Think in Trading » Stock Market

Whats The Worry About Bad Mortgages

Max — Mon, 08 Nov 2010 21:22:12 +0000

Beginning in the Spring of 2007 the stock market reporters discussed some problems in sub-prime loans and predatory lending practices by some mortgage companies. At first the stories were merely in passing, but as the months rolled by the story became front page news. The President of the United States, China’s financial network and the Chairman of the Federal Reserve have weighed in on what is supposed to be a small percentage of no credit borrowers reneging on their mortgage. So why is everyone so worried about some lousy mortgages?

The simple answer is that the old fashion mortgage with your friendly Mr. Cribbs at the bank downtown is on the endangered species list. The mortgage market today spans the globe. Within days, weeks and months of a mortgage closing it is sold all over the world in bundles of commercial paper.

This complex network of holders of the note are bought and sold by financial brokers, and a others who make these commercial papers part of their portfolio. The problem occurs when trying to determine who bought the risky, defaulting loans. Some of the loans are in the process of foreclosure, some are at risk for foreclosure and still others are foreclosed. The real problem here is assessing risk to unknown factors. Banks, lending institutions and mortgage companies do not like speculation on risk.

The most significant effect all of these risks have effected the Stock Market is the tightening of the credit market. Some banks and mortgage companies have simply stopped making loans. Others, have made refinancing and new loans with increased restrictions. The credit market is squeezed and that effects big stock market players like banks and financial institutions like Bear Sterns. It also effects consumers who are seeking refinancing and new mortgages.

Within the period of several weeks in late August, 2007 the Federal Reserve dumped billions of dollars into the prime lending market making it easier for banks and lending institutions to make loans and to back their existing position. In addition, the Federal Reserve dropped the interest rate for prime loans to major financial institutions. The next meeting of the Federal Reserve could see even further drops in prime rate interest rates.

With equal vigor to jump on the band wagon, the President of the United States provided the possibility of legislative help for those unsuspecting mortgage holders who were snickered into making bad loans with adjustable rate loans that were predatory in nature. The problem is how can United States legislate bad loans and notes that may no longer be in the United States. Remember, Mr. Cribbs is nearly extinct.

At the present time it appears that there are some bad mortgages out there. Some are held by people with limited income and little credit. Some are held by speculators and house flippers that got caught in the head lights of a slowing real estate market. For the latter mortgage holder it does not appear there is too much sympathy for their financial crisis. The common thread is that no one seems to know how many bad mortgages are on the loose. The stock market hates uncertainty, so that is the reason for all the worry.

The stock market is like my dear old Aunt Nell. She never married and never had a light bulb in her apartment house that was in excess of 40 watts. Her tenants virtually lived in the dark. If the price of milk went up two cents she switched to powdered milk. If her taxes went up a dollar she felt she was on the verge of being destitute.

Summer visits with Aunt Nell were a real hoot. In a nutshell that is what is going on with all the “sky is falling” on Wall Street. Uncertainty moves the market and what is causing on all flutter in the financial stocks.

To assuage all the “Chicken Littles” an the possibility of some real problems both the President of the United States and Chairman Bernanke sang a tune of, “You can’t always get what you, but if you wait sometimes, you get what you need.” No big rescues for speculators, but the promise for a few bones if the economy goes sour.

Stock Market How To Invest Gold

Max — Sun, 31 Oct 2010 12:35:12 +0000

The diversified portfolio has a small position in the gold market. For some investing in gold means holding gold coins. Some speculators buy gold contact futures on the commodity exchange. Future contracts are risky because you are betting that the price of gold will go higher in the future. The contract requires a relatively small up front payment, but there can be daily fluctuations that require you have funds to back the dips in the price of daily gold.

The reasons investors have been interested in gold is that the old reasoning was that if the stock market was down the gold market was generally up. This reasoning has become a possibility, but not an axiom of the current marketplace. The weakness in the dollar generally brings a surge in the price of gold. The current price for gold is in the range of $670. Prices have fluctuated within a range of $664 and the current high of $672. Traders think gold could easily go as high as $1,000 an ounce.

Investing in gold stocks and precious metal index funds can be purchased through a stock broker. A stock broker specializing in this area is very important because the investment needs savvy investment advice. Most of the larger brokerage houses have individuals that are specialized in the area of commodities and precious metal stocks.

There are certain international gold stocks that are noteworthy. A Canadian based international player in the gold market is Agnico-Eagle Mines. It trades on the New York Stock Exchange and the Toronto Stock Exchange under the stock ticker AEM. The stock is also sold on the Frankfurt Stock Exchange. This company has more than a thirty year history in the production of gold. Since the 1970s AEM has produced over four million ounces of gold. The company is international and has operations in Canada, United States, Mexico, Sweden and Finland.

Other noteworthy gold stocks include; Barrick Gold Corp, Goldcorp Inc., Kinross Gold Corp., and Newmont Mining. All of these gold stocks are currently trading on the upside, but it is advisable for all investors to make sure these stocks fit your investment risk potential.

In recent years the price of gold has been as low as the $450 an ounce range. Since the late 1970s gold has made huge profits for holders of gold. The key to owning gold is to know the various resistance points and to assess the global market for the use of gold. It is used primarily in jewelry manufacturing and other types of manufacturing. Currently in India there is a small slow down in the use of gold for jewelry making. The same applies to a degree in China. Whether it is enough of a slow down to effect the price of gold is uncertain.

Investors who trade in gold should seek the advice of an analyst that can factor in all the various aspects that effect the price of gold. If you own gold as a hedge against a weak dollar you should look for any strengthening in the dollar. The important thing to remember is to gage your investment in gold to a level that you are comfortable. If you bought spot gold at $600 an ounce, you might consider a rise to $720 a good profit. The ride to $1,000 an ounce may be bumpy and there is no telling when it will reach that level if it does as speculators have gambled.

There are numerous gold mining stocks on the market and if you are interested in a small investment you can find these stocks in the $5 to $12 range The smaller gold mining stocks do carry a risk because a great deal of overhead goes into making a mining company profitable.

The range of risk and amount you decide to invest in gold is a personal choice. It is always advisable to seek the expert advise of a stock expert or commodity expert before leaping into this market. Another sage piece of advise I learned is to trust my sense of cashing out before the price of gold drops significantly due to outside pressures or manipulations.

What Is An IPO

Max — Fri, 08 Oct 2010 06:13:12 +0000

An initial pubic offering is an IPO. In effect what an IPO does it takes a private company public. It is also a means for an existing company listed on one of the exchanges to spin off or create a new company from its parent company. It all sounds pretty straight forward.

Reasons for going public:

The most obvious reason for a private company to enter the public market is raising immediate liquid assets by way of offering shares in the company. Most private companies would prefer to avoid all of the burden of complying with reporting and other regulations, but sometimes a company needs to expand or generate large sums of money to keep up with competition. The reasons are the advantage of offering a chunk of the company without losing control of the company.

IPOs Past and Present:

Before the acts of a few bad apples like Enron, WorldCom and others IPOs flourished on Wall Street. From the mid 1990s to the early 2000s each day brought a new public offering to the market place. Some weeks two or three new IPOs were introduced to the public market place. There were necessary compliance issues to deal with and prices to set and then the IPO hit the market and the exchanges decided what to do with the new kid on the block. Millions and sometimes more could be generated on the first day of trading.

