge funds that
currently have exposure to the market. The reaction by pension
fund managers was an indication that we were moving in the
right direction, but that we were not quite there yet.
In recent years, some analysts claimed that we could have a
$100 billion market in the next decade or so. This means that
in the next few years the same pension managers may seri-
ously consider the life settlements market. The growth rate of
this market has been around 20 percent annually. Last years
growth, however, did not keep up with projections, so we will
have to see what the future holds.
All in all, I would say that the market is maturing and has ad-
justed to the problems in the past 12 months. Clearly there is
some correlation between the life settlements market to other
markets, but overall the correlation is minor. The life settlements
market looks to have a promising future. After we resolve some
outstanding tax and regulatory issues, the market should do
very well.
Life lnsuronce for lnvestment
8y Jeff Keller
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Pure Woter-ur ^ost Precious Resource
Revolutionory Woter Treotment Technology
3ionix Corporotion (3lNX} $0.20 TC88
^orket Cop -- $28 million
Sionix Corporation is a water company with a unique product
and a promising future. The company has done much to perfect
its patented water treatment technology. Research and devel-
opment success in recent years has translated into commercial
deals. Because Sionixs water purication technology has dis-
tinctive advantages, the company stands to capture signicant
market share in the global water infrastructure and purication
market. To better appreciate Sionixs value, investors will need
to understand the global water purication market, the compa-
nys Elixir water treatment system, and the companys growth
plans.
Although the majority of the earths surface is covered by water,
only three percent of it is freshwater. And of this three percent,
only a fraction is available for use. Today close to one billion
people lack adequate access to clean drinking water. Accord-
ing to the World Bank, 88 percent of all diseases are caused
by unsafe drinking water, inadequate sanitation, and poor hy-
giene. About half of the worlds hospital beds are occupied by
patients suffering from waterborne diseases. Besides the de-
veloping world, the United States has an urgency to upgrade its
water infrastructure to keep drinking water safe. According to
the U.S. Environmental Protection Agency (EPA), the United
States will need to spend $334 billion over the next 20 years to
maintain and improve the countrys public water infrastructure
and to comply with the Safe Drinking Water Act. Of this amount,
approximately $60 billion will be needed to upgrade thousands
of water systems that serve fewer than 3,300 people. At any
given time, thousands of such water systems do not meet EPA
standards.
In addition to the water utilities market, the Elixir water treat-
ment system is also ideal for industrial wastewater purication,
onsite hotel water purication services, sewage treatment, and
water purication needs that arise from emergencies and natural
disasters. Further, developing countries have an urgent and criti-
cal demand for cost-effective water purication systems.
U.S. federal laws require many industrial companies that pro-
duce waste water to clean and process polluted water before
disposing of it. Companies subject to such regulations include
oil and gas companies, hog and poultry operations, meat pro-
cessing plants, and dairy farms. As will be discussed, Sionix has
already delivered its Elixir system to an oil and gas customer.
Sediment-based or slow sand ltration is the most commonly
used water purication method in the United States. This sys-
tem, however, has many drawbacks. The method uses ltration
beds with very large concrete structures that require large tracts
of land, often hundreds of feet long. In addition, the ltration
process is time consuming. Filters often become clogged and
must be back-ushed with water, which in turn produces ad-
ditional waste water. Besides the higher operating costs and
greater land use, sediment-based ltration does not protect
8y 3teven Greennelo
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against many harmful pathogens that are too small to be removed
by slow sand ltration. To kill these pathogens, water utilities have
to use large amounts of disinfectants. Disinfectants can react with
organic matters in the water to create harmful by-products, such
as Trihalomethanes, a cancer-causing compound.
Sionixs Elixir water treatment system uses patented dissolved air
oatation (DAF) technology with the following benets.
DAF technology removes 99.95 percent of the organic particles
in the water (as well as over 90 percent of dissolved iron and man-
ganese), and provides a barrier against microbial contaminants,
thereby greatly reducing the need for disinfectants, such as chlo-
rine.
DAF technology reduces the need for coagulant and system
back ushing.
DAF technology flters water fve to ten times faster than con-
ventional slow sand ltration methods. The Elixir system can treat
higher volumes of water with a much smaller physical plant.
The Elixir water treatment systems are built into standard 30- or
40-foot ISO containers that can be easily transported by truck,
train, or plane. A customized Elixir system can be delivered to a
customer within 12 weeks of the order.
Besides containing all the necessary steps to achieve clean
drinkable water, each tiny unit is secure from outside contamina-
tionboth deliberate and natural.
Due to its portability, the Elixir system is ideal for use in emergen-
cies and humanitarian missions around the globe.
A single Elixir water treatment system can produce up to 325,000
gallons of water per day, or enough water for 2,400 people or 500-
600 homes in the United States. Thus, a single Elixir system can
provide the water purication needs for a small community while
meeting EPA requirements. In the developing world, where per
capita water consumption is much less, a single unit could provide
water treatment to a community 10 to 20 times larger. In addition,
multiple units can be grouped together for increased capacity.
Perhaps the greatest attraction of Sionixs Elixir system is its cost.
A Sionix water treatment plant costs about three to ve times less
to construct than conventional plants. Since the DAF system re-
moves 99.5 percent of organic matter, fewer disinfectants and back
ush processes are needed, which translates into lower operating
costs. Chemical disinfectant costs of a Sionix system are up to 20
percent less than those of conventional sedimentation systems.
In 2007, Sionix signed an agreement with the Serrano Water Dis-
trict in Orange County, California to install an Elixir treatment sys-
tem at the Villa Park Dam to treat runoff water. The company has
used this project to continually test, evaluate, and improve the
Elixir system. The company has achieved promising results and
intends to market the Elixir system to municipalities that want to
comply with EPA regulations at a fraction of the cost of conven-
tional methods.
In June 2009, Sionix delivered an Elixir water treatment unit to In-
novated Water Equipment, an oil and gas services company. The
unit will be used to process contaminated water produced by nat-
ural gas wells. Because the Elixir system can be easily shipped
onsite, the customer avoids the high costs of shipping the con-
taminated water to a treatment plant or landll. This project could
represent a signicant opportunity for Sionix, given there are thou-
sands of natural gas and oil wells in the United States.
During a recent conference call, Mr. John Pavia, Sionixs chairman
of the board, spoke of the companys signicant growth potential
due to the many markets that the Elixir system could serve. He
referenced several deals currently being negotiated that will likely
be signed by year end. Specically the company is in the process
of signing two multi-unit deals, one with an overseas customer.
Before 2009, Sionix focused on research and development. The
company recently began to shift focus from research to marketing
and sales. The efforts are bearing fruit, as the company is about
to enter into agreements with customers in multiple industries
and markets. As the worlds demand for clean water continues
to grow, Sionixs water purication market share will increase. If
the world will beat a path to ones door for a better mouse trap,
imagine what they will do for clean water.
Readers with questions about this article should send an e-mail to
Steven Greeneld at steven@greeneldresearchgroup.com or call
516-300-4070. More information about Sionix Corporation can be
found at www.sionix.com.
Footnotes:
1. The remainder is locked in icecaps and glaciers.
2. See the EPAs 2007 D||n||ng Wate| /nf|ast|0ct0|e
Needs S0|vey and Assessment.
3. Of this amount, $75 billion will be for water
purication and treatment.
M|. G|eenhe|d |s t|e o|es|dent of G|eenhe|d Resea|c| G|o0o, //C, an eq0|-
ty |esea|c| and |nvesto| |e|at|ons h|m t|at emoowe|s sma||-cao and m|c|o-
cao comoan|es to cost-efhc|ent|y comm0n|cate t|e|| sto|y |n a way t|at |s
|ead||y 0nde|standao|e oy |nd|v|d0a|, |eta||, and |nst|t0t|ona| |nvesto|s. M|.
G|eenhe|d |as ove| 10 yea|s of exoe||ence |n t|e sec0||t|es and hnance
|nd0st|y as a Wa|| St|eet co|oo|ate atto|ney and an |nvestment oan|e|.
27
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Veritec, Inc. is an emerging star in the market for mobile nancial
cards, biometric identication (ID) cards, and the convergence of
these technologies into a single universal card. Headquartered in
Golden Valley, Minnesota, the company was founded in 1982 by a
NASA scientist who invented the original VeriCode (2-D barcode)
to mark and track space shuttle system components. At the time,
this data storage technology was considered too complex to be
used for human identication. The VeriCode technology, however,
helped spawn an industry of public domain 2-D bar codes that are
widely used today.
Veritecs technology is now ready for human identication ap-
plications. The company appears headed for great success af-
ter integrating its mobile banking software platform with its data
processing center and Visas third party card transaction services.
Veritecs target markets include prepaid and debit cards and citi-
zen identication cards that can be used for secure EBT payment
transactions. These electronic cards can be readily linked to the
rapidly evolving mobile and Internet communications markets.
Veritec operates in a high growth niche. The companys technol-
ogy is available worldwide at low cost. Further, the technology is
highly secure and provides unmatched storage capacity and mas-
sively scalable data processing.

Using proprietary bar coding technology, Veritecs Bio-ID card can
securely and accurately verify each cardholders identity. Veritecs
codes can be printed on inexpensive media, such as plastic cards
and paper, using off-the-shelf printers. The technology allows for
high security and exceptionally large data storage. These advan-
tages allow card issuers to enroll citizens using the Bio-ID card
with a complementary suite of software and readers. Veritec is a
small company, but its technology and products are robust. With
an experienced management team, the company cooperates with
strategic partners globally to provide the necessary supporting
hardware and system integration. And perhaps most importantly,
customers can deploy Veritecs technology using limited stafng
and overhead support.

Veritecs MTC mobile prepaid cards have special security and
convenient features that surpass those of other nancial cards in
the industry. Using their mobile phone or the Internet, cardholders
can literally turn the card on and off at will, at any time. Money can
be transferred instantly to and from the card by electronic funds
transfer, check, another card, or using the Visa Ready-link net-
work. The card can be used for payroll, money transfer, and money
management in real-time and cost-effectively. Cardholders will no
longer need to buy a money order, use a check, or go to the bank
or money transfer location. They can simply use the prepaid cards
with the Internet or a phone.


