Category: Investment 101:



I remember all of my bosses. Some were bad. Most were good.

 

But only one was, in the best possible way, truly memorable.

 

Unforgettable bosses possess qualities that may not show up on paper but always show up where it matters most — in the minds and even hearts of the people they lead.

 

Here are some of the qualities of truly unforgettable bosses:

 

1. They believe the unbelievable.

 

Most people try to achieve the achievable; that’s why most goals and targets are incremental rather than inconceivable.

 

Memorable bosses expect more — from themselves and from others. Then they show you how to get there. And they bring you along for what turns out to be an unbelievable ride.

 

2. They see opportunity in instability and uncertainty.

 

Unexpected problems, unforeseen roadblocks, major crises… most bosses take down the sails, batten the hatches, and hope to wait out the storm.

 

A few see a crisis as an opportunity. They know it’s extremely difficult to make major changes, even necessary ones, when things are going relatively smoothly.

 

They know reorganizing an entire sales team is accepted more easily when a major customer goes under. They know creating new sales channels is a lot easier when a major competitor enters the market. They know reorganizing manufacturing operations is a lot easier when the flow of supplies and components gets disrupted.

 

Memorable bosses see instability and uncertainty not as a barrier but as an enabler. They reorganize, reshape, and re-engineer to reassure, motivate, and inspire — and in the process make the organization much stronger.

 

3. They wear their emotions on their sleeves.

 

Good bosses are professional.

 

Memorable bosses are highly professional and yet also openly human. They show sincere excitement when things go well. They show sincere appreciation for hard work and extra effort. They show sincere disappointment — not in others, but in themselves. They celebrate, they empathize, they worry. Sometimes they even get frustrated or angry.

 

In short, they’re human. And, unlike many bosses, they act as if they know it.

 

Professionalism is admirable. Professionalism — with a healthy blend of humanity — is inspiring.

 

4. They protect others from the bus.

 

Terrible bosses throw their employees under the bus.

 

Good bosses never throw their employees under the bus.

 

Memorable bosses see the bus coming and pull their employees out of the way often without the employee knowing until much, much later… if ever, because memorable bosses never try to take credit.

 

And if they can’t, they take the hit. (And later speak privately to the employee in question.)

 

5. They’ve been there, done that… and still do that.

 

Dues aren’t paid, past tense. Dues get paid each and every day. The true measure of value is the tangible contribution we make on a daily basis.

 

That’s why no matter what they may have accomplished in the past, memorable bosses are never too good to roll up their sleeves, get dirty, and do the “grunt” work. No job is ever too menial, no task ever too unskilled or boring.

 

Memorable bosses never feel entitled, which means no one feels entitled to anything but the fruits of their labor.

 

6. They lead by permission, not authority.

 

Every boss has a title. That title gives them the right to direct others, to make decisions, to organize and instruct and discipline.

 

Memorable bosses lead because their employees want them to lead. Their employees are motivated and inspired by the person, not the title.

 

Through their words and actions they cause employees feel they work with, not for, a boss. Many bosses don’t even recognize there’s a difference… but memorable bosses do.

 

7. They embrace a larger purpose.

 

A good boss works to achieve company goals.

 

A memorable boss also works to achieve company goals — and achieves more than other bosses — but also works to serve a larger purpose: to advance the careers of employees, to rescue struggling employees, to instill a sense of pride and self-worth in others. They aren’t just remembered for nuts and bolts achievements but for helping others on a personal and individual level.

 

Memorable bosses embrace a larger purpose, because they know business is always personal.

 

8. They take real, not fake risks.

 

Many bosses, like many people, try to stand out in some superficial way. Maybe through their clothes, their interests, or a public display of support for a popular initiative. They do stand out but they stand out for reasons of sizzle, not steak.

 

Memorable bosses stand out because they are willing to take an unpopular stand, take an unpopular step, accept the discomfort of ignoring the status quo, and risk sailing uncharted waters.

 

They take real risks not for the sake of risk but for the sake of the reward they believe possible. And by their example they inspire others to take risks in order to achieve what they believe is possible.

 

In short, memorable bosses inspire others to achieve their dreams: by words, by actions, and most importantly, by example.

 

I would want to add two more crucial pieces to this list.

One is that they trust their team. I’ve had bosses that operate on a need-to-know basis and keep certain pieces of information under wraps or limit access to tools/man power because they think we’re not protective of the brand or we’ll exploit the knowledge for personal gain. I’m here to succeed and grow and that means helping the company to succeed to the best of my ability. Compartmentalizing knowledge can only prevent me and my colleagues from doing what we know how to do.

And second is that they are willing to surround themselves with people who are smarter than they are without fear that those people will overshadow them. An intelligent team headed by a self-confident leader can only do great things in a company!…jp

 

8 Qualities That Make Great Bosses Unforgettable..with 2 added from myself..jp/ Bluewaters2u

#Bluewaters2u

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7 Sure Signs That You Should Not Be Playing The Stock Market

(at least not the Penny Markets anyway)

stock-market Bronze Bull

Pump & Dumps Schemes in the Stock Market continued..jp

1. You Believe That The Share Price of Your Penny Stock Is Down Because of Shorting

No, no, no! Impossible!  We’ll say it again.  It is impossible for a significant short position to exist in any penny stock.  Anybody who tells you otherwise is conning you.  Any tout who tells you that his “pick” went down because of shorting is a liar.  There is only one reason for a penny stock to go down in price.  And that is because sellers (mostly insiders) are flooding the market with stock.

2. You Believe That There Is Such A Thing As A “Paid Basher”
The fact of the matter is that most penny stocks are scams.  The regulators have made it far too easy for con artists to infiltrate the stock market with ridiculous schemes, most of which are designed to dump worthless stock onto an unsuspecting public.  In order for these cons to get you to buy their stock, their company has to be “talked up” and that is through paid promoters who have developed email or snail mail lists by advertising their own feigned success in the penny markets.  Some of these promoters are so good at conning their audience, they even convince subscribers to pay for their membership.  Most, but not all, will specify some sort of compensation for their promotion, as required by law.

When a penny stock goes down, touts and company insiders will often invoke the idea of shorting as the cause.  As discussed previously, shorting penny stocks is so prohibitive, that it never causes the demise of the price of a penny stock.  Still, people will try and convince you that anybody speaking negatively about the prospects of a penny stock is a “paid basher” out to aid the shorts.   As there is no upside to paying somebody to speak negatively about a penny stock, paid bashers are a fairy tale.  Same goes for these fantasy so-called “short and distort” schemes.  If you believe that the share price of a penny stock can go down because of a paid basher, GET OUT OF THE MARKET NOW!

3. You Think That A Stock Can Have More Buyers Than Sellers or Vice Versa
Every trade requires a buy and a seller.  Period.  There is no such thing as more buys than sells or more sells than buys.  Think of a stock as a car.  If you are looking to buy, you know how much you are willing to spend.  Same with a stock.  You make a bid and if the seller is willing to sell it to you at that price, then you have a deal.  But there is still a buyer and a seller.  Same if you are selling a car.  You know what price you want and if the buyer meets your price, then you have a deal.  Once again, you still have a seller and a buyer.  It takes two to tango and two to complete a transaction. A stock, like a car, boat or house is only worth what somebody will pay for it.

