The Vampires Eternal Guild

Social Similes: A Parody of Our World - Set 6 Volume 2

G20 protesters have some stiff competition on their hands after protesters outside Grauman's Chinese Theatre (Mann's Chinese Theatre) in Hollywood became extremely violent after the premiere of "Twilight: Eclipse". The protesters claim they belong to a group called "The Vampires Eternal Guild" (VEG) which was, until today, a secret organization consisting of all registered trademark vampires of the world.

The protests started peaceful and were intended to remain that way, until another horde of vampire-likes intruded. The group called themselves the "Twilight Extremists" with hundreds of teenaged girls dressed in black and pale skin, an oasis for emo boys.

According to The Twilight Extremists website, they had malevolent intentions from the start and were not planning to leave until they fulfilled a re-enactment of all fight scenes from the Twilight Saga (two movies prior) to date against all those who opposed the movie. Now that school had ended, they were able to stay up late and complete the tasks.

Many eyewitnesses mentioned seeing Morbius, the Living Vampire, a character from Marvel Comics, and retired cereal mascot Count Chocula badly injured after leading the charge against the Extremists. Both groups lost many to injury but the VEG were revitalized by sucking the blood of the girls.

"We planned on peaceful demonstrations pointing out how vampires are unfairly portrayed in this movie series," said The Count from Sesame Street. "We believe this is one... two... three too many Twilight movies, ha ha ha." The interview was shortened due to loud thunder.

Founder and CEO of VEG, Dracula, created the organization in 1905 to ensure that continued vampire stories, and later on, movies and TV series, obeyed the Vampire Constitution. This document requires vampires to suck blood, hate garlic, and be defeated by silver bullets (bullets touched by a priest is no longer a criterion), along hundreds of other folklore symbols that once characterized vampires. However, Dracula claims that the Twilight series including the books depict vampires as attractive characters.

Dracula appeared in a press conference prior to sunrise after hearing the news. "The VEG did not approve or endorse the Twilight books, and especially not the movies. It has broken the Vampire Constitution. The only thing garlic would do to Edward Cullen is destroy his perfect breath. He does not evoke fear in the audience at all and I will never give this abomination my blessing, not to mention the acting is terrible."

Critics have claimed Twilight: Eclipse is the best movie of the series and was given positive reviews. The ongoing debate will continue for a few more decades before mortal human beings forget about this movie.

Three Summer Movies in One Blog

Hollywood knows that summer is the hottest time to release movies, especially before a holiday like Memorial Day or Independence Day. And this summer has been no different than years past. I spent the last two weeks watching three summer box-office hits and thought I would blog about it, and give you my own two cents.

The Karate Kid (2010)
Prior to the release of the movie, I thought this was going to be another remake of a classic film butchered by today's lack of creativity. Jackie Chan's recent string of bad movies did little to justify the movie's hype as a "good" movie. Opening weekend is the litmus test for doubters, but critics and fans came out of the movie with positive reviews, and I would like to say I was one of them.

"The Karate Kid" is a must-watch family movie that teaches children about respect, discipline, and perseverance. It was a fun-filled movie with good fight scenes viewable for all ages. The movie pulled on my emotions at every moment from scenes of pure joy to utter heartbreak.


Jayden Smith, the son of famous actor Will Smith, stars as the lead role and does a very good job for a boy his age. He and his mother move to China after his mother is transferred jobs. He starts off learning to adapt the cultures and ways of China and the neighbourhood bullies. I don't want to ruin the movie, but it ends up with a final show down in a kung-fu tournament.

I really liked this movie and think it is appropriate for all ages. I give "The Karate Kid" a 4.5/5.

Toy Story 3
If you haven't already heard, this movie rocks. Personally, I thought this movie was better than the first and the second combined, but I didn't enjoy the second one all that much. The characters from the Roundup Gang are back along with the memorable Slinky Dog, Rex (T-Rex), Hamm (the pig), and Mr. and Mrs. Potato Head.

My friends and I all left the movie with feelings of happiness and even tears at the end. Yes, men are allowed to cry at the movies now. The movie touches on the idea of sentimental value, fear of the unknown, and trying to re-live the past. I do not know how anybody could give this movie a bad review, but there are people out there who did.


Another fun movie for the entire family, but a little pricey because it is in 3D. If your city offers it and you are on a budget, consider watching it in regular 2D. The movie offers very little to support the 3D technology, like many other movies.

I also enjoyed the animated cartoon that typically comes along with Pixar movies and was very creative. I'm calling it now, but this movie is the best movie of 2010. I give "Toy Story 3" a 5/5!

