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April 23, 2014

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News Brief
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Domino's Pizza's newly revamped 'Progressive' LP program - 5,000 U.S. stores & 5,000 international stores  Having been promoted a little over a year ago, Van Carney, Domino's Director of Loss Prevention and 18 year veteran of Domino's, set out to reinvent the LP program to more of a 'progressive' and pro-active service group that measures performance and drives value. Having inherited a program focused on their 400+ corporate locations, Van expanded the teams roles to include the 5,000 U.S. franchise locations. In doing so Van restructured the department, added a number of positions, and now has 3 corporate analyst providing the data to 2 Regional LPM's focused on the corporate locations and 3 Regional LPM's servicing the 4,000+ U.S. franchise locations. With the obvious object of protecting the royalty streams and helping the operators increase efficiencies and margins, it's too soon to see the real impact long term but the trends so far are showing an incredible return. With numbers improving in a number of categories, this new effort and team is obviously making an impact and proving how a proactive approach driven by data can and does increase the overall profitability of a retailer.

How can biometrics benefit retail? "Biometrics in retail could see two major applications: increase levels of security in the retail environment or support marketing and operations activities."  Whether it is palm-vein technology, facial-recognition systems or fingerprint identification, there are a growing number of ways biometrics technology is helping the business world move in a new direction. One of the key areas of focus for retail in the months ahead looks set to be the development of in-store analytics to understand customer behaviour in the physical retail store. Online retailers have been able to track shopper activity through the use of online accounts and cookie monitoring for a number of years, but the emergence of biometrics technology may allow for similarly comprehensive analysis of in-store customers. Isabelle Moeller, CEO of the Biometrics Institute, told Essential Retail: "We are seeing an increased interest and take up of biometrics in the commercial/consumer markets which was also confirmed by the Biometrics Institute Industry Survey 2013. Moeller argues that biometrics offer a range of potential benefits for the retail industry, such as PoS payment authentication and identifying known shoplifters or violent offenders, both of which could boost security. From a marketing and operations perspective, she added, businesses can use biometric-generated analytics to enhance interior design, plan staffing resources, align merchandise placement or create display advertising. "Biometrics offer a convenient and additional layer of security, help prevent fraud and create a better customer experience," Moeller explained. (Source essentialretail.com)

FaceFirst Makes Shopping Safer With National Facial Recognition Deployment  Retail stores are vulnerable to shoplifting criminal activity and these circumstances threaten citizen safety and businesses nationwide. FaceFirst, a facial recognition software system, recently partnered with a nationally renowned Fortune 500 company to deploy hundreds of cameras in store entrances across the nation in order to curb shoplifting incidences and other criminal activity in the retail market. FaceFirst's national deployment is the industry's largest retail deployment of facial recognition and the software company anticipates securing additional retailers in the future. Its advanced facial recognition technology will boost customer loyalty by providing shoppers with a peace of mind knowing their shopping experience can be enjoyed without the threat of criminal activity. Editors Note: This is the first publicized facial recognition deployment for retail security purposes in the U.S. and is a milestone event. (Source businesswire.com)

Wal-Mart Set To Reveal How Compliance Moved Executives Pay  Wal-Mart Stores Inc. will report as soon as tomorrow how well its executives did on their goals to overhaul compliance operations and how that affected their pay, the company’s chief compliance officer said on Tuesday. Last year, in the wake of a federal investigation into bribery allegations in Mexico, the company took the rare step of publicly announcing it would tie executive compensation to the company’s compliance goals. “The results are in, the board has voted on how last year’s compliance objectives went, and they said this has done so well that this will be part of our regular corporate governance,” Jay Jorgensen, global chief compliance officer at Wal-Mart said at the Dow Jones Global Compliance Symposium in Washington, D.C,. on Tuesday. Wal-Mart, which has spent more than $500 million on compliance efforts since 2012, increased full-time compliance staff to 2,000 people as it worked on the overhaul, Mr. Jorgensen said. As part of the changes, country compliance chiefs will report to regional officers who have a direct line to the company’s Bentonville, Ark., headquarters. In the past, complaints about possible foreign misconduct were only reported to each country’s chief executive. (Source wsj.com)

