Today I’m going to recap the stock market for the trading week ending Friday 06/25/10.
This week we didn’t see much positive action in the stock market. However, on Friday we became one step closer to having a financial reform bill pass that the banks and the government can agree upon. Once the bill is signed in writing I believe the banks will start to lend more money to small business and the everyday consumer. This will help fuel growth back into the economy. More money will be spent on consumer goods and businesses will eventually higher more employees in order to keep up with the growth of the economy. More products sold = more business = jobs.
Jobs are the single most important component to drive the economy higher. If people are unemployed they are not able to spend money. That’s the bottom line! The economic numbers looked terrible this week. The economy was growing slower than expected and the housing numbers were negative, which resulted in a 300+ point drop in the DJIA (Dow Jones Industrial Average) I’m confident that the banks will begin to lend more money in the near future. If they don’t the economy will be slow to come back and the stock market will have a tough time going higher.
Another interesting move I saw on Friday was a huge volume spike in WFT (Weatherford International) Of course whoever has been following me knows I really like this company. In the last couple minutes of trading there was a massive amount of buying that took place. WFT was up and down for most of the day and boom a huge spike occurred in less than 5 minutes. This wasn’t a normal move. The volume traded on this stock was more than 200% of the normal volume on a single day. This is very positive for a stock. So keep your eye on WFT next week because usually high volume to the upside is followed with positive news and increased buying.
Well that’s it for today. Enjoy the rest of your Sunday. Stay positive and don't let the stock market push you around. Stay the course!
Thank You,
Clay-
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Sunday, June 27, 2010
Thursday, June 24, 2010
The Need For Diversification When Investing.
Well today wasn’t much of a day for the stock market. The Dow gradually worked its way lower and lower to close down a hefty 145.64 to settle at 10,152.80. The jobless claims came in line with what the analyst had predicted. There wasn’t much news to drive the market in a positive direction. Nike reported yesterday and they were in line with the analyst. Investors didn't seem very upbeat about Nike's earnings and consequently the stock sold off and dragged the rest of the market with it. In this market a company must under promise and over deliver. Until unemployment decreases substantially the market will continue to be volatile and making substantial money will be limited. The market needs direction!
Today is a perfect day to talk about diversification. Diversification is extremely important when investing in stocks. Diversification is a process of spreading your risk among multiple companies instead of relying on one company to determine your financial future. Many went through and suffered the recent financial disaster and watched companies they never thought would fail file for bankruptcy. Many investors had all their money tied up in individual companies. One company that comes to mind that ran into financial trouble is General Motors. I personally new people that had money invested in this company. Some had most if not all their retirement in GM Stock. They lost everything! It’s sad but stuff like this happens and that is why diversification is essential in the stock market. It allows you to withstand devastating blows to individual companies.
Diversification is the best way to protect yourself against bad news and unforeseen problems that may occur in the future. The downturn of the economy can destroy your assets overnight. Another recent example of a company that has run into bad times is BP. No one would have ever thought that a company so large and prominent could be on the verge of bankruptcy because of one incident. An incident that has changed many lives and in my opinion could have been prevented if the company had maintained proper functioning of the safety nets to prevent an accident from occurring in the first place. One thing I remember from working at GM is that all accidents are preventable. You have to always play defense. That's what diversification is for!
So please diversify your assets by investing in multiple companies or find yourself a great mutual fund that is spread amongst multiple industries. This strategy will allow you to participate in industries that catch fire and take your stocks or fund higher. It’s tough to be in one individual company and benefit from other industries that are going up while your stock is out of favor and your not making any money because you failed to diversify. I always think of the opportunity cost. I personally invest in a handful of companies and at times I want to cut and run onto the next great stock. The first thing I determine before I make my decision is will I benefit if I sell this stock to move onto another. If the opportunity cost is in my favor than I have no problem moving onto the next stock. I diversify among multiple stocks because the reality is not all stocks move up at once. Some industries are in favor while others are not.
Some may say diversification cuts into the gains you can make in individual stocks and that may be true. However those who got caught with all their money in Enron, Lehman Brothers, WorldCom, Washington Mutual, and GM wish they would have diversified. I personally have been caught with a substantial amount of money in a stock and have lost more than I would like to discuss. I learned from my mistakes and want to save a little heartbreak and help others (You) not make that mistake of potentially losing it all. If you have little money it is hard to invest in multiple companies (commissions will eat all your profits) so you will be better off investing in a mutual fund. If you can invest more ($5000) try to have your money in at least 5 stocks that are in a different industries and have nothing to do with each other. If you still want to take a shot at an individual company beware of the ups and downs. You can still make money, but you’re at the risk of the markets large downswings. You may have invested in a good company, but if the fund managers aren’t investing in your particular investment you could be sitting on a losing stock for quite some time.
I invested in individual stocks for the first 5 years of investing and was lucky enough to make money before the market came to a screeching halt. I have since over the past few years changed my tune and have diversified my portfolio to my liking. Yes I still trade individual stocks, but have diversified some of my assets over multiple stocks and into mutual funds to even out the market volatility of owning individual stocks.
Remember Diversify, Diversify, Diversify!!!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
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Today is a perfect day to talk about diversification. Diversification is extremely important when investing in stocks. Diversification is a process of spreading your risk among multiple companies instead of relying on one company to determine your financial future. Many went through and suffered the recent financial disaster and watched companies they never thought would fail file for bankruptcy. Many investors had all their money tied up in individual companies. One company that comes to mind that ran into financial trouble is General Motors. I personally new people that had money invested in this company. Some had most if not all their retirement in GM Stock. They lost everything! It’s sad but stuff like this happens and that is why diversification is essential in the stock market. It allows you to withstand devastating blows to individual companies.
Diversification is the best way to protect yourself against bad news and unforeseen problems that may occur in the future. The downturn of the economy can destroy your assets overnight. Another recent example of a company that has run into bad times is BP. No one would have ever thought that a company so large and prominent could be on the verge of bankruptcy because of one incident. An incident that has changed many lives and in my opinion could have been prevented if the company had maintained proper functioning of the safety nets to prevent an accident from occurring in the first place. One thing I remember from working at GM is that all accidents are preventable. You have to always play defense. That's what diversification is for!
