Over 40% of America's largest businesses improve their profitability using outside service providers for their bookkeeping and financial functions. Due to technological advances, this same alternative is now available to small businesses. Firms using the Analytix solution are discovering that moving part or all of their bookkeeping and accounting functions to professional outside providers saves costs while freeing up valuable management time. In addition, Analytix customers have found the additional financial analysis provided with our service invaluable in helping improve their operations and profitability.
Analytix is a premium provider of accounting, bookkeeping and tax preparation services for small, medium sized and fast growing companies. Our clients are served by a professional accounting staff that has a level of expertise not normally found in small businesses. Our aim is to reduce the burden of critical non-core functions, providing the owner valuable time and freedom to focus on enhancing business performance to increase profits.
Visit
www.analytixsolutions.com
bookkeeping-services.analytixsolutions.com
accounting-services.analytixsolutions.com
tax-services.analytixsolutions.com
cfo-services.analytixsolutions.com
Friday, September 28, 2007
Over 40% of America's largest businesses improve their profitability using outside service providers for their bookkeeping and financial functions. Due to technological advances, this same alternative is now available to small businesses. Firms using the Analytix solution are discovering that moving part or all of their bookkeeping and accounting functions to professional outside providers saves costs while freeing up valuable management time. In addition, Analytix customers have found the additional financial analysis provided with our service invaluable in helping improve their operations and profitability.
Analytix is a premium provider of accounting, bookkeeping and tax preparation services for small, medium sized and fast growing companies. Our clients are served by a professional accounting staff that has a level of expertise not normally found in small businesses. Our aim is to reduce the burden of critical non-core functions, providing the owner valuable time and freedom to focus on enhancing business performance to increase profits.
Visit
www.analytixsolutions.com
bookkeeping-services.analytixsolutions.com
accounting-services.analytixsolutions.com
tax-services.analytixsolutions.com
cfo-services.analytixsolutions.com
Analytix is a premium provider of accounting, bookkeeping and tax preparation services for small, medium sized and fast growing companies. Our clients are served by a professional accounting staff that has a level of expertise not normally found in small businesses. Our aim is to reduce the burden of critical non-core functions, providing the owner valuable time and freedom to focus on enhancing business performance to increase profits.
Visit
www.analytixsolutions.com
bookkeeping-services.analytixsolutions.com
accounting-services.analytixsolutions.com
tax-services.analytixsolutions.com
cfo-services.analytixsolutions.com
Wednesday, September 26, 2007
Tuesday, September 25, 2007
Donnelley agrees to buy Business.com
Cary, N.C.-based R.H. Donnelley said the acquisition might delay a dividend, sending the shares down the most in eight years.
Business.com has 100 employees and will have revenue of $50 million this year, R.H. Donnelley said. The search engine serves more than 6,000 business-to-business advertisers.
Jake Winebaum, chief executive of Business.com, will become president of R.H. Donnelley's interactive unit.
R.H. Donnelley also reported second-quarter profit that missed analysts' estimates.
It posted net income of $24.9 million, or 34 cents a share, compared with a year-earlier loss of $79.8 million, or $1.15 a share. Sales climbed 54% to $666.6 million.
Shares of R.H. Donnelley fell $6.41, or 8.8%, to $66.67, the biggest drop since October 1998.
Date created: 06.08.2007
Business.com has 100 employees and will have revenue of $50 million this year, R.H. Donnelley said. The search engine serves more than 6,000 business-to-business advertisers.
Jake Winebaum, chief executive of Business.com, will become president of R.H. Donnelley's interactive unit.
R.H. Donnelley also reported second-quarter profit that missed analysts' estimates.
It posted net income of $24.9 million, or 34 cents a share, compared with a year-earlier loss of $79.8 million, or $1.15 a share. Sales climbed 54% to $666.6 million.
Shares of R.H. Donnelley fell $6.41, or 8.8%, to $66.67, the biggest drop since October 1998.
Date created: 06.08.2007
Monday, September 17, 2007
Analytix Solutions
Analytix business solutions. A premium provider of bookkeeping, accounting and tax preparation services.
http://satwik.jack.googlepages.com/analytixsolutions
Link to this page
http://satwik.jack.googlepages.com/analytixsolutions
Link to this page
Tips and advice for the Business Traveler
The following are the important tips that guide you prepare for an international tour.