4. You Think That Penny Stocks Can Be Charted


The concept of relying on charts to determine when a penny stock should be bought and sold is one of the most ridiculous theories out there.  Chartology is unreliable at the best of times even with legitimate stocks.  Penny stocks are at most times manipulated and Bolinger Bands or Candlestick analysis cannot ever be relied on to indicate buy or sell signals.  In fact, applying these theories or others like them, is guaranteed to give you a wrong answer every time. Even those that devised these analytical techniques will tell you that they cannot apply to penny stocks.  Once a promotion of a penny stock ends, there is no logic as to where it will trade, except that it will trade lower.

5. You Believe That If The Company Makes A Statement, It Is Guaranteed to Be Truthful
There is still the perception out there that regulators like the SEC check out every statement a company make for legitimacy.  Or that the regulators will catch and prosecute a stock schemer every time.  Not even close to true.  Most securities fraud artists, especially in the penny markets, get away scot-free.  Even those that are eventually prosecuted, can spend years spinning their cons before they are stopped.

A press release or SEC filing issued by a company involved in a pump and dump scheme rarely speaks the absolute truth, if at all.  At a minimum, the truth is distorted with a positive bent to make the announcement seem better than it is.  Many are just outright fabrications.  It bears repeating, that you should look for the caveats in announcements, which will eventually lead to an easy out for the announcer.  For example, financing of up to x dollars.  An option to acquire…  Will buyback up to x dollars of stock from time to time at the discretion of the Board of Directors.  Our favorite term is “best efforts”.

6. You Believe That Paying A Tout For Penny Stock Picks Makes the Pick More Legitimate
It is unfathomable that some touts garner fees from their subscribers.  These are promoters getting paid from both sides.  Almost always, they are promoting the same stock that the “free” touts are promoting.

7. You Believe That Trading In Penny Stocks Is Indicative of The Major Markets
We laugh when we hear someone claim that their penny stock was down because the DOW was also down on the day.  How preposterous.  Except perhaps in the event of a horrendous day on the major markets (like a crash), when everyone is jittery, penny stocks are absolutely not indicative of the major markets.  Most penny stocks go up because of independent promotions and most go to down when the promotion ends or insider selling weighs on the share price.  The performance of the DOW or any other major index generally has no relevance to the performance of penny stocks.

Wall St plaqeon wall

Facebook Group: JP’s Investment Round Table

Sources: Pumps & Dumps, Blue’s research Team

http://www.pumpsanddumps.com/p/its-pump-dump.html

Blue’s Comments / JP

I will continue to share this info to all that want to read it..I can’t say enough on how important it is to arm yourself with knowledge before trading in any market with the Stock Market playing field..It is my hopes to help you to be a better Investor armed with good Information to help you to level out that playing field the best you can..thanks and good luck with your Investments..jp

7 Sure Signs That You Should Not Be Playing The Stock Market


Pump & Dumps Schemes in the Stock Market continued..jp

Wall St plaqeon wall

Don’t ever let go of the notion that stock touts are not working for you, no matter how magnanimous they sound.  They are working for their clients, namely the insiders who hired them to them to promote, market and pimp their stock.  These touts rely on the success of their current promotion to be able to get them future clients and promotions.  Their success is gauged by their ability to separate you from your money.  As a result, they will say anything to make you believe that they are credible and their clients are the real deal.

Here are some of the common lies a tout will spout in order to gain credibility for himself and his client:

1. AS SEEN ON TV

as seen on TV

Touts often like to make themselves sound important and credible, concocting lies about their connections and visibility.  One of the more common lies they post on their website is the “As Seen On” boast where they’ll post the logos of television networks and important websites to give you the impression that they’ve been relied on as a source of information by journalists.  This is an out and out lie, as no legitimate media is going to rely on these hustlers for any information.  The only time you’ll may ever seen a penny stock tout on TV is if one is busted for running a massive stock fraud.  In fact, we’re pretty sure that any of these news organizations would have attorneys issue a cease and desist letter if they got wind of their trademarked logos being used for these devious schemes.

2. CLAIMS OF RESEARCH
“We are working hard and researching companies so that we can bring you our next pick,”  The only research these guys are conducting is to find the next insider who will write them a check.  Then the “exhaustive” research they’ve done on their client company will consist of parroting the company’s press releases within the tout’s own mailings.  They are not “discovering” undervalued plays or finding “unique opportunities” or presenting you a “revolutionary” company.

3. PREDICTIONS OF ASTRONOMICAL GAINS 
“Easy 3 bagger!” or “Is this stock going to double tomorrow?”, or “This could Soar 300% tomorrow!”.  Not only are these kinds of price predictions an absolute indicator of a pump and dump, they are 100% illegal.  It is fine to set a price target based on solid research.  But making outrageous prognostications of ridiculous increases in a short period of time is fraud.  And many have gone to prison for it.

4. PREPOSTEROUS NOTIONS
“Is GOOGLE about to buy out this company?” You get this kind of rhetorical question a lot from touts trying to put a bug in your ear.  Just as illegal as making ridiculous predictions of share price increase, you can be guaranteed that whatever con job the tout is trying to make you believe, it is never going to happen.

5. FANTASY RESULTS 
Touts always like to use the highest attained share price as a sign that “they were right”  Often they will give only partial reports on the day’s trading of their promoted stock.  For example, they’ll boast that, “the stock gained as much as 700% today”, without mentioning that the stock closed down 50%.  Or they’ll broadcast the stocks gains without mention that only a few shares traded.  And they’ll always forget to talk about the stock tomorrow, when it has given back all of its gains and then some.

Our favorite boast is when they’ll reissue an alert on a past tout. “We’ve been right before on this stock and now we think it’s ready for another run.”  What they forgot to tell you is that the stock is now trading at a lower price than it was when they issued their first alert.  In other words, they forgot to tell you that a ton of people lost money on the stock directly because of this tout’s last recommendation!  They bought it at higher prices and were left holding the bag or sold at lower prices when the promotion ended.

6. BLAME IT ON THE SHORTS
If a stock promotion hasn’t been successful then it must be the fault of the naysayers and the shorts.  It couldn’t possibly be that nobody was buying the story or that insiders were selling into the promotion.  Comments in follow-up emails like, “We were battling with the shorts”, are a sure sign that a pump and dump program was on.  The battle was not with the shorts but with the insiders who were filling all the bids they could.  After all, if the so-called shorts were willing to sell stock at lower prices, then why wouldn’t they have hit bids prior to the promotion?

7. COMPENSATION DISPENSATION
Touts are required to disclose their compensation and name their benefactors within their promotional materials.  Many refuse to do so, thereby blatantly breaking the law.  Others will outright lie and claim that they were not compensated for their work.  Still others will overstate their compensation in order to give the appearance of a massive promotional effort thereby lending hope to an extended campaign.  This type of ruse has proven very effective in the past with claims of $2 million dollar promotional campaigns.  One would have to question how a company with a few hundred dollars in the bank would expect to pay for a $2 million dollar promotion if it was not by selling stock.  Furthermore, a reasonable person would question whether that two million dollars would not have been better spent on executing the company’s purported line of business.

The most common form of compensation disclosure fraud is the “Third Party” con.  Insiders hide their intent to sell stock by having some third party hire the tout, thus leaving the insiders free to claim innocence and lack of knowledge of any pump and dump scheme.  They will sometimes even take the step of  deflecting responsibility by issuing a press release refuting the promotion, deeming it “unauthorized” and claiming that it has no knowledge as to who the perpetrators of the campaign might be.  This often occurs after an inquiry by the SEC or other regulatory body.

