Afghanistan Stamps Profile

Afghanistan, a country landlocked by Pakistan, Iran, Turkmenistan, Uzbekistan, Tajikistan, and China, in Central Asia has been viewed in negative light for the better part of the last half century for the following reasons.

• Incessant wars since 1971,
• An economy dependent on opium trade despite abundant mining resources (natural gas, oil, gold, copper, etc.),
• Courting a very conservative version of Islamic ideology resulting in violations of basic human rights,
• Reputed to be the major base of religious fundamentalists, and
• Impoverishment of the population (per capita income on the average is below two dollars per diem).

The latest census figures record population at more than 30 Million, almost 2.5 times the number in 1979. The US invasion of Afghanistan following September 11, 2001 has resulted in a slow but steady improvement in the political environment in Afghanistan – A democratic government is in its infancy, and multiple projects aimed at the reconstruction and revival of a real economy are now underway. Even so, countless problems linger – the government is under constant threat from religious fundamentalists, opium trading continues to be an essential aspect of Afghan economy, socioeconomic problems with its associated poverty has remained, and literacy rate is below 40%.

The first stamps from Afghanistan are circular in shape (imperforate, not cut-to-shape) with the design of a tiger’s head surrounded by Arabic script. The design symbolizes the ruler of the Kingdom of Kabul, Sher Ali Khan (“sher” is Arabic for tiger) at that time. Engraving was done individually resulting in several variations of these issues. The same theme in various colors (one color for each of the main post offices) continued until 1881. The defeat of Sher Ali Khan to the British and his eventual death following political asylum in Russia accounted for the change in the central design – the tiger head was replaced by inscriptions and that theme continued until 1891. Tiger head issues of Afghanistan vary widely in catalogue value – for example Scott #79 1sh gray of 1878 catalog for about $5 for a MNH copy while Scott #8 and #9 on toned woven paper catalog in the neighborhood of $1000 and $1500 respectively. Even so, for a few dollars a collector can acquire a “tiger head” through eBay. Twenty years of exclusive tiger head issues has resulted in their survival in large numbers among collectors and dealers and explains their affordable pricing. If you want to complete your philatelic collection by purchasing some stamps from Afghanistan but lack the appropriate funds, you could consider looking into quick payday loans.

Following independence from the United Kingdom in 1919, a set of stamps depicting the royal star of King Amanullah was issued on August 24, 1920. The set consists of three stamps (Scott #214-216) commanding a catalog value in the $250 range for MNH and a little less for Used. Reissues of the same design in 1921 in different dimension (22x28.5mm in place of 39x47mm) have a catalog value in the $10 range for the set (Scott #217-219) for MNH and Used catalog for around $5.

Most of the issues between 1921 and 1951 are relatively common as they were issued in large volume during independence anniversaries with the designs predominantly portraying mosques, government buildings, and other architectural structures. Hence it is relatively easy to acquire a complete set of stamps for this period. Exceptions include the 1941 15p gray green (Scott #334) depicting the independence monument, which catalog for $35 MNH. Certain varieties, Imperf pairs, and Tete Beche pairs also catalog for higher values.

The monotonous architecture theme gave way to national or global themes from 1951 onwards with the Pashtunistan flag issue (Scott #388 and #389). This issue is significant and serves a great historical context. At the time, the Afghan government supported the ‘Free Pashtunistan’ movement the aim of which was to form a new country for the Pashtun people combining the Pashtun occupied areas in Afghanistan and Pakistan. The Islamic fundamentalist regime of Afghanistan has roots in this complex issue as the adjacent Pakistan government needed to encourage such a regime for their own national security. The US and Soviet interests further complicated the core issues. National, Global, or Architectural themes continued till 1960.

Afghanistan started issuing stamps for the philatelic market in 1961. Many of these issues were categorized so as they were lower denominated stamps (less than 25p) and did not represent a postal need. Needless to say, these stamps have nominal catalogue value and are not collectible. Nevertheless, the design improved with varied themes and colors. Some of the higher denominated stamps have good catalogue value, excellent designs, and themes and are collectible. The set of four stamps that promote tourism released in 1989 is one such issue (Scott #1380 to #1383) and depicts mosque, minaret, etc. in excellent colors. Unfortunately, this was the last issue before a gap of 13 years through 2002 when no stamps were issued due to internal political issues and war. However this created a field-day for con-artists who produced illegal issues in various sets during this period. Some catalogues do a disservice to the philatelic community by listing stamps during this period. These have minimal value, if any and are not collectible. The UPU’s WNS numbering system show a few stamps each for the period from 2002 thru 2007. It should be fairly easy to acquire a complete set of these stamps as they are few in number and do not command premium catalogue value yet.

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Last Updated: 07/2011.
 

Dallas Arboretum Trip Report

Botanical Gardens brook no argument for a visit every season, and many do take a customary stroll through them several times a year solely for the tranquility that envelops all who enter. These gardens tend to make a spectacular statement with the flora that thrives in the local climate zone. The raison d'être varies - some bring their weary mind to unwind, and some to gather ideas before embarking on their romance with plants, some to get involved with the community in a serene setting and the list goes on.

Dallas Arboretum is conveniently located next to the White Rock River providing for a two for one stop attraction. Park address is 8525 Garland Road, Dallas, TX 75218. Garden hours are 9am-5pm. Park entrance fee for Adults $9.50 – Seniors $8, Kids (3-12) $6, Kids under 3 - free. Parking is $5. Memberships can be obtained from $60 onwards. Membership levels vary and so do the benefits associated with each level. The arboretum website provides further details. The Arboretum boasts of year round activities including musical entertainment, educational seminars, art fairs, plant sales, summer camps, volunteer opportunity to name a few.

