Becoming a success investor is not rocket science but it does take some intelligence along with setting out a plan of action. Below are Five of Stocks on Wall Street’s Rules to Becoming a Successful Investor:
1. Invest without emotions. Use your head not your heart. Emotions get in the way of logic, make a plan that will let you be accountable and disciplined. Don’t get overcomplicated with your plan either. It can be a simple trading strategy with simple rules. Like Warren Buffet always has said, “you don’t need to be a genius to make good money investing.”
2. Don’t set your expectations too high, be realistic. Don’t expect to make $1,000 off a $2,500 investment in six months time. While it is always doable, don’t count on it. Set realistic expectations and then be happy when you exceed them.
3. Don’t think a trade is always going to recover; sometimes it’s the smarter move to take a small loss now instead of taking a large loss later.
4. Don’t always think a good company is going to make you good money. You make money from the company’s performance. Sometimes good companies will struggle and the stock can go down whereas sometimes-bad companies stocks will soar.
5. End of day do your own research and be comfortable with the trade before you make it. Don’t make a trade solely on what someone else says, do your own analysis and if you agree with their investment idea then be confident and make the trade.
We are always hear to help you with any of your investment questions or needs. Two programs we now offer are Free Portfolio Reviews where we will overlook your investments, let you know what we think about each position, inform you on whether or not you have a balanced portfolio, & give you a detailed report on our findings.
Also if you don’t invest at all we do comprehensive Free Brokerage Account Setup’s where we will get you setup with the right brokerage account that fits your personal financial needs along with giving you an investment plan to help you reach financial freedom.
Want to be a successful businessman? Want to rule an industry? Want to be hated because you’re the best at what you do? Well if you wish for any of these, then just mimic everything Ari Gold does. For those of you who’ve never watched HBO’s proclaimed comedy ‘Entourage’ then you are sure missing out. In the show, one of the stars is Ari Gold, the star-studded agent and ruthless negotiator. You’ll quickly learn that the tactics that make Ari Gold so great at his job are the same tactics that make everyone else hate him. This is why we love Ari Gold and why we believe he has the characteristics, behavior, attitude, and tools to succeed in any industry:
1. His swag, his style. His quick twitch, ADD behavior which is a wrecking ball to anyone who gets in his way. He never takes NO as an answer.
2. Ari Gold may be considered an a**hole to many, but results don’t lie and that’s something everyone needs to learn in life. The key in life is to get the job done. If your boss asks you to do something, do anything to get it done. Of course follow some form of moral/ethical code as we don’t want to create another Bernie Madoff here but beside the point, always get the job done. If you can get the job done & produce results you’ll have a job forever!
3. Ari Gold knows how to work the system. Never cheat the system, just use it to your advantage. It’s not lying if you don’t tell them the full extent of the truth. Find out the information you want to know first then let them in. Always leverage everything you have, even if it’s very little. Find flaws in the system and take advantage and capitalize on them.
4. Ari Gold is scared of no one, no opportunity, no challenge. In many cases throughout the life, take the path less traveled. Don’t be scared to take risks, as it’s those risks that will pay off the biggest rewards and if you do fail then it’s just another learning opportunity and a step towards success. Remember, you miss 100% of the shots you don’t take.
5. Ari Gold knows how to convince anyone in any situation. Learning to convince people to side with you, take a chance in you, believe in you is the key in life. If you can convince one person, you can convince the world.
6. Ari Gold has a compassionate side and knows the importance of friendship & relationships. Throughout the series you will see the bond that grows between Vince and Ari. Never burn bridges that hold you up. There is no satisfaction in success if there is no one to share it with.
Recently we were thinking about movies with some kind of financial lesson. The financial side of making films has always intrigued us. Historically the Oscars have always been proof that the biggest budget doesn’t always give the best ROI. In 2010, the lowest grossing Oscar winning film in history – The Hurt Locker – beat out the highest grossing picture in history – Avatar.
Here’s my list of the top 10 movies ever made that have a financial lesson inside of them.