That was then and now there is Sarbanes-Oxley a piece of legislation that was supposed to prospectively cure the market place of cooked books, fraud and make the investor feel more secure. There are aspects of this curative piece of legislation that has provided for more transparency in corporate America. The auditor independence section makes perfect sense. It seems like common sense you want your auditor to not have a conflict of interest. The area of corporate responsibility for subordinate acts of fraud, errors and omissions makes perfect sense. Disclosure regarding debt and other adverse actions involving the company almost seems like a redundancy with other securities laws.

The effect of the Sarbanes-Oxley and other methods to cut out bad apples is that it costs a great deal of money to take a company public these days. There is the need to hire top notch consultants and extra staff to comply with the ever increasing paper work and internal structural changes. It is not a bad piece of legislation, but it is burdensome for a heretofore small private company to be able to afford. The net effect is that the IPO is an infrequent event on Wall Street. There may be other reasons in addition to Sarbanes-Oxley.

Recently, the Blackstone Group introduced an IPO to the market place. It was priced well, but overall the event was lackluster. It generated some 20 billion dollars, but all of the expectations were overstated from the hoopla that preceded the offering. Perhaps we have simply become jaded.

The IPO is a launch of a newbie. The era of “what’s next,” may be part of our gilded past. It could be a good thing for the market place or it could signify a final epitaph to the Horatio Alger story which was overblown in the first place.

What Is The Stock Market

Max — Tue, 21 Sep 2010 12:41:12 +0000

Generally speaking the Stock Market refers to equities where actually stocks and derivatives are traded. In the U.S.A. we think the Stock Market is New York City. In fact there are major Stock Markets in Hong Kong, Hamburg, London, Paris, Canada, Japan and others that influence one another and impact the world Stock Market.

The New York Stock Exchange may have stocks listed that are listed on other major Stock Markets. A company headquartered in Amsterdam may be listed on multiple stock exchanges. Many foreign organized companies are listed on the New York Stock Exchange. There is a tremendous value for foreign companies to be listed on an exchange in the U.S. The exposure and knowledge of a foreign company has a face on the New York Stock Market.

An example would be a China stock Baidu. These information and search technology company has grown in leaps and bounds since it was introduced on the New York Market. Sometimes all it takes is making a good impression to stock analysts and a good review by key people to give the foreign company a boost.

The reality of the Stock Market today is its world wide integration of investors, companies and alliances that create an unprecedented dynamic. Thus far this United Nations of the financial markets has produced an unspoken treaty of like minds. The main objective is to create a win-win scenario for all of the world players in the Stock Market.

Any investor wherever located may hold a substantial stake in any given equity no matter where the equity is traded. The Stock Market is a very large private club that anyone can join with the only admission ticket is the price of a single share of stock.

Most people are aware of American companies utilizing off shore manufacturing of their products. It may be not as well known that some traditional American brand companies are owned by foreign companies. Other American brand companies have a significant multi-national presence with significant stock ownership by foreign banks and investors.

The term equity should be broadly interpreted. There are equities that involve the manufacturing of products and goods, but a product can be intellectual or an entity like insurance. Banks are equities and financial brokers are all traded on the various exchanges. An investor may own gold stocks, mining companies and equities that package these equities into a corporate entity. The only limitation is that if the investor is interested in owning the commodity or trading in the futures market the Chicago Mercantile or other commodities exchanges is the investing tool.

In other words you may own a bank as an equity who may have bonds and other commercial paper that may trade on the commodities exchanges, but you can’ t buy a commodity as a stock. If you want a commodity like wheat, currency, corn, gold, silver or the like you need to look to the commodities exchange.

In the United States the New York Stock Market is comprised of the NASDAQ, NYSE and the newly created combination of the NYSE Group with Euronext in April, 2007. The Euronext holding company is a phenomenal synergy between Paris and the NYSE whose history goes back to 1792.

The Euronext is a combination of derivatives, currency and equities to name a sample of products. There are other exchanges that include the AMEX. There are listing requirements for each of the exchanges. The Stock Market is basically a place where buyers and seller of a piece of a company come together and in the process the company hopefully raises some cash or other value.

What Is A REIT

Max — Tue, 31 Aug 2010 19:28:12 +0000

The acronym for a real estate investment trust is a REIT. According to the National Institute of Real Estate Investment Trusts 190 Re Its are currently registered with the SEC and trade on one or more of the New York Stock Exchanges. There are over 900 REITS that are privately held companies.

The advantage to the investor in the REIT is the source of income it provides. Specifically, due to the structure of the REIT it does not accrue corporate tax, instead it returns all of the taxable income to investors. The investor receives a 1099 form for tax purposes and it is therefore taxed like additional income.

The REIT can be designed to fit almost any scenario available in the real property world. It can play the upside and the downside and provide hybrid type coverage. Primarily the REIT is composed of commercial property including shopping malls, apartment complexes and income producing property. It also is packaged with residential real estate of a particular type.

The influence of the REIT has seen increased interests to investors for providing income and a compliment to their portfolio of stocks and bonds. Because of the intricacies of the real estate market and commercial property in particular the investor should consult with a qualified REIT broker or investment advisor. Lists of REITs are available through Morningstar or may be reviewed on-line at the National Institute of Real Estate Investment Trusts.

Troubled waters can be avoided:

The current Summer and Fall 2007 concerns about real estate mortgages and a slow down in some United States real estate markets does not mean the REIT investment is in jeopardy.

There are certain REITS in the United States that are hybrids that afford the investor with security in good times and troubling areas of the market.

It should also be remembered that REITs are available for nearly all of the world real estate markets. In many parts of the world, China, Asia, Europe and Dubai the real estate market in both commercial and residential income property is sizzling. There is stability in these parts of the world for some hefty returns for investors.

Purpose:

The overall purpose of the REIT envisioned by the U.S. Congress was to provide a means for investors and in turn the developers of real estate to mutually benefit from growth. It places the average investor in a position of being a big player with the benefit of a share of the profits. A small investment in a REIT can enhance a portfolio of stocks and bonds. Each investment dollar goes into enhancing or creating the availability of funds for building realty.

Due to the nature of the REIT, it must be organized and structured according to strict guidelines. The SEC guidelines apply to those REITS public traded on the New York Stock Exchange and governs those REITS listed with the exchange. Privately held REITS must comply with IRS standards and other state and federal laws pertaining to trusts.

The REIT is an investment that any investor should consider and review the merits with a trusted financial planner with the expertise in the REIT market world wide.

Subscribe To Stock Publication

Max — Sun, 22 Aug 2010 01:53:12 +0000

In the world of stock investing, the more you know, the better you are. Most investors subscribe to at least one business journal and others subscribe to investor newsletters. The costs of subscriptions are reasonable compared to other specialized reading services. Many of the news journal also contain daily news stories and expert commentary. Most of the business news services and advisory newsletters are accessible on the Internet or in paper format.

Journals and Magazines:

The Wall Street Journal has been a familiar source of reliable stock market information for decades. It is owned by the Dow Jones family of business related publication. Dow Jones appears to headed for an acquisition by News Corporation with extensive a multi media entertainment holdings. The proposed merger should go through in the fourth quarter of 2007.

The Wall Street Journal has excellent stock market information. The format is easy to read and it is organized well for quick reference or for enjoyable reading about the stock market. The writers are exceptional with experience in the business world. There is a section to watch your own portfolio and to research company history and financial information that is easy to locate. It is a value at $79 for 54 weeks of reading either in paper or on-line. A subscriber can get both the on-line and paper version for a total of $99 for 52 weeks and some free weeks.

