"Because good analysis, is good money"
-Invizible INK

Learning by Doing

You can read as many books as you want about investments, markets, or money management but until you actually put it into practice you most likely won't be fully absorbing the information. Sure you can paper trade or use a demo account but there are always real life factors that can't be simulated.

For example, you aren't always emotionally attached to your demo money. If you lose all your demo money you can always press reset and start again. You say things such as, "Oh in real life I wouldn't have done that anyways." or "I was just trying something new to see how it goes." No matter how hard one tries, demo money just isn't real.

Another good example is execution. Can what you do in practice mode be done in real life? When you click buy & sell on your demo trading platform, the trade always goes through, but in real life does that really always happen? What happens when the market is overwhelmed and the prices gap or spike? Can you still close your trade fast enough?

Remember to take these types of factors into account when you practice! Remember, whether you pay to take a course or just dive in and trade for real, you're probably going to pay somebody. Remember not to risk anything you can't afford to lose!

see you next time,... because thePaperBoy knows his paper

Ethanol versus Sugar stocks

Take a look at the latest Barron's roundtable. Sounds like owning sugar rather than ethanol stocks is the way to go to play the rising demand for ethanol according to money manager Felix Zulauf. Since February 2006, the price of sugar has fallen 50% to 11 cents a pound. That's below production costs of about 14 cents in Brazil and India, the two largest producers! This may mean that sugar production is therefore on the decline, while demand is rising due to ethanol. Brazil is also the producer of 5 billion gallons of ethanol a year, and is planing to increase that to 8 billion gallons within the next three years. 22% of Brazil's total fleet of cars are Flex cars, and the government wants the percentage to rise to at least 30%.

Brazil also exports ethanol to the U.S., Japan and China, all of which are raising their demand. "In the past", says Zulauf, "when sugar started rising from a price below the cost of production, it rose 100% or more, on average." His target price is 20 cents. Note that according to Zulauf a 30% increase in the price of sugar (far less than the increase from 11 to 20 cents he's predicting) would eliminate ethanol's price advantage over gasoline. Sugar futures are therefore a better play on ethanol than the sugar-based ethanol producers such as Cosan (CZZ). Investors who can't access sugar futures may consider two commodity ETFs: the PowerShares DB Agriculture ETF (DBA) and ELEMENTS Linked to the MLCX Biofuels Index ETF (FUE).

Spotting Successful Strategies (Part 2): Organic Growth vs. Acquired Growth

Growth. We all know what it means. We have all experienced growth in one way, shape or form. We grow physically and mentally, the children we have grow up, the plants and trees around us grow, the cities we live in grow and so on. However how should a public company grow?

Basically there are two ways in which a public company can grow: organic growth or acquired growth. Which method is the proper avenue for corporate growth? Should a company be using a balance of the two methods? The bottom line is which type of growth shows the public company's investors, clients and general public that they are demonstrating successful strategies and ultimately building shareholder equity and increasing shareholder value.

Organic Growth

Building a public company via organic growth means that the corporate strategy and focus is on internally growing the company through developing new products, services or intellectual property. All in all the company's primary objective is to perform needs analysis, design a product or service, develop that product or service, implement it through marketing channels and evaluate its level of success in the market. A company that is growing organically will find itself dedicating all of its resources into a product. Funding the research and development department, funding the manufacturing division, funding the quality assurance department, funding the marketing and sales teams, etc. At the end of the day, the public company's burn rate is almost entirely comprised of money spent on a product or service.

Acquired Growth

On the other hand, building a public company via acquired growth is the exact opposite. Instead of devoting man power, dollars and time into developing that new miracle product or the latest and greatest, this company will dedicate its resources to acquiring products, services and intellectual property as opposed to building them in-house. The public company will seek technology, products and assets it sees fit to their corporate strategy in order to grow their organization and ultimately build shareholder equity. The clear benefit to growth via acquisitions versus organic growth is time. Money may be saved with this method as well, but harnessing efforts in the right direction for the right reason is priceless. At the end of the day, the public companies need to build shareholder equity. By doing so, it proves to the investors that the public company is positioning itself for success in the market.

There is no secret that we all look at a publicly traded companies success in its stock price. However, the secret is in how a publicly traded company can move the stock price up. It is not within the product that the company invents, develops and markets. Rather it is how the company seeks suitable, profitable and feasible assets to acquire. When these assets are procured, they will increase shareholder equity. Building shareholder equity will demonstrate a public company's successful strategies and as a result increase shareholder value. By increasing shareholder value the stock price will naturally correct itself.

Succeed by seeking and acquiring growth, not by attempting to develop it in-house.

Handling Your Paper

Everyone knows someone who has difficulties managing their own finances. Stop and think about it for a second. Have you ever wondered if the person you go to for financial advice actually knows more than you do? It's rare for people to question the the knowledge of an "expert".

Have you ever stepped into a casino and made a few losing bets? Have you ever felt the urge to unload your entire bank account on the next hand because you had a very good feeling about the next card? Most people have, and lost.

Like a casino, the stock market can work the same if you don't understand its intricacies. You place a trade and wait for the outcome much like dropping a quarter and pulling the handle. The numbers spin as fast as the dials on the slot machine. Sometimes you win, but most times you lose when you're guessing and gambling. We've all heard stories of stock market gods who never lose as much as we've heard horror stories of average joe's that just can't catch a break.