So please diversify your assets by investing in multiple companies or find yourself a great mutual fund that is spread amongst multiple industries. This strategy will allow you to participate in industries that catch fire and take your stocks or fund higher. It’s tough to be in one individual company and benefit from other industries that are going up while your stock is out of favor and your not making any money because you failed to diversify. I always think of the opportunity cost. I personally invest in a handful of companies and at times I want to cut and run onto the next great stock. The first thing I determine before I make my decision is will I benefit if I sell this stock to move onto another. If the opportunity cost is in my favor than I have no problem moving onto the next stock. I diversify among multiple stocks because the reality is not all stocks move up at once. Some industries are in favor while others are not.
Some may say diversification cuts into the gains you can make in individual stocks and that may be true. However those who got caught with all their money in Enron, Lehman Brothers, WorldCom, Washington Mutual, and GM wish they would have diversified. I personally have been caught with a substantial amount of money in a stock and have lost more than I would like to discuss. I learned from my mistakes and want to save a little heartbreak and help others (You) not make that mistake of potentially losing it all. If you have little money it is hard to invest in multiple companies (commissions will eat all your profits) so you will be better off investing in a mutual fund. If you can invest more ($5000) try to have your money in at least 5 stocks that are in a different industries and have nothing to do with each other. If you still want to take a shot at an individual company beware of the ups and downs. You can still make money, but you’re at the risk of the markets large downswings. You may have invested in a good company, but if the fund managers aren’t investing in your particular investment you could be sitting on a losing stock for quite some time.
I invested in individual stocks for the first 5 years of investing and was lucky enough to make money before the market came to a screeching halt. I have since over the past few years changed my tune and have diversified my portfolio to my liking. Yes I still trade individual stocks, but have diversified some of my assets over multiple stocks and into mutual funds to even out the market volatility of owning individual stocks.
Remember Diversify, Diversify, Diversify!!!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
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Sunday, June 20, 2010
Happy Father's Day! The Importance Of Investing, Saving, And Getting Out Of Debt.
First off I would like to say Happy Father's Day!
Today I'm going to briefly talk about the importance of investing, saving, and staying out of debt. This is somewhat off topic from stocks, but will be beneficial to your investing future. Over the past couple of years you may have read about and seen people who are in financial trouble. People who have lost their jobs, homes, and financially cannot support themselves. The economy was crushed and the financial system has failed us. This was and still is an ongoing disaster! For many including myself this was a perfect wake up call. Many of us live on the edge week in and week out. We are a week out from financial disaster. The saying living pay check to pay check is sad but true. It doesn't have to be like this!
The one thing to realize is that the only person that can help you is yourself. I'm sorry to say at least for those people that are in there 20's and 30's that the government will not be there to help. Social Security isn't properly funded and in my opinion will not be around by the time I retire. This is another reason why investing for your future is so important. You have to want to be financially stable. If this isn't that important to you then it won't happen.
The first step is to get out of debt. Many of us have debt that include student loans, car loans, credit cards, and a mortgage to name a few. Basically, were making other people rich by borrowing money and paying interest to them every month. To me it's more of a headache than anything. It's hard to get ahead financially when your trying to invest and at the same time you are paying interest to the banks. You would have to have some pretty lucrative investments to generate a return that could cover the amount of interest you are paying on your loans and grow your investments. So please pay off that debt. You are robbing yourself of the good life! I'm being robbed right now as well, but I have made it a priority to pay off the debt that I have so I can invest more money for my future.
Next would be saving money. Having a savings account or what some people may call an emergency fund (For all those Dave Ramsey's Fans) is important to protect yourself from life's unexpected problems. If you have built up a decent amount of savings say 3 to 6 months of your living expenses life wouldn't be as stressful. If your car needed repairs, or your hot water heater decided to fail and ruin your floor in your utility room (this happened to me!) having savings would make these situations be more of a headache than a financial disaster. Having cash on hand will protect you from having to go into debt to pay for what could easily be covered with a little savings.
Lastly, you need to invest your money overtime for the future. Invest for your age and risk tolerance. Invest as much as you can. If its $5 a week or $100 its something. Take advantage of your employer's 401K program and invest up to what your employer will match. Usually the match is a percentage of your income, once you have met the full match put the rest in a Roth IRA or into a taxable investment account. If your employer doesn't offer a 401K program open up a Roth IRA.
I can't stress enough that just starting to improve these 3 key areas of your finances will help you drastically down the road. Reduce debt, save money for an emergency, and invest like crazy! When it's all said and done you should have a large amount invested and should be able to live comfortably off the interest your money generates for you. Your hard earned money is working for you and your not giving it away to make others rich! Plus who knows what the future will bring. Our taxes may rise, health care costs will be higher as we get older, and of course there is inflation. Start early and continue to play defense with your money and retirement should be a delight.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Today I'm going to briefly talk about the importance of investing, saving, and staying out of debt. This is somewhat off topic from stocks, but will be beneficial to your investing future. Over the past couple of years you may have read about and seen people who are in financial trouble. People who have lost their jobs, homes, and financially cannot support themselves. The economy was crushed and the financial system has failed us. This was and still is an ongoing disaster! For many including myself this was a perfect wake up call. Many of us live on the edge week in and week out. We are a week out from financial disaster. The saying living pay check to pay check is sad but true. It doesn't have to be like this!
The one thing to realize is that the only person that can help you is yourself. I'm sorry to say at least for those people that are in there 20's and 30's that the government will not be there to help. Social Security isn't properly funded and in my opinion will not be around by the time I retire. This is another reason why investing for your future is so important. You have to want to be financially stable. If this isn't that important to you then it won't happen.
The first step is to get out of debt. Many of us have debt that include student loans, car loans, credit cards, and a mortgage to name a few. Basically, were making other people rich by borrowing money and paying interest to them every month. To me it's more of a headache than anything. It's hard to get ahead financially when your trying to invest and at the same time you are paying interest to the banks. You would have to have some pretty lucrative investments to generate a return that could cover the amount of interest you are paying on your loans and grow your investments. So please pay off that debt. You are robbing yourself of the good life! I'm being robbed right now as well, but I have made it a priority to pay off the debt that I have so I can invest more money for my future.
