Rogue Investing Report Issue 17

Hello Rogue Investors,

I have been listening to what you want and I am ready to deliver:

ROGUE INVESTOR, on two audio CDs.

Now, even if you are driving in your car, you can access the investing advice in ROGUE INVESTOR.

In total, over 2 hours of recorded material narrated by Preston Piney.

Together, the two CDs make a wonderful gift for yourself or anyone interested in investing.

Click on the following link for more information and to listen to an audio excerpt:

http://www.rogueinvestor.com/audioCDs.html

Happy Investing,

Bryan Rundell

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ROGUE INVESTING REPORT
Take control of your financial future!
Issue #17: November 13, 2003
Publisher: Mind Like Water, Inc.
http://www.rogueinvestor.com
newsletter@rogueinvestor.com

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Table of Contents
1. Feature Article: Security Software/Hardware, Today and Tomorrow's Technology Winners
2. Stock of the Month: Checkpoint Software (CHKP)
3. Tip of the Month
4. Real Estate Investing: The Best Time to Sell

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Feature Article: Security Software/Hardware, Today and Tomorrow's Technology Winners
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When I look at society, I still see two main themes dominating the next 20 years: technology and health care.

I already spend a lot of time preaching the merits of health care investing. With the huge demographic shift towards elderly populations throughout the developed world and the increasing
focus on health in emerging countries, a boom in health care is inevitable. I am currently working on a book that will demonstrate how finding and investing in the best health care companies now will be one of the single greatest investment opportunities over the next 20 years.

However, technology will not be far behind health care. Incredible breakthroughs in computers and the Internet are occurring every year, at a pace that society cannot even keep up with. This is why technology companies goes through severe boom and bust cycles.

The only problem with technology companies is that many have already been discovered. While you'll find few articles on how to discover the best health care stocks, there is no shortage of
articles on the next, best technology company.

However, the truth is that the best technology companies to invest in over the next decade will not be yesterday's winners. You need to find the young Microsofts and Ciscos now, not 10 years from now when every else knows about them.

In my opinion, two themes will play out over the technology boom that will benefit a handful of companies. These two themes are Internet security and Internet wireless. In this issue's Stock of
the Month, I look at Internet security.

* Internet Security *

If you haven't noticed, computer viruses and worms have reached primetime status. The recent blaster worm got the attention of a huge number of governments and corporations. The blaster worm
adversely affected many businesses and government agencies across the world in August and September.

It is also apparent that the hackers are getting very sophisticated. In other words, don't expect hackers to be hacked out. The rate of Internet security evolution will barely keep pace with the rate of hacker innovation, creating a steady demand for increasingly sophisticated security software.

When most top businesses are asked where their top priority for technology spending will be, they answer security. Here, I like the number one company in the business, Checkpoint (symbol CHKP). Checkpoint is the featured stock of the month.

* Internet Wireless *

Already, many businesses are offering wireless Internet. This is the next wave. In your car, at the store, as you travel from place to place, you will be able to access the Internet with no hard connection. Businesses will use this technology to keep very tight inventory, control costs, and measure and monitor employees. People will use the wireless network to transfer and search for information, call friends, send photos, pay bills and perform many other previously home-oriented tasks anytime and anywhere. It will open up the entire Internet experience.

Imagine computers as easy to access and use as cell phones are now. This will transform society. The change is just beginning.

What is surprising about Internet wireless is that one of the biggest beneficiaries of this technology will be Internet security companies, especially security software companies. This is because when you are roaming around using your wireless Internet connection, software will need to be operating to stop hackers from hacking into the wireless network. Many of these networks will require a subscription fee. The last thing a wireless network provider wants is security holes that can be
exploited by hackers wanting to use the network for free.

Thus, behind the scenes, Internet wireless will benefit Internet security providers.

Combine these two trends, and companies that specialize in Internet security, especially security products that focus on wireless networks, will benefit.

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Stock of the Month: Checkpoint Software (CHKP)
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Security software looks good and Checkpoint is one of the reasons. I profiled this company about six months ago, but after the blaster worm devastated servers worldwide, it is even more obvious that security spending will be a priority for most companies. The beginning of Internet wireless and the security challenges it creates also point to a strong security software demand in the future

On paper Checkpoint looks very promising. Checkpoint has over $1.5 billion in cash and a proven reputation as the industry leader in Internet security firewall protection. Recently, Checkpoint secured new deals to provide security software for Nokia and Network Associates (Parent Company of McAfee). Checkpoint also created an entirely new line of security appliances that target small and medium businesses.

Other positives include a CEO that is consistently picked by his industry peers as one of the most innovative minds in the business, and many low valuation measures. The latter include my personal favorites: no debt and a low price to growth rate (the current P/E ratio of 18 is about equal to the long-term projected growth rate of 15 to 20 percent).

The only negative: earnings have been flat due to the global slowdown, but the company is still making money while others are barely surviving. However, technology spending often lags the
general economy because businesses must start making money before they can upgrade their networks. As the world economy starts to gather steam, the future at Checkpoint looks very bright.

Here are links for more information:

CHKP quote:

http://moneycentral.msn.com/scripts/webquote.dll?ipage=qd&Symbol=CHKP

CHKP fundamentals:

http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=CHKP

Overall, a growing company in a great industry that looks cheap.

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Tip of the Month
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Great investing is picking tomorrow's winners, not yesterday's favorites.

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Real Estate Investing: The Best Time to Sell
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Every year I conduct an annual experiment. I monitor the sales of homes throughout the area I live in and watch the progress of the home sales. I also compare what I observe locally to what I read
is happening nationally. Here are my observations:

The real estate market is cooling off a little. Homes are still selling, but not quite as fast. I expect sales to continue, but the growth in sales will slow down. Expect a little harder time selling your home, so price it to sell. A few markets are still extremely hot: parts of California, and Chicago are examples.

Again, like every year, the most sales occur in June and July. Don't forget this. People start looking for houses in March/April /May so they can move over the summer and avoid changing schools. People also start looking after the long winter, when the weather turns better. If you want to sell your house for more money, sooner, put it up for sale in mid-March. Just like the national
averages say, homes put up for sale near my neighborhood sold easily in the spring and early summer, and stalled out after August.

For you real estate investors, here is a list of the upcoming tax lien/tax deed auctions:

*November*
Illinois
West Virginia
Colorado

*December*
North Dakota
South Dakota
South Carolina
North Carolina

Find out about tax sales in your area by clicking on the following links:

http://www.rogueinvestor.com/government_tax_sales_book.html

http://www.tax-lien-certificates.com

If you're interested in becoming a real estate investor, more information on real estate investments, real estate investment trusts, tax lien and tax deed sales, and government foreclosures is available by visiting http://www.rogueinvestor.com/real_estate_investing.html.

If you have an investing question, email me at roguereport@rogueinvestor.com.

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Disclaimer: There are no guarantees in investing. I make no assurances regarding the investment information presented in the Rogue Investing Report.

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