Here is today's reality check:

- Winner's don't gamble, they take calculated risks.
- Winners use proper money management techniques and play only when the odds are in their favour.
- Winners don't trade with emotions, gamblers do.

I don't care if you, your mom, and your neighbor's dog all think that next stock is the big one. I would not unload my bankroll on it, nor would I chase potential gains to recover losses. If you want to be a winner, you need discipline. Here's a few simple rules you can follow: Only risk 5% of your bankroll per trade or pick, don't trade with emotion, don't gamble-analyse your pick.

See you next time boys and girls,

... because thePaperBoy knows his paper

Learn How to Invest Money – Books & Seminars

When beginning your quest to financial freedom, education and knowledge still stand as the most important part of your journey. There are many books out there which will help you learn how to invest money, or leverage your assets. The most important part of each book is not the content directly but the ideas it creates and the actions you take to apply them. Among my personal favourites book list are:

Rich Dad, Poor Dad – Robert Kiyosaki
Cash Flow Quadrant – Robert Kiyosaki
Escaping the Middle Class – Doug Anderson
4 Hour Work Week – Timothy Ferris

I have read many books in the past few years, but these books do stand out and have taught me priceless lessons in how to invest money, how to manage my finances, how to save on taxes, how to operate a business, and how to set financial goals. You will find many lessons in these books to crossover, as with most industries, and the more you are able to connect, the more effective you’ll probably become as your own financial planner.

There is an infinate number of seminars that promise results, claiming you can learn how to invest and make money easily with their system. How do know which works and which doesn’t? The truth is you can’t usually know until you try. As with everything else, if you want to learn how to invest money, you have to treat education as an investment as well. You have to spend time and money if you want a successful financial future.

Losses are normal and you will have to take some hits here and there with bad courses, and bad deals. learn what made them bad, see where you made the mistake, and know how not to make that mistake again.

A few points on what to look for in seminar:

1. Do a google search and try and dig up some information on the company sponsoring the event and the speaker(s) presenting.
2. Do some background research and learn a bit about the topics before walking into the presentation.
3. Ask people about the seminar. Someone will know someone who’s attended that seminar in the past. Ask what they think.

Financial freedom is only a dream to many. If you break down your financial goals, and educate yourself, you’ll slowly realize that there are options wherever you are, despite your age, your credit and your savings. Just remember, your biggest hurdle is within yourself. You have to find your passion to drive and succeed. Take the initiative and educate yourself.

We can all make money, but do we all know how to spend it?

We all have to spend money. There's no way around it. Food cost money, toilet paper cost money and the gas that you used to get these items cost money. No matter how disciplined you are with your money you're going to have to spend it. 

Don't despair. There's hope:

Some banks have credit cards that allow you to earn points that you can later redeem for cash from your gas and grocery purchases.  In essence, you're getting rewarded money for spending money.

On average they'll reward you 5 points for every dollar you spend on gas or groceries. Then after you collect 5000 points. You get a check for $50 up to $300 for the year. So, if you do the math, you're getting a 5% return on the money you're spending to survive.

Sweet huh?

That's the same kind of return as having $10000 sit in a of rare High Yield savings account that gives a return of at least 3% for a year.

So you could either spend around $500/month on Gas and groceries and live normally for year and collect $300.

Or...

You could put away $10000 for a year, eat Macaroni and cheese with ketchup for and walk everywhere you have to go 12 months and collect you $300 in earnings instead.

Sure you'll have an extra $10000 the second way, but something tell me you'll be a lot happier earning your $300 using the credit card.

Fineline Holdings Inc. - Press Release April 09, 2008

Fineline Holdings Released a new press release yesterday as posted on http://www.pinksheets.com/pink/quote/quote.jsp?symbol=fnlh.


Company Upgrade: Investment Tutorial for Shareholders of Fineline Holdings, Inc. Apr 08, 2008

(M2 PRESSWIRE via COMTEX) -- InternationalStockTargets.com is focused on helping investors make money in any market conditions. Our goal is simple, to help walk investors through the proper trading formulas to see success when investing in the markets. Shareholders of Fineline Holdings, Inc. (PINKSHEETS: FNLH) who would like assistance when trading in the equity markets are being offered a free subscription to www.internationalstocktargets.com.

Our main focus is finding growth stocks, that present high reward opportunity with lower than usual risk potential. With the markets the way they are right now, it's becoming increasingly difficult to lock in profits, and most investors are satisfied with not losing money right now, when the real goal should be to make money. If you are tired of losing on investments do not hesitate, sign up now to www.internationalstocktargets.com for a free subscription.

Our subscription will include:
- Email alerts when a growth stock hits our radar.
- Training tutorials for novice investors, on how to capitalize on the present market conditions.
- Advanced trading options for sophisticated investors.
- Institutional and brokerage investment tools.

Don't hesitate to sign up now. Our investment knowledge is at your disposal.
This Monday during the last hours of trading, Fineline Holdings was up 65.00 percent with a volume over 1,300,000.

On Monday, April 7th, 2008, In an effort to continue to build shareholder equity, Fineline Holdings, Inc. stated that it will be expanding its reach to provide merchant bank consulting, and corporate finance advisory services to other microcap issuers. These micro-cap opportunities are typically either in operational or financial difficulty and may need corporate restructuring, merger & acquisition advisory services, and bridge financing. They are typically facing market awareness issues and an inability to attract corporate financing and require the help of serious, experienced managers to restructure and turnaround public company operations in an expedient manner.

