Eyet Blogs: ETF

Showing posts with label ETF. Show all posts

Thursday, October 16, 2008

Top Innovators Weathering the Financial Storm

HEWLETT-PACKARD

only FOR WOMEN: Fashion designer Vivienne Tam flanked by President (PSG), Hewlett-Packard India, Ravi Swaminathan (left), and Senior Vice-President Global Marketing, Hewlett Packard, Satjiv S. Chahil

Hewlett-Packard unveiled four new laptops, including a special edition stylish notebook PC designed by U.S.-based renowned fashion designer Vivienne Tam. HP has about 33 percent market share in India's laptop segment.

Addressing a press conference here, HP's Senior Vice-President (Global Marketing) of Personal Systems Group (PSG) Satjiv S. Chahil said: "We continuously work to ensure that our HP Pavilion line appeals to new markets and segments. Vivienne's fresh and authentic design speaks to an intrinsic part of a digital lifestyle-personal expression." According to HP India's President (PSG) Ravi Swaminathan, the company plans to strengthen its market leadership position with an aggressive 'go-to-market' strategy by increasing its retail footprint across 650 cities and expanding retail partner network to over 10,000 by this year-end.

HP Vice President in an interview today on CNBC indicated that HP PC business remains robust, and touted Gartner report that shows growth of at least 15%.

HP shares are down 23.5% year to date. Innovation Index Group has a BUY recommendation on HP with a 12 month price target of $50 to $60.

PROCTOR & GAMBLE

Mr. A.G. Lafley, CEO of P&G, said: "The reason P&G has grown so consistently for so long is that we're a company that sticks to the fundamentals. We build brands that improve consumers' lives. We deliver superior value day in and day out. We manage cash and costs with unrelenting discipline. And we invest in innovation as the primary driver of profitable organic sales growth.

"While the economic environment remains volatile and uncertain, I am confident that P&G can and will continue to prosper over the long term. We are committed to ensuring P&G will continue to be a company you can count on."

P&G's net sales for the fiscal year ended June 30, 2008 increased nine percent to $83.5 billion, with organic sales up five percent - in the middle of the Company's four to six percent target range. Diluted earnings per share were $3.64, up 20 percent - or double the Company's ten percent target. P&G's free cash flow was $13.0 billion for the fiscal year, or 106 percent of net earnings - well above the Company's 90 percent goal.

P&G sales have nearly doubled for each of the past three decades - from $10 billion in 1980 to more than $80 billion today with earnings growth increasing from $640 million to $12 billion over the same period. Over the past five years, P&G has delivered 11 percent compound annual total return to shareholders, nine percent over the past ten years, and 16 percent over the past 20 years. The Company's dividends have also increased every year - more than nine percent a year, on average - over the past fifty-two years, and have been paid without interruption since the Company was incorporated 118 years ago. P&G recently announced a 40 cents dividend.

P&G shares are down 15.8% year to date. Innovation Index Group has a BUY recommendation on P&G with a 12 month price target of $75 to $85

APPLE

JP Morgan is upgrading Apple to Overweight from Neutral. Apple's model is far more diverse than previous vintages, and they think the staying power has been underappreciated. With its market share momentum likely intact, Apple in firm's view offers strong relative downside protection to the looming earnings reset that they expect to impact IT Hardware companies in coming weeks and again early next year.

- Diverse model provides staying power. There has been considerable investor concern lately over the Apple model losing steam, particularly if the consumer vertical rolls over. JPM estimates that the company's total model exposure is about 70-75% consumer, but they think that Apple's brand and market share momentum offer meaningful buffers to potential macro-driven pressures on the consumer.

- Retail expansion could sustain share gains and international momentum. JPM thinks a major force behind Apple's growth story will be its diversifying revenue streams. They expect Apple's penetration of the international markets to be measured in years and supported by the increasing build-out of the retail stores overseas.

