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#886

From: investorshelper <investorshelper@...>
Date: Thu Jul 27, 2006 4:42 am
Subject: Tom Wright of FairTax.org live on WJR 760 AM Thursday July 27th

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Of great importance to investors! -ih

trav 4FairTax <travllr@...> wrote:

Date: Wed, 26 Jul 2006 20:52:38 -0700 (PDT)
From: trav 4FairTax <travllr@...>
Subject: Tom Wright of FairTax.org live on WJR 760 AM Thursday July 27th
To: ih <investorshelper@...>

This 10:00 AM broadcast is also available over the internet at:

http://wjr.com/article.asp?id=142275

(click above link, then click "CLICK HERE TO LISTEN")

Enjoy, trav

Julie <julie.malick@...> wrote:

Date: Wed, 26 Jul 2006 14:37:40 -0400
From: Julie <julie.malick@...>
Subject: Tom Wright of FairTax.org live on WJR 760 AM Thursday July 27th
To: travllr 4FairTax <travllr@...>

Learn the truth about the FairTax and how it will affect you!

If you haven't yet gotten the opportunity to hear Tom Wright, Executive Director of FairTax.org on one of his many radio interviews this week on Michigan radio, you'll have another chance tomorrow morning, July 27th, on WJR 760 AM Radio Detroit. He'll be on with Frank Beckman, beginning at 10:00am EDT for a full hour.

Tune in and find out how the FairTax will help you keep your entire paycheck and put your finances back in your control, where they belong!

Very best regards,

Julie Malick
Assistant to Thomas A. Wright
Executive Director
Americans For Fair Taxation
(727) 793-9080 direct
(727) 712-3784 fax
(800) FAIRTAX main
www.fairtax.org

"It does not take a majority to prevail . . . but rather an irate tireless minority, keen on setting brushfires of freedom in the minds of men."
--Founding Patriot Samuel Adams

"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle."
--Winston Churchill

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#885

From: Sanserve@...
Date: Thu Jul 20, 2006 11:33 am
Subject: Stock Market Window Dressing: The Art of Looking Smart!

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Stock Market Window Dressing: The Art of Looking Smart!

As investors, and we all are investors these days, it is important that we understand the idiosyncrasies of the Stock Market pricing data we use to help us in our decision making efforts. On Wall Street, investing can be a minefield for those who don't take the time to appreciate why securities prices are at the levels that appear on quarterly account statements. At least four times per year, security prices are more a function of institutional marketing practices than they are a reflection of the economic forces that we would like to think are their primary determining factors. Not even close... Around the end of every calendar quarter, we hear the financial media matter-of-factly report that Institutional Window Dressing Activities" are in full swing. But that is as far, and as deep, as it ever goes. What are they talking about, and just what does it mean to you as an investor?

There are at least three forms of Window Dressing, none of which should make you particularly happy and all of which should make you question the integrity of organizations that either authorize, implement, or condone their use. The better-known variety involves the culling from portfolios of stocks with significant losses and replacing them with shares of companies whose shares have been the most popular during recent months. Not only does this practice make the managers look smarter on reports sent to major clients, it also makes Mutual Fund performance numbers appear significantly more attractive to prospective "fund switchers". On the sell side of the ledger, prices of the weakest performing stocks are pushed down even further. Obviously, all fund managements will take part in the ritual if they choose to survive. This form of window dressing is, by most definitions, neither investing nor speculating. But no one seems to care about the ethics, the legality, or the fact that this "Buy High, Sell Low" picture is being painted with your Mutual Fund palette.

A more subtle form of Window Dressing takes place throughout the calendar quarter, but is "unwound" before the portfolio's Quarterly Reports reach the glossies. In this less prevalent (but even more fraudulent) variety, the managers invest in securities that are clearly out of sync with the fund's published investment policy during a period when their particular specialty has fallen from grace with the gurus. For example, adding commodity ETFs, or popular emerging country issues to a Large Cap Value Fund, etc. Profits are taken before the Quarter Ends so that the fund's holdings report remains uncompromised, but with enhanced quarterly results. A third form of Window Dressing is referred to as "survivorship", but it impacts Mutual Fund investors alone while the others undermine the information used by (and the market performance of) individual security investors. You may want to research it.

I cannot understand why the media reports so superficially on these "business as usual" practices. Perhaps ninety percent of the price movement in the equity markets is the result of institutional trading, and institutional money managers seem to be more concerned with politics and marketing than they are with investing. They are trying to impress their major clients with their brilliance by reporting ownership of all the hot tickets and none of the major losers. At the same time, they are manipulating the performance statistics contained in their promotional materials. They have made "Buy High, Sell Low" the accepted investment strategy of the Mutual Fund industry. Meanwhile, individual security investors receive inaccurate signals and incur collateral losses by moving in the wrong direction.

