Wednesday, February 1st, 2012 at
8:08 pm
Along with a career as the primary income, what do most Americans do as a secondary form of income? Is Stock Investing good? What else is there?
Long term, yes – it is one of the best. But short term it is far more risky, in fact it is more speculating than anything else – which is very hazardous, and most people lose at. If you want to supplement your income, then look into some bond funds. Government bonds are safer but now pay very little – look into something like Corporate grade investor bond funds, or High Yield Corporate bond funds. Bonds are much safer than stocks, and better at stable income production. Like everything else though, more reward means more risk.
Sunday, January 29th, 2012 at
9:56 pm
In this how to tutorial, you will learn about the top 6 criteria for you to consider for finding those undervalued stocks poised to take off. By knowing how to apply these criteria, you will be in a better position to make more money in the stock market.
We all would love to get in at the bottom floor of a wonderful upcoming business ready to ride the profit elevator up to new heights.
You may be asking yourself: “Where do the best opportunities lie in finding those best-of-breed businesses ready to take off in the markets?”
Having a simple set of criteria to help guide you in your decision-making process is critical to consistently picking those winners.
Here are the top 6 criteria for you to consider for finding those undervalued stocks poised to explode:
1. Company size:
Look for small to mid-cap companies with a market capitalization between $250 million and $1 billion. These emerging companies have the greatest potential for upside growth in terms of market exposure and profitability. The Apple’s, Google’s and Wal-Mart’s of tomorrow all started with humble beginnings.
2. Stability:
Look for companies that have a low Beta ratio of less than 1.0. Beta is a measure of the sensitivity of the company’s returns compared to market returns. In theory, a stock whose returns vary less than the market’s returns has a Beta with a value less than 1.0, thereby being less volatile and potentially risky.
3. Solid Fundamentals:
Look for companies that show growth rates in excess of 10% per year consistently over at least a 5-year period for the following:
• ROIC – return on investment capital
• BVPS – book value per share or equity
• EPS – earnings per share
• Sales, and
• Free Cash Flow
The key is to identify those businesses that have consistent year-over-year growth rates. The major stock market websites that post company financials will have the raw data that you need in order to calculate the growth rates.
4. Value:
Look for a PEG ratio that is less than 1.0. A lower ratio is better indicating that it is a cheaper and healthier stock than a higher ratio, which is more expensive. PEG is calculated by dividing the P/E ratio by the earnings per share (EPS) in order to better compare companies with different growth rates.
5. Global Exposure:
Find out if the business in question earns most of, or a large percentage of, its income from international markets. With America no longer being the most important economic market for businesses in today’s global economy, finding a company with international exposure to its products and/ or services is critical.
6. Stock Value vs. Stock Price:
Look for businesses where Mr. Market has priced the stock below the fair market value of the business. Ideally, you are looking for a stock price that has a big margin of safety (MOS) price of 30 -50% below its fair market or intrinsic value price.
Several subscription websites provide fair value estimates for businesses. However, should you like a simple approach to help you assess the MOS price for a business, please check out the articles on best-of-breed analysis at Stock Investing Simplified.
Once you have used the 6 criteria outlined above to identify potential companies, place them on your personal watch list. As the name implies, a watch list is a simple list of potential stocks in which to invest at some point in the future.
Now it’s time to get up close and personal and to only invest in those businesses that you understand and that you would be willing to monitor on a weekly basis for any changes to the fundamentals, market forces or competition.
This simple, step-by-step approach to analyzing stocks should help you identify those emerging companies with the potential of rising to new heights.
I encourage you to get started today in finding those great stocks that have the potential to produce consistently high returns for you.
Join us today by investing in your education at http://stockinvestingsimplified.com.
Disclaimer: Any information shared on Stock Investing Simplified does not constitute financial advice. Stock Investing Simplified is not a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities readers or customers should buy or sell for themselves. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser.
Duration : 0:5:32
Read the rest of this entry
Technorati Tags: analyzing stocks, Beta, fair market value, finding undervalued stocks, growth rates, intrinsic value, PEG, undervalued stocks
Saturday, January 21st, 2012 at
11:33 am
Are you looking to enter the stock market? Or have you been doing so for a while but are looking for some great websites that might make your technical and fundamental analysis easier?
In this video I introduce four indispensable stock related websites that I frequently use to find, analyze and pick winning stocks. Of course, you should not limit yourself to these websites for making investment decisions, but they are good head-start.
If you find this video useful, do not forget to subscribe as more are on their way. Please remember that you are responsible for your own investment decisions. Never follow somebody’s advice before making your own research.
The websites in this video are as follow:
www.finviz.com
www.stockcharts.com
www.finance.yahoo.com
www.morningstar.com
Duration : 0:14:6
Read the rest of this entry
Technorati Tags: analysis, finance, fundamental, how, Investing, make, money, profit, Stock, stocks, technical, to, Website
Friday, January 13th, 2012 at
5:24 am
Opening an online brokerage account is as simple as locating the right firm, deciding how much money to invest and completing the online application. Choose an online broker after researching different company Web sites with tips from an experienced financial specialist in this free video on investing.
Expert: Phillip Beningoso
Contact: www.wearehdtv.com
Bio: Phillip Beningoso has a bachelor’s of arts degree with a major in finance and a minor in economics and computer sciences from Kent State University.
Filmmaker: Christopher Rokosz
Duration : 0:2:2
Read the rest of this entry
Technorati Tags: bonds, brokerage accounts, investments, money, stock market, stocks
Saturday, January 7th, 2012 at
8:47 pm
Hello, I read about economics topics and i feel attracted to the idea about investing your company or business profit into real estate and stocks investment,however, I hold a doubt regarding this statement. How can you keep your company or business growing if you ar investing the profit in real estate or stocks?? profit should be re-invested in your business in order to make it grow?am i correct? so how is possible to balance these issues according to you? les say your business mae $1 million profit per year.also, you have board members.
thank you guys
The principle is diversification.
The book, "Think & Grow Rich" talks about using "OPM" to grow your business.
A wise man, never invests in his own business.