Options as a Strategic Investment » Market

Trading Stock Options: Basic Option Trading Strategies and How to Use Them to Profit in Any Market [Paperback]

admin — Tue, 22 Jun 2010 16:52:56 +0000

Many traders and investors dismiss stock options as either too complex or too risky. But did you know that options can be easily understood and the risk easily managed? This book will show you the basics of stock options in easy to understand terminology. You will be able to read option quotes with ease, get an option enabled trading account, and trade basic option strategies in no time. In Trading Stock Options, experienced option trader Brian Burns explains the basics of stock options and shows you how to trade the most successful option strategies. As you begin your journey on the option path, you’ll have the luxury of real-life trade examples to show you the way. The diagrams and charts help turn the complex world of options into easy to visualize and simple to understand strategies that even the most novice of traders can utilize. Trading Stock Options will show you how you can use options to: * Get paid to buy and sell your favorite stock * Purchase st (more…)

Creative Real Estate Investing for Flat and Down Markets – Beating the Bursting Bubble!

admin — Tue, 19 Jan 2010 11:25:11 +0000

I find the current media coverage about the “Bursting Real Estate Bubble”to be priceless for those of us who are investors. They talk about falling house prices which will only bring gloom and doom for homeowners and real estate investors a like. I can understand where they are coming from; having little or no knowledge about investing and that is OK, because it just creates more opportunity for you and I. Real estate is cyclical and always has been. There was a large national article published that stated Las Vegas real estate had completely capped out and there was no place for it to go but down. Does that sound familiar? If so, you may want to think again. That article was published nearly half a century ago! Has real estate gone up in value in Las Vegas in the last 50 years? You bet, and not just a little! Now does that mean real estate is going to keep going up like it has the last few years? I wouldn’t plan on it, particularly in the short term, however that’s what makes this media coverage so invaluable. *It creates fear that scares off a lot of people from investing (creating more opportunity). *It eliminates aggressive scam investments (as we saw rampant with builders in Florida and Las Vegas the last few years). *It makes people question the value of their properties (creating more flexible sellers). Here is something to consider: do you know any ultra successful real estate investor that is afraid of flat or declining house prices? Quite to the contrary, knowledgeable investors understand when markets are flat or down it just weeds out beginning investors, makes people panic and means more opportunity. What’s important to understand is just as real estate is cyclical, so are the amount of buyers and sellers in a given market. When markets are up, you’ll have to spend more time finding motivated sellers, but you have the benefit of appreciation on your side. When markets are down, you can’t depend on appreciation, but you’ll have a lot more motivated sellers to work with. In fact, when markets are down, you usually have to let “good” deals go, so you can take advantage of the “best” deals! We’re not just buying properties and hoping that they will appreciate or go up in value. That’s not investing, that’s speculating! Your completely dependent on future growth that is entirely out of your control. That’s a conventional mindset and will not work in flat or declining real estate markets especially in the short term. Like any business, you need to make well calculated decisions. In real estate, that includes making creative, risk free offers and setting up your exits appropriately for the specific circumstances. There are better and more creative real estate investing strategies for down and soft markets like assignments, lease options(as a seller or a “sandwich”), foreclosures, short sales, wholesaling and “subject to” arrangements. But even when doing rehabs or fixer uppers (which are not typically recommended in down markets) there are still good ways to make a good profit with the right system and proper planning. For example, let’s say you are in a market depreciating at 10% a year, you would need to factor in the time to make the rehab repairs plus the time to sell (with a cushion), then subtract market depreciation during that time. So if an area was depreciating at 10% a year and you had a property that would take 2-3 months to fix up and 2-3 months to sell, you would want to subtract an additional 5-6% from the retails sales price when making your offer to a seller. There’s really no issue with doing rehabs of fixer uppers in down markets, you just need to factor in depreciation accordingly. This is why faster, lower risk, more creative real estate investing strategies are better to use during market declines. The point is market conditions will not determine your success; it’s how you approach your market and do what is appropriate for the current trends. When you structure risk free deals and make calculated decisions, the market conditions will never be a determining factor of whether you make money or not! Copyright © 2007-9 Creativerealestatehelp.com. All rights reserved.

