What Is Technical Share Analysis? Section 1
Technical analysis is the art and science of examining share chart data and predicting future moves on the stock market. Investors who use this style of analysis are often unconcerned about the nature or value of the companies they trade shares in. Their holdings are usually short-term – once their projected profit is reached they drop the stock.
The basis for technical analysis is the belief that stock prices move in predictable patterns. All the factors that influence price movement – company performance, the general state of the economy, natural disasters – are supposedly reflected in the stock market with great efficiency. This efficiency, coupled with historical trends produces movements that can be analyzed and applied to future stock market movements.
Technical analysis is not intended for long-term investments because fundamental information concerning a company’s potential for growth is not taken into account. Trades must be entered and exited at precise times, so technical analysts need to spend a great deal of time watching market movements.
Investors can take advantage of both upswings and downswings in price by going either long or short. Stop-loss orders limit losses in the event that the market does not move as expected.
There are many tools available to the technical analyst. Literally hundreds of stock patterns have been developed over time. Most of them, however, rely on the basic concepts of ‘support’ and ‘resistance’. Support is the level that downward prices are expected to rise from, and Resistance is the level that upward prices are expected to reach before falling again. In other words, prices tend to bounce once they have hit support or resistance levels.
Charts
Technical analysis relies heavily on charts for tracking market movements. Bar charts are the most commonly used. They consist of vertical bars representing a particular time period – weekly, daily, hourly, or even by the minute. The top of each bar shows the highest price for the period, the bottom is the lowest price, and the small bar to the right is the opening price and the small bar to the left is the closing price. A great deal of information can be seen in glancing at bar charts. Long bars indicate a large price spread and the position of the side bars shows whether the price rose or dropped and also the spread between opening and closing prices.
A variation on the bar chart is the candlestick chart. These charts use solid bodies to indicate the variation between opening and closing prices and the lines (shadows) that extend above and below the body indicate the highest and lowest prices respectively. Candlestick bodies are coloured black or red if the closing price was lower than the previous period or white or green if the price closed higher. Candlesticks form various shapes that can indicate market movement. A green body with short shadows is bullish – the share opened near its low and closed near its high. Conversely, a red body with short shadows is bearish – the stock opened near the high and closed near the low. These are only two of the more than 20 patterns that can be formed by candlesticks.
Since the financial markets have been turned up-side down and banks are not lending, one method of financing has gained a lot of attention –securities based lending.
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For those with money invested in marketable securities, there is a golden opportunity to cash-in on the tremendous RE investment opportunities now available. Today, there are multiple commercial & residential RE properties available for about 30% to 50% of what they were only two years ago.
If you are a forward-thinking investor who wants to retain the future ownership of your assets as well as leverage the present value of your securities for immediate cash needs, this can be a terrific program.
Click here for information about Securities Based Lending / Stock Loans
What Is Fundamental Stock Analysis? Section 2
Although the raw data of the Financial Statement has some useful information, much more can be understood about the value of a stock by applying a variety of tools to the financial data.
Earnings per Share
The overall earnings of a company is not in itself a useful indicator of a share’s worth. Low earnings coupled with low outstanding shares can be more valuable than high earnings with a high number of outstanding shares. Earnings per share is much more useful information than earnings by itself. Earnings per share (EPS) is calculated by dividing the net earnings by the number of outstanding shares. For example: ABC company had net earnings of $1 million and 100,000 outstanding shares for an EPS of 10 (1,000,000 / 100,000 = 10). This information is useful for comparing two companies in a certain industry but should not be the deciding factor when choosing shares.
Price to Earning Ratio
The Price to Earning Ratio (P/E) shows the relationship between share price and company earnings. It is calculated by dividing the share price by the Earnings per Share. In our example above of ABC company the EPS is 10 so if it has a price per share of $50 the P/E is 5 (50 / 10 = 5). The P/E tells you how much investors are willing to pay for that particular company’s earnings. P/E’s can be read in a variety of ways. A high P/E could mean that the company is overpriced or it could mean that investors expect the company to continue to grow and generate profits. A low P/E could mean that investors are wary of the company or it could indicate a company that most investors have overlooked.
