Empire Oil and Gas (ASX: EGO) engages in the exploration, development and production of oil and gas in the Perth, Carnarvon and Canning Basins in Western Australia, has rocketed 43.08% over the last month on discovery of significant hydrocarbon reserves in its Red Gully prospect located in the Perth basin.

A drill report issued by EGO indicated that at a depth of 3529-3585m “a very significant gas charged interval of [sandstones]” is present, which, according to conservative industry estimates could equate to potential recoverable resources of 40.7-58.7 billion cubic feet of gas and 2-3 million barrels of condensate. Accordingly, a find of this magnitude, once accounting for reserve adjustment factors and long term price trends, could be valued between US$245 million and US$375 million. EGO’s intraday market capitalisation stands at just over AU$61.46 million.

Empire Oil and Gas is currently negotiating costs and tariffs for the use of the Parmelia or Dampier to Bunbury National Gas pipelines, which are located 2.4km from the Gingin West reserves. EGO aims to construct a gas and condensate plant capable of processing 10MMcfd of gas and 500bdp of condensate with the provision for an addition train to increase capacity to 20MMcfd and 1000bpd. Given EGO’s small market capitalisation, magnitude of its potential reserves, and its close proximity to other larger players such as ARC Energy, Origin Energy, ROC Oil, Royal Dutch Shell and PetroChina, who have constructed significant infrastructure in the region, a takeover by a larger player is very likely if not imminent.

Looking at recent stock price trends, EGO has recently broken out to the upside of a lose range trading pattern to close at $0.016. The previous heavy resistance at $0.015 should now act as strong support and as such, we recommend that investors without exposure to EGO to BUY on any respected retest of the $0.015 support level. For investors with current exposure, we recommend selling up to 50% of holdings at $0.022 given any evidence of declining momentum or for those with short term trading timeframes. For longer term exposure, we would recommend that investors target the all time high of $0.030. If reserves are proven probable, then we would recommend targeting a fair value of around $0.052.

Source: www.EquityDissector.com

Money market funds are one of the most popular cash management tools. These investments are also touted as the safest type of mutual fund. But before investing in them, you should first know what they are, their benefits, and if they are suitable investments for you.

What Money Market Funds Are

Money market funds are mutual funds that invest in money or financial markets, which, in simple terms, means that you borrow or loan money, respectively. A money market fund is similar to your deposit account at the bank in that it takes your money and uses it for investment purposes. Then, a portion of the earnings, which come in the form of dividends, are paid to you. In general, money market funds pay out monthly dividends.

Money market funds typically invest in short term investments that mature in less than 13 months at the maximum. Since money market funds are investment with shorter time frame, the risk is significantly reduced. The idea is that lending the money for the short term is safer as there is a high probability that the amount will be paid back. Normally, money market funds invest in US Treasury issues, short-term corporate paper, and certificates of deposit. There are different kinds of money market funds based on the type of securities they buy. However, the most significant distinction is whether the dividends earned are taxable or tax-free.

The Advantages of Money Market Funds

With this type of investment, you are allowed to write checks that draw from a money market fund. This allows you to enjoy the benefits of dividend earnings, plus you can easily access your cash. However, you need to verify with your institution first regarding restrictions and fees.

Money market funds are most practical for parking cash you need in the short term. These needs may include down payment for a house, a car or a vacation. Also, since money market funds are completely liquid, you can sell your shares in a money fund anytime you want to.

Who Invests in Money Market Funds

Money market funds are for investors who want to earn decent returns from safe investments. These investments are usually liquid. This means that you have the privilege of drawing out the money within a few business days if you need to. Money market funds also allow you to take advantage of increasing interest rates. This is made possible by stashing your money in an investment that adjusts with the movements of the market.

Stock Market 101: A Guide To How Things Work

In a nutshell, the stock market is a market place for business people. Goods are sold to the public in a public market. However, in the stock market, the public is sold share. Shares are the form in which company stock is sold. When a person purchases more shares in a company, they have a higher ownership in that company.

In the stock market, there is the primary market and the secondary market. In the primary market, companies sell shares to investors to raise financing for their operating expenses. In the secondary market, investors buy and sell shares in companies to other investors. Constantly changing market conditions are the basis of those buy and sell decisions.