- iPhone could lead to the enterprise or other content-rich devices. Firm thinks the iPhone could be a stepping stone to penetrating the enterprise. Also, they could envision the iPhone pushing Apple deeper into the set-top box market as the convergence of voice, web, data, and content continues.

- Expect numbers to come down across the sector, but Apple likely has a backstop beyond the first round. For Apple, they are revising their below-consensus revenue and EPS estimates. Looking to fiscal 2009, revenue and EPS estimates are $36.98 billion and $5.27, versus the Street consensus of $40.26 billion and $6.02.

- Apple trades at 18.8x JPM's calendar 2009 EPS estimate, versus the peer group average of 11.1x. With macro pressures showing no signs of dissipating, they believe it is time to play defense, and they think Apple can avoid having a major problem with the "E" in the price-to-earnings multiple moving through the coming year. Firm expects the company's model to limit a series of major earnings cuts from unfolding in coming quarters, and they think this should support a valuation gap in Apple's favor.

Apple announced new aluminum shell, more powerful laptops on October 14, and reduced the price on updated laptops to under $1,000. Apple is poised to see a robust growth in its sale of notebooks during the holiday season owing to competitive pricing and better features.

Apple shares are down 48.6% year to date. Innovation Index Group has a BUY rating on Apple, and is now updating the 12 month price target in the range of $160 to $190.

IBM

JPMorgan upgrades IBM as a stock that is a 'sturdy ship' in rough economic waters

A JPMorgan analyst upgraded International Business Machines Corp. saying the company's diverse and steady revenue streams make the stock a "sturdy ship" in the worsening economic environment, the firm said Wednesday.

Mark Moskowitz raised his rating to "Overweight" from "Neutral" because IBM has diverse revenue sources that offer relative stability. He also said at least half of the company's revenue comes from annual payments on long-term services and software contracts.

IBM represents a "flight to quality" for investors" due to its broad services, hardware and software reach," the analyst wrote. IBM 3Q profits jumped 20% from last year in large part due to services contracts.

IBM shares are down 15.3% year to date. Innovation Index Group has a BUY recommendation on IBM with a 12 month price target of $125 to $150.

These four innovators present attractive buying opportunity at the current price points.

Innovation Index Reports

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 based on performance model, 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 - (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

Monday, October 13, 2008

U.S. Stock Markets Make Historical Jump

Dow Jones gains 936.42 points in one day, the biggest single day jump, a rise of 11.08%. The S&P 500 climbs 104.10 points, or 11.6%, to 1,003.32, the S&P's largest daily point jump. The Nasdaq Composite amasses 194.74 points, or 11.8%, to 1,844.25, the third-greatest percentage rise.

The Innovation Index Fund gains 30% in one day, the largest percentage increase in one day.

What is in store for tomorrow? Can the markets continue this rally?

Our outlook is that the U.S. stock markets will rebound further post November elections and post November options expiration. Whether they would finish the year in the positive remains to be seen.

Innovation Index Reports

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

Sunday, July 20, 2008

Introducing The Innovation Index Fund

Dear Creativity And Innovation Driving Business Blog Subscribers:

Are you interested in making your money work smarter and grow faster, and achieve potential average returns over 25% a year?*

We have created a brand new private placement investment fund called:

The Innovation Index Fund

What is The Innovation Index Fund?

The Innovation Index Fund is a private investment fund where investors such as you can invest their monies in The Innovation Index. The Innovation Index Fund, LLC is managed by Innovation Index Group, Inc.

What is The Innovation Index?

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

What has been the performance of The Innovation Index?

The Innovation Index would have returned 174% over the last five years as per the historical performance 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 $274 as of December 29, 2006. By comparison, $100 invested in each of S & P 500, NASDAQ and Dow Jones Index only returned $124 as of December 29, 2006.

What is the performance of The Innovation Index in 2007?

The Innovation Index returned 66% in 2007 as per our performance model. 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.

Which companies comprise The Innovation Index?