8. SHELL GAME 
Occasionally, a tout will take the good news from one company and “accidentally” apply it to another, dormant penny stock with a similar name.  He’ll buy up a bunch of the dormant company’s cheap stock and then tout the real company’s news as if it belonged to the dormant company.  Although this “error” is usually recognized in fairly short order by investors, it still often enables the tout to cash in from those who did not immediately see that they were being conned.

9. BAIT & SWITCH 
To make their real pick seem more legitimate, a tout will often pick a real company to tout along with the scam company.  In this way, he is trying to get you lump in the two companies together and believe that they have similar legitimacy.  You’ll see a story about a $100 stock or two touted together with the story about a 5 cent stock and the hope is that you’ll think, “Hey maybe the 5 cent stock is a better buy.”

Sometimes, the tout will even make the scam even look like an after thought.  For example; “We really like gold stocks right now, which is why you should look at our favorites: ABX and GOLD. We think that GGRI could be an up and coming player too.”  While ABX and GOLD are legitimate and actual gold producers, GGRI was and is a sheet pink scam.

Facebook Group: JP’s Investment Round Table

SourcesPumps & Dumps, Blue’s research Team

http://www.pumpsanddumps.com/p/its-pump-dump.html

Blue’s Comments / JP

I will continue to share this info to all that want to read it..I can’t say enough on how important it is to arm yourself with knowledge before trading in any market with the Stock Market playing field..It is my hopes to help you to be a better Investor armed with good Information to help you to level out that playing field the best you can..thanks and good luck with your Investments..jp

9 Unscrupulous Things A Stock Tout Will Do To Gain Your Confidence.


Pump & Dumps Schemes in the Stock Market continued..jp

1. SPAM EMAIL

A legitimate company will never send you spam email. First of all, spam is illegal. Secondly, all the information that they would need to get out to the public is disseminated though press releases. If they need to make themselves aware to the public, they do it through a number of legitimate campaigns such as advertising, technology fairs and the like.

2. STOCK TOUTS
Sometimes emails received are from a free subscription based touting service. Sign-ups are how these touts get around spam laws. However, the intent is the same: to con you out of your money. These touts are paid by the people intending to dump their stock on you and usually say so in the fine print of their promotions. While their names are constantly changing currently subscriptions are available to GrowingStockReports.com, EpicStockPicks.com, Eastwind Research, Penny Stock Alerts and dozens of others. These sites often tout the same stock and there is a good reason for that. Touts usually own many touting sites and promote under various names in order to give the perception of a wide following for the particular stock they are touting. StocksGoneWild.com, and EpicStockPicks.com are sisters as are QualityOTC.com and BestOfPennyStocks.com.

MoneyTV with Donald Baillargeon is an example of another touting service paid for by insiders wishing to promote their stock under the perception of a TV interview show. The fact is that these insiders pay to be on this “show” and just about the only place you’ll see the interview is on MoneyTV’s own website. The insiders will usually disseminate a press release bragging about how they were interviewed on MoneyTV in an effort towards self-importance.

3. THE BACKGROUND OF THE OFFICERS
There’s an old saying, “Once a crook, always a crook”, and that’s why it’s always a good idea to see who is running the show at the company. Verify his resume. Most companies at one time, will offer up the qualifications of the President, CEO or other officers. Check his past involvement with public companies and the past performance of that stock. Chances are that if he’s been involved with past pump and dumps or other schemes, you’re now looking at one that is heading in that direction. Also, it is a good idea to look into court records of the individual(s) involved and their previous companies and see if anyone has been involved in civil or criminal proceedings, especially for fraud.

4. MESSAGE BOARD CONTENT
Yes, forums such as investorshub.com, siliconinvestor.com or the Yahoo Finance Message Boards usually contain contributions from child-like posters who are there for no other reason than to try and convince themselves that they made a good investment. But you can often find the touts or Investor Relations guys posting anonymously trying to keep the pom poms shaking and keeping the naysayers in check. They know that people who are apt to follow spam email or stock touts probably consider these message boards to be research so they want to bluster about their great investment and brag about all the money they are supposedly making. These are the guys who call anybody negative or questioning the company a “paid basher” (there is no such thing) or the ones who claim they have done their “DD” ( due diligence) when there is really none to be done. When you ask what DD they did, they will be vague with their answer or give a non-answer, with a “Because I said so” kind of response. They are also the ones who offer up lame excuses for down days such as naked short selling (does not occur in the penny stock market) or MM (market maker) manipulation. They are also the ones who make bold and baseless predictions like, “This is an easy ten-bagger” (stock price will increase by a multiple of ten).

5. PRESSURE TO BUY IMMEDIATELY
Stock touts and other promoters will do anything to keep you from thinking, using words like, “You’ll miss the boat” or Everyone in the know is getting in right now” or “the entire street is talking about this stock”.  They’ll even call you a fool if you “don’t buy right now”.  Sometimes, you’ll get the same high pressure email over and over again, a clear sign that they need more volume in order complete all the planned insider sales.  If you’re being given the “now or never” option, pick never and you’ll save money every time..  You’re being conned into participating in a pump and dump scheme.

6. CLAIMS OF BREAKTHROUGHS
Beware if the company claims to be an industry leader (do you really think a penny stock can be a leader in anything except possibly scams?) or has made a breakthrough discovery. A company with legitimate breakthrough technology is unlikely to be promoting itself on the penny stock market and will most likely have funding available to it within a variety of partnerships with major companies. These same companies will not likely be interested in dealing with a penny stock company.  Also, question the likelihood of a fairly new company being the leader in anything other than schemes.

7. PRICE AND VOLUME UPSWING ON NO NEWS
If a stock’s trading volume and price per share, show a recent and sudden increase, there is a good chance that the stock is being set up for a pump and dump. Especially if it has been involved in one in the past.

8. FINANCIALS (or lack thereof)
A legitimate company will always make recent financials available, even if it is a penny stock that is not required to file financials with the SEC. And if there are financials are they fabricated? Would a billion dollar company be found within a penny stock?  Also, compare the assets of the company to the market cap of its stock.  Is a company with a couple of thousand dollars in the bank really worth $100 million?

9. ISSUED AND OUTSTANDING
If nobody will tell you how many shares are out on the street or if that number is disproportionate to the stock price (a billion shares of a stock trading @ one tenth of a penny for example, stay away. Chances are a reverse split is coming and you will be left with only a few shares worth a fraction of what you spent.

10. LOOK AT THE HISTORY
Look at the history of trading on the company over the last year or so.  If you see sudden big jumps in share price and volume over a few days followed by just as quick drops in price and volume, chances are that the stock has been the subject of past pump and dumps programs.

11. CLAIMS OF SHORT POSITIONS
Sometimes you’ll hear that a particular penny stock will rise because of a tremendous short position in the stock and an upcoming short squeeze.  We’ll say it again.  Large short positions in penny stocks don’t occur because it is almost impossible for anybody outside of a market maker to take a significant short position in a penny stock.  There has yet to be the penny stock that had a rise in price because of  a short squeeze.  Very few brokerage firms will allow you to short penny stocks and those that will encounter so many restrictions that it is impossible for a significant short position to exist.

12. CANCELLATION OF SHARES AND BUYBACK PROGRAMS
For some reason, dupes consider the announcement of a cancellation of shares or share buyback programs to be signs of authenticity of the insiders’ intentions.  Insiders will announce these programs part and parcel with a pump and dump scheme.

The cancellation of shares, usually involving an insider’s return of some of his common stock to the company treasury, is usually meaningless because the insider(s) will never give back enough stock to relinquish control of the company.  And as along as the insider(s) have control, they are free to reissue themselves stock under a number of schemes, once they have sold enough to put their control in peril.  They also probably hold enough preferred shares, options and warrants to give themselves all the future shares they want.