From an analytical point of view, this quarterly market value reality (artificially created demand for some stocks and unwarranted weakness in others) throws almost any individual security or market sector statistic totally out of wack with the underlying company fundamentals. But it gets even more fuzzy, and not in the lovable sense. Just for the fun of it, think about the "demand pull" impact of an ever-growing list of ETFs. I don't think that I'm alone in thinking that the real meaning of security prices has less and less to do with corporate economics than it does with the morning betting line on ETF ponies... the dot-coms of the new millennium. [Do you remember the "Circle of Gold" from the seventies? Isn't GLD, or IAU, about the same thing?]

As if all of these institutional forces weren't enough, you need also consider the impact of tax code motivated transactions during the always-entertaining final quarter of the year. One would never suspect (after watching millions of CPA directed taxpayers gleefully lose billions of dollars) that the purpose of investing is to make money! The net impact of these (euphemistically labeled) "year end tax saving strategies" is pretty much the same as that of the Type One Window Dressing described above. But here's an off-quarter buying opportunity that you really shouldn't pass up. Simply put, get out there and buy the November 52-week lows, wait for the periodic and mysterious "January Effect" to be reported by the media with eyes wide shut amazement, and pocket some easy profits.

There just may not be a method to actually decipher the true value of a share of common stock. Is market price a function of company fundamentals, artificial demand for "derivative" securities, or various forms of Institutional Window Dressing? But this is a condition that can be used to great financial advantage. With security prices less closely related to those old fashioned fundamental issues such as dividends, projected profits, and unfunded pension liabilities and perhaps more closely related to artificial demand factors, the only operational alternative appears to be trading! Buy the downtrodden (but still fundamentally investment grade) issues and take your profits on those that have risen to inappropriately high levels based on basic measures of quality... and try to get it done before the big players do. To over simplify, a recipe for success would involve shopping for investment grade stocks at bargain prices, allowing them to simmer until a reasonable, pre-defined, profit target is reached, and seasoning the portfolio brew with the discipline to actually implement the profit taking plan.

Yeah, I miss the days when there were just stocks and bonds, but maybe I'm just a bit too old fashioned. Interesting place Wall Street...

Steve Selengut
sanserve@...
800-245-0494
http://www.sancoservices.com/freezineinvestmentarticles.htm
http://www.valuestockbuylistprogram.com
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

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#884

From: investorshelper <investorshelper@...>
Date: Wed Jul 19, 2006 3:59 pm
Subject: Audio Interview with Day Trader Mike Kestler

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Mike Kestler is a true daytrader, trading approximately 500K shares
daily -- mostly on the Big Board NYSE. In this audio interview, Mike
tells how he finds opportunities for multi-second to multi-minute
trades...

http://investing-software.com/commentary/articles.html?next=1749

ih

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#883

From: investorshelper <investorshelper@...>
Date: Tue Jul 18, 2006 1:42 am
Subject: Which Type of Trader Are You?

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Mike Parnos, in beginning of his examination, posits, "In the wide
world of directional trading there are basically two species - trend
followers and contrarians...

http://investing-software.com/commentary/articles.html?next=1729

ih

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#882

From: investorshelper <investorshelper@...>
Date: Sun Jul 2, 2006 6:46 pm
Subject: (FairTax Radio Sun 7/2 4PM EDT) Economist Dr. Ratajczak

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Attention: Investors! Don't miss this.
Streaming internet: http://www.radiosandysprings.com/

Radio Sandy Springs - AM 1620 (Sandy Springs, GA)
Sunday 4:00 to 5:00 pm EST


Special Guest � Dr. Donald Ratajczak, Economist


Call-ins taken the second half of the broadcast
Call-in (2nd half hour)
             (404) 943-1620
             (866) 356-0789

Dr. Ratajzcak�s bio
http://www.westga.edu/~bquest/outlook.html#The%20CEO

Investors, especially, need to get "up to speed" on FairTax bills in
Congress.  Please forward this to a friend, or ten!

ih

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#881

From: investorshelper <investorshelper@...>
Date: Sat Jul 1, 2006 4:16 pm
Subject: What Do You Expect in Your Trading?

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"It's important to quantify your expectations for how much risk you
will take in each position, and how much reward you think that position
will offer you. It's also important to...

http://investing-software.com/commentary/articles.html?next=1536

ih

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#880

From: investorshelper <investorshelper@...>
Date: Wed Jun 28, 2006 10:03 pm
Subject: Is a Recession Coming?

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Bill Bonner rightfully notes, "The Fed and other central bankers around
the world are raising interest rates because they're fighting the last
war. But they already won that war. Inflation is no longer our biggest
threat. They ought to be worried about the war before the last one, and
the specter of ...

http://investing-software.com/commentary/articles.html?next=1493

ih

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#879

From: Sanserve@...
Date: Tue Jun 27, 2006 1:44 pm
Subject: Relax, A Volatile Stock Market Is Your Dearest Friend

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Relax, A Volatile Stock Market Is Your Dearest Friend

Most people never forget their first love. I'll never forget my first trading profit! But the $600 (1970 dollars) I pocketed on Royal Dutch Petroleum was not nearly as significant as the conceptual realization it signaled! I was amazed that someone would pay me that much more for my stock than the newspaper said it was worth just a few weeks earlier! What had changed? What had happened to make the stock go up, and why had it been down in the first place? Without ever needing to know the answers, I've been trading RD for thirty-six years!