U.S. Secret Service Has 171 Cybercrimes Under Investigation - new bill would let them use RICO  The U.S. Secret Service has prevented about $12 billion in losses from cybercrime and arrested more than 4,900 people since it initiated its computer crime investigations 30 years ago, the agency’s deputy director, A.T. Smith said Tuesday. Regardless of the size of a company, Mr. Smith said it’s important for a business to have a response plan in place before a breach occurs, and to quickly notify law enforcement so agents can spring into action sooner rather than later. “It’s probably only a matter of time” before your company becomes a victim of cybercrime, he said at the Dow Jones Global Compliance Symposium yesterday. One of the obstacles to bringing cybercriminals to justice is the fact many of them are located in Russia and other Eastern European countries that don’t have extradition treaties with the U.S., and won’t hand over alleged criminals for prosecution. The State Department is working to develop better cooperation with the government in Ukraine, Mr. Smith said. On another front, a bill before Congress would let agents use the RICO organized crime statutes to go after these cybergangs, which Mr. Smith said can be very small and loosely organized. Many of these loose networks of cyber bad guys communicate with each other on the Internet, with one gang maybe creating malware that can steal information, a second group introducing that malware into companies’ computer networks, a third tier of criminals using the stolen data to make counterfeit credit cards and a fourth level of street criminals using those fake cards to make illegal, purchases. Editors Note: The fourth level being the criminals traveling the country using the cards in the stores that's getting busted but never connected back to the first level. (Source wsj.com)

Wal-Mart will turn the electronic receipt into a sales tool  The world’s largest retailer plans a national rollout next week of electronic receipts that it will e-mail to shoppers. That will allow Wal-Mart to collect data about consumer purchases and send shoppers offers for products they like. The retailer will identify the consumer by asking her to type in her phone number at checkout. If she has an account, the phone number will link her purchases that day to her account. Wal-Mart will launch a national marketing campaign to introduce the e-receipt program and encourage consumers to create Wal-Mart accounts. Thomas says the e-receipt initiative is somewhat similar to the Savings Catcher program Wal-Mart rolled out last month. A consumer who signs up is alerted when an item she bought is offered at a lower price by a Wal-Mart competitor in the same market. When that happens, Wal-Mart refunds the consumer the difference in the form of a mobile gift card she can use on her next shopping trip. It’s like a loyalty program,” Thomas says, “without the loyalty card.” (Source internetretailer.com)

Georgia lawmakers approve bill to deter cargo theft  A bill on the Georgia governor’s desk would stiffen the punishment for truck, rail or container cargo thieves. The Senate voted unanimously to advance a bill that is described as taking “criminals and organizations head on.” House lawmakers voted 116-55 to agree to changes in the bill, thus clearing the way for HB749 to move to Gov. Nathan Deal’s desk. During recent discussion on the bill, Duncan pointed out to lawmakers that “very sophisticated criminal networks have moved into Georgia and have begun to take advantage of our laws and our businesses in regard to stealing cargo.” Sponsored by Rep. Geoff Duncan, R-Cumming, the bill would establish cargo theft as a specific offense and impose escalating fines and punishment based on the value of goods or controlled substances stolen. (Source landlinemag.com)

Former retail HR executive from Toys R Us and Target-Dan Caspersen- hired by Miami Dolphins to oversee HR department in wake of last year's bullying scandal  They also hired a longtime FBI employee to oversee security. Caspersen was executive vice-president of human resources for Toys 'R' Us from 2006 to 2013, and vice-president of human resources for Target from 2001 to 2006 and was very well known in the Loss Prevention community of both organizations. (Source canadiansecurity.com)

Avery Dennison RFID Tracking Processes Reduce Complexity and Risk for US Apparel Retailers and Brands  Avery Dennison Retail Branding and Information Solutions, the world’s leading provider of RFID-based inventory management solutions for apparel, announced today further details of its ability to meet the requirements of the licensing agreement with Round Rock Research, LLC for radio frequency identification (RFID) tags, labels, and readers. “This license agreement, which encompasses a simplified audit process, reduces time, energy, and risk for US based Apparel Retailers and Brands who use Avery Dennison RFID inlays,” said Shawn Neville, president of Avery Dennison RBIS. (Source businesswire.com)

