InvestorPitStop.com

jrs87sch@yahoo.com — 2009-05-27T01:10:36-04:00

(null)

It’s Obama’s Economy Now! How Do I Invest?

jrs87sch@yahoo.com — 2009-05-14T23:16:36-04:00

Regardless of your political leanings you have to give the Obama administration some credit. ...After a scary start in which the Obama administration did not appear to have a real handle on the economic crisis, the administration has settled in and has thrown every piece of stimulus that they could find at this economy in order to avoid a really severe economic meltdown. ...Give Ben Bernanke a lot of credit for supplying most of the oxygen for all those sighs of relief out there, his fearless printing press has really made the big difference. ...Unemployment is slowing, the stock market has stabilized, and the Nasdaq is up 10% on the year. In addition, consumer confidence has increased and that light we see at the end of the real estate market tunnel is not an incoming train. ...The bad news is that major inflation and/or stagflation signs may be starting to appear. Oil is up nearly 50% off its lows, the dollar is starting to weaken, and interest rates are starting to rise. These will be the major hurdles in this economic recovery, and we cannot go on printing money forever. ...Realize that this rally is a “government generated rally” by historical amounts of stimulus. This is not the time to go back on automatic pilot with blind optimism. There will still need to be real economic growth and real profits from a lot of sectors. This is where the education that you get in our investing course really pays dividends. ...Smaller companies tend to have more flexibility than larger companies stocks and can bend much easier in the storms ahead. Heavy inflation and new regulations will require a lot of flexibility that the larger companies generally do not have. ...China will most likely lead the world out of this global recession, and there is a lot of money being poured into these economies. The BRIC countries are loaded with opportunities and having some money in the ETF’s EEM) and (VWO) should make for great long term plays in your discretionary portfolio. ...Treasury Inflation protected securities, (TIP) will be very popular when the heavy inflation starts to hit, and we have already seen them jump when Ben Bernanke revs up the printing presses. ...The longer term investor has seen the majority of carnage already in this stock market, but there may be another big stock market tumble around the corner. This recent rally has really been about government stimulus and not about long term profits and economic growth. ...It’s easy to say that these profits and real economic growth will be there in time, but only time will tell for certain as to how quickly this economy will re-invent itself. ...Order Barron's Magazine and save over 40% off the newsstand price. Priceline.com Hotels - save up to 50% ...

What To Do In This Stock Market Rally?

jrs87sch@yahoo.com — 2009-05-06T23:10:56-04:00

At the time of the first post (3/23) the S&P was around 750, and I recommended that the long term investor get back in the market. ... My comment on the market back then was: “At this level, I think the market is still relatively a good value”. ...Some people will tell you to get out and others will tell you that we are in the early phases of a major bull run. What this illustrates is how hard it is for the average investor to “beat the market” and time when to get in and out of stocks. ...Many active money managers will claim they have superior skills and magic crystal balls that tell them when to buy and sell. ...most of these managers underperform the market in the long run. So as a general rule of stock investing advice, I recommend the average investor to stay away from active money managers and mutual funds which are expensive and provide little real value. ...For those who like to study the market in a historical perspective, one of the most prominent valuation tools is the so-called 10-year Shiller P/E, named for Professor Robert Shiller at Yale. This measure smoothes out the earnings cycle over a 10-year period and this way avoids the bumps that the 12-month trailing or forward P/E has. ...So with the market at 870, you have a P/E of 14.5 That is a quite reasonable number; in fact it is slightly under the 200-year average of 16. ...Historically, for those who invested at times when the Shiller P/E is below 16 the returns have been good. Professor Shiller ran the numbers and in this respect “good” means a 7-10% yearly return, which is what you can probably expect in the long run. ...Those people are now sitting on heavy losses and on top of that have missed a 30% market rally. The lesson is age old and yet investors keep missing it: Do not let the market’s mood swings dictate your investment strategy! ...If you put money in the market at regular intervals (so-called “dollar cost averaging”) and stay properly diversified (by using ETFs) and stay away from expensive active managers and mutual funds who promise to “beat the market” you are well on your way to a sensible investment strategy. ...I simply do not believe I have superior market timing skills so I am not going to bet my portfolio on that assumption. ...As you know, I recommend the average investor (with a million or less in liquid assets) use low cost ETFs to diversify. For those who like to speculate in individual stocks I recommend you limit this to a very small part of your portfolio. ...But it only represents about 5% of my portfolio and that is the only trade I have made. ...I sold the particular stock because it is a financial stock and I am still uncomfortable with the health of the US and European financial sector. I also think the housing market has another nasty leg down (more on that in my next article) and banks will suffer in that scenario. In the rest of my portfolio I stick to ETFs which are low cost, diversified and let me sleep at night. ...This is money that I won’t touch the next 20-30 years and with the market at a current P/E of 14.5 I am confident it will provide a nice return. ...If you look at valuations, use the Shiller 10-year P/E and buy when below trend ...

Office Depot Stock Gains 177% in Three Weeks and There's More to Come!

jrs87sch@yahoo.com — 2009-04-16T15:05:52-04:00

We've all enjoyed a good rally in the past couple weeks, but where are the stocks that have been knocked down so badly that the potential profits are mind-blowing? A few weeks ago I had my eyes on Office Depot, Inc. (ODP) priced at nearly $0.70. On April 16th, 2009 the price is $1.94. That's a 177% RETURN! Take a look at the stock chart from early March to mid-April: The great thing about this stock is that it still has a lot of upside potential left, even in the short-term because it has been knocked down so far. The reason why Office Depot's stock was (and still is) so cheap is because they took a huge write-down on impaired assets four Q4 2008. I would bet that they decided to take these write-downs in the midst of all of the financial company write-downs. This way they look really good when things start to turn around in both the stock market and the real economy. The only problem with this stock is that the company and the office supply industry as a whole has reached a high saturation level, and it is not expected to grow significantly in the next two years. However, this stock is way undervalued for a solid household name like Office Depot. Compared to its competitors, Staples and Office Max, it is very undervalued, and has huge price discovery potential for the future. The investing advice to take from this stock analysis is that Office Depot (ODP) can be a great short term play if you expect earnings to be dismal for the Q1 2009 results that will be reported on 4/28. It could also be a long-term (2-4yrs) investment; the stock could potentially go back up to its 52 week high of $14.40! How would you like to have a 640% return on your investment in 2-4 years? There are very few investments in the world that exist with this kind of return. As I, Warren Buffett, and many other investors believe, this market has presented opportunities of a lifetime. If you would like to get started trading in your own online account, try TradeKing or Zecco.com . They are both great services, so give one a try. ...Order Barron's Magazine and save over 40% off the newsstand price. ... ...-- AddThis Button END -->

Honda Will Benefit from GM, Chrysler in Trouble

jrs87sch@yahoo.com — 2009-04-02T20:16:17-04:00

Lately, the media has been focused on what is going to happen to some of America’s biggest business icons: GM and Chrysler While there’s nothing wrong with that, my mind always has “the wheels turning” and wondering how I can profit from what’s going on in the media. ... With the focal point being on a GM/Chrysler bankruptcy, their bleeding and “wheel spinning”, it gives the CEO of Honda and other Asian automakers (and even Korean automakers like Hyundai) an edge at this time. As the auto industry got hit from the global slow down, GM (GM), Ford (F) and Chrysler took it on the chin the worst. ...If your main competitors aren’t “breathing down your neck” and they are “licking their wounds” and trying to just stay afloat, that gives you an advantage that you didn’t have before. If the yen was unusually strong before (USD/JPY exchange rate was at 87.00 but is now closer to 99.00 on a weaker yen), and it’s much weaker now…then that helps them as well. So coupling a weaker yen with a potential GM/Chrysler bankruptcy....that equals great advantages for Honda and its shareholders. Therefore, it doesn’t even matter whether GM and Chrysler go into bankruptcy for Honda to keep that advantage. ... All the time that it takes them to do this (and it will take a while with a new CEO, etc.), will give Honda a great “lead time” over Detroit once again. As stocks stabilize and turn upward as we come out of the recession (finally) in the upcoming months, the yen will weaken materially. ...All of this combined will get the Asian automakers a boost in the next 12 to 36 months. Those that realize this now and buy stocks like Honda while its price is still cheap could see gains of 50% or more in that time. ...Keep in mind that this is an “investment idea” and so it shouldn’t be a “margined trade”. I say that because it will take “time” for this to occur and margin interest would eat you alive. Also, if the stock did retest its lows in the short run, it would eat up your account balance. If you have bought with cash and plan on holding for years, then this won’t matter. ...The weakening won in Korea and the recently weakening yen in Japan will also work in these automaker’s favor. ...They can buy Asian automakers that trade on U.S. exchanges like Honda (HMC) and Toyota (TM) and they can also buy currency pairs in the forex market that take advantage of a weakening yen (like USD/JPY and EUR/JPY). If buying USD/JPY or EUR/JPY, it might be best to allow them to solidly trade and close above their 200 Simple Moving Averages. ...Open an account at TradeKing. Order Barron's Magazine and save over 40% off the newsstand price. ...

Economy Recovering? This Indicator Seems to Think So!

jrs87sch@yahoo.com — 2009-03-19T13:14:34-04:00

You know, when an economy does start to recover, it’s not widely known at the time. In fact, the news will still be as full of “gloom and doom” as ever even when it starts. So you won’t know when the economy is turning by listening to the nightly news. ...Well, here is one widely watched economic barometer that institutional investors have used throughout the years. ...Now you may think, “What in the world does the price of copper tell us about the economy?” ... Here’s why. ... Because this commodity is so broadly used (in the building of homes and offices for plumbing and wiring to the building of computers and automobiles). You can literally see the broad demand put upon this commodity as the demand starts to “tick up” for these goods. With other leading indicators “ticking up” recently such as Housing Starts and Building Permits, I took a new look at copper as well to see what I saw. ...Copper breaks its downtrend and heads higher for the first time in almost a year! ...As you can see from the chart above, copper has not only broken its downtrend but also its sideways range and is preparing to head higher. Now how can that happen if there’s not more “copper buying” going on around the world. On top of this, it seems that crude oil prices have finally stabilized too, and once oil prices finally hold above $50 a barrel again, it should be another “confirming sign” that the global economy has BEGUN the process of turning around. I say “begun” because it takes time for the U.S. and global economy to be in “full bloom” once again. ...It means that if you are a long term stock investor, these could be better times to be a buyer (with cash, no margin buying) of ETFs and mutual funds if you have at least a 5-10 year time horizon for the investment. For the currency investor, it means that you need to be on guard for the “dollar party” to come to an end once the world finally does realize that the global economy is turning. This could help the AUD/USD, NZD/USD and EUR/USD for instance as dollars are sold and commodities and inflation bloom once again. The former two pairs do best when commodities stabilize and boom once again…and the latter does good simply when the U.S. dollar does not do good since it acts as the best “anti-dollar” out there. ...Stay on top of the game with InvestorPitStop.com's stock investing strategies and tips. ...Open an account at TradeKing. Order Barron's Magazine and save over 40% off the newsstand price. ...

What Stocks Are Prospering In these Sluggish Times?

jrs87sch@yahoo.com — 2009-03-02T11:09:00-05:00

Obama & Bernanke Say the Recovery Will Be Slow, yet That is Good for These Stocks! It’s no secret that credit is tight right now and loans are hard to come by. ... It’s punished Detroit as well as the Japanese auto makers a like. Not only has this been a credit issue but it’s been a “jobs” issue as well. The unemployment rate has grown so much lately (currently 7.6%), that either you’ve lost your job or you know someone who has. ...This has been a night mare so horrid for the auto industry that unless the government bailed them out, we probably wouldn’t have an auto industry left. That would be sad since (as Obama put it last night) we invented the automobile. ...However, there is a bright spot in all of this for the investor to consider. If you and I are holding on to our cars longer and we’re not making any new purchases, then we are more likely to repair the ones we’ve got in order to make them last longer. Therefore, this has caused the auto parts industry to soar recently, as Americans all over the place repair their vehicles rather than get new ones. ...So with that thought in mind, I’d encourage you to look into a few auto parts stocks like: ...O’ Reilly and AutoZone have both recently knocked out 52 week highs and Advance Auto Parts has started a recent uptrend since last October. ...As we heard from Obama’s speech last night, the recovery will be gradual and slow. ... Knowing this, there’s a great chance that individuals and corporations alike may be repairing their cars and “fleet” instead of new purchases until we get out of this recessionary slump. Bernanke told us yesterday that it may take until the end of 2009 or into 2010 until the recession has ended and we’re out of the woods. Therefore, these stocks could still “have legs” for quite some time knowing that things aren’t getting better tomorrow. So since things aren’t getting better in the short run, investors might as well seize the opportunity to help their ailing portfolios by buying companies that are prospering NOW. There are other industries and companies that are doing well in these tough economic times. We go over things like this in more detail in our online investing course. ...Stock investing may be as difficult as ever right now, but there are always opportunities. You just have to work hard to find stocks that are and will be prospering. Order Barron's Magazine and save over 40% off the newsstand price. ...