Spotting Successful Strategies (Part 1): Building Shareholder Equity

When most of us look for company successes, we naturally gravitate towards the latest and greatest product they just released or a really sought after service which the company provides. As a result, we as consumers look at their bottom line - profits, revenue, EPS, ROI, etc. Basically how much revenue is the company generating. Yet if you look at many companies with huge success on the Fortune 500 list, they have a different focus. Instead of spending millions of dollars on research and development, designing the product, developing the product, putting the product through the quality assurance process and so on these other companies are spending millions of dollars on purchasing assets. Whether it be real estate, buildings, manufacturing plants or chattel, these companies are acquiring acquiring acquiring as opposed to inventing, developing, testing.  

Having said that, which is the proper focus? A company that is product-centric or a company that is acquisition-centric? A company that is product-centric may be successful but the longevity of that success is short fetched. Long term success cannot be achieved if product is the only thing a company is focusing its resources on. At the end of the day, product does not increase your stock price. Product does not prove to investors of that company that the company is moving towards building shareholder equity and shareholder value. Product will sooner or later become out of date, obsolete or useless. However, what does poise a company for success is building shareholder equity and shareholder value.  

How you build shareholder equity is acquiring assets which in turn equates to a tangible bookable asset in the company's books. Once the books are audited then there is no question that the company has X amount of dollars in assets and Y amount of dollars in equity. Now when an investor looks at the company, there is proof in the numbers. Investors believe these numbers because they are US GAAP (Generally Accepted Accounting Principles) standard audited financials.  

This is a proven template that many companies use.  Companies such as Apple, Google and Starbucks all are focused on purchasing assets to build shareholder equity.

When you build shareholder equity, shareholder value increases as well.  

Fineline Holdings Inc. - Press Release April 07, 2008

A news release that was released yesterday on Market Wire announced the addition of merchant banking advisory services to Fineline Holdings Inc.'s current business interests.

This merchant banking advisory helps companies resolve operational or financing issues in micro-cap markets according to the press release.  This addition is meant to help increase shareholder equity in both the merchant banking advisory and in Fineline Holdings Inc.

Fineline Holdings seems devoted to building shareholder equity and is on the right track.  Although it is a pinksheet company,  I believe a conservative investment for at least a 6 month term will prove to be profitable.

I give it my BUY recommendation for the short term! 

For more stock information on Fineline Holdings, I've added a Google link.  You can visit by clicking here.

Learn How to Invest Money - Beating Back the Short Attack

I came across this great article that talks about short selling, a multi-million dollar investing-industry gold mine. As an investor, you have to be weary of short sellers when you are learning how to invest money, as this could affect you, especially in junior markets.

Beating Back the Short Attack

By Rich Duprey March 24, 2008

Since everyone loves a winner, it's reasonable to assume that everyone hates a loser -- everyone but short-sellers, at least. These contrarian investors bet that hot stocks are primed to fall, aiming to turn their pessimism into potential profits.

This week, we're looking at companies on the American Stock Exchange with the biggest decline in the number of shares short. Combining that with the collective intelligence of Motley Fool CAPS, we'll see which of these companies Fools believe have the power to make short work of short-sellers.

Of course, this isn't a list of stocks to buy -- or short! These stocks could have serious problems that warrant their short interest, but they might also be stricken by short-term troubles. Only Foolish due diligence will tell you for certain; our 89,000-strong CAPS community offers a good place to start. Most of these companies are generally well-liked, as most have garnered three CAPS stars or better.

Feeling the squeeze

Perhaps the first thing you would notice is that while we're looking at stocks that have seen the largest decrease in their shares short, five of the seven companies have actually seen their shares-short count rise! Why, for example, would Golden Star see the shorts pile in on its stock despite an increase in share price that would seemingly position it for a short squeeze?

Short-sellers may have been emboldened by the fourth-quarter report issued at the end of last month, which underscored the company's January announcement that while the Wassa mine produced yet another record achievement, the Bogoso mine promised a less-than-stellar return. Management's lowering of guidance for the next year would seemingly belie the rosier expectations it has put out for the mine.

Yet they probably did not anticipate the collapse at Bear Stearns last week that precipitated a spike in gold prices to more than $1,020 an ounce just 10 days ago. While the Fed's recent actions have caused an equally dramatic plunge in gold prices to $920 an ounce, they also have some analysts predicting the peak of the commodities bubble.

Investors seem to recognize the possibility that riding the golden rails may soon be coming to an end, but CAPS investor goofypicker recently asked if anything has really changed in the market? The answer in the pitch is no, but goofypicker predicts continued volatility.

Many speculators are [panicking] and claiming that this is the end of the "commodity bubble". I don't think so. ... The Fed continues to pump liquidity into the market, the interest rate continues to decline, inflation continues to increase and the dollar continues to fall. ... Precious metals will experience quite a bit of volatility and the gyrations may be tough to handle but I think due to the fundamentals ... that a year from now precious metals will be much higher.

Earlier this month, CAPS All-Star Gedunken found a more fundamental reason to think Golden Star will outperform the market. He cited new management and better operations at its mines as reasons to remain hopeful.

This company has been hurt by poor management and failures to meet quotas as well as a basic dislike from the goldbugs because of some of its business practices. But with new leadership at the helm and the mine now operating at quota, the [company's] fundamentals should be turning around. Coupled with the recent rapid increases in gold prices, a small mining company like this will benefit significantly, although usually a bit later than the big miners which have already begun their moves up.