Here are the the top 20 Innovators that comprise The Innovation Index for 2007 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 Group will analyze the positions and standings of the top 20 Innovators at the end of each year, and make changes for 2008.

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)

How do I find out more information on the Innovation Index?

We have created a brand new website that provides all the relevant information about the Innovation Index, the performance, our selection process, founding principles, history and more.

Please browse to:
http://www.innovationindexgroup.com/

How do I learn more and invest in The Innovation Index Fund?

You need to first contact us to obtain more information about the Innovation Index. We will then contact you with the relevant details about the Innovation Index Fund and the prospectus. We will keep your contact information completely confidential, and only use it to contact you about The Innovation Index Fund and the associated information.

You can also email us at: info@innovationindexgroup.com

Or if you prefer, you can fill out the contact form at the bottom of the page here:
http://www.innovationindexgroup.com/invest.html

Are my investments completely safe in The Innovation Index Fund?

No. The Innovation Index invests in the stocks of the top 20 innovators in North America, and stocks can lose value. Historically, The Innovation Index would have returned average annual performance gains of over 34% a year for the past five years. However, the investments are not FDIC insured, and have no bank guarantee. Investments may lose value including the principal. Past performance does not guarantee future results.

Next steps:

If you are a serious accredited investor who wants to put your hard earned money to work smarter and grow faster and beat the stock market, email us at:

info@innovationindexgroup.com

Include your full name, phone number and address.

I look forward to your response.

Sincere regards,

Sanjay Dalal
President and Managing Director
Innovation Index Group, Inc.

*Past Performance Does Not Guarantee Future Results

Wednesday, June 4, 2008

Innovation Index gains 12.23% in April and May 2008, beats major U.S. indices

	Apr-08	May-08	Total*	YTD
Innovation Index Fund	6.30%	5.58%	12.23%	8%
S&P 500	4.75%	1.07%	5.87%	-6%
Dow Jones	4.54%	-1.42%	3.06%	-7%
Nasdaq	5.87%	4.55%	10.69%	-6%

*Compounded for April and May

Innovation Index Fund had a solid performance jump in April and May 2008. Innovation Index Fund delivered 12.23% compounded return in two months, and handily beat S&P 500 and Dow Jones indices. Overall, the Innovation Index Fund is up 8% in 2008 as of May 31, 2008, whereas the major U.S. indices have lost 6% or 7% in 2008.

Innovation Index Group remains bullish for the 4th quarter of 2008; however, our understanding of the current market conditions lead us to believe that there will be some road bumps along the way. Particularly, during the summer months, the market may tread sideways or even course correct in the interim.

Three factors are critical for a second half turnaround in U.S. economy and its positive impact on the stock markets:

1. Inflation - Gross inflation that includes gas, utilities and food needs to come under control. The consumer will feel the pinch of $4 or higher price per gallon of gas in the interim (yesterday, I filled up at the cost of $4.25 a gallon for gas) and higher cost of basic groceries such as bread, milk and fresh vegetables. Either the consumer will adapt to the higher price of gasoline, or react by reducing gas consumption and thereby decreasing travel. Reducing consumption and decreasing travel will negatively impact the economy. Adaptation to a higher fuel price will either result in replacement of current automobiles to higher mileage hybrids, decrease in discretionary spending elsewhere, utilization of public transport or carpools. This will take time, and neither of these alternatives appear to create a net positive impact on the economy. Finally, higher food prices would not deter the monthly consumption of groceries; however, the consumer will likely spend less money for other necessities or luxuries.

U.S. Federal Reserve Chairman Ben Bernanke said rising long-term inflation expectations were a "significant concern" for policy-makers but dismissed worry a wage-price inflation spiral was developing. "Some indicators of longer-term inflation expectations have risen in recent months, which is a significant concern for the Federal Reserve," Bernanke told graduating students at Harvard University. "We will need to monitor that situation closely."