A stock market operates much like an auction house, with a systematic way of buying and selling. The system in the stock market involves a great deal of bustling activity. Often there are people running around frantically, shouting and gesturing at one another.

The purchase and sale of stock starts at various places. A broker is contacted if a person wants to buy stocks in a certain company. The broker will take the investor’s money to the stock exchange to coordinate with a floor broker.

In most cases, the floor broker works for the company selling stock. Right on the stock exchange floor, brokers buy the desired stock for the investor. Once the deal is made, it is communicated to a broker and the investor then becomes a stockholder of that particular company.

Investors may decide to sell their stock. Usually investors want to sell their stock when the price per share increases so they can realize a profit on their investment. For example, a person may purchase 100 shares at the price of $25 per share. When the price increases to $35 per share, the person can sell the 100 shares and make a profit of $1,000.

The driving force behind the stock market is the basic economic principal of supply and demand. The number of stocks open to the public is the supply. The number of shares that investors what to purchase affects the demand of the stock in a certain company.

The constant change in the cost of stock is a result of conditions in other markets. For example, if people feel that the economy is growing they are apt to purchase more stocks. However, when the economy is in a decline, the majority of investors tend to sell off their stocks. On the flip side, some investors use this time to buy because the stock prices are usually at a discount.

There are quite a few business people who make long term investments in the stock market. In some situations, stocks go down in value and a stockholder loses money. There is no guaranteed profit when investing in the stock market. Thus, when a person is flexible and able to handle the constant changes of the stock exchange they are more likely to experience a profit.

So this is how the stock market works. In the end, patience, education and experience usually equals greater long term success.

One of the most common questions from beginners in the stock market is, “How much money can I earn?”

Some want to hear generic answers like “10000 per month” or “3000000 per month.” But it is important to say that if someone says he can make 100 thousand dollars in the stock market every month, that means absolutely nothing. If he has 10 million to trade and makes about 100 thousand dollars, honestly his results are nothing special. So we must ask these questions and think about the answers in percentage rather than fixed values.

But then, in terms of %, how much one can make trading stocks?

It depends on the investor and the mood of the market in which it operates / invest. A good investor can achieve consistent gains of 2% to 5% every month. Obviously some months will be much better than others. Eventually, the profits will be low and even small losses may occur. So is intelligent and wise to expect an average gain of 3% per month.

Of course, many investors can yield much higher than 3%. Some are famous for withdrawing up to 10% every month with no long periods of losses. However, many people forget that these guys are not only professionals but they represent the elite of the elite of the world’s best investors and traders. And besides being extremely difficult to reach those levels, the majority does not reach them even trying too hard. Naturally, most people can become great but very few investors will be the best of the best.

Besides the “you” factor, there is the “market” factor.

Ok, in recent years has been possible to draw profits from soaring stocks, but this situation is not permanent. The foreign stock markets will continue to follow bull trends in the coming years but eventually, the market will decide not to go anywhere. So when that happens, those who can get 1% or 2% will be very satisfied.

Now you can see that the answer to “How much can I earn in the stock market” depends on a number of factors:

• Your skills
• The current mood of the markets
• The capital available to invest / trade

So my dear reader, if you want to know what to expect from your investments in stocks, keep in mind that is good to make 3% per month. Large stock funds are considered the best in the world when they make sometimes “only” 30% per annum. Okay, they are large and have trouble making money because of liquidity but if we compare them with an ordinary investor, we can conclude that to expect anything above 30% to 50% per annum is not reasonable.

You can make more if you really know how to invest in the stock market. But you do not need all this much to get rich. Just keep investing properly in companies with good fundamentals and then, making up 20% a year, one time or another you surely will get rich. Just do not get hasty

Rising Volume in Penny Stocks

Rising volume when prices are falling can come in two flavors. There are volume spikes which typically indicate a short term bottom as those hoping for higher prices bail; and then there are the gradual build up in volume type moves accompanied by gradual but continuing declines in price. These are the sickening moves that happen from time to time where you have a blow off type volume move over a period of days that results in very low prices relative to the general price level and is usually accompanied by a V shaped volume and price spike back in the other direction. The problem is having the patience and the nerve to stick your neck out in such a decline. You have to gradually average in to such a move as the odds of catching the bottom tick are almost nil. You will find these types of plays all over the place during a bear market.