* Make a list of the travel documents required well in advance, and get them ready days before your travel. * Plan your budget according to the travel plan. Even if the company takes care of your expenses, you need to make an estimate of the expenses that are likely to come up. You can avoid the confusion in the exchange rates if you get a clear idea of the exchange rates of the country you are traveling to and the amount that you are carrying. Always ensure that you carry sufficient fund, more than what is required. * Lastly, buy travel insurance. This would be a security for you throughout your journey. Make sure that you opt for the important services such as the medical emergencies, lost baggage, missed flights, etc. * Don?t exchange the money at the airport; the currency exchange rates are worse at the airports. Also there are more chances of getting robbed at these notorious places.
Laptop Bags and Carrying Cases for the Mobile Professional - BagsPro.com.
If you found this article informative please visit The Hippest Travel Article Directory on the Net - TravelingHippo.com.
Friday, September 14, 2007
Find out what your business is worth to buyer
Although many formulas and tools can help you determine the selling price for your small business, there is no magical solution that will come up with the correct price for every instance. The final price ultimately depends on how badly the buyer wants to buy and how strongly the seller wants to sell.
Yet there are a number of ways to value your company and determine your asking price. For example, find out the selling prices of similar businesses in your area and use them as a starting point.
Or contact the national trade association for your industry, when applicable. These organizations usually keep detailed statistics and are more than willing to provide information to members or potential members.
You can also hire a professional business appraiser. This may lend more credibility to your initial asking price and allow you to keep the reins on sale-price negotiations.
Common valuation methods include:
-- Market-based valuation. This method is frequently used by business brokers and is based on their past experiences selling similar businesses.
The broker may recommend an asking price based on the sale prices of similar businesses in your area and industry.
Although this is not a comprehensive valuation tool, it is common practice for the sale of small businesses because it is quick, inexpensive and makes sense to buyers.
-- Asset-based valuation. This takes into account figures such as the book value and liquidation value of the business.
These are considered bare minimums in business appraisals and are not generally used as the sole path to an asking price.
-- Earnings-based valuation. This method uses historical financial figures, including debt payments, cash flows (past, present and projected) and revenue.
Earnings-based valuations are often combined with asset-based valuations for a more-inclusive appraisal.
What to put in the selling memorandum
When preparing your business for sale, present the most accurate, up-to-date information for prospective buyers. A selling memorandum is a marketing piece designed to highlight all aspects of your business, including:
-- The products or services you provide
-- How you have fared in the industry
-- Your competition
-- Operational procedures
-- Management
-- Employees
-- Marketing materials
-- History of the business
Notify insurers after the sale
Once you've sold your business, notify your insurers. They will want to know about any liabilities that could arise once you're no longer in business. Don't gloss over the explanation too quickly; you'll want to provide an honest and comprehensive response.
You may need to return the original policy or sign a "policy release" or "lost policy release." But consult with your attorney before signing anything. You also will be responsible for paying any unearned premium.
AllBusiness.com provides information about products and services for entrepreneurs, small businesses and professionals to start, manage, finance and build a business. This article appeared on page C - 4 of the San Francisco Chronicle
Yet there are a number of ways to value your company and determine your asking price. For example, find out the selling prices of similar businesses in your area and use them as a starting point.
Or contact the national trade association for your industry, when applicable. These organizations usually keep detailed statistics and are more than willing to provide information to members or potential members.
You can also hire a professional business appraiser. This may lend more credibility to your initial asking price and allow you to keep the reins on sale-price negotiations.
Common valuation methods include:
-- Market-based valuation. This method is frequently used by business brokers and is based on their past experiences selling similar businesses.
The broker may recommend an asking price based on the sale prices of similar businesses in your area and industry.
Although this is not a comprehensive valuation tool, it is common practice for the sale of small businesses because it is quick, inexpensive and makes sense to buyers.
-- Asset-based valuation. This takes into account figures such as the book value and liquidation value of the business.
These are considered bare minimums in business appraisals and are not generally used as the sole path to an asking price.
-- Earnings-based valuation. This method uses historical financial figures, including debt payments, cash flows (past, present and projected) and revenue.
Earnings-based valuations are often combined with asset-based valuations for a more-inclusive appraisal.
What to put in the selling memorandum
When preparing your business for sale, present the most accurate, up-to-date information for prospective buyers. A selling memorandum is a marketing piece designed to highlight all aspects of your business, including:
-- The products or services you provide
-- How you have fared in the industry
-- Your competition
-- Operational procedures
-- Management
-- Employees
-- Marketing materials
-- History of the business
Notify insurers after the sale
Once you've sold your business, notify your insurers. They will want to know about any liabilities that could arise once you're no longer in business. Don't gloss over the explanation too quickly; you'll want to provide an honest and comprehensive response.