According to our sources Dunkin Brands in Boston is still looking for a Vice President of Loss Prevention

Quarterly Same Store Sales Results

Supervalu Q4- Save-A-Lot up 2.1%, Retail Food segment up 0.2% with net sales up 1.4%
Brinker International Q3 company-owned restaurants up 0.7% with sales up 2%

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Can Virtual Identities Eliminate Fraud?
There is no one that likes identity theft, but after 20 years of watching it climb consistently upward annually, a certain level of acceptance has set in. A real-world merchant has a variety of options for proving to their satisfaction that you are who you say your are – a photo ID, a fingerprint, a full DNA scan – whereas a merchant online has to rely on consumers to create strong passwords and not make the answers to the security questions on their accounts easily guessed or learned. Last year identity theft fraud was a $21 billion dollar problem, according to analysts, and MiiCard founder, CEO and chief corporate coffee specialist James Varga says the time has come to stop trying to take 5%-10% bites out of the problem and move on to taking bigger, more dramatic swipes at it. MiiCard is global online identity service (IDaaS) platform that guarantees an individual’s identity to the level of an offline photo ID check in an online context. Varga says that more than reducing fraud, MiiCard also has the potential of changing how some services are offered. For example, because of the access to consumer financial data MiiCard can securely offer, loan underwriting could change its paradigm for assessing borrower eligibility. (Source pymnts.com)

FACT: Retail chains who use their stores to drive e-commerce sales grow twice as fast as those who don't use their stores  The 24 retail chains ranked in the 2014 Top 500 Guide that used their stores to strategically drive e-commerce grew at twice the rate of Top 500 chains that didn’t. Of the 159 chain retailers ranked in the 2014 Top 500 Guide, the 24 chains that used their bricks-and-mortar locations to offer such services as buy online and pick up in store, ship to store and return to store increased their combined annual web sales 27.0% to $23.84 billion from $18.77 billion. That’s twice as fast as the remaining 135 chains that offered only limited or no store-based shipping options. Those chains increased their collective web sales 13.4% to $64.91 billion from $57.25 billion. (Source internetretailer.com)

Is E-Commerce the Next Big Thing for FedEx?

"Fraud is not a person - it is a dynamic grouping of statistics that deviate from the norm."
Stuart B. Levine, CFI, CFCI
CEO, The Zellman Group & Zellman Fraudnet


Canadian Push
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More Canadians leaving their jobs after just 2 years  Canadians may have some commitment issues when it comes to their jobs, according to a new poll by employment website Workopolis. The online survey found that about half (51 per cent) of those polled said they had been in the same job for less than two years, while 30 per cent said they had held one job for more than four years. That compared with survey results from 1990-2000 where just 16 per cent reported holding that same job for less than two years, and fully 60 per cent who said they had been in the same job for more than four years. People's career goals have changed in the last 20 years. Today's workers appear more willing to "job hop" to find the perfect position rather than stick it out for 30 years in the same place. (Source ctvnews.ca)

DSW moving into Canadian market; buys 44% stake in Canada’s Town Shoes  With sales of $264.7 million in its last fiscal year, Town Shoes is Canada’s largest footwear retailer, operating 182 stores, primarily under The Shoe Company, Shoe Warehouse and Town Shoes banners. (Source chainstoreage.com)

Thieves break into downtown jewelry store in Okotoks, Alberta  A downtown Okotoks jewelry store was hit yet again by thieves. Two criminals broke into Wild Rose Jewelers & Gifts on Elizabeth Street the evening of April 7 through an empty business location next door and in three minutes left with tens of thousands of dollars worth of merchandise including watches and silver jewelry. Wild Rose Jewelers & Gifts manager Natasha Yanikyan said this is the third time criminals targeted the store in just as many years. (Source westernwheel.com)

Halifax man charged in violent Cash Trader robbery  Timothy Mark Cobb was arrested at a Lemon Walk residence in the Spryfield area of Halifax on Tuesday evening. A Halifax Regional Police/RCMP release said Cobb faces charges of robbery, wearing a disguise, forcible confinement and four weapons offences. Police were called to Cash Traders on Sackville Drive at 5:30 p.m. on March 21. They were told a suspect had entered the store, assaulted the 64-year-old male employee, stolen jewelry and fled on foot. (Source thechronicleherald.ca)

