Stock Market Books

A REAL ESTATE STOCK PLAN

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Getting out of the bleachers and into the game!

This report is going to explain or attempt to give the stock market investors a basic one-on-one interview with a real estate portfolio manager who has consistently made a profit on 100% of the investment products that were actively chosen and managed. Never a loss, always tax advantaged and sheltered.

This report will not contain any high-tech, gobbly-gook, stock market charts, graphs, trends, analyst picks, projections, company reports or insider tips. In real estate, you personally have the power to develop and create all of those things yourself and I for the life of me could never trust other people’s second hand opinions or publicly disseminated information to get the jump on the herd.

Now if I were a company officer, or majority voting shareowner, or a paid agent of those individuals, I might think differently, for the simple fact that I am getting the jump and I can make some dinero if I know something the majority does not. Overall, people are told to build companies so they can sell it to the public through offering pieces of their company to the public in the form of stock. So I know from the very beginning that the owners of companies are selling me a piece of paper which they say is worth a certain amount of whatever value a dollar is worth at that time.

Let me see if I understand this. I transfer my hard-earned cash and I pay a fee and/or commission to do this, and you give me a fancy certificate and a promise that this represents a solid investment decision. No way!

I’ve seen people lose their life savings counting on other people’s paper promises. I am not comfortable sitting on the sidelines rooting for everyone else to make money for me. Who are we kidding? I would be last in line and get paid after all of them. And just how are they getting paid? Well, I see it as this: They get me to buy more fancy certificate paper, backed by more promises, while at the same time encouraging me to hold onto the previous certificates. All the while, the value in those is slowly liquidated to pay salaries and expenses of the inside corporate raiders of my blind faith and trust.

Boy, am I a skeptic. Let me shift gears here and take everything back I just said because often what I just said is dead wrong and two words will prove me wrong quite often. Those two words are “Blue Chips.” Many companies do provide value, dividends and growth opportunities. Who am I to talk bad about the stock market? Don’t get me wrong. It’s an awesome institution and a complex and intricate financial function of the world’s economy. Everyone feels the effects of this juggernaut and many people are afraid to upset the world powers by saying anything that will get the ire up of the kings of Wall Street, so they just clam up and slump into obscurity.

To heck with that attitude! Take control people. Actively manage your own hard assets and get off your *#!, and quit rooting for the other guys out there to make money for you. I’m not saying if you’re 60, 70 or 80 years old, that I expect you to go out and start swinging hammers and saws. That’s not necessary.

Use your brain at any age to control directly the events that are going to add to the bottom line. With real estate, you can use relatively simple math and your two eyes to see the whole picture. No charts, graphs, prospectuses, opinions or guesstimates. You invest less than ten miles from home in your own neighborhoods so you know all about market activity and current local economic conditions. You know prices and demand for your investment, as the local classified section of your newspaper is an instant picture of your markets fundamental outlook. Your competition advertises its position and you react immediately.

I’ll tell you this: I don’t stay up late reading small print, trying to find all the loopholes in company reports and federally mandated quarterly and annual filing and disclosure documents. That is a total waste of my time because in the end, nobody makes any promises to anyone. You in the end invest at your own risk; that is made clear.

Even when they catch the bad guys that use fraudulent accounting procedures and cook the books and shuffle assets and count them twice or commit some other white-collar crime, the fact remains that the money is gone and your out of luck.

Well folks, I’ve never been out of luck and I never will because I decide what is a good deal. I buy my houses below market price, add value to them in a hundred different ways and capitalize on those assets in many different ways. It’s hands-on, eyes and ears open, active, direct control. There’s no guessing, no hoping, no cheering, voting or scanning for loopholes in incomprehensible legalese boilerplate.

I circulate, select and direct. I negotiate and use my own strategies and tactics. I rehab valuable hard assets and use them to generate income, build equity, access tax-free cash, shelter other income from taxation and lower my tax brackets. Almost everything in my real estate business is deductible, so my gains are my gains. I can defer paying gains with 1031 exchanges and a host of other legal and ethical, easily understood ways to secure my future profit picture. You don’t need a license to do this, just a pulse.

