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Business News

Sommerfield: Uncertainty leads to stock market volatility

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Written by: Rian Sommerfield
Published: 05 October 2008
Volatility! The Dow has recently had several days with triple-digit moves. A high degree of volatility has hit the market given all the uncertainty around the apparent seizing in credit availability between financial institutions and the efforts of the government to relieve this tightening.


In the stock market, volatility may represent risk. The higher the volatility, the more difficult it may be to trade in the market; that is, it could be more risky. We will not try to buy into this market until volatility declines.


Our clients feel good about our Nestegg Trend Investing strategy and being in our money market funds as the Dow late last month moved down 505 points, up 142, down 449, up 410, up 368 (sourced at Yahoo Finance, Sept. 26, 2008). There are times in the past when this degree of volatility may have indicated that a significant bottom in the market has occurred. Since past performance is not indicative of future results, we’ll have to see if this plays out.


Did you also hear that your money market funds may now be insured by the Federal government similar to Federal Deposit Insurance Corp. (FDIC) guarantees for bank accounts? I believe this could increase confidence in the money market funds we are in while we are out of the market. Currently, money market funds are neither insured nor guaranteed by FDIC or any other governmental agency. Although they seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund.


It's at times like these that we need to stick to our system. Our system needs to see the major indexes rise above their intermediate-term moving averages, and for those moving averages to turn up. More important, our system also needs to see the action of individual stocks and sectors show constructive technical action. And of course, how the large institutions are buying and selling stocks.


Shorter term, I think it is possible that investors will catch a buying fever and feed a rally. It will be important to observe the market relative to what institutions do. The big problems have not been erased. We still have rising unemployment, a credit crunch, a recession, and a weak economy that many analysts expect to weaken further.


All of this points to a high risk market condition that now appears to have band-aids stuck all over it. Solid rallies are all about earnings. Many analysts are not expecting a great earnings picture during the next few months. Earnings will bring reality back to the equation when the exuberance of government band-aids wear off. The Fed and government actions are some of the bigger gambles they have made. If this doesn't work, then what's left in the Fed arsenal?


My point is that if we do get a trend change to the upside, it will still be an up-move in a bear market. The next few months could be laced with dangerous risk levels. But first, we need to see if institutions will back a rally. So, I will carefully scrutinize what institutional investors are doing and keep you appraised if any opportunity arises.


Rian Sommerfield is a registered representative offering securities and advisory services through Independent Financial Group LLC, a registered broker-dealer and investment advisor. Member FINRA/SIPC. IFG and Nestegg are not affiliated. Nestegg Trend Investing program does not guarantee a profit or guarantee protection from a loss.


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Governors signs Wiggins bill updating olive oil definitions

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Written by: Editor
Published: 04 October 2008
SACRAMENTO – On Oct. 1, the last day that he had to approve or reject bills, Gov. Arnold Schwarzenegger signed into law Senate Bill (SB) 634, legislation by Sen. Patricia Wiggins (D-Santa Rosa) to update California’s definitions of olive oil grades to conform to international standards.


SB 634 also defines “flavored olive oil” to reflect market practices and would require that olive oil be labeled consistent with the updated food grade definitions.


According to Wiggins, “olive oil is a rapidly growing industry in California, with volume projected to increase by 1000 percent in the next five years. California also produces 99.9 percent of the olive oil grown in the U.S.


“But state law does not define olive oil grades, and as a result the grades commonly seen on olive oil bottles – such as extra virgin – don’t need to meet any standards,” Wiggins said. “I thank Gov. Schwarzenegger for his support of SB 634, which establishes new definitions that meet international standards, and requires that bottles of olive oil be labeled accordingly. This will help consumers make informed choices based on consistent standards for quality.”


Dan Flynn, executive director of the UC Davis Olive Center, described SB 634 as “a landmark bill that will be good for consumers and California producers. ‘Extra virgin’ on the label finally will assure extra virgin in the bottle.”


