Tomorrow is the start of round 2 of the Strategy Lab Open, a stock picking contest sponsored by MSN Money. Read how you can play against the pros in picking stocks. I entered and will be looking to bring my "A" Game.

Join in on the fun!

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 5:51 AM | Permalink | Comments (0) | TrackBacks (0)

I am all charged up and ready to go for the next round of the Strategy Lab Open. My engine is revved and here's what I'm thinking...

1. The market has taken a beating since October and now is the perfect time to go shopping because stocks are on sale. My top two value picks are Cognizant Technology Solutions Corp. (CTSH) and Helix Energy Solutions Group (HLX).
2. A growth stock that has fallen almost 50% (from $43 to $23) since October is Buffalo Wild Wings Inc. (BWLD). I love the fact that at this sports bar and restaurant, the "girls have gone wild'! Sally Smith and her management team (5 out of 7 executives are women) have racked up impressive numbers. Since 2000, revenue has grown from $53.2M to $321M (8-year annual growth rate of 29.3%) and net income has grown from $2.6M to $20.5M (8-year annual growth rate of 34.3%). Under Smith's leadership, the company grew from 35 locations (in 1994) to 493 in December of 2007. The 500th unit will open in February.
3. And then my rock steady company - The Procter & Gamble Company (PG) - a Warren Buffett heavy weight (his fourth largest publicly traded company). Earnings come out on the eve of the start of the contest and I don't expect any surprises. The stock is off ten dollars from its recent high. PG is an innovation machine.
4. My final area will be to focus on the Magic Formula Index which I introduced on my website a little over a year ago. The Magic Formula Index is inspired by "The Little Book That Beats the Market". According to the author Joel Greenblatt, the book may be the only investment book that you will ever have to read. Greenblatt claims an enviable record of 40% annual returns since 1985 in his private investment firm Gotham Capital. In the Little Book (it really is little!), Greenblatt lays out a simple strategy that just seems to work. He contends you should buy 20 to 30 stocks each year with the highest pre-tax earnings yield (the inverse of price to earnings ratio) and the highest return on capital. And so I have five picks from my Magic Formula Index - Biovail Corp. (BVF), Freight Car of America Inc. (RAIL), Korn/Ferry International (KFY), United Online Inc. (UNTD), and ViroPharma Inc.(VPHM).

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 8:23 PM | Permalink | Comments (0) | TrackBacks (0)

Borders, during a five-month-long pilot program, will provide approximately 350 free educational classes (per month) for Borders customers on topics ranging from “Baby Sign Language” to “Guerilla Marketing” and “Breaking into Show Business.” The classes, which begin Feb. 2nd, will be taught by local professionals, celebrities and business owners and are designed to be fun, educational and interactive. For the pilot program, Borders stores in Natomas, Roseville and Sacramento will offer a minimum of five free classes per day, six days a week.

Many of the classes are being taught by local women entrepreneurs. Check out this video to get a preview of a class called Delegate or Die, taught by Jessica Chapman whose business is Room to Breathe.

Watch Barrett McBride, another local businesswomen talk about her upcoming class at Borders.

Exciting that Borders has chosen this area to pilot this program. Free classes at your local Borders. Go check out the schedule at your local store. And report back if you attend any of them.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 2:46 AM | Permalink | Comments (1) | TrackBacks (0)

A not be missed presentation on the employment law outlook for 2008 and issues facing businesses, in-house counsel, and senior HR professionals.

Tuesday, February 12, 2008
8:30–9:00am: Registration and breakfast
9:00–11:00am: Program

Presented by: Thomas N. Makris and Benjamin L. Webster
of Pillsbury Winthrop at their offices at 400 Capitol Mall, Suite 1700, Sacramento, CA 95814

Topics will include:
• Wage and Hour: Status of the Administrative Exemption
• Wrongful Termination and Discrimination: Review of Significant Developments in 2007
• Immigration Issues: How to Respond to No-Match Letters
• Noncompete Covenants: Do Narrow Restraints Work in California?
• Retaliation: Are Supervisors Individually Liable?
• Leaves of Absence: What Every Employer Needs to Know
• Q & A Session


RSVP by February 7 to Jennifer Ramsey at jennifer.ramsey@pillsburylaw.com

CLE Credit—Pillsbury Winthrop Shaw Pittman LLP is an Accredited Provider of CLE (Continuing Legal Education) programs in California. Pillsbury certifies that this activity conforms to the standards for approved education activities prescribed by the rules and regulations of the State Bar of California in the amount of 2.0 credit hours.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 2:12 PM | Permalink | Comments (0) | TrackBacks (0)

There's a fun stock picking contest at Investor Place Blogs. According to the website:

We're partnering with MSN Money and Marketocracy to find the next great undiscovered stock picking guru. The Strategy Lab Open stock picking competition starts February 1, 2008 - and we want you to come along for the ride.