You may need to return the original policy or sign a "policy release" or "lost policy release." But consult with your attorney before signing anything. You also will be responsible for paying any unearned premium.
AllBusiness.com provides information about products and services for entrepreneurs, small businesses and professionals to start, manage, finance and build a business. This article appeared on page C - 4 of the San Francisco Chronicle
PPL finds buyer for operation in Chile
By Sam Kennedy Of The Morning Call
September 13, 2007
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PPL Corp. announced Wednesday that it has found a buyer for its Chilean electricity delivery business, a move that will bring to an end the Allentown energy company's decade-long venture into South America.Compañía General de Electricidad S.A., itself a Chilean company, will pay $660 million for PPL's 95 percent interest in Empresas Emel S.A., PPL said. The transaction is expected to close by mid-November.The delivery business, better known as Emel, is headquartered in Santiago, the capital of Chile, and has 575,000 customers in the central and northern parts of the country.
PPL expects to record a fourth-quarter after-tax gain in the range of $205 million to $225 million, or 53 to 58 cents per share, on the sale.''There was robust interest in the Chilean operations, interest that resulted in the process moving even more quickly than we had anticipated,'' PPL Global President Rick Klingensmith said in a press release.PPL paid a total of $350 million for its 95 percent interest in Emel during a three-year period starting in 1997.The sale of Emel is part of a major restructuring that has defined the early tenure of PPL Chief Executive James Miller, who last year replaced the company's longtime CEO William Hecht. Miller and other PPL officials have said they want to sharpen the company's strategic focus on its core businesses of energy supply and delivery.PPL put its Latin American operations, which also included businesses in El Salvador and Bolivia, on the auction block in March. The company said it wanted to take advantage of ''attractive market valuations'' in the region.That was followed this summer with the sale of PPL Telcom, an Allentown subsidiary that charges businesses and institutions to use its fiber-optic network, and with plans to sell natural gas distribution business PPL Gas Utilities Corp. and propane business Penn Fuel Propane, both of which are also based in Allentown.Buyers for the Latin American properties quickly emerged. The El Salvadoran business was sold in May, and the Bolivian business in July.PPL's pull-out from Latin America is in synch with the actions of other American energy companies that had rushed into the global market in the 1990s, said Paul Patterson, an analyst at Glenrock Associates in New York City.''I think people did find it to be riskier … and more difficult than they expected,'' he said of owning foreign electricity businesses.PPL was no exception. In 2002, PPL walked away from its majority stake in Brazil's CEMAR utility, which two years earlier it had purchased for $289 million. That decision was precipitated by the refusal of regulators to allow a rate hike after a drought triggered a spike in wholesale electricity prices.And in 2004, PPL took a $15 million charge to unload its minority interest in Compañía General de Electricidad, or CGE, a utility with customers in Chile and Argentina. It had paid $142 million for shares of the company in 2000.PPL's investment in the United Kingdom has fared much better. In an address to analysts last week, PPL Chief Financial Officer Paul Farr said the company had every intention of holding onto Western Power Distribution, which serves 2.5 million U.K. customers.In comparison, the three Latin American properties have 1.1 million customers and brought in roughly $43 million last year, or 5 percent of PPL's profit.PPL's recent divestitures give it cash that could be used to expand other operations, a possibility Farr alluded to last week. He told Reuters that the company is looking at several power plants that have come to market in the mid-Atlantic region.PPL, one of the Lehigh Valley's two Fortune 500 companies, also has 1.4 million electricity customers in Pennsylvania. Its supply segment, meanwhile, controls about 11,500 megawatts of power production in the United States.PPL stock gained 46 cents per share, or nearly 1 percent, to close Wednesday at $49.44 in trading on the New York Stock Exchange.sam.kennedy@mcall.com610-820-6517
September 13, 2007
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PPL Corp. announced Wednesday that it has found a buyer for its Chilean electricity delivery business, a move that will bring to an end the Allentown energy company's decade-long venture into South America.Compañía General de Electricidad S.A., itself a Chilean company, will pay $660 million for PPL's 95 percent interest in Empresas Emel S.A., PPL said. The transaction is expected to close by mid-November.The delivery business, better known as Emel, is headquartered in Santiago, the capital of Chile, and has 575,000 customers in the central and northern parts of the country.
