The Jeffrey And Tracey Info Emporium

It’s Tuesday April 11, 2006, and Alcoa (NYSE: AA) kicked off earnings season with blockbuster numbers, the estimate was 51 cents per share for the first quarter. Alcoa posted an EPS of 69 cents beating the estimate by 18 cents. This drove the stock up in after hours trading to a new 52 week high of $35.10 up from the $32.83 closing price on Monday.

Companies of note that are scheduled to report today include General Electric (NYSE: GE) the estimate is $0.389 cents compared to an EPS of 38 cents a year ago and Universal Forest Products (NASDAQ: UFPI) the estimate is 63 cents compared to an EPS of 44 cents a year ago.

We’ll list the companies of note that are reporting this week as their hits and misses may have some effect on their sectors.

Readers Speak

We received an email from one of our readers/listeners in regards to yesterday’s segment, where we mentioned that Mark Cuban had something to do with the movie “Akeelah and the Bee“, and we stand corrected, as it was LionsGate Entertainment (NYSE: LGF) and not Mark Cuban. This is why input from our readers/listeners is encouraged, so thanks for the email.

Chinese President Hu Jintao

Chinese President Hu Jintao is scheduled to visit the United States on April 18-22, 2006. This is sure to be an eventful visit as the U.S. has been putting pressure on Beijing to get their house in order ahead of the historic visit.

Some of the issues that have been brought up include copyright theft, currency rates, markets barriers and beef bans.

The question that needs to be answered during his visit is “Where is the Equity in Trade?”

With an over $220 billion U.S. trade deficit with China, this is a question that needs to be answered.

Metal, Metals, Metals

As most investors already know one of the big movers have been metals, last week we mentioned a few companies that we see benefiting from the upward movement, they include Silver related companies Coeur d’Alene Mines Corporation (NYSE: CDE), based in Coeur d’Alene, Idaho, Apex Silver Mines (AMEX: SIL), based in Denver, Colorado and Pan American Silver Corp (NASDAQ: PAAS), based in Vancouver B.C. Canada. Gold related companies include Corp (NYSE: GG) and Crystallex International Corp (AMEX: KRY).

Gold has moved up past the $600 mark while Silver hit an quarter century high of $12.77, other metals that have been moving higher include Copper which hit $270, Palladium which moved higher to the $362 range, Zinc hit $1.33 while Aluminum hit $1.15.

Keep in mind as the demand grows for top metals you can either own the futures contracts, which should be left to the sophisticated investors or a smarter move would be to own the companies that stand to benefit.

Bausch & Lomb

Bausch & Lomb (NYSE: BOL) will feel the heat in today’s trading session as they have agreed to stop shipping their ultra popular brand ReNu MoistureLoc. This comes on the heels of reports that stated that their ReNU solutions caused eye infections, this began in Singapore and Hong Kong back in February and is now here in the United States.

The FDA said 109 preliminary reports of a rare fungal infection that may cause loss of vision had been reported to the Centers for Disease Control and Prevention from 17 U.S. states.

Even though the company said that they found no evidence of the claims, the company still agreed to pull the products off the shelves. This will be a very damaging situation for the company and its shareholders as you can expect for various analyst downgrades to come down the pike.

Whether the claims are substantiated or not, the negative press will hurt the company as consumer confidence in their products drops. The stock closed on Monday at $57.44 close to their 52 week low of $57.17, the stock could break the low and keep tumbling until they find support and this may come in the mid to high $40 range.

General Motors

General Motors (NYSE:GM) sells its stake in Isuzu to a couple of Japanese trading companies and a bank for approximately US$300 million. Isuzu has been its strongest ally in Japan and now that has been eliminated. This is a part of a bigger picture for General Motors as the once darling of Wall Street continues to fall from grace and faces possible bankruptcy, though its highly unlikely. The company may seek a U.S. Government bail out, even though President Bush several months ago made mention that this was not an option but this may indeed take place. The United States at this point cannot risk losing any more footing in the U.S. automobile market. One other scenario may be the injection of private equity into General Motors, one way or another something will take place as a lifesaver for GM, the only question is how low will they go before they get it.