Barron’s is another publication that is owned by Dow Jones & Company. This publication is sold as a separate subscription. It is a weekly magazine format that is foremost in quality research and in depth reporting about the U.S. Market and around the world. Barron’s can be purchased on-line and in paper format.

Investor’s Business Daily has similar content to the Wall Street Journal. It has a remarkably good analysis of daily stocks and a good on-line educational tutorial. The publication may be read on-line or on a paper format. The publication is $295 per year for the paper version or $235 for the on-line version.

Newsletters:

There are numerous financial newsletters available on-line and in paper format. Of the ones I have reviewed there are only two that I would recommend for their value in stock investing. The Morningstar Stock Reporter is a monthly publication that has great research on stocks. The information is easy to digest and the format is easy to read. The subscription is about $89 per year.

The Street dot com stock advisory is unique. It is produced by Jim Cramer who has decades of experience in investing in the ups, downs and in between times on the stock market. He has a charitable trust that he keeps tabs on and invests. Due to a variety of reasons he is not an active trader of hedge funds or other investments.

He is a financial whiz in the market who appears on TV and writes books. His famous book Mad Money is now a half-hour TV show. He answers questions posed by telephone callers to the show. He also provides stock analysis.

The Jim Cramer Street dot com stock analysis subscription allows the investor to trade along side with him. He sends out advisories on stocks by e-mail. He also allows the investor to see his portfolio. In addition for every subscription sold he sends the subscriber a free copy of his book. This advisory service is worth a free trial run and then decide if it is worth the cost of the subscription. Jim Cramer has made himself and a whole lot of people very rich.

Sport Fan Investing

Max — Sat, 07 Aug 2010 17:29:12 +0000

The avid sports fan has a place in the Stock Market. If you have a passion for sports either as an amateur player or sports fan there are great stocks for you to invest. The sports retail and manufacturing industry is worth billions in revenue. Passions do not come cheap so maybe you can turn your enjoyment into making a few dollars.

Dick’s Sporting Goods is a multi sport equipment, apparel and general store. The passion of the owner Dick borrowed $300 from his grandmother and opened a bait and tackle store in 1958. Today Dick’s Sporting Goods is located in 34 states with 315 stores. In addition, he owns Golf Galaxy a multi-channel golf specialty retailer with 77 stores. The stock sells on the New York Stock Exchange with the stock ticker DKS. The stock currently sells for about $70 per share. It enjoys a market cap of over 3.5 billion dollars. The stock has some big name holders like Citigroup, Oppenheimer and Goldman Sachs.

Foot Locker Inc. is another sports shoes and apparel shop that has a significant market share of sports market. The stock sells on the NYSE for $16.71 a share. It trades under the stock ticker FL. It has some room to go back up to the $40 range where it belongs. Some weakening in the retail area and other concerns have weighed on this stock. It is a good stock and worth watching.

Cabela’s is a Nebraska sports and apparel company that sells on-line. It has store outlets that are an adventure for any shopper. Cabela’s is a success story and when the jitters in the market subside it will soar. It is priced currently in the high $20 range and worth every dime. It trades under symbol CAB.

Nike Inc. is a familiar brand name for most sports fans and enthusiasts. The stock is sold on the New York Stock Exchange. The stock symbol is NKE. The company sells apparel, shoes and accessories. The company has a 28.2 billion dollar market share. Nike employs over 32,000 employees. Nike is priced currently at $58 per share. The stock is expected to climb as high as $70 per share. Some of the major holders are Barclay’s Global Fund, Fidelity Blue Chip Fund, Vanguard 500 Index Fund and some other blue ribbon funds.

The combined efforts of Molson Brewing Company of Canada and Coors Brewing Company in recent years created the Molson Coors Brewing Company. The market cap and distribution of the company is tremendous. It employs 11,000 people. It has plans to open a new subsidiary. It is going through a shift in upper management, but it is a sold investment to keep on your radar. The stock symbol is TAP and sells in mid to high $80. The company has a blue ribbon list of holders of the stock. Barclays Global Fund, Vanguard Group, and Goldman Sachs are a sample of their investors.

The sports fan has lots of opportunities to invest in their passion and enjoy the game as a participant in the sheer fun of making a few dollar in the process.

Use Your Cupboard As A Stock Picker

Max — Thu, 08 Jul 2010 20:09:12 +0000

There are experts in the field of making predictions on stock performance. Another expert in the field of some stocks may be you the consumer. Think about it, you pick products that for various reasons are your favorites. Your kitchen cupboard or shopping basket may be a very good prediction on the long term performance of the company stock.

Company brand products did not become staples in most homes because of clever packaging and cute commercials. The brands we as consumers rely on are on shopping list because the particular product is tried and true to its word. The household purchaser can make or break a product. The true clout of the American consumer is not to be underestimated in the Stock Market.

On a larger scale, you as the consumer may have a grocery store that over the years you may find carried all the products mentioned above. The convenience of a grocery store that carries all of your favorite items save you time and money in traveling around. The success of Wal-Mart, Target and other big box stores is the convenience of one stop shopping. The prices for brand names in the big box stores are good. Other personal favorites in shopping venues may include Safeway, Albertson’s and Kroger. All of these companies are listed on the stock exchange.

In the brand name product area you may need to look on the packaging to determine the name of the company to find the stock. Some favorites like Clorox, Johnson & Johnson, and others are listed under the familiar company name. Due to mergers and acquisitions many name brand products have become subsidiaries or subsumed in a larger company’s product line. All you need to do is check out the references on the label or customer service information that is located somewhere on the product.

The idea of you as the consumer being the best stock picker extends to larger items. You spent some time looking for an automobile, washing machine, refrigerator and like items. You chose a particular brand for a reason. The factors could be value, reliability or your past experiences. The reason could be a combination of all factors mentioned above. Value your decision process and consider investing in the company that produces the product.

A cautionary note is that even the best company may have a down year. The reasons could be management changes, and other economic pressures. The product is still good, but the internal structure of the company needs a quick fix. In these circumstances make a decision whether you want to weather the storm or wait until the company gets its act together. Sometimes the stormy days of a company can be a buying opportunity.

In conclusion your cupboard or your shopping cart may be a good indicator of the stocks you should consider choosing. The other good aspect of investing using your cupboard is personal satisfaction. As a consumer you have the dual role of being an investor in your product. It is a good feeling to put your dollars into growth instead of simple consumption.

Stock Market How To Pick Broker

Max — Tue, 25 May 2010 06:30:12 +0000

The key to any relationship particularly when it comes to money is choosing someone you can trust. A stock broker is essentially your agent in charge of your money. The main role of a stock broker is to provide the investor with timely good advice on picking the right investment for you and your money.

A stock broker must be qualified to sell equities. In order to be certified the stock broker must be educated and pass state administered tests. Aside from the basic minimum qualifications a stock broker has a track record in his or her handling of stock portfolios.

A smart investor will ask the potential stock broker about his accounts for the past five years. Questions that require the stock broker candidate to discuss their investment strategy. What stock picks has he or she made that turned a profit. What stock picks did not show gains, but losses.

If the stock broker works for a brokerage house and most do, ask about the clients of the firm.

The stock broker is like any professional you would hire to perform a service. You are interviewing a candidate who will not only advise you on stocks and other investments, but someone who will take your personal welfare above all other considerations. Have a discussion with several candidates on the phone. The next step is to come up with a short list and have a personal meeting with the candidate stock broker.

