Wednesday, August 29, 2007

Learn to Invest Money in Small Cap Stocks and Make Triple Digit Profits (Part One)

by: John Kim

Everyday, there is a new EBay or Microsoft or Dell company that files for an IPO and that will make the early buyers of its stock very wealthy in several years. The trick is how to find them and invest in them safely. Sure a General Electric or Microsoft could possibly have a bump up in share price in one year of 30% or 40% with the release of a phenomenal product or service, but the chances of earning 70%, 100%, or even 300% in one year with large cap companies is quite slim. But it’s not so with small and micro cap stocks. In fact every month, there will be another micro or small cap stock that nobody has heard of that will make loads of savvy investors rich.

So the key is how do you play riskier stocks like this? There are five rules you should always follow. In Part I of this series, I’ll review rule number one.

Rule Number One: Do your homework.

When you find a micro or small cap stock that excites you, make sure you do your homework before making the decision to buy in. Always research the float of a small stock. Why is this important? For a number of reasons. Let’s consider this scenario. You research a small stock ABC that you really like. You discover that ABC only has $10MM of outstanding shares, a float of $5MM because insiders hold the other $5MM, and average daily volume for the past three months of $3.7MM. Well you could be in for a very bumpy ride given the fact that daily volume is averaging 75% of the float (total amount of shares owned by the public). This discovery alone may make you reconsider buying the stock.

Furthermore, if stock ABC has recently had its initial public offering (IPO), then you must absolutely find out when its lock-up period expires. Usually, insiders are restricted from selling off their shares for six months after an IPO. Let’s look at our hypothetical stock ABC again, assuming it is now four months after the IPO. Many times, share prices of companies start falling about two months before a lock-up period expires in anticipation of insiders selling off their shares and flooding the market with volume once they legally can do so. If stock ABC is trading relatively flat and there is no added demand right before insiders unload their stock, an overnight doubling of the stock’s float is bound to dilute the stock price, and possibly do it very rapidly. It’s simply supply and demand at work. There is now twice the supply of stock on the market without any increased demand.

However, let’s look at the flip side. Let’s consider a company XYZ that has $20MM of outstanding shares and a float of $17MM. Positive news surrounding company XYZ has steadily driven its stock price higher, right up until the point the lock-up period for insiders expires. Let’s assume, even though prices have been climbing steadily, that the insiders still decide to cash out and sell off $2.5MM of their shares immediately. Because this company’s float is so small and demand is high, release of additional shares may create a buying frenzy that will drive prices up even more rapidly.

So to summarize rule number one, always do your homework and know everything you possibly can about the stock you are buying. As I’ve demonstrated, in one situation a small float may hurt a stock’s price while in another situation, a small float may tremendously help the stock price.

I’ll review the remaining four rules in the remaining articles of this series.

About The Author

John Kim is the founder of Global Market Opportunities. He has over thirteen years of experience in finance and financial services, and has earned a BA in Neurobiology from the University of Pennsylvania, a Master in Public Affairs from the University of Texas at Austin, and an MBA with a concentration in finance from the McCombs Business School, University of Texas at Austin. To learn how to discover small and micro cap stocks that consistently and significantly beat the market indices, click http://www.globalmarket-opps.org.

© 2006 Global Market Opportunities

This article was posted on April 18, 2006


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Mauritius N America


Stephan Care

Fast Personal Loans: Forget The Past!!....Don't Be Last!!......To Get The Fast!!

by: Clarice Noelle

Today's financial marketplace is awash with personal loan providers and the volume of competition can be overwhelming.Few years back it was not so easy to plan all that especially if you did not have the necessary funds. Now it is!..A car, home, holiday to favourite destination….- who doesn't want all that!.Fast personal loans on the way. Now and then we get into situations when fast personal loans can prove to be of great help. Whether it's the creditors who are knocking at your door or a purchase that you definitely need to make tomorrow, fast personal loans are an easy way of handling sudden cash requirements. A Fast Personal Loan is usually made for the purpose of debt consolidation, vacation or the purchase of durable goods. This is the fastest way to get the money that you need. Within just a few days you can write an instant fast loan for cash or use the new checks to help you with financial needs.

