September 21, 2007

Join the Army, Get Free Citizenship, Are We Rome?

posted by MR WAVETHEORY at 9/21/2007 01:30:00 PM
When Rome ran out of recruits for its military two thousand years ago, it offered citizenship to Germanics who agreed to enlist in the Roman army. Two thousand years later, in the year 2007, America has run out of military recruits for its volunteer army. Guess what legislators are now doing? Congress is proposing a bill to offer illegal immigrants citizenship in return for military service. That means the military will be staffed with noncitizens and mercenaries.

Under the Dream Act, "tens of thousands of well-qualified potential recruits would become eligible for military service for the first time. They are eager to serve in the armed services, and under the Dream Act, they would have a very strong incentive to enlist because it would give them a path to permanent legal status."

Interesting that history repeats itself. I first learned about the Roman problem after reading the book Are We Rome? It's fascinating that America is now facing the same military crisis that Rome faced so long ago before us. I guess we lack creativity and feel compelled to copy the model that works for Rome.

The caveat? Do you want to know why Rome fell? Germanics serving in the Roman army sacked Rome because they got pissed at Rome for not giving them for land. In fact, Rome was invaded by one of their very own when the Germanic Odoacer deposed the last emperor ruling from Rome. Odoacer was a Roman mercenary!

Let that be a lesson to us all!

China Precision Steel P/E of 1?!

posted by MR WAVETHEORY at 9/21/2007 10:27:00 AM

Yahoo Finance reports that China Precision Steel has a P/E of 1. Somehow I doubt that's accurate.

The stock is up 20% today. If the P/E is indeed is 1, then this stock could go from $5 to say $20 easily! China fever! Go go go!

17 Year Old Teen Makes $1 Million on MySpace Layouts

posted by MR WAVETHEORY at 9/21/2007 10:09:00 AM

Teens are making millions on the internet with myspace layouts! Ashley Quall was 14 when she started her site. She dropped out of high school and dropped into business. She's now 17 years old and running, the definitive resource for myspace layouts. To boot it, she has made over $1 million!

Girl Power: Ashley Quall FastCompany magazine article

ZVUE Rocks Again

posted by MR WAVETHEORY at 9/21/2007 06:52:00 AM
A stock that is so highly volatile that it makes my head spin is Handheld Entertainment (Nasdaq ZVUE). If there is one stock with more style than substance, it's ZVUE. They have made at least 5 acquisitions in the past year that I can count and each has been in the video sharing space. Most of these are has beens in the video sharing space and they are purporting that they are the fastest growing site in August 2007 according to Comscore. I have no doubt that is probably true, but that's because they bought a site called eBaumsworld which brought in quite a bit of traffic. I'd be careful with this one. The stock is up 40% today on the Comscore report. I have a gut feeling that the only people trading this stock is probably the company itself.

Update: ZVUE float is 8.9 million shares. Too many shares to make this a real short squeeze candidate. Plus, the insiders are dumping.

China Stocks! China Stocks! China Stocks!

posted by MR WAVETHEORY at 9/21/2007 06:45:00 AM
Repeat after me! China Stocks! China Stocks! China Stocks!

The top gainers list today is full of China stocks:

E-Future Information Technology (Nasdaq EFUT) +12% Chinese ERP software
KongZong (Nasdaq KONG) +9% Chinese wireless value added services
LJ International (Nasdaq JADE) +8% Chinese diamonds
China Finance Online (Nasdaq JRJC) +8% Chinese finance portal
Fuwei Films (Nasdaq FFHL) +8% Chinese film/chemical company
China Grentech (Nasdaq GRRF) +8% Chinese wireless

It's China stock markup day. In all fairness, they've all been marked down quite a bit lately.

Chinese A-Share H-Share Arbitrage Trade Goes on

posted by MR WAVETHEORY at 9/21/2007 06:35:00 AM
A market strategist in Hong Kong writes that China is slowly letting money flow into Hong Kong - rather than in one fell swoop. It just means that A-Share and H-Share arbitrage traders will have more time to put the trade on and make $$$:

"The thing to remember here is that China never likes to do anything straight off," said Andrew Sullivan, head of trading at Daiwa Securities SMBC in Hong Kong. Anecdotal evidence by Hong Kong brokers suggests outward investment demand from investors in China has been very strong.