The Arboretum allows for two miles of stroll and a subset of it is marked out as the Doctors Hospital One Mile Fitness Trail. The entire landscape can be covered without feeling rushed in about two and a half hours. Flower varieties abound, not to mention the assortment of grand trees present and they along with several fountains and ponds provide ample photo opportunity for commercial and personal purposes. Our visit in early April allowed us to appreciate flower power – a jocund show by tulips, azaleas, pansies supported by the annuals and perennials in all shades and hue of every color imaginable. The Storybook Playhouses dotted evenly across the Gardens could not capture the interest of the three kids in our group aged between five and nine. We were amazed at the array of edible plants that were showcased as part of the ‘Incredible Edible Flowers’ event. The adults and kids in our group appreciated the time we got to spend there. One suggestion to increase the viewing pleasure of visitors would be to curfew commercial photo shoots a bit on the weekends.

Last Updated: 02/2011.

Universal Postal Union (UPU) Stamps - Introduction

Universal Postal Union (UPU) established in 1874 is headquartered in the Swiss capital of Berne. The original intent was to have regulatory policies in place for International mail exchanges. Though the initial venture catered to only 21 member countries it still helped resolve several international mail delivery related problems among those countries. Since then, it has evolved to a specialized agency of the United Nations with a membership of 191 countries. Their goals include:

1. Set rules for International mail exchanges.
2. Be the primary forum of co-operation among postal sector players.
3. Establish a universal network of affordable state of the art products and services in the postal service sector thereby improving mail volumes and quality of service.
4. Raise consumer awareness about illegal issues of postage stamps.

The following three early achievements help understand the need for such an organization:

1. Helped formalize postage rates by the postal administration at the source based on size, weight, and destination of the mail material instead of the variable rates collected by the various countries en route. This greatly improved both service and mail volumes as customers found it much easier to mail material internationally.
2. Established fair distribution of revenue sharing among International postal bodies based on the overall weight of material crossing borders. This ensured that postal services of member countries are fairly compensated for the volume of mail they physically serviced as opposed to being compensated only on mail sourced at their end.
3. Establishment of International Reply Coupons (IRCs): This helped create a new service for postal administrations which enabled customers to provide a prepaid means for customers at the receiving end to respond to a solicitation of some kind.

A major initiative which has huge ramifications for philatelists all around the world is its initiative to combat illegal stamp issues. On this front, the World Association for the Development of Philately (WADP) and the UPU together formed the WADP Numbering System (WNS) on January 1, 2002. The organization aims to create a database of all authentic stamp issues of member countries. Some issues with this program are:

1. Not all member countries are part of the program – only around fifty percent of the countries in the UPU are participating in this currently. Bureaucracy could be a reason. Only those postage stamps that met WNS International Bureau’s process of verifying authenticity is attributed a WNS number.
2. As this verification applies only to those stamps issued after January 1, 2002 only the recent stamps have a WNS numbering and a verified registration associated with them.
3. WNS does not address the issue of forgery.

Issues with significant philatelic interest:

The first issue commemorates the establishment of UPU is the silver jubilee issue of Switzerland in 1900 (Scott 98-103) and depicts allegorical design symbolizing communication. The set of three stamps catalog for $65 MNH and at half of that for used set. This set is not especially rare and can be purchased from eBay for around one-third catalog value.

A few countries issued stamps commemorating the golden jubilee (1924). Switzerland issued a set of two stamps depicting the building in Berne where the first UPU congress convened in 1874 (Scott #204-205). These are very affordable and catalog for less than $10 Used and less than half that for MNH. The Universal Postal Congress (meets once every 4 years) was held that year in Stockholm, Sweden and they issued a number of stamps (Scott #197-228) with four different designs commemorating the event. The lower denominations of these issues catalog for a few dollars while the higher denominations catalog in the 100’s.

The UPU emblem portrays five messengers to symbolize the five continents as they distribute mail around the globe. A statue with this design was erected on 4th October 1909 in Berne, Switzerland. Acceptance of this emblem as the official UPU symbol came much later and stamps representing this emblem debuted in the 1949 commemorative issues from various countries. For the anniversary years of 1974 and 1999 multiple countries issued stamps along similar design. There is significant collector interest in these issues and most of them have very affordable catalog values. Further many countries issued stamps as they gained membership with the UPU and these too sport a good collector interest.

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Last Updated: 07/2011.

eBay (EBAY) – Stock Analysis

Introduction:

eBay while fast gaining grounds as a household name is also the ultimate Internet platform provider and a key player in the three fields of retail, credit, and communications:

1. Retail: In this space, though they play second fiddle as they are involved only in the secondary market (small retail, liquidation, used, out-of-season, etc.), they cover about 60% of the overall market. The bulk of this business is done through eBay.com. The primary market is controlled by the large retailers.
2. Credit: PayPal is marketed as the global Internet payment network – the eventual aim is to establish themselves as the de facto online payment process for all transactions conducted between buyers and sellers. Logically this business belonged in the aisle controlled by the large credit-card networks such as Visa, MasterCard, and American Express for whom the infrastructure was already in place. Capitalizing on their inability to accommodate the Internet transaction processing model, PayPal scored perfectly by providing a platform for flexible payments that requires only an email address and password.
3. Communication: Skype aims for fundamental change by enabling conversations between people using software and Internet. This compares very favorably to the business model of large-cap companies in the communication space that primarily rely on monetizing private networks which are by nature capital-intensive.