The choice of fast personal loan is limited by how quickly you need to raise capital. If you can wait for a few days; there's a broad range of options. . However, all fast cash loans loosely fall into two categories: secured and unsecured. Fast Personal loans market is huge and so competitive that everyone can now avail customized personal loans.A fast personal loan is one that you can obtain quickly and easily with minimum hassles. Fast personal loans can be put to any use and there is no restriction by the lender .

However, all fast cash loans loosely fall into two categories: secured and unsecured.Your fast personal loan can also be secured or unsecured and the overall interest rate will depend on your credit history, your assets especially if you are using them for collateral and your current employment.

Fast secured loans:

A Fast Secured Loan like any secured loan enforces putting up collateral as security against the amount borrowed. For secured loans, collateral can be in the form of your home, your automobile or any securable asset, that is retained with your creditor until complete repayment. The only distinction here is that instant approval of the loan is a supplementary feature. Apart from saving time, a fast secured loan gives you many other benefits. The interest rate on your loan amount is low. The monthly installments you pay are small and the repayment duration is also long as it suits you.There are people who have had a bad credit history. Even in such cases a fast secured loan can be procured. There are a good number of finance companies that provide fast secured loans to persons with bad credit record.Another advantage of fast secured loans is that you will typically be able to borrow far more than on a secured basis.Because a fast secured loan carries far less risk for the lender, they will be willing to offer you far more attractive terms and conditions regarding the loan.

Fast Unsecured Loan:

You need not provide any collateral or guarantor while applying for the fast unsecured personal loan. No need to provide any security or guarantor for the loan. This keeps your financial affairs secret from friends and relatives.unsecured personal loans l are ideal for tenants and other non homeowners as they have no property to pledge. Eligibility criteria for personal loans is usually reliant on credit score, granted entirely on the capacity of the borrower. As no collateral is needed , the time taken for valuation is saved these loans are quicker to obtain and the loan amount is available very fast.

About The Author

Clarice Noelle

She can tell you how to look better, live better and breathe better by giving you tips to improve your finances. She writes on loans. Her ideas can help you rejuvenate your money. To Find Personal loan UK Homeowner personal loan secured personal loans visit www.ezpersonalloansuk.co.uk

This article was posted on April 18, 2006




Mauritius N America


Stephan Care

How I Made 120% In The Stock Market In 6 Weeks - Working A Day Job!

by: Alexander Chambers

Hi - let me introduce myself. My name is Alex Chambers. I'm a UK medical doctor who has an interest in the stock market. I use a system first invented by a dancer called Nicolas Darvas in the 1950's. He made $2,000,000 working part-time - whilst travelling round the world on a dancing tour.

Why am I telling you this? Because his methods still work today. And they are deceptively simple to use. I used them to snag a lovely 120% gain on TZOO (NASDAQ) in 6 weeks in 2004 - using weekly data only and working my day job.

Nicolas Darvas was one half of a dancing team in the 1950’s called Julia and Darvas. Dancing was his day (or night) job. His dance team was one of the highest paid dancing acts in the world and Nicolas Darvas was successful in almost everything he did - this includes playing championship table tennis and creating crossword puzzles.

However, the stock market was his true love and it is this that really fascinates me about the guy. He was self-taught in the market but managed against all odds to accumulate a fortune, working part-time, of just over $2,000,000 in 18 months. Nicolas Darvas started from a stake of about $25,000 and made his fortune whilst travelling round the world on various dancing commitments.

Darvas detailed his exploits and how he created his system in his classic 1963 text, "How I Made $2,000,000 in the Stock Market". It’s a great read and I highly recommended it. Many investors regard the text as a classic. In it he provides an honest and open look at his experience from his naive start to his eventual success. He lays out, in great detail, exactly what he did and how foolish some of his actions were. Then he explains how he came to find success by focusing on the price and volume action of stocks.

A key message of his strategy is as quoted as follows:

"...My only sound reason for buying a stock is that it is rising in price. If that is happening, no other reason is required. If that is not happening, no other reason is worth considering..."

Sounds simple eh? The only other investor I know of before Darvas who used such a strategy was the legendary Jesse Livermore.

