Tag Archives: Stock

by | December 27, 2013 · 1:52 pm

Prepare for next year

It was not so hard to earn money in 2013 if you invested in U.S stocks. 9 out of 10 stocks in the S&P 500 was in positive territory. But everything associated with gold gave you losses. Did you sell the gold related investments in 2013 and what are you gonna do with it next year?

The gold is down about 30% in 2013, so owning a stake in a gold mine was not the smart way to make money this year. The worst U.S large Cap stocks was Newmont Mining. The second largest gold producer is down about 50%, and 30% of its corporate office staff is eliminated.

They are not only building cars in China. They are building factories to meet the demand for cars because the sales of automobiles are surging in China. The main partner of Ford Motor is Chongqing Changan Automobile Co. (000625). Changan`s earnings per share is up 400% and are the best International stock!

To be an investor is like being a school student. You have to do your homework every day. I don`t say you have to follow every stock you have in your portfolio with every tick of intraday trading.

What I prefer is to follow the stocks and the stock market for important changes over time. Sometimes it is important to evaluate and update the portfolio, like now, in the year end.

You can save money and take advantage of last minute tax savings in preparation of your portfolio. If you do all the things alone, you may do some work. You have to prepare your portfolio for the next year. I have created a few things to consider:

  1. Tax planning. Take a good look at your portfolio and check your winners and losers. You can offset capital gains with capital losses. If you have lost everything in one stock, you can sell it before the end of the year to offset any pending gains you may have on other stocks. Check the IRS rules and talk with a tax adviser before you take any tax decisions.

  1. Goals. What is your goals for 2014? What have happened so far this year? What do you think will happen next year? What is your plan for next year? Do you want to spend more money in the financial markets? How will your economy be next year? marriage or divorce? Some kids? What about you family situation? Some dramatic changes in 2013, or next year? You get the idea. Create a trading plan for 2014.

  2. The right balance. Do you have all you eggs in one bag? What is your mix today. Do you only go for stocks? Do you have bonds? Currency? Do you have the right mix in your portfolio or do you need some adjustments?

2013 have been a great year in the stock market. Many investors have done it better than the market in 2013. Is this going to continue next year? Try to follow the market and read the news and do as best as you can to understand them. Don`t always listen to everything people say on TV, and think by yourself. Be smart and look for great opportunities and be a winner in the market next year!

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | December 13, 2013 · 2:37 pm

M&A (merger and acquisition)

As I wrote about earlier, you must look for small cap stocks in the Russell 2000 now. It is risky, but high risk means high gain, and you have to spend money you can afford to lose. So why small cap stocks?

You see, America is for sale and that is for the highest bidder. What I am talking about is really good companies out there. The companies that no one is talking about. The cheap one. The innovative one.

There is a lot of money out there waiting for good investments. Many of the great companies are searching for the right small cap stocks. Why? They simply want to thrive by purchasing growth.

Take a look at Google. For example, they expanded and bought Youtube.com. Everyone is afraid of Google. They are a great example of a model for what a media company needs to be in order to be competitive in the future.

Cisco was smart enough to buy companies with great talents instead of developing them themselves. Cisco have done this over 140 times since 1993. They are infusing new ideas and new ways of thinking by doing it like this. It makes them strong and competitive. Google seems to do exactly the same thing and that makes them stay ahead of a rapidly changing competitive landscape on internet.

The really biggest day in e-commerce in history is Cyber Monday. $10 billion was spent from about 70 million online shoppers. That`s an increase of 18%. 30% of the purchases came from a mobile device. 80% of those came from an Iphone or iPad. unbelievable!

And here is the catch: Social sites generated only around 1% of the e-commerce sales on that day. An increase of only 2%. So, E-commerce is the real big thing. It`s business. 17% of the sales came from Email. That`s pretty nice.

Facebook, Twitter, Instagram and Pinterest are popular sites and people still think that social media is a marketing must. The numbers are falling and the money is not in here. Social media is better for branding, networking and community building, but direct sales is better other ways than social media. Will we see any M&A in this sector in 2014? Are those big ones looking for small caps?

This is a tremendous investment opportunity and you as an aggressive investor need to play on it. But how? I expect next year to be a takeover boom! You have probably seen it before and know that nothing jolts a stock higher than an unsolicited takeover offer. The stock prices skyrocket on rumors like that.

Who say no to a single-day return of 50% or more? I have many new and exciting companies on the radar, but I can`t tell you what stocks it is. It is a lot of research behind the work of finding the best stocks, so this is what I get paid for.