The sparkle behind eBay.com is that in spite of their vast presence in the secondary retail space, they carry neither inventory nor compete with other retailers. This essentially exempts them from the capital-intensive nature of the retail business. The platform they provide does ensure a fee from every transaction conducted between buyers and sellers. Their formula for a successful growth business is a reliable platform without any scalability or performance issues and focus on customer satisfaction. The first-mover advantage, especially pronounced in the Internet arena, should help them grow at a steady pace as merchants and buyers increasingly flock to the Internet to tap in the key advantage eBay platform holds over the brick-and-mortar model: World-wide market place access. More than 50% of eBay’s revenue is derived from this business.

PayPal is another remarkable business where eBay repeats its hands-off approach to perfection – a large presence in that sector on the Internet without directly issuing credit. The PayPal platform provides buyers with a PayPal account allowing for payment from their existing bank accounts or credit cards. This spares PayPal from agonizing over issuing credit, managing interest rates, etc and instead streamline by making the platform reliable and increasing customer focus. The business model parallels that of eBay.com in that every transaction between buyers and sellers conducted through a PayPal account adds to their revenue. Likewise, the first-mover advantage should again allow growth at a healthy pace.

Skype sports the biggest addressable market among eBay’s businesses. Though not quite as seasoned as eBay.com and PayPal, it is growing at a faster pace. Minimal capital requirements and customer acquisition costs make for a high-margin business. Skype is very much an independent entity and there is no real synergy compared to eBay’s other businesses. Sell-side analysts of eBay tout this in negative favor.

Business Issues:

Failure to innovate has landed eBay.com in a brutally competitive environment. They completely missed the local market allowing Craigslist to seize monopoly in that space. eBay’s management failed to recognize the immense potential of that market as a gateway into contextual ads – on the outward, transactions are one on one reducing the odds of monetizing and that closed mind-set cost them that market. eBay.com is also subjected to immense pressure from sites specializing in certain areas of the secondary market. A comparison of the number of active listings in one of those specialty sites and the same category within eBay easily demonstrates how short eBay.com comes. For e.g, on comparing the active listing at stampwants.com, a site specializing in philately and the listing with that of eBay category “stamps” it is evident that stampwants.com can easily trump eBay stamps category by a margin of almost 1:2. This fundamental problem can be traced to eBay management not recognizing the intricacy behind the specialized needs of individual categories within eBay and failing to provide a platform geared towards the requirements of that market.

PayPal has a few of strategic issues:

1. Merchant fees: PayPal charges a flat fee independent of the source of payment. Credit card payments involve a cost to PayPal as they don the guise of a giant merchant, processing transactions on their merchant’s behalf. The fee charged by the credit card company on the transaction volume is borne by PayPal. For payments from a bank account, such a fee is absent. Should an overwhelming number of customers resort to making payments using their credit card instead of using their bank account/PayPal account balance (default), then PayPal earnings dip. Writing is on the wall for that shift since credit cards offer the dual benefit of earning credit card rewards and added protection. PayPal recently announced a rewards program called eBay Bucks for buyers who pay with PayPal. While this is indeed a start, it still skirts the core issue - the rewards program should be dependent on the funding mode.
2. PayPal Plus: PayPal Plus is PayPal branded credit card. It is a MasterCard issued by GE Money Bank. The benefit of such a branded card is not obvious especially when the credit (GE Money Bank) and the infrastructure (MasterCard) are both provided by partners. The associated rewards program is average – roughly 1% (slightly tiered) as vouchers that can be used for PayPal purchases. Higher incentives need to be in place for purchases at eBay.com to get customers into using this card.
3. PayPal use outside eBay.com: During 2008, PayPal’s payment volume off eBay equaled volume on eBay. This underscores PayPal’s huge growth potential in the general eCommerce area. eBay needs to be especially aggressive in this area as the risks and rewards are huge.
4. Bill Me Later: eBay acquired this business in October 2008 marking their entry into the consumer credit business. Their business model is very different compared to the rest of the PayPal and eBay business. The arrangement is indirect – though the credit is funded by CIT bank, the associated risk remains as Bill Me Later purchases the receivable on the consumer loan extended by the bank. It remains to be seen how this purchase will pan out as it is a completely new area, although admittedly, it complements PayPal’ payment platform. The loan portfolio currently stands at around $600M and directly dependent on its movement is the associated risk or reward. This dependency lays bare eBay’s vulnerability to the vagaries of consumer credit environment.

Skype has a very large addressable market, but there is no denying that their playing field is very crowded and dominated by phone companies with deep pockets. The existing infrastructure investments of these companies are immense giving them all the more reason to protect their territory. Skype on the other hand celebrates its low capex spending and high margins. Sooner than later, Skype will hit a brick wall worldwide as the competition offers high loyalty incentives. For Skype to continue growing at the startup pace, they will require a strategy aimed towards building clientele at a rapid pace. As Skype’s business has little or no synergies with the rest of the eBay, eBay has announced the intent of spinning off Skype as an IPO.

Finances:

Below is a table that summarizes eBay’s financial position:

Year	2006	2007	2008
Revenue	5.97B	7.67B	8.54B
Net Earnings	1.125B	1.74B	1.80B
Shares Outstanding	1.425B	1.376B	1.303B
Earnings per Share	0.79	1.26*	1.38
YOY PE Growth	11.3%	59%	9.5%
YOY Revenue Growth	33%	28.5%	11.34%
Net Margin	18.84	22.69	21.08

*Impairment of good will is excluded.

It is obvious from the YOY (year over year) growth rates in the spreadsheet that eBay’s overall business has slowed over the last three years. This is particularly of concern considering the 2.2B spent on acquisitions over that same period. This tallies eBay’s problems with respect to Business Issues discussed. Despite this, cash equivalents (after taking out debt) have remained strong at close to $3B as net margin has remained steady at around the 20% range.