Here's how it works: You get $1,000,000 to manage in a model portfolio from February 1, 2008 through July 11, 2008. You plan your picks, react to the market, and write about your investing decisions, and we all have a lot of fun along the way.

The winner goes on to compete against the investing pros in front of an audience of millions in MSN Money Strategy Lab.

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 4:26 PM | Permalink | Comments (0) | TrackBacks (0)

A new sports bar and restaurant moved in just down the street from our house. At first, Gillian and I didn’t pay much attention to it. But over the past month, we noticed a lot of cars parked on the street in our neighborhood on Sundays – always when the NFL games were on TV and we determined people were flocking to the sports bar.

Just this past week, I subscribed to the Motley Fool Hidden Gems investment service. The service came with several special reports, one of which was a report titled “The ONE stock you don’t want to MISS in 2007”. Much to my amazement, the stock Tom Gardner and Bill Mann recommended was the new sports bar and restaurant in our neighborhood that everyone was flocking to.

So, I decided to dig into the company and found out some startling details. The company, Buffalo Wild Wings (NASDQ symbol BWLD), was founded in 1982, with a single bar near the Ohio State University. Over the next twelve years the company grew to 35 locations. But in 1994, the company faced serious financial issues and brought in former KPMG financial consultant Sally J. Smith as CFO to help turnaround the company. In July of 1996, Ms. Smith was promoted to CEO and President. Under Smith’s leadership, the company grew from 35 locations to 493 in December of 2007. The 500th unit will open in February.

Smith took the company public on November 21, 2003. Since the IPO, the share price has doubled, closing Friday at $22.90. Since 2000, revenue has grown from $53.2M to $321M (8-year annual growth rate of 29.3%) and net income has grown from $2.6M to $20.5M (8-year annual growth rate of 34.3%).

This is a remarkable story. And one more thing … of the seven executive corporate officers, five are women – Sally J. Smith, CEO; Mary J. Twinem, CFO; Kathleen M. Benning, Senior Vice President of Marketing and Brand Development; Judith a. Shoulak, Senior Vice President of Operations; and Linda G. Traylor, Senior Vice President of Human Resources. The girls have gone wild at Buffalo Wild Wings.

Gillian and I have decided to stop in our local Buffalo Wild Wings before the Dallas Mavericks – Denver Nuggets game today. In my research, I found out BWLD operates on the franchise model and has no presence in Northern California. Who knows, maybe our site survey will bear fruit and we will introduce a new brand to Sacramento?

Imagine, a women-led sports bar company and a woman-owned franchise. It’s worth a thought Gillian!

Pierre Cutler
The Sacramento Executive

Note: the photo of Sally Smith is courtesy of Forbes Magazine's website

Posted by Pierre Cutler at 10:36 AM | Permalink | Comments (0) | TrackBacks (0)

Meg Whitman, CEO of eBay, Inc. (NASDAQ symbol EBAY) and member of SacWomen's Power Women 50 Index, is retiring on March 31. And what has Whitman achieved since becoming eBay's CEO in February of 1998? Simply, she made her shareholders very wealthy.

She led the company to a successful IPO in September 1998. Since the IPO, the stock has appreciated an amazing 43% per year. A $10,000 investment at the IPO price of $.75 (split adjusted) has grown to $357,737 (Friday's closing price of $26.83). Over the same timeframe, a $10,000 investment in the S&P 500 Index would have grown to $12,761.

Meg Whitman, the Power Women 50 Index will miss you. Sorry John Donahoe, eBay's incoming CEO, but you will not be a part of the Index. Susan Ivey, CEO and Chairman of Reynolds American Inc. (NYSE symbol RAI) will replace Whitman in the Index on April 1.

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 9:48 AM | Permalink | Comments (0) | TrackBacks (0)

Here's an interesting way to get involved in the Sacramento Arts Community - become a Business Volunteer for the Arts.

Training will be held on March 11, 2008, from 3-5 PM in Suite 600, PricewaterhouseCoopers LLP, 400 Capitol Mall, Sacramento, 95814.

Per the Arts and Business Council website:

Business support is critical to help arts and cultural organizations flourish. Members of the community put their expertise to work for their favorite arts or cultural organization.