Tidbits

Google (NASDAQ: GOOG) will be adding video clips to their Google Earth service, so if you are in your backyard taking some sun or a midnight swim be aware that big brother may be watching. eBay (NASDAQ: EBAY) is looking to take their Paypal company on the road, literally, as they are looking to give consumers the ability to use Paypal anywhere anytime using their mobile units, os if you need to pay a bill and want to use Paypal to do it, well you will be able to do it from your Blackberry, Treo or your cell phone soon. JP Morgan (NYSE: JPM), as we reported a few weeks back, will be making an asset swap with Bank of New York (NYSE: BK), JPM’s trust business for BNY’s retail business, looks like JP Morgan is getting prepared for the upcoming Citigroup (NYSE:C) buying spree. Bain Capital goes from Dunkin’ Donuts to coats as they have come to terms with Burlington Coat Factory (NYSE: BCF) to acquired the established coat company.

As I repeat this every day, we cannot stress enough that investors need to do their due diligence, call the companies, get the information, consult with your investment advisor and if you do not have one consider getting one. Put the same time into investigating these companies as you do when you go to purchase a new television, it’s only for your protection. When it comes to thinly traded securities stagger your orders or put a limit order in to avoid a run up.

Disclaimer:
None of the information contained on the NAMC Newswire constitutes a recommendation by the NAMC Newswire, its journalist, nor its parent company that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific investors or person. Each individual investor must make their own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy featured on the NAMC Newswire or NAMC Radio Any past results are not necessarily indicative of future performance. The NAMC Newswire, its journalist nor its parent company does not guarantee any specific outcome or profit, and all investors should be aware of the real risk of loss in following any strategy or investments featured on the NAMC Newswire or the NAMC Radio. The strategy or investments discussed may fluctuate in price or value and investors may get back less than you invested. Before acting on any information featured on the NAMC Newswire website or the NAMC Radio segment, investors should consider whether it is suitable for their particular circumstances and strongly consider seeking advice from their own financial or investment adviser. Investors are also urged to do their own due diligence before investing in any security.

All opinions featured on the NAMC Newswire or NAMC Radio are based upon information that is considered to be reliable, but neither the NAMC Newswire, its journalist, its parent company, affiliates nor assigns warrant its completeness or accuracy, and it should not be relied upon as such. The statements and opinions featured on the NAMC Newswire by its journalist are based on their outlook at the time of the statement or opinion, and are subject to change without notice. NAMC may at times hold a position in the companies that it features, in these cases appropriate disclosure is made.

NAMC Newswire Note

Go to the NAMC Newswire for updates at www.namcnewswire.com and you can listen to the NAMC Radio for the audio version of “Wall Street to Main Street”

To register to receive the Wall Street to Main Street Free Daily Newsletter Click Here or go to our site and click on the Newsletter section. http://www.namcnewswire.com/ newsletter
CEO’s that want to contact us can do so by going to www.namcnewswire.com or call us at 888-463-9237.

Louis Victor
NAMC Newswire
888-463-9237

Picture one of those clubs where only the real heavyweights need apply. In the library the old aristocrats, General Motors and JP Morgan, are dozing in their leather chairs. On the terrace, a late luncheon is underway for those who have only improved their standing through marriage. ExxonMobil and Citigroup are part of the party. At the bar, a number of the”nouveau riche” have gathered - Microsoft seems to be buying for Intel and Hewlett Packard. Welcome to the world of the Large Cap Stock Club, the biggest of the worlds publicly traded companies.

For those interested in applying, membership includes a minimum market capitalization of at least $1 billion and can go upwards to $10 billion depending on whom you talk to. Included in the resumes are often affiliations with other well known groups. 30 are currently with the Dow Jones Industrial Index and many more with the Standard and Poor’s 500. Both these groups are widely followed indicators of the health of the stock market.

The Dow Jones Industrial Average (DJIA) traces its lineage back to 1928 when companies like Victor Talking Machine (later merged into RCA Corp.), Nash Motors (later merged into American Motors) and F.W. Woolworth Company kept company with General Electric and General Motors, the only two remaining original members. Today, household names like McDonalds, Home Depot, Disney and Wal-Mart have replaced some of their earlier brethren. Calculating the average is done by adding the prices of the 30 stocks and dividing by an adjusted denominator.

Because the Standard and Poor’s 500 Index (S&P 500) has 500 companies in the index, many believe this to be a more accurate indicator than the DJIA. Also unlike the Dow Jones Industrial Index, the S&P 500 is a weighted index - meaning each stock’s weight is determined by its market value.

Unofficially, some Large Cap companies are known as “blue chips”. This term originally came from poker chips where the blue chips were the most expensive. Today, this generally denotes high quality, usually being reserved for large companies with stable earnings and a history of dividend growth.

