In turbulent times like these, it is important to make sure that the companies you are investing in are financially stable. One way to determine this is by looking at the company’s balance sheet and comparing the amount of debt they have with the amount of cash they have. If a company has a lot of cash and little debt, they will have more opportunities and provide more stability to shareholders than less fortunate companies who have little cash and a lot of debt.
Analysis of America’s Economy – Part 2 of 2 – Warren Buffet
According to the President, Congress, independent financial experts, and TV pundits, this week’s economic picture for the country is the worst seen since the Great Depression. It can be argued that Warren Buffet is the richest man in the United States, turning over his capital to the Bill and Melinda Gates Foundation for philanthropic purposes notwithstanding.
Analysis of America’s Economy – Part 1 of 2; Sound or Sand?
The world is now focused on the state of the American economy and more specifically, on Wall Street. America’s current crisis is the ultimate trickle down, economic theory. The housing meltdown created solvency issues, within the banking industry, when borrowers defaulted on mortgages. The construction industry continued to borrow to build more housing, leaving a glut in unsold properties and a further insolvency issue in the construction side. Many of these mortgages were underwritten by insurers who bet (and lost) that the mortgages would go to term and not enter bankruptcy proceedings. Wall Street firms bet on bundled packages of mortgages that were traded as if they were commodities, hoping for exorbitant profits on ARM (Adjustable Rate Mortgages) and Sub Prime Loans. Mutual funds bought into firms that touted profit margins that simply weren’t there or sometimes, allegedly, were fraudulently promoted. Investors, fearing the aforementioned insolvencies, withdrew millions from affected…
Investing in Commodity-Related Companies
The recent decline in the stock market has provided investors with several opportunities in commodity-related stocks. The recent decline was mainly due to heavy selling by hedge funds and the decline in consumption of these commodities from China. The fundamental long-term outlook for these companies remains solid and this should turn out to be a major buying opportunity for many of these companies. Through most of the 2007 and the first half of 2008, commodity stocks were on fire. However, over the last two months, many of these stocks have lost 50% or more of their gains. Some of the best commodity-related stocks that are now cheap according to their Price Earnings Multiple are Freeport McMoran Copper and Gold (FCX), Nucor Corporation (NUE), Bucyrus International (BUCY), and Arch Coal (ACI).
Top Busted Stocks – What Could Have Been with Stock Options
Is there another Great Depression on the horizon, or is it upon us as I write? That seems to be the question. More than a few Wall Street giants have gone belly-up in this time of, to put it lightly, unfavorable conditions. In the past couple of days, the biggest news to hit Wall Street is that of the demise of behemoths such as IndyMac, AIG, Lehman Brothers, Fannie Mae, Freddie Mac Bear Stearns, and don’t forget the buy out of Merrill Lynch by Bank of America (BAC).
Investing in Global Warming
The signs of the increasingly warming world are becoming clearer, whether global warming is something to become alarmed over or whether it is here to stay is still questionable. In an environment of global warming there will be companies taking advantage of the warming environment to produce profits. Listed below are a few to consider.
Stock Options in Sports: Take me out to the Ballgame!
The next line in that famous baseball song goes “Buy me some peanuts and cracker jack.” These days investing in baseball are even more popular than peanuts, if certainly not more profitable. Baseball is big business and there are some big league company names investing and partnering with Major League Baseball (MLB) to increase their bottom lines.
Hedging and Protecting Oil Investments with Stock Options
The energy sector has never been more volatile and exciting than it is today. Recently oil prices dropped from $145 to around $100 a barrel. But, the roller coaster is just beginning. Many analysts predict that prices will rise and fall many times in the next couple of decades. As we seek to find alternative fuels and energy sources, there’s still a lot of money to be made on oil. With stock options as insurance against loss, you can trade these exciting stocks and increase your portfolio. To limit damage from a dramatic decrease, stock investors can purchase put stock options, a married put is an example of a put option position. As the price of a stock investing position decreases, a put option‘s value increases, limiting a loss for the underlying stock. Additionally, investors can hedge their stock positions with covered calls. A covered call investing position can provide…
Motorcycles Save Fuel – Investing – Stock Options
With high gasoline prices, consumers are looking for ways to save money on fuel. There are many ways to accomplish this goal: drive less, take public transportation, telecommute, or buy a more fuel-efficient vehicle. Considering our driving habits, driving substantially less doesn’t seem likely, and for people who aren’t in a densely populated area, public transportation isn’t a possibility. This leaves the average consumer with one possibility: buy a more fuel efficient and less expensive vehicle. For many, their transportation of choice is a motorcycle.
Stock Option Investing in Sports: “Are you ready for some football?”
Nothing excites Americans more than NFL football. Nothing excites the NFL more than profits. Isn’t it about time you profit from the NFL? Look to score a touchdown with these football related investments.