Archive for May, 2006

Posted on May 31st, 2006

Recently many of the defense related technology stocks have been hitting 52 week lows while their counterparts in all other sectors have been doing quite the opposite. As such is the case, now may be a good opportunity to purchase some shares of these types of equities such as Argon ST (STST). While still a relatively new company, examining the fundamentals and promise that Argon currently shows, it is absolutely arguable to say that investing in this company may not be such a bad decision.

As I mention the fundamentals, it is very peculiar to examine the almost impeccable numbers of Argon relative to its recent lackluster performance in terms of share price growth. More than doubling both revenue and operating income from 2004 to 2005 and 2005 to 2006, there is definite potential to Argon to keep up with its competitors, and its products will be tremendously put in demand as more warlike situations become inevitable. While Argon has recently not accumulated the spectacular cash from operating performances juxtaposed to its other values, a lot of such distaste is remedied with the apparent interest in decreasing liabilities relative to increasing total assets. In addition, Argon also supports a P/E of near 24 which, compared to its rivals such as EDO Corporation, is fairly low. It is true that there are other competitors with lower P/E ratios such as Lockheed Martin, but with some slower margin growth in areas such as gross profit and operating income coupled with a share price near its 52 week high, I look for a company like Argon, who is not only newer, but has a lot of potential regarding its numbers to provide results encouraging shareholders.

Relative to more technical analysis, Argon has preformed over the last couple of years utilizing a support level of 26 and a resistance level of about 36. Now, as Argon has broken the support level this summer to about the 21 range but has only bounced there once, I see with continued strong fundamentals, Argon, especially during more hostile times inevitable in the future, to return back to its prior understood range and at the very least reach 36 dollars per share again. Usually when a stock breaks its support level, such sentiment becomes very negative for many shareholders: an understandable feeling. However, with the case of Argon and its excellent fundamentals coupled with a current but transient poor economic and political condition relative to what Argon desires, there is more potential for this company to be pushed back into the 30 price range a share rather than going below 20.

Thus, as Argon is still a fairly new company, much sentiment still remains ambiguous of where and how this company will perform in the coming years. However, with phenomenal numbers to support such a claim extended with an ironic but paradox of a technical illustration, there are more beneficial claims to owning shares of Argon juxtaposed to the recent negative sentiments.

Dennis Biray presents advice on all kinds of topics ranging from finance and investing to fitness to sports. For more information email him at dbiray@gmail.com, or to view other articles written by him visit http://www.biraynetworks.co.nr

Posted on May 31st, 2006

The world of stock broking is generally seen as the realm of financial gurus and is not usually considered something that ordinary people might do in their day to day lives. However, many people deal in risky investments on the stock market, either directly or through a stock broker. A stock broker is a person or a company who sells stocks - i.e. the capital raised by a corporation through the issuance and distribution of shares - on behalf of another person or company.

Generally speaking, there are 3 types of attitudes to investment: low-risk, medium-risk and high risk. Low-risk investors usually seek to garner better returns than they might gain from a bank or building society account. Medium-risk investors generally look for higher spending power and are more likely to place a greater proportion of their money on the stock market than low-risk investors. High-risk investors, however, are mostly interested in high total returns and therefore account for the greatest proportion of money ploughed into the stock market.

While understanding the risks of investing in the stock market is crucial if you’re thinking about dealing in stocks, it is also important to understand the products and terminology related to the stock market. Covered warrants, for instance, are the right to buy or sell an investment or a basket of investments at a given price; here, your loss is limited to your initial investments. The London Stock Exchange offers guides on Covered Warrants in order that people seeking to deal in stocks can better equip themselves with knowledge before they launch into the stock market.

CDFs are a product that will allow you to trade on equity, index, foreign exchange and commodities market movement at the price of a relatively small initial investment. This sort of trading is known as margin trading and can give investors huge leverage on investment; but it also carries high associated risks. Your loss, for example, is not limited to your initial deposit, unlike the case with Covered Warrants. Additionally, Listed CDFs allow you to control your position in a wide range of underlying assets with built-in Stop-Loss; here, investors can never lose more than the amount of their initial investment. Listed CDFs are also traded freely on exchanges rather than through issuers.

