Archive for July, 2006

Review: Reuters Research Reports

Wednesday, July 19th, 2006

A couple days ago I revealed a way to get a free research report from Reuters.

I downloaded a research report on a company I’ve had some interest in for a while, and compared it to other public data I’ve found online from SEC filings, earnings reports, and other sources.

On the surface, the Reuters reports don’t reveal anything that isn’t already available online through SEC reports or press releases. However, the report is well organized with 12 pages of aggregated data from the last few years.

Normally, these reports come with a $20 price tag, which …


Update on Rental Property

Wednesday, July 19th, 2006

After I got the lease signed on my first rental property, everything went fairly smoothly and I had no complaints…

…then it got hot.

Evidently, the air conditioner was blowing air, just not cold air.  After a day of elevated nerves and frustration that the air conditioner might be my first major expense, I was relieved to find out that it was only a loose wire on the back of the thermostat.

Whew!  While it did cost me about $60 to fix the problem (a hefty $49.99 for the service call and $10 to check the unit and screw the wire back to the box), it …


Get A Free Reuters Research Report

Monday, July 17th, 2006

TD Ameritrade has joined up with Reuters to offer a free research report on the company of your choosing.

Just use the code Q2EARNINGS06 when you order a report from Reuters.

Each report contains:

- Historical stock price trends
- Complete company financials
- Key ratios and statistics
- Consensus estimates and analyst recommendations
- Income statements, cash flow reports, etc.

Reuters reports are valued at $20 a piece, so I figure it’s worth a shot to take them up on this offer.  Having never read a Reuters report, I’ll let you know what I think of their content.


High Yield Portfolio Options

Monday, July 17th, 2006

I’ve always been a big fan of high yield stocks.  In particular stocks that are solid enough to throw into a retirement portfolio and forget about for a few weeks.  Afterall, as long as the yield stays the same, you’re not worried about the day to day fluctuations of the price.

In looking through a list of high yield stocks, an old addage comes to mind: “If it’s too good to be true…”  well, you know the rest.

When looking for a high yield stock, you’re looking for good fundamentals in the company iteself, but also a stable dividend history.  When looking at many Canadian …


Interview: William Yeh, President, SogoInvest

Friday, July 14th, 2006

David Houle’s post on Sogo Invest and how they have cut commissions by eliminating the middle man sparked my interest, and I was fortunate enough to land an exclusive interview with Sogo Invest President, William Yeh.

My first reaction is that Mr. Yeh is very much in tune with what the every day investor wants in an online trading brokerage platform: low prices, ease of use and great service.

The following is a summarized transcript of our conversation:

Grant: Mr. Yeh, you’ve got a solid background in the brokerage industry with the development of Genesis Securities, LLC and the Laser trading platform.  Tell me a little about the Laser platform.

William: My history is in trading futures, and I believe in utilizing automation and electronics to remove the human hands from trading, making the whole financial process as fluid as possible.  That’s why we created the Laser system.

We developed the Laser trading platform to interact directly with the markets, and in turn we eliminated the need to buy information from a third party.  We get all of our data directly from the NYSE and the NASDAQ.  We also clear our own trades, eliminating yet another third party.

The Laser system was developed for the professional trader, and it has retained a Platinum rating from the NASDAQ.  Other trading platforms such as E*Trade have a Silver rating.

Grant: You’ve got great technology for the professional trader, and you trade between 2-4% of the daily volume on the NASDAQ.  What inspired you to develop Sogo Invest?

William: We really developed Sogo Invest for the simple, every day trader. While the Laser system is used primarily for the professional trader, we are taking that technology and putting into Sogo Invest.

Grant: How can Sogo Invest undercut the rest of the online brokerage markets in terms of commissions and fees?

William: Since we buy our own data directly from the NASDAQ and the NYSE and we clear our own trades, we’ve eliminated many of our third party costs.  We pass these savings directly on to our customer.  We could raise our commissions to $10, $8, or $6, and enjoy a larger profit, but we want to pass these savings on to the customer to get more people to join us, and more importantly stay with us.