Grown Ups
The final movie, which I just saw Sunday evening, was "Grown Ups." For a man in his mid-20's, the cast instantly appealed to me. Adam Sandler, Chris Rock, David Spade, and Kevin James are hysterical in anything they do. Many people noted that this movie was like a giant SNL re-union with many former SNL cast members making cameos, including Colin Quinn, Maya Rudolph, Tim Meadows, and even Norm MacDonald.


If you have taken the time to read the reviews, you will see a mixed audience. About half loved it and the other half hated it. I will tell you now that this movie is not a critic's movie. It contains a plot that is easy to follow but lacks depth. It is full of humour that may be labelled as crude. Personally, I thought this movie was hilarious. I went with three friends who were aware of the mixed reviews and all three of us came out very happy.

Our enjoyment of the movie might have to do with the fact that we were all males in our 20's and we weren't expecting to have to think a lot. After watching "Grown Ups," I must confess I now want to take a vacation to the lake in the mountains. I've never actually done something like that in my life, and I would love to do it before "I regret it" (inside joke if you see this movie).

As a movie, this is probably not for the whole family, since many parents are sensitive to jokes about sex, racial profiling, and obesity, but the lady beside me who was with her husband and 8-year old daughter was laughing her head off, especially at the old-time references.

I'm not sure who gave this movie bad reviews and there reasons, but for an Adam Sandler movie, I liked it. I think "Grown Ups" deserves more than this, but I give it a 3.5/5.

If you have any additional comments to add or opinions, do not hesitate to make a post. I read and reply to all comments below.

Retiring in Canada - Part Two: How Success in an RSP is a Double-Edged Sword

Once during my financial management class in college, we were working on a project that involved building a mock financial plan for a family. My teacher, a former financial planner, told the class a short story about a client who had a very rare problem with his RSP. He had too much money.

You might be asking, how can having too much money create a problem? The entire class raised their eyebrows at this too. When you're a student, having barely enough money is a common problem, but having too much is unfathomable. The problem for the doctor was that his minimum RIF withdrawals well exceeded his needs. Subsequently, these large withdrawals also trigger that second certainty in life - taxes.

My teacher never gave us real figures, obviously for privacy reasons, but his withdrawals requirements were so large, he was paying more in income tax than he was using for all his expenses. It would be like withdrawing $100,000 a year from the RIF, paying $45,000 in taxes, but only being able to spend $40,000! Withdrawals from the RIF accounts are treated as income, even if they were earned as capital gains or dividends.

The problem that the doctor encountered is symbolic of most Canadians and their level of financial education. You see, during our working life, we are bombarded with the benefits of an RRSP: a tax refund and a tax shelter are the two main talking points. But who here actually knows what happens when it is time to take it out? Or better yet, do you even know what a RIF is?

At the age of 55, every citizen has the option to change their RRSP (contribution account) into a retirement income fund account (RIF). The RIFs work in reverse of an RRSP, requiring minimum withdrawals every year. You can make these monthly, quarterly, or annually. At the age of 55, the minimum withdrawal amount is 2.86%. At 65, it is 4.00%, and at age 75, it is 7.85% (see full table courtesy CIBC Wood Gundy website).

As we get older, the minimum increases to allow for an expected drop in capital from withdrawals and to allow the account to collapse on its own. The main problem the doctor had was that his plan lacked clear direction and was ill-informed about the withdrawal process. This is why it is important for Canadians to sit down with a well-trusted advisor who can create a strategy that factors in both the contributions you can make today and how much you will need at retirement. It is even more important to review these goals and make sure you are still aligned with them. Consider new events, new retirement plans, new income needs and discuss this with your advisor.

The truth is, probably only a dozen of my friends will read up to this point and will take this tip into consideration, but how many of you will actually talk to your planner (or me if you really want) next week about this? In Part One, I tried to emphasize on early savings habits to fulfill your retirement needs. This week, I'm hoping to make sure you get a real plan in place before you realize that it may be too late.

For the doctor, he is probably unhappy that he has to pay more taxes than he can even spend on himself. He could have probably saved a little less while he was younger and spent it on his family, on trips, luxuries, or donations. But all of this could have been avoided if he had a good plan with a good advisor guiding him every step of the way.

Withdrawing the Troops

Social Similes: A Parody of Our World - Set 6 Volume 1

When the Americans entered the countries of Afghanistan and Iraq shortly after, many questioned the intentions of the war and the existence of a real definitive plan. The toppling of a Saddam Hussein statue was to be the symbol of the war in Iraq, but has been lost in the lack of direction in the war. And since, strong debate has existed back in Canada and the United States to withdraw troops. But now, after more than nine years in Afghanistan, a plan to start withdrawing troops from the war-torn nation of Afghanistan have leaked into the mainstream media.