Looking at scores of similarly profitable, high quality companies in this manner, you would find that: (1) most move up and down regularly (if not predictably) with an upward long-term bias, and (2) that there is little if any similarity in the timing of the movements between the stocks themselves. This is the "Volatility" that most people fear and that Wall Street loves them to fear. It can be narrowly confined to certain sectors, or much broader, encompassing practically everything. The broader it becomes, the more likely it is to be categorized as either a rally or a correction. Most years will feature one or two of each. This is the natural condition of things in the stock market, Mother Nature, Inc. if you will. Don't take her for granted when she gets high, and never ignore her when she feels low. Embrace her volatile moods, work with them in whatever direction they travel, and she will become your love as well!

Ironically, it is this natural volatility (caused by hundreds of variables human, economic, political, natural, etc.) that is the only real "certainty" existent in the financial markets. And, as absurd as this may sound until you experience the reality of it all, it is this one and only certainty that makes Mutual Funds in general (and Index Funds in particular) totally unsuitable as investment vehicles for anyone within seven to ten years of retirement! How many Mutual Fund investors have retired recently with more liquid financial assets than they had seven years ago, way back in 1999? There will always be rallies and corrections. In fact, it is worthwhile to "go back to the future" to establish a realistic Investment Strategy. In the last forty years, there have been no less than ten 20% or greater corrections followed by rallies that brought the market to significantly higher levels. The DJIA peaked at 2700 before its record 40% crash in 1987. But at 1700, it was still 70% above the 1000 barrier that it danced around with for decades before... always a higher high, rarely a lower low. The '87 debacle was followed by several slightly less exciting corrections, but the case was being made for a more flexible, and realistic, Investment Strategy. Mutual Funds were spawned by a Buy and Hold Mentality; Mother Nature, Inc is a much more complicated enterprise.

Call it foresight, or hindsight if you want to be argumentative, but a long-term view of the Investment Process eliminates the guesswork and points pretty clearly toward a trading mentality that keys on the natural volatility of hundreds of Investment Grade Equities. During corrections, consider these simple truths: 1) although there are more sellers than buyers, the buyers intend to make money on their purchases, 2) so long as everything is down, don't worry so much about the price of individual holdings, 3) fast and steep corrections are better than the slow attrition variety, 4) always accept even half your normal profit target while buying opportunities are plentiful, 5) don't be in a rush to fill your portfolio, but if cash dries up before it's over, you are doing it "correctly".

Most of the problems with Mutual Funds and much of the increased opportunity in Individual Stock trading are functions of growing non-professional Equity ownership. Everyone is in the stock market these days whether they like it or not, and when the media fans the emotions of the masses, the masses create volatility that rarely under-reacts to market conditions! Rarely will unit owners take profits, particularly if they have to pay withdrawal penalties or taxes. Even more unusual are expert advisors who encourage investors to move into the markets when prices are falling.

A volatile market creates opportunities with every gyration, but you have to be willing to transact to reap the benefits. A necessary first step is to recognize that both "up" and "down" markets are forces of nature with abundant potential. The proper attitude toward the latter, will make you much more appreciative of the former. Most investment strategies require answers to unanswerable questions, in an effort to be in the right place at the right time. Indecisiveness doesn't cut it with Mamma... in or out too soon is not an issue with her. But wasting the opportunities she provides really ticks her off! Successful investment strategies require an understanding of the forces of nature, and disciplined rules of portfolio management. If you can transition back to individual securities, you will do better at moving toward your goals, most of the time, because the opportunities are out there... all of the time.

So let's adopt some new rules for this investment game and learn to live with them for a few cycles: Let's buy good stocks new and old at lower prices during corrections. Let's take reasonable profits on those that go up in price, whenever they are kind enough to do so. Let's examine our performance based on the results of these trading transactions alone and at market cycle examination points for a smiley faced change of pace. And one other thing...

Let's drink a toast to Mother Nature, her uncertainty, her volatility, and, of course, to our first loves.

Steve Selengut
sanserve@...
800-245-0494
http://www.sancoservices.com/investmentarticles.htm
http://www.valuestockbuylistprogram.com
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

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#878

From: investorshelper <investorshelper@...>
Date: Fri Jun 23, 2006 3:12 pm
Subject: India, the Next Big Thing?

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"We have never been to India. Nor have we ever ridden in one of Tata's
automobiles. Perhaps it is better that way. Friends, recently returned
from the subcontinent, report that it is a wild and wooly place.

