Hi ScottsBlog-
Both fundamental and technical analysis have
their place in investing but most people fail to
understand the backdrop of the market that
dictates how you use each. Let�s say you were
selling a small expanding car repair shop chain
with say 3 stores, for instance, and could prove
that the company has healthy with steadily
increasing profits. You could justify a high price
for the business because of the steadily increasing
cash flow that the new owner will reap for managing
the business.
http://www.walletdoctor.com/stockcd.htm
Makes total sense on the level of a sole proprietorship
but in Wall Street tries to convince you it is same
with corporate earnings and stock dividends
but they are trying to dupe you and here is
why. First of all executive corporate insiders
are under no obligation to pay out any of the
corporate profits. They can easily justify this
by plowing profits back into the company.
Even worse they use profits to buy the company
stock at high price levels when they want to cash
out of their stock options they paid nothing for or
even to give themselves more perks.
http://www.walletdoctor.com/stockcd.htm
By the way the insiders have fought tooth and nail
against the Financial Accounting Standards
Board (FASB) to ensure that corporate stock
options are not reported as a cost to the company!
Even if you buy a stock on the primary market you
still have to sell it on the secondary market. This
is why I tell people that the is a special college
for executive corporate insiders called Screw
University (For instance my undergraduate
degree is Indiana University also known as
Indiana U.).
http://www.walletdoctor.com/stockcd.htm
On the secondary market you are buying the
stock from another person not the company itself.
That means that people really only care about won
thing. They think to themselves, �Can I buy the
stock at today�s price and sell it for more down
the road in the future?� This means that the stock
market is really a big pyramid scheme where people
can legally buy in at any price and they hope that
they are among the first before a big price rise
takes off. To learn how to make potentially
huge amounts of money off of this fact go here now!
http://www.walletdoctor.com/stockcd.htm
-Scott
Ps. The price of my Bulletproof Stock Investing
home study course is increasing $100.00 next
Saturday on February 18, 2006 due to the high
value of the course and the hard cost of producing
and shipping the course. I am letting you know so
that you are not caught of guard because the course
price will never be this low again.
http://www.walletdoctor.com/stockcd.htm
If you wish to cancel your subscription, simply click once on the link below.
http://walletdoctor.com/cgi-bin/arp3/arp3-un.pl?c=206&p=6342&scope=all