Speak upYou've heard from CAPS investors -- now it's your turn. Share your views with the CAPS community: Squeeze 'em till it hurts, or short 'em till the sun don't shine? May the best argument prevail!

Learn How to Invest Money - Market Makers and Volitility

Learning how to invest money in stocks is not difficult, but it is also not an easy task. The theory and methodologies are simple, but to make money consistently can be a challenge. There is no doubt that you will loose money, despite what all these companies promise with their computer software, strategies, and so fourth. What you need to do is invest and stay on a net positive by accurately predicting good opportunities to invest in. The trick is to figure out if you're investing in a market movement and not in a market makers?

Market makers typically use stock promotions methods such as email marketing to boost open market value. Market makers then sell off volumes of paper into the marketplace unnaturally swing markets and create shor, making profits by pulling investor funds out of the market. This short-term demand and inflated pricing caused by the promotion boosts a company's stock that has little or no equity, and the price crashes after the market maker ends the promotion.

Market movements and market swings (market volatility) we want to find are the natural movements in market price that are not artifically generated through marketing. Companies that hold equitible assets build value and thus sustaintheir market prices. We, as investors, want to locate companies with good price increases caused by aquiring assets. Market volitility will always be there, and the more swings you have, the more more money can be made. You as the investor want to be positioned on the winning side of the swing. How can you do this without a crystal ball? Buy low, sell high. Find companies that have low price to book (P/BV) ratios or price to equity (P/E)ratio.

P/BV= Stock Price / (Total Assets - Total Intagible Assets and Liablities)

P/E= Price Per share/Earnings Per Share

A low P/B ratio could mean the stock is undervalued. You should be weary about these ratios though as the denominator can easily be manipulated by creative accounting. Keep in mind, equity cannot be faked if the equity is hard tangible assets such as land, equipment, or infrastructure. All US GAAP standard bookable assets have value. It's not easy to locate a company that is undervalued, but if you do, then you've literally struck gold.

Fine Line Holdings is one of several companies that we have found. They're working on restructuring their company to build equity and shareholder value as per this article on market wire. Originally, Fine Line Properties was an animations company building itself to be the next "Walt Disney" of cartoons. Today, Fine Line Properties is part of Fine Line Holdings which is a holding company with several different assets under their umbrella,including Monarch Cancun a huge development project in Cancun that is sure to produce huge equitable assets. Robert Petrie, president of Fine Line Holdings is apparently going to be the first feature on Microcap Media, a new junior company awareness website.

How to Invest Money - Stocks vs Currency

What I know and understand is the similarities between stocks on the senior exchange (publically traded securites) and currencies.

To make this simple, I will outline how they're the same. Lets begin with the easier one: Currency.

Currency:
1. publically traded
2. internationally recognized
3. holds tangible value and can be traded for other goods and services
4. certificate of note issued by a governing body

What are stocks?

Stock:
1. publically traded
2. internationally recognized
3. holds tangible value in relation to currency
4. certificate of note issued by a governing body

A public enterprise that graduates to a nationally recognized senior exchange also has the ability to be leveraged by tier 1 banks and financial institutions similar to real estate, meaning you can hold onto the asset and borrow against it to acquire more assets.

Currencies are issued by a governing body, Bank of Canada in Canada or the Federal Reserve in the US. Stocks are issued by the corporate enterprise or the corporate entities that issues the stock. What's the difference? A stock certificate is basically cash as it has par value to its fair market value, and the value of the stock is dictated directly by the amount of currency it can trade for.

Stocks vs Currencies, or stocks equals currencies?

Learn How to Make Money - Stocks NOT Gambling

The stock market has long been seen as a form of gambling, yet many have found it to be a a great hub to make money. Some say throw darts at the charts to choose their stocks, others search for patterns and build systems on trend or expected demand. My philosophy, learn how to make money in stocks that are building equity.

The big boys play with millions of dollars causing pump & dump swings, as the rest think to manipulate by squeezing dollars out of dimes. This is where the problem lies. It is very seldom that the average person makes money because it involves a high cost of entry to get into something stable enough to pay dividends, or you just can't find the right companies to invest in until after the upswing. This is the common problem with any type of business or investing.

Think about it: real estate, t.v. shows, fashion.
1st stepn players benefit most because they are the ones able to caplitalize by building the emerging trends.
2nd step players who follow the uprising and play in the market on the climb upwards with the market early enough before the peak making good profits.
The unfortunate 3rd step players get in at the peak and find themselves caught in the downfall.

My strategy is simple. Invest in companies that are building equity, not blowing smoke. An idea is blowing smoke. An internet based company with no assets is more often than not, blowing smoke.By building equity through properly structured (US GAAP bookable), aquisitions similar to buying real estate, combined with long term corporate goals and viable growth expectations we create equity. Equity is not blowing smoke. The principles taught in every niche of investment, especially long term real estate, is about equity. Why equity? Because equity is worth money! What makes buying ownership in a company any different. Why not use those same principles similarly to qualify stocks in the open market for your portfolio?

Some of those principles as I've outlined below:
1. research your market and do your due dilligence on the stock
2. learn to read the financials
3. keep an eye on the team -control

Market Analysis:
Knowing the market is a very important part in your search for stock. Go backwards, learn the trends that lead to today, then look at current events, and learn the trends that are taking us into the future. Basic accounting knowledge is fundamental as an understanding of an income statement and a balance sheet are important in seeing the stock's value.