There are regulations and government entities that regulate stock brokers in every state. There is arbitration remedies for damages you may incur if the stock broker has acted negligently in the handling of your account. These are bottom line safeguards. You want to pick someone who will never place you in that position.

In your selection process for a stock broker keep in mind the following points:

- A referral from a friend for a stock broker is useful, but not the final word.

- Hiring a friend that is a stock broker can be problematic if a disagreement occurs.

- From the first contact with the stock broker does he or she act attentive and return calls.

- Does the candidate stock broker ask you about your comfort level in investing.

- Does the candidate stock broker provide you with insight into his or her investment strategy.

- Does the candidate stock broker’s investment strategy coincide with your ideas about investing.

- Ask the stock broker candidate to explain limit orders and other means of protecting your investment.

Is the candidate stock broker forthright in telling you of in-house stock portfolios. Many brokerage houses have baskets of stocks they promote under the firms name. How has the firm’s stock package done over the past four quarters.

When the candidate stock broker is speaking to you does he or she gloss over information or do you get the impression it is a sales pitch. Every stock broker is a sales person, but there are limits in this field.

Finally, never make a decision on the spot. After your meeting face-to-face go home or back to your office and consider your choices. Pay particular attention to your gut reaction after you have left the meeting. Is this someone you trust to carry out your wishes and provide you with sound investment choices.

Can I Invest Direct

Max — Sun, 16 May 2010 07:28:12 +0000

There are companies that allow an investor to purchase stocks directly from the company. This is perfectly okay according to the Securities and Exchange Commission. These are called Direct Stock Plans. It is called a DSPP. The company may require that you already have stocks through employment with the company. It is not required in all companies.

The Direct Stock Plan operates differently than buying stock through a broker. There is no commission charged for these stock plans, but there can be a small fee. The other difference is that the company buys and sells the stock at a given time. The investor cannot sell or trade stocks at will. The investor may turn the stocks over to a broker to sell, but the broker cannot charge a commission. You may be charged a fee by the company. It depends on your agreement.

If you have a favorite company, like the Walt Disney Company, Coca Cola or other brand names in the United State you may be able to implement a Direct Stock Plan to purchase stocks on a regular basis. You can review the list of stocks in your local library or check out the company you are interested in by accessing the company web site.

Another method of investing direct in a company is by way of the Direct Dividend Reinvestment Plan. It is commonly called a DRIP. The good aspect of this type of plan is that instead of receiving the dividends you agree to reinvest the dividends in more stock in the company. It is a regular Direct Stock Plan with a reinvestment agreement. You may do the same reinvestment plan with your other stocks and mutual funds even if you have a broker.

The advantage is that if the company allows a private investor to purchase stocks directly this would allow you to set up a pay check withdrawal each pay period for the purposes of the stock plan. There are various advisory services that can assist you in locating companies that offer these direct stock purchase plan. I would suggest that you find companies you are interested in a make an inquiry with investor relations.

The advantage to contacting the individual company yourself is that it allows you to use your preferences and then do a small amount of leg work. The company representative will give you the necessary forms and provide you with individual advice on how to set up pay roll deduction. In turn you can contact your banking institution, employer human resources or bill payer and set up the account.

It will astound you the number of very good companies that will allow you to buy stocks direct

by setting up a plan. The range of possibilities include, utility companies, fast food stocks, entertainment and retail stocks.

If you have a solid company that has shown solid performance this may be a good option for investing.

The only thing you have to lose is your time. The time it takes in gathering the information has a big payoff. It will save you commission fees and provide you with a long term relationship with your favorite company.

The Arbitration Agreement

Max — Sun, 09 May 2010 00:05:12 +0000

It is almost a universal practice to include an arbitration agreement when an investor opens a brokerage account or commodities, mutual fund account. An investor will find that in the process of signing up for a brokerage account there is a standard arbitration agreement contained in the packet of information. This article addresses some of the history of the stock brokerage arbitration agreement and the reasoning behind the agreement. Not all arbitration agreements are alike and therefore if you have any questions about the legality of the agreement you should contact a competent attorney in the field of securities arbitration agreements.

The reasoning behind the accepted practice of arbitrating disputes with your stock broker and mutual fund manager is the notion that arbitration can be handled privately, with a qualified expert arbitrator in a reasonable period of time. While it is not required an investor may file a simple letter complaint. The necessity of hiring an attorney to file the complaint. It may be advisable, but it is not necessary to hire an attorney. The rules and guidelines for arbitration are set forth on the New York Stock Exchange web site or may be requested by mail.

The history of the arbitration agreement in the United States stock exchange has a 200 year history. The Courts and Congress have uniformly favored the arbitration agreement signed when the account is opened. That is not to say that all arbitration agreements are flawless. Some arbitration agreements have been voided for various reasons.

The arbitration provides a forum for disagreements that may occur with the investor and the broker. Disputes may vary in severity, but the key is disclosure of pertinent facts known by the broker that negatively effected the investor. The other reasons are obvious mishandling of a clients funds, failure to act in accordance with the clients orders and fraud like conduct. All of these reasons and variations in between can occur and sometimes do occur in the relationship of client and broker.

There is a Director of Arbitration with the New York Stock Exchange who has the duty to provide the forum and implement rules that govern the arbitration of dispute. The Director has the duty to provide lists of arbitrators who are qualified to hear specific types of disputes. There are securities arbitrators and public interest arbitrators. The Director has the obligation to report to Congress any and all issues regarding the arbitration of disputes. It is designed to be a forum that is friendly to non-broker complainants.

For disputes involving less than $25,000 there is an expedited form of arbitration. For investor complainants over the age of 70 with health issues an expedited handling of disputes may be requested. According to testimony provided by the Director of Arbitration to Congress in 2005 the complaints from investors have increased since 2002. See: Karen Kupersmith, Director of Arbitration New York Stock Exchange to the Finance Committee of Congress, March 17, 2005.

Adjustments in staff and case management were suggested to keep the intent of the New York Stock Exchange vital and up to date for the protection of investors.

The New York Stock Exchange Arbitration has in the past years of 2003 and 2004 awarded the public over 70 and 80 percent of all claims presented. The rule of thumb that most arbitrators use is when applying whether information by a broker should be disclosed is: ” If in doubt, disclose,” according to Ms. Kupersmith.

The question of whether to sign an agreement to arbitrate is not germane because you will not get an account without the agreement. The question should be is the agreement to arbitrate you are being asked to sign legal and enforceable. That issue may require you to ask for an attorney consultant to review the arbitration agreement. A majority of well known brokerage houses have standard arbitration agreements.

Horror Stories:

There are some really nasty events that can occur between the holder and advisor of your money and you. In recent years, some down right fraud has occured. Some of the bad dealings required the FBI to uncover. Some examples would be a broker who is not licensed and sells bogus securities. Other schemes include churning accounts. The concept of churning means the broker buys and sells stocks on your account to get commission fees not for the benefit of your portfolio. Specious equities and other instruments are offered by a former member of the exchange that turn out to be bogus. All states have an Insurance and Securities Commissioner whose responsibility it is to regulate the activities of brokers and the products that are sold in your state.

If you believe you have a complaint or have concerns about an investment it is advisable to check with your Securities Commissioner or State Attorney General before you invest. It is much easier to avoid a bad investment than to have to undo one.