To complement its MTC cards, Veritec also offers a state-of-the-
art product called PhoneCodes. It allows merchants and mobile
phone carriers to send or receive an electronic ticket, coupon, gift
certicate, or a receipt instantly via a text message to a cell phone.
For example, when the cardholder uses the Veritec MTC card to
purchase products over the Internet, the cardholder can request
an electronic receipt to the cell phone. The cardholder can also
use the MTC card to receive credit from store coupons or rewards
programs as well.
In summary, Veritec is a technology company that has spent over
$20 million during the last 10 years to develop its specialized tech-
nologies. Its research and development effort has resulted in a suite
of great products that are tested and ready for the marketplace.
Veritec is a publically traded company (OTC:VRTC.PK). Additional
information on the company is available at www.veritecinc.com or
www.vtfs.com, or by contacting Jeff Hattara, president and chief
executive ofcer, at (763) 253-2670 or jhattara@veritecinc.com.
D|sc|a|me|: 7||s co|oo|ate o|oh|e |s oased 0oon |nfo|mat|on o|ov|ded oy
t|e |ss0e| o| comoany |eo|esentat|ve. 7|e |nfo|mat|on |s not |ntended to
oe, and s|a|| not const|t0te, an offe| to se|| o| so||c|tat|on of any offe| to o0y
any sec0||t|es. /t |s |ntended fo| |nfo|mat|on o0|ooses on|y, and to |nc|ease
awa|eness of ve||tec, /nc.
Safe Ha|oo| Statement: 7|e statements |n t||s adve|to||a| |e|at|ng to f0-
t0|e o|od0cts, oa|tne|s||os, tec|no|ogy, and oos|t|ve d||ect|on a|e fo|wa|d
|oo||ng statements w|t||n t|e mean|ng of t|e P||vate Sec0||t|es /|t|gat|on
Refo|m Act of 1995. Some o| a|| of t|e asoects ant|c|oated oy t|ese fo|-
wa|d |oo||ng statements may not, |n fact, occ0|. Facto|s t|at co0|d ca0se
o| cont||o0te to s0c| d|ffe|ences |nc|0de o0t a|e not ||m|ted to cont|act0a|
d|fhc0|t|es, demand fo| t|e comoany's common stoc|, and t|e comoany's
ao|||ty to oota|n f0t0|e hnanc|ng. M|c|o-cao Rev|ew magaz|ne may |ave
|ece|ved S6,000 cas| and/o| stoc| to o0o||s| and o||nt t||s co|oo|ate o|o-
h|e. M|c|o-cao Rev|ew magaz|ne d|sc|a|me|s aoo|y and may oe |ev|ewed
at www.m|c|ocao|ev|ew.com/d|sc|a|me|.o|o. Befo|e |nvest|ng |n any se-
c0||ty, |eade|s a|e st|ong|y adv|sed to |ev|ew a|| o0o||c h||ngs of t|e |ss0e|
of s0c| sec0||ty, w||c| can oe fo0nd at www.sec.gov, as we|| as wa|n|ngs
o0o||s|ed oy t|e SEC at www.sec.gov/|nvesto|s.
Veritec's Technology
8etter, Foster, ono Cheoper
PROFILED COMPANIES
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8y Dr. Lorry ^oy
People take vitamins and mineral supple-
ments for various reasons. The most obvi-
ous reason is to stay healthy and avoid dis-
eases. Few people, however, understand
how vitamins and mineral supplements
actually work. Even scientists arent quite
sure either. Knowledge of this area is very
much a work in progress. One thing for
sure is that current studies have disproved
vitamins as a magic bullet to prevent an as-
sortment of diseases. Taking a multivitamin
is a recommended form of nutritional insur-
ance, but you must choose wisely to avoid
doing more harm than good.
My fascination with vitamins and supple-
ments began when I was a kid. Like many
people, I would often read the US Depart-
ment of Agriculture (USDA) label on cereal
boxes and tried to make sense of what the
nutrition and recommended daily allowance
(RDA) information meant. My thinking has
evolved since then. As a physician, I start-
ed dismissing the idea that vitamin supple-
ments were essential because of Americas
great bounty of foods. Amazingly, conclu-
sions about vitamins have changed little.
Its important for people to keep the follow-
ing points in mind:
1) The best source of
vitamins and minerals is food.
2) Natural supplements are better than syn-
thetic ones.
3) The belief that more is better is incorrect.
4) Vitamins should be taken with meals to maximize
benets.
5) Availability is better when the same amount is
consumed in a divided dose.
6) Scientic research and medical judgment is
essential to choosing the right form and dose as
research evolves.
Taking multivitamins/minerals is an acceptable option under cer-
tain conditions. The devil is in the details. The following discus-
sion is designed to help you evaluate the facts and make the best
judgment.
Vitamin A is more stick than carrot
Vitamin A is a retinoid compound, which is closely related to car-
otenoids. Prominent carotenoids include Lycopene, lutein, and
zeaxanthin. Vitamin A is an antioxidant that helps maintain good
vision, a strong immune system, proper bone metabolism, and
healthy skin.
People mistakenly believe that vitamin A can protect against can-
cer. A disturbing study found that vitamin A actually increased the
rates of lung cancer and death in smokers. Another concerning
study showed that taking high doses of vitamin A can increase the
risk of osteoporosis. A nurse health study of 72,000 postmeno-
pausal women found that consuming higher levels of vitamin A
signicantly increased the risk of hip fractures.
People often take too much vitamin A and in the wrong form. Vi-
tamin A is best ingested as food and taken in a limited amount as
a retinol, along with beta carotene and mixed carotenoids. Total
vitamin A should not exceed 3,000 units per day.
Vitamin B is strong, happy and alert
The B vitamins are water soluble. They are critical cofactors in bio-
logic processes that generate energy, support mood and cogni-
Vitomin Complexities
ono 8est Resolution
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tion. Many people consume B complex vitamins to increase ener-
gy and alertness. It has been a popular practice among physicians
to administer vitamin B12 as a treatment for fatigue.
As people age, absorption of B vitamins decreases. Medications,
such as diuretics, deplete nutrients, notably thiamine B1. Thiamine
B1 deciency can lead to a condition called Beriberi. Alcoholics
suffer from a variety of serious problems as a result of extreme thi-
amine B1 deciency, including amnesia and cognitive impairment
known as Wernicke-Korsakoff syndrome. An amount of thiamine in
excess of the recommended daily allowance is good insurance.

Riboavin B2 participates in a variety of reactions in metabolism
that generates energy. The USDA recommended daily allowance is
around 1 mg, which is easily obtained from food. Higher amounts
in B-complex preparations are safe. A 400 mg dose of riboavin
has been used for prevention of migraine headaches.

Niacin, known as nicotinic acid or vitamin B3, is an essential nutri-
ent. Niacin deciency can lead to diarrhea, dermatitis, and de-
mentia. It occurs in situations of extreme poverty, malnutrition, or
chronic alcoholism. In doses of 500 mg to several grams, niacin
becomes an effective drug to improve lipid proles, lowering cho-
lesterol and triglycerides, and raising the good HDL cholesterol.
Flushing is a common side effect but the popular ush free inosi-
tol Hexa-nicotinate does not improve cholesterol proles.

Pantothenic acid or vitamin B5 participates in energy production
within the cell. The daily required dose is about 5 mg but more is
not harmful. A derivative of vitamin B5, pantethine has been shown
to improve lipid proles in 600 mg and 900 mg doses, but the re-
search is preliminary.

Biotin or vitamin B7 is important for maintaining healthy hair, skin,
and nails. Although the recommended daily allowance is only 30
mcg, up to 300 mcg in a multivitamin is suggested.

