InvestTalk Podcast & Blog http://investtalk.hitfastforward.com In today's ever changing global economy, understanding investment options can be a daunting, time-consuming task. With all the opinions and hearsay that can bombard investors, education is a key component to success. That's why more and more savvy investors are tuning in to InvestTalk. Sat, 26 May 2012 01:05:36 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 InvesttalkBloghttp://feedburner.google.com 10 Hazards of Buying Individual Stocks. http://feedproxy.google.com/~r/InvesttalkBlog/~3/VPaWDEdz3vs/ http://investtalk.hitfastforward.com/10-hazards-of-buying-individual-stocks/#comments Sat, 26 May 2012 01:05:36 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6377 Today’s Stocks and Topics: Poland and Turkey, India, Investments Offers by Mail, (T) AT and T Inc., (VZ) Verizon Communications Inc., (SCHX) Schwab U.S. Large-Cap ETF, (XLP) Select Sector SPDR-Consumer Staples, New Investor, Portfolio, 401k.

Subscribe to the Investtalk Premium Newsletter for only $9.99 per month and this month get a Free 5-Point Portfolio Smart Scan. http://investtalk.hitfastforward.com/premium-newsletter-sign-up/

]]> http://investtalk.hitfastforward.com/10-hazards-of-buying-individual-stocks/feed/ 0 http://investtalk.hitfastforward.com/10-hazards-of-buying-individual-stocks/ Video Market Commentary, May 2012, Issue 4 http://feedproxy.google.com/~r/InvesttalkBlog/~3/kp5nMlRqBLw/ http://investtalk.hitfastforward.com/video-market-commentary-may-2012-issue-4/#comments Fri, 25 May 2012 15:00:32 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6375 ]]> http://investtalk.hitfastforward.com/video-market-commentary-may-2012-issue-4/feed/ 0 http://investtalk.hitfastforward.com/video-market-commentary-may-2012-issue-4/ Mutual Funds for Beginners http://feedproxy.google.com/~r/InvesttalkBlog/~3/0D3WWmNx1LQ/ http://investtalk.hitfastforward.com/mutual-funds-for-beginners/#comments Fri, 25 May 2012 01:00:36 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6373 Today’s Stocks and Topics: (DIS) Walt Disney Co., (SI) Siemens AG ADS, (AZO) AutoZone Inc., ETFs, American reluctant to invest in Equities, Google, Earnings Report.

Subscribe to the Investtalk Premium Newsletter for only $9.99 per month and this month get a Free 5-Point Portfolio Smart Scan. http://investtalk.hitfastforward.com/premium-newsletter-sign-up/

]]> http://investtalk.hitfastforward.com/mutual-funds-for-beginners/feed/ 0 http://investtalk.hitfastforward.com/mutual-funds-for-beginners/ Insiders http://feedproxy.google.com/~r/InvesttalkBlog/~3/N2mIdhwVamc/ http://investtalk.hitfastforward.com/insiders/#comments Thu, 24 May 2012 01:01:47 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6363 For years professionals and individual investors have been watching the buying and selling of stocks by the insiders to try and gauge the future direction of the market. Generally, if insiders are buying it is assumed the market will rise and if they are selling the market will fall. There is a ratio for this activity and the average ratio over long periods is 2 to 1 to 2.5 to 1. In a recent article by Mark Hulbert he pointed out that in March and April that ratio spiked up to as high as 6.56 to 1 and then in recent weeks, as the market corrected, it collapsed to 1.63 to 1. A high ratio would mean insiders are selling their company’s shares and low ratios mean they are either holding them or buying them.

To try and ferret the truth of these assumptions he refers to a professor Nejat Seythun who has studied corporate insider behavior for years. His conclusions are interesting in that he says insider selling is often meaningless in trying to determine the future direction of the market but insider buying is very different.

Selling may just reflect the insider’s desire to capture profits for stocks awarded to them as part of a pay package. Whereas when an insider buys stocks or refuses to sell them when their company’s stock price is weak it very often precedes a market rally. However, there are times when selling by insiders is meaningful and that is when their stock prices are weak indicating a future weak stock market.