How To Form Stock Club

Max — Sun, 21 Mar 2010 23:39:12 +0000

The investor comes in all shapes and sizes. One method of investing is to form a stock club. The members of the stock club pool a set amount of funds each month or quarter and then as a group decide which stock or fund to place their investment dollars. The members could be people you know from church, school or a chat buddy on the Internet. The stock club is made up of people from all walks of life and income levels. Generally, the stock club are comprised of people of like means and interests. The number of members in a stock club may be as small as four and as large as 10. The important ingredient in a stock club is that all members have a voice in the decision making process.

Formation:

After your group is formed a method of handling the funds and other administrative duties should be initiated. One method is to have a rotating treasurer or secretary of the group. This stock member will handle the funds contributed by the club. A good method of starting out on the right foot is to set forth the basic rules of the group in a letter. The rules should include how much money each member will contribute each month or quarter. How the decision on investments are made. How the members of the group will present their investment choices to the group. How is the final decision is made either by a simple majority vote or super majority. The members can rotate the presentation of their stock picks. Each presentation should include the financial information of the company and the last three years of prices and any other material relevant to the stock.

Basic Decisions on Finance:

The stock club should open a business account with a local bank or on-line bank. The choices of how you want the club account to be named on the account is up to the members. The stock club account should be set up with at least two signatories on the account. If you want all members to have the ability to deposit and access the account that is up to you and your bank.

The next step is to locate an on-line stock account. Depending on the on-line stock account you may need to open the account in the name of one or more members. If you have a fictitious name selected for the name of your group you may need to register the name with the state or county. Try and keep this aspect simple. You are not a big investment club. Keep the entity simple. If you need assistance ask your favorite banker or lawyer.

The Meetings:

The meetings for the stock club should be organized like any formal meeting. You may all be friends and it does not need to be stiff, but the purpose of the meeting is important. Discuss any old business. Keep notes of the event. Allow each member to present their opinions in an orderly fashion. Set aside an adequate amount of time for the presentation of a new stock opportunity. Allow all members to ask questions of the presenter and state their opinion. The final vote should be noted. Finally decide on the date of the next meeting.

The Dog Investment:

In the course of things someone may pick a real dog for an investment. The stock club should not worry about a bad choice, but as soon as it is apparent to all members that the stock is not going anywhere, sell. The group can learn from its mistakes, but it is important to move on. Set objectives for the stock club at each meeting. By continuing to set goals and objectives the stock club remains vibrant.

Winding Things Up:

At any given given point the stock club may decide to dissolve the group. At this point the process of winding things up may require some formality. Closing accounts, dispersing funds to the members and the like. If a large sum of money is involved the members may decide to ask for the assistance of a tax accountant. The fee should be paid out of the funds accumulated and charged against the account before disbursements are made.

The stock club is an enjoyable way to make long lasting friendships and to make a few dollars in the process. The stock club is a means where the smallest individually can become a viable group.

Invest In Technology Final

Max — Thu, 04 Mar 2010 10:31:12 +0000

The infra structure of technology has not quite reached puberty. The very best is yet to come. In particular I am referencing Internet technology and mobile access to the world wide market place of information and support system that enables total remote access. Additionally, the use of technology in the field of medicine, health care and other related services.

The list of products and services in the pipeline of small, medium and large companies is astounding.

Within the field of technology is the corner stone of all the products is security software and services. The talk on Wall Street is that technology stocks are ripe for investing in todays market. This piece of information is noteworthy, but having watched the exuberance of gross gains in the last decade go blow, not all technology stocks are the same.

The specific areas that appear in my opinion to be situated well for future growth are in health care related stocks, multi-media and graphic software, security software, networking and communication devices and specialized areas of electronics. There are other categories, but these areas of technology are poised for future gains in my opinion.

Health Care Related Stocks:

Imagine the future of delivering health care services. The physician practicing in a remote town in Alaska who can consult with a specialist located at John Hopkins Medical Center. In real time the rural doctor can send and receive vital radiological and metabolic tests and results. Imagine medical scientists, physicians and university medical centers consulting on their data enable mobile phone devices. Some of these technologies exist today, but the future is going to be fantastic.

In the small cap arena several health care delivery stocks are generating interest. Mediware Information Systems is a $7 stock that will likely double in the foreseeable future. It trades under the stock symbol MEDW on the NASDAQ stock exchange. This relatively small company has a huge presence in the hospital services area. MEDW has three components in its software applications all that aid hospitals and physicians to track and modify drug orders, blood management and perioperative functions. These tools are used extensively in the United States and their application is being applied in other countries including African nations.

Another interesting low cost health care information technology stock is HLTH Corp. it trades on the NASDAQ stock exchange under the ticker HLTH. The way most consumers recognize this health technology stock is by its subsidiary WebMD. HLTH Corp. is the data management behind WebMD. The company is diversified in that it has public services as well as private accounts for paid customers like Blue Cross Blue Shield. It also supports a payee and bill service for health care providers. The company is valued at 2.6 billion dollars and employs over 2200 employees. Its current price is $14.60 and the growth potential is solid.

Multi-Media & Graphic Stocks:

The name Konami may not be familiar to most people, but it is the underpinning to virtually all of the video games utilized on all platforms. Konami trades on the NASDAQ exchange under the ticker KNM. Its primary function is the development, distribution, publishing and marketing of video games around the world. It is based in Tokyo and has been virtually unscathed by fluctuations in the Tokyo Exchange.

Recently it announced the development of a mobile platform for its most popular games that will be available on September 8, 2007 through AT& T and other mobile phone carriers. The video game industry is only going to get better. The stock sells for approximately $24 a share. Another stock to watch is Electronic Arts that trades under the ticker ERTS.

There are various ways to invest in the technology area. Some brokerage houses do offer technology index funds that include a cross section of technology companies. The other method is simply to pick stocks from the technology sector that offer sustained growth, good value and potential for the future.

Investing In Green Stocks

Max — Mon, 25 Jan 2010 05:04:12 +0000

The socially conscious investor will find a wide range of Eco-friendly stocks and mutual funds to choose from, both small and large. Due to the influence of world-wide concern over global pollution and carbon dioxide, the investor will find many large corporations are snapping up green companies to add to their list of products.

A recent acquisition by Royal Philips Electronics (headquartered in the Netherlands) of Color Kinetics, trading on the NASDAQ as CLRK is a great example. Color Kinetics was a ten-year-old company that produced environmentally friendly lighting through its enhancement of the LED (light-emitting-diode) technology to create a new type of illumination.

Color Kinetics utilized digitalized technology to create a new source of controllable illumination. The merger between the giant Philips and Color Kinetics will enhance its Philips Lighting Solutions market in the LED technology. Color Kinetic has existing installations world wide and a huge customer list, with relationships in China and the UK. Philips, in turn will, provide its 60-country-presence to the Eco-friendly technology of Color Kinetics. Investors should not rule large conglomerates in their search for Eco-friendly stock.

Small Cap Companies:

For investors that enjoy investing directly in small cap companies there are numerous opportunities for investors in AMEX. These stocks are very reasonable in price and may provide future gains as going green becomes an integral part of business and not just a slogan. I have watched some Eco-friendly companies grow over the past several years and the following is a highlight of some interesting stocks.