Chinese regulators were seeking safeguards against a sudden and destabilizing outflow of capital, Sullivan said. It is likely regulators will restrict fund flows initially but then relax them over time, Sullivan said, much as they have done with other regulations affecting trade and travel to Hong Kong.

"They want to slowly wind down the bubbles that they've got in Shanghai and Shenzhen," he said. "And the way to do that is to allow the money out that will initially arbitrage the difference between the A share and the H shares." There are 41 dual-listed companies which trade in Shanghai as class A shares and in Hong Kong as class H shares.

The stocks that are arbitrage related in the US are:

Aluminum Corporation of China (NYSE ACH)
China Southern Airlines Limited (NYSE ZNH)
China Eastern Airlines (NYSE CEA)
China Petroleum (NYSE SNP)
Sinopec Shanghai Petrochemical (NYSE SHI)
China Life Insurance Company (NYSE LFC)

September 20, 2007

e-Future Information Technology Rocks Again

posted by MR WAVETHEORY at 9/20/2007 06:01:00 PM
e-Future topped the Nasdaq top gainers list today going up 50% on China fever. I wrote about e-Future Information Technology Inc. (Nasdaq EFUT) last year when this microcap Chinese ERP software company did its IPO and proceeded to go up 627%. This little known company e-Future became the #1 IPO of 2006. Almost an entire year has passed and e-Future is back again. Its the same story. The low float combined with the large amount of shares concentrated among a few investors is making this hot stock go up like a rocket again.

What is amazing is the tiny market cap of this software company. With a free float of only 45,000 shares out of 1.5 million shares outstanding, the freely tradeable shares is less than a fraction of 1%! That makes it ripe for a fast rise and a short squeeze. e-Future has a market of only $27 million making it easily manipulated up or down with just a few million dollars. In all, this company looks more like a venture stage software company than your average software company.

Investing in e-Future is a game of musical chairs. Early buyers reap big rewards. Last one in gets left holding the bag. You can see it from the market action. The potential of fast profits is leading day traders to "rent" this stock and trade it like mad. The entire share base turned over close to 2 times - ie volume was 2.6 million shares vs 1.5 million shares outstanding.

I honestly can't figure out what they do, so unfortunately, it is too sizzling hot for my taste. The more adventurous among you may decide to buy or sell and I have no doubt some people will make money. I'll take a pass.

Teen Sues Virgin Mobile for Stealing Her Flickr Photos

posted by MR WAVETHEORY at 9/20/2007 05:00:00 PM

Alison Chang is suing Virgin Mobile for stealing her Flickr photos and pastering them in Virgin Mobile ad campaigns. The 16-year old Alison was attending a Christian camp in Australia when a camp counselor took a photo of her flashing a peace sign and uploaded it to Flickr. That photo ended up in a multimillion Virgin Mobile ad campaign featured in bus stop ads like the one above urging Alison to "Dump your pen friend girl"! Virgin never asked Alison for permission and Alison never them her blessing. Big mistake!

You can seee that Alison found out about the photo and she logged on to Flickr to express her outrage. In the comments for the Flickr photo, Alison replied to the photo "hey that's me! no joke. i think i'm being insulted...can you tell me where this was taken."

I guess she has every reason to be pissed off. "It's the tag line; it's derogatory," said Damon Chang, 27. "A lot of her church friends saw it." Allison's family filed a lawsuit late Wednesday in state district court in Dallas against Virgin Mobile USA LLC, its Australian counterpart, and Creative Commons Corp., a Massachusetts nonprofit that licenses sharing of Flickr photos.

The suit has triggered a rave discussions at Flickr over the Creative Commons licensing scheme and hundreds of people are posting how this could have happened.

China Eastern Airlines and China Southern Are on Fire

posted by MR WAVETHEORY at 9/20/2007 09:56:00 AM
China Eastern Airlines and China Southern Airlines are topping the biggest gainers list on the NYSE today. A few weeks ago, China Eastern Airlines (NYSE CEA) got an investment from the Government Investment Corp of Singapore and ever since the stock has been on Fire. When the investment was announced, I thought "gee, this stock will probably open at $100". It took a more than a few days, but it got there. Today, it's up close to $30 points. It broke $100 when the stock opened at $110 which is $15 points above the close at $95 yesterday. The other stock that is up alot is China Southern Airlines Limited (ADR) (NYSE ZNH) which is up a respectable $15, not yet over $100 but getting there!

