Changewave Research: 2004 Alliance Membership Survey Results

ChangeWave Research: 2004 Alliance Membership Survey Results

ChangeWave Research Report:

Alliance 2004Membership Survey Results

The AllianceRates the Alliance

Overview

This report presents the findings of a ChangeWave Alliance Membership Survey, conducted between April 21 and May 21, 2004.A total of 1,813 members participated.

The purpose of the survey was to getmembers’thoughts and ideas on theAlliance investment intelligence service - including the components that members find work best, their personal likes and dislikes, and their opinions on key aspects of the program. The survey also focuses on member thoughts and opinions of theChangeWave Investingadvisory service.

Part One of this report presents the overall findings of the survey, and Part Two the specific likes and dislikes of members with regards to the Alliance program.

Since the survey is focused on the Alliance itself, we have opted to refrain fromany commentary. This then, is the Alliance members themselves rating the ChangeWave Alliance.

Paul Carton, Ph.D.

Executive Director

ChangeWave Alliance

The ChangeWave Alliance is a group of 4,600 highly qualified business, technology, and medical professionals in leading companies of select industries—credentialed professionals who spend their everyday lives working on the frontline of technological change. ChangeWave surveys its Alliance members on a range of business and investment research and intelligence topics, collects feedback from them electronically, and converts the information into proprietary quantitative and qualitative reports.

Helping You Profit From A Rapidly Changing World ™

Table of Contents

The Findings...... 3

Alliance Likes and Dislikes...... 13

Alliance Likes...... 13

Alliance Dislikes...... 21

ChangeWave Research Methodology...... 25

About ChangeWave Research...... 26

I. The Findings

The ChangeWave Alliance Service

1. Question Asked: For how long have you been a member of the ChangeWave Alliance?

Alliance Satisfaction Levels

2. Question Asked: Looking back at your ChangeWave Alliance experience, how satisfied are you with the following aspects of the service?

Overall Program / %
Satisfied / %
Unsatisfied / Very Sat / Some Sat / Some Unsat / Very Unsat
Ease of Participation / 96% / 3% / 72% / 24% / 2% / 1%
Quality of Information Presented / 93% / 5% / 49% / 44% / 4% / 1%
Comprehensiveness of Service / 93% / 3% / 45% / 48% / 2% / 1%
Products, Surveys, Website / %
Satisfied / %
Unsatisfied / Very Sat / Some Sat / Some Unsat / Very Unsat
Alliance News & Info Newsletter / 93% / 4% / 54% / 39% / 3% / 1%
Alliance Reports / 92% / 4% / 46% / 46% / 3% / 1%
The Alliance Surveys Themselves / 91% / 5% / 37% / 54% / 5% / 0%
The Alliance Web Site / 84% / 7% / 36% / 48% / 6% / 1%

Alliance Satisfaction Levels

Personal Benefits / %
Satisfied / %
Unsatisfied / Very Sat / Some Sat / Some Unsat / Very Unsat
Service Helps Me With My Investments / 85% / 12% / 39% / 46% / 10% / 2%
Service is Targeted to My Needs / 84% / 12% / 28% / 56% / 11% / 1%
Service Helps Me Professionally / 66% / 18% / 19% / 47% / 16% / 2%
Miscellaneous / %
Satisfied / %
Unsatisfied / Very Sat / Some Sat / Some Unsat / Very Unsat
Monthly Time Commitment / 91% / 4% / 48% / 43% / 4% / 0%
Alliance Application Process / 79% / 5% / 37% / 42% / 5% / 0%
Member Customer Service / 64% / 5% / 31% / 33% / 4% / 1%

3. Question Asked: Considering all aspects of the service, which of the following are the most important reasons why you participate in the ChangeWave Alliance?(Choose No More Than Four)

4. Question Asked: Focusing specifically on the Alliance reports you receive (e.g., Macroeconomic, Industry, Company and Consumer), which of the following types of reports do you prefer most?(Choose No More Than Two)

5. Question Asked: Overall, how satisfied are you with the ChangeWave Alliance service?

Alliance Likes

6. Question Asked: Next, can you tell us something you especially like about the ChangeWave Alliance?

A total of 47% responded to this question with a specific “like” about the ChangeWave Alliance (see chart below).

A total of26% responded to this question with a specific “like” about ChangeWave Investing. Note that these responses are not included in the summary chart below.

Please note that out of the total sample of respondents, 27% did not respond to this question.

Likes – ChangeWave Alliance

(Actual responses are contained in Part II, Section A of this report.)