Since 1987, the Arts & Business Council of Sacramento has promoted mutually beneficial partnerships between businesses and arts groups. Through its programs the Council brings expertise, resources and leadership talent from the business world to the arts community. Businesses benefit through meaningful volunteer opportunities for employees, improved access to arts resources and the opportunity to be a part of a community enhanced by the presence of a vibrant arts sector.

BVA volunteers have…

An interest in arts and culture in the Sacramento area;
3-5 years professional experience;
Expertise applicable to assisting an arts/cultural organization;
The ability to encourage change;
The ability to commit approximately 5-10 hours per month and one year of service.
In return, BVA volunteers…

Become an integral part of Sacamento’s arts and cultural community;
Strengthen business skills by creatively channeling them to a new arena;
Learn how to turn limited resources into successful outcomes;
Receive training on how to consult to arts and cultural nonprofits;
Project-driven Business Assistance

Volunteers are needed with expertise in a specific area of interest. Each project is custom-designed to suit the needs of the participating nonprofit in the areas of:

Computer Information/Technology
Event Planning
Graphic Design
Financial Accounting and Planning
Fundraising
Human Resource Management
Marketing and Market Research
Organizational Management
Public relations/Advertising
Strategic Planning/Program Development
And more…

Sounds like a great way to get involved in the arts community in Sacramento, make a difference and meet some interesting people.

Here a link to apply.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 2:50 PM | Permalink | Comments (0) | TrackBacks (0)

Fear and panic selling! Fear and panic selling! That's all I'm hearing on CNN, NPR, MSNBC, CNBC, etc. Since October, the Dow Jones Industrial Average has fallen 16.2% from its high of 14,279.96. And the past few days, oh my! The world is about to end! So say the market pundits.

But what is the truth? Since 1945, the market has fallen more than the present decline thirteen times. And what happend after each of these market setbacks? The market recovered each and every time. Imagine that! Did the world come to an end? No. Did the sky fall? No. Should I have jumped off the building and ended my life? No.

So what did happen? Well here are the facts:

1. May 1946, the Dow was at 213. The market fell 23.9% for 38 months until hitting a low point of 162. And ten months later, the market fully recovered.
2. April 1956, the Dow was at 521. The market fell 19.4% for 19 months until hitting a low point of 420. And ten months later, the market fully recovered.
3. January 1960, the Dow was at 521. The market fell 17.4% for ten months until hitting a low point of 566. And seven months later, the market fully recovered.
4. December 1961, the Dow was at 735. The market fell 27.1% for seven months until hitting a low point of 536. And fourteen months later, the market fully recovered.
5. February 1966, the Dow was at 995. The market fell 22.2% for eight months until hitting a low point of 774. And 25 months later, the market fully recovered.
6. April 1968, the Dow was at 985. The market fell 22.2% for 18 months until hitting a low point of 744. And 30 months later, the market fully recovered.
7. January 1973, the Dow was at 1,067. The market fell 46.3% for 21 months until hitting a low point of 573. And 118 months later, the market fully recovered.
8. September 1976, the Dow was at 1,026. The market fell 28.9% for 42 months until hitting a low point of 729. And thirteen months later, the market fully recovered.
9. April 1981, the Dow was at 1,030. The market fell 25.3% for sixteen months until hitting a low point of 769. And two months later, the market fully recovered.
10. August 1987, the Dow was at 2,746. The market fell 36.9% for four months until hitting a low point of 1,733. And twenty months later, the market fully recovered.
11. July 1990, the Dow was at 3,024. The market fell 22.5% for three months until hitting a low point of 2,344. And nine months later, the market fully recovered.
12. May 1998, the Dow was at 9,311. The market fell 20.8% for five months until hitting a low point of 7,379. And two months later, the market fully recovered.
13. January 2000, the Dow was at 11,908. The market fell 39.7% for 32 months until hitting a low point of 7,181. And 50 months later, the market fully recovered.

And my point? The recent decline should not worry the long term investor? Why? It's simple. Long term, the market always makes investors money. My proof:

• January 12, 1906, the Dow Jones hits 100.
• Less than 22 years later, December 19, 1927, the Dow doubles, hitting 200.
• 27 years later, December 28, 1854, the Dow doubles again, hitting 400.
• Less than 10 years later, February 28, 1964, the Dow doubles again, hitting 800.
• Less than 24 years later, February 6, 1986, the Dow doubles again, hitting 1,600.
• Less than 6 years later, January 3, 1992, the Dow doubles again, hitting 3,200.
• Less than 5 years later, November 20, 1996, the Dow doubles again, hitting 6,400.
• Less than 11 years later, April 18, 2007, the Dow doubles again, hitting 12,800.