China Southern focuses on Hong Kong and Macau routes where China Eastern focuses on Shanghai. These two are moving because of rumors of restructuring in the aviation industry in China - this could mean either state asset sales or shuffling of smaller regional airlines into these entities. Let me translate that into English for you: ZNH and CEA will get state assets at bargain prices! Anytime you get something for nothing, you create value from thin air. The winner: shareholders! The Chinese government seems to be taking the approach that if you allow people to make money, then they'll have no complaints about state enterprise privatization. Quite the contrary of the Russian privatizations, where only a few people made alot of money (which is not to say there aren't back door deals in China).

Arab Man Hides Sex Toy in Very Large Sausage

posted by MR WAVETHEORY at 9/20/2007 08:43:00 AM

Where do you hide sex toys from customs if you're an Arab man traveling back to Dubai? Apparently, a very enormous German sausage.

Staff at a German butcher's shop were shocked to discover a customer had hidden two sex toys in their sausages for transport to Dubai, police said Wednesday.

"It was two latex dildos with a natural look," said a spokesman for police in the southwestern city of Mannheim.

After shopping there earlier in the day, the man, who spoke broken English, returned to the butcher's with two large "Schwartenmagen" sausages. He asked a shop assistant to wrap and cool them until he departed for Dubai the next day.

But the assistant noticed the goods had got heavier and alerted police. Officers discovered the man, who was about 50, had removed some of the meat and packed the dildos inside.

"He could have used a loaf of bread," the spokesman said. "It's not against the law here. But obviously I can't speculate on what customs in Dubai will have to say about it."

Fire Fighters Set Fire to Cracker Barrel

posted by MR WAVETHEORY at 9/20/2007 04:31:00 AM

In one of the oddest stories ever, a company that was hired to maintain Cracker Barrel's fire supression system accidentally set fire to the restaurant - thereby ensuring a steady supply of follow on work for the company! Their van went up in flames early today damaging the exterior of Cracker Barrel (CBRL Group Inc. Nasdaq CBRL) restaurant is owned by the company hired to maintain the restaurant’s fire-suppression system.

No one was injured in the blaze reported to the Cumberland Trail Fire Department at 12:02 a.m. today. According to Chief Greg Reline, the fire started in the engine compartment of a van owned by Kool Kleen of Murrysville, Pa. The St. Clairsville Cracker Barrel is located across from the Ohio Valley Mall, and the van was parked behind the restaurant.

Cracker Barrel owns a bunch of restaurants that serve "American" cuisine like pancakes, burgers, chicken, and other types of cheap Midwestern fare. They sell close to $3 billion worth of this stuff.

Is China Launching the Nuclear Option on Dollar Sales?

posted by MR WAVETHEORY at 9/20/2007 01:11:00 AM
The yuan (aka renminbi) strengthened immediately following the US rate cute on Tuesday, triggering fears that China is launching a nuclear option against US dollars. While the US is cutting rates because of slowing growth, China is raising rates because of fast growth and inflation. In fact, inflation is getting so bad in China that Beijing issued a price freeze! You heard right, they are putting in government price controls on everything ranging from oil, electricity and water to the cost of parking and park entrance fees.

Before trading started on Wednesday morning, the People's Bank of China (PBOC) set the yuan midpoint at 7.5170 against the greenback, compared with 7.5266 on the previous day. The yuan may rise or fall 0.5 percent from the mid-point each day.

It's all about fighting inflation ahead of the Communist party meeting on October 15th. “Any unauthorised price rises are strictly forbidden . . . and in principle there will be no new price-raising measures this year,” the ministries said. Events since the initial State Council announcement that inflation in August hit an 11-year high of 6.5 per cent appear to have galvanised the bureaucracy into a tougher stance.

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.

Xia Bin, finance chief at the Development Research Centre (which has cabinet rank), kicked off what now appears to be government policy with a comment last week that Beijing's foreign reserves should be used as a "bargaining chip" in talks with the US.

He Fan, an official at the Chinese Academy of Social Sciences, went even further today, letting it be known that Beijing had the power to set off a dollar collapse if it choose to do so.

