Here is an example of the last newsletter:
SP500 Last Signal Comment
We just had a new sell signal last Friday on June 10, 2005. As expected we faced strong resistance at 1200 and it ended with a double top as stated in previous cases. We have 36 points profit (3%) that the trade was in line with expectations. A double top should always be taken because we had 90% success in the past very seriously. We still have a strong support between 1140 and 1160. We now expect to fall to the lower band of the market in the coming weeks (see chart below). We just completed our second cycle of this year and we are now waiting for the next buy signal to start a new one. On
ND100 Last Signal Comment
We had our last buy signal on April 21, 2005. Since then, the market tried to consolidate just above the 1400 mark which is now considered as a good foothold. We are lead of 73 points so far. We had just a second week now closed down for the moving average and get. Very close to a sell signal The 1460 opposition was more serious than antcipated. This market has not completed any cycle so far and we have our first cycle as we speak. So this last buy signal is ahead for some good profit.
DOW Last Signal Comment
We had our last buy signal on April 21, 2005. Since then, we had a good swing above 10,400, but the DOW had a set back able to downtrending line breaking force since early March. We had a little up this week in this market. It was the only places of a positive step. We are now 294 points ahead. We are not very far to get a sell signal. I have no great profit to expect from this trade, but we now know it will be a profitable one. The 10,600 resistance continued threat this market. We had so far completed one cycle of this year and we are now in a second. It seems that we have a good support at 10,100 (see chart below).
Special Option Strategy Update
We are now 3 weeks into our SP500 1100 PUT around $ 1.45. So much for the value of this PUT now of $ 0.35. With only one week to go we will definitely money with this trade. Always remember that you need between 11,000 and $ 15,000 margin for each contract.
Current economic conditions
Inflation appears to be less related to the latest economic figures in recent weeks. The industrial activity slowed and the employment number was sharply down as well (see below). We can expect at least another two rate hikes in the coming months. The experts are not so sure that we will reach 4% before we can see a break. On rate hikes The break can now come earlier.
Mr. Greenspan tried to reassure this week on the continuation of the current economic growth investors. Time will tell if he's right.
The U.S. employment was weak in May with only 78,000 new Jons created compared to 275,000 in April. The employment numbers keep coming in in some way inconsistent. In March we had created only 140,000 jobs, which was considered weak.
The SP500 PE ratio is at 19.40 which is considered low. Remember that when the last major economic cycle that began in March 2003 with the PE ratio was about 16. So we are on the low side. The markets are way is overbought and we should not expect any major bear market that for the moment.
The latest revised GDP for the first quarter of 2005 was 3.5 only 0.1 from the expectations compared to the previous reading of 3.8. It starts on a slight slowdown in economic growth, but nothing to show. Worry at this point
This is it for this week and continue each signal change on the Index Trading Signals page monitors
Follow this link to see it. Latest issue Since there are graphics processing I am unable to paste the content in this box.
So follow this link:
Thanks
Richard Bastien
My name is Richard Bastien. I have a computer specialist for over 30 years. I researched and created an Index Trading System with 100% automated trading signals in the past 10 years.
Friday 30 May 2014
Thursday 15 May 2014
Beginning Investor - Investment Terms
Over the past two months, readers have brought to my attention that there is a steep learning curve for investment terminology. Therefore, the focus of Beginning Investor column this month will be investment terminology. The financial world can be complex. This article does not intend to present a comprehensive set of definitions, but rather as a general guide to help you understand the most frequently
used financial terms. There is no way we could cover everything - and I'm sure we will not - but it needs some things clear for those who are new to investing. This month, we will look at stock-related words in particular.
Stock
Let's start with the absolute basics. The
common type of investment is in the form of
stock. Stock has its own security - that is,
When you buy shares, you are buying a
piece of that company. You are co-owner,
and so to help you select the right people
that the business runs from day to day.
Money is made of stocks, either through dividends,
or capital gains.
Annual Report / 10-K
The annual report can come in two forms,
the glossy annual report, which looks nice,
and is relatively easy to read and understand,
and 10-K, which is an official SEC
submit required for listed companies.
The 10-K is a legal document, and is therefore
much more difficult to read, but
can provide much more information.
Gains
The sale price minus the purchase price of
stocks are referred to as capital gains.
Dividend
A dividend is a payment that a per share
company has the option to explain.
Essentially, dividends are a way for a company
to share with the owners, their profits
shareholders. Public companies are not
required to declare dividends.
EPS
The term EPS earnings expectations of a company
per share for the year.
Equity
Equity is simply a term used to indicate that a specific
type of security gives you partial ownership
of a company.
Liabilities
Liabilities are debts of any kind of a business.
Market capitalization
Market capitalization, or market cap, is
the total number of shares outstanding (held
by investors) multiplied by the share price at
a given day.
Mutual Fund
A Mutual Fund is an investment
whose only business is to buy shares in
other companies, and turn a profit for their
own customers. When you buy a share of a
mutual fund, you are essentially buying in
any business that specific
fund holds. Mutual funds can be a good
investment for those who are new to investing.
Quick Net Assets
A company Quick Net Assets, or NQA are
the sum of the debts of a company deducted
the sum of the assets of a company.
P / E
The P / E ratio of their share of a company
price for their earnings for a specific tax
year. This can be used as a good indicator of
financial health of a company and buy
prospects. A good P / E value varies by sector.
Par Value
Par Value is determined by a random number
a company in the issuance of a particular
type stock (i.e., it varies from class to
class). Essentially, nominal value carries no real
significance.
Share Price
Share Price is the price at which a share of
shares of a company is selling.
Short
A short is a method to earn money even
when the price of a share decreases. The way in which a short
works is that a person will get shares of a
stock on margin (loan shares from stock
broker). This person will then sell these
shares, and wait until the price drops before
reimbursement of his broker. If then, you buy 100
shares of the company at x $ 10 per share, and
sell them for that price, you will be $ 1,000.