Next would be saving money. Having a savings account or what some people may call an emergency fund (For all those Dave Ramsey's Fans) is important to protect yourself from life's unexpected problems. If you have built up a decent amount of savings say 3 to 6 months of your living expenses life wouldn't be as stressful. If your car needed repairs, or your hot water heater decided to fail and ruin your floor in your utility room (this happened to me!) having savings would make these situations be more of a headache than a financial disaster. Having cash on hand will protect you from having to go into debt to pay for what could easily be covered with a little savings.
Lastly, you need to invest your money overtime for the future. Invest for your age and risk tolerance. Invest as much as you can. If its $5 a week or $100 its something. Take advantage of your employer's 401K program and invest up to what your employer will match. Usually the match is a percentage of your income, once you have met the full match put the rest in a Roth IRA or into a taxable investment account. If your employer doesn't offer a 401K program open up a Roth IRA.
I can't stress enough that just starting to improve these 3 key areas of your finances will help you drastically down the road. Reduce debt, save money for an emergency, and invest like crazy! When it's all said and done you should have a large amount invested and should be able to live comfortably off the interest your money generates for you. Your hard earned money is working for you and your not giving it away to make others rich! Plus who knows what the future will bring. Our taxes may rise, health care costs will be higher as we get older, and of course there is inflation. Start early and continue to play defense with your money and retirement should be a delight.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Thursday, June 17, 2010
Apple Is Back In Action! Hit The 52 Week High. Will It Go Higher?
Hello Everyone! Today I want to come back to Apple (AAPL) just like I did Weatherford International (WFT). Over the past 6 days Apple has moved higher. Just today Apple touched its 52 week high of $272.90 and closed near the sessions high. What does this mean? It means confidence is rebuilding and buyers are stepping back in the market to own the best merchandise they can buy and Apple is on their list. Now you may be thinking that AAPL is expensive and it has gone up a lot over the past year. You may be afraid to buy the stock and I’m here to tell you not to be. I will explain why you shouldn't think that way.
1. Just today the whole market was down the majority of the day and Apple was up. This is a very good indicator of what fund managers are looking for. Stocks that are up on down days are hinting to everyone that there is buying interest and you should never ignore those stocks. Stocks like this will move up much higher on a positive day.
2. Apple reports earnings about a month from now and usually money managers anticipate the earnings and buy before that date. You should see Apple move higher in the coming weeks because of earnings.
3. Apple went up 6 days in a row! This is a positive sign that money is flowing back into this stock.
4. When the market was being taken down all through the month of May Apple shed about 15% while other company’s continued to go down in value and Apple traded in a sideways pattern not losing value but staying steady. Apple stood its ground and is back above the price it was at before it got knocked down in May.
5. Apple continues to have great products and the Ipad was and still is a success. We should see more revenue coming in with the new release of the Iphone. The outlook for the Iphone looks promising. Kids prefer Apple over any other device. Of course other products offer many of the same features, but in the end kids choose Apple. I do! Products that kids love tend to sell. I always say the kid wins because they bug their parents until they get what they want. Why do you think Pixar movies do so well? Kids love them and the parents have to come along for the ride. Pixar just made double the profit because the kids win in the end.
6. Apple currently has no debt and has 23.16 Billion dollars of cash on hand.
7. Apple is cheap! Cheap as it only trades a little less than 1.5 times its long term growth rate of 16.07%. A key thing to see is never buy a stock that is trading more than 2 times its growth rate. I promise you that you will lose money. Money mangers that invest in growth companies never invest in companies that trade at 2 times their growth rate. Money managers control the stock market so if they are not willing to pay for the stock then that stock will go down over time. Now lets get to it and crunch the numbers below.
Apple trades at a P/E of 23.05 You can find all these numbers at http://finance.yahoo.com/
P/E = Price/Earnings
Apple is currently at $271.99 a share and has earnings of 11.80
So you take $271.99/11.80 and you get a P/E of 23.05
Now one of the numbers I use to value a stock is the P/E. According to the Analysts next years earnings is said to be at 15.73 eps (Earnings per share)
That means from the current level of 11.80 the earnings is predicted to be over 33% higher.
That means at the current price of $271.99 /15.73 (next yrs earnings)
You would get a P/E of only 17.29 and Apple would be trading a little over 1 times it’s growth rate. Now that’s cheap!
If this is the case Apple would be considered cheaper because the P/E has decreased because the earnings have gone up.
I say if the stock is strong and willing to trade at a P/E of 23.05 it has the potential to trade the same P/E next year. If this were true you would take the earnings=E (15.73) and multiply by the P/E to get the price of the stock if it were to trade at the same P/E of 23.05
E*P/E (15.73*23.05)
You would take 15.73*23.05=$362.57 (Price Target)
In a perfect world the price target of Apple would be $362.57 next year if nothing changed and the earnings were correct of 15.73 and it traded at the same P/E.
Analyst estimates are currently at average of $311.72. I think Apple will be much higher. So if the analysts are right then Apple stock has another $40 or so to move higher or around a 15% gain from today’s current price of $271.99. That right there is a good indicator that this stock has room to run. 15% move up isn’t anything to cry about since your savings account will rake in a little under 1% at these current levels. You won’t get rich this way!
To be conservative I would comfortably put a $325 price target on Apple for next year because I can't predict the future. Hopefully I’m wrong and it’s much higher!
Here are the key points
-Determine a stocks P/E
-Find the long term growth rate (5 yr)
-Determine if the stock is cheap by calculating the price to the long term growth rate and you will get what we call a PEG Ratio
-If it a stock trades at 2 times its growth rate don’t buy!!! Apple is at 1.43
The data supports itself so please if you want to buy some Apple then do so. Make sure to buy in increments. Apple will break through its 52 week high in the near future and move higher as the momentum of cash flowing into this great company continues. Good luck trading!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
1. Just today the whole market was down the majority of the day and Apple was up. This is a very good indicator of what fund managers are looking for. Stocks that are up on down days are hinting to everyone that there is buying interest and you should never ignore those stocks. Stocks like this will move up much higher on a positive day.
2. Apple reports earnings about a month from now and usually money managers anticipate the earnings and buy before that date. You should see Apple move higher in the coming weeks because of earnings.