Share buyback programs are usually announced with caveats such, “at the discretion of the board” and “from time to time”, meaning they might buy stock when they want, at the price they want and as many shares as they feel like.   There has yet to be a significant buyback program carried out on the penny stock market.

13. RASH OF NEWS RELEASES
If a previously quiet penny stock suddenly has a rash of news releases within a few days, chances are it is the subject or about to undergo a pump and dump program.

14. RELENTLESS TOUTING
If you are receiving email after email you can be sure that the insiders have not sold enough stock yet.  If a tout feels the need to send you more than one email, never mind several emails per day, then he is desperately trying to convince you to buy the stock.  If there are several touts who have suddenly come up with the same “idea” then you know that the insiders are pulling out all the stops.  The more touts  they hire, the more money they’ve spent meaning they have that much more stock to sell you.

15. PROMOTIONS AHEAD OF AN SEC FILING
If the company is a reporting company, take a look at the SEC filings.  Is a quarterly (10-Q) or annual (10-K) report about due, or worse overdue?  If the promotions are beating SEC filings to the punch, chances are they are trying to get you to buy the stock before the bad news is about to be revealed.  Bad news may include a significant increase in the number of shares outstanding or liabilities and/or a significant decrease in cash or other assets.

16. ANNOUNCEMENTS CONTAINING CAVEATS
Look for the caveats in press releases and SEC filings, which will may lead to an easy out of the announcement.  For example, financing of up to x dollars.  Anoption to acquire…  Will buy back up to x dollars of stock from time to time at the discretion of the Board of Directors.  Our favorite term is “best efforts”.  If the announcement contains an easy out, chances are it will be exercised.

Facebook Group:  JP’s Investment Round Table

SourcesPumps & Dumps, Blue’s research Team

http://www.pumpsanddumps.com/p/its-pump-dump.html

Blue’s Comments / JP

I will continue to share this info to all that want to read it..I can’t say enough on how important it is to arm yourself with knowledge before trading in any market with the Stock Market playing field..It is my hopes to help you to be a better Investor armed with good Information to help you to level out that playing field the best you can..thanks and good luck with you Investments..jp

16 Ways To Recognize A Pump & Dump Scheme


Anatomy Of A Pump & Dump

Continued series on Pump & Dumps Schemes in the Stock Market..Jp

World Stock Markets

 Pump & dumps are stock hypes, often illegal, but always ruthless and usually within the penny or micro cap market. The schemes are performed to artificially raise the trading volume and often the price of a stock (“pumping”) through a campaign of hype which may include misinformation and/or misrepresentation. This enables insiders or other large shareholders to sell their stock (“dumping”). Dupes purchase the stock and unwittingly create a façade of legitimacy. This can entice even more people to believe the hype and buy even more shares. Once the schemers have sold their shares, the pumping ends, and the share price plummets.

 There is only one reason that penny stock insiders spend money to promote their stock.  It is so that they can sell their own stock.  Often, dupes will buy into the story that, “We’re just trying to increase shareholder value”.  Well we challenge anybody to find a penny stock that has been the subject of a promotion and has been able to maintain its increased share price for more than just a few days.  The share price of a promoted stock will obey the law of gravity 100% of the time.  There is only one way to permanently increase shareholder value and that is through hard work and legitimate results.

Wall St plaqeon wall

 There is this perception that the purpose of a stock promotion is to increase the share price.  On the contrary, the purpose of a stock promotion is to increase trading volume.  An increase in share price is purely a bonus to the insiders selling.  In order for the pump and dump to be successful, bids must come into the market.  While bidding up the stock is preferable, the insiders are more concerned about getting buyers to take their stock at any price.  As they will never relinquish control, the insiders are always free to issue themselves new stock whether in lieu of payment for services rendered, by exercising stock options or warrants, or employee bonus programs.  Therefore, the price that the insiders get for their stock is of secondary importance

arrow going down red

Sources: Pumps & Dumps, Blue’s research Team

http://www.pumpsanddumps.com/p/its-pump-dump.html

Blue’s Comments:

I will continue to share this info to all that want to read it..I can’t say enough on how important  it is to arm yourself with knowledge before trading in any market with the Stock Market playing field..It is my hopes to help you to be a better Investor armed with good Information to help you to level out that playing field the best you can..thanks and good luck with you Investments..jp

Anatomy Of A Pump & Dump


Halfway Through the Year … How are the Stock Teasers Doing?

A QUICK LOOK AT SOME WINNERS AND LOSERS TOUTED IN THE LAST SIX MONTHS

Posted on June 28, 2013

World Stock Markets

Now that we’re putting June to bed, I thought I’d take just a minute to check on the stocks we’ve revealed over the first half of 2013 and see what’s happening. As you probably know, we track the prices of each of the stocks we uncover from the hyped teaser promotions — almost all of them are expected by their teaser-flinging newsletter pundits to have gains of 50% or more, often much more, so how many deliver on a level to match the hype?

stock-market Bronze Bull

Well, as you probably guessed, not many. This has been a rough year for junior energy and mining stocks, which tend to be a favorite target of a lot of the different newsletter families out there, so everyone has at least a few nasty losers and junior miners populate a lot of the bottom portion of the spreadsheet, but the newsletter teaser picks in general this year have been pretty, well, average if you just go by a quick glance.

gold-mining-stocks1

Our tracking spreadsheets are not yet very analytical (we’re working on improving them, but it will take a while), all we’re doing is tracking the buy price when we unveil one of these “secret” picks and keeping track of the current live price to show the gain or loss, but right now we’re seeing half the stocks teased this year are up, and half are down. Those are not fair indications, necessarily — we have not annualized the numbers, nor have we compared the numbers to a benchmark (the market has been generally up nicely this year, so stocks that were touted earlier in the year are more likely to be near the top of the list).

Surprisingly, it’s been more even-keeled than a typical year so far — there are no 100% gainers (the best so far is about 40%), and there are no 90%+ losers that are on the verge of going under (the worst picks are down about 50%) … it’s early days yet, typically past years have included a few bankruptcies and a few incredible moonshot gains, with usually about half as many winners as losers overall.

glasses stockpaper pen

What migrated to the top of the list? Well, Manny Backus and his Consensus Picks service teased several stocks in January, and all three of the ones we covered, Callidus (CALD) and Aceto (ACET) and Zixcorp (ZIXI), have handily beaten both the market and most other picks teased earlier in the year (they’re all in the top five as I type). I didn’t know them well then, and don’t know why they’re doing well now, but they were small stocks with reasonable valuations when they were teased — perhaps sometimes that’s enough.

Wall St plaqeon wall

Rounding out the top five are breakout growth pick SodaStream (SODA) from the Oxford Club folks, and the steady eddie Alaris Royalty (AD.TO ALARF) from Chris Mayer, both of which I was tempted to buy but held off on to my detriment. Alaris was the first pick of this year that I covered, I think, so it’s had a nice tailwind from a rising market despite the fact that it took a 10% haircut when all their dividend-driven peers also fell in June (Alaris acts and yields like a REIT or BDC to some degree), but SODA has risen almost 40% in less than two months.

Likewise, the sixth place pick so far has been Sara Nunnally’s the heavily hyped Capstone Turbine (CPST) that has also popped quite recently, with most of the advance coming in May, not long after the teaser campaign started, and being driven by some new supply deals and big orders that gave hope to this story stock that has always had a compelling-sounding pitch but never been able to deliver. Maybe now they’re back on track? Dunno, they’re still tiny and unprofitable, even after that 30%+ advance, but I wish ‘em the best.

