Category Archives: Investments

High Stock Prices Fueled by “Easy” Money

Investments, , , , ,
Going up!

The general description of shares on the stock market at the moment can be described as “expensive” according to many observers.

A report in Yahoo Finance stated that “One reason that folks are paying up for richly priced stocks is that money – for many – is not much of an object right now.’’

The report added that American companies have added about $700 billion in debt so far in 2015, and repurchases of stock are on their way to going beyond a value of $600 billion.
Stocks for US companies are high-priced. The median stock carries a higher valuation than almost all of the time in the last 40 years, Yahoo stated. The largest 100 companies in the world today are worth an enormous $16.24 trillion. That amount is close to double what those companies were valued at immediately following the recent financial crisis.

According to PwC, Apple Inc. is the most valuable business in the world, with a market capitalization of $725 billion, which conducted a study in March. Since 2009 the maker of the iPhone and many other popular consumer electronic products has increased its market value by 671%. Only 6 years ago Apple was ranked the world’s 33rd largest company and worth about $94 billion.

The second largest company in the world is Google, with a valuation of $375 billion, more than double its worth in 2009 of $110 billion. Six years ago it ranked in 22nd place.

Stansberry & Associates Likely Cause of Dramatic Stock Price Rise

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Stansberry and Heat Biologics
Share price rose after Stansberry recommendation

A recommendation by an investment newsletter, Small Stock Specialist, published by Stansberry & Associates, appears to be responsible for a surge in the stock price of Heat Biologics, a company that develops treatments for bladder and lung cancer.

In mid-August it was announced that Heat Biologics, a Durham, South Carolina-based company, had received $7.5 million in debt financing, enough capital to pursue the development of cancer-fighting drugs through the first quarter of 2016, and perhaps beyond.

That announcement, which was made on a Monday, came immediately after Heat Biologics’ share price soared by 61 percent during the previous Thursday and Friday. That incredible increase in stock price came right after Stansberry & Associates’ investor’s newsletter, Small Stock Specialist, recommended investors purchase the stock.

“Considering Heat Biologics’ revolutionary cancer approach,” the Stansberry newsletter stated, “the stock is a downright steal at current levels.”

Heat Biologics received their financing from Square 1 Bank, a fellow Durham-based company. The bank has a track record of working with small companies in the Durham area.

When Stansberry made its assessment, it was not so concerned that currently Heat has no products on the market. They focused instead on the fact that Heat is deep within the development of drugs for bladder and lung cancer. They are already conducting Phase 2 trials of the bladder cancer treatment, with initial results expected during the third quarter of 2016. Phase 2 trial of the lung cancer drug has already commenced. Jeff Wolf, CEO of Heat reacted to the announcement of the new financing:

“The strategy is to continue doing what we are doing and progress our clinical trials,” said Wolf.

How to Find Financial Independence

Investments, ,

Is your boss too bossy? Are you overloaded with work at work? Is your salary not commensurate with the job you are doing? Then you have probably dreamed of starting your own business, but have just not been able to get up the confidence to set out on your own. These six little words can be the beginning of finding your own way in the business world: “Find a Need and Fill It!”

“These words can make money for you, give you security, give you confidence in yourself, give you happiness in fulfilling a mission, give you gratification in effective response to a spiritual call…Find needs! Needs that are ever present, needs that are around you, above and below you!“

These words come from the classic book “How to Attain Financial Security and Self-Confidence without risking your job or your savings,” by Marvin Small. Simon and Schuster published this book in 1953, but its message is as fresh and true as ever. Those six words can be the mantra of the capitalist enterprise, creating businesses which fill consumer needs.

“No business can endure, no job can exist, unless it fills a need. If the need is small, the return is low and the satisfaction of accomplishment must be lacking. If the need is big, the return is large and the satisfaction and stimulation are great.”

The ideas in this book are neither new nor unique. What is different is Small’s telling. Each story demonstrates how ordinary, average people without much capital were able to create successful businesses which fill old and/or new consumer needs. The stories all serve to illustrate the fact that you do not have to search hard or long to discover needs which have not yet been met.

“Go through your home looking for trouble and seeking improvements. Hunt in your factory, your office, your school, your garage, your church—wherever your interests touch your community.”

Follow this advice and who knows, maybe you will succeed to gain financial freedom.

Amazon Stock Hits Record as Business Expands

Investments,
Amazon Stocks Hit Record High

Despite posting a net loss for the second quarter of 2013, Amazon’s stock reached a new high point of $313.62, on Friday, and closed at $311.70, an increase of 2.7 percent.

The rise was fueled by fast expansion at home with profits in its domestic market also heading up.

“Their biggest market looks really healthy,” said Matt Nemer, an analyst at Wells Fargo.

Amazon is a giant on-line retailer which is in the midst of a re-make, trying to sell technology-based products such as tablets and cloud computing services to large corporations and even political entities, such as governments. It is making this change-over while simultaneously growing their overseas market in such places as China.

So far Amazon has spent billions on this new look which eats into earnings.  Never mind say investors, trusting the direction that chief Executive and Founder Jeff Bezos is taking them. They are confident that Bezos can pull it off and they will reap big future profits. Investor confidence is what is propelling Amazon’s stock to continue its upward climb.

traducción español

 

Hedge Fund Compliance 101

Investments,

When it comes to working with hedge funds, there are various rules that have to be followed.  This is known generically as hedge fund compliance.  However, there are not as many rules for hedge fund activity as there are for activities of other investment funds, but still some exist that are absolutely crucial for their continued healthy functioning.

Thus, for hedge funds to gain credibility, they need to establish a compliance program.  Within this, an officer is appointed to oversee compliance requirements and the fund’s activities. It is essential the officer keep abreast of the types of clients they can accept, keeping up with advertising laws, and more.  Hedge fund compliance officers come from a wide variety of backgrounds including: law, business and finance.  However, they are at the same time required to have a comprehension of all areas of hedge fund activity as well as knowing how to decipher regulations in full.

For the hedge funds, regulations are helpful as they enable managers to engage in far riskier activities. Vis-à-vis compliance this involves the way hedge funds are able to advertise; how the money invested in the fund is to be handled and more.