U.S. Dollar Forecast for 2009

jrs87sch@yahoo.com — 2009-02-20T10:17:58-05:00

Lately, I've been asked a lot about where I see the U.S. dollar going in 2009. So let address this for a moment. Specifically, I think the dollar will gain against the Japanese yen (USD/JPY pair will rise) throughout 2009. While formerly, the yen and dollar rose as the Dow crashed, you will notice that the yen is backing off quite a bit even as the Dow sits on its lows as of this writing. Yet the dollar still rises as the Dow falls. Therefore, I think for the dollar/yen pair, the bias will be in the favor of the dollar and against the yen overall throughout 2009 no matter what the stock market does from here. HOWEVER, when it comes to how the dollar does against most other currencies such as the Euro, Australian dollar, etc. it will very much hinge on how stocks hold up. If the Dow breaks to fresh lows and holds below them, then it is likely that the dollar will continue its strength against these foreign currencies BUT if the Dow and other U.S. indices halt their slide and head higher overall from here, then I think risk aversion dies down and that will hurt the U.S. dollar and cause foreign currencies to rise up against it once again. So right now, I'm bullish on the USD/JPY pair and even bullish on gold. However, stocks are on the fence right now. They can't stay there forever. So we'll have a break one way or the other, sooner rather than later. Once we get a decisive breakout, then we have our new found direction on the dollar. Therefore, my focus will remain on being long (buying) the USD/JPY pair until stocks get off the fence and make a distinctive move to either side. Once this happens, then the trend will be in place for the dollar for the remainder of the year minimally. Author: Sean Hyman -Head Course Instructor at www.mywealth.com

How I Called the Breakout in Gold Three Weeks Ago

jrs87sch@yahoo.com — 2009-02-18T10:49:00-05:00

Back in early January, I wrote an article that focused on a bubble forming in the Treasury bond market. ... I’ll include the links to all of these stories at the bottom so you can check it out for yourself.) ... This was my first tip off that money was about to start flowing elsewhere and gold was the next logical choice since it has held up fairly well in this bear market downdraft. So when bubbles form, you have to ask yourself, Where will this money go once it starts flowing out of U.S. treasuries? Money was still in defensive mode and I knew that it still wanted to run for cover but was getting uncomfortable in being in the treasury bubble. ...Then on Jan 22nd-23rd, I wrote a two part article about why gold was going to break out to the upside soon. ...In the second article, I provided a chart of gold before it broke out and gave some reasons why it would break out. Aside from the bond bubble, I saw the money supply exploding and a stimulus package coming that would eventually flood the market with money (once the government got the Drain-o out and unplugged the banks). So that is a bullish thing for gold as huge sums of dollars are printed, it eventually dilutes the value of the dollar and boosts gold. However, in the mean time, while we’re waiting on that to happen, I also see that fear was dominate in the markets as we had a new administration coming into office (with the uncertainties that it brings) and a bear market in stocks and a global slow down. All of this would take time to work itself out, and that is bullish for gold now even before the eventual inflationary story kicks in. ...Also, I noticed that South Africa (one of the biggest gold miners/exporters in the world) was having electricity problems that were causing a 14% slow down in gold production, which hasn’t happened since the 1800s. ...Then on top of this, we have U.S. interest rates, which are right at zero. ...I noticed that gold has held up relatively well even though the dollar has rallied strongly in the previous months. I also noticed that gold has held up better than most other commodities out there. So there was quite a bit of relative strength that I saw with gold. ...The smart fundamental investors positioned themselves just ahead of the breakout while the technical investors (chart readers) bought in right after the break upward. ...In fact, gold is one of the few investments out there breaking higher right now. ...I encourage the purchase of ETFs over the commodity contract because you can buy with cash, no margin and you don’t have to worry about expiring contracts this way either. There are other gold ETFs out there but most do not have the volume that this one does and so they would have wider spreads to overcome and possibly may not have quite as good of fills on your orders due to there being less liquidity. ...However, for a near term trader that wants to trade the newly formed uptrend, this could be one way to do it. Apply for the Discover® Clear Card today! ... ...

Geithner Reenacts Jim Carrey’s Fun with Dick & Jane!

jrs87sch@yahoo.com — 2009-02-15T10:59:32-05:00

...

A Little-Known Small Cap Stock Ready for Huge Growth

jrs87sch@yahoo.com — 2009-02-02T17:52:10-05:00

Most stocks continue to perform poorly in these uncertain times. That is why it is time for you to start preparing for our next growth cycle, and buy stocks when they are very cheap. Investors should be making strategic investment decisions when the market is down. You should be asking yourself, "What companies are going to come out of this recession on top?" because companies are made and broken in recessions. One company has maintained relative stability, even in rough times, and it has been able to stay under the radar. 21st Century Holding Co. (TCHC) is a property and automobile insurance company based in Florida. 21st Century has just started a new marketing campaign to gain new customers. You may have seen the television ads on CNBC and a few other channels advertising 21st Century Insurance. 21st Century Holding Co. ...Price 2/2/09 : $4.28 Market Cap: $34 million Shares Outstanding: 8 million This is a great stock for the more speculative side of your portfolio. They have a Market Cap of only $34 million and only 8 million shares outstanding (less than 7 million not held by insiders). With such a low number of outstanding shares and a small market cap, any kind of public interest/demand for the stock will cause this stock to rocket straight up. This is something that both William O'Neill (founder of Investor's Business Daily) and Jim Cramer(Mad Money, etc.) agree is great for small cap investing. Small cap stocks with a low number of outstanding stocks (usually < 15 million) shoot way up when it is discovered. If 21st Century gains a large number of new customers with its new marketing initiative or improves their business strategy, this company could enjoy a ride up to a $250 million+ Market Cap. At that market capitalization, the stock price of TCHC would be $31.25! At market close on Feb.2, 2009 TCHC's stock price was $4.28. That's a theoretical gain of 630%. ... ...

How to Get a Personal Loan with Peer-to-Peer Lending

jrs87sch@yahoo.com — 2009-01-22T19:51:20-05:00

Have you ever wanted a loan, but didn't want to charge it on your high interest credit card or deal with the hassle of the bank loan process? You think the credit crisis will hurt your chances at getting a traditional loan? There is a better way to get loans up to $25,000 easily. Peer-to-Peer Lending is revolutionizing the way we borrow and loan out money. Instead of going through a bank or credit card company, you can get a loan from people lending their personal money. Lending Club is a place where people looking to borrow and lend money come together. You simply post your profile and what you need the money for. On the other side, lending people view your profile and loan request. They will loan you the money if they think you're a good match. Lending Club's Straightforward Loans • Borrow up to $25,000 • Rates start as low as 7.88% Borrowers get personal loans at better rates Borrowers typically request personal loans on Lending Club to finance purchases, pay for one-time events (like weddings or continuing education classes), or refinance existing high-interest loans, credit card balances or other revolving debt. Borrowers complete a personal loan request online and can instantly view the interest rate they qualify for. There are no hidden fees, and the interest rate is fixed for the full three-year duration of the loan. -excerpt from Lending Club- Make Money by Lending in Prime Borrowers For those of you wanting to make money, you can lend to borrowers with good credit. If the stock market is making you nauseous and bonds aren't giving you the returns you want, try this. • Lend Money Now Invest money in prime borrowers. Stated interest rates of return up to 19.37%. • Borrow Money Now Rates starting at 7.88%. ... ...

7 Best Mutual Funds for 2009

jrs87sch@yahoo.com — 2009-01-12T06:21:00-05:00

After researching the performance, stability, and income of hundreds of top-rated funds, I found the best mutual funds to invest in for 2009 and beyond. ...One part of my selection process was to find mutual funds with cash flow, either through dividends or bond interest payments (in the form of dividends for mutual funds). ...As you will see, I have included a mutual fund that invests in stocks of alternative energy or "green" companies. ... One aspect that is somewhat more of a near-term strategy is the gold focused fund because of the predicted rise in the price of gold over the next year or two. ...Any one stock or mutual fund can perform well over one or two years by luck, but it takes true skill to manage a portfolio that has good returns over a ten year period. A major failure of many investors that buy mutual funds is that they chase the fund that is currently performing the best or just recently had its best year. If the mutual fund is having an unbelievably great year, then either stay away from it because it's too late or sell it if you own it. ...id=TTaxCG4M2CM&offerid=89813.10000012&type=4&subid=0">Special Free Week offer to either the Print or Online editions of The Wall Street Journal!!! • Trade stocks for free through Zecco.com, the Free Trading Community. www.zecco.com • Apply for the Discover® More Card today! link goes direct to application page ...

This Stock Will Make Your Portfolio Healthy

jrs87sch@yahoo.com — 2008-12-31T00:49:06-05:00

Get The Wall Street Journal for 75% off! ... With the economy the way it is, it's hard to find any company that is even somewhat sheltered from being beaten down. There is a company, however, that is defying the market's gravitational pull. eHealth Inc. (EHTH) is an internet based health insurance provider for families and small businesses. Their headquarters is based in the same city as Google in Mountain View, CA, and was established in 1997. Despite the downturn, they have doubled the number of policies from nearly 500,000 in 2007 to presently over 1,000,000. The potential for US subscribers is much larger still. They also have a partnership with Alltrust Insurance Agency Co. in China that gives them access to the extremely vast and developing market for health insurance in China. Having a foothold in China gives eHealth the opportunity to grow many times its current size. eHealth's financial condition is outstanding: • They maintain a profit margin of 31% and have very minimal liabilities. • With no long-term or short-term debt, the only significant liabilities eHealth carries are Accounts Payable. • Their year-over-year quarterly revenue growth is at 24%. • The stock price has a PE of 10x, which is low for such a high growth company. I believe eHealth is one of those rare, undiscovered great companies that will skyrocket when investors realize the value in it. This stock has a market cap of less than $350 million and about 25 million shares outstanding. If you asked William O'Neil, founder of Investor's Business Daily, he would say that this is the type of stock that will generate returns into the 1000%'s over time because it fits his time-tested, but strict investing formula. Although the "buy and hold" stock investing strategy hasn't been working in this wild-swing market, eHeatlh's stock has the potential to yield huge returns if you hold it for 3 to 5 years.

Check Out the New Strategy Store

jrs87sch@yahoo.com — 2008-12-27T01:03:14-05:00

The Strategy Store is a new place for investors to get the latest stock trading and investment strategies. Reports and fundamentals on different strategies are found in the Strategy Store. Get the best stock investment advice here at InvestorPitStop.com Right now we have a report on a major multi-billion dollar merger that will be closing early 2009. Find out how to profit from it. It is called the 20% Acquisition Deal at the Strategy Store. You can make over 20% return in only 2-3 months with very low downside risk!

Absolutely Free Virtual Stock Portfolio, Win REAL Money!

jrs87sch@yahoo.com — 2008-12-17T00:16:00-05:00

You can win real money for beating the market with your virtual portfolio and creating stock analyses. Win one of the quarterly $10,000 contests or the $3000 monthly contests. Write about stocks and get paid. Did I mention that this is all Free? Updown has made me a better investor; it costs me nothing to make mistakes and I had $1 million to start with. This is a great virtual stock game for those who want to practice before investing, get better at trading, or just want to have fun and make some money. Trade stocks like a pro and don't pay a cent! Just CLICK on one of the links to get started! But if you do want to start a real portfolio with real money with ultra low commissions, $0 commissions, go to: www.zecco.com. There is no minimum to open an account. Accounts under $2500 have to pay $4.50 per trade. That's still the best brokerage deal that I've ever heard. I thought $7 trades were cheap. Cheap? No. 100% Free. Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com

The Fed Cuts Interest Rates Again, Target: 0%-.25%

jrs87sch@yahoo.com — 2008-12-16T14:39:44-05:00

The Federal Reserve came out with new rate cuts on Tuesday, December 16. They have dropped the Fed Funds Rate Target to a range of 0%-.25%. This may be the first time they have ever stated a range rather than a stated rate. The discount rate was cut by 75 basis-points or .75% to .5% from 1.25%. The Dow Jones Industrial Average rallied up to 3% right after the announcement, and then it dropped several minutes later to up over 2% or 185 points. This is the lowest level that has ever come out from the Federal Reserve since it was established. They are going to have to seek other means of easing this beaten up and suffering economy. After lowering rates meeting after meeting, the Fed is running out of tools and is going to have to get creative if they are going to help. The Fed's balance sheet has more than doubled from $900 billion to almost $2.2 trillion. Cutting interest rates is not at all close to a "cure-all". Japan's interest rates stayed at 0% for years, and they have undergone one of the longest recessions any country has seen. ... One thing that we have done right that Japan didn't is mark-to-market accounting. They refused to write-down their inflated real estate portfolios with the hope that the market would turn around soon, but then again that has absolutely nothing to do with the Fed. ...Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com At some point, we have to realize the Fed is not going to save us. ... With automakers and banks still on the brink of failure, the only thing we can do is wait to see what happens, and then move on. Living in Florida, it reminds me of something we do when disaster hits. During a hurricane, all you can do is hunker down and make it through. You have to wait for the storm to pass to assess the damage. ... Trying to repair things in the middle of a storm is almost always a failed effort. ...