In a bear market, there are stocks that still rise. However, in a bear market, there are times when even the good stocks are pulled down and you find declining prices on average or falling volume. Falling or average volume when prices are falling is usually a sign of strength, not weakness; especially if the stock has generally been in an uptrend prior to the short term down trend.
When a stock exhibits steady volume when prices are steady, then this doesn’t really give us anything to go on. It doesn’t give us any insight into where prices will necessarily go based on a volume read, but the fact that the price range is narrowing suggests that something will occur soon enough. It is then that we will get both a volume and a price read to determine the sustainability of the next move.

There is a close relationship between price and volume. Although indicators have been built on various volume measures, all indicators have a couple of inherent problems and we continue to feel that it is important to view price and volume as a relationship that says different things about a stock when the general trend is up versus down, versus sideways. In general, rising prices should be accompanied by rising volume for the market and/or stock to be healthy.

Similarly, falling prices should be punctuated with volume spikes and to a lesser degree, rising or steady volume shows a healthy continuation to the downside. Falling volume that is associated with rising prices generally is a red flag warning you to be careful as a healthy correction could be just around the bend.

Average volume on rising prices generally occurs when a stock is turning from down to up or sideways to up or sideways to down. Generally a stock that moves from up to down has large prices drops that is accompanied by large spikes in volume.

If you intend to trade stock, you should only ignore volume at your own peril. It can give you the comfort to stay with a position when times are tough, or to signal that you need to lighten up or get out of a position when things seem fine. Volume recognition is your friend just as is the trend.

Article Written by wallman Hot Penny Stocks

The market itself can indicate how a stock will fare in the coming months. Looking at the overall direction of the market will tell you about future trends. Most, if not all, stocks move with the market. If the stock market is experience a period of growth (a bull market) most stocks will steadily grow. If the stock market is in a decline (a bear market) most stocks will slowly lose value. There may be one day bumps here and there but the general trend will follow the flow of the market at large. To determine the direction of the market only two pieces of information are needed; price and volume. Price refers to the trend of prices of stocks. Volume refers to the amount of stocks being traded. When these two figures are put together it reveals whether there are more sellers in the market or there are more buyers.

To determine price, day traders and investors use various indicators of technical analysis: Simple Moving Average (SMA) or Exponential Moving Average (EMA), Relative Strength Index (RSI), Moving Average Convergence/Divergence (MACD), Bollinger Bands. These indicators help traders and investors determine whether the market is going to continue in the current trend or reverse course.

To determine volume, traders and investors look to the daily sales volume of the markets. The daily sales volume is easily obtained from several websites online.

If the stock has experienced a high-volume day and prices are up then the stock is up. When these conditions exist larger investors, such as institutional investors and mutual funds, will buy more and will boost the market further upwards. Conversely, if the stock had a high-volume day but prices are down. It is a sign of the bigger investors backing out of the stock and can be a sign of a downward turn.

However, a high-volume, low-price day does not necessarily mean a turn for the worse. Often times if there are several days in a row with high-volume and high prices, there will be a day where the volume remains the same and the prices decrease. This trend is referred to as “profit taking” and is a result of investors taking the profits they built up in the last few days.

If there is a continual presence of down days in the market, it could be a sign of a stall or a reversal of course. Institutional investors and mutual funds buy and sell in large volume which means they have the power to move the market. When they begin moving in a direction, the rest of the market follows.

Investing in stocks requires a lot of efforts and hard work. However, if you don’t want to monitor the market for hours every day and analyze specific stocks for trends and volume you would probably be interested in some services which provide all necessary analytical information and reports. One of them, Technical Stock Screener service provides reports that will help traders to find Trending Stocks as well as stocks which reached New High and Lows recently. For trends confirmation there are Volume Trends or Rising On Unusual Volume reports. Such information will help traders and investors find best investment opportunities on the market.

A lot of traders and investors are persuaded that decision to invest in specific stock should be reasoned by trend signals showing by the stock. They buy if they see the stock is in trend and prefer to stay away if it does not.