Summary:

eBay has a very strong business model with an exemplary balance sheet. Despite several business hiccups over the years, the fact remains their assets are extremely valuable. Going forward, if management focuses on providing a better platform that addresses both merchant and buyer issues, there is potential for growth in both their primary businesses. Overall, the Skype spin-off is a good strategy as that should allow for Skype to raise capital to invest in acquiring customers into the Skype platform worldwide – a plan sorely in need.

On a valuation basis, eBay has traded at a compelling valuation of just one-time revenue within the last year. It has since bounced back 70% beating the overall market bounce by a wide margin. Even now, the stock trades at under two-times revenue and a PE ratio in the low-teens. This is one of the few technology companies in our watch list and we continue to scout for a good entry point.

Economy, Business, Credit, and Debit at the Roundup #7

Welcome to the May 20, 2009 edition of Economy, Business, Credit, and Debit at the Roundup.

kathryn presents Treat Yourself to a Free (Or Cheap!) Treat posted at Out of Debt Christian, saying, "Economy got you down? Pay a huge tax bill last week? Or just feeling the need for a special treat? This is your week! Here are three great free (or super cheap) treats to take advantage of..."

Home Based Business presents 21 Steps To Home Business Success posted at Online Home-Based Business Opportunity, saying, "Fifty million home-based businesses will be in operation by 1997, according to Link Resource's National Work-at Home Survey. All around the country, people who want more control over their lives are starting home businesses"

Roger Gordon presents what are annuities posted at what are annuities, saying, "Variable annuities have more funding options than fixed pensions since their performance depends on the choice of investment of the principal and return change. What"

Mark Aucamp presents Credit crunch means talking about money and the lack of it posted at Money Saving Tips, Consumer Finance, Expert, Advice and Help | Talk Money Blog, saying, "It’s not difficult to get involved with the debate about the credit crunch and the current national and global recession. Gordon Brown the Prime Minister is the ex-Chancellor of the Exchequer and he is well remembered for his continuous chanting of the word ‘prudent’ whenever he was delivering his budget speech. In fact some sad person would actually count how many times he said it while delivering his budget each year. He also regularly informed us he would steer Britain on a prudent course and would not allow ‘Boom and Bust’ on his watch. Well guess what we got a BIG BUST now!"

KCLau presents Bad Experience of Car Insurance Claim posted at KCLau's Money Tips, saying, "a story of bad experience with vehicle insurance claim"

Billeater presents Beyond the Basics- Dig Deeper and Save Money posted at Billeater.

debt kid presents No More Buy and Hold Strategy for Me posted at DebtKid.

Debt Freedom Fighter presents Features That Indicate a Good Credit Repair Program posted at Discover Debt Freedom!.

Savings Toolbox presents Squeezing More Savings Out Of Your Budget posted at Savings Toolbox.

apply4-credit presents New to Credit Cards? Here is What You Should Know posted at Apply4-Credit.

Tushar Mathur presents How to choose a financial planner posted at Everything Finance, saying, "There's retirement to plan for and college tuition for the kids. Insurance. Estate planning. And, oh, don't forget a wedding for your daughter. If all this sounds familiar, it may be time for you to start shopping around for a financial planner."

Simon Stapleton presents If You Have Objectives, Then Get an Implementation Plan posted at ACE Your Performance Review, saying, "Got objectives you will be reviewed against? Then get an implementation plan!"

John Russell presents In An Accident? Don posted at The Low Cost Auto Insurance Guru, saying, "You pay your premiums, but when your car is damaged, you balk because you fear a claim will mean higher insurance rates. Here"

Jack Schmidt presents 10 Really Fun Things You Can Do Today on the Cheap posted at SectorMatic Money Journal, saying, "Personal Finance | Everything for the Big Spender on a Budget. Now you can live like a fat cat, even if you're on a moeny diet. Laugh all the way to the bank with Jack Schmidt and SectorMatic Money Journal. It's for you!"

Leave Debt Behind presents Where to Get Your Free Annual Credit Report posted at Leave Debt Behind.

cody butler presents 3 Steps To Financial Freedom posted at Dream Life Coaching Blog. Ask your questions., saying, "If you wish to be financially free, then you must start your own business, here are three steps to do that."

Joseph presents How To Save Money When Doing Laundry posted at How to save money.

Destroy Debt presents My Credit Limit Got Lowered Below My Outstanding Balance posted at Destroy Debt.

James presents Work From Home - Writing Your First Freelance Article posted at Making Money Freelance Writing, saying, "The most intimidating thing for me getting started with working from home by freelance writing was writing my first article! I've covered some basics for writing your first article in your efforts to make money working at home."

Praveen presents Combining Fundamental and Technical Analysis in Stock Trading posted at My Simple Trading System.

Debt Free Destiny presents Cut These 7 Things Out of Your Life Now and Save Big posted at Debt Free Destiny.

CreditCardAssist.com presents Pump Up Your Rewards Programs posted at Credit Card Assist.

Ace presents The Things To Know About Web Hosting posted at Internet Marketing Ace.

Shaun Connell presents The 10-Step-Plan: How to Make Money Online posted at Make Money Online, saying, "The Internet is filled with thousands of blogs that teach tips for making money online — unfortunately, very few give you a detailed tutorial for how to build your own website that will contually earn an income indefinately. That’s what this page is for."

Michael Haltman presents Man, Is This A Real Bull Market? posted at The Political and Financial Markets Commentator, saying, "Why Do I Watch CNBC? I'm not sure, but if you look closely at CNBC during the day the anchors are all wearing Dallas Cowboys cheerleading uniforms. Men and women. Now it is my fault for watching it, as I have the option to change the channel, but I do like the ticker going across the bottom. Takes me back to my trading days."

