Nov 14

Who could forget the Facebook’s debacle that took place at its IPO?  IPOs gone badly provide an opportunity for investors.  So far this year 108 new stock issues took place in the U.S.  Of those 43 percent are trading below the IPO price.

Groupon, an online market place for discounted products and services which went public in November 2011 is selling 80 percent below the IPO price.  In 2011, Teavana Holdings went public at $17 a share and traded below the IPO price since peaking at $28.50 immediately after the IPO.  Starbucks recently agreed to buy the company for $15.50 a share.  Other busted IPOs include oil and gas explorer Matador Resources, networking outfit Infoblox, mining company U.S. Silica Holdings, and chemical company GSE Holdings.

More than $1 trillion of excess cash is waiting on corporations balance sheets at this time.  The current climate provides an opportunity for those corporations who are in the hunt.  If the U.S. goes over the fiscal cliff at the end of the year, not only the personal income tax rates but also the tax on dividends will go up.  This opens up a window for corporations to buy companies of IPOs gone badly rather than increasing dividend payouts.

Oct 2

The Federal Reserve’s latest announcement dubbed by many as QE3 (third quantitative easing) expect to pump more than $40 billion a month for an unspecified period of time to buy mortgage bonds. Additionally, the Feds are planning to keep the short-term interest rate near zero for at least three more years. This is not good news for income investors. It pushes income investors, mostly retirees to look for higher risk bonds and it is driving up prices and driving down yields. Fears of a looming fiscal cliff in the coming year and Feds attempts to jump start the economy especially pathetic job market are adding to the uncertainty making it even harder to find reasonable fixed-income investments.

Since the Federal Reserve programs are going to go farther than 2016, investors who are looking for bonds have very limited options. The 10-year Treasury’s currently yield 1.7 percent. However, the inflation estimates are hovering around three percent. Given the inflation worries and the Fed’s time frame to be active in the market place, fixed-income investors should look into high yield corporate bonds or mortgage-backed securities. Another option is to look into sovereign debt of other countries such as very attractive bonds of Italy and Asia.

Apr 17

April 17, 2012 is the deadline to file your 2011 tax return. Most of the states followed the IRS deadline and made that its deadline to file your state tax return. We thought this is an appropriate time to remind you about some tax facts.

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The number of audits of individual tax returns by the IRS is increasing steadily. In 2000 the IRS audited one in every 203 returns. This number has grown to one in every 90 returns in 2010 increasing your chance of an audit by the IRS. During the same period audits by mail increased accordingly and face to face interviews somewhat slower than “by mail” audits.

The IRS is also issued more liens to collect back taxes. From 1999 to 2011, the number of liens issued by the IRS increased by 521 percent. However, the amount collected from liens increased by 4 percent during the same period. In a bankruptcy, a recorded tax lien can be collected at the time of the change of ownership of the property. However, the collection of tax liens depends on the number of liens on a property, whether they are senior to the tax lien, and whether the property is over encumbered.

Mar 27

Yielding to the mounting pressure from shareholders, Apple on March 19, 2012 announced that it will buy back $10 billion worth of its stock and after 17 years pay a quarterly dividend of $2.65 a share starting from July 1, 2012 quarter. The last time Apple paid a dividend was in 1995. Apple has $97.6 billion cash on hand. The proposed stock buyback will start on its new fiscal year which starts on September 30 and will continue for three years. Both items together will cost Apple approximately $45 billion. Apple’s shares are hovering around $600 lately.

Previous CEO of Apple, Steve Jobs, resisted stock buybacks and dividend payments since he returned to the company in 1996. He argued that the cash can be used for more product development creating more value for the company. The new development is a complete departure from Jobs vision for the world largest company.

This announcement will create new demand for Apple’s stock from those Wall Street fund managers who are looking for dividend paying stocks.

The new move proposed by Apple may pressure other highly profitable behemoths such as Google, eBay, Dell, EMC, and Berkshire Hathaway to follow suit.

Jan 30

Filing for bankruptcy is a life changing decision. It can effect your personal and professional life in a number of difficult ways. Sometimes there is no other way out. Understanding bankruptcy and all the Chapters that you are able to file can get confusing. If you are using a lawyer, they may start speaking to you in terms that you do not understand. If you are filing on your own, you will definitely need to know what it is your filing for and which Chapter option is ideal for you, your business and your home situation.

Filing for bankruptcy is not as easy as you may think. There are actually four different bankruptcy filings to choose from. As most people know there are Chapter 7 and Chapter 13, these are not your only options. If you are attempting to file on your own, or simply want to understand the jargon your lawyer is speaking, you should know which each Chapter means. Chapter 7 is the most common bankruptcy filing. Chapter 7 is usually field when you are unable to pay your creditors debt. It is a liquidation process in which all of your non-exempt assets are sold, to then pay off your creditors. Chapter 7 can be filed by corporations, businesses, individuals, and married couples.

Chapter 11 is considered a reorganization, and is filed mostly by corporations and partnerships. This typically means that the debtor remains in business and is able to keep their assets. Debtors propose a plan to creditors to reorganize payments, which are than confirmed by a court of law. This than binds the creditors and debtors into a repayment plan that they must abide too. This can include a companies future profits as well as sales money from some of their assets.