High levels of homocysteine are associated with vascular disease,
both of the arteries and the veins. It is associated with impaired
circulation and osteoporosis. Several studies conrm that three
B vitaminspyridoxine B6, folate B9, and cyanocobalamin B12
signicantly reduce homocysteine, but the impact on the disease
was modest at best. Women who are going to become pregnant
should consume folic acid to prevent neural tube defects. Some
studies suggest folic acid reduces the incidence of colon cancer
while another study found folic acid increased the incidence of
prostate cancer.
Pyridoxine or vitamin B6 has been advocated as a treatment for
carpal tunnel syndrome while higher doses may cause nerve dam-
age.
Despite conicting data, generous quantities of folic acid, vitamin
B6, and vitamin B12 are recommended to support a healthy, nor-
mal level of homocysteine.
Vitamin C less may be more
Vitamin C is an essential nutrient for humans and has been pro-
moted for the prevention of the common cold and treatment of
cancer. Vitamin C is an antioxidant with biological effects on hair,
skin, and immunity. The disease scurvy is cured by the ingestion of
food containing vitamin C. The British slang term, Limey, refers to
the consumption of limes by British sailors to prevent scurvy.
Research has yet to prove conclusively that vitamin C is effective
in preventing or treating respiratory infections, despite the popu-
lar sales of commercial preparations. Current studies of vitamin C
alone or in combination with vitamin E have failed to show that it
prevents vascular disease, cancer, or intellectual decline. A quan-
tity in excess of 200 mg of vitamin C is minimally absorbed and
those who take excessive quantities are enriching their toilet wa-
ter.
There is no evidence to support high dose of vitamin C for its cu-
rative powers. The recommended daily intake is 90 mg, but twice
that amount would be ne. Natural sources are preferred without
proof of superiority.
Vitamin D achieves honor grades
Vitamin D is the current superhero vitamin. It is essential to the
absorption and use of calcium. Vitamin D deciency has been as-
sociated with a variety of diseases, including osteoporosis, cancer,
and heart disease. There is tentative evidence that vitamin D may
prevent conditions as diverse as multiple sclerosis and prostate
cancer. Scientists are currently studying the role of vitamin D in the
prevention and management of breast cancer.
The active vitamin D3 or cholecalciferol is manufactured in the skin
with the help of sunlight, a natural form of vitamin D. Vitamin D
deciency is more common in climates where sunshine is rare and
in people with dark skin. Rickets, a disease caused by vitamin D
deciency, has all but disappeared in developed countries, but de-
ciency in children has been associated with a variety of diseases
in later life.
Vitamin D can be supplemented in amounts higher than the 400
units previously recommended. It appears that 800 to 1000 units
are appropriate for anyone and can be increased for people with
osteopenia or osteoporosis.
Vitamin E no longer stands for excellent
Vitamin E is a popular supplement with an interesting history. It
was promoted as a sex tonic based on faulty logic. People be-
lieved that because vitamin E deciency caused degeneration of
the sexual organs and function, supplementation would make one
super sexual. This is no longer considered as a reason to take
vitamin E.
Vitamin E is an antioxidant that many people believe will prevent
diseases, notably vascular disease and prostate cancer. Several
studies have disputed such claims. Recent studies have shown
that taking vitamin E (up to 400 IU) does not postpone or prevent
heart problems and may actually do harm. Part of the problem can
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be attributed to the massive supplementation with the synthetic
d-alpha-tocopherol acetate rather than the eight natural forms.
The recommended daily intake is 30 IU yet 400 IU of d-alpha-to-
copherol acetate were most commonly consumed. The adverse
results from excessive supplementation of vitamin A and vitamin
E may reect that the single form saturates the receptors blocking
the benets from the other carotenoids and tocopherols. A more
natural and better alternative would be to use mixed tocopherols;
taking mixed tocopherols in amounts up to a little more than 3O IU
per day is probably best.
Vitamin K is for clotting
The K factor derives from the German spelling of coagulation and
most people recognize the association of vitamin K with clotting
cascade. It has also been shown to reduce hip fractures and may
have other benets. There are at least ve forms: vitamin K1 to K5.
Vitamin K2 is becoming the darling of the nutrition industry.
Vitamin K supplementation is benecial in a multivitamin and in
preparations designed to reduce the progression of osteopenia
and osteoporosis. Vitamin K2 may be benecial for cardiovascular
health, but the high cost does not justify the tantalizing benets
touted by emerging data.
Vitamins are most often provided in combination with minerals,
calcium, magnesium, zinc, copper, selenium, and others. There
are well-known interactions within tablets: vitamin-to-vitamin,
vitamin-to-mineral, and mineral-to-mineral. It is best to provide
vitamins in two tablets, separating those known to interact and
dividing the daily doses of others to enhance absorption and the
biologic availability.
The science of optimal supplementation is evolving but you now
have the facts for making the best judgment based on current sci-
ence.
D|. /a||y May g|ad0ated P|| Beta Kaooa f|om Ha|va|d Un|ve|s|ty w|t| a
oac|e|o|'s deg|ee |n econom|cs. He |ece|ved ||s M.D. deg|ee f|om Ha|-
va|d Med|ca| Sc|oo| and como|eted ||s |es|dency |n |nte|na| med|c|ne at
Massac|0setts Gene|a| Hoso|ta|. He |s t|e fo|me| c|a||man of t|e med|ca|
adv|so|y ooa|d of He|oa||fe and |s t|e med|ca| d||ecto| of 7a|geted Med|ca|
P|a|ma. D|. May |s on t|e fac0|ty of t|e UC/A Sc|oo| of Med|c|ne and |as
a0t|o|ed seve|a| ooo|s, |nc|0d|ng a ooo0|a| textooo|. He c0||ent|y o|ac-
t|ces med|c|ne |n t|e 7a|zana d|st||ct of /os Ange|es and cons|stent|y |s
|ecogn|zed oy oee|s as oe|ng among t|e oest docto|s |n t|e co0nt|y. He
|as oeen |nc|0ded |n t|e o0o||cat|on, Best Doctors in America.
LIFESTYLES
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U3 Preventive ^eoicine
Three days after Chris Feys rst birthday, a tragedy occurred
that set the stage for what would become his lifes purpose. His
29-year-old father died of colon cancer. Fey had no memory of
himonly the direct experience of how disease and death leaves
an imprint on those left behind.
A second experience is still vivid in his mind. On a carefree
Sunday afternoon, Fey and several members of the family were
boating on the Intracoastal Waterway near Jacksonville, Florida.
The 46-foot luxury boat was one of the tangible rewards of a
successful career in building
HMOs and nothing made
Fey happier than to be be-
hind the wheel.
Jim, my brother-in-law, was
standing right beside me,
Fey said. Suddenly, with no
warning, he suffered a mas-
sive stroke. He was only 39
years old. He survived, but
hell never be the same.
That event shook Fey and he
started digging deeper into
how such a calamity could
have occurred. Jim had ac-
cess to excellent medical
care and had played by the
rules. Despite having spent
his entire career in health
care, what Fey learned sur-
prised even him.
Essentially, the medical system is designed to care for the sick,
not to prevent those in good health from getting sick. I knew the
system was not geared toward prevention, but I had no idea how
difcult it was for employers, government agencies, and other
organizations to steer individuals toward a sound prevention pro-
gram.
Fey immediately founded HealthScreen America, Inc., a retail
center offering consumers their choice of blood tests and di-
agnostic screenings, such as ultrasounds and CT scans of the
heart, lungs, and colon. It wasnt until the 2004 creation of U.S.
Preventive Medicine, Inc., however, that all of the components of
a cohesive prevention solution began to come together.
The timing could not have been better as the nation continues
to reel from escalating health care costs. Preventable illnesses,
such as heart disease and diabetes, account for eight of the nine
leading causes of death in the United States and contribute to 75
percent of all healthcare spending. That amounts to $2.26 trillion
or $7,439 per person every year, according to the American Col-
lege of Preventive Medicine.
These health care costs are usually driven by situations such
as hospitalizations, emergency room visits, poor medication
compliance, deviations from treat-
ment plans that can be prevent-
ed when the appropriate steps are
taken at the right time, said Fey.
The problem is in knowing where
to turn for a trusted advocate to
help navigate these key compo-
nents of prevention. The solution
is getting the right care at the right
time and at the right priceas we
help our members do.
The Milken Institute study, An
Unhealthy America: The Econom-
ic Burden of Chronic Disease,
points to three critical solutions
that would save the U.S. $1 trillion
annually and chart, as the studys
subtitle suggests, A New Course
to Save Lives and Increase Pro-
ductivity and Economic Growth.
Those three solutions, it turns out,
are exactly the business we are in. Milken, which is a nonparti-
san think tank, says the keys to getting health care costs under
control are prevention, early detection, and chronic condition
management, said Fey, who serves as the companys chairman
and CEO.
The company has bundled the clinical practice of primary, sec-
ondary, and tertiary prevention into a health benet plan, much
like a vision or dental plan, and named it The Prevention Plan.
Fey said this suite of intensive wellness, chronic care manage-
ment and early disease detection programs were specically de-
signed to improve health outcomes while reducing health care
costs. While the company does not take risk or pay claims, it
does stratify the risks of each member and uses Web 2.0 tech-
nology to push customized content, action plans, services, and
care coordination to each member.
Chonging the Heolth Core Porooigm With
lntensive Prevention Attention
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Quite frankly, we continue to have an amazing reception in the
marketplace. From car dealerships to health system medical de-
partments to the worlds top benet consultant rms, employers
are implementing The Prevention Plan because they can see that
it works, said Dan Tillotson, CEO of The Prevention Plan. We
educate individuals about their health risks, teach them what to
do, when to do it, and provide them with all the assistance they
need each step of the way.
Its an investment employers are realizing they must make.
Why would an employer pay for a health management program
like this? Double digit increases in health insurance costs year
over year give them little choice, Tillotson said, A comprehen-
sive program like The Prevention Plan ultimately puts payors in
charge of their health care costs. Employees get ahead of the
curve by getting the knowledge and support to stay healthy or to
better manage their health risks, which translates into a long-term
savings over time. There is plenty of evidence that supports the
premise that prevention provides a return on investment. Thats
why we back our program with a guarantee.
INNOVATIVE PRODUCTS:
The Prevention Plan
This groundbreaking program enables individuals to determine
their top health risks and receive a customized plan and coaching
from nurses to lower those risks. The key is the expert coaches
and registered nurses who provide members with encouragement
every step of the way. If members need health and prevention
information, they can call a registered nurse any time of the day
or night.
Members also receive a one-stop, personalized Web site to
store medical information, complete educational health programs,
receive reminders about needed screenings, track personal prog-
ress, and learn about work-related preventive benets and incen-
tives.
One of the most innovative elements of The Prevention Plan is the
Prevention Score, which tracks an individuals preventive actions
over time. The Prevention Score allows employers to track and
reward an employees individual prevention efforts throughout the
year, while still protecting their privacy. It works in three ways:
Measures changes to key health
indicators, such as cholesterol level,
blood pressure, smoking status, and body
measurements over time;
lncreases as employee takes
recommended prevention steps
during the year, such as annual screenings
and participating in online action plans;
Allows employers to customize incentives
and reward healthy behavior based on the
prevention level that the employee achieves.
In addition, The Prevention Plan offers challenges and prize draw-
ings throughout the year that employees can participate in for ad-
ditional motivation and rewards.
Employers and sponsors are not forgotten. They receive in-depth
reports about the employee population at regular intervals. These
opportunity reports are invaluable in understanding the health and
lifestyle risks of their population, so wellness and care manage-
ment programs can be directed most effectively to reduce those
risks. The report provides an aggregate analysis of information
that includes:
Enrollment and participation metrics;
Member demographics by age, gender,
education, division, location, health plan, etc.;
Member health interests;
Population health risks, including
pre-condition risks, diagnosed and
projected chronic conditions;
Top risks and lifestyle metrics;
Prevention schedule completion ;
Health management opportunities;
Cost containment and savings projections;
Member satisfaction.
The Prevention Plan CM
The Prevention Plan CM brings intensive disease management
resources to individuals with costly chronic conditions. By under-
standing the barriers that impede better health and working close-
ly with each person and associated health care providers either
by phone or in the home and workplace registered nurses in
The Prevention Plan work to limit the progression of an existing
condition and detect other potential issues before they can cause
harm. The program focuses on intensive personalized care to in-
dividuals to help them comply with their physicians care plan,
manage their condition more effectively, and improve their overall
health and productivity. Components include:
Dedicated RN Care Managers;
24/7 support onsite, in-home, and by phone;
Collaboration with providers, community
resources, family members, and others;
Health education;
Application of behavioral change models to
engage the member in lasting, lifestyle changes;
Specialized programs for a variety of costly
conditions, including asthma, CAD/PVD, chronic obstructive
pulmonary disease, diabetes, HIV/AIDS, high risk pregnancy
and maternity, obesity, and mental health issues.
The Prevention Plan Premium
This concierge program, designed especially for busy individu-
als, offers the most extensive assessment of an individuals overall
health. The program includes all of the benets of The Prevention
Plan, plus:
Dedicated Member Care representative
with a direct telephone number;
Personalized assistance with registration,
scheduling, and HRA completion;
Lab/biometrics arranged at member's
convenience home, ofce, or lab facility;
Personal RN Advocate to provide unlimited
coaching, education, and support;
Assisted scheduling with Executive Health
PROFILED COMPANIES
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Program or Advanced Preventive
Diagnostic service through the Global
Prevention Network afliate of choice;
Consult-a-Doc: 24/7 physician consulting service.
The Prevention Plan Prime
By closely collaborating with the medical staff at senior living
communities, RN Advocates provide PrimeSM members with
thorough, long-term preventive services, such as health risk as-
sessments, personal coaching, and resource coordination. Life-
style improvements related to safety, diet, and exercise also are
addressed. The RN Advocate even serves as a personal liaison
with family and communities services when needed.
REMAINING AT THE FOREFRONT
Each of these proprietary advancements is positioning U.S. Pre-
ventive Medicine as the game changer with rst mover advan-
tage in the business-as-usual health care market. Other U.S.
Preventive Medicine innovations include the ROI Calculator,
which integrates comprehensive national data analytics with a
companys specic information to predict how much the com-
pany can save over time with U.S. Preventive Medicine products.
The ROI Guarantee offers clients the reassurance that dened
goals will be realized.
The Prevention Plan is available now throughout the U.S. via the
national broker distribution channel, which includes Aon (The
Prevention Plans largest customer) and other top tier rms. Net-
work relationships include Mayo Clinic, Mt. Sinai Medical Center
in New York, Massachusetts General, American Hospital in Paris,
Parkway Health in Singapore (largest health system in Southeast
Asia) and many other top U.S. and global rms.
The company has a seasoned management team and approxi-
mately 125 employees with corporate ofces in Dallas, Texas;
an operations/member care center in Jacksonville, Florida; and
satellite ofces in Chicago, Los Angeles, and London. Nurses
and other staff also work directly on the ground with members
in their communities throughout the country. In 2008 the interna-
tional enterprise was launched in London and full development
is underway.
Tommy Thompson, former U.S. Health and Human Services
Secretary and four-term Governor of Wisconsin, is helping the
company achieve its goals. As the companys national policy
advisor, Thompson is assisting the company in mobilizing em-
ployers, government entities, and health care providers to focus
on prevention as the solution to the health care crisis facing the
nation.

