The Innovation Index Strikes Back in 2009

The Innovation Index had a remarkable showing in 2009, gaining 48.65%, and beating S&P 500, Dow Jones and NASDAQ. 17 of the top 20 innovators were in the green. 3 of the top 20 innovators, including Amazon.com (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL) and Google Inc. (NASDAQ: GOOG) had over 100% gains. 16 of the top 20 innovators had double-digit gains. eBay (NASDAQ: EBAY) and Research In Motion (NASDAQ: RIMM) gained over 65% each. America Movil (NYSE: AMX), IBM (NYSE: IBM) and Microsoft (NASDAQ: MSFT) gained over 50% each. Only 3 innovators were in the red.

2009 proved that the most innovative companies in USA are not only resilient, but bounce back bigger and faster compared to the general market. The Top 20 innovators performed extremely well, delivering explosive growth in business, profits, innovations, and stock performance.

How will the Innovation Index perform in 2010? Check back in April, 2010 for the quarterly report of the Innovation Index.

Learn about Apple's innovation strategy... How does Apple innovate, and what makes Apple the #1 innovative company in the world? Learn more...

Selected references:
Leading Business Innovation eBook & Resource Kit
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

The Innovation Index 2008 Performance

The Innovation Index 2008 Performance
Top 20 Innovators	Ticker	31-Dec-07	31-Dec-08	% Change
3M Company	MMM	84.32	57.54	-31.76%
Amazon.com	AMZN	92.64	51.28	-44.65%
America Movil	AMX	61.39	30.99	-49.52%
Apple	AAPL	198.08	85.35	-56.91%
AT&T	T	41.16	28.50	-30.76%
Best Buy	BBY	52.51	28.11	-46.47%
Cisco Systems	CSCO	27.07	16.30	-39.79%
Costco Wholesale	COST	69.60	52.50	-24.57%
eBay	EBAY	33.19	13.96	-57.94%
General Electric	GE	36.74	16.20	-55.91%
Google	GOOG	691.48	307.65	-55.51%
Hewlett-Packard	HPQ	50.48	36.29	-28.11%
Intel	INTC	26.50	14.66	-44.68%
IBM	IBM	107.69	84.16	-21.85%
Merck	MRK	57.61	30.40	-47.23%
McDonald's	MCD	58.51	62.19	6.29%
Microsoft	MSFT	35.46	19.44	-45.18%
NIKE	NKE	64.00	51.00	-20.31%
Research In Motion	RIMM	113.40	40.58	-64.22%
Proctor & Gamble	PG	73.05	61.82	-15.37%
The Innovation Index		108.27	66.35	-38.72%
S&P 500	^GSPC	1,468.36	903.25	-38.49%
Dow Jones	^DJI	13,264.82	8,776.39	-33.84%
NASDAQ	^IXIC	2,652.28	1,577.03	-40.54%
McDonald's Corporation is the only innovator out of the top 20 innovators that had a positive stock performance in an otherwise tough 2008. McDonald's has achieved an amazing feat that will be cherished for a long time. 8 out of the Top 20 Innovators finished averaging better performance than the S&P 500. Assumptions and Disclosures: *Assumes equal investment in each Innovator of the Innovation Index
*Innovation Index Fund is closed and ended much lower than the Innovation Index
*2009 Innovation Index will be announced the week of Jan 12, 2009
*Innovation Index Group will relaunch in 2009, without management of any fund, as an investment research and analysis company.

Selected references:
Leading eBook on Creativity and Innovation in Business
Creativity and Innovation Best Practices
Creativity and Innovation Case Studies
The Innovation Index
Top 50 innovative companies in the world

IBM, eBay and Intel have investors rejoicing

IBM (NYSE: IBM) and eBay Inc. (NASDAQ: EBAY) reported their first quarterly earnings for 2008 after market close today, and Wall Street which was already in an upbeat mood from Intel's (NASDAQ: INTC) positive earnings report yesterday, rejoiced even further. IBM beat the quarterly earnings, and raised the 2008 guidance. IBM shares were up about 3% in after hours for a total daily gain of about 6%. IBM shares are already up 11.44% in 2008 (without counting after hours activity). eBay shares were also up today on the broad market rally, and are only down 3.22% for the year. eBay posted a solid 22 percent rise in quarterly net profit, topping Wall Street's average estimate, and importantly, cautiously raised its 2008 revenue target. Yesterday, Intel reported quarterly earning that beat the lowered estimates, and raised the second quarterly guidance. This was enough to start the tech rally today, that extended into optimism across the board. Intel shares were up nearly 6% today, and gained more in after hour trading. Intel shares are down 17% for the year though.

IBM, eBay and Intel are three of the Top 20 Innovators of The Innovation Index. Innovation Index Group has a BUY recommendation for these Innovators.

The Innovation Index closed today at 100.51, up 2.05 points.

In Future Earnings Guidance, I had talked about the importance of earnings guidance, and its impact on short term stock price. IBM had provided an upbeat guidance in January, 2008, and hence its stock began to appreciate after the quarterly report (although was down 14% early in the year). IBM has not only erased the entire negative performance, it is up 11.44% for the year.

