Saturday, December 27, 2008
A Lower Euro ...
The damage to the U.S. consumer is the biggest factor that's going to spread economic pain across the globe. Export-centric markets, and large trade surplus nations, will undergo sharp growth adjustments over the coming quarters
As a result, here's what we can expect for the majority of 2009:
Stocks will hit lower lows ...
Emerging nations will weaken dramatically, and ...
Risk-aversion will win the battle over risk-taking.
As a result, here's what we can expect for the majority of 2009:
Stocks will hit lower lows ...
Emerging nations will weaken dramatically, and ...
Risk-aversion will win the battle over risk-taking.
Saturday, December 20, 2008
Mortgage Forgiveness Debt Relief Act of 2007
There’s been a lot of confusion about what this whole debt relief act means for homeowners facing foreclosure. Below is a link to a great article that provides clarification on how may homeowners may be able to claim special tax relief by filling out newly-revised IRS Forms.
Those who may qualify for this relief includes debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure. Take a look at the article to read how the IRS Department of the Treasury explains the mortgage workouts.
Mortgage Forgiveness Debt Relief Act of 2007
http://www.irs.gov/irs/article/0,,id=179073,00.html
Those who may qualify for this relief includes debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure. Take a look at the article to read how the IRS Department of the Treasury explains the mortgage workouts.
Mortgage Forgiveness Debt Relief Act of 2007
http://www.irs.gov/irs/article/0,,id=179073,00.html
Thursday, December 18, 2008
What Is an Eeyore Stock? (and How Can You Make Money on One?)
By Rick Pendergraft
Believe it or not, stocks have personalities.
They can be happy, sad/depressed, manic, or plodding. Happy stocks go up almost every day, regardless of market conditions. Sad or depressed stocks go down almost every day, regardless of market conditions. Manic stocks? We could call these "Jim Cramer" stocks, because they are as volatile as the CNBC commentator. They bounce wildly from day to day. And we could call plodding stocks "Eeyore" stocks. They slog along without drawing any attention, just hoping someone will notice them. For the most part, these stocks grind sideways.
Knowing the personality of a stock will determine how you want to trade it. You want to own happy stocks... short depressed stocks... buy options on the manic stocks... and sell options against the plodding ones.
Believe it or not, stocks have personalities.
They can be happy, sad/depressed, manic, or plodding. Happy stocks go up almost every day, regardless of market conditions. Sad or depressed stocks go down almost every day, regardless of market conditions. Manic stocks? We could call these "Jim Cramer" stocks, because they are as volatile as the CNBC commentator. They bounce wildly from day to day. And we could call plodding stocks "Eeyore" stocks. They slog along without drawing any attention, just hoping someone will notice them. For the most part, these stocks grind sideways.
Knowing the personality of a stock will determine how you want to trade it. You want to own happy stocks... short depressed stocks... buy options on the manic stocks... and sell options against the plodding ones.
Monday, December 15, 2008
Measure of a Company's Worth
By Andrew Gordon
Price-to-earnings ratio (P/E) is a popular measurement of a company's true worth. I've always liked companies with a P/E below 10. But nowadays, I pay little attention to this number - for two reasons, and both involve the earnings part of the ratio...
1. The economy is slipping so fast, past-performance P/Es shed little light on what is in store for the company right now. Many companies that did well 1-3 quarters ago are now finding it hard to grow earnings.
2. Forward P/Es are just as bad. They've always been based on analysts' guesses of how much they think a company will earn the following year. But now those guesses - never reliable in the first place - are lagging badly behind what is happening in the real economy. For example, analysts still expect earnings in the tech sector to rise 21 percent next year. That simply won't happen.
As an alternative, look at the price-to-book ratio (P/B). It measures a company's share price relative to its net asset value (NAV). If that number is below 1, it means you're paying less for the company than its assets are worth. And it means you're getting the business of the company (not included in the NAV) for free. A P/B of less than 1 also helps put a floor under share prices, especially for companies that are still making a profit but are getting punished by a falling market.
Buying good value is not only a good way to pick companies in a falling economy, it's the only way. And with earnings so unpredictable, P/B is a good alternative to P/E as a measure of value.
Price-to-earnings ratio (P/E) is a popular measurement of a company's true worth. I've always liked companies with a P/E below 10. But nowadays, I pay little attention to this number - for two reasons, and both involve the earnings part of the ratio...
1. The economy is slipping so fast, past-performance P/Es shed little light on what is in store for the company right now. Many companies that did well 1-3 quarters ago are now finding it hard to grow earnings.
2. Forward P/Es are just as bad. They've always been based on analysts' guesses of how much they think a company will earn the following year. But now those guesses - never reliable in the first place - are lagging badly behind what is happening in the real economy. For example, analysts still expect earnings in the tech sector to rise 21 percent next year. That simply won't happen.
As an alternative, look at the price-to-book ratio (P/B). It measures a company's share price relative to its net asset value (NAV). If that number is below 1, it means you're paying less for the company than its assets are worth. And it means you're getting the business of the company (not included in the NAV) for free. A P/B of less than 1 also helps put a floor under share prices, especially for companies that are still making a profit but are getting punished by a falling market.
Buying good value is not only a good way to pick companies in a falling economy, it's the only way. And with earnings so unpredictable, P/B is a good alternative to P/E as a measure of value.
Wednesday, December 10, 2008
An Oldie but Goodie for This Market
By Rick Pendergraft
When the market is behaving badly and all the Johnny-Come-Lately stocks are getting beaten down, the best thing you can do is go with a tried-and-true company. And there aren't many companies that are more tried-and-true than AT&T.
The biggest domestic telecom is an attractive play right now. The company may not be super-exciting, but with a long-term growth rate of 6.74 percent and return on equity of 12.16 percent, slow and steady will win the race.