1. Boiler Room (2000) – A college dropout gets a job and enjoys fast success at a brokerage house selling phony stock. However, the job turns out not be as legit as it sounds. This film is mix of Wall Street and Glengarry Glen Ross thrown in. Although there’s no character here that can compare to Michael Douglas’ Gordon Gekko.
Lesson: Great morality lesson dealing with the desire to get rich quick, regardless of the consequences.
2. Wall Street (1987) – “Greed, for lack of a better word, is good”. This line by ruthless corporate raider, Gordon Gekko, summed up the business ethics of the 1980s, when greed, corruption and the predatory nature of the financial world was at its most conspicuous. The film charts the ascent of a young, ambitious stockbroker who’s taken under Gekko’s wing and struggles with whether it’s better to have money or integrity. Gekko is the embodiment of corporate malfeasance, but also portrayed as a business guru. His glamor and power probably inspired a lot of young men to enter investment banking over the last two decades. As Gekko said, “It’s all about bucks, kid. The rest is conversation.”
Lesson: Greed is good. What’s worth doing is worth doing for money. Lunch is for wimps. If you need a friend, buy a dog. So goes the wisdom of Gordon Gekko, ruthless investor, legendary financier – and the star of one of the best movies ever made about money. This film also provides a great backdrop to the landscape that led to the financial crisis of 2008.
3. Glengarry Glen Ross (1992) – Times are tough. This is the ultimate real estate high pressure sales environment film where making money is the bottom line. A desperate group of Chicago investment property real estate salesmen suffer in a down market, a sales contest is launched and anyone who fails loses his job.
Now that the property bubble has burst, some real estate offices may soon seem a little bit more “Glengarry”. There’s no room for losers, only ‘closers’ will get the good sales leads. Some regarded this film as a critique of the impact of Reaganomics.
Lesson: Too much pressure to succeed can boil over into tragedy with unforeseen consequences.
With the upcoming premiere of the film “Wall Street – Money Never Sleeps” it got me thinking about movies with some kind of financial lesson. The financial side of making filmshasalways intrigued me. This year’s Oscars were yet again proof that the biggest budget doesn’t always give the best ROI. In 2010, the lowest grossing Oscar winning film in history – The Hurt Locker – beat out the highest grossing picture in history – Avatar.
Here’s my list of the top 10 movies ever made that have a financial lesson inside of them.
4. Maxed Out. Hard times. Easy Credit. The Era of Predatory Lending (2006) – This documentary shows how the modern financial industry really works. It explores America’s love with credit and leveraged debt and tells us why the poor are getting poorer and the rich getting richer. When Hurricane Katrina ravaged America’s coast, it revealed that America was far from the world’s wealthiest nation. It also highlighted America’s crumbling beneath a staggering burden of individual and government debt. Maxed Out shows how predatory lending was out of control, including credit cards pumped to college kids who had no income. This is a great movie. It’ll make you feel different about your money.
Lesson: It delivers a great lesson on how to borrow and shows why you don’t want to live on credit. Credit is the devil. Do you know anyone who got into trouble because they didn’t borrow too much money? Maxed Out paints a picture of a national nightmare which is all too real for most of us – out of control spending and an irrational use of credit.
5. Enron: The Smartest Guys in the Room (2005) – Before Bernie Madoff, there were Ken Lay and Jeff Skilling who ran the Houston energy firm that was going to reinvent how energy was going to be done in America. Enron was highly profitable, had a great amount of cash flow and earnings and the stock price soared. Its executives cashed out options worth millions and told employees their best 401K option was Enron stock. Thousands lost all their retirement savings because they put all their bets on one company. Took Enron 16 yrs to from 10b assets to 65b assets, but it took them 24 days to go bankrupt. It won the Academy Award for best documentary.
Lessons: Have a financial plan, have a discipline. If you have a stock that looks too good to be true and it just keeps going up, up, up, it’s probably too good to be true. Diversify, Diversify, Diversify. Don’t put all your eggs into one basket.