FMCG Stocks are now catching eye of investors for investing as best option in stock market. Analysts and market experts are now putting a ‘buy stock’ recommendation on select FMCG stocks.

FMCG stocks seem to be the dark horse on the bourses. These stocks are now catching the eye of investors. Analysts and market experts are now putting a ‘buy’ stocks fromselect FMCG stocks, a move which is not just being considered as a safe ploy but also as a defensive strategy to counter a volatile and uncertain market.

The trend is visible on the bourses where leading FMCG counters have outperformed the overall market during the last few sessions. Take the case of MNC giant Hindustan Unilever (HUL). The company’s stock has made its 52-week high at Rs 267 on December 19, at a time when BSE’s benchmark index, Sensex, was trading under the 10,000-mark (down by over 50 % from its life-time high of 21,000 made in January, 2008).
Similarly, the scrip of another FMCG giant, Godrej Consumer, is currently hovering near its 52-week high of Rs 145. On Wednesday, the stock price closed at Rs 138. Other companies like P&G , Dabur(I) and Colgate Palmolive have also recorded better performance on the bourses. Market analysts who earlier stayed away from FMCG stocks are now taking a fresh look at these rising scrips. Though some reservations about the FMCG sector still persists, the analysts have accepted the “safe” nature of these stocks.

“Fall in commodity prices (from crude, vegetable fat and food articles) is the main reason behind the outperforming FMCG sector. Earlier trends indicate that fall in commodity prices will lead to an improvement in profitability of the FMCG companies in the next fiscal. Such a phenomenon will not remain limited to just soaps and detergent companies; even paints, confectionery, food processing and others will get benefit of the fall in commodity prices,” said Ajay Parmar, head, equity, Emkay Global Financial Services. “Those who want to play defensive can invest in such stocks,” he added.

Anand Shah, a research analyst at Angel Broking, is also optimistic about the FMCG sector. Though the markets (at current level) have already discounted the positive impact of the fall in the raw material costs, Shah believes that those who wish to play safe should invest when the prices of the FMCG scrips fall.

“FMCG companies will be able gain cost advantage on raw materials, freight, transport and packaging. The balance sheet of the FMCG companies will definitely gain strength in the coming quarters,” Shah said while cautioning the investors to adopt a stock-specific approach instead of a sector-specific one.

However, not all are convinced. “Now-a-days , smaller players are eating into the business of big MNC players in the FMCG sector. Biggies are therefore losing their market share,” says VVLN Sastry, country head at Firstcall India Equity Advisors. “There is some momentary activity in FMCG stocks, which is a part of the defensive strategy adopted by the traders to restrict the downslide. But this trend will not prevail for a long time,” he added.

3 Successful Online Penny Stock Trading Rules

No one can logically debate that penny stocks aren’t a source of great profit. Over the course of time many people, including myself, have made money trading penny stocks. And so can you. However, it’s first important to lay a proper foundation for the future. For starters, here are three successful online penny stock trading rules.

Rule 1: Staying Safe

The investing field has its fair share of fraud. Typically, the “pump n dump” scheme is seen in the penny stock arena. However, it’s possible to avoid becoming a victim 100%.

Your first rule is to ignore information that comes from unsolicited emails. This is one of the prime communication sources for these scam artists. The other thing you can do is qualify “hot penny stock picks” that you see in penny stock forums. Don’t just trade a stock because some unknown person says it’s going to hit tomorrow.

Always do research. Even top pros will tell you to research their stock picks. It’s just common sense.

Rule 2: Online Stock Broker

I’ll just assume you’ll be using an online penny stock broker. It is vital that you do your research and open an account with a well-known, reputable broker. Don’t sacrifice pennies on fees for capital security.

We’re talking about your money here. While low fees are great, knowing your money is safe and accessible at all times is better.

Rule 3: Penny Stock Software

While there might be software out there for penny stocks, typically the tools you have at your disposal from your broker and free online tools, like Google & Yahoo, will be enough.

If you’re looking for penny stock picks for inspiration or hints on where to look for your next great trade, think about subscribing to a newsletter. Remember, always research everything.

