Spamdex - Spam Archive

Report spam

Send in your spam and get the offenders listed

Create a rule in outlook or simply forward the spam you receive to

Also in

PowerTrend Bulletin: Part 4 -- 10 Questions You Have to Answer Before You Buy Any Stock

If you are on a mobile device or cannot view the images in this message view this email in your web browser.
To ensure future delivery please add to your address book or contacts.

Versace PowerTrend Bulletin | PowerTrend Bulletin | Growth & Dividend Report | PowerTrader
Part 4 -- 10 Questions You Have to Answer Before You Buy Any Stock

New Resource for Dividend Lovers
Get the best dividend screening tools on the web! Go to now and utilize the tools to locate our Dividend AllStars, use the Dividend Calendar to find out when you’ll get paid on your investments, track your own portfolio, receive email alerts when a company announces a dividend, raises a dividend or cuts a dividend! Too many tools to list here, so go to the site and explore it yourself.

Discover the best dividend screening tools and stock data available by going to now!

Click Here Now!

So far in this series, I have shared the first seven of 10 questions that you should answer before you decide whether or not to buy a share of stock in a particular company. The gist of these 10 questions is to help you understand the company you are investing in and items to pay attention to when sizing up what’s on the horizon, both good and bad. After all, how do you know how to gauge a company’s business and the competitive landscape if you don’t have a firm understanding of what the company does and how it makes money for itself and its shareholders? These are some of the tools I use each time I look at a new opportunity that I may share with subscribers to my Growth & Dividend Report newsletter.

If you missed that guidance, I encourage you to check out my previous columns: part 1, part 2 and part 3. These tackle the first seven questions:
  1. What does the company do?
  2. What are its key products or services?
  3. At what business unit or units does the company make most of its profits?
  4. Who are the key competitors and how are they impacting the market?
  5. What is driving growth at the company?
  6. What is driving the company’s profit picture and, if it’s not improving, why is that?
  7. What does the company’s balance sheet look like?
If you haven’t reviewed those questions yet, and maybe even if you have, you may want to do so, because the next three questions build on the previous answers. With that said, let’s tackle the next question; it’s one I get all the time when I speak at conferences and other events:

8. What valuation metrics are key?

This is a fantastic question and it moves us from thinking about the business of the company we’re thinking of investing in to the shares. Subscribers to my Growth & Dividend Report invest in companies that are benefitting from PowerTrend tailwinds, and I use that same strategy for the Thematic Growth Portfolio I manage at Fabian Wealth Strategies -- but to do so, we must buy their shares at the right time.

Make $4 for Every iPhone 6 Sold
Over the next 5 years, 75 billion new devices will connect to the Internet. I’m not talking about just computers or tablets, but smartphones, cars, appliances and more. This connection between nearly everything in our lives will create a “Second Information Superhighway”… along with an investment opportunity that could mean early retirement for those who act now.

You see, a very large number of these new devices will only make it to market by paying one company a handsome toll. Click here now to discover the name of the company that’s set to potentially score 10 times Cisco’s 1995 profits of 3,008%!

Click Here Now!

If you buy them too late, you may have missed most, if not all, of the upside to be had in the shares. While it’s a bit trite, the old Wall Street adage of “Buy low, sell high” does ring true, but how do you know what is “low?”

All of this speaks to one of the most important toolkits an investor, either individual or professional, has to have. With a variety of valuation tools at your disposal, you can be prepared like Batman confronting one of his various villains: the Dark Knight has to know which tool to grab from his utility belt to thwart whatever mayhem is before him. The same goes for us; granted, we’re not facing off against the Joker, Penguin or Catwoman.

There is no shortage of valuation tools, and odds are you’re rather familiar with some of the more common ones, like the price to earnings (P/E) ratio or dividend yield. What some may not be familiar with are some of the variations. Just as you can exercise with variations of the standard push-up, there is the basic P/E form that we all know, but we can scrutinize these P/Es on a historical basis, compare them to the industry peers that we identified with Question 4 (peer valuation) and even compare them against multiples for the S&P 500 (better known as the relative P/E). The same tweaks hold true for using dividend yields.

Of course, not all companies pay dividends, and there are more than a few that do not generate earnings. In situations like these, we turn to other valuation metrics, such as enterprise value (EV) to revenue or EV to earnings before interest, tax, depreciation and amortization (EBITDA) and price to book value. As with P/E ratios and dividend yields, these metrics can be scrutinized on a historical, peer and relative basis, as well.

While not overly difficult, it can be taxing to pull all of the various pieces of information together, but I find doing so really helps me understand the company and how it stacks up against its competitors. As you start to roll up your sleeves and do your homework on both the company and the stock, my recommendation is to build a valuation framework that include some combination of historical, forward-looking, peer and relative metrics mentioned above.

A Way To Dramatically Boost Your Income
This strategy delivers total annual dividend yields as high as 21.3%. And it does this without taking big risks on your money.

Go here to learn more -- but do act quickly... the next round of high-yield payouts are getting mailed out within a matter of weeks.

