Equity Intelligence eyes beaten-down stocks
BUSINESS LINE Mr Porinju Veliyath (right) Managing Director Equity Inteligence and Mr Abhilash Varghese Director Operations at a press conference at Kochi on Wednesday. – Photo: K. K. Mustafah.
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Shares track Wall Street gain
HONG KONG: Asian markets rebounded yesterday as dealers picked up undervalued stocks following a recent sell-off while the first gain for the Dow in three days also provided some support.
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Plymouth, MI (PRWEB) March 31, 2011

Value Stock Guide announces the launch of Premium Access, a membership program where members benefit from detailed stock research, buy/sell recommendations, commentary, dedicated value investing forums and a monthly members newsletter.

Premium Access is now open for immediate registration. Members get all the benefits with an annual or quarterly subscription. To sign up or for more information please visit the premium value stock picking service information page.

According to the Value Stock Guide publisher, Shailesh Kumar, “Long term investors often do not have enough time to research and analyze their investments. What is worse, they are distracted by the constant media noise. Many times, undervalued stocks also lack sufficient coverage on the Wall Street. Which is where a service like ours can help fill the information void”

Value Stock Guide considers investment merits of stocks across all market capitalization with a slight bias towards small cap value stocks. Historically, small cap value stocks have been proven to be the best performing asset class over a long investment horizon. All analysis and recommendations are fully transparent, with members able to track publisher’s personal portfolio on a daily basis to avoid any conflicts of interest.

About Value Stock Guide

Value Stock Guide focuses on value investing and analysis of undervalued stocks aimed at hands on investors who are looking to build and grow a long term investment portfolio at reduced risk. The publisher of Value Stock Guide, Shailesh Kumar (arohan), MBA, has been writing about Value Investing publicly for over 3 years and his articles have been published at Seeking Alpha and referenced by The Street.Com. His background includes leading Finance division for a large private subsidiary of a public company, Management Consulting with Fortune 100 companies and running his own multi-million dollar manufacturing business, in addition to practicing value investing for over 12 years.

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Amid gloom and then rebounding on financial markets, the worries about banks and the optimism about the new Obama Administration in the US, the first of this year’s surveys of big global investor sentiment by Merrill Lynch, has shown some relative optimism.

The December survey saw a hint of this change when it reported that investor sentiment had stepped back from the brink of despair, but more than a third of investors wanted to see greater fiscal stimulus, according to Merrill Lynch’s Survey of Fund Managers for December.

“While 88 percent of the panel believes that the world economy is in recession, December’s survey contains evidence that the rate of deterioration is slowing.

“The net balance of investors who expect the global economy to worsen in the coming year has fallen to 36 percent, down from 60 percent in October.

“More than a quarter of respondents believe the economy will strengthen in 2009. Cash levels average 5.5 percent, up from 5.1 percent in November, the highest level since 2001. Furthermore, a widespread perception exists that stocks are cheap, both in absolute terms and relative to bonds.”

They seem to have got their wishes with the German government upping its support for the faltering economy to some 50 billion euros, the US pushing its stimulus package to some $US825 billion and more rate cuts by central banks, especially the European Central Bank at the start of January and more to start this week in New Zealand.

But there have been more bank bailouts in the US, UK, Ireland, Denmark, France and Germany, while we in Australia are in the processing of filling a gap in funding caused by the flight of foreign banks, such as Bank of America, HBOS and Royal Bank of Scotland.

“Now for January ML reports that global investor gloom has started to lift, with hopes of improving growth and inflation rather than deflation.”

“There is a lot of hope in China’s bounce back as well.

“Broad economic sentiment has improved sharply from the lows of late 2008.

“The Merrill Lynch Fund Manager Composite Indicator for Growth Expectations has climbed to 30 this month from 25 in December and a low of 17 in October. The proportion of fund managers who predict lower inflation has fallen to a net 64 percent from a net 82 percent in December.