"China has accumulated a large sum of US dollars. Such a big sum, of which a considerable portion is in US treasury bonds, contributes a great deal to maintaining the position of the dollar as a reserve currency. Russia, Switzerland, and several other countries have reduced the their dollar holdings.

The threats play into the presidential electoral campaign of Hillary Clinton, who has called for restrictive legislation to prevent America being "held hostage to economic decicions being made in Beijing, Shanghai, or Tokyo".

She said foreign control over 44pc of the US national debt had left America acutely vulnerable.

Hilary, maybe the problem is not China, but the free spending ways of Americans caused by Greenspan's 14 consecutive rate cuts and Ben Bernanke's insistence to follow in his footsteps! America is in a tough spot because of all those free credit cards and 0% offers that Greenspan lavished on consumers with his 1% interest rate! Just when consumers are being taught a lesson, Bernanke cuts rates and gives consumers more rope to hang themselves!?

Is the Bin Laden Trade On? Saudi Arabia Breaks Dollar Peg

posted by MR WAVETHEORY at 9/20/2007 01:02:00 AM
For the first time ever, Saudi Arabia refused to lower interest rates after the Federal Reserve cut rates by 50 bps. There is massive panic in the currency markets right now on fears of a dollar collapse. Whoever sold $4.5 billion worth of S&P 500 calls may turn out to be a real genius. The $4.5 billion Bin Laden trade may be on!

"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.

"Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said.

All that oil money is causing inflation in the Middle East and Saudi Arabia so the Saudis are refusing to play ball with Bernanke. Big oops for Ben! Foreigners are no longer buying dollar bonds either and this could cause a collapse in the US bond market.

The latest US government data on foreign holdings released this week show a collapse in purchases of US bonds from $97bn to just $19bn in July, with outright net sales of US Treasuries.

"They were willing to provide the money when rates were paying nicely, but why bear the risk in these dramatically changed circumstances? We think that a fall in dollar to $1.50 against the euro is not out of the question at all by the first quarter of 2008," he said.

For Saudi Arabia, the dollar peg has clearly become a liability. Inflation has risen to 4pc and the M3 broad money supply is surging at 22pc.

The pressures are even worse in other parts of the Gulf. The United Arab Emirates now faces inflation of 9.3pc, a 20-year high. In Qatar it has reached 13pc.

September 19, 2007

Angelo Mozilo is a Real Insider Trading Putz

posted by MR WAVETHEORY at 9/19/2007 04:19:00 PM
I can't believe what the CEO of Countrywide is saying. After blowing up Countrywide (NYSE CFC) by issuing subprime mortgages to people who shouldn't have gotten them in the first place, he is now blaming the government for causing the subprime meltdown. He is such a hypocrite.

This is what he said when the Fed cut rates by 50 basis points yesterday:

Mozilo said Tuesday's surprise half-point cut in the federal funds rate signals the Federal Reserve "has also realized the importance of home financing and the need to return liquidity to the [mortgage] market."

The current cycle "is the most severe in the contemporary history of our industry," so policymakers need to do more, he added.

Angelo, if the policymakers need to do more, maybe you and your gang at Countrywide need to do less - as in less lending to poor people who can't afford to pay you back on your usurious loans! Oh, by the way Angelo, aren't you the same guy who sold $10 million of stock in Countrywide at $28 per share 2 weeks before the whole mortgage market started coming apart and CFC got cut in half to $15! What kind of CEO are you? Don't answer. I'll answer for you: the self dealing scumbag kind!

Angelo, the regulators aren't at fault for the mortgage mess that you got yourself into! So stop blaming them. Wake up and face the facts! If the SEC needs a target for insider trading, they should start with you Angelo Mozilo.

Mozilo ... hmmmm.... Mozilo ..... Sounds like an evil villain. Don't let his gray hair trick you into thinking that he's an honest banker.

Alicia Silverstone Strips For Peta Ad and Video

posted by MR WAVETHEORY at 9/19/2007 08:47:00 AM

Alicia Silverstone is a vegetarian and to prove her point, she stripped down in an ad for Peta. Peta is an organization against cruelty to animals. Alicia takes that to the extreme and I guess eating meat could qualify as animal cruelty. Here's the Alicia Silverstone PETA ad and the Alicia Silverstone Peta video. I don't know about you, but I like meat!