"Still, it is in wild and wooly places that businesses boom and
fortunes are made. And India is booming! ...

http://investing-software.com/commentary/articles.html?next=1430

ih

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#877

From: investorshelper <investorshelper@...>
Date: Tue Jun 20, 2006 3:53 pm
Subject: Planning Ahead in Your Trading

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"What will you do if your trading account goes up 50%? Answering this
question is fun, but let's answer a question that's more important.
What will you do if your account drops 25%?...

http://investing-software.com/commentary/articles.html?next=1384

ih

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#876

From: investorshelper <investorshelper@...>
Date: Mon Jun 19, 2006 3:10 pm
Subject: Stock Market Still Bouncing

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Jack Rothstein suggests, "The current bear market is mild and modest
compared with the brutal beating that took a heavy toll at the start of
this decade. Markets tend to be oversold when the bear is in control
and right now...

http://investing-software.com/commentary/articles.html?next=1364

ih

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#875

From: investorshelper <investorshelper@...>
Date: Sun Jun 18, 2006 5:37 pm
Subject: The Problem with Indexes

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"It is intuitively obvious that capitalization-weighted indexes have a
larger proportion of their assets in the larger stocks.
(Capitalization-weighted means that larger stocks are given more
"weight" or proportion of the index or fund.) But is this what a
rational investor should actually want? I think the information we look
at today will surprise many...

http://investing-software.com/commentary/articles.html?next=1356

ih

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#874

From: "ezne1son" <ezne1son@...>
Date: Sat Jun 17, 2006 7:29 pm
Subject: Blue Chip China Telecom stock, XING, pre-announces 8 fold increase in earnings

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That is an 800% increase in earnings year over year and now gives the stock a
current PE
of about 5.0. Yes a PE of 5. The PEG ratio would be 0.006 and its current Price
to Sales
ratio is only 0.6 and the industry average is about 1.8.

Gotta love buying a fast growing telecom stock with a PE of 5 for pennies on the
dollar.


XING pre-announced a fantastic earnings surprise.

http://biz.yahoo.com/prnews/060614/cnw015.html?.v=8

Official announcement is on next Tuesday the 20th.

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#873

From: investorshelper <investorshelper@...>
Date: Fri Jun 16, 2006 3:08 pm
Subject: Was Thursday's Rally for Real?

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Tom Incorvia, a swing trader with 18 years of experience in the
financial markets, takes an interesting historical look at the S&P500,
in light of Thursday's 26 point rise...

http://investing-software.com/commentary/articles.html?next=1338

ih

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#872

From: investorshelper <investorshelper@...>
Date: Thu Jun 15, 2006 3:31 pm
Subject: What's with the Brainiacs at Harvard?

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Bill Bonner ponders, "On top of their president, Larry Summers,
stepping down from his post amid sighs of relief from most of the
staff, we have two conflicting forecasts of the U.S. economy coming out
of America's oldest university...

http://investing-software.com/commentary/articles.html?next=1317

ih

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#871

From: investorshelper <investorshelper@...>
Date: Wed Jun 14, 2006 4:11 pm
Subject: A Trader's Mindset

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"One of the questions we commonly get is what sort of mindset or mental
parameters are needed to truly be a successful trader. While there are
literally volumes of books on the mental side of trading alone, the
real challenge for most true traders is . . .

http://investing-software.com/commentary/articles.html?next=1298

ih

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#869

From: "ezne1son" <ezne1son@...>
Date: Mon Jun 12, 2006 7:52 pm
Subject: As the NAZ continues to fall investors are looking elsewhere for value

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DLGI is near or at its 52 wk low despite growing revenues at a double digit
pace. Most recent earnings report reported a 25% year over year increase in
profits. They also have greatly ramped up the marketing and sales efforts of its
new BounceGPS products. Their BounceGPS, a state of the art GPS-based
vehicle tracking device, is getting rave reviews both from the consumer and
from Police departments.

http://biz.yahoo.com/prnews/060523/latu073.html?.v=60

Due to recent financing efforts their cash on hand has increased to almost 2
million. The cash on hand along with the anticipated continued increase in
sales is expected to be sufficient for DLGI to achieve record revenues and
hopefully profitibility by the end of 2006.

On a Price to sales basis DLGI is extremely undervalued. The industry
average is around 2.0 whereas the Price to Sales metric for DLGI.ob is
around 0.44. This gives DLGI.ob a reasonable share price appreciation of 5
fold or a potential 5-bagger.

DLGI.ob is of course a OTC stock so it is a high risk stock worth doing more
research on before investing any risk capital.

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#868

From: investorshelper <investorshelper@...>
Date: Sun Jun 11, 2006 10:59 pm
Subject: What Kind of Trader Are You?

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Price Headley reflects, "I once read in the notes of a champion chess
player, that he realized that his competitors often times played the
same and he sized up his competition and categorized them. Some
players, bears, as he called them, attacked early in the game and could
easily be set up to make overly risky moves. Mice, on the other hand,
were overly cautious. It took them too long ...

http://investing-software.com/commentary/articles.html?next=1257

ih

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#867

From: investorshelper <investorshelper@...>
Date: Fri Jun 9, 2006 3:26 am
Subject: Build Your Trading Confidence

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You know you're a great trader - or maybe you don't?  Have you wondered
what actually characterizes the successful trader, attitudinally?
Price Headley has some excellent observations on cultivating the
confidence that is naturally a part of successful trading...