Value Investing Basics Part II

jrs87sch@yahoo.com — 2008-12-05T00:27:00-05:00

After reading Value Investing Part I, you now know the basics of what you need to know to invest in stocks that are value picks. The next part of this process gets into more of the details of value investing. Historical research shows that stocks with low P/Es have performed better over time than high P/E stocks. The P/E ratio is the multiple of earnings per share (EPS) that the stock price currently is (Ex: Stock A has EPS of $3, and P/E of 10x; the stock price= $30). However, to find really solid stocks there are lot more aspects to look at than simple P/Es, because the P/E ratio doesn't paint the whole picture of the company. After you have read Part I - Value Investing Basics for Beginners, you should know what type of companies to look for. You now need to follow these guidelines for making sound value investments. You can input these requirements into stock screeners to find undervalued stocks. Most of these ratios are readily available in Yahoo! ...Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com ...Earnings growth of 10% or more over the past 5 years. ...Low Debt relative to Gross Profit- Total Debt should not exceed 3 or 4 times Gross Profit. Although these are not hard, fast rules, these are guidelines that will sift out great companies from the not-so-great companies. If the stock has a low PE with all of these requirements, it is an attractive stock. These requirements make the PEG Ratio important. The PEG ratio equals the PE ratio divided by the expected EPS growth rate for the next 5 years (Ex: a stock has PE of 9 and a five year EPS growth rate of 15%; so 9/15= .6 PEG ratio). Many value investors buy stocks from just the PEG ratio. Although it adds an important element of profitable growth to the PE number, you still have to look at factors other than the PEG. Now you understand the fundamentals of how to Value Invest. This list and Part I allow you to find sound value investments. There are more details that some investors use, which I will post later about. ...t=investcom08-20&o=1&p=8&l=as1&asins=0060555661&fc1=000000&IS2=1<1=_blank&m=amazon&lc1=0000FF&bc1=FFFFFF&bg1=FFFFFF&f=ifr" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"> ... ...Special Free Week offer to either the Print or Online editions of The Wall Street Journal!!!

3 Rocking Stocks to Buy for 2009

jrs87sch@yahoo.com — 2008-11-28T01:00:00-05:00

With the financial crisis still at large, so much damage has already been done in the stock market, and many stocks have become way undervalued. Value Investing is the best way to make money while hitting rock-bottom prices. My mission was to find three consumer-based stocks that are largely undervalued and will do well in the next 9-18 months. Although many analysts have knocked down companies' stocks because they expect weak 2008 holiday sales, the magnitude of these drops in stock prices has been greatly overstated. ...Also, when the individual companies begin to beat earnings estimates again, the stocks will go even higher. This process will take a long time, but if you have patience, investing in these stocks will make your portfolio shine. Special Free Week offer to either the Print or Online editions of The Wall Street Journal!!! ... • Bare Escentuals (BARE)- This natural cosmetic and skin care company has all of the right stuff. They are well positioned in a number of cosmetic stores like Sephora; they also have their own retail and catalog sales. Being natural gives them the eco-friendly and healthy image that so many consumers are looking for. Since they only have a market cap (market value) of $412 million, they have a lot of room to grow compared to Estee-Lauder (HWD)- The famous, ultra-luxurious jeweler has suffered recently because even the wealthy are feeling the pinch. ... At $4.02 per share, this stock has a P/E of 1.3x earnings! ... To make the stock a little more attractive, HWD has a nice dividend as well. • Macy's (M)- Macy's has struggled with this market like most department stores, but this 150-year-old store is still in excellent financial shape. They are not riding on tons of debt like many of its peers do. Macy's stock price has a P/E of 4.2x earnings at $7.03 per share. They will come out of this economic crisis just like it did in the past. Keep in mind that in a normal stock market, most stocks trade at P/Es between 12x-20x earnings if they are not a high-growth company, so even if the companies' earnings are mediocre, then the stock market will price these stocks at this range when the bear market begins to disappear. It's hard to lose when you buy stocks that are priced at rock-bottom prices and have great potential in the future. Remember that you must be willing to wait out the storm with these stocks, and you can thank yourself later. ...

All New Book Store!

jrs87sch@yahoo.com — 2008-11-27T18:39:00-05:00

Check out our New Business and Investing Book Store! There will be more to come, so stay tuned...

Current Merger Arbitrage Spreads, M&A Deals

jrs87sch@yahoo.com — 2008-11-21T22:57:00-05:00

As I said in my last post, ,Make Money On Mergers and Acquisitions, I will be presenting some merger arbitrage spreads. Merger arbitrage (even though not true arbitrage) is the term given to the potential opportunity of making money on the premium paid to the target company by owning stocks of the target (seller) in an acquisition. The area you can make money in is the difference between the current stock price and the buyer's purchase price (if cash deal). It must be paid in cash, because in this market if a buyer offers a stock for stock deal, then the buyer's stock price is likely to fluctuate. That can eliminate the premium if the buyer's stock price drops significantly. ...Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com Here's a list of likely Mergers / Acquisitions: >Constellation Energy Group (CEG )- in September this energy giant accepted an offer from Warren Buffett's MidAmerican Energy Holdings for $4.73 billion. Constellation filed for a shareholder proxy to vote in favor of the acquisition. ...>Rohm & Haas Co. (ROH)- to be bought by Dow Chemical Company (DOW). ...>Foundry Networks Inc. (FDRY)- to be acquired by Brocade Communications Systems Inc. ...Cash offered per share: $16.50 cash ...>Puget Energy Inc. (PSD)- this deal is pending Macquarie Bank's ability to borrow $7.4 billion, which is not easy in these rough economic times. ...I will be following more mergers and acquisitions, so stay tuned for more money making opportunities. There are chances that these acquisition deals might not go through, so these gains are not guaranteed, but likely. ... ...Special Free Week offer to either the Print or Online editions of The Wall Street Journal!!! ... Priceline.com Hotels - save up to 50% ...Find Out On Zecco.com Free Blogs, Forums & Trade.

Make Money on Mergers and Acquisitions

jrs87sch@yahoo.com — 2008-11-15T22:55:00-05:00

With everyone's focus on the current financial crisis, new opportunities to make money have sprung up. Mergers and acquisitions have become an area for opportunity in investing because attention has shifted away from these situations. What happens in a typical acquisition is the buyer (acquirer/bidder) makes an offer to buy a company (seller/target) for more than the seller's stock price currently is (premium). ... As long as the offer is in cash and the deal is successfully executed, there are guaranteed gains for the target company's shareholders. For example, the popular InBev acquisition of Anheuser-Busch presented a huge profit opportunity. ... If you bought shares of Anheuser-Busch (BUD) on Oct. 29, 2008 (long after the acquisition announcement) at $59.83, you would be almost guaranteed a profit of 17%, or $10.17 a share. Now, with the stock at $68.50 as of Nov. 14, the merger presents only a 2.2% return. Annualized, that return is 13%, so it's still not a bad deal. Opportunities like this exist more right now than in a more normal stock market because investors are fearful of stocks in general and are just protecting their money. This takes the focus away from situations in mergers as there is a "flight to safety". It is usually hard to find merger opportunities because the market is efficient enough that investors usually buy the stocks up to the offer price as soon as the announcement comes out. ...Like Warren Buffett says, "Be fearful when others are greedy, and be greedy when others are fearful." Now is the time to be greedy when people are fearful. ... • The deal must be very likely to go through- research news and shareholder reactions to offers. • A premium must be presented to the shareholders- the offer should be significantly higher than the current stock price. • Cash offers are best and easy to value- stock deals can change value because of fluctuations in buyer's stock prices. My next post will be stocks that still present great profits from mergers and acquisitions. I will research which stocks are most likely to yield gains from a successful acquisition. There is always a way to make money, crisis or not, and I will help you along the way! ...Trade stocks for free on Zecco.com. The Free Trading Community. www.zecco.com ... ...The Wall Street Journal!!! ... Priceline.com Hotels - save up to 50%

Tupperware CEO Rick Goings Talks About the Company

jrs87sch@yahoo.com — 2008-11-09T11:19:00-05:00

This is an interview of Rick Goings, CEO of Tupperware, by CBS in April 2008: Jim Cramer recently interviewed Mr. Goings on CNBC's Mad Money show. He suggested that Tupperware (TUP) is a great buy. Tupperware shareholders enjoy a larger dividend yield because of the lower price, constant worldwide growth, and a diversified portfolio of direct-selling products. On Mad Money, Rick Goings said yes that emerging markets are slowing for now, but "[We] still have a lot of runway left to go [to capitalize] on emerging markets. We're like in the 2nd inning of this 9 inning game." I personally know Mr. Goings, and I know I feel confident putting money in a company that is managed by such a great business leader. Tupperware has made a series of successful acquisitions and a better implementation of operations control. This company has held up remarkably well through this downturn in most global economies. The stock is now paying a 3.75% dividend yield.

Value Investing Basics for Beginners Part I

jrs87sch@yahoo.com — 2008-11-04T23:43:00-05:00

Value investing is an investment strategy or approach where the investor buys a stock that is selling below the company's true value, or underpriced. Value investors buy discounted stocks with the belief that the price will reflect the company's true value in the future. Value investing goes against the herd that chases the hottest, fastest rising stocks of the moment for a longer-term ride of returns. The most famous value investor in the world is Warren Buffett, who has generated over 20% average annual returns since the 1970's. ... This stock investing strategy was mostly created by one of Buffett's teachers, Benjamin Graham. He wrote a book on value investing called The Intelligent Investor. This 600+ page book, much like a textbook, gets into the nitty gritty details of his investing strategy and how he came up with it. ...Find a Great Company- Whether it's a company you buy products from, buys products from you, employs you, or if you just love the company, check it out. Also, if it's in an industry that you know very well than you should look into it. You want to love the company you are going to own. It has to be GREAT, not just good or okay. ...It's hard to value a company when it has only been in business for a year. Usually a company that has been successfully in business for 10 or 15+ years makes a good candidate. ...Survivability- Ask yourself, "Will this company be around in 10, 20, 30 years?" If you cannot see the company being around in ten years, you have no business investing in their stocks; after all, you are buying a piece of that company. Say you and three of your friends want to buy a new $1200 HD-TV. Would you want to pay $400 for your stake if you thought the TV was going to die in two years? ...Are they better at some aspect of the business versus the industry? ... These are the kinds of questions to answer when finding out about a company. ...t=investcom08-20&o=1&p=8&l=as1&asins=0060555661&fc1=000000&IS2=1<1=_blank&m=amazon&lc1=0000FF&bc1=FFFFFF&bg1=FFFFFF&f=ifr" style="width:120px;height:240px;" scrolling="no" marginwidth="0" marginheight="0" frameborder="0"> This article should give you something to work on for a little bit. ... Just slow down and think of some really great companies that you'd be willing to OWN not just hold the stocks of. Remember, value investing is all about finding good, solid companies that are priced below their true value. Stay tuned for Part II because I will be posting more on Value Investing Basics. ... You now know the groundwork that value investing in stocks is all about.

Bill Ackman Pushes Target to REIT Spin Off, Pershing Square Capital

jrs87sch@yahoo.com — 2008-10-30T22:05:54-04:00

Hedge fund manager Bill Ackman of Pershing Square Capital Management proposed a deal to Target shareholders and executives that would separate Target's business operations from its currently owned land. The land would become a Real Estate Investment Trust (REIT) spin off, and Target would have to sign long-term land leases with the REIT. His fund already owns 10% of Target's stock. Ackman argues that his deal would create value for Target, and in many cases spin-offs of subsidiaries in companies can create value, but what happens when you pull all of the most valuable assets out from under a company? Wouldn't that take away from Target's ability to get credit and cause Target to become a less valuable company? The balance sheet of Target would show a huge depletion of assets, which is a significant factor in the value of a company. I don't see one good reason why Target would want to pay an inflated rent amount on something they already own. This REIT that Ackman wants to create would essentially suck the value out of Target by driving the cost up. Also, did I mention, the REIT is going to force Target to pay a dividend to it. Ackman claims the dividend won't be that high, but dividend claims can change from quarter to quarter, so who knows? ...Mervyn's department store has gone bankrupt and will be closing all of its stores and firing all employees due to Cerberus Capital Management's structured deal of separating land and retail operations. They do something called "tunneling" where they have the land company charge the retail company an extremely high lease price, and also forced Mervyn's to pay a really high dividend to the land owning company. This is what drove Mervyn's to its end. Cerberus pulled the assets out from under the company, sucked it dry, get to sell off the land, and reap giant profits. Kmart was not helped by Eddie Lampert's hedge fund doing a similar deal where they separated the land and sold it off, leaving Kmart on life-support after a bankruptcy filing. Both Eddie Lampert and Cerberus Capital Management have made exorbitant amounts of money, and they left shareholders and employees absolutely nothing. Bottom Line, these type of deals have proved to destruct value of the company. Management and Shareholders : DO NOT let Ackman's arrogance and financial sophistication seduce you into ruining such a great company. Ackman knows that he can make more money off of the real estate Target owns than he ever could on Target itself. Once he makes anywhere from several hundred million to a couple billion dollars, do you think he will care about Target? ...Find Out On Zecco.com Free Blogs, Forums & Trade.