Ben presents Financial Confession: I don't Budget posted at Money Smart Life.

Matthew Paulson presents Should You Consolidate Your Student Loans posted at American Consumer News.

Flea presents Be A Survivor: Frugality....The New Chic. posted at Be A Survivor.

All Others

Steven Lohrenz presents Culling the Herd posted at Steven Lohrenz, saying, "self improvement"

Bank Champ presents Failed Banks Not Required to Honor CD Rates posted at Bank Champ.

jim presents How To Get A Free FICO Credit Score posted at Blueprint for Financial Prosperity.

Rick Foreman presents Keeping Up On The Internet posted at Waiting for the Singularity.

Mr Credit Card presents Blogging Away Debt Interview- Tricia eliminates $37,614 of Credit Card in 3 Years posted at Ask Mr Credit Card, saying, "This is my interview with Tricia from Blogging Away Debt. She gives some excellent tips she has learnt on her journey to complete credit card debt elimination."

Roshawn Watson presents Hobby Lobby Raising Minimum Wage to $10 Hourly posted at Watson Inc, saying, "With the interminable focus on bad financial news that plagues most media, today it is great hear of companies (such as Walmart and Hobby Lobby) that are thriving in spite of (possibly because of) the recent economic turmoil."

Raag Vamdatt presents Highlights of the New Pension System / Scheme (NPS) for non-government employees :: RaagVamdatt.com :: Financial Planning demystified posted at RaagVamdatt.com.

Gregory E. Rouse presents Finding Freelance Writing Jobs posted at Best-Home-Business-Opportunity Blog, saying, "With the Internet, freelance writing has never been easier. Publications can be read online, queries can be sent with email and new opportunities to be published are popping up daily."

Junior presents How To Evaluate Car Buying Deals posted at Car Commentary, saying, "When it comes to buying a car, everyone wants to get the most value they can for their money."

Vicky presents Wedding Planning On A Budget posted at Affordable Wedding Planning, saying, "Basic wedding planning help."

FMF presents And Yet Another Millionaire Says the Same Thing posted at Free Money Finance, saying, "Advice on getting wealthy from someone who is."

Sam presents Your Credit Report and FICO Credit Score. Good Credit Rating Makes Buying a Home Possible posted at Surfer Sam and Friends, saying, "Thanks for including my article. Here's an excerpt...

What Is My FICO Credit Score
What is a Good Credit Report
How to Get Good Credit

What is My FICO Credit Score?
Your FICO credit score is used to determine your credit risk. Having good credit means that you have a good FICO credit score. When you apply for a loan or a credit card, your lender will get your credit report from one of three credit bureaus. The credit report summarizes your good credit score. If you have a low FICO credit score, your lender will charge a higher interest rate, or may deny you the loan.

Your credit history is monitored by three different companies: Equifax, TransUnion and Experian. These companies are called “credit bureaus.” They compute your FICO credit score, based on your credit history. The Fair Isaac Corporation (FICO) developed the FICO score in the 1950s and the Federal Trade Commission has approved its use. A great FICO credit score is 800, but any credit score over 720 will allow a borrower to be approved. If your FICO credit score is under 600, you may have to pay a higher interest rate on your new mortgage loan and your new credit cards.
How Your FICO Credit Score Is Determined
For many years, it was a mystery how credit was scored. But the computations that make up a FICO credit score are now public knowledge. Your FICO credit score is weighted as follows: 35% is your payment history, with more weight on current history; 30% is your credit capacity, which is the amount of credit available to you; 15% is the length of credit; 10% is the accumulation of debt in the last 12 to 18 months; and 10% is the mix of credit. Your FICO credit score also takes into account where you live, how much you make and how much you owe. The complete formula is more detailed, but this breakdown gives you a starting point to build your own good credit score.
Get Your Free Personal Credit Report
Thanks to a change in the Federal Fair Credit Reporting Act, you are entitled to a free copy of your credit report once a year from each of the Big Three credit bureaus."

Donald Latumahina presents How to Make More Money posted at Life Optimizer, saying, "The amount of money you earn is proportional to the amount of value you contribute to the society. What you need to do to make more money is simple: contribute more value to the society."

Silicon Valley Blogger presents ETrade Online Brokerage Account: Top Broker Review posted at The Digerati Life, saying, "Thanks!"

Ray presents Citi Forward Card Review posted at Money Blue Book.

Lazy Man and Money presents Glad I Have an Emergency Fund posted at Lazy Man and Money.

That concludes this edition. Submit your blog article to the next edition of
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Carnival of road to financial independence #7

Welcome to the May 19, 2009 edition of road to financial independence.

Beating Inflation

Michael presents Using CarFax to Weed Out Used Car Lemons posted at Vital Motion, saying, "The last thing you want to do is buy a rotten used car."

Lindsay presents Physical Gold & Silver Storage Options posted at Home Security Beat, saying, "Many folks like to pick up some physical gold and silver as a hedge against inflation, but once you've got it... where do you keep it safe?"

Frugal Living

Paul Piotrowski presents The Importance of Saving Money posted at Inspired Money Maker.

MoneyNing presents What Drives You to Be Frugal posted at Money Ning, saying, "The reason why I'm frugal is not strictly about necessity. What is the real reason for you?"

Raj Patel presents Thrifty is the New Frugal posted at DebtGoal, saying, "An article that challenges the idea that personal financial management is "not about price. It's about the whole value proposition.""

Jeff Rose presents The Cheapest and Most Simplest Chicken Pasta Recipe You’ve Ever Seen posted at Jeff Rose, saying, "Cheap and tasty chicken pasta recipe."