Environmental Power Corp. trades under the ticker EPG on the AMEX exchange. This stock currently sells in the $5 range. The company and its subsidiaries engage in the ownership, development and operation of renewable energy facilities in the United States. EPG owns 83 leasehold of land. It has plants that utilize animal and food industry waste to produce bio-mass and other forms of alternative fuel that utilize their renewable energy biogas. A good reason to give this company a good look is that it filed a notice with the SEC that it has a firm commitment from an underwriter to make and offering of over four million shares of his stock. If the offering goes forward the company could realize a gain in the price as well as an infusion of over 22 million dollars.

There is another stock that has great promise in the fuel cell area. This area has room to grow. I particularly like Fuel Cell Energy. It trades under the stock ticker FCEL. The company has a market cap of approximately 650 million. The company is in the development, manufacturing and sale of fuel cells power plants for use in electrical power plants. Its pipeline products are geared for use in health care facilities, hotels, hospitals, universities, governmental offices and water treatment centers. The company is located in Connecticut with office in Korea, Japan, Canada and Europe. This $9 stock has no where to go but up in the long term. Another reason to think twice about this company is the major holders of stock in the company. Wells Fargo Bank, Barclays, Deutsche Bank and other prominent funds are invested in FCEL.

A stock that is a good value, but lacks appreciation is Calgon Carbon Corp. in Pennsylvania. The company trades under the ticker CCC. The company is in the business of providing means to clean the air and water.

The company has been around for a good period of time and it appears that 2007 may be its year to take a solid place in Eco-friendly stocks. It currently sells in the $13 range and deserves a good review.

There are numerous ways to get into the green, Eco-friendly stocks. There are mutual funds and indexes available. In addition there are segments in wind, health foods and solar energy that have opportunities for investment.

Investingintheoilsector

Max — Wed, 23 Dec 2009 16:32:12 +0000

There is advantages to investing in areas of the stock market that you know or have some personal experience with on a daily basis. Nearly everyone is effected in one way or another by the commodity oil. If you are an individual you take note of prices at the gas pump, heating bill and other uses of oil. If you are a business owner the price of oil is a factor in the operation of your business. For the purposes of this article the two areas that will be covered is oil & gas and oil service stocks. The first area oil & gas covers some of the big oil stocks whose names you may know. The second area is the oil service stocks that support and aid the extraction and distribution of oil.

Big Oil & Gas:

For all the rhetoric and interesting speculation about “green energy,” and the alternative fuels like ethanol, biomass, and wind energy the present circumstances places the lion share of energy that moves the world in the lap of the oil industry. Names you not only hear about, but have been around in one shape or another for a century. Chevron, Exxon-Mobil, Conoco-Philips, British Petroleum, Royal Dutch Shell and Hess Corporation. These companies have an individual market capitalization of hundreds of billion of dollars, with the exception of Hess that has a mere 19 billion in market cap. It is hard to imagine a more solid group of stocks with as much clout as this elite club.

All of the stocks mentioned above are involved in exploration, distribution and marketing of oil products around the world. Their influence and their financial worth allows them to invest in costly drilling, manufacturing and distribution of oil in all of its forms. While the rhetoric continues about building and providing alternative sources of energy. These companies presently support a significant percentage of the every day uses of energy. Some of the big oil companies even support blends of biomass fuels and ethanol as a compliment to their own primary purposes.

The cost of purchasing stock in this stock is relatively cheap when you consider the likes of Google selling for in excess of $500 per share. Still other intellectual property stocks on the market and conglomerates sell for in excess of $200 a share. The range of prices in Big Oil is between $61 to $89 per share. What you get is a stock that is capitalized with billions of dollars, has a management team that is beyond exceptional and an underlying product “oil” that is in short supply.

For the moral investor that blames Big Oil for the environmental mess, wars and other maladies the world faces the only American not to blame are the Amish with their horse and buggies. Still, the Amish may leave a smaller foot print, but we all have in one way or another impacted and contributed to the need Big Oil has satisfied and will continue to do so. At present there is small improvements everyone can do, but Big Oil’s contribution to a strong economy, and living in a modern society is not going to be replaced any time soon.

The best bet for future stock growth and for pure investment is in oil & gas. Of the Big Oil stocks that are worth looking at Royal Dutch Shell and Conoco-Philips are the two that have some noteable room for short term growth. Another reason to consider Conoco-Philips is that George Soros recently took a position in this company. In investing it is good to follow the leaders. Review the institutional investors in all of the stocks mentioned above and make a decision on which company you think will be a good addition to your portfolio. If in time you make a huge gain take a portion of the profits and contribute to a fledgling “green energy” cooperative.

Oil Service Stocks:

The oil sector would not be complete without mentioning the drillers who get that precious commodity out of the ground, ocean bed or frozen tundra. The oil drilling stocks are rumored by some financial experts to be waning in appeal or topped out. In order to put this in perspective the long history of the oil drilling companies goes back a century. These tough minded riggers and engineers made the oil industry what it is today. The inventive engineers and scientists found astounding ways to detect and then extract oil from the most harsh environmental challenges. The oil drilling stocks are part and parcel of the oil industry.

Recently two of the biggest players in the drilling industry, Transocean Inc, (RIG) and Global Santa Fe Corp. (GSF) announced merger plans. Individually, RIG sells for around $70 per share and RIG in the neighborhood of $102. These companies are backed by billions of dollars and their institutional investors are stellar. Another drilling company of note is Diamond Drilling. This drilling stock is owned by Fidelity Funds, Vanguard Funds, Loews Corp. and Thornburg Investments to name just a few. The oil drilling stocks merit a good look and watch for buying opportunities if there are dips in the near future. In the alternative you can choose a mutual fund from one of the institutional investors mentioned in this piece that focuses on the oil sector.

This has been a brief overview of the oil sector. Review your investment objectives and seek the advice of licensed estate planner or stock broker. Company prospectives are available on-line and by mail.

Are You A Stock Investor

Max — Sun, 20 Dec 2009 10:25:12 +0000

The threshold question before you decide to invest in the stock market is whether you are an investor. For some people the stock market may not be suited to their personality. This article addresses some of the qualities an investor should have in order to make a reasonable return in the stock market.

Sure, there are folk tales you may hear about the guy who bought XYZ Company stock for $5 and sold it 60 days later for $50 a share. This scenario probably has happened, but it is not the reality of being an investor. The following points should be considered when you are considering becoming an investor.

Are you self-disciplined in your thinking?

The first step anyone must take into account is their own personality. Are you objectively a person who is organized in your thinking? Do you know how much money you have to invest? Do you know how to set objectives in your finances? Have you set goals for savings and followed through on those objectives? An investor has to have a clear set of objectives in their choice of investments. Is the amount of money you intend to invest a one time wind fall? Are you able to set aside a certain amount of money each month to investing that is disposable income?

In effect what you will be doing is moving some of your pass book savings to an investment. Patterns development in peoples lives. Are you able to transfer your savings pattern to include a regular investment in the stock market? If you are currently earning a small percentage on your pass book savings account what rate of return would you be satisfied in receiving? The key to investing is to know your expenses and income and decide how much money is disposable income. It is this excess that will be your investment dollars.

Are you able to set goals and listen to good advise?

Once you have determined that investing may be a possible avenue for you to consider the next step is setting goals. A goal is the objective of your investment. It could be for retirement, a vacation home, a rainy day fund or a new boat. Whatever your is determines the type of investing you will be looking for in your research. If it is a long term goal like retirement you may seek a tax exempt municipal bond fund or a mutual fund with certain characteristics. If you want liquidity like a pass book savings account where you can draw money as you need it there are some investments that may fit. The important aspect of this step is to know your objectives and then draw up a budget or a plan.

