Archive for the ‘stocks’ Category

How many stocks do you need in your portfolio to be diversified?

Wednesday, March 10th, 2010

It seems like whether you have $10,000 or $10,000,000, if you were to choose around 10 stocks (not penny stocks) in different sectors, you’d be diversified enough. Any thoughts?

According to modern porfolio theory, there is little additional reduction of risk beyond 20. There is signficant reduction in risk by adding addional securities below 10. So a good rule of thumb is somewhere between 10 and 20.

One thought is this. No only different sectors but also different geographic areas and different economies. If all of ones money is invested in U S securities, then the corrolation of investments is much greater than it would be between securities of say other regions.

Stock Adviser (Via Britney)

Tuesday, March 9th, 2010

My first album (without this song, but with lots of other good ones) is available at http://www.DFTBA.com. We’re running low on stock though, you should should go get it while you can.

In which Hank lip syncs to a song Katherine sings but he wrote the words to even though the music was written by someone else and originally sung by Britney Spears.

Lyrics:

I met you in an office down on main street
you said you could make my future much more easy
all I had to do was give you access to my money
and you’d double it
double it baby

I never really understood the things that you would say
If we amortized deposits into my IRA
We could optimize my no-load fund with proceeds from my tax refund
we’d just begun
Just begun baby

Stock advisor Stock Ad Stock adviser your my stock adviser OH stock adviser OH you’re my stock adviser baby

You you you are
you you you are
stock adviser you are my investment analyzer

I will tell you what I I
Just reali-i-ized
I will not reti-i-ire
until I’m eight fi-i-ive

(You) You lost my money
(You) This isn’t funny
(You) That’s right I trusted
(You) My stock advisor

I will tell you what I I
Just reali-i-ized
I will not reti-i-ire
until I’m eight fi-i-ive

(You) You said my future

(You) Would be secure
(You) That’s right I trusted
(You) My stock advisor

You said stocks were always gonna go up
Now I look at you and it makes me want to throw up
You said there were risks out there but I could be a millionaire
just like you
just like you baby

Market Crash! Ever since then I’ve been drinkin’
And I can’t determine what exactly I was thinkin’
Half of all my savings gone, bank accounts overdrawn
all for you
all for you baby
Stock advisor Stock Ad Stock adviser your my stock adviser OH stock adviser OH you’re my stock adviser baby

You you you are
you you you are
stock adviser you are my investment analyzer

I will tell you what I I
Just reali-i-ized
I will not reti-i-ire
until I’m eight fi-i-ive

(You) You lost my money
(You) This isn’t funny
(You) That’s right I trusted
(You) My stock advisor

I will tell you what I I
Just reali-i-ized
I will not reti-i-ire
until I’m eight fi-i-ive

(You) You said my future
(You) Would be secure
(You) That’s right I trusted
(You) My stock advisor

Stock advisor Stock Ad Stock adviser your my stock adviser OH stock adviser OH you’re my stock adviser baby

Duration : 0:3:57

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Stocks: How do stocks with dividends grow compared to stocks without?

Monday, March 8th, 2010

I’m looking for a link to such studies here, so hopefully I can save time from doing my own studies. Basically, I’m looking for edges in the market, and even if dividend stocks grow at the same rate as non-dividend stocks, and dividends are a percent, than I will have a percent plus compounding on that percent every year. May not be much, but every edge counts. Please note that only statistics and studies will help me here. Thanks!

Part of earnings "growth" is earnings from investments made from earnings. Companies have two choices when it comes to earnings, pay it out as dividends, or reinvest it in existing or new businesses to generate additional income going forward. Companies that pay higher dividends are investing less and therefore figure to be growing slower. Companies that pay lower dividends figure to be investing more, and growing faster. No free lunch here.

What happens to the stocks of a bankrupt company if the company is bought by some other company?

Saturday, March 6th, 2010

What happens to the stocks of a bankrupt company if the company is bought by some other company.

I am plaaning to buy stocks of Bearing point. The company is bankrupt now and selling its operations across the globe. What will happen to my stocks if I buy them?

Only if a company comes in and offers to buy the company as a whole will you make money through that sale. For example, IBM recently offered to buy Sun Micro for $9.40 per share – if the offer had been accepted, all shareholders would have turned in their Sun Micro shares for that amount. However, no one out there has offered to buy BearingPoint, so BearingPoint is selling off pieces of its businesses to satisfy creditors and hopes to emerge from bankruptcy after reorganization.

Whether your stocks will be worthless or go up will depend on how well BearingPoint can reorganize and run their business after emerging from bankruptcy.

Penny stocks – The anatomy of a pump and dump

Saturday, March 6th, 2010

http://www.hotstockmarket.com – The classic chart of a pump and dump in the penny stock world. Watch and learn to identify this chart, you will save thousands!