$4.5 Billion Bin Laden Trade

posted by MR WAVETHEORY at 9/19/2007 08:37:00 AM
Someone is betting big that the stock market will crash on or before September 21, 2007. There are 65,000 contracts @ $750.00 for the SPX 700 calls for open interest. That controls 6.5 million shares at $750 = $4.5 Billion. Not a single trade . But quite a bit of $$ on a contract that is 700 points away from current value. No one would buy that deep in the money calls. No reason to. So if they were sold looks like someone betting on massive dislocation. Lots of very strange option activity that I haven't seen before. That's according to someone who's been doing this about 25 years.

The entity or individual offering these sales can only make money if the market drops 30%-50% within the next four weeks. If the market does not drop, the entity or individual involved stands to lose over $1 billion just for engaging in these contracts!

Clearly, someone knows something big is going to happen BEFORE the options expire on Sept. 21.

The following theories are being discussed widely within the stock and options markets today regarding the enormous and very unusual activity reported above and two stories below. Those theories are:

1) A massive terrorist attack is going to take place before Sept. 21 to tank the markets, OR;
2) China, reeling over losing $10 Billion in bad loans to the sub-prime mortgage collapse presently taking place, is going to dump US currency and tank all of Capitalism with a Communist financial revolution.

Either scenario is bad and the clock is ticking. The drop-dead date of these contracts is September 21. Whatever is going to happen MUST take place between now and then or the folks involved in these contracts will lose over $1 billion for having engaged in this activity.

QuickSilver is Shopping Cleveland Golf

posted by MR WAVETHEORY at 9/19/2007 07:23:00 AM
QuickSilver (NYSE ZQK) just acquired the 36% of Roger Cleveland Golf Co that it doesn't own according to SEC filings. Yes, it's the QuickSilver that sells surf wear and apparel. QuickSilver does over $2 billion in sales a year so the Cleveland Golf part of it is basically a nonevent as far as the business goes. The Rossignol family originally owned the Cleveland stake and brought it with them when QuickSilver acquired Rossignol. Golf Week is spreading a rumor that QuickSilver is preparing to sell Cleveland Golf. Golfweek thinks TaylorMade-Adddas could buy them, as could Puma.

I used a Cleveland Launcher a while ago when I played some golf. The black and yellow color scheme looks really nice on their clubs. The Cleveland clubs were really nice to play but I think the company has changed strategy recently. I visited a few golf stores recently and Cleveland has definitely gone downstream - as in reduced the price of its clubs to reach more buyers. The clubs were piling up. Maybe that explains the sale.

The price tag: a cool $60 million. Industry sources say Quiksilver Inc., which acquired Cleveland in 2005 as part of a deal to buy ski-maker Rossignol, is in the final stages of unloading the golf equipment maker for roughly $60 million to $70 million. Some analysts say the price is a bargain, noting Cleveland likely is worth at least $100 million, but they add an expedient sale even at a discount is in Quiksilver’s best interests.

After 10 Years, Finally Goes Bust

posted by MR WAVETHEORY at 9/19/2007 05:18:00 AM
A few months ago, I wrote about NetBank Inc. (NTBK.PK) as a short trade because it had lost $200 million. Of all things, it lost it on RV loans. Let me translate that for you. RV loans = trailer park loans. The less PC bankers of the financial community would call these "trailer trash loans" because they are made to borrowers who live in trailer parks and have no chance of repayment. It turned out to be completely accurate. As it turns out, that short trade was a "SHORT TO ZERO" trade, because the stock of NetBank is now worth $.08. You are reading it correctly. 8 cents. It is down from $3.59 on the day that NetBank announced its $200 million write off! And over $80 at the peak of the dotcom mania back in 1999.

Of all things, NetBank shows everyone out there that the writing was on the wall on this whole subprime mortgage loan crisis way before last month. The weak players were already crumbling 6 months ago, except that the people who had the data didn't really want to face the facts.Example: EverBank didn't face the music and signed a term sheet to acquire NetBank's $2.5 billion loan portfolio in May. It turns out EverBank was lucky. The closing conditions were not met and there were little in the way of closing conditions except regulatory approval by a certain date. No regulatory approval = no liability. See no evil. Do no wrong. EverBank got out of jail scott free! I bet Everbank investors are breathing a sigh of relief. They really dodged a bullet on this piece of trailer trash.