You might be interested to know that there are many stock brokers that have become famous icons in popular culture; for instance, silent film actor George Murphy once worked as a Wall Street Runner and American lifestyle-guru Martha Stewart worked as a stock broker for nearly 8 years before setting up her vast business empire. But despite the glamour that the stock market might seem to exude, it is crucial to equip yourself with knowledge if you want to invest. Many leading financial institutions offer educational advice and services on stock broking; and if you’re thinking of dealing in investments, it’s always best to see what the experts have to say before you jump in at the deep end.

Andrew Regan is an online journalist who enjoys socialising at his local rugby and cricket clubs.

Posted on May 30th, 2006

A stock market trading system is essentially a set of rules used by a stock trader to cover the whole trading process. That is, it identifies which stock to buy, how much to buy, when to buy and when to sell. A simple system might look like this:

1. Buy rising stocks in rising industrial groups on a breakout from a 5-day consolidation
2. Place a sell stop just below the consolidation area
3. Aim to loose only $200 if I am wrong
4. Move my stop loss up to break even after a gain of 5%
5. Continue to move my stop loss up after every 5% gain until I am stopped out

Someone who invests in stocks for the long term would have a totally different set of rules as would a day trader. Your rules need to match what you want to accomplish.

Stock traders generally use one of four stock trading systems:

One of the more common systems people use is no system. As strange as it may sound, not having a system is still a system. Stock traders in this category just buy on a whim with no real thought as to why they are buying the stock, no understanding of the risk profile of their position and no exit strategy. They likely react to something that they heard about in some form of media or from other people. They learn essentially nothing from each transaction and tend to continually repeat their mistakes. If you use the no system approach to trading you may want to consider finding a more complete trading system.

Another common approach to trading is using what will be referred to as a black box system. In this case, the trader is using a system, which was developed by someone else. Black box systems generate buy and sell signals but do not tell you why a specific stock was identified. They tell you what and when to buy and when to sell. The major drawback of these systems is that they do not teach you how to improve your understanding of the stock markets. Like most things, they range in quality from good to bad, with the good ones being quite expensive. If you are heading in this direction, do a lot of research before you buy.

There are many professional traders out there who offer courses to teach you the system they use to trade stocks. These traders are also selling you a stock trading system, their system! While the system they are teaching you works for them, you must remember, in many cases it was tailored to their lifestyle not yours. You need to be able to adapt their system to match your personality and risk tolerances. With a large variety of systems being taught, you should be able to identify one that comes close to how you think about the markets and as such may only need to make minor adjustments to the strategy. In these systems, you know why a specific stock is being recommended for purchase. If this taught system is well thought out this can be a valuable learning experience and potentially can start you down the road to being a better stock trader.

The final system, which will be discussed, is the self taught method. In this trading system, you may learn about stock trading from a number of sources such as introductory lectures, magazines, books, websites, TV etc. You would then take this information and over time develop your own trading style by back testing your ideas, paper trading or cautiously trading an account. By keeping good records of what you are doing and by continually upgrading your education, you will slowly improve your trading skills to the point where you should be a profitable trader.

No matter what system you ultimately use or develop to trade stocks, it will likely cost you a fair bit of time and money. Whether you spend your time and money going to training courses, reading or trading the market, becoming a good trader, like becoming good at anything, will cost you time and money.

About the Author

To learn the basics of building a stock trading system please visit http://www.knispo-guide-to-stock-trading.com/stock-market-trading-system.html Find more information on stock brokers, stock trading, stock market screeners and using technical analysis to buy and sell stocks at http://www.knispo-guide-to-stock-trading.com

You may reprint this article provided you follow all of the Ezine Reprint Policies located at http://www.ezinearticles.com/terms-of-service.html

Posted on May 30th, 2006

Introduction

This tutorial refers to financial spread betting. This means that we are talking about stock, index, future, forex, treasury, commodity and market sector spread bets. If you are looking for information about sporting spread bets then unfortunately this tutorial will be of no use to you.