He described overall inflation as "significantly higher than we would like," the second straight day in which he sounded a warning on inflation, which financial markets took as a firm signal that interest rates are likely on hold for some time.

2. Recession - U.S. employers shed 63,000 jobs in February 2008, the most in five years, 81,000 jobs in March and 20,000 jobs in April. How long will it take for the economy to turnaround and produce meaningful job growth? Would corporations go back to hiring mode in summer months or earlier? Which jobs will be in demand? So far, there are mixed signals on whether the economy is in recession or not, because the US economy actually grew in the first quarter by 0.6%.

Construction lost 61,000 jobs in April, and manufacturing shed 46,000 jobs. Retailers also trimmed payrolls by 27,000 in the face of a pullback in spending by consumers - CNN Money.

But some other sectors that had posted job losses in previous reports rebounded, such as business and professional services, which grew by 39,000 jobs after a loss of 44,000 the previous month. The financial sector, which has lost jobs each of the previous 8 months due to problems in the credit markets, ended that streak with a narrow 3,000 job gain. Unemployment rate actually improved to 5% in April 2008.

3. Housing and Financials - Some analysts call this period the "biggest slump in US housing".

Economist Glen Langan points out, "the unusual focus on subprime has caused the nation to overlook a broader trend regarding the housing sector -- namely, the psychology of the housing market."

"What we're not grasping yet, as a nation, is that even with programs to help people stay in their homes and avoid foreclosure, the public's stance toward the housing market has changed," Langan said. "The psychology of the housing market has changed. And this has little to do with at-risk mortgages. This a psychological shift among middle-income and upper-middle-income homeowners and taxpayers. It looks like they'll be sitting on the fence for a long period of time, and this will delay the housing recovery, hurting the economy in the process."

What's at the root of the psychological shift? Langan said factors that clearly indicate that tougher economic times are here and up ahead (higher oil prices, food prices, job lay-offs and little or no U.S. economic growth) combined with high home inventory levels -- about a 9.5- to 10-month supply at current sales rates -- telegraph to Americans that, unless you live in an oil boom town, median home prices are not going to recover any time soon, "not this year, and probably not in 2009."

According to this Bloomberg story, the number of Americans in danger of losing their homes to foreclosure rose to the highest in almost three decades during the first quarter as borrowers who fell behind on payments were unable to sell their homes.

New foreclosures rose to a seasonally adjusted 0.99 percent of all U.S. home loans, up from 0.83 percent in the fourth quarter, the Mortgage Bankers Association said in a report today. The total inventory of homes in foreclosure increased to 2.47 percent and the delinquency rate, loans with one or more payments overdue, grew to 6.35 percent. All were the highest since 1979, the Washington-based trade group said.

Falling home prices have stalled U.S. real estate sales, making it difficult for people who can't pay their mortgages to sell the properties. The increase in foreclosures was led by states with the biggest price declines over the past two years, said Jay Brinkmann, MBA's vice president of research and economics. California, Florida, Nevada and Arizona accounted for 89 percent of the gain in new foreclosures, he said.

Bottomline:

Inflation needs to be stalled, and then reversed. Recession may last another couple of quarters or more, or may show modest turnaround within the next year. Housing industry may take the longest to recover. The Fed and the government are busy trying to help in all these areas by increasing liquidity in the financial markets, lowering the interest rates, providing rebate checks to consumers and families, and also beginning the work towards strengthening the dollar. The sooner these three elements improve for the American consumer, the better the chances of an economic rebound in the fourth quarter of 2008, and a resulting growth in the stock market.

Innovation Index Group believes that the U.S. economy will recover in the 2nd half of 2008, and the Top Innovators of The Innovation Index will reward the patient, long-term investor. So far, most of the top innovators have delivered solid earnings during the first quarter of 2008 owing to the strengths and growth in their global business, new innovations spurring new business growth, maintenance of US earnings, and benefits from the currency fluctuations. It would be great to witness a spiraling growth of their US earnings in the 2nd half 2008.