Quality of Information/Timeliness/The Reports/
Unbiased/Accurate/Alliance Newsletter / 16%
Objectivity of Research/Quality of Research Process/
The Surveys Themselves / 11%
Tracking Trends/Tracking Sector Change/
Emerging Technologies / 10%
Ease of Use/Clear and Concise / 2%
Opportunity to Participate in Alliance Community / 2%
Uniqueness of Information / 1%
New to Service / 2%
None / 0%
Other / 2%
No Answer / 27%

Alliance Dislikes

7. Question Asked: Can you tell us something you especially dislike about the ChangeWave Alliance?

A total of 15% of members responding to this question said there was “Nothing They Disliked.”

A total of 16% responded to this question with a specific “dislike” about the ChangeWave Alliance (see chart below).

A total of29% responded to this question with a specific “dislike” about ChangeWave Investing. Note that these responses are not included in the summary chart below.

Please note that out of the total sample of respondents, 41% did not respond to this question.

Dislikes – ChangeWave Alliance

(Actual responses are contained in Part II, Section B of this report.)

Nothing That I Dislike / 15%
Website Problems/Login Problems/Hard to Navigate/Don't Like Website / 2%
Surveys Not Targeted to My Expertise/Industry/Company / 2%
Surveys Too Long/Poor Survey Presentation/Dislike Survey Questions/Surveys to Frequent / 2%
Reports Too Long/Reports too Analytical/Confusing Info in Reports
(i.e., net change score) / 2%
Too IT Focused / 0.5%
Want More Interaction with Alliance Members / 0.5%
Confused as to How to Apply the Research to Stock Picks / 0.4%
More Data Wanted / 0.4%
Information Not Useful/Accurate / 0.4%
Too Much Email/Advertisements / 0.4%
New to Service / 0.7%
Other / 5%
No Answer / 41%

8.Question Asked: Overall, how satisfied are you with Tobin Smith's ChangeWave Investing service?

9. Question Asked: Some members have told us they participate in the Alliance primarily because they value its reports (Macro, Industry, Company, Consumer) and bi-weekly News & Info newsletter for both professional and investment purposes. Other members say they participate in the Alliance primarily because they value the ChangeWave Investing service and its weekly recommendations and Alerts on stocks. How about yourself?

II. Specific Alliance Likes and Dislikes

Section A (pp. 13-20) focuses on what members say they especially like about the Alliance.

Section B (pp. 21-24) focuses on what members say they especially dislike about the Alliance.

Note that all of the comments focus on the ChangeWave Alliance (likes and dislikes). Comments that were specific toChangeWave Investingare not included.

A. Alliance Likes

Question Asked: Can you tell us something you especially like about the ChangeWave Alliance?

Sample of Alliance Member Responses

a.Quality of Information/Good Information/Timely/Reports/Unbiased Info/Accurate/News & Info (16%)

ALA8640 writes, "I do not wish to spend too much time on my investments, yet I need something logical to make my decisions, ChangeWave gives me both."

APO5672 writes, "Through the Alliance Surveys you are able to report economic and industry trends ahead of other sources."

CFR9190 writes, "Unfiltered access to what my peers in business are thinking."

BEA5182 writes, "It’s real information from real world experience. No other service is anything like it."

BRA5368 writes, "We get the truth even if Toby and crew have made a mistake. Results are shown as they are, not hyped and distorted for marketing. This leads to trust and a sense of realism."

CAL5653 writes, "A number of the alliance reports have been in industries that are directly related to my industry and I have been able to use them for our corporate planning."

COO5907 writes, "I'm amazed at the accuracy of each survey when compared to what really does happen.”

CWE9158 writes, "It is a great way to gain intelligence on what happens in one's industry and to get interesting glimpses into others."

DAV0963 writes, "I like the results of the surveys, I think they are very insightful in regards to decisions I make on my investment portfolio."

ECE8694 writes, "Comprehensiveness of the reports. It allows me to leverage the expertise of fellow members in areas that I have little knowledge."

ETH1183 writes, "The fact that it's free! But more, it's very good. The quality is high; the analyses are sharp and literate. The Alliance has been the absolute core of my education.”

GPA5765 writes, "You guys are RIGHT virtually all the time. You give me factual information not baloney like CNBC."

GWW6708 writes, "The availability of information that would be hard to find otherwise."

JEF7065 writes, "I feel more comfortable in my stock investments after reviewing the alliance surveys and finding out what the experts are seeing."

JMA3269 writes, "It's easy to understand, and logically sound as you're compiling feedback from a variety of participants."

JSL2695 writes, "Information quality is unbelievable."

JST2262 writes, "The information provided is timely, and has proven to be quite accurate."
KEN7788 writes, "Reports seem to reflect accurately on public opinion and trends. They have an uncanny ability to predict the future."

KCO6695 writes, "I like the fact that the alliance seems to be 3-6 months ahead of the "experts" that are out there. I like the fact that of stocks that are chosen, 4 out of 5 are going to make me a significant amount of money."

LAT5813 writes, "The ideas and opinions offered based upon the surveys. I feel that the CW outlook is more fact driven then other investment services."