The companys distinguished National Advisory Board is co-
chaired by Ron Loeppke, M.D., MPH, along with David Nash,
M.D. Dr. Nash is the Dr. Raymond C. and Doris N. Grandon Pro-
fessor of Health Policy and Medicine at Jefferson Medical Col-
lege of Thomas Jefferson University in Philadelphia, while Dr.
Loeppke is the former chief strategic ofcer and executive vice
president of Matria Healthcare, Inc. Both physicians are highly
regarded and are active in dening and establishing measure-
ment criteria for research on the frontlines of the health and pro-
ductivity arena.
Make no mistakeChris Feys original mission has not changed.
He intends for U.S. Preventive Medicine to become the next
powerhouse in health care.
Throughout history there are innovations that change the course
of history, whether it was re, the wheel, the automobile, or the
computer, Fey said. Prevention is a dynamic concept whose
time has nally arrived. By providing individuals and employers
with a comprehensive suite of tools across the entire health care
continuum, U.S. Preventive Medicine can help them save money
and increase productivity. More importantly, we can change be-
havior to help people live longer, healthier lives.
D|sc|a|me|: 7||s co|oo|ate o|oh|e |s oased 0oon |nfo|mat|on o|ov|ded
oy t|e |ss0e| o| comoany |eo|esentat|ve. 7|e |nfo|mat|on |s not |ntended
to oe, and s|a|| not const|t0te, an offe| to se|| o| so||c|tat|on of any offe|
to o0y any sec0||t|es. /t |s |ntended fo| |nfo|mat|on o0|ooses on|y, and to
|nc|ease awa|eness of U.S. P|event|ve Med|c|ne, /nc.
Safe Ha|oo| Statement: 7|e statements |n t||s adve|to||a| |e|at|ng to f0-
t0|e o|od0cts, oa|tne|s||os, tec|no|ogy, and oos|t|ve d||ect|on a|e fo|wa|d
|oo||ng statements w|t||n t|e mean|ng of t|e P||vate Sec0||t|es /|t|gat|on
Refo|m Act of 1995. Some o| a|| of t|e asoects ant|c|oated oy t|ese
fo|wa|d |oo||ng statements may not, |n fact, occ0|. Facto|s t|at co0|d
ca0se o| cont||o0te to s0c| d|ffe|ences |nc|0de o0t a|e not ||m|ted to con-
t|act0a| d|fhc0|t|es, demand fo| t|e comoany's common stoc|, and t|e
comoany's ao|||ty to oota|n f0t0|e hnanc|ng. M|c|o-cao Rev|ew magaz|ne
may |ave |ece|ved S6,000 cas| and/o| stoc| to o0o||s| and o||nt t||s co|-
oo|ate o|oh|e. M|c|o-cao Rev|ew magaz|ne d|sc|a|me|s aoo|y and may oe
|ev|ewed at www.m|c|ocao|ev|ew.com/d|sc|a|me|.o|o. Befo|e |nvest|ng
|n any sec0||ty, |eade|s a|e st|ong|y adv|sed to |ev|ew a|| o0o||c h||ngs of
t|e |ss0e| of s0c| sec0||ty, w||c| can oe fo0nd at www.sec.gov, as we||
as wa|n|ngs o0o||s|ed oy t|e SEC at www.sec.gov/|nvesto|s.
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NFW CLU^N C^lNGl l l
^icro-Cop Copitol News from Woshington, DC
If history is any indication, our current recession will come to
an end thanks largely to job creation. When people are working
they are being productive, earning wages, spending, saving and
hence causing growth.
The secret to long-term job creation, however, lies with small
companies. And the success of small companies depends on
having access to capital. Unfortunately, the current economic
distress in the United States has hit emerging growth companies
the hardest. Over 14 percent of small companies have had to lay
off employees.
When business is good, investment capital and innovation
spawn new companies with new sources of revenue, which in
turn drive mergers and acquisitions, job growth, and government
tax receipts. When business ebbs, capital and innovation shrink
at a rate faster than more established companies. This is why it
becomes important to take steps to encourage private equity to
invest in the U.S. economy.
To the countrys credit, the U. S. economy is the most entrepre-
neurial in the world. Contrarily this strength is not being tapped
to its fullest potential. Since the 1980s the U.S. government has
backed big businesses almost exclusively. This began with the
repeal of the Glass-Steagall Act, which allowed banks, insurance
companies, savings and loans, stock brokerage rms, and other
nancial institutions to merge. At one point these rms became
so big that there was little room for small entrepreneurs and
emerging growth companies.
Paying attention to the U.S. Congress and the White House is
one of the best ways for companies to remain protable and
competitive. Companies that received government favors have
seen dramatic results to their bottom line.
The University of Kansas released a study in April 2009 that
quantied the value of lobbying efforts in Congress. In one ex-
ample, 93 pharmaceutical companies spent a combined $282.7
million on lobbying for a tax repatriation holiday. Their effort to
change the law saved the companies $62.5 billion, equating to
a 22,000 percent return on their investment. Companies that are
just now harnessing the critical power center in Washington, D.C.
may be able to save their business. Those that choose to ignore
Washington may fail.
This column offers an inside view of the nations capital and will
try to help answer some of the following questions:
What changes should a micro-cap
company anticipate in this legislative session?
Who will wield power more effectively.
the ever aggressive White House or a
progressively splintered Congress?
How can applying congressional advocacy
help a micro-cap company?
As fellow entrepreneurs, we understand the trials and tribulations
of running a business. Like many of our readers, we look forward
to the return of emerging companies.
M. C. E|v|s Ox|ey |s t|e o|es|dent of Ox|ey Cons0|t|ng, //C (www.ox|ey-
cons0|t|ng.comI and a o|ofesso| at 7|e Geo|ge Was||ngton Un|ve|s|ty
G|ad0ate Sc|oo| of Po||t|ca| Management. Dan M0|o|y |s t|e c|a||man of
C|adoo0|n, a d|v|s|on of Co|o|ado F|nanc|a| Se|v|ce Co|oo|at|on (www.
dan.m0|o|y@co|o|adofsc.comI.
8y ^.C. FLVl3 XLFY Ano DANlFL R. ^URPHY
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3tonton Chose
Recruiting the Next ^icro-cop Leooer
How many times have readers come across an obituary about a
start-up company? After nine months of operating in the red, the
company is slapped with eviction notices, the company cars have
been repossessed, the phones have been cut off, and the credit
cards have been maxed out.
And yet the serial entrepreneur with unbridled enthusiasm, gravi-
tas, and an iconic work ethic remains unfazed and continues to
see the glass half full. He sees the global meltdown in capital mar-
kets as an aberration and the siege that has affected so many of
our businesses since the fall of 2008 as a bump along the road to
eventual prosperity. He views threats to the basic underpinnings
of the free market system as threatportunities.
Micro-cap leaders have the vision, rapier focus, and DNA of a
modern day Sherpa, carefully navigating the precipices of Mount
Everest while moving companies to new frontiers and battle-
grounds. Leaders see new opportunities around the corner where
technology and innovation can change market economics.
Some serial entrepreneurs have a ready-re-aim orientation and
are searching for a solution for which there may not be a problem.
At Stanton Chase, we believe that the real growth and transfor-
mational breakthroughs will emanate from early stage companies
that embrace innovation, quality, and continuous improvement.
Success depends on these entrepreneurial, unheralded folk he-
roes who have a sixth sense in achieving peak performance. They
are willing to bet on their own success against all odds from mar-
ket turbulence and global competition. We are reminded of Peter
Druckers quote, Most American companies are over-managed
and under-lead. Drucker was referring to some of the large mul-
tinationals that have become muscle bound and caught up in ad-
ministrative inertia, companies that have lost their edge, purpose,
and values.
At Stanton Chase, we are looking for executives who can make a
difference. We look for people with a proven track record in mov-
ing companies from good to great. These executives have vision-
ary leadership qualities and are committed to excellence.
Stanton Chase Leadership Solutions for Micro-cap Growth
Companies
Stanton Chase International is a talent management company
with 69 ofces in 41 countries. It is considered a leadership capital
consulting rm focused on C-suite recruiting for venture backed,
micro-cap, and Inc. 500 rms, as well as multinational companies
around the world. We believe that the best way to build share-
holder value is by helping clients win the war for talent. Building
the leadership annuity within growth companies is a tricky deliver-
able because of the changes in executive leadership skills that are
required at different stages of the corporate life cycle.
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More importantly, we recognize that the race to success is not a
marathon but a relay. We pride ourselves in trying to preserve the
vision and cultural ethos of the founders, as well as the market
differentiators that enable the micro-cap company to become a
leader. We also recognize that entrepreneurial leaders may not al-
ways have the skill, bandwidth, or experience to take the company
to the next level. We are constantly managing the expectations of
key stakeholders. When asked to seemingly do the impossible,
we sometimes respond by saying that we believe in miracles but
hate to schedule them! Founded in 1989 with a handful of ofces
in Europe and the United States, Stanton Chase not only has the
strategic resources of a large global search rm, but also the ex-
pertise to provide local insight, knowledge, and experience that
only a local boutique rm can provide. We are in effect glocal in
our style and outreach.
We have a proven track record of attracting, developing, and sus-
taining leadership talent across a wide range of industries and ge-
ographies. Stanton Chase has completed more than 1,000 search-
es for C-suite micro-cap or emerging growth companies. We have
worked with more than 80 investment groups, ranging from ac-
celerators, incubators, and angel funds to traditional venture capi-
tal and private equity rms, hedge funds, investment banks, and
leveraged-buyout rms. We have frequently been equity investors
in our clients, along with board members, accountants, lawyers,
and other key nancial advisors.
We pride ourselves for being smaller than some of our competitors
to avoid potential conicts of interests that may be inherent within
larger rms. Our goal is to vertically integrate more value-added
recruiting solutions to a smaller group of clients wherein we have
developed a preferred provider relationship. Our service offering
includes psychological proling, benchmarking, and competitive
analysis. We also offer an effective on boarding program that fo-
cuses on the cultural assimilation of our placements, as well as
business performance metrics and deliverables. Given the malaise
that many companies face in evaluating or assimilating executive
talent, Stanton Chase has become a pioneer in top-grading talent
and benchmarking the competition by providing an a la carte menu
of talent acquisition services on a project fee or time and materials
basis. In our traditional executive searches for early stage compa-
nies, we use unique milestone billing beyond the initial retainer and
search guarantees that is at or beyond standards set forth by the
Association of Executive Search Consultants.
Stanton Chase has been successful in developing special relation-
ships with various afnity groups that focus on micro-cap compa-
nies. These groups include leading venture forums, the Associa-
tion for Corporate Growth, the National Association of Corporate
Directors (NACD), the American Institute of Certied Public Ac-
countants (AICPA), and the Financial Executives Institute (FEI). A
number of Stanton Chase partners have served as board members
of early stage companies and have also been leaders or members
of international networking groups, such as Vistage International,
Young Presidents Organization, World Presidents Organization,
Chief Executives Organization, and Entrepreneurs Organization.
D|sc|a|me|: 7||s co|oo|ate o|oh|e |s oased 0oon |nfo|mat|on o|ov|ded oy
t|e |ss0e| o| comoany |eo|esentat|ve. 7|e |nfo|mat|on |s not |ntended to
oe, and s|a|| not const|t0te, an offe| to se|| o| so||c|tat|on of any offe| to o0y
any sec0||t|es. /t |s |ntended fo| |nfo|mat|on o0|ooses on|y, and to |nc|ease
awa|eness of Stanton C|ase /nte|nat|ona|.
Safe Ha|oo| Statement: 7|e statements |n t||s adve|to||a| |e|at|ng to f0-
t0|e o|od0cts, oa|tne|s||os, tec|no|ogy, and oos|t|ve d||ect|on a|e fo|wa|d
|oo||ng statements w|t||n t|e mean|ng of t|e P||vate Sec0||t|es /|t|gat|on
Refo|m Act of 1995. Some o| a|| of t|e asoects ant|c|oated oy t|ese fo|-
wa|d |oo||ng statements may not, |n fact, occ0|. Facto|s t|at co0|d ca0se
o| cont||o0te to s0c| d|ffe|ences |nc|0de o0t a|e not ||m|ted to cont|act0a|
d|fhc0|t|es, demand fo| t|e comoany's common stoc|, and t|e comoany's
ao|||ty to oota|n f0t0|e hnanc|ng. M|c|o-cao Rev|ew magaz|ne may |ave
|ece|ved S6,000 cas| and/o| stoc| to o0o||s| and o||nt t||s co|oo|ate o|o-
h|e. M|c|o-cao Rev|ew magaz|ne d|sc|a|me|s aoo|y and may oe |ev|ewed
at www.m|c|ocao|ev|ew.com/d|sc|a|me|.o|o. Befo|e |nvest|ng |n any se-
c0||ty, |eade|s a|e st|ong|y adv|sed to |ev|ew a|| o0o||c h||ngs of t|e |ss0e|
of s0c| sec0||ty, w||c| can oe fo0nd at www.sec.gov, as we|| as wa|n|ngs
o0o||s|ed oy t|e SEC at www.sec.gov/|nvesto|s.