Investors in mutual funds are apparently big fans of Large Cap stocks. Of the 10 largest mutual funds, seven are invested primarily in US Stock and all of these (Growth Fund of America, Investment Company of America, American Funds, Washington Mutual, Dodge & Cox Stock, Fidelity Contrafund, Fidelity Magellan, and Vanguard Index 500) are Large Cap funds.

One might think that, with all these pedigrees, the world of large caps might be scandal free, but with the recent lessons learned from Enron and WorldCom, we know that even the mightiest can fall from their lofty perches. Once again, we are reminded that when it comes to investing, there simply are no guarantees.

Looking at returns (using the annual returns of the S&P 500 from 1926 - 2004, including reinvestment of dividends ) we find that the best year for Large Caps was 1933 with a return of +53.99%. On the other hand, two years prior to that, in 1931, the return was a dismal -43.34%. Of the 78 years between 1926 - 2004, the S&P 500 posted positive returns for 56 of those years. To put it another way, therehave been more than twice as many up years as there were down years. Naturally, this is all past track record. The future holds no guarantees that this will continue.

Turning again to Large Cap mutual funds, it is important to note that most are “managed” funds, rather than “unmanaged” funds like the S&P 500 Index. This simply means that most mutual funds have managers who pick certain stocks out of the large cap universe rather than follow an index of the entire universe. This not only creates return differences between the funds and the indexes, but also creates differences between the funds as well.

It may also be a good idea to check the dividend history of funds. While some funds specifically buy stocks with higher dividends, other funds could care less what dividends are paid. Normally, stock based mutual funds will pay dividends once a year (usually in December), but sometimes pay more frequently. Whatever the case, the amount of dividends can be important depending on the need for income.

Obviously, large companies shouldn’t be the only asset class considered for a well rounded portfolio. Mid-size companies and small-size companies are important to achieve proper asset allocation. However, for investing in well known companies that are truly the “movers and shakers,” nothing beats the Large Cap Stocks.

Home James!

Glenn (“Chip”) Dahlke, a senior contributor to the Living Trust Network, is a Registered Representative of Linsco/Private Ledger and a principal with Dahlke Financial Group. He is licensed to transact securities with persons who are residents of the following states: CA. CT, FL, GA, IL. MA, MD. ME, MI. NC, NH, NJ, NY.OR, PA, RI, VA, VT, WY.

If you have any questions or comments, Chip would love to hear from you. You may contact him at dahlkefinancial@sbcglobal.net. You may also contact him by going directly to the Living Trust Network web site located at http://www.livingtrustnetwork.com

Copyright 2005. LivingTrustNetwork, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without the written consent of the Living Trust Network, LLC.

When you change jobs, what do you do with the money you have accumulated in you company retirement plan? Tthe average American will have to answer that critical question eight times during a 40-year career. While retirement plan assets are typically as mobile as the workers themselves, nearly 60% of people who change jobs choose to take a cash distribution, despite the drawbacks.

Taxes – Now or Later?

A cash distribution may trigger a 20% federal withholding tax, as well as a 10% tax penalty if you are younger than 59 ½. It will also mean you’ll no longer enjoy the potential benefits of tax deferral that a qualified retirement plan offers. Even small retirement plan contributions may help you pursue large financial goals when earnings are allowed to compound tax deferred over time. You want to maintain your tax-deferred status as long as possible to maximize your gains.

Leave the money in your former employer’s plan.

Your former employer is required to allow you to leave the money where it is, if the balance exceeds $5,000. You can no longer contribute to the account, but you can still decide how the existing assets are invested.

Roll the money into an IRA.

By rolling the money directly into an individual retirement account (IRA), you’ll avoid taxes that you’d incur if you took a cash distribution, plus you are able to enjoy the benefits of tax deferral. An IRA also has greater investment flexibility because unlike a company retirement plan, an IRA gives you the freedom to select mutual funds and other securities that best suit your needs.

Roll the money into your new employer’s plan.

By rolling the money directly into your new plan, you’ll avoid taxes that could eat away at a cash distribution. It’ll also simplify your investment paperwork since you’ll only have one set of investments to monitor. Even if you’re not immediately eligible to contribute to the plan at your new job, you may still be able to roll the money over right away.

Make a Choice That Fits Your Goals.
If you plan to change jobs, don’t take the money and run. Meet with your investment representative to explore alternatives and consider the potential impact on your long-term financial goals.

Roger Sorensen

America’s Financial Guide can be found at ==>http://www.Slave2Work.com Subscribe to Money Basics via http://www.slave2work.com/ezine.html

Slave2Work.com - Are you ready for financial freedom?

