Tag Archive | "stock tips"

Stock Tips to Keep You Going in a Troubled Market


Stock Tips

What Are Stock Tips?

You may not have a good idea of what stock tips are if you are new to investment. It is possible that you are already dazzled by all the technology involved and the fast pace of trading. If you grew up watching movies about traders, they seemed to work frenetically. Even that, though, was nothing compared to the speed with which things happen today.

Nevertheless, old-fashioned stock tips still make the world go around. The speed and accuracy of computer analyses cannot replace conventional wisdom about investment. In fact, not all the software in the world can give you useful stock tips when the market is on the verge of a major shift in the way things work.

Stock Tips for Tomorrow’s Market

If you are only barely paying attention, the market appears to be muddling along. In fact, there is reason to be much less optimistic. A lot of investors are aware now that the apparent gains of many stocks are overshadowed by inflation.

Typically, when stock tips suggest trouble, investors back out of equities and take refuge in bonds. Unfortunately, that does not seem like a good option right now. Even Treasury Inflation-Protected Securities (TIPS), which are bonds that are allegedly protected against inflation, are not a good refuge now. Experts believe that bonds are headed for trouble because there is too much government debt on the market.

The best opportunities right now involve precious metals. While physical purchases of these commodities may be unwieldy, there are many methods of investing in them through exchange-traded funds (ETFs). Stock tips suggest that these funds have sufficient liquidity to make them useful when the market calms down again and you need to get back into equities quickly.

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Stock Tips to Wake You Up for 2012


Stock Tips

Who Needs Stock Tips?

Beginners and experts alike can profit from quality stock tips and reminders. The stock market is a constantly changing environment but people typically resist change. It is easy to learn a few key methods for trading and later deny the need to change with the times. Well-timed stock tips can break you out of a rut and alert you to the new reality in the market.

2012 Stock Tips

The present is a great time for new stock tips. The reality of the stock market is wholly different from the situation in which most investors found themselves just four years ago. The total value of the stock market has recovered well but this hides underlying realities. Inflation has devalued the dollar. The value of gold has soared. Many companies have succumbed to debt and to a faltering economy.

Debt in the fundamentals of a company is more important than ever. The best stock tips for anyone actively investing right now would direct him or her to first review only the companies that have avoided debt as much as possible. Once the heavily indebted companies have been excluded, investors should focus their research on companies that deal in technology, energy or precious metals.

These three areas of the market have done phenomenally over the last few years. Other stocks have struggled to keep their heads above water but stocks from these sectors are having more success than any other investments. You can invest in technology by buying shares but the possible methods for investing in the other options are various. You can either buy gold or invest in companies that explore, mine or refine this precious metal. Energy investments include oil rig construction, oil company securities and green energy stocks. Remember that stock tips are only good until the market changes again.

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Trading Stocks, Futures and Options


How Stocks, Futures and Options Relate To Each Other

Stocks, Futures and OptionsTrading Stocks, Futures and Options in conjunction with each other is a way to hedge against market risk and take full advantage of trading opportunities, as they arise.  This trading and investing strategy is more suitable for experienced investors who understand how Stocks, Futures and Options relate to each other as investment vehicles.

Traders and investors buy or sell short stocks because they are the purest way to play a company’s performance and anticipated events, either company specific or economic.  Trading financial instruments such as options in conjunction with or in lieu of buying or selling short stocks can be a very sound and profitable stock market trading strategy.

A good way to use options in conjunction with holding a long stock position is to hedge
against an unexpected drop in the price of the stock and guarantee a profit by buying put options for the stock with a strike price at or slightly below the stock’s current trading level.  This strategy allows a trader or investor to lock in profits in a stock and keep holding the stock in case it continues to increase in price.  If an unexpected price drop happens in the stock due to unforeseen events, the holder of the put options has the right to sell the stock at the put options’ strike price, thus locking in their profit at the level of the option’s strike price.

Options can also be used to protect a trader’s or investor’s downside risk associated
with holding a stock long or short, by buying options to buy or sell a stock in lieu of buying or selling short a stock.  If the stock does not move as anticipated after an option trade is initiated, the loss associated with buying an option is limited to the premium (fee) that they paid to buy the option.  On the other hand, if the stock makes a significant unanticipated price move upwards or downwards, the loss associated with going long or short a stock can be substantial.

Options also allow traders and investors to control more shares than they can control
by buying or selling short a stock directly.  Since options represent lots of 100 shares and cost just a fraction of what many stocks trade for, traders and investors can take a larger position in a stock in anticipation of a move higher or lower by buying options, and can book much larger profits, if the trade works out as expected than they would be able to holding a stock long or short.  Paying less to get into an option trade also frees up investment capital for other uses.

Trading futures based on commodity contracts that represent a variety of commodities
from agricultural products to precious metals is an excellent way to hedge against volatility in the stock market and inflation, and to diversify investments into an asset class that is not directly related to stocks.  Stocks can selloff due to a drop in corporate earnings.  At the same time, commodities can stay flat or even rise, since they are affected by supply and demand forces, not corporate earnings.  Also, commodities often rise in conjunction with inflation, which makes holding commodities a hedge against inflation.

