There is a well known investment strategy that says that investors should by stocks at Halloween and sell them at the end of April. Statistically, most market gains have occurred during that six month period, so the theory says to buy stocks then and when May comes, you should sell.

This time around, the 'buy at Halloween' plan would have been a bad move. With markets reaching their highs at the end of October, investors would have ended up buying the market high only to watch the market collapse. Now that we have finally had a good month, loyalists to the theory would have you sell.

I got a call from a client who asked what I thought about implementing the strategy on his account. I actually think that the market may be setting up for a nice spring and summer rally. It appears that the market has the potential to keep moving higher. While the economy slowed down, it didn't enter a recession, and corporate earnings have generally beaten estimates. Coupled with the economic stimulus checks that are supposed to be arriving in our mailboxes any day, this looks like the year that the 'sell in May and go away' strategy isn't going to be successful.

How about 'buy in May and watch your portfolio go up up and away!'?

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 4/30/08

Despite a weak economic environment, Japanese automaker Toyota Motor Corp. (NYSE: TM) is continuing its strong competition with rival General Motors Corp. (NYSE: GM) for the title of the world's largest automaker. The auto industry competition has become even stronger as new rivals appear in China, Russia, South America and other regions. In its attempt to claim sole dominance of the auto world, Toyota plans to gain ground in new markets by focusing on finding more efficient methods to build its cars.

One example of Toyota trying to think "outside the box," can be illustrated by a training practice put in place at the automaker's training center located inside its Motomachi assembly complex. The company has been having some workers using golf balls in order to exercise and make their fingers more flexible. A part of the training involves workers using their concentration to make two balls they hold in each hand roll in opposite directions. Sounds a little crazy, but the practice is designed to improve their skills on tasks regarding the assembly line of cars they build.

This is all aimed at accomplishing Toyota's plan of global domination. One thing that Toyota is aware of, and trying to improve upon, is its ability to run efficient operations in countries outside of Japan. Consider this... Toyota currently operates plants in 27 countries, with plans to build in even more locations. Where the potential trouble comes into play is the fact that key management jobs in each country are held entirely by Japanese executives who decide all the company's major operations and strategic plans.

Microsoft Corporation (NASDAQ: MSFT) is looking to take away business from Salesforce.com Inc (NYSE: CRM), with a CRM software as a service product that will be sold for free for the rest of this year to businesses with five or more users, according to Cowen. In 2008 and 2009, Microsoft's product will be sold at a large discount, compared with Salesforce's offerings. Next year, Microsoft plans to charge a promotional price of $39 per user per month, and in 2009 the price will go up to $44 per user per month, according to JMP Securities. That compares very favorably with Salesforce's list price of $65 per user per month for its professional edition.

The question is, how many customers will Microsoft take away from Salesforce with its low-price strategy? A majority of observers seem to believe that Salesforce's margins and sales will be at least somewhat squeezed by Microsoft's entrance into the market.

For example, JMP Securities forecasts that Microsoft's move may freeze some Salesforce.com sales cycles and put pressure on Salesforce.com's pricing. Cowen predicts that Microsoft will "challenge" Salesforce. ZDNet.com writer Joshua Greenbaum goes further, predicting that Salesforce.com "is the next Siebel," citing the access that Microsoft will give its mid-market customers to back-office enterprise resource planning systems as a key to Salesforce's impending demise.

But some believe that Microsoft's entrance into the software as a service party may be too late.

"Microsoft's late entry into the on-demand business ...could prove fatal to its effort to enter the market," said Gartner analyst Michael Maoz, as quoted by Computerworld writer Marc L. Songini. Maoz also notes that Microsoft will initially rely completely on its partners to sell its product, while Salesforce.com has a strong sales organization. Microsoft's service "only has a slight chance of succeeding," Maoz contends.

Actually, businesses that contemplate switching to Microsoft's CRM service this year may not view the offering as a totally free proposition. Business' IT professionals will most likely have to spend time learning the ins and out of the service, and then teaching the new system to other employees. There may also be a few kinks to work out when the companies begin using Microsoft's program. Some, if not many, businesses may balk at the disruption and the initial time demands in exchange for fairly insignificant savings, even over the long-term.

Also, Microsoft has been unable to become a major player in the past with its CRM software. It may be that there are some shortcomings in the giant's CRM products that putting them online and offering low prices cannot completely gloss over.