Click Here Now!

Personally, I like to go two steps further with this part of my analysis. First, I like to triangulate the upside by using several valuation tools to hone in on a price target. If three metrics zero in on the same price, or thereabouts, I have a lot of confidence in that target. If, however, those tools kick out three different and varying price targets, then I have far less confidence in any one of those figures.

Second, most investors, I have found, focus on the upside, while too few consider the downside, which is how low the shares may go. I look at that to assess what my net upside (upside less the downside) is likely to be. To get interested in a stock, I generally like to see net upside of 20%. That could take the form of up 30% with 10% downside, up 25% with 5% downside or a different permutation.

I realize that is a rather down and dirty view on valuation tools, and whole books have been written on them. I’ll be discussing these further in upcoming issues of PowerTrend Bulletin.

That leaves us with two remaining questions of my 10 Questions You Have to Answer Before You Buy Any Stock. We’ll tackle them in the next week’s edition.

In case you missed it, I encourage you to read my e-letter column from last week, which expanded upon the seventh question on our list of 10 questions to answer before you buy any stock. I also invite you to comment in the space provided below my Eagle Daily Investor commentary.

Upcoming Appearances
  • Each Monday, I join Sonoma County’s Morning News with Melanie Morgan’s “Big Story” of the week to talk about the latest in the economy, stock market and more.
  • Each Friday, I join Matt Ray, the host of America’s Morning News, to talk about the latest on the economy, stock market and more. With the show broadcast in more than 170 markets, be sure to tune in.
  • Each Friday, I join Sam Sorbo, host of The Sam Sorbo Show, to share my latest thoughts and insights on stock market, economy and more. You can listen to our conversation here.
Christopher Versace
Editor, Growth & Dividend Report
Editor, PowerTrader
Editor, PowerOptions Trader
Follow Me on Twitter
  |  Like Me on Facebook
To ensure future delivery of Eagle Financial Publication's emails please add the domain to your address book or contact list.

This email was sent to because you are subscribed to the Chris Versace's PowerTrend Bulletin List. To unsubscribe or update your delivery preferences, please click here.

If you have questions, please send them to Customer Service.

Eagle Financial Publications - Eagle Products, LLC. - a Caron Broadcasting Company
300 New Jersey Ave. NW, Suite 500 | Washington, D.C. 20001

© 2015 Eagle Financial Publications. All rights reserved.


All titles, content, publisher names, trademarks, artwork, and associated imagery are trademarks and/or copyright material of their respective owners. All rights reserved. The Spam Archive website contains material for general information purposes only. It has been written for the purpose of providing information and historical reference containing in the main instances of business or commercial spam.

Many of the messages in Spamdex's archive contain forged headers in one form or another. The fact that an email claims to have come from one email address or another does not mean it actually originated at that address! Please use spamdex responsibly.

Yes YOU! Get INVOLVED - Send in your spam and report offenders

Create a rule in outlook or simply forward the junk email you receive to | See contributors

Google + Spam 2010- 2017 Spamdex - The Spam Archive for the internet. unsolicited electric messages (spam) archived for posterity. Link to us and help promote Spamdex as a means of forcing Spammers to re-think the amount of spam they send us.

The Spam Archive - Chronicling spam emails into readable web records index for all time

Please contact us with any comments or questions at Spam Archive is a non-profit library of thousands of spam email messages sent to a single email address. A number of far-sighted people have been saving all their spam and have put it online. This is a valuable resource for anyone writing Bayesian filters. The Spam Archive is building a digital library of Internet spam. Your use of the Archive is subject to the Archive's Terms of Use. All emails viewed are copyright of the respected companies or corporations. Thanks to Benedict Sykes for assisting with tech problems and Google Indexing, ta Ben.

Our inspiration is the "Internet Archive" USA. "Libraries exist to preserve society's cultural artefacts and to provide access to them. If libraries are to continue to foster education and scholarship in this era of digital technology, it's essential for them to extend those functions into the digital world." This is our library of unsolicited emails from around the world. See Spamdex is in no way associated though. Supporters and members of Helping rid the internet of spam, one email at a time. Working with Inernet Aware to improve user knowlegde on keeping safe online. Many thanks to all our supporters including Vanilla Circus for providing SEO advice and other content syndication help | Link to us | Terms | Privacy | Cookies | Complaints | Copyright | Spam emails / ICO | Spam images | Sitemap | All hosting and cloud migration by Cloudworks.

Important: Users take note, this is Spamdex - The Spam Archive for the internet. Some of the pages indexed could contain offensive language or contain fraudulent offers. If an offer looks too good to be true it probably is! Please tread, carefully, all of the links should be fine. Clicking I agree means you agree to our terms and conditions. We cannot be held responsible etc etc.

The Spam Archive - Chronicling spam emails into readable web records

The Glass House | London | SW19 8AE |
Spamdex is a digital archive of unsolicited electronic mail 4.9 out of 5 based on reviews
Spamdex - The Spam Archive Located in London, SW19 8AE. Phone: 08000 0514541.