If you feel real estate investing is more difficult than stock market investing, I believe you are wrong. It’s much safer to the average individual who doesn’t have all kinds of crazy options, puts and calls, true insider tip-offs or hours and hours of time to hopefully understand more than the next guy in order to sell your stock to the next person for more than you paid for it. Unless you’re accredited, you should be institutionalized.

With real estate, if I buy my investment property with owner occupied, 10% down financing, I am using 90% loan-to-value leverage. I don’t suggest you do that in the stock market. If you make a little timing error, your investment career could be over.

So to put it in general terms, $1,000 controls $10,000 and $10,000 controls $100,000. Now if I buy a house that costs $100,000 and I put $10,000 down to control it and the market appreciates 10% the first year, I get my $10,000 back and keep the asset. It becomes a perpetual money machine and I don’t have any of my own money at risk.

There are closing costs but they are deductible as expenses. Here is another point. My rich Uncle Sam wants me to provide housing for his citizens to live in, so he let’s me take depreciation on my investments to encourage me to rent them out to others. This explains a tax benefit in real estate that helps us common people who actively participate in the management of the investment who are not making over $150,000 a year in adjusted gross income.

For example, if you pay $100,000 for a house, Uncle Sam says that this house will slowly disintegrate to dust in 27.5 years and for non-residential real property, 39 years. The land will always remain so they say 20% of the purchase price was land. So you only depreciate the house’s value. In this case, that would be $80,000 and $80,000 divided by 27.5 years = $2909.09 per year for 27.5 years. That benefit can get you in lower tax brackets by reducing your taxable income on other income, such as your regular job or other investments.

Thus, you save today’s dollars, and when you sell the house years later Uncle Sam recaptures that amount but it is later on, after your investment has increased in value and the dollar hasn’t. Believe me, it helps you a lot more than it ever hurts. A good C.P.A. will use it to make you money now. Note: A 1031 tax deferred exchange can delay repayment of capital gains indefinitely.

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Here’s how to play a decent game of real estate investment! Buy something at 20% below its market value. This is not hard to do. It may take you, as a new investor, 3-6 months to find it.

You’re learning curve will let you acquire under market value property at faster and faster rates from months to weeks to days. It takes practice. Use the book, Magic Bullets, to move fast.

So you find a $100,000 property and you put down 20% (investor rate) as the down payment plus $2,500 in closing costs. The bank loans you $80,000 to buy it. If you’re getting older, then pay someone to clean it and paint it. Get the bank to reappraise it for its true value of $120,000 or more. Take out an equity line and get all your money back, tax-free. Now let the tenants pay it off for you while it goes up in value and throws off positive cash flow, and shelters itself from taxation. This is not hard to do – www.magicbullets.com will walk you through it.

I personally believe the hardest thing to do is to hold on to the real estate investments that you do acquire. What people tend to do is get tired or itchy and they sell the goose. When you sell, you do get a lump sum of cash but now you have to go out and find more. This can become like a revolving door. You have to keep going in and out of the market buying and selling again and again. Sound familiar?

If you just buy and don’t sell your investments they will grow in value through inflation, appreciation and equity accrual/mortgage reduction. Eventually, you will own them free and clear, and with 4 or 5 houses throwing off $1,000 or more each month, you will have approximately $60,000 a year in retirement income. I know my parents could live on that…how about you?

Then as you get older, sell one, preferably the one you have spent two of the last five years in as your primary residence. The reason for this is because Uncle Sam says that you don’t have to pay any capital gains on the sale of your primary residence until you have exceeded $500,000 in sheltered gains.

For example, lets say you just sell one home. You’re in your early 60’s and you have had the house for 25 years. Lets assume you paid $100,000 for it and it has appreciated at a moderate rate of 5% each year on average. For those 25 years, its present value now would be $338,635.31. That is a capital gain of $238,635.31. You pay zero, nothing, in taxes on your profit, using your exemption up to a $500,000 lifetime cap for married couples or $250,000 for single folks.