5 Best Dividend Stocks

jrs87sch@yahoo.com — 2008-10-20T14:44:30-04:00

In times of uncertain earnings for major companies and a stock market that has seen almost a 40% decline in the past year, there has to be another way to make money in the stock market. Even some of the best investors in the world are getting crushed over and over on their investments in this cruel, erratic stock market. Stock Investing can be very confusing, and it seems someone is suggesting one stock pick when the other says to sell that stock. One way to ensure a return on your investment is investing in stocks that have a dividend. ... My mission was to find high-yielding dividends from good companies for independent investors like you. If you want returns in this market, my stock investing advice to you is to consider dividend stocks. ...q=FRO"rel="external" >FRO)- this shipping company moves oil, bulk, and metal ores and continues its earnings growth and dividend growth year after year. This stock currently yields a 39% yearly dividend (or $3.00/share quarterly) at a price of nearly $30. Standard and Poor's estimates the 12-month target of FRO stock to be $59. Even though the yield in a year may be closer to 15-20%, that is a huge dividend! Also, if you buy stock of FRO now, then you can enjoy the gain from $30 to almost $60 and have the 15-20% dividend. ...This large regional bank has held up well compared to other banks during this stock market crisis. This stock is well off of its 52-week high of $73.80, so it has a lot of potential upside gains in the future. This is a solid company with strong growth prospects in the future. ...(PFE)- This drug company has a household name and 7.5% dividend yield at its current price of $17.10. With revenues of nearly $50 billion a year, you know this company is going to be standing strong for a very, very long time. Buy stock in Pfizer if you think a 7.5% dividend and a discounted stock price looks like a great investment. ...(T)- Another stock with a household name, At&t, has a dividend yield of 6.33%. ...Realize that the dividend yields are calculated as a percent of current stock market price and may fluctuate. In rough times, buy stocks with higher constant dividend payments for a stream of income or reasonable gains. ...id=TTaxCG4M2CM&offerid=81276.10000054&type=4&subid=0"> ...Special Free Week offer to either the Print or Online editions of The Wall Street Journal!!! ... Priceline.com Hotels - save up to 50% ...Find Out On Zecco.com Free Blogs, Forums & Trade.

Why Buy Stocks Cheap Like Warren Buffett in this Bear Market?

jrs87sch@yahoo.com — 2008-10-05T11:06:00-04:00

While you may be worried about what to do with your investments in this recessionary stock market, you have to open your eyes to the opportunities out there. ...Warren Buffett has noted that this is a time for great opportunities, and he made a statement to the world about it when he bought $5 billion worth of Goldman Sachs (GS) common stock and $3 billion worth of General Electric (GE) preferred stock. He also made a $4.7 billion investment in Constellation Energy Group (CEG) a few weeks prior to the GE and Goldman deals. It's no question that this man, along with his Berkshire Hathaway company, has enviable investing talent. He has produced a 22% compounded return over the past 40 years! Not even the savviest investors on Wall Street can keep up with that kind of return. Stocks on the whole have taken a beating; some deserved it because they were over-leveraged and run into the ground, but most stocks that have suffered precipitous losses have been oversold. Investing in stocks can be very tricky, but if you understand that stocks can be undervalued because of fear and panic, then you can take advantage of those prices. Strong companies that you can see doing well for years to come have been underpriced in this market; it is your job to find the best undervalued stocks and let them take you on a profitable ride for the years to come. One thing stock investors have a hard time doing is being patient. With value investing in stocks, you have to be patient because other investors in the stock market may not realize the real value of a stock until next month, next year, or five years from now. ...id=TTaxCG4M2CM&offerid=89813.10000012&type=4&subid=0"> ...Special Free Week offer to either the Print or Online editions of The Wall Street Journal!!! ... Priceline.com Hotels - save up to 50% ...Find Out On Zecco.com Free Blogs, Forums & Trade.

Trade Stocks Online

jrs87sch@yahoo.com — 2008-10-04T16:44:00-04:00

Do you want to open a stock investment account that offers deep discounts on trades? Get started on trading stocks on your own by opening an account with Zecco.com. Trade stocks for free on Zecco.com. They also have a free trading community. Buy Stocks Online. There is no minimum to open an account with them, but in order to take advantage of their free trades deal you have to maintain a $2500 balance. For those who don't meet the minimum, each trade is only $4.50. That is one of the best prices you will ever find for an online broker. What better way to improve your stock trading or stock investing skills than to open an online account that has $0 trades. I strongly believe that you have to trade stocks on your own to develop what strategy works for you. Once you invest in stocks on your own for a while, you will get a better understanding of how the stock market works. Trade stock with Zecco; why? because of their low price. Buy shares of stock in seconds with the click of a button. Buying and selling options are discounted on Zecco.com as well. You can sign up for an account online in a matter of minutes. Also, you can deposit funds online. Go out there and get started investing on your own!

UPDATE: House Approves $700 Billion Buyout: Congress Reaches Agreement for Bailout Deal

jrs87sch@yahoo.com — 2008-10-03T10:32:00-04:00

UPDATE: The House of Representatives has approved a modified $700 billion government assistance plan. One major difference is to raise the FDIC insurance for banks from $100,000 to $250,000. Also, the middle class will get a tax delay on the so-called Alternative Minimum Tax. Other tax breaks including alternative energy provisions are included in the bill. Through the long hours of Saturday night and early Sunday morning, US Congress reached a tentative agreement on the proposed bailout deal led by Secretary of Treasury Henry Paulson. The $700 billion deal has not yet been finalized, but the essentials of the bailout have been outlined. But how will this affect us, as taxpayers? ... • Get an ownership stake in companies that receive bailout help. • If any of those companies fail, taxpayers would be first in line to recover assets. • There would also be possible profit-making opportunities for taxpayers if the troubled assets render profitable down the line. The plan will also allow small community banks, pension plans, and local governments to sell troubled assets to the US Government. Executives of companies that seek the aid of the government will have closely-monitored compensation and will not be able to walk away with giant severance packages that some CEOs have enjoyed while being ousted from their suffering firms. The Wall Street Journal reported that both McCain and Obama showed their support for the bailout plan. The Wall Street Journal also reported Nancy Pelosi's (Speaker of the House of Representatives) summary of the deal. ... * Reinvest in the troubled financial markets … to stabilize our economy and insulate Main Street from Wall Street * Reimburse the taxpayer … through ownership of shares and appreciation in the value of purchased assets * Reform business-as-usual on Wall Street … strong Congressional oversight and no golden parachutes" ...Now I am not a huge proponent of bailing out large firms that took on too much risk, nor do I believe homeowners that took on a home mortgage that they couldn't afford should be saved from foreclosure, but you have to allow for some leeway. The government is who pressured mortgage bankers to underwrite unqualified loans in the first place (to increase home ownership), and the mortgage brokers took advantage of people they knew would not be able to afford the house they wanted (they get paid when the contract is signed). It comes full circle; it is too difficult to blame one party. I doubt the Treasury Secretary, Hank Paulson, would push this deal so hard if he didn't believe that our country's economy might completely collapse if something is not done. Go to stock investing advice to find articles focused on the best investments for your money. If you have any questions about certain aspects or opinions you would like to see on this site please let us know by email: Contact Us. ... ...Find Out On Zecco.com Free Blogs, Forums & Trade. Priceline.com Hotels - save up to 50%

Golden Age of Wall Street is Over: Goldman and Morgan to Become Traditional Banks

jrs87sch@yahoo.com — 2008-09-22T00:36:17-04:00

Image courtesy of publicradio.org The Wall Street Journal reported Sunday night that Goldman Sachs (GS) and Morgan Stanley (MS) must abandon their independent brokerage status and become traditional bank holding companies. When the two most profitable and renowned investment banks on Wall Street are forced to abandon their business model, you know the Golden Age of Wall Street is over. The independent brokerages have enjoyed exorbitant profits over the past couple decades by employing huge amounts of leverage and little deposits to show for it. They will now have to answer to the Federal Reserve, meet their requirements, and accept that they might never make the same type of profits that they enjoyed for so many years. Although it is sad to see icons of American capitalism fall to their knees, this is all a part of the risk-return game that the markets are all about. They took too much risk on top of too much debt, and they are now paying dearly for the risks they took. Bear Stearns collapsed, Lehman went bankrupt, and Merrill Lynch was bought by Bank of America all within the past year. With Goldman Sachs and Morgan Stanley leaving their brokerage model, there is no big independent left for Wall Street. Whatever happened to risk management? Whatever happened to liquidity and solvency? Surely these firms employed some of the most intelligent people in the US; some of them knew that their companies were walking a tight rope that may have been frayed. What will happen to New York (the financial capital of the world?)? And will there be a Wall Street comeback in the future, or was this truly the end of a Golden Age? Why Invest in Stocks? Find Out On Zecco.com Free Blogs, Forums & Trade. Priceline.com Hotels - save up to 50%

Opportunity on Samsung - SanDisk Deal

jrs87sch@yahoo.com — 2008-09-17T11:46:00-04:00

Samsung has recently made a cash offer of $5.8 billion to buy SanDisk Corp. ...Samsung offered a $26 a share offer, which The Wall Street Journal reported as a 96% premium over SanDisk's September 4 closing price. SanDisk rejected the offer saying it "undervalues" the company. Their reason for saying $26 is too low is because SanDisk's price has dropped over 75% since last October, and they believe Samsung is trying to take advantage of SanDisk's depressed price. As of 1:33PM on Wednesday, September 17, SanDisk's shares stand at $21.00 as investors wait to see if negotiations continue. There is still a $5.00 premium on Samsung's original offer if that was the accepted price. Samsung can do one of three things at this point: 1 Make a tender offer to SanDisk shareholders at their $26 or more offer. This allows shareholders to make the decision rather than management. This situation would give investors a profit by the premium amount (say the $5 more than if you buy at $21 now). ...If SanDisk gets a higher than $26/share offer, they could accept. Investors would also profit from the premium, which would be higher than the premium $26 would provide. ...Typically, when a buyer walks away, the target/seller's share price drops dramatically. ...As far as Investing Advice goes, I would structure this situation as follows: • Buy SanDisk at the near $20-$22 price per share. • Protect my losses by setting a stop at $18.50-$19.50 depending on your risk tolerance. ...If another offer or hostile offer is presented, set a limit price closely below the offer price to ensure profit is kept regardless of any deal complications. (ex: $28/share offer- set limit at $27.50) Keep a watch on this deal very closely, it could provide you with easy investment gains. If the deal goes south, you have a protective stop to keep your losses to a minimum. Keep your eyes open to any opportunities in the stock market, most great investors know that a few great investments can account for almost all of your gains. ... ...Find Out On Zecco.com Free Blogs, Forums & Trade.

Lehman Goes Bankrupt, Bank of America Buys Merrill Lynch

jrs87sch@yahoo.com — 2008-09-15T11:45:00-04:00

With emergency meetings happening with the Federal Reserve and major Wall Street banks over the Sept. 12-14 weekend, much has gone down. Lehman Brothers, the over a century old investment bank, has filed for bankruptcy. Bank of America (BAC) was seen to be a potential buyer, but they went after the bigger fish. Bank of America made an offer to buy Merrill Lynch for $29 a share. Both Lehman and Bear Stearns have fallen in the past year. Merrill is no longer Merrill. This signals a major change for Wall Street; who will survive in the 21st Century? Almost all of the big investment banks forgot about risk management when they realized that they could get away with borrowing more than they could handle, and make obscene profits out of it. The market will not allow them to hold that type of liability during these troubled times. Many of their bets counted on real estate which have taken huge price discounts, essentially eating away the value of their holdings. Goldman Sachs and Morgan Stanley are the only big stand-alone investment banks to survive. Both banks have handled the credit and real estate crisis considerably well, but the market is waiting to see what their earnings announcements reveal. Goldman Sachs is to announce earnings on Tuesday Sept. 16th and Morgan Stanley is to announce earnings on Wednesday Sept. 17th. This is an opportune time for either these two banks to be the shining light of Wall Street (as if they aren't already), or the slimming can allow room for smaller banks to come out on top in the next couple years. Bank of America just gained one of the most important assets they may ever get: Merrill Lynch's investment bank. BofA has had a struggle making a name for itself in investment banking, and now they own the largest broker in the world. Keep an eye on who may be coming out on top and in better shape. This could be a huge investment opportunity! ...-- AddThis Button BEGIN --> ...-- AddThis Button END --> Why Invest in Stocks? Find Out On Zecco.com Free Blogs, Forums & Trade. Priceline.com Hotels - save up to 50%

Michael Dell Buys $100 Million Worth of Dell Stock

jrs87sch@yahoo.com — 2008-09-09T17:21:41-04:00

Just this afternoon Dow Jones News, parent company of The Wall Street Journal , reported that Chairman and CEO of Dell Inc. (DELL) Michael Dell bought 4.88 million shares of his company at an average price of $20.49 last week. A total price tag of nearly $100 million! This is a large insider buy, which usually signals that the inside buyer of the stock believes that the stock is either undervalued or going up in the near future. It could also mean both scenarios are the case. Regardless, following insider transactions (or insider trading) have been a trading strategy that many investors use. Another indicator that Dell might be a good investment is that on September 3, 2008 Dow Jones News quoted Michael Dell saying that we will most likely see a "rapid" turnaround for Dell in Western Europe. He admitted that no one was happy with Dell's performance in Europe recently and is ready for a change. Two key things happened in this announcement: - The CEO, Michael Dell, admitted that they were doing something that wasn't working. - There is a plan in place to improve conditions. Warren Buffett is known for admitting the mistakes he's made throughout the year in his annual shareholder letter. He also provides that a plan is in place to improve the conditions of the problem, thus improving performance. ... Buffett says that a CEO that can admit mistakes of himself or the company and then provide a plan for improvement is a CEO worth keeping. CEOs that deny there are problems or that they were caused in any part by them run the company (and its investors) into trouble. The single most important aspect about insider trading is that executives that have more of their money invested in their company are more likely to run the company better. It sounds like simple common sense, but you would be surprised at how many investors forget that and how many minimally invested execs perform poorly. If you put all of the pieces together about the Dell story, it is painting a picture of a rebound in Dell stock. My investing advice on this trade would be if you are going to buy this stock based on this recent news, put a stop to limit your losses should something go wrong with the tech industry or the stock market as a whole. ...-- AddThis Button BEGIN --> ...-- AddThis Button END --> ...Find Out On Zecco.com Free Blogs, Forums & Trade. Priceline.com Hotels - save up to 50%

All-New Careers Section

jrs87sch@yahoo.com — 2008-09-08T00:05:11-04:00

Get your career on track with our new Careers section! Search and Post jobs all over the US. Check it out.