Corporate Analysis:
Keep an eye on the executive team. You want to know what each body in the company is doing to make the company better. Changes in the corporate structure are not necessarily bad, but too many changes for example can also cripple their effectiveness to grow.

Compliance and Audit:
Trading in the open market is not as complicated as many believed, although an enlightend sense and understanding of its inner workings is helpful. The stringent regulations by the SEC, the importance of US GAAP standard accounting for constantly audited financials, as well as the constant updating of company profile and executive members makes for great transparency and security.

Emerging Investment Opportunity: Fineline Holdings Inc. (FNLH.PK)

Have you ever wanted to invest in stocks but did not know where to start?  Do you think you have to be a sophisticated investor to dabble in stocks?  It is simpler than you think.  Let me explain.

Let’s start with a key foundational element – the law of supply and demand.  If a product or service is in short supply and demand outweighs supply, the price will be driven up because individuals are willing to pay more for it.  Likewise, if there is an abundance in supply and supply outweighs demand, then the price will fall.  The same concept holds true in the world of stocks.  The stock market is much closer to home than we give it credit.  Familiar with the law of gravity?  Well, this law holds its validity in the stock world as well.  What goes up must come down.  Pull up a stock chart and you will notice that the movements are comprised of peaks and valleys.  A stock price that goes up will come down.  A stock price that goes down must go up.

We have covered the law of gravity alongside the law of supply and demand, which now leads us to the mechanism responsible for stock performance in the markets.  Many variables affect the way in which a stock performs. A public company that is dedicated to building shareholder equity and shareholder value is poised for success. Period. Nothing more, nothing less. There are key indicators that prove a company’s focus on building shareholder equity and shareholder value and ultimately what drives market performance.

Press Releases
The announcement of company news can make or break a stock.  Wall Street and investors alike react, whether it be positive or negative, to corporate press releases announcing a new technology, product, business venture or acquisition. 

Mergers and Acquisitions
A public company that is venturing out and purchasing assets is proof that they have an interest in building shareholder equity.  By building shareholder equity, shareholder value increases. 

Now a company that has been following this template in building shareholder equity and shareholder value via several recent asset procurements is Fineline Holdings Inc. (OTC:FNLH.PK).  Their continued efforts in asset acquisition is in alignment with building long term shareholder equity and shareholder value. These are good solid indicators for driving market performance.  Which means prices should reflect accordingly in the markets. Fineline Holdings Inc. (OTC:FNLH.PK) is clearly positioning themselves for success in the market.

Read the press releases yourself and you will soon see the extent to what their efforts are in positioning themselves for strong market performance.  According to Market Wire’s recent article titled ’Fineline Holdings, Inc. (PINKSHEETS: FNLH): Management's New Strategy to Build Shareholder Equity’ it states “In an effort to build shareholder equity and increase shareholder value, Fineline Holdings, Inc. (Other OTC:FNLH.PK - News) has acquired the exclusive option on $125,000,000 of fee simple land and property in the Monarch Cancun Resort Development. This Development will include three (3) Lanny Wadkins designed golf courses and various other amenities. Fineline Holdings, Inc. reserves the right as one of the Managing Partners to purchase, fee simple, the land and hacienda style homes being built in the development or it can act as the Vendor in marketing these units to the general public. Fineline Holdings, Inc. has also arranged the financing for its portion of the buildout on this project.  Monarch Cancun is the premier developer of residential tourism in Mexico."

Do NOT miss this opportunity.  Act NOW as this company begins its transformation.  Penny stock picks may be a risk, but ITS ABOUT TIMING!!

The timing for takeoff could not be better.  Don’t just realize opportunity.  Also realize the gain.

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This is not an offer to buy or sell securities. Information or opinions are presented solely for informative purposes, and are not intended nor should they be construed as investment advice. Neither TheInStreet.com nor any of its employees, affiliates, subsidiaries or family members are registered investment advisors or registered stock brokers and shall not be liable for any direct, indirect, incidental, special or consequential damages arising out of or resulting from the use or inability to use this site, including but not limited to damages for the loss of capital, funds, profits, use, data, or any and all other possible damages, even if such party has been advised of the possibility of such damages resulting from the use of this site and all information contained on this site. The information provided by TheInStreet.com is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. TheInStreet.com’s employees, affiliates, and or family members or friends of the aforementioned own positions in all of the featured companies which were acquired prior to the publication of this announcement and will buy and/or sell the stock of said companies at anytime without further notification. You should be aware that the aforementioned have a present intent and will buy or sell before, during, and or after (or any other possible combination) any and all companies that are mentioned on TheInStreet.com Companies mentioned herein carry a high degree of investment risk; readers should carefully review the companies thoroughly with their registered investment advisor or registered stockbroker. We are not liable for any investment decisions by our readers. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at www.sec.gov and the National Association of Securities Dealers (NASD) at www.nasd.com.The NASD has published information on how to invest carefully at its website. Readers can review all public filings by companies at the SEC's EDGAR page. All information within this website is qualified in its entirety by the detailed information and financial statements of the featured company contained in its regulatory filings with the SEC. The statements contained herein does not purport to be a complete study of the featured Company or other companies mentioned.Information used and statements of fact have been obtained from the featured Company and other sources, but not verified nor guaranteed by TheInStreet.com as to completeness or accuracy. Such information is subject to change without notice. Investors should be prepared for the possibility that they may lose their whole investment.

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Learn How to Invest Money – Save, But At What Cost?

