Short Selling – Considering Risk and Reward Before Selling Short

I’ve noted from reading investment blogs and Yahoo Message board posts that there seems to be a great deal of interest in short selling. Maybe it is the general mood about the economy. Maybe some folks first tried short selling during the big slide in 2008 and found that they could do no wrong. (It is said that every buyer is a genius in a Bull Market. In a Bear Market, every short seller is a genius.) Maybe there have always been a lot of people dabbling in short selling and the blogs and message boards have just created better venues for them to advertise their adventures.

What has disturbed me, however, is some of the types of short positions that people are taking. While at first blush short selling seems no different from going long, there are some important differences that must be understood.

First of all in buying long, time is on your side. Because the general direction of stocks is up (because the economy is always growing), one can usually just wait out bad spells in the economy. If your stocks are all falling, the best thing to do is to just stop looking at them for a while. Usually you’ll be happier the next time you look (and not just because they’ve done a reverse 10 for 1 split). This is doubly true if you select stocks that have good long-term growth characteristics such as steady earnings growth. In short selling, time is against you. If you are wrong about a stock, because the markets tend to go up, your loses will normally continue to grow the longer you wait to close the position.

The second difference is that when you buy a dud, the size of the position becomes smaller relative to the size of your overall portfolio. If you’d bought Microsoft in the early 80’s and five other stocks that no longer exist, you’d probably have forgotten all about the other losers by now and be living on an island somewhere. What if you’d thought Bill Gates was full of hype, however, and shorted Microsoft? Even though the other five also went to zero, your Microsoft position would have grown to gargantuan size. You would have needed to work five jobs just to keep funneling enough cash into your account to avoid a margin call. There is no such thing as a limit to your losses when you sell short.

Given these traits, it is important to consider risk and reward when contemplating a short sale. While that stock that has fallen into the penny range from the teens may be likely to disappear completely, with 10,000 shares you might only make $5000 when it does so. If you are wrong and a venture firm decides to buy the company and offers $3.00 per share, you stand to lose $25,000. If the stock recovers and goes into the teens, you could lose hundreds of thousands of dollars. The potential reward is not worth the risk taken.

So, before taking a short position, consider the potential reward (how much can you make if the stock drops by 50%, and how likely is that to happen) and the risk (how likely is it for this stock to move upwards, and how much could it move if it does so). Look for stocks that are already so overvalued that it is very unlikely that they could go much higher. Find stocks with lots of cheerleaders and high PE ratios. If everyone likes the stock, they have already bought in and it will be difficult for them to push the price higher. It also helps if the market in general is nearing a peak, since when the whole market is falling every stock is a dog.

Immobilienmakler Heidelberg

Makler Heidelberg

Schnell, zuverlässig und kompetent


Source by Joe R S

Foreclosure Dogs Need Your Help

The saying, adopt a dog, save a life has never embodied a more urgent a plea. Across the fruited plain, in cities, towns and hamlets, upscale, downscale and no scale communities, dogs are being abandoned and too often forgotten. Confused and frightened, dogs and puppies are simply left alone without food or water in foreclosed homes. Others are dropped off on lonely roads, in parks and woodlands. The lucky ones have been given to new homes and families, to dog rescues or no kill dog shelters for later adoption.

Revealing just how the severe the crisis is, Sharon L. Peters of USA Today writes, ” They’re arriving by the thousands every month, homeless, hapless victims of foreclosure…are landing in…(dog) shelters in large numbers in some parts of the country.

And this is not an isolated occurrence “We’re seeing more and more cases of people leaving their homes and dropping the dog off at the shelter and…. in the local park,” says Michael Mountain, president of Best Friends Animal Society. “Sometimes they even just tie the dog up outside and drive off.”

Eileen Drennen of The Atlanta Journal-Constitution brought it all home in with an actual case history “One abandoned dog Lt. Mary Lou Respess can’t get out of her mind is a Chihuahua. He’d been tied up so long, said the Gwinnett County Animal Shelter manager, his collar had gotten embedded in his skin and had to be surgically removed. He’s one of hundreds whose owners have left them behind.

Small enough to fit in a shoe box, this Chihuahua’s guardians saw fit to abuse and desert their tiny dog.

While we are sympathetic to the plight of folks who are suffering as a result of the economic and mortgage meltdown we have zero tolerance for cruelty and neglect as demonstrated here.

And this abject cruelty and neglect extends across dog breeds and sizes as well.

In Stockton, California, Evelyn Nieves of the Associated Press wrote, “The house was ravaged by owners who trashed their home before a bank foreclosed on it. Hidden in the wreckage was an abandoned member of the family: a starving pit bull.

The dog found by workers was too far gone to save …”

So what can be done?

Here’s a few suggestions:

– The ASPCA suggests that you try to find someone to foster or adopt your dog. Check with your family, neighbors, friends, and coworkers.

– Make the effort to find a no-kill shelter. It’s extra work but it is your responsibility. There is no excuse for taking the easy way out when your dog’s life is at stake.

– Contact local dog rescue organizations to see if they can help you find a home.