In recent weeks insiders are buying or at least holding their shares as the market corrects. The ratio is far below the average. This is apparently bullish if this professor’s studies are to believed.

I note that nowhere in Mark Hulbert’s article or in his review of the professor’s work did he give a time frame as to when we might see the beginnings of a new rally. We can only take comfort in that insiders are feeling pretty good with this recent market weakness.

Good Trading
Steve Peasley

]]> http://investtalk.hitfastforward.com/insiders/feed/ 0 http://investtalk.hitfastforward.com/insiders/ How Should Retirees Calculate Asset Allocation? http://feedproxy.google.com/~r/InvesttalkBlog/~3/8CpbFh-mPKI/ http://investtalk.hitfastforward.com/how-should-retirees-calculate-asset-allocation/#comments Thu, 24 May 2012 01:01:23 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6370 Today’s Stocks and Topics: New Industrial Strength in U.S.A., World’s New Tigers, Investors Attitude, Sitting Dollars, (GTAT) GT Advanced Technologies Inc., Day Trading, Dividend Investments, Earning Projects, (CNX) Consol Energy Inc., Fiscal Year.

Subscribe to the Investtalk Premium Newsletter for only $9.99 per month and this month get a Free 5-Point Portfolio Smart Scan. http://investtalk.hitfastforward.com/premium-newsletter-sign-up/

]]> http://investtalk.hitfastforward.com/how-should-retirees-calculate-asset-allocation/feed/ 0 http://investtalk.hitfastforward.com/how-should-retirees-calculate-asset-allocation/ IRAs: 5 Timing Rules You Need to Understand. http://feedproxy.google.com/~r/InvesttalkBlog/~3/de-XE8wjitQ/ http://investtalk.hitfastforward.com/iras-5-timing-rules-you-need-to-understand/#comments Wed, 23 May 2012 00:59:11 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6361 Today’s Stocks and Topics: Facebook, Higher Education, Strategies To Beat The Retail Store Apocalypse, (JNPR) Juniper Networks Inc., (FB) Facebook Inc. CL A, Trading Range, (CHL) China Mobile Ltd. ADS, (JNPR) Juniper Networks Inc., (CACI) CACI International Inc. CL A.

Subscribe to the Investtalk Premium Newsletter for only $9.99 per month and this month get a Free 5-Point Portfolio Smart Scan. http://investtalk.hitfastforward.com/premium-newsletter-sign-up/

]]> http://investtalk.hitfastforward.com/iras-5-timing-rules-you-need-to-understand/feed/ 0 http://investtalk.hitfastforward.com/iras-5-timing-rules-you-need-to-understand/ What’s Next for the EU and the Markets http://feedproxy.google.com/~r/InvesttalkBlog/~3/zwQWMPk4a9k/ http://investtalk.hitfastforward.com/whats-next-for-the-eu-and-the-markets/#comments Tue, 22 May 2012 01:00:01 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6354 This morning the news has shifted from when will Greece leave the EU to what plans and ideas the EU has to spur growth. Greece is still likely to be booted out or leave on their own but the rest of the EU is trying to move past whatever happens in Greece. In fact they need to set up a mechanism for any country to leave the EU in an orderly fashion. More countries, someday, will exit the Union either because they have to for their own survival or the core countries will not tolerate obscene violations of the rules. In fact why didn’t they set it up years ago in the first place? The reasons were simple: they wanted to make sure that once you were in the EU that there was no way to exit. However, they weren’t too bright were they? How could you not see that at some time in the future a country was going to violate the various rules to such an extent that you ‘want’ them out? In fact they let a number of countries join the EU that did not meet the requirements to join. And the main reason for the violations was because these countries did not meet the debt ratios the EU required. It was a flawed system and still is.

Regardless, Europe is going to be an issue that is not going away anytime soon but the stock market will begin to look beyond it. If the Europeans make a passing effort to deal with their issues our market is going to rise. Summer may be a time of uncertainty but that uncertainty is going to be a great entry point to buy good stocks at low prices. The problem with that is that professionals are already lining up to do that which may mean corrections are not going to be very deep.

