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June 13,
2006
Written
by Bob Meyer, Editor of BarterNews
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From the desk of Bob
Meyer...
06/13/06
A fluctuating,
increasingly inter-dependent world-wide economy has seen the
financial marketplace devise instruments to provide
protection against unforeseen financial changes in the
economy.
Sophisticated investors use these various instruments, known
as derivatives, to hedge risk. Those who don?t understand
derivatives often claim that they are merely speculative
instruments and akin to gambling.
Such thinking is misguided. Derivatives, in their many
forms, serve an important purpose. Rather than adding risk,
they offer protection against rising interest rates and fuel
prices, declining bond values, or swings in the price of
commodities such as corn.
The annual trading value of derivatives is six times that of
the stock equity markets worldwide, with a face value of
$335 trillion, up from $94 trillion in 2000.
Trade Dollars Are Derivatives And Enable Small Business
Owners To Manage Risks More Effectively
Trade dollars are derivatives because they represent a
future contract. They provide the ability to purchase future
products or services, based on their cash equivalent value.
(One trade dollar equals one cash dollar.)
Few
members of a trade exchange would identify their trading
efforts as buying and selling ?futures,? but when moving
unsold inventory or excess capacity through the barter
marketplace, they?re essentially buying future options on
goods and services.
In
other words they have the right, but not the obligation, to
make a purchase in the future. Best of all, the trade dollar
has no specific time frame for its use before facing
expiration. Unlike other options, they?re good until used.
When
one acquires valuable ?trade dollar futures,? it offers a
form of financial protection and insurance against the
uncertainties in the marketplace. And it can be accomplished
at the lower ?variable cost? of doing business.
In
today?s world, almost without exception, the small business
owner is undercapitalized. So it makes perfect sense to
embrace the barter arena, as well as the traditional cash
market, to provide added financial insurance for one?s
business.
Our Changing World
General Electric (GE), one of the world?s most valuable
companies with a market cap of $354 billion, recently filed
a 24,000-page tax return. Because the IRS requires it of
companies with assets of over $50 million, it was done
electronically.
The
cost to GE for developing the means to file electronically
approximated $1 million, according to GE?s senior tax
counsel John Samuels.
Current U.S. Listing
Information...
American Barter Company of NW Indiana
700 North Rd., #B-139
Wheeler, IN 46393
Ph: (219) 789-9999
Fax: (603) 947-1443
E-mail:
sales@americanbartercompany.com
www.americanbartercompany.com
All back issues of
?From the Desk...? can be accessed by
clicking
here.
(Please feel
free to forward our newsletter to your friends and
colleagues. We have a ?box? at the end of the
newsletter for your convenience.
See you next week. . .) |
Barter Aids Startups, Regardless Of One?s Business
An incredible
55% of last year?s business startups opened their doors with $10,000
or less in capital, underscoring the fact that undercapitalization
is the norm for the new business owner.
For the
knowledgeable entrepreneur, whether new or experienced, the use of
barter can play a significant, positive role in getting a business
of the ground. Here?s a story about how one company used barter to
build and expand its operations.
Chris Lindland
and Enrique Landa, the co-founders of San Francisco-based
Cordarounds.com,
launched their firm in the fall of 2004.
Their online
corduroy-pants business was opened with $8,000 between them. Couple
some money with a large amount of desire and creativity, and some
pretty amazing things can happen.
In a short
period of time they?ve not only sold 3,000 pair of pants that retail
for $66 to $88 each, but they?re in the black, without any debt,
according to Lindland.
The two have
kept their overhead to a minimum through the use of barter,
convincing others to provide needed services for pants. Web design
work, for example, was obtained by trading pants and several
home-cooked meals. The balance, approximately 10% of the bill, was
in cash.
This fall the
company has scheduled ads in the Harvard Lampoon in exchange
for 35 pairs of pants. The owners, both in their twenties, astutely
traded with yet another group, which, Lindland exclaims, ?needed us
almost as much as we needed them.? Who might this group be?
It is
business-school prospects, a hungry group of students looking to
spruce up their job applications. ?They will work hard and work for
less so they can list Cordarounds as part of their business
experience,? explains Lindland.
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ITEX Has Explosive Quarter...Both Its Income And Revenue
ITEX
Corporation (OTCBB:ITEX) has reported its results for the third
quarter of fiscal year 2006, ending April 30, 2006. The firm, a
leading marketplace for cashless business transactions, processes
more than $250 million a year through 22,000 member businesses,
managed by 95 franchisees and licensees.
CEO Steven
White was enthusiastic, stating, ?We continue strong growth in
revenue and income from operations as a result of the rapid and
successful integration of (the BXI trade exchange). We will continue
to explore opportunities to grow revenue at a faster rate.?
Third Quarter 2006 Highlights
-
Third quarter income
from operations was $437,000, compared to $150,000 for the
previous third quarter in 2005...an increase of 191%
-
Operating
income for the nine-month period ending April 30, 2006, was
$1,100,000, compared to the previous $609,000 in 2005...an
increase of 81%.
-
Third
quarter revenue was $3,419,000, compared to $2,345,000 in the
same period the previous year...an increase of 46%.
-
Revenue
for the nine-month period ending April 30, 2006, was
$11,169,000, compared to the previous $7,508,000 in 2005...an
increase of 49%.
-
Operational cash flow increased 96% from $914,000 to $1,790,000
in the nine-month period ending April 30, 2005 and 2006,
respectively.
-
Processed
73,000 transactions, totaling more than $54,000,000 in ITEX-dollars.
