The Mad Money Analyst

Financial Review - August 7, 2007

noreply@blogger.com (Money Analyst) — Tue, 07 Aug 2007 14:09:00 +0000

Below is the bi-monthly financial review covering topics from credit to investing- Many different writers with many opinions. Read. Learn. Succeed. Tracy Coenen presents Dateline NBC investigates identity theft posted at FRAUDfiles. Jimmy Atkinson presents How Many Times Has Your Personal Data Been Stolen This Year? posted at Ask the Advisor. Jason Elder presents Offshore Options For Bankrupts And Those With Poor Credit posted at A Bankruptcy Lawyer's Blog, saying, "This is a great option...

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Accept Responsibility for Your Financial Future

noreply@blogger.com (Money Analyst) — Fri, 03 Aug 2007 19:48:00 +0000

Before you start or continue on your way to your financial future, keep one thing in mind- investing is for the long term. The ups and downs of the market are considerably less risky than not investing at all and sitting on your cash, letting inflation dwindle away at your "nest egg." Simply doing nothing about your retirement now is in many ways more dangerous- whether you're planning for a child's college education, saving for a first home, or starting to save for retirement, do it now! Long...

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Analyzing a Company's Coverage Capability

noreply@blogger.com (Money Analyst) — Fri, 03 Aug 2007 17:17:00 +0000

Corporate coverage is essentially a company’s ability to meet the obligations of its preferred stock and bonds. This will greatly influence the company’s ability to obtain credit in the future. So when the coverage ratio is more attractive, loan terms are going to be more attractive, bond ratings will be higher, and bond rates will tend to be lower. An important coverage measurement is bond interest coverage which is the ratio of earnings before interest and taxes (EBIT) to the annual interest...

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The Curious Investor

noreply@blogger.com (Money Analyst) — Fri, 03 Aug 2007 11:13:00 +0000

This just in from the department of shameless self promotion. There are a few sites out in the wonderful world of websites and blogs that haven't quite made it to the front page of the Daily Journal. They may have even been so bold as to contacting the front desk reporter pleading for just a wee bit of exposure. But no luck. Well here's their lucky day. There are a few sites out there that are incredibly interesting in terms of financial know how. Namely, The Curious Investor has a few great...

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Option Premium Valuation: Time and Intrinsic Value

noreply@blogger.com (Money Analyst) — Thu, 02 Aug 2007 17:29:00 +0000

An option premium is the amount that a holder of an option contract pays for the right to buy or sell a number of shares of a security at the strike price up until a predefined date. The premium can fluctuate in value much like a typical stock price. Premium prices also share in the same volatility that a stock price does and in many ways will react to the same information flowing in the market such as fundamental variables, rumors, etc. For example, if a call option providing the right to...

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The World of International Investing

noreply@blogger.com (Money Analyst) — Mon, 30 Jul 2007 17:36:00 +0000

International investing is and should be considered an integral part of any asset allocation strategy. With that said, all investors, regardless of asset allocation model (from aggressive to conservative) must at a minimum consider investing internationally. Every professional money manager or financial advisor is an advocate of investing internationally to some degree. In my personal experience, investing internationally has offered another method of diversification and can be very easily done...

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Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders

noreply@blogger.com (Money Analyst) — Thu, 26 Jul 2007 21:15:00 +0000

The concept of this book is raising traders just like turtles are raised in Singapore. If that sounds a bit "off-the-rocker" as well as interesting, keep reading. Richard Dennis apparently said this to his long-time friend William Eckhardt nearly 25 years ago when what was started as a bet turned out to be a long-time experiment that hasn't really been talked about in its entirety. The book, Way of the Turtle reviews what it takes to be an incredibly successful trader that some call...

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Tips for Selling Short Against the Box

noreply@blogger.com (Money Analyst) — Thu, 26 Jul 2007 20:28:00 +0000

Selling short against the box is a very tempting yet a very tricky, and involving investing method. Often times, only the most experienced investors will be successful with a short sale. This technique is where an investor sells a security before they own it. Here's how it works: an investor borrows shares from their broker then immediately sells the stock. The investor is hoping that everyone will catch on to what seems to be a flaw in the market for that stock, then sells the stock which in...