3. Apple went up 6 days in a row! This is a positive sign that money is flowing back into this stock.
4. When the market was being taken down all through the month of May Apple shed about 15% while other company’s continued to go down in value and Apple traded in a sideways pattern not losing value but staying steady. Apple stood its ground and is back above the price it was at before it got knocked down in May.
5. Apple continues to have great products and the Ipad was and still is a success. We should see more revenue coming in with the new release of the Iphone. The outlook for the Iphone looks promising. Kids prefer Apple over any other device. Of course other products offer many of the same features, but in the end kids choose Apple. I do! Products that kids love tend to sell. I always say the kid wins because they bug their parents until they get what they want. Why do you think Pixar movies do so well? Kids love them and the parents have to come along for the ride. Pixar just made double the profit because the kids win in the end.
6. Apple currently has no debt and has 23.16 Billion dollars of cash on hand.
7. Apple is cheap! Cheap as it only trades a little less than 1.5 times its long term growth rate of 16.07%. A key thing to see is never buy a stock that is trading more than 2 times its growth rate. I promise you that you will lose money. Money mangers that invest in growth companies never invest in companies that trade at 2 times their growth rate. Money managers control the stock market so if they are not willing to pay for the stock then that stock will go down over time. Now lets get to it and crunch the numbers below.
Apple trades at a P/E of 23.05 You can find all these numbers at http://finance.yahoo.com/
P/E = Price/Earnings
Apple is currently at $271.99 a share and has earnings of 11.80
So you take $271.99/11.80 and you get a P/E of 23.05
Now one of the numbers I use to value a stock is the P/E. According to the Analysts next years earnings is said to be at 15.73 eps (Earnings per share)
That means from the current level of 11.80 the earnings is predicted to be over 33% higher.
That means at the current price of $271.99 /15.73 (next yrs earnings)
You would get a P/E of only 17.29 and Apple would be trading a little over 1 times it’s growth rate. Now that’s cheap!
If this is the case Apple would be considered cheaper because the P/E has decreased because the earnings have gone up.
I say if the stock is strong and willing to trade at a P/E of 23.05 it has the potential to trade the same P/E next year. If this were true you would take the earnings=E (15.73) and multiply by the P/E to get the price of the stock if it were to trade at the same P/E of 23.05
E*P/E (15.73*23.05)
You would take 15.73*23.05=$362.57 (Price Target)
In a perfect world the price target of Apple would be $362.57 next year if nothing changed and the earnings were correct of 15.73 and it traded at the same P/E.
Analyst estimates are currently at average of $311.72. I think Apple will be much higher. So if the analysts are right then Apple stock has another $40 or so to move higher or around a 15% gain from today’s current price of $271.99. That right there is a good indicator that this stock has room to run. 15% move up isn’t anything to cry about since your savings account will rake in a little under 1% at these current levels. You won’t get rich this way!
To be conservative I would comfortably put a $325 price target on Apple for next year because I can't predict the future. Hopefully I’m wrong and it’s much higher!
Here are the key points
-Determine a stocks P/E
-Find the long term growth rate (5 yr)
-Determine if the stock is cheap by calculating the price to the long term growth rate and you will get what we call a PEG Ratio
-If it a stock trades at 2 times its growth rate don’t buy!!! Apple is at 1.43
The data supports itself so please if you want to buy some Apple then do so. Make sure to buy in increments. Apple will break through its 52 week high in the near future and move higher as the momentum of cash flowing into this great company continues. Good luck trading!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Tuesday, June 15, 2010
Weatherford International (WFT) Up 17% In The Past Week
Just wanted to bring Weatherford International back to every one's attention. I stated a little over a week ago that this stock has been beaten down beyond belief and would snap back aggressively when the energy stocks come back into favor. Keep your eye on this monster of a stock. They report earnings on July 20 and this date could possibly be the next big catalyst for this stock. It has run up quite a bit over the last week so be cautious. If you want to buy this stock wait for the stock to pullback a bit and edge in slowly into this stock. If the negative news dissipates off the oil company's you should see even more money come back into the energy stocks. (Hopefully President Obama doesn't crush the oil companies to bad tonight @ 8:00) With oil gaining strength I see WFT coming back as a favorite. From last Tuesday WFT hit a low of $12.34 and closed up today @ $14.45. That is a 17% move to the upside. All I know is there is money flowing back into this company. So all of you have an opportunity to get in at lower prices before WFT gets on a roll again!
I do have to reiterate that I do personally own this stock as I have a bias for this oil service gem, but I can't deny that its a good one. Please do your homework and if you take my advice than I hope it works out for you. I'm here to help and offer my opinion of the best stocks I think will do well in the future.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
I do have to reiterate that I do personally own this stock as I have a bias for this oil service gem, but I can't deny that its a good one. Please do your homework and if you take my advice than I hope it works out for you. I'm here to help and offer my opinion of the best stocks I think will do well in the future.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Sunday, June 13, 2010
Can You Say Westport Innovations!
Westport Innovations (WPRT)
First I would like to Thank Jim Cramer for recommending WPRT and bringing this stock to my attention on Thursday June 3rd. I haven’t been this excited about the potential of a company since my first stock trade of Sirius Satellite radio, which was a money maker back when satellite radio was released to the general public.
The company I'm amped for is Westport Innovations. Westport Innovations develops and creates the technology for natural gas engines and the conversion of diesel engines to natural gas. The company has been around for quite sometime, but since the BP oil spill back in April this company has become much more attractive. The U.S. has been looking to reduce the consumption of energy and to find a fuel that we can replace or substitute so that we don’t have to rely on foreign oil. The U.S. was pushing a bridge fuel and leaning towards clean coal. Which is a funny thing to say as clean and coal shouldn’t be used together in the same sentence. There is no such thing as clean coal. Coal is dirty! That being said President Obama mentioned the word natural gas last Wednesday June 2nd as a way to reduce are oil consumption and veer away from foreign oil. That being said by President Obama is a step closer for natural gas to become a substitute for oil. Obviously this isn’t an endorsement by the government, but just having President Obama mention natural gas as an option could mean a better future for natural gas.
Below you will see my reasons for buying WPRT Stock.