The Bollinger Band theory is designed to depict the volatility of a stock. It is quite simple, being composed of a simple moving average, and its upper and lower “bands” that are 2 standard deviations away. Standard deviations are a statistical tool used to contain the majority of movement or “deviation” around an average value. Bear in mind that when you use the Bollinger Band theory, it only works as a gauge or guide, and should be use with other indicators.

Normally, we use the 20-Day simple moving average and its standard deviations to create Bollinger Bands. Strategies some investors use include shorter- or longer-term Bollinger Bands depending on their needs. Shorter-term Bollinger Bands strategies (less than 20-Days) are more sensitive to price fluctuations, while longer-term Bollinger Bands (more than 20-Days) are more conservative.

So how do we use the Bollinger Band theory?

The Bollinger Band theory will not indicate exactly which point to buy or sell an option or stock. It is meant to be used as a guide (or band) with which to gauge a stock’s volatility.

When a stock’s price is very volatile, the Bollinger Bands will be far apart. In technical indicator charts, this is depicted like a widening gap. On the other hand, when there is little price fluctuation, hence low volatility, the Bollinger Bands will be in a tight range. This is depicted as narrow “lanes” along the chart.

As for how we use the Bollinger Band theory, here are a couple of guidelines.

History shows that a stock usually doesn’t stay in a narrow trading range for long, as can be gauged using the Bollinger Bands. Strategies include relating the width with the length of the bands. The narrower the bands, the shorter the time it will last. Therefore, when a stock starts to trade within narrow Bollinger Bands, we know that there will be a substantial price fluctuation in the near future. However, we do not know which direction the stock will move, hence the need to use Bollinger Bands strategies together with other technical indicators.

When the stock starts to become very volatile, it is depicted in the chart by the actual stock price “hugging” or staying very close to either the upper or lower Bollinger Bands, with the Bands widening substantially. The wider the Bands are, the more volatile the price is, and the more likely the price will fall back towards the moving average.

When the actual stock price moves away from the Bands back towards the moving average, it can be taken as a signal that the price trend has slowed, and will move back towards the moving average. However, it is common for the price to bounce off the Bands a second time before a confirmed move towards the moving average.

As usual, and for the Bollinger Band theory in particular, it should be noted that individual indicators should not be used on their own, but rather with one or two additional indicators of different types, in order to confirm any signals and prevent false alarms.

Steven is the webmaster of http://www.option-trading-guide.com If you would like to learn more about Option Trading or Technical Analysis, do visit for various strategies and resources to help your stock market investments.

Stock Trading Systems >> Day Trading Book … Beyond Stock
Market Software … Momentum Traders Guide BY.-
http://www.MomentumStockTrading.com

Profitable day traders and investors recognize that knowing how
to pick and trade stocks with momentum is among the fastest and
most effective ways to harvest BIG piles of cash in the stock
market.

The problem is that if you don’t know which stocks to look for
and how to approach them while limiting your risk, you won’t
even get close to making some profits.

You don’t necessarily have to trade momentum hot stocks all the
time. But you can learn how to take advantage of them when you
encounter the best opportunities.

If you want to learn how to trade and pick hot momentum stocks
in a simple yet effective way every week, just log on to
http://www.MomentumStockTrading.com right now and discover what
youve been missing.

Take a Look at The Valuable Strategies and Bonuses that You can
access today:

+ $ Trading Psychology. Realistic mindset of experienced
momentum traders. The ones who make more money look at every
opportunity in certain ways.

+ $ Short Selling Opportunities. Focus on these strategic
scenarios and short stocks like a pro over and over without
getting confused. The other side of the golden coin: Shorting to
profit when the stock goes down.

+ $ How to pick momentum stocks every day in an easy and fast
way. Pure gold over and over.

+ $ What kind of stocks to look for and how to classify the
opportunities for greater trading profits. Come and get a
truckload of $$$$$ from now on.

+ $ Profitable momentum trading without technical analysis.

+ $ What kind of stocks and “opportunities” to avoid and why.
Save thousands in losses from trades gone bad in the future.

+ $ The “little details” you should look for before you consider
a momentum daytrade.

+ $ Things to consider when trading low float momentum stocks

+ $ Buying micro cap and small cap stocks with momentum.

+ $ Trading NASDAQ stocks or OTCBB - OTC stocks ?

+ $ Getting ready for the trading breakout. Position your self
for success.

+ $ Will my market rally last more than 5 minutes or less? What
to do

+ $ It’s all about the stock rally. The rest is just a bunch of
elegant B.S. Learn to focus on what matters.

