CEO Corner

Premise
Travis loves to write when no one is around to talk to in person. When he writes humorously you may be able to tell it. He mentions only stocks he currently owns and does not plan to sell in the month following the 1st week of the quarterly release. The advice mentioned in the column is free. Some would say that is close to its worth. However, should you overcome the critics and succeed, please share your new found wealth and consider a gift to the Simon Youth Foundation, Susan G. Komen Breast Cancer Foundation or other non-profits that help people get a second chance overcoming life's obstacles.

Quarterly Commentary by Travis McWhorter
(Updated April 2008)

SECOND QUARTER 2008 UPDATE AND FORECAST

Persidea Trends
It is my pleasure to announce to you that as of March 31, 2008 Persidea, Inc. reached 9 years of service since it was incorporated in Austin, Texas. The company has grown with clients in almost all states in the USA and 9 countries. On behalf of our super-hero type employees in Austin, Temple and Wichita Falls we thank you so much for doing business with us. We live in this corporate world to have you love our services. Three little letters we often hear when clients call in response to the question, when? are NOW!!! Three equally little letters we love to and often hear when the order is complete are WOW!!! It is amazing how replacing life's four letter word situations with a simple WOW!!! can feel so good for both the speaker and hearer.

Travis' Gut Feelings
Global warming or cooling is a hot question now. Global caring about other people's needs, feelings and properties up and down stream should not be now or ever driven by external thermometers. A temperature that averages 98.6 degrees in the heart and spirit of all mankind should be the driving force to a race-free, taking care of our planet and caring for others world. With that internal temperature we are all born the same. Global caring is what needs to warm up and would eliminate the need for the debate whether we are taxed on inhaling oxygen or as the current thinking it is okay to inhale, but you must pay up when you breathe out the carbon dioxide. It would be nice if we could hold our breath until the politicians get their footprint out of their own mouths.

Stocks: The market was a little scary for the quarter. We are in for the long look so these stocks should serve you well in your future wealth building. The suggested stocks are Dell (DELL) @19.92, Wellpoint ((WLP) @44.13 and General Electric (GE) @ $37.01. GE was a company doing well in this down quarter and that is why I left them on the list from the last quarter. The other two dropped a lot this quarter and that should make them excellent long term investments at these bargain prices. You should check them out and consider writing a check. It may seem even scarier to do so, but most great investors buy when others are selling.

FOUND MONEY Market Indicator
The portion of this paragraph in italics stays the same to introduce new visitors to Travis' Found Money Index. If you have been here before you can skip to the charts below. The name McWhorter is Scotch-Irish. The Irish side likes to have fun, but the Scotch side cannot walk past a coin on the street, even if it is a penny and even if at a busy intersection. If you see him walking with his head down, he is not depressed. He is looking for money. When Travis returned to Texas a few years ago, after an absence of 7 years living in Indianapolis, he found a dollar on the streets of Austin his very first day back. His wife, Jo Ann, had the idea of keeping the money in a jar marked "found money" since moving to Austin to see how much was found in a year. In tracking the money Travis has discovered that there is a correlation between money found in a calendar quarter and the economy. The more money found the better the market and economy the following quarter. He has developed an indicator, which we will report in this column quarterly. In 2008 he added the annual predictor. Maybe this will help you build wealth or at least start your own jar.

TRAVIS' FOUND MONEY INDEX (INCEPTION JUNE 9, 1998, Austin, Texas)




1st Year$6.49STOCK MARKET NEUTRAL
(Based on secret findings)
2nd Year$8.68
3rd Year$7.65
4th Year$9.81
5th Year$7.54
6th Year$6.24
7th Year$6.43
8th Year$12.73
9th Year$4.59
Actual annual findings each year. Audited by a full finger and toe verification.

History of the Accuracy of the Index in Quarterly Predictions since the inception.

DIRECTION OF STOCK MARKET: 19 RIGHT 10 WRONG-THE INDEX WAS CORRECT 66% OF THE TIME AND HAS PREDICTED UP TO 5 STRAIGHT QUARTERS CORRECTLY. THE FIRST QUARTER WAS A MISS. DARN IT.

Forecast: Travis' Found Money Index points down for the 2nd Quarter 2008.

The Found Money findings of $.91 this quarter point to the second quarter going down greater than 5%.

Predicting Quarter
(Quarter Proceeding)
Amount Found
During 3 months
Forecast Period
(Overall Stock U.S.)
Prediction
(Direction)
Actual
4th Quarter, 2007$3.381st Quarter, 2008Up >5%Down >5%
1st Quarter, 2008.912nd Quarter, 2008Down >5% 
2nd Quarter, 2008 3rd Quarter, 2008  
3rd Quarter, 2008 4th Quarter, 2008  

(See the Entire Quarterly History of the Findings and Forecasts)

Predicting YearAmount FoundForecast PeriodPredictionActual
8th year findings$12.73Year 2008Up >5% 

(The actual results are based on a straight average of the % changes of the NASDAQ and Dow). A secret formula has discovered that a neutral next quarter predictor is between $1.64 and a $1.65 per quarter. Another secret based on the theoretical number of ingredients in the original Dr Pepper and Coke formulas determines the annual forecast base.

The first quarter of 2008 has been a roller coaster, with mostly serious down hills. The US stock markets have fallen about 10%. Consider this, the first Found Money annual forecast predicted an increase for the year 2008. We are down the first quarter. This should point the rest of the year major league upward. However the index points down for the second quarter. You should be cautious but get in and stay in for the long successful ride that is coming. There is one more thing to consider at this point. I have nothing but gray hair and a wrinkled brain to draw on here when I write. If you have the down payment, buy a house or upgrade now. It could be years before such low prices and low interest rates come along again. Get a fixed rate mortgage. Optimism is a much more fun way to think and I want you to feel good for being here this quarter. Come visit again and mark your calendar to check at least early in July when we next update and things should be going great again. Thanks for being in my Corner.

 




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