If the price of the stock drops to $ 5, you
still have to pay for that 100 your broker
shares, but the price will be only $ 5. So
you pay your broker $ 500 for those shares,
and pocket the difference.
Divide
When a stock split is declared, a ratio
picked up by the company. Total company
shares are multiplied by this ratio, while the
share price divided by this ratio. Thus, a
02:01 split in 20 shares of a $ 10 stock
would result in 40 shares of a $ 5 stock.
Stock Classes
Companies can issue several classes of
stock, each with its own voting stock
price and nominal value. Typically, special classes
are available for certain individuals, while only
ordinary shares are traded on public exchanges.
SEC
The SEC or Securities and Exchange
Commission, is a United States government
agency that focuses on the regulation of public
companies and the stock market.
Companies are required to follow. SEC guidelines
Securities
The word safety is just the technical term
for an asset such as a stock or bond. Use it often,
because it will make people think you are
really smart.
Well, that about does. If you
hear about the SEC cracking down on a company
for not accurately their 10-K, or
when someone talks about shorting an equity
security with a terrible P / E, you know exactly
what they are talking about.
used financial terms. There is no way we could cover everything - and I'm sure we will not - but it needs some things clear for those who are new to investing. This month, we will look at stock-related words in particular.
Stock
Let's start with the absolute basics. The
common type of investment is in the form of
stock. Stock has its own security - that is,
When you buy shares, you are buying a
piece of that company. You are co-owner,
and so to help you select the right people
that the business runs from day to day.
Money is made of stocks, either through dividends,
or capital gains.
Annual Report / 10-K
The annual report can come in two forms,
the glossy annual report, which looks nice,
and is relatively easy to read and understand,
and 10-K, which is an official SEC
submit required for listed companies.
The 10-K is a legal document, and is therefore
much more difficult to read, but
can provide much more information.
Gains
The sale price minus the purchase price of
stocks are referred to as capital gains.
Dividend
A dividend is a payment that a per share
company has the option to explain.
Essentially, dividends are a way for a company
to share with the owners, their profits
shareholders. Public companies are not
required to declare dividends.
EPS
The term EPS earnings expectations of a company
per share for the year.
Equity
Equity is simply a term used to indicate that a specific
type of security gives you partial ownership
of a company.
Liabilities
Liabilities are debts of any kind of a business.
Market capitalization
Market capitalization, or market cap, is
the total number of shares outstanding (held
by investors) multiplied by the share price at
a given day.
Mutual Fund
A Mutual Fund is an investment
whose only business is to buy shares in
other companies, and turn a profit for their
own customers. When you buy a share of a
mutual fund, you are essentially buying in
any business that specific
fund holds. Mutual funds can be a good
investment for those who are new to investing.
Quick Net Assets
A company Quick Net Assets, or NQA are
the sum of the debts of a company deducted
the sum of the assets of a company.
P / E
The P / E ratio of their share of a company
price for their earnings for a specific tax
year. This can be used as a good indicator of
financial health of a company and buy
prospects. A good P / E value varies by sector.
Par Value
Par Value is determined by a random number
a company in the issuance of a particular
type stock (i.e., it varies from class to
class). Essentially, nominal value carries no real
significance.
Share Price
Share Price is the price at which a share of
shares of a company is selling.
Short
A short is a method to earn money even
when the price of a share decreases. The way in which a short
works is that a person will get shares of a
stock on margin (loan shares from stock
broker). This person will then sell these
shares, and wait until the price drops before
reimbursement of his broker. If then, you buy 100
shares of the company at x $ 10 per share, and
sell them for that price, you will be $ 1,000.
If the price of the stock drops to $ 5, you
still have to pay for that 100 your broker
shares, but the price will be only $ 5. So
you pay your broker $ 500 for those shares,
and pocket the difference.
Divide
When a stock split is declared, a ratio
picked up by the company. Total company
shares are multiplied by this ratio, while the
share price divided by this ratio. Thus, a
02:01 split in 20 shares of a $ 10 stock
would result in 40 shares of a $ 5 stock.
Stock Classes
Companies can issue several classes of
stock, each with its own voting stock
price and nominal value. Typically, special classes
are available for certain individuals, while only
ordinary shares are traded on public exchanges.
SEC
The SEC or Securities and Exchange
Commission, is a United States government
agency that focuses on the regulation of public
companies and the stock market.
Companies are required to follow. SEC guidelines
Securities
The word safety is just the technical term
for an asset such as a stock or bond. Use it often,
because it will make people think you are
really smart.
Well, that about does. If you
hear about the SEC cracking down on a company
for not accurately their 10-K, or
when someone talks about shorting an equity
security with a terrible P / E, you know exactly
what they are talking about.
Wednesday 30 April 2014
Penny Stock Investing
The nature of Penny Stocks
For anyone new to investing in penny stocks, you should be made of the differences between these micro-cap stocks and the more conventional blue-chip and mid-cap investments. First conscious Unlike buying shares in a large, stable company like Ford or IBM, you are dealing with speculative investments.
Penny stocks literally trade for pennies per share, or as much as a few dollars. The beauty of penny stocks, of course, is that sometimes they 'grow up' and become mid-cap stocks, multiplying in value hundreds of times over and making many people very rich.
With penny stocks, also called micro-caps or juniors, you will see much greater price volatility and therefore a greater and faster gains and losses in the value of assets. It is precisely this volatility which draws investors to the junior markets, as a good choice you could make hundreds of times what you could ever make on the larger markets.
Of course, there is more risk than buying bonds, blue chips or defensive stocks - but this added risk is tempered with the possibility of making the big profits.
Most penny stocks, but not all, are resource or technology companies who initially sold shares in an effort to raise money for exploration or product development programs money. Many of the companies have large debt burden and are not necessarily more money than they lose.
However, it is the possibility of a large, or even lack of success in their quest that often dramatic feed rate increases and this is where the value is located.