Also, remember that there was no internet in the 1950s and Darvas had to rely on outdated information in the form of a newspaper and daily telegrams on selected stocks to acquire information for his trading system. His broker mailed a copy of Barrons newspaper each week which contained weekly prices of stocks together with volumes for the week.

Darvas used a top down approach to investing - he only watched stocks from futuristic industries. In the 50's these were credit card industries and the jet age. Darvas realised that the expectation of earnings was one of the greatest lures to raise stock prices higher, and together with the futuristic industry screen, these were the only fundamental factors used in his Darvas Trading System. Today all you have to do is log onto Yahoo.com, go to Finance, and all this information is free.

Once he had satisfied his requirements for fundamentals, he tracked technical data in the stock. He liked stocks that were:

1) At or near their all-time high

2) Bouncing up and down in their "Darvas Boxes" (trading ranges - see below)

3) Had "Boxes" stacked on-top of each other like a pyramid

4) Showing an increase in volume with advancing prices

5) Priced greater than $10

He used "Darvas Boxes" as a way of entering and exiting stock positions. These are in essence a definition of a high and low trading range. A buy signal was created if the price just pushed through the top of a Darvas Box and the price reached a new all-time high. He used stop losses at the low of the trading ranges to protect the downside, and raised the stop loss as new higher boxes were formed. I believe Darvas was the first to use stop loss orders in such a way, and many financial institutions today still use Darvas Boxes as trading ranges, albeit on a smaller time scale.

That's essentially it. The story is utterly remarkable and has placed Darvas in the legends of investing history. If you're interested in more details and about how I use his system, please check out my website. All information is free.

To your stock market success also, Alex Chambers

Copyright 2006 http://darvas-investing.chambers-media.com

About The Author

Alex Chambers is a UK medical doctor who likes to buy & sell profitable shares. He also likes to go out dancing and lie around in bed, as well as enjoy the company of ladies.

http://darvas-investing.chambers-media.com

This article was posted on April 18, 2006




Mauritius N America


Stephan Care

Credit Card FAQ - Credit Card Security And Authentication

by: Joseph Kenny

With the ever rising reports of credit card fraud, fraudulent use, internet phishing and identity theft, people are rightly concerned about credit card security. Fraudulent credit card use can be an annoyance at best, and seriously damage your credit at worst. It's only reasonable that people have questions about credit card security and authentication methods. Here are some of the most frequently asked questions about credit card security.

1. How does the ATM or store terminal know my PIN number?

PIN (personal identification numbers) are the most often used way to authenticate your identity when you use your credit or ATM card. When you first choose your PIN number, it is 'encrypted' - stored in a secret code of letters and symbols - and either stored in a database or on the magnetic stripe on the back of your card.

2. If my PIN number is stored in a database, doesn't that mean that bank or credit card employees have access to it?

The encryption method that's used by ATM and credit cards is called 'one-way encryption'. It makes it easy for the bank's computer to verify the PIN given the bank's key and the PIN, but nearly impossible to extract the PIN in text form from the encrypted database.

3. How does the machine 'read' my card?

The stripe on the back of your credit or ATM card is called a magnetic stripe. It's actually made up of thousands of tiny magnetic iron-based particles. The card can be 'written to' much the same way that the hard drive on your computer can be written - by means of magnetic interaction changing the charge. Written into the stripe are your account number and identifying data. When you swipe the card, that information is read and sent via modem to an 'acquirer' - a company that 'acquires' a payment guarantee from the credit card company based on the information stored on your card's magnetic stripe.

4. Isn't buying on the internet dangerous and insecure?

Honestly? Your credit card information is in less danger being transmitted over the internet than it is when you hand your card to a store clerk at the counter. The real danger to your credit card information isn't from hackers hitting online merchants, or stealing your credit card information via modem or phone lines. The real internet security dangers come from two different directions:

a. Hackers using back doors to get into the records of banks, credit card companies and data repositories.