Excerpts from various company press releases:

IBM (NYSE: IBM) announced first- quarter 2008 diluted earnings of $1.65 per share from continuing operations compared with diluted earnings of $1.21 per share in the first quarter of 2007, an increase of 36 percent as reported. First- quarter income from continuing operations was $2.3 billion compared with $1.8 billion in the first quarter of 2007, an increase of 26 percent. Total revenues for the first quarter of 2008 of $24.5 billion increased 11 percent (4 percent, adjusting for currency) from the first quarter of 2007.

"IBM had a very good quarter, and a good start to 2008. These results reinforce our confidence in IBM's ability to perform well in a dynamic global economy. ....," said Samuel J. Palmisano, IBM chairman, president and chief executive officer.

"IBM is a different company today, with a number of unique advantages: our global reach and scale, our strength in profitable growth segments, strong recurring revenue and profit streams, products and services that create real value for clients, and the discipline and financial strength and flexibility that enables us to adjust our business model as conditions require.

"We feel good about the rest of the year."

eBay Inc. (Nasdaq:EBAY) today reported financial results for its first quarter ended March 31, 2008. The ecommerce company posted first quarter revenue of $2.19 billion, up $424 million from the same period last year. Revenue growth was driven primarily by Marketplaces net transaction revenues, the ongoing expansion at PayPal, Skype and the company's global classifieds business. The company's global footprint helped it benefit from strength in other currencies, relative to the U.S. dollar. The company recorded net income on a GAAP basis of $460 million or $0.34 per diluted share, and non-GAAP net income of $562 million or $0.42 per diluted share.

"This was a very strong financial quarter for the company," said eBay Inc. President and CEO John Donahoe. "The results reflect the strength provided by our diverse portfolio of businesses. Our stability and growth continues to give us the confidence to make innovative changes to our products to keep customers engaged for years to come."

Intel Corporation yesterday announced record first-quarter revenue of $9.7 billion, operating income of $2.1 billion, net income of $1.4 billion and earnings per share (EPS) of 25 cents.

"Our first quarter results demonstrate a strengthening core business and a solid global market environment," said Paul Otellini, Intel president and CEO. "We saw healthy demand for our leading-edge processors and chipsets across all segments. Looking forward, we remain optimistic about our growth opportunities as we continue to reap the benefits of our 45nm technology leadership."

Bottomline:

IBM, eBay and Intel have definitely showed resiliency in current economic conditions; not only have they found a way to grow their business in these conditions, they have also raised their future financial outlook. This speaks volumes. This is what sets true innovators apart. IBM, eBay and Intel are able to sell their products, create new markets and new growth opportunities, and execute. Specifically, Intel has excelled with the 45nm technology leadership and the resulting processor products, eBay with Marketplaces business model innovation, and the ongoing expansion at PayPal, Skype and the company's global classifieds business, IBM with total Global Services revenues growth of 17% and the closed acquisition of Cognos growing the revenues for Information Management software by a significant 27 percent. IBM grew the total software segment revenue by 14% from last year.

IBM, eBay and Intel could quite possibly fuel a BULL market rally, and perhaps put the Bears to rest.

About Innovation Index Group:

Innovation Index Group, Inc. is a new investment management company focused on systematically identifying, tracking and investing in the most innovative publicly traded companies in North America – collectively called the Innovation Index. We have developed the Innovation Index Fund, LLC as our first vehicle to invest in the Innovation Index. Over the past six years, the Innovation Index has generated a gross average annual return of 40%.

Innovation Index Group, Inc. and Innovation Index Fund LLC are registered California Corporations, and member of the Irvine Chamber of Commerce in Orange County. Further, Innovation Index Fund LLC is a private placement investment partnership organized under the California state regulations.

The Innovation Index Reports:

Invest in The Innovation Index - Innovation Index Fund tracks The Innovation Index
The Innovation Index closes 2007 at 66% - 2007 Annual Report on the Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Innovative Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007, and returned 174% over the previous five years (2002-2006). This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.*

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.
*Past Performance Does Not Guarantee Future Results

The Innovation Index slides 9% in Q1, 2008, manages to stay in front of S & P 500

The Innovation Index Performance Since Dec 2006

The Innovation Index slides 9% in the first quarter of 2008 along with the broader market. The Innovation Index beats S & P 500 by 1%, beats NASDAQ by 5%, and lags Dow Jones by 1%. S & P 500 is down 10%, NASDAQ is down 14% and Dow Jones is down 8% in the first quarter of 2008.

Only 4 Innovators out of the Top 20 Innovators are in the green in 2008 and are showing modestly positive returns ranging from 1% to 7% gain. 16 out of the Top 20 Innovators are in the red in 2008, with wide-ranging negative returns with a maximum of 36% loss.

The Innovation Index had a banner 2007, and gained 66% in 2007.* The Innovation Index closed at 108.27 on December 31, 2007, up 66% from the closing price of 65.05 on December 29, 2006.*

Invest in The Innovation Index - Invest in the Innovation Index Fund

The Innovation Index closed at 98.51 on March 31, 2008, down 9% from the closing price of 108.27 on December 31, 2007, and up 51% from the closing price of 65.05 on December 29, 2006. S & P 500 is down 7%, NASDAQ is down 6% and Dow Jones is down 2% since December 29, 2006.