Investing in Stocks or Managed Futures â a Wise Decision?

admin — Mon, 18 Jan 2010 23:27:28 +0000

The most tested wealth creation tool is investing in stocks. Once you have made up your mind to create wealth over a long-term, it is advisable that you detect the areas in your budget where you tend to overspend. Adopt the corrective measures and utilize the money saved from such correction in investments.

Invest in the stock market :-

For those who are interested in investing, acquiring knowledge about the financial world and its fundamentals, this investment is a must. Keeping a constant watch on the financial market and its daily events gives investors an idea about what investment tools are available in the market currently.

The investors must find out what kind of investments fit their long-term goals and accordingly invest in them. The mantra for success in the stock market is making the right choice and sticking to it for a long time.

Stick to small stocks initially:-

For many investors, investing in the stock market seems to be very exciting. It is however advisable that they do not get carried away by the excitement and stick to only small investments in the beginning. In this way you will get an idea of the crests and troughs of the stock market without placing yourself at a great risk.

For the beginners it could be a good idea to start investing in the stocks whose prices have constantly increased over a period of time. In case you plan to sell high, it is important that you know what your tolerance level is, in case the stock does not perform as per your expectations.

Understand the market :-

You must do adequate research before you begin investing in stocks. You must understand the market operation and particularly how the stocksâ (in which you plan to invest) past performance has been. Such research could take some time but is very important and determines your success in the market.

There is professional help available in the market to guide the investors towards wise investment strategies. You can seek help from reputed brokers or brokerage houses to help you select the appropriate investment option, especially if you are just beginning. After you have been in the field for quite sometime, you can choose to make decisions on your own and can afford to buy and sell stocks without any professional help.

Invest in managed futures :-

Managed futures are investment options and are similar to mutual funds. Managed futures, are however, positioned in government securities and are managed through future contracts or various options on future contracts.

Those who invested in managed futures just few years back have made double the money they originally invested. Analysts are generally very optimistic on the future of managed futures.

Managed futures come across as an attractive investment option because of their potential of reducing portfolio risk. Market studies indicate that when asset classes are combined with alternative investment options like managed futures, risk significantly reduces. This is because such a combination diversifies the portfolio through negative correlation between various asset groups.

Options Besides Stocks For Investing

admin — Sun, 27 Dec 2009 11:34:14 +0000

The idea is as simple as it can get-acquire a land property and resell it for a profit. Investing in lands or real estate can be rewarding in many ways. With enough money at hand, one can simply put up a two-bedroom apartment and have it leased. The rent is a regular income already. The land itself can be leased to interested parties, without additional pay out for construction.
Lands are considered assets, and as such, they appreciate in value as time passes. Especially when the real state is a prime property or located in a commercial area, financial institutions usually take them as collaterals in exchange for loans as much as 80 percent of the property value. The investor, then, can leverage on the loan through other investments, and earn by the time of maturity.
Compared to stocks or bonds, real property is more stable in terms of pricing, since it is less liquid. It may prove disadvantageous to some investors, but for those who prefer a more long-term return on investment, they will do well to consider buy-and-sell of lands, with or without fixtures. The flipside is that this kind of investment requires a sum of money.
Insurance Policies
There are life insurance policies that offer dividends, as annual premiums are paid over a stretch of ten to fifteen years. The return is not only with the interests earned, but also with the insurance coverage. It can be risky, because mismanagement can happen to some insurance companies. It is best to entrust investment with those who have proven track records, and whose portfolios are also diversified.
Lend to Others
Government corporations and other businesses sometimes sell bonds to the buying market in order to raise funds for expansion or infrastructure on a large-scale. To invest in bonds is simply to lend one’s money to others at an expected interest on returns, at a certain maturity date. The usual schedule of maturity for bonds is semi-annual. Prospective investor must be careful of bonds being sold at interest rates higher than what the government offers. The returns on investment may also fall short of the inflation rates, as bond prices usually decline when there is an increase in interest.
The Piggy Bank
Yes, it pays to save up. This is the earliest form of investment, but also one that takes so much discipline and diligence on the part of the investor, who is usually a middle-income employee. It should be wise to have a specific intention for it, and not just for the sake of stashing money, so that there is a clear objective on how much money should be put aside. Some people are saving up for emergency situations, but most if not all do so for retirement. The investment is secure and easily accessible since it is liquid. The return, however, is minimal; banks usually provide, at most, only a five-percent annual interest rate. But savings done on a long haul can reap benefits for the investor. That is, with enough patience and self-control. It may not be a good investment strategy for impulsive buyers.

