No. 1, Issue No. 22 Brought to you by California News Tech (OTC BB:
||By: Tai Nicolopoulos
Attitudes Shape the Way the Market Sees These Aging Consumers
1. Emotions in Focus:
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.
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.
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
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.
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
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.
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
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
California News Tech Announces Partnership Agreement With
Reuters Equis International, Inc.
A licensing agreement making
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available through InvestorIdeas.com
California News Tech Announces Licensing Agreement With
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California News Tech to Enter Co-Marketing Agreement With
Rush Financial Technologies, Inc.
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5. Last Week in Media
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:
(NasdaqNM:HYDL), oil drilling equipment manufacturer, went up 9.03%.
Tyson Foods, Inc. (NYSE:TSN), meat producer and distributor, went down
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%.
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