Patrick @ Cash Money Life presents Save Money on Mother’s Day Flowers posted at Cash Money Life, saying, "Tips on how to get the best deal on flowers, whether you are shopping online or buying from your local florist. Just in time for Mother's Day!"

Jim DeSantis presents Divorce: What To Do About Medical, Life, Homeowners, and Auto Insurance! posted at On Line Tribune | Marriage Matters, saying, "Covering the insurance needs of yourself and your children after a divorce must be considered during pre-divorce settlement negotiations with your soon-to-be ex. This is largely a matter for lawyers but you need to think ahead to protect everyone who depends upon you."

Renee V. Rouse presents Family Meals for Under $5 May 1st posted at Frugal-Living-Skills Blog, saying, "...Weekly grocery circulars often read “feed a family of 4 for under $10!”. I’m sure most of you have laughed at this as I did. As a result, I began to wonder what does dinner really cost for my family of 8? I figured if I kept it under $5, I was doing good..."

FIRE Getters presents Top 7 Energy Saving Tips for this Summer! posted at FIRE Finance.

The Smarter Wallet presents Budget Your Money and Control Your Spending Using This Simple System posted at The Smarter Wallet, saying, "Thanks!"

freesoftware presents List of Best Free Software for New Computer posted at I Love Free Software, saying, "Here is a nice way to save some money in this economy - get all the software for free. This is the list of the best free software that you can install on your new computer. We searched all over the web, and compiled this list of best free software. Each one of these is best in its class, and still totally free. You are going to love these!"

Passive Income

Brandon Rowe presents Pentagon FCU 4% APY 5 Year CD posted at Bromoney Internet Banks.

The Budgeter presents The Bill Collector�s Calling Again posted at Keep Your Cash, saying, "Everything you need to know about how bill collectors try to contact you."

Steven Leung presents Case Study on How a Web Visitor Becomes an Online Lead posted at Integrated Marketing Experts, saying, "A common approach to generating passive income is by building a website or blog, but many people go into it without a plan for how to convert their visitors into leads. This case study shows a real-life example and how to create a strong reputation for your passive income business using the Internet."

Reducing Expenses

Brian McKay presents Paying Your Mortgage off Early posted at MonitorBankRates.com, saying, "Most people do not have the financial resources to pay their mortgage off early but for those who can payoff their mortage does it make financial sense?"

Chris McClelland presents 10 Reasons Your Bank Never Wanted You to Read This posted at Lucrative Investing.

nickel presents Pay Off Mortgage Early? Or Invest? posted at fivecentnickel.com.

Stock Investments

Investing School presents OptionsXpress Review posted at Investing School, saying, "OptionsXpress is great for options trading. Good commissions, free tools and more."

Finance Tips 101 presents What You Need to Know about Academic Scholarships posted at Finance Tips 101.

Mike Pastore presents Will Day Trading Make you a Millionaire? | www.mikesmillions.com posted at Mikes Millions.com.

sherin presents My personal biography of investing - Part 2 posted at THE MONEY MANIAC, saying, "Personal biography explaining the self developed practices to valuate an investment"

Steve Patterson presents Chinese Internet Companies Climbing posted at FastSwings.com - Steve Patterson, saying, "Boost the performance of your portfolio with a few names from the rapidly expanding Chinese internet craze."

Jae Jun presents Stock Investments From Forbes 400 Best Big Companies posted at Old School Value, saying, "Stock investment ideas and fair value calculations from Forbes 400 platinum list."

Dirk Masuch Oesterreich presents Methodical Exploration as a Hint for Mining Investors: Aurelian Resources’ Fruta del Norte 13 Million Ounces Gold Discovery in Ecuador posted at Nevada Gold Investor, saying, "A geologist explains how to spot a successful gold explorer before the stock takes off and multiplies your investment."

PicktheBrain presents Gallows Humor: 21 Economy Inspired Cartoons posted at School Loans.

Dividend Tree presents My Top Three Investing Mistakes posted at The Income Portfolio, saying, "Like friendship is life long, deciding to invest in a particular company should also be for long time.

In few days you may have an acquaintance, but friendship takes a long time to build. Similarly, I may earn few bucks in trades, but it takes a long time to build wealth."

Ryan Suenaga presents What’s in My Portfolio: Altria Group, Inc. posted at Uncommon Cents.

samuel lewis presents SHOW ME THE MONEY! posted at LET'S TALK ABOUT MONEY!, saying, "This blog is about money,investing it, saving it,winning it or losing it! Whatever you want to say about money say it here!"

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Options Expiry – Closed May 8 Covered Calls on Direxion 3X Bull ETF (FAS)

As we twittered previously, we wrote May 8 covered calls on our Direxion 3X Bull ETF (FAS) shares at 1.5 on May 4th. Those were closed on Friday at 0.90 for a small gain. We decided to buy back the option and close our position as otherwise our shares would have been called away on Saturday following options expiry as the stock closed well above 8 on Friday.