The more adventurous of you are wondering whether this is a nice penny stock trade. The answer is in NetBank's regulatory filing :

As a result of ongoing financial and regulatory pressure, the Company believes that its outstanding common stock may have little or no value. Accordingly, investment in the Company’s common stock would be highly speculative.

You have to give these guys credit. At least the management team is finally learning to be honest about something! It took them over 10 years, but they finally learned!

NetBank RIP. I have a suggestion for your tombstone. Take the logo and change it to "NetBank : Part with Your Hard Earned Money"

Farmers Shouldn't Play with Credit Derivatives!

posted by MR WAVETHEORY at 9/19/2007 03:14:00 AM

Calyon - aka the French Agricultural Bank - blew 250 million euros on credit swaps showing that farmers should stick to farming - not trading credit derivatives! LOL! Apparently, Calyon (aka Credit Agricole aka French Agricultural Bank) had fortuitous timing - they waited 2 weeks - until the Fed rate reduction - before announcing the results of their tragic gamble.

Agricole senior management were told on Sept. 4 that Calyon had an unusually large market position at the propriety trading desk of its New York-based business. It said that unwinding the position would cut Calyon's third-quarter earnings by EUR250 million.

The bulk of the position had been built up at the end of last month and was centered on certain credit market indices, which Calyon did not name, although it stressed that none of the trades was linked to the US sub-prime mortgage sector.

Caylon says they have taken the necessary disciplinary actions against the rogue traders.

Do you see the picture above? Yes, the decapitated bodies. Those are the statues next to Calyon headquarters on Avenue of the Americas in New York. I have a feeling that's what happened to the rogue traders.

September 18, 2007

Fed Rate Cut Extends Lifeline to Deadbeat Borrowers

posted by MR WAVETHEORY at 9/18/2007 12:15:00 PM
The Fed just increased the risk of the financial markets by extending a 50 basis point rate cut.

1) Credit card borrowers get a lower rate. Hurray for more 0% credit card offers.
2) Home flippers get their ARMs lowered to a more affordable rate. Expect more home flipping!
3) Housing bubble gets reinflated. Expect home values to stay where they are!
4) Home owners who refinanced their floating rate loans to fixed rate loans get screwed again! ARMs are now all the rage again!
5) Subprime lenders get more time to unload and mark to model their worthless paper.
6) Stock market gets a 300 point boost! Expect more to come. We're coming up on elections!
7) Gold keeps going higher. What can you expect!? When you keep printing money, people run for the hills!

Uncork the champaign. Say hello to Ben Bernanke - the Web 2.0 version of Alan Greenspan. We will just inflate our way out of our problems.

September 17, 2007

Wesco Annual Meeting Notes 2007

posted by MR WAVETHEORY at 9/17/2007 08:14:00 AM
Whitney Tilson took notes at the Wesco Annual Meeting this year - 2007. Charlie Munger, who is Warren Buffett's partner, talked about various investing themes. One of the shareholders of Wesco Financial (AMEX WSC) asked an interesting question, "Is the China stock market a bubble?" Charlie Munger responded as follows.

Is the Chinese stock market a bubble?

The Chinese market is divided into two parts: Shanghai and Hong Kong. The Shanghai market shows some signs of gross excess and I have no interest in what’s traded there given prices at present. But there are other parts of the Chinese market that are at least interesting. We don’t comment on individual securities for obvious reasons.

Note the annual shareholders meeting happened on May 9, 2007 which is about 4 months ago - and subsequently the China stock market has gone up even higher! It just goes to show that bubbles can go on much longer than you expect them to - until they've proven everyone wrong!

New Apple iPOD Nano Commercial

posted by MR WAVETHEORY at 9/17/2007 01:25:00 AM
The Brand new spanking Apple Inc. (Nasdaq AAPL) iPod Nano commercial features a song by Leslie Feist "1234." The new IPOD nano plays video.

Here are the lyrics used in the new iPod Nano ad:

One Two Three Four
Tell me that you love me more
Sleepless long nights
That is what my youth was for

Old teenage hopes are alive at your door
Left you with nothing but they want some more

Oh, you’re changing your heart
Oh, You know who you are