“Accordingly, there is a growing conviction that interest rates will rise, with 35 percent of respondents who forecast long term rates to increase in the next 12 months, up from 10 percent in December. At the same time the average cash balance remains high at 5.3 percent, only marginally lower than December’s level of 5.5 percent.

“Investors are talking a more positive story, especially with regards to the U.S., but the fear factor remains,” said Gary Baker, Banc of America Securities-Merrill Lynch head of EMEA equity strategy.

“They have firepower to act, but are unconvinced by the modest recent equity rally, suggesting it is a bear market rally in both sentiment and markets. Global sector allocations remain resolutely defensive.”

ML said that cash positions in Europe are at their highest level since 2001, reflecting the high level of caution within the region. A total of 42% of regional respondents are overweight cash compared with 29% in December.

“The numbers reflect how, while global economic sentiment is lightening, European expectations remain under a cloud with investors embedded in defensive positions.

“Every respondent to the regional survey expects a European recession, up from 91 percent in December. Investors are worried that corporate profits will continue to disappoint.

“This distrust means the percentage of investors who believe that European equities are cheap has almost halved, falling to 22 percent in January from 40 percent in December.

“European investors are still dancing the two-step and are reluctant to try out any more adventurous moves,” said Karen Olney, Banc of America Securities-Merrill Lynch lead European equity strategist.

“Investors continue to rotate between expensive defensive sectors and beaten, but not broken, industrial cyclicals that hope to piggyback on any indication of infrastructure-related spending by governments reigniting economies.”

ML said investors are flocking to Food & Beverage and Pharmaceuticals.

It said two survey records have been broken. Food & Beverage has hit its highest overweight in the history of the survey (net 11% of fund managers overweight).

The gulf in sentiment between Banks and Healthcare sectors is also at a record high. A net 57% of European investors are underweight Banks while a net 46% are overweight Healthcare. “Pharmaceuticals are largely immune to the credit crunch and economic slowdown that has hit banks,” said Olney.

Sterling is viewed as undervalued for the first time in seven years.

In October, a net 58% of respondents viewed sterling as overvalued but this month a net 7% believe it is undervalued. Increasing numbers view both the euro and the yen as overvalued.

US equities have become less in favour with global investors. The net percentage of asset allocators overweight the US equity market fell from 25% in December to 7% in January.

“There has been a notable dip in the U.S. equity market’s popularity and emerging market equities have been the new-year beneficiary of rotation away from the U.S.,” said Michael Hartnett, Bank of America Securities-Merrill Lynch chief emerging markets equity strategist.

The number of investors underweight in global emerging markets has fallen to 7% in January, from 17% in December.

In spite of flows into emerging markets, investors retain caution over China.

The percentage of regional investors who expect the Chinese economy to improve has risen from 6%, but is still low at 10%. The proportion of respondents who expect Chinese growth to slow in the next 12 months has fallen to 70% from 79% in December.

“China remains the big global growth wildcard in 2009. Despite the announcement of huge fiscal stimulus packages in recent months, investors remain very sceptical about Chinese and Asian growth,” said Hartnett.

“Indeed, Japanese investors notably reduced their expectations for Japan’s growth to close to a record low.”

A total of 205 fund managers, managing a total of U.S. $597 billion, participated in the global survey from January 9 to January 15. A total of 167 managers, managing $US359 billion, participated in the regional surveys.

The survey was conducted by Bank of America Securities-Merrill Lynch Research with the help of market research company Taylor Nelson Sofres (TNS).

IMPORTANT: AIR reports about financial markets and investment products in the widest sense possible. The AIR website and all its contents is prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before making any investment decisions.

Australasian Investment Review
http://www.articlesbase.com/finance-articles/big-global-investors-seem-to-be-a-bit-more-confident-740969.html

Have you ever wondered why you haven’t achieved the financial success you so desire? Do you understand what it takes to reach that elusive destination, financial freedom? Anyone can have the success they desire. I dare you to become financially free.

A good definition of financial independence, by the way, is the control of an income stream sufficient to support your current standard of living.

