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Tuesday, January 25, 2011

Tempur-pedic Stock Takes Off

On Thursday, Tempur-Pedic International reported to SEC filings that the company made staggering income of $46.29 million which was ahead of analysts expectations. Net Sales for the final quarter of 2010 rose more than 20% up to $292.7 million dollars and now some investors are placing the company on its stocks to buy now list.

In beating the Wall Street analysts' expectations was in the form of price per share in regards to revenue and they predicted that it would be at or around $0.57 per share, however Tempur-Pedic beat expectations in this category as well with reporting $0.66 per share.

That is a significant increase from last year's price per share filing which was $0.38. The most notable statistic from this quarters Tempur-Pedic earnings filing report was that the company cut down on their debt roughly $29 million down to a total of $407 million and increased cash-on-hand to $53.6 million.

In accordance with solid revenues, the company did announce a new share purchase program that would allow for a float of an extra $200million in share equity.

GE Stock Takes Off After Impressive Earnings Report

General Electric's stock (NYSE: GE) opened 5.3% higher today than yesterday's close. This immediately followed the company's fourth quarter profit report, which showed a 51% increase in profit for the industrial giant, which makes plastics and technology for cars, as well as providing automobile financing.

The company's fourth quarter revenue outperformed estimates from Wall Street. GE Chairman and CEO Jeff Immelt was recently named chair of the President's Council on Jobs and Competitiveness, President Obama's panel of economic advisors.

For the first time in over two years, GE's financial services branch reported a decrease in real-estate delinquencies, and the company as a whole reported an increase in orders for big-ticket equipment.

Segment earnings at GE capital climbed 11% to $1.1 billion, up from $99 million. The company showed $2.5 billion in losses and impairments, a decrease from third quarter, and it reported that its volume increased by 30%. At close of business today, the stock was still up 1.3%.

Thursday, January 20, 2011

What You Should Know About The Stock Indexes

There are numerous stock indexes and each one is different; being cited by news or financial service firms these indexes are often used to benchmark the performance of portfolios. Not only are these indexes different, but stocks and companies move in between them all the time, allowing us to measure a certain section of the stock market. While you might purchase shares off the New York Stock Exchange (NYSE), that same company might be listed on the Dow Jones Industrial Average (DJIA) by the time it is all said and done. Let’s take a look at some of the major US stock indexes and see what sets them apart.

The Dow Jones Industrial Average is a market index of 30 large, publicly owned companies based in the US. The editors of the Wall Street Journal pick the companies listed in the DJIA each year; a tradition that was started in 1896 by Charles Dow and his partner Edward Jones. The Dow is one of the oldest US market indexes, second only to its brother index, the Dow Jones Transportation Average.

While one would think the companies listed were still industrial-based companies, this is not the case. During the early 1900s in the industrial revolution, this index was based on the top 11 companies, which just so happened to be the major industrial hitters. Since then, times have changed and industry is no longer the only top seat in the market, but the ranking has not changed; the 30 companies listed are at the top of their game in their respective industry.
The NASDAQ index is mainly used to track technology stocks, as well as some high dividend yield stocks, unlike the Dow, the NASDAQ takes into account the market value, including company worth, of all 5000 stocks listed on the exchange. It is highly followed in the US as a key indicator of the performance of technology companies and since many of the tech-based companies have plants and factories overseas, it is no longer considered an exclusively US index. One of the key complaints for the NASDAQ is the index tracks a majority of small companies, which increases the index’s volatility based on their performance.
The Standard & Poor 500 is a strictly US based index; meaning when a company shifts it’s headquarters overseas, it is removed from the index and replaced by a company still located in the US. The stocks included in the S&P 500 are all large-cap common stocks actively traded on either of the two largest American exchanges; the NYSE and the NASDAQ. After the Dow, the S&P 500 is the most widely followed index and is considered a bellwether for the American economy.

While all of the indexes are different in what they follow, there is a good number of similarities between them. Each index is picked by a different set of individuals who feel the best way to track an economy is through the stocks they have listed on the index.

It is up to the person who is investing to figure out which index suites their beliefs and financial status the best. Investing in the stock market doesn't require you become as knowledgeable as a broker, but it helps to know the basics.

What You Should Understand About Stock Market Trading

Finding the best stocks to buy right now can oftentimes be a confusing point of financial disconnect because we don't understand the theory or what's behind the actions. For some people, trading stocks makes sense, much like breathing; it comes naturally. For the rest of us, stock trading seems to be a type of magical wizardry that happens with a wave of a hand in the middle of a crowded room. Suddenly you own a portion of a company and your financial success depends on how well they can make a profit. While that is somewhat accurate, let’s see if we can make a little more sense of the whole stock trading conundrum.

