Option Strangle Magic » money

Strategies for Maintaining Peace in the Niger Delta Region of Nigeria

admin — Tue, 19 Jan 2010 21:06:43 +0000

INTRODUCTION:The Niger Delta, an area of dense mangrove rainforest in the southern tip of Nigeria, comprises nine of Nigeria’s thirty-six states: Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers. The region’s oil accounts for approximately 90 percent of the value of Nigeria’s exports, but the Niger Delta remains one of Nigeria’s least developed regions. Although there had been conflicts in the oil regions of Nigeria between the host communities and oil extracting companies since the discovery of oil in Nigeria, recent conflicts began to surge appreciably in the late 1990s. Consequently, in 2000, the government of the former president of the Federal Republic of Nigeria, President Olusegun Obasanjo created the Niger Delta Development Commission (NDDC) to help end the violence and spur socio-economic development. Yet, during and after the run-up to the 2003 presidential election, violence between rival militia groups and against the oil corporations increased considerably. Facilitated by poverty intensified by conditions stated at http://globalinterchange.wetpaint.com, political disenfranchisement, and the easy availability of firearms, armed groups fought each other over the control of illegally acquired oil and engaged in violent acts against oil companies, such as kidnapping key officials of the oil companies(especially expatriates). THE MASTER PLANEfforts of successive administrations to correct these anomalies translated to minor successes. The Oil Minerals Producing Areas Development Commission, OMPADEC, was to ensure development got to the oil producing States. The Niger Delta Development Commission (NDDC), given the promises that preceded its birth has not made the type of impact people in the region expected. The same politics and greed that have always placed the interests of a tiny few above the people, hijacked NDDC from inception. AFTER decades of obvious official neglect, it is heart-warming that a Niger Delta Regional Development master plan to be supervised by Niger Delta Development Commission, NDDC, has been drawn up. The development plan with a duration of 15 years is to gulp $50 billion (about N6.4 trillion).The master-plan, as stated in http://globalinterchange.wetpaint.com, is a comprehensive analysis of the life development imperatives, challenges and opportunities in the Niger Delta which puts into perspective the economic growth; human and community needs, institutional development, physical infrastructure and natural environment of the region.BENEFITS OF THE MASTER PLANNothing should be allowed to stall the successful implementation of the master plan. The funding has been spelt out in the 2000 NDDC Act as follows – Ecological Fund 50 per cent; Federal Government 15 per cent; oil and gas industry three per cent; and 29 per cent from other sources.Proper development of the Niger Delta region would create more global economic opportunities in the area, stable oil and gas prices, which means more income for the government, in addition to the most needed peace.All parties involved in the implementation of the master plan should do their best to provide the resources to remove the blight that the Niger Delta has become. Government has to provide leadership in this direction. In view of this, the partnership between one of Nigeria’s foremost banks, the United Bank for Africa Plc and the Niger Delta Development Commission (NDDC) in order to ensure the success of the Master Plan should be commended. The success of this task does not only rest on providing the necessary infrastructure for the socio-economic development of the people of the Niger-Delta, but the people themselves must be involved from the policy formulation stage. We must not assume that we know what the people need. That was the mistake made by past administrations at various levels of government and the organizers of the master plan must not allow their intervention and participation in this plan to go the same way.The main focus of this work therefore will be to critically consider and discuss some key success management factors that may make or mar the success of the Master-Plan.SUCCESS MANAGEMENT FACTORS Before funds are deployed in respect of the Master Plan, the organizers should consider the following critical factors:(a) The Niger Delta Peace and Security StrategyThe organizers, in working to ensure the success of the Master Plan should lay emphasis on linking peace and development—the same strategy adopted by the oil and gas companies in the region and one that complements the work of the NDDC. Concerted efforts should be made to determine how the skills of the armed groups can be harnessed for positive purposes.In this regard, a peace and security strategy to be formed by the organisers to aid the master plan, should target the corporate, media, governmental, international, and non-governmental organizations (NGOs) to address oil corporations’ responsibility toward the Niger Delta. It should also focus on mechanisms to reduce oil theft; media practices in reporting violence; reconciliation between groups; illegal arms importation; disarmament, demobilization, and