Kalmia Records Blog

Both banks and brokers have their strengths and weaknesses. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property. But others will claim low rates to bring in customers or tell you that the rates 9 percent offered by competitors will change.

Although most mortgage experts say that rates 10 percent are pretty much the same wherever you go, give or take this tiny 10 percentage. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately. Different lenders charge different fees. Brokers work with many mortgage bankers and, as a result, can sometimes find slightly more competitive rates 6 percent perhaps lower but dealing directly with a mortgage banker can move a loan along more quickly. In most jurisdictions mortgages are strongly associated with loans 9 percent secured on real estate rather than other property and in some cases only land may be mortgaged. See which lenders are charging fees 8 percent and for how much. And of course, each loan and each borrower are different. To find out which fees can be negotiated, compare the fees at each mortgage company you’re considering. Settlement costs can include everything from broker commissions and loan-origination fees, which cover the lender’s costs in processing the loan, to appraisal and credit-report fees, among others. Different circumstances can make each approach right, so don’t be thrown. Some will quote you precise, competitive rates 8 percent. So how do you find a lender or broker you can trust? In other words, the mortgage is a security for the loan that the lender makes to the borrower. While a mortgage in itself is not a debt, it is evidence of a debt of 8 percent. Get a new home with geldlening met bkr registratie, 104116 euro is not a problem.

It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed.

Start with credibility. It’s not easy to know if the prices quoted by lenders are reliable. Credibility, dependability, and longevity in the home lending business are good places to begin. Many of these fees are fixed but some can be negotiated.

Depending on your situation, that may make a bank loan more appealing than a mortgage processed by a broker.

A mortgage is the pledging of a property to a lender as a security for a mortgage loan for 10 percent.

When an investor receives a newsletter full of stock tips and information, the first instinct is to act quickly on the information in order to make money before anyone else does. However, scam artists realize that investors like to make decisions in a short amount of time and capitalize on this impulsiveness. This is why newsletters work so well to lure in new victims.

There are several things that investors can do in order to protect themselves from bad information that may be found in newsletters, emails, or text messages. First of all, the source of the newsletter needs to be acknowledged. This will give the reader a clear idea as to who might be benefiting from the sale of the stock. Disclosures of the information that are nonexistent or difficult to find might be a clue that the newsletter has other motivations for their advice.

Any newsletter or publication that advises you to invest in small stocks that aren’t filing reports with the SEC should be carefully scrutinized. These kinds of stock tips are trying the famous ‘pump and dump’ scheme in which a little known stock is strongly advised, causing many investors to invest their money in the stock. The demand for the stock then goes up, along with the prices. However, the scam artists will then sell off their shares of the now-high priced stock, leaving the investors with a loss for their initial investments. These kinds of small stock are almost guaranteed to be scams or stock that won’t do well.

Researching the source of the information is strongly suggested as any holes in the story may be signs of a possible scam. By going to the SEC, the NAAD, and the local regulatory committees, an investor can see where the stock’s company is registered, if they are registered, and even take a look at their financial reports. Asking a lot of questions is the best way to get a fair picture of the stock and how it could perform for the investor.

The local state securities regulator can give an investor a wealth of information about a newsletter. In some cases, the newsletter may have been sued by the SEC and that information is then kept on record. Newsletters that have a history of this litigation may need to be looked at more carefully. While this doesn’t necessarily mean that the newsletter is false, it may point to a valid concern.

The reason why newsletters aren’t being shut down and regulated is because they are generally considered under the freedom of speech amendment, leaving the responsibility for good or bad information squarely in the reader’s lap. These newsletters can not be prohibited outright, but only scrutinized for their accuracy.

Just like spam emails, newsletters that are unsolicited are generally not full of good advice that an investor should take to heart. As with any advertising, these newsletters are trying to seduce an investor with promises that will not be fulfilled. However, with a little research and time, the truth of the newsletter can be clearly seen and information disregarded.

Joel Arberman is the Managing Member of Stock Aware, LLC. We publish a free investment research and analysis newsletter and offer investor awareness services. Learn more at StockAware.com.

You may have wondered why your mutual funds have been going down for the past 2 years. The answer is very simple, but not one you will hear from Wall Street as they want you to send money.

In order for stock mutual funds to go up you must have a bull market. Unfortunately, that bull ended 2 years ago and is probably not going to return for a long time. Yes, there will be short-term rallies that can last from weeks to months, but the downward spiral will continue. For the past 100 years the Price/Earnings ratio of the S&P500 index has a mean average of about 15. With the current P/E running about 41 the rubber band has been stretched too far and is now contracting toward a more realistic level. It will take a time, probably several years, for a true bottom to be reached.