This is the biggest danger. It's also a danger for stores and companies that have records 'online' for billing purposes. There's a great deal being done to improve security of data repositories, which are far more vulnerable than any data transmission stream.

b. The second big credit card security danger is the practice that's sometimes called 'phishing'. In this case, the credit card thieves trick you into giving them your identification and credit card data. They may do this with an email purporting to be from an official of your internet service provider or email, your credit card issuer or anyone else. They also may build sites that are identical to sites like Paypal, American Express and others for the express purpose of capturing your information so that they can use it.

5. How do I protect myself from phishers?

First, never provide your social security number or other identifying data to anyone without first verifying that they are exactly who they say they are. Experts recommend that you never use the link provided in an email to go to the site of someone you do business with. Instead, open a new browser window and type in the known address by hand

You may freely reprint this article provided that the author bio and live links are left intact.

About The Author

Joseph Kenny writes for the credit card comparison sites http://www.creditcards121.com/ and http://www.credit-cards-info.com/.

This article was posted on April 19, 2006




Mauritius N America


Stephan Care

Personal Loans - Guide

by: Micheal Reese

Nowadays we no longer have to wait until we buy or do what we want. The personal loans sector in the UK today is packed full of many different types of loans that can be used for virtually any purpose. You can, for example, take out general loans to help you do or buy stuff whenever you feel like it. Alternatively, you can take out specialised personal loans to help you out with all kinds of stuff such as DIY projects, debt consolidation or buying a new car, for example.

Personal loans work in a very simple way at the end of the day. You will approach a lender and apply to borrow the money you need. Lenders can be big financial names such as banks or building societies or they can be smaller name specialist lenders. The lender you approach will do some checks on you to check out how your finances look – both now and in the past – and then will either approve you or reject you for finance. If approved, you simply sign up to the personal loans agreement and then they hand over your cash. You can do all this online nowadays if you prefer which can speed up the process and get some great rates or you can follow a traditional route if you’d rather do that.

Lenders don’t, however, let you borrow money for free. They do, after all, have to make some return on their investment so you’ll be charged for the money you borrow. This charge will take the form of the interest rate that you are given on the money you borrow. The aim here, at the end of the day, is for you to pay back personal loans with this interest added on top. In most cases you will pay the money back in instalments to make it easier to manage. So, you’ll usually have a commitment to repay a certain sum every month for the duration of your personal loans deal. This payment will be put towards paying back the sum of money you originally borrowed together with the interest that you owe on top.

The great thing about personal loans is that they can be used for just about any kind of purpose and, if you take out a general loan, you probably won’t even be asked what you want the money for. And, these kinds of loans are available just about everywhere nowadays and are quick and easy to arrange – whether you want to borrow just a few hundred or thousands.

The big advantage to the fact that there are so many personal loans choices out there for you is that this keeps loan rates low at the moment so now really is a good time to apply for this kind of finance. This also means that you should shop around as much as you can to find the lowest rates – this may well be best done online as the Internet has loads of great personal loans deals that could save you some serious cash.

About The Author

Micheal Reece is working at 1track personal loans http://www.1trackpersonalloans.co.uk and has been in the Personal Loans http://www.bridgehouse-personal-loans.co.uk industry for over 10 yrs.

This article was posted on April 19, 2006



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Mauritius N America


Stephan Care

Life Insurance - A Beginner’s Guide

by: Micheal Reese

When it comes to life insurance we have two primary types of policy to choose from – term life insurance or whole of life insurance. Many people find it hard to come to a decision about which type of policy to take out but the decision you have to make really isn’t that complex and both will offer good levels of cover for the majority of people. Let’s take a closer look at your options.

The most popular type of life insurance is, without a doubt, term life insurance. This kind of policy will be set out to last for a specified ‘term’ – i.e. it will last for a set time period. So, you can take out a life insurance term policy for 25 years, as an example. During this 25 year period you will make your policy payments and you’ll have the protection of the policy if you die. So, your next of kin can claim against the policy in the event of your death. But, at the end of the 25 years your policy will be finished and you’ll get no further protection from it.

Many people opt to take out a term life insurance policy because they know that they will no longer have a great need for insurance at the end of the specific term. For many people this kind of policy will end at around the time that they retire so their mortgage will probably be repaid, their families will be grown and they won’t need to make provision for their family to have such a large lump sum or income if they die. So, a term policy can suit them very well indeed, giving them cover during the years when they really need it and finishing when they don’t.

