Book Value is the company’s assets minus the liabilities plus liquidation price of any preferred issues. Some famous smart investors use book value as a guide to determine if a stock is a good investment or not.  By knowing the book value of a company, you can reduce your downside risk in bear market.

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Secondary Offering is a selling of a large block of shares issued by companies to raise additional money.  Some of the shares that make up the offering could be from insiders selling and some may be new shares issues thus increasing the outstanding shares and possibly diluting the shares.

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A Mutual Fund is a company that is takes a the investors money and invest it any number of investments from bonds to stocks.  A fund is required to buy your shares from you when u sell some of the shares which could be higher or lower than what u pay for them.

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Margin Calls is when the % of equity verses the debt falls below the broker’s min. standards, a margin call is issued to either come up with the money to bring the equity back to 50% or the shares of the portfolio will be sold to bring it up to 50%.  There is usually only […]

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Buying to Cover  after someone shorts shares of a stock, they repay back the shares they borrowed by buying the same shares back on the open market.

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Junk bonds are issued by the company that is in poor financial  condition.  Those junk bonds have interest rates about 3-4% higher than regular bonds to compensate buyers for the higher risk taken.

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A covered call is an option strategy with which you sell a call against shares that you already own. Here is how covered calls work.  Essentially, if you’ve got a stock in your portfolio that you wouldn’t mind selling for a certain price, you could then write a call against it. For writing such a […]

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Money Management can easily be applied through use of some common sense.  We have some guidelines that should help your long-term trading success. 1. Risk only a small percentage of total equity on each trade, preferably no more than 2% of your portfolio value. I know of two traders who have been actively trading for […]

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Stock value is an important skill to learn so that you can accurately determine a stock’s valuation. We show you proven models that have used over the years.  For decades, value investors enjoyed returns in excess of 17% while their counterparts in the growth camp suffered slightly lower returns averaging only 16%+. However the tide […]

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Dollar Tree is the #1 store that sells items for $1 or less.  Our stock pick prediction and analysis is based on predicting future growth of Dollar Tree.   Dollar Tree sells a wide variety of items ranging including consumables, toys, gifts, house wares, tools and office supplies.  There is now over 3,400 stores in […]

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