Save your money. We are all very familiar with this saying. However, at the end of the day what is the true purpose of saving? Why do you save? What is your main objective when saving? Most individuals will admit to saving now in order to spend at a later date. They save to spend. But what true value-add does that create? Honestly it is nothing. Shouldn’t saving bring on stability, safety and security?

Once upon a time I was a save slave. I saved a portion of my pay check each pay period and continued on with this routine for a few years. I admit that saving does build discipline but it also develops a mental block in your paradigm. What I mean by this is sooner or later you will lose sight of your true purpose of why you are saving and start saving without focus, objective or cause. Simply put, save for the sake of saving.

In the investment arena, saving means not investing. Let me digress. If you are saving now, then you are not spending now and ultimately that equates to not “spending” your money on investment vehicles to improve and increase your financial position.

Do not retire your money by putting it into your savings account. Put your money to work in your quest in reaching financial freedom. Saving is an integral component of your investment strategies alongside your financial plan, but do not save for the sake of saving. If that is the case then you will just temporarily save your money to then go ahead and spend it later on. Save with cause, spend with purpose.

Some great sound advice can be found in the 2007 Consumer Reports Ultimate Money Guide (III) – Investing and Goals, it states that the steps to a golden financial future are as follows:

• Mind your spending: Create a spending plan to track monthly spending. If spending exceeds income, find ways to cut spending.
• Weigh your dreams: Jot down major financial goals and figure out how much is needed at specific times.
• Shave and save: Cut back on expenses and save each month in appropriate accounts in order to achieve goals.
• Know the deals: Know the pros and cons of each account: 529, 401(k)/Roth 401(k), and IRA/Roth IRA.
• Rainy day money: Plan for the uncertainty before it happens. Set aside three to six month’s worth of asset to cover the unexpected events.
• Ditch the debt: Use low-rate credit cards and pay off balance every month

Remember – save with cause, spend with purpose.

Learn how to invest money - Building Equity

To understand a good portfolio involves understanding the importance of increasing value or equity.


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1. A stock or any other security representing an ownership interest.

2. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholders' equity".

3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.

4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.

5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio.

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In a simplified manner of speaking, Equity = Asset Price (FMV) - Asset Liability (cost)

If the asset price increases as liablity stays the same, equity will increase.
If asset price stays the same and asset liablity increases, equity will be negative and you may want to think about selling (if there is negative cash flow).
If asset price and liablity increased together, equity will not change.

The right investment should not be based primarlily on equity as many real estate investors will tell you. Buy into the right deal today, by make money at the front of the deal and have the proper exit strategies before signing on the dotted line.

In the securities realm, you are basing your investment on a guess of what will go up and NOT come down. Did you know that stocks on a senior exchanges are LEVERAGEABLE the same way real estate is leverageable? A structure many people are doing today is leveraging the equity in their homes and redirecting it into higher growth investment strategies.
Home equity line of credit (HELOC) - if you get a HELOC at 8%, but invest in a mutual fund with a financial institution that averages a return of 15%, you will be placed in a net 7% earnings. You can leverage your securites on senior exchanges (such as stocks listed on AMEX, NYSE, etc.) like you would with your property.

Why build equity?

Using a house as an example, equity in a home is stable and predictable, a home cannot move nor be stolen, and the home is backed by land. By leveraging the value of the land, you can build investment assets without spending selling your property.

The richest menin the world (Warren Buffet, Donald Trump, Robert Kiyosaki, etc.) will tell you that holding assets and leveraging them to build an investment portfolio is how they have become financially successful not, by buying and selling, but buying and leveraging. Getting creative using leveraging is essential when you learn how to invest money.

Learn how to invest money, start a business, and network

There are different ways to reach financial freedom which involve completely different paths. You can strike it rich through a huge lottery winning, although that is highly improbable. You can work for a company and fight your way to the top, level by level, getting paid more, taking on more resonsiblity, and hopefully getting closer to financial freedom, or almost certain life un-freedom. Or you can become an entrepreneur just by starting to think like your own boss.

If you stop and think about it, how many people do you know got rich and financially free by working a 9-5 job and occasionally overtime. If you do know some, and you should, how long did it take them? Are they now retired and happy? What about the rest of the people you know? Are you headed down the same direction?Isn't is surprising to know that less than 20% of people make more than $80,000 in North America, give or take, and that less than 5% of the population controls more than 90% of wealth, again give or take. We live in a society of spenders. We live in a society of appreciating land values. Unfortunately, we also live in a society of inflation and depreciating dollar value. So what can we do about it?

Start thinking like your own boss! Building an entrepreneurial mindset is a definate way to get ahead. Start seeing opportunity where others miss out. Ray Kroc, the founder of Mc Donalds, once said something like this about his business, "I sell hamburgers, but I'm in the business of real estate." Paul Hartunian sold the Brooklyn Bridge back in the early '80s. His story is mind-blowing. Apple, Microsoft, Burton Snowboards, mom 'n pop diners... these ideas among others much simpler were were all built on filling a consumer need. Business is that easy!

Networking. It is never too late to start, nor is it ever to late to meet people. To get ahead in business, you need to build business relationships. This may sound difficult, but it isn't really, so long as you are willing to put yourself out there. Everyday, in every city there are seminars going on. How to make money today by selling an endless supply of doodads, lotions and potions, how to make money in real estate, how to invest money in stocks or forex (foreign exchange)...the list goes on, and on, and on. The point of these seminars and your attendance is not for you to buy each and everyone, but to build a foundation of sales techniques, language usage, and courage to talk to random strangers. You'd be surprised of the kind of people you will meet in such a seminar. Now a days, both young and old, and those looking to make a change in their life.

