Analyzing Growth Stocks: An Important Focus For Any Investor

Analyzing growth stocks is an important focus for any investor. This is especially important, since stocks are an irreplaceable part of any good investment plan, and since unbiased stock research is hard to find. Still, we need to look at the big picture once in a while. Since so much has changed lately, this may be a good time to “take stock”. Many have reevaluated their investment strategies. The problem is that many of these reevaluations are moving people away from their goals. As the market has dropped, rather than moving toward buying at the cheaper prices, we’ve seen people move away from stocks, a strategy which has little long-term benefit.

THE PICTURE

It’s all about planning for the future. The first step is to picture the future you have in mind. Most of us already have part of the picture in our sights. We picture ourselves in a home, with food, heat, clothing -- the necessities. Beyond the basics, some of us may picture ourselves raising a family and possibly supporting our kids’ education or business ventures or helping them buy their first home. Others may imagine supporting a church or charity, or accomplishing some great humanitarian goal. Most imagine some type of vacation at least once in a lifetime, or a personal goal that we’ve always wanted to achieve. Regardless of specifics, trying to get as clear a picture of your intentions as possible is an important first step. Once we know where we’re going, we can begin mapping our path

THE PLAN

Those who fail to plan, have already planned to fail. It is nearly impossible to reach a goal if there’s no strategy in place. Of course, there are a variety of personal decisions and trade-offs involved in any plan, and only a portion of these involve finances. Let’s focus here on the financial dimension of the plan, because the financial decisions are often the ones that prevent us from reaching our goals. Financial decisions are never easy, and the issues quite often reach to the core of our being. They involve our deepest values, our choices of what is most important in our lives. If other people are involved in our life, we need to balance our values with those of our families.

Creating the financial plan involves three steps: goal-setting, measurement and implementation.

Once we’ve gone to the trouble of learning precisely what we need to achieve our goals, its time to begin translating these specifics into an action plan.

Goal-setting requires us to determine both the specific achievements we desire and the timing of these achievements. For example, it is not enough to know that we want to own a 1000 square foot home on the beach in Hawaii. We must also identify any time-frames we have in mind. Measurement requires us to evaluate the cost of our goals, and determine our pacing. We must figure out what it will take, then, based upon our timing needs, pace our plan by calculating what the per-year savings must be and the growth rate our saving must achieve to accomplish that goal. Pacing for our goals is the most technical portion of the planning process, and often where people fall down on the job. Inflation in the economy is a complicating factor here too. If we don’t take inflation into account, a long-term plan is often doomed. Imagine someone who saved up for 30 years to buy a house, ignoring inflation. She’d have saved up $25,000, and wouldn’t be able to afford anything. Her cost calculation must recognize that money loses value over time. Making these calculations can seem intimidating for the inexperienced. We have charts and graphs that we use to assist our clients in making these judgments, but for those who aren’t nearby, the American Savings Education Council has some excellent resources on the web that are fairly simple to use.

This is part of the plan implementation. The implementation stage requires us to determine the best way to reach our (now very specific) goals. The factors we will need to look at include income levels, savings decisions, and investment strategies.

Alas, this is all part of the next installment in this column. Stay tuned.

To send comments or to learn more about Scott Pearson's Investment Management Services, visit http://www.valueview.net

Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide variety of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally, and in the U.S.

Stocks Options Trading

Let's assume that you want to make some serious money and you have chosen to take things into your own hands rather than depend upon a "professional trader" to make your trading decisions. This is usually only recomended if you can afford to lose the money that you are trading with, and you appreciate the fact that there is much more upside potential with this added risk. In any case, you have decided on 3 stocks that you like and are now at your computer ready to purchase them.

Before you decide to get into the market, you will want to do some research. Determining a good time to get into the stock market is very hard, but it can also be one of the most important decisions you make. When traders get carried away and think too optimistically, the market gets over valued and it is ripe for a downturn. After that downturn is when you want to enter the market. Once believe that time is now, the next step is to sign up for a online brokerage account. Then, you will want to choose at least 3 stocks from different sectors of the stock market. Perhaps you like Genentech- DNA or Phizer - PFE as a drug stock, google - GOOG or intel - INTC as a tech stock, and Exon Mobile - XOM or Valero - VLO as an energy stock.

Then, it's as simple as entering the symbols for the stocks that you have chosen to invest in and setting a limit price. Or, if you prefer to have your trade placed instantly at the best available price, just make it a market order and it's even simplier for you. Now, unless you have the time and interest, let your stocks sit for a year or more before you even consider selling them. This way you can avoid short term capital gains tax which can eat into your profits.

Of course, if you prefer a less risky approach consider purchasing a no load mutual fund. You will want to make sure it is a no load mutual fund otherwise you could be charged up to 5% or more by your broker on each trade you make. With all the competetion out there, don't get sucked into a mutual fund with "hidden fees" like that.