Below is our updated portfolio - it is about 21% in the red. It includes roundtrips on covered calls we twittered about previously. As a percentage of our total portfolio value, those roundtrips brought in a return of just under 0.7%. Our cash position is about 17% . The stock market rallied but we have stayed put so far:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	16.69	16.98	4.06	1.77	0.38
Philip Morris International (PM)	1/4/2005	32.19	43.17	8.66	34.10	0.45
Kraft Foods (KFT)	Various	24.03	24.80	3.96	3.19	0.23
Pfizer (PFE)	Various	24.37	15.01	5.98	(38.40)	0.30
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	23.39	9.33	(7.46)	0.30
Advantage Energy Fund (AAV)	11/2/2006	11.22	3.41	1.36	(69.62)	0.17
Central Europe & Russia Fund (CEE)	Various	39.23	22.11	6.17	(43.64)	0.03
Patni Computers (PTI)	8/10/2007	20.85	8.86	3.53	(57.54)	0.08
Itron Inc. (ITRI)	11/07/2007	85.01	48.68	3.88	(42.80)	None
Anthracite (AHR)	11/09/2007	7.97	0.69	0.28	(91.34)	0.00
ClickSoftware (CKSW)	11/09/2007	4.61	4.28	3.41	(7.16)	None
Harvest Energy (HTE)	11/28/2007	21.01	5.94	1.89	(71.73)	0.22
iRobot (IRBT)	12/18/2007	18.65	12.03	3.84	(34.94)	None
LDK Solar (LDK)	01/22/2008	30.49	8.02	1.92	(73.70)	None
Aegon N.V. (AEG)	04/28/2008	15.99	5.43	1.30	(66.03)	0.00
TD Ameritrade (AMTD)	05/21/2008	17.68	15.90	5.07	(10.09)	None
Trina Solar (TSL)	Various	24.90	16.95	6.76	(31.93)	None
Costco (COST)	08/01/2008	62.28	44.75	3.57	(28.15)	0.07
Frontline Limited (FRO)	10/06/2008	36.95	21.15	2.53	(42.76)	0.17
DryShips Incorporated (DRYS)	02/09/2009	6.96	6.84	3.82	(1.78)	0.00
Direxion Financial Bull 3X ETF (FAS)	04/13/2009	9.86	8.74	3.48	(11.36)	0.00
Cash				16.97
Total Portfolio					(21.03)	2.54

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
DryShips (DRYS)	Various	11.66	01/29/2009	8.96	(23.29)	(1.39)
DryShips Feb 15 Calls (OOCBC)	01/29/2009	0.20	01/16/2009	2.50	922	0.58
Companhia Siderugica Nacional (SID)	Various	11.03	01/29/2009	16.01	44.86	1.73
Taiwan Semi Feb 7.5 Calls (TSMBU)	Expired	NA	01/09/2009	0.90	NA	0.77
Taiwan Semi (TSM)	7/27/2006	8.70	03/03/2009	7.76	NA	(0.78)
Direxion Financial Bull 3X Shares (FAS)	03/16/2009	5.09	03/19/2009	6.53	28.31	1.26
Direxion Financial Bull 3X Shares (FAS)	03/23/2009	5.94	03/23/2009	6.22	4.63	0.19
Direxion Financial Bull 3X Shares (FAS)	03/24/2009	6.45	03/24/2009	7.12	10.30	0.44
Direxion Financial Bear 3X Shares (FAZ)	03/26/2009	19.67	03/27/2009	19.91	1.22	0.05
Direxion Financial Bull 3X Shares (FAS)	03/30/2009	5.49	03/31/2009	5.20	(5.35)	(0.23)
Direxion Financial Bear 3X Shares (FAZ)	04/09/2009	10.47	04/13/2009	11.03	5.40	0.22
RQCDU – Ericsson April 7.5 Calls	1/21/2009	NA	04/18/2009	0.93	NA	0.65
Ericsson ADR (ERIC)	5/5/2008	11.83	04/18/2009	7.48	(36.80)	(3.04)
FASEB – May 10 calls on FAS	4/27/2009	0.55	04/22/2009	0.93	NA	0.14
FASEJ – May 8 calls on FAS	5/1/2009	0.93	04/30/2009	1.65	NA	0.29
FASEJ – May 8 calls on FAS	5/15/2009	0.90	5/4/2009	1.50	NA	0.24
Realized Gain/(Loss) YTD	-	-	-	-	-	1.13

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.

Common Design Stamps - Introduction

Introduction:

Common Design Issue in philately refers to stamps with identical design issued by more than one country. Many newcomers are pleasantly surprised at the broad category they encompass. Their charisma makes for a very popular philatelic interest area. Below are several other related classifications:

1. Joint Issue: These are stamps in similar intent issued by several countries. Usually they are a collaborative result between the countries involved in commemorating an event or marking co-operation. A subset of these issues has identical design and they come under the umbrella of common design category. Numerous philatelists specialize in Joint Issues and in the areas within. Quite a few catalogues and sites are dedicated to this theme.
2. Omnibus Issue: These are stamps issued by multiple countries to commemorate the same event. The design may be identical, similar, or different. Again, the subset of these issues with identical design makes for a group in the common design class.
3. Key type: They are stamps with identical design issued by various countries (usually colonial states). A common plate, usually depicting the “head” of a King or Monarch, was used to lay down the main design for these stamps. This main design plate was referred to as the key plate. A second plate known as the duty plate, laid down the country name and denomination. The difference between the issues can be reduced to the name of the country, currency, or color. They are entirely classified under the common design category.

Issues with significant philatelic interest:

The first ever common design issue is the design of the Crown of Great Britain and the Heraldic Flowers of United Kingdom represented in the stamps from the Canadian provinces of Newfoundland, New Brunswick, and Nova Scotia. These are the first stamps of these three provinces and command a premium catalog value. Even so, serious philatelists consider them remarkably affordable and they catalog in the $100 range.

The initial Joint Issue stamps were issued by Greece (Scott #412), Romania (Scott #470 & 471), Turkey (Scott #785 & 786), and Yugoslavia (Scott #140 & 141) to mark the Balkan pact between those countries that was signed into treaty in 1934. These stamps catalog for under $10.