PPL expects to record a fourth-quarter after-tax gain in the range of $205 million to $225 million, or 53 to 58 cents per share, on the sale.''There was robust interest in the Chilean operations, interest that resulted in the process moving even more quickly than we had anticipated,'' PPL Global President Rick Klingensmith said in a press release.PPL paid a total of $350 million for its 95 percent interest in Emel during a three-year period starting in 1997.The sale of Emel is part of a major restructuring that has defined the early tenure of PPL Chief Executive James Miller, who last year replaced the company's longtime CEO William Hecht. Miller and other PPL officials have said they want to sharpen the company's strategic focus on its core businesses of energy supply and delivery.PPL put its Latin American operations, which also included businesses in El Salvador and Bolivia, on the auction block in March. The company said it wanted to take advantage of ''attractive market valuations'' in the region.That was followed this summer with the sale of PPL Telcom, an Allentown subsidiary that charges businesses and institutions to use its fiber-optic network, and with plans to sell natural gas distribution business PPL Gas Utilities Corp. and propane business Penn Fuel Propane, both of which are also based in Allentown.Buyers for the Latin American properties quickly emerged. The El Salvadoran business was sold in May, and the Bolivian business in July.PPL's pull-out from Latin America is in synch with the actions of other American energy companies that had rushed into the global market in the 1990s, said Paul Patterson, an analyst at Glenrock Associates in New York City.''I think people did find it to be riskier … and more difficult than they expected,'' he said of owning foreign electricity businesses.PPL was no exception. In 2002, PPL walked away from its majority stake in Brazil's CEMAR utility, which two years earlier it had purchased for $289 million. That decision was precipitated by the refusal of regulators to allow a rate hike after a drought triggered a spike in wholesale electricity prices.And in 2004, PPL took a $15 million charge to unload its minority interest in Compañía General de Electricidad, or CGE, a utility with customers in Chile and Argentina. It had paid $142 million for shares of the company in 2000.PPL's investment in the United Kingdom has fared much better. In an address to analysts last week, PPL Chief Financial Officer Paul Farr said the company had every intention of holding onto Western Power Distribution, which serves 2.5 million U.K. customers.In comparison, the three Latin American properties have 1.1 million customers and brought in roughly $43 million last year, or 5 percent of PPL's profit.PPL's recent divestitures give it cash that could be used to expand other operations, a possibility Farr alluded to last week. He told Reuters that the company is looking at several power plants that have come to market in the mid-Atlantic region.PPL, one of the Lehigh Valley's two Fortune 500 companies, also has 1.4 million electricity customers in Pennsylvania. Its supply segment, meanwhile, controls about 11,500 megawatts of power production in the United States.PPL stock gained 46 cents per share, or nearly 1 percent, to close Wednesday at $49.44 in trading on the New York Stock Exchange.sam.kennedy@mcall.com610-820-6517
A Foreign Buyer for Your Business?
I own a paving company with annual sales under $1 million. Our equipment is valued at just under $200,000, we have very little competition, and we could easily double our revenue with better marketing. After 27 years, I'm ready to sell. Could I get a better price for my company if I attract an international buyer?
—R.M., Salem, N.H.
Generally, companies sell for the value of their tangible assets, plus an intangible factor referred to as "good will," i.e., the longtime relationships, customer service standards, client database, community reputation, and other positive attributes that have made the company successful over the years. Since yours is a bid-based business, it is unlikely to have a significant "good will" value, says John Bates, a business broker with
Bates checked a database of actual selling prices and found, of 215 contractor businesses sold, the average actual selling price was approximately 41% of annual sales. "You only state that your annual sales are less than $1 million, but based on the industry average it would require sales of $500,000 in order for you to recover the cost of your equipment," Bates says. "Another benchmark is that a company's average selling price is 2.01 times its pre-tax, true net profit."
Two Categories of Buyer
That said, however, he notes sometimes business brokers tend to price companies lower than the market will bear. "Get a professional business appraisal and tax advice before you decide to put your company on the market," he suggests. "This will give you peace of mind and an edge to negotiate the best possible price."
In terms of international buyers, the current low value of the dollar on international markets does make some U.S. acquisitions a bargain. "Both local and international buyers would need to assess how your business and local market fit into their strategy," says Sanjyot Dunung, author of Straight Talk About Starting and Growing Your Own Business (McGraw-Hill, 2005).
Just as with domestic buyers, there are basically two categories of international buyers: strategic and financial, he notes. "Strategic buyers—as the name suggests—want to determine if there is a strategic fit with your business, products, market, and distribution," Dunung says. "A financial buyer is more interested in getting a good deal and rolling up or integrating several complementary businesses, often with the intent of selling a combined and more valuable entity. Usually, although not always, strategic buyers will pay more for a business as they often have a value for distribution and sales channels for their products and services. Financial buyers usually focus on the amount of cash flow a business generates and their valuation is based primarily on this factor."