Almost all of the state’s olive oil producers voluntarily conform to standards adopted by the International Olive Council (IOC) in the production of “extra virgin” olive oil. The IOC, based in Madrid, is an intergovernmental organization of 40 nations formed in 1956.


“Extra virgin” is the highest olive oil grade identified by the IOC. International standards require, among other things, that extra virgin olive oil be produced solely by mechanical means, without the heat or solvents used to make grain or seed oils such as corn and canola. The IOC standards ensure the quality of olive oil, but also make it a more expensive product than other oils.


Flavored oils, such as lemon olive oil or jalapeno olive oil, are increasingly popular with consumers, but existing law does not address these products.


Wiggins said the current state definition of “olive oil,” in existence since 1947, does not include “extra virgin olive oil,” which is the grade of nearly all California-produced olive oils. Nor does it include other common olive oil grades identified by the IOC or flavored oils that are increasingly popular with consumers.


Unlike wine, virgin olive oil does not need to be aged to create complexity. The faster the fruit is crushed, the fresher the product will be, due to the esterification reaction that occurs over time between free alcohols and free fatty acids. According to the California Olive Oil Council (COOC), the state’s olive oil producers are able to bring their fresh product to market sooner than international counterparts. Most imported oils arrive months, if not years, after they are pressed.


COOC Board President Alan Greene said that his organization is “delighted that the governor has taken this positive step for California consumers and growers. We are grateful to Sen. Wiggins for introducing SB 634 and working the bill through the legislative process. We also extend our thanks to the California Department of Food & Agriculture, and specifically, to CDFA Secretary A.G. Kawamura, for their support of this effort.”


Greene also echoed Flynn’s characterization of SB 634 as “landmark legislation for California. And it shows how bipartisanship on the part of the Governor and Legislature can be positive and beneficial for both consumers and growers.”


The COOC, which represents over 80 percent of all the olive oil grown and produced in the U.S., is the only certified quality-control program in North America whose standards exceed those of the IOC.


The purpose of the COOC certification program is to provide producers and marketers with a standardized method of grading 100 percent California olive oil as extra virgin, to provide consumers with the assurance that the oil is actually extra virgin, and to provide producers and marketers that meet the certification standard with a means to distinguish their product in the marketplace.


In order for a producer to gain certification, they must submit their oil to the COOC panel of tasters for a sensory evaluation, as well as a chemical analysis, performed by a COOC certified laboratory. The panel of tasters has undertaken a training and certification program, and undergoes ongoing training. Their role is to ascertain an oil's defects, such as musty, rancid or greasy, as well as desirable attributes such as fruity, bitter or pungent.


According to Wiggins, SB 634 will “not only provide consumers with better information, it will also facilitate the increased export of California olive oils and help spur adoption of national standards.”


SB 634 was sponsored by the COOC, as well as the North American Olive Oil Association. Additional supporters include Araujo Estate Wines, California League of Food Processors, California Olive Ranch, Carriage Vineyard, Carriere Family Farms, Cullen Creek Olive Oil, DeCamilla-Franch Olive Orchard, Family Winemakers of California, La Rusticana d'Orsa Vineyards, Long Meadow Ranch, Oakville Grocery Company, Ojai Oil Company, Olive Growers Council of California, the Olive Press, the Pasta Shop, Starcross Community and West Coast Producers.


Wiggins represents California’s large 2nd Senate District, which stretches from Humboldt County to Solano County and also includes portions or all of Lake, Mendocino, Napa and Sonoma counties.


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Culinary classroom opens in Lake County

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Written by: Editor
Published: 13 September 2008

HIDDEN VALLEY LAKE – In response to the growing interest in culinary appreciation of gourmet foods paired with the opening of numerous fine wineries in Lake County, Hardester’s Markets has opened a culinary classroom next door to their market in Hidden Valley Lake.


Hardester’s has teamed up with Chic Le Chef, Inc., a private chef and specialty caterer who provides culinary classes to everyone – including youth and teens.


“We’ve been feeling the pressure to expand our gourmet and specialty food lines for some time, and this concept works nicely into the overall plan,” said Ross Hardester, owner of Hardester’s Markets. “We’ve already done some pilot classes in our Middletownand Hidden Valley markets and the response has been very positive.”