Investing. Start investing in your future. Seminars to build yourself and better your and business acumen may not produce you financial income, but it is an investment in yourself to build the skills necessary to begin making a change. Think of it like going back to school. Investing can be a whole lot of things. Investing time to build an idea, investing money, investing in education. Just avoid investing your time in things that waste your time such as television and negative people.

The fact is, there is no "get rich quick" scheme out there that can promise riches overnight. No matter how many guarantees, certificates, and whatever motivators are out there, the only thing that can make you successful in your quest for financial freedom is motivating yourself to do something different. As someone once said, "You can't do the samething everyday, but expect something different!"

How to Invest Money - Building Opportunity

The fundamentals of an opportunity is very easy. Buy low sell high! or leverage and sell high. Opportunity is just about trading or bartering products or information. The real question is what product or information and how do you sell it?

Whether you're in the business of products, services, or information, you have to acquire the assets at a wholesale price to be able to sell at market value or at a discount from market value.

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Products with Value

- If you're selling anything, make sure there is value or quality with that product. Quality will build you crediblity, especially when you're just starting. Satisfy your clients with quality products and services.

- A product can consist of physical units, services, information, or any combination, but understand that along with that product, customers are buying service.

Service

- Provide the highest level of customer service possible. People care as much about price as they do about service. There could be more money in services than there is in direct sales. How restaurants do so well? With repeat customers. Why do people build lifelong relationships with their lawyers, accountants, distributors, etc? Because the build a trusting relationship with them. Service is personal and sells for the long term. Why constantly turn over customers when you can keep the existing customers and not have to find new ones.

- People who run a company are just as important as people who sell the products and services. Understanding who controls the company is important because they create the guidelines for how the company operates. Their expectations and efforts will trickle down the chain of command and affect the overal success of the company. If a leader sets the service bar high, chances are the subordinates will follow and the company will be successful and fully operational through referral business alone. Try and be the opportunity that doesn't need external marketing.

Marketing

- A start-up company with a well planned and well executed marketing strategy can largely sway opportunity your way. The problem with huge marketing campaigns are you attract good, solid customers but also unwanted customers. Yes, there is such thing as unwanted customers. Customers not 'qualified' to purchase your product are usually customers who demand more than what the product can deliver. This often turns into financial burdens for a company through logistics of returns, customer service complaints, and negative publicity. Try and create a system that will prequalify only good, and wanted customers.

- Be careful to follow sudden trends. Short term trends leave bad experiences for most customers and clients. There will always be business and profit, but use your senses and learn to decipher what you can and can't benefit from.

Seeing and recognzing an opportunity is vital to building a business. Banking, restaurants, retail, paper routes, and gum ball machines. They started the same way, someone recognized an opportunity and developed a system to make it work. Some have simple systems, while others are more complex systems. Your job as the builder of opportunity is to create the system once you find the market.

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Opportunity can be found everywhere. It's no different than searching for the next big trend, that money making property, or that good stock. You just have to know how to recognize it.

How to Invest Money - Stock Strategies

Creating a plan on how to invest money is important, especially in penny stocks because of the risks involved. The following pointers is an introduction into some basics. It cannot be stressed enough how important it is to continue to learn how to invest money in all types of opportunties because of the constantly changing market climates.

How long should you be invested in a penny stock?
The time spent invested in a penny stock depends on the volume of the stock being traded. You should be weary when investing in penny stocks because a stock with no volume has little market value. Volume dictates liquidity of the stock, and that liquidity is needed to sell the stock. As it's been posted on previous posts, if you invest in a penny stock, make sure you invest in a penny stock that is building equity value or buying assets to back its market price.

What should you do if the price goes down?
If the price goes down, don't sell. You can set sell orders for a maximum of about 30 days if you're with a discount brokerage. Place a sell order for a price higher than your purchase price. If you believe the stock will have long-term value, then it is a good time to buy more.

What are your options for minimizing loss?
Setting sell order every time the purchase price doubles initially gets the principal out and leaves potential for growing the asset. Doing this protects the principal and allows you entry into another stock. Don't put your eggs in one basket. Invest in several different penny stocks. Penny stocks are risky, but when one hits, the returns are huge.

What exit strategies can you use to minimize loss?
This game of investing has no set rules to negate chances of loss. However, exit strategies will help minimize losses. Before entering the market and buying the stock, create a plan. Think of what returns you want to make before selling shares, how long you want to be in that stock, and if and when you will need liquidity or cash. Penny stocks are risky, but if you are prepared to play, you can rationally control your position.

1st rule: Knowledge and information
This game is ruled by knowledge and information. The more you know about the stock, the better your chances of survival in the stock game. A movie in the '80s called Wall Street starring Michael Douglas illustrated the importance of information, although his methods of corporate espionage were illegal. Another movie filmed in 2000 called Boiler Room where a group of "stock brokers" sold illegal securites over telephone to unsuspecting investors who had no informaton about the stocks. Both stories are a testament to the importance of correct and accurate information.

2nd rule: Protect your principal
Get your principal in then out as quickly as possible. Robert Kiyosaki, as well as many other financial authors speaks about this all the time. Buy assets and let them grow. As illustrated above, if you pull out your principal, you'll have both cash and an asset to get in on the next opportunity.