And the worst performers this year? Any bottom fishing opportunities out there?

Well, other than Natcore Technologies, that overhyped, years from anything “absolute black” solar company, and Graphite One (GPH.V, GPHOF), the latest in a series of silly and overly optimistic pitch targets that tie graphite mines to the promise of the nanomaterial graphene, they’re pretty much all either oil or gold stocks — the gold stocks are predictable, with gold prices falling by 25% or more it’s no surprise that miners and royalty plays that are leveraged to the price of the shiny stuff are falling at least that far, so you’ll see big royalty plays Royal Gold (RGLD) and Franco-Nevada (FNV) on that list alongside junior miners like Centamin Gold (CEE.TO, CELTF) and Eurasian Minerals (EMXX).

It’s actually the oil names that catch my attention down here at the bottom of the list, because they’ve had a pretty steady commodity price (compared to gold, at least) but are still getting clobbered — HRT Participa (HRP.V, HRTPY) is a clear loser so far this year based on exploration results, with the first drill bit offshore Namibia not providing the kind of validation investors were hoping for after an ugly boardroom shakeup (I owned that to speculate on the Namibia results, I sold when they were bad, it has kept falling). They’ve still got two more exploration holes to drill, they probably have two or three weeks before results will come out from the next one (if it takes as long as the first one, it spun in on June 3), so this will probably see a July catalyst move it abruptly one way or another … we’ll see.

Oil Plant_17-2817

And Tag Oil, which longtime reader Myron Martin mentions in his column for the Irregulars today, has also suffered despite good oil prices — they’re a New Zealand oil producer, teased just six weeks ago by Christian DeHaemer as having big upside thanks to their potential unconventional oil resources … and they’re down 40% already. I didn’t see news that would have made me dramatically revalue the company, though they did update on their exploration drilling plans and announce the completion of their infrastructure improvements right around the time the shares fell. They just reported their annual results today, which were substantially worse than a year ago in many respects (like “profit”), but they do sound optimistic about the next year and they’re in good shape financially, so that’s the one that jumps out to me at the bottom of the list.

stock-market nasq board

Teaser Stock Performance Tracking

These spreadsheets track the performance of stocks touted in investment newsletter teaser emails, assuming a purchase of the stock on the date the email was first seen or written about by the Gumshoe and held forever. Stock prices are live with a 20 minute delay, and the sorting (best performers at the top) is updated … every once in a while. Do note that occasionally splits or consolidations or takeovers happen that aren’t necessarily reflected in these spreadsheets — if you notice one that’s off, please let us know.

2013 Spreadsheet

https://docs.google.com/spreadsheet/pub?key=0ArddX_vPtgI6dGRzVlpqTkFwMVBCUC1ERFZCT0duOGc&single=true&gid=0&output=html

Sources:  Travis Johnson, Stock Gumshoe, Bluewaters2u Research Team


Blue’s Investment 101: Rental Property continued discussion

TUTORIAL: Exploring Real Estate Investments

From the first decision to invest in real estate to actually buying your first rental property, there is a lot of work to be done. This task may be daunting for the first-time investor. Owning property is a tough business and the field is peppered with land mines that can obliterate your returns. Here we’ll take a look at the top 10 things you should consider when shopping for an income property

houses-for-rent

 

Starting Your Search

Although you may want a real estate agent to help you complete the purchase of a rental property, you should start searching for your investment on your own. Having an agent can bring unnecessary pressure to buy before you have found a property that suits you. The most important thing is to take an unbiased approach to all the properties and neighborhoods within your investing range.

 

Your investing range will be limited by whether you intend to actively manage the property (be a landlord) or hire someone else to manage it. If you intend to actively manage, you should not get a property that’s too far away from where you live. If you are going to get a management company to look after it for you, your proximity to the property will be less of an issue. (To find out how to save money as a rental owner, see Tax Deductions For Rental Property Owners and Tips For The Prospective Landlord.)

Let’s take a look at the top 10 things you should consider when searching for the right rental property.

 1. Neighborhoods

The quality of the neighborhood in which you buy will influence both the types of tenants you attract and how often you face vacancies. For example, if you buy in a neighborhood near a university, the chances are that your pool of potential tenants will be mainly made up of students and that you will face vacancies on a fairly regular basis (during summer, when students tend to return back home).

 

2. Property Taxes

Property taxes are not standard across the board and, as an investor planning to make money from rent, you want to be aware of how much you will be losing to taxes. High property taxes may not always be a bad thing if the neighborhood is an excellent place for long-term tenants, but the two do not necessarily go hand in hand. The town’s assessment office will have all the tax information on file or you can talk to homeowners within the community.

 

3. Schools

Your tenants may have or be planning to have children, so they will need a place near a decent school. When you have found a good property near a school, you will want to check the quality of the school as this can affect the value of your investment. If the school has a poor reputation, prices will reflect your property’s value poorly. Although you will be mostly concerned about the monthly cash flow, the overall value of your rental property comes in to play when you eventually sell it and retire someday. (To keep reading about owning and selling real estate, see Sell Your Rental Property For A Profit.)

 

4. Crime

No one wants to live next door to a hot spot for criminal activity. Go to the police or the public library for accurate crime statistics for various neighborhoods, rather than asking the homeowner who is hoping to sell the house to you. Items to look for are vandalism rates, serious crimes, petty crimes and recent activity (growth or slow down). You might also want to ask about the frequency of police presence in your neighborhood.

 

5. Jobs

Locations with growing employment opportunities tend to attract more people – meaning more tenants. To find out how a particular area rates, go directly to the U.S. Bureau of Labor Statistics or to your local library. If you notice an announcement for a new major company moving to the area, you can rest assured that workers will flock to the area. However, this may cause house prices to react (either negatively or positively) depending on the corporation moving in. The fall back point here is that if you would like the new corporation in your backyard, your renters probably will too.

 

6. Amenities

Check the potential neighborhood for current or projected parks, malls, gyms, movie theaters, public transport hubs and all the other perks that attract renters. Cities, and sometimes even particular areas of a city, have loads of promotional literature that will give you an idea of where the best blend of public amenities and private property can be found.

 

7.  Building Permits and Future Development

The municipal planning department will have information on all the new development that is coming or has been zoned into the area. If there are many new condos, business parks or malls going up in your area, it is probably a good growth area. However, watch out for new developments that could hurt the price surrounding properties by, for example, causing the loss of an activity-friendly green space. The additional condos and/or new housing could also provide competition for your renters, so be aware of that possibility.

 

8. Amount of Listings and Vacancies

If there is an unusually high amount of listings for one particular neighborhood, this can either signal a seasonal cycle or a neighborhood that has “gone bad.” Make sure you figure out which it is before you buy in. You should also determine whether you can cover for any seasonal fluctuations in vacancies.

 

Similar to listings, the vacancy rates will give you an idea of how successful you will be at attracting tenants. High vacancy rates force landlords to lower rents in order to snap up tenants – low vacancy rates allow landlords to raise rental rates.

 

9. Rents

Rent will be the bread and butter for your rental property, so you need to know what the average rent in the area is. If charging the average rent is not going to be enough to cover your mortgage payment, taxes and other expenses, then you have to keep looking. Be sure to research the area well enough to gauge where the area will be headed in the next five years. If you can afford the area now, but major improvements are in store and property taxes are expected to increase, then what could be affordable now may mean bankruptcy later.