Ontario thieves make off with $15,000 in hair removal products
Press Releases

Sony Launches Two Outdoor Infrared Bullet Cameras

IPELA ENGINE EX IP Cameras Incorporate Sony’s View-DR with Advanced Infrared Technology to Produce High-Quality Video in Extreme Light or Dark Conditions

Sony Electronics is expanding its widely used E Series of IPELA ENGINE EX IP cameras with two new infrared (IR) bullet cameras. The SNC-EB632R and SNC-EB602R both feature Sony’s Exmor CMOS sensors, which provide exceptional light sensitivity. They also combine Sony’s wide dynamic View-DR technology and built-in IR illuminators. This helps identify close and distant objects and generates excellent color video in brightly lit environments. Clear black and white video is produced even in darkness as low as 0 lux.

“Many security installations require IP cameras to function in lighting extremes, from full daylight to full darkness,” said Kenichi Mori, director of marketing and product management for Sony Electronics’ Security Systems Division. “The SNC-EB632R and SNC-EB602R are true day/night cameras that can automatically adjust to the level of light in order to produce excellent video in almost any kind of lighting environment.”

The SNC-EB632R, a 1080p camera, can produce color video with a minimum illumination of 0.1 lux at 50 IRE. The SNC-EB602R is a 720p camera which can produce color video with a minimum illumination of 0.05 lux at 50 IRE. At 50 IRE, the SNC-EB602R supports IR illumination up to25 meters (82 feet), while the SNC-EB632R supports IR illumination up to 30 meters (98 feet). They are also designed for outdoor use, use image stabilization technology to minimize the effects of camera shake, and are IP66 rated to be water-proof and dust-tight. In addition, both IP cameras feature Sony’s IPELA ENGINE EX signal processing system, including:

View-DR technology that enables wide dynamic range capabilities up to 130dB in HD
XDNR noise reduction technology that generates clearer images in low light
DEPA Advanced technology that incorporates video analytic capabilities at the camera level

High Frame Rate of 30 frames per second to capture smoother, more detailed video that is easier to analyze frame by frame

The SNC-EB632R and SNC-EB602R are expected to be available in the third quarter of 2014. They will be supported by major VMS providers, including Aimetis Corp., DVTEL, INC., Envysion, Exacq Technologies, Genetec Inc., Milestone Systems, OnSSI, Salient Systems and Video Insight Inc.

Media Contacts

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Sony Electronics
Jennifer Gill
Muirfield Partners

Retail Crime News
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3 more charged in $80M Eli Lilly warehouse heist in Connecticut  Three Florida men who federal authorities say stole about $80 million in prescription drugs from an Eli Lilly warehouse in Connecticut have been charged with conspiracy and theft, the U.S. attorney's office announced Tuesday. The 2010 theft from the warehouse in Enfield — believed to be the largest theft in the state's history — included thousands of boxes of Zyprexa, Cymbalta, Prozac, Gemzar and other drugs, authorities say. Two other men previously were charged in the case. The U.S. attorney's office Tuesday identified the three new defendants as Yosmany Nunez, 41, also known as "El Gato," of Southwest Ranches; Alexander Marquez, 40, of Hialeah; and Rafael Lopez, 49, of Miami. Authorities say Villa, Nunez and others traveled from the Miami area to Connecticut to gather information for the heist. They allege that Lopez and another person traveled to Flushing, N.Y., and purchased tools to break into the warehouse then went to Connecticut. On March 13, 2010, Marquez drove a tractor-trailer to the warehouse parking lot, authorities say. Later that evening, Villa and a co-conspirator used a ladder to climb onto the roof of the warehouse then cut a hole in the roof and dropped down into the building and disabled the alarm, prosecutors say. Authorities allege Marquez then drove the truck to Florida, where he met up with Villa, Nunez, Marquez and a co-conspirator, and they unloaded the drugs and put them in a storage building in the Miami area. Authorities say some of the stolen drugs were recovered Oct. 14, 2011, in a search of a storage facility. Editors Note: A few of these defendants have also been tied to other warehouse thefts in the Midwest and East Coast and have lengthy criminal records for stealing and selling goods. (Source associated press)