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RDI, the Most Undervalued Story
Now, whats a better American pastime than going to the mov-
ies?
Reading International, Inc. (RDI) $4.03, NASDAQ
Market capitalization $81 million
Billionaire Mark Cuban Discloses Additional Purchases of
RDI Stock on June 9, 2009
With $28 million in cash plus a solid balance sheet, RDI is a top
value and growth story:
Year Revenues
2008 $191 million
2007 $119 million
2006 $106 million
RDI develops and owns single-screen and multiplex cinemas,
live theater sites, and real estate properties. The value of the cin-
ema and real estate assets is very compelling, especially when
you project the impact of revenues from the developed real es-
tate properties.
RDI has 468 cinemas in the United States and overseas. If we
conservatively value each cinema at $400,000, the worth of all
cinema properties is $187 million. New cinema screens may
cost $1 million and big operators get value at about $500,000
to a $1 million.
About 70 percent of RDIs assets are related to real estate ac-
tivities. The real estate assets are undervalued with book value
of $188 million and current estimated value of $344 million. A
signicant amount of Readings owned real estate is booked
at acquisition cost from the mid-1990s. The properties are cur-
rently being converted into higher value uses for cash ow or
gain on sale.
RDI holds a signicant amount of land for development in Aus-
tralia and New Zealand, including a 53-acres property deemed
a major activity centre in the Burwood area of Melbourne,
a three-acres site located in the Moonee Ponds area of Mel-
bourne, a two-acres site in the Auburn area of Sydney, and a
one-acre site in downtown Wellington, New Zealand. The Bur-
wood, Melbourne property alone costs $500 million and has a
terminal value of over $1 billion. RDI has this property on the
books at $24 million.
If we add the movie screen value of $187 million to the $344
million estimated value of the real estate holdings, we have a
total market value of $531 million. Based on the math, you can
see the value play here when we consider that the stock market
capitalization of RDI is only $81 million.
The upside going forward is that RDIs prime real-estate devel-
opments in Australia and New Zealand around the multiplexes
will be completed within the next few years. These properties
will generate signicant cash ow. Subtract debt service from
the cash ow and big net numbers fall to the bottom line.
RDI has a terric shareholder list and a very conservative and
experienced management team. About 27 institutions and mu-
tual funds own in aggregate 30 percent of the shares.
In my opinion, RDIs stock is undervalued.
* In a Form 4 ling made with the SEC on June 23, 2009,
billionaire Mark Cuban disclosed
1. An initial purchase at $4.51/share of 500,000 shares or 2.4
percent of Readings Class A stock (A-RDI); and
2. An incremental purchase at $6.84/share of 50,100 shares
of Reading International Class B stock (A-RDI/B),
increasing his investment to 207,511 or 13.9 percent of
Readings Class B shares; on June 8, 2009, Mr. Cuban
disclosed a 10.5 percent stake in RDI voting shares.

Recent News:
Despite the strength of the Australian and New Zealand curren-
cies over the last several years, Readings total revenues and
EBITDA increased by 1.2 percent and 76 percent, respectively.
The results reect another quarter of strong box ofce results. In
local currency, Readings Australia and New Zealand businesses
enjoyed strong cinema revenue growth of 33 percent and 15.5
percent, respectively. Global box ofce releases for the remain-
der of 2009 continue to look appealing.
The segment summary for the quarter ended June 30,
2009 is as follows:
- Cinema segment revenue (90 percent of Readings total rev-
enue) and EBITDA growth of 3.5 percent and 81.5 percent, re-
spectively, was strong despite the gains in the Australian and
New Zealand currencies that mask strong local results. This
growth was driven by box ofce success and operational im-
provements at Readings Consolidated Entertainment cinema
subsidiary in Hawaii and California where operating income im-
proved by 70 percent from the prior year.
- Real Estate segment revenue (10 percent of Readings total
N THF ^ARKFT
Commentory ono lnsights by Dr. John L. Foessel
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revenue) fell 6.6 percent, while segment EBITDA grew 0.9 percent,
reecting year over year Australian and New Zealand currency
headwinds. Readings Indooroopilly ofce property in Brisbane,
Australia completed construction near the end of the quarter and
will begin contributing to Readings real estate operations in the
third quarter of 2009 (see discussion below).
Other items of note:
RDI retired $22.9 million of its 9.2 percent Trust Preferred Securi-
ties (sub-debt) acquired in a prior quarter and recognized a siz-
able net gain of $10.8 million. Readers should note that while cash
interest costs will decline by $2.1 million per year from this debt
retirement, going forward interest expense declines will be offset
by cash interest costs (that didnt change). The interest costs will
now be expensed on properties newly classied as held for de-
velopment that were previously capitalized and classied as un-
der development under GAAP.
Recent zoning developments near Readings Auburn shopping
center (ETRC) in Sydney, Australia will enhance the future pros-
pects and property value. The zoning improvements should help
mitigate the fallout from losing a sale agreement on this decade-
long holding.
Readings cash ow improved during the past quarter. Cash in-
creased to $22.1 million and debt declined to $224.8 million when
compared to the prior quarter. Reading also renewed and ex-
tended the term of its New Zealand credit facility from November
2010 to March 2012. At June 30, 2009 Reading has $23.1 million
of combined undrawn credit on its Australian and New Zealand
credit facilities.
Based on the prots and gains in the Australian and New Zealand
currencies, Readings shareholder equity rose 48 percent sequen-
tially to $93.8 million at June 30, 2009. Currency values continue to
move higher during the third quarter 2009 but at a slower pace.
Important subsequent events are as follows:
Reading re-listed both classes of its common stock from AMEX to
NASDAQ. The company maintained the RDI symbol and adopted
the RDIB symbol for the Class B voting stock.
Reading nalized a sale and legal settlement with its partner, Ma-
lulani Investments and afliates. The agreement will allow Read-
ing to recoup its investment and years of legal expenses with an
upfront $2.5 million cash payment and a $6.75 million, three-year
secured note, along with a ten-year tail interest in Malulani and
its parent company. Readings arrangement with its partner calls
for Reading to receive the rst part of this $9.25 million settlement
until Reading has recouped its initial investment and all costs ad-
vanced by Reading with respect to the litigation.
At the end of July, Readings new six-story Indooroopilly ofce
building was completely leased to the city of Brisbane under a
three-year lease with options for extension. The construction loan
on this building was also paid off from Readings operations.
Its also worth noting that I own shares in RDI.
To obtain a Knobius research report that provides a wrap-up of
RDI, please send me an e-mail at Dr.Faessel@onthemar.com. More
information on RDI can be found at the companys Web site at
www.readingrdi.com.
D|. Jo|n Faesse| |s a Wa|| St|eet ana|yst w|o |s w|de|y |ecogn|zed fo| ||s
|ns|g|ts |nto o0o||c comoan|es and hnanc|a| ma||ets. D|. Faesse| adv|ses
h|ms, o|o|e|s, and t|ade|s. H|s ma||et eva|0at|ons cove| g|ooa| c0||en-
c|es, c|ed|t ma||ets, secto| st|engt| ana|ys|s, tec|n|ca| ana|ys|s, sent|ment
ove|v|ews, and oot| |ong-s|de and s|o|t-s|de |ecommendat|ons. Fo| ove|
20 yea|s, D|. Faesse|'s On the Market |eoo|ts |ave oeen w|de|y d|st||o0ted
t||o0g|o0t t|e wo||d to an extens|ve ||st of hnanc|a| |nst|t0t|ons, |nvest-
ment oan|s, m0t0a| f0nds, |edge f0nds, o|o|e|s, fo0ndat|ons, and ||g| net
wo|t| |nvesto|s.
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Viper Powersports (VPWI.OB) has introduced the 2010 Diamond-
back, the rst of its line of Super Cruiser motorcycles. After seven
years of engineering development, two severe recessions, and $30
million of product development costs, We believe we have created
the nest high performance, Super Cruiser motorcycle in the world,
commented John Silseth, CEO and founder of the company.
What sets Viper apart from competitors is the design specications
and engine technology. The company brought in a group of world-
class design engineers that worked on the original Victory Motorcycle
team. The bike was designed using a computer aided design (CAD)
system that allowed it to be built from the ground up. This is not a
custom bike. This is a precision, high performance vehicle. It has
negligible high frequency vibration at higher speeds. It corners and
accelerates like a cheetah, smiles Silseth. We use a lot of 6160
grade aluminum billet on the
bike, which is a lot lighter and
looks beautiful.
The engine on the Viper Dia-
mondback is an all aluminum
billet, 152 cubic inch, 120 horse-
power, air cooled, V-twin that
generates up to 144 ft lbs of
torque from 1,800 all the way to
4,000 RPM. That compares to an
anemic 86 ft lbs of torque from
the most powerful Harley David-
son engine used on the newest
generation of bike, the V-Rod.
The important thing to measure
is torque, not the horsepower,
said Silseth.
Viper entered into an engine
development agreement with
one of the most respected en-
gine designers in the world, Al
Melling. Melling is among the
Whos Who of Formula One
racing, and has designed en-
gines for Jaguar, Ferrari, Lam-
borghini, TVR, and Dodge (Viper
V-10). The engine he built for the Jaguar won the 24 Hours of Lemans
three times in a row in the mid 1990s. Vipers engine was designed to
t into every Harley Davidson built since 1992. According to Silseth,
We wanted to make sure that our bike would be recognized as one
of the top motorcycles in the world, and if you didnt want to buy our
bike, you could Viper-ize your Harley and double its power. With
about four million Harleys on the road since 1992, we really wanted to
sell into that market, giving us two swings of the bat at success.
Vipers investment banker for the past two and a half years has been
William H. Watson, III who once headed up Brookstreet Securities
Venture Finance Group. He recently became vice president of invest-
ment banking for Choice Investments, Inc. of Austin, Texas. Bills
pretty unusual for an investment banker, said Silseth. He invests
in most of the companies that he takes on as an investment banker.
When we were looking at bankers, we really needed someone who
not only could see where we were at the time, but who could see the
companys potential if we could pull off our EPA approvals and start
to commercialize the products. Bills father was a very successful dirt
track stock car driver in the Midwest in the 1960s and 1970s, so Bill
really was a bit of a speed junkie.