reintegration of militia groups; human capital development and employment/urban youth policies; early warning systems; money laundering; and good governance. (b) Violence and Conflict Resolution Efforts in the Niger DeltaPrevious governments largely ignored the Niger Delta, partly because its geography made it relatively inaccessible. The long period of military rule in Nigeria contributed to bad governance and corruption; and the burden for the provision of government services fell to oil and gas companies, which were ill equipped to supply water and electricity and maintain road networks. The magnitude of this neglect has been an important factor behind the violence in the Niger Delta, which is carried out by social groups or street gangs, referred to by many as “cults.” These groups—made up of youths from the Niger Delta —originated with the intention of offering physical protection and providing its members with an opportunity to meet people with similar ethnic or social identities. In time these groups (now known as Militants of the Niger Delta) acquired arms and also began to compete with each other over oil bunkering.The most recent violence in the Niger Delta grew out of the political campaigns in 2003. As they competed for office, politicians in Rivers State—a focal point of violence in 2003—manipulated the Niger Delta Vigilantes, led by Ateke Tom, and the Niger Delta People’s Volunteer Force, led by Alhaji Asari Dokubo. Exacerbating rivalries, political candidates used these groups to advance their aspirations —often rewarding gang members to commit acts of political violence and intimidation against their opponents. The conclusion of the 2003 electoral period did not end the violence. The Niger Delta Vigilantes and the Niger Delta People’s Volunteer Force continued to fight each other throughout 2004. The hostilities peaked when over 300 commanders of the Ijaw ethnic group announced that if the government did not change conditions in the Niger Delta, they would take action against both the government and the oil installations. In September 2004, the former president Obasanjo invited Ateke Tom and Alhaji Asari Dokubo to the capital city of Nigeria, Abuja. And on October 1, 2004, a peace agreement was signed between the two groups.Following the peace agreement, various concerned groups worked with the Rivers State Government to disarm, demobilize, and reintegrate members of the armed groups. More than 3,000 weapons were handed in and publicly destroyed. In December 2004, the former combatants requested a reconciliation church service to acknowledge the violence they had inflicted. In January 2005, a camp was organized for the former combatants to help reorient and reintegrate them into society. A program beginning in February 2005 provided over 2,000 youths with technical skills and training. However, the program did not provide jobs for these youths after their training. Moreover, due to the lack of an overall strategy, a coordinating agency, and a community-based program, the disarmament, demobilization, and reintegration program was never completed. Thus the gains reaped in September and October 2004 gradually evaporated. Now, after the 2007 elections, many fear a resurgence of violence in the Niger Delta and worry that politicians may once again mobilize youths for political ends. The threat of violence is exacerbated by international arms dealers who continue to find Nigeria a lucrative market and by neighboring African states that recruit Nigerians as mercenaries, creating a reservoir of people with the means and the motive to maintain a violent atmosphere. (c) Human Capital Development and Employment/Urban Youth Policies: Concerned that demobilization and disarmament may increase the amount of cult group and illegal activity, as former insurgents will not have options for employment, job creation strategies must be comprehensive. As such, human capital development and employment strategies pursued by the Peace and Security Working Group will include developing a profile of cults, such as incentives behind their formation, leadership, membership, and territory. Additionally, the Peace and Security Working Group should consider suggestions at http://globalinterchange.wetpaint.com , and work with oil and gas companies in the Niger Delta to develop leadership skills and the NDDC to create jobs. As a priority, emphasis should be placed on finding economic opportunities for the youth of the Niger Delta. Below are some of the employment opportunities that can be extended to the people of Niger Delta:• The government can look at the possibility of establishing a public works program; developing sectors outside of oil and gas, which are traditionally not labor-intensive industries; and special employment set-asides for the Niger Delta’s residents. • The Nigerian National Petroleum Company (NNPC) can be made to assume the responsibility to monitor that 25 percent of management positions and 67 percent of staff positions in the oil and gas companies go to those from the Niger Delta. • Cleaning up the Niger Delta communities might also serve as a way to engage the youth and address the environmental damage by the oil industry. (d) Corporate Responsibility: Oil and gas corporations remain the target of grievances by local groups in the Niger Delta. A committee on corporate practices should be formed by the organizers of the Master Plan (although it may be chaired by the senior staff of NNPC) to examine the causes of conflict and corruption, how to increase corporate transparency, and how to more effectively enforce good policies. Oil companies and the government should be encouraged to increase transparency by instituting the “publish what you pay” system where the government reports all revenues received by oil corporations. Alternatively, they can initiate and monitor a Permanent Fund system—where residents receive an annual dividend from oil’s proceeds—this can be adopted as a model for the Niger Delta to increase resource transparency.