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Inside The World of Call Options

noreply@blogger.com (Money Analyst) — Thu, 26 Jul 2007 16:09:00 +0000

A call option gives the holder of the option the right to purchase a defined number of shares of the underlying stock/security at a fixed price. This type of option is labeled as "call" because a holder of a call option can call the stock from the writer. At this point the writer of the option is legally bound to selling the stock to the holder at the pre-defined price termed the strike price. When a holder of an option uses his/her right granted by the option contract, it is termed as...

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When is The Right Time to Sell an Investment?

noreply@blogger.com (Money Analyst) — Wed, 25 Jul 2007 02:32:00 +0000

Deciding when to sell individual stocks If you've done the research that it takes to weed out the good stocks from the out-performers, then you know that simply a drop in price is not a sufficient reason to sell. A short term drop in price does not reflect a downward trend. Investments such as stocks should be considered long-term investments, so drops in prices or mediocre performance over several months is not a reason to worry. If you've followed what most Wall Street advocates recommend and...

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Choosing a Stock That Beats the Street

noreply@blogger.com (Money Analyst) — Sun, 22 Jul 2007 20:52:00 +0000

Many investors use many different approaches to pin pointing the stock that will out perform analysts expectations- of course that's the goal anyway. How do you choose the winning stock? Generally I look for companies that are thriving financially with consistent earnings and a reasonable amount of debt. Then I look at a company's portfolio of products and services. Is the company generating sustainable revenue? Does the company seek to understand its customers by listening to the good and the...

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7 Steps to Starting an Investment Portfolio

noreply@blogger.com (Money Analyst) — Sun, 22 Jul 2007 19:02:00 +0000

So you've finally made the decision to start saving for retirement and you want to experience the extraordinary growth of the world financial markets. Great decision! You may feel anxious as well as a bit of anxiety along the way, but it's perfectly normal for beginners. Just remember, all you have to do is get it started. From there it is simply a matter of reading up on investment opportunities and depositing money into your brokerage account. You've already decided how much you will...

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Options Basics

noreply@blogger.com (Money Analyst) — Sat, 21 Jul 2007 23:48:00 +0000

As well as trading bonds, stocks, an other investment types, more knowledgeable investors choose to buy or sell the option to trade securities at a specified date and at a specific price. Options are becoming more well known to independent investors, specifically due to increased understandings of market trends and the the general drive to make more money in less time. In general, an option is the right to buy or sell a specific number of shares of a particular security at a fixed price up...

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Investing Tax Tips

noreply@blogger.com (Money Analyst) — Sat, 21 Jul 2007 22:42:00 +0000

When considering tax consequences of investing, tears start to roll. This is precisely why you should be completely aware of tax consequences your investments might be subject to. Tax laws and regulations are always changing and are quite complex, so be sure to check with a tax consultant for your particular situation. Below are a few suggestions and general considerations regarding investment income and gift taxes. Since 1986 the Tax Reform Act has laid the ground work for rules such as the...

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The Secret to Timing the Market

noreply@blogger.com (Money Analyst) — Fri, 20 Jul 2007 21:08:00 +0000

Investment decisions aren't always the best and there are definitely times when cutting your losses and selling is the best decision to make. However, don't act too quickly; make sure you don't simply sell after a few weeks or months because an investment is under performing. The markets have a somewhat emotional tendency as the ups and downs are perfectly normal given certain historic relevance. Many investors define investing as the constant buying and selling of stocks, and they will be the...

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The Monthly Financial Review

noreply@blogger.com (Money Analyst) — Fri, 20 Jul 2007 18:42:00 +0000

Jimmy Atkinson presents 13 Socially Responsible Careers in Finance posted at Forex Blog. Aaron Wakling presents Don?t Allow A Low Credit Score To Cost You Thousands Per Year posted at The Credit & Credit Card Blog, saying, "Did you know that a low credit score could be costing you hundreds and even thousands of dollars per year, and perhaps even more? What’s more, were you aware that there is something you can do about that?" Eric Hudin presents Estate - Don?t Be Left Holding The Bag posted...

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What to Look For In a Fund Prospectus

noreply@blogger.com (Money Analyst) — Wed, 18 Jul 2007 22:40:00 +0000

There is an abundance of fine print, and odd terminology in a prospectus, so knowing what to look for is essential to being able to weed the good investments out from the great investments. When you find a fund that interests you, contact either the mutual fund company or your financial adviser and request a prospectus for the fund of interest. The prospectus will list a variety of essential items such as: the fund's advisers, restrictions, fees and goals. Along with the prospectus you should...