You do not just fall into financial independence. More than anything else, the secret to real wealth is the mindset of wealth.

So you see, my dare is not really as outrageous as it might sound at first. By accepting the challenge, you are taking the first step to acquiring the mindset of wealth. You must be resolved to the fact that with wealth building, there must be dedication. And I guarantee that the opportunity to become financially independent is waiting for you, but you have to make the decision to go for it.

It’s up to you to take that step across the threshold of opportunity facing you now. It’s a decision you should have no hesitancy for. And when you do, you’re on your way to financial independence.

There are four major hurdles you must jump to become financially independent. I could go into a deep explanation of each step but I will save that for another time, I really want to discuss a powerful investment strategy. But I will briefly outline the four steps to financial independence.

So to get started, lets begin with the first of our skills of wealth building and that is earning. You must understand the two basic components controlling your earning power.

The first of these is our ability to perform our chosen line of work, that is, how well do we do what we do. The second and probably the most important factor controlling our earning power, is the demand in the marketplace for whatever it is we’ve chosen to do.

Second, you must build a financial protection account to cover all your expenses in case of an emergency, such as the loss of your income source. Saving is really the second important skill for acquiring wealth. You must have the discipline to build a protection account that will cover all your living expenses for your family, for a period of a year or two.

The third step in becoming financially independent is to begin an investment program. You want to achieve the highest returns on the money that you have designated for your investment program. Your objective now is to accumulate a mass of capital that will generate sufficient income to support your lifestyle without your having to work.

The fourth step to financial independence is too develop enough investment prowess to earn the extra income that allows you to fill your wants and desires. You have your needs met, but now you want to create the extra income that allows you to become financially free, this is where you can basically satisfy most of all your wants.

There, now that we have the four basic steps to financial freedom. I would like to carry on with the main focus of this article.

But I must make it clear that I had set up multiple Avenues of Income first, to put me in the financial situation that affords me the ability to test the waters of many different financial opportunities.

So, now I would like to discuss a powerful investment strategy. This is an investment strategy that has worked well for me in all types of market conditions. And by no means is this a strategy that I designed. In fact, it’s one that has been used successfully from a time long before the modern market and the stock exchange even existed. It’s called value investing.

Value investing is the best long term strategy for creating wealth that’s ever been devised. The theory behind it all is remarkably simple. You can become a value investor by investing your money only in under-valued assets. You can find under-valued assets in stocks and bonds, real estate or a wide variety of other investment opportunities. But whatever the investment asset may be, value investing boils down to the equivalent of buying dollar bills for pennies.

Now, I am sure you are saying “If it’s really that easy, everyone would be doing it.” I want to assure you easy as it actually is, everyone is not doing it. As with all great ideas in the world, only a few recognize them for what they are, and fewer still then decide to act on them.

Under-valued assets exist for reasons that range from fluctuations in the economy to fluctuations in human emotions.

It’s important to understand, however, that you can always find undervalued assets if you are willing to look for them. And, you don’t have to do this all by yourself. Look for investment professionals who operate investment funds and companies using this strategy. Through study and practice you will learn to accurately assess values as a basis for profitable investment.

Another key mindset of wealth is thinking and acting like a business person as well as an investor. Remember the better business person you are, the better investor you’ll be. And the better investor you become, the better business person you’ll be.

Please also keep in mind that value investing may offer important opportunities to take an active role in creating value in your investments. For example, you might turn an unwanted piece of real estate into an income producing asset, or turn a failing business into a thriving business, or create a new product or service based on a need or want you see in the marketplace.

Another form of value investing is investing in yourself and your abilities. There are many ways of increasing the cash flow into your families finances.

Setting up avenues of income that could hold the possibility of creating a passive and/or residual stream of income. If you take the opportunity to set up another stream of income, you would really be increasing your ability to grow anyone of your other investments. And, there are many ways of creating an extra souse of income that doesn’t consume every spare minute that you have. To the contrary, making such a move in your life would possibly result in you’re having even more free time to do the things you love.