1. Jim Cramer. I have to put him on the top of the list since he is one that brought WPRT to my attention. He is also the guy that I base a lot of my investing ideas on. I endorse all his books and many of his ideas. The guy is an extraordinary investor. He returned over 24% for his hedge fund back in his fund manager days. That means if you would have invested with him he essentially doubled your investment every 3 years. Those types of returns are legendary!
2. Natural gas is a possible substitute for oil and Westport has the technology to capitalize on the shift towards cleaner more efficient fuel consumption. They have the technology to convert diesel engines to run on natural gas.
3. The U.S. is always looking to reduce emissions in the air and natural gas burns cleaner and is more efficient than coal and other gas powered engines. The possibility for government endorsement of natural gas would put Westport in the driver seat for higher profits.
4. Has a deal with Cummings, Volvo, and Delphi. Westport has a joint venture with Cummings one of the largest truck manufacturers in the world to develop natural gas engines. Cummings builds the engines and uses Westport’s technology for natural gas. It’s a win/win for both companies. Westport has said to have the potential to produce 100,000 natural gas trucks in a short period of time. They wouldn’t have to spend a lot of money to ramp up production since they utilize other company’s facilities to create their product accordingly to the CEO David Demers. Other joint ventures include teaming up with BTIC, Juniper Engines, and Weichai.
5. Transport trucks consume more than 20% of the fuel consumed on the road per year. Natural gas is about $1.00 cheaper per an equivalent gallon of diesel. This will help cut cost for the transportation industry and increase profitability for the transportation companies.
6. WPRT Not only sells products in North America, but also reaches out internationally. With a company of this size offering products to countries around the world gives huge potential to grow revenues at a rapid pace. Currently Westport’s 5 year long term growth rate is at 30%. 30% is outrageous growth and this is what growth fund managers look for. Companies that can support this kind of growth will get a lot of attention from funds and essentially the price of the stock will move higher.
7. Only 8 Analyst are covering this company. This means that not everyone knows about this company. Only 86 Institutions hold stock in this company, which is very low. Once this company is discovered by more institutions the price will go up. That means by buying now you will be ahead of the big move once the interest is this stock gains momentum. Remember most of the money is made at the beginning of discovery. Once a stock become popular and well known the opportunity for huge profit is less likely.
8. A great investor has put his money on the line with Westport. Joe Soros has taken a large stake in Westport and is the leading institutional shareholder. Joe Soros is a phenomenal investor and is known for making money in stocks. Pay attention to this guy! Joe Soros should never be ignored.
9. This one is very important. Since February an insider Kevin Douglas has purchased 3,074,070 shares of WPRT ranging from $12.86 a share in February to a recent purchase of $18.18. Now the kicker is this gentleman purchased a total of 55,486,963.50 million dollars worth of stock. He is the largest shareholder is this company and has more shares than any institution or mutual fund. This is perfect example of someone that truly believes in the company and also a hint that Westport Innovations has just begun to grow and generate income for their shareholders. Whenever you see substantial insider buying this is always a good indicator that you may want to think about buying as well. Insiders buy when they feel the value of their company is undervalued and they see higher stock prices in the future. I definitely wouldn’t put 50 Million dollars on the line if I truly didn’t believe the company will perform better in the future. Remember insiders are just like us they invest to make money.
10. I’m investing my money in Westport Innovations. I truly believe this company has potential. With the American Power Act on the horizon and a little help from T Boone Pickens proposing the Pickens Plan I believe Westport will benefit from the shift towards utilizing a cleaner fuel for the U.S. and other countries wanting to reduce the consumption of foreign oil. With continued pressure on offshore drilling and the negative outcome from the BP oil spill I believe natural gas is a perfect substitute for oil.
11. Lastly, by moving towards natural gas, the U.S. will be able to tap into the abundant supply of natural gas. We will reduce are reliance on foreign oil and create a large number of jobs in the U.S. Also, natural gas has a great track record of being safely extracted from the ground. That means no more oil spills.
I have stated my case for the purchase of Westport Innovations (WPRT). It’s a buy in my book. I would like to acknowledge Jim Cramer, Yahoo Finance, TheStreet.com Eric Rosenbaum for writing the article on Joe Soros, and lastly the home page of Westport Innovations. This is where I derived all my ideas and research and give full credit for the material they have provided.
Here are a few links that helped me determine my decision
http://www.cnbc.com/id/15840232/?video=1512606812&play=1
http://www.westport.com/
http://finance.yahoo.com/q?s=WPRT
http://www.thestreet.com/_yahoo/story/10766495/1/why-george-soros-is-buying-westport-innovations.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Remember that this is a small cap stock under 2 Billion in market cap and the volume of shares traded is very small. That means a large volume increase can send a stock like this through the roof. Please be careful and buy this company incrementally at different price levels as this is a very volatile stock. This stock was run up on Friday so please wait for the price to come back down before you purchase this stock.
Thank You,
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
First I would like to Thank Jim Cramer for recommending WPRT and bringing this stock to my attention on Thursday June 3rd. I haven’t been this excited about the potential of a company since my first stock trade of Sirius Satellite radio, which was a money maker back when satellite radio was released to the general public.
The company I'm amped for is Westport Innovations. Westport Innovations develops and creates the technology for natural gas engines and the conversion of diesel engines to natural gas. The company has been around for quite sometime, but since the BP oil spill back in April this company has become much more attractive. The U.S. has been looking to reduce the consumption of energy and to find a fuel that we can replace or substitute so that we don’t have to rely on foreign oil. The U.S. was pushing a bridge fuel and leaning towards clean coal. Which is a funny thing to say as clean and coal shouldn’t be used together in the same sentence. There is no such thing as clean coal. Coal is dirty! That being said President Obama mentioned the word natural gas last Wednesday June 2nd as a way to reduce are oil consumption and veer away from foreign oil. That being said by President Obama is a step closer for natural gas to become a substitute for oil. Obviously this isn’t an endorsement by the government, but just having President Obama mention natural gas as an option could mean a better future for natural gas.
Below you will see my reasons for buying WPRT Stock.