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Jim Cramer's Mad Money

noreply@blogger.com (Money Analyst) — Tue, 17 Jul 2007 15:44:00 +0000

Consider this a nuts and bolts guide to investing. If curiosity for understanding risk tolerance, defining investment objectives, and doing the basic homework on a stock strikes you, this is the resource you've been looking for. From understanding how and when to buy or sell investments to building a winning portfolio, Jim Cramer's Mad Money has it all. As we all know, Mad Money is Jim Cramer's TV program that offers everything from valuable investing information to educational tips that can...

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Is Health Care Really on its Way to Reform?

noreply@blogger.com (Money Analyst) — Mon, 16 Jul 2007 19:05:00 +0000

The problem: Simply put, the costs of health care services are on a continuous, seemingly unstoppable, upward spiral. Increasing at a rate more than twice as fast as the rate of inflation, health insurance costs are on the rise as well. What could be the cause of this? What can be done about it? A brief description of what lead up to this horrific, uncontrollable cost is needed to really begin to understand why this is happening and why the people who can control it won't. Since the beginning...

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Stock Investing Basics

noreply@blogger.com (Money Analyst) — Mon, 16 Jul 2007 15:40:00 +0000

These basics of stock investing will provide a quick overview of what it takes to weed out good investments from the great investments. Investigate the company you're interested in. If you happen to find a company that interests you, what do you do next? The basic approach before you put your finger on the "buy" button is to get all the information you can about the company. This may sound like an obvious step, but surprisingly many people either stop investigating to early or simply don't...

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Investing in Individual Stocks

noreply@blogger.com (Money Analyst) — Mon, 16 Jul 2007 14:56:00 +0000

Picking the winning stock out of a line-up can be an exciting thrill ride that can yield great profits- two reasons why so many investors opt in to investing in individual stocks. You never know what is going to turn into profit making news next. What the next hot product is? First a company will trigger your profit watching senses. Then you'll do some research to weed out the fluff from the good news, and maybe with some bit of luck you end up saying "That's the one I've been waiting...

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Tune Into the Markets and Become a Well Rounded Investor

noreply@blogger.com (Money Analyst) — Fri, 13 Jul 2007 22:09:00 +0000

The minute you purchase an investment, you are going to run out and get the first business magazine or financial newspaper and read all you can about your current investment and/or future investments. You may even subscribe to financial papers like The Wall Street Journal. If you've invested a small chunk of your life savings in a favorite company, a small blurb on the back page of The Wall Street Journal, which you wouldn't have noticed a week ago, is now going to capture your astute...

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Survival of a Down Market

noreply@blogger.com (Money Analyst) — Mon, 09 Jul 2007 22:02:00 +0000

To climb a markets peaks, you must first ride through the valleys. It can be tough to hold back your emotions and urges to sell while you think you can during market downturns. This is just "the nature of the beast." Eventually markets will reach new highs after a few downturns, but it is difficult to manage emotions as many investors find themselves fleeing for safety in fixed income and cash investments. When the market does in fact turn around, these investors find it very difficult to catch...

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Systematic Investing Could Yield Greater Returns

noreply@blogger.com (Money Analyst) — Mon, 09 Jul 2007 21:16:00 +0000

Investing isn't a set it-and-forget it process. The first step in the process for you may be setting up an account and making the initial investment, but it certainly does not stop there. What you should do is give some thought into how much you can set aside and still live a comfortable life, but definitely do not simply stop at the initial investment. Consider starting a systematic method of investing your money on a routine basis such as payroll deductions. There are numerous options to...

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SIPC Broker-Dealer Insurance Coverage

noreply@blogger.com (Money Analyst) — Mon, 09 Jul 2007 21:04:00 +0000

Congress first created the Securities Investor Protection Corporation (SIPC) in 1970 to help protect consumers of member broker-dealers that fail and/or be liquidated. If securities or cash are missing from customer accounts, the corporation will step in and replace the lost securities and/or cash. Protection is limited to $500,000 per customer which includes cash up to $100,000. SIPC does not protect customers against market risk which could be defined as losses resulting from a fall in a...

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