The recent remarks by McChrystal is a secret military plan, coined Operations Desert (to abandon, not arid region) Storm, to get troops back home. The confusing name was designed to disguise itself because written language often can not distinguish between homonyms, but with a plural operation for the benefit of insiders. According to confidential documents, one by one, men and women serving overseas will be making more critical remarks against the President to media outlets like National Geographic, TIME, and BBC, starting with the man on top as a pilot. The remarks will be made approximately four days from one another, far enough to avoid suspicion, but close enough to create the illusion of military anger.

How secret is this plan though? The confidential memo never made it back to Washington and was never signed by the Commander-in-Chief, Obama. The highest on the pyramid to sign the document was McChrystal, a man now back home with his family and friends.

There are still nearly 120,000 Coalition troops in Afghanistan, with 78,430 of them from the United States and 2,830 from Canada. Sadly, most of these soldiers will not be around by the time their turn rolls around, since the plan will take over 850 years to complete, but it'll be a lot faster than waiting for peace in the Middle East.

Barack No-Bama?

Barack Obama's presidential campaign carried a tune of hope, change, and an attitude of "Yes We Can." The American people were riding an emotional high deeply-rooted in the idea that a Black man will become the next Commander-in-Chief. His harangues mentioned changes in financial regulation, abolishing Guatanemo Bay, and creation of a new Health Care System, along with a number of other campaign promises, but to this day, America has little changed since the Bush reign.

His approval is a meager 44 per cent and his recent actions, or lack of, against BP has not done much to bolster his popularity. An emerging perception towards the President is that he is a talker, not a doer. His lack of leadership and emotional concern for the American people in the Gulf is being criticized and dissected to death. Maybe he's racist to Black people too?

A man of great speeches but little action is like a finely gift-wrapped pair of tube socks. It's a novelty act that the American people are getting tired of. The progress of the health care bill and the economy have stalled and the average citizen is still struggling to pay their mortgage and make ends meet. Didn't Obama plan to induce job creation by increasing infrastructure spending? To this day, unemployment lingers near 10 per cent, with many recent jobs created through the census. And what ever happened to that bill to allow foreigners to open up shop in the USA and give them tax credits? Maybe the media's coverage has dropped because of the BP spill.

More American soldiers are now overseas in Iraq or Afghanistan with an end no where to be seen, the deficit continues to grow, financial markets continue to run wild, and foreign oil dependency basically unchanges. America is now in a stagnant state, with the status quo becoming the ultimate reality. It's no surprise that illegal immigration has not been a big problem, because nobody wants to enter the United States.

The Daily Show even pointed out some big promises that have been broken or hidden to keep the truth from being revealed. Gitmo prisoners were never given that fair trial and no action has been taken on "don't ask, don't tell." The show took a dozen clips of Obama's reaction to the subject, each with a political answer, "the situation is long and complex one."

But to be fair, perception is reality, so what are the real facts behind Obama? I stumbled upon "PolitiFact.com" and their truth-o-meter. The site compiled over 500 promises made during his campaign and tracks the progress. The website believes that 116 promises have been kept, 19 were broken, and the rest are either in the works, stalled, or not yet rated.

An impressive record, if you count only the quantity and not the quality. Here is a list of the 19 broken promises courtesy of PolitiFact.com:

No. 24: End income tax for seniors making less than $50,000

No. 30: End no-bid contracts above $25,000

No. 71: Allow imported prescription drugs

No. 86: Direct the Secretary of Health and Human Services to conduct a comprehensive study of federal cancer initiatives

No. 221: Double the Peace Corps

No. 234: Allow five days of public comment before signing bills

No. 240: Tougher rules against revolving door for lobbyists and former officials

No. 249: Double funding for afterschool programs

No. 292: Urge states to treat same-sex couples with full equality in their family and adoption laws

No. 313: Allow bankruptcy judges to modify terms of a home mortgage

No. 339: Support human mission to moon by 2020

No. 379: Pay for the national service plan without increasing the deficit

No. 428: Give annual "State of the World" address

No. 431: Reduce earmarks to 1994 levels

No. 508: Allow penalty-free hardship withdrawals from retirement accounts in 2008 and 2009

No. 511: Recognize the Armenian genocide

No. 515: No family making less than $250,000 will see "any form of tax increase."