Duration : 0:6:51

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The story on cheap stocks-Is there money to be made? How much does one need to know?

Thursday, March 4th, 2010

I am thinking about buying up some cheap stocks-like in the $2-20 ea bracket. Has anyone that is "new" to stocks and the market made any money this way? How much of a time investment would it be to learn the ins and outs and keep an eye on the markets? Some say we(the us) is going into a mild recession of sorts-it seems so. Would you suggest informed investing in some cheap stocks right now?

Cheap Stocks (penny stocks) is the the place to make money in the market after about 10 years or more of trading experience. Most professional stock traders (and semi-professional) won’t ever go near them.

I spent the past thirty years investing. One year ago started to learn trading. I’ve gone through a dozen books which ‘ll need to re-read again. I listen to www.traderinterviews every week.
I watch http://www.alphatrends.net/ every day.

The hardest thing to "understand" is the relationship between profit and money management. To be successful at penny stocks you’d have to assume 70% of your trades will lose. I trade mid and large cap stocks. I’m considered "good" if 50% of my trades are good. The trick is a good win/loss ratio. Managing your losses is critical.

I’m making money……… but I need to improve my skills. There’s no way I know enough to get into stocks under $20.00.

A professional trader I listen to every day basically says the same thing;
http://streamer.thinkorswim.com:8000/shadowtrader.m3u
(Check it out between 9:15AM – 11:30AM & 1:30PM – 4:00PM, every trading day (EDT).

Pick up some books on trading. That’s a start…… This stuff is hard work…. but fun and potentially rewarding.

The story on cheap stocks-Is there money to be made? How much does one need to know?

Thursday, March 4th, 2010

I am thinking about buying up some cheap stocks-like in the $2-20 ea bracket. Has anyone that is "new" to stocks and the market made any money this way? How much of a time investment would it be to learn the ins and outs and keep an eye on the markets? Some say we(the us) is going into a mild recession of sorts-it seems so. Would you suggest informed investing in some cheap stocks right now?

Cheap Stocks (penny stocks) is the the place to make money in the market after about 10 years or more of trading experience. Most professional stock traders (and semi-professional) won’t ever go near them.

I spent the past thirty years investing. One year ago started to learn trading. I’ve gone through a dozen books which ‘ll need to re-read again. I listen to www.traderinterviews every week.
I watch http://www.alphatrends.net/ every day.

The hardest thing to "understand" is the relationship between profit and money management. To be successful at penny stocks you’d have to assume 70% of your trades will lose. I trade mid and large cap stocks. I’m considered "good" if 50% of my trades are good. The trick is a good win/loss ratio. Managing your losses is critical.

I’m making money……… but I need to improve my skills. There’s no way I know enough to get into stocks under $20.00.

A professional trader I listen to every day basically says the same thing;
http://streamer.thinkorswim.com:8000/shadowtrader.m3u
(Check it out between 9:15AM – 11:30AM & 1:30PM – 4:00PM, every trading day (EDT).

Pick up some books on trading. That’s a start…… This stuff is hard work…. but fun and potentially rewarding.

11. Stocks

Wednesday, March 3rd, 2010

Financial Markets (ECON 252)

The stock market is the information center for the corporate sector. It represents individuals’ ownership in publicly-held corporations. Although corporations have a variety of stakeholders, the shareholders of a for-profit corporation are central since the company is ultimately responsible to them. Companies offer dividends, stock repurchases and stock dividends to give profits back to shareholders or to signal information. Companies can also take on debt to raise capital, creating leverage. The Modigliani-Miller theory of a company’s leverage in its simplest form implies the leverage ratio doesn’t matter, but including bankruptcy costs and tax effects give us a positive theory of the ratio.

Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses

This course was recorded in Spring 2008.

Duration : 1:14:15

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What is the best stock screener for penny stocks?

Tuesday, March 2nd, 2010

I know what criteria I want to search for, but I’m having trouble finding a good stock screener for .PK and .OB stocks.

Its difficult to get good stock screeners for penny stocks because most penny stocks lack meaningful statistical data from which to screen. The stock screener that Yahoo offers on Yahoo Finance is pretty good if you begin your screen with *.ob or *.pk and then maybe filter by industry or current share price or something like that. I’ll be honest with you, though, I’ve done this and sorted by industry and find a very difficult time finding anything worth plunking my money down on.

What stocks have you personally invested in recently and made profits?

Sunday, February 28th, 2010

What stocks have you personally invested in recently and made profits? How much of a percentage did you earn on these stocks?

Recently I bought Praj Industries at 85 and sold it at 95 and made 12% return