Concord Mills Mall assault spree ends with five people attacked inside, seemingly at random Tuesday afternoon in Concord, N.C.  A Salisbury man was arrested by police in the parking lot of Concord Mills Mall on Tuesday evening after witnesses say he attacked at least five people inside, seemingly at random. A mall employee who witnessed the attack told WBTV the man walked into the Jared Vault at Concord Mills on Tuesday afternoon around 2:45 p.m. The employee saw the man, later identified as 32-year-old David Leon Simpson, of Salisbury, assault the store's manager and another employee. "My biggest fear was whether or not he'd pull out a gun," said Joseph Jarrett, who witnessed the ordeal. "He was just hitting people. Walking by and hitting them." That's when Jarrett told WBTV that Simpson grabbed a stool and shattered a glass case inside the store. When Simpson left the store, he punched a nearby teenager in the face, according to the witness. According to the witness, Simpson was approached by an older, female security guard who he assaulted, along with another person in the mall. According to Concord police, Simpson left the mall and attempted to steal a vehicle from a person in the parking lot but was unsuccessful. Officers tased the man and arrested him, according to the witness. (Source wbtv.com)

Two High End Jewelry store Armed Robberies near Grand Rapids & Detroit may be related  Police in Metro Detroit are investigating a possible connection between two armed robberies at jewelry stores Tuesday in Greater Grand Rapids and Metro Detroit. Late Tuesday afternoon, three suspects robbed Tapper's Diamonds and Fine Jewelry, a high-end jewelry store in West Bloomfield. WXYZ reports three armed suspects entered the store, ordered everyone to the ground and demanded to see Rolex watches and other jewelry. Police say they then took thousands of dollars worth of jewelry. (Source wzzm13.com)

Suspect charged in Food Lion parking lot shooting in Fayetteville, NC  Police said 39-year-old Wendell Thomas was sitting in a red Dodge last Wednesday afternoon when two men approached his vehicle and shot him in the shoulder. Thomas was taken to Cape Fear Valley Medical Center. His injuries were not considered life threatening. (Source abclocal.go.com)

International theft ring targets minorities in Maryland  An international theft ring, targeting upscale homes owned by minorities, has tiptoed into Montgomery County. Investigators say the highly orchestrated crime syndicate, based out of Houston Tx., is targeting Asian, Indian and Middle Eastern residents. In accordance with religious and cultural tradition, individuals from all three ethnic groups often keep large quantities of valuables, including gold, in their homes. According to court records obtained by ABC7 News, the worldwide ring sports a large roster of criminals. Most are Colombian nationals with false identities, living in the United States illegally. The thieves' modus operandi includes breaking into high-end homes, rummaging through bedrooms and offices, stealing currency, jewelry, guns and documents. Most of the stolen goods are then mailed back to Houston to be resold. (Source wjla.com)

Two NC colleges locked down after nearby armed robbery of C-Store - suspect arrested  A man was arrested in connection with an armed robbery of a Winston-Salem convenience store Tuesday morning. The clerk told Winston-Salem police the male suspect asked for a cigar but pulled out a handgun when she opened the cash register. The man reached over the counter and fled on foot with an undisclosed amount of money. UNCSA, just up the street from the incident, was locked down for about 45 minutes. Salem College, about 1/2 mile away, was locked down for about 40 minutes. (Source wxii12.com)

Man shoots kills woman in Cumberland Mall parking lot - commits suicide later

Thieves Hit Chanel Boutique in London - drive Audi Q7 into front window stealing 26 bags = $84,150 - no arrests

Tacoma woman could face life in prison for shoplifting incident - "third strike and you're out" law

Belmont, NC Police seeking 2 suspects for the theft of $6700 in cigarettes from Walgreens

Express employee in Framingham, MA arrested for theft of over $1300 in merchandise

Moca Asian Bistro employee arrested for skimming credit cards in Chantilly, VA; information off over 1000 cards captured