Mutual fund charters require the fund manager to be fully invested at all times. The fund may be required to be invested in tech stocks, pharmaceuticals, automotive, Asia or some other specific category. If that particular sector is weak and almost all stocks therein are headed down the fund manager has nothing to buy and is not allowed to sell to put the money in cash or bonds to protect the investors. Some are allowed to buy and sell what they wish; others must invest in stocks of a particular index such as the Dow Jones, S&P 500 or the Nasdaq. Most of the fund managers today are too young to have experienced a bear market and do not know how or what to do.

The small investor today has been taught to believe that the stock market always goes up. From 1982 to 2000 it did, but that was the end. All the talking heads on radio and TV have been telling you to buy the breaks and that the market always comes back - except when it doesn’t. Almost none of them has ever seen or even studied a major bear market. The last one was 1973-74 just about the time most of these guys were in grade school or high school. They haven’t a clue and don’t know when or how to sell.

Today there are trillions of dollars in 401Ks, IRAs, pension plans, etc. run by professional fund managers, financial planners, bankers, etc. who have no idea how to protect their investors. More trillions are getting ready to go down the drain. Last year 90% of stock mutual funds lost money. The Grim Reaper is now the manager of your mutual fund.

For the little guy, that’s you, there is only one way to protect your money. If you are in one of those plans you can tell them you want to have your funds in a money market account. At least it won’t go down. If there are any fixed income or bond funds available to your account that is another safe venue.

Mutual funds are no longer a good long-term investment. The age of the stock mutual fund is over. Dead. Don’t let your hard-earned money get away.

Al Thomas’ best selling book, “If It Doesn’t
Go Up, Don’t Buy It!” has helped thousands
of people make money and keep their profits with
his simple 2-step method. Read the first chapter
to receive his market letter for 3 months at
www.mutualfundmagic.com to discover why he’s
the man that Wall Street does not want you to
know.

Comments to al@mutualfundmagic.com

Copyright Albert W. Thomas All rights reserved.

When most people think of low-risk investments, they think of stocks and bonds that simply sit in their portfolio and show no real yield or loss after several years of doing a whole lot of nothing.

Of course, this is almost never the case… even low-risk stocks and bonds have their market fluctuations and see their share of ups and downs. While the ups aren’t as extreme as some other investments, the downs tend to be rather mild as well.

With a little bit of smart investing, it’s not uncommon to be able to turn a nice profit from investments that have a lower risk.

Defining Low-Risk Investments

Low-risk investments are those investments that are not likely to suddenly drop in value, largely because the company that offers them is quite stable and generally maintains a certain price level on their shares. Because of the lower risk of sudden price drop, the value tends to increase rather slowly… though a slow increase is still an increase.

Determining Investment Risk

When determining investment risk, you should take a few moments to do some basic research on the investment and the company that offers it. Many online stock and investment sites offer research options that show you the performance of the investment over various time periods. Look at some of the longer periods, such as 1 year or 5 years, and see how consistently the stock has performed. If it appears to be fairly stable, especially with a slight increase, then the stock can be considered to be low-risk and you can proceed as you would with any low-risk stock.

“Safety Stocks”

“Safety stocks” are called this because they have been shown to be stable over a period of many years, and are considered to be some of the closest things to a sure bet as you can find with investment. These stocks tend to grow in value at a relatively slow pace, but also tend to avoid some of the drops in value and large fluctuations that other stocks periodically go through. This doesn’t mean that safety stocks won’t drop in value; this simply means that they generally recover quickly and then continue their gradual rise.

Diversifying with Low-Risk Investments

Low-risk investments are perfect for diversifying your portfolio, as they can help to counteract any losses that occur from the drop in value of higher-risk stocks. Using low-risk investments as a safety net for your portfolio can help you greatly over time, as they will slowly but surely increase in value while you continue to buy and sell other stocks that are a bit more volatile. This doesn’t mean that these investments will protect you from any loss… after all, the profits that they show only serves to offset the losses that you might experience elsewhere. Careful planning and diversification can help you to stay afloat even when the market is turbulent, however.

Long-Term Investments

Of course, you can invest completely in low-risk stocks if you choose… it’s just very important to keep in mind that you’re going to need to invest for the long-term if you do so. The long-term investment in several different lower-risk stocks can net you profits that rival some of the best short-term investments, but you will have to keep your money invested over a period of years. The longer you invest in low-risk stocks, the better the yields generally are… but you should keep an eye on even these stocks, since no investment is without its risk.