The entire $338,635.31 is yours to do with whatever you please. It is 25 years later, so your buying power as a result of 3% inflation has eroded your buying power but think about all the people who have no real estate to fall back on. Ouch! That’s no way to live.

No surprises here. You can actively manage your own properties for years and if you do it right and use my methods of acquiring tenants, you just might get lucky and get a lifetime tenant. I’m not going to let you say that it’s impossible because I’m going to agree with you that it’s probably not going to happen.

Here’s what the statistics say (no charts or graphs). People move on average every 5 years so you should reasonably expect to have at least 5 different sets of tenants.

That’s fine because every 5 years, you can update your properties appearance and raise the rent to match current market conditions. Long-term tenants always seem to keep you from achieving a true market rent if they stay for 10-15 years, and they do stay. I see it all the time and I still get market rent…you’ll see!

The figure that says people on average move every 5 years applies to you too. If you get itchy to move or sell, then do the following: Don’t sell anything! Just use equity lines to acquire your next, nicer house and don’t move further than 10 miles away from your investments. Even the pros blow it on this one.

If you pay attention to what I just said, you should retire comfortably, with more money than the average person ever needs. You have a choice.

I will use a true story to illustrate my point. My wife’s uncle bought 2 ½ acres, in what his buddies from his telephone company job used to say was no man’s land. He bought it for $15,000 in 1972. He financed his 3 bed/2.5 bath/2 car garage, ranch style, block home construction for an additional $32,000, for a total of $47,000.

Well, he sold that house in 2001 for $365,000. He paid no commission (I showed him how) and he paid no capital gains. That’s a real life story of a $318,000 tax-free gain or profit on a $47,000 investment. He did hold it for 29 years but he has no money worries and lives a life of ease and comfort.
So my point: Collect a few houses and don’t sell them. That is the Magic Bullet of this story!

I’ll admit to you that I’ve shorted the stock market a few times and never lost on stocks either, but there are way to many closed-door conversations that I’m not allowed to listen to. I have a feeling that there is a reason for that. Can you guess what it is?

I learn more, make more, have more, do more and help more by actively managing my investment from less than ten miles away. I know all the players and there are no closed doors. My business associates are true friends, who help each other make money by providing excellent value for our customer’s dollar, and that customer is my tenant.

My rentals are superior to my competition, to the degree that my wonderful tenants remain tenants for life, or they buy it from me if I decide to sell.

Rental real estate is a rewarding investment. It is not just the money; it’s the value that you personally deliver.

I choose to live with purpose, passion and desire. I can’t do that in the stock market. How can I help you personally by investing in stocks?

Author Biography: Dan Auito is a dual-licensed real estate agent and appraisal assistant. In addition to being a 20-year veteran of the United States Coast Guard, Dan has also founded a non-profit drug prevention corporation, a real estate consulting group and is the author of “Magic Bullets in Real Estate.” This 300-page power-packed book comes with a website that further supports its readers.

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Investing in energy ventures has traditionally been associated as having greater potential returns, with corresponding risks, than any other type of investment. The high-risk/high-potential of certain categories of these ventures (commonly referred to as “wildcats”) drove investment for many years. There are many such opportunities available today. However, the Fund’s oil and gas investment strategy is to focus on projects where risk dollars are substantially moderated and returns of 20% to 40% are the expected norm.

Risk and at-risk dollars are moderated by investing in projects fitting three categories. In order of decreasing risk, these are:

1. Possible Reserves: Known, productive zones within a field where additional reserves may be separated from proved reserves by faulting. These types of projects are of significant interest among independent energy companies and investors because geological data from existing wells is available to aid in developing the geological hypothesis. Both risk and at-risk dollars are moderated because the existing geological evidence dramatically increases the probability of success.