 

10. Natural Disasters

Insurance is another expense that you will have to subtract from your returns, so it is good to know just how much you will need to carry. If an area is prone to earthquakes or flooding, the extra insurance can add up and eat away at your rental income. (To learn which policies you will need, check out Insurance Tips For Homeowners and Beginners’ Guide To Homeowners Insurance.)

 

Getting Information

Talk to renters as well as homeowners in the neighborhood. Renters will be far more honest about the negative aspects of the area because they have no investment in it. If you are set on a particular neighborhood, try to visit it at different times on different days of the week to see your future neighbors in action.

 

The Physical Property

In general, the best investment property for beginners is a residential, single-family dwelling or a condominium. Condos are low maintenance because the condo association is there to help with many of the external repairs, leaving you to worry about the interior. Because condos are not truly independent living units, however, they tend to garner lower rents and appreciate more slowly than single-family homes.

 

Single-family homes tend to attract longer-term renters in the form of families and couples. The reason families, or two adults in a relationship, are generally better tenants than one person is because they are more likely to be financially stable and pay the rent regularly. This owes to the simple fact that two can live almost as cheaply as one (as far as food, rent and utilities go) while still enjoying dual income. As a landlord, you want to find a property and a neighborhood that is going to attract that type of demographic.

 

When you have the neighborhood narrowed down, look for a property that has appreciation potential and a good projected cash flow. Check out properties that are more expensive than you can afford as well as those within your reach – real estate can often sell below its listing price. Watch the listing prices of other properties and ask buyers about the final selling price to get an idea of what the market value really is in the neighborhood. For appreciation potential, you are looking for a property that, with a few cosmetic changes and some renovations, will attract tenants who are willing to pay out higher rents. This will also serve you well by raising the value of the house if you choose to sell it after a few years.

real-estate-rental

 

As far as cash flow, you are going to have to make an informed guess. Take the average rent for the neighborhood and subtract your expected monthly mortgage payment, property taxes (divided by 12 months), insurance costs (also divided by 12) and a generous allowance for maintenance and repairs. Don’t lie to yourself and underestimate the cost of maintenance and repairs or you will pay for it once the deal is done. If all these figures come out even or, better yet, with a little left over, you can now get your real estate agent to submit an offer and, if everything goes well, order business cards with Landlord emblazoned across the top.

 

The Bottom Line

Every state has good cities, every city has good neighborhoods and every neighborhood has good properties, but it takes a lot of footwork and research to line up all three. When you do find your ideal rental property, keep your expectations realistic and make sure that your own finances are in a healthy enough state that you can wait for the property to start producing cash flow rather than needing it desperately. Real estate investing doesn’t start with buying a rental property – it begins with creating the financial situation where you can buy a rental property.

Sources: AndrewBeattie, Bluewaters2u Research Team

 http://www.investopedia.com/articles/mortgages-real-estate/08/buy-rental-property.asp?utm_source=term-of-the-day&utm_medium=Email&utm_campaign=TOD-6/25/2013

Learn more at: Jp’s facebook Investment Round table discussions

Top 10 Features Of A Profitable Rental Property


10 companies buying their own stock.

Already this year, U.S. companies have announced plans to snap up more than $210 million worth of their own shares, which usually means higher stock prices. Here are the 10 biggest buybacks so far.

 

Stock traders look at monitors displaying financial information. (© Joshua Hodge Photography/E+/Getty Images)

Driving prices higher

The stock market has been churning higher for a lot of reasons — including the large number of investors who spent years waiting on the sidelines, now trickling back in with every tick higher.

But here’s a reason for the rally that hasn’t been talked about quite so much: Companies are buying back tons of their own stock.

Through May 1, U.S. companies announced a massive $210.6 billion worth of stock buybacks — a level we haven’t seen in the past decade, according to Thomson Reuters. That’s 93% higher than the average for the prior 10 years.

Companies are buying back so much stock because they think their shares are underpriced. They’re also simply awash in cash after hunkering down during the financial crisis. Some, like Apple (AAPL), are under pressure from shareholders to unleash their reserves. Others, including PepsiCo (PEP), are mature companies that don’t have many other ways to use the tons of cash they spin off.

Whatever the reasons, U.S. companies have $1.7 trillion worth of cash. So you can expect the big buybacks to keep marching on.

What’s in it for you? Two key takeaways:

  1. These massive planned buybacks should nudge stocks and the market higher, barring scary disasters. That’s because of the sheer buying demand from companies.
  2. You can do well buying the shares of buyback leaders, as long as the stocks aren’t overpriced, says a study by Merrill Lynch. Besides the buying pressure from buybacks, this is because of some simple math. With fewer shares on the market, a company is worth more per share.

Here’s a look at the 10 biggest buyback announcements through the end of May 1, and some thoughts on whether you should join these companies and buy their shares.

A man talks on his cell phone as customers walk through an Apple store. (© Lucas Jackson/Newscom/Reuters)

 

Apple

2013 announced buyback: $50 billion

Apple (AAPL) is a case study in the power of the buyback. Its shares were in a grindingly painful decline from above $700 last September through mid-April, when the stock pierced $400. Then on April 23, the company upped its recent buyback plan by a massive $50 billion, to a total of $60 billion. It also hiked its dividend to $3.05 a share. The stock hasn’t looked back since. It traded recently at $450.

“The buyback and increased dividend have really brought a new investor base into the stock,” says David Heupel, a stock analyst with Thrivent Financial for Lutherans. That would be income investors — those who shop for dividends and buybacks.

Will that be enough to restore Apple stock to its glory days when it traded above $700? Probably not. One problem is that Apple products have lost a bit of their luster, so Apple has lost its pricing power. The average price of iPhones and iPads slipped 4% in the first quarter, as consumers bought competing products and Apple expanded in emerging markets. Above all, though, a read of Walter Isaacson’s biography “Steve Jobs” reveals just how much Apple was a personality-driven company. And, sadly, that personality is gone forever.

We won’t really know Apple’s fate until we see new products, and that won’t happen for another six months, says Mike Sorrentino, chief strategist at Global Financial Private Capital, a value shop. “Apple is probably range-bound for the time being,” he says. Sorrentino thinks the downside risk is limited, because Apple has a “war chest” of cash to defend its stock with buybacks. But upside? Possibly limited, too

Customers walk towards a Home Depot store in Washington, D.C. © Andrew Harrer/Bloomberg via Getty Images

Home Depot

2013 announced buyback: $17 billion

Buying the shares of companies with the biggest buyback plans — the top fifth — beat the market by 1.3 percentage points in annualized returns for 1986-2012. But that outperformance goes up to 3.5 percentage points if you focus on buyback companies with cheap shares. This strategy produced 13.3% annualized return versus 9.8% for the market, according to a study by Merrill Lynch.

This little piece of wisdom is all you need to know to be wary of Home Depot (HD) as a potential buy because of its huge buyback plan. Home Depot’s stock trades for 21 times estimated 2013 earnings, compared to 14.7 for the S&P 500 ($INX), says John Kozey, a senior analyst at Thomson Reuters. (Stock price times earnings, or the price/earnings ratio, is a common measure used to gauge if a stock is overpriced or underpriced.)

“I would not want to own Home Depot because I would not want them paying 21 times earnings for a company,” says Patrick Kaser, a portfolio manager at Brandywine Global, meaning its own shares. “I’d rather have them give me the cash, so I can buy a company at 11 times earnings,” he says, referring to cheaper stocks available in discounted areas such as large-cap tech, energy and banks. Home Depot should probably be raising its dividend instead of buying back stock.

