Investment Confidentiality

Investment confidentiality must be demanded by stock owners. If your stick is held by a bank or brokerage firm, it must reveal your name to the company if asked, unless you request anonymity in writing.

Mailing Stock Certificates To Brokers

Send stock certificates unsigned via registered mail. This way, they’re non-negotiable. Then, under separate cover, mail the broker a stock-power form with your signature and the number of shares in the transaction, which authorizes the broker to sell the stock.

Do-It-Yourselfers Save Money

Reduce the cost of investing in government securities by cutting out the broker. How it’s done: For Treasury bills, notes or bonds, send a letter to the Federal Reserve Bank or one of its branches. Specify the securities to be bought and, for notes and bonds, the name they’ll be registered in. Enclose a check for the face amount of the securities ($10,000 minimum for bills, $5,000 for short-term notes and $1,000 for bonds). Postmark your letter by midnight the day before the next security auction. The Fed will send you a receipt, and a refund of the discount determined at the auction.

Cyberlux Enters into $3.4 Million Contract with National Guard Bureau

Cyberlux Enters into $3.4 Million Contract with National Guard Bureau for 200 BrightEye Dual Lighthead Tactical Illumination Systems Purchase

Company Also Announces 200:1 Split Effective July 28, 2010

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Cyberlux Corporation, (OTC Bulletin Board: CYBL), a leading provider of LED lighting solutions, announced today that the National Guard has purchased two-hundred Dual Head BrightEye Tactical Lighting Systems to be immediately deployed throughout the United States.

The Cyberlux BrightEye has long been recognized as an innovative and dependable LED lighting solution within the various branches of the military because of the qualities it possesses that are unavailable in traditional lighting systems. Unique to the marketplace, the BrightEye Systems provide broad area visible white lighting and night-vision compatible IR lighting capable of operating all night on an advanced battery power system.

“Needless to say, we could not be more excited that the National Guard Bureau has chosen to purchase 200 of our Dual Head BrightEye systems for their tactical lighting requirements and we have already begun shipping systems. We intend on fulfilling this order flawlessly, as this level of exposure within the National Guard should allow us additional opportunities of the same magnitude throughout the military and governmental channels,” said Mark Schmidt, CEO of Cyberlux Corporation. “Equally as exciting, with the significant cost savings Cyberlux has implemented over the last 18-24 months, this purchase order provides our company the cash flow to effectively continue the reorganization efforts we began last year. While never an easy decision, the restructuring of our outstanding share count is required for all our efforts to be realized not only internally but externally to the benefit of our shareholders. Having our overall business model begin to take shape, specifically with our military channel now producing sizable results, we remain excited about the future,” added Schmidt.

The Cyberlux Tactical Illumination Systems are designed as highly portable, visible illumination systems with night-vision compatibility for mission-critical tactical lighting where rapid deployment and high-intensity lighting capability are required. Using advanced optics, advanced solid-state lighting technology and light-weight advanced battery power, all contained in easily transportable wheeled cases, the Cyberlux Tactical Lighting Systems provide broad area visible white lighting and night-vision compatible IR lighting capable of operating all night, with is unavailable in traditional lighting systems.

 

About Cyberlux Corporation

Cyberlux Corporation (OTC Bulletin Board: CYBL), a leader in solid-state lighting innovation, has developed breakthrough LED lighting technology that provides the most energy efficient and cost effective portable lighting solutions available today for military and commercial uses. For more information, please visit www.cyberlux.com.

 

Investor Contact:

Richard Brown, rbrown@cyberlux.com / 617-314-7379 

 * Source: Business Wire 

Recovering Damages

Collecting damages from brokers for investment losses will be more difficult, even in cases of excessive trading (or "churning"). A May, 1985 ruling, Dean Witter Reynolds v. Byrd, allows such claims to be arbitrated by the stock exchanges and the National Association of Securities Dealers, with compensation allowed for actual losses only. Churning has always been hard to prove anyway, since excessive trading for one investor is ofter acceptable for another.

*Source: Forbes, 60 Fifth Ave., New York 10011

Rules for Picking Common Stocks

Try to buy the industry leader or, at the very least, a company that has an important position in its industry. 

Look for an industry with a limited amount of competition. 

Avoid an industry that is an essential part of the Gross National Product or the Consumer Price Index, such as autos or steel. Reason: Highly visible companies are east targets for government pressure. 

Stick to stocks that have price/earnings ratios lower than that of the Standard & Poor's 500 index.

The stock should yield at least 4.5 % to 5%.

The company should have a record of significant dividend increases.

The market price of the stock should be close to book value per share.

Both the industry and the company should have growth rates higher than the median of American business. One rule of thumb: Sales and earnings ought to have doubled over the past decade. If they haven't, you probably won't be able to keep ahead of inflation in the years ahead. 

Stay away from companies that are too heavily in debt, especially in relation to industry-wide standards.

Look for companies where managers are owners, too. Nepotism can be a danfer in suc situations. More often, though, owner-management is a big plus. Owner-managers have a real incentive to keep the company growing, as well as to boost the stock's value. 

While you may not find a stock with all these characteristics, insist on at least these two: It should be in a growth industry with owner-management.

*Source: Roy Papp, incesment counselor, 5631 Echo Canyon Circle, Phoenix, AZ 85018

Bond-Buying Strategy

The classic bond-buying opportunity when interest rates drop: Investors can lock in high yields and defer interest income, too. One study calculates that 20-year, AAA-rated industrial bonds rose an average of 15.6% during five interest rate seings. These seings, from peak to trough, usually lasted for about one year.

Conservative strategy: AAA-rated coporates or Treasury issues.

Aggressive strategy: Lower-rated issues that swing more in price, providing greater tax deferral (and greater risk). However, even speculators avoid bonds rated lower than A when the depth of recession is not completely clear.

Easy Profit for Small Stockholders

Some companies are willing to pay a premium of 10% to buy back small holdings (under 100 shares). It helps them cut the cost of servicing minor shareholders. There's no broker's fee for selling holdings directly to the company.

Options As Indicators

Often the first sign of a rally in a stock is increased activity in its options.


Recommended: Look for newcomers on the "Most Active Options" list in The Wall Street Journal.

The R&D Indicator

The amount of money a corporation spends on research and development is a good guide to its earnings prospects. Generally, the higher the expenditure in relation to sales, the greater the company's emphasis on new-product development. 

Benchmark: 5% of annual sales spent on research is considered a sizable commitment to research spending.

*Source: Merrill Lynch Stockfinder Research Service, 165 Broadway, New York 10080