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MediaSentiment Newsletter: Vol. No. 1, Issue No. 22, February 16, 2006


From: Mediasentiment
Subject: MediaSentiment Newsletter: Vol. No. 1, Issue No. 22, February 16, 2006
Date: Fri, 10 Mar 2006 18:16:45 +0200


E-motions: Vol. No. 1, Issue No. 22 Brought to you by California News Tech (OTC BB: CNTE)

  By: Tai Nicolopoulos
E-Motions Writer
02/16/2006
 

Boomer’s Own Attitudes Shape the Way the Market Sees These Aging Consumers


 Printer Friendly Version  Email Article to a Friend  E-Motions Podcast

1. Emotions in Focus: Self-Perception Matters

    During President Bush's recent State of the Union address and subsequent trip throughout the country in support of his "American competitiveness initiative," the theme the media seemed to pick up on was Bush and his entire generation growing older. Speaking on topics ranging from the heavy strain an aging population will place on Medicare, to his bad knees, to fellow President Clinton's recent heart surgery, much of what Bush said seemed to focus on the plight of Baby Boomers as they reach retirement.

    Because of the tie-in with coverage of the President, stocks related to the big business of offering services to Boomers received even more attention than usual. The kinds of products and services that this demographic gravitate towards, however is different than might be expected of another group getting older and sicker. While selling expensive medical treatments or life style-enhancing products to Baby Boomers is big business, this generation continues to take charge of their own destiny and to pursue their own happiness as it so famously did in the 1960s and early 1970s. Where marketers once assumed that consumers over 50 were unwilling to try new brands and product categories, Boomers break the mold. Trying new technologies and age-defying treatments in ever greater numbers, the original Me Generation continues to value personal change and exploration after middle age. The Boomers buying up such high-end items as iPods, Botox and customized Vespa scooters refuse to feel old, want to indulge in youthful nostalgia and they have the money to do it.

    Moreover, as in President Bush’s case, because Boomers are still very much in power inAmerica, to a large extent they are able to set the tone for the very industry that has grown up around them. In many retirement communities in Florida shuffle board is out as more and more residents, remaining active and involved in the community, demand better amenities. All over the country, people over 50 are pushing for more and better fitness and nutrition options from health care providers. Everywhere, it seems, Boomers insist on more choices and refuse to let their quality of life diminish as they age, and society is listening.

2. The Big Movers and Why

    Two MediaSentiment Heads UpTM Big Movers soared on top of the buzz surrounding the power of Baby Boomers last week. In both cases, it is clear that Boomers indeed demand a better quality of life and are not averse to trying to products and technologies as they age. Haemonetics, Corp. (NYSE: HAE), went up over 18% last Tuesday, January 31st, just before President Bush was to discuss Medicare for the aging American population during his State of the Union address. Haemonetics, Corp. specializes in developing and manufacturing technology to aid in the collection of blood for surgical procedures, as well as the salvage of blood lost during open heart surgery. As Baby Boomer age, more and more men and women go in for surgery related to heart problems. More than any previous generation, Boomers are more demanding of better medical treatment options, and, moreover, have the money to pay for them.

    In general, Boomers have a different concept of what it should feel like to age. They are less willing to accept discomfort and they are willing to try new products to improve their quality of life. One such line of products that has benefited from the lifestyle and spending habits of aging Boomers is Select Comfort adjustable firmness beds and mattresses. Select Comfort. Corp. (NasdaqNM:SCSS), went up over 21% on Wednesday, February 1st, the same day as President Bush discussed the physical pains of growing older while nearing the end of his presidency at a stop on his tour throughout America to pitch his "American competitiveness initiative."

3. How to Use the News

    The connections between headline news and companies’ performance in this week’s topic illustrates a variety of opportunities to use news events and cultural trends to make better investments. Not only will there be more opportunities to trade on products and services aimed at Baby Boomers, but also this story highlights the fact that Boomers are violating assumptions about how people in older demographics consume. This means that investors who understand these new tastes and habits can get there first when companies have the potential to cater to Boomers. To further take advantage of this and other trends, note the timing of Heads Up’s recent Big Movers. While the fact that Baby Boomers are getting older and many of them have the money to try and fight it is old news, but when something, such as the President’s State of the Union address, makes the topic headline news, it can reach a new level of salience in the public mind. In turn, a high profile news event can take a pre-existing trend to the next level for investors.