In the wake of the Microsoft news, even JMP is hedging its bets, leaving its "Market Perform" rating on Salesforce.com intact.

I encountered a fascinating article at Forbes.com. Writer Tara Weiss brings to light the fact that when accepting a new job, recruits should realize that they have a right and even a responsibility to take some initiative in negotiating their pay package. Think of it this way: After all the long hours of processing applications, reviewing resumes, and conducting interviews, if you are the individual who receives the offer for employment, that indicates you have a lot going for you. Don't be undersold. It's not an issue of pride. It's responsible economics plain and simple.

With the hope that you'll read Ms. Weiss's article, I'll take the proposition one step further. I submit to you that once you have become established in a job, don't let a job classification or title restrict you from asking for more. If you're not bound by the terms of a labor agreement through a union or other labor contract, then the sky's the limit, and I'm saying that you should go for it. Every employment situation offers opportunities for advancement and for income increase also. If you don't believe me, let me prove it to you.

The company I work for is historically tight-fisted when it comes to employee compensation. It's not that we don't generate enough profit to justify pay raises, but as a subsidiary of a larger entity that provides the lion's share of our workload, accounting is "manipulated" to push the profit up to the parent company. This is simple to prove when given the fact that, in a responsible business sense, any company that shows the minimal profit we do would be immediately shut down and those capital assets would be put to work elsewhere. This makes it tough for a guy like me to get ahead. I, however, applied a strategy that has performed for me all of my working years, and which is encompassed in the following ideal:

I don't work for my employer, I work for me. It's all about my own bottom line.

Based on an analysis of quarterly sector performance during the period 1995-2006, S&P 500 economic sectors that perform best in any given quarter tend to fare less well in the three months that follow. In contrast, groups that perform worst tend to improve their relative standing in the subsequent span.

So far this period, utilities and materials have been the best performers by a relatively wide margin. The laggards have been financials and consumer discretionary shares. If past trends hold true, it might make sense to shift sector allocations for the next three months away from shares in the winning sectors towards those in groups that finished at the bottom of the pack.

It's worth noting that this is a relative performance strategy. Some or all of the ten sectors could finish higher or lower next quarter, depending on what happens to the overall market.

Sector	Quarter-to-Date Return %
=================	====
Utilities	8.78
Materials	7.92
Telecom Services	4.80
Energy	2.07
Consumer Staples	0.99
Industrials	0.44
Health Care	0.24
=================	====
S&P 500	-0.08
=================	====
Information Technology	-1.02
Consumer Discretionary	-1.33
Financials	-3.86

Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle: An Insider's Guide to Successful Investing in a Changing World.

We've been seeing and listening to a lot of bad press about Wal-Mart (NYSE: WMT) for quite some time now. We've watched it toss out two major advertising firms without much explanation. We've watched it cut its margins in electronics and pharmaceuticals. We've watched its same store sales numbers flounder. We've seen it endure public relations assaults from the union and from political loud-mouths. It seems that an unending stream of bad news surrounds Wal-Mart. No one seems to have come to its rescue. Excuse me for being so bold, but someone must be doing something wrong.

What is required to get the good ship Wal-Mart back on course and up to full steam again? Ask around and you'll get precious few good answers. Have the folks in charge over there become so engrossed in stamping out their little brush fires that they've forgotten they have a business to successfully run? Hey Wal-Mart, I'll give you a hint: The best advertising agency in the world isn't going to save your asses if you continue being stupid about what you're doing. Your two big strategies of building new stores and trumpeting price roll backs have played out, folks. It's time to put your thinking caps on. Let me get the ball rolling for you.

Imagine an advertising campaign centered around the statement: Wal-Mart has created the most comprehensive and affordable health care plan ever offered to retail employees. Let your detractors get a hold of that! Yeah, it would cost you some money but it would put you in the drivers seat on the issue. Every other major retail chain would be put on the defensive. They'd be running willy-nilly trying to match what you have done. You would be in a position to point at your competition and ask why they don't treat their employees as well as you do. People would find new pride dropping their money at your doorstep. Take a lesson from SC Johnson Wax. They treat their employees like royalty (or at least not serfs!).