Updated NEWS Section!

jrs87sch@yahoo.com — 2008-09-06T13:46:14-04:00

Check out our new and improved News section. Click on the NEWS tab to see top stock market news and business headlines!

Stocks to Buy On Weakness (Update!)

jrs87sch@yahoo.com — 2008-09-02T21:19:16-04:00

As you may or may not know, The Wall Street Journal reports on stocks that have major investment inflows and outflows based on weakness and strength, respectively. After scouring through all of the numbers, I developed a list of stocks that could provide a decent return. Money flows of block trades (10,000 shares) are usually generated by large institutions: banks, mutual funds, and hedge funds. Although they try to invest at a slower rate than an independent investor so they don't pump up the price quickly and cause unrest in the market, their investment ultimately means that the price will go up. ...Their high capital inflows to these stocks causes a chain reaction; other investors will begin to see the inflows and start to buy it themselves. ...These institutions have a strong conviction that the price of these particular stocks will go up in the near future. Money flows are a great way to derive stock investing advice for one large reason, "If you can't beat 'em join 'em." The money flows are calculated by the dollar value of composite uptick trades minus the dollar value of downtick trades, which in lay terms translates to net asset flows. The best bets for stocks that will do well and had high money flows on Tuesday (September 2nd), and Wednesday (September 3rd) are the following: ...Exxon will continue to report record profits for the next couple years because of high oil prices and a turn to dwindling production and supply. The oil sector still has yet to see the high stock prices it deserves. • Google (GOOG)- [UPDATE: Money flows into Google on Thursday hit $148 million. This shows further interest in Google, and that the stock is most likely overdue for a bounce to the upside.] as of 1:00PM on Wednesday, Google has had net asset flows of $30.4 million due to block trades (most likely institutions). Google has a lot of room still to grow. ... At a price of $461.80 a share, there is a lot of upside back up to its 52-week high of $747. ...(CHK)- had Wednesday net flows of block trades of $23.5 million. Energy companies have not performed well even with high energy prices, but that leaves room for value realization. ...Coke can avoid downturns of the US Economy because so much of their business is abroad. Although Coke is a discretionary item, people act like it is a staple. ...Many investors make money by following where the money is flowing. Riding the coattails of large institutions allows you to emulate the gains they realize on particular trades. My only warning is to make sure you don't wear out your welcome and stay invested after the institutions sell off their share. ... ...Find Out On Zecco.com Free Blogs, Forums & Trade. Priceline.com Hotels - save up to 50%

Russian Billionaire’s Purchase of French Villa Sets New World Record for Most Expensive Home - $750 million!

jrs87sch@yahoo.com — 2008-08-20T14:52:02-04:00

The market for the average priced US residence may be soft, but the über rich (especially the Russians) continue to drive prices up at the very top of the world’s luxury market. Case in point -- Villa Léopolda, one of the most historic estates on the French Côte d'Azur, is now under contract by an anonymous Russian billionaire for $750 million (€500m). This three-quarters-of-a-billion dollar sales price sets a new record for the most expensive home sale in the world. The previous record was set earlier this year by Indian billionaire Laksmi Mittal, with the reported purchase of a London home for his son for about $236 million. Villa Léopolda, a cream-colored, turreted mansion with two guest houses, is midway between Monaco and Nice overlooking Cap Ferrat, near Villefranche-sur-Mer. The villa was originally built about 1902 by King Leopold II of Belgium. The grounds are regarded as among the most spectacular on the Côte d'Azur. Fifty full-time gardeners look after 20 acres of gardens and terraces, planted with 1,200 olive, orange, lemon and cypress trees. The property’s new owner is said to be a Russian oil oligarch but not – despite initial rumors – Roman Abramovich, the highly visible owner of Chelsea Football Club, who already owns a €100m mansion near Antibes. According to the Nice-Matin newspaper, a contract was signed last week to transfer ownership of the villa from Lily Safra, the widow of Edmond Safra, a murdered banking billionaire. Rumor has it that Mrs. Safra held out for months as the persistent mystery buyer kept raising his offering price. The paper also reported that 60 villas or mansions on Cap Ferrat are now owned by wealthy Russians. The property has a unique history. In 1916, King Leopold’s nephew and heir, King Albert I, turned the villa into a hospital for officers wounded during the First World War. It later passed into the hands of the Agnelli family – Fiat automotive tycoons -- and became the scene for legendary jet-set parties in the 1960s, attended by Frank Sinatra, Ronald Reagan (in his acting days) and others. “This sale raises the bar and makes the half dozen or so $100 million U.S. properties on the market seem like bargains,” said Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing, a US-based organization which trains real estate agents who work in the luxury market and awards the international Certified Luxury Home Marketing Specialist designation. “Today’s affluent are citizen’s of the world and the successful luxury agent must know how to reach them and what lifestyles they are seeking. It’s an exciting and active market for agents at the top.” (Photo from pmo's flickr photostream) ...Posted by Waco Moore on August 11, 2008 ... ...Priceline.com Hotels - save up to 50% ...Find Out On Zecco.com Free Blogs, Forums & Trade.

What's Slowing the US Economy?

jrs87sch@yahoo.com — 2008-08-13T10:02:29-04:00

Tom Campbell summarizes the seed of our current economic problems at a Commonwealth Club of California meeting. Mr. Campbell is the dean of the Haas School of Business at University of California-Berkeley. As a real estate agent in the state of Florida, I have seen the extreme of what he describes. The housing bubble popped, and subsequently the whole financial world suffered. This is one large real estate and lending market correction. People were paying too much for houses, and those same people were getting mortgages that they couldn't afford or didn't qualify for. Now foreclosures are high and lending is tight. If I would suggest one piece of investing advice or personal finance advice, it would be that the next 12 months will probably be one of the best times to buy a house for the next few decades. I have seen home prices drop very low, quite quickly; and just like in the stock market these prices will not stay this low for very long. Why Invest in Stocks? Find Out On Zecco.com Free Blogs, Forums & Trade. Priceline.com Hotels - save up to 50%

Has the Stock Market Bottomed?

jrs87sch@yahoo.com — 2008-08-03T10:50:48-04:00

Many investors keep asking whether the stock market has bottomed or not. Also, some economists are saying we haven't technically entered a bear market yet. Who do you believe and what is going on with this stock market? The infamous host of CNBC's "Mad Money" show and CEO of theStreet.com, Jim Cramer, has called a bottom on the stock market this past week. He said that the pain and negativity in investors have been so high things just have to change. Also, this last drop in the market brought financials to decade (and longer) lows. Although the banks and broker-dealers have some rough times ahead, the worst of the writedowns is most likely over. On the other hand, many economists say since we have not yet experienced negative GDP growth, we have not come to a recession. A few economists on CNBC and Bloomberg believe that the worst has not come yet. Ask any average person in the US and they will tell you that we are in a recession; that is how you know if we are in one or not. Ask an economist living in a theoretical bubble, and you will get a theoretical answer (not a real life answer). The market, however, has already priced in a lot of pain. For many stocks, their prices have dropped below what they should have. This has been and continues to be a bear market, but I do believe the worst is over. The best stock investing advice I would suggest is to start buying now if you didn't buy on the extreme lows of last month. Since we are still in bear market territory, there will be some steep drops to come from time to time; that is your buying time. Don't get caught up in the rallies and try to buy into them. The market will come back down and let you buy low. Go to Google Finance, and do some research: Buy good company stocks that have been beaten down by the bear market while prices are still cheap. ...-- AddThis Button BEGIN --> ...-- AddThis Button END --> Why Invest in Stocks? Find Out On Zecco.com Free Blogs, Forums & Trade.

Americans Respond to High Gas Prices

jrs87sch@yahoo.com — 2008-07-29T02:36:26-04:00

Image courtesy of flyboyz.wordpress.com According to a recent US Department of Transportation report, Americans drove 9.6 billion miles less this past May compared to May of last year. With the US consuming about 25% of the world's oil, the reaction to high gas prices could have a significant impact on oil prices worldwide. Since the US uses a quarter of the world's oil supply, people in the States have been impacted hugely by the recent spike in oil prices. This has caused the average American to curb their gasoline appetite; switching to more efficient means of travel, driving less, and postponing vacations. Regular Unleaded gas still costs about $3.95 a gallon even after a quick drop in oil prices from around $145 to $124 a barrel. For most SUV drivers, that means $75-$85 a fill-up. Although many Americans believe these prices are outrageous, they are not near as bad as most other countries in the world. Also, I believe that we needed a spike in prices to wake the US up; we need to be more environmentally friendly and more conservative in using up our planet's resources. We cannot continue to pollute our world with cheap fossil fuels. There are better, cleaner, and possibly cheaper ways of transportation. This is also a double-edged sword because analysts are saying that oil prices may go back below $100 making gas cheaper once again. This may increase the chances of an economic recovery, but there may be a catch. We forget to soon how painful it is to fill up the tank, and then gone with the ideas of being "green" and conserving what we have. We must find new ways of creating our energy; homes, cars, buses, jets, machinery, and the list goes on. If gas prices go back down, do not forget what must ultimately be done about energy.

Update!: US Congress PASSES Housing and GSE Bill

jrs87sch@yahoo.com — 2008-07-24T10:05:57-04:00

The US Congress has passed the housing and GSE bill according to a Reuters report that came out Saturday morning. The Senate as well as President Bush have voted and signed respectively for passage of the bill. The bill allows for a $300 billion fund for troubled homeowners and a monetary lifeline to GSEs Fannie Mae and Freddie Mac. Economists call this the worst real estate slump since the Great Depression. This past week the House of Representatives voted for a bill that allows $300 billion for people facing foreclosure who can refinance with Fannie Mae (FNM) and Freddie Mac (FRE). The bill also gives Fannie and Freddie a lifeline through government funds. In a Dow Jones Newswire article, Connecticut's Senator (D) Chris Dodd was quoted saying, "This is the most important piece of housing legislation in a generation." He expressed his concern along with many other Congress members that housing is at the core of the US' prosperity. The US House of Representatives have voted in favor, and the bill now awaits the Senate's decision as well as President Bush's signature. President Bush has also shown concern for the well being of these important Government Sponsored Enterprises (GSEs). Passage of the bill will instill confidence in the housing market and could ignite the turnaround in the real estate market. If Fannie and Freddie receive the government backing, their equity shares will be more appealing and debt issues will be as safe as US bonds. Although this could create a larger budget deficit for the US in the short-term, the benefits of providing these GSEs with a lifeline will make the US a more investable and prosperous nation. ... ... ... Zecco.com Free Blogs, Forums & Trade. www.zecco.com

New at INVESTORPITSTOP.COM!

jrs87sch@yahoo.com — 2008-07-22T12:47:02-04:00

Check out the News section we just added! Stock Market News and Business Headlines Here.

