How to begin? Today we go over a few important things you need to do to begin. So you’re getting all this information on economic reports, insider buying, market volatility and etc. Everyone I have been talking to has explained that the information I have been providing is not very helpful and they are lost on what the system is about. I totally understand and want to make things as simple and informative as possible without confusing you so let me explain why the information is being provided. This program is a 6 month learning system that will change your life for the better if you put the time into it! It is not designed to make you understand everything about the stock market in two weeks so if you’re feeling a little lost right now, just stick with it and things will start falling in place without you even realizing it. Any business you will ever start will require lots of research, time, money and the motivation to have a strong desire to succeed. That’s why most new businesses close within two years of starting. They also require for the most part: Inventory, Employees, payrolls, insurance plans, social security deductions and the list goes on for a long time but I think you get my point. More important than those items mentioned is the fact that you’re responsible for the actions of other people and ultimately your faith is tied to the performance of your employees. Being a business owner and having the privilege of working with great employees it’s not a bad thing, but with all the new changes in tax codes and health insurance you’re going to see fewer small businesses going to be able to hire full time employees and there will be a huge shift in the way we all are accustomed to doing business. Not many businesses give you the freedom of a very low start up cost, no advertizing or inventory or storefront, just the knowledge and motivation to stick with the free course is necessary. Let’s jump right in! In the notebook SGG suggested you start should have materials that cover the stock market, types of securities and brokerage information. Now what you should do is keep a log reference back and continue to add to the notebook. Your assignment this week is to add 5 companies in different industries you have an interest in. For example, if you ride a bike you may like Harley Davidson Inc. Company name (hog) is the stock symbol or what is commonly known as ticker symbol. Industry is Leisure (Products). Just for illustrative purposes only here are mine. 1. ACADIA Pharmaceuticals Inc. (acad) Drug(Biomedical) 2. Cisco Systems, Inc. (csco) Computer(Networks) 3. Tesoro Corporation (tso) Petroleum (refiningMktg) 4. Amer Int’l Group (aig) Insurance (General) 5. Las Vegas Sands (lvs) Leasure(gaming) You don’t have to invest in these companies, but you will want to track the price and learn as much as possible with them as you possibly can. You will want to make sure they are all in different industries so they all don’t move in the same direction at the same time. Some may be in favor or some may not. Meaning some will be performing well while others may be lagging the market. Lagging = falling in price. If you did invest in your favorite companies over the long term you would probably do as well or better than most professional planners cause they have to provide a much larger basket of stocks and the benchmark is around 5-7% yearly gain. We do that in a week and can take the rest of the years off if you’re interested in those measly returns. Now that you have a solid foundation, let’s see what to look for in those companies. 1. Market Capitalization, This is calculated by multiplying price times shares outstanding. So for example on lvs the price is$56.44 x $824,000,000 (shares outstanding)=46,555,000,000. Company’s worth. 2. Sales LVS has annual sales of 11,671,000,000. 3. Sales per share (sps)= ever wonder how a company can be cheaper in price but is actually a lot more expense then another company in industry? 4. Price to sales Ratio lvs has a p/s 0f 3.99. you calculate the market cap divided by the annual sales to get price to sales ratio. Example 46,555,000,000 divided by11,671,000,000 = 3.9888 rounded off equals 3.99 Knowing these few simple calculations can give you a better understanding of the company and the direction is going in, also to be able to compare to other companies in the same sector. Don’t get to hung up on the figures if you don’t follow yet, just get the 5 companies you like and we will continually go over market valuations.
Posted on: Sat, 15 Jun 2013 14:55:27 +0000
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