Stocks are the way a company builds investment capital. Basically, a company will trade  shares of the company’s profitability in the future, for some investment capital right now. Both sides benefit from this transaction because the company gets unearned revenue and the stockholder not only gets dividends from future profits, but also gets a say in the direction of the company. Understand that buying stocks that pay dividends can be a smart move in the long-run.
  
There are two basic methods of stock trading; floor exchange and electronic exchange. While there is a big push to make everything electronic, floor trading is still the most widespread way to trade stocks. Both ways work under the same general premises, but they are a little different in how the transactions take place. Here is a simplified picture of how these trades work:

Floor exchange:  When we think of floor trading, our minds usually head right to the movie theaters and visions of Wall Street. We imagine hundreds of people flailing frantically while shouting and gesturing to one another. It looks like this chaos is what makes the stock market function from day-to-day. You call your broker wanting to buy 100 shares of Widgets, Inc. Your broker calls the floor clerk, who knows exactly who is looking to sell 100 shares of Widgets, Inc. The two agree on a price for the sale. That price is communicated to you and later you receive a confirmation in the mail. You then officially own a piece of Widgets, Inc.

Electronic exchange:  Electronic transactions take place in the same way, except buyers and sellers are matched up online and the communication takes place almost immediately. Your electronic broker facilitates the online trading by putting you one step closer to the actual trading floor. You are not personally trading on the floor of the stock exchange by yourself. You still need a broker to handle the actual transactions, because not everyone can have access to the heartbeat of the American economy; the stock market. Again, that stock, no matter how small, gives you a bit of ownership in the company.
  
There are thousands of stock trades that happen daily and thousands of reasons for trading. Some people trade because they want to make money, while others just enjoy participating in the American market economy. Trading stocks is a great way to learn about how the government regulates commodities. It's also an interesting way to learn how companies grow and develop. You may just get a kick out of owning a part of a particular company. Stock trading can be an enjoyable past-time, an additional source of income, or even a primary source of income if the investment pans out.

If you're interested in learning more, just pick up a newspaper or go online and begin watching the markets. Test out how a couple of stocks would do by first investing imaginary money. Track your investment until you're comfortable and understand what your pretend money is doing. Then you'll be ready to make a move with a real broker and real money. Take it slow, watch closely, but most of all have fun.

Trade Any Stock Using Your Head As Well As Your Heart

Investing in good stocks to buy can be an exciting moment. Realizing you can be placing capital into a corporation that you are convinced is doing an amazing thing or which you feel is likely to make a lot of cash is definitely the enjoyable component. This can be a cheerful time. No matter if the job is difficult, purchasing a stock can be fulfilling and thrilling. When it comes to selling a stock, it's a different story. Usually there is a little hesitation and a lot of doubt.

While buying a stock can also involve hesitation and doubt, the experience has enough exhilaration to keep you feeling upbeat. However, selling a stock is a difficult decision to make and lacks the excitement and exhilaration that can keep you thinking positive. Let’s take a look at why selling a stock can be a scary time and why it usually pays to sell anyway.

If you are trying to determine if now is the best time to sell your stock, then you have probably already made up your mind to sell. The difficult part comes when you start to consider if there is more money to be made by holding on to the stock, or you need to consider if you will lose any more money by holding on. These risks need to be weighed and well thought out before you can move forward.

There are basically two decisions you must consider. If the stock is going up and you sell now, will you be alright with your decision no matter which way the stock goes afterward? On the opposite note, if the stock is going down, will you be alright with your decision to cut your losses? Let’s dive a little further into each of the scenarios and take a look at why you shouldn’t be afraid to sell.

When stocks are going up, you are generally excited about the prospect of the income which will result. The difficult part to know is when, exactly, these stocks to buy now will peak. While many people can predict the general trends of stocks, there is no set method to tell when and how high a stock will peak. It is important to determine all of the outcomes and then pick which one you are not afraid of.

One of the best tricks is that once you sell your stock, don’t go check back on it. If you are looking back, that indicates you were not okay with your decision to sell in the first place. Your decision needs to be better thought out. Once you make the decision to sell, you are in essence saying you are through caring about that stock. Looking back on it shows you still care. Make the right decision from the beginning to avoid getting frustrated and angry with yourself later on.

If your stock went back up after you sold, would you be devastated or would you be comfortable with cutting your losses where they stand now? If you decided to keep your stock and it continued to slide, will you be okay with the decision to stay in it and risk losing more money? Both of these positions must be considered in order to come to a comfortable stance on selling your stocks in a declining market.

Weighing your risks and looking at all of the possibilities will help you determine whether to sell a stock or not. However, the best decision ultimately comes down to being comfortable with what happens after you make your decision. Once you entertain the thought of selling a stock, you've already put a lot of thought into the dollars and cents driving the decision. What will make your decision successful is the way you handle the aftermath. Whether you chose to sell your stock or not, getting comfortable with the decision will make all the difference in the world.