Earnings Week for Wall Street

jrs87sch@yahoo.com — 2008-07-20T19:24:03-04:00

This week is a major week for the stock market. Many of the US' largest companies are reporting earnings starting Monday. ...Some of the featured earnings reports for the week are: - Anheuser-Busch, Bank of America, AT&T, Boeing, ConocoPhillips, McDonald's, PepsiCo and Pfizer, Amazon.com, Ford, 3M, and Wachovia. This next week will determine much of what direction the stock market will go for the next couple months. As far as stock investing advice goes, do not try to predict what the earnings will be and where the stock market is headed. Investors will try to get a feel for the market by assessing the collective earnings reports, and they will react as they come out. ... • Wait for a couple of weeks after most of the earnings reports are out. • Decide what type of sentiment major company reports created in the market (negative, positive, so-so). • Watch the stock market indexes to see their initial direction. • Think back on the earnings numbers and make a judgement on whether the market priced in the news already or if there is more to come. If you feel the market has more to go or is ready to turn around, then make your move. (Remember this is for shorter term traders of no more than a year invested because quarterly earnings are a short-term focus.) The stock market is largely a product of mass psychology, so trade with that in mind. ... ... ...www.zecco.com Priceline.com Hotels - save up to 50%

The Number One Rule for Stock Market Investing

jrs87sch@yahoo.com — 2008-07-11T17:47:12-04:00

Some of you may be filled with fear about the stock market right now, but your main concern should be preserving your capital. This stock investment advice should help you keep the money you have during this down stock market while you are trying to make returns on your investments. Find out how you can protect your capital from the thieving bear market. Image courtesy of blog.wired.com If you are putting on new positions or have old ones that are losing their value, put a stop limit on each position. Although it's not a wonderful thought, you need to decide how much you are willing to lose before you buy any stock. Generally anywhere from 5% to 10% is a good limit to put on your investment losses. That brings us to the: Number One Rule for Stock Market Investing: ...Don't lose money! I know it sounds obvious, but many investors lose focus of keeping losses to a minimum. That simple rule can mean the difference between a great investor and terrible investor. Keeping investment losses as minimal as possible will allow you to win big on the trades that go your way. Losing trades or investments usually continue to be losing trades or investments. Even top hedge fund managers like in Schwager's Stock Market Wizards book repeat how important cutting your losses on trades is. If you can't cut losers, you will never win in investing. Everyone makes bad trades, but good investors don't let them eat up their capital. ... ...-- AddThis Button END --> ...

Stock Market: Stay Long-Term or Stay Out!

jrs87sch@yahoo.com — 2008-07-06T15:58:00-04:00

Even some of the best investors of our time are getting hurt with this relentlessly bearish stock market. As soon as you think the market is going to turn around and go up, stocks take another plunge across the board. So what should I do about investing in the stock market now? I could just leave you with the title of this article; "Stock Market: Stay Long-Term or Stay Out!" ...Many times in the stock market you can invest in stocks, sell them, and make a quick profit. Trading stocks in this bearish and volatile market can rob investors of their hard earned money. For most investors, there are only 2 bits of investing advice that will keep your money safe: • Stay Long-Term- for long-term investing, this is a great stock market. ... Financials, retail, and real estate/ homebuilde are among the sectors that have taken the biggest price cuts. By investing in stocks that have already been hit hard by the bearish market, you are creating a very high probability of great returns once the market becomes bullish. ...There is a drought so the lake is mostly dried up, making the home dirt-front not lakefront. You buy the house for 40% less than it would be if there were actually a lake. ... You can now sell it for over double the price you bought it.) ...- for those investors that do not want to go through the pain of watching your stock investments potentially drop in price before they go up again, sitting on the sidelines with cash is never a bad idea. By not losing any money, you could be doing better than many active investors out there. The only problem is deciding when you will enter the stock market, because if you wait too long stock prices could be at a premium. Trading in the stock market right now is very risky. Even highly skilled stock trading experts can attest to the difficulty in making money in this economy. If you follow one of these two pieces of investing advice, you will much more likely be better off than trading this market. You will also get to enjoy the bull market with big gains rather than trying to figure out how much money you lost during the bearish times. ... ... ...sub=addfavbtn&add=http://www.investorpitstop.com"> ...

3 Stocks to Watch During This Volatile Stock Market

jrs87sch@yahoo.com — 2008-06-27T00:13:53-04:00

Traders and investors are getting beat up daily with the large swings; and lately the swings have been downward. ... Changing your investing strategy will increase your chances for huge stock market gains in the future. ...What the outlook for the future is (both for the company and the economy). If you are getting bombarded or beat down by this wild, bearish stock market, try looking for stocks that will go up in value by 2009 and later. ...Your job is to find stocks that are currently at a discount, so you can capture as much profit as possible once the market goes bullish. There are a few stocks that have met the criteria of being discounted and have higher projected values for 2009: ...This stock has just hit a 5-year low and remains to be a great company. GE has a P/E of 12.4x earnings which is pretty low compared to other stocks. General Electric has investing billions into alternative energy and will continue to do so. ... Invest in this stock now, and in one or two years you will be sitting on top of a nice pile of cash. ...Also, they didn't have the same amount of crippling subprime mortgages that Wachovia (WB) and Washington Mutual (WM) had. Reaching a 7-year low, now would be a good time to invest in this stock. Trading at a P/E of 10.4, this stock is pretty cheap. ...This stock has an 8.2 P/E with earnings per share of $8.50 and a 15.87% dividend. ...Investing in stocks in this stock market can seem daunting, but you don't have to buy anything right now. Stock investing can offer you the returns that you want if you can find good deals and you have the patience to wait until your stock rises. ...You now know the basis of value investing: finding stocks that are at a discount to the rest of the market with an expected future rise in value. ...Priceline.com Hotels - save up to 50% ... ...sub=addfavbtn&add=http://www.investorpitstop.com"> ...

What Happens if the Fed Increases Interest Rates?

jrs87sch@yahoo.com — 2008-06-25T23:32:00-04:00

Many economists believe that the Federal Reserve has gone too far in dropping interest rates all the way to 2.0% during 2008. Will the Fed hike interest rates and what will that mean for you? What can you expect if the increase does happen? *One of the main issues surrounding the Federal Reserve's decision is that by bringing interest rates down so much may be a significant part of why we are dealing with inflation and quickly rising gas prices in the first place. Bringing interest rates up may strengthen the dollar, therefore bringing the price of oil down (or at least slow the increase in price). *Another issue is how the Fed's decision will affect the financial markets. The stock market has kept from falling off of a cliff this year because of the Federal Reserve's ability to cut interest rates. They cut the rates to stifle the possibility of a stock market collapse, and the market has done so-so throughout the year. The increase in interest rates in most cases cause a negative effect on the stock markets. That being said, don't be surprised if the market drops when the news comes out. This time may be a little bit different; because market sentiment is so bad, and the stock market has been inversely correlated with the price of oil, an increase could actually have a positive impact on the financial markets. The thinking for investors and traders is that a stronger dollar and a fight against oil prices may mean a stronger economy for the U.S. in the near future. If the interest rates are raised, and it does help the dollar/ oil prices, then consumer and investor confidence can be restored. An interest rate hike, although usually adversely affecting the stock market, may place investor confidence into the U.S. economy. Restoration of investor confidence could be the catalyst needed to get the stock market moving back in the right direction. Priceline.com Hotels - save up to 50% ...Trade stocks for free on Zecco.com. The Free Trading Community. addthis_pub = 'jrs87sch'; ... ...

Get Personal Finances In Order

jrs87sch@yahoo.com — 2008-06-21T20:24:00-04:00

Before you think about what your next investment is, make sure your finances are in order. ...Start with high interest debt; debt like credit cards and store financing can have interest rates up around 26%. After working on paying off that kind of debt (even if it has to be a little at a time, maybe cutting down on eating out and shopping thrifty, etc.), the relief will come much sooner than you'd expect. Avoid car loans if you can; paying interest on a big-ticket item that depreciates is hard to justify. ... If you agree to pay 14% interest for 5 years on a new $30,000 car, you could expect to pay under $700 a month. ... Wait, over that 5 years, you will have paid close to $42,000 for the car because of the 14% interest. On top of that, a week after you bought your car it lost 28% of it's value. ... A week after you bought the car it was worth $21,600, and you ended up paying $42,000 for it. ... Try to budget out the costs of your car; get auto insurance quotes and estimate gas usage before even looking for a car. ...Some credit cards will charge 26% or more on the balance you don't pay off for each month. 26% interest can put you in the hole faster than you can say "I'm in debt". ... If you have credit card debt, you first have to stop spending more than you can pay for each month. ... Then, alot an amount of what you make each month to pay off a part of the credit card debt. ... To add to that, no one needs a credit card; you can use your debit card just like a credit card. ...Make a budget following this plan, and you will retire wealthy, happy, and debt-free. ...Give it to a charity you believe in, a church you are a member of, or a family member/ friend that needs help. Not only will this help others and make you feel better about yourself, but also it will bring you connections to people that will appreciate what you're doing. ...Even if you just invest in mutual funds or ETFs, your investment will grow in a compounding fashion over time (which means over time that small amount you contribute each month will turn into a huge amount). ... Living off of 80% is the maximum; if you can do 70-10-20, then by all means do it. That way you will have more room to pay for life insurance, pay off that equity loan, and cover your mortgage (home loan) easily. ...Find Out On Zecco.com Free Blogs, Forums & Trade. www.zecco.com ... ...sub=addfavbtn&add=http://www.investorpitstop.com">

What 3 Stocks Are Still Making Money?

jrs87sch@yahoo.com — 2008-06-20T11:00:24-04:00

Stocks are down, way down, but there has to be at least a few stocks picks that can make you some money still. While stocks are on the decline for the most part, there are some companies in the stock market that are worth investing in now. Stock investing may seem too dangerous during these times of volatility and price declines, but there are always stocks that are going up in the stock market. It is my mission to find 3 Very Good Money Making Stock Investments just for you: • One stock that you may have heard of is the ever-gaining fertilizer company, Potash (POT) priced at $236. ... Beware of the high P/E ratio though, a P/E of 52 is much higher than most companies that are similar. It is a fast-growing company, so it deserves a high P/E, but when its run is over the P/E will come down, bringing the stock price down. ...The stock keeps breaking through its high prices, and the demand for natural gas (as well as the price of natural gas) will continue to go up. Priced at just above $21, this stock will continue to go up for years to come. • A Mexico-based cellular and fixed-line phone company is profiting from their Central and South American market share. American Movil (AMX), currently priced at $53.50, has a one year price target of $73.64. This is a stock holding by William Landers' BlackRock Latin America Mutual Fund (MDLTX) that I featured in The Five Best Mutual Funds. By now, I hope you have a few investment ideas for your portfolio, and you should believe that there are always stocks making money no matter how bad the stock market is. If you see any patterns or trends in the stocks I have given you or similar stocks, investigate and make your own trades. Finding your own way to trading stocks is the best way to make money in investments. Stock investing is still one of the best ways to increase your wealth, so keep at it, and make some money! ...Find Out On Zecco.com Free Blogs, Forums & Trade. www.zecco.com ...sub=addfavbtn&add=http://www.investorpitstop.com">

Where Oil Prices Are Going

jrs87sch@yahoo.com — 2008-06-18T10:54:46-04:00

This Bloomberg video discusses how oil may be headed to over $200 a barrel! Matthew Simmons, chairman of Simmons & Company International talks about the oil crisis. Simmons, "Our usable inventory is the United States is at record low levels." He goes on to say the world supply is now in a definite decline. Although this supply squeeze is bringing Americans to our knees, Simmons stated that the rest of the world is "laughing at us" because they are experiencing astronomical prices. In Istanbul, Turkey, there was a report of $11.67 a gallon for gas! The stock market is at odds with oil prices. Every time oil prices advance, the stock market takes a dive. This inverse relationship is driving most of the volatility we see in the financial markets, making it difficult for investors. You can make money from this situation. How to Profit From the Oil Run is an article about getting returns on this wild oil boom. Through stock investing, different investments can yield great returns with oil prices going higher and higher. ...Priceline.com Hotels - save up to 50% 100% Free Stock Trade. Trade stocks for free on Zecco.com. The Free Trading Community. addthis_pub = 'jrs87sch'; ... ...