The first ever Omnibus issues are the Vasco da Gama stamps marking the fourth centenary of his discovery of the route to India issued by Portugal (Scott #147-154) and colonies (Azores: 93-100, Macao: 67-74, Madeira: 37-44, Portuguese Africa: 1-8, Portuguese Congo: 75-98, Portuguese India: 189-196, St. Thomas and Prince Islands: 170-193, and Timor: 45-52) of 1898. The lower denomination issues of Portugal catalog for a few dollars while the last three highest denominations catalog above $30 for MNH condition. The issues of the colonies catalog for under $10 for the set.

Key type stamps were introduced in 1879 by Great Britain and its Colonies. The original intent was cost savings as the colonies demanded individual stamps. Though these stamps are relatively common their philatelic interest is exceptional. Most of these were issued during the classic period (before 1940) accounting for the superior following among collectors specializing in stamps from that period.

There exists numerous common design issues and the pace of issue has accelerated making the earlier issues much more collectible than the recent ones. A very popular common design issue among philatelists is the long-running Europa stamps issued between 1956 and 1959 by the member countries of the European Coal and Steel Community, between 1960 and 1973 by members of European Conference of Postal and Telecommunications Administrations (CEPT), and from 1993 onwards by members of PostEurop. However for newcomers their sheer volume can be overwhelming.

Recent popular issues with limited value and appreciation potential include issues such as the Wedding of Prince Charles and Lady Diana, Birthday issues of Queen Elizabeth II, Anniversary issues of organizations like UN, UPU, UNESCO, etc. Exceptions exist too. To exemplify, the Princess Diana Welsh presentation pack (NOT the US version) of 1997 routinely goes for $50 or more.

Among older issues several Coronation, King George (KGV), Victory Sets (World War II allied nations), etc. are sought by collectors. As many of these were issued as definitive stamps and produced en masse, for a few dollars many of these can still be acquired in sets.


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Last Updated: 07/2011.

UN Stamps - Introduction

Introduction:

United Nations Postal Administration (UNPA) is uniquely privileged to issue stamps along with postal authorities of host countries by the Universal Postal Authority (UPU). The other entities issuing stamps are either a country or a territory. UN offices that issue stamps are located in New York, Geneva, and Vienna. The first stamps were issued October 24th, 1951 in New York and were built around the theme “People’s of the World.” This and the ones with the theme of “UN Headquarters Building” and “Peace, Justice, Security” formed the first three issues. These were all definitive issues and in keeping with the true United Nations spirit affordable at 1c, 1.5c, and 3c denominations.
The primary purpose was for UN official correspondence originating from their offices. They can be used for private correspondence too with the caveats being:

1. Only stamps denominated in the host country currency may be used at that country’s United Nations office. i.e., a stamp denominated in Swiss Francs cannot be used in the offices in Vienna where the currency is in Euros.
2. The stamps cannot be used in mailings outside of UN offices.
3. Express Mail and Priority mail are unavailable for private mailings.
4. Private mailings are limited to 100 pieces.

These restrictions and the fact that UN official mail generally utilizes metered mail makes obvious the rationale for issuing UN stamps – to raise revenue by issuing stamps for philately. The restrictions offer a hidden benefit to collectors – ability to purchase UN stamps at a significant discount to face value through dealers and eBay!

Significant time and money is spent on the design and quality control of UN stamps making these extremely high quality stamps with an aesthetic appeal. Sheer volume accounts for the majority of UN stamps sporting only a trivial catalog value. Early issues (50’s – 70’s) sold in the millions. Collector interest sagged from the late 70’s as UN issues were deemed similar to CTO stamps – issued in the millions with only a small percentage used for postage because of the restrictions. Consequently, sale of many issues in the 80’s and 90’s were well below the one million mark. UNPA reacted by reducing the printings of issues (roughly 500,000) and hiking instead the number of issues in a given year. This series of events caused older UN stamps catalog for a lower value compared to recent issues – another unique fact!

Issues with Significant Philatelic Interest:

The first UN issue with a significant catalog value is the 1954 UN NY Scott #29 3c Orange-Brown mother and child (Human Rights Issue) that catalogs for $12 for a mint copy and $5 for the used. Issue #30 which catalogs for a much lower value is along the same theme and together they form the mother and child set. This set can be acquired easily for about $5 in mint condition:



Among the stamps issued in the first twenty years, the most valuable issue is the UN NY Scott #38 10th anniversary souvenir sheet that catalogs for well over $100 for a mint copy. Used or FDC versions of the same set catalogs for one-tenth of that value. Nevertheless, in the world of serious philately, these are considered “very affordable”:



One significant issue from the 1980s with higher standing is the vast flags set issued in sets of 8 to 16 stamps at a time for a total of 192 stamps (originally 168 scattered between Scott Numbers 325 & 569). Although huge with the combined catalog value exceeding $200, the series can be acquired through eBay for around $50:


Philatelic themes also have an appreciative audience with the Pacific 1997 Earth Summit Souvenir Sheet (UN NY Scott # 708a) with the stamp expo inscription in the border cataloging at $25. The 1997 “Tribute to Philately” issue (UN NY Scott# 714 & 715) is another issue under the philatelic theme but they catalog for far less. Anniversary issues are again an extremely affordable popular theme.

Summary:

United Nations (UN) stamps have unique characteristics placing them in a well recognized area of collecting:

1. The designs and quality are graceful making for a good showing.
2. For the most part, affordability makes them suitable for new collectors in the philatelic world.
3. As they sell at a significant discount to face value, they are a frugal alternative for those residing near a UN office.

Among serious collectors, they do not thrive well at the moment. They have the unique characteristic that older issues catalog for a lower value than the more recent issues. For the budding collector with time and inclination, this provides for an opportunity to acquire the entire set of UN stamps ever issued. Further, as UN collection comes back into favor, there is always a chance that eventually many of these stamps could catalog for a higher value.

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Last Updated: 07/2011.