November 2011 Webinar: An Introduction to Candlesticks, Part 2
Beat Low Interest Rates with Stock Dividends
Websites for EPS Judgment Estimates
InvestEd 2012 in Charlotte NC
June 8-10, 2012
Renaissance Charlotte Suites Hotel
Update! Curriculum Online; Early Registration Deadline 12.31.11
The InvestEd 2012 conference offers two and one-half days of investor education with a dynamic curriculum, including 30 new sessions, hands-on help in the Computer Lab, lively discussions in the Friday and Saturday night Cyber Cafe, and five meals.
Phil Keating presents investing lessons from five decades and building an all-weather portfolio, Bart Womack discusses the future of Social Security, and Don Cassidy shows you how to invest when the economy is stuck in the mud. Bob Adams educates attendees on reverse mortgages, and Lynn Ostrem demonstrates how to shop for stocks to study.
These sessions are just the tip of the iceberg. Broaden your education and discover how a combination of fundamental and technical analysis (TA) may improve your investment profits. Mary Ann Davis, Saul Seinberg, and Don Cassidy teach a number of sessions on a wide variety of TA techniques.
Special program options, at no additional cost, are the Friday afternoon computer and technology Bonus Sessions and the Newbie Program. The celebrated Newbie Program on Saturday and Sunday is designed for those who are new to investing, want a refresher course, and/or need help with stock selection software.
In the Friday afternoon Bonus Sessions, learn about cloud computing, getting things done in Gmail, and collaborating with Google Docs, as well as what Google Plus is all about. You likely will improve your productivity when you learn about new items for your computer toolbox.
The entire weekend schedule and the session descriptions are on the InvestEd 2012 website.
The reduced $369 holiday registration rate saves you $40 and is available only through December 31, 2011. Students with a student identification card pay $359. Refer others who did not attend InvestEd 2011 and receive a $25 referral rebate for each one who registers. You both must attend InvestEd 2012.
The $109 (plus tax) room rate in the InvestEd room block at the Renaissance Charlotte Suites Hotel provides cost effective and comfortable lodging. Make your hotel reservations today.
Charlotte is a vacation destination where you can combine investing education and sightseeing. Visit the tourism page for ideas about where to go, what to see, and locations to enjoy excellent dining.
Education is a gift that keeps on giving. Share the wealth, build better futures, and enjoy a June weekend in Charlotte at InvestEd 2012.
InvestEd Inc. Free Webinar
An Introduction to Candlesticks, Part 2 of 2
Sunday, November 20, 2011
9:00 PM-10:30 PM ET / 6:00 PM-7:30 PM PT
Instructor: Saul Seinberg
Candlestick charts have become the default at many online charting websites and a prominent optional choice at other sites. Despite their popularity, candlesticks remain a mystery to many investors who might benefit from greater knowledge of this charting methodology.
Experienced growth investors who perform stock studies appreciate what is shown in the visual analysis because the graphs of sales, pre-tax profit, and earnings depicted there provide an excellent snapshot of a stock's underlying capability. In the same way, candlesticks visually aid an investor in effectively determining such capability on a price basis.
Each part of this webinar will focus on and explain several of the most effective and popular candlestick formations, with an emphasis on understanding these patterns and how they can be used to supplement traditional stock studies or classic western technical analysis.
You will not be overwhelmed. The candlestick patterns to be studied are not difficult to identify and, most importantly, can be understood by simply applying the logic inherent in their formation, as described in the webinar. And you'll be introduced to a website where popular candlestick patterns are identified for you on a daily basis. What a great learning tool this is!
The webinar will discuss how best to use these popular candlesticks and how to apply them for investment decision purposes. A homework assignment will be included for each part of the webinar to give adventurous attendees an immediate opportunity to apply what they are learning.
Saul Seinberg is an InvestEd instructor, presents InvestEd Inc. free online investor education webinars, and is an advisory director of the corporation. He is vice president of the online CGAB Alumni Investment Club. With degrees in electrical engineering and law, Saul spent most of his career as a corporate attorney.
Register now to attend this online investor education session. Space is limited.
Beat Low Interest Rates with Stock Dividends
By John Diercks
The Federal Reserve has been holding interest rates at artificially low levels since late 2008 in order to spur bank loans. The result has been anemic rates on certificates of deposit (CDs) and savings accounts. Even money market funds are yielding rates below 1%, and cash in your brokerage account may be earning less than 0.1%!
Many investors don’t realize the value of dividends for improving the return on a stock. As a company matures, typically the growth in earnings per share slows down. On the other hand, its dividend tends to increase slowly as the payout ratio of dividends to earnings remains fairly constant in a range of 30% to 50% or even higher, as in the case for utilities.