Either way, further analysis is needed to determine the true value of a particular stock.
Price to Sales Ratio
When a company has no earnings, there are other tools available to help investors judge its worth. New companies in particular often have no earnings, but that does not mean they are bad investments. The Price to Sales ratio (P/S) is a useful tool for judging new companies. It is calculated by dividing the market cap (stock price times number of outstanding shares) by total revenues. An alternate method is to divide current share price by sales per share. P/S indicates the value the market places on sales. The lower the P/S the better the value.
Price to Book Ratio
Book value is determined by subtracting liabilities from assets. The value of a growing company will always be more than book value because of the potential for future revenue. The price to book ratio (P/B) is the value the market places on the book value of the company. It is calculated by dividing the current price per share by the book value per share (book value / number of outstanding shares). Companies with a low P/B are good value and are often sought after by long term investors who see the potential of such companies.
Dividend Yield
Some investors are looking for shares that can maximize dividend income. Dividend yield is useful for determining the percentage return a company pays in the form of dividends. It is calculated by dividing the annual dividend per share by the share’s price per share. Usually it is the older, well-established companies that pay a higher percentage, and these companies also usually have a more consistent dividend history than younger companies.
Since the financial markets have been turned up-side down and banks are not lending, one method of financing has gained a lot of attention – Securities Based Lending.
Click here for information about Non-Purpose, Non-Recourse Loans
For those with money invested in actively traded securities, there is a golden opportunity to cash-in on the tremendous RE investment opportunities now available. Today, there are multiple commercial & residential RE properties available for about 30% to 50% of what they were only two years ago.
If you are a forward-thinking investor who wants to retain the future ownership of your assets as well as leverage the present value of your securities for immediate cash needs, this can be a terrific program.
Click here for information about Securities Based Lending / Stock Loans
Why You Should Look for Stock Advice Online –
Why should you look for stock advice online? Consider overwhelming reason. In “years past”, a person looking to invest in stocks had to pay a hefty commission to a stock broker who made the transactions for them. The majority of these individuals had to rely on the broker for advice or study the stock market on their own seeking information from newspapers, magazines and the library.
Stock brokers made their money whether or not the advice they gave you was any good and the information available to the average person was not usually enough to qualify them to make good decisions, so only the rich could afford the kind of information that would make them richer.
Today, things have radically changed – we are in the “information age”. Everyone has access to a lot of top quality stock advice online. You don’t have to be an elite member of society to have a real chance of making your fortune on the stock market. Rather than blindly trusting a broker’s advice, doesn’t it make more sense to educate yourself with good stock advice online so you can make a qualified decision?
Today there is just so much information available online today that it would be entirely foolish not to take the time to educate yourself so that you can recognize the shifts and trends in the market that can make you rich. There is a wealth of information available for anyone willing to look for it.
Finding good stock advice online isn’t as difficult as you might think, either. You should look for information that teaches you how to read and analyze stock charts because these are instrumental in helping you to recognize a trend that indicates that you should buy or sell a particular stock. Once you are armed with this type of knowledge you will be much better prepared to make a healthy profit through buying and selling stocks on the stock market.
The internet is the “great equalizer” of today because so much quality information is available to everyone regardless of their race, religion or economic standing. The best stock advice online is there for the taking to anyone who will reach out their hands and grab it. Especially during these tough economic times when people need to increase their incomes more than ever, stock advice online is there to help lead the way. Of course a person still has to use that information wisely, but nonetheless, it is available for any person to study and use to make good stock purchasing decisions.
Why should you look for good stock advice online?
- 1. For starters, to help you achieve “financial independence”, and
- 2. Give you a chance to save for retirement and maybe even retire early so you won’t have to rely on your employer or the government to have any money left to give you when the time comes.
- Wealth building should be your number one reason for seeking online stock advice.
Since the financial markets have been turned up-side down and banks are not lending, one method of financing has gained a lot of attention – Securities Based Lending.