A Good Business Broker
If you are concentrating on strategic buyers, you may want to look at the manufacturers of your supplies and equipment, some of which may be international. A company with an interest in ongoing sales to your company and market may be a potential buyer. You may also want to assess whether you have a sales or distribution channel that would be complementary to a specific type of company.
A (BusinessWeek.com, 7/7/06) will take all these factors into account when helping you decide where and how to market your business.
As you consider which countries may offer potential buyers, take a look at the country's economy, the strength of its currency, and the (BusinessWeek.com, 6/27/07) in that country, Dunung advises.
Other Options: Employees and Competitors
"For example, in the 1990s many people underestimated the potential strength of Chinese and Indian companies and their subsequent appetite for overseas acquisitions, often as a way for them to secure distribution for their goods and services," he says. "However, most international firms are likely to be tough negotiators and hence it's important for you to understand the strength of their currency and local market."
The difficulty for your firm will be finding a foreign buyer that needs a company based in New Hampshire, Bates says. For that reason, don't forget to consider (BusinessWeek.com, 1/8/07) who may be interested in owning their own businesses or competitors who may be interested in acquiring your firm. And certainly don't neglect improving your marketing now, particularly if you feel that could easily improve both revenues and profits. "Selling a business takes time, and while you are in the process, adding value to the business is always worthwhile," Dunung says.
Karen is a Los Angeles-based writer who covers entrepreneurship and small-business issues.
Owens corning to sell plants, looks to buy saint-gobain vetrotex
Owens Corning (Toledo, Ohio) announced in mid-July that it will divest two glass fiber plants in Battice, Belgium, and Birkelend, Norway. The sale addresses regulatory concerns about the company’s previously announced joint venture with Saint-Gobain Vetrotex (Chambery, France and Valley Forge, Pa.). Owens Corning also revealed that it is currently in discussions with Saint-Gobain regarding the potential conversion of the proposed joint venture into an outright acquisition of the Vetrotex business. Should such conversion occur, it is expected that the planned sale of the glass facilities would go forward to address regulatory concerns associated with the acquisition transaction.
For its part, Saint-Gobain confirmed that acquisition discussions are taking place. Saint-Gobain has retained its U.S. reinforcement fiber activities based at Wichita Falls, Texas, which will be sold independently of the entities sold to Owens Corning. Closure of an acquisition, says Saint-Gobain, would be scheduled by year’s end, subject to the agreement of competition authorities in Europe.
For its part, Saint-Gobain confirmed that acquisition discussions are taking place. Saint-Gobain has retained its U.S. reinforcement fiber activities based at Wichita Falls, Texas, which will be sold independently of the entities sold to Owens Corning. Closure of an acquisition, says Saint-Gobain, would be scheduled by year’s end, subject to the agreement of competition authorities in Europe.
Who can sell?
New Sunday rules
Who can sell?
Any business with a liquor license, including bars, liquor stores, restaurants of all sizes, and convenience and grocery stores. Between 110 and 125 additional retail locations will be eligible to apply for a Sunday by-the-drink license. Businesses with licenses to sell packaged liquor will not need a special Sunday license.
What can be sold when?
Distilled spirits and wine by the drink can be sold from 11 a.m. Sunday to 2:30 a.m. Monday. Package sales of those beverages will be allowed 1-9 p.m. Beer, either by the drink or in a package, can be sold from 11 a.m. to 2:30 a.m. Monday.
Who can sell?
Any business with a liquor license, including bars, liquor stores, restaurants of all sizes, and convenience and grocery stores. Between 110 and 125 additional retail locations will be eligible to apply for a Sunday by-the-drink license. Businesses with licenses to sell packaged liquor will not need a special Sunday license.
What can be sold when?
Distilled spirits and wine by the drink can be sold from 11 a.m. Sunday to 2:30 a.m. Monday. Package sales of those beverages will be allowed 1-9 p.m. Beer, either by the drink or in a package, can be sold from 11 a.m. to 2:30 a.m. Monday.
Is It Time to Sell?
Lighten up ... rotate out ... take a little off the table.
Whatever phrase you use, it's "selling," and selling is tricky business. Before you reach for the ripcord, ask yourself:
"What if I had never sold a stock?"Honestly, would you have more money now, or less? I set out to answer that question myself this morning, and to back it up with hard data. Then I chickened out.