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 7:21 PM | Permalink | Comments (0) | TrackBacks (0)

Terry Maxon, staff writer for the Dallas Morning News, reported today that James Parker, former Southwest Airlines CEO, recently authored the book "Do The Right Thing: How Dedicated Employees Create Loyal Customers and Large Profits". Maxon's article opens with the following WOW statement:

For many years, companies have flocked to Southwest Airlines Co. to learn the secrets of its success, ex-chief executive officer James Parker says.

Yet they never seem to absorb Southwest's lessons.

More accurately, they never accept the basic point - take care of your employees and everything else falls into place. So they see employees as expenses to be cut, rather than assets to be cherished.

Oh, and one other item worth mentioning:

He also makes the point that a great leader knows the importance of the team, drawing a contrast between Ted Williams, a great baseball player and so-so manager, and Tommy Lasorda, a mediocre player but a great manager.

Mr. Parker criticizes phonies, citing one manager who didn't succeed despite being smart and well dressed.

"When this person finally left, I asked one of his former employees why she thought everybody disliked her former boss so much. She summed it up: 'Because he was the kind of person who kissed up and spit down.' "

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 3:50 PM | Permalink | Comments (0) | TrackBacks (0)

On December 15, I offered Warren Buffett's Contrarian Thought #21 - "Be fearful when others are greedy and greedy when others are fearful."

Today, on my ride home from work, National Public Radio reported the world stock markets fell in dramatic fashion with more bad news about the U.S. economy. In two separate reports, I heard the words "fear" and "panic selling". And today's results - China's Shanghai Composite Index fell 5.1%; Toroto Stock Exchange fell 4.5%; Janan's Nikkei fell 3.9%; Hong Kong's Hang Seng fell 5.5%; India's market fell 7.4%, the largest one day fall ever; Germany's DAX fell 4.2%; France's CAC 40 fell 4.7%; and Britain's FTSE 100 fell 3.6%. The U.S. markets were closed today in honor of Martin Luther King Jr.

The sell-off reminded me of Warren Buffett's words. Fear is creeping into the stock market. And when it takes a stronghold, buyer beware! Tomorrow's markets promise to be volatile, based on today's Index futures trading. As the markets continue to plunge and fear becomes more widespread, buying opportunities will be at their best. Per Buffett's value investing strategy, "When fear is the highest, stocks will be on sale". And be ready to buy.

Remember, "Be greedy when others are fearful". That's the basic principle for Rule #1 - Don't Lose Money. Thank you Warren for this lesson. Who will learn the lesson?

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 2:53 PM | Permalink | Comments (0) | TrackBacks (0)

Myth – all the great wines are expensive. Au contraire!

I subscribe to Wine Spectator and found ten great wines this past year for $15 or less. And the good news – I still find them on the shelves. But sometimes you must be resourceful.

For example over the holidays, Gillian and I were shopping at Bruno’s, our local lake house grocery store in Lakeport, California. Bruno’s has a surprisingly good selection of wines for Lake County. We found one of our favorite best value wines - the Columbia Crest Merlot, Columbia Valley Grand Estates, which sells for $7.79 at Costco. Both the 2003 and 2004 scored a 90 rating by Wine Spectator. The most recent release, the 2005, is not rated, but has been widely distributed and there it was on the shelf at Bruno’s. I dug into the back of the shelf and found four bottles of the 2004. I bought them all, excited that I had scored a 90 rated wine for $7.99.

Digging into the back of the shelf pays off a lot. The stockers are trained to rotate the old stock up front and place the new stock in the back. But quite often they are lazy and don’t follow proper protocol. I find treasures with this technique all the time. Even at Whole Foods this trick works. Recently, I found two bottles of the 2005 Yellow Tail Shiraz Eastern Australia, The Reserve for $10.99 (rated a 90 by Wine Spectator) shoved in the back of a row of 2006 bottles.

Here’s my current shopping list of 10 great wines for $15 or less:

1. Australian Domaine Wines, Shiraz McLaren Vale Alliance, 2004; $14; 90 rating; 4,000 cases imported:

   Focused, generous and appealing for its licorice-scented blueberry, plum and vanilla flavors, hinting at dried tomato as the finish lingers. Needs time to soften. Best after 2008.

2. Razor’s Edge Shiraz McLaren Vale (Australia), 2005; $12; 90 rating; 20,000 cases imported:

   Smooth and round, with ripe plum, blackberry and dusky spice flavors that just don't quit, lingering on the open-textured finish. Not a big wine, but flavorful and graceful. Drink now through 2012.