Depending on your geographical location and the legal jurisdiction you fall under, spread betting may or may not be available to you. For example, gambling laws in the US may prohibit spread betting as it is classified in the same bracket as visiting a casino.

Spread betting has evolved in, and is dominated by, specialist UK firms. The concept was first introduced over 30 years ago when a bookmaker devised a way of betting on futures indices. The evolution has continued to the present day with greater competition for business creating an increase in financial products on offer and tighter spreads (the difference between the bid and the ask/ offer price). So why has spread betting taken off in the UK while it has remained relatively unheard of in other parts of the World? It is because UK tax laws class gambling (spread betting is classified as gambling, hence the name ‘bet’) as being free from capital gains tax. And as you never take physical ownership of any contacts or shares there is no stamp duty payable. This financial niche has been the major contributing factor to the growth in the spread betting market.

What is Financial Spread Betting?

In the simplest of terms, placing a spread bet means to put a ‘bet’ on a financial instrument moving higher or lower in value. Obviously the idea is to bet in the direction you think that the price will move. This method of speculation differs from the open market, as you will never physically own any security. Spread betting is becoming increasingly popular with investors and traders alike for a number of reasons. In this tutorial we will do our best to show you how spread betting works, the similarities and differences with open market trading and the associated advantages and disadvantages.

Overview

Those with any experience of the financial markets will know the process of opening and closing a position on the open market. For example, if you were to purchase (or borrow in the case of shorting) shares your broker would quote you a price. Once you complete the transaction either by phone or electronically you would then take physical ownership of the shares (however share certificates are now held in street name). This process of opening a position is the same should you wish to place a spread bet. You can open bets by telephone or use the on-line ‘trading’ platforms provided to you when you open an account. The difference is that opening a spread bet position means that you trade or invest in any of the instruments offered to you without ever taking physical ownership of them. This is because, as we have already mentioned, you are merely putting a bet on the direction that you think they will move. The fact that you never own a single share means that you forfeit any voting rights attached to the stock. It does not mean that you forfeit your right to a dividend payment however. Spread bet firms will adjust you position higher for a dividend payment (and mark it lower if a company goes ex dividend). At the time of writing it is not clear if this is an industry wide standard so it is worth checking with your chosen spread bet firm.

Shares vs. £ per Point

A fundamental difference in the way you place a spread bet as apposed to an open market order is the quantity you deal in. Rather than buying and selling no. of shares, you will be operating in GBP (£) per point. The definition of one ‘point’ depends on the spread bet firm in question but it is usually one pip in forex and one penny (UK) or one cent (US) for shares. We will go into detail in our examples section about how you can convert your position size from £/ point to the equivalent of number of shares or contract size.

Shorting

If you have ever traded during a bear market or an IPO you will know that restrictions are placed on short positions. This is either because brokers have no shares left available for shorts (am many of their clients are already short) or the exchange has prohibited shorting. There are no such restrictions when it comes to spread betting. You are free to short (place a bet on price/ value falling) as often as you like and during any market conditions.

Available Markets

Although you will not find restrictions on your shorting activity there is a strong possibility of restrictions on the number of instruments available to bet on. If you specialise in penny shares, junk bonds or less liquid stocks you will more than likely find yourself frustrated. Most spread betting firms will offer you the opportunity to bet on mainstream indices (the DJIA, S&P 500, NASDAQ 100 and FTSE for example) and their member stocks. However, lower valued stocks are likely not to be offered. For example you will find yourself able to bet on the constituents of the NASDAQ 100 but members of the NASDAQ Composite are less frequently available.