On the other hand we do have a presidential election here in the U.S. in the Fall. It is a never ending struggle.

Good Trading
Steve Peasley

]]> http://investtalk.hitfastforward.com/whats-next-for-the-eu-and-the-markets/feed/ 0 http://investtalk.hitfastforward.com/whats-next-for-the-eu-and-the-markets/ Rally Sign? Oversold market. http://feedproxy.google.com/~r/InvesttalkBlog/~3/q0u-Y6cF6Pg/ http://investtalk.hitfastforward.com/rally-sign-oversold-market/#comments Tue, 22 May 2012 00:59:07 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6358 Today’s Stocks and Topics: Dow Jones, Charting, (AMD) Advanced Micro Devices Inc., (TCP) TC PipeLines L.P., (WPZ) Williams Partners L.P., Facebook vs. Apple, (CAT) Caterpillar Inc., Managed Accounts, (FB) Facebook Inc. Cl A.

Subscribe to the Investtalk Premium Newsletter for only $9.99 per month and this month get a Free 5-Point Portfolio Smart Scan. http://investtalk.hitfastforward.com/premium-newsletter-sign-up/

]]> http://investtalk.hitfastforward.com/rally-sign-oversold-market/feed/ 0 http://investtalk.hitfastforward.com/rally-sign-oversold-market/ FB http://feedproxy.google.com/~r/InvesttalkBlog/~3/J47oVrkJZ2Q/ http://investtalk.hitfastforward.com/fb/#comments Sat, 19 May 2012 01:06:42 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6348 It’s Facebook Friday. The initial public offering of the stock has reached manic levels as everyone tries to get in on the IPO. The hype about it seems to ignore the facts. Sure it is exciting and certainly the stock market could use a little positive press, a nice change from the ugly game of chicken that Greece is playing with the rest of the EU, but let’s look at the numbers Facebook produces.

First, an IPO price of $38 puts the value of the company at a little over $100 billion. A very large company by any standard. However, a company is worth what it earns. There is a relationship between earnings, the growth of earnings and the ultimate value of every public company. Facebook earned in 2011 one billion dollars. That means that their P/E is 100 at the IPO price. That is a steep price to pay when the market P/E is 15. Maybe it’s worth it if growth in earnings doubles over the next year. The problem with that is that sales revenue shrank 6% last quarter and it certainly does not give me any warm fuzzy feelings that earlier this week General Motors pulled their advertisement from Facebook saying it is not working.

Facebook is a great company but they still have to turn those millions upon millions of users into revenue generates for the company. and that revenue has to grow just as fast as new users utilize their system and that, at least so far, is not happening.

I am sure it will be a successful IPO launch and the stock price will rise but the facts tell me it is not going to be easy to maintain that lofty value.

Good Trading
Steve Peasley

]]> http://investtalk.hitfastforward.com/fb/feed/ 0 http://investtalk.hitfastforward.com/fb/ How to Protect Your Retirement Investments from Scams. http://feedproxy.google.com/~r/InvesttalkBlog/~3/CdYu2q5x3ho/ http://investtalk.hitfastforward.com/how-to-protect-your-retirement-investments-from-scams/#comments Sat, 19 May 2012 01:06:26 +0000 Investtalk http://investtalk.hitfastforward.com/?p=6351 Today’s Stocks and Topics: The Dollar Rally, Economic Numbers from in Japan, (RBC) Regal-Beloit Corp., (FB) Facebook Inc. CL A, (BAC) Bank of America Corp., Stocks, (RCI) Rogers Communications Inc. CL B, Preferred Stocks, Ethical Investments, the Falling of AAPL IPO, Taxes, (MA) MasterCard Inc. CL A, (AEN) Antrim Energy Inc.

Subscribe to the Investtalk Premium Newsletter for only $9.99 per month and this month get a Free 5-Point Portfolio Smart Scan. http://investtalk.hitfastforward.com/premium-newsletter-sign-up/

]]> http://investtalk.hitfastforward.com/how-to-protect-your-retirement-investments-from-scams/feed/ 0 http://investtalk.hitfastforward.com/how-to-protect-your-retirement-investments-from-scams/