This page is prepared essentially for those with an interest in the fundamental evaluation and analyzation of common stocks. The interested will probably be a DIY (Do it Yourself) and the writer would suggest that the DYS have some experience dealing with stockbrokers and/or mutual funds and have some knowledge as to what they can do and not do. A good stockbroker is difficult to find meaning one that puts your interest first and not his/her interest first, his/her employer second and the DIY last.
The writer has found that the discount broker Charles Schwab to be a very satisfactory arrangement in that stocks can be purchased or sold with a few strokes of the keyboard and in addition the cash account can be linked to most banks in order to transfer funds easily. Be advised, that there are now brokers offering stock free trades, one being Bank of America. However Charles Schwab is relatively inexpensive as outlined below and with the other services offered, the modest fees are worth it. The writer generally trades in blocks of 1000 shares at a cost of a very reasonable $9.95, the last time a full service broker was used this transaction would have cost $175.00, some of the larger brokers would have charged $275.00. Further, and depending on the type of account, Schwab provides various research report free of charge such as S&P, Argus and others. Schwab can be found as listed in the box or at www.Schwab.com. Another advantage is there would be no salesman calling attempting to sell unwanted products.
There ae various tools for such valuations as listed above, one being STOCK ANALYST purchasd from NAIC (National Association of Individual Investors), address as listed in the box below. There are others however SA is the writers favorite and as far as these programs go, it is relatively inexpensive, about $99.00 for members as of this writing. One feature among many others is that a stock can be updated in all aspects each quarter or annually by wireless internet in a few seconds. Like most of these programs, the growth rate of various functions is projected four or five years hence thus giving buy, hold and sell recommendations. This is somewhat mechanical and does not take into account changing economic conditions, company prospects and hidden intrinsic values. An example of the latter would be the purchase of Sears by Kmart on the basis that the real estate owned by Sears was not properly reflected in the stock.
Therefore, Sears was purchased at a premium over market. In regards to the above the reader should not bet the farm on the buy, hold and sell recommendations.
t
|