Profit Potential
Modern Strategies Inc. owns http://www.pennystockinsider.com, is in the business of research penny stocks for many years, and is effective at uncovering the best small cap investment opportunities and the most rewarding profit situations in the penny stock market .
There are several ways to take advantage of penny stock investments. Modern Strategies Inc. has uncovered the most rewarding investment situations.
Promotional Stocks - These issues may or may not have much real value. To arouse interest for these types of promoters stocks in an effort to drive higher. Share prices The initiators have large equity stakes and so they make more money the higher the share price travels. Eventually, they sell their business in the promotion and generate great personal profit. Then they move on to the next project, leaving the original stock and all its investors behind. Without the work of the promoter, the promotional issue soon comes crashing down.
These are the kind of investor shares hear horror stories about, because many people often lose a good deal of money if they are naive about promotional ploys. However, getting in on a promotional stock early in its life, and keep an eye on the actions of the promoter can be very, very rewarding. It's like having a full time stock promoter doing everything in his power to the share prices of the stocks you own to go through to get the roof and investors who get in early you go along for the ride!
Technical Precursors - often technical analysis can reveal patterns in the cycles of penny stocks trading. Sometimes these patterns illustrate excellent buying opportunities, where the underlying stock has to move strongly, a great opportunity up and only a small chance of falling in value.
In addition, there are sometimes situations where several positive technical indicators combine to reveal that a problem is very likely to increase greatly in price, indicating that the specific problem is for a short time at once has excellent investment potential.
Fundamental Strength - Fundamentals involve criteria such as income, debt, assets, and many others. It was long thought that earnings were the main driving force behind share prices, but Modern Strategies Inc. has since disproved this theory as it applies to penny stock companies. Instead, uncovering the best medium to long term investment opportunities must be done through exhaustive analysis of company financial statements. Investors who get involved in the companies that make the most money should have to improve. Most effective management, and trends in all factors of their operations As well, industry comparisons and to present the research of key financial ratios clues about which companies are destined for higher share prices.
Good fundamental analysis of penny stock companies will generally show that there are about 2 or 3 superior investment opportunities on the 100 companies surveyed. These 2 or 3 excellent corporations often represent better investments than 90% of stocks on the large-cap markets like the NYSE.
Undervalued Situations - Sometimes companies see their share price slide dramatically. There are occasions where this decrease has very little to do with the underlying fundamentals, and to factors such as overall market weakness, interest rate increases, or others more.
Opportunity exists in such situations because the shares are often 'unfairly valued' and a return to more realistic prices is inevitable. There are often cases where companies have more cash on hand per share than the market price, or price to earnings ratios as low as 5.0. Although there is much more to uncovering the best undervalued situations, this is the basis behind the concept.
Minimized Downside - Often the combination of technical analysis and undervalued situations can reveal penny stock companies that have tremendous upside potential, and have a very low probability of declining in value significantly.
Such investments are excellent choices for penny stock investors that are less risk-averse.
Special notes about Penny Stock Companies
Penny stock companies change their names more often than other listed companies, and are also subject to more stock-swaps and consolidations. In each of these events, your shares in your account will be replaced with the appropriate stock will be delivered to you. Automatically by your broker and notice
For example, if you have 5000 shares of EXO owned and you get to two shares for every five shares of LOR, you would find your account holdings revised 2000 LOR which can be traded like to display normally. You will no longer have the 5000 EXO.
In rare cases, a penny stock company to be delisted. This means that the shares will no longer trade on the stock market, and if the company is not listed on another exchange or re-recorded at a future date, you may be subject to a loss of capital is equal to 100% of the total investment. However, this is a very rare event, and there are simple ways to protect discussed periodically. Modern Strategies Inc. publications yourself Delisting is a greater concern for investors who intend to establish a long-term use (several years) buy and hold strategy with penny stocks generally.
Peter Leeds, one of North America's leading Investment Coaches, is a self-made millionaire who made his fortune in the stock markets. He is also empowered thousands of people to do the same. His personal success and incredible ability to consistently pick money-making stocks has earned him a loyal following of successful investors and has generated a lot of attention from the financial world.
For anyone new to investing in penny stocks, you should be made of the differences between these micro-cap stocks and the more conventional blue-chip and mid-cap investments. First conscious Unlike buying shares in a large, stable company like Ford or IBM, you are dealing with speculative investments.
Penny stocks literally trade for pennies per share, or as much as a few dollars. The beauty of penny stocks, of course, is that sometimes they 'grow up' and become mid-cap stocks, multiplying in value hundreds of times over and making many people very rich.
With penny stocks, also called micro-caps or juniors, you will see much greater price volatility and therefore a greater and faster gains and losses in the value of assets. It is precisely this volatility which draws investors to the junior markets, as a good choice you could make hundreds of times what you could ever make on the larger markets.
Of course, there is more risk than buying bonds, blue chips or defensive stocks - but this added risk is tempered with the possibility of making the big profits.
Most penny stocks, but not all, are resource or technology companies who initially sold shares in an effort to raise money for exploration or product development programs money. Many of the companies have large debt burden and are not necessarily more money than they lose.
However, it is the possibility of a large, or even lack of success in their quest that often dramatic feed rate increases and this is where the value is located.
Profit Potential
Modern Strategies Inc. owns http://www.pennystockinsider.com, is in the business of research penny stocks for many years, and is effective at uncovering the best small cap investment opportunities and the most rewarding profit situations in the penny stock market .
There are several ways to take advantage of penny stock investments. Modern Strategies Inc. has uncovered the most rewarding investment situations.
Promotional Stocks - These issues may or may not have much real value. To arouse interest for these types of promoters stocks in an effort to drive higher. Share prices The initiators have large equity stakes and so they make more money the higher the share price travels. Eventually, they sell their business in the promotion and generate great personal profit. Then they move on to the next project, leaving the original stock and all its investors behind. Without the work of the promoter, the promotional issue soon comes crashing down.