But I can tell what sectors you should look for. It is technology and healthcare. I expect a lot of action in those sectors next year. I really look forward to 2014. It`s gonna be a funny year. So, I am still bullish!

News today: PPI m/m at 8.30am.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | December 4, 2013 · 1:49 pm

Dividend Yield

Some investors are looking for technology stocks with high growth. You can look for them in stock screens and search for dividend paying characteristics. If you are looking for dividend income and act like a value investor, then you can look for Dividend Yield.

This Dividend Yield number tells you what percentage return for example Coca Cola pays out to shareholders. Older companies like Coca Cola will normally pay out higher percentage than younger companies like for example Twitter.

You calculate like this:

Dividend Yield = annual dividend per share / stock’s price per share

Let`s say a stock trades at $100, and the dividend Yield is 3%. Annual dividend is $3.

($3/$100 = 0,03).

To be in the market and invest money in different markets is like a college class that never ends. As an investor you need to monitor existing stocks and always be on the look for new and great opportunities.

Now it is a good time to check your stock portfolio before the year ends. I will write about that later. News today: ADP non-farm employment change, and trade balance at 8:15am, ISM Non-Manufactoring PMI, and New home sales at 10.00am, Crude Oil inventories at 10.30am.

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by | November 15, 2013 · 1:14 pm

Earnings per share (EPS) 1

Don`t look at only the price of the stock. That is not enough. A stock that is priced at $30 can be cheaper than a stock priced at $10. Some people tend to think that a stock price reflects the value relative to other stocks, but that is terribly wrong!

The price of the shares is completely meaningless to investors that is doing fundamental analysis. The market cap is found by multiplying the per-share price times the total number of outstanding shares. This number gives you the total value of the company or stated another way, what it would cost to buy the whole company on the open market.

The per-share price is changing all the time, and that is why we aren`t so concerned about it. All the companies have a different number of outstanding shares, and that doesn`t tell us what the value of the company is. What we are looking for are the market capitalization (market cap).

You can find the market cap by multiplying the per-share price times the total number of outstanding shares which means what investors need to pay for the whole company on the open market.

Let`s say the stock price is $5. Outstanding shares: 10 million. The market cap is $5 x 10 000 000 = 50 000 000. But, what if Company B have a stock price of $2 and outstanding shares is 100 000 000? Market cap is $200 000 000. So, what company do you want`t own? Stock price $5 or $2?

Do not only look at the per-share prices because it doesn`t tell much. Look for a stock compared to another stock that is similar in the same business. Market cap gives you a better picture of the companys value, and the market put the stocks into three categories:

Small Cap under $1 billion

Mid Cap $1 – $10 billion

Large Cap $10 billion+

The most important thing is to understand the comparing companies of similar size in the same business when you are doing your evaluation. Market Cap is better than evaluating per-share price of a stock. How do you find earnings per-share? I will write more about that next week.

News today: Empire State Manufacturing Index & Import Prices at 8:30am, Capacity Utilization Rate & Industrial Production at 9:15am.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | October 24, 2013 · 1:54 pm

Risk and reward

The U.S market fell yesterday and it was all red. Today the Asian market i up. Nikkei is up from a two week low. Gold is trading at $1334,50. Netflix is down -15% from it`s all time high. Are you willing to buy stocks in Netflix now? Or blue chips? What about risky small-cap stocks? Bonds?

Investing carries a certain amount of risk, but how much risk are you willing to take? What are you willing to pay for a stock? How much can you afford to lose? You have to look for risk and reward.

When you invest, you can get some pain, but you can also get some gain. That`s why you have to weigh the reward against the risk when you are investing. Understanding risk and reward is the key in investing in stocks and other financial papers.

You have all heard the words: “the higher the risk, the higher the potential return”. It`s very important to understand you own comfort level when you are investing. Then you will clearly understand the relationship between risk and reward.

Bank certificates of deposit (CDs) with a fedrally insured bank are also very secure. But the price for this safety is a very very low return on you investment. You can end up earning nothing when you calculate taxes on your gain and inflation.

To invest you need to think about the amount you are willing to put into the market. Before you invest, you must decide when you are willing to sell. How much rate of return or growth do you accept? And don`t forget fees, inflation and tax and the value of the dollar.

All those thing goes in different directions. That`s why many investors like to put different eggs in different baskets. Investors are diversifying their portfolios, and invest in different papers with various degree of risk. The goal is to take profit from a rising market, and to protect themself against dramatic losses in a down market.

New today: Unemployment Claims at 8:30am, Flash Manufacturing PMI at 9:00am, New Home Sales at 10:00am.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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