6. Working Girl (1988) – Melanie Griffith plays Tess McGill. Endearing 80s film. Ultimately she takes a job as a secretary but she wants to rise in investment world. Wants to rise to power, combines her business degree from night school w/ her street smart acumen & pulls of a mega-merger. Total fantasy. Prince charming happy ending w/ Harrison Ford. “I have a head for business and a body for sex.”, says Melanie Griffith’s character. Go back to night school, go back & get a degree. Go get educated, you’ll get leverage. No one can take your education away from you.
Lessons: Your education, your smarts can’t be wiped out in a recession. Your earning power is rooted in your skills, in your education. Provides an entertaining reminder that if you have something to offer your co. & they don’t seem too interested, then take your skills elsewhere. If you are a super powerful earner at one job, you can make yourself a super powerful earner anywhere.
7. Treasure of the Sierra Madre. 1948. Classic western cautionary tale about how not to launch a venture. If you took everything that Howard Dobbs & Kutan did in this movie: “Get rich quickly without a credible business plan.” “Badges, we don’t need no stinking badges.” Don’t swing blindly, don’t come up w/ a get rich quick scheme, don’t do a pyramid scheme, don’t sell products from your house to your friends or recruit your friends.
Lesson: In life, as in baseball, you’re gonna strike out. You don’t want to strike out blindly while your pursuing a huge home run. You gotta know your business, know your partners, know where you are in all of this.
8. Mr. Blanding Builds His Dream House (1948) – Was remade into The Money Pit, starring Tom Hanks & Shelly Long. Owning a home ain’t cheap. It can turn into a massively expensive ordeal. Home is really a money pit. Owning a home comes w/ a lot of responsibility, gotta have credit, gotta have a down payment, pay your bills, maintain the home, gotta know the risks up front. It’s expensive. You gotta know the worse case scenarios, all the risks, the downside.
Lesson: Shows how the American dream of owning a home can go terribly wrong. Home ownership is not for everybody and shouldn’t be promoted as such by the government.
9. Confessions Of A Shopaholic (2009) – About a chic who’s struggling with a debilitating obsession with shopping and has 12 maxed out credit cards. She unintentionally lands a job as a financial journalist and falls for a wealthy entrepreneur. Don’t buy a $400 watch because it quickly depreciates to nothing. I will buy a $4,000 Rolex – nothing less than a Rolex — because it can still be sold 10 yrs after you buy it for what you paid for it. You use credit to buy things of value: an education, a car to get you to work, (I prefer to buy 2-yr old used cars because it loses half its value up front when you drive it off the lot, but you can still get 50-60,000 miles out of it.)
Lesson: Only use credit for things that have value. Pay cash for everything else.
10. Brewster’s Millions (1985) – The ultimate spending spree is something that most of us have daydreamt about at some time. A minor league baseball player, Montgomery Brewster, (Richard Pryor) has to waste $30m in 30s days in order to inherit $300m; however, he’s not allowed to tell anyone about the $300m deal.
Lesson: How corruptible too much money can be and how difficult it can be to use it responsibly.
Hedge Fund titan Jon Paulson pulled off the greatest trade of all time in 2007, raking in a cool $15 billion in his bet against subprime mortgages - according to the International Business Times who ranked the top ten greatest trades of all-time. Some were brilliant masterminds, others were just plain lucky.
The Top Ten Greatest Trades of All-Time
1. John Paulson’s bet against sub prime mortgages made him $15 billion in 2007
2. Jesse Livermore’s call on the Crash of 1929 (a legendary trader featured in the popular book, Reminiscences of a Stock Operator).
3. John Templeton’s foray into Japan in the 1960s (a true investment pioneer, Templeton foresaw the rise of Japan after World War II and profited hugely from it).
4. George Soros’ breaking of the Bank of England in 1992 (Soros made $1 billion).
5. Paul Tudor Jones’ shorting of Black Monday in October 1987 (he predicted the crash, bet a bundle & tripled his money as the market crashed 22% in one day).
6. Andrew Hall’s $100 oil prediction (with oil trading at $30 per barrel in 2003, Hall bet prices would rise to $100 in 5 years; they did and he took home a personal paycheck of $100 million in 2008).