Financial Incentives

We have already mentioned the tax benefits associated with spread betting but there are also other financial incentives. Spread betting firms charge no commission, there are no ECN fess and exchange fees do not apply. Spread bet firms make their money from the spread they charge. Therefore, the larger the spread the greater your cost to trade. If we take these firms at their word then they are constantly hedged in the market against their clients ‘overall’ positions. This means that they have no vested interest in seeing you make a loss because they are not on the other side of the bet. In fact they want to be profitable as it guarantees more bets (and the cost of spread) for them. A less optimistic view is that spread bet companies are no more than bookmakers and make their profit based on the fact that the majority of traders (and gamblers) lose money. This point will be discussed more in depth later on.

Trading Platforms

In order to make the spread betting experience as much like open market trading as possible, spread bet firms have invested heavily in their online trading platforms. These programs include live streaming quotes, free live charts (including technical indicators suitable for all but the most advanced technical traders), news wires and order tickets featuring stop, limit, OCO, market and CRB (controlled risk bets that act as a guaranteed stop loss) orders. These platforms are provided at no extra cost when you open your account, however features will vary depending on your provider.

Live Prices

The live streaming quotes are not fixed in order to catch you out while betting. All quotes are based on the current market price. The only difference is the spread as the spread bet firms are free to set this themselves. As we have mentioned this is their primary source of income and you may find spreads are a little wider than you will find in the open market. However, competition for your custom has been increasing rapidly and you will find that the spreads on offer are very competitive.

Margin Requirements

Spread betting affords traders a much lower margin requirement than typical share dealing accounts. For example, SEC rules stipulate that brokers inside the US may only provide leverage of 4:1 (25% margin) on accounts over $25 000. This means that in order to command positions worth $100 000 you must have a minimum of $25 000 in your account. With spread betting firms the margin requirement is much lower. One leading spread bet firm requires you to provide 5% margin for US share bets. Using the same example a $100 000 position would only require $5 000 account balance. Of course this position would be calculated in £ per point and not dollars. The relaxed margin requirements allow traders to command much larger positions with their available account balance. In theory this means a trader can achieve a much higher return on capital but must do so by accepting much higher risk.

How Does it Work? – Examples

As we have already mentioned, spread bets are denominated in £ and points rather than number of shares. This difference may be confusing but with a simple equation you can convert the £ per point trades size to the equivalent number of shares. For this example we will be using Vodafone (UK), VOD. It is currently trading at 116.00 / 25 pence. The spread, as quoted by your spread bet firm is currently 0.25 pence, or a quarter of one point. You wish to buy the equivalent of 100 shares of VOD. You have a target of 146 pence. If you were to buy 100 shares on the open market it would cost you 116.25 multiplied by 100 = 11625 pence or £116.25. Every penny the share moves will alter the value of your position by £1 (1penny * 100 shares = £1). Therefore £1 per point will give you the equivalent of 100 shares. This is the same for all share bets, including US shares because spread bet firms denominate US shares in points and the number of pounds you bet per point move.

Gambling vs Trading

The name spread betting automatically conjures up thoughts of gambling due to the word ‘bet’. This is confirmed by the UK government who have classed any profits made in a spread betting account as being free from capital gains tax. However, no trading or investing decision ever includes thoughts of gambling. This should also be true for any one hoping to venture into spread betting. In truth we should refer to ’spread betting’ as ’spread trading’. The system has been set up to mimic open market trading as closely as possible and therefore lends itself to the same profitable strategies used in the open market. Strict risk reward and discipline are key. The same price movements, technical criteria or fundamentals exist; you are simply acting on your strategy through a different medium.

Without venturing too far into strategy building and implementation, it must be remembered that the smaller margin requirements, especially for stocks, must be incorporated into the risk factor of each trade.

Summary

For any trader looking to investigate the possibilities of spread betting there are certainly benefits and detriments to consider. Indeed it may not even be possible for many as gambling laws prohibit the use of spread betting accounts.

The potential for increased risk is one such consideration. The spread bet firms are keen to illustrate the fact that a smaller margin requirement can lead to massive return on your account balance through superior leverage. However, in truth this extra leverage may not be needed, as a successful strategy will not increase the risk placed on a trade just because it is possible. This makes the benefit of increased leverage almost obsolete unless you wish to be able to maintain your positions with a smaller account balance, thus freeing up funds for other investments.

