I Love the Smell of Profits in the Morning

Why One Brokerage Account Will Cost You

2008-05-21T14:24:00.000-07:00

All brokerage accounts have there pro's and cons. Some charge higher in commissions when trading stocks and have lower commissions when trading mutual funds. Some brokerages accounts don't charge you for the first X number of trades but charge a premium for mutual funds.

My question to you is, "Why stick with one broker's pro's and con's when you can stick with broker "A" for the pro's (where they meets your needs for requirement "A" and go elsewhere for requirement "B") and use broker "B" for the pro's where they meet your needs for requirement "B"?"

My personal recommendation: Schwab + Zecco. Schwab allows you the ability to trade mutual funds with absolutely no commissions. They offer you a high yield checking account which is linked to your brokerage account. They reimburse any ATM fee's which you acquire through out the month and you have free checks for month. Your money is always working for you. The have "moneylink" access so you can transfer money in and out of your Schwab account to virtually any other financial institution. Deposit your money in Washington Mutual or Bank of America and consolidate it to your Schwab account and have your money working for you in your high yield checking. They have excellent customer service! Schwab's faults? Their commission fee's. $12.95.

Zecco, as long as you maintain an account balance of $2,500, gives you 10 free trades every month. Following the 10 free trades, each trade is only $4.50. This makes hitting your commission spread much less intimidation if you decide to pull out. They charge a hansom sum for mutual fund transactions. A nice future of Zecco, they allow you to view other traders portfolios who give consent. It help the beginning to intermediate investor expand there understanding of the market and what others are doing and why.

Conclusion: A hybrid of brokerage accounts will always be in your best interest. Schwab and Zecco are what i feel make the best combination. Make sure these brokerage accounts of a "moneylink" option so funds can be transfered quickly and easily between accounts.

Always invest wisely, always verify secondary research.

Get TAN... in your portfolio and later on the beach

2008-05-14T11:37:00.000-07:00

Solar energy is as hot as the sun, with high energy prices and strong demand from rapidly growing economies outstripping oil supplies Too much sun, not enough green. The solar sector of '08 is going to be a lucrative wave which will be very comparable to the the tech sector of the '90's.

TAN is a Global Solar Equity Index which i cannot boast enough about. There is no portfolio with which this ETF does not belong.

The fund really is global: China is the largest country represented in the fund, at 29.91%, followed by Germany at 29.01% and the U.S. at 26.33%. Still, ex-U.S., TAN invests in only five countries.

The methodology for index construction is to select from companies that "specialize in providing solar energy products and services," subject them to common liquidity screens and then weight them by market capitalization (actually a modified market-cap weighting so that no one company has too great a weighting).

The fund has a weighted average market cap of $5.8 billion, a P/E of 44, 25 holdings and a cap on the expense ratio of 0.65%.

Tan Holdings:

FIRST SOLAR INC 8.85 %
RENEWABLE ENERGY CORP AS 7.72 %
Q-CELLS AG 6.52 %
SUNTECH POWER HOLDINGS ADR 5.91 %
SOLARWORLD AG 5.42 %
JA SOLAR HOLDINGS CO LTD 5.21 %
LDK SOLAR CO LTD-ADR 4.80 %
SUNPOWER CORP-A 4.72 %
YINGLI GREEN ENERGY - ADR 4.60 %
MEMC ELECTRONIC MATERIALS INC 4.58 %
SOLARIA ENERGIA Y MEDIO AMBIENTE SA 3.75 %
TRINA SOLAR LTD-SPON ADR 3.35 %
EVERGREEN SOLAR INC 3.31 %
CENTROTHERM PHOTOVOLTAICS 3.30 %
ENERGY CONVERSION DEVICES 3.13 %
ERSOL SOLAR ENERGY AG 3.11 %
SOLARFUN POWER HOLDINGS CO 3.08 %
CANADIAN SOLAR INC 2.92 %
SOLON AG FUER SOLARTECHNIK 2.84 %
MEYER BURGER TECHNOLOGY AG 2.55 %
CONERGY AG 2.41 %
ROTH & RAU AG 2.14 %
MANZ AUTOMATION AG 2.07 %
CHINA SUNERGY CO LTD 2.02 %
EMCORE CORP 1.70 %
EURO 0.00 %
SWISS FRANC 0.00 %

Risks associated with solar energy
Oil prices and government intervention play large roles in the fortunes of solar energy companies. When oil prices fall, interest in solar energy is likely to drop off, as even at current high prices, petroleum-based energy is less expensive than solar.