3. Jacob’s Creek, Shiraz South Australia Reserve, 2004; $12; 90 rating; 90,000 cases imported:

   Smooth and open-textured, with cherry and savory red pepper flavors that mingle effectively on the mineral-tinged profile, lingering against refined tannins on the long, expressive finish. Drink now through 2014.

4. Yellow Tail Shiraz Eastern Australia, The Reserve, 2005; $11; 90 rating; 50,000 cases imported:

   Bright, lively, harmonious and generous. A sleek mouthful of blueberry, currant and plum flavors, neatly packaged with hints of cream and spice as the finish sails on. Drink now through 2015.

5. Chateau St. Jean Fume Blanc Sonoma County, 2005; $13; 91 rating; 26,270 cases made:

   A textural delight, with fresh, vibrant white peach, melon and lemon-lime citrus flavors that are fragrant, fleshy and rich, with a whiff of fresh-cut grass and juicy acidity. The flavors echo on the long finish. Drink now.

6. Staete Landt Saugvignon Blanc Marlborough (New Zealand), 2006; $15; 91 rating; 6,000 cases imported:

   Wildly fragrant, with a bold burst of passion fruit, grapefruit, gooseberry and lime skin flavors. Grassy notes and vibrant citrus acidity pulse through the finish. Drink now.

7. Drylands Saugvignon Blanc Marlborough (New Zealand), 2006; $15; 91 rating; 18,000 cases imported:

   Exuberantly fragrant, bursting with luscious gooseberry, passion fruit, grass and grapefruit flavors. Concentrated, almost oily, with lingering citrus tanginess and mineral nuances. Drink now.

8. Quinta De La Rosa Douro (Portugal), 2004: $15; 91 rating; 5,000 cases imported:

   An extracted, intense style, with plenty of red raspberry, mineral and chocolate flavors that are fringed by exotic Asian spice notes. The mouth-filling finish echoes the fruit and spice flavors, topped off by some cappuccino notes. Drink now through 2012.

9. Bodegas Borsao Gamacha Campo de Borja Tres Picos (Spain), 2005; $12; 90 rating; 5,000 cases imported:

   Vivid and concentrated, yet still focused and nimble, this red delivers plenty of black cherry and raspberry flavors, framed by toasty, smoky oak. The tannins and acidity are both gentle, but there's enough to keep this balanced and lively. Drink now through 2010.

10. Columbia Crest Merlot Columbia Valley Grand Estates, 2004; $11; 90 rating; 140,000 cases made:

    Bursting with blueberry and currant fruit, this zips across the palate with a racy texture and refined tannins. Lingers enticingly with a hint of mocha on the finish. Drink now through 2009.li>

Pierre Cutler
The Sacramento Executive

Note: source of the reviews is Wine Spectator.

Posted by Pierre Cutler at 12:59 PM | Permalink | Comments (0) | TrackBacks (0)

Earlier in the month, I wrote about the Dogs Of The Dow. The "Dogs" are beating the overall Dow Jones Industrial Average. Since the beginning of year, The DJIA is down by 8.8%, while the Dogs of the Dow are off 6.6%. Click here for details.

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 10:03 AM | Permalink | Comments (0) | TrackBacks (0)

Pierre and I enjoyed participating for several years in the UC Davis Big Bang Competition, a year long contest organized by MBA students of the Graduate School of Management. The goal is to promote entrepreneurship at UC Davis and the region supported by the University. We loved the idea of putting MBA students in touch with scientists with commercialization of research being the end game.

One night we served as coaches at dry run sessions - the presenters putting the polishing touches on their final presentations that were due the next day. That night we met John Argo who was presenting his new collaboration, Q1 Nanosystems, in the field of solar technology. The next night, we watched John do a masterful job at the final competition and win second place.

Over time we kept in touch with John, even running into him in his new office space, which happened to be co-located with the Sacramento Entrepreneurship Academy in West Sacramento. We even gave him a copy of our favorite startup book at the time.

So, it was with great pleasure that I read in the Sacramento Business Journal this week that UC Davis and Q1 Nanosystems had reached an exclusive licensing agreement.

It could end up being one of the great Sacramento stories of academia fueling industry and it all started with an MBA student meeting a group of scientists at a mixer.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 3:19 AM | Permalink | Comments (1) | TrackBacks (0)

Catch the International Sportsmen's Exposition at CalExpo, starting Friday and running through Sunday. Tickets are $12, with 12 and under admitted free. Parking will be $7 per vehicle.