The Next Big Investing Trend

jrs87sch@yahoo.com — 2008-06-16T00:05:29-04:00

With waves of investing developing every few years, it seems money managers and sophisticated speculators are the only ones making big bucks when the markets boom. ...Will you invest in it when you find a wave beginning? Why can't you make money off of these huge opportunities? ...There has been research upon research, more studying, and more books written than you can imagine on how investing waves / trends develop and how to identify and invest in them. ...You could spend weeks learning different ways to find these market waves, but I will give you some significant clues to discover them. ...Industry/ idea that developed and became pricey is the whole group of nanotechnology stocks/ companies. eBay and Amazon- you can buy anything in the world online. ...-There are trends on small scale all the way to colossal scale (all of which can make you colossal amounts of money). -Micro-trends are similar to what happened with the iPod- it affected one company (Apple) and a few other mp3 player manufacturers. -Colossal trends are like oil, it has been making boat loads of money for people for over 100 years! The next colossal trend will be a mixture of smaller trends all working together, and that is GREEN! ... Everything that being green incorporates will make money, so you have to think about what green means. Clean energy will be the massive breakthrough, and General Electric (GE) has already invested billions in creating alternative energy. Who knows if that energy source will be hydrogen, solar, or a mixture of every possible alternative. Either way, institutional investors will be pouring billions into these stocks over the next decade or two. So find companies that are going green, and especially find companies that are carving out a niche in our new "Green World." Invest and let these companies bring you loads of green (cash)! Priceline.com Hotels - save up to 50% ...Find Out On Zecco.com Free Blogs, Forums & Trade. www.zecco.com ... ...sub=addfavbtn&add=http://www.investorpitstop.com">

Buy Financial Stocks That Are Ripe

jrs87sch@yahoo.com — 2008-06-13T10:54:03-04:00

Financials are almost as low as their 52-week lows, so is this a time to stay away from them or a time to buy them? Investing in financial stocks right now may seem scary for some of you. That is why I want to reiterate the same type of thinking I expressed over a month ago in Financials Maimed, Pick 'Em Cheap. ...Although we hear so much bad news from every news source out there, investing in the stock market right now could could be one of the best investments you make. Once we pull out of this recession, valuations are going to go back up and beyond what they were before. ... Take this piece of investing advice as a 3-5 year path to great wealth. If you heavily invest in stocks, especially financials, right now; you will become much richer than you are today. ... • Merrill Lynch (MER)- with a stock that almost hit $100 a year ago, $36 is not a bad price at all. ...They had much smaller subprime losses than most banks, but the price has dragged down alongside the rest of financials • JP Morgan (JPM) and Goldman Sachs (GS)- these two stocks have not gotten hit as hard as other financials because they made smarter investments, and they are the cream of the crop. Goldman is probably the best investment bank in the world, whereas JP Morgan received the special blessing of financial backing from the Federal Reserve. Bottom line: safer, strong investments, with good earning potential, but not as high as more risky bank stocks. As with any investing idea, investing strategy, or investing tips; do your own research on these companies and the stock market. The best stock market investing advice I can give you is: If you are going to invest in any strategy, stick with it, don't deviate or let emotions get in the way, and it will make you a lot of money. Browse Travel by Destination at Luxury Link ...Find Out On Zecco.com Free Blogs, Forums & Trade. www.zecco.com ... ...sub=addfavbtn&add=http://www.investorpitstop.com">

Are Stocks Going Nowhere?

jrs87sch@yahoo.com — 2008-06-09T23:35:00-04:00

With all of the hype and then panic happening so often, we have a volatile yet neutral market. ...In a recent article in Active Trader Magazine, a very successful money manager named Vitaliy Katseneleson states his case on why he thinks the market will continue to be range-bound. A range-bound market is where stocks bounce up and down quite frequently, but overall the market does not largely advance or decline (neither a bull market or a bear market). ...As an active value investor, Katseneleson has done extensive research on the markets over the past century, and he has found that there were three major, long-term range-bound markets in the 1900s. ... Many people that take note of this potential situation cite the 1970s' lack of significant growth/momentum. Vitaliy sees a beginning of one of these historical periods brewing right now. What is some good investment advice or stock advice if this turns out to be a range-bound market? • Volatile markets are a good thing if you can learn how to capture a swing in one direction ...Stocks with a low-PE historically outperformed high-PE stocks in every range-bound market. ... • Look for stocks that continue to have strong earnings and prioritize the earnings number. • Buy stocks that analysts hate (this one I caution, but it is one of Vitaliy Katseneleson's strategies that has made him a lot of money; you really have to understand what you're getting into) I believe if we are facing a range-bound period, it won't last all of 13-18 years; the world just doesn't move that slow anymore. We now have systems and speed of technological advancements that can turn around a range-bound market much quicker than in the past. A range-bound market is likely for the next few years, but with our fast-paced society, something will spark a new economic growth story. Believe me, when you Google for investment advice while the market is going crazy like it is, you won't readily find answers about what is going on in the market like here. ... If you take these few tips on investing in this stock market, you will do much better than the majority of investors. Browse Travel by Destination at Luxury Link ...Find Out On Zecco.com Free Blogs, Forums & Trade. www.zecco.com ... ...sub=addfavbtn&add=http://www.investorpitstop.com">

Is a Second House a Good Investment?

jrs87sch@yahoo.com — 2008-06-06T09:54:00-04:00

People are worried about making their mortgage payments and where the housing market is going, so why even think about a second house as an investment? As was mentioned in When to Buy a House, right now is the opportunity of a lifetime to buy real estate. Home prices are low, and one of the most important factors is that interest rates on mortgages are still very low. Interest rates will probably not go any lower than they are over the next 5-10 years. There is a lot of money to be made in real estate, even though the news has scared the pants off of home-owners and investors alike. It's a matter of value-investing; when you know an asset has more value than its actual price, you buy it. You know that over time that investment is going to appreciate at a faster rate than other investments. Before you go out looking for an investment property, make sure your own mortgage payments are under control. If payments are getting difficult, try to either sell your house and downsize or buy a new house and rent out the old one. To have that investment property, you must be comfortably paying for your home. If you want to learn more on personal finances check out the article Get Personal Finances In Order. -> Investing in a property is great because you can increase your net worth, have someone else pay your mortgage payments (maybe even making a profit with their payments), and get a very good return when you decide to sell it (especially if you spruce the place up during your ownership). ... • Financial Planner/ CPA (accountant)- to discuss the tax advantages and advise on certain financial aspects of the deal (whether you want to form an LLC, S-corp, Partnership, etc.) • Find a good real estate agent to find you a home with a lot of income and appreciation potential • Have a plan of how you will find tenants (through your real estate broker, yourself with a sign or ads, or a property management company) ... • Keep track of all the money spent and all of the rent income (although your CPA will tell you that and help you) ...Browse Travel by Destination at Luxury Link ...Find Out On Zecco.com Free Blogs, Forums & Trade. www.zecco.com ... ...sub=addfavbtn&add=http://www.investorpitstop.com">

1 Bullet-Proof Money Making Stock

jrs87sch@yahoo.com — 2008-06-02T19:29:00-04:00

As soon as the market starts to look bullish, a report comes out about oil, inflation, consumer confidence, or some other economic report, and the market gets knocked down again. If the stress of this volatility is too much for your body to handle, stick to a more constant stock that will yield good returns year after year. The stocks recommended in 3 Stocks That Can Make You Rich are more vulnerable to the ups and downs of this market even though there are much larger potential gains, so I'm offering you a more conservative investment for those who don't want to deal with the unpredictability of the markets. We all know that Warren Buffett has an impeccable talent for investing (hence being named the richest man in the world by Forbes at an estimated $62 billion), but how can you make returns like Mr. ... It's hard enough just to track all of the investments Buffett makes in a year. He really is somewhat of a fund manager, so don't just try to chase down all of the same stocks Buffett has. ...Warren Buffett's Berkshire Hathaway is a holding company for the companies that Buffett finds great value in and invests in. ...Not many people can pay that much money for one share of a stock. There is an alternative that is an equivalent in earnings and growth because it's the same thing; ...Although that is still a lot of money for one share, it is a great price for a stock that will earn you great returns. ... This is a perfect stock to have and to hold, and to buy more when you can. The B shares of Berkshire offer a more affordable way to get a solid, recession-resistant, constant earning investment. The only difference between A and B is B has less voting power for shareholders, which will make no difference in what you make from the stock at all. How would you like to have the world's richest man and arguably the most intelligent investor managing your money for free? ...This is probably one of the most valuable pieces of stock investing advice you can find. Do your own research and check out other companies, but Warren Buffett has one of the greatest minds for investment ideas. He has a clear investment strategy, and you can learn more about his strategy by reading his annual shareholder letter if you want to really get inside his mind. ...Browse Travel by Destination at Luxury Link ...Find Out On Zecco.com Free Blogs, Forums & Trade. www.zecco.com ... ...sub=addfavbtn&add=http://www.investorpitstop.com"> ... Add to Mixx!

How to Profit From the Oil Run

jrs87sch@yahoo.com — 2008-05-27T00:20:08-04:00

With oil prices up over 40% this year and talk of oil continuing its upward trend, there is a way for you to profit from it. Some fundamental knowledge about this spike in oil prices will help you understand why and how to trade on this. ...Crude Oil hit $135.00 last week and is expected to continue its run. Last year investors predicted that oil would go above $80 a barrel in 2007. ...Murti, an oil sector specialist for Goldman Sachs, states that there will be a "super spike" in oil prices with oil at $200 a barrel. That $200 translates into a $6 gallon of gas. The increase in oil demand will continue through 2011, Murti says. ...Well $6 is 50% more revenue than the already high price of $4 a gallon. That is, 50% more revenue for those selling and producing gasoline. Oil companies tend to do well when oil prices are high, and inversely oil consuming companies tend to do worse when oil prices are high. ...The way to structure this trade is much like a long/short fund: • Buy/Long stocks that profit from oil the most- Exxon Mobil (XOM), PetroBras (PBR)-for a foreign play, and Chevron (CVX), as examples. • Short sell stocks that are negatively impacted by high oil prices- Airlines (look for negative news on particular companies really struggling) , Consumer Discretionary (retail stores, apparel companies, furniture companies) because people have less discretionary income. ...Take a look and do a little research on how this plays out if you don't make this trade. Some airlines are expected to fail or file for bankruptcy, and oil companies will probably post record profits as they did in 2007. Oil's run-up in prices may be hurting you at the pumps, but you may be thankful that you profited from the price of oil and its effects on the economy. Also, check out the previous article 3 Stocks That Can Make You Rich for good mid-to-long-term plays. ...Browse Travel by Destination at Luxury Link ... ...sub=addfavbtn&add=http://www.investorpitstop.com"> Zecco.com. The Free Trading Community. If you want returns, and substantial returns at that, you must seek out the best investments for the near to mid-term future. These stocks you want to hold for 2-5 years, and you can hold them for longer if they are still fundamentally strong after 5 years. ...General Electric (GE)- GE recently posted lower than expected earnings which Jeff Immelt mostly blamed on the current economic status and troubles with GE's financial business segments. This is more than likely a cyclical price decline, and the stock could realistically bring you 15% returns by the end of 2008. Also, CEO Jeff Immelt is under the gun for the next couple of quarters to perform or he could be ousted. Either way, if Immelt improves the company improves, and if he gets fired then the new CEO has a good chance of bringing more to GE's bottom line. ... GE has invested billions into alternative energy production including wind turbines, which will become increasingly significant for energy independence and sustainablility. ...Merrill Lynch (MER)- Although the financials will probably not come back to 2006-2007 values until well into 2009, that allows for a lot of buying up of financial stocks for you and institutional investors. ... They will probably come up as a top performer in the next 2-3 years allowing the stock to double or more. ...PetroBras (PBR)- CNBC has been talking about PetroBras a lot lately and about the massive oil field discovery they had recently. ... William Landers' Blackrock Latin America Fund (MDLTX), which I discussed in The Five Best Mutual Funds, has taken a large share of the Brazilian oil company. It is now the 5th largest company in the world, and they could also be sitting on the world's largest oil field. The great thing about PBR as an investment is that it will continue to highly perform for the next 5+ years. The reason for this is while they are currently producing a large portion of world oil, it will probably take 5 or more years to fully utilize the recent discovery. ...Find Out On Zecco.com Free Blogs, Forums & Trade. www.zecco.com Browse Travel by Destination at Luxury Link ... ...sub=addfavbtn&add=http://www.investorpitstop.com"> ... Add to Mixx!