No. 517: Negotiate health care reform in public sessions televised on C-SPAN

No. 518: Create a public option health plan for a new National Health Insurance Exchange.

When it comes to politics, there are only a few things most of us relate to: Lower taxes, better education, access to health care, and economic stimulus. Other factors like national debt and security are also shared, but are not always a top priority.

Some of these broken promises seem quite important to the average citizen, especially the two broken tax promises and educational funding. Living in Canada, in the shadows of our big brother, the USA, I do not get to see the real impact and changes, if any, that have occurred for the average citizen. So my opinions on the matter are persuaded by media reports and editorials. So far, I have not been impressed by the first Black US President, but what are your thoughts? Am I wrong on the subject?

Seasonality Stocks for the Summer

The dog days of summer are just around the corner, which means it's time for short-shorts, camping, road trips, and ice cream! And if you're like 35 per cent of Americans [1], you'll be gone for a few weeks on a memorable summer vacation. With an economy that is still struggling to find a foothold and news continuing to shake the markets, what can you do this summer to protect your account or even add to your equity while you're gone?

CNBC today discussed seasonal stocks that tend to move higher during the months of summer. Between Memorial Day and Labour Day, airline stocks moved up 8 per cent! Not only that, but from Labour Day to Year-End, it added another 8 per cent. Other notable industries were the travel companies and casino and hotel companies.

Airline companies Delta Airlines [DAL:NYSE], Southwest Airlines [LUV:NYSE], United Airlines [UAL:NYSE], Continental [CAL:NYSE], and AMR Corp. [AMR:NYSE] are the five biggest by market capitalization, all in excess of $2 billion. The move in the industry seems obvious - summer means more passengers. But a sophisticated investor would know that these expectations are already priced into the stocks, and companies don't move on quarterly expectations, but yearly.

The main culprit is in fact falling energy prices in the summer. Many investors often seek safety in energy over the summer with the belief that increased demand from driving and vacations pushes oil up, however this is incorrect. Seasonality for energy is between April to June. This is the time when corporations buy in preparation for summer. Like baking a cake, you buy the flour before you bake, not when you make it.

In the last decade, oil prices have fallen eight times in the summer. Oil prices usually peak in June and collapse until the fall; airline stocks tend to move in the opposite direction of oil.

If you already own airline stocks, you could consider adding positions into casino and hotel stocks. Las Vegas and Macau have seen substantial growth and hotel bookings in the past year, signs people are spending money again. If you want to get involved in these stocks, consider Las Vegas Sands [LVS:NYSE], Wynn Resorts [WYNN:NASD], or MGM Mirage [MGM:NYSE], the three biggest American casino/hotel stocks by market cap. These guys don't pay dividends, so consider writing options for additional income because premiums are extremely good.

Tip for the summer: Sell your energy stocks and buy airline stocks or casino and hotel stocks. Don't forget to enjoy it!

Disclaimer: I currently own Las Vegas Sands and MGM Mirage.

Retiring in Canada - Part One: The Numbers Game

Retirement is probably 20, 30, or 40 years away for many of my readers, but it's never too soon to plan it. More than 3/4 of Canadians plan retirement too late, which leads to insufficient income during the Golden Years. The moment you step out of college, you should have a plan for retirement, even something as simple as a savings account to get you into the habit of saving.

There are two general rules of thumb that apply to retiring which will be discussed in part one of this series: save 15 per cent of your income and the rule of 25.

Save 15 per cent
This is a rule that is quite easy to explain. Save 15 per cent of your net income. According to Stats Canada, the average individual Canadian net income was just under $30,000. This would equate to roughly $4,500 saved each year. There are many options where this money can go. For many, they will park this money into an RSP or TFSA and purchase bonds, equities, and mutual funds to defer taxes to retirement. Just make sure you don't save too much or earn too much in the RSP (I will discuss in part 2 as to why) because it could backfire later on. For those who earn more than six-figures, the remainder will have to go into a non-registered account.

The Rule of 25
Unlike the previous rule, "The Rule of 25" estimates the total income required to sustain your life expenses. For example, if you subscribe to a magazine which charges you $40 a year, you would need $1,000 invested to pay off the cost, without putting a dent into the original capital. This rule assumes a 4 per cent rate of return, but if you are conservative and assume 3 per cent, use the rule of 33. Those who can earn 5 per cent should use a multiplier of 20.