AT&T has pulled back with the rest of the market, but the stock found support near 22, just as it did in '05. The best part about this pullback is that the stock is now yielding 5.6 percent and the dividend looks safe. Though many companies are cutting their dividends, it looks like T will hold steady.
With safety being a major concern right now, AT&T is as safe as they come. Sometimes it is better to bet on the tortoise than it is to bet on the hare.
When the market is behaving badly and all the Johnny-Come-Lately stocks are getting beaten down, the best thing you can do is go with a tried-and-true company. And there aren't many companies that are more tried-and-true than AT&T.
The biggest domestic telecom is an attractive play right now. The company may not be super-exciting, but with a long-term growth rate of 6.74 percent and return on equity of 12.16 percent, slow and steady will win the race.
AT&T has pulled back with the rest of the market, but the stock found support near 22, just as it did in '05. The best part about this pullback is that the stock is now yielding 5.6 percent and the dividend looks safe. Though many companies are cutting their dividends, it looks like T will hold steady.
With safety being a major concern right now, AT&T is as safe as they come. Sometimes it is better to bet on the tortoise than it is to bet on the hare.
Monday, December 8, 2008
Proof of Funds Letters!
As a Platinum Member of HSA, you are entitled to use our Investor’s Private Funds.
Cost to use the funds is 1% plus $300
The fee is paid out of closing!
Which means Nothing is paid uprfront and there are No CREDIT checks!
Now as you may already know, Banks won’t consider your offer on
Short Sales or REO’s without a “Proof of Funds” Letter.
This is the part that stops most investors dead in their tracks…until now.
Here’s a 2 minute video on how to obtain and print out as many of your Proof of Funds Letters as you need:
Click Here for 2 Minute Video!
If you are not a Platinum member yet, visit us at:
http://www.FUNDSFORSHORTSALES.COM
and find out how you can be flipping short sales and
REO homes using NO CREDIT AND NO CASH!
Make sure you sign up for the FREE 30 Day Trial!
It’s time to think big…really BIG!
Larry Potter
Home Seller Assist
847-872-4047
Saturday, December 6, 2008
A Little Speculative Play Could Pay Off Big
By Christian Hill
The market has been getting absolutely clobbered for the last year or so. Some very big names are trading at extremely low prices. Will some of them end up going out of business? Perhaps.
But that shouldn't deter you. Taking a few chances with some of your speculative portfolio money could lead you to windfall profits.
I'm not talking about buying penny stocks that rarely return anything more than a headache. I'm talking about household names that have just been beaten down for a multitude of reasons. The list I ran through a stock screener of companies with a market capitalization of over $1 billion and share prices less than $10/share returned 221 results.
I don't want you to go crazy and buy up thousands of shares of companies like these. You should still be prudent and diversify. As an example, you could invest $100 in 10 of the following 16 companies. You would have $1,000 invested, and would need only a few to pay off to get a great return.
Under $10/share (as of 11/21/08):
Time-Warner (TWX)
UBS
Dell Computers (DELL)
Yahoo (YHOO)
Alcoa (AA)
Starbucks (SBUX)
Macy's (M)
Applied Materials (AMAT)
Under $5/share (as of 11/21/08):
Citigroup (C)
Motorola (MOT)
Sprint (S)
AIG
Ford (F)
Sun MicroSystems (JAVA)
General Motors (GM)
One way not to speculate is to use the Home Seller Assist program created by
John Alexander. Not only does it teach you how to profit from short sales,
but we can make commissions by just hooking up banks with non-performing assets
to our hedge fund. On a say 10 million purchase, we would make a half percent
or $50,000. Not bad for being a simple bird dog!
The market has been getting absolutely clobbered for the last year or so. Some very big names are trading at extremely low prices. Will some of them end up going out of business? Perhaps.
But that shouldn't deter you. Taking a few chances with some of your speculative portfolio money could lead you to windfall profits.
I'm not talking about buying penny stocks that rarely return anything more than a headache. I'm talking about household names that have just been beaten down for a multitude of reasons. The list I ran through a stock screener of companies with a market capitalization of over $1 billion and share prices less than $10/share returned 221 results.
I don't want you to go crazy and buy up thousands of shares of companies like these. You should still be prudent and diversify. As an example, you could invest $100 in 10 of the following 16 companies. You would have $1,000 invested, and would need only a few to pay off to get a great return.
Under $10/share (as of 11/21/08):
Time-Warner (TWX)
UBS
Dell Computers (DELL)
Yahoo (YHOO)
Alcoa (AA)
Starbucks (SBUX)
Macy's (M)
Applied Materials (AMAT)
Under $5/share (as of 11/21/08):
Citigroup (C)
Motorola (MOT)
Sprint (S)
AIG
Ford (F)
Sun MicroSystems (JAVA)
General Motors (GM)
One way not to speculate is to use the Home Seller Assist program created by
John Alexander. Not only does it teach you how to profit from short sales,
but we can make commissions by just hooking up banks with non-performing assets
to our hedge fund. On a say 10 million purchase, we would make a half percent
or $50,000. Not bad for being a simple bird dog!
Tuesday, December 2, 2008
Flush Those Non-Performing Assets
Get Rid of Your Company Non-Performing Assets Now
...We have billions to buy your non-performing assets...
Simply send a spreadsheet of your portfolio...
...Mortgage loans, car loans...
Credit card debt, installment loans....
...Our hedgefunds are looking to buy now...
Contact Larry Potter Now At lpotter33@gmail.com
...We have billions to buy your non-performing assets...
Simply send a spreadsheet of your portfolio...
...Mortgage loans, car loans...
Credit card debt, installment loans....
...Our hedgefunds are looking to buy now...
Contact Larry Potter Now At lpotter33@gmail.com
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