Numerous halls will be open showing various types of hunting and fishing activities. There will also be 15 sports boat dealers representing at least 25 lines of bass and sportfishing boats.

Also featured will be adventure travel destinations.

In addition, the Youth Outdoor Fair--begins Friday at 3:00 pm and runs all weekend and offers lots of hands-on experiences for kids 12 and younger.

Go get a head start on summer fun.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 7:02 AM | Permalink | Comments (1) | TrackBacks (0)

If you are worried about the effect of electronic voting, then attend the West Coast premiere of Uncounted, January 15th at the Crest Theatre. Shows are at 5:30PM and 8PM. There will also be a Q&A with the filmmaker David Earnhardt and maybe some surprise guests too.

Tickets are $10 - $8.50 for students and seniors.

Uncounted, features noted computer programmers, statisticians, journalists, and experienced election officials who provide evidence that election fraud changed the outcome of the 2004 and 2006 elections and will have an even greater impact on the elections of 2008. Check it out.

Thanks to Robert McKeown for passing along.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 6:29 AM | Permalink | Comments (2) | TrackBacks (0)

An entrepreneur who sold his company and is now ready to do it again.
A collaboration of local investors ready to invest in a local company with strong product and a strong, tested, local CEO.
Fairytale?
No, let's hope it's a dream come true.

Freepath, a developer of digital content sharing tools and communities, announced on Monday that it has raised $1.5 million in its first round of funding, led by Velocity Venture Capital.

Individual members of Strategis Early Ventures, Sacramento Angels and the Sierra Angels also participated.

Freepath is led by John Stone, who sold Powerschool, the company he co-founded, to Apple in 2001 and stayed on for several years as an Apple Vice President.

Check out their website, watch their demo and sign up to be notified when their new product is available for free download.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 12:31 PM | Permalink | Comments (0) | TrackBacks (0)

Earlier in the month, I wrote about the Dogs Of The Dow. The "Dogs" are beating the overall Dow Jones Industrial Average. Click here for details.

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 7:12 PM | Permalink | Comments (0) | TrackBacks (0)

Primafuel, a company in the business of producing zero-carbon fuels, will build a 60 million gallon biodesel manufacturing plant in West Sacramento at the North Terminal facility. Funds for the plant come from a $164,000 grant from the California Air Resources Board.

The World Economic Forum recently named Primafuel a 2008 Technology Pioneer for innovative approach to biofuels production and distribution infrastructure.

Gillian Parrillo
The Sacramento Executive
Source: SN&R

Posted by Gillian Parrillo at 8:32 AM | Permalink | Comments (2) | TrackBacks (0)

Here are my google alerts from minutes ago:

New Sacramento Police chief sworn in
Sacramento Bank Robbed.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 3:22 PM | Permalink | Comments (0) | TrackBacks (0)

“A room of one’s own,” Virginia Woolf once famously suggested, is what a woman needs to get any writing done. Alas, even if you have a writing room in your house, the rest of your house is still there to interrupt you when you sit down to focus your creativity… Wait! Did you remember to start the dishwasher this morning? Better get up and check. Oh, is that the doorbell? Look, a neighbor has arrived to chat. And did you ever return those phone calls from yesterday? Better do it now before you forget. Finally, a moment arrives when you can get back to your thoughts and really dig in… my, but how the time has flown and now you’ll need to get dinner started.

Sound familiar? Instead, why not spend the weekend in Lake Tahoe in a quiet room at “Write By the Lake” with other women writers, lots of wine, and wonderful food? I’ll be there too – Jennifer Sander, of The Complete Idiot's Guide to Getting Published, 4th Edition (Complete Idiot's Guide to) and some fifty other titles. A former Random House editor and long time book packager and publishing consultant, I’m happy to build a cozy fire and chat all night long about the trials and tribulations of the publishing world. Imagine the insider secrets you might pick up over a glass of our custom-made house wine, “Well Red.”

Other than drinking wine, what else happens on a Women’s Writing Retreat Weekend? The schedule looks like this:
Friday: Arrive late afternoon for introductions, socializing, and weekend goal setting. Dinner will be served at 7:30
Saturday: Breakfast before 9, private writing from 9 until 12. Lunch break and a short walk to the lake, afternoon writing time from 1:30-5. Dinner at 7:30.
Sunday: Breakfast before 9, writing from 9 until 12. Lunch break, another bit of leg stretching, and writing all afternoon until it is time for you to head back down the hill.