All of the major fund companies have managers and consultants. Are you able to set forth your objectives and ask for advice in picking out a fund that will fit your needs? This does not mean you need to sign up for the first consultant who takes your call. It means can you listen to advice and make a decision on various alternatives offered to you. After you have gathered all the information you believe is necessary for your decision can you apply your personal goals with the information presented and make a final decision?

This may seem like an odd inquiry, can you make a final decision? Unfortunately, some people will feel quite comfortable going to a car show room and purchase a $30,000 automobile. The color, impression, and internal motivators. But when it comes to investing, the buy is not as dazzling. It takes consideration to commit $30,000 to an investment in paper form even though you may be purchasing stock in the flashy car company.

Can You Let Go?

The final and perhaps most important aspect of deciding if you are a stock investor is, YOU. After you have gone through all of the self analysis, goals, research and advice of others and made your final decision the next step is critical. Do you have the personality to allow your investment to take its course? Can you sleep at night? Unless you are a day trader who plays the upside and downside of the stock market and I would not recommend this to anyone starting out. You have to be able to roll with the punches. Trust your instincts and review your investment on a monthly or quarterly basis. If you buy individual stocks, place a limit order on the account. A limit order allows your broker or on-line account to sell if the price goes down.

The mutual fund investment works differently that buying individual stocks. If you are satisfied that your choice of a fund met all of your criteria for investing let it alone and review it only periodically. If your mutual fund for any reason meets with unexpected long term problems you can change funds. I would review the fund on a quarterly basis and discuss this with the fund account manager or representative.

This is the investor personality that you need to have in order to have a lifetime of success in the stock market. If you have it, it works. If you don’t, try another type of investment.

Stock Market What Is Hedge Fund

Max — Mon, 07 Dec 2009 06:29:12 +0000

The simple answer to what is a Hedge Fund is that it is private equity funds which provide a hedge against market conditions. The Hedge Fund is not simple in practice. On a global basis there is over a trillion dollars of private investment capital that can literally invest in any commodity, currency indeses and stocks and bonds. Unlike traditional investing the Hedge Fund may go long or short the market. It is private equity and therefore the gains on transactions for fund owners is taxed differently that normal capital gains taxes.

Essentially the Hedge Fund is formed by individual investors who have a stake in the fund. The buy-in is in the millions. Noted Hedge Fund owners are George Soros and the Blackstone Group founded by Peter G. Peterson and Stephen A. Schwarzman.

The Blackstone Group is a fairy tale. The Blackstone Group was founded by Peter G. Peterson and Stephen A. Schwarsman. According to the Blackstone Group corporate biography the iniital private funds in 1985 were $400,000. By forging alliances and partnerships with some of the most well-heeled on Wall Street their assets under management are over 88.5 billion dollars.

The Blackstone Group is a world leader in alternative investment strategies and investment counseling. A recent IPO Blackstone Capital Partners raised an additional 21.7 billion dollars.

Hedge Funds are only a segment of the Blackstone Group Investments. The Blackstone Group has a stellar Hedge Fund management in the world market. Its group of Hedge Funds are uniquely tailored for a variety of investment strategies and goals. In fact the Blackstone Group can provide individualized tailoring of a Hedge Fund to fit the needs of large investment endowments and retirement funds. Anyone can purchase a unit of stock in the Blackstone Group through a licensed stock broker. It trades on the New York Stock Exchange under the stock ticker BX.

Any discussion about Hedge Funds would not be complete without mentioning the financial wizard George Soros. His ability to sense movements in the market place is known throughout the financial world. His Hedge Fund and investment company is Quantum Fund. He senses weaknesses and strengths as only a master financial investor/trader can. In 1992 his legendary move to short the British pound nearly broke the Bank of London is part of the lore of George Soros. He can play the upside or the downside of any market. Some may call it a sixth sense, but it is an all encompassing ability to assess with precision the reality of the market and stengths of the underlying values with the reactions of the wild and crazy speculator will do. It is this investor saavy that has placed him in the Forbes wealthiest category.

There are thousands of Hedge Funds available in the various market places. Lately some have not done as well due to the roller coaster ride that has occured. This is the time when the true test of a Hedge Fund manager is put to the test. The average mutual fund holder or retirement beneficiary may be surprised to learn that their funds are in part invested in low risk Hedge Funds. The most successful endowment funds have utilized the Hedge Fund investment to capitalize on market movement and volitility.

The professional that manage these funds are lightning quick and have the eccumen to know how and when to make grand plays. Any one who does not possess these combinations of skill and sixth sense does not last in the Hedge Fund for very long. The old adage, “If you snooze, you lose,” applies to Hedge Funds.

Investing In China

Max — Sun, 06 Dec 2009 02:24:12 +0000

China’s economy has been soaring for some time. It is possible the growth potential is only at the starting point. During the years of its world seclusion. China as a country amassed trillions of dollars in its coffers. American companies that have relocated some of their operations to China has added even more capital to the China economy. The Chinese are wise investors and do not seem to make a bad deal in any of their financial transactions. China calls the shots in the deal making process.

This year in particular China is going through a massive infra structure and building phase within China to prepare for the 2008 Olympics. This factor has increased China’s tremendous building phase in manufacturing aluminum, building trades and the railroad industry. In the area of communication China has stepped up its manufacturing and distribution of products. China also has plans to build a small economy car called the Chery Automobile.

For all the reasons mentioned above and the overall strength of the China economy this could be a good time to buy China stocks. The average American can purchase China stock on the New York Stock Exchange and NASDAQ Exchange. The other avenue available is the mutual fund or spider that is geared to Asian or China investments only. These funds do exist and are doing exceptionally well.

Specific China Stocks:

The need for raw materials and manufacturing of materials is a high priority for China. One particular shining star is Aluminum Corp China. It trades on the New York Stock Exchange under the stock ticker ACH. This is an $8.7 billion dollar market cap company. It has seen tremendous gains in the past two years. The growth spurt almost seems endless due to China’s demand for aluminum and other metals. The stock is currently selling in the high $60 range. The major institutional holders are John Hancock Trust-Natural Resources, Allianz, Goldman Sachs and other prized investor funds.

In the technology areas Chinese companies have some interesting choices. The web company and software technology and mobile phone application company CDC Corp. is a low cost stock to watch. The stock sells under the stock ticker CHINA. It is currently a $6.40 stock that can easily make its mark at $11 and higher. The Olympic 2008 event in Beijing is expected to boost their technologies.

A great information and search engine company is Baidu. It trades under the stock ticker BIDU. For whatever reason the brains on Wall Street love this stock. It sells in the $200 plus range, but it rivals the likes of Google. It is a stock to watch.

Mutual Funds:

The investor looking to invest in China and Asian Markets should definitely consider the mutual funds offered by various family of funds. Nearly all of the large fund companies have a fund that is designed for for exposure to the growth in China. Alger China Growth, Thornburg Global Opportunities, Evergreen Opportunities Fund, American Funds, Oppenheimer and Allianz all have great funds with good returns.

If you are interested in China stocks discuss it with your advisor or ask one of the funds mentioned above to send you a prospectus.

Stock Market Know Mutual Funds

Max — Mon, 16 Nov 2009 05:50:12 +0000

It is important for the individual investor to know about Mutual Funds. For some people the decision to invest in Mutual Funds is based on the premise that it is low risk investing. By in large this may be true, but it depends on the Mutual Fund and in particular the fund manager.