A whole of life policy, on the other hand, will suit those of us who want protection for the rest of our days. This kind of life insurance is designed to last until you die – so you’ll be covered in the short, medium and long term. A lot of people who opt for this kind of life insurance do so because it can be set up to help with issues such as inheritance planning, although many people simply prefer to get cover that is guaranteed to make a payment at some point so that they feel that they are getting some return on their policy payments. There is a guarantee of payment with a whole of life policy that isn’t there with a term policy. Once your term policy is finished that really is it – you are only guaranteed a payment if you do die while the policy is in force.

Many people make their choice here based on their budget. The fact that a term life insurance policy may not ever make a payment (i.e. the fact that you will probably survive your policy) means that insurers can offer lower costs. A whole of life policy – with its guaranteed payment at some point – is consequently more expensive. The choice you make here will be a personal one and may well depend on your financial circumstances. The vital thing to remember is that some form of life insurance cover is vital for most of us – especially if we have a family to consider and we can consequently get great protection from either kind of policy at the end of the day.

About The Author

Micheal Reese has worked in the life insurance http://www.1tracklifeinsurance.co.uk industry and specialises in cheap life insurance policy http://www.cheap-life-insurance-policy.co.uk.

This article was posted on April 19, 2006




Mauritius N America


Stephan Care

Tuesday, August 28, 2007

Cash Flow Control, Interest Only Payment Loans

by: John R. Blakefield

Another option for a mortgage? You shouldn't be so surprised. Interest only payment mortgages can get you into a home.

There are so many options for people to buy a home today. The financing continues to get even more creative as lenders continue to help as many people as possible get into a new home. This can be great from a quick glance, but you must be careful not to get into a situation that the mortgage is too creative for you to pay every month. Many people go into a deal thinking they are doing the right thing for their situation, but only falter on payments because it is just too much money and the equity is being stripped from the home!

Regarding the normal financing, you have the options of adjustable rate mortgages, which have an interest rate that changes the monthly payment every few years depending on the terms of the mortgage, and fixed rate mortgages that have a steady interest rate throughout the entire length of the life of the loan, and of course the more risky balloon mortgage which allows you to pay a low monthly payment, if one at all, and then pay off the debt at the end of the life of the loan in one large lump sum.

The creativity comes in by adjoining two types of mortgages. For example, you may have a split mortgage where for the first 5 years of a loan you have a straight fixed rate mortgage, but then after those 5 years, you move into a fluctuating, less stable adjustable rate mortgage. Lenders will mix and match, combine and separate to negotiate all terms regarding a mortgage.

The only way to be certain that a certain mortgage is right for you is to calculate the monthly payments and total expenses, including all fees and the possibility of a prepayment penalty. And watch out for those prepayment penalties! They can only charge them if you agree to them, so be sure to read all fine print carefully to see how much a prepayment penalty really is. If you catch it and it was not discussed, be sure to have a talk with your lender to get the terms corrected.

Interest only payments allow you to pay only the interest on your mortgage for the first few months, usually keeping the monthly payment very low. This can allow you to control your cash flow in the beginning, so that buying a home isn't such a huge shock to your finances.

(You should, however, be prepared to buy a home before you do it so hopefully it won't be a huge shock to your finances.)

This additional cash flow can be used for other things such as paying off consumer debt or addressing unforeseen expenses such as medical bills or a pay cut.

During the interest only payments, which are lower than what would be your normal monthly payment, you are not paying anything towards the principal- the entire loan amount previously agreed to by you and the lender. However, you can make a principal payment in which your next interest only payment would be based on a lower principal amount.

Now, the interest rate can still be adjustable or fixed depending on the terms. I am sure you will find lenders that will be creative with this as well.

Interest only payment mortgages are not good for those who wish to build the equity quickly in their home. This is for people who need to control their cash flow or have other reasons as to why they should not pay any principal payments. However, it is still an option and maybe it is just what you are looking for. Always be clear on the terms before you agree to any financing.

About The Author

John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage/.

This article was posted on April 19, 2006



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