1. Jim Cramer. I have to put him on the top of the list since he is one that brought WPRT to my attention. He is also the guy that I base a lot of my investing ideas on. I endorse all his books and many of his ideas. The guy is an extraordinary investor. He returned over 24% for his hedge fund back in his fund manager days. That means if you would have invested with him he essentially doubled your investment every 3 years. Those types of returns are legendary!
2. Natural gas is a possible substitute for oil and Westport has the technology to capitalize on the shift towards cleaner more efficient fuel consumption. They have the technology to convert diesel engines to run on natural gas.
3. The U.S. is always looking to reduce emissions in the air and natural gas burns cleaner and is more efficient than coal and other gas powered engines. The possibility for government endorsement of natural gas would put Westport in the driver seat for higher profits.
4. Has a deal with Cummings, Volvo, and Delphi. Westport has a joint venture with Cummings one of the largest truck manufacturers in the world to develop natural gas engines. Cummings builds the engines and uses Westport’s technology for natural gas. It’s a win/win for both companies. Westport has said to have the potential to produce 100,000 natural gas trucks in a short period of time. They wouldn’t have to spend a lot of money to ramp up production since they utilize other company’s facilities to create their product accordingly to the CEO David Demers. Other joint ventures include teaming up with BTIC, Juniper Engines, and Weichai.
5. Transport trucks consume more than 20% of the fuel consumed on the road per year. Natural gas is about $1.00 cheaper per an equivalent gallon of diesel. This will help cut cost for the transportation industry and increase profitability for the transportation companies.
6. WPRT Not only sells products in North America, but also reaches out internationally. With a company of this size offering products to countries around the world gives huge potential to grow revenues at a rapid pace. Currently Westport’s 5 year long term growth rate is at 30%. 30% is outrageous growth and this is what growth fund managers look for. Companies that can support this kind of growth will get a lot of attention from funds and essentially the price of the stock will move higher.
7. Only 8 Analyst are covering this company. This means that not everyone knows about this company. Only 86 Institutions hold stock in this company, which is very low. Once this company is discovered by more institutions the price will go up. That means by buying now you will be ahead of the big move once the interest is this stock gains momentum. Remember most of the money is made at the beginning of discovery. Once a stock become popular and well known the opportunity for huge profit is less likely.
8. A great investor has put his money on the line with Westport. Joe Soros has taken a large stake in Westport and is the leading institutional shareholder. Joe Soros is a phenomenal investor and is known for making money in stocks. Pay attention to this guy! Joe Soros should never be ignored.
9. This one is very important. Since February an insider Kevin Douglas has purchased 3,074,070 shares of WPRT ranging from $12.86 a share in February to a recent purchase of $18.18. Now the kicker is this gentleman purchased a total of 55,486,963.50 million dollars worth of stock. He is the largest shareholder is this company and has more shares than any institution or mutual fund. This is perfect example of someone that truly believes in the company and also a hint that Westport Innovations has just begun to grow and generate income for their shareholders. Whenever you see substantial insider buying this is always a good indicator that you may want to think about buying as well. Insiders buy when they feel the value of their company is undervalued and they see higher stock prices in the future. I definitely wouldn’t put 50 Million dollars on the line if I truly didn’t believe the company will perform better in the future. Remember insiders are just like us they invest to make money.
10. I’m investing my money in Westport Innovations. I truly believe this company has potential. With the American Power Act on the horizon and a little help from T Boone Pickens proposing the Pickens Plan I believe Westport will benefit from the shift towards utilizing a cleaner fuel for the U.S. and other countries wanting to reduce the consumption of foreign oil. With continued pressure on offshore drilling and the negative outcome from the BP oil spill I believe natural gas is a perfect substitute for oil.
11. Lastly, by moving towards natural gas, the U.S. will be able to tap into the abundant supply of natural gas. We will reduce are reliance on foreign oil and create a large number of jobs in the U.S. Also, natural gas has a great track record of being safely extracted from the ground. That means no more oil spills.
I have stated my case for the purchase of Westport Innovations (WPRT). It’s a buy in my book. I would like to acknowledge Jim Cramer, Yahoo Finance, TheStreet.com Eric Rosenbaum for writing the article on Joe Soros, and lastly the home page of Westport Innovations. This is where I derived all my ideas and research and give full credit for the material they have provided.
Here are a few links that helped me determine my decision
http://www.cnbc.com/id/15840232/?video=1512606812&play=1
http://www.westport.com/
http://finance.yahoo.com/q?s=WPRT
http://www.thestreet.com/_yahoo/story/10766495/1/why-george-soros-is-buying-westport-innovations.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
Remember that this is a small cap stock under 2 Billion in market cap and the volume of shares traded is very small. That means a large volume increase can send a stock like this through the roof. Please be careful and buy this company incrementally at different price levels as this is a very volatile stock. This stock was run up on Friday so please wait for the price to come back down before you purchase this stock.
Thank You,
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Thursday, June 10, 2010
The Power Of Dividend Reinvestment. Harness The Power!
First I would like to say Wow! What a great day for the stock market! I have been looking for a positive day like this for weeks. The Dow up 273.28 to close up 2.76% to 10,172.53 I also enjoyed the nice action in WFT-Weatherford International. Finally the market has given this stock a little respect up 6.81% on the day. We still have a long push upward with this company.
Today I’m going to talk about the power of dividend reinvestment. You may say what is a dividend?
A Dividend is a portion of the earnings a company generates to give back to the shareholders of the stock. A large portion of companies pay out a dividend on a quarterly basis to their shareholders, meaning every 3 months.
For example Coca Cola Company ticker symbol (KO)
Pays out a $1.76 a year in dividends and at the current price of $52.45 that would yield a return of roughly 3.4% a year. That means every 3 months you would receive .44 cents for every share that you owned. Not to bad! That is definitely better than what you receive for the money you have parked in your savings account.
Now that we know the definition of a dividend I want to really explain the true power of reinvesting the dividend. Reinvesting the dividend is essentially buying more stock with the dividends you would receive on a quarterly basis. Well continue to use Coca Cola Company (KO) as an example.
Ex: Let’s say you bought 1,000 shares of KO. Every 3 months you would receive .44 cents a share.
.44 x 1,000=$440 or $1,760 a year.
