H.I.P.S.R.S. Investment Profile & Philosophy
.....Updated 2/20/2000, 2/25/2000, 3/14/2000, 6/05/2001

(Underlined italicized text represents the latest additions to this training guide. Underlined text represents the previous additions to the training guide)


The Hannaian Intellectual Property Stock Research & Investment System is designed for individuals who operate the public acquisitions of Intellectual Properties as a business rather than as a traditional investment program. The emphasis is on the investor/trader taking the ultimate responsibility for researching, acquiring and marketing Intellectual Properties himself. The system is designed to offer a business opportunity to the average man or woman to establish themselves financially and to allow them to participate in the economic process which makes America great. A primary objective is to educate and empower individuals so that they will recognize and achieve the means to gain financial success as independently as possible.

In short, the system is designed to train and support individuals in operating a highly structured and supported, self directed and controlled investment system. Individuals are encuraged and supported in learning how to invest and manage their own monies, and to take control of their own financial and investment future.

The philosophy of H.I.P.S. Investing & Trading is basically long term investments with trading in particular situations to maximize profits and to provide regular income. Hannaian publishing affiliates should always remember that the H.I.P.S. Investment and Trading system is not a comprehensive stock investment and trading service. The H.I.P.S. service was specifically developed to assist Hannaian publishing affiliates in the public acquisitions of Intellectual Properties (I.P.s). As such it is a very narrow and specialized approach to stock investing and trading, and designed for this specific purpose. There are many other ways to be involved with the trading and investment of public securities, but the H.I.P.S. system occupies its own little niche, the acquisition of valuable Intellectual Properties in a self-directed and controlled system. This point should always be remembered and adhered to.

An important philosophical tenet of the system is that an investor should only invest in a business or industry that he or she thoroughly understands. Understanding and researching Intellectual properties and their role in industry is extremely important, as is understanding the principles of investing and capital markets.

The Ultimate Business - Buying into Already Successful Businesses

A major part of the philosophy of the H.I.P.S. system is the notion that the ultimate business is the business of buying into other successful or potentially successful businesses. In addition the philosophy requires sticking to what you know and becoming specialized in it. Many successful investors, Warren Buffet, Charles Schwab etc. have espoused this philosophy and taken this approach. The simplest way to accomplish this is through the long term investment in the publicly traded securities of these companies. Another way of looking at it is to consider the alternative of starting your own generic business and having to put all the time, effort and resources into making it successful. The statistics of starting your own successful business are extremely low (See the Hannaian Training Guide "Private vs. Public Investments"). Buying into potentially or already successful businesses allows you to participate in the success of the business. It is as easy as purchasing your share of their publicly traded stock. You exercise your greatest legal right in business, the right to purchase of a piece of an already successful business when and where you desire, and no one can stop you but yourself.

The H.I.P.S.I.S. approach is based on the natural course of events that occur in business development. Businesses almost always start small before they grow large and successful. Our philosophy is to find the Intellectual Property rich companies in their early or rebuilding stages, buy into them and benefit from their major move into the ranks of the successful. The system is then focused on finding emerging growth companies with rich intellectual property holdings in their earliest stages of development when there stock price is as low as possible. The emphasis on intellectual properties in emerging growth companies selling at low prices affords the following:

1.......The potential for explosive and substantial growth with higher percentage returns than in larger cap, more established companies.
2.......Access to small price stock allows small budget investors to effectively leverage, maneuver and diversify holdings in the public securities markets without resorting to the additional risks of playing in the options and derivative markets.
3.......Increased amount of security and insulation from the risks associated with large cap or market sensitive stocks where inability to properly diversify, greater potential for absolute losses, and margin related losses come into play. 
4.......Emphasis on properly researching the quality of a company's intellectual property holdings significantly reduces the risks inherently associated with micro cap, penny stock type emerging companies.

Buying on Fundamentals, Selling on Behavior

A basic tenet of the H.I.P.S. Trading and Investment System is that acquisitions of I.P.s should always be made by researching the fundamentals of the purchase, and sales should be made on analyzing the behavior of the stock. In traditional investing terms this means that you generally follow the principles of traditional fundamental analysis in making your buys, and in determining when and how to sell you use technical analysis

Selling With Intent to Buy Back

Because a tremendous amount of research goes into the decision to purchase on sound fundamentals, most of the stocks purchased will be companies with a strong long term growth potential. Because of this and the basic long term investment philosophy behind H.I.P.S.I.S. most sales should be made with the "intent to buy back" the security and maintain the same or similar position previously held.

Therefore sales of stock are usually recommended only when the stock can be sold for a profit and bought back within a reasonable time thereafter at a reduced price. Sometimes the buy back may be at a higher price if the sale is made to preserve profits in an unpredictable situation. The position may then bought back at a premium where it is obvious that the stock has a lot more to gain and the premium buy back will allow significant gains in the future.

Fundamentals of Buying

Before a stock issue is purchased significant research should be done in the following four areas:

1. Research into the quality and value of the Intellectual property

2. Research into the quality and fundamentals of the company.

3. Research into the hotness and fundamentals of the sector

4. Research into the quality of the competition

Fundamentals of Selling

Selling is done by analyzing the technical charts, the behavior of the stock, and the percentage gain in the stock price. The entire system is based on percentage returns produced by the leveraged positions. Sales are primarily accomplishing by closely following and staying familiar with the behavior of the issue, evaluating the charts, and observing market trends and the specific news and circumstances surrounding the issue at the time of sale. In addition in the H.I.P.S. system because of its long term investment bias sales are usually made with the "intent to buy back".

Short Term Trading

In H.I.P.S.I.S. short term trading is done primarily in three specific situations when the predictability of the outcomes are heightened and the possibility for buy back at a lower price than the sale is increased. These situations are as follows

1. Hannaian Spikes (see Hannaian Training Guides)

2. Hannaian Drops (see Hannaian Training Guides)

3. Hannaian Rolls (see Hannaian Training Guides)

Trading with buy backs during these highly predictable situations allows increased profits, maintenance of positions and regular income for H.I.P.S. traders.

Operations as a Business

Another important philosophical tenet of the H.I.P.S. Trading and Investment System is that the program should be operated as a business with a thoroughly professional business approach to all facets of the operations. Participants must understand and accept the risks of being in business, and those risks in operating and managing the type of investments involved in H.I.P.S.. Operations of stock investments as a business also provides a consistency and averaging effect over time that affords the professional investor a much greater opportunity for success than the typical investor who follows the more traditional approach to stock investing.

Personal Education, Attention, & Consistent Following

A major aspect of the philosophy of H.I.P.S.I.S. is consistent personal education, attention, and close following of publicly acquired and traded I.P.s.. This is a critical component and perhaps the single most powerful philosophical tenet of the system, as it directly correlates to the amount of success that will be achieved.


The ultimate Hannaian philosophy of empowerment of the individual entrepreneur embodies the principle that "If you give a man a fish he'll eat for a day, but if you teach him to fish he will never go hungry."

Most people work so they can invest.....Why not make investing your work, and work at investing .........Hannaian

You must be "Opportunity Cost & Choice Conscious"....At any moment in time there is one best way or opportunity to use your money.... Our job is to find that opportunity...This is what you should always be seeking.......Hannaian


Hard Work
You have to be willing to do the things today other people won't do
..... in order to have the things tomorrow other people won't have.
.....Les Brown

For Further details of the Hannaian Business network and its associated business opportunities visit the Business Opportunities Section of the Hannaian Publishing Website at http://www.hannaian.com/distribr.htm

Copyright 2000 Hannaian U.S.A., All Rights Reserved Worldwide