7. David Tepper’s 2009 bet on financials (as the market hit its low in early 2009, Tepper bought financial services stocks & his fund earned $7 billion that year ($4 billion of that went to Tepper).
8. Jim Chanos’ prescient shorts (his sharp analysis led him to predict the demise of Enron, WorldCom, and other firms, and he is known as the best short-seller in the world).
9. Jim Rogers’ early call on commodities (he was bullish on commodities back in the 1990s & has been riding them to great profits ever since).
10. Louis Bacon’s geopolitical play (he correctly predicted that Saddam Hussein would invade Kuwait in 1990 & profited handsomely by going long on oil & shorting stocks, which helped his fund return 86% that year).
Most of these trades were ‘global macro’ plays where huge, concentrated bets were made by analyzing fundamental economic/business conditions. These investors excelled at turning a great observation about the world into a great investing idea. But, while these make the headlines, you never hear about the other investors who made a big call and missed, and ended up out of business.
It’s almost impossible for regular investor folks to make a ‘big score’ like these traders. Rather than trying to throw a touchdown pass on every play and make a big score like these traders, the smarter game plan is to focus on trying to get consistent first downs. Do your homework, watch market/sector developments, don’t chase stocks up or down. Do that, and the score may take care of itself.
Source: International Business Times
Shares of the iShares MSCI Turkey Investable Market Index Fund (NYSE: TUR) has soared throughout 2013 and has even hit its 52-week highs trading at $77.38. Turkey as a whole has been experiencing robust growth as the Borsa Istanbul National 100 has surged to its highest levels in the past 25 years. We have been huge supporters of TUR dating back to August 8th, 2011 when we issued our first ‘BUY’ rating for the ETF in our article ‘iShares Turkey ETF (TUR) Poised for Success‘. Since then, TUR has appreciated +69.67% over the past 22 months.
What Attracts Investors to TUR
Investors looking to play the Turkish markets have few options. iShares MSCI Turkey Investable Market ETF (TUR) originally launched in 2008 is the only option avaliable to investors seeking a pure play exposure in the Turkish equity space. TUR is also the only ETF with dedicated Turkish exposure. The banking sector also plays a prominent role in the investable market in Turkey and TUR has a high concentration of financials in its portfolio.
What To Expect Going Forward
When it comes to Turkey, it has been the talk of a higher sovereign debt rating that has been lifting TUR, the lone ETF devoted exclusively to the country. Turkey, which has been engaged in a multi-decade conflict with Kurdish militants in the Southeast part of the country, is working to end the conflict. The government there is in negotiations with Abdullah Ocalan, the jailed leader of the Kurdistan Workers’ Party or PKK, in a bid to end the bloodshed.
Just last month, Moody’s Investors reported that Turkey’s ongoing efforts to bring an end to the conflict could be a positive credit step. Fitch Ratings upgraded Turkey’s long-term foreign currency Issuer Default Rating (IDR) to BBB- from BB+ back in November and the Long-term local currency IDR to BBB from BB, this is huge news as it’s giving Turkey its first investment grade ratings in nearly two DECADES.
This has been great news for investors as the speculation of a possible credit rating upgrade has lifted Turkish banks shares. TUR is heavily centered on the Turkish financial sector with 51.9% of its holdings in financial services stocks, quadruple its next largest sector weight, industrials.
Turkey’s economy has some good signs heading their way. Beyond this falling inflation rate, investors should note that Turkey has seen a plunging growth rate as well.
Turkey has good medium-term growth prospects and a diverse economy. The nation’s debt-to-GDP ratio stands at 39.9%, much lower than the debt-to-GDP ratio of many developed economies. On top of this, the country has a low employment rate, government reforms, strong, solid banking system, and improved credit rating. Adding all these solid growth factors together and Turkey could prove to be a great investment market in Europe for years to come.
If you have any further questions on either TUR, Turkey’s economy or any investment at all don’t hesitatet to contact us at all by emailing us at jameshartje@StocksonWallStreet.com or Follow our Contact Form
Also make sure to tune in later this week for our long-term outlook on TUR along with more detailed analysis on both Turkey and other emerging markets.