The Innovation Index - 2008

The Innovation Index - 2007

Q1 2008 Leaders

Only 4 Innovators show a positive gain in first quarter of 2008. The early leader of 2008 is IBM (NYSE: IBM) with a gain of 7%. Why is IBM ahead? Great quarterly earnings performance, and an upbeat future earnings guidance aka outlook. IBM is poised to have a solid 2008, and if the broader market improves, watch out! IBM could easily gain 20% to 30% in 2008. Nike Inc. (NYSE: NKE) also leads with 6% gain for the year. Nike also had an amazing quarter, beat the revenue and earnings on the high estimates, and gave an upbeat outlook as well. If Nike continues to deliver on the announced innovations, Nike will have another breakout year on the heels of 2007. Who else is in the positive in 2008? How about America Movil (NYSE: AMX) and General Electric (NYSE: GE)? America Movil is on a three-peat: After a solid 2007 with 36% gain, and an impressive 2006 with 56% gain, America Movil is up 4% in 2008. It's core business is wireless which shows no signs of letdown in 2008. 2008 could be the year of GE. GE was even in 2007 (paid good dividend though). Investors are betting that GE can grow globally and show consistent growth in 2008. GE is a safer bet. GE is up 1% in 2008.

Q1 2008 Laggards

There is a sea of red. Everywhere you see, you see Innovators with negative performance in 2008. As a matter of fact, there are 16 of the 20 Innovators who are down in the first quarter of 2008. Who leads the pack in losses? Surprisingly, it is Google Inc. (NASDAQ: GOOG). Google is down 36% in 2008, after gaining 50% in 2007. So it is kind of bittersweet. Can Google rebound in 2008 with the earnings gains from recently completed Double Click acquisition? Google also announced new innovations with Team Apps. Google has plenty of distractions though - the biggest one being Microsoft's pending acquisition of Yahoo. Google must stay focused on increasing Search marketshare and increasing the higher performing clicks. A percent improvement in the effectiveness of clicks generates a factor of ten improvement in topline revenue. One of the newest Innovator for 2008 is down 34% after gaining 35% in 2007. Merck Inc. (NYSE: MRK) is down 34% in Q1, 2008. There are plenty of news around Merck's Vytorin and Zetia. "The drugmakers sold $5.2 billion of Vytorin and Zetia last year. The study showing the drugs work no better than a generic medicine at one-fifth the price may cost the two companies $1.3 billion in sales this year and $1 billion next year, said Jim Kelly, an analyst with Goldman Sachs & Co., in a research report today." - Bloomberg Merck has some rebounding to do from such a deep drop in 2008.
Why are shares of Apple Inc. (NASDAQ: AAPL) down 28% after gaining 133% in 2007? Apple was one of the star performers in 2007 Innovation Index. Apple kicked off 2008 with bold new innovations, introduced the new iPhone and new iPod touch, and created new technology with Nike for the gym. It has do with future earnings guidance, or rather a weak one by Apple. If Apple delivers on the earnings and shows growth in Mac, iPod and iPhone business, Apple will do just fine. Can Apple hit $250 in 2008? We will need to fast forward to December 2008.

There are 4 Innovators who have lost 20% or more in 2008. These include Amazon.com Inc. (NASDAQ: AMZN) down 23% after gaining a whopping 135% in 2007; Best Buy Inc. (NYSE: BBY) down 21% after gaining 6% in 2007; Intel (NASDAQ: INTC) down 20% after gaining 32% in 2007; and Microsoft Corporation (NASDAQ: MSFT) down 20% after gaining 20% in 2007. Can these Innovators rebound in 2008?

Which Innovators are safe bets for investors in 2008? 3M and PG are smart long-term buys in turbulent markets. We have three more quarters in 2008. And as we witnessed in 2007, one quarter can make a huge difference.

2007 Leaders

Research In Motion Limited - (NASDAQ: RIMM) was the 2007 leader in stock performance, with 166% gain for the year. Amazon.com, Inc. (NASDAQ: AMZN) was equally impressive with 135% gain for the year. Apple Inc. (NASDAQ: AAPL) had a great year with 133% appreciation for the year. There were eight other innovators with double-digit gains for the year. Among these innovators, Google Inc. (NASDAQ: GOOG) led with 50% gain. America Movil (NYSE: AMX) was next up with 36% gain in 2007, and Intel Corporation (NASDAQ: INTC) closed out 2007 with 32% gain. Overall, 13 innovators finished 2007 with positive gains.

2007 Laggards

Six innovators finished the year in the negative, led by Starbucks Corporation (NASDAQ: SBUX) declining 42% for the year. Southwest Airlines Co. (NYSE: LUV) was next, declining 20% for the year. Target Corp. (NYSE: TGT) rounded out the top three, declining 12% for the year. Yahoo Inc. (NASDAQ: YHOO) was down 9% in 2007.