2. Probable Reserves: These type of projects involve re-entering abandoned oil and natural gas wells to test potentially productive natural gas zones bypassed when natural gas prices were under $0.75 per thousand cubic feet (MCF). Natural gas is now over $5.00 per MCF and is expected to increase in value as the push for cleaner burning, non-imported fuels grows stronger. Risk is moderated because geological data from the original well is available to develop the geological hypothesis, thus increasing the likelihood for a successful new well.

3. Proven Reserves: The most actively pursued subcategory today. After a discovery well locates hydrocarbons in commercial quantities, a multi-well drilling program to exploit newly discovered reserves commences. The exciting part of these projects is that in many cases, the major oil companies have already discovered the field, yet it fails to meet their minimum size criteria (For example: Large oil companies usually will not even consider developing a field unless it is at least a 50 to 500 well project. A 3 to 4 well project is not worth their time. Yet, to a smaller independent and their private individual investors, a 3 to 4 well project can be quite lucrative. Smaller independents, if they have the capital, can pick up the “nuggets” that the major oil companies leave behind.

In order of decreasing risk, both risk and at-risk dollars are moderated by investing in:

1. A known productive zone in a field where reserves may be separated from proved reserves via faulting.

2. Re-entering abandoned oil & gas wells to test for productive natural gas zones.

3. A multi-well drilling program to exploit proven reserves.

Article was written by Mouser57 Online Stock Trading

Ever since man invented the computer, it has become an invaluable tool. As more people learn to use the computer and take advantage of its capabilities, it has become a part of our everyday lives. And computer use is growing each year.

With computers in homes, offices and libraries across the country, the majority of people have access to this technology. Many people are turning to different types of computer software to fulfill a variety of needs with regard to finances, household organization and different business ventures. Software is tailored to suite the clientele and make their lives easier.

Today, a great number of people access their banking information online. From one single account, people can enroll other accounts that include utilities and bills for credit cards. You can even schedule payments for insurance premiums and mortgage payments to ensure they are made on time. The financial world has advanced because of computers to improve transactions for consumers so they are safer and more convenient.

As banking accounts became accessible online, so did stock market investments. The shift from person to person trading has been made to a more sophisticated type of online stock trading. Because of this, companies put up their own websites to encourage their clients to perform the majority of their transactions online. Usually these transactions are done by using stock market software.

To gain access to this information, investors may subscribe for free or pay a stated amount for an account through the trading company’s website. When an investor does this, he needs to download and install the particular stock market software used by the company he works with. This is done so the trading company and the subscriber will be using the same platform.

A wide variety of stock market software is available on the market today. This ranges from simple to extremely sophisticated. The majority of these applications offer similar basic features of a graphical user interface (GUI) that help a user to perform one or more said tasks. This type of stock market software is typically intended for use on a large scale. There are also types of software that cater to personal use. For example, investors can install and use personal financial managers on their computers and digital assistants.

Investors can use the software of their preference to manage their accounts and check on the current value of their stocks. This helps online investors because the GUI helps them to quickly and easily perform routine investment tasks.

Trading companies separately purchase stock market software to use for transactions with their clients. Usually these trading companies have an agreement with the software developer so they can use their product at a lower cost. Other companies hire a software developer to design a customized package tailored to their unique needs.

Innovative stock market software offers investors a valuable tool to maximize the potential of their investments. Unlike days gone by, investors have immediate access to any information they want prior to making market investments.

When you’re evaluating Small cap stocks with the view to making a purchase for your portfolio, that calculator is going to be a very big help in enabling you to make an informed choice. Take a cue from the serious investors, who analyze the figures and ratios related to the stocks.

Price to Earnings Ratio (P/E)

The P/E is a number that looks at the relationship between the company’s earnings and the price of its stocks. Of all the ratios used for fundamental stocks analysis, this is the most popular. The P/E ratio is calculated by dividing the share price over the company’s EPS, or Earnings Per Share. This will give you an idea of how much the market is willing to pay for each share, and whether a company’s Small cap stocks are high or low relative to its earnings.

