Chad's Sharebuilder IRA
1237 views
Rate Now:
average rating: 3.00 / 2 ratings
Created by jchadingram
DESCRIPTION:
Date updated:06-28-2008
10% is a great gain, don't blow it//// Set stops behind 10 to 20% gains to protect profits. Quiting while your ahead is not the same thing as quiting.
Cash flow generation, debt-free balance sheets and a significant and sustainable competitive advantage in the marketplace are some of the reasons great companies stand out from the pack.
What is it that separates companies that thrive for decades from the ones that flounder for years?
The answer may lie in what is referred to as a company's economic moat, a phrase popularized by investing legend Warren Buffett. In this article, we'll introduce you to the concept and explain why it is so important to consider as a long-term investor.
What is an Economic Moat?
Economic moat refers to the character and longevity of a corporation's competitive advantage over similar companies competing in the same industry. If Company A is producing excess profits, competitors B, C and D will soon take note and attempt to enter the industry and do the same. As capital flows into the industry, the new competition will erode their profits, unless Company A has an advantage over its competitors.
An economic moat is a barrier that protects a firm and its profits from competing firms. Just like a medieval castle, the moat serves to protect those inside the fortress and their riches from outsiders. Without a wide economic moat, there is little to prevent competitors from stealing market share and thus profits.
Fast Growers
These companies have little debt, are growing earnings at 20% to 50% a year, and have a stock price-to-earnings ratio below the company's earnings growth rate. Investing in these types of stocks makes sense for investors who want to find solidly financed, fast-growing companies at reasonable prices.
Slow Growers
Here Lynch is looking for companies with high dividend payouts, since dividends are the main reason for investing in slow-growth companies. Among other things, he also requires that such companies have sales in excess of $1 billion, sales that generally are growing faster than inventories, a low yield-adjusted price/earnings-to-growth ratio, and a reasonable debt-to-equity ratio. Investing in these types of stocks makes sense for income-oriented investors.
Stalwarts
Stalwarts have only moderate earnings growth but hold the potential for 30%-to-50% stock price gains over a two-year period if they can be purchased at attractive prices. Characteristics include positive earnings; a debt to equity ratio of .33 or less; sales rates that generally are increasing in line with, or ahead of, inventories; and a low yield-adjusted price/earnings-to-growth ratio. Investing in these types of stocks makes sense for investors who aren't willing to pay up for high-growth companies but still want the chance to enjoy significant capital gains./////PEG ratio results greater than 1 suggest one of the following:
The market's expectation of growth is higher than consensus estimates.
The stock is currently overvalued due to heightened demand for shares.
PEG ratio results of less than 1 suggest one of the following:
Markets are underestimating growth and the stock is undervalued.
Analysts' consensus estimates are currently set too low./////Ignoring trading volume in ETFs can prove costly for investors.!!!
With a ShareBuilder Automatic Investing Plan you can:
• Invest any dollar amount on Tuesdays exclusive online
• Schedule investments on a weekly or monthly basis
• Select from our list of over 6,000 stocks and ETFs
Investments and funding instructions can be edited up to 5:00pm (ET) on the Monday before your purchase. Real-time trade fees apply to all sales/////PEG ratio results greater than 1 suggest one of the following:
The market's expectation of growth is higher than consensus estimates.
The stock is currently overvalued due to heightened demand for shares.
PEG ratio results of less than 1 suggest one of the following:
Markets are underestimating growth and the stock is undervalued.
Analysts' consensus estimates are currently set too low.
-
NM
Navios Maritime - $5.20
- 0.00%
- $N/A
South American Shipping
-
SIRI
Sirius Xm Radio I - $0.631
- -0.63%
- $0.62
Long trade!! Consider Selling after merger news.
