How To Get Started ......Last Updated 12/24/1999, 02/20/2000

Setting Up and Managing
Public Intellectual Property Acquisitions

1. Always keep in mind you are starting and/or operating a business that is involved with acquiring Intellectual Properties. These acquisitions can be accomplished through private or public transactions. Even though the day to day activities for most network members may be mostly in the public acquisitions arena you should always keep your eyes and ears open for private acquisition opportunities, they can be extremely profitable when available. Remember that your public acquisitions activity is for the primary purpose of purchasing Intellectual Properties, not playing the stock markets. There are many ways to play the stock markets and make money doing it, however the purpose of the Hannaian system is to understand and enter the public markets to facilitate the sole purpose of finding, acquiring and marketing valuable Intellectual Properties. This is necessary in our business because most holders of valuable Intellectual Properties will usually want to take their holdings public to maximize their potential for success in the modern global economy. Therefore we have no choice but to visit and transact business in these markets in order to maximize our opportunities to acquire and market valuable Intellectual properties.
2. Study all the articles and materials provided in the Hannaian Stock Research Center Menu
3. Since you are going to be operating this as a business start by establishing a business name, a business account, a business presence and environment. You must structure your business activity in order to maximize your success. Remember employers require you to be structured into a nine to five environment for a reason. You must provide some type of structured work environment to be successful.
4. Get the tools necessary to trade and invest in the public securities markets. We recommend getting the tools listed in the Hannaian Investment Tool Kit and sticking closely to the Hannaian materials and system while getting started. There is a tremendous amount of information and materials available today to work investment oriented businesses particularly the public securities markets. If you are not careful you can become confused and ineffective in your operations. We have attempted to provide the easiest route for you to get started, just follow our materials step by step and call on other more experienced members of the network for assistance.
5. As soon as possible you will need to open an account with a broker who will actually place your trades and investments for you. Open a Stock Trading account following the guidelines in Stock Investors Tool Kit, the article "Broker Notes & Comparisons, and listings from the Stock Research Tools Menu. The account can be opened directly through the Internet or by calling the broker.

   Our current Broker recommendation....... Ameritrade ….. They can be opened online from our stock Research Tools Page. We also recommend that you call the brokers in order to finalize the process.

6. Different brokerage accounts will have different funding and other requirements. As you progress in the business we recommend that you have accounts with several brokers. Our recommendation is to open a Margin Account which will usually require a minimum funding at $2,000 and allow you to trade on the "margin" or borrow against your account to trade. If you would like to open an account with less funds you may utilize SureTrade, AftTrade or even a full service broker which may require much less of a deposit. Although not widely publicized we understand you can open a non-margin account with a minimum of $500 with Ameritrade. Information on various brokers are available from the sources quoted above on the Hannaian website. For example you can open an account with SureTrade for $200. There are many factors which ultimately determine which broker you use. As you become familiar with the process you will pick one suitable to your personal needs.
7. At some point in the future if not right at the outset you will want to pay some attention as to whether you will open an account that will provide some type of asset protection against creditors and lawsuits. Accounts can be opened as joint accounts, limited family partnerships, corporate accounts, trusts etc., These are very important considerations and should be undertaken with professional legal and accounting advice based on your personal situation. When possible it is best to evaluate this at the beginning, but in order to get started right away you may plan to do this later since these processes may take some time to procure.
8. Either send by mail or wire your initial deposit to fund the account. We recommend wiring the funds directly from your bank, but mailing a personal check is also okay.
9. For public acquisition purposes provide some structure or habit to funding your account regularly. Even if your funds are small a regular deposit to the cash reserves in your account is an important tool. Remember its not the amount of money you have available that counts. It's the availability of some funds that's important.
10. At the time you are ready to make your stock purchases you would either call the discount broker or place the order directly over the Internet. We recommend that you place your first purchases by telephone to get familiar with the process before you begin placing orders directly over the Internet.
11. Review the stocks researched and reported in the Hannaian Stock Research Focus. Study and fully understand the rating system and its basis. You should probably use the listings in this report to initially find stocks to invest in until you feel comfortable in researching stocks on your own.
12. Research other stocks you may be interested in by using the Stock Research Tools page. Read specifically the article on researching stocks on the Investment Research Center menu.
13. Stock screens may initially be used to identify potential stocks in the ranges you are seeking. This can then be followed by looking at other research available on the Internet about the stock. The fundamentals can be researched through Yahoo, Quicken and other reporting sites. The SEC filings can also be evaluated.
14. The Intellectual Property holdings of the companies should then be fully evaluated based on principles espoused in the article "Understanding & Valuing Intellectual Properties."
15. A review of the message boards at Yahoo, Quicken Raging Bull and others may be informative but be careful not to rely on comments you read in message boards.
16. The Stock Research Tool Page contains numerous references and links to research sources, over a period of time you will end up using ones you become familiar with since many of them give the same type of information. You will find that some of them will be better for some types of research than others and you should make notes as to which ones to use, when and for what. Stay tuned to the various articles and newsletters and the stock research tools menu for updated Hannaian comments on these various research tools. These comments will be updated as necessary to assist you with changes as they become relevant.
17. Contact the Hannaian Stock Research team to seek research on particular stock, or to report research on I.P. stocks you feel may have potential.
18. Build a portfolio (group) of stocks which you will follow, invest, and trade in. Try to invest and trade in more than just one stock. Diversification among several stocks allows additional safety from losses, and also increases the opportunities to participate in price growth and benefits from several stocks.
19. Diversify your portfolio, not just for safety purposes but for opportunity purposes. Stocks go up and down daily. If you have your money spread on several stocks you have increased opportunity to have gains in some of them every day. Based on your ultimate strategy and circumstances this diversification for opportunity purposes will allow you to regularly have some stocks always in the money. You can then develop your trading strategy to buy and sell to produce a regular and consistent cash flow. Allocate your available monies wisely with this concept in mind. Remember do not spread your investments too thin since you must make allowances for brokerage and trading expenses which have to ultimately be covered by the profits you generate. Particularly when starting your public trading operations expose no more than 20% of your portfolio in any one stock. The only reason to even expose this much is that for small accounts under $1000 you need to have enough invested to cover the trading commissions. As your portfolio grows in value you will expose even less of it on any one issue.
20. Use Medved Quote Tracker or other stock tracking software to facilitate the tracking and following of stocks you are buying or following. These tracking software programs are available from the Stock Research Tools Menu.

    Current Recommendation……Medved Quote Tracker …It can be downloaded from the Hannaian Stock Tools Page.

21. Seek professional and other competent advice from others operating a stock trading and investment business when unsure or when additional assistance seems prudent. Call your Hannaian sponsor or the Hannaian office or a Hannaian publisher already involved and familiar with public I.P. acquisitions.
22. Remember to operate like a business. Like any other business to be successful you must spend enough time, effort and resources. Researching, acquiring, and following I.P. stocks must be worked as you would operate any other business you expect to make significant profits from. Do not expect success unless you put in the requisite time and effort.

• The recommendations made in this cook book approach to setting up your Public I.P. acquisitions are made simply to help you get started quickly. You may want to change these recommendations based on your experiences and personal situation after you become familiar with public I.P. acquisitions.