3nd rule: Don't get greedy

It's very easy to get caught up in gains and growth, but remember there is a downside. Losses coming from greed. As an investor you want to make gains, not take losses so make the gains and get out. You'll be surprised how fast little gains add up. Besides, it's better than being in the negatives.

For some interesting new stocks, I found this site that has recently been marketing CEO's of young OTC.BB companies... www.emergingissuer.com.

Learn How to Invest Money - No to Pump and Dumps

The following is a description of what a pump and dump is in the open market as described by the SEC.

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Pump and Dump Schemes

"Pump and dump" schemes, also known as "hype and dump manipulation," involve the touting of a company's stock (typically microcap companies) through false and misleading statements to the marketplace. After pumping the stock, fraudsters make huge profits by selling their cheap stock into the market.

Pump and dump schemes often occur on the Internet where it is common to see messages posted that urge readers to buy a stock quickly or to sell before the price goes down, or a telemarketer will call using the same sort of pitch. Often the promoters will claim to have "inside" information about an impending development or to use an "infallible" combination of economic and stock market data to pick stocks. In reality, they may be company insiders or paid promoters who stand to gain by selling their shares after the stock price is "pumped" up by the buying frenzy they create. Once these fraudsters "dump" their shares and stop hyping the stock, the price typically falls, and investors lose their money.

www.sec.gov/answers/pumpdump.htm

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Pump and dump schemes are out there, but with a trained eye, it isn't hard to see what is and what isn't being pumped. The difference, however, lays in the general value of the stock itself. Is the stock worth anything? A good stock will be one not with a manifested stock price, but actual value in hard assets. That value is what make the stock's price hold and sustain itself when traded in the open market. So when you're learning how to invest money in a stock, do the proper research and due dilligence and know what the stock owns, and base your buy from there. Like it's been said before, "There's no place for emotion in the open market!"

Emotional Mistakes

I've been asked for advice recently regarding what I think about the current state of the stock market. It's recent declines has impacted the marketplace and reitterated the key differences between those who should participate in the stock markets and those who should give it a second thought.



Participating in the stock market, if you don't know what you are doing, is the riskiest type of investment vehicle you can get into. However, with that high level of risk comes a high level of reward. As a participant in this game, you have to first understand that risk and build a portfolio using only investible assets meaning, ONLY USE MONEY YOU CAN AFFORD TO LOOSE! This is the point where most people make their mistakes and end up in financial distress. Know what you are doing, and don't let the "greed glands" grow.



Also, understand that the markets will always have dips and slides. A healthy market, like a good stock or index will have to have some sort of upward and downward movements every now and then. Without these changes, there would be no movement in the market and thus no profits to be made. As the old adage goes, "What goes up, must come down." The problem that the average investor doesn't understand is when a stock price goes down, it doesn't mean it is a bad thing, nor does it mean you lost money. It just implies you've lost some earnings in the short term, and possibly missed an opportunity to make some profits.



The common mistake:

In the stock markets, a loss is only incurred if you sell your stock when the price drops below your buy price. Meaning, if you buy a stock at $5/share today and the stock drops to $3/share tomorrow and you sell, then you lost $2/share.



What professional investors know is inevitibley the market will correct itself and the price will go up again. Professional investors know not to let their emotions take over, not to give into fear of loss, and most of all, NOT to take a LOSS! Another classic adage, "You don't invest to buy high and sell low."



The moral of the story: There is no space for emotions in the open market. Investing isn't personal, it is business. And most importantly, only invest what you are willing or able to lose.

Securities vs. Forex

Securities or a security is typically a certificate or an electronic book entry of ownership of a portion of a company as printed or allocated by an issuer. The issuance of securities are regulated under the jurisdiction of securities commisssions in their registered regions: provincial, state or country.

Foreign Exchange is the buying and selling of currencies on the open market. Foreign exchange or forex is a $3.2 trillion dollar, unregulated market built on the premise of predicting short term movements in the values of currency pairings.

Why pick securities over forex? There have been many recent current events that work for and against both types of openly traded investments. One very current and unfortunate event occured in New York just over a week ago which in turn affected many unsuspecting investors around the world. The fraudulent behaviors of a company called Razor FX,for example where those in control of the funds stole $68 million US from investors using a ponzi scheme.

Securities on the other had have taken a huge dip as the markets in the past week have hit extreme downfalls, as much as 300 point hits, with the speculation of recession in arms length.

The key differences between forex and securities is obvious and simple. Forex is unregulated leaving the gap for unethical privately managed fund managers to take advantage of investors who trust their funds are being used by professional investors. Also, private opportunities are often controlled by very few people. As we all know from the "Lord of the Flies" one head with full control leads to chaos. Responsiblity must be and should be share amoung the masses. With that said, the securities market is regulated, and with companies registered in the United States, they operate under the strictest of accounting standards and public transparency. Further, corporations are not controlled by one head, but by a board of directors, an elected CEO, and shareholders who together dictate the usage of funds. The usage of funds is made public knowledge in respect to securities regulation, making fraudulent activities difficult to achieve.

So which way is the better way? Securites is the way in my opionion as there's a lot of opportunity for returns if you know how to read the charts. One such company that I've been watching is traded on the Nasdaq. It's called Fine Line Holdings (FNLH), a penny stock with huge opportunities as they seem to be acquiring a range of assets, among them are wellness spas, an animations/cartoon company, and $125,000,000 worth of land in Cancun, Mexico.