Apply this logic to your entire expenses. At retirement, you should have no mortgage or car loans, so if you can, calculate the cost of everything you do. Assuming the average income, most expenses will run near $20,000. Therefore you will need $500,000 at retirement to pay for these things, and this does not factor inflation. That works out to $5,261.74 per year you need to save at 4 per cent. (Here's a great article which expands on "The Rule of 25" [link]).


Start Today
Inflation-adjusted calculations normally run up well over $1 million at age 65, a seemingly impossible task for a 25-year old who may already struggle just to save for the next iPhone or video game, but don't be discouraged. Income generally increases over time, so you can play catch up if you must, but don't use that as an excuse to delay saving.

For every year you don't start, you must save an additional $300 per year just to make it back (assuming 4 per cent growth). It may not sound like a lot, but consider this, you were unable to save the year before, what makes you so sure you can save an additional $300 on top of the scary $5,000 you already need?

Retirement is about enjoying the world you built and love, like your family. You should not be burdened at a time when income does not exist. Employment pensions may not be a reliable source of income, especially since many are defined-contribution plans. The amount you earn at retirement relies solely on the performance of your employer's fund. And CPP was created only to cover up to one-quarter of your average income.

I do not want anybody to have a bad retirement. We've all worked too hard for four decades to end up in a bad situation. By creating a good retirement plan, it also allows you to determine how much you have left over to enjoy today as well. There's no harm in spending a little here and there on luxuries if we can afford it too. Life and retirement was meant for fun, so enjoy it.

Next week, I will be discussing an efficient way to run an RSP. There are many common errors that many self-guided individuals often commit.

200-Day Moving Averages Passed

On May 20th, we saw the American markets drop below the 200-Day Moving Average (see previous post) followed by continued drops and extreme volatility. And now almost one month later, the American markets have surged well above this technical level. Not only that, the markets are back close to positive territory for the year. For many, this is a good sign that the bear market has ended, something I had recognized, but I don't think this is the restart of the bull market.

The market tends to be extremely volatile during options expiry week (the third Friday of every month), where daily swings of over 100-points is typical. Traders may try to move stocks into more favourable positions against their options for maximized profit or minimized losses. Therefore, we could see markets continue huge swings before this week ends.

Today's huge rally was highly unexpected with very little significant news impacting stocks. Commodities, especially energy, have surged in the last week as signs of a recovering economy took focus away from the European crisis. The continued upward move on the day could be a result of a short squeeze, a situation where shorts are forced to close out positions for a variety of reasons.

Just eight trading days ago, the Dow Jones closed below 10,000 on bad jobs news. Today, it closed above 10,400 for the first time in almost a month. Although I think June will finish higher than the end of May, I do not see this rally sustained until the fall. Volume was average, suggesting few traders believe in this rally. Strong volume is required for technicians to feel confident in a technical break out.

I'm going out on a limb here, but I can see the Dow finishing below 10,200 by Friday, barring major news.

Addicted to Mario Galaxy 2

I officially love Mario Galaxy 2 just as much as Mario Galaxy. After days of reading online reviews from IGN, Wired.com, and every where else, I decided to pick up the game a week before my pay cheque. I've already spent six hours of my Thursday evening playing the game, even ignoring a work out, which I'll probably regret later.

I don't want to spoil the game for anybody, but the introduction is brilliant. The opening sequence isn't just the typical Nintendo or Mario style you would see, but an interactive story book. The game starts off the same way the first game went. You soon realize this isn't a sequel, but more like a parallel universe. Regardless, the story is the same old, but never tiring, Mario has to save Peach kind of thing.

There are some new gimmicks in this game that I've uncovered in the first six hours and three worlds: Luigi and Yoshi are present and you actually get to use both characters. I love levels with Yoshi. It brings an entirely new element to the 3D franchise. It was like playing Mario Bros. 3 and being able to fly for the first time.

They also brought back the uniforms of the first game, like the bee and spring suit along with a few new suits. I also enjoy that the game brings back the old school Mario worlds, where you move on a playing board type world. I can sense some nostalgia that hasn't been felt for quite some time.

I don't feel the need to talk about it anymore, it's just a great game and I'll be playing it a lot, so this blog will be on a short hiatus with the odd post. If you haven't played the first game, I urge you do. You can borrow mine if you want, but you won't really need it to play this game.

I'm glad the next Zelda game has been delayed again or else I'd be in a dilly of a pickle.

Do You Need Life Insurance?

Financial planning encompasses a broad range of ideas beyond what I normally blog about - investing. Other tools in financial planning include insurance and wills, two topics I plan to quickly discuss about today. Please note beforehand that my insurance training is limited to college and licensing education. I do not sell insurance and never have, so if you really want to ask about insurance, call your local bank instead.

