Welcome to the August 2010 issue of Condor Monthly!

Please continue below to view the "From the Portfolio Manager" and "Financial Planning Corner" segments in this month's issue.

Large Cap Growth Strategy Update

Condor Capital initiated a position in Deere & Company, a designer and manufacturer of agricultural, forestry, construction, and landscaping equipment.

Industry Leader

As a business that has been in operation for nearly 175 years, DE has become a well-known name with strong brand recognition and customer loyalty. The firm has developed an intertwined network of dealers throughout the world that provides support for its high-quality products. To maintain its top spot, Deere invests more in Research & Development than most of its peers in order to be the first to make any significant improvements or discoveries. Additionally, due to its diversified operations and efficiency, the firm is better adapted to the cyclical nature of the industry.

John Deere Credit

John Deere Credit is a major equipment finance company in the country. It has developed more than 2 million accounts and accumulated a managed portfolio of about $23 million. This segment of DE offers financing options to assist large purchases made by its customers. Furthermore, it provides crop insurance and loans to farmers as well as debt financing to promote the use of green energy.

International Growth

With established services in North America and Europe, DE continues to expand its business in other areas of the world, including emerging markets. The Chinese government has made strides to support agricultural growth in the country recently by allocating more money to cultivate rural areas and aide farmers. Also, a large percent of the population in countries like China, Brazil, and India are demanding higher quality food like never before. This new trend will require agricultural equipment to increase crop yields. As such, Deere stands to benefit from the vast amount of available land in these countries.

From the Financial Planning Corner

Protecting your Identity

Identity theft is one type of crime that is easily overlooked because when it does happen, people often don't find out about it until after the damage has been done. It is very important to be aware of crimes like this so that your investments and information are safe. There are many methods in which thieves attempt to steal your identity, such as fraudulent scams, going through your trash, and infiltrating your personal computer. You can thwart these thieves' opportunities without spending lots of cash by being educated about the risks and taking some simple actions to protect yourself and your loved ones. To get a technical perspective of what it takes to be secure and prevent identity theft, here is a Q&A with our Information Technology Manager here at Condor Capital, Prateek Malhotra.

What identity theft threats are most prevalent today?

Personal computer infiltration is the greatest risk to your personal information today. Technology changes so rapidly that security holes are created in many of the programs we use on a daily basis. Two common security risks are phishing scams and spyware.

What is a phishing scam?

A phishing scam is when an identity thief poses as a trusted source, such as your bank, and asks you to provide them with personal information. These scams can take place via telephone or snail mail; however they predominantly occur via e-mail. The e-mail may request that you submit your information via e-mail, by clicking on a link to a website to fill out and submit an online form, or by asking you to download and complete a written from. These scams are generally very sophisticated and difficult to detect because they can look exactly like your bank's website and have a valid SSL connection.

What is an SSL connection?

An SSL connection is a secure connection generally indicated by a picture of a lock that is displayed on the bottom right or near the URL bar. What should someone do if they suspect an e-mail to be a phishing scam? Always remember that most banks and other trusted sources will not ask for personal information via e-mail. Do not reply to the e-mail, click on the attached link or download any attachments. By clicking on the link or downloading attachments you put yourself at risk of installing another common security risk known as spyware. The best course of action is to contact your trusted source in person or via telephone to inquire about the e-mail.

You mentioned another security threat called spyware. Can you explain what that is?

Sure, spyware is information gathering software that gets installed on your computer via sources such as links or downloadable attachments from fraudulent e-mails or websites. Once installed the spyware gathers information without your knowledge and sends the information back to the creator. Spyware can record your keystrokes to steal passwords and credit card numbers, track your search habits, and engage in various other annoying activities such as installing unwanted toolbars.

Aside from exercising caution when divulging personal information, is there anything else that can be done to protect people from phishing scams?

Many new web-browsers have built-in phishing detection and most internet security suite software packages will also protect you, however these technologies aren't enough. The greatest defense against these scams is prudence when divulging personal information. Make sure that the source in which you are submitting information is legitimate and sent over a secure network. Most browsers show whether or not the current connection is secured over SSL by displaying a different color on the URL bar or in a warning message.

You mentioned spyware as being an additional threat often embedded into these phishing scams. Is there anything people can do to protect themselves against these dangerous programs in the event that they are tricked into or accidentally come in contact with an infected file or website?

There are many security programs that you can purchase to protect yourself from spyware and other types of malware (malware is any type of software designed to harm your computer or steal information). I currently use ESET Smart Security Suite. This is a bundled anti-virus/anti-spyware/firewall product. Be aware that not all security bundles protect you against spyware/malware. When selecting a software package make sure it includes this feature. In addition to ESET I also use Malwarebyte's Anti-malware once or twice a month to scan my computer for spyware and malware. A great thing about this program is that the basic version is available online as a free download.

Are there any other free solutions available to protect users?

There is a wealth of free content available, however please be aware that not all free security downloads are legitimate. The simplest free solution available to all users to increase their online safety is to always use an updated web browser such as FireFox, Internet Explorer 8, Chrome, or Safari. You can also get a free security boost by utilizing a web content filter called OpenDNS (http://www.opendns.com/), which filters, or blocks, websites that appear on their comprehensive list of known scams and sources of malware (such as spyware and viruses). Another cool function offered by OpenDNS is their free family web filter which blocks adult content so your kids can have a safer internet experience.