You may freely reprint this article provided the following author’s biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

As turnaround investors, I prefer to invest in companies that are down but not out. This is important because a lot of times, investors misunderstood the two. Often times, these two types of companies are trading near or at their 52 week low. But the similarity ends there.

Company that is Down. This is the company that experiences problem and it seems like it can weather the problem. It just needs time to right the ship and get back on track. How can we be certain that the company can weather the storm? The ultimate guideline is to look at the company’s balance sheet and income statement. Does the company have a positive net cash? Is the company expected to post a profit? If the answer is yes to both questions, then the company in question is most likely is just down, but not out.

Company that is Out. This is the company that experiences problem but its future existence might be in doubt. It might right the ship but by then it might be too late. As a result, shareholders will be wiped out and lose 100% of their investment. How can we be certain for the company that is out? Again, we have to check the ultimate guideline, which is the balance sheet and income statement of the company. Does the company have a negative net cash? Is the company expected to post a loss for the foreseeable future? If the answer is yes to both questions, then the company in question has the high probability of being out of business.

Using analogy without illustrations are confusing, in my opinion. Therefore, I will choose one company for each situation. Please do not treat this as a buy or sell recommendation. This is merely my observation as someone who had watched these companies for a while.

Pfizer Inc. (PFE) might be categorized as the company that is down. Stock price slumped to 8 year low this week due to weak sales of its drug franchises and tepid guidance. Management has refused to update guidance for 2006 and beyond due to uncertainty. So, let’s look at Pfizer’s balance sheet, shall we? The latest information on Pfizer shows that the company has $ 15 Billion of cash and equivalent and $ 5.517 Billion in long term debt. In other words, Pfizer has $9.5 Billion of positive net cash. How about earnings? Is Pfizer expected to post a loss? Nope, it is expected to post earnings of $ 1.95 per share for year 2005 or $ 14 Billion of net profit. Profit is plenty while balance sheet is solid. Pfizer clearly is a company that simply has a small bump in the road.

How about AMR Corp (AMR)? This is an excellent example of a company that is out. Looking at the balance sheet, AMR has a negative net cash of $ 9.5 Billion. What this means is that it has $ 9.5 Billion more long term debt than it has cash. Is AMR profitable? Not a chance. It is expected to post a loss of $ 4.36 per share for 2005 or $ 714 Million. It doesn’t look pretty. High amount of debt and big loss is the recipe for a company that is down. If AMR doesn’t turn its ship anytime soon, it might be forced to file bankruptcy.

To consistently make money, investors need to be able to differentiate the company that is down and company that is out. Weed out the company that is out and your investment return will be so much better.

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The Protective Put Strategy can be adjusted to address the
particular lean that the stock owner has at a particular time.
(The term lean describes the stock owner’s perception of the
directional strength of the stock.)

At any given time, an investor could feel that a stock may go up
or down, a little or a lot, or just stay where it is. The
protective put is not a position you would put on if you feel
that the stock you own was going to consolidate for a while. You
would have a loss in the stagnant lean scenario since the stock
made no gain but you were out $1.00 for the purchase of the put.

However, the situation is different in a bullish lean scenario.

A stock that has the potential to rise quickly also has the
potential to fall just as quickly. A stock that has substantial
potential gain has an equal potential loss.

An investor choosing to buy a stock like this should have more
protection to the downside then a covered call can provide and
at the same time more allowance for a larger upside potential
than the covered call allows.

This is a perfect time to use the protective put strategy. The
purchase of an out-of-the-money put will be a relatively
inexpensive investment but will provide the kind of results that
will best fit a bullish lean.

You will have maximum downside protection with all the room you
need for your stock’s potential run up. Of course, this comes at
a price. You must pay for the protection and freedom this
position can provide.

The protective put can also be used when you have a little
bearish lean on your stock. Let’s say that you own a stock that
has taken a very nice run up. The stock has gotten to a point
where you think about possibly selling and taking your profits
but are afraid to because you feel it may still run up more and
you will not forgive yourself for getting out too early.

Instead of selling the stock and missing out on the continued
run, look into buying a put for protection. It will allow you to
continue your capital appreciation as the stock trades up while
limiting your loss to a fixed, known amount.

In cases such as this one, the purchase of an at-the-money or
slightly in-the-money put will ensure you get a good sale price
if the stock heads down and allows you ongoing profit if the
stock continues up.

Of course, if the stock stays still, you would lose the amount
of premium you spent on the put. If the stock goes up, it would
have to trade higher than the amount you spent on the put before
your long stock’s upward movement starts to make you money
again.

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