When to Buy a House

jrs87sch@yahoo.com — 2008-05-19T14:57:00-04:00

The news channels and newspapers are always telling us how bad the housing market is. They say it just keeps getting worse, but the chief economist of the National Association of Realtors says that the housing market is not going to get worse. Lawrence Yun, NAR's Chief Economist, states that there are many reasons for people to get into the housing market and very few reasons not to. Whether you are an investor or just want to buy a home, Yun makes it clear that most of the fallout in prices is over, and he believes home prices will pickup in the second half of 2008. He says that subprime lending has largely "dried up," and those subprime loans are what sparked this downturn. With the lack of subprime loan originations, current foreclosures, low interest rates, and a high inventory; a perfect investing field has been created. An ultimate buyer's market has arrived. ... , Phoenix, and Riverside, CA have had some of the largest price reductions in the country. The reason for this is that these particular cities had large numbers of subprime mortgages. The slashed prices make a great entry point for investing in real estate. This is a lesson in value investing; the market has undervalued homes, and investors/ home buyers can make a safe investment by getting in while prices are low. It is not much different than buying an undervalued stock. If you could buy Apple (AAPL) at $115 today and you knew that in the next few years it would be at or above $200, would you buy it? Some deals out there are even more attractive than that. In Orlando, there are $350,000-$500,000 homes that have been reduced $150,000-$200,000! Have your real estate agent find you a good deal; they have the information to tell how good of an investment a certain property may be. Prices may be picking up already in some areas, so if you try to wait it out and see if prices will fall any more, you may miss the best prices for a long, long time. ... ... Browse Travel by Destination at Luxury Link ...-- AddThis Button BEGIN --> ...-- AddThis Button END -->

A Vital Stock Trading Secret

jrs87sch@yahoo.com — 2008-05-06T00:25:00-04:00

If you dabble in trading, or even if all you do is trade. ... Traders are always trying to find the next big wave or trend, but how can you make money by speculating when and what will boom? Why not just trade something that has certainty? You can make a lot of money on something you are more confident in, and you can lose a lot of money betting on something you have no idea if it will really take off. The stock discussed here is (CME) the Chicago Mercantile Exchange or more recently the CME Group. The CME is a trade execution and clearing company for mostly derivatives such as options, futures, interest rate futures, real estate, and more. What makes CME special is that the volatility is close to 4.26x the volatility of Proctor and Gamble (PG). ...The volatility in CME is what will make money. About a week ago I bought CME at $466 and it is now hovering close to $500. That may not sound like a huge gain, but with leverage through margin or options, that can mean a nice chunk of change in your pocket. Without leverage it is a good trade, with leverage it is a great trade. ...For the past 3 months, CME has stayed mostly in the $450-$530 range. Every time it goes down to below $470 is a good time to buy until it goes above $500. It also works on the short side; when CME hits $520 it can definitely be shorted until below $480. Be careful on shorting, because CME has been low compared to the past year and has been given analyst estimates of $631 in 12 months, so don't short it for too long. On top of the technical-type factors, derivatives are growing in popularity and trading volume. ... Derivatives exchanges will not slow down or stop any time soon, just as stock exchanges have not slowed or stopped since they began. ... NMX is another clearing and trade execution company that will greatly enhance the value of CME for years to come. CME will continue being volatile because that is the nature of the CME, so as long as you get in at the right point you can expect some great returns on this stock. Bottom Line: When you trade a strategy that you are confident in, stick to it, don't deviate from it, and exit when it no longer makes you money. ... ...sub=addfavbtn&add=http://www.investorpitstop.com"> ...Find Out On Zecco.com Free Blogs, Forums & Trade. www.zecco.com

5 Great Investing Books That You Should Read

jrs87sch@yahoo.com — 2008-04-30T22:24:38-04:00

Learn about the markets, learn investing methods, learn how to assess companies and their financial statements. You have to learn the game before you play it. ... I have read more than I think my cranium can fit, but somehow it does. ... The idea is not to find one book and follow it religiously; you have to get many different aspects of investing, decide what you like, test it, and then fine tune it to your own style of investing. I will give you a list of recommended reading for beginning and intermediate investors, but that doesn't mean you can't become an expert on the styles presented in the books. They simply explain their particular style in an easier way to start out, and then they go into depth about it. ...In this New York Times bestseller, Phil Town describes a different twist to traditional buy and hold. He mixes aspects of value investing with some technical aspects that are important to recognize. ...I know some of you are going to say, "You want me to read a book by that nut Jim Cramer who screams on TV!" ... It is not because everything he says is right or he is the absolute best, but he has some really valuable knowledge on fundamental investing. ... Cramer is a former Goldman Sachs employee, hedge fund manager, and much more. I guess 14 years of managing a 24% average return after fees, $450 million hedge fund gives him some authority on investing. ...The shark brings a whole different aspect of investing than Jim Cramer, but he also acknowledges DePorre's book by writing the foreword in it. For those of you that like to analyze charts and technicals a little more, this is the book for you. ...Benjamin Graham is one of the most renowned investing authors in history. He taught Warren Buffett how to invest, and he is quoted by saying, " [It is] by far the best book on investing ever written." This is THE book on investing, and if you want proof this method works, take a look at Warren Buffett's net worth (by the way he is the Richest Man In The World!). I will warn you that this book is much thicker than any other book I recommended and the concepts are quite a bit more advanced. I will continue to tell you about books that can help you make lots of money in investing in equities markets as well as real estate. ... Also, take notes on the methods explained in the book, so you can come back and refer to it when it comes to testing out the strategies. These books are a great way to learn investing, and they're great material for investing ideas. ... ...sub=addfavbtn&add=http://www.investorpitstop.com">

Are Banks Out of the Water?

jrs87sch@yahoo.com — 2008-04-28T13:10:19-04:00

Although many banks reported more writedowns on collateralized debt (CDOs) and negative earnings, there are signs the banks are crawling out of the graves they dug for themselves. Many reports say that the banks are taking their last big writedowns. Hopes are up for banks with the bad news behind them. As I talked about in my article Financials Maimed, Pick 'Em Cheap, the financial stocks have been beaten and beaten again. Financial stocks have started to rise with sentiment about banks rising, and there is a movement of institutional money (mutual funds, insurance companies, hedge funds, and pensions) into financials as well. The prices of financial stocks have risen significantly in the past few weeks: Bank of America (BAC) has risen over 8% from about $35.50 to $38.38 since April 14th. Merrill Lynch (MER) has risen over 15% from $43 to $49.50 in the same time period. Even struggling private equity giant, Blackstone (BX), has gone from $17.20 to $19.40; That's a 12.7% increase. Don't feel like you've missed out on the good opportunities here though. These financials have fallen hard, so they have a long way to go up. If you would have looked at a quote on Merrill a year ago at $90 and asked yourself if you'd like to buy that same stock for $50, would you take it? Absolutely. Banks won't see the same kinds of earnings they saw in 2006 and 2007 this year, but just as any industry in the stock market, it fluctuates. 2009 and 2010 may see those outstanding earnings numbers, and this time they could be bigger than ever. Stocks go up, stocks go down. Buy them on the way up, and you have no reason to frown. ...-- AddThis Button BEGIN --> ...-- AddThis Button END -->

The Five Best Mutual Funds

jrs87sch@yahoo.com — 2008-04-24T13:42:00-04:00

If you find a good manager or a good fund, they will grow your retirement pool from a small amount to a whopping amount. I have reviewed many mutual funds, and it is true, many of them do not perform any better than the S&P 500 index. I believe I can find you a few exceptional funds that exceed the returns of the S&P by a large percentage. The key to these is to invest in these funds, put more money in them as time goes by, and you will watch a fortune grow. Before you do decide to invest in a mutual fund, make sure you have the means to do so. Make sure your debt is done with, which is what I talked about in Get Personal Finances In Order, and then you can go on your way to making a bundle for retirement. ...One mutual fund that I have owned is the BlackRock Latin America Fund (MDLTX). ... William Landers, the manager since 2002 has been able to produce annualized returns of about 50% for the past 5 years. ...Another mutual fund with rather high returns is the CGM Trust Focus Fund (CGMFX). This fund is managed by Ken Heebner and he has produced an annualized 5 year return of 38.5%. ... Since his management of the fund began in 1997, he has focused on mid-cap growth stocks in the U.S. This fund is a no-load mutual fund with a .99% expense ratio, so they don't take a percentage of what you put in the fund or what you take out. ...I found that Fidelity has quite a line-up of good-return mutual funds. The Fidelity Advisors Utilities Fund (FUGAX) has had a more than 20% average annual return for the past five years by investing in public utility stocks. It yields a 1.55% dividend each year, which is a nice bonus to 20% returns. Utilities seem to be almost always a good bet for either constant growth or dividends, so I don't think this fund could ever be in trouble. ...The John Hancock Large Cap Equity Fund (TAGRX) is an impressive diversified portfolio with mostly large cap stocks. It has seen a 20.29% average annualized return for 5 years, and it is team managed. ... John Hancock also provides a number of life cycle retirement funds; they are funds that are aimed to provide you with the capital you will need when you retire in 2010, 2020, 2025, etc. They have many retirement years, however, I think they go in blocks of 5 years. ...The 5 year annualized return is 13.8%, and it has produced a 12.4% return annually since 1994. ... I am a big fan of value investing, and it can do great things for your retirement. So, if you want a fund that you know will perform well over time, it's Lineham's value fund. ... ...sub=addfavbtn&add=http://www.investorpitstop.com">

Where is the Stock Market Headed?

jrs87sch@yahoo.com — 2008-04-22T17:34:26-04:00

In an nation that is reporting contradiction after contradiction, what are we supposed to think about the economy. It is apparent that there has been a downturn. The real questions are: Are we in a recession? ... The very problem with asking these questions is that we don't know we've been in a recession until after it happens. The economic data is backward looking, thus we can't conclude on recession or not right now. A recession is defined as two consecutive quarters of declining GDP. With a decline in the fourth quarter 2007 GDP, if we report the first quarter 2008 at a decline we have a recession. ...Many reports come out and say that the economy looks gloomy. Businesses report that earnings are down and morale is low. ... Because the credit market is tight, businesses are not borrowing as much to invest, expand, or fund new projects. ... There's a cliche for that, "We can only go up from here." However, it is hard to call an actual bottom on the market, so we don't know for sure if it will go lower. One thing we do know is that the market will go up from here in the not-so-distant future. I have heard many experts including Bob Doll of BlackRock Asset Management (BLK) say that we have seen a bottoming process and that the worst is behind us. I believe there are some stocks that have more to fall, but overall I think we have come to a substantial bottom. Companies that have not yet been affected by the credit and consumer problems may experience some spillover in the next quarter or two. Also, be careful of companies that have high P/Es, because once their EPS and growth rates take a hit, that stock could take a tumble down a high mountain. Something that seems to be a trend during recessions (especially ones sparked by financial trouble), is that the Financials sector seems to be the first to fall, the first to bottom, and the first to recover. Be careful timing the market, and it's never a bad idea to sit on some cash if you are uncertain. Remember, all things held constant, the market will go up over time. ... ...

Invest in Large Cap, Mid Cap, or Small Cap?

jrs87sch@yahoo.com — 2008-04-17T16:59:41-04:00

In a CNBC interview, William Greiner, chief investment officer of UMB Asset Management had said that small cap stocks are the best place to be for this recessionary period. He goes on to say that small caps have done well in the past 10 recessionary environments. If you need to bounce back from this recent down market, look to buy some small cap stocks. If you believe in having a diversified portfolio, you will probably have at least one of each market cap size. If you don't have a diversified portfolio and want sizable returns, small cap stocks can yield greater returns. Historically, the average annual return for a portfolio of the smallest 20% (market cap) of stocks listed on the NYSE is 17.4%. The 17.4% return of small stocks clearly outperform the 12.3% average annual return of the S&P500. Of course, the volatility of a small stock portfolio will be higher than that of the large cap S&P 500. The common definition for small cap is from $250 million to $1 billion in market cap. Set up a stock screener for Small Cap or Market Cap= $250 million to $1 billion with reasonable growth rates. EPS growth rate should be 10-25% annual. ROE should be 10% or larger. Be weary of companies with abnormally large growth rates, and always check the financials of the company to make sure they are stable. Some stocks I got from the stock screener were ULTI, HNR, and ESEA; a diversified group of companies. The companies are The Ultimate Software Group (ULTI)- a business software company, Harvest Natural Resources (HNR)- an oil and gas operations company, and Euroseas Limited (ESEA)- a Greek dry bulk shipping company, respectively.

Sit On Cash for a While

jrs87sch@yahoo.com — 2008-04-15T10:50:00-04:00

With earnings season to a start and an uneasy economy, maybe it's not so bad to just hold some dough. Johnson and Johnson (JNJ) just reported an earnings surprise, but they credit it to cutting costs. There was no real growth in this story. Analysts are uncertain about how Google (GOOG) will do and if they can keep the fast-paced growth they have had in the past. GOOG reports earnings on Thursday, April 17. Most companies will be reporting earnings throughout the rest of April. With a slowing economy, don't make big bets on surprises. Wait out the next few weeks. Get a feel for how the earnings are overall, company to company, industry to industry; and then you will better know where to put your money. Again, if you are a long-term investor, many stocks that have already been beaten up are going to look very good in a year or two. For a value investor, this is a developing feeding ground, so go ahead and nibble a little. Just wait a few weeks, and start in if you see some good deals after earnings season.

Financials Maimed, Pick 'Em Cheap

jrs87sch@yahoo.com — 2008-04-14T00:16:37-04:00

More writedowns will be reported from banks. ... Well... actually it's not. Recession does not equal the end of the world. With all of this bad news out, what am I supposed to do as an investor? This is actually becoming the best time for investors. If you're not worried about the fluctuations that may happen over the next few months, you can get in on some great deals right now. ... Buffett would say, there are some great buying opportunities out there; stocks are getting cheap. As troubled as the financials are, the worst is most likely over. It is time to start shopping. For example, Merrill Lynch (MER) at $43.68 looks attractive when it was close to $100 a year ago. "Mother Merrill will not peril." Remember that because many investors are afraid of investment banks because of Bear Stearns' collapse, but Merrill is too large, powerful, and doesn't come close to holding the same kind of leverage Bear Stearns had. If you were to buy Merrill Lynch in the $40-$50 range, you will be thanking yourself greatly when the market starts to pick up again. Another stock to check out is UBS (UBS). After reporting a writedown, UBS is poised to go up from here. A $33.82 price seems reasonable when the 52-week high was about $66. My favorite pick for theses times is Legg Mason (LM) $56.12. This company has kept composure in this chaos. They have an upper hand and are currently prowling for new acquisitions. They say it's a good time because asset managers are cheap. Legg Mason is at $56.12, and it was near $100 12 months ago. Double your money in a year or two, I'll take that to the bank. ...src="http://pagead2.googlesyndication.com/pagead/show_ads.js">