Microsoft Windows users have additional sources of free protection. Microsoft offers a free anti-virus, anti-spyware, and anti-malware solution called Microsoft Security Essentials. And ZoneAlarm offers a free download for its robust firewall engine. Although all operating systems have a built-in firewall they are generally insufficient on their own.

You warned us to be aware of fraudulent security downloads. Is there anything in particular we should know about these threats?

These threats are a new type of malware which pose as free anti-virus downloads. Once downloaded these programs post continuous warnings that your computer is infected with hundreds of viruses and you must pay for a full subscription to fix your computer. These scareware programs are often so pervasive that they bar you from using your computer and cannot be uninstalled. If you encounter one of these works of diabolical genius download Malwarebyte's Anti-malware and run a full scan. If this does not resolve the problem you may need to purchase a more advanced version of the anti-malware software program or consult a professional.

After we purchase or download free security applications, is there anything else we need to do to stay protect?

Yes, it is tremendously important to keep these programs, your PC operating system, such as windows, JAVA Plug-Ins and Adobe flash plug-ins up to date in order to be properly protected from the new malware that is continually developed by identify thieves and nefarious computer geeks. You can keep your computer up to date by setting up automatic updates or manually checking for online updates to these programs on a weekly basis.

I love the mobility of my wireless home network. Is there any additional risk associated with a wireless network over a hard line connection? If so, how can I protect myself?

Wireless home networks are becoming increasingly popular; however they are often left unprotected creating substantial security risks. If your wireless signal is not protected anyone in range with a wireless card can intercept your signal and steal your information or install malware. Keep your home wireless networks secure by changing your router's default username, password, and encrypt, or "scramble", your wireless signal. Encrypting your signal is fast and simple, just go to your router's online website and follow the instructions. That said, the level and type of encryption available depends upon your choice of wireless router. The most common options will be WPA2, WPA and WEP with varying encryption levels, generally 64 or 128 bits. The higher the number of bits the more secure the encryption level will be. WPA2 is the best choice, however in order to use WPA2 all your wireless devices must have WPA2 capabilities. Not to fear, the Playstation 3, Xbox 360 (may require wireless adapter), and Nintendo Wii all have WPA2 capabilities so you will not be faced with tear soaked faces when your kids, or you adult gamers out there, get home and attempt to engage in some online gaming fun on your new secure network (If you do not see WPA2 as an option running a firmware update will add it to your options).

In addition to the freedom of a wireless home network many people are also enjoying mobile banking from their phones. In your opinion, how safe is mobile banking?

Mobile banking technology is not 100% secure because it is susceptible to the same attacks as your computer, however many argue that these risks are fewer. Given the relative safety, most banks back the mobile banking programs they've developed with a full reimbursement guarantee for any loss of money due to their mobile banking application. However, be sure not to use public WiFi access points while online banking with any type of mobile device, including your laptop. Furthermore, if you lose your phone, be sure to change your bank account passwords.

Are there any security or privacy risks associated with using online social networks such as Facebook and Myspace?

Yes, most Facebook and Myspace users are at risk for identify theft because they reveal too much personal information, use Facebook apps, and fail to utilize available privacy functions. If you are going to use these or other online social networks you can protect yourself and others from identity theft by utilizing privacy functions and refraining from posting the following information: 1. full birth dates, 2. addresses, 3. middle names, 4. employer info, 5. telephone numbers, and 6. mother's maiden name. Unfortunately, using popular Facebook apps can also put you at risk of identity theft because they can contain spyware and other malware programs. The June 2010 Consumer Reports Magazine has some very interesting and informative articles detailing the many dangers associated with the use of online social networks. For more information about these risks please see the full articles under the heading "Social Insecurity" at http://www.consumerreports.org/cro/magazine-archive/2010/june/june-2010-toc.htm.

There is a lot of debate about online privacy. Is there anything I can do to protect my privacy?

The current privacy debates in the media are concerned with consumer tracking, or data-mining, for the purpose of target marketing. Online advertising companies use tracking devices known as cookies, flash cookies, and beacons to compile detailed consumer profiles, which are then used to customize the ads an individual consumer sees as they search the web. There are some steps you can take protect your privacy by limiting the amount of digital data files compiled about you and your family. First, many of the latest web browsers have privacy settings that can be turned on to block the worst kinds of data-mining programs. The WallStreet Journal currently has step-by-step instructions on how to delete cookies from a variety of browsers online at WSJ.com/WTK. They also have numerous articles on both sides of the privacy debate if you would like to learn more. Additionally, one online tracking company, Lotame, states that people who don't want to be tracked can remove themselves from the Lotame system. Just go to http://www.lotame.com/privacy-center/preferences/ and click the blue opt-out link at the bottom of the page to opt-out of their tracking system.

It is clear that identity theft and online privacy are going to be topics that will continue to evolve along with the rapid growth of our technological capabilities. Staying educated about the risks and solutions is the key to keeping you and your family safe without breaking the bank.