http://investing-software.com/commentary/articles.html?next=1235

ih

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#866

From: Sanserve@...
Date: Thu Jun 8, 2006 4:38 pm
Subject: In Value Stock Investing, Quality is Job One

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In Value Stock Investing, Quality is Job One

How much financial bloodshed is necessary before we realize that there is no safe and easy shortcut to investment success? When do we learn that most of our mistakes involve greed, fear, or unrealistic expectations about what we own? Eventually, successful investors begin to allocate assets in a goal directed manner by adopting a realistic Investment Strategy... an ongoing security selection and monitoring process that is guided by realistic expectations, selection rules, and management guidelines. If you are thinking of trying a strategy for a year to see if it works, you're due for another smack up alongside the head! Viable Investment Strategies transcend cycles, not years, and viable Equity Investment Strategies consider three disciplined activities, the first of which is Selection. Most familiar strategies ignore one of the others.

How should an investor determine what stocks to buy, and when to buy them? Will Rogers summed it up: "Only buy stocks that go up. If they aren't going to go up, don't buy them." Many have misread this tongue-in-cheek observation and joined the "Buy (anything) High" club. I've found that the "Buy Value Stocks Low (er)" approach works better. A Google search produces a variety of criteria that help to identify Value Stocks, the standards being low Price to Book Value, low P/E ratios, and other "fundamentals". But you would be surprised how the definitions can vary, and how few include the word "Quality". In the late 90's, it was rumored that a well-known Value Fund Manager was asked why he wasn't buying dot-coms, IPOs, etc. When he said that they didn't qualify as Value Stocks, he was told to change his definition... or else.

How do we create a confidence building Stock Selection Universe? Simply operating on blind faith with one of the common definitions may be too simplistic, particularly since many of the numbers originate from the subject companies. Also, some of the figures may be difficult to obtain quickly, and it is essential not to get bogged down in endless research. Here are five filters you can use to come up with a selection universe of higher quality companies, and you can obtain all of the data inexpensively from the same source:

1. An S & P Rating of B+ or Better. Standard & Poor's is a major financial data provider to the investment community, and its "Earnings and Dividend Rankings for Common Stocks" combine many fundamental and qualitative factors into a letter ranking that speaks only to the financial viability of the rated companies. Potential market performance (a guessing game anyway) is not a consideration. B+ and above ratings are considered Investment Grade. Anything rated lower adds an element of unnecessary speculation to your portfolio. A staff of thousands does your research for you.

2. A History of Profitability. Although it should seem obvious, buying stock in a company that has a history of profitable operations is less risky than acquiring shares in an unproven, or start-up entity. Profitable operations adapt more readily to changes in markets, economies, and business growth opportunities. They are more likely to produce profit opportunities for you quickly.

3. A History of Regular Dividend Payments. The payment of regular dividends, and periodic increases in rate paid, are sure signs of economic viability. Companies will go to great lengths, and endure great hardships, before electing either to cut or to omit a dividend. There is no need to focus on the size of the dividend itself; Equities should not be purchased as income producers. A further benefit of using dividend payment as one of your selection criteria is the clear indication of financial stress that a cut communicates.

4. A Reasonable Price Range. You will find that most Investment Grade stocks are priced above $10 per share and that only a few trade at levels above $100. If you have a seven-figure portfolio, price may not matter from a diversification standpoint, but in smaller portfolios, a round lot of a $50 stock may be too much to risk in one position. An unusually high price may be caused by an unusually high degree of sector or company specific speculation while an inordinately low price may be a good warning signal. With no real structural size limitations, I feel comfortable with a range between $10 and $90 per share… but I would avoid most issues at the higher level.

5. A NYSE Listed Security. I'm not sure that the listing requirements for the NYSE are still more restrictive than elsewhere, but it is helpful to be able to focus on just one set of statistics since most of the information you need regularly is reported by Exchange (Market Stats, Issue Breadth, and New Highs vs. New Lows).

Your Selection Universe will become the backbone of your Equity Investment Program, so there is no room for creative adjustments to the rules and guidelines you've established... no matter how strongly you feel about recent news or rumor. Now you can focus on operating procedures that will help you diversify properly by position size, industry, etc., and on guidelines that will help you identify which stocks should be watched closely for purchase when the price is right. Keeping in mind that you want to sell each Equity Position at a target profit ASAP, you'll want to establish appropriate buying (and selling) rules. For example, I never consider buying a stock until it has fallen at least 20% from its highest level of the past 52 weeks, so I include those that are close or at this price level on a "Daily Watch List". Then, I select those that I would be willing to add to equity portfolios if they fall a bit more during the trading day. Your actual "Buy List" changes every day in both symbol and limit price.

You will need to apply consistent and disciplined judgment to your final selection process, but you can be confidant that you are choosing from a select group of higher quality, well-established companies, with a proven track record of profitability and owner awareness. Additionally, as these companies gyrate above and below your purchase price (as they absolutely will), you can be more confident that it is merely the nature of the stock market and not an imminent financial disaster... and that should help you sleep nights.

By the way, never say no to a profit when the upward movement equals 10%, and you'll be able to do it again, and again, and again.