– Advertise your adoptable dog in a dog-specific classified ad listing. Screen potential adopters carefully. Rescue groups can help you with a set of questions such as: where the dog will live and what would be a reason for them to get rid of a dog . Do not advertise “free dog” in your ad as there are unscrupulous people who will take free dogs with little regard for their well being and some have even sold family pets to animal testing labs.

– Contact your veterinarian. He/she may also be able to find a new home or temporary guardian for your dog. Never drop your dog off in a crate or box on the veterinarian’s doorstep as this can be unsafe. He might escape or suffer from a lack of water or temperature fluctuation before help arrives.

– Contact your local animal shelter or animal control facility to see whether it will accept your dog and assist in finding it a new home .

– Support legislation in your area:

California, one the of states hit hardest by the sub-mortgage meltdown is considering Assembly Bill 2949, which would allow bank representatives to immediately seek potentially life-saving help for animals abandoned at foreclosed properties. The bill is supported by the ASPCA and the California Animal Association.

It is never OK to leave the family pet to fend for himself. There are options and we should all be compassionately vigilant to help educate those facing economic hardship that will tear them from their home and split up their family. Many people will welcome the help at a time when they simply don’t know where to turn or what to do.

Others, sadly, will not be responsive to help and will continue to take the easy way out by abandoning their dogs. That’s where all of us have a responsibility to work within our own communities, with dog rescues, veterinarians and dog shelters to help re-home man’s best friend, when his family, in an act of inexcusable cruelty, forecloses on his love and loyalty and he is left behind.

Immobilienmakler Heidelberg

Makler Heidelberg

Schnell, zuverlässig und kompetent


Source by M. Bruno

Marketing Your Home Care Business With Your Own Book

In the past, writing your own book has been considered a time consuming and expensive process. Self-publishing is a wonderful way to get your book on the market, but how? Most business owners have no idea where to start or how to proceed. Now there are many options that make the process easy and inexpensive. Having a book “ghostwritten” for you is a very viable option, keeps the “hassle factor” minimal, and gets your book in your hands much faster than doing it yourself. Ghostwritten books of all genres have become very popular. But the typical cost to have a book ghostwritten by a proven writer is somewhere between $30,000 – $50,000 on average. Dan Rather, William Shatner, Hillary Clinton, Lee Iacocca – and so many more famous people- had books ghostwritten for them – and they became best-sellers!

Having your own book opens many doors:

  • Imagine the attention you will get in your community as you become the “go-to expert” for your elder care or senior service business.
  • Speak to more groups.
  • Turn more leads into client
  • Gain the trust of more referral sources.
  • Enjoy “the instant credibility factor”.

Today there is a “low cost” way to have your own book, and enjoy the credibility and trust that comes with being an author.

Keith Ferrazzi from Fast Company comments on the power of being a published author- for you and your business: While following these steps, I guarantee you’ll begin to see your personal and organizational cachet grow in the marketplace. And if you complete step five (writing a book) and have that book in hand, you’ll enter a club I never knew existed before I was a published author. Because being a thought leader does take hard work, people have tremendous respect for those who have taken it to the final stage. And they put their money where their mouth is….

Wall Street Journal, Career Journal Build Your Own Brand To Rev Up Your Career William Arruda says: “Whether you’re a sole proprietor, president of a small business or a large-company manager, you must differentiate yourself to succeed. This requires understanding, building and communicating your unique personal brand.”

In response to this need, companies like LTC Expert Publications developed a 130-page book for elder care and senior service providers called: “The Senior Solution: Secrets to Maintaining Independence and Choice for Life.” This exceptional book, ghostwritten by Valerie VanBooven RN BSN, has customizable portions throughout. Except for completing the template for the customized chapters and book cover, all the work is done for the business owner. Within 30-60 days, they become an author of a great book.

Imagine this conversation: “Hello, Melissa. My name is Jim Brown and I’m the author of the book “The Senior Solution: Secrets to Maintaining Independence and Choice for Life.”

Maybe you’ve read it. It’s a great book on the subject of elder care. I understand that you are the program chairperson of the local Women’s Business Owners Association and I just wanted you to know that I’m available to speak to your group at an upcoming monthly meeting. And, I’ll be glad to give away one of my books after my speech. I know your membership will appre­ciate the information because it’s one of the hottest topics today.” Imagine Melissa’s response – “I’d LOVE to have you speak to our group!” If you’ve ever been a program chairperson for a civic club you know that you are ALWAYS looking for credible speakers. With the LTC Expert Authoring Program YOU can now be the credible speaker in demand in your community.

Or, imagine this conversation:

“Hello Ms. Shields. My name is Mary Peters and I’m calling about your inquiry over the internet about our services. May I ask you a few questions? I’d like to stop by to drop off our information. I just completed my new book, “The Senior Solution: Secrets to Maintaining Independence and Choice for Life.” and I’d love to provide you with your own copy! Imagine Ms. Shields response – “I’d LOVE to have a copy of your book!” Anyone in the senior service or elder care business knows how much a caregiver appreciates any additional information they can get their hands on in a time of need. Can you imagine Ms. Shields hiring any other service BUT yours? She’d be crazy to do business with anyone else. After all, you wrote the book on elder care and senior services!

Immobilienmakler Heidelberg

Makler Heidelberg

Schnell, zuverlässig und kompetent


Source by Valerie VanBooven

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close