MCA8312 writes, "Your capacity to synthesize a lot of information in clear macroeconomic, industry, company and investment reports."

MJS5887 writes, "Info I can't get elsewhere, and in advance of any other source."

P.S5630 writes, "It provides quality information early in my fields of interest. Information that can be acted on with confidence for both personal and professional decisions."

NAN1765 writes, "Quick, easy to digest information...you don't have to be an industry insider to understand what is being talked about in the reports.”

PGR7922 writes, "Direct access to targeted industry specific information to help me with investment ideas."

RFO9507 writes, "Grass roots information and opinions provided early-on for leading edge opportunities."

PLA7056 writes, "No hidden agenda. No conflict of interest"

RHA5790 writes, "Sometimes provocative- forces thought versus reaction. It helps to separate the noise."

SOL1083 writes, "I think it is unique and really cuts thru the "fluff." It gives very detailed info that is based upon reality, not peoples opinions."

TOM2768 writes, "Very well written, and informative, leading the pack in investment information."

WER7325 writes, "The historical performance of the group provides early insight as to the performance of various markets sectors."

TOF9876 writes, "Focused presentation regarding companies to invest in (my primary use of the Alliance). Provides a good starting point for investment research. I like it because it is other people like me doing the talking."

THU5625 writes, "I like the information presented. It is not typical to the information you hear on the news. "

b.Objectivity of Research/Quality of Alliance Research

Process/The Surveys (11%)

ABG4789 writes, "Relatively unique data accumulation process (membership surveys)not duplicated by other investment newsletters."

BEA3191 writes, "Having been in the high technology business for 25 years I much appreciate the objective of the Alliance to identify, early in the game, the technologies and the companies behind them, for the specific purpose of investing."

BEC2885 writes, "The research methodology is brilliant.”

BFR7467 writes, "The grassroots perspective has proven to be far more accurate in predicting the economy than government statistics or research from so called experts."

BIL9130 writes, "It is real data from real people who are knowledgeable and interested in getting reliable data. Its not the fluff some NY analyst decided was important because he had a deadline to get ‘research’ out for the wirehouse retail trade."

BRI3082 writes, "Synergy from various professional disciplines adding together to make the sum of information greater than the individual parts."

CAL0835 writes, "It is actually fun to participate in! I like it because it's a grassroots effort, and an opportunity to thumb our collective noses at the Wall St. bigwigs, and level the playing field on them. I'm honored to be a part of CWA."

CHA7554 writes, "I enjoy the market information from people in-the-trenches rather than just the corporate ‘party’ line."

CHE7810 writes, "It is a center of information contributed and shared by informed professionals. So it's very interesting from both professional and investing perspectives."

DAV0002 writes, "The surveys in my field of expertise are well thought out and presented, so that I feel I am contributing to something that, when the results are tallied and shared with the members, will have real meaning for me."

ZZY2660 writes, "Research is very objective and based on broad sources, rather than one or a few ‘guru's’ opinions."

GES1635 writes, "I think that the way the Alliance gets their information is first rate. They are using front line troops to find out what is really happening, they are using their own research to make things happen. I like the way this is set up. Very good information is being passed on."

HOV2754 writes, "Over the years I've seen so many investment opportunities slip away, because I lacked confidence in the thoroughness of my personal research. Being a member of ChangeWave Alliance allows me to test my insight and opinions against others with similar investment priorities."

JAN3103 writes, "The Alliance is a very clever idea getting up to date information faster than any regular Gallup type company. It is a win-win situation of mutual benefit. Also the whole idea of Change Waves influencing what happens in the time flow."

HAC6668 writes, "It is people like me who provide the basic information, not "experts" with a theory to peddle and a job to keep."

JON5734 writes, "It's a great idea that's implemented well, and it is done in a way that requires a minimum of time while nonetheless extracting a significant amount of information."

IJS0052 writes, "It is a creative community providing invaluable information to its members."

JWI8554 writes, "The collaborative nature of the information gathering. The alliance itself is its own strength."

MCT5937 writes, "Useful information based on solid metrics, not guesses."

KAT7195 writes, "The professionalism of all the members about the alliance provides fantastic and trustworthy information."

TOM3600 writes, "I like that there are many professionals in a variety of industries that are all pooling their information to benefit the entire group."

RAI4523 writes, "The Alliance represents a collective mind that continues to add reality to investing. No matter how hard the truth is, the Alliance is aimed at hitting it and using it to the member's advantage."

TAB5742 writes, "I especially like the approach--looking for the changes well ahead, using a large number of industry inputs. To me, this is the most intelligent method of investing."

EAG3419 writes, "Your information gathering process from the alliance members must be more accurate than any other methods available and as a result the best predictor of the trends."