2008 Top 20 Innovators

The Top 20 Innovators for 2008 were announced on December 31, 2007. Here is the alphabetical list of the Top 20 Innovators for 2008:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

2008 Predictions (originally published January 17, 2008)

How will The Innovation Index perform in 2008? So far, the Innovators have been off to a rough start in 2008. The sub-prime mortgage crisis, rising oil prices, and early indications of slowing economy have contributed to negativity on the Wall Street. We believe this sentiment is short-lived, and will only last through the second quarter of 2008. The potential availability of an economic stimulus package will certainly help. The resilient Innovators of The Innovation Index will reward the patient, long-term investor. The key is to stay with these Innovators through the downturn, and wait until later in the year to realize the positive gains.* Innovation Index Group, Inc. announced the following BUY recommendations for the Top 20 Innovators of The Innovation Index.

Invest in the Innovation Index Fund

We launched the new Innovation Index Fund in December, 2007 that invests in the Innovation Index. Innovation Index would have returned 66% in 2007 based on our performance model, and 174% in the previous five years based on historical model. If you want to learn more about the Innovation Index Fund, fill out your contact information at the bottom of this form: http://www.innovationindexgroup.com/invest.html

The Innovation Index Reports:

Invest in The Innovation Index - Invest in the brand new Innovation Index Fund
Introducing The Innovation Index Fund - Invest into The Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance
The Innovation Index gallops to 56% - Quarterly Report - Q3, 2007

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007 according to performance model, and would have returned 174% over the previous five years (2002-2006) according to historical model. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NASDAQ: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.

* Past Performance Does Not Guarantee Future Results

eBay Do Not Want Your Digital Products

By Luis Galarza - Marketing Training.

Well, eBay Do Not Want Your Digital Products Like eBooks, Audio Books, Video Training, and Software To Be Sold On Their Auction System... But Still Hope!

Yes, my dear infopreneurs (information entrepreneurs) eBay give us some hope to keep leveraging their massive web traffic of online buyers by giving us the option to promote our information products through their classified ad system. eBay classified ads has a small investment of $9.99 per every 30 days.

Here is the page to the official annoucement:
http://www2.ebay.com/aw/core/200803241300132.html

It's true this is a different and a little harder way to sell your digital information products on eBay... But, as you know the Internet is an always changing marketing channel and business landscape. Almost everything on the Internet can be change by tomorrow, by you, by web users, by me, and by the big companies like eBay, Google, or Microsoft.

So, what can you do all this changes?

Well, real entrepreneurs will adapt to the changes and look at those changes as a new or different opportunity to make money online. To learn more about what I mean when I said "Real Entrepreneurs" read an article I wrote title "12 Internet Business Tips For Beginners To Go From Dreamers To Entrepreneurs".

I got this news from an one of Derek Gehl's eBay and Marketing newsletter, where he keep us inform about all the new changes on eBay and he provide tips on how to make those changes work for you. He actually give a few strategies to help infopreneurs take advantage of this new developments.

Tip 1. Just use the classified ads and promote your ebook or any type of digital information product you want to market on eBay. Just make sure you test your sale copy and track the results, then optimize your classified ad until you find a winner.

Tip 2. If you still want to sell your digital product through eBay auction system, just put your product on CD or DVD which will turn your downloadable digital product into a physical item, and this will make it right for the auction system. To do this just go to Lulu, Cafepress, and Kunaki, this information product distribution services don't need up-front investment and they handle everything for you... You just need to bring the traffic.

Tip 3. Sell resell right to your product this can increase your profit per product and you will have an army of resellers promoting your product with your name and contact information in it.

Tip 4. Sell inserts advertising to other information marketers that are selling a complementary digital product that doesn't compete with your own.

Tip 5. To increase your infoproduct sales, you can offer classified ads shoppers the option of getting your product on CD or DVD for an extra small fee. For example: If you're selling an video download for $17, you can sell the DVD version for $27 or more...

There are many ways to make money with the new business changes at eBay, just use your creativity and analyze other ways you can use this new development in your advantage.


Resources:
- Insider Secrets To Selling On eBay.
- eBay Classified Ads.
- Auction Inspector Software for eBay.

To learn proven Internet marketing strategies, I recommend you to check Insider Secrets To Marketing Your Business Online 2008 Version. This is the number one Internet marketing training for over 10 years.


In Conclusion: It doesn't matter how bad something looks, there is always a way out... Brainstorm some ideas, create a marketing plan for your products, take action, then track and test the results from those actions.

To learn how can you be part of the Internet Entrepreneurs Club for only $2.95 click here.

To your success,

Luis Galarza, Internet Marketing Consultant Massachusetts.

About Author: Luis Galarza is a respectable Internet Marketing and Small Business Consultant in the area of Leominster and Fitchburg, Massachusetts. Also, he had teach 100's of entrepreneurs how to make money online and offline without their own product.

A proud member of

The International Association of Home Business Entrepreneurs

.

Technorati tags: Luis Galarza, Online Marketing, Digital Products, Selling eBooks On eBay, Sell On eBay, Sell Infoproducts, Selling Online,

Future Earnings Guidance, A Leading Indicator of Stock Performance

Apple Inc. (NASDAQ: AAPL), Cisco Systems, Inc. (NASDAQ: CSCO), eBay Inc. (NASDAQ: EBAY), IBM (NYSE: IBM), Intel Corporation (NYSE: INTC) and Microsoft Corporation (NASDAQ: MSFT) are six of the Top 20 Innovators of The Innovation Index.