    Furthermore, for investors who understand the Boomer mentality, or whatever issue has become salient, there is an added benefit of knowing exactly where to look for the best pick within an investment trend. For instance, when many marketers assumed that consumers over 50 would not switch brands or buy new product categories, the investors, including Boomers themselves, who thought otherwise, stood to profit.

    In short, it is impossible to fully understand the movement of money without understanding the people between whom it is changing hands. To make for from important issues on the public mind in the future, not only follow the sentiment behind certain companies using tools such as Heads UpTM and MediaSentiment Trend TM, but also follow popular culture in the news. In addition to being an investor, experiment with being an amateur sociologist and see how the market treats you.

4. Did You Know? More About CNTE

More about California News Tech (OTCBB: CNTE)

Forbes magazine has recognized the value of the Sentiment analysis technology, in an article titled "Two Thumbs Up", published November 15, 2005: "Sentiment analysis," as the field of research is known, is a hot topic among computer scientists these days. ...Successful applications could help automate market and product research and dramatically alter the future of a simple Internet search.
Did you know? California News Tech’s (OTCBB: CNTE) latest accomplishments include:
A partnership with Equis International, a Reuters company, to bring consumers the most advanced technology for analyzing market sentiment through California News Tech's MediaSentimentTM Tools
California News Tech Announces Partnership Agreement With Reuters Equis International, Inc.
A licensing agreement making CNTE’s MediaSentimentTM tools available through InvestorIdeas.com
California News Tech Announces Licensing Agreement With InvestorIdeas.com
A co-marketing agreement to promote CNTE’s MediaSentimentTM tools through RushTrade.com
California News Tech to Enter Co-Marketing Agreement With Rush Financial Technologies, Inc.

To learn more about California News Tech (OTC BB: CNTE) please visit us on the web at www.MediaSentiment.com, and to receive an information packet by mail, contact us at IR@CaliforniaNewsTech.com.

5. Last Week in Media Sentiment

    Are you missing out on potential profits from Heads UpTM recommendations? Last week, MediaSentimentTM subscribers using Heads UpTM for Thumbs Up / Thumbs Down recommendations for publicly traded companies were able to take advantage of these Big Movers as they released earnings:

01/30/06
Hydril, Co. (NasdaqNM:HYDL), oil drilling equipment manufacturer, went up 9.03%.
Tyson Foods, Inc. (NYSE:TSN), meat producer and distributor, went down -10.74%.

01/31/06 Haemonetics, Corp. (NYSE:HAE), producer of medical equipment for blood collection and the surgical salvage of blood, went up 18.33%.

Nasdaq Stock Market, Inc. (NasdaqNM:NDAQ), offering information and trading services for Nasdaq listed stocks, went down -12.74%.

02/01/06 Select Comfort, Corp. (NasdaqNM:SCSS), producer of adjustable firmness beds and mattresses, went up +21.30%.
Armor Holdings, Inc. (NYSE:AH), manufacturer of body and vehicle armor for law enforcement, military and homeland security, went up 7.17%.

02/02/06 Wesco International, Inc. (NYSE:WCC), electrical components manufacturer, went up 14.24%.
Luminex, Corp. (NasdaqNM:LMNX), producer of biological testing supplies went down -12.64%.
Labor Ready, Inc. (NYSE:LRW), agency for labors, contractors and skilled tradespeople, went up 10.43%.

02/03/06 American Power Convergence, Corp. (NasdaqNM:APCC), producer of surge protectors and other computer hardware, went down -15.74%. Stratex Networks, Inc. (NasdaqNM:STXN), high speed wireless technology manufacturer, went up 10.57%. Immunogen, Inc. (NasdaqNM:IMGN), pharmaceutical company focusing on cancer treatments, went down -9.23%. Microtune, Inc. (NasdaqNM:TUNE), electronics and radio tuning equipment manufacturer, went up 7.54%. NetIQ, Corp. (NasdaqNM:NTIQ), computer security and integrated systems manufacturer, went down -8.61%.

    All figures reflect all MediaSentiment Heads UpTM recommendations between Monday, January 30, 2006 and Friday, February 3, 2006, rating companies on the day of their quarterly earnings releases correlated with their stock highs and lows for the subsequent day.

6. Links you can use

Bush Medicare Plan Could Face Tough Test in Congress
In a State of Anxiety? No, But Anxious About His Age
Love Those Boomers




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