Many dividend paying stocks pay in the range of 3% to 5% of the stock price per year. When you add a similar dividend yield to the company’s slow growth in the stock price, e.g. 4% to 6% per year, the total return to the stockholder can approach 10% per year.
High dividend paying industries typically provide the necessities of life. Sample industries and a few of their related companies include consumer staples (Procter & Gamble and Campbell Soup), telecommunications (Verizon and AT&T), utilities (Duke Energy and Southern Company), and energy (Chevron). Finance is another high dividend industry, although it's had hard times recently. These well known companies pay annual dividends in the 3% to 6% range.
For additional high yield stocks, Mary Ann Davis described how to use a free advanced screening tool located at finance.yahoo.com. Her article, Screening for Dividend Stocks, is available in the October 2011 InvestEd Inc. Newsletter. Scroll approximately one-fourth of the way down the page to locate the article, or use the "find" feature and search for "Davis."
Higher yield investment vehicles are available on U.S. stock exchanges. They are preferred stocks, Master Limited Partnerships (MLPs), and Real Estate Investment Trusts (REITs). Preferred stocks are issued by companies in many industries. Most commonly, the higher quality preferred stocks are originated by large investment banks, regional banks, insurance companies, real estate companies, and many utilities. Two articles, Preferred Stock Investing: A Simple Guide To 7% Yield, Part 1 and Part 2 discuss the topic in detail.
MLPs typically are in the energy exploration or pipeline business, and REITs invest in real estate, as the name implies. However, before investing in these vehicles, you need to do a little homework, as they can complicate your taxes and may not qualify for the 15% dividend tax rate. In addition, many foreign stocks (e.g., Canadian and Australian) pay high dividends, but that’s an article for another newsletter.
If you are patient, you can increase the dividend yield from financially secure companies by buying on downturns in the market. For example, if you purchased Caterpillar at its low in March 2009, your dividend yield was 7.7%. Of course, if you purchased Caterpillar after the market recovered, your yield would be much lower. Caterpillar currently has a yield in the neighborhood of 2.5%.
The bottom line is dividend paying equities may provide investors with rates of return far superior to money market funds and CDs, even when the stock market is moving sideways or downward. Patience and a bit of homework selecting quality dividend stocks are in order, as with any investment.
John Diercks, an InvestEd instructor, teaches financial classes and mutual fund workshops at local, regional, and national events. Currently, he is a director of the BetterInvesting (BI) Central Pennsylvania Chapter and the treasurer of two investment clubs, including the BI Centre Region Model Investment Club. With advanced degrees in meteorology, John spent 26 years in the Air Force and 16 years as an instructor of meteorology at The Pennsylvania State University prior to retirement.
Websites for EPS Judgment Estimates
By Jerry Pillans
When I use the Stock Selection Guide (SSG) to analyze companies, I always look at a few websites to see what their analysts are projecting for growth rates. One of my favorite sites for earnings per share (EPS) estimates is MSN Money.
I will use Visa (NYSE: V) as an example. Enter the ticker symbol to see the price quote for the company. Now you are on the Investing page. Below the Visa quote, click on the Fundamentals tab.
On the new page, click on the Earnings tab below the Fundamentals tab. Scroll to the bottom of the page to the graph labeled, Earnings Growth Rates - Next 5 Years. You will pass by four graphs with additional beneficial EPS data.
The graph represents the insights of Zacks' research analysts, and it compares the company against its industry and against the S&P 500. I find this a valuable tool to use. I always look at it before I enter my final 5-year estimated EPS judgment number in the designated space below the Visual Analysis graph on the front page of the SSG.
Numerous other useful websites help you narrow down your EPS estimates. Yahoo Finance and Google Finance are free. Morningstar offers a free service, as well as a premium paid subscription service. Value Line charges a fee to use its website. Good news! Value Line offers free Dow 30 reports.
Often local libraries have licenses for Morningstar and Value Line. If so, patrons with library cards may be able to access the services from home or on-the-go with a computer or digital device and an Internet connection. Otherwise, you can use the digital and/or paper version at the library - if your library has a subscription.
Here's to fine-tuned estimated EPS judgments on your stock analysis studies!
Jerry Pillans is an InvestEd Inc. director and an InvestEd instructor, and he served as chair of the 2009 and 2010 conferences. He is a member of the online CGAB Alumni Investment Club and a past president and current director of the BetterInvesting (BI) Houston Chapter. Jerry has taught a number of 401(k) and mutual fund programs at national events. He has been employed in the petrochemical and refining industry for over 35 years and currently is employed by LyondellBasell.
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