These are the kind of investor shares hear horror stories about, because many people often lose a good deal of money if they are naive about promotional ploys. However, getting in on a promotional stock early in its life, and keep an eye on the actions of the promoter can be very, very rewarding. It's like having a full time stock promoter doing everything in his power to the share prices of the stocks you own to go through to get the roof and investors who get in early you go along for the ride!
Technical Precursors - often technical analysis can reveal patterns in the cycles of penny stocks trading. Sometimes these patterns illustrate excellent buying opportunities, where the underlying stock has to move strongly, a great opportunity up and only a small chance of falling in value.
In addition, there are sometimes situations where several positive technical indicators combine to reveal that a problem is very likely to increase greatly in price, indicating that the specific problem is for a short time at once has excellent investment potential.
Fundamental Strength - Fundamentals involve criteria such as income, debt, assets, and many others. It was long thought that earnings were the main driving force behind share prices, but Modern Strategies Inc. has since disproved this theory as it applies to penny stock companies. Instead, uncovering the best medium to long term investment opportunities must be done through exhaustive analysis of company financial statements. Investors who get involved in the companies that make the most money should have to improve. Most effective management, and trends in all factors of their operations As well, industry comparisons and to present the research of key financial ratios clues about which companies are destined for higher share prices.
Good fundamental analysis of penny stock companies will generally show that there are about 2 or 3 superior investment opportunities on the 100 companies surveyed. These 2 or 3 excellent corporations often represent better investments than 90% of stocks on the large-cap markets like the NYSE.
Undervalued Situations - Sometimes companies see their share price slide dramatically. There are occasions where this decrease has very little to do with the underlying fundamentals, and to factors such as overall market weakness, interest rate increases, or others more.
Opportunity exists in such situations because the shares are often 'unfairly valued' and a return to more realistic prices is inevitable. There are often cases where companies have more cash on hand per share than the market price, or price to earnings ratios as low as 5.0. Although there is much more to uncovering the best undervalued situations, this is the basis behind the concept.
Minimized Downside - Often the combination of technical analysis and undervalued situations can reveal penny stock companies that have tremendous upside potential, and have a very low probability of declining in value significantly.
Such investments are excellent choices for penny stock investors that are less risk-averse.
Special notes about Penny Stock Companies
Penny stock companies change their names more often than other listed companies, and are also subject to more stock-swaps and consolidations. In each of these events, your shares in your account will be replaced with the appropriate stock will be delivered to you. Automatically by your broker and notice
For example, if you have 5000 shares of EXO owned and you get to two shares for every five shares of LOR, you would find your account holdings revised 2000 LOR which can be traded like to display normally. You will no longer have the 5000 EXO.
In rare cases, a penny stock company to be delisted. This means that the shares will no longer trade on the stock market, and if the company is not listed on another exchange or re-recorded at a future date, you may be subject to a loss of capital is equal to 100% of the total investment. However, this is a very rare event, and there are simple ways to protect discussed periodically. Modern Strategies Inc. publications yourself Delisting is a greater concern for investors who intend to establish a long-term use (several years) buy and hold strategy with penny stocks generally.
Peter Leeds, one of North America's leading Investment Coaches, is a self-made millionaire who made his fortune in the stock markets. He is also empowered thousands of people to do the same. His personal success and incredible ability to consistently pick money-making stocks has earned him a loyal following of successful investors and has generated a lot of attention from the financial world.
Tuesday 15 April 2014
Bearish or Bullish?
If you are interested in investing in stocks and the stock market, you may have many questions. Even if you have already started investing, you may have many questions about the details of the stock market and your options. Even investing pro needs tips occasionally the stock and on
a path of continuous daily teaching practice. That is their lifestyle and sometimes also their contribution in life.
So, how, as a part-time investor, you know where to go
for recommendations? How can you be sure of the ideas you
his
get is good advice? How can you use that advice
make
right decisions about your portfolio so that your investment
meets your ultimate plan?
Stock advice comes in many forms, financial reports,
newsletters, charts, and journals,
provided
by financial institutions, securities analysts and investment
companies are just a few of the valuable resources for the market
data. Stock tips, investment strategies and money
management forecasts can be obtained by a mere phone
call
or in a casual chat with your family or business
colleague.
You can get by watching CNN or your local stock advice
news and see what is going on in the world and the
condition of various companies. You can also watch
companies looking to grow or merge and how
projections and strategies of the companies' are.
And with the advent of the internet, stock advice can be
found almost everywhere at the touch of a keyboard. Most
advice
is no cost. Many software programs are also
designed to help take the guesswork out of trading
and
This can be downloaded to your computer.
Although everyone you know their two cents worth may have
to
add to your inventory decision, finding really excellent
stock advice can often elusive and downright
expensive. That is why it is important to investigate and
compare the investment firms themselves, asking the court
questions and searching for those who have established
follow
records, you can early and often on the road to success.
Whether the current market trend is bullish or bearish,
there are opportunities out there to make it profitable
you. Think long term, not short-term (in particular, if you are
start at a young age) and the market will
successfully.
a path of continuous daily teaching practice. That is their lifestyle and sometimes also their contribution in life.
So, how, as a part-time investor, you know where to go
for recommendations? How can you be sure of the ideas you
his
get is good advice? How can you use that advice
make
right decisions about your portfolio so that your investment
meets your ultimate plan?
Stock advice comes in many forms, financial reports,
newsletters, charts, and journals,
provided
by financial institutions, securities analysts and investment
companies are just a few of the valuable resources for the market
data. Stock tips, investment strategies and money
management forecasts can be obtained by a mere phone
call
or in a casual chat with your family or business
colleague.
You can get by watching CNN or your local stock advice
news and see what is going on in the world and the
condition of various companies. You can also watch
companies looking to grow or merge and how
projections and strategies of the companies' are.
And with the advent of the internet, stock advice can be
found almost everywhere at the touch of a keyboard. Most
advice
is no cost. Many software programs are also
designed to help take the guesswork out of trading
and
This can be downloaded to your computer.