The Cliff Stevenson Group is a leading real estate group that offers all the services one can expect from a top-tier real estate firm. From the start, one thing that really sets the Cliff Stevenson Group apart from its competition is their web presence and the amenities they offer online. Not only do they have a full service website with all the basic information but they also have many other great extra amenities that we rarely see other real estate agents implement. For example, all of the Cliff Stevenson Group’s current active listings are right there on the website so within one click of the mouse a potential buyer can see everything he has to offer including added details and information about each property. On top of that, you are able to access all of the Cliff Stevenson Group’s recent and past sales, which are great for prospective sellers who are shopping around real estate agents, as they are able to see the Cliff Stevenson Group’s track record and make the educated decision on whether or not it’s the right fit for them.
The thing that most impressed us about the Cliff Stevenson Group’s website is all the educational tools and resources they offer to their clients. By browsing through the website you are able to learn all the different aspects of buying and selling a home including added analysis on what effective strategies work and what doesn’t work. To most buyers this would be a huge resources as on average people don’t buy and sell their homes that often so it’s expected that they won’t know all the strategies to getting that great sale or making that great purchase. In addition to all the educational resources offered, the Cliff Stevenson Group also has a regular blog and a video blog to keep clients updated with their progress and to offer more additional resources and information. They also offer clients with market reports and detailed analysis on past and present sales plus what the real estate markets current trends are.
From going through the Cliff Stevenson Group’s website you can clearly see that not only are they a great real estate group offering all the top tier amenities and resources but that they also care and will go the extra mile to help you out. If you select the ‘Meet the Team’ page you are able to get acquainted with each and every member of the Cliff Stevenson Group. In addition, you can also read past testimonials from various clients and after reading them you will see that everyone leaves more than pleased with the Cliff Stevenson Group’s service. There is no question that the Cliff Stevenson Group is the premier real estate group in the Calgary area and if I were a home buyer or seller in that area I would hands down pick them to be my real estate broker and agent. Simply click on the link or go to http://www.cliffstevenson.com to get your own first hand experience at how great the Cliff Stevenson Group’s service is.
The senior citizens of today are slowly becoming more and more aggravated and increasingly discontented with their current life insurance plans. Part of this is because of the major changes that have taken place. In the past, people believed that life insurance was a necessity and as a result policies were accepted without argument. The reasons senior citizens are becoming more and more aggravated by the life insurance companies is due to the fact that the life insurance policies responsible for insuring individuals are not resourceful and offer little instruction to those interested in selling their policies. Furthermore, others have succumbed to simply receiving a small cash value for their policies, from the insurers themselves.
Due to all these problems, a third alternative has emerged, known as a life settlement. A life settlement is when a life insurance policy is sold to a party other than an insurance company, for more than its cash value, but less than the benefit that would be insured after death. For those who intend to liquidate their policies for financial gain, a life settlement can be an indispensable economic tool.
Currently the problem with life settlements is the fact that most of the population has no idea about what they are or how they work. As a result, many policyholders often resort to surrendering to a life insurance company just because they are not informed. Making such a move could cost you a significant amount of money, on average users can get 8 times the payout vs. surrendering to the life insurance company. That can add up to some serious money so make sure to read our full article as we are here to educate you on how the life settlement process works and how you can take action. We will also provide you with the right resources to take advantage of such an offer yourself.
What Are Life Settlements?
Life settlements function as a profitable source of security for senior citizens unable to afford their current policies. If a life insurance policy doesn’t meet the necessary requirements or if it fails to provide enough death benefits, the senior citizen is able to then sell his or her policy to a third party.
Once you have sold your life insurance policy, you are no longer required to pay for insurance premiums. Policy owners posses certain rights. Someone’s life insurances policy is basically their personal property therefore giving that owner the ability to manage or sell it if they wish. As far as sale value is concerned, there are no limitations to this process as a life insurance policy owner may sell their policy for whatever price they want. Life settlements work according to the policy owners’ rights. These liberties include changing the designation of the beneficiary, borrowing against the policy, selling the policy to another company or party, using the policy as collateral for a loan, and naming the beneficiary of the policy.