Innovation Index Group has long-term BUY recommendations on the Top 20 Innovators of The Innovation Index.

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 would have generated a gross average annual return of 40% based on historical model.* The Innovation Index returned 66% in 2007, and the Innovation Index Fund Manager is up 10% in 2008.*

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 an investment management company organized under the California state regulation, and is registered with Department of Corporations and SEC Regulation D.

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

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

Tuesday, June 3, 2008

Innovation Index Fund closes at 116.40, Up 8% in 2008

	3-Jun-08	Change		YTD
The Innovation Index
Fund Manager	116.40	-1.07	-0.91%	8%
S&P 500	1,377.65	-8.02	-0.58%	-6%
Nasdaq	2,480.48	-11.05	-0.44%	-6%
Dow Jones	12,402.85	-100.97	-0.81%	-6%

Innovation Index Fund closed today at 116.40, up 8% year to date.

Innovation Index Group has BUY recommendations on the Top 20 Innovators of The Innovation Index.

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 would have generated a gross average annual return of 40% based on historical model.* The Innovation Index returned 66% in 2007, and the Innovation Index Fund Manager is up 10% in 2008.*

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 an investment management company organized under the California state regulation, and is registered with Department of Corporations and SEC Regulation D.

The Innovation Index Reports:

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

Tuesday, May 13, 2008

Innovation Index Fund Manager Up 10% in 2008

The Top 20 Innovators	Ticker	Dec 31, 2007	May 13, 2008	Quarterly	2008 %	2007 %
APPLE INC	AAPL	198.08	189.96	32%	-4%	133%
AMERICA MOVIL	AMX	61.39	56.90	-11%	-7%	36%
AMAZON INC	AMZN	92.64	74.56	5%	-20%	135%
BEST BUY INC	BBY	52.51	43.63	5%	-17%	6%
COSTCO WHSL CORP	COST	69.60	73.98	14%	6%	33%
CISCO SYS INC	CSCO	27.07	25.89	7%	-4%	-1%
EBAY INC	EBAY	33.19	31.41	5%	-5%	10%
GENERAL ELECTRIC CO	GE	36.74	32.33	-13%	-12%	0%
GOOGLE INC	GOOG	691.48	583.00	32%	-16%	50%
HEWLETT PACKARD CO	HPQ	50.48	44.27	-3%	-12%	23%
IBM	IBM	107.69	126.58	10%	18%	12%
INTEL CORP	INTC	26.50	23.76	12%	-10%	32%
MCDONALDS CORP	MCD	58.51	61.17	10%	5%	34%
3M CO	MMM	84.32	77.18	-2%	-8%	9%
MERCK & CO INC	MRK	57.61	39.17	3%	-32%	35%
MICROSOFT CORP	MSFT	35.46	29.78	5%	-16%	20%
NIKE INC	NKE	64.00	65.66	-3%	3%	30%
PROCTER & GAMBLE CO	PG	73.05	65.73	-6%	-10%	15%
RESEARCH IN MOTION LTD	RIMM	113.40	140.84	25%	24%	166%
AT&T INC	T	41.16	39.26	3%	-5%	19%

Innovation Index Fund Manager		108.27	118.56		10%	66%
S & P 500	^GSPC	1,468.36	1,403.04	6.07%	-4%	3.5%
NASDAQ	^IXIC	2,652.28	2,495.12	9.48%	-6%	9.8%
Dow Jones	^DJI	13,264.82	12,832.18	4.64%	-3%	6.4%
© Innovation Index Group, Inc. http://www.InnovationIndexGroup.com

The Innovation Index Fund Manager is up 10% in 2008. The Top 20 Innovators of The Innovation Index have rebounded well in the 2nd quarter of 2008 to cause The Innovation Index Fund Manager to have double-digit gain for the year. The Fund Manager increased positions in some of these innovators in March 2008, and it is this increase in net positions that created the double-digit performance jump. Apple, Google, RIM, Costco, IBM, Intel and McDonald's have each delivered 10% or higher return this quarter. Apple and Google lead all innovators with 32% appreciation in the 2nd quarter. Overall, five innovators are in the green for all of 2008 - Costco, IBM, McDonalds, Nike and RIM. The major U.S. indices are down anywhere from 3% to 6% in 2008.