Although everyone you know their two cents worth may have
to
add to your inventory decision, finding really excellent
stock advice can often elusive and downright
expensive. That is why it is important to investigate and
compare the investment firms themselves, asking the court
questions and searching for those who have established
follow
records, you can early and often on the road to success.
Whether the current market trend is bullish or bearish,
there are opportunities out there to make it profitable
you. Think long term, not short-term (in particular, if you are
start at a young age) and the market will
successfully.
Sunday 30 March 2014
Investing and Understanding What You Buy
"There is nothing more frightening than ignorance in action!"
Johann Wolfgang von Goethe (1749 - 1832)
I do not really know how cars actually work. Not really! I know how to drive them, but if you asked me how they work, I would not really know how to explain certain.
That little technical limitation on my part not stop me know if XYZ Autos is a quality company or not. I do not understand the cars they make, but I understand XYZ Autos. Furthermore, this insight is essential for making a decision about the value of their stock.
There are many good and objective ways to value stocks and improve your finances. This involves looking at various financial ratios. However, one of my simplest rules of investing is that you should always understand what you are buying!
This is not original with me. It is a fundamental part of fundamental analysis!
How deep should you study to understand before you invest in is a rather personal decision for a company
Some investors feel fine with just a general concept, while others want to know everything there is to know about the company. I think somewhere in between is perfect.
But you should know what makes a company different from others, and whether that difference adds no real value or not.
Sometimes different is not good ...
Buy what you understand for a reasonable price and you will be well on your way to successful investing!
Copyright © 2005 I.E.C. Haramis
Ioannis - Evangelos (Akis) C. Haramis was born in Athens, Greece in 1951. Studied Business Administration, Marketing and Economics in Athens, Greece, in Chicago, ILL and in Boulder, CO (USA), as well as in Leuven, Belgium. He has been active in the equity markets since 1972 as an investor, broker and consultant for individual investors and various funds. He is Managing Director of New Business Development at a leading Investment Bank and publisher of
Johann Wolfgang von Goethe (1749 - 1832)
I do not really know how cars actually work. Not really! I know how to drive them, but if you asked me how they work, I would not really know how to explain certain.
That little technical limitation on my part not stop me know if XYZ Autos is a quality company or not. I do not understand the cars they make, but I understand XYZ Autos. Furthermore, this insight is essential for making a decision about the value of their stock.
There are many good and objective ways to value stocks and improve your finances. This involves looking at various financial ratios. However, one of my simplest rules of investing is that you should always understand what you are buying!
This is not original with me. It is a fundamental part of fundamental analysis!
How deep should you study to understand before you invest in is a rather personal decision for a company
Some investors feel fine with just a general concept, while others want to know everything there is to know about the company. I think somewhere in between is perfect.
But you should know what makes a company different from others, and whether that difference adds no real value or not.
Sometimes different is not good ...
Buy what you understand for a reasonable price and you will be well on your way to successful investing!
Copyright © 2005 I.E.C. Haramis
Ioannis - Evangelos (Akis) C. Haramis was born in Athens, Greece in 1951. Studied Business Administration, Marketing and Economics in Athens, Greece, in Chicago, ILL and in Boulder, CO (USA), as well as in Leuven, Belgium. He has been active in the equity markets since 1972 as an investor, broker and consultant for individual investors and various funds. He is Managing Director of New Business Development at a leading Investment Bank and publisher of
Saturday 15 March 2014
Angel Investors: Who They Are & When Are They Appropriate
Angel investors are individuals who invest in emerging business ventures. Angels in the supply line both capital and know-how to companies in either their start-up or development phase. The increased risk of investing in such companies reflect angels seek a higher return versus traditional public stock investments.
Angel investors fulfill the financing need that exists between provided by friends and family and capital provided by venture capitalists capital. Individual angel investors often write checks from $ 25,000 to $ 100,000. Recently, angel investing more and more organized, and angel groups often invest from $ 250,000 to $ 500,000 at a time to deserving ventures.
Angel investors often have similar financing criteria as venture capitalists. They want to own intellectual property, large market size, management team members with expertise and experience, and a current valuation that allows for a good return on investment to see.
In identifying and attracting an angel investor, companies are looking angel groups in their region. For example, the Tech Coast Angels have funded more than 85 Southern California-based companies since 1997. When seeking individual angel investors, it is essential to network, to create a personal connection between you and the angel create. Also, ideally the individual has experience in your field, so he / she can contact industry and provide operational expertise in addition to capital.
Since its inception, Business Plan developed over 200 business plans. Growthink clients have collectively produced more than 750 million dollars in increased funding, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, companies and entrepreneurs informed. For more information please visit
Angel investors fulfill the financing need that exists between provided by friends and family and capital provided by venture capitalists capital. Individual angel investors often write checks from $ 25,000 to $ 100,000. Recently, angel investing more and more organized, and angel groups often invest from $ 250,000 to $ 500,000 at a time to deserving ventures.
Angel investors often have similar financing criteria as venture capitalists. They want to own intellectual property, large market size, management team members with expertise and experience, and a current valuation that allows for a good return on investment to see.
In identifying and attracting an angel investor, companies are looking angel groups in their region. For example, the Tech Coast Angels have funded more than 85 Southern California-based companies since 1997. When seeking individual angel investors, it is essential to network, to create a personal connection between you and the angel create. Also, ideally the individual has experience in your field, so he / she can contact industry and provide operational expertise in addition to capital.
Since its inception, Business Plan developed over 200 business plans. Growthink clients have collectively produced more than 750 million dollars in increased funding, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, companies and entrepreneurs informed. For more information please visit
Friday 28 February 2014
Investing and Asset Allocation
Sometimes you have sleepless nights worrying about which stocks to buy and sell, to possess those funds and to dump and or in bonds.
These are all legitimate concerns, but the biggest determinant of your success as an investor, your acumen in not selecting specific stocks, bonds or funds for your portfolio. No, it will be your asset allocation. That is, the way you slice up your portfolio in broad categories of, say, large-cap growth stocks and value stocks and triple A bonds and so on.