On the other hand, any profits made through spread betting are currently classed as tax free (tax laws can change). The profit saved thanks to this lack of tax is a heavy consideration for most, although it must be noted that any losses incurred cannot be claimed back against your tax bill for the year.

There is slight resistance to the spread bet movement; those who disapprove claim that it robs the market of liquidity as more and more traders choose spread betting over open market trading. However, if spread bet firms hedge their clients’ positions in the open market, as many of them claim to do, this liquidity would find its way back into the market. Therefore it must be the case that spread bet firms do not hedge or there is no loss, or at least very little, of liquidity.

David Thorpe is a senior contributor for http://www.passion-trading.com a free educational resource centre for traders and investors. The goal of the site is to stimulate the minds of its users, enabling them to achieve a greater understanding the art of trading, thus helping them to become more profitable.

Posted on May 29th, 2006

It’s simply amazing that ten years into the digital revolution, Eastman Kodak is trying to figure out what business they are in. For decades Kodak dominated the chemically based photographic process. You shoot a roll of film, and then you physically took the roll to a developer, and made a second trip to pick up the finished prints. Their only competition in the industry was the Japanese company, Fuji. The upstart would just eat away each year at Kodak’s market, but never becoming a real threat to Kodak’s dominance.

Meanwhile from outside the industry, Polaroid back in the late 1950’s invented a camera where the chemical based development of the pictures took place inside the camera. The picture was ready in about 60 seconds. Polaroid developed a wonderful business and made a fortune for both its shareholders and its genius creator, Dr. Edwin Land.

What happened next was a business disaster, and Kodak should have learned from Polaroid’s mistakes. Dr. Land came up with a moving picture development system. They poured hundreds of millions of dollars into a chemically based system. It would allow users to take moving pictures. The movies would be developed chemically inside the camera system, the same as the still picture system then utilized.

What Polaroid not only didn’t plan for, but couldn’t even imagine was that a disruptive technology would be created from another industry that would basically destroy Polaroid’s business model. Japan would create digital photography. The first Japanese VHS and Betamax camera systems became available. The electronic based technology made so much more sense than Polaroid chemically based system. It forced Polaroid to shut down its movie system products. It also resulted in the immediate write off of hundreds of millions of dollars (equivalent to billions today) that it would never recoup.

Now I ask you, Kodak was in the business, we know that. They saw what this new technology did to Polaroid OVERNIGHT. Couldn’t they imagine that it could happen to them? The answer is apparently not. The management team at Eastman Kodak has been brain dead for at least 20 years. The management team and the Board of Directors should have been dismissed more than a decade ago for gross incompetence. They took a magnificent cash generating machine, and allowed it to turn into a boring, mundane second class company.

They simply chose to ignore what was coming, and what was coming was a TIDAL WAVE, that would sweep away Kodak’s traditional business. Kodak could have chosen to lead the digital revolution. They could have chosen to take the billions of dollars of cash generated by their traditional chemically based systems, and redeploy in other high end technology driven businesses like digital imaging in the medical industry. No, neither choice happened. The company chose instead, to DO NOTHING. Try to maintain the status quo was the order of the day.

Now Kodak is faced with a “what do we do now” decision? It is just a question of how many years it takes before the Kodak way of doing business (chemical processing) completely evaporates. There are a number of lessons to be taken from this example of a formerly world class company going belly up because of an inappropriate business model. Among them are:

• Every company must absorb the central thesis of Clayton Christensen’s two books, “The Innovator’s Dilemma”, and “The Innovator’s Solution”. Harvard professor Christensen was the individual who coined the term, disruptive technologies, or what happens when a new innovation comes in and completely blows away a company’s formerly dominant technology.

• No company has the luxury of sitting on its rear end, and counting on its cash hoard to keep it in business forever.