Chapter 13 is for people that have a regular income. This Chapter allows you to keep your assets and property while making a regular payment that is agreed upon. The repayment plan will be based on the debtor’s income and how much of their debt is still owed. Chapter 13 is usually filed for when individuals are trying to keep the possession of their home and vehicle. It can immediately stop the foreclosure and repossession process.

Filing for bankruptcy isn’t easy. You may need to hire a professional to help you with the process. Contact a bankruptcy attorney in Thousand Oaks or a bankruptcy attorney in Woodland Hills to help you determine which Chapter will work best for you.

Find out more about Legal Blogs.

Jan 23

The Standard & Poor’s 500 Index has a dividend yield of 2% compared to almost 5% for the European stocks and about 2.5% for the Japanese.  U.S. companies are able to pay higher dividend due to strong earnings in an otherwise challenging market.  This does not mean that you look into foreign stocks for yield.

Choices at home for investors are very limited.  Bonds and short-term deposits are yielding next to nothing or near zero.  Yields are near 50 year lows.  Corporations are opting for buybacks instead of paying dividends.

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What should investors who are retired and on Social Security look for?  If you are depending on higher yields on your investments, you should look for higher dividend paying stocks of US companies for income.

Look into the companies in the telecom sector.  On average, they pay about 5.5% yearly dividends.  Another sector that has an average of 4% dividend yield is utilities.  Also, there are individual stocks to consider.  Time Warner increased its annual dividend to 4%.  AT&T pays an annual dividend of 5.8%.  Other stocks to consider: Lockheed Martin (4.8%), Merck (4.3%), NYSE Euronext (4.4%) and Pfizer (4%).

Feb 5

So you want to learn Forex investing?

The truth is that it has been a jungle out there but with the change that technology and the internet has brought about, it is now possible for people to ease themselves into the investing aspect of the Forex market.

Yes, there are several websites over the internet that not only offer any interested Forex investor with the latest Forex news that can impact their investments either for the worse or the better. And since there is a barrage of information that comes in from everywhere these days, one has to be very careful which source they give importance to.

However, the ones who get to profit from this the most are the rookies as there sites that not only allow them to open a trading account for free and practice trading before actually investing any money but it also offers the latest opinions from reputed experts as well.

One can not only get up to speed with the terms that are a part of the Forex market but they can also get access to websites such as Daily FX that will ensure that they get the most reliable news on which they can act accordingly.

One way or another, this will mean that all one has to do is log on to the internet, and pick the best Forex broker that suits their needs the most, and thus, get started.

Feb 3

In most cases, when people have had to deal with a currency trading broker, things have not necessarily ended well. Of course, these brokers look out for themselves and that means buying when their clients sell, and vice-versa.

All this has changed because of the intervention of technology. Now since there are options for traders to use Forex online trading software, the dependence on the expertise of brokers has completed changed for the better.

And what makes this even more important is the fact that one can not only receive tips, signals and catch up on the latest news in the Forex market, one can get in touch with other Forex web traders and discuss the trends in the currency pairs that they are interested in.

All in all, this means that the power is back where it belongs, and one can begin to realize the goal of being able to make a tidy profit once you begin to understand the basics of the Forex market, especially if you are a beginner.

Of course, there’s a lot of stuff for those who have been in the Forex trade for a while, and perhaps they are the ones that will truly understand the benefits that the internet has to offer. One way or another, this will mean that there is greater freedom for all who are interested in investing in the Forex market.

Feb 1

Are you tired of being shafted by your currency trading broker?

Well, it’s understandable that you feel this way but sometimes you need to make a change for the better, and this comes from trying something new in your life. And what is being suggested is the fact that the internet and specific software can help you gain a greater degree of independence when it comes to making decisions in the Forex market.

And this is where Forex trading has really changed as one can go online and really make a tidy sum if he takes the same approach similar to the currency trading strategies that most of the old school folks use.

Not only can one get Forex news and tips over the internet but they can also communicate with other investors so that they can get signals that will lead to greater profitability in the short and long run.

And while all these changes have occurred, what hasn’t changed is the way one can make profits from the market and this is in regards to tapping into the potential of the Forex exchange rates and the currency pairs with which one will make investments in.

One way or another, you can bid goodbye to the old ways of the Forex market, and find yourself in a fairer environment where one can make money as well.

Jul 28

Forex is perceived as something quite difficult and hard to grasp, and elicits a sense of complexity whenever it is mentioned. Probably owing to this fact, the mention of a term- easy forex may be quite shocking or even unacceptable to many people. Well, Forex is no doubt a technical or a complex topic, but it need not stay that way for you. With a little effort and lot of determination and interest, you can easily become a master of Forex within a short while.

Is there a way to learn Forex so easily is certainly the topmost thought crossing your minds at this point- is it not? The answer is a big YES. There are multitudes of websites which provide a detailed study course on Forex online. These online courses are provided free of charge and can easily be studied slowly and gradually at your own pace. What’s more, many of these online websites offering the online courses also make provisions for mock exams, so that you can test your knowledge.

Once you have finished studying the basics and the fundamentals of Forex, you may feel more confident and well equipped to trade in Forex. But never jump in to trading Forex with your real money as soon as you learn the basics. If you do so, you will definitely lose most and all of your investment. Start a demo account and have a good look at the forex charts, so that you become acquainted with them. Start a live trading account only after practicing for at least 6 months on a demo account.

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