There are many opportunities for investors today. Making use of these opportunities by strategically spreading your money in a number of different instruments can use to protect your portfolio and improve your chances of achieving a desired yield.
It is important for investors to understand that diversification in building a balanced portfolio helps reduce risk and improve returns.
Asset allocation is another way to diversify. It uses the fact that when it comes to risk and reward, financial classes such as equities, bonds and money market instruments (money value) represents all behave quite differently!
Stocks, for example, offer the highest returns among the three "asset classes" but they also carry the highest risk of losses.
Bonds are not as lucrative, but they offer much more stability than stocks.
Money market yields are puny, but you will never lose your initial investment.
An asset allocation strategy looks at your specific goals and circumstances and determine which asset gives you the optimal mix of risk and reward.
Asset allocation is a process to visit again and again as you continue to build your portfolio in your life. Again Learn about the events that a period of re-evaluation of your asset allocation may suggest!
Chances are that, over time, the value of your investment in shares will be faster than grow. In bonds and cash equivalents of your investments Eventually you will probably have a greater percentage of your money invested in stocks recommended than your original strategy.
When this situation occurs, your portfolio will be exposed to more risk. To ensure that your assets are invested appropriately periodically rebalance your investments!
Ioannis Evangelos (Akis) Haramis was born in Athens, Greece in 1951. He studied in Greece, in the U.S. and in Belgium and is active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the publisher of
These are all legitimate concerns, but the biggest determinant of your success as an investor, your acumen in not selecting specific stocks, bonds or funds for your portfolio. No, it will be your asset allocation. That is, the way you slice up your portfolio in broad categories of, say, large-cap growth stocks and value stocks and triple A bonds and so on.
There are many opportunities for investors today. Making use of these opportunities by strategically spreading your money in a number of different instruments can use to protect your portfolio and improve your chances of achieving a desired yield.
It is important for investors to understand that diversification in building a balanced portfolio helps reduce risk and improve returns.
Asset allocation is another way to diversify. It uses the fact that when it comes to risk and reward, financial classes such as equities, bonds and money market instruments (money value) represents all behave quite differently!
Stocks, for example, offer the highest returns among the three "asset classes" but they also carry the highest risk of losses.
Bonds are not as lucrative, but they offer much more stability than stocks.
Money market yields are puny, but you will never lose your initial investment.
An asset allocation strategy looks at your specific goals and circumstances and determine which asset gives you the optimal mix of risk and reward.
Asset allocation is a process to visit again and again as you continue to build your portfolio in your life. Again Learn about the events that a period of re-evaluation of your asset allocation may suggest!
Chances are that, over time, the value of your investment in shares will be faster than grow. In bonds and cash equivalents of your investments Eventually you will probably have a greater percentage of your money invested in stocks recommended than your original strategy.
When this situation occurs, your portfolio will be exposed to more risk. To ensure that your assets are invested appropriately periodically rebalance your investments!
Ioannis Evangelos (Akis) Haramis was born in Athens, Greece in 1951. He studied in Greece, in the U.S. and in Belgium and is active in the equity markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the publisher of
Saturday 15 February 2014
Investing in Son's Business Could Cause a Real Family Feud
Q: My youngest son wants to borrow $ 5,000 to start his own business. My wife is not afraid to tell him. She thinks we should just give him the money and expect nothing in return. I disagree. He has a very good track record with no money, so I'm a little worried that my investment lost. Should I lend him the money and hope for the best or just tell him no and hope he does not get too upset?
A: The first thing you should do, Jeff, is to determine whether this money to your son would be offered in the form of a grant, loan or investment. The wording of your question tells me that you have not done that all important distinction.
It sounds like your wife wants to do, something to be expected, returned a gift of money but the undying love of her last born son.
You, on the other hand, do not know if you should offer the money as a loan (should I lend him the money) or as an investment (worried that my investment to be lost).
Until you can make that distinction needs money to stay on the bench.
I have a very simple rule when it comes to lending money to relatives: NEVER, EVER loan money to anyone you might have to sit next to at Thanksgiving dinner.
"Son, give me that dressing and tell everyone the story of how you blew your old father's retirement money ..."
A loan from a family member is no different than a loan from a bank. You, Mr. Banker, are giving your son, sir borrower, the use of your money for a certain period of time and you expect to pay under certain conditions even if their business to the south the loan. Sure, you will probably be a bit more forgiving than a bank when the loan goes unpaid, but the damage to your personal relationship can restore extreme and difficult.
In the most basic terms if you borrow your son the money you he is the creditor and the debtor. Have you ever heard of a creditor and debtor have a very good relationship? Visa has ever just called to ask how you're doing? Does your mortgage company ever had a child named after you? Probably not.
The same rule applies with investing in a family business. I have raised money for various business ventures and not once did I ever think about asking my relatives to chip in. The last thing I would ever want to do is lose my mother's yard sale money. I had never heard the end of it!
An investment is made with the understanding that money is totally at risk with no guarantee of return. Even under the best circumstances, an investment in any business is a gamble. You are betting your money that the company will be successful and that you get a payback at some point in the future.
Hug your money real tight before the investment, because if the company does not make it you will never see your money.
You and your wife seem very concerned about making your son crazy, which is another big red flag calling for me. If your son is not mature enough to take the word without getting upset, "no" he's certainly not mature enough to start a business and to implement. Unless that company is a bicycle paper route, and even then I would not put my money on his chances of success.
The bottom line is this: if you can afford to give your son the money and can do so without attaching strings, then by all means give him the money and wish him well. Courageous entrepreneurial spirit and support him as a parent should.
However, do not expect anything in return and never spend the money, especially if he's the one carving the turkey on Thanksgiving Day.
Here's to your success!