Steve Selengut

http://www.sancoservices.com

http://www.valuestockbuylistprogram.com

Professional Portfolio Management since 1979

Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

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#865

From: investorshelper <investorshelper@...>
Date: Thu Jun 1, 2006 1:11 am
Subject: (Investors alert) "Time to get on the FairTax bandwagon"

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Time to get on the FairTax bandwagon
Pascagoula Mississippi Press - Pascagoula,MS,USA

Support seems to be growing for the FairTax, which would allow
Americans to keep 100 percent of their salaries and pay taxes only on
what they consume...

http://tinyurl.com/lmq8y

ih


PS For a nice overview of the FairTax, see:
http://www.investing-news.com/artman/publish/article_1195.shtml

Investors/traders can learn FairTax advocacy, see "LINKS" at:
http://tinyurl.com/7lssy

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#864

From: Sanserve@...
Date: Sun May 14, 2006 9:12 am
Subject: The Dow Jones Industrial Average: Failing the Average Investor

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The Dow Jones Industrial Average: Failing the Average Investor

In addition to a well thought out Investment Plan, successful Equity investing requires a feel for what is going on in the real world that we all refer to as "The Market". To most investors, the DJIA provides all of the information they think they need, and they worship it mindlessly, thinking that this time tattered average has mystical predictive and analytic powers far beyond the scope of any other market number. A cursory review of New York Stock Exchange (NYSE) Issue Breadth figures (93% of the Dow stocks are traded there) clearly shows how the Dow has neither been prescient nor historically accurate with regard to broad market movements for the past eight years. Additionally, this financial icon that investors revere as the ultimate "Blue Chip" Stock Market Indicator has lost its luster, with less than half its members achieving S & P ratings of A or better, and 20% of the issues ranked below Investment Grade.

Is the 120-year-old DJIA impotent? No, it's certainly helpful for Peak-to-Peak analysis right now, for example, to see if your Large Cap only Equity Portfolio is as high as it was six years ago. But it's based upon a seriously flawed Buy and Hold investment strategy and universally used as a market barometer, when its original role was as an economic indicator. This is not just semantics. It's Wall Street's rendition of "The Emperor's New Clothes". Possibly, a weighted average of investor perceived business prospects for thirty major companies is a viable economic indicator, but leading or lagging? Clearly, there is no conceivable way that any existing average/index can measure the progress of the thousands of individual securities (and Mutual Funds masquerading as individual securities) that, in the real investment world, are "The Market". And is there just "a" Market, when REITs, Index ETFs, Equity CEFs, Income CEFs, and even some Preferreds are all mixed together in such a way that most brokerage firm statements can't quite distinguish one from the other? Investors are dealing with multiple markets of different types. Markets that don't follow the same rules or respond to the same changes in the same ways. The Dow is dead, long live reality.

Feeling statistically naked? Don't fret Nell, here are a few real market statistics and lists that are easy to understand, easy to put your cursor on, and useful in keeping you up to date on what's going on in the multiple Markets of today's Investment World:

1. Issue Breadth is the single most accurate barometer of what's going on in the markets on a daily basis! Statistics for each of the Stock Exchanges are tracked daily, documenting how many individual issues have advanced versus how many have declined. Rarely are these important numbers reported, especially if they are painting a picture different from that being jammed down investors' throats by institutional propaganda. Would you believe, that in 1999 (when the DJIA and other indices) last achieved All Time High (ATH) levels, monthly Issue Breadth on the NYSE was positive only in April, followed by a 12 month paper bloodbath extending through May of 2000. Since then, Breadth has been positive for six consecutive years. Surprise!

2. Pay close attention to the number of issues hitting New Fifty-Two Week Highs (52Hs) and Lows each day: a) for trend corroboration, and b) to obtain a wealth of important information for daily decision-making and periodic performance understanding. The recent NYSE Bull Market (not a typo) is clearly evidenced by six consecutive years (from 04/00) with more issues hitting new 52Hs than new 52Ls... New Highs nearly tripled New Lows. So much for the standard market tracking tools... not to mention Wall Street manipulation of all the news that's fit to print for investors. Looking at the daily lists of 52Hs and 52Ls will help you determine: a) which sectors are moving in which directions, b) if interest rate expectations are pointing up or down, c) which individual issues are approaching either your Buy or Sell targets and, d) which direction your portfolio Market Value should be moving.

In recent months, REITs, metals, and energy stocks dominated the hot list while regional banks, utilities, and other interest rate sensitive issues were notsos (sic). These lists always indicate what's going on now, without any weighting, charting, or hype, making your job almost simplistic. Take your reasonable profits in the issues that have risen to new peaks (Sell Higher), and purchase the quality issues among those that are at 52Ls (Buy Lower). High prices often reflect high speculation with Bazooka potential, while lower priced value stocks often turn out to be bargains. Ishares, foreign Closed End Funds, Mining and Energy bloat today's 52H List while preferred shares and Utilities occupy the 52Ls... a bit more meaningful than "the Dow is near an All Time High", and a bit scarier as well.