The Innovation Index closed 2007 with 66% gain, crushing the major U.S. indices.

Even though Apple Inc. kicked Off 2008 with bold new innovations, and Apple delivered outstanding results for the latest quarter beating the analyst expectations, Apple shares are down 36% from their 52 week peak of $202.96. Apple had the best quarter in its history. Further, eBay, Cisco and Intel shares are also down 34%, 29% and 29% respectively from their 52 week highs. eBay, Cisco and Intel all had great quarters as well, and beat the analyst expectations.

Why?

On the other hand, IBM and Microsoft had great quarters as well, and also beat analyst expectations. However, IBM and Microsoft shares are trending up, and are only down 14% and 12% from their 52 week highs respectively. NASDAQ composite is also down, but only 19% from the 52 week high.

Thus, IBM and Microsoft stocks are doing better relative to the NASDAQ and also four innovators.

Future Earnings Guidance

IBM and Microsoft came out with positive, uplifting future earnings guidance for 2008. Their earnings guidance either met or beat the street's expectations. Hence, their stocks are trending up! On the other hand, the street perceived Apple's, Cisco's, eBay's, and Intel's 2008 guidance as weak, and below their expectations. Are Apple, Cisco, eBay and Intel sandbagging, or simply playing the conservative earnings guidance game - under-promise and over-deliver? Or are they taking into account the current economic climate, and simply don't want to over-promise?

It's evident though that even these Top Innovators are not immune to interim stock price fluctuations owing to their earnings guidance. The reality is that these companies will outperform, and show a solid earnings growth. At which point, their stocks will go up. For now, because of their relatively weak outlook, their stocks are battered down. Perhaps they provide an excellent buying opportunity to the prudent, value investor.

The Innovation Index Reports:

Top 50 Innovative Companies in the world - 2007 Report on Top 50 Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007, and returned 174% over the previous five years (2002-2006). This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invested in the stocks comprising The Innovation Index.

The Innovation Index closes 2007 with 66% gain, beats major U.S. indices

Invest in The Innovation Index - Invest in the brand new Innovation Index Fund


(click to maximize Innovation Index performance chart)

The Innovation Index had a banner year, and gained 66% in 2007. The Innovation Index beats the major U.S. indices including the S & P 500, NASDAQ and Dow Jones. S & P 500 was up 4% for the year, NASDAQ was up 10% for the year and the Dow Jones Index was up 6% for the year.

The Innovation Index closed at 108.27 on December 31, 2007, up 66% from the closing price of 65.05 on December 29, 2006.

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2007 Leaders

Research In Motion Limited - (NASDAQ: RIMM) was the 2007 leader in stock performance, with 166% gain for the year. Amazon.com, Inc. (NASDAQ: AMZN) was equally impressive with 135% gain for the year. Apple Inc. (NASDAQ: AAPL) had a great year with 133% appreciation for the year. There were eight other innovators with double-digit gains for the year. Among these innovators, Google Inc. (NASDAQ: GOOG) led with 50% gain. America Movil (NYSE: AMX) was next up with 36% gain in 2007, and Intel Corporation (NYSE: INTC) closed out 2007 with 32% gain. Overall, 13 innovators finished 2007 with positive gains.

2007 Laggards

Six innovators finished the year in the negative, led by Starbucks Corporation (NASDAQ: SBUX) declining 42% for the year. Southwest Airlines Co. (NYSE: LUV) was next, declining 20% for the year. Target Corp. (NYSE: TGT) rounded out the top three, declining 12% for the year. Yahoo Inc. (NASDAQ: YHOO) was down 9% in 2007.

2008 Top 20 Innovators

The Top 20 Innovators for 2008 were announced on December 31, 2007. Here is the alphabetical list of the Top 20 Innovators for 2008:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

2008 Predictions

How will The Innovation Index perform in 2008? So far, the Innovators have been off to a rough start in 2008. The sub-prime mortgage crisis, rising oil prices, and early indications of slowing economy have contributed to negativity on the Wall Street. We believe this sentiment is short-lived, and will only last through the second quarter of 2008. The potential availability of an economic stimulus package will certainly help. The resilient Innovators of The Innovation Index may reward the patient, long-term investor. The key may be to stay with these Innovators through the downturn.

Invest in the Innovation Index Fund

We launched the new Innovation Index Fund in December, 2007 that invests in the Innovation Index. Innovation Index would have returned 66% in 2007 according to our performance model, and would have returned 174% in the previous five years according to our historical model.* If you want to learn more about the Innovation Index Fund, fill out your contact information at the bottom of this form: http://www.innovationindexgroup.com/invest.html

The Innovation Index Reports:

Invest in The Innovation Index - Invest in the brand new Innovation Index Fund
Introducing The Innovation Index Fund - Invest into The Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance
The Innovation Index gallops to 56% - Quarterly Report - Q3, 2007

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index returned 66% in 2007, and would have returned 174% over the previous five years (2002-2006) based on historical model.* This assumes equal investment in each stock of The Innovation Index as of December 31, 2001. An average of $100 invested in The Innovation Index on December 31, 2001 returned $454 as of December 31, 2007. By comparison, $100 invested in S & P 500 returned 28% or $129, $100 invested in NASDAQ returned 34% or $136, and $100 invested in the Dow Jones Index returned 30% or $131 through December 31, 2007. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by more than seven times over the past six years.

