Finding the Best Online Broker for Penny Stocks and the Small Investor
This is really the third in the series of Investing 101, the second of which discussed setting up a Small Investor Portfolio. But the title would have been too long if I left all that in. The first order of business will be to find a good discount online broker. The good news is that [...]
Margin of Safety – Beginning Investor Terms
Margin of Safety is a concept I write about a lot. It is the make or break for any investment. While I may fudge the amount from time to time, all investments have to have a margin of safety to be worth shelling out my cash. But what is a Margin of Safety?
New Beginning Investing Blog – The Fallible Investor
I came across a new investing blog that I think is terrific for beginning investors. It is the Fallible Investor. The writer is an Australian value investor who shares a lot of the same tastes as I do: Taleb, Montier, Klarman.
Intrinsic Value – Beginning Investing Terms
Intrinsic value may be the most important concept in value investing. It is the foundation of everything else. Value Investors all agree that you start with the intrinsic value of a company. Now, how you arrive at that value is a different proposition, there you will have a lot of disagreement.
What happens When the Price of your Stock Declines?
This is a question that many of us faced in 2008. It is certain we will face this issue as long was we continue to invest. The answer, in short, is it depends.
First, check to see if something material has changed in the company that would effect the intrinsic value of the company. If your calculation of intrinsic value is unchanged in relationship to the stock price, you should not sell. In fact, as the price drops you may consider adding to your position. Let’s look at Qiao Xing Telephone (XING) which I purchased back in December for $1.92/share.
Investing Risks – What is Risk?
Looking at the risks of an investment is vital to understanding whether or not it is a sound investment. In a speech Alice Schroeder, author of Snowball, said that Warren Buffett starts his examination of a potential company by looking at the risks involved. If the risk is too high, he won’t go any further. We would be wise to follow this example.
Beginning Investor Terms – Quick Ratio or Acid Test
The Quick Ratio, also known affectionately as the “Acid Test” is a metric used to measure short term solvency. In non jargon it is a formula used to figure out whether or not a company can meet its short term obligations.
MNDO – Mind C.T.I. Why you must mind the details
I was reviewing a stock, Mind C.T.I. Ltd (MNDO), because it came across a screener as a Net Net opportunity. I wondered why it had so recently turned up.
MNDO is an Israeli company that, “a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as telecom expense management (call management) solutions.”
Return on Equity (ROE) – Investing Terms
Return on Equity (ROE) is one of those fundamental concepts of investing. The principle is simple. What is the return on the stock holders equity invested in a company. As with almost everything else, there is an equation involved. ROE=Net Income/Shareholder’s Equity. Net income in this case is after Preferred shareholder’s dividends have been paid but before common stockholders dividends. Shareholder equity is common shares only, not preferred shares.
Solitron Devices (OTC:SODI) A Net Net Stock added to Portfolio
Today I bought 1500 shares of Solitron Devices (OTC:SODI) at $2.22/share with a $4.95 brokerage fee for a total of $3334.95 investment. For someone maintaining a small portfolio this is a large investment.
keep looking »