• Theodore Levitt of Harvard always talked about “What business are you in?” You’d better make sure that you are constantly thinking about how to obsolete your own business, because your competitors are thinking about it all the time.

• Every company should have an internal team that is separate and apart from the company. The sole function of this team would be to come up with ways to destroy the company by developing better products, or better yet technologies that would obsolete the company’s current technology. Xerox decades ago created Xerox PARC (the PARC stands for Palo Alto Research Center) in 1970. They intentionally put it in Palo Alto, California because they didn’t want to have their thinking contaminated by the atmosphere in Rochester, NY, a dead town. The same town as Kodak’s corporate headquarters by the way.

You want to talk about accomplishments; Xerox PARC came up with the mouse that we use on personal computers. They also created the graphical user interface that you use on your PC, and the basic design of the personal computer was taken from Xerox PARC by Steve Jobs. Xerox completely failed to cash in on any of these creations. The guys in Rochester were just as asleep at the switch as the guys at Kodak. There must be something about the air they breathe in Rochester that lulls them into a sense of complacency.

• Companies need to buy smaller companies who are creating the innovating technologies that will put them out of business. If they wait until the technology enters an actionable phase, it is too expensive to purchase. Examples are Yahoo and Microsoft, both of whom had an opportunity to buy Google for millions of bucks. Google now has a market cap of $150 billion, and is virtually untouchable.

Is it too late for Kodak to save itself? The answer is probably yes. Very rarely can a company in such a downward spiral find the managerial talent, and more importantly COURAGE to transform itself internally. The current management team is too interested in continuing its own benefit package and retirement benefits, to make the hard, tough, and necessary decisions to be transformative. Hopefully, other American companies, and investors can learn from the bitter story that Kodak has to teach us. Good luck.

Richard Stoyeck’s background includes being a limited partner at Bear Stearns, Senior VP at Lehman Brothers, Kuhn Loeb, Arthur Andersen, and KPMG. Educated at Pace University, NYU, and Harvard University, today he runs Rockefeller Capital Partners and StocksAtBottom.com

http://www.stocksatbottom.com

Posted on May 29th, 2006

Bonding companies generally looks for the obliged financial position. This process has been reviewed when the owner wants to take bond from the surety company for more than $100,000. The surety should also have confidence in the bonding company. The bonding company should also give guarantee to the surety prior to his approval. The contractor has to follow many steps to gain confidence from the bonding company. He should be organized and practiced in a trusted manner.

The best way to run your company is to

• Employ professionals, who assist while taking a decision for the bonding company. These employees will be much useful while involving in the process of decision making.

• Top priority should be given to the bond producers who are well versed regarding the contract.

• If the agent does not suit for your company’s needs or does not fit for your company then you can change the professional who suits for you.

• The most important person needed for bonding company is an accountant. Accountants are those who reveal the financial position of your bonding company. Choose the right most accountants for your company.

• The other important point a bonding company should look at is a reliable banker. The banker is a person who helps you in financial aspect of your company.

• Bonding companies can make use of variety of professional for development of the company like legal adviser, good controller and marketer.

Surety underwriters should meet the contractors based on their profession. These Small and medium contractors has to be properly maintained by the underwriters. The underwriter has to see the cash flow statement of the contractor. The surety should make hold that the contractor will know the terms regarding his construction company. The surety should clarify whether the contractor knows every thing about the company.

The contractor must practice self-control while dealing in Construction Company. They should feel restraints regarding profits and while taking risk beyond their factor. The underwriter will not approve the bond twice the size of any previous bond work of a new company. If underwriter is not satisfied with the contract for any reason, they will unqualified the contract.

A contractor should consider that the above factors are essential while obtaining surety credit. Surety Underwriters must use the financial documents provided and personal credit to decide the risk on a particular account. A contractor with a team of well organized professionals helps to create a great deal of confidence in a surety’s underwriters.

