Wednesday, May 13, 2009

SAVE MONEY (AND MAKE BIG MONEY) WITH FREE INVESTMENT HELP PART 2

Since no one wants your money to increase faster than you do, why not take responsibility of your own future and educate yourself on investing?
Small Stockholders Can Profit Even if you don't own a great deal of stock in a company, you can occasionally make a 10 percent profit from them. Once in a while, a company offers to buy the stock of its small investors at a 10 percent profit just to save money on having to serve small stockholders. If you are offered such a deal, study the market, see where the stock is going, and then perhaps take the premium and roll it over into another kind of stock.
The nice thing about this kind of transaction is you can deal directly with the company, instead of paying an extra fee to your stockbroker for transacting the business.
Become Your Own Securities Analyst
You don't have to be a big-time investor to do the same kind of investigating top security analysts do. A security analyst gleans information from the financial statements of major companies around the world. As a smaller, individual stockholder, there is nothing to keep you from taking advantage of this source of public information.
Some of the important information located on financial statements include:

* Deviations and inconsistencies look for any areas where the company broke away from trends or otherwise acted unusual.
Especially compare the information presented in stockholders reports with the material filed with the Securities and
Exchange Commission (SEC). These sources might be able to show you places where taxes were deferred, depletion allowances, and different tax credits.

* Inventory figures these figures are the company's heart and soul. They can tell you whether the raw materials on hand match the finished products being shipped out, and whether work in progress is keeping up with production.

* Accounts receivable these can show you a company's policy on handling allowances for doubtful accounts. If the ratio to receivables is down, the company is manufacturing false earnings. If it is up, they might be heading into trouble. An accounts receivable can also let you compare this year's receivables' activity to previous years.

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