Next, instead of trying to broaden your focus and assuming that you can find some way to romance the jet set to shop your stores, why not simply build lease space on your spacious store campuses and invite the high end retailers to set up close to you? You don't sell the same class of goods, what harm could it do to your business? It's worked for the big malls for many years. Invite those who specialize in the expensive trends to locate closer to you. In the end, it'll increase your foot traffic. If you're smart about it and can restore your reputation and respect, you could even buy interest in some of those high end retailers and kick things up a notch.

You have shown some interest in organic foods and I've heard tell that you're considering restaurants in some of your stores. Here's a novel idea -- create your own branded chain of strictly organic, in-store snack and sandwich shops. You certainly have the resources. Offer organic health drinks and specialized snacks which cater to the health conscious among us (and having some kosher items available would be a good idea too). Remember the old avenue delicatessens? Yeah, that's what I'm talking about. Wal-Avenue Delicatessen, I can hear the cash registers now.

I could go on all day with this stuff but I have other things to write about. I'll leave you to ponder these concepts Wal-Mart. Go ahead, brain storm and toss my ideas around. I only want to see you get the naysayers off your backs. Nobody is winning in this game of pulling rugs from under each other, it's time for some work to get done. Stop flirting with corporate domination and get back to your creative capitalist roots. Just remember that for long-term success you're going to have to spend a few more dollars and the winners always serve their people first. I'm counting on you guys to swallow your pride and get the job done. Please don't let us down.

I haven't dug into Dell Inc. (NASDAQ: DELL) too deeply lately but I'm hearing noises that investors are beginning to get just a bit impatient with it. That's a bit odd to me considering that Dell has recorded anywhere from 13% to 17% growth for the year 2006. Dell has changed the position of Don Carty and I am yet to see exactly what it is saying in support of that choice. I don't find the placement of Carty to be a strange thing. What I do find a tiny bit curious is the recent quietness from Dell. We need for them to outline its game plan. I want some facts about where it's going and how it plans to get there. The market analysts seem to be saying that Dell needs to expand its marketing attack. What are Dell's plans?

I have long been a fan of Dell. I like the company and I like its products. I'm writing this blog piece on a Dell computer right now. I plan for my next computer to be a Dell also. When I bought this machine I got a lot more than I bargained for. Dell has replaced my modem twice. The first time it turned out that the problem was the fault of my (former) ISP. Dell helped us figure that out. The second modem the company replaced was due to a lightening strike. The fantastic part is this, neither replacement cost me a penny. Dell has gone the extra mile for me, to the point that I sometimes wonder if it made any money on this machine. The fact of the matter is this, Dell has unquestionably won my loyalty. That's one heck of a good way to do business.

Microsoft spends a lot of time in the hallowed halls of academia, and according to an article today from the AP,  more than most companies of its ilk. The company sponsors contests, research centers, and academic chairs, as well as giving deep discounts to students and faculty.

Sure, Bill Gates & wife are big on education through their foundation. But the AP warns this may not be all about altruism (and really? is anyone surprised here? oldest trick in the book, right?), but about persuading "young minds to become loyal to Microsoft products." The AP interviewed Bill, who told them that putting money into colleges and universities is "an investment" and there is a "commercial element ... [a] benefit to us that people have this exposure" while they're still impressionable. After all, he says, the idea of creating the next version of Microsoft Office or the Xbox console is way more fun than the idea of inventing the next, um, hamburger.

Following on Google's Wednesday press day (Live blogged by Brian and Sarah), Google is moving to "re-prioritize" its strategy around search.

The implicit rule at Google is employees follow a 70/20/10 breakdown of time -- 70% of time focused on the core business of search, 20% of time focused on related projects, 10% on unrelated business.

As reported by Forbes' coverage of press day, recent Google internal reviews showed that engineers were spending less than 70% of their time on the core business of search. The recent deluge of new Google Beta Products to hit the market is likely an explanatory variable.

Google is looking to realign itself this year and "systemize" all aspects of Google around "product investment," which is a change in business model and process but one that CEO Eric Schmidt thinks, "works very well." (Financial Times)

Search of course is not as straightforward as it once was. Yahoo! and MSN are both after this most-clicked feature of the Internet, and all the players are seeking to capture users through the evolution and personalizing of search to an extent that it becomes inextricable from web use and by virtue of captive users, cross-sells/cross-generates the most net revenue from each user. And, in the end, send the most dollars to the bottom line.