Life Insurance are common products that financial representatives will try to sell you, and each comes with many different types of features. Products vary country to country, even province to province, and include term, universal, whole-life, etc. But do most people really need life insurance?

Ask yourself this question, "Do I have a dependent?" These include any children, a disabled person, a non-working spouse, parents, or any other person who may rely on your income. If the answer is yes, then you need life insurance. If you take care of no one, then life insurance generally is not required.

If you said yes to the above question, then you should determine how many years of coverage you will need in case you pass away. Although every person's situation will be unique, a general guideline that I was taught was to pay it out until your dependent(s) can survive on their own. For most families, the dependents are their children. Many people may build and plan policies that pay out until their youngest child turns 25, the age when most kids will have finished college and have found a career. It is a good rule of thumb to use, unless you expect your child to remain in post-secondary until much later. You may also consider using a life insurance pay out to cover their costs of education as a way to help them out when you are gone.

The amount of the payout is also an important factor. Many people use their current net income and plan a policy that pays out an equal amount every year for a designated amount of time. For some, if you do not have dependents, you may consider getting a plan that covers a funeral only. Costs can vary, but typically is around $10,000. The good thing about this is that it removes the burden on your family to pay for it, and your assets do not have to be liquidated to cover this cost. This is something I have considered after I left work.

You should also check if your employer has automatically enrolled you into a plan that has a significant pay out. If it does not meet your needs, ask your HR if these can be altered. If not, consider purchasing a second policy with a bank and get all your employer plan documents so they can analyze these as well.

Wills
Since I am on the topic of death, I would also like to note that wills are extremely important. Many people believe that when you die, the government gets all your assets, if you have no will, but this is not true. All provinces in Canada have systems in place that provide automatic transfer of assets to spouses and next to kin. These will be different in every province.

Another good reason to have a will is so that people do not fight over your assets. It's tough to believe but even upon death, family members may still fight over your car, your furniture, etc. Have a will to prevent this from happening.

Make sure the executor of the will, the person who will be taking care of the "janitorial work", is not in the will itself. It is highly suggested to use a lawyer or financial planner, and not a brother, mother, etc. This creates an emotional barrier between the family and the legal document, among other things as well.

Incorporate your life insurance and will. Upon death, you will be required to pay taxes on the market value of your assets. It is impossible to know the value of your assets and the taxable amount, but provide a good sum to the government to cover your taxes so that your assets do not need to be sold, or at least minimizing the damage.

Planning life insurance and preparing a will are daunting tasks. Many have trouble writing up a will because it brings to reality that death is unavoidable, but preparing these two things can help alleviate some of the pain to your family and loved ones after you have left, and that reason alone should be enough for you to take these two things seriously.

Alien Life Detected on Titan, but Hold Them Horses

The Internet has been flooded with article after article of news that NASA scientists have evidence there is life on the largest moon of Saturn, known as Titan. Normally, I would provide a link in brackets, but just Google up "Titan" and go to news. There are 151 articles posted you can choose from if you feel you need more information than provided here.

In short form, two vital clues were published in "Icarus" and "The Journal of Geophysical Research" that mention methane-based life-forms may exist on Titan.

Observations by the Cassini probe detected hydrogen gas in the atmosphere, but did not exist at or on the surface, suggesting life forms may be breathing it in. Researchers expected the sunlight and hydrogen to react into a gas called acetylene, but this has not been detected.

I was extremely excited and hyper after the news, believing that the next step in human discoveries above our stratosphere had taken a giant leap forward. After all, I had known for years that Titan contains enough ice, which would melt into water in a few billion years, to support life similar to our planet's. Furthermore, I have heard that water vapour has been discovered from the friction of Saturn's rings on Titan. So, it was intriguing to say the least when I kept reading that life on Titan was evident.

This small finding fueled the Internet world to believe that alien life has been found on a cold, desolate, icy moon, but hold your horses I was later told. The recent findings have blown well out of proportion, as scientists said they have calculations which could provide evidence of life, however, these calculations have not yet been finalized.

Chris McKay, who proposed the idea in 2005 about methane-based life forms on Titan, said that although the evidence is exciting, if correct, we must not jump to conclusions and the simplest explanation is usually the right answer (Occam's Razor). He claims there are four other possible explanations (see Universe Today article for full details) including a possible error in the simulation.

I find it unfortunate that I could only find one article playing Devil's Advocate, especially to such a large discovery, but maybe the buzz still has not worn off for unbiased journalists. I'm glad that I did find that story, because my expectations would have been set very high and disappointment would only ensue if the figures were incorrect.