I knew the answer. If I had never sold a single share, I would be ... richer than I am today. How much richer? Much richer. I can't give you a precise figure, because I knew that once I saw it for myself, I would scream. How about you?
It gets worse and worse and worseI bought Cisco Systems (Nasdaq: CSCO) on a tip back in March 1990. I dumped it the next year for a quick double. OK, that's not exactly true. In fact, it's a lie. But I'm trying to make a point here.
Think about it: "I sold Cisco in 1991" is a pretty dark secret to have to reveal to another investor -- even if it was for a "quick double." And that's after the stock's plunge from its "tech bubble" peak.
For the record, I didn't flip Oracle (Nasdaq: ORCL) for a quick double, either. But I know how it feels. Pull up an eight-year chart for XTO Energy (NYSE: XTO). You'll see a 45-degree ramp skyward, connecting $3 to the ... top of the freakin' world. OK, only to nearly $60, but still.
You guessed it, I owned XTO for a few months back in 1999. Sold it for a quick double at $6 and change. Now it's in the high $50s. That's what I call the most painful double of my career.
"And what did you do with the cash?"How should I know? I probably bought another stock, but do you think it did as well as XTO? I know I didn't have a better stock in mind when I dumped it. I don't recall buying a house or furnishing one, either. (You'll see in a moment how this is relevant, believe it or not.)
No, I sold my meal ticket to book a nice gain. But what did I really "lock in"? Zip. You never do, unless you pull that money straight out of the market, which is not something you should consider now, especially if you're in your prime investing years.
That's right. I don't think you should try to time the market. A lot of folks claim to do it -- and a few actually seem to pull it off -- but not me. In fact, you might want to brace yourself because I'm going one giant step further than that.
I barely believe in valuationAt least, not when it comes to selling. Sure, stocks get so attractive sometimes you have to buy, for example, when the big banks were priced for bankruptcy in 1990. Citigroup (NYSE: C) got chopped nearly in half in a matter of months. Nutty -- but as a result I ended up with a boatload of Bank of America (NYSE: BAC).
In other words, "value" can work for you when buying. But the math gets dicey when it comes to selling -- especially growth stocks and especially big winners.
How about a funny example?A while back, I asked Motley Fool co-founder Tom Gardner for the one stock I should buy for my IRA. "I love Moody's," Tom replied, "but it's a little pricey at these levels." I bought it that instant. (Moody's is also off its recent highs, but it's still up more than 70% since I bought.)
What was I thinking? It's simple: I'll take a great company over a cheap stock any day. If a smart investor like Tom tells me the stock is "a little pricey," I love it that much more. The fact is, I've met some great stock pickers in my day but not many great sellers. Come to think of it, I've never met a great seller.
Promise me you won't get too cuteYes, Tom Gardner and his team at Hidden Gems have picked two dozen stocks that doubled over the past three years. I'm not surprised. They work hard and stick to the fundamentals. Plus, they're fishing a rich pond. Wall Street isn't snooping around these stocks yet, which creates market inefficiencies and pent-up demand.
So you don't write me off as a Tom Gardner cheerleader, I'll let you in on a secret: I use Tom and his team to lead me to undervalued small caps with big potential. From time to time, Tom will tell us to sell, but I don't usually listen -- and I probably won't in the future. Especially not if it's a winner. I never sell on valuation.
That's how tragedies happenAfter all, market-timers tell you that buy-and-holders like us get wiped out in bear markets. But then you pull up chart after chart of "boring" old stalwarts -- even so-called cyclicals like Alcoa (NYSE: AA) and 3M (NYSE: MMM) -- and what do you see? A gentle slope skyward. So how on Earth did anybody ever lose money on stocks like that? Good question.
Know what else looks like that? The S&P 500 -- aka the market. Granted, when you zoom in, the ride gets bumpier, but the long-term trend is up. So how do you lose money in the market? Well, you either buy at the top in 2000 -- and only at the top in 2000 -- or you get cute and buy and sell along the way.
Consider this approach instead: Sell stocks when you want to buy a house, furniture, or something else you'll pass on to your kids. Sell when you have too much in stocks and you want to buy some bonds, gold, or collectibles. Sell when you have too much of any one stock. But sell a stock only on valuation at your peril.
You don't have to go it aloneOK. Enough preaching. As I said, when you subscribe to a service like Tom Gardner's Hidden Gems, smarter investors than I will tell you when to lock in your gains. But the choice is always yours.
And when Tom and the gang tell you to buy, you'll want to listen. After all, as of today, their recommendations are up 52.1% on average. That's compared with a more "reasonable" 19.6% if you'd bought the S&P 500 instead. Are you earning returns like that?