The large amount of volume we clear every day also helps keep costs down, based on the economy of scale.

Our price speaks loudly, but service is also key.


New Short Exposure to the Market: ProShares

Thursday, July 13th, 2006

Does today’s market got you feeling bearish? 

The current volatility in the stock market has brought a lot of money to the sidelines to take a seat on the bench while waiting for some market stability.

The general consensus among novice investors is that if you’re not long in the market, your money can be better utilized in investments like bonds, CD’s, or just your common savings account.

While this approach is fairly conservative, investors should understand that there are two sides to the market, the long side, and the often misunderstood short side.

Traditionally, when you buy a stock you want the stock price to go up.  However, …


SogoInvest. The Lowest Commission Out There.

Tuesday, July 11th, 2006

Futurist David Houle (EvolutionShift.com) has revealed a new player that has entered the lineup in the discount brokerage game.  SogoInvest is making their public debut today offering up one of the most attractive brokerage packages out there for the individual investor.

What makes SogoInvest so competitive?  For one, their dirt cheap commissions starting at $3 per trade for investors with a Bronze account.  Want to cut your commissions even further? Opening up a Gold or Platinum account and paying the $10 or $15 monthly subscription fee will knock your commissions down to $1.50 and $1.00, respectively.

On top of …


AAdvantage Rewards Program

Friday, July 7th, 2006

The options for rewards programs are endless it seems.  Cash back, frequent flyer miles, hotel points… pick your reward.

Some rewards programs are better than others, as I found out on a recent trip to Europe.  I am a member of American Airlines AAdvantage program, which I earn a mile for every dollar I spend on my AAdvantage Citi card.  I also earn up to 10 miles per dollar depending on where I eat under the dinning program.

Sounds pretty nice, right?  Who would turn down a free ticket on your next vacation?

That’s the catch with the AAdvantage program. Chances are, program seats aren’t available on the flight you want to take, or on the day you want to take your trip. In addition, you might end up with a long layover (overnight) at an intermediate location somewhere between your home and destination.

In preparing for our trip to Greece, I inquired about using miles to get from the States to Europe.  We needed to leave on a Wednesday due to vacation days off from work and the time constraints of a wedding we were attending.  Unfortunately, the rewards program could only get one of us there, and we’d have to stop overnight in London.  Then, we’d have to buy another ticket on the same flights, which would cost more than a ticket straight through to Athens…  In addition, if we did buy the individual ticket, there is no guarantee of sitting next to each other.


Natural Gas Supply Up 73 BCF

Friday, July 7th, 2006

Natural gas inventories rose 73 bcf for the week ending June 30, 2006 according to the energy department.  Total inventory in storage is just over 2.6 tcf, and up 425 bcf over year ago inventory.

Natural gas futures are currently down $0.09 on the news.

Commentary
The increase in supply was not unexpected, as most predicted an increase between 65 and 75 bcf.  As for stocks, it means that we should see a further decline in price as supply continues to increase and demand remains flat.  We have yet to see increases in demand due to gas …


Advantage Energy Income Fund (AAV)

Thursday, July 6th, 2006

In my search to diversify my retirement portfolio, Zach at the Upside Surprise blog turned me on to Advantage Energy Income Fund (AAV: chart).

Advantage Energy is a Canadian oil and gas fund that pays a ~15% dividend through monthly distributions, making it a candidate for my Roth IRA.

After digging through the SEC filings, and listening to the latest conference call (accompanying presentation), I have only a few reservations about AAV, although those reservations may be short lived.

Advantage is undergoing a merger (recently approved by shareholders of both companies) with a company called Ketch.  The merger will provide year-round drilling opportunities that will take advantage of Ketch’s large undeveloped land base giving opportunity to low risk infill and step out drilling.