Silseth found out through the grapevine that Watson and his group
had completed 21 transactions in a row, and had raised about $250
million within four years. The company invited him to Minneapolis
to visit the plant. Watson took one of the motorcycles out for about
a 30-minute ride. When he rolled back into the plant, all he could
do was grin from ear to
ear. He told Silseth, You
guys are going to make a
fortune on this deal, and I
want in! Watson agreed
to take on the deal,
bought the second mo-
torcycle that Viper built
with the new engine, and
made a six-gure invest-
ment into the company.

The Viper Diamondback
is incredible, said Wat-
son. This is an amazing
piece of engineering. The
bike weighs 200 pounds
less than a Harley David-
son, is twice as powerful,
and looks like a piece of
jewelry. Wherever I park
the bike, crowds would
form as they try to g-
ure out what kind of mo-
torcycle it is. John and
the team built a piece of
rolling art with a budget
of $30 million where Har-
ley spent $175 million to launch the V-Rod, and Victory spent even
more. The Viper kills every cruiser or custom bike on the market in
every category. It has the style and comfort of a long haul cruiser and
speed and acceleration of a sport bike. I think it will be recognized as
being in a category all of its own.
With a retail price of $37,000, its a bit pricey. Its about six to ten
thousand dollars higher than the Harleys, but at the same time its
about 20 to 30 thousand dollars less than the custom bikes that ride
awful. Id rather spend the extra ten grand for something this unique
and special. After I went back home to California, I went for a ride on
one of my buddies Harleys. After about 10 minutes, I really under-
VI PER POWERSPORTS
Laun ches Sal es Ef f or t
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stood why they called it a HOG, laughed Watson. I couldnt wait un-
til Viper delivered my bike. The best comparison of a Viper to a Harley
Davidson is comparing a Ferrari to your grandpas Packard. They both
roll on two wheels, but thats about where the similarities end.
After Watsons rm was engaged in the project, Silseth held the com-
pany together in a difcult environment. Harleys sales were deterio-
rating, as were most high end luxury items. Vipers major competitors,
which were both selling 5,000 units per year, were getting hammered.
American Iron Horse from Dallas closed its doors, and Big Dog was on
a respirator. The typical ooring nanciers like GE Capital and Textron
pulled in their horns and left the market for a while. We could see that
we needed to bring in enough money to keep the lights on until Viper
got its EPA and state emissions approval and downsized its overhead
and manufacturing facilities. Fortunately, John and his team pulled it
off in spades. The key to longevity in any business is survival, said
Watson. In this difcult economic environment, Silseth and his team
cut their overhead by 70 percent and now can survive by selling only
six to seven motorcycles per month.
Silseth then recruited a couple of franchise players to join his man-
agement team. After seven years of watching the development of
the company as a board member, Terry Nesbitt joined the team as
president in December 2008. Nesbitt had brought 30 years of industry
experience to the table. He was previously national sales manager of
Polaris and helped build it into the largest all terrain vehicle (ATV) man-
ufacturer in the world. He also wrote the original feasibility study for
Victory Motorcycle, and grew it from launch to about 6,000 units per
year. He has more long term relationships with the dealer network in
the motorcycle industry than about anyone else we could have found.
In fact, since he joined the board, he has been waiting to help us build
the national sales network. Its a dream job for him. We couldnt have
selected anyone better to ll this role. In the past three months since
Terry took over as president, we have added over 20 dealers and have
several dozen more that want to sell our products once we can deliver
in bigger volumes, said Silseth.
Six months after hiring Nesbitt, Silseth brought in Andrew Broadley
who joined the Viper team as technical director and manufacturing
operations manager. Broadley had been involved in the Viper project
for several years, and Silseth felt the timing was right to bring him in
to oversee the product manufacturing roll out. Broadley had brought
over 25 years of experience designing race cars, streetcars, and mo-
torcycles. He had been the chief technical ofcer and senior director
of engineering for Indian Motorcycles, chief technical ofcer of GT40
North America, and had spent 18 years with his father Eric Broadley,
the founder of one of the most prestigious race car manufacturers in
the world, Lola Cars Ltd., U.K. Broadley was responsible for the de-
sign of many successful hand-built Formula One and sports race cars
and contributed to the companys impressive growth during the late
1980s and early 1990s. Silseth remarked about Broadley, You cant
nd a better industry pedigree.
Broadley has been the key in formalizing Vipers ongoing engine de-
velopment and engine assembly agreement with the leading high
performance engine company in the world, Roger Penskes Ilmor
Engineering (www.ilmor.com). Ilmor has designed and manufactured
high-performance racing engines for automotive, marine, and other
motorsports racing clients, as well as non-racing engines for upscale
products, such as the Dodge Viper sports car.
Ilmor engines have had phenomenal success in racing for over 20
years. The company has to its credit 15 Indy 500 wins, 206 Indy Car
wins, 187 Indy Car pole positions, 11 Indy Car drivers championships,
and 6 Indy Car team championships. Ilmor also builds engines for
NASCAR, Formula One, Mopar Midget, Kart, and Baha desert off-road
vehicles, as well as marine racing engines for Donzi and Eliminator.
We truly believe that we have assembled a dream team to launch this
company. Our next goal is to nish building out our dealer network
and to signicantly increase production to satisfy demand. Our exist-
ing manufacturing plant can handle up to 1,000 units per year. If you
like the Diamondback model, just wait till you see our next model,
the Mamba. Its a bit longer, has an extended rake, and the gas tank
looks like a womans rib cage. It looks like the kind of bike that Arnold
Schwarzenegger should have ridden in the movie,7|e 7e|m|nato|. We
think its going to knock the industry off its feet, said Silseth.
The public can see the prototype of the Viper on the companys Web
site in a video that was shot at an air show with the U.S. Air Force
Thunderbirds. Terry Nesbitt was brave enough to race an F-15 jet for
a half a mile on the runway in a time trial. Riding on the Viper Mamba,
Nesbitt turned the half-mile in 16.33 seconds, beating the jet by 3 sec-
onds. He hit a top speed of about 168 mph. I will not be doing that
again, exclaimed Nesbitt. Ive got too many gray hairs and Im way
too smart to try it a second time!
Each motorcycle company shares some common keys to its success.
For Viper, the nal and most important key to its success may be the
ignition key!
D|sc|a|me|: 7||s co|oo|ate o|oh|e |s oased 0oon |nfo|mat|on o|ov|ded oy t|e |s-
s0e| o| comoany |eo|esentat|ve. 7|e |nfo|mat|on |s not |ntended to oe, and s|a||
not const|t0te, an offe| to se|| o| so||c|tat|on of any offe| to o0y any sec0||t|es.
/t |s |ntended fo| |nfo|mat|on o0|ooses on|y, and to |nc|ease awa|eness of v|oe|
Powe|soo|ts, /nc.
Safe Ha|oo| Statement: 7|e statements |n t||s adve|to||a| |e|at|ng to f0t0|e
o|od0cts, oa|tne|s||os, tec|no|ogy, and oos|t|ve d||ect|on a|e fo|wa|d |oo||ng
statements w|t||n t|e mean|ng of t|e P||vate Sec0||t|es /|t|gat|on Refo|m Act
of 1995. Some o| a|| of t|e asoects ant|c|oated oy t|ese fo|wa|d |oo||ng state-
ments may not, |n fact, occ0|. Facto|s t|at co0|d ca0se o| cont||o0te to s0c|
d|ffe|ences |nc|0de o0t a|e not ||m|ted to cont|act0a| d|fhc0|t|es, demand fo| t|e
comoany's common stoc|, and t|e comoany's ao|||ty to oota|n f0t0|e hnanc|ng.
M|c|o-cao Rev|ew magaz|ne may |ave |ece|ved S6,000 cas| and/o| stoc| to
o0o||s| and o||nt t||s co|oo|ate o|oh|e. M|c|o-cao Rev|ew magaz|ne d|sc|a|me|s
aoo|y and may oe |ev|ewed at www.m|c|ocao|ev|ew.com/d|sc|a|me|.o|o. Be-
fo|e |nvest|ng |n any sec0||ty, |eade|s a|e st|ong|y adv|sed to |ev|ew a|| o0o||c
h||ngs of t|e |ss0e| of s0c| sec0||ty, w||c| can oe fo0nd at www.sec.gov, as we||
as wa|n|ngs o0o||s|ed oy t|e SEC at www.sec.gov/|nvesto|s.
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Considered as one of the top nancial advisors in the United
States, Mr. Yaron Ron Reuven is president and CEO of Reuven
Enterprises. Mr. Reuven brings extensive management, nancial,
and investment experience to the company. With an expertise
in nancial model and theory analysis, business valuations, and
nancial industry compliance, Mr. Reuven has been a valuable
asset to many business owners and C-Level executives in more
ways than just managing their liquid assets. He began his Ameri-
can dream at the age of 10 when his family emigrated from Israel
to the United States. He became involved in business early on
and has been exposed to a variety of industries and business
models. This experience has cemented his unique investment
and business philosophy. He established his FINRA member
broker/dealer when he was only 26 years old, making him one
of the youngest individuals to ever independently open a FINRA
member rm.
Mr. Reuven began his career in the securities business in the
New York City branch of First Union in 1999. At First Union, he
began developing his own research and investment philosophy,
while learning more about the operational side of the nancial
services industry. In June of 2001, he was recruited by Raymond
James Financial, one of the largest nancial rms in the coun-
try. At Raymond James, he built his own clientele and grew the
business by implementing his own investment philosophy. Even
during one of the most difcult market environments in history,
Mr. Reuven continued to build his business and became the
third largest producing broker in the United States for Raymond
James in 2003.
In March of 2003, Mr. Reuven decided to build a True Full Ser-
vice Boutique Financial Firm by launching Reuven Enterprises,
Inc. He rst made a leap that year into the independent broker-
age business by joining an independent broker/dealer rm based
in Florida. After building his own team of brokers and analysts,
Mr. Reuvens progression culminated with the founding of his
own FINRA member broker/dealer, Reuven Enterprises Securi-
ties Division (RESD), in November 2006.
Reuven Enterprises is now considered one of the top boutique
nancial services rms on Wall Street. The rm offers nancial
planning, investment advice, insurance and many other services
to high and ultra high net-worth individuals, corporations, and
pensions.
Mr. Reuven now oversees his growing rm. He maintains a culti-
vated book of business and manages his own shareholder activ-
ist hedge fund. His personal clientele is comprised of business
owners, C-Level executives, as well as other high prole clients.
Mr. Reuven is also a NFL Players Association Registered Player
Financial Advisor, and is involved with several charitable orga-
nizations. His unique philosophy, proven track record, and inci-
sive nancial commentary have been recognized by Bloomberg,
CNBC, and the Wall Street community.
Mr. Reuven holds the following securities licenses:
General Securities Representative (Series 7j
Uniform Securities Agent State Law (Series 63j
General Securities Principal (Series 24j
Municipal Securities Principal (Series 53j
Licensed Life lnsurance Agent
Owner of Member FlNRA Broker Dealer
Wall Streetthe way it was meant to be!
REUVEN ENTERPRISES SECURITIES DIVISION, LLC Mem-
ber FINRA/SIPC/MSRB 100 Wall Street 6th Floor, New York, NY
10005 is a fully owned subsidiary of Reuven Enterprises, Inc.
www.ReuvenEnterprises.com
D|sc|a|me|: 7||s co|oo|ate o|oh|e |s oased 0oon |nfo|mat|on o|ov|ded
oy t|e |ss0e| o| comoany |eo|esentat|ve. 7|e |nfo|mat|on |s not |ntended
to oe, and s|a|| not const|t0te, an offe| to se|| o| so||c|tat|on of any offe|
to o0y any sec0||t|es. /t |s |ntended fo| |nfo|mat|on o0|ooses on|y, and to
|nc|ease awa|eness of Re0ven Ente|o||ses, /nc.
Safe Ha|oo| Statement: 7|e statements |n t||s adve|to||a| |e|at|ng to f0-
t0|e o|od0cts, oa|tne|s||os, tec|no|ogy, and oos|t|ve d||ect|on a|e fo|-
wa|d |oo||ng statements w|t||n t|e mean|ng of t|e P||vate Sec0||t|es