Click here for information about Non-Purpose, Non-Recourse Loans
For those with money invested in marketable securities, there is a golden opportunity to cash-in on the tremendous RE investment opportunities now available. Today, there are multiple commercial & residential RE properties available for about 30% to 50% of what they were only two years ago.
For example, CEOs, CFOs or COOs, with large publically traded companies, who have large blocks of corporate stock can leverage those assets to take advantage of investment opportunities.
If you are a forward-thinking investor who wants to retain the future ownership of your assets as well as leverage the present value of your securities for immediate cash needs, this can be a terrific program.
These loans are –
· Simple & Quick – NO Credit Check / NO Income Verification / NO Upfront Fees / NO Closing Costs / NO Personal Guarantee
· Loans are “Non-Purpose” – loan can be used for virtually anything borrower wants to accomplish (personal or business)
· Loans are “Non-Recourse” – giving the borrower the opportunity to simply “walk away” if the collateral falls below a set floor amount
· High Loan-to-Values – up to 80% LTV (depending upon security); which is much higher than banks and brokerage companies can offer
· Loans are Interest Only – principal payment at maturity; otherwise loans can be refinanced or extended
· Low Fixed Interest Rates – usually between 2% to 4%
· Loan Term – minimum of 3 yrs; also 5 yr / 7 yr / 10 yrs
· Quick Funded – usually within 5 to 7 business days
Click here for information about Securities Based Lending / Stock Loans
Who is a trusted authority to talk with about a Stock Loan?
In today’s current financial crisis, securities lending / stock loans are being utilized more and more to raise capital for individuals and companies. Therefore, it is important for you to have a trusted authority for this type of “non-recourse” lending.
Choose a lender who has a proven track record in providing world-class customer service to their clients. Choose a lender who is supported by a national network of loan professionals and other financial, legal, and research support personnel.
Choose a Full-Service Securities Lender who offers 100% Non-Recourse / Non-Purpose Loans, based upon stocks & other securities which can be used for both personal or business purposes.
Securities Lending is a long-established process. Collectively, hundreds of successful stock-lending transactions which have been executed involving the American Stock Exchange (AMEX), National Stock Market and Small Cap Stock Market (NASDAQ), New York Stock Exchange (NYSE), Over-the-Counter Bulletin Board (OTCBB), and certain foreign exchanges.
This is NOT the same as getting a “Margin Loan” with your securities broker. Generally, margin loans will not give you as much money against your stocks as private securities lending.
Click here for information about Non-Purpose, Non-Recourse Loans
For those with money invested in actively traded securities, there is a golden opportunity to cash-in on the tremendous RE investment opportunities now available. Today, there are multiple commercial & residential RE properties available for about 30% to 50% of what they were only two years ago.
Stock loans can be used to purchase RE or any other use – these are non-purpose / non-recourse loans.
For example, CEOs, CFOs or COOs, with large publically traded companies, who have large blocks of Corporate can leverage those assets to take advantage of investment opportunities.
This lending program is designed for a forward-thinking investor who wants to retain the future ownership of their assets as well as leverage the present value of their securities for immediate cash needs.
These loans are –
Simple & Quick – NO Credit Check / NO Income Verification
NO Upfront Fees / NO Closing Costs / NO Personal Guarantee
- Loans are “Non-Purpose” – loan can be used for virtually anything borrower wants to accomplish (personal or business)
- Loans are “Non-Recourse” – giving the borrower the opportunity to simply “walk away” if the collateral falls below a set floor amount
- High Loan-to-Values – up to 80% LTV (depending upon security); which is much higher than banks and brokerage companies can offer
- Loans are Interest Only – principal payment at maturity; otherwise loans can be refinanced or extended
- Low Fixed Interest Rates – usually between 2% to 4%
- Loan Term – minimum of 3 yrs; also 5 yr / 7 yr / 10 yrs
- Quick Funded – usually within 5 to 7 business days
Click here for information about Securities Based Lending / Stock Loans