Tim Knox, Entrepreneur, Author, Speaker, Radio Host
Founder, The Insiders Club, gives you the opportunity to start your business today
Bestselling author of "Everything I Know About Business I Learned From My Mama"
A: The first thing you should do, Jeff, is to determine whether this money to your son would be offered in the form of a grant, loan or investment. The wording of your question tells me that you have not done that all important distinction.
It sounds like your wife wants to do, something to be expected, returned a gift of money but the undying love of her last born son.
You, on the other hand, do not know if you should offer the money as a loan (should I lend him the money) or as an investment (worried that my investment to be lost).
Until you can make that distinction needs money to stay on the bench.
I have a very simple rule when it comes to lending money to relatives: NEVER, EVER loan money to anyone you might have to sit next to at Thanksgiving dinner.
"Son, give me that dressing and tell everyone the story of how you blew your old father's retirement money ..."
A loan from a family member is no different than a loan from a bank. You, Mr. Banker, are giving your son, sir borrower, the use of your money for a certain period of time and you expect to pay under certain conditions even if their business to the south the loan. Sure, you will probably be a bit more forgiving than a bank when the loan goes unpaid, but the damage to your personal relationship can restore extreme and difficult.
In the most basic terms if you borrow your son the money you he is the creditor and the debtor. Have you ever heard of a creditor and debtor have a very good relationship? Visa has ever just called to ask how you're doing? Does your mortgage company ever had a child named after you? Probably not.
The same rule applies with investing in a family business. I have raised money for various business ventures and not once did I ever think about asking my relatives to chip in. The last thing I would ever want to do is lose my mother's yard sale money. I had never heard the end of it!
An investment is made with the understanding that money is totally at risk with no guarantee of return. Even under the best circumstances, an investment in any business is a gamble. You are betting your money that the company will be successful and that you get a payback at some point in the future.
Hug your money real tight before the investment, because if the company does not make it you will never see your money.
You and your wife seem very concerned about making your son crazy, which is another big red flag calling for me. If your son is not mature enough to take the word without getting upset, "no" he's certainly not mature enough to start a business and to implement. Unless that company is a bicycle paper route, and even then I would not put my money on his chances of success.
The bottom line is this: if you can afford to give your son the money and can do so without attaching strings, then by all means give him the money and wish him well. Courageous entrepreneurial spirit and support him as a parent should.
However, do not expect anything in return and never spend the money, especially if he's the one carving the turkey on Thanksgiving Day.
Here's to your success!
Tim Knox, Entrepreneur, Author, Speaker, Radio Host
Founder, The Insiders Club, gives you the opportunity to start your business today
Bestselling author of "Everything I Know About Business I Learned From My Mama"
Thursday 30 January 2014
Keeping It Interesting
A few lines from a movie never leave your mind, I do not always remember the context, but I remember the dialog. "The Big Chill" is one of the few movies that I own (VHS). At dinner, William Hurt, Jeff Goldbloom and Tom Berenger discuss their past as dogs growl for a turkey leg on Thanksgiving. JoBeth Williams brings peace by chastising of men, and that Hurt replied with a grin, "Just try to keep the conversation. Lively" It's one of those "had to be there" moments.
Tire Dealers "keep the conversation lively." Have you noticed that long-term rates fell, while short-term rates have risen? Low long-term interest rates is the housing asset (a positive, perhaps), with the implicit suggestion of a slowing economy (a decrease in long-term loans by corporations suggests a slowdown in the economy). All this happens when the Federal Reserve rates higher torques!
An interest rate anomaly occurs when short-term rates is near than long-term rates. This is known as an "inverted yield curve". Inverted yield curve preceded the last five recessions. "There's something strange going on in the bond market," writes ES Browning (Wall Street Journal, May 31, 2005). Markets have long-term trends right, usually .
Low interest rates encourage positive stock returns, but market volatility seems to defy such optimism. One day stocks are up and the next down. Someone said: "When interest rates are low to grow share." Many market analysts get hit-happy moments with low interest rates. Optimism not move markets, pessimism does. Browning wisely observes' ... the prevailing view in the stock market is one of the celebrations ... "When it should be feared. (WSJ, May 31, 2005)
Some economists expect deteriorating economic conditions. "In the past 35 years, the skeptics say, have Fed rate increases tend to end up with the problems." (WSJ, May 31, 2005) Most recently, the chewing gum market plunged in 2000 left stocks looking like bubble gum pink on the cheeks of a child.
No simple resolution keeps investors against the dangers of an inverted yield curve. Each analyst, economist and expert has an opinion. What matters is the reaction of the bond market, and the current short and long term profits are "keep it interesting."
My point? There is no way to each asset class movement (up or down) to predict. Broad diversification within the bond universe provides overall benefit to your portfolio. This does not mean owning all possible binding, it means integrating bond management consistently to achieve within the context of your risk tolerance, your goals.
* These are the main bond (fixed income) asset classes U.S. government
* International Fixed Income
* Municipals (tax-efficient accounts)
* High Yield
* Emerging Market Debt
"If there is one thing is no longer a subject of controversy, it is no longer an issue of importance." - William Hazlitt, English essayist (1778 - 1830)
Ray Randall serves clients as a registered investment advisor with his firm, Ethos Advisory Services, Essex, Massachusetts. He has extensive experience in financial services, writes a weekly newsletter for Ethos Advisory Services, and coordinates the developments at Echievements . Ray has a Masters Degree from Gordon-Conwell Theological Seminary, Hamilton, MA. You can e-mail him or call
Tire Dealers "keep the conversation lively." Have you noticed that long-term rates fell, while short-term rates have risen? Low long-term interest rates is the housing asset (a positive, perhaps), with the implicit suggestion of a slowing economy (a decrease in long-term loans by corporations suggests a slowdown in the economy). All this happens when the Federal Reserve rates higher torques!
An interest rate anomaly occurs when short-term rates is near than long-term rates. This is known as an "inverted yield curve". Inverted yield curve preceded the last five recessions. "There's something strange going on in the bond market," writes ES Browning (Wall Street Journal, May 31, 2005). Markets have long-term trends right, usually .