A high figure may indicate that there are high hopes for this company’s stocks in the market. On the other hand, it may also be a sign that the company’s stock is overpriced. A low figure could mean that the market doesn’t trust the stock, or that it may be a diamond in the rough and still undiscovered.

Earnings Per Share (EPS)

Earnings per share is computed as the company’s net earnings over its outstanding shares. This figure is helpful in comparing a company’s Small cap stocks with another, in the same industry. Comparing the EPS of a telecomm company with a startup healthcare provider would be like comparing apples to grapes. Don’t take the EPS alone. To be able to make a more informed choice, use this figure to compute for other ratios.

Projected Earnings Growth (PEG)

This figure is computed by dividing the price to earnings ratio over the projected earnings growth. This number helps you estimate the company’s potential for future growth. The higher the number, the more you are willing to pay for each share of future earnings growth. A low P/E with a low projected earnings growth could be a sign that this is an expensive investment, while a high P/E with high projected earning growth indicates that the stock may be a good investment.

Price to Sales Ratio (P/S)

Some companies’ startups ‘may be too young to have any earnings, but may be worthy of consideration. The price to sales ratio allows you to determine a Small cap stock’s potential through the stock price relative to the company’s sales. The price to sales ratio is computed by taking the stock price and dividing it by the sales price per share. The lower the P/S, the better the value of the stock.

Price to Book Ratio (P/B)

Another indication of the potential of Small cap stocks is the price to book ratio. This is computed by taking the price per share and dividing it by the book value per share. The lower the price to book ratio, the better the value of the Small cap stocks would be. This ratio tells you how much the market considers the book value of the company.

Dividend Payout Ratio (DPR)

This is computed by taking the dividends per share and dividing it by the earnings per share. Newer and smaller companies would tend to have a lower dividend or none at all, as they would retain their profit to fund their growth. Bigger and more mature companies tend to pay more and bigger dividends.

Dividend Yield (DY)

The dividend yield is a number that indicates what percentage return a company pays out to its stockholders through dividends. Usually, older and more stable companies will reflect a higher percentage, and their dividend histories are more consistent. The dividend yield is computed by taking the annual dividend per share and dividing it by the stock’s price.

Book Value (BV)

One way of determining a Small cap stock company’s worth is through the book value, which is computed by subtracting the company’s liabilities from its assets. A growing company with a good growth potential would be worth much more than its book value.

Return on Equity (ROE)

The ROE is a measure of determining how well a company uses its assets to produce earnings. This is computed by dividing the net income by book value. Companies selling Small cap stocks that show how consistently they can squeeze out more profits with the assets they have are generally better investments. The ROE becomes even more useful when you look at the company’s figure over a number of years, say the last five years.

When evaluating Small cap stocks through these ratios, we suggest that you compare companies within similar industries. Don’t take one ratio and base your purchase decision on that one ratio alone; use a combination of ratios, and consider other information about the company as well before you buy any Small cap stocks.

Investment Plan:

Every beginner needs to have an investing plan, weather you are beginning to trade/invest into stocks, bonds, mutual funds, futures, forex, real estate, equity and many other financial market. You need to have a plan point of how much risk you are willing to take at the starting point, and the investing plan is ”How Much Are You Willing To Risk” on your starting point. You need to start investing from some where, but where it will not affect your financial status even if you lose your capital margin into the investment.

Before you invest your money, make sure to start with as little as you can afford to risk, that will make you not to lose all you have and at the same time, it will prompt you more opportunity to harness on the transaction to ascertain if it actually worth investing your hard earned money into such business. Dont risk investing the amount of money you can not afford to lose, all security transactions are very profiting but at the same time you can lose so much into the transactions as well.

The Beginners Target Of Investing:

The target of every investor is to make profit, and by that you need to invest your money into a very lucrative and legitimate kind of transactions that will yield better interests and profits, as a beginner, you dont know the most lucrative and legitimate transactions to invest your money yet, but before you invest, make research about the business to know certain things before you jump into such transaction, but it has been proven that security investments like stock, bonds, mutual funds, equity, futures, forex and other financial transactions yields more better profits in short time investment than other investments, which is the more reason why investors are destinating to invest into financial/securities in order to reap from the untaped profiting ventures.