Innovation Index Group believes that the U.S. economy will recover significantly in the 2nd half of 2008, and the Top Innovators of The Innovation Index will reward the patient, long-term investor.

Innovation Index Group has BUY recommendations on the Top 20 Innovators of The Innovation Index.

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 would have generated a gross average annual return of 40% based on historical model.* The Innovation Index returned 66% in 2007, and the Innovation Index Fund Manager is up 10% in 2008.*

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:

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

Monday, March 17, 2008

Innovation Index Group BUY Recommendations for AAPL AMX AMZN BBY COST CSCO EBAY GE GOOG HPQ IBM INTC MCD MMM MRK MSFT NKE PG RIMM T

Innovation Index Group, Inc. systematically identifies, tracks and invests in the 20 most innovative publicly traded companies in North America – collectively called The Innovation Index. Innovation Index Group thoroughly analyzes the Top Innovators in North America, and only invests in those that show the highest potential for growth and minimize the risk to the principal.

Innovation Index Group makes the following BUY recommendations for the Top 20 Innovators of The Innovation Index with Target Price for Q4, 2008:

The Top 20 Innovators	Ticker	Recommend	Closing Price	Target Price
APPLE INC	AAPL	BUY	$126.61	$235 - $250
AMERICA MOVIL	AMX	BUY	$58.84	$80 - $85
AMAZON INC	AMZN	BUY	$68.22	$95 - $100
BEST BUY INC	BBY	BUY	$40.01	$55 - $60
COSTCO WHOLESALE CORP	COST	BUY	$60.86	$75 - $80
CISCO SYSTEMS INC	CSCO	BUY	$24.32	$30 - $35
EBAY INC	EBAY	BUY	$26.25	$35 - $40
GENERAL ELECTRIC CO	GE	BUY	$33.82	$40 - $45
GOOGLE INC	GOOG	BUY	$437.92	$675 - $745
HEWLETT PACKARD CO	HPQ	BUY	$45.92	$58 - $63
IBM	IBM	BUY	$115.23	$120 - $125
INTEL CORP	INTC	BUY	$20.66	$27 - $32
MCDONALDS CORP	MCD	BUY	$54.78	$64 - $69
3M CO	MMM	BUY	$77.53	$94 - $99
MERCK & CO INC	MRK	BUY	$41.34	$58 - $63
MICROSOFT CORP	MSFT	BUY	$27.96	$38 - $43
NIKE INC	NKE	BUY	$59.96	$77 - $82
PROCTER & GAMBLE CO	PG	BUY	$66.74	$79 - $84
RESEARCH IN MOTION LTD	RIMM	BUY	$101.69	$135 - $145
AT&T INC	T	BUY	$35.03	$43 - $48
The Innovation Index			93.62
Closing Price - 03-14-08
Target Price - Q4, 2008

Innovation Index Group BUY recommendations and price targets for RIM and IBM have been achieved before Q4, 2008.