The options are endless. The possibilities of a whole knew future are there for the taking.

Howard Platt
http://www.articlesbase.com/finance-articles/investing-now-to-live-the-life-you-dream-of-724083.html

Basically it involves absolute valuation and relative valuation. Absolute valuation is when you value a stock on it’s own intrinsic value. Relative valuation is when you value a stock compared to another stock of comparable nature.

You can do absolute valuation based on several formula such as the dividend discount model, free cash flow model, franchise value model, residual income model, etc. The model can be single-stage or multi-stage.

You can do relative valuation based on multiples such as P/E, P/B, P/S, P/CF as well as multiples based on enterprise value, EBIT and EBITDA.

Have you been making money from your stock investment? I guess no, as we are in a bear stock market now. Do you still think that stocks are cheap, time to buy? How long have you suffered financial losses due to this belief?

Since early 2008 I have switched from stock investment to forex trading. I have relied on my BL TS system for my trade signals and I have been making money. Making money makes seeing cash inflows in our bank account, not holding to some stocks that are perceived as undervalued, yet see no tomorrow.

This week 6 trades were executed: 5 trades won, 1 trades lost (83.33% success rate). 458 pips or US$919.33 profit was generated.

1. USD/JPY – Long closed (-104 pips) on 4 Dec

Open Buy: USD/JPY @ 93.51
Stop level: 92.47
Target level: 94.66
Closed: 92.47 (Loss is 104 pips, US$224.94)

2. USD/CAD – Long closed (+40 pips) on 4 Dec

Open Long: USD/CAD @ 1.2547
Stop level: 1.2443
Target level: 1.2663
Closed: 1.2587 (Profit is 40 pips, US$63.56)

3. GBP/USD – Short closed (+63 pips) on 2 Dec

Open Short: GBP/USD @ 1.4868
Stop level: 1.4950
Target level: 1.4735
Closed: 1.4805 (Profit is 63 pips, US$126)

4. USD/JPY – Shorted closed (+56 pips) on 2 Dec

Open Short: USD/JPY @ 93.46
Stop level: 94.30
Target level: 92.51
Closed: 92.90 (Profit is 56 pips, US$120.55)

5. GBP/USD – Shorted closed (+190 pips) on 1 Dec

Open Short 20,000 GBP/USD at 1.5311
Stop level at 1.5510
Target level at 1.5121
Closed: 1.5121 (Profit is 190 pips, US$380.00)

6. EUR/JPY – Shorted closed (+213 pips) on 1 Dec

Open Short 20,000 EURJPY at 120.73
Stop level at 123.00
Target level at 118.60
Closed: 118.60 (Profit is 213 pips, US$454.16)

All of my trades are executed based on BL TS (trading system).

If you are interested to generate alternative income by tapping on BL TS, send an email to me at metal.commodity@gmail.com.

Risk Disclosure: Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to participate in the futures trading markets. Don’t trade with money you can’t afford to lose. This website is neither a solicitation to invest nor an offer to Buy/Sell futures or options. The past performance of any trading system or methodology is not necessarily indicative of future results.

brend
http://www.articlesbase.com/investing-articles/have-you-been-making-money-from-your-investment-670798.html

Or perhaps, even if you just regulate the the market monthly, then don’t buy on a month that the price is overvalued but buy on a month that it is undervalued (same day every month). This would also spare you from the troubles of watching the daily fluctuation since you only have to do a monthly check on the company’s fundamentals and valuation.

Does this make sense?
Warren: I’m not saying that you should buy a stock merely based on the price because price gives no indication whether it’s a good or a bad stock. That’s why you have to look at its fundamentals. Any stock can go down at any given day and what I’m saying is that, if the company’s fundamentals still hold up, then this is an opportunity to buy more. I was asking if this is actually a better strategy than cost-averaging (buying despite higher/lower price).

Buying stocks just because a stock is going up without research is a surefire way to go bankrupt. I don’t know why you suggested that.