Because of the volatile in the security transactions, prices tend to rise over time, which gradually increasing your money to profit, in this aspect you have benefited from the investment when the prices ascends up. It can also fall over time as well as decreasing the margin of your investment, in this aspect you are losing your money into the investment when the prices descends down. Therefore, investing your money into transactions is not only to make profits but it will also give you the opportunity to make turn over of your money, which also increases the weight and value of the money you have into more strong money. However, investments requires strategies, good decisions, careful planning and patience in order to make a better returns in your transactions.

A lot of people are fascinated by penny stocks but don’t know how to invest in them. The term is also interchangeably used with Microcap stocks or nano stocks. They are priced below five dollars and a more common definition refers to the value of a joint venture of shares which are outstanding.

How shall an individual go about calculation of market capitalization of the company? Consider the total number of shares which are outstanding and then multiply that with the company’s stock price.  Penny stocks are usually dealt with the counter or OTC market, not like other titles that are treated in the stock market.

These stocks, nevertheless, are regarded as a standard of transactions by brokers and are billed consequently. What this implies is that instead of being rewarded a commission, the broker makes money through what is called the spread by purchasing and selling at the correct time.

The gap is the variation among bids and asks prices. For the majority of them, the gap is fixed at about 25 to 33%, even though at times it might increase from 50 to 100%. Another difficulty is distribution in the computation of penny stocks is the actuality that there are two solicitation and two prices, at all times, and they are calling from outside and inside and ask the bid.

It appears that penny stocks are very complex, with a lot of pitfalls and possible losses if these complications are not correctly dealt with. Nonetheless, penny stocks are still a good investment prospective since they can assist start-up, without a large amount of capital to invest in yet.

That is why different penny stock picker and software programs have been developed. With the utilization of computers, millions of calculations and maintain track of surprising amounts of data becomes probable. With the aid of computers and programs of these advances, investors can at the moment decide to pursue the stocks and invest in a greater possibility of return.

In the world of stock investing, the more you know, the better you are. Most investors subscribe to at least one business journal and others subscribe to investor newsletters. The costs of subscriptions are reasonable compared to other specialized reading services. Many of the news journal also contain daily news stories and expert commentary. Most of the business news services and advisory newsletters are accessible on the Internet or in paper format.

There are numerous financial newsletters available on-line and in paper format. Of the ones I have reviewed there are only two that I would recommend for their value in stock investing. The Morningstar Stock Reporter is a monthly publication that has great research on stocks. The information is easy to digest and the format is easy to read. The subscription is about $89 per year.

The Street dot com stock advisory is unique. It is produced by Jim Cramer who has decades of experience in investing in the ups, downs and in between times on the stock market. He has a charitable trust that he keeps tabs on and invests. Due to a variety of reasons he is not an active trader of hedge funds or other investments.

Dow Jones industrial average investment

Currently, the top stocks are doing quite well on the stock market. Due to the small number of stocks that make up the DJIA all it takes it a few of the stocks to take a dive and the overall average can take a dip. It is good to analyze the sectors that make up the components of the Dow Jones Industrial Average.

Large Multi-National stocks in the Dow Jones Industrial Average: This category takes into account basic materials, drugs, machinery, autos and big cap companies that have a major influence on the Dow Jones Industrial Average.

Microsoft Corporation, United Technologies, Hewlett-Packard, Verizon Communications, International Business Machines, AT&T and Intel Corp. round out the influence of technology influence on the Dow Jones Industrial Average. .

The Stock Market is the greatest show on earth and this can be explained by the very human trait of enjoying the art of the trade. It is the present day version of a day in the square with all of the smells, color and fanfare of a carnival where people communicate and come together to sell their wares. The Stock Market provides that ingredient of human existence that enjoys watching or participating in a good trade.