(e) Reducing Oil Theft: Oil theft is one of the major causes of conflict between rival armed groups as illegally acquired oil is sold on black markets for high profits. Indeed, as the price of oil increases, the loss to the state increases as well. For example, when oil stood at $20 per barrel, the Nigerian government lost $3.7 billion per year; when oil prices rose to $30 per barrel, the Nigerian government lost more that $6 billion annually. There should be a working group to coordinate efforts with local, state, and federal authorities to understand the factors that facilitate oil theft. Focusing on the external markets, it will launch an international campaign against oil theft. However, the most effective strategy to stop the thievery should be to create alternative sources of income.The situation is degenerating very fast as the militants have discovered a cheap way of making money through hostage taking. The militants started by kidnapping expatriates who were released after the payment of heave ransoms (although this has been denied by top government officials and the Nigerian press). The situation has reached the stage where the militants now kidnap children of wealthy Nigerians. The hostages were also released after the payment of ransoms.(f) Media Relations: News reports play a large role in sensationalizing and thus exacerbating conflicts. Subsequently, part of the peace and security strategy is working with the media on how they report conflicts in the Niger Delta and ensuring that the media fully understands the purposes of the working group. (g) Reconciliation Processes: Initial reconciliation efforts will begin with the Ogoni conflict in Rivers State, which dates back to the mid 1990s. In time, this will serve as a model for settling grievances of other groups in the Niger Delta—demonstrating an alternative to violence as a means to settle disputes. (h) Arms Importation: The easy acquisition of small arms and light weapons in the Niger Delta undermines disarmament and demobilization efforts. There should be a Peace and Security Working Group working with local, state, federal, and international agencies, the Peace and Security Working Group will undertake efforts to reduce illegal arms importation; facilitate the exchange of information between relevant agencies; and review the accountability standards of local and international weapons’ manufacturers. A particular focus will be to curb the illicit arms trade at the international level. (i) Disarmament, Demobilization, and Reintegration: Previous attempts at disarmament, demobilization, and reintegration did not succeed due to the absence of a coordinating body and alternative employment possibilities. In this regard, the new government should plan a more comprehensive approach that will address the incentives of groups to hold arms; implement “best practices” from successful programs; institute a process for destroying weapons; invite international observers to monitor disarmament processes; and ensure coordination between disarmament, demobilization, and reintegration efforts. In addition, the reintegration programs will include meaningful employment opportunities.(j) Early Warning: It is indeed necessary to design a system for early warning of conflict. Devising a comprehensive early warning system on impending violence will require the integration of local networks, investment in effective communication methods, building the capacity of governments and NGOs to respond to crises, and recruiting experts to design conflict analysis methods appropriate for the Niger Delta. (k) Money Laundering: Money laundering activities undermine the search for peace and the creation of legal markets in the Niger Delta. Thus, in coordination with international financial institutions, NGOs, and government agencies, the government should devise means to prevent money laundering in Nigeria and means to return money that has been stolen (as occurred with funds taken by former head of state, late General Sani Abacha). Senior government officials must be transparent in the handling and disbursement of such stolen monies.In summary, previous governments in Nigeria had unsuccessfully tried to solve the Niger Delta problem mainly because they overlooked or ignored the above issues which are fundamental to the success of any peace and development programs in the area. N.B:Due to popular demand, I am pleased to inform you that I have just written a book titled, MASTURBATION: How to Overcome and Quit the Habit.