Say you reinvested those dividends for 30 years and never touched the stock and the price of the stock didn’t appreciate and stayed the same your initial investment of 1,000 shares would turn into 2,636.91 shares and you didn’t do a darn thing. That means:
1,000 shares at 52.45 would be $52,450
After 30 years your initial investment of $52,450 would have grown to a whopping $143,008.44 that’s a 172% return on your money. That was all created by reinvesting and compounding the dividend. You may say okay that’s a lot of money but I’m not really impressed. Check this scenario:
Same investment of 1,000 shares of KO at $52.45 and you reinvest your dividends, but now you also take advantage of the actual stock appreciating in value. Let’s say KO stock grows at an 8.5% rate of return annually. Your initial investment of $52,450 would have grown after 30 years to an amazing total of 1,529,847.31. That’s roughly 2,816% return on your money. You would have made $1,477,397.31 over 30 years. 1.4 million dollars!!!!
Don’t believe it! Check out this link and plug in the numbers
http://www.hughchou.org/calc/drip.php (this is where I pulled all my numbers and I give full credit to this site for a great product)
So in the end dividend reinvestment is the way to go! Harness the power of compound interest and in the long term you will see great results. Some great examples of dividend stocks you may want to check out are the following- (KO)-Coca Cola Company, (PEP)-Pepsico, ( JNJ)-Johnson and Johnson, (KMP)-Kinder Morgan Energy Partners, (MO)-Altria, (XOM)-Exxon Mobil, and (CAT)-Caterpillar to name a few.
If you invested correctly you could have a portfolio that consists of dividend paying stocks. Once in retirement you can pull a portion (a %) of the dividends to use as income to live on and let the rest of the dividends grow by reinvesting to continue to grow your nest egg. Make your money work for you! You have worked hard for your money and now its time to repay yourself!
I would also like to share a great website. I came across this site and have read a few of the articles and the information is very beneficial to all that would like to learn more about dividend stocks to grow their portfolio. This person has great insight!
http://www.dividendgrowthinvestor.com
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Today I’m going to talk about the power of dividend reinvestment. You may say what is a dividend?
A Dividend is a portion of the earnings a company generates to give back to the shareholders of the stock. A large portion of companies pay out a dividend on a quarterly basis to their shareholders, meaning every 3 months.
For example Coca Cola Company ticker symbol (KO)
Pays out a $1.76 a year in dividends and at the current price of $52.45 that would yield a return of roughly 3.4% a year. That means every 3 months you would receive .44 cents for every share that you owned. Not to bad! That is definitely better than what you receive for the money you have parked in your savings account.
Now that we know the definition of a dividend I want to really explain the true power of reinvesting the dividend. Reinvesting the dividend is essentially buying more stock with the dividends you would receive on a quarterly basis. Well continue to use Coca Cola Company (KO) as an example.
Ex: Let’s say you bought 1,000 shares of KO. Every 3 months you would receive .44 cents a share.
.44 x 1,000=$440 or $1,760 a year.
Say you reinvested those dividends for 30 years and never touched the stock and the price of the stock didn’t appreciate and stayed the same your initial investment of 1,000 shares would turn into 2,636.91 shares and you didn’t do a darn thing. That means:
1,000 shares at 52.45 would be $52,450
After 30 years your initial investment of $52,450 would have grown to a whopping $143,008.44 that’s a 172% return on your money. That was all created by reinvesting and compounding the dividend. You may say okay that’s a lot of money but I’m not really impressed. Check this scenario:
Same investment of 1,000 shares of KO at $52.45 and you reinvest your dividends, but now you also take advantage of the actual stock appreciating in value. Let’s say KO stock grows at an 8.5% rate of return annually. Your initial investment of $52,450 would have grown after 30 years to an amazing total of 1,529,847.31. That’s roughly 2,816% return on your money. You would have made $1,477,397.31 over 30 years. 1.4 million dollars!!!!
Don’t believe it! Check out this link and plug in the numbers
http://www.hughchou.org/calc/drip.php (this is where I pulled all my numbers and I give full credit to this site for a great product)
So in the end dividend reinvestment is the way to go! Harness the power of compound interest and in the long term you will see great results. Some great examples of dividend stocks you may want to check out are the following- (KO)-Coca Cola Company, (PEP)-Pepsico, ( JNJ)-Johnson and Johnson, (KMP)-Kinder Morgan Energy Partners, (MO)-Altria, (XOM)-Exxon Mobil, and (CAT)-Caterpillar to name a few.
If you invested correctly you could have a portfolio that consists of dividend paying stocks. Once in retirement you can pull a portion (a %) of the dividends to use as income to live on and let the rest of the dividends grow by reinvesting to continue to grow your nest egg. Make your money work for you! You have worked hard for your money and now its time to repay yourself!
I would also like to share a great website. I came across this site and have read a few of the articles and the information is very beneficial to all that would like to learn more about dividend stocks to grow their portfolio. This person has great insight!
http://www.dividendgrowthinvestor.com
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Thursday, June 3, 2010
Mutual Funds Finale... How To Select A Fund...
First off I would like to say Welcome Back! I hope you all enjoyed the holiday weekend.
Today will be the final post for selecting a mutual fund. It has been a long topic. (But it has to be done) Enjoy! You will see below is the process I would take in order to select a Mutual Fund
First I would look for a fund that has a proven track record. I like to find a Mutual Fund that has been around through the ups and downs of the market. I always try to find A Fund with a record of 10+ yrs of investing experience. This will give you an opportunity to see how well the Fund performed during the bull (up) and bear (down) markets. I use yahoo finance to do my research. It’s easy to navigate to select a Mutual Fund. I will show step by step of an example of selecting a fund.
1. Start by going to (Yahoo Finance) http://finance.yahoo.com/
2. Next select the investing tab and scroll down to Mutual Funds
3. Now click on the Fund Screener on the left hand side
4. Once at the Fund Screener you can select your parameters
5. I have selected the following parameters as an example
-Overview U.S. Stock Funds
-Manager Tenure Longer than 10 years
-Performance Returns 1 yr-up 10%, 3 yr-up 10%, and 5 yr-up 10%
-Holdings- Net Assets of 1 Billion or more
6. After your parameters are set click find Funds.
- I selected Reynolds Blue Chip Growth by hitting profile because it was basically the only stock fund that wasn’t tied to all gold and precious metal investments. (Never invest in Sector Funds) Now you have a Fund you can dig into the details to how well the Fund has performed over the years.