You could be. If you're not, you should consider a free, 30-day trial to the complete Hidden Gems service right now. This way, you can verify everything I've just told you, and it won't cost you a dime. Whatever you decide, just promise me you won't get too cute.
Whatever phrase you use, it's "selling," and selling is tricky business. Before you reach for the ripcord, ask yourself:
"What if I had never sold a stock?"Honestly, would you have more money now, or less? I set out to answer that question myself this morning, and to back it up with hard data. Then I chickened out.
I knew the answer. If I had never sold a single share, I would be ... richer than I am today. How much richer? Much richer. I can't give you a precise figure, because I knew that once I saw it for myself, I would scream. How about you?
It gets worse and worse and worseI bought Cisco Systems (Nasdaq: CSCO) on a tip back in March 1990. I dumped it the next year for a quick double. OK, that's not exactly true. In fact, it's a lie. But I'm trying to make a point here.
Think about it: "I sold Cisco in 1991" is a pretty dark secret to have to reveal to another investor -- even if it was for a "quick double." And that's after the stock's plunge from its "tech bubble" peak.
For the record, I didn't flip Oracle (Nasdaq: ORCL) for a quick double, either. But I know how it feels. Pull up an eight-year chart for XTO Energy (NYSE: XTO). You'll see a 45-degree ramp skyward, connecting $3 to the ... top of the freakin' world. OK, only to nearly $60, but still.
You guessed it, I owned XTO for a few months back in 1999. Sold it for a quick double at $6 and change. Now it's in the high $50s. That's what I call the most painful double of my career.
"And what did you do with the cash?"How should I know? I probably bought another stock, but do you think it did as well as XTO? I know I didn't have a better stock in mind when I dumped it. I don't recall buying a house or furnishing one, either. (You'll see in a moment how this is relevant, believe it or not.)
No, I sold my meal ticket to book a nice gain. But what did I really "lock in"? Zip. You never do, unless you pull that money straight out of the market, which is not something you should consider now, especially if you're in your prime investing years.
That's right. I don't think you should try to time the market. A lot of folks claim to do it -- and a few actually seem to pull it off -- but not me. In fact, you might want to brace yourself because I'm going one giant step further than that.
I barely believe in valuationAt least, not when it comes to selling. Sure, stocks get so attractive sometimes you have to buy, for example, when the big banks were priced for bankruptcy in 1990. Citigroup (NYSE: C) got chopped nearly in half in a matter of months. Nutty -- but as a result I ended up with a boatload of Bank of America (NYSE: BAC).
In other words, "value" can work for you when buying. But the math gets dicey when it comes to selling -- especially growth stocks and especially big winners.
How about a funny example?A while back, I asked Motley Fool co-founder Tom Gardner for the one stock I should buy for my IRA. "I love Moody's," Tom replied, "but it's a little pricey at these levels." I bought it that instant. (Moody's is also off its recent highs, but it's still up more than 70% since I bought.)
What was I thinking? It's simple: I'll take a great company over a cheap stock any day. If a smart investor like Tom tells me the stock is "a little pricey," I love it that much more. The fact is, I've met some great stock pickers in my day but not many great sellers. Come to think of it, I've never met a great seller.
Promise me you won't get too cuteYes, Tom Gardner and his team at Hidden Gems have picked two dozen stocks that doubled over the past three years. I'm not surprised. They work hard and stick to the fundamentals. Plus, they're fishing a rich pond. Wall Street isn't snooping around these stocks yet, which creates market inefficiencies and pent-up demand.
So you don't write me off as a Tom Gardner cheerleader, I'll let you in on a secret: I use Tom and his team to lead me to undervalued small caps with big potential. From time to time, Tom will tell us to sell, but I don't usually listen -- and I probably won't in the future. Especially not if it's a winner. I never sell on valuation.
That's how tragedies happenAfter all, market-timers tell you that buy-and-holders like us get wiped out in bear markets. But then you pull up chart after chart of "boring" old stalwarts -- even so-called cyclicals like Alcoa (NYSE: AA) and 3M (NYSE: MMM) -- and what do you see? A gentle slope skyward. So how on Earth did anybody ever lose money on stocks like that? Good question.
Know what else looks like that? The S&P 500 -- aka the market. Granted, when you zoom in, the ride gets bumpier, but the long-term trend is up. So how do you lose money in the market? Well, you either buy at the top in 2000 -- and only at the top in 2000 -- or you get cute and buy and sell along the way.