Innovation Index Group makes the following recommendation updates for RIM and IBM for Q4, 2008:

On Mar 14, 2008, the recommendations were:

IBM

BUY

$115.23

$120 - $125

RESEARCH IN MOTION LTD

RIMM

BUY

$101.69

$135 - $145

On May 12, 2008, the updated recommendations are:

IBM

HOLD

$125.24

$132 - $137

RESEARCH IN MOTION LTD

RIMM

BUY

$141.97

$155 - $175

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 would have generated a gross average annual return of 40% based on historical model.* The Innovation Index returned 66% in 2007, and the Innovation Index Fund is up 10% in 2008 (May 12, 2008 market close).*

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:

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

Friday, February 15, 2008

Google One Year Performance Beats Microsoft and Yahoo - The Innovation Index

Google 1 year Stock Performance compared to NASDAQ, Yahoo, Microsoft and News Corp

Google Inc. (NASDAQ: GOOG) is one of the Top 20 Innovators of The Innovation Index. Microsoft (NASDAQ: MSFT) is also part of The Innovation Index. Yahoo (NASDAQ: YHOO) belonged in The Innovation Index in 2007. Google one year stock performance beats NASDAQ, Microsoft, Yahoo and News Corp combined. Although all these innovators are in the negative in 2008 - except for Yahoo owing to the pending acquisition offer from Microsoft. How will 2008 shape out for these innovators? The Innovation Index predicts double-digit gains for each of these innovators' stock performance in 2008. This will be due to strong summer and Fall earnings seasons, and investors returning after the hiatus. This means Google could well exceed the high point of $747 set in 2007. The Innovation Index is long on Google and Microsoft.

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.

Thursday, February 14, 2008

3M and PG - Smart Long-Term Buys in Turbulent Markets

3M (NYSE:MMM) and P&G (Proctor & Gamble) (NYSE: PG) are two of the Top 20 Innovators of The Innovation Index.

Both 3M and P&G are resilient innovators who time and again find ways to grow and excel in turbulent times, and reward their investors. 3M is an innovation machine. P&G knows how to grow through innovations.

For instance, "the Board of Directors of 3M (NYSE:MMM) declared a dividend (this month) on the company's common stock of 50 cents per share for the first quarter 2008, a 4.2 percent increase over the quarterly dividend paid in 2007." This would mark the company's 366th consecutive quarterly dividend and the 50th consecutive year of 3M dividend increases. Also, 3M has returned $16.6 billion to shareholders through dividends and share repurchases, $4.6 billion of which was in 2007.

How is 3M stock performing over the last two years? It has gained 12%, and has been at times choppy. However, if one accounts for the dividends that 3M has rewarded, it has performed reasonably well.

3M Stock Performance

We believe 3M will rebound for the rest of 2008, and 3M stock will finish in the range of at least 5% to 10% appreciation. Main reasoning has to do with the latest earnings report where it reported 2007 sales of $24.5 billion, an all-time record for the company. Sales were up 7 percent from a year ago, and up 11 percent adjusted for recently divested businesses. Net income for 2007 was $4.1 billion, or $5.60 per share, versus $3.9 billion or $5.06 per share in 2006, up 6 percent and 11 percent, respectively. And the company emphasized its 2008 guidance: "3M reiterated its 2008 earnings expectations. The company expects 2008 earnings to be a minimum 10 percent increase over its 2007 earnings-per-share of $4.98, which excludes special items."

P&G stock has performed rather well gaining 28% over the last two years. We believe P&G will have another double-digit performance in 2008 owing to its strong growth and earnings momentum, and new innovations across various industries.

P&G Stock Performance

The Procter & Gamble Company (NYSE: PG) announced "net sales growth of nine percent to $21.6 billion for the latest quarter. Sales were up behind strong volume growth from continued success on key product initiatives and double-digit organic growth in developing regions. Organic volume increased six percent and organic sales were up five percent for the quarter. Diluted earnings per share increased 17 percent to $0.98 per share, above the top end of the company's $0.95 to $0.97 per share guidance range. Earnings grew as topline growth and continued Gillette synergy benefits more than offset higher commodity costs." P&G also announced new coffee business under the Folgers coffee brand to be called The Folgers Coffee Company. P&G continues to grow under the creative leadership of A.G. Lafley, Chairman of the Board and Chief Executive Officer. Lafley is a creative leader who knows how to drive new innovations.

3M and P&G - they are both smart, long-term buys in turbulent markets!

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 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.