However, a positive political environment for solar energy means favorable policies and subsidies are in place in a number of countries. Unfortunately, those government subsidies can fade with the vagaries of politics, and that could leave solar in the dark.

In addition, many solar stocks have already made huge gains in recent years. The question remains whether these companies can sustain growth long enough to justify their pricey valuations.

Compliments TheStreets, Fool

Arbatarge: How the Smartest Guy in the Room Gets Rich

2008-05-12T13:30:00.000-07:00

Below are the current M&A spreads. I heavily suggest you take advantage of these spreads.

Countrywide Financial Corp. (CFC), Bank of America (BAC)
Premium offered: $2.03 or 42.9%
Acquirer: BAC
Target: CFC
Shares offered per share: 0.1822 share
Value of offer per share: $6.75
Value of outstanding common equity: $3,903,356,963
Acquirer share price: $37.02
Target share price: $4.72
Expected closing: Third quarter 8/15/2008
Annualized gain: N/A

Clear Channel Communications Inc. (CCU), Thomas H. Lee Partners LP/Bain Capital Group
Premium offered: $9.31 or 31.15%
Acquirer: Lee/Bain Group
Target: CCU
Offer per share: $39.20 cash
Value of outstanding common equity: $19,356,960,000
Target share price: $29.89
Expected closing: N/A
Annualized gain: N/A
Note: As an alternative to receiving the $39.20 per share in cash, Clear Channel's shareholders will be offered the opportunity to exchange their common shares on a one-for-one basis for shares of Class A stock in the new company.

Energy East Corp. (EAS), Iberdrola SA
Premium offered: $4.35 or 18%
Acquirer: Iberdrola
Target: EAS
Offer per share: $28.50 cash
Value of outstanding common equity: $4,503,000,000
Target share price: $24.15
Expected closing: Early summer
Annualized gain: N/A

First Charter Corp. (FCTR), Fifth Third Bancorp (FITB)
Premium offered: $0.73 or 2.4%
Acquirer: FITB
Target: FCTR
Offer per share: $31 cash & stock
Value of outstanding common equity: $1,088,100,000
Target share price: $30.27
Acquirer share price: $21.12
Expected closing: Second quarter
Annualized gain: N/A

Getty Images Inc. (GYI), Hellman & Friedman LLC
Premium offered: $0.89 or 2.7%
Acquirer: Hellman & Friedman
Target: GYI
Offer per share: $34 cash
Value of outstanding common equity: $2,023,000,000
Target share price: $33.11
Expected closing: Third quarter
Annualized gain: N/A

Compliments of Schwab.com (lost link) 05-12-08 1004ET

Clean Energy : Evolve Your Porfolio, Secure Your Retirement

2008-04-16T14:34:00.000-07:00

Clean energy isn't going away, and it has a place in most portfolios. I would caution, however, that this is a smaller cap sector and individual securities can produce wild swings in price.

Clean energy is not only volatile, but also tied to swings in oil. When oil prices fall so does the interest in alternative energy. This volatility in clean energy stocks can be a risky resource for profit taking. Clean energy ETF's, possessing the same properties as an index, are slightly less volatile and will be a wise long-term investment in anybody's portfolio.

The entire alternative energy industry is a creation of government intervention rather than meeting a market demand, which is there. Their fortunes will depend on politics more than anything else for years to come.

I prefer PowerShares Global Clean Energy (AMEX:PBD - News)now because of its international exposure. The portfolio weights U.S companies at 28%, Germany 16.9%, Spain 10.4%, China 7.2%, France 7.5% and Denmark 6.6%. It also includes names from Japan, Australia, Brazil and Ireland. The ETF returned 26% last year. But it lost 17% year to date. It sports the highest Relative Strength Rating, 78, in its category.

PowerShares WilderHill Clean Energy (AMEX:PBW -News), the largest by assets, also gained 4%. Like First Trust, its 50-day average has crossed below the 200-day. Last year's No. 2 performer blasted 60% in 2007. It plunged 25% year to date, but has vaulted 13% off its bottom.