-Now that you’re on the profile page you can view the management information to see who the current Fund Manager is at the helm and a brief breakdown of their history. I would look further by researching the manager on Google and finding the home page of the institution the manager is currently with to view their credentials.
-Next, I would look at the Fund summary to see if this is meets my investment goals. Keep an eye on the year to date return to see how well the fund has done in the past year.
-Lastly, pay attention to the fees, expenses, and turnover you will incur if you invest in a Fund. The lower the better I say, but sometimes you have to pay up for performance. The annual holdings turnaround tells you how often the stocks inside the fund are bought and sold. This one has high turnover which makes the expense ratio higher than the average fund in its category.
7. Performance is next on the list. Select the performance tab. If this is lacking there is no point to invest in that particular Fund. We want results! Look for Funds that have a return of 10% or higher as you need to build your portfolio for retirement. For those close to retirement you want to select a Fund that is stable in returns and pays a great dividend for income.
This fund ticker symbol RBCGX (Reynolds Blue Chip Growth) is top notch in its category and has outperformed the S&P 500 TR. 1yr return 44.07% 3yr 17.15% and 5yr 13.24%
If you scroll down you will see how well it did in the previous years vs. its peers in annual total return, past quarterly returns and rank in category (my favorite.) This fund was in the top 1% of all funds in its category.
8. Holdings- This will allow you to view the top 10 holdings of the Fund and the sectors it’s invested in. This is great place to study the individual companies that play a large part in driving your Fund higher in price. Have some fun and research those companies to learn why they may be a great investment. This may also lead to a great investment idea in individual stocks if you want to try your skill with 1 company (I would recommend investing in multiple individual stocks among different industries to diversify your money, but if you want to start off with a small amount of money with a company to see if you can handle the risk I say go for it. (I did and believe I learned a great from investing in 1 company. This gives you a chance to really learn about how a company makes their money.)
9. Risk- shows how a fund compares to its peers with alpha and beta. This breaks down the risk reward and how a fund moves up or down compared to the market as a whole. Click on Help with Risk Statics at the bottom of the screen for a perfect definition of alpha and beta.
Now that you have the tools to select a Mutual Fund you have to combine your goals and objectives to finding a Fund that is right for you. I hope this information was helpful. It may seem overwhelming and complicated, but practice makes perfect. If you have any questions please ask as I can explain in further detail if something seems confusing.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Today will be the final post for selecting a mutual fund. It has been a long topic. (But it has to be done) Enjoy! You will see below is the process I would take in order to select a Mutual Fund
First I would look for a fund that has a proven track record. I like to find a Mutual Fund that has been around through the ups and downs of the market. I always try to find A Fund with a record of 10+ yrs of investing experience. This will give you an opportunity to see how well the Fund performed during the bull (up) and bear (down) markets. I use yahoo finance to do my research. It’s easy to navigate to select a Mutual Fund. I will show step by step of an example of selecting a fund.
1. Start by going to (Yahoo Finance) http://finance.yahoo.com/
2. Next select the investing tab and scroll down to Mutual Funds
3. Now click on the Fund Screener on the left hand side
4. Once at the Fund Screener you can select your parameters
5. I have selected the following parameters as an example
-Overview U.S. Stock Funds
-Manager Tenure Longer than 10 years
-Performance Returns 1 yr-up 10%, 3 yr-up 10%, and 5 yr-up 10%
-Holdings- Net Assets of 1 Billion or more
6. After your parameters are set click find Funds.
- I selected Reynolds Blue Chip Growth by hitting profile because it was basically the only stock fund that wasn’t tied to all gold and precious metal investments. (Never invest in Sector Funds) Now you have a Fund you can dig into the details to how well the Fund has performed over the years.
-Now that you’re on the profile page you can view the management information to see who the current Fund Manager is at the helm and a brief breakdown of their history. I would look further by researching the manager on Google and finding the home page of the institution the manager is currently with to view their credentials.
-Next, I would look at the Fund summary to see if this is meets my investment goals. Keep an eye on the year to date return to see how well the fund has done in the past year.
-Lastly, pay attention to the fees, expenses, and turnover you will incur if you invest in a Fund. The lower the better I say, but sometimes you have to pay up for performance. The annual holdings turnaround tells you how often the stocks inside the fund are bought and sold. This one has high turnover which makes the expense ratio higher than the average fund in its category.
7. Performance is next on the list. Select the performance tab. If this is lacking there is no point to invest in that particular Fund. We want results! Look for Funds that have a return of 10% or higher as you need to build your portfolio for retirement. For those close to retirement you want to select a Fund that is stable in returns and pays a great dividend for income.
This fund ticker symbol RBCGX (Reynolds Blue Chip Growth) is top notch in its category and has outperformed the S&P 500 TR. 1yr return 44.07% 3yr 17.15% and 5yr 13.24%
If you scroll down you will see how well it did in the previous years vs. its peers in annual total return, past quarterly returns and rank in category (my favorite.) This fund was in the top 1% of all funds in its category.
8. Holdings- This will allow you to view the top 10 holdings of the Fund and the sectors it’s invested in. This is great place to study the individual companies that play a large part in driving your Fund higher in price. Have some fun and research those companies to learn why they may be a great investment. This may also lead to a great investment idea in individual stocks if you want to try your skill with 1 company (I would recommend investing in multiple individual stocks among different industries to diversify your money, but if you want to start off with a small amount of money with a company to see if you can handle the risk I say go for it. (I did and believe I learned a great from investing in 1 company. This gives you a chance to really learn about how a company makes their money.)
9. Risk- shows how a fund compares to its peers with alpha and beta. This breaks down the risk reward and how a fund moves up or down compared to the market as a whole. Click on Help with Risk Statics at the bottom of the screen for a perfect definition of alpha and beta.
Now that you have the tools to select a Mutual Fund you have to combine your goals and objectives to finding a Fund that is right for you. I hope this information was helpful. It may seem overwhelming and complicated, but practice makes perfect. If you have any questions please ask as I can explain in further detail if something seems confusing.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
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