What Happens After You Sell
Once a sale is made, the seller may user the funds in any way they wish and they are not required to be above or below certain asset or income levels. During the sales process there are no upfront fees or hidden costs associated that might sneak up on a seller. After someone chooses to sell their policy, they then give all their death benefits to the new owner and in return receive a lump sum payment. The total amount of payment is based on the life expectancy of the seller.
How to Get Started
If you are now interested in taking advantage of the life settlement process or just want to learn a little more about how it works and speak to a professional broker then simply go to A Life Settlement’s website and click the ‘FREE! Get Started’ button. To be directed to the website simply click on the link below or go to http://www.alifesettlement.com/
What’s everyone think about the new $100 bill that will be coming out this year?
Source: New Money
Apple’s stock has taken a beating since reaching all-time highs over $700. Apple may be down but it’s by no means out. I believe the stock will finish 2013 with a strong rally somewhere above the $500 mark. The best Apple present this Christmas may not be an iPad Mini but rather Apple stock.
Analysts are mixed on Apple (AAPL). Schwab’s Equity Rating is D, Underperform. Ned Davis is Neutral. Credit Suisses rates Apple an Outperform. And the Reuters average rating is Outperform. So, let’s examine the pro and cons of owning Apple stock.
Concerns center around pace of innovation, supply problems and structural issues around gross margins. And, of course, there’s the never-ending grumbling about capital allocation of its $140 billion hoard of cash and whether Apple should issue a dividend. Many analysts worry Apple cannot sustain its gross margins, which has historically been well above industry competitors.
Other concerns hover around the increased competitive scenario and the fact that Apple no longer enjoys a monopoly. People are excited about new products from Samsung (SSNLF.PK) which seems determined to continue its onslaught in spite of lawsuit setbacks against Apple. And let’s not forget new forays into hardware offerings from Google and Facebook. Apple is very dependent on iPhone for sales — about 70% comes from iPhone. Plus, Apple has no recurring revenue stream other than iTunes and their revenues are based on what they sell. We saw this in the 1980s with Sony when Sony was conquering the world of technology innovation. The world loves Apple. But people are waiting for a dramatic new product from Apple. The world owns it. But haven’t we seen this before with IBM or Cisco?
Apple’s lucrative margins are under attack, forcing it to protect its profits by pressuring its suppliers. It’s not that Apple is doomed though. It’s only likely to become less profitable.
Apple is going through a transition from a hyper-growth story to a more traditional, high quality branded company. It grew earnings at +45%+ per year for ten consecutive quarters. Recently, it has grown earnings a little above 20%. Apple will have over $200 billion in annual revenue this year. It’s impossible to keep growing at that rate. So, it will be a more traditional growth company with a great consumer brand and with great products.
Most of Apple’s cash is offshore – a constraint to returning cash to shareholders in the form of dividends. Coke trades at a higher multiple than Apple. People have expectations of growth from Apple that they can’t live up to.
Are Apple’s days of growth over? Is Apple the new Coke? Are its days of hyperbolic growth over? Is Apple now the great new value play? Or, is it a value trap?
Apple may well continue a bumpy ride in the near term. However, Apple’s fundamentals are still fantastic going forward if you take an outlook of more than a quarter or two. Apple’s second quarter 2013 results are expected to beat expectations. Credit Suise’s Kulbinder Garcha put an Outperform rating and a price target of $600 on Apple.
New iPhone demand will be strong
While 2013 may not have enough new products from Apple to satisfy everyone, the next iPhone will begin production this quarter according to a recent Wall Street Journal report. Apple is reportedly working on a less expensive version with a plastic case that could be on the market before Christmas. Regardless of which features are included, the new iPhone will be better than the last one. The iPhone 5 has sold more than the 4S and Apple sold a record 47.8 million iPhones in the first fiscal quarter of 2013 – up 29% from a year ago. The first iPhone 4S customers who bought in October, 2011 will be primed for a new phone now that their 2-year contact is about to end. So, according to Morningstar analyst Brian Collello, the upgrade cycle will likely keep demand strong. He maintains that the smartphone market is still in the “early-to-middle innings.”