-
Common
stock - 300,000 shares were repurchased for $165,000 and
outstanding shares totaled 18,406,132. There are no outstanding
options or warrants.
ITEX
Corporation?s report on Form 10-QSB can be found at
www.sec.gov.
For more information on ITEX see:
www.itex.com.
Trade Exchange Owners...
Build Rapport & Empathy With Your Client Base!!
The
most powerful marketing tool in the barter industry, The
Competitive Edge newsletter, is a monthly, ready to use,
professional 4-page publication...no work is needed! (Click
here.)
Ingenuity Introduces More Media
Options
On the way...TV at the gas pump! It?s presently
being tested in Dallas, with TV monitors above gas pumps airing
short clips of news, weather and traffic, and, of course,
advertising.
This fall the company, GasStation TV, plans to
expand the program to a total of 100 gas stations in Dallas,
Houston, and Atlanta. All are owned by Murphy Oil USA, which
operates filling stations at Wal-Mart stores.
The four-minute segments of
programming (about the length of time it takes to fill up with gas)
will include news from local TV anchors, traffic updates, and
consumer-oriented clips from ABC?s Good Morning America. All
programming will be distributed to the screens electronically
through secure feeds over the Internet.
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IMS Announces April Revenue Increase
International Monetary Systems (OTCBB:INLM) has
announced that its April revenue totaled $570,000, an increase of
35% over April 2005.
The company also has purchased the assets of
Indianapolis-based Barter Indiana Group. The acquisition will add
200 members to the IMS client roster now numbering 10,000 in 36 U.S.
markets.
For more information see:
www.internationalmonetarysystems.com.
The
Growth and Use of Secondary Capital (New Money) Creates
Unprecedented Wealth In Today?s New Age Of Possibility
There are many forms of secondary capital?which can
be defined as any financial instrument that measures and
communicates value in a common language. Would you like to see and
learn more about the many forms of secondary capital?
We have 75 free,
informative and inspiring, articles for you in our ?Secondary
Capital Section.? Check it out...
www.barternews.com/secondary_capital.htm.
BBX Expands Into Another Major
Field?Wine
Few things in this world are as succinctly simple yet delightfully complex as
wine?or as old.
The act of pouring a glass of wine, inhaling the bouquet, sipping the elixir,
and savoring the taste is a satisfying and hedonistic treat that has captivated
mankind since the dawn of civilization.
Business Barter Exchange (BBX), one of
Australia?s largest barter companies, is expecting wine trading to
become a significant new income stream for the company. Michael
Touma, Managing Director, says they are establishing a wine fund to
expand trading among their members nationwide, as well as exporting
wine to BBX franchisees elsewhere around the world.
BBX expects to provide a minimum of $5 million,
and possibly up to $10 million, in premium wine inventory to its
members on a full-trade basis in the coming year.
Editor?s note: In our April 4 Tuesday
Report, we related BBX?s formation of a real estate fund for
property acquisitions that would be used to acquire desirable real
estate in Australia and New Zealand. (Click
here to read more.)
Get
New Money-Making Ideas And Valuable Contacts!
You can obtain
useful, informative ideas and contacts in every available back-issue
of BarterNews.
Commercial Radio Programs On School Buses
A
Massachusetts startup company, BusRadio, aims to begin statewide
broadcasting to more than 100,000 students on school buses in
September, and to expand nationwide in 2007.
The company is
offering school districts a percentage (5%) of the ad revenue it
collects, and has signed contracts with districts in Massachusetts,
California, and Illinois.
Advertising
will account for about eight minutes of every hour, and programs
will be tailored for different age groups. Material content will
vary from school-safety announcements to disc jockeys telling jokes
and playing hits by the likes of pop singer Avril Lavigne.
With many school
districts strapped for cash, commercializing of schools has expanded
to include text book advertising, and naming rights to school
buildings and stadiums.
Our Web Site Has Added A Search
Tool For You
Ever
wondered if a certain topic, person, or organization has been
written about on the Barternews.com web site? Now you can easily
find out, as we?ve added a search tool. It will quickly give you the
answer to your questions, in 3 easy steps that take about 12
seconds!
At the top
right of the page, just under where you sign up for the Tuesday
Report you will see a little Google box. It is where you can (1)
type in the name of a subject, company or person. Then (2) click the
button for www.barternews.com to search the site, followed by (3)
hitting the search button.
?Housing is the next Nasdaq bubble.?
?Mark Kiesel, Exec. VP, Pimco
Newport
Beach-based Pimco (Pacific Investment Management Co.) is the world?s
biggest bond fund, managing nearly $600 billion in bonds and other
assets.
Chief
Investment Officer, Bill Gross, is often quoted in the nation?s
press and in the Tuesday Report. As a firm, Pimco has been
saying since July that higher interest rates will slow housing.
Executive Vice
President Mark Kiesel, a 36-year-old 10-year veteran at Pimco, is a
little more dramatic in his comments. ?Housing is the next Nasdaq
bubble, and it?s not just houses that will be for sale. You?re going
to see financial assets for sale over time, and ultimately corporate
bonds.?
Kiesel?s belief
that the U.S. housing market is about to tank is no glib remark. He
is so convinced of it that he sold his Southern California home last
month, and moved into an apartment. Kiesel says there?s going to be
a flat-to-down market in real estate for the next two or three
years.
Every
barter company in the world is listed on our web site,
click through to our Global List
of Barter Companies.
We welcome your
comments, questions, and observations.
?
Copyright BarterNews 2006. Redistribution of BarterNews
content expressly prohibited without the prior written permission of BarterNews.
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