/|t|gat|on Refo|m Act of 1995. Some o| a|| of t|e asoects ant|c|oated oy
t|ese fo|wa|d |oo||ng statements may not, |n fact, occ0|. Facto|s t|at
co0|d ca0se o| cont||o0te to s0c| d|ffe|ences |nc|0de o0t a|e not ||m|ted
to cont|act0a| d|fhc0|t|es, demand fo| t|e comoany's common stoc|, and
t|e comoany's ao|||ty to oota|n f0t0|e hnanc|ng. M|c|o-cao Rev|ew mag-
az|ne may |ave |ece|ved S6,000 cas| and/o| stoc| to o0o||s| and o||nt
t||s co|oo|ate o|oh|e. M|c|o-cao Rev|ew magaz|ne d|sc|a|me|s aoo|y and
may oe |ev|ewed at www.m|c|ocao|ev|ew.com/d|sc|a|me|.o|o. Befo|e
|nvest|ng |n any sec0||ty, |eade|s a|e st|ong|y adv|sed to |ev|ew a|| o0o||c
h||ngs of t|e |ss0e| of s0c| sec0||ty, w||c| can oe fo0nd at www.sec.gov,
as we|| as wa|n|ngs o0o||s|ed oy t|e SEC at www.sec.gov/|nvesto|s.
Reuven Fnterprises, lnc.
8y Yoron Reuven
Law enforcement and military personnel today increasingly nd
themselves in situations that require them to put down a threat
without taking someones life. As a result, the demand for non-
lethal weapons has never been greater. Located in Mercerville,
NJ (near Princeton), Laser Energetics (OTC Pink Sheets: LNGT) is
now changing the game with a new category of non-lethal less
violent weapons called Dazer Laser - Light Fighting Technolo-
gies. These new Non Lethal- Less ViolentTM weapons incorpo-
rate a visible laser beam that can be operated safely at all ranges,
and is used to control the threats encountered by military, law
enforcement, and others.
According to the founder, president and CEO, Robert Battis, What
we are doing here is giving law enforcement and military person-
nel an option to engage a threat from much greater distances in
a safer manner to both themselves and the threat. Depending on
the model these compact, light weight, laser-based weapons can
be operated safely and control the threat at distances from just 1
meter all the way to 2,400 meters (thats a mile and a half!) .
This allows our law enforcement and military personnel to incor-
porate game-changing tactics and strategies to deal with ever
increasing threat scenarios with one weapon at a multitude of
distance ranges. Our Non-Lethal, Less-Violent weapons are ef-
fective at controlling a threat and can help to avoid the some-
times lethal consequences that we have all heard about from
other technologies.
The Dazer Laser operates by using laser light to overwhelm
the optic nerve in the eye. The effects are devastating to the
threat. The threat, once dazed, will suffer from temporary vision
impairment, loss or disruption of equilibrium and awareness, fol-
lowed by intense nausea. The Dazer Laser is very effective at
reducing or eliminating the threat of the bad guys. The duration
of the effects varies by individual, but for most people, vision is
impaired for at least 15 seconds. If the threat looks back at the
enforcer, the person will be whacked again, and the process can
be repeated without any cumulative effects. The other effects last
for longer periods of time some upwards of several hours. The
dazing effect gives the enforcer time to apprehend the threat
in a safe and controlled manner. The enforcer does not have
to resort to closer proximity non-lethal, more violent weapons,
such as high voltage darts, mace, pepper spray, rubber bullets,
or night sticks, which can put the ofcer unnecessarily at risk of
injury or death.
The Dazer Laser has many advantages over other technolo-
gies.
The ofcer can engage the threat from a longer, safer distance.
He can handle several threats at one time by simply widening
the beam or passing over several subjects, such as in a crowd
control situation. And he never has to reload his weapon. He can
literally daze thousands of threats with Beams not BulletsTM .
The Dazer Laser can be used in various applications, including
1) the military, 2) law enforcement, 3) private security, 4) the Coast
Guard, 5) ship captains, 6) crowd control, and 7) personal safety.
We believe that the Dazer Lasers will help make the world a
safer place, exclaimed Battis.
Laser Energetics founder, Robert Battis, was motivated to improve
upon the non-lethal weapons currently used today. His vision was
to employ effective and non-lethal, less violent weapons, as op-
posed to close proximity non-lethal, more violent weapons that
are commonly used. Anyone who watches the news lately is
aware that an ofcers use of non-lethal weapons has too often
been found to have the unintended consequence of death, said
Battis. We are trying to let the world know that there is a safer
and better alternative.
Laser Energetics promoted its non-lethal technology by appear-
ing as a sponsor at the Emmy Awards in September 2009. The
company has realized that America and the world are ready to
embrace a safer technology. To support its mission, the company
has created the Have a Heart Save a Life Fund. A portion of
sales will go toward supporting the families of police ofcers and
the U.S. military personnel killed in the line of duty. The net pro-
ceeds from the sales of Have a Heart T-shirts, hats, coffee mugs,
etc. will go to the Have a Save a Life Fund. In addition, $25
from the sale of every Dazer Laser Defender and $15 from the
sale of every Dazer Laser Guardian will also go to the fund.
Laser Energetics wants to help.
We feel that the world is ready for an improved product, one that
can control a combatant safely and effectively without the need
to escalate to deadly force. We are also looking forward to be able
to make donations to these families of the fallen in the hundreds
of thousands of dollars in the very near future, stated Battis.
Battis founded Laser Energetics in 1992 to improve peoples
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Dozer Loser'
The Ultimote Non-Lethol-Less Violent' Weopons
Pr oudl y Made i n t he USA!
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lives using advanced laser technology. You would be surprised
at how many benets lasers have and will have in our lives. Laser
Energetics holds many patents for different lasers and laser ap-
plications and Im proud to say that several will literally help save
human lives, said Battis. Some of the patented or patent pending
technologies include the BrightStar Alexandrite lasers for use in
remote sensing, laser marking, laser materials processing, den-
tistry, and medical applications, such as photo acoustic imaging
for early breast and prostate cancer detection, hair removal, tattoo
removal, photo dynamic therapy, etc.
Every one of our products will be made in the USA, stated Battis
who also founded Big Bang Entertainment Company and the Star
Spangled Americans Society, a 501(c)(3) company that is based
on Ignore Politics and Embrace Patriotism. This society tries
to unite Americans for a better way of life. According to Battis,
America and her closest allies deserve the very best technology.
What gets me up in the morning is that I know I can make a posi-
tive impact for this country. By bringing together great people, we
can accomplish a lot. Battis is known to have loathed the old say-
ing, Nice guys nish last. Instead, he has come up with his own
saying, Good guys that stick together win together.
Laser Energetics has applied recently for ve patents on technolo-
gies found in the Dazer LaserTM. These patents are very crucial
to allow this technology to be deployed by governments around
the world. This gives the Dazer LaserTM (model dependent) the
unprecedented ability to be operated eye safe at all ranges from
1 to 2,400 meters, unlike other current technologies.
We are gearing up to close on some very large orders, stated Bat-
tis. Laser Energetics will certainly be doing its part to grow jobs
in the United States. There are many reasons our products will all
be manufactured in the United States. Security is an obvious one,
but we feel we can only put out the highest quality product with the
help of the most productive workers found in America.
The company is very excited about its prospects and opportu-
nities as we currently have more than $400 million in proposals
for our Dazer LaserTM products. But I have to tell you a funny
story. Recently, a long-time friend remarked that Laser Energetics
was ready to become the next great American overnight success,
I replied, Yes. An overnight success alright, it just took eighteen
years to do it, laughed Battis.
Some of Laser Energetics investors have supported the com-
pany for many years. To these investors, I would just like to say
Thank you! Our many loyal investors have seen the potential in
lasers in general and of Laser Energetics in particular and have
stuck with us all this time. I look forward for us to win together as
we begin to turn our very large proposals into very large orders,
reiterated Battis.
With technical know-how as our foundation, enthusiasm as our
fuel, experience as our guide, and clarity of objectives to meet our
goals, the Laser Energetics Team is achieving World Class Suc-
cess!
D|sc|a|me|: 7||s co|oo|ate o|oh|e |s oased 0oon |nfo|mat|on o|ov|ded oy
t|e /ss0e| o| comoany |eo|esentat|ve. 7|e |nfo|mat|on |s not |ntended to
oe, and s|a|| not const|t0te, an offe| to se|| o| so||c|tat|on of any offe| to o0y
any sec0||t|es. /t |s |ntended fo| |nfo|mat|on o0|ooses on|y, and to |nc|ease
awa|eness of /ase| Ene|get|cs, /nc.
Safe Ha|oo| Statement: 7|e statements |n t||s adve|to||a| |e|at|ng to f0-
t0|e o|od0cts, oa|tne|s||os, tec|no|ogy, and oos|t|ve d||ect|on a|e fo|wa|d
|oo||ng statements w|t||n t|e mean|ng of t|e P||vate Sec0||t|es /|t|gat|on
Refo|m Act of 1995. Some o| a|| of t|e asoects ant|c|oated oy t|ese fo|-
wa|d |oo||ng statements may not, |n fact, occ0|. Facto|s t|at co0|d ca0se
o| cont||o0te to s0c| d|ffe|ences |nc|0de o0t a|e not ||m|ted to cont|act0a|
d|fhc0|t|es, demand fo| t|e comoany's common stoc|, and t|e comoany's
ao|||ty to oota|n f0t0|e hnanc|ng. M|c|o-cao Rev|ew magaz|ne may |ave
|ece|ved S6,000 cas| and/o| stoc| to o0o||s| and o||nt t||s co|oo|ate o|o-
h|e. M|c|o-cao Rev|ew magaz|ne d|sc|a|me|s aoo|y and may oe |ev|ewed
at www.m|c|ocao|ev|ew.com/d|sc|a|me|.o|o. Befo|e |nvest|ng |n any se-
c0||ty, |eade|s a|e st|ong|y adv|sed to |ev|ew a|| o0o||c h||ngs of t|e |ss0e|
of s0c| sec0||ty, w||c| can oe fo0nd at www.sec.gov, as we|| as wa|n|ngs
o0o||s|ed oy t|e SEC at www.sec.gov/|nvesto|s.
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A lot has happened since our last Compliance Corner article. With
all the regulatory changes, trying to hang the biggest issue on a
single topic is near impossible these days. Each individual or rm
deals with issues in a different way. One thing is certain, however.
Our regulatory agencies have a renewed sense of importance and
destiny. And that fact alone could be the biggest issue. I will not try
to educate you on why that has happened, except that it has and
that we should deal with it.
Schapiro Issues Warning to Broker-Dealer CEOs
SEC Chairman Mary L. Schapiro has sent a warning to broker-
dealers who are using large bonuses, enhanced commissions, and
other nancial perks to land top producers. Schapiro issued a let-
ter telling broker-dealer executives that they need to make sure
such nancial inducements dont lead to bad sales practices.
Some types of enhanced compensation practices may lead reg-
istered representatives to believe that they must sell securities at
a sufciently high level to justify special arrangements that they
have been given, Schapiro wrote. Those pressures may in time
create incentives to engage in conduct that may violate obligations
to investors.
In one example, she wrote that registered representatives who re-
ceive enhanced compensation for hitting increased commission
targets may be motivated to churn customer accounts and recom-
mend unsuitable investment products to clients.
I therefore encourage broker-dealer rm CEOs and their fellow
supervisors to be particularly vigilant in ensuring that sales prac-
tices are closely monitored and that investor interests are carefully
considered in the sale of any security or other investment prod-
uct, she wrote.
Schapiro stated that the warning was issued in reaction to reports
that some rms are offering substantial inducements to recruit
registered representatives.
SEC Approves Amendments Relating to Recordkeeping and
the Unsolicited Customer Order Exception of SEA Rule 15c2-
11
As of September 21, 2009, broker-dealers must have contempora-
neous records of certain customer and order information. Records
must demonstrate eligibility for the unsolicited customer order ex-
ception of SEA Rule 15c2-11, if a rm is relying on such exception.
(See Regulatory Notice 09-51)