A Merck scientist at the company's Pennsylvania lab earlier this year. © Matt Rourke/AP Photo

Merck

2013 announced buyback: $17 billion

If Home Depot isn’t attractive based on its buyback plan because its shares are too expensive, then what buyback giant looks a lot better because its shares are cheap? That would be Merck (MRK).

Merck stock fell under $46 recently, from above $48.50, on soft earnings news and weak guidance. It now trades at a 32% discount to its peers, according to Thomson Reuters, using its trailing price-earnings ratio, another common measure of a stock’s relative value.

One of Merck’s biggest challenges is that its blockbuster asthma drug, Singulair, started facing competition from generic versions last summer. It sorely needs some new hits, but its pipeline has not produced. Merck has been cutting costs in response, and it just brought in a new head of research, Roger Perlmutter.

The pharma giant does have strengths in vaccines, animal health and consumer products. Combined with a massive buyback plan, these positives make its stock look attractive in the pullback, believes Heupel, at Thrivent Financial for Lutherans.

BingWhat’s in the Merck pipeline?

A General Electric logo hangs above the entrance to a GE news conference in New York in 2009. © Daniel Acker/Bloomberg via Getty Images

General Electric

2013 announced buyback: $10 billion

Back in February, General Electric (GE) announced a huge, $10 billion buyback plan for 2013. “This tells us they are feeling more confident,” says David Fried, editor of The Buyback Letter.

It also tells us that it has tons of cash and that it’s tough to find uses for it, since the company already pays a 3.4% dividend yield and there aren’t enough potential acquisitions around. Where is all this cash coming from?

In February, GE sold its remaining stake in NBC Universal to Comcast (CMCSA) for $16.7 billion. That brought in $12 billion (the rest is made up of loans to Comcast). Just before that deal, GE had reported $15.6 billion in cash on hand.

The other source of cash is GE Capital, which does leasing and commercial, consumer and real-estate lending. GE is deliberately shrinking this business. This frees up cash that GE is redeploying to shrink its share count, to offset the hit to earnings from a shrinking GE Capital, says Kaser at Brandywine Global.

GE is struggling with weakness in Europe. But the company is solid in its core businesses, such as energy equipment, and the stock looks cheap. Plus a director bought $218,000 worth of stock at $21.80 in late April. Any time both a company’s board and an insider sees value in a stock, I’ll take that as a good sign.

Bottles of Pepsi cola drinks on display. © Mike Segar/Newscom/Reuters

PepsiCo

2013 announced buyback: $10 billion

When a company controls 40% of the planet’s salty snack market and boasts powerful brands such as Pepsi, Gatorade, Tropicana, Lay’s and Doritos, it’s bound to throw off lots of cash. And that’s what we see at PepsiCo (PEP).

But a company this big also has some natural limits on just how fast it can grow. As this puts a lid on internal investment opportunities, what’s a company to do with all its cash? PepsiCo already pays a 2.7% dividend yield. So one obvious answer: Give the cash back to shareholders.

The problem, though, is that PepsiCo stock has been on fire this year, advancing 23% to all-time highs of $84.32. The stock has retreated slightly, but at just under $83, it still trades for a fairly rich valuation of 17.3 times 2014 earnings, which is about 20% above its historical average and 10% over the $75 fair value estimate for the stock by Thomas Mullarkey, at Morningstar. Buybacks at rich valuations aren’t a great deal for shareholders.

There’s a decent chance PepsiCo might use some of its financial clout to buy Mondelēz International(MDLZ), the snack food company housing popular brands such as Oreo, Nabisco and Cadbury, Mullarkey says. But a Mondelēz purchase or no, PepsiCo stock seem pretty pricey, especially for a major buyback. I’d wait for a pullback, despite the huge buyback plans.

Fred Harster drives a UPS truck on Park Avenue in New York in 2009. © Daniel Acker/Bloomberg via Getty Images

United Parcel Service

2013 announced buyback: $10 billion

United Parcel Service (UPS) is the biggest shipping company in the world, delivering more than 16 million packages each weekday on average. As such a huge transport company, UPS offers a great read on the economy, so I’ll take it as a bullish signal for the economy that UPS has such a big buyback plan in place.

Like PepsiCo, United Parcel Service stock has been on a tear of late. It’s up 19% since it started its most recent leg up in early December, to trade recently at $86.

But this doesn’t necessarily negate the buyback here, because the valuation on UPS is not so rich. UPS trades for 15 times 2014 earnings, or just above the market multiple. Yet UPS has a much bigger protective moat than most companies in the stock market. That’s because it would be tough to replicate its global shipping network, brand and solid reputation among customers.

The bottom line: A pullback in UPS stock would not be surprising, given the recent strength. But the company’s moat, its plans for international expansion and its huge buyback suggest decent gains from here.

People walk past an American Express logo. © Steven Senne/AP Photo

American Express

2013 announced buyback: $9.9 billion

Unlike capital-intensive businesses such as steel or autos, a credit card company doesn’t require huge amounts of cash. Plus bad debt is relatively low at American Express (AXP), given the affluent nature of its cardholder base. This lowers the need for reserves, so it makes a lot of sense for this very profitable company to return cash to shareholders.

American Express shrank its shares outstanding by 5.3% last year, says Fried of the Buyback Letter. It could shrink its share count again this year, given the huge size of its announced buyback. This boosts earnings per share, since it spreads out earnings over fewer shares. It also reduces the amount of cash the company needs to fund its dividend.

Plus, regulators would rather see American Express return cash via buybacks as opposed to big dividend hikes, since it’s easier to dial back share repurchases to preserve cash if hard times hit. (Investors can punish companies that cut dividends.) Trading at just 13.3 times expected earnings for the next 12 months, American Express shares are priced 5% below their five-year average. The stock is not dirt cheap, but it’s not too rich for buybacks.

Stacks of lumber frame the store's logo at a Lowe's store in Quincy, Mass. © Brian Snyder/Newscom/Reuters

Lowe’s

2013 announced buyback: $5 billion

After a decade of rapid expansion, Lowe’s (LOW) is cutting back on new store openings. It also already has poured a lot of money into setting up 14 automated regional distribution centers. Lowe’s still needs to spend on improving its supply chain, but with much of that spending out of the way, and Lowe’s dialing back store growth, it’s producing lots of cash with nowhere to spend it.

So buybacks make sense, and a lot more sense than at rival Home Depot, because Lowe’s stock is cheaper. It trades for 15.7 times 2014 earnings, compared with 21 at Home Depot. Last year, Lowe’s shrank its share base by 9.2%, says Fried, at the Buyback Letter, which is good for shareholders. Expect more of the same this year.

Lowe’s still has room to grow, even though it has slowed store growth. The reason: Home improvement is still a highly fragmented sector, and Lowe’s can still take plenty of business from smaller stores and lumberyards.

3M Post-it notes are displayed at an Office Depot in Mountain View, Calif. © Paul Sakuma/AP Photo

3M

Announced buyback: $7.5 billion

By fostering a culture of innovation and judiciously plowing money into research year in year out, 3M (MMM) has invented some of the most memorable — and profitable — products ever, such as Scotch tape and Post-it Notes.

In short, innovation is 3M’s wheelhouse, so it’s no surprise the company announced at an analyst day last November that it wants to increase research and development spending to 6% of sales by 2017 from the current mid-5% level. 3M also says it wants to spend $1 billion to $2 billion a year on acquisitions.