Robberies and Burglaries

Baskin Robbins – Portland, OR – Aggravated Robbery – employee threatened with syringe of AIDS
Chevron – Melrose, FL – Burglary, Theft, Arson – 14 and 18 yr old charged
Harrowgate – Chesterfield, VA – Armed Robbery
Hickory Point – Greenwood, SC – Armed Robbery – suspect sentenced to 15 yrs.
IyeTifany Eyewear – Charleston Co. SC – Armed Robbery
Kwik Trip armed robbery in La Crosse, Wis.
Little Caesars – Oxnard, CA – Armed Robbery
Romantix – Iowa City, IA - Robbery
Sultan Bey – Pittsburgh, PA – Armed Robbery


ORC News
$16M ORC ringleader & fence guilty on 31 counts in 'Operation Cash Back' three-year investigation in Denver. N.C.  A Lincoln County businessman accused of being at the center of a multimillion-dollar retail theft ring collapsed in federal court Tuesday as his conviction was being read. Steve Hale appeared to suffer a seizure, according to his attorney, Noell Tin of Charlotte. Hale is the owner of Double D Distributing in Denver, N.C. Hale was indicted in October as part of “Operation Cash Back,” a three-year investigation into a professional shoplifting ring that has already sent six people to prison for sentences as long as seven years. The shoplifters are believed to have been responsible for up to $16 million in stolen goods, mostly over-the-counter nonprescription drugs, and health and beauty products, between 2006 and 2011. Hale was accused of selling the products, often at half their normal wholesale prices, to in- and out-of-state customers. Federal prosecutors also charged him with filing fraudulent tax returns and other financial irregularities. According to the U.S. Attorney’s Office, his convictions are punishable by at least 10 years in prison. (Source charlotteobserver.com)

ORC ring of four arrested in Portland hitting T.J. Maxx and Ann Taylor stores  Prosecutors have filed criminal charges against four people who police have linked to a retail theft ring. Diamond Dugas, 32, Shannvonday Holmes, 34, Andre Lavert, 32, and April Taylor, 34, face one count each of first-degree theft and second-degree theft. Police said they found items from T.J. Maxx worth $989.94 and items from Ann Taylor valued at $1,464.50. Officers later learned that the group had also stolen from the Ann Taylor store at Lloyd Center. Police said when the employee at Ann Taylor tried to confront the group, they ran from the store. (Source koin.com)

South Florida woman steals $160,000 from employer to fund Nordstrom shopping spree; convicted of a similar crime two years ago and sentenced to probation  She was a great customer, but a lousy employee. Katty Hernandez, 27, spent tens of thousands of dollars on luxury purses, shoes and other items from Nordstrom and other high end stores by using her employer's identification and bank account. Hernandez's charges include grand theft, felony organized scheme to defraud over $50,000, felony money laundering and fraudulently using someone's identification. (Source nydailynews.com)

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Vendor Spotlight

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So what does Video Verified Alarms mean to a retail store that already has video and alarm monitoring services? Well for one, when the alarm is triggered in the store from a break in, the video is recording the perpetrator AFTER the point of entry. With Video Verified Alarms it captures 10 seconds prior to the break in. This gives the store security information about how the break in occurred and measures that can be taken at that weak entry point. The moment the alarm is triggered, Central Station is instantly viewing the activity on camera and immediately contacting authorities. NO MORE FALSE ALARMS. Normally when an alarm is triggered at a location from storms or other failures authorities are less likely to take immediate action because of numerous false alarms. However, when authorities receive the call that perpetrators are on the premises and the robbery is in fact taking place, the authorities respond immediately. This means reduced false alarms, less property damage and stolen goods. This is very important to every retail store, especially those with repeat offenders. The quicker the response the less likely the store will have repeating occurrences knowing that this store is protected by an immediate video verification system.

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"Speed Kills" As we all sprint virtually every day to accomplish our tasks, one must remember that, without stepping back and getting out of your box to see exactly where you're going or where you've been, you won't ever be able to see where you really need to go. And in that case speed really does kill and you may never even see it coming because you're moving too fast. That's why three-day-weekends are so great; they make you stop and listen. You've just got to make sure you hear it.

Just a Thought,
Gus Downing

Gus Downing

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