Fair and Accurate Credit Transactions Act
Effective November 1, 2009, the Federal Trade Commission (FTC)
will enforce its Fair and Accurate Credit Transactions Act of 2003
(FACT Act) Red Flags Rule. Firms subject to this rulewhich in-
clude most broker-dealersmust have a written program to iden-
tify, detect, and respond to patterns, practices, or specic activi-
ties that could indicate identity theft. This rule has teeth!

SEC Approves Amendments to Modernize and Simplify NASD
Rule 2720 Relating to Public Offerings in Which a Member Firm
With a Conict of Interest Participates
As of September 14, 2009, rms must comply with the require-
ments of new NASD Rule 2720 (Public Offerings of Securities with
Conicts of Interest). The rule governs public offerings of securities
in which a member rm may have a potential conict of interest.
The new rule amends and replaces the previous NASD Rule 2720.
Conicts of interest may include associated persons of the mem-
ber rm.

SEC Approves Amendments to FINRA Trade Reporting Rules
on OTC Equity Transactions Executed Outside Normal Market
Hours
Effective January 11, 2010, rms that execute OTC trades in equity
securities outside normal hours (i.e. when a FINRA trade reporting
facility is closed) must report the trade within 15 minutes of the
opening of the facility the following dayi.e., by 8:15 a.m., EST.
Additionally, effective January 11, 2010, the FINRA/NASDAQ Trade
Reporting Facility and the OTC Reporting Facility will allow rms
to submit during normal market hours trade reports with a modi-
er designating the trade as one executed outside normal market
hours.
(This amendment may have some inherent difculties and rms
should plan ahead with personnel and back-up personnel respon-
sible for reporting by the 8:15 a.m., EST requirement. As of now,
there are no exceptions.)
FINRA Has Increased Margin Requirements for Leveraged
Exchange-Traded Funds and Associated Uncovered Options
As of December 1, 2009, FINRA will implement increased custom-
er margin requirements for leveraged Exchange Traded Funds and
uncovered options overlying leveraged Exchange Traded Funds,
in accordance with NASD Rule 2520 and Incorporated NYSE Rule
431.
In our last visit, we discussed the idea of risk. As our regulatory
bodies go forth with new found enthusiasm, this idea of risk will
become much more important. A registered representative or rm
will have to embrace this idea of risk and incorporate risk analysis
with each decision taken. Some have already begun this practice.
Risk is far more complex than compliance. Risk or the lack of risk
management can be a very expensive proposition. Well discuss
this issue for some time to come.
C|et Heoe|t |s fo0nde| and o|es|dent of 7|e Como||ance Deoa|tment /nc.,
a como||ance cons0|t|ng h|m |ocated |n Centenn|a|, Co|o|ado. 7|e h|m
|e|os o|o|e|-dea|e|s and |nvestment adv|so|s |n t|e a|eas of h|m fo|mat|on,
como||ance, CRD se|v|ce o0|ea0, o0tso0|ced oac|-ofhce o|ocess|ng, and
o|anc| ofhce a0d|t se|v|ces, |nc|0d|ng AM/ and Reg S-P como||ance. Fo|
mo|e |nfo|mat|on aoo0t t|e h|m, o|ease v|s|t www.t|ecomo||ancedeoa|t-
ment.com o| ca|| C|et at 303-339-9870.
Complionce Corner
8y Chet Hebert
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Obi t uar i es, Ret i r ement s, and
Change of Fi r m
Ben Lichtenberg (1954-2009) tragically
passed away on May 24, 2009. Mr. Lichten-
berg was the managing director of Noble
Financial Group in Boca Raton, Florida. He
had over 20 years of experience in the eld
of investment banking. He had served as vice
chairman of First Colonial Securities Group
and had worked with the Philadelphia based
rm of Butcher & Singer. During Mr. Lich-
tenbergs career, he had served as director
or advisor to the boards of numerous pub-
lic companies. He had extensive experience
working with IPOs, secondary offerings, pri-
vate placements, mergers and acquisitions,
and company valuations. Many people in the
nancial industry had the privilege to work
with him and came to know him as a brother.
His integrity, humor, dedication, and passion
for life will continue to guide the personal and
professional lives of people around him. Mr.
Lichtenberg was a certied public accountant
and a graduate of the Wharton School of the
University of Pennsylvania.
Robert Bob Rader (1935-2009), widely
considered the wise old sage in Oklahoma
Citys business community, passed away July
15, 2009 after a brief battle with cancer. He
was 74. Mr. Rader was executive vice presi-
dent of corporate nance for Capital West Se-
curities in Oklahoma City, having helped start
the company in 1995. An Oklahoma State
University alum, he was an industry veteran
with more than 45 years in the securities in-
dustry and experience working on Wall Street.
Mr. Rader was also an arbitrator for the Finan-
cial Industry Regulatory Authority (FINRA). He
was an active member of the Oklahoma Ven-
ture Forum and National Investment Bank-
ing Association (NIBA). Known for his down-
to-earth and friendly personality, he was the
ideal diplomat and ambassador for the state
of Oklahoma wherever he traveled. Accord-
ing to a colleague, He went out of his way
to attract visitors, speakers, conferences and
conventions to Oklahoma City. Mr. Rader
was instrumental in bringing the NIBA 111th
Capital Conference to Oklahoma City in Sep-
tember 2009. He and his wife, Judy, had three
children and two grandchildren.
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