Alphabetical list of the Top 20 Innovators of The Innovation Index for 2008 and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.

*Past Performance Does Not Guarantee Future Results. Please refer to Innovation Index Fund Prospectus for details on our offering.

The Innovation Index Top 20 Innovators for 2008

Invest in The Innovation Index - Invest in the brand new Innovation Index Fund

Top 20 Innovators of The Innovation Index for 2008

Six new Innovators have been added to The Innovation Index for 2008:

AT&T Inc. - (NYSE: T) (52 week change: UP 18.71%)
Best Buy Co., Inc. - (NYSE: BBY) (52 week change: UP 6.30%)
Costco Wholesale Corporation - (NASDAQ: COST) (52 week change: UP 32.82%)
Merck & Co., Inc. - (NYSE: MRK) (52 week change: UP 34.66%)
McDonald's Corporation (NYSE: MCD) (52 week change: UP 34.22%)
NIKE, Inc. - (NYSE: NKE) (52 week change: UP 29.88%)

Fourteen existing Innovators have been retained to The Innovation Index for 2008:

3M Company - (NYSE: MMM) (52 week change: UP 9.19%)
Amazon.com, Inc. - (NASDAQ: AMZN) (52 week change: UP 139.36%)
America Movil - (NYSE: AMX) (52 week change: UP 34.30%)
Apple Inc. - (NASDAQ: AAPL) (52 week change: UP 135.54%)
Cisco Systems, Inc. - (NASDAQ: CSCO) (52 week change: UP 0.84%)
eBay Inc. - (NASDAQ: EBAY) (52 week change: UP 12.34%)
General Electric Co. - (NYSE: GE) (52 week change: UP 0.35%)
Google Inc. - (NASDAQ: GOOG) (52 week change: UP 52.56%)
Hewlett-Packard Co. - (NYSE: HPQ) (52 week change: UP 24.69%)
Intel Corporation - (NYSE: INTC) (52 week change: UP 32.15%)
International Business Machines Corp. - (NYSE: IBM) (52 week change: UP 13.32%)
Microsoft Corporation - (NASDAQ: MSFT) (52 week change: UP 20.96%)
Research In Motion Limited - (NASDAQ: RIMM) (52 week change: UP 174.55%)
The Proctor & Gamble Company - (NYSE: PG) (52 week change: UP 15.53%)

Six old Innovators were dropped from 2007 and will not make the 2008 list:

Dell Inc. - (NASDAQ: DELL) (52 week change: DOWN 0.56%)
Southwest Airlines Co. - (NYSE: LUV) (52 week change: DOWN 20.17%)
Starbucks Corporation - (NASDAQ: SBUX) (52 week change: DOWN 43.17%)
Target Corp. - (NYSE: TGT) (52 week change: DOWN 11.06%)
Wal-Mart Stores, Inc. - (NYSE: WMT) (52 week change: UP 4.11%)
Yahoo! Inc. - (NASDAQ: YHOO) (52 week change: DOWN 8.18%)

The Innovation Index Top 20 Innovators for 2008 are the following:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

Further commentary on the addition of six new Innovators, the top Innovator of 2007, and the changes will be provided in the second week of January, 2008. As of December 17, 2007, The Innovation Index has returned 56%. The Innovation Index closed at 101.28 on December 17, 2007, effectively even from the closing price of 101.39 on Sep 28, 2007, and up 56% from the closing price of 65.05 on December 29, 2006.

Invest in the Innovation Index Fund

We launched the new Innovation Index Fund in December, 2007 that invests in the Innovation Index and returned 66% in 2007, and 174% in the previous five years. If you want to learn more about the Innovation Index Fund, fill out your contact information at the bottom of this form: http://www.innovationindexgroup.com/invest.html

The Innovation Index Reports:

Invest in The Innovation Index - Invest in the brand new Innovation Index Fund
Introducing The Innovation Index Fund - Invest into The Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance
The Innovation Index gallops to 56% - Quarterly Report - Q3, 2007

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index has returned 119% over the last five years. This assumes an investment in each stock of The Innovation Index (buying each stock). An average of $100 invested in The Innovation Index on December 31, 2001 returned $219 as of December 29, 2006. By comparison, $100 invested in each of S & P 500, NASDAQ and Dow Jones Index returned $124. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by 77% over the last five years.

The Normalized Innovation Index has returned an impressive 174% over the last five years. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001.