I hope this article has given you an introduction to online investing and will help you.

Troy Smith is a freelance writer who also makes a living buying and selling stocks on a daily basis. Visit his Website: StocksOptionsTrading.com

Investment Attorneys and Garbage Stocks

How is it possible that trash Companies are posting less than expected results? Trash Companies are thought of by prudish investors as some of the safest stocks to own. Ask Warren in his Buffet of Essays on Corporate America. Companies which service the needs of the people tend to stay afloat longer and respond very little to economic down turn. Most investment advisors and attorneys would agree. And anyone who has ever stopped to ponder the idea of recession proof businesses would inevitably put Trash and Refuse companies at the top of the list. What other companies? Environmental Companies, Security Companies, Cigarette makers, vice industries (gambling, drinking, risqué type businesses).

We had put together a list last year for our own company of industries during the recessions which were safest to do services for without being strung out on accounts receivables or having companies file bankruptcy on us. We are in the cleaning business and only got burned by a few such industries we had put on the list. Yes all those listed and about 23 others were on the said list in a Memo we call “Letter’s from Lance” copying the Michael Dell theory of management and personal contact to each and every member on the team, his of course discussed in his book, “Dell” by Dell. He called them ‘Messages from Mike’.

If you are wondering how a guy who washes cars can have so much data output, realize we do these discussions from the top of our heads, so it is merely a fact of putting into key strokes, the data is data from past experiences, knowledge and insight from reading many different and unique sources as to never be jaded by Corporate Propaganda, Media Hysteria, here say or rumors. Before you call your investment attorney to sue the trash company for their forward looking statements, think about the changes in that industry. Also understand that 23% to 40% of their business comes from commercial accounts not residential accounts, thus during a recession it may not always be the safest bet, but all in all not a bad bet. If you want further advice call; Jim Kramer on Mad Money; let him tell you. Think about it.

Lance Winslow, a retired entrepreneur, adventurer, modern day philosopher and perpetual tourist.

Investment Lawyers and Trash Stocks

The trash business in its efforts to cook their books trying to keep pace may find itself in some trouble. The efficiency per Garbage Truck unit numbers was growing exponentially at a time when consolidation has slowed as there is a decreasing number of worthy deals to make for a good value, Ah ha Warren Buffet’s favorite remarks are here too.

Not because we read all his essays but because in this regard and subject matter he is correct. Wayne Hiezenga in his expansion efforts battled the mob based trash companies, mom and pop shops and the interference from regulators and government being used and manipulated by the said competition in an effort to keep the norm without innovating, lowering costs for consumers or even attempting to better themselves. And why would they when they could lobby powerful allies in government to further corrupt their position of collecting $15.95 per month times the population base of an area. Talk about a gravy deal, there has been no better business than the trash business. Regulators are always tilting the field and pummeling some entrepreneur to save another lazier competitor. That is what they do best, so caught up in the game itself they do not even realize they are being played for suckers. Adam Smith warned us about this problem in Capitalism and we have not as of yet fixed that little issue.

Well where are the strongest profit regional markets for refuse companies? Places like SF, Dallas, Houston, LA, Bay Area, Boston, Philly, Chicago, Atlanta, Miami, etc where during the recession had up to 28% unfilled office space; thus less people throwing away, shredding and recycling. The downtown office districts have picked up a bit, but certainly not at the level they were. This along with the high fuel prices could be the reason for the sagging prices, but do not call your investment lawyers or attorneys yet, the whole thing could rebound by fall. Think about it, think about all the trash in our society today.

Lance Winslow, a retired entrepreneur, adventurer, modern day philosopher and perpetual tourist

Investing in Trash Company Stocks

Refuse is a serious issue in any society, about as serious as cleaning the water and air, even more so to some degree, especially if you study your history with regards to the plague. This is why it is considered one of the better long-term hold stocks to have in one’s portfolio. Today people are living much longer generally due to cleaner living environments, proper trash disposal, sewer treatment plants and a relatively clean civilization.

When building owners cut costs to keep their investments you have a considerable risk when you lengthen the time between trash intervals, even worse when the garbage companies cut corners or in one case an Environmental Company which is Canadian Based allowed untreated chemicals into where they should not be. Cutting corners to save money. But when it is this serious why is it done? Well for one people want something for nothing. Part of this reasoning of these companies is the stock gambler wanting exponential growth and demanding returns that do not exist under current thinking in a matured market such as trash and refuse in economic downturn. It was always considered a safe industry no matter what the economy was doing, yes it is safer than most, but not so safe as to be unaffected in economic recession as we saw in 2001-2003.

No matter how much you improve the efficiencies there is a diminishing return available, just like in manufacturing and Finite Capacity Scheduling models for workflow. When any company stays within a finite arena where there is little or no innovation in such a maturing market you run out of places to sell your wears. Think about it.

Lance Winslow, a retired entrepreneur, adventurer, modern day philosopher and perpetual tourist.

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