That amounts to market timing and many people cant do that on a consistent long term basis. Its hard to pick market highs and lows for most people.

For many people, making a great income with penny stocks is only a dream. This is a possible dream and I can tell you that it’s very doable. All you need is to learn “how to make good penny stocks picks”. www.pennystocksforprofit.com is a great resource for beginners and stock market veterans alike.

It is possible to make penny stock trading a primary source of income. I’ve done it, although it took a couple years. Now, I’m helping folks like you. With the right penny stocks picks, you can day trade yourself to a real income.

One thing to keep an eye out for when making good penny stocks picks is what is referred to as an ‘undervalued company’. There are many undervalued companies rising and falling in the stock market every day and catching one while the stock price bottoms out is a great investment.

Find a company that has big deals pending, like a buyout or a merger. In other words, keep an eye for a company that is doing a deal with a very large company.

Simply watching the news can be a good resource.

Those stocks tend to jump at least for a day or two and give you the opportunity to cash in on a short term investment.

Finding an undervalued company is a great way to find a good penny stocks pick.

Another, slightly more risky, technique to find a good penny stocks pick is to find an organization that is about to make a big announcement or press release. Most companies will give several days notice that they will be releasing an announcement about a possible merger or buyout by a larger corporation that is investing in the company to help them. This is a little more risky as the outcomes cannot be predicted with 100% accuracy, however, if you make a good judgement, it’s a good opportunity to really cash in on a short term investment. Hundreds of dollars can be made in a short amount of time if you make your choice wisely.

There is never an absolute rule about penny stocks pick however, if you do your research and use the right tools, you will do great!

That leads us to our next way to find good penny stocks picks…

Finding great penny stocks picks is really important to day traders and can lead to major profits very quickly when you make a good investment.

I have been day trading for nearly a year now and it is slowly becoming a primary source of income, which allows me time to write articles like this in my spare time to help others get the basics of penny stocks investments.

Cheers!

Clay Michael Walker
http://www.articlesbase.com/day-trading-articles/how-to-find-good-penny-stock-picks-723960.html

Some people will make the statement that “it is just to risky to buy penny stocks”. The truth is, it can be risky, but it doesn’t have to be if you have patience and the right tools. If you know how to buy penny stocks, then you can make well informed decisions that will lead to incredible profits and often, in a short amount of time.

So if you are interested in making a full time income trading stocks, then learning how to buy penny stocks is very important to your success.

There are three key elements that you have to understand when you want to buy penny stocks.

The first is finding what is commonly referred to as an undervalued company. Frequently, small penny stocks are companies that work in a very large industry however, very specialized within that industry.

An example would be a company that works in aviation but specializes in engines alone. When these specialized companies get involved with larger nonspecializing companies, it makes the perfect time to buy penny stocks and cash in. Once the deal takes place, which is generally either a buyout, merger or major investment, the penny stock will likely have a large jump in price.

Times like this are what makes it so exciting to start buying penny stocks.

Secondly, look for long term deals between companies.

If a company is in a promising deal with a larger company, its stock is almost sure to raise. For example, let’s talk about the specialized company again.

Say they made a contract with the large company that stated they would supply them their engines exclusively for ten years. This would mean an immediate price increase in their stock and a possible continuous increase in the stock price over the next ten years.

Finding a deal like this is a great opportunity to buy penny stocks with a very small risk of losing money.

FInally, and most important, thing to learn is researching the stocks.

When learning to buy penny stocks, research will make you more money than anything else. Many say research is what separates people who successfully buy penny stocks from those who will never buy penny stocks successfully.

When you research, look at all aspects of the company. Look at corporate leadership. Maybe they have led a company before and you can review their past performance in news articles. Review their earnings and longterm trends. All of these factors will help you make good decisions and buy penny stocks for profit.

It can be risky to buy penny stocks, but if you do your research you can buy penny stocks confidently and make a huge profit very quickly.

Clay Michael Walker
http://www.articlesbase.com/day-trading-articles/buy-penny-stocks-online-for-profit-723954.html