2008 - Alphabetical list of the Top 20 Innovators of The Innovation Index and their stock ticker symbols for 2008:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
AT&T Inc. - (NYSE: T)
Best Buy Co., Inc. - (NYSE: BBY)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Costco Wholesale Corporation - (NASDAQ: COST)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Merck & Co., Inc. - (NYSE: MRK)
McDonald's Corporation (NYSE: MCD)
Microsoft Corporation - (NASDAQ: MSFT)
NIKE, Inc. - (NYSE: NKE)
Research In Motion Limited - (NASDAQ: RIMM)
The Proctor & Gamble Company - (NYSE: PG)

2007 - Alphabetical list of the Top 20 Innovators of The Innovation Index and their stock ticker symbols for 2007:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Dell Inc. - (NASDAQ: DELL)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Microsoft Corporation - (NASDAQ: MSFT)
Research In Motion Limited - (NASDAQ: RIMM)
Southwest Airlines Co. - (NYSE: LUV)
Starbucks Corporation - (NASDAQ: SBUX)
Target Corp. - (NYSE: TGT)
The Proctor & Gamble Company - (NYSE: PG)
Wal-Mart Stores, Inc. - (NYSE: WMT)
Yahoo! Inc. - (NASDAQ: YHOO)

The Innovation Index will analyze the positions and standings of the Top 20 Innovators at the end of each year. For 2008, there will be no further changes in The Innovation Index.

Disclaimer: The Innovation Index Group, Inc. invests in the stocks comprising The Innovation Index.

The Innovation Index levels at 56%, crushes major U.S. indices

Invest in The Innovation Index - Invest in the brand new Innovation Index Fund

(click to maximize)

The Innovation Index gained 3 points after a short drop last month, and has now gained 56% for the year, effectively tying the performance at the end of the 3^rd quarter. Could this be another banner year for The Innovation Index? The Innovation Index easily crushes the major U.S indices including the S & P 500, NASDAQ and Dow Jones. S & P 500 dropped 5% after the third quarter, and is now up only 2% for the year; NASDAQ shed 5% after the third quarter, and is now up only 7% for the year; the Dow Jones Index also dropped 5%, and is now up 6% for the year.

(click to maximize)

The Innovation Index closed at 101.28 on December 17, 2007, effectively even from the closing price of 101.39 on Sep 28, 2007, and up 56% from the closing price of 65.05 on December 29, 2006.

The Innovators were busy in November, 2007 and went on an acquisition spree. Here were some of the top acquisitions by the top innovators.

Mid-Quarter Leaders

Apple Inc. (NASDAQ: AAPL) is the leader mid-quarter, after adding another 20%, and gaining a massive 117% for the year - early results indicate good results for Apple’s 4 horsemen: iPod/iTunes, iPhone, Leopard and the Mac. Google Inc. (NASDAQ: GOOG) is next at 18% increase mid-quarter, and up by a solid 45% for the year – Google’s Search is increasing market share and forays into video and integrated advertising appear to gaining strength. Microsoft Corporation (NASDAQ: MSFT), the earlier leader mid-quarter with 17% gains is third, up 16% for the year – Vista is gaining full steam, and also the Office productivity software. Wal-Mart Stores, Inc. (NYSE: WMT) with gains of 10% on the heels of a good November is next up, and up 4% for the year. Only 3 more Innovators have gains mid quarter - Research In Motion Limited (NASDAQ: RIMM) continued the bull run with another 2% gain, leading all innovators with 135%. The Proctor & Gamble Company (NYSE: PG) added 4%, with an envious 15% gain for the year, and Hewlett-Packard Co. (NYSE: HPQ) stayed true to form with 2% gain, and a healthy 24% increase for the year. These innovators are enjoying an impressive 2007 to date.

Mid-Quarter Laggards

It has been a tough quarter so far for many innovators and the U.S. stock market at large. Nine innovators have double-digit losses mid-quarter, and four innovators are in the red with single-digit losses. Starbucks Corporation (NASDAQ: SBUX) has lost 23% this quarter, and is now down a huge 43% for the year. Where are those consumers buying White Chocolate Mochas and Lattes? Starbucks could use more during the cold season. Target Corp. (NYSE: TGT) and eBay Inc. (NASDAQ: EBAY) are next losing 18% this quarter; Target is down 9% for the year, however eBay is up 6% for the year. Target had disappointing November sales and the outlook for December did not improve either. eBay on the other hand is hoping that consumers spend a ton of money trading the Nintendo WIIs, iPods and other high value products during the quarter.

Cisco Systems, Inc. (NASDAQ: CSCO) has given up 16% for the quarter, and is only up 2% for the year. Can Cisco rebound? Dell Inc. (NASDAQ: DELL) disappointed the investors with the results, and is facing growth challenges. Dell is down 14% this quarter, and 6% for the year. Yahoo! Inc. (NASDAQ: YHOO) has lost 14% for the quarter, and is down 10% for the year. If Yahoo finishes the year in red, this will be back to back years of investment losses. Is Yahoo a potential acquisition target in 2008? Southwest Airlines Co. (NYSE: LUV) can’t escape the rising oil prices either, and is down 13% for the quarter, and down 16% for the year. Southwest could also end up having back-to-back year of negative gains. Can travelers return to Southwest, and would they enjoy the new “business” service.