$235 fee includes all: a private room and all meals and drinks. I plan to hold this small event a few times a year at our South Lake Tahoe house, with a maximum of three writers each time. The first two weekends are Jan 25-27th, and March 7-9th. UPDATE -- MARCH LOOKS SOLD OUT, ONE SPOT LEFT FOR JANUARY!

This is your chance to get started on a new project, finish up an old one, or just sit quietly and let your thoughts and creativity surprise you. Let me know if you are interested, I’d love to see you there!

Jennifer Bayse Sander
Email: onedrymartini@hotmail.com

Thank you J.T. Long for passing along. It sounds GREAT.

Gillian Parrillo
SacWomen

Posted by Gillian Parrillo at 9:25 AM | Permalink | Comments (0) | TrackBacks (0)

From the Daily Kos, an hysterical rundown of the Republican debate as viewed by a 9-year old.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 6:46 AM | Permalink | Comments (0) | TrackBacks (0)

Last night I watched the Republican debates. I took notes. I didn't start out intending to, but almost immediately I realized there were going to be so many unbelievable 'facts' bandied about that I needed to keep track.

Fred Thompson said we won Afghanistan. Good grief, did I miss the victory parade, the hauling off of the Taliban, the end to opium production, the capture of Bin Laden?

Rudy Guiliani wants to increase the size of the military. Isn't it way bigger than it should be already?

John McCain supports a pre-emption strategy. I wonder which country we will invade next?

Mitt Romney says we owe President Bush a debt of gratitude. Gosh, I thought the polls showed that most people want him to leave ASAP and without a going-away party.

Romney also wants to increase the military. See graph above.

Ron Paul makes sense. Why do each of the candidates fall over each other using titles, senator, mayor, governor, when half of them aren't even in those roles anymore, but they just call Congressman Paul and Doctor Paul, Ron?

Fred Thompson says we have wall to wall enemies. But I don't think he means that most of them are of our own making.

Ron Paul says we bully people.

John McCain , Mitt Romney and Rudy Guiliani repeatedly sneer at Ron Paul.

Mike Huckabee and Fred Thompson sneer at everyone.

Rudy Guiliani will appoint strict constructionist judges. Well, OK then. Glad you are pro-choice, too bad it won't remain an option through your first year!

Fred Thompson says consumers should shop around for the best health costs. OK, great, let me finish my second minimum wage job of the day that barely keeps food on the table and then come home and comparison shop for my next MRI.

Mitt Romney says 46 million people don't chose to pay to play (don't chose to buy health insurance when they could). A little out of touch, Mitt?

I ran out of paper. But I think you get the gist?

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 2:42 PM | Permalink | Comments (3) | TrackBacks (0)

In 2000, the voters of California did something remarkable - they voted overwhelmingly (61%) to treat drug offenders rather than imprison them. And so Proposition 36 came into being. An independent review shows that the program saves $2.50 for every $1 spent. Since the program began in 2001, more than 36,000 people have accessed the program. More than half (19,000) have received treatment for methamphetamine addiction, making the program the country’s largest methamphetamine treatment program. And contrary to previous belief that meth addiction was very difficult, if not impossible, to treat, those who are addicted to meth do better than other addicts in the program.

All good news until you start looking at the funding of the program. Since the beginning, it has been woefully underfunded. According to an independent study conducted by researchers at UCLA, which was released in April 2007, the program needs at least $228.6 million to provide adequate services, improve treatment outcomes and increase taxpayer savings. The program did survive an attempt by the Republicans to cut all funding for FY 2008 and stayed at the $120M level.

UCLA researchers arrived at the recommended funding level by analyzing the costs of a series of improvements, including:

• More appropriate treatment placement (eg, residential placement for those severely addicted, $18.9 million);
• Providing a “minimum dose”, or 90 days, of treatment ($31.3 million);
• Expanding access to narcotic replacement therapies, such as methadone and buprenorphine ($3.7 million); and
• Enhancing probation supervision ($25 million).

Using counties’ Prop. 36 spending in FY 2005-06 ($149.7 million) as a baseline, the cost of these changes would require total Prop. 36 funding of $228.6 million.

This figure mirrors the funding recommendation of the County Alcohol and Drug Program Administrators’ Association of California, whose 2007 survey of program administrators found that Prop. 36 needs at least $230 million to “adequately address the treatment needs.”

In their report, the UCLA researchers pointed out that the optimal funding figure for Prop. 36 is still higher. The report notes, “Many potential program enhancements are excluded here, for example, the cost of increasing length of stay in long-term residential treatment, providing ancillary services, or aftercare, all of which have been shown to improve drug treatment outcomes.”

