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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
Boomerâs Own Attitudes Shape the Way the Market Sees These Aging
Consumers
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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 Bushâs 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.
Presented By:
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."
Presented By:
3. How to Use the News
The connections between headline news and companiesâ performance in this
weekâs 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
Upâs 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 Presidentâs 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.
Presented By:
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 Techâs (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 CNTEâs MediaSentimentTM tools available
through InvestorIdeas.com
California News Tech Announces Licensing Agreement With InvestorIdeas.com
A co-marketing agreement to promote CNTEâs 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 [EMAIL PROTECTED]
Presented By:
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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