If you’re interested, I have four other success rules to share with you. Remember, trading penny stocks online is potentially very profitable, it’s also risky (like anything else). Take the right steps, make the right moves and trade with knowledge and you’ll be set.

Penny Sleuth’s 10 Tips for New Penny Stock Investors

Many people who have never played the stock market game before start with penny stocks. Heck, even if you’ve been around investing for decades, penny stocks are still your ticket to triple, quadruple or even quintuple-digit gains. You just can’t see those if you bet on the Dow.

The problem is penny stocks are a bit more difficult to research than their large blue chip cousins. To make this a bit simpler for first-time investors, here are 10 things to keep in mind when looking for solid penny stock plays:

1. Think Outside the Box

When it comes to penny stocks, some of the wackiest ideas have translated into serious gains for investors who were willing to think outside the boxa

Back in the day, who would’ve thought that computers were the “wave of the future”? Early investors in companies like Microsoft and Yahoo, that’s who! They made a bundle by thinking outside the box and betting on business models and technologies that were out of the ordinary.

There are new technologies and business models out there in the penny stock world today. Are you willing to think outside the box on your next penny investment?

2. Know What You Own

In the world of Wall Street, whether you’re investing in penny stocks or blue chips, one of the biggest rules is to “know what you own.” What does that mean?

You should know the company you’re investing in inside and out. Know its business. Know how it makes money. Know its management.

But as important as this rule is for any investor, it’s doubly important for investors in penny stocks! That’s because with penny stocks, share prices can change quickly if you don’t keep a handle on them.

So know what you own and your investments won’t end up owning you.

3. Don’t Get in Over Your Head

When you see a hot penny stock that’s ready to take off, it can be hard to keep from cashing out your 401(k) to buy as many shares as you canagetting in over your head with penny stocks is an almost sure way to get burned.

Even though penny stocks can make you some serious money, they’re volatile – and that means you shouldn’t put more than 10% of your portfolio on the line.

What’s the smart penny investor to do? Set up an account for just penny stocks and load it only with money you’re prepared to lose.

4. Don’t Be Afraid to Aska

One of the beauties of penny stocks is the fact that they’re smaller companies that are out there for smaller investors.

As an individual investor, a big multinational might not give you the time of day. That’s usually not the case with penny stocks. In fact, it’s not unheard-of for individual investors to pick up the phone and chat with a company’s CEO or CFO on the spot.
If you’ve got a burning question about a penny stock prospect, e-mailing or calling the company’s investment relations firm or corporate offices might be one of the most telling ways to figure out if that stock’s for you.

5. Be a Skeptic

Remember when we said to think outside the box? Well, do that, but don’t forget to be a skeptica

Just because a company has an interesting new idea doesn’t necessarily mean it’s a good penny stock prospect for your portfolio. The key isaDo you think that it can monetize its idea?

If that answer isn’t immediately clear, it’s time to dig a little deeper into that company’s prospects. Thinking outside the box is a great way to get innovative companies on your radar, but being a skeptic is the only way to make sure that translates into gains for your portfolio.

6. Think, Then Buy

When you’re ready to buy shares of a penny stock, make sure you take a second to think about what you’re doing. All too many first-time penny investors take the jump on just a few shares of a penny stock without realizing how much the size of their investment will affect their returns.

Think about it this wayaYou’re an investor who sees an attractive stock for $1 per share. You don’t have a large portfolio yet, and you don’t want to take too much of a risk, so you buy just 50 shares for $50.

Turns out you picked a winner that made 40% in just a week – $20 of pure profit. You sell and rejoice in your penny stock success. But waitais that celebration justified?

You’re forgetting about those $10 execution fees you paid to buy and sell that stock. That’s $20 altogether. Looks like you only broke even, despite the fact that you had a stellar stock.

When you’re buying penny stocks, make sure you’re buying a large enough quantity that account costs (like execution fees) don’t eat up your profits. You can find out your minimum returns to break even with this:

Execution Fees/Stock Acquisition Price x 100 = Break-even Gain (Percent) Needed

7. Don’t Get Greedy

Lots of penny stock investors see 200%, 500%, even 1,000% gains on a stock but still end up losing money in the end. It’s not because they didn’t plan their buys properlyait’s because they got greedy!