I strongly advise everyone interested in this article to purchase my new book titled – MASTURBATION:How to Overcome and Quit the Habit. You can get the ebook version from the following link,

http://stores.lulu.com/store.php?fAcctID=3962841

While those interested in having the printed and bound copy of the book should send me an email via: donationsglobal@yahoo.com Please quote REQUEST FOR BOOK on the subject line, to distinguish your mail from spam mails.

10 Strategies: an Overview

admin — Wed, 13 Jan 2010 09:41:38 +0000

Fast Profits in Hard Times will teach you everything you need to know and give you specific resources (websites, toll-free numbers, etc) to implement the following 10 strategies:

1. Invest in Tax Liens

Buy liens placed on properties by municipalities because owners have fallen behind in paying their property taxes. Then, when the property owners pay what they owe to the municipalities, receive not only a return of your principal but also a penalty interest rate set by the municipality, typically in the range of 8% to 25%. If the property owner defaults altogether, take possession of the property for a fraction of its real value: the sum of the back taxes you’ve already advanced. You can then sell the property, even a bit below its market value, for a huge profit.

2. Buy Real Estate Below Market Value

Identify real estate sellers who are willing to accept less than their property’s full market value for a variety of reasons. Then resell the property immediately at a profit, rehab it, rent it out, or even live in it yourself, all with the built-in financial cushion of having purchased the property for far less than it is truly worth.

3. Invest in Income Trusts and Master Limited Partnerships

Earn high yields of 8% to 13% by investing in trusts that extract or transport natural resources such as oil, gas, coal, or timber. Such trusts pass a large amount of their earnings directly to investors through monthly dividends. Depending on the trust or MLP, some of the distributions may be considered a tax-free return of capital, boosting your after-tax return even more.

4. Invest in High-Yield Stocks

Invest in stocks with stable businesses that pay dividend yields of 5% to 15% or more. Some industries offering such high yields include electric utilities, oil tankers, and real estate investment trusts, and several broad-based closed-end mutual funds. This is a way to make your capital compound with very little risk when you reinvest the dividends or to boost the income you live on if you take the dividends in cash.

5. Enroll in Dividend Reinvestment Plans

Invest in companies that offer Dividend Reinvestment Plans, known as DRIPS, which allow you to use dividends to purchase shares directly and thus bypass brokerage fees. Automatically reinvest dividends back into further stock purchases, thereby compounding your portfolio’s assets over time. Several companies offer discount DRIPS, meaning that you get an additional 2% to 5% bonus every time you reinvest dividends, compounding your return even more at no additional cost to you. So if you get $100 in dividends, you receive $105 worth of stock when you enroll in a 5% discount DRIP.

6. Buy High-Yielding Bonds

Buy bonds of companies, municipalities, or foreign governments, either individually or through open and closed-end funds, which pay yields of 5% to 12%. In addition to the high rate of interest, you will receive the return of your principal when the bond matures. There are many types of hybrid bonds available in today’s market with catchy names like STRIDES, ELKS, MITTS and HITS which offer guaranteed return of principal, high yields and potential bonuses based on how the underlying instruments perform.

7. Use Put and Call Options

Rather than buying and selling actual stocks or stock indexes, you can, for a fraction of the cost, trade rights to buy and sell those stocks or stock indexes at specific prices within a specified period of time up to two years into the future. This form of leveraged trading allows for far greater gains but also runs the risk of far greater losses than normal stock investing. It is therefore imperative to follow careful strategies that limit risk while optimizing profits.