A Mutual Fund is a collection of stocks and other investments that are packaged by an investment company. Generally speaking it is a means by which the average pay check earner may enter the stock market. Some Mutual Funds require only a $1,000 initial investment and a small number of Mutual Funds may be purchased with as low as an initial $250 initial investment.

The key to investing in Mutual Funds is to read and evaluate the individual prospectives available to potential investors. You may review the performance of the Mutual Fund on-line or request the prospective by mail. The prospective gives you the Mutual Funds performance over the past quarters, years and decades. It also provides you with the fees that are charged to investors of Mutual Funds.

Certain Mutual Funds are no-load funds. Generally these funds are offered by state and municipal entities. It means the fund does not charge a fee to invest and is exempt to some taxes. There may be other charges for handling your Mutual Funds and charges if you decide to withdraw funds or move your investment elsewhere. This knowledge is essential before you commit a single dime to a Mutual Fund.

Your investigation should include the name of the stocks and other investments the Mutual Fund you are considering is currently investing. This point is critical because knowledge of the broader market is essential in determining if a particular fund is going to do well. If you have a penchant for global stocks, technology, financial or energy stocks you want to be assured these sectors are doing well in the overall stock market.

Some investors own single equities and Mutual Funds along with other investments in their portfolio. Most brokerage houses have financial planners who can review all of your investments including realty, equities, bonds and Mutual Funds to give you a full picture of your financial health and goals for your investing.

As with the stock exchanges Mutual Funds investing allows the investor to determine their risk level. There are municipal bonds funds, blue chips funds, growth funds, Asian Funds, Emerging Markets and combinations in between. The investor determines the choice of investment by his or her objective. For some it is for retirement, others income and tax consequences. The range of risk is provided by most Mutual Fund investment companies.

There are some excellent advisory services that provide star ratings on various Mutual Funds. The Morningstar advisors have up to date information on the health of various funds. There are also articles in the Wall Street Journal and Investors Daily about Mutual Fund Managers. There are stars in the Mutual Fund field. The star manager is only as good as his or her last year earnings. It is important to know who is doing well currently before you invest.

There are several families of Mutual Funds I would recommend reviewing. The Vanguard Funds, Fidelity, Oppenheimer and American Mutual Funds. Within these family of Mutual Funds there is a fund for about any level of interest and risk level. The information is available on-line or by mail.

The current bothersome area in the real estate market in particular sub-prime loans for at risk buyers is yet to be fleshed out on a global scale. The possible spill over effect to banks, financial institutions, mortgage companies and the commercial paper they have sold may be a factor in your consideration of which Mutual Fund to select. The true impact at this point is speculative as to the ripple effect that may ensue if the small percentage of risky mortgages end up in foreclosures. Presently the effect is an unwelcome squeeze in the credit market making it difficult to get loans for individuals and some lending institutions.

As with any uncertainty a good rule of thumb is to seek out Mutual Funds with a minimal amount of exposure to sub-prime mortgage woes. The Blue Chip or America’s stand-by stocks may have some advantages as some are undervalued. The technology and some exposure to China and Emerging Markets may be worth a look. Most Mutual Funds companies have stocks and investments that may fit the current trends and moods in the financial markets. Review the institutional investors in each fund. A rule of thumb is that big institutional investors generally do not invest in “dog” investments.

What Is NASDAQ

Max — Wed, 21 Oct 2009 02:52:12 +0000

The NASDAQ Exchange is a limited liability company and a corporation that provides a means for traders to execute stock orders for stock brokers, institutional investors and on-line stock purchasers. The NASDAQ Exchange was formed in 1971 by the National Association of Securities Dealer to fill a need for reporting stocks that were not a good fit in the regular stock exchange. The NASDAQ reports on over the counter stocks for thousands of stocks not listed on the other exchanges. By the 1990s NASDAQ surpassed in terms of listings the AMEX Exchange.

In order to trade on the NASDAQ the trader and members must be certified and agree to the by laws of NASDAQ Inc. In 1999 NASDAQ merged with AMEX to form the NASDAQ-Amex Group. By 2000 the National Association of Securities Dealers sold their interest in NASDAQ to private investors. See: NASDAQ Corporate Filings.

NASDAQ operates similarly to all corporations, it has Articles of Incorporation, Corporate Officers, By Laws and holds meetings. The NASDAQ LLC. has a governing board and in turn has rules and regulations it operates under. Given the quasi-governmental status of NASDAQ the Securities and Exchange Commission has a role in making sure NASDAQ operates according to good practices and regulations. If a company engages in inside trading, fraudulent reporting of corporate earnings and assets or the many areas of bad practices governed by the Securities Act of 1934, the Commission can provide sanctions and remedies for these acts. Likewise, state attorney generals and the U.S. Attorney may bring actions in court to cease and desist these bad acts and also provide for criminal sanctions.

What notable stocks are traded on NASDAQ?

As an investor you may invest in NASDAQ, it is listed under the ticker QQQQ. The stock value goes up and down depending on the overall health of the NASDAQ Top 100 Trust Funds. Currently NASDAQ QQQ, traded under ticker QQQQ is priced at around $48 a share. It has a market capitalization of $19 billion dollars and over the past three years has a 11.56 percent return on investments. The top holdings in QQQQ are: Apple, Cisco, Comcast, Gilead Sciences, Google, Intel, Microsoft, Oracle, Qualcomm, and Research in Motion. A impressive group to be associated with in one stock. There are however, some stocks among the fund that are not as illustrious in their performance. The fund is weighted heavily in the hardware sector. The others sectors with a significant impact are software, business services, customer service and healthcare.

NASDAQ provides soup to nuts in investment opportunities:

NASDAQ offers literally thousands of opportunities to invest in individuals stocks, indexes, real estate investment trusts, options and other means to make an investment. The investor has an cornucopia of types of stocks choose among from semiconductors, energy, finance, components, retail, in all 3113 components make up NASDAQ. Each company listed must meet capitalization and reporting standards. The investor has the opportunity to review each quarters reported earnings and debts. A company is required to report any significant issues that may effect the investor and the company. There are news services and financial advisor services who actively stay in top of company news. All in all it is surprising why a company would even try to fool investors or governmental watch dogs.

NASDAQ notables:

Apple Inc. is the darling of NASDAQ. It trades under the stock ticker AAPL. If you have been living on a remote island somewhere in a cave, Apple is the designer, manufacturer and marketer of iMAC computers, software, iphones and through its subsidiaries a range of products that support Apple main line of products. In September, 2005 Apple shares were in the vicinity of $48. As of the close of business on August 31, Apple is worth in the range of $138 a share. The unique aspect of Apple is just when you think it has topped out and is dawdling it comes up with some surprise and it is off and running again. It is a darling because it has resilience and innovation.

Never to be forgotten is Miscrosoft. It trades under the stock ticker MSFT. What can you say about a company that brought information and technology to middle America, Africa, South America and the world. It is a stock that sells currently in the $28 range. It has controversy in all corners particularly with law suits challenging this grand daddy of the Internet, but it is a tried and true long performer. It is the company that people love and hate. If there is innovation out there, Microsoft will find it.

A personal favorite of mine is Intel. In part because it is a work horse in the technology sector and in part because I read and enjoyed Tom Wolfe’s book on the company structure in Hooking Up. It was not a biography, but it did parallel the formation of this egalitarian work place. The stock sells in the range of $25 and sells under the ticker INTC.