+ $ How to lock in profits on the way up

+ $ Should I hold overnight trading positions for a possible gap
up ?

+ $ What to do if the stock rally stops moving. Cash in your
pocket !

+ $ Level 2 trading ( L 2 ) strategies for momentum stocks.

+ $ Time frames for trading stocks with momentum, Pros and Cons

+ $ Premarket stock trading strategies and tips.

+ $ Trading momentum stock opportunities during market hours.
$$$$

+ $ Trading at the open or waiting till the dust settles to make
your move. It depends. This can make a big difference in your
results.

+ $ Stocktrading during lunch hour ?

+ $ After hours trading tactics and tips. Super value, yours
included !

+ $ Become an expert of your hotstock watch list.

+ $ You don’t need to watch the stock market all day. Profitable
stock traders have a better way.

+ $ Stock trading is not a job. Save money and don’t make it
another rat race.

+ $ Watching charts and stocktrading all day ? Overtrading is
not the way to go. Learn why !

+ $ Testing the high probability trading plan

+ $ Stress free day trading tips and strategies for beginners
and experienced stock traders. Your time is here!

+ $ Real examples of recent on-line trading opportunities. Learn
in a practical way.

+ $ Powerful stock market resources and tools for day trading
with our strategy. Discover momentum stocks in a snap and choose
only the best every day. No waisting time. Its all about results
!

Just picture your self waking up EVERY morning fresh and
confident knowing you can identify, validate and take advantage
of great momentum trading opportunities that are capable of
generating you very profitable results.

For more information visit us today at Momentum Stock Trading

http://www.MomentumStockTrading.com

Before every protective put trade it is possible to calculate
your anticipated maximum loss. Use the formula: (stock price
minus strike price) plus option price. For example, suppose you
will pay $30.00 for your stock, and you want no more than a $3.50
loss on the position. Then you would choose the $27.50 strike
put which costs $1.00. Following the formula, you take your
stock price ($30.00) and subtract the put’s strike price (27.50)
which leaves you $2.50. To this $2.50 loss, you then add the
amount you spent on the option ($1.00), which gives you a
combined, maximum loss of $3.50 for this position. You can set
your loss limit by the strike price of the put you buy and the
cost of the put. This formula will work every time. Remember,
stock loss, (stock price paid - strike price), plus option cost
(option price) equals maximum potential position loss.

The protective put strategy, when used correctly, will allow
investors to take advantage of the same opportunities that could
provide large potential gains, but without being exposed to the
extreme risks the position could potentially present. In these
scenarios, the protective put strategy deserves consideration.

For example, a stock in the process of a steep decline would be a
good opportunity to implement a protective put, when trying to
pick a bottom. Quite often, stocks experience bad news or break
down through a technical support level and trade down to seek a
new, lower trading range.

Everyone wants to find the bottom to buy and go long, catching
the technical rebound, or to start accumulating the stock at
lower levels for the longer term.

There is a potential for a very big reward if you pick the
“right” bottom. However, with the big potential gain comes the
big potential loss that is common in these types of risk/reward
scenarios. Here is a perfect opportunity to employ the protective
put strategy! It will provide protection against substantial
loss, while allowing room for potential gains if the stock should
bounce.

Remember, the protective put allows for a large potential upside
with a limited, fixed downside risk. If you feel that the stock
has bottomed out and is starting to consolidate, you purchase the
stock and then purchase the put at the same time as insurance
against further decline in the stock.

If you are right, and the stock runs back up, the stock profit
will well exceed the price paid for the put. Once the stock
trades back up, consolidates, and develops its new trading range,
the need for the protective put is over. At this time, if you
still like the stock and want to hold on to the long position,
you could always start selling calls against it.

Use the formula for maximum loss discussed earlier. Calculate the
loss in the stock and the amount you paid for the put and add
them together for your maximum loss in this position. The
protective put has limited your loss.

Maximum Loss = (Stock Price – Strike Price) + Option Price

This protection will save you enough money when you pick a false
(wrong) bottom that you may, if you like, try to pick the bottom
again at a lower point. The exhaustion scenario, as described
here, is a perfect opportunity to apply the protective put
strategy.

As seen with the exhaustion example, the protective put strategy
is best used in situations where the stock has a potential for an
aggressive upside move and the chance of a big downside move.

Another potential opportunity for using the protective put is in
combination with Technical Analysis. Technical Analysis is the
study of charts, indicators oscillators, etc. Charting has
proven to be reasonably accurate in forecasting future stock
movements.