For now, I will sit back and just hope that these microbes do exist on Titan. Like buying a lottery ticket a few days in advance, I dream of big things (for humanity).

McDonald's Shrek Glassware Recall

McDonald's Canada has issued a voluntary recall on the four "Shrek Forever After" glass cups. The decision comes after McDonald's USA discovered traces of cadmium in the paint used to etch the figures on the cups. To date, no injuries or fatalities have occurred because of McDonald's proactive move. The company is urging children not to drink from the cups any further and to dispose or request a refund.

Refunds are available at all McDonald's restaurants. Simply request your refund at the counter or with the manager. Canadians can also call 1-877-495-5502 Monday to Friday from 8 AM to midnight EST, and Saturday 10 AM to 6 PM EST for questions or concerns; the phone line is bilingual.

Health Canada said the levels of cadmium detected were safe by current standards, but McDonald's Canada made the recall for precautionary measures. American standards recently changed for cadmium making these levels unsafe.

Proctor & Gamble

Many investors often have difficulty finding time researching stocks because of their career and families. And many times, investors may not fully understand the financial reports at hand, which can create a lot of unnecessary stress. This is why I have decided to start a bi-monthly blog called "Good Buys." I will profile a company and include in this new feature why it is a good investment, future prospects, third party recommendations, and other pertinent details. First up is one of America's largest companies: Proctor & Gamble [PG:NYSE].

Company Profile
Proctor & Gamble is an American consumer goods company headquartered in Cincinnati and founded in 1837. As of mid-2010, it is the 5th most profitable corporation in the world [1] with revenues nearly $80 billion US in 2009. It is also the 4th largest US company by market capitalization, behind Exxon Mobil, Wal-Mart, and Apple. As well, it is rated in the top ten (7th) most admired companies by Forbes Magazine.

Line of Business
The average consumer may not know the name Proctor & Gamble simply because the company does not label their products under this name. But P&G has almost two-dozen brands that each generate billions of dollars in sales each year including Gillette, Head & Shoulders shampoo, Pringles potato chips, Duracell batteries, Crest toothpaste, CoverGirl make-up, and Tide laundry detergent (A full list available on Wikipedia).

Financial Figures
As previously mentioned, Proctor & Gamble is the 5th largest profitable company in the world, earning almost $80 billion in revenue during the recession, with a net income exceeding $16 billion. P&G produces goods that are essential to every day life, therefore, its revenue streams are predictable and consistent, allowing the underlying security to lack volatility. The company has 140,000 employees world wide, making it one of the largest employers on the planet.

In their most recent quarter ended March 31, 2010, the company earned $2.5 billion in net income and revenues increased year-over-year by $1.3 billion. According to its balance sheet, the company has a debt ratio of 0.225, a ratio of debt to assets. Anything below 1 indicates it has less debt than assets, which is extremely good. The quick ratio is 0.633, used to determine its ability to pay off debt with its most liquid assets. Other key financial measurements are in the table below.

Measurement	Number	Explanation on value
Current Ratio	0.923	Below 1 is bad
Debt Ratio	0.225	Below 1 is good
Quick Ratio	0.633	Higher the better
Acid-Test Ratio	0.462	Below 1 is bad
Inventory Turnover	2.814	Days required to sell all goods

These financial measurements, along with another fifty, are often used to examine the financial health of a company, but each statistic can not be interpreted alone. One may make a poor assumption that P&G has trouble paying off debt analyzing just one ratio, but high inventory turnover indicates the company sells its entire inventory every 2.8 days which provides enough cash to pay off debt. Another reason these measurements are often inaccurate is that these figures are based on quarter-end results and does not typically represent the entire quarter or year, but are meant as a general guideline of a company's health.

Dividends
P&G has increased its dividend every year since it starting making dividend payments. In the last decade, the dividend has grown from 18 cents a quarter to 48 cents today, almost triple. Based on today's price, the yield is 3.15 per cent. The company says they are committed to dividend growth.

Analyst Ratings
- According to Thomson-Reuter's First Call, the company has a mean rating of 2.0 (buy). The table below is a breakdown of this rating.

Thomson First Call (as of June 3, 2010)
Sell	0
Underperform	0
Hold	7
Buy	4
Strong Buy	7

- As of May 29, 2010, the Standard & Poor rates P&G 4 stars out of 5.
- As of May 4, 2010, the Argus 12-month rating is a hold. The Argus 5-year rating is a buy.