Promising Solar Stocks:

AKNS AMAT CSIQ CSUN CTDC EVX FSLR GEX JASO LDK QCLN SPWR STP TSL

BAC Acquisition: Hit the Countrywide Spread

2008-04-16T11:25:00.000-07:00

400 shares of CFC @ $5.00 per share = $2,000
BAC conversion rate of CFC stocks is 1 : 0.1822
400 shares of CFC = 72 shares of BAC
72 shares of BAC @ $37.00 per share = $2,666

$666 on 2k = 30% discount

The acquisition should take place per 3rd Quarter.

On top-the-spread - Dividends, dividends, dividends...

Companies whose shares may have unusual price changes in U.S. markets tomorrow

2008-04-14T01:54:00.000-07:00

The following is a list of companies whose shares may have unusual price changes in U.S. markets tomorrow. Stock symbols are in parentheses after company names, and prices are as of 6:15 p.m. New York time on April 11 unless stated otherwise.

Agria Corp.'s American depositary receipts (GRO:US) fell 47 cents, or 10 percent, to $4.10 after the official close of U.S. exchanges. The Chinese provider of corn seeds, tree seedlings and products for sheep breeding had a suit seeking class-action status filed against it. The suit alleges the company failed to disclose employment agreements with some executives, according to a statement by law firm Schiffrin Barroway Topaz & Kessler LLP.

General Electric Co. (GE:US): The second-largest U.S. company by market value may rise to $40 a share if it can meet its reduced 2008 earnings guidance, after first-quarter profit missed analysts' estimates last week, Barron's said, citing no one. The shares fell $4.70, or 13 percent, to $32.05 in regular trading.

Kimball International Inc. (KBALB:US): The maker of electronics and furniture said it will cut jobs, sell a facility in Poland and shut sites in Ireland and Wales. The stock fell 31 cents to $11.05 in regular trading.

Simtek Corp. (SMTK:US): Cypress Semiconductor Corp. (CY:US), the maker of programmable chips, offered to buy the rest of the memory-chip maker for $2.20 a share. The stock lost 1 cent to $2.55 in regular trading.

Valero Energy Corp. (VLO:US): The largest U.S. refiner may rise as much as 64 percent if the company can buy and refine cheaper, heavier oils left after gasoline production, Barron's said, citing Deutsche Bank AG analyst Paul Sankey. Valero fell $1.42, or 2.9 percent, to $47.70 in regular trading.

Washington Mutual Inc. (WM:US): The savings and loan that's shutting some lending offices said it expects to incur pretax restructuring costs of $140 million to $180 million as it eliminates as many as 3,000 jobs. The stock fell 47 cents to $10.95 in regular trading.

Compliments of Bloomberg

If Your Long Term-Sit On The Sidelines... Take Those Profits!!

2008-04-14T00:54:00.000-07:00

With the global community so pessimistic about the current market situation, with investors hanging on to every economic report and every company earnings report to guide their rational... one must have noticed the extreme volatility in small-cap equities. An average watchlist should have on average 10 or so stocks that swing on average 10-15% in either direction in a given week. When and if a company you've been watching which has a solid financial foundation swings wildly into the red with the rest of the market, exploit this global pessimism. Sell-offs of valuable stocks occur for two main reasons, 1) investors are scared and they want out; and 2) investors see a great deal in another stock so they're freeing up capital buy selling off their "less responsive" equities getting ready to make a big purchase. These magnificent sell-off's will cause intense undervaluation. These discounted stocks will rapidly return to their valued trading level just as soon as investors get their badly need and temporarily promising "good news". Investors everywhere will be looking for the discounts and small-caps is where they'll find them... Right after you've bought them. This is a buyers market and i'm convinced this will always be a buyers market, this is why sell-offs pose as such a grand money making opportunity.

Buy during a sell-off and wait for the bounce. You take your 10% and sell sell sell... Buy back in and sell sell sell!

Stocks Go On Sale This Week: Welcome the Hit!

2008-04-14T00:14:00.000-07:00

Despite a weak economy, railroad, trucking and homebuilding stocks are faring well, perhaps a sign that investors are banking on a recovery.

Although a turnaround appears to be far off, there are some early signs that Wall Streeters may be already positioning themselves for a rebound.

For example, a recent spate of bad corporate and economic news hasn't wreaked havoc on the markets, suggesting a floor has been put in place after months of heavy selling.

Additionally, railroad, trucking and homebuilding stocks have been rallying - a surprising occurrence considering those sectors have been among the hardest hit by the credit crunch.