Bell-weather GE (NYSE: GE) has given up 12% this quarter, and is now down 2% for the year. Even the GE CEO is buying back shares. Can GE finish the year in positive? International Business Machines Corp. (NYSE: IBM) has also lost 11% this quarter, although has gained 8% for the year. IBM is poised to finish the year on a positive note with an announced stock buyback program. Other notable innovators with losses in the 4^th quarter include: 3M Company (NYSE: MMM) with 8% loss for the quarter and up a solid 11% for the year, Amazon.com, Inc. (NASDAQ: AMZN) down 9% for the quarter although up a huge 116% for the year, and America Movil (NYSE: AMX) down 8% for the quarter, although up a respectable 30% for the year. Tough quarter indeed for these innovators. Intel Corporation (NASDAQ: INTC) is only down 1% this quarter, and is up a rosy 28% for the year. The good news is that fourteen of the twenty innovators are still in positive ground and with a good year-end holiday rally, they could be all going home happy along with their investors.

Yearly Leaders and Laggards

Who sits on the top of The Innovation Index? There is a change in the top position. Research In Motion Limited - (NASDAQ: RIMM) is the leader of the pack at 135% gains for the year. Apple Inc. (NASDAQ: AAPL) is next up with 117% appreciation for the year. Amazon.com, Inc. (NASDAQ: AMZN) is holding steady with 116% gains for the year. There are seven other innovators with double-digit gains for the year.

Five innovators are in the negative territory. Starbucks Corporation (NASDAQ: SBUX) is the significant decliner, down 43% for the year. Southwest Airlines Co. (NYSE: LUV) has lost 16% for the year. Finally, Yahoo! Inc. (NASDAQ: YHOO) is down 10% for the year.

Year End Predictions

Where will The Innovation Index end up when all is said and done? Is there a rally in store for the broader market that will only boost The Innovation Index? We project The Innovation Index to inch up to around 60% for the year, gaining over 4% during the remainder of the year. The consumers will finish their Christmas shopping with a bang this week, and give some of the retailers a much-needed push.

Invest in the Innovation Index Fund

I just announced the launch of a new Innovation Index Fund last week that invests in the Innovation Index. We have opened the new private placement fund for serious investors seeking to maximize their investment returns and wanting to invest at least $25K. If you want to learn more about the Innovation Index Fund, check this announcement first, then browse to Innovation Index Group website at: http://www.innovationindexgroup.com Finally, fill out your contact information at the bottom of this form: http://www.innovationindexgroup.com/invest.html

The Innovation Index Reports:

Invest in The Innovation Index - Invest in the brand new Innovation Index Fund
Introducing The Innovation Index Fund - Invest into The Innovation Index
Top 50 Innovative Companies in the world - 2007 Report on Top 50 Companies
Annual Report - Chapter One - Total Innovation Activity - 2006 Annual Report One
Annual Report - Chapter Two - The Top Innovator - 2006 Annual Report Two
Annual Report - Chapter Three - The Innovation Insights - 2006 Annual Report Insights
Innovation and Stock Performance Correlation - The Innovation Index and Stock Performance
The Innovation Index gallops to 56% - Quarterly Report - Q3, 2007
The Innovation Index gains 3% during the first quarter - Quarterly Report - Q1, 2007

About The Innovation Index

The Innovation Index introduced in December 2006 is a weighted stock price index of the top 20 Innovators in North America.

The Innovation Index has returned 119% over the last five years. This assumes an investment in each stock of The Innovation Index (buying each stock). An average of $100 invested in The Innovation Index on December 31, 2001 returned $219 as of December 29, 2006. By comparison, $100 invested in each of S & P 500, NASDAQ and Dow Jones Index returned $124. The Innovation Index beats the S & P 500, NASDAQ and Dow Jones Index by 77% over the last five years.

The Normalized Innovation Index has returned an impressive 174% over the last five years. This assumes equal investment in each stock of The Innovation Index as of December 31, 2001.

Alphabetical list of the top 20 Innovators of The Innovation Index and their stock ticker symbols:

3M Company - (NYSE: MMM)
Amazon.com, Inc. - (NASDAQ: AMZN)
America Movil - (NYSE: AMX)
Apple Inc. - (NASDAQ: AAPL)
Cisco Systems, Inc. - (NASDAQ: CSCO)
Dell Inc. - (NASDAQ: DELL)
eBay Inc. - (NASDAQ: EBAY)
General Electric Co. - (NYSE: GE)
Google Inc. - (NASDAQ: GOOG)
Hewlett-Packard Co. - (NYSE: HPQ)
Intel Corporation - (NYSE: INTC)
International Business Machines Corp. - (NYSE: IBM)
Microsoft Corporation - (NASDAQ: MSFT)
Research In Motion Limited - (NASDAQ: RIMM)
Southwest Airlines Co. - (NYSE: LUV)
Starbucks Corporation - (NASDAQ: SBUX)
Target Corp. - (NYSE: TGT)
The Proctor & Gamble Company - (NYSE: PG)
Wal-Mart Stores, Inc. - (NYSE: WMT)
Yahoo! Inc. - (NASDAQ: YHOO)

The Innovation Index will analyze the positions and standings of the top 20 Innovators at the end of each year. For 2007, there will be no further changes in The Innovation Index.

Disclaimer: I invest in the stocks comprising The Innovation Index.