Classes will cover techniques, wine and food pairings, as well as give information on ingredients. In addition, there will be healthy eating classes, guest chef instructors, and interactive kids’ classes. “The popular theme of the film ‘Ratatouille’ was that ‘anyone can cook.’ What we want to do is provide people with the awareness, techniques and confidence to cook what they like,” said Julie Hoskins, chef and owner of Chic Le Chef Inc.


“Thanks to the Food Network and home chefs becoming more interested in ingredients and techniques, culinary classes are hot,” said Duane Harper of Hardester’s Markets.


Hoskins explained that exploring the more readily available global foods has become an avid adventure for many and she envisions that the culinary center will offer something for everyone - from basic cooking lessons for kids to gastronomic delights for gourmands.


Classes are structured to be either a demonstration or hands-on. Participants receive tasting samples, recipe booklets, and valuable information on how to recreate the dishes at home.


The Young Chefs classes will focus on kitchen safety, culinary basics, and build cooking confidence. The Lunch and Learn class combines the lunch hour with healthy culinary instruction.


What’s for Dinner Tonight? classes combine easy, affordable menu ideas and are kid-friendly. These classes are scheduled so that two parents and young chefs can work together. Teen classes will be hands-on and teach kitchen safety procedures, such as knife skills.


Guest chefs and local food purveyors also are a part of this culinary vision of bringing good food to the table. The exciting Chef’s Table classes are for “foodies” who enjoy the unexpected and include

recreating dishes that are based on current trends and seasonal ingredients.


Hardester’s Markets began in 1943 with a store in Middletown (21178 Calistoga Road), which is currently undergoing a remodeling effort. There are two other Hardester’s Markets locations in Lake County which include Cobb (16295 Highway 175) and Hidden Valley Lake (19849 Hartmann

Road), next door to the new culinary classroom.


The Chic Le Chef culinary kitchen with professional equipment also is available for private parties including birthdays, bridal parties, and team building events. Class calendars and registration are available online. For more information, call 987-9664 or visit www.ChicLeChef.com.


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Rider is hooked on Clear Lake

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Written by: Lori Peters
Published: 07 September 2008
CLEARLAKE – Lakeshore Bait and Tackle in Clearlake opens as early as 6 a.m. Inside, at the front of the store, lures, rods and fish hooks hang from the walls beside a freezer full of bait. Most customers are surprised when the see the inventory of firearms that are also available.


Owner Bob Rider moved to Lake County in 2002. He opened the store in 2005 when an injury forced him to retire from law enforcement. Rider is proud of the fact that his store is veteran-owned and operated.


He has always been interested in fishing and has 20 years of firearms handling experience from his military service and police careers. His wife Brianna and sons – ages 15, 5 and 2 – also are interested in fishing and firearms.


Rider and his staff know where the best fishing spots are on the lake. Someone from the shop is on the water nearly every day of the week.


He started writing a weekly fishing report, dubbed the “Rider Report,” a few years ago. It has now grown to over 20 media outlets picking up the report from as far away as Oregon. Locally you can catch the report every week on www.lakeconews.com. And you can always see it new on the shop’s own Web site at www.994FISH.com.


Lakeshore Bait and Tackle also organizes events and training classes around fishing and hunting.

 

When I asked Rider what was his goal in starting a business in Clearlake, he replied, “Our goal is to help customers have fun. If we have happy customers, the money will follow. Therefore, we work on making customers happy.”


With that statement, I know the Rider family and Lakeshore Bait and Tackle will be here for a long time.


Lakeshore Bait and Tackle is located at 14913-D Lakeshore Drive, Clearlake, telephone 707-994-FISH (3474).


Lori Peters is executive director of the Clear Lake Chamber of Commerce, www.clearlakechamber.com.


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  1. Wildhurst wines win top awards at California State Fair
  2. Senate gives final approval to crab fishing safety, resources bill
  3. Legislature approves Wiggins bill on gas price postings
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