Where To Learn More About Trading Stocks, Futures and Options

Those who wish to trade stocks, futures and options contracts are encouraged to learn as much as possible about buying and selling stocks, futures and options. Options and futures can be a very useful trading tool to protect a trader or investor’s stock positions and to hedge against unexpected market moving events.  To learn more about trading stocks, options, and futures contracts, see the following articles:  Stock Market Basics, Option Trading Basics, and Buying and Selling Futures.

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Consider Buying Coffee Stocks


 

Why Coffee Stocks Stay Strong

coffee stocksEven in a world caught in the throes of recession and economic decline, coffee stocks can provide a safe haven for investors. Many of these stocks continue to experience growth while others wither on the vine. They may not be as exciting as energy or precious metal investments, but coffee stocks, in their own way, represent another commodity that seems to have lasting value.

Even as people cut corners in their budgets and companies try to find ways to reduce overhead, coffee remains in high demand. Apparently, this refreshment is one of the last things that people and businesses will trim from their spending schedules. This is good news for coffee producers and coffee stocks.

Examples of Strong Coffee Stocks

As of July, the Coffee Holding Co. had achieved a return of more than 600 percent YTD. This company had a market cap of just $27 million one year ago, Now its market cap is more than $140 million.

Coffee Roasters Inc. is a coffee stocks from a much larger company, yet it has seen a similar growth pattern. Its market cap one year ago was already more than $3 billion. Since then it has grown to nearly $15 billion.

Peet’s Coffee and Tea is a business somewhere in between the size of these previous two. In the last year, its market cap has grown from about $500 million to nearly $800 million. Its profits last year totaled almost $20 million.

Starbucks is the King Kong of this bunch. Even as big as it already was, this last year was just as kind to Starbucks as it was to the lesser coffee stocks. It grew from a market cap of $18 billion to more than $30 billion. This leader of the coffee stocks has a current YTD return of more than 25 percent.

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The Best Green Energy Stocks: A Greener Investment


Invest in the Best Green Energy Stocks

best green energy stocks

As concerns about the ecological and economical cost of energy consumption grow, many investors are looking for the best green energy stocks. As many countries impose stricter limitations on emissions, many companies are finding it necessary to consider alternative methods of manufacturing and alternative sources of energy. While transitioning from one production model to another has been financially difficult for many companies, green energy itself is becoming one of the largest industries in the world and can be a lucrative investment for investors.

Finding the Best Green Energy Stocks

There are a few approaches you can take to find the best green energy stocks. The first is to invest in the energy production itself. Wind power is one of the easiest green energy sources to produce. A number of major power companies have begun to use wind power for at least part of their electricity production. While solar power has yet to be adopted by any major electrical provider, it is the green power source of choice for most individuals who rely on alternative energy sources in their homes. As both of these technologies continue to grow in popularity, their stock value will continue to increase.

Another tactic you can take to find the best green energy stocks is to look for products that incorporate green technology into their designs. Hybrid vehicles, for example, have continued to grow in popularity. Cities have even started adding hybrid buses to their public transit fleets. Many electronics companies have also started to add power-saving functions to their products. Many of the latest computers, for example, use green processors that save on power and run at a cooler temperature than their traditional counterparts run. By finding the latest applications for green energy, you will be sure to find the best green energy stocks.

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Investing In Ethanol Stocks


The Attraction of Ethanol Stocks

ethanol stocksAs the world seeks to cut dependence on oil as a fuel source, ethanol stocks have received a boost of interest. Some countries, especially the United States and Brazil, have begun to alter their fuel supplies and even their vehicles to accept mixtures of ethanol that reduce the total consumption of gasoline, which is made from petroleum. Many farmers have discovered new ways to make profits as the demand for ethanol has increased. This fuel substitute is generally made from corn or sugar cane.

Naturally, as world interest in this form of alcohol has increased, so has interest in ethanol stocks. However, it is easy to get too excited about ethanol stocks. There is a limit of how much ethanol can be used in gasoline in the United States. Since that limit is pegged at about 10 percent, the use of ethanol will not go up in the US unless gasoline consumption also increases. This is relatively unlikely as Americans begin to buy vehicles with higher fuel efficiency. Brazil does have some vehicles that run entirely on ethanol but this does not look like a trend that will affect the use of ethanol very much. Still, investors realize that ethanol is here to stay and so are ethanol stocks.

Developments That Will Affect Ethanol Stocks

Some developments in technology and ethanol production may affect the price of ethanol stocks. Qteros, a company that George Soros backs, is using microbes to create enzymes that change plant waste to ethanol more efficiently than other methods. In addition, some researchers are trying to create a type of ethanol that could easily mix with gasoline at a 30 percent ratio. This would potentially triple the need for ethanol and have the expected effect on the price of ethanol stocks.

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