Apple continues to lead in tablets
Apple remains the undisputed leader in the tablet market. With more iPad and iPad mini models to come, expect tablets to bring in more app revenue for Apple than from smartphones. iPads are also predicted to show strong sales for the second quarter – an increase of 61% year over year to 19 million units. iPad minis will account for more than half of that.
Apple Apps remains the heavyweight
iPads are pulling in more revenue from each app than the iPhone, most likely due to higher-priced apps or apps that get more in-app purchases. It’s also possible that games are playing into this because the iPad’s bigger screen lends itself to more complex games. According to research by App Annie, app store downloads from iPad users doubled from 100 million in January 2012 to 200 million in January 2013. More surprising was the amount of revenue the iPads generated from app downloads. In January 2012, iPad has less than 20% the app downloads of the iPhone, but had nearly 50% the app store revenue. In January 2013, the gap narrowed with the iPad accounting for 30% less app store revenue than the iPhone.
Canalys issued a report on app downloads at the four major mobile stores: Apple, Google (GOOG), Microsoft (MSFT) Windows Phone Store and Research in Motion’s (BBRY) BlackBerry World. Apple’s App Store accounted for the largest share of revenue among the four stores, around 74%. Google saw the greatest number of downloads (about 51%) with Apple close behind.
Apple trades below intrinsic value
Apple has an attractive valuation and is currently trading well below intrinsic value. Apple’s revenue growth should continue to be robust in the 20% range and is trading at PE ratio estimated at 9.6 and just 8.38 times next year’s earnings. Compare that to the S&P 500 PE ratios which Robert Shiller estimates is currently trading at 18.17.
With the shares hovering around $425, there seems to be little downside, especially when you take into account about $100 in net cash per share if Apple were to bring all the overseas cash back and pay U.S. taxes on it. Apple’s capital allocation is a continuing source of speculation. With an estimated $140 billion in cash hoard – 75% of which is trapped overseas – a buy back would be viewed very positively.
Other pros for Apple include a potential China upside that has not yet played out, strong cash flow and the “leveragability” of iTunes.
If you missed the opportunity to buy Apple before, take a hard look now. There is little downside at $425. Even if there is no big new product announcement, iPhones and iPads continue to sell well. Apple is a well-managed, cash-rich company that’s proven it can juggle the profit margin pressures inherent with the transition to new, lower-priced product innovations. While Apple may not climb back to it’s record-high levels, I expect it to hit somewhere north of the $500 mark by Christmas.
Smart investors will continue to profit from Apple and might be wise to consider putting Apple stock in their Christmas stockings rather than just another iPhone or iPad upgrade. Awesome Stock. Awesome Products. Awesome Potential.
The Long Lost Oracle the Documentary Trader an Insight into the Life Investment Strategy of Paul Tudor Jones
Take a good hour, relax, & watch The Documentary Trader: An Insight into the Life & Investment Strategy of Paul Tudor Jones. It will be one of the most enlightenting & educating things you can learn from. Words cannot even describe how much it will help improve your investing repertoire. If you call yourself a trader or investor & don’t know who Paul Tudor Jones is then you have a serious problem. For the rest of you, here is a brief little bio to give some background on what both myself & Stocks on Wall Street consider to be one of the greatest fund managers/traders of all-time & a mentor we have long studied & used to implement our own trading strategies. Just in our article the other day, “The Top Ten Greatest Trades of All-Time” we mentioned Paul Tudor Jones as he came in #5 on the list for his infamous call of Black Monday on October 1987 when he predicted the crash, shorted the markets by betting a bundle & tripled his money as the market tanked 22%. That’s just one of the many great achievements this man has accomplished throughout his career, the bio below followed by his documentary will give you the true insight to his greatness.