"We're waiting for the economy to start showing it is recovering and that's keeping stocks stable right now," said Ron Kiddoo, chief investment officer at Cozad Asset Management. "But if we don't get some hint by late summer that a recovery is on the way, we could see bad days again."

Last week, Federal Reserve chairman Ben Bernanke and other Fed officials came as close as they have yet to acknowledging the depth of the economic slowdown, with Bernanke telling Congress that a "recession is possible." And on Tuesday, the minutes from the last Fed policy meeting confirmed that many of the central bankers were worried about a recession.

This wasn't much of a surprise to investors, who for months have traded stocks as if a recession is already here.

That belief led to an "all news is bad news" philosophy that saw investors reacting poorly to any economic report or piece of company news that seemed to confirm the worst.

But sentiment seems to be shifting as of late.

"It's still too early to tell," said Thomas Nyheim, portfolio manager at Christiana Bank & Trust. "But I do think that when you have Ben Bernanke, the IMF, and all these strategists saying we are in a recession or about to see one, and the market doesn't sell off much, that tells you something."

The reaction to last week's miserable March jobs report was a good example, said Alan Gayle, senior investment strategist at RidgeWorth Capital Management.

"We lost jobs in every month in the first quarter, the unemployment rate rose and the market managed to look beyond that," Gayle said.

While that reaction was positive, he's concerned about how investors are going to manage to stay positive with more job losses, falling home values and gas prices that are flirting with $4 a gallon. Investors are, after all, consumers as well.

On the upside, exports are strong, some earnings outside of financials will be decent and the market has the support of an aggressive and innovative policy response from Congress and the Fed, Gayle said.

And what's most surprising is that many companies you'd think would suffer the most during a recession are actually among the market's leaders.

Issue No. 1: America's money

Historically among the first areas to recover after a recession, the railroad sector has risen about 14% year-to-date. Other key transportation indexes are all up between 5% and 10% this year, versus a decline of 7.5% for the S&P 500.

And transportation stocks have been moving ahead at roughly the same pace that financial stocks have been declining.

Surging energy prices have hurt profits at airlines, package delivery firm UPS and some of the truckers. Yet, the railroads in general are more fuel-efficient and have lower costs than other forms of delivery, which has helped them. Growing demand for coal and other forms of fuel have helped as well.

"Railroads are picking up business because their cost structure is better than other forms of shipping," Nyheim said. "A company like Burlington Northern has such a wide footprint that its cheaper, for example, to ship coal that way."

The stocks have also benefited from the interest of Berkshire Hathaway head honcho Warren Buffett, who has invested heavily in the sector of late. If Buffett sees something the broader market is just beginning to notice, it wouldn't be the first time. (Full story).

Homebuilding stocks, also often among the recovery early birds, have been rising too.

But homebuilding stocks were battered so hard last year amid the ongoing housing and credit market crises that analysts say a recovery in that sector is largely attributable to bargain hunting.

"It's been interesting, it's been nerve wracking and it's been encouraging," said Gary Webb, CEO of Webb Financial, referring to the market's recent upswing. "But we won't really know for another few months whether this was the start of a shift in sentiment."

Compliments of CNN MONEY

Taxes: What You Should Know After A Volatile Season

2008-04-14T00:02:00.000-07:00

Look for losses. If you took a hit in the market in 2007 or even if you switched investments within a fund family at a loss, you can spin the pain into tax gold. First you must use losses to offset capital gains. Then you can deduct another $3,000 worth against ordinary income. What's left carries over to later tax years. So make sure you don't have any leftover losses from, say, a bad bet on GM in 2005.

Pad your retirement. You can fund an IRA for 2007 until April 15 (the max is $4,000; $5,000 if you were 50 as of Jan. 1). And don't assume you earn too much to write it off. Even if you and your spouse have retirement plans at work, you can deduct part of your contribution if your modified adjusted gross income (AGI) is below $103,000. For a full deduction, your modified AGI must be $83,000 or less.

Itemize. Some 63% of taxpayers don't itemize - at their financial peril. A 2002 Government Accountability Office report found that filers who should have itemized but didn't paid $438 extra on average.

Build Your Ebay Feedback

2008-04-09T13:46:00.000-07:00

Purchase eBooks for $0.01. $5 dollars will build you 500 positive feedback thus giving your more credibility. You can sell high profile items for a premium resulting in more profits.

Business Ideas

2008-04-09T13:30:00.000-07:00

Clone yourself.