Tracking Trends/Sectors/Emerging Technologies (10%)

AVS5530 writes, "Great way to track new product trends that are great investment opportunities."

BKA5665 writes, "The chance to learn about emerging technologies and new investment opportunities."

BRA1123 writes, "Information on forward looking industries, hot areas."

CAL0835 writes, "The service is quite accurate in its assessments of investment trends and opportunities…”

CHI6274 writes, "I like that the service keeps me up to date on the latest technological changes in the market place."

CLA8139 writes, "Changewave is very educational and keeps me abreast of new technology along with micro and macro economic updating. Thank you for your great service."

DRU7021 writes, "Identifies trends early and reliably."

DTA7470 writes, "We're always ahead of the pack. Were always looking forward to find that next change quake that will revolutionize the world. I love that!"

JAL8247 writes, "Trend identification that is way ahead of anyone else."

DRS7547 writes, "Keeping my finger on the pulse of what is really happening in the global economy."

DUE5840 writes, "The Alliance is always at the cutting edge whether it is with new products entering the market place or and old commodity such as gas, you can always count on current advice worth taking to the bank."

ELG6919 writes, "Gives direct evidence of trends, without hype or spin."

FLA4699 writes, "It gives me an idea of what to look for in the future. New trends are important. New technology doesn't always pan out so the reader must beware. I feel it provides me with the "rocks" to look under as any good investor should do."

JJ27313 writes, "The best longer term identification of yearly trends minus the usual noise. You guys don't go w/ the flow you call the trends ahead of time."

JAB7967 writes, "Very focused on understanding when and why new technology will gain market share."

JAS6423 writes, "Seems like you have your finger on the pulse of what's happening out there in the real world."
MIK0074 writes, "The Alliance is in tune with where we're going - not where we've been."

MSR6285 writes, "Seems to provide early warning as to major changes in the buying dynamic. That's pretty cool and helpful."

REX1170 writes, "Cutting edge info about emerging growth areas. Cut through the hype and tell what's really going on in the economy."

STR3016 writes, "Focus on individual sectors prior to explosive growth (rather than when growth was obvious); identification of major players in these sectors."

THE8355 writes, "ChangeWave Alliance is the eyes, ears, and pulse monitor of our focused business sectors. The benefits are tremendous, in that it keeps members on the cutting-edge, and enables them to ‘ride the crest of the Wave.’"

TOM6997 writes, "I feel like the "Alliance" has its finger directly on the "pulse" of the market - predictions and buy/sell recommendations have been very accurate and timely."

VJS6773 writes, "Alliance seems to be better able to foresee trends than other sources of financial info."

Ease of Use/Clear and Concise (2%)

ACT1654 writes, "It’s easy to do and history has shown the info collected to be pretty accurate."

DDE4469 writes, "User-friendly service that gives valid information. The service does not try to sell itself. The service lets its work speak for the quality of the service. Excellent service. Intelligent commentary, Perceptive commentary."

KER5863 writes, "The thought process and the compilation of information is targeted and easy to read"

IVO6721 writes, "Results of surveys are presented in easily readable form"

KEN1900 writes, "Ease of participation and the ability to share information.”

SPE2266 writes, "The surveys are quick and to the point. The Reports are very helpful in identifying trends in my business."

HIT6378 writes, "Succinct, relevant information. Uncannily accurate"

AGU5465 writes, "Concise and to the point."

EWI0296 writes, "Brief questionnaires."

Opportunity to Participate in Alliance Community (2%)

CMC6422 writes, "I like being part of a bigger picture that helps everyone make better investment decisions.”

CEL7572 writes, "I like being a part of a symbiotic intelligence network that exists for the benefit of the members. And I haven't been shot at."

BIO9114 writes, "It is fun to be part of a team of investors that share their expertise."

JKL8654 writes, "Opportunity to participate in fundamental, primary research that is "ahead of the curve"."

JAN7532 writes, "I believe I am part of an elite group of professionals, savvy, motivated, interested in what is going on both in my sector and others. We are very diverse, and openly share info that can benefit all of us."

JTH8403 writes, "I feel like I'm participating in helping everyone get better returns. It's kind of like an open source movement in that respect."

RVA8224 writes, "I especially like the body of knowledge and professionalism of the Alliance itself and being part of it. And, the insights and hard work of the Alliance staff to bring it all together. That's key!"

Uniqueness of Information (1%)

DHN3542 writes, "It is a breakthrough in the investment field - getting people's opinion to work for themselves in a scientific way."

BOB5688 writes, "It provides what I consider a unique view of the covered industries"

PWG2815 writes, "Info unavailable elsewhere."

SWI2202 writes, "Extremely innovative thinking. Futuristic."

CA_2935 writes, "Does not follow the "street" thinking. Data and information is presented in ways that make it a compelling story"

B.Alliance Dislikes