Low interest rates encourage positive stock returns, but market volatility seems to defy such optimism. One day stocks are up and the next down. Someone said: "When interest rates are low to grow share." Many market analysts get hit-happy moments with low interest rates. Optimism not move markets, pessimism does. Browning wisely observes' ... the prevailing view in the stock market is one of the celebrations ... "When it should be feared. (WSJ, May 31, 2005)
Some economists expect deteriorating economic conditions. "In the past 35 years, the skeptics say, have Fed rate increases tend to end up with the problems." (WSJ, May 31, 2005) Most recently, the chewing gum market plunged in 2000 left stocks looking like bubble gum pink on the cheeks of a child.
No simple resolution keeps investors against the dangers of an inverted yield curve. Each analyst, economist and expert has an opinion. What matters is the reaction of the bond market, and the current short and long term profits are "keep it interesting."
My point? There is no way to each asset class movement (up or down) to predict. Broad diversification within the bond universe provides overall benefit to your portfolio. This does not mean owning all possible binding, it means integrating bond management consistently to achieve within the context of your risk tolerance, your goals.
* These are the main bond (fixed income) asset classes U.S. government
* International Fixed Income
* Municipals (tax-efficient accounts)
* High Yield
* Emerging Market Debt
"If there is one thing is no longer a subject of controversy, it is no longer an issue of importance." - William Hazlitt, English essayist (1778 - 1830)
Ray Randall serves clients as a registered investment advisor with his firm, Ethos Advisory Services, Essex, Massachusetts. He has extensive experience in financial services, writes a weekly newsletter for Ethos Advisory Services, and coordinates the developments at Echievements . Ray has a Masters Degree from Gordon-Conwell Theological Seminary, Hamilton, MA. You can e-mail him or call
Wednesday 15 January 2014
Guru Focused: Robert Olstein's Short Sells
Although it is quite rare that value gurus sell stocks short, Robert Olstein has been selling short in his Financial Alert Fund. Accountant-turned fund manager spots values by looking behind the numbers. In the second quarter of 2004, Robert Olstein sold short American Italian Pasta Co. (PLB) at $ 31. After about six months he covered for $ 20, quickly made more than $ 1 million for his fund. He is currently short two files: Computer Sciences Corp. (CSC) and Fleetwood Enterprises Inc. (FLE), although things do not always go that smoothly.
Robert Olstein is definitely one of the best money managers (which is why he's Hall of Fame Guru Focus). The strategy of looking behind the numbers has brought his fund a 15.5% average annual return of more than 10 years after all costs. The only downside was the year 2002, from 19%. In 2000, the year of the tech bubble burst, the fund increased by 12%, and in 2001, an increase of 17%.
Robert Olstein began shorting Computer Sciences Corp. (CSC) in the first quarter of 2004 at an average price of $ 41. He said that the accounts of CSC is not in line with economic reality, CSC is worth about $ 30. The price of CSC not down, however. He then shorted more shares. But the price of CSC went up, by the fourth quarter of 2004, the price of CSC was $ 56. It came down to what in the first quarter of 2005, Robert Olstein was confident enough to share again more recently. From the end of the first quarter, his short position in CSC total of 504 500 shares at an average price of $ 42. As of this writing, the price of CSC is $ 46.4.
The other short selling of Robert Olstein is Fleetwood Enterprises Inc. (FLE). He thinks Fleetwood Enterprises Inc. is worth about $ 5-6 per share. He sold short 1.1955 million shares of FLE at about $ 9.2 per share in the first quarter of 2005. Now Fleetwood has a price of $ 9.5 per share.
Remarkably, another highly respected value manager, GuruFocus guru, Robert Rodriguez, disagreed with his colleagues Olstein value. In the fourth quarter of 2004, 269,500 shares of FLE Rodriguez added to his holdings at about $ 14 per share. If the share price dropped to $ 9, 2.2619 million more shares, bringing its total position in Fleetwood makes to 3.7144 million shares he added.
Who is right, Robert vs. Robert?
Dr. Charlie Tian is the Director of Research at GuruFocus.com, a website follows the stock picks and market insight of guru investors such as Warren Buffett, George Soros, etc.
Robert Olstein is definitely one of the best money managers (which is why he's Hall of Fame Guru Focus). The strategy of looking behind the numbers has brought his fund a 15.5% average annual return of more than 10 years after all costs. The only downside was the year 2002, from 19%. In 2000, the year of the tech bubble burst, the fund increased by 12%, and in 2001, an increase of 17%.
Robert Olstein began shorting Computer Sciences Corp. (CSC) in the first quarter of 2004 at an average price of $ 41. He said that the accounts of CSC is not in line with economic reality, CSC is worth about $ 30. The price of CSC not down, however. He then shorted more shares. But the price of CSC went up, by the fourth quarter of 2004, the price of CSC was $ 56. It came down to what in the first quarter of 2005, Robert Olstein was confident enough to share again more recently. From the end of the first quarter, his short position in CSC total of 504 500 shares at an average price of $ 42. As of this writing, the price of CSC is $ 46.4.
The other short selling of Robert Olstein is Fleetwood Enterprises Inc. (FLE). He thinks Fleetwood Enterprises Inc. is worth about $ 5-6 per share. He sold short 1.1955 million shares of FLE at about $ 9.2 per share in the first quarter of 2005. Now Fleetwood has a price of $ 9.5 per share.
Remarkably, another highly respected value manager, GuruFocus guru, Robert Rodriguez, disagreed with his colleagues Olstein value. In the fourth quarter of 2004, 269,500 shares of FLE Rodriguez added to his holdings at about $ 14 per share. If the share price dropped to $ 9, 2.2619 million more shares, bringing its total position in Fleetwood makes to 3.7144 million shares he added.
Who is right, Robert vs. Robert?
Dr. Charlie Tian is the Director of Research at GuruFocus.com, a website follows the stock picks and market insight of guru investors such as Warren Buffett, George Soros, etc.
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