Ron Victor is a SEO copywriter for Surety Bond Company . He written many articles in Contractor License Bond and Mortgage Broker Bond topics. For more information visit Surety Bonds. Contact him at ron.seocopywriter@gmail.com

Posted on May 28th, 2006

After reading many of my articles over the past few months, many of you should start to understand that the financials is one sector that I absolutely endorse. My new pick, Franklin Resources Incorporated (BEN), is no different to any of this sentiment. Even with its slightly high share price, Franklin can be regarded as a tremendously safe bet for long term investors but quite a steal for short term investors as well.

Regarded as an asset management company, Franklin provides many investors with an excellent chance to be nourished in capital gains in a relatively short amount of time. Just looking at fundamentals alone should be a key cornerstone to any investor looking for an excellent long term plan. Even with such a long tenure in terms of duration, you would expect a company of such stature to begin to see an end to economies of scale. However Franklin disposes of such a conviction as over the last two years this firm has increased revenue on an annual basis by nearly 64% and has basically doubled its cash flow, with a large percentage of such statistic retaining back to the ever important operating income. Franklin also has provided a strong basis for the lauding of elite fundamentals with its current ratio (assets over liabilities). Over the last year, ratio wise, such statistic has grown from 1.32 to 3.42, almost doubling, which is an incredible attribute to carry. Not only does Franklin support the fundamentals prudent to direct business operations, but relative to its share price as well. With a healthy P/E ratio of 22 and an even lower forward ratio of near 16 (Yahoo Finance), Franklin not only beats competitors ratios such as Eaton Vance and Brookfield Asset Management, but, according to my own opinion, would be a tremendous asset for a private equity company to take hold of regardless its history and industry. Thus, such fundamentals are key to such a delicate but tenacious equity and should be regarded highly from long term investors.

While many of you may acquiesce with such sentiments regarding the fundamentals this company possesses, you may be wary to purchase shares because of the large share price. Such can be described as a valid claim in many cases, but as technical analysis will prove, Franklin utilizes a very favorable pattern to promote optimism with investors. Since its IPO days, Franklin has been on a steady and, in most cases, rapid growth stock. When economic times were strong and resilient, Franklin did outstanding as a stock most investors would consider as a long term investment. When economic times were strong and resilient, Franklin did outstanding as stock most investors would be as a long term investment. For example, over the past two years Franklin has grown in terms of share price over 60%. To put that in perspective with a competitor such as Eaton Vance, who only grew 30% during such duration and Principal Financial Group which only grew 50% absolutely looks fantastic juxtaposed to its competitors. To add some more optimism, Franklin also posted a near 200% gain over the past two years which beats out both respective competitors, and along with its respective fundamentals, Franklin absolutely deserves the respect and capital that it desires.

Thus, while purchasing shares of Franklin may not be the most lucrative short term investment with the current economic situation, as a stock many investors favor for long term growth and accumulation of capital, Franklin absolutely would be a safe a great place to earn gross sums exceeding your foreshadowing growth potential. The fundamentals and technical graphs may sometimes deceive foolish investors who may not look at the statements close enough, but in the case for Franklin, I can safely argue that this is a company you want to be invested in.

Dennis Biray presents advice on all kinds of topics ranging from finance and investing to fitness to sports. For more information email him at dbiray@gmail.com, or to view other articles written by him visit http://www.biraynetworks.co.nr

Posted on May 28th, 2006

Prior to entering a trade, preparation is very important. One area that I have found very beneficial in my stock trading career is having a action plan. This covers the psychological elements of trading which has helped me enormously. Write this valuable information down and stick it on your trading desk or on the wall above your screens to read over on a regular basis.

* Accept - all possible losses before the battle begins. If you except that sooner or later no matter how fantastic your strategy is, there will always be a draw down. This will increase your strength of mind to eliminate a loss when it does occur and to look for the next potential setup.

Center - yourself in mind, body and spirit. Your are in a trade, and it is a point away from you protective stop, a million things is going through your head, shall I get out of the trade, take away more stop, add to the position or don’t do anything. These are the most excruciating times, it is very important that you’re breathing is relaxed, neutral spine and knees below your hip line. This is to make sure you’re whole body is centered and mind clear of any noise. This will give you the opportunity to follow your plan.