Stocks travel in cycles that can and do form repetitious
patterns. These patterns are predictable and detectable by the
use of any number of charts, indicators and oscillators.

Although there are many, many forms and styles of technical
analysis, they all have several similarities. The one we want to
focus on is the technical “break-out.” A break-out is described
as a movement of the stock where its price trades quickly through
and beyond an obvious “technical resistance” or resistance point.

For a bullish breakout, this level is at the very top of its
present trading range. Once through that level, the stock is
considered to have “broken out” of its trading range and will now
often trade higher, and establish a new higher trading range.

The “break-out” is normally a rapid, large upward movement that
usually offers an outstanding potential return if identified
properly and acted upon in a timely fashion. However, if the
break-out fails, the stock could trade back down to the bottom of
the previous trading range.

If this were to happen, you would have incurred a large loss
because you would have bought at the upper end of the previous
trading range. As you can see the “break-out” scenario is an
opportunity that has large potential rewards but can on occasion,
have a large downside risk.

However, if you were to apply a protective put strategy with the
stock purchase, you can drastically limit your downside exposure.
For instance, say you were to buy the 65 strike put for $2.00.
If the stock trades up to $75.00, you would make $9.00 if done
naked but only make $7.00 if done with the protective put.

This difference is the cost of the put. This $2.00 investment is
more than worth it should the stock go down. If the break-out
turns out to be a “false” break-out and the stock reverses and
trades down, your 65 put will allow you to sell your stock out at
$65.00 minus the $2.00 you paid for the put. This limits your
loss to $3.00 instead of a potential $8.00 loss. This is a much
better risk/reward scenario.

Most professional traders, including day traders and swing
traders can reap huge rewards for the protective put strategy.
The reason is in how most traders attain profits and losses.
Normally, successful traders make a little money on a consistent
basis. They make a little bit day in and day out. But when it
comes to losses, they lose in large chunks. They spend a month
building up profits only to lose that money in one day usually in
one stock. If a trader could figure out how to avoid even a
handful of these large losses, his or her profitability would
soar. My answer is to start using the protective put when buying
on breakouts and when bottom fishing.

_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/
Amazing Options Trading Strategies For Safer Investing
and Explosive Profits. Discover how to protect your
investments with the leveraged power of options. Step
by step video tutorials show you how. Click here now:
http://www.options-university.com
_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/_/

Besides educating yourself, the best way to find undervalued
investment is to have lots of investing idea. Having investing
idea allows you to compare investment alternatives and pick the
best one.

People sometimes lament that they seldom find stocks that fill
the criteria as undervalued. How can you find a 0% growth stock
at a P/E of 13.4? A lot of companies are trading at a P/E of 20
or more. How can you find companies that have positive net cash?
Lots of companies have more debt than they have cash.

All of the above is true. Most companies do not trade at
undervalued territories. A lot of them also incur a lot of debt
and their balance has a negative net cash balance. And that is
why you will be rewarded when you can find undervalued stocks.
Think about it. If a 0 % growth stock is traded at a P/E of 10
and its fair P/E value is 13.4. This is a 34% potential return.

To get that kind of potential return, investors need to sort out
good companies from the bad and be more selective in buying a
stock. This is where investing idea comes into place. When you
receive plenty of investing idea, you can be more selective in
buying the common stock. So, where can you find investing idea?

One good investing idea source is stocks that fall near its 52
week low. Businessweek screener seems to provide a decent neatly
arranged results. For links, you can visit our commentary
section and read this article. Another good source for investing
idea is by reading financial news from various publications such
as The Motley Fool, CNN, thestreet.com and smartmoney. Stocks
that fall hard are sometimes mentioned here.

Finally, a good source of investing idea is by regularly
visiting our commentary section at:
http://www.noviceinvesting.com. You may not agree with our
assertion but at the very least it will open your mind about
other possibilities and industries. The best thing of all is
that it is free ! You can access useful commentary from various
sources with zero cost. What else can you ask for?

It’s hard to believe, but the end of 2005 and the beginning of 2006 is just around the corner. I’m hesitant to say that the year’s been uneventful - it’s been very eventful. But as far as investors are concerned, let’s just say it’s been unfruitful. The Dow, the NASDAQ, and the S&P 500 are all in the red for they year. And while there’s still time left for the market to end the year on a positive note, it’s not going to be a big win like 2004 was…..not even close.