Disclaimer
I do not own shares of P&G.
House hold and family members do not own shares of P&G.
I do not have a derivatives position in P&G.
House hold and family members do not have a derivatives in P&G.
Before investing in Proctor & Gamble, consult with your financial advisor and analyze your investment objectives.

New Directions Veteran Choir on America's Got Talent

Homeless US war veterans appeared on America's Got Talent last night. There is a shameful reality American soldiers face when returning from duty. But this choir does more than just sing, it brought hope to a dozen heroes. A powerful clip exposing a painful truth that American veterans are not taken care of when they return.

If you would like to make a donation, visit their website.

The Memorial Day Effect

History has shown that the markets tend to suffer during the summer months, something I made note of in "Sell in May, Go Away" but one small blip seems to occur right around Memorial Day.

A 6-day span comprising the Thursday before Memorial Day to the end of the Friday after Memorial Day has returned an average of 1.3 per cent, a significant amount considering the summer months rarely return 1 per cent.

Since the start of Thursday, the Dow Jones Industrial Average has gained over 250 points, or 2.5 per cent, with two days to go. Strong fundamentals in the American economy took over trading Wednesday, pushing the markets up 2 per cent, giving this seasonality trend a chance to fulfill. Concerns in Europe continue to linger in the market, but with all the bad news out of the way, traders are starting to focus on the economy in the United States and Canada.

Today, US May auto sales showed double-digit growth and US pending home sales grew at a larger-than-expected pace in April, fueled by tax credits. According to an Associated Press article featured on Yahoo! Finance, values of home equity seems to have bottomed, and used car prices are increasing, persuading car buyers to buy new. Friday could prove to be the decisive trading day with monthly job reports to be released.

The technicals also show significant support at the 1,075 level on the S&P 500. The market's reluctance to fall below this level has been supported by big surges in the following trading day; today was the third time this has happened. A second signal that the bear market is over: higher lows have formed since the market dropped almost 10 per cent from a "computer glitch." The sudden rise at 2:30 PM today also broke a short-term down trend that formed in the last week. And the forth reason there may be a short-term rally: the MACD patterns on the NASDAQ have gone positive, and the S&P 500 and Dow Jones are approaching this as well.

The final hour proved to be another profitable and predictable day for me, something I mentioned in "Trading the Final Hour", as bullish momentum continued throughout Wednesday.

With all this said, there are still dangers in this market. Fundamentals continue to shine, but there are still pockets of negativity emanating from Europe that have been the focal point of traders. I had been bearish in May, but I believe this rally today will lead into a better June.

The Fate of British Petroleum and the Oil Industry

On April 20, 2010, British Petroleum [BP:NYSE] informed the world that it had a small oil leak from an oil rig settled in the Gulf of Mexico. BP stated that 1,000 barrels per day was lost due to the explosion, but later admitted that the government's estimate of 5,000 barrels per day was much more accurate. Unfortunately, both BP and the US Federal Government was wrong, as recent studies show that over 100,000 barrels of oil are lost in a single day.

Many now accept that this oil spill has usurped the Exxon Valdez disaster as the biggest man-made natural disaster in human history. As well, estimates now put this oil leak as the largest oil spill in the world, passing the Iraq oil spill during the Iraq War in 1991 [1]. It's reign as number one will continue to live on if BP can not stop the leak. Attempts to halt the leak has failed on numerous occasions and may continue through the entire summer, prompting many to question what will happen if hurricane season hits early or harder than usual.

Shares in BP plummeted in the month of May; the first day of June has not been any better. Yesterday, BP announced that clean-up costs is nearing $1 billion US, sending shock waves across the globe. The company's market value decreased 15 per cent just today as investor's consider how much damage the company has inflicted on itself and the environment.

And now, speculations are swirling that British Petroleum's existence is in peril as its low share price is attractive as a takeover target. It also doesn't help that its reputation has been tainted for a few decades, and it has lost million, if not billions, in future oil revenue literally being washed away.

Bankruptcy is a tad absurd, but recent estimates by a Raymond James analysts see costs to spiral to $5.2 billion in 2010, up from a previous estimate of just $1.6 [2]. To put that into perspective, the company netted over $18 billion in 2010.

What this disaster has done has put drilling in the spot light. The realization that we need safe drilling has come to the forefront and expect many countries to implement new operating procedures and how we clean up oil spills.

A recent video has also been popularized on YouTube courtesy of this disaster, and I hope to make it viral. A non-profit organization named Matter of Trust has come up with an ingenious solution to oil spills: hair. View the video and ask your local salons to make a donation by simply mailing in boxes of hair they would normally throw out.