Paul Tudor Jones II
Paul Tudor Jones II is the founder of Tudor Investment Corporation, a multi-billion dollar hedge fund. He is worth an estimated $6.3 billion in 2009 and was ranked by Forbes in March 2007 as the 369th richest person in the world. In 1976 he started working on the trading floorsas a clerk and then became a broker for E.F. Hutton. In 1980 he went strictly on his own for two and a half profitable years, before he “really got bored.” He then applied to the Harvard Business School, he was accepted, and packed to go when the idea occurred to him that: “this is crazy, because for what I’m doing here, they’re not going to teach me anything. To be a trader, this skill set is not something that they teach in business school.”
He consulted his cousin, William Dunavant Jr., for advice. Dunavant, whose Dunavant Enterprises is one of the world’s largest cotton merchants, sent Jones down to New Orleans to talk with commodity broker Eli Tullis, who hired and then mentored him in trading cotton futures at the New York Cotton Exchange. During his time working for Eli, Jones was quoted saying:
“He was the toughest son of a bitch I ever knew. He taught me that trading is very competitive and you have to be able to handle getting your butt kicked. No matter how you cut it, there are enormous emotional ups and downs involved.”
In 1980, Paul Tudor Jones founded Tudor Investment Corporation which is today a leading asset management firm headquartered in Greenwich, Connecticut. The Tudor Group, which consists of Tudor Investment Corporation and its affiliates, is involved in active trading, investing and research in the global equity, venture capital, debt, currency, and commodities markets. They manage around roughly $18 billion dollars in capital.
One of Jones’ earliest and major successes was predicting Black Monday in 1987, tripling his money during the event due to large short positions.
Jones uses a global macro strategy when trading in some of his funds. If you want to see this strategy it can be seen in the 1987 film “TRADER: The Documentary”. The film shows Mr. Jones as a young man predicting the 1987 crash using methods similar to market forecaster Robert Pretcher. This video is absolutely thrilling because of the amount of detail it gives into how he trades and manages risk.
The video used to sell for hundreds of dollars as competitors/enthusiast viewed it as the Holy Grail into Jones trading strategy. It has been banned from circulation; only original copies exist. It was original shown on public television in November 1987, however very few copies exist. Those that do are hoarded by traders who watch the hour-long movie in the hope of gleaning possible trading tips from Jones. According to Michael Glyn, the video’s director, Jones requested in the 1990s that the documentary be removed from circulation. Jones in fact, even went as far as purchasing what he thought were all the remanining copies of the docunemnaty but he was unfortuantely unaware of the power of the internet & how quick something can virally spread.
Still as it is there are very few websites that have the original version of ‘Trader’ so luckily for you, Stocks on Wall Street was able to get our hands on the original for you all to enjoy. How we found it, don’t ask but to re-emphasize the main point, EVERYONE NEEDS TO MUST WATCH THIS VIDEO ASAP. If you have any aspirations of becoming successful in the world of trading one day then you must watch this video. If you have work in the morning- you shouldn’t go until you’ve watched this; it’s your mom’s birthday tonight? – Not until you’ve watched this video; you’re tired and need sleep? – You don’t sleep until you’ve watched this. I hope we emphasized the importance and the value this video has. Don’t take for granted how much longer it will be live as Jones is still on his witchhunt to take it down across the web. So share with your collegaues, family, and friends heck even all your social media buddies as this is one of the greatest gifts you can send them. To watch the video simply follow the link below, enjoy!
When it comes to money, people are always making dumb decisions. From spending what’s not theres, to buying a house they can’t afford, or leasing that car that doesn’t fit their budget. Time after time we make mistakes with our money and fail to recognize the warning signals that could have prevented us from making these costly errors. The key to avoiding these possible life blunders is to always stay informed and educate yourself before making a decision. This will greatly lower your chances of making a poor, dumb decision that costs you for years to come.
Brett Arends is a writer for the Wall Street Journal. This weekend he wrote a great, short, small column offering five simple pieces of good advice. Below are Brett’s Five Really Dumb Money Moves You’ve Got to Avoid:
1. Reaching for yield
2. Going into the poor house to send Junior to a country-club college
3. Owning stock in your employer
4. Taking Social Security too early
5. Buying long-term bonds
For those of you interested in reading more, follow the link below as the full article is worth your time.