It doesn’t matter how much money a stock makes if you’re not ready to press the button and realize those gains. That’s why you need to set solid exit points for any penny stock you buy.

It’s human nature to want to hold onto an investment as you see it climb with no end in sight, but doing that is a great way to miss out if that trend turns around. When you analyze an investment, think about a logical exit price and sell for that. Picking solid exit points will become easier as you develop your investing chops.

8. Don’t Get Too Nervous

The flip side of getting greedy is getting nervous with stocks that are seeing major gains in short periods of time. Relax. As a penny stock investor, you’ve got to be ice-cold when you see one of your picks take off.

Again, it comes down to picking good exit points for your investments. If you’re sure that your stock is bound to start losing ground before you hit that target price, maybe it’s time to re-evaluate what that price should be.

Remember, you can reanalyze your targets anytime, but you should never make trades on emotion alone.

9. Be Realistic

While investors might hope for tripe-digit gains on every pick they make, even the most seasoned pros of the investing world make bad picks from time to time. That’s why having realistic expectations is so critical.

As with picking the right target prices, knowing what kind of gains to expect comes with experience as a penny investor. It’s tricky to know when you should expect 20% from a stock and when you should expect 200%.

But setting those realistic expectations now, from the get-go, will get you into a habit that will help you structure your portfolio in a way that will get you the most bang for your investment buck.

10. Be Ready for the Next One

It’s easy to sit back and relax after you’ve just made a trade – especially if you banked a nice gain. But not so fast!

As much as you might want to bask in your investing success, fight that urge.

The secret to the penny stock game is to always be on the move. Always be on the lookout for that next penny powerhouse – the next one might just be your best yet.

Cheers,

Jonas Elmerraji

P.S. That’s a lot to look for. This kind of steady research and analysis can be very tedious. In fact, by the time you finish it, you may have already missed the boat. These penny stocks can shoot up in the blink of an eye. That’s why we send out the Penny Sleuth every business day. We don’t want readers to miss a thing. To get the insights we provide on the penny stock markets visit www.pennysleuth.com

Investing in the stock market can be a difficult enterprise to engage in. Make a wrong choice and you can lose a bunch of money really quickly. One thing that isn’t hard about stock market investing though is the mechanics of investing itself.

With online stock trading available so cheaply, it’s easy to pick a stock and place an order with just a few cli cks of your mouse. And if, by chance, you aren’t technologically savvy and don’t like to work on the Internet yourself… you can buy and sell stock by simply picking up the phone and calling your local stockbroker and telling them what you want.

Trading US bonds, and corporate bonds, and even precious metals like gold and silver can be just as easy.

Of course… it’s easy when you’re dealing with American companies that are listed on the US stock exchanges such as the NASDAQ and the New York Stock Exchange, or even the American stock exchange (the pink sheets). But what happens when you want to buy stock in foreign companies? It’s not as easy then!
So what do you do if you want to buy stock in a foreign company? That’s what I’m going to talk about in this article today.

For the most part you’re going to have to purchase the stocks on foreign exchanges that are located abroad. But that isn’t always the case as some foreign companies sell shares on American exchanges. These shares are usually called American depository receipts or ADRs.

It’s true that not all foreign companies sell American depository receipts on US exchanges such as the NASDAQ or the New York Stock Exchange, but many of the more established and larger companies abroad will. And after all, if you’re just testing the waters of foreign stock investment, it may be a good idea to stick with some of the larger more established companies anyway.

ADRs are traded on the US stock exchanges and are treated almost exactly like US stocks. You can usually buy them in units of 1 to 10 shares of the foreign companies stock that they represent. The ADR certifies that the shares have been bought and are currently being held in a sort of custodian account outside of the United States.

One major advantage of purchasing American depositary receipts is that generally speaking you will pay less for broker commissions than you would on shares that were actually bought on foreign exchanges because even if your stockbroker does offer foreign shares in your account, chances are they’re going to charge you more to make the trades.

Another great advantage is that dividends paid on ADRs are usually paid in US dollars which can be a huge benefit and save you considerable currency risk from fluctuating foreign currencies.

So there you have one very simple way to get the benefits of investing in foreign companies without the hassle of buying foreign stocks on foreign exchanges that you are not familiar with.