Yet, I’m still very optimistic about the coming year, even though conventional wisdom says we shouldn’t be. As of right now, we’re facing a third major hurricane in the gulf, and even though this one isn’t threatening the oil industry quite as much as Katrina and Rita did, Wilma is targeting the citrus industry, as well as the bulk of Florida’s tourism areas (fortunately we’re in the slow period for vacationing). Oil is just off of all-time highs too, and inflation is persistent. So what’s to look forward to? There are a few opportunities I see on the horizon. Of course, you have to know how to handle it. But then, that’s always the case.

Unfortunately (or fortunately, depending on your point of view) I won’t be able to detail everything in this brief space today. It will probably take a couple of weeks to really lay everything out the way I see it happening in 2006. The outlook involves sectors, styles, and even crosses borders. For today, I’d just like to look at a few market capitalization and style (growth versus value) strategies we’ll be using for our money management clients in the very near future.

To put this strategy into simplest terms, all good things come to an end. Or to put it another way, what goes up must come down. There are actually about a hundred ways to say it, but they all mean the same thing - things change. As for the market’s pockets of strength, they change too. Interestingly, although not surprisingly, the market’s next strong pockets are reasonably predictable.

Being mostly value-seekers, our interest is stronger in value prospects than it is in so-called growth stocks. Looking back over the last several years at small-cap, mid-cap, and large-cap value stock performance, there’s one clear trend…..that none of them were consistent leaders, nor consistent laggards. While they all generally moved in the same direction, all of them claimed top honors about the same number of times. All of them were also at the bottom of the barrel an equal number of times.

So what’s that got to do with picking a market-cap-based value group for the coming year? A lot. The one you want to pick for the coming year is the one that fell in the middle of the three in the previous year. Depending on the particular index you use, on average, you’d outperform the broad market between 1 and 2 percent each year. If you’re wondering why (and I hope you are), the basic premise is simple - the top performer’s best days are usually behind it, while the bottom-feeder may have serious problems that can’t be resolved in a year. That leaves the middle-performing index as the one that still has some untapped potential, but isn’t suffering for other reasons.

Not worth the trouble? Think again. After 20 years of applying this strategy, your portfolio would have produced returns that topped basic indexing by 20 to 40 percent.

So, that said, which value group is in the middle so far this year? The S&P 500 Value index is down by 3.0 percent YTD, the S&P 400 Value index is up by 1.9 percent YTD, and the S&P 600 Value index is down about 0.5 percent YTD (yeah, it’s been a pretty ugly year across the board). Based on these results so far, are we really willing to think about small-cap value as one of our core holdings for 2006? Well, yes, and no. The answer is ‘yes’ with respect to the methodology, even though the year has been a little stale. But the answer is ‘no’ for two reasons. First, the year isn’t over yet, and a lot can happen in two months. The second reason is just that these tepid results may not be distinct enough to really separate the three groups.

To combat that second problem, let’s take a look at how these same indexes did over the last 52 weeks. After all, market trends don’t have to wait on the calendar. Since last October of 2004, the S&P 500 Value Index is up by 7.9 percent, the S&P 400 Value index is up by 15.8 percent, and the S&P 600 Value index is up by 13.5 percent. If those rankings seem familiar, it’s because it’s the same order of performance that we have year-to-date….and the small-caps are still in the middle. That sure makes it a lot easier to apply the strategy now, so, we’re already shopping for an entry point.

This is particularly exciting, because we have an inherent bias for small-cap value anyway. Historically, it’s been the markets best-performing segment.

On the flipside, don’t interpret this as a complete portfolio solution. Our small-cap value holding, once we’re in it, will be a core piece of our pie, but there are a lot of other ingredients we want to add. One such piece will be a style and market-cap based holding designed to contrast the small-cap value position. That means it could be a growth investment, and it will definitely be a large-cap or mid-cap position (note that were not opposed to holding two value-based indexes). Though, it will probably not be as big of a stake as our small-cap value position is.

That’s enough for now. We’ll look at other strategies and ideas in future articles, so be on the lookout for those.

James E. Brumley is BigTrends Sr. Research Analyst. Prior to joining the BigTrends team, James was an Investment Specialist with discount broker Charles Schwab. During his time there, James crafted portfolios for Schwab’s retail clients, specializing in allocation optimization. This fundamental approach has also proven to be a useful addition to BigTrends technical analysis style. After joining BigTrend’s staff in 2002 as a Research Analyst, James was promoted to Senior Analyst in 2003.