3. Throughout the trading day, periodic review of three lists called "Market Statistics" will keep you current on individual issue price movements, active issues, sector developments, and more. How you interpret and use this information will eventually affect your bottom line, weather you are a Value Stock Investor or a Small Cap day trader. The Most Active and The Most Declined Lists describe individual and group activity, identify where some more detailed research might be appropriate, and provide potential additions to your Daily Stock Watch List. The Most Active and Most Advanced Lists will identify the hottest individual issues and sectors, identify areas where news stories may be worth reading, and instantly make you aware of profit taking opportunities.

I know you are tempted to shout "Blasphemy" at the top of your lungs, but the DJIA was developed in a pre-internet world (actually, pre-automobile) where the statistics discussed above were unavailable, only the wealthy cared about the stock market, there were no Mutual Funds, and, frankly Scarlet, 95% of the population really just didn't care. Now here's some blasphemy for you: It is likely that not one person reading this article has an investment portfolio that closely resembles the composition of the DJIA. It is just as likely that nearly everyone reading this article will use the Dow to evaluate portfolio performance. I've never understood this phenomenon, and I know that change takes time... but really, the Dow (and the other averages) have had their day, and far too much of your nest egg, for you to ignore this simple reality any longer.

Steve Selengut

http://www.sancoservices.com

http://www.valuestockbuylistprogram.com

Professional Portfolio Management since 1979

Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

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#863

From: "Harry" <hbonet@...>
Date: Fri Apr 28, 2006 11:07 pm
Subject: PTS Picks

mapleleaf67207

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+50.31 points last week from PTS Picks.
Next week's picks will be available this weekend. Go to
PrecisionTradingSystem.com

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#862

From: investorshelper <investorshelper@...>
Date: Tue Apr 25, 2006 3:39 am
Subject: Weekly Trader Interview with Tim Bourquin

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"Mike McMahon, a trader and instructor at Online
Trading Academy, talks about the discipline he sees in
successful traders and what separates great traders
from those who continually struggle." -Tim Bourquin

Your choice of listening method here...
http://investing-software.com/commentary/articles.html?next=593

ih

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#861

From: investorshelper <investorshelper@...>
Date: Sun Apr 23, 2006 3:57 pm
Subject: Frontline Thoughts: Islands of Stability

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"Year after year, economic theorists continue to
produce scores of mathematical models and to explore
in great detail their formal properties; and the
econometricians fit algebraic functions of all
possible shapes to essentially the same sets of data
without in any way being able to advance, in any
perceptible way, a systematic understanding of the
structure and the operation of a real economic
system." - Wassily Leontief, 1982

John Mauldin asks, "Have we improved since 1982?"

http://investing-software.com/commentary/articles.html?next=566

ih

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#860

From: Sanserve@...
Date: Fri Apr 21, 2006 11:59 am
Subject: Ten Common Investment Errors: Stocks, Bonds, & Management

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Ten Common Investment Errors: Stocks, Bonds, & Management

Investment mistakes happen for a multitude of reasons, including the fact that decisions are made under conditions of uncertainty that are irresponsibly downplayed by market gurus and institutional spokespersons. Losing money on an investment may not be the result of a mistake, and not all mistakes result in monetary losses. But errors occur when judgment is unduly influenced by emotions, when the basic principles of investing are misunderstood, and when misconceptions exist about how securities react to varying economic, political, and hysterical circumstances. Avoid these ten common errors to improve your performance:

1. Investment decisions should be made within a clearly defined Investment Plan. Investing is a goal-orientated activity that should include considerations of time, risk-tolerance, and future income… think about where you are going before you start moving in what may be the wrong direction. A well thought out plan will not need frequent adjustments. A well-managed plan will not be susceptible to the addition of trendy, speculations.

2. The distinction between Asset Allocation and Diversification is often clouded. Asset Allocation is the planned division of the portfolio between Equity and Income securities. Diversification is a risk minimization strategy used to assure that the size of individual portfolio positions does not become excessive in terms of various measurements. Neither are "hedges" against anything or Market Timing devices. Neither can be done with Mutual Funds or within a single Mutual Fund. Both are handled most easily using Cost Basis analysis as defined in the Working Capital Model.

3. Investors become bored with their Plan too quickly, change direction too frequently, and make drastic rather than gradual adjustments. Although investing is always referred to as "long term", it is rarely dealt with as such by investors who would be hard pressed to explain simple peak-to-peak analysis. Short-term Market Value movements are routinely compared with various un-portfolio related indices and averages to evaluate performance. There is no index that compares with your portfolio, and calendar divisions have no relationship whatever to market or interest rate cycles.

4. Investors tend to fall in love with securities that rise in price and forget to take profits, particularly when the company was once their employer. It's alarming how often accounting and other professionals refuse to fix these single-issue portfolios. Aside from the love issue, this becomes an unwilling-to-pay-the-taxes problem that often brings the unrealized gain to the Schedule D as a realized loss. Diversification rules, like Mother Nature, must not be messed with.