Those plans, plus outlays for dividends, still don’t sop up all the cash generated at a large, successful and mature company like 3M, which produces more than $5 billion a year in free cash flow. So the big buyback plans make sense.

At 15.7 times forward 12-month earnings, 3M trades 12% higher than its five-year average, according to Thomson Reuters. That’s not cheap, but it’s not outrageously expensive for buybacks. After all, this is a company with a wide protective moat around its business, the kind that Warren Buffett likes. And there will probably be pullbacks ahead when market turbulence hits, giving us a chance to buy 3M at an even better price.

The Qualcomm logo at a conference in Barcelona, Spain, in 2011. © Denis Doyle/Bloomberg via Getty Images

Qualcomm

2013 announced buyback: $5 billion

Qualcomm (QCOM) stands out on the list of top 10 buyback giants so far this year because it’s the highest-growth company there. Sales advanced 24% in the most recent quarter, compared with 18% at Apple, the only other real growth company on the list.

As a key player in the code division multiple access (CDMA) technology and wireless chip sets used in smartphones, Qualcomm produces juicy margins, which net the company lots of cash. Qualcomm has net margins of 28.9%, compared with 13.1% for companies overall, according to Morningstar, and annual free cash flow of more than $5 billion.

Yet Qualcomm trades at a reasonable price. With a forward P/E of 13, it goes for a price earnings to growth ratio of 0.9. Anything under 1.5 at a high-growth company like this one looks like good value, according to a rule of thumb developed by investor great Peter Lynch.

“We like Qualcomm at these levels,” says Sorrentino of Global Financial Private Capital. Sorrentino also likes Qualcomm’s 2.2% dividend yield and the room to increase the dividend given the company’s financial strength. Besides the free cash flow, it has more than $13 billion in cash and little debt. The key takeaway: Buybacks make a lot of sense right now, and so does buying the stock.

Source:  Bing Money Micheal Brush, Bluewaters2u Research Team,

JP’s Investment Round Table as seen Facebook

Blue’s Comments: 

And think about this… I have been told that US companies have trillions of dollars they are sitting on… now think about that… even they are not willing to chance spending their own money on expansion or research / development… they feel the need to have cash on hand in case of a downturn… Well its coming, the downturn that is… Profits are down, unemployment is high… and the Fed. keeps printing money… they may even go a bit higher than the 85 billion per month… When this bubble bursts it will be heard around the world…

10 companies buying their own stock.


“Warning! Penny stocks can be hazardous to your health!”
From Jp/ Bluewaters2u:
Sharing a site  I wish everyone could see playing Penny stocks…I posted on this subject many times and wanted to share This site with my friends and all..save it to you favorites stock players…jp
PumpsAndDumps.com is a public service dedicated to ending penny stock schemes which hurt the innocent, especially seniors and students and others who are easy prey to get rich quick schemes. These dupes are victimized by those who perpetrate penny stock fraud and the promoters who provide aid and comfort to them.

Contrary to some belief, we do not short stocks for three reasons. 1) Shorting penny stocks is just as poor an investment decision as owning penny stocks; 2) Most penny stocks are impossible to short in significant quantities by anybody but a market maker; and, 3) We wish to remain unbiased and unencumbered.

Neither do we get paid by anybody to publish the information or conduct the research we do. We base our subject matter on a number of factors; including, but not limited to, the pressure of the Pump & Dump scheme, its success at creating victims; and, the blatancy of the false information disseminated by the perpetrators

Once a stock has been listed as a subject of a Pump & Dump scheme, it is impossible to have it removed from the historical list of promotions that we call the “Hall of Fame”.  Companies cannot buy their way off the list at any price.

In order to remain as transparent about our motives as possible, we forward every advisory and alert to members of enforcement at the United States Securities Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), by email, to addresses made available to us by these regulators.

While we answer all emails submitted through our Contact Us button on our website, we remain anonymous and we do not publish demographic information for several reasons. First and foremost is our physical safety. There are many schemers out there who will do whatever is required to remain free to cheat the public. Secondly, we do not wish to be hassled by those displeased with our information or those pleading with us to investigate particular schemes.

PumpsAndDumps.com is owned by a corporation registered in the Country of Nevis.

OUR MISSION

Everyday we get asked why we maintain this money losing website and who it is we are trying to protect. Some of the diehard penny players and the scam perpetrators even laugh at us when a Pump and Dump goes up in spite of our warnings and that we point out the shortcomings of the company that is the target of the pyramid/Ponzi scheme. Incidentally, penny stock promotions are almost always pyramid and orPonzi schemes.

Let’s make one thing clear: We are not here to stop Pump and Dump schemes. Only the SEC and other ball-less agencies of the Federal government can do that.

Also, in spite of the lies and accusations created by the same people who perpetrate these schemes, in an attempt to discredit us, we are not secret pumpers and we are not shorters. Very few penny stocks can be shorted, by anybody that is not a market maker. Those pennies that can be shorted usually have very small quantities available. Anybody who tells you different is a liar, looking to get your money. Interactive Brokers is the most proficient broker out there at shorting penny stocks. In order to see if a certain penny can be shorted, go to their availability list by clicking here.

The truth of the matter is that there are many professional penny players who play most pumped stocks on the hopes that they are going to benefit on the misfortune of those less skilled in the game. And of course, the con artists who run these schemes make money every time. However, in order for someone to make money on a penny stock, be it player or insider, an equal amount of money is lost by the innocent and ignorant dupes out there. It is those people that are the targets of the schemers and that we are trying to warn.

This is not like the major market, because stocks in those markets at least have a hope of sustaining share price increases and see further rises. Legitimate penny stocks are few and far between.

Those who are taken for a ride in the penny market are generally those who need the money most. Seniors and students. They look to the penny market as their way of getting out of a financial jam in a hurry. Eventually most learn their lesson, usually after they find themselves in deeper holes.

We look at penny stocks like smoking and we are the Surgeon General, putting out the warning on every pack of stocks. The truth is that every day, people leave the penny markets. We know, because we get hundreds of emails every month, thanking us for our free service, wishing they had heard about it sooner, and swearing off these stocks. Because there are so many leaving the market every day, in order for these cons to work, the market needs a certain number of new penny players to enter every single day. This is akin to the cigarette industry needing a certain number of new smokers every day to replace the ones that quit or die, The penny industry does everything it can to induce new recruits, from sending out emails (often spam), to issuing hard mailer promotions with outlandish predictions, to advertising in newspapers, to paying shills to talk about their stocks on message boards and chat rooms, to advertising on unrelated websites. We simply apply the label, “Warning! Penny stocks can be hazardous to your health!”

Of course much like cigarettes, there are those who consider themselves smarter than everybody else and just won’t listen. At least not until they get sick and die. That’s ok with us.

To those who write to us and tell us we “saved” them, You’re Welcome

67% of buyers in $MULI were losers on Wednesday. Details in The Nightly #pennystocks http://bit.ly/VBHZ8P
“Warning! Penny stocks can be hazardous to your health!”

Tip of the Day!
Sunday, May 26, 2013

Social Media

A Picture is Worth a Thousand Words:
Image marketing is a natural fit for visually rich businesses like photography, design and fashion. However, every business can take advantage of the visual trend with a little creativity. Turn company or industry data into rich charts, graphs or info-graphics. Share reports, studies or even books you’ve read to tell your own story in images.

Worlds with many laptops around it media

https://www.facebook.com/WebDesignSolutionsUnlimited
https://webdesignsolutionsunlimited.com/

 

Tips of the Day!…Web Design Solutions Unlimited.

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