James writes the Weekly Market Outlook, Sector Spotlight, the MidWeek Update, as well as the Tuesday/Thursday edition of the Daily TrendWatch. His straight-forward approach to writing about the market has quickly made his commentary a favorite among BigTrend’s regular readers.

In 2005, James spun-off from BigTrends to develop a separate money management arm called Bluegrass Portfolio Management. This managed account program utilizes all the fundamental ideas he used in building portfolios at Schwab, as well as all the technical analysis tools that make BigTrends so successful.

One of the most motivating aspects about day trading is to pick stocks that are breaking out and rising fast. Some stocks can go up 30% in a matter of minutes or double in price during the same trading day. Knowing how to find these beautiful jewels can be worth a long lasting gold mine for any day trader.

This is why day trading can be such a profitable activity. Your job as a trader consists in finding solid stock opportunities that are able to generate you the greatest rewards in the least amount of time.

Experienced day traders are always looking for those potentially profitable opportunities while at the same time following a strategy that helps them reduce their risk. Knowing when to “ Get In “ and when and why to “Get Out” are essential for building long term profitability.

One thing that you have to take into account is that day trading is a very competitive field and in order to succeed you need to concentrate on a set of simple strategies that you can implement without hesitation.

Day trading doesn’t have to be complicated as many people perceive. But you do need to follow a well organized set of strategies and tactics that can help you take advantage of certain market scenarios, that once you master them, you can aspire to replicate profitable trades with consistency.

Momentum Stock Pick helps day traders and investors pick hot stock trading opportunities every day at http://www.MomentumStockPick.com.

There are a number of key reasons why individuals and businesses consider going offshore for asset protection purposes.

The asset protection advantages the offshore world offers extend from protecting a business from excessive taxation to opening doors to enable wealth and asset enrichment via the utilisation of offshore investment opportunities.

Until relatively recently creating and running a business offshore was something done only by the super wealthy or by large corporations, but today establishing an offshore company couldn’t be easier and more and more people are beginning to see personal advantages in operating their business in this way.

Not only are there many cost effective offshore company solutions available nowadays but it is possible to purchase a fully functioning and legal off the shelf company in countries with low to no taxation and unrestrictive reporting requirements and begin your business trading the same day!

The result of making the offshore world far more accessible is that many more average people are finding that they can run their businesses legally from an offshore location and in so doing protect and benefit themselves and their assets.

Ideally the primary asset protection advantages of running a business from an international position result in increased profits and security and the advantages include: -

Tax Reduction

Tax eats away at assets and therefore tax reduction is the number one advantage people seek to gain by going offshore.

An offshore company or trust arrangement when properly structured may significantly reduce the levels of an individual’s or business’ tax liability and thus protect underlying assets from being eaten away through excessive and restrictive taxation.

Straight Asset Protection

Placing company or personal assets out of the reach of an opponent or prospective creditor is straight asset protection. By making assets unattractive or legally unobtainable by third parties you achieve straight asset protection.

Because of the nature of society today where litigation is par for the course, many more business professionals are at greater risk of legal action being taken against them, and many more individuals face losing out in acrimonious divorce battles - therefore protecting one’s assets offshore can be a very effective way to ensure long term asset security.

Offshore Investment Opportunities

There are far more potentially high returning investment opportunities available offshore than domestically. Also, as many of the world’s stocks are traded outside your country of residence there could be a significant advantage to trading offshore.

Greater Privacy

Developed countries are increasing the levels of surveillance we are all placed under; as a result many more people grow concerned about their growing lack of personal privacy. By moving business activities and assets offshore this can directly assist with increasing personal privacy and the confidentiality of business and financial transactions.

Of course, it goes without saying that the privacy available will not protect people who are engaged in serious criminal activity.

Estate or Inheritance Tax Planning

We are all at risk of loosing a considerable amount of our estate in income and excise taxes when we die. With carefully structured and well managed offshore solutions such as trusts it is possible for some people to reduce their estate’s liabilities and therefore pass the estate’s assets to their heirs with minimum tax and liability problems.

These are just the five main reasons people seek to exploit the world of offshore opportunities for asset protection purposes; there are many more potential advantages to going offshore but they all depend on an individual’s personal situation and requirements. It is essential to seek professional advice before considering going offshore and this article does not constitute advice in that sense.

Rhiannon Williamson is the publisher of ShelterOffshore.com - the online resource for offshore, expatriate and international investors.

For personalized investment and offshore advice, readers of Shelter Offshore benefit from the site’s strategic alliance with deVere and Partners, the world’s largest offshore financial advisory. Visit the deVere and Partners offshore advice service page to find out more.