5. Investors often overdose on information, causing a constant state of "analysis paralysis". Such investors are likely to be confused and tend to become hindsightful and indecisive. Neither portends well for the portfolio. Compounding this issue is the inability to distinguish between research and sales materials... quite often the same document. A somewhat narrow focus on information that supports a logical and well-documented investment strategy will be more productive in the long run. But do avoid future predictors.

6. Investors are constantly in search of a short cut or gimmick that will provide instant success with minimum effort. Consequently, they initiate a feeding frenzy for every new, product and service that the Institutions produce. Their portfolios become a hodgepodge of Mutual Funds, iShares, Index Funds, Partnerships, Penny Stocks, Hedge Funds, Funds of Funds, Commodities, Options, etc. This obsession with Product underlines how Wall Street has made it impossible for financial professionals to survive without them. Remember: Consumers buy products; Investors select securities.

7. Investors just don't understand the nature of Interest Rate Sensitive Securities and can't deal appropriately with changes in Market Value… in either direction. Operationally, the income portion of a portfolio must be looked at separately from the growth portion. A simple assessment of bottom line Market Value for structural and/or directional decision-making is one of the most far-reaching errors that investors make. Fixed Income must not connote Fixed Value and most investors rarely experience the full benefit of this portion of their portfolio.

8. Many investors either ignore or discount the cyclical nature of the investment markets and wind up buying the most popular securities/sectors/funds at their highest ever prices. Illogically, they interpret a current trend in such areas as a new dynamic and tend to overdo their involvement. At the same time, they quickly abandon whatever their previous hot spot happened to be, not realizing that they are creating a Buy High, Sell Low cycle all their own.

9. Many investment errors will involve some form of unrealistic time horizon, or Apples to Oranges form of performance comparison. Somehow, somewhere, the get rich slowly path to investment success has become overgrown and abandoned. Successful portfolio development is rarely a straight up arrow and comparisons with dissimilar products, commodities, or strategies simply produce detours that speed progress away from original portfolio goals.

10. The "cheaper is better" mentality weakens decision making capabilities, leads investors to dangerous assumptions and short cuts that only appear to be effective. Do discount brokers seek "best execution"? Can new issue preferred stocks be purchased without cost? Is a no load fund a freebie? Is a WRAP Account individually managed? When cheap is an investor's primary concern, what he gets will generally be worth the price.

Compounding the problems that investors have managing their investment portfolios is the sideshowesque sensationalism that the media brings to the process. Investing has become a competitive event for service providers and investors alike. This development alone will lead many of you to the self-destructive decision making errors that are described above. Investing is a personal project where individual/family goals and objectives must dictate portfolio structure, management strategy, and performance evaluation techniques. Is it difficult to manage a portfolio in an environment that encourages instant gratification, supports all forms of "uncaveated" speculation, and that rewards short term and shortsighted reports, reactions, and achievements?

Yup, it sure is.

Steve Selengut
http://www.sancoservices.com
http://www.valuestockbuylistprogram.com
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

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#859

From: "Harry" <hbonet@...>
Date: Mon Apr 17, 2006 1:40 am
Subject: PTS Picks

mapleleaf67207

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+47.94 points even though a short week.

For next week's picks, go to PrecisionTradingSystem.com

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#858

From: "investorshelper" <investorshelper@...>
Date: Sun Apr 9, 2006 10:04 pm
Subject: Frontline Thoughts: Fingers of Instability

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"We are going to start our explorations with excerpts from a very
important book by Mark Buchanan called "Ubiquity, Why Catastrophes
Happen." I HIGHLY recommend it to those of you who like me are trying
to understand the complexity of the markets." -Mark Mauldin

http://investing-software.com/commentary/articles.html?next=383

ih

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#857

From: "Harry" <hbonet@...>
Date: Mon Apr 3, 2006 4:01 pm
Subject: PTS Picks

mapleleaf67207

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+40.79 points last week from PTS Picks. For this weeks picks, go to
PrecisionTradingSystem.com

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#856

From: investorshelper <investorshelper@...>
Date: Sun Apr 2, 2006 12:35 am
Subject: Chicago Sun Times, IL: Time To Do Away With The IRS

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April 1, 2006
BY LEO LINBECK

Leo Linbeck is chairman of Americans for Fair
Taxation, a national organization seeking replacement
of the income tax with a non-regressive sales tax,
known as the FairTax.

. . . The patchwork quilt of tax loopholes,
exclusions, adjustments and various forms and
schedules that we all struggle to understand is a
reflection of the wholesale auctioning-off of the tax
code over the last several decades at the hands of an
army of powerful, well-heeled lobbyists. The hallway
in front of the tax code-writing House Ways and Means
Committee where they practice their lavishly
compensated trade has even been dubbed ''Gucci Gulch''
in recognition of the $1,000 shoes worn by many
lobbyists.

Tax policy is big business in Washington . . .

http://www.suntimes.com/output/otherviews/cst-edt-ref01a.html


ih

For an easy-to-understand overview of the FairTax
concept, visit:
http://www.investing-news.com/artman/publish/article_1195.shtml

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