Consider this approach instead: Sell stocks when you want to buy a house, furniture, or something else you'll pass on to your kids. Sell when you have too much in stocks and you want to buy some bonds, gold, or collectibles. Sell when you have too much of any one stock. But sell a stock only on valuation at your peril.
You don't have to go it aloneOK. Enough preaching. As I said, when you subscribe to a service like Tom Gardner's Hidden Gems, smarter investors than I will tell you when to lock in your gains. But the choice is always yours.
And when Tom and the gang tell you to buy, you'll want to listen. After all, as of today, their recommendations are up 52.1% on average. That's compared with a more "reasonable" 19.6% if you'd bought the S&P 500 instead. Are you earning returns like that?
You could be. If you're not, you should consider a free, 30-day trial to the complete Hidden Gems service right now. This way, you can verify everything I've just told you, and it won't cost you a dime. Whatever you decide, just promise me you won't get too cute.
Best-Selling Business Author Bob Prosen to Speak at Texas Tech's Rawls College of Business Chief Executives' Roundtable
Dallas, TX, September 12, 2007 – Best-selling author and management consultant Bob Prosen will be the featured keynote speaker at the prestigious University of Texas Tech's Rawls College of Business Chief Executives Roundtable on September 13th.“I'm very thrilled to be the keynote for this wonderful Texas Tech event,” says Prosen.Previous speakers include George Stephanopoulos and Brad Anderson, CEO of Best Buy.Bob Prosen’s award-winning business best-seller “Kiss Theory Good Bye” replaces management theory with battle proven tools and tactics MBAs can use immediately to rapidly improve bottom line results in any company. Prosen's outstanding management book, Kiss Theory Good Bye, is a Book of the Year award winner, IPPY Silver award winner and was named Best Business Management Book by Best Book Awards 2006. Bob Prosen spent 25 years as an executive with top global companies including AT&T, Sprint, Hitachi, NCR and Sabre. More of Bob's tips and tools can be found on his web site – www.bobprosen.com.If your audience is interested in fresh, unfiltered discussion about what it takes to be a top performer at work and have a balanced personal life, contact Nettie Hartsock, Media Director – nettie@nettiehartsock.com or phone 512-396-1067 to schedule an interview. "Most management/leadership books I read are confusingly complex and deliver no actionable information. Bob's book is the exception. It lays out a nuts-and-bolts map for successful execution in any business." — KEN MAY, President and Chief Executive Officer, FedEx Kinko's “There have been many books on business leadership. However, Prosen takes the intangible and dissects it into a very precise recipe for success. I really enjoyed the comprehensive and no nonsense approach and, in fact, would make a great MBA text.” - PETER THONIS, Senior Vice President, Verizon###
(nettie@nettiehartsock.com) Media Director Kiss Theory Goodbye 813 King Ban Drive Lewisville, TX 75056 Phone : 512-396-1067
(nettie@nettiehartsock.com) Media Director Kiss Theory Goodbye 813 King Ban Drive Lewisville, TX 75056 Phone : 512-396-1067
Buying online 'to grow in popularity'
The internet is to continue to grow in popularity as the avenue of choice for new purchases, it has been claimed.
According to JupiterResearch, retailers are likely to see online activity as a good way of reducing their cost margins.
Small businesses are predicted to welcome the wider variety of goods and lower prices made possible through internet sales.
However, the insight service suggests that manufacturers are the most probable source of any future resistance to the uptake of greater internet-based commerce.
David Schatsky, president of JupiterResearch, notes that more than four-fifths (82 per cent) of small business decision makers "research products or services for their business online monthly or more frequently".
"Companies should therefore make driving and tracking the influence of online on offline sales an important part of their strategy," he adds.
In a recent interview with E-consultancy, Martin Newman, head of e-commerce at fashion retailer Ted Baker, stressed the benefits of online advertising in driving real-world footfall to stores.
According to JupiterResearch, retailers are likely to see online activity as a good way of reducing their cost margins.
Small businesses are predicted to welcome the wider variety of goods and lower prices made possible through internet sales.
However, the insight service suggests that manufacturers are the most probable source of any future resistance to the uptake of greater internet-based commerce.
David Schatsky, president of JupiterResearch, notes that more than four-fifths (82 per cent) of small business decision makers "research products or services for their business online monthly or more frequently".
"Companies should therefore make driving and tracking the influence of online on offline sales an important part of their strategy," he adds.
In a recent interview with E-consultancy, Martin Newman, head of e-commerce at fashion retailer Ted Baker, stressed the benefits of online advertising in driving real-world footfall to stores.
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