-
CHINA
Cdc Corporation - $2.53
- +2.43%
- $2.43
TRADE///// # 2 /////Chinese Internet & software management play. Blizzards will cause higher numbers as gamers are force inside for long periods of time. Keep a close eye out for earnings after Chinese New Year. I think I was too quick to let go of the stock while raising cash. I jumped back in and willl hold till they divest the software company and games division. Got in @ 4.20 and should buy more below $3.90. Consider selling @ $7.75/////CDC CORP. INITIATED AT BUY BY CANTOR FITZGERALD; PRICE TARGET SET AT $6/////CDC Corporation(GAAP) (CHINA.GP) /////Actual EPS for FY End (12/2006): 0.07 /////Current FY High EPS Estimate: -0.07 /////Current FY Low EPS Estimate: -0.14 /////Current FY Consensus Estimate: -0.10 /////Change from Previous Consensus Estimate: 0.00 /////Current P/E Ratio: NA /////P/E Ratio for Next FY: NA /////Current Industry P/E Ratio: NA /////52 Week High Price: NA /////52 Week Low Price: NA
-
GLD
Spdr Gold Shares - $107.43
- +0.42%
- $107.38
streetTracks GOLD Trust!!!!!!!!!!Buy on BIG DIPS!!!!!!!!!!
-
DBN
Wisdomtree Intern - $25.927
- 0.00%
- $N/A
WisdomTree Trust International Basic Materials
-
DEM
Wisdom Tr Em Mkt - $47.55
- 0.00%
- $N/A
WisdomTree Trust Emerging Markets
-
XOMA
Xoma Ltd. - $0.762
- 0.00%
- $N/A
Value Pharma
- Top Professional Portfolios
- 1. Navellier & Associ...
- 2. Fidelity Contrafund - ...
- 3. Argus Management
- 4. Charlie Munger
- 5. Calamos Advisors
- show all
- Top Do-It-Yourself Portfolios
- » Joy
- » tsamanuli Portfolio 1
- » Albo's First Portfolio
- » Fundsonly Portfolio 1
- » rk00005
- show all
- Most Viewed Portfolios
- » Warren Buffett
- » George Soros
- » T. Boone Pickens - BP Cap...
- » Carl Icahn
- » Renaissance Technologies
- show all
This Week's 'Barron's' Roundup
By Roberto Pedone Posted on Nov. 9, 2009 Financial-Services Bull: Barron’s talks with Anton Schutz, portfolio manager at the Burnham Financial Industries Fund (BURFX)...
11.09.09 | 11:01 AM
Rocket Stocks for the Week
By Jonas Elmerraji Posted on Nov. 9, 2009 Last week brought investors a welcome return to gains as the S&P 500 pushed up 3.2% over the course of the last five trading d...
11.09.09 | 08:04 AM
Jim Cramer's Portfolios of the Week
By Roberto Pedone Posted on Nov. 6, 2009 According to Jim Cramer, the bears are tellinginvestors six lies. On Wednesday’s “Mad Money” TV show, Cramer said if you ...
11.06.09 | 15:52 PM
'Fast Money' Portfolios of the Week
more articles
By Roberto Pedone Posted on Nov. 5, 2009 The traders on CNBC’s “Fast Money” told their viewers what they must know after Warren Buffett announced on Tuesday his l...
11.05.09 | 12:05 PM
General market Technical Analysi...
11.14.07 | 22:55 PM From author
ZA
Wealth distribution by race and ...
11.23.08 | 18:44 PM From author
Valerie J
The Presidential/Political Thread
01.02.08 | 08:05 AM From author
Dave Cox
I see
more forums
10.30.09 | 11:56 AM From author
BountifulBeverly
Q.
Can anyone explain the rationale...
11.09.09 | 16:00 PM Asked by
flyers44
A. today was a huge mark up,,we rallyed off
the g20???thisd makes no sence at all .
Q.
Steel....playing catch up now. ...
03.24.09 | 11:34 AM Asked by
dgbkr
A. The only one I own : SLX,
too hard pick a winner out all of them
today 's lists
Biggest % Losers
Here is the stock list of some of the largest % losers from Nov. 2, 2009. more
52-Week Highs
Here are some of the biggest stocks that made the 52-week high list on Nov. 2, 2009. more
Stocks With Unusual Option Activity
Unusually active options can often indicate that a major event in a stock is about to take place, or that unsophisticated investors (using options in lieu of leverage) are ... more
Comments not available