Trust - your system and warrior skills. You might have a draw down in you strategy that lasts a week. Newbie traders make the mistake of not testing their system over a period of months. Moving from system to system will not get you anywhere. Back test your system then paper trade it before you even decide to trade using any money. Write the results of each trade so you can look back after 6 months to see how it performed.

Imagine - winning every trade in your mind’s eye. Before the market opens, visualize yourself entering a trade in accordance to your setup. See yourself winning every trade possible.

Only - exist in the present to control fear. Because you are trading against other human beings not the computer, it is important to control you’re emotions, most importantly the fear factor element.

Never - second-guess yourself after the battle. Win, lose or break even, after the trade, record everything that occurred in that stock position. Then move on to the next trade. Never say I should have done this or that, it is finished, battle is over.

I am a professional stock trader. I trade all of the major markets with massive success. I have a office based in London and work with a select group of traders to help them reach trading mastery. Only 10% of traders make money in the market on a consistent basis. 90% of traders lose. Do you want to discover the strategies that the big boys are using, then check out this site.

http://www.onlineinvesttrading.com

Posted on May 27th, 2006

Stock market is exciting provided you know the rules how to play. Thousands of people burn their fingers every day in the stock market. Never think that you are a smart investor if you make money when every one else is making money. A smart investor is a person who makes money no matter it is a bull or not.

Common mistakes people make when they invest in stock market,

1) They buy when every one else is buying.

Never follow people decision in market. Always do your own research. Buy when people are selling. Although this is hard, I think it is always a good strategy. Sell when other people are selling.

2) Fall in love with your stocks.

Never fall in love with your stocks, when they are god price, sell them unless you want to keep for long term capital growth. Sell them also if the stocks fall below your ‘set-point’ price, I always set that at 15% below my buying price.

3) Greed.

Never think that your stock will go up another 100% after they have gone up 50% in price.. Always set a price where you are willing to sell. I always set that at 50% above my buying price.

4) Trading your stock.

Never anticipate that your stocks will go up the next minute you buy them. Trading your stocks and hoping for fast money will make you end up with a empty bank account.

5) Listen to rumors.

Never believe your rumours. Insiders’ information is only for big company shareholders and your information is never correct if you are holding only less than 0.01% of a company stocks!

6) Borrow money to invest.

You are half dead if you borrow money from banks to invest in stocks. Bankers are always a winner no matter the market is heading north or south. If you plan to borrow money to invest in stock, just give me a call and I can offer you a lower interest as compared to your local banks!

Hope this helps for those who want to start their first investment in stock market! God bless you and of course GOOD LUCK!

Visit http://www.investing-tip.com to learn more about investment!

Posted on May 27th, 2006

Everybody has a more or less serious dream about being rich, achieve financial freedom and spend their precious time on doing something they like and not on something they a more or less forced to do. Some people have already realized their dream, some people are working on realizing it and some people keep on dreaming.

To which category do you belong? If you belong to the first category I will say: congratulations, if you belong to the second category I will wish you good luck, you are on the right way! But if you belong to the last category I will say that you have to do something about it. Why should your dream remain a dream for ever when you have an opportunity to realize it? Ironically enough everybody has an opportunity to become rich, but not many people know that. You have an opportunity to become rich as well, but how can you take advantage of this great opportunity and how can you turn it into reality?

Well, the basic of wellness is information. Right information is the key to your success. And where can you find this valuable information? The greatest information system today is the internet; it contains a universe of all kinds of information.

The difference between people in the three categories I mentioned before is that the people in the first category has already gathered the right information, the people in the second category has found the right places where to gather the right information while the people in the last category are still searching for the places that contains the right information.

So if you really want to realize your dreams don’t fall behind, start with finding a place that contains financial information and move to the second category.

If you want to learn more, you are welcome to visit my website http://www.cyberstocks.net

Finance

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