8. Profit from Foreign Exchange Trading

Trade one currency against another currency, on the expectation that the currency you’ve bought will gain in value relative to the one you sold. This provides a convenient way to profit from the decline of the US dollar against most major foreign currencies.

9. Invest in and Broker Cash Flow Opportunities

Identify people and/or businesses willing to sell future receivables at a significant discount in exchange for ready cash. Then either buy the payments yourself or serve as a broker for a third party, typically a large financial company, which provides the funds. For example, you can broker or buy cash flows from lottery winners, lawsuit winners, mortgage notes or reimbursements due to a doctor’s office from insurance companies or Medicare.

10. Set Up Passive Income Strategies

Set up some kind of system that needs minimal ongoing management but continues to produce significant cash flow far into the future. A few examples include:

placing vending machines in high-traffic locations to collect passive income whenever customers make purchases

placing ATMs or point-of-sale (credit/debit/card swipe) machines in high sales volume locations to earn small fees paid by merchants whenever customers use the machines

Buy high-quality timeshares in desirable locations and seasons and rent them out over the internet to earn substantial rental income

The above is an excerpt from the book Fast Profits in Hard Times

by Jordan E. Goodman

Published by Business Plus; January 2008;$23.99US/$27.99CAN; 978-0-446-58156-1

Author

Jordan E. Goodman is a former Money magazine journalist and the author of several bestselling books, including Everyone’s Money Book, The Dictionary of Finance and Investment Terms, and Master Your Money Type. He provides financial advice to millions of people each month through regular appearances on radio call-in and TV shows and through his seminars to corporate, association, and university audiences. He has been a regular contributor to NBC News at Sunrise, The Marketplace Morning Report on Public Radio, and many other shows.

Understanding Stock Option Trading

admin — Sat, 28 Nov 2009 10:31:08 +0000

Stock option trading has always given the traders additional work of not just predicting correctly the security’s price. They also must choose the best option for trading strategies. But most stock traders incorrectly figure they can easily make the change from stocks to options.In order to make systems on option trading an on-going basis, the trader needs to fully understand the major differences between the stock and the option trading.With the options buying, time is the enemy. If each day passes without enormous changes, the value of the premium time will decline. In order to solve it, the value of the time premium should be declining more rapidly as the option reaches its expiration. The significant factor that option traders need to evaluate is the amount of time that is probable for a move in the stock to take place. Buying close to a stock’s low may be supportive as a strategy, but if the trader is obliged to wait too long in an options position, the loss of time could more than devastate a reasonable gain in the original stock.Most of the options analysts will inform traders to focus on the volatility assumption within the different options pricing model, for the reason that is the only aspect the standard options model assumes to be indefinite. The reason behind this is the Efficient Market Theory notion that stock prices cannot be predicted in the future. There are a lot of times traders that are way too positive in the scenarios they input, and a way to restrain this is by applying one of the following two tactics: The traders who want to make use of more conservative tactics can either choose to buy one strike further in-the-money or they can buy the next expiration month further out than they think they will be needing.Understanding all the commodity features and other option contracts is very important before investing into those kinds of contracts. You ought to know in advance the rules so that you can guesstimate whether you are competent of handling your obligations.The option trading systems and the futures which have been explained are inherently risky and very intricate. The investors need to recognize that this alternative does not pertain to all of them. In the case of investing, you need to know from the start how much you can lose and earnestly evaluate if you can afford to lose it in the analysis of your financial resources and the investment goals. You need to share your different conclusions with a broker in order to discuss if your decisions are sound and wise. If you think that you are most capable, willing, qualified and you have all the reasons to invest in the option trading and the futures, you also need to settle on the extent to which you wish to proceed, trusting your own intuition after consulting with a broker.