Inadequate funding may already be having a negative impact on the program. Data show that 32.0% of year-three Prop. 36 participants went on to complete treatment. This is two percentage points lower than the completion rate in the program’s first two years: 34.4% and 34.3%, respectively.

Dave Fratello, co-author of Prop. 36, said, “It is remarkable that the state and counties give short shrift to the cheapest, highest-impact reform possible under Prop. 36. For just $3.7 million more per year, UCLA says most heroin and opiate-using clients could get narcotic replacement therapy – the gold standard treatment for this addiction. It is a tragedy that this treatment is so badly under-utilized.”

UCLA found that implementation of Prop. 36 in April 2001, had not resulted in any increases or decreases in crime rates in California. They also found no increase in serious crimes and that offenders in the post-Prop 36 era had fewer re-arrests than those in the pre-Prop 36 era.

Analyses conducted by UCLA show that for every $1 invested in Prop. 36, the state saves $2.50. For program completers, every $1 invested leads to $4 in savings. UCLA put first year (2001-02) savings at $173 million. The Legislative Analyst’s Office has estimated that the state’s $120 million annual investment in Prop. 36 resulted in net savings of $205 million in 2002-03 and $297 million in 2004-05. Conservatively estimating $200 million in savings per year, total program savings in six years surpasses $1.2 billion.

Nearly six years into Prop. 36, the number of people incarcerated for drug possession has fallen by 32% (5,000 people). More than 1,000 Californians on parole complete treatment under Prop. 36 each year instead of going back to prison. By diverting so many into treatment, Prop. 36 rendered unnecessary the construction of a new men’s prison (saving an addition $500 million) and also resulted in the shuttering of a women’s prison. This brings total savings to $1.7 billion.

So, explain to me again why we would consider slashing this funding and why we aren't increasing funding to a level that all of the experts recommend?

The program works, the crime rate is not up, the savings are substantial. Oh, would the reason be the the California Correctional Peace Officers Association (CCPOA), the California prison guards' union? CCPOA is a major player in California politics and is widely considered to be one of the most poweral political forces in Sacramento. The CCPOA has no desire to see less prisoners, less prisons built, less jobs for prison guards, etc. etc.

This is ludicrous. We are the voters and we need to start asking some tough questions NOW. I think I am going to start by figuring out who is getting all those political donations from CCPOA. I will keep you posted.

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 1:13 PM | Permalink | Comments (1) | TrackBacks (0)

What's the highest value company in the Sacramento region?

Hint: 1.5 million customers in 23 states, and $77.4 million in net income on $824 million in revenue in 2006.

Hint: Based in Folsom, CA

Hint: Market cap of $2.1 billion -- more than The McClatchy Co., GenCorp Inc. and SureWest Communications combined.

Hint: If we didn't have them, our lives would be trashed!

Yep, you got it - Waste Connections Inc.

The CEO of Waste Connections, Ron Mittelstaedt, has just been named Executive of the year by the Sacramento Business Journal

Gillian Parrillo
The Sacramento Executive

Posted by Gillian Parrillo at 7:26 AM | Permalink | Comments (0) | TrackBacks (0)

The Dogs of the Dow investment strategy has been around for several years, first introduced by Michael O’Higgins in his book “Beating the Dow” in 1991. The strategy is simple – once a year, buy the ten highest dividend yielding stocks in the Dow Jones 30. At the end of each year rebalance, being sure to sell only after the short term capital gain timeframe has expired. Since 1973, the results have been dramatic, with an average annual return of 17.7% vs. 11.9% for the Dow Jones Industrial Average (according to www.DogsoftheDow.com).

As of December 31, 2007, the Dogs are (yield/closing price):

• Altria Group (MO), 3.95%, $75.58;
• AT&T (T), 3.83%, $41.56;
• CitiGroup (C) 7.33%, $29.44;
• DuPont (DD), 3.71%, $44.09;
• General Electric (GE), 3.34%, $37.07;
• General Motors (GM), 3.98%, $24.89;
• JP Morgan Chase (JPM), 3.46%, $43.65;
• Pfizer (PFE), 5.62%, $22.73;
• Home Depot (HD), 3.35%, $26.94;
• Verizon (VZ), 3.92%, $43.69

Let’s track the progress of these Dogs and see how it compares to our other investment strategies, the Magic Formula Index and the Power Women 50 Index.

The Dow Jones closed the year at 13,264.82 and the S&P 500 closed at 1,468.36.

Pierre Cutler
The Sacramento Executive

Posted by Pierre Cutler at 8:20 AM | Permalink | Comments (0) | TrackBacks (0)