Strategic Window in Dynamic Market

admin — Sat, 28 Nov 2009 02:15:23 +0000

What is a Strategic Window?The term strategic window is the limited periods during which the “fit” between the key requirements of a market and the particular competencies of a firm competing in that market is at an optimum. In this paper we will use VXL Instrument’s case to elaborate the concept.What is VXL’s Business?VXL Instruments is enabling companies around the world build a flexible, secure, manageable and cost-efficient IT infrastructure. Its range of thin client devices helps enterprises beat the cycle of desktop obsolescence, free internal resources from non-productive functions, and save millions of dollars that is spent in securing systems. The thin client is a server-centric computing model in which the application software, data, and CPU power resides on a network server rather than on the client computer.VXL Instruments won “Highest IT-Hardware Exporter Award in Non-SSI category” for year 2006-2007.VXL’s DilemmaVXL Instruments is leading manufacturer of thin client devices and commands 11% share in global market. Its major chunk of sales comes from export to US and EU. The company is trying to explore new market in India for its thin client devices. Competitors like Wyse and HP offer diverse range of product not only in west but also in India. Therefore, it’s high time that company starts thinking about Indian market.How to market TC in India?Company’s products like TC23xx and TC73xx are reliable and cost-effective. The (thin client) TC can help in eradicating various pain in server based computing. It is very useful in case of SME’s (Small and medium scale enterprises) where computing requirements are pretty specific. In case of sectors like hospitality, we need to explore various value unlocking features so that they can charge a premium. The major challenges are following:1. How to provide maximum utility without making product too much complex?2. How to convince existing clients to change from fat clients to thin clients?3. How to market TC in India?Actually the answer of third question will give us a frame work for finding the answers for first two questions.I will consider VXL a minimum risk taking company. It’s more product centric than customer centric. Therefore, its products are world class but market penetration is not that impressive. Presently, VXL markets its products through client interaction and third party distributors like Priya Limited. This approach reduces marketing expenses but the approach has its own limitations.In 2005, Mumbai-based distributor Priya Ltd invested $2 million (around Rs 10 crore) in equity in VXL Instruments. The investment was part of the trade finance arrangement that gave VXL $9 million (around Rs 45 crore) aimed at funding its growth.VXL chalked out expansion plans and a growth strategy with a view to increase its market share of thin client to 25 percent by 2007-2008. It has made inroad in different verticals like ERP, Health, Telecom, Education and Banking with client list including SAP Belgium, Birmingham City Hospital UK, DOT India, British Telecom, IIM Lucknow, IIT Roorkie, Haga Bank Jakarta and HDFC India etc. But presently its market share is much below its target.Product Awareness & Customer PerceptionWe can roughly divide the customers into two categories:* Techno Savvy Customers with financial Muscle: These type of customers, already know about the products (TC) and we need to convince them that thin client is a better option over Fat client. For example Velankani group’s upcoming 5-Star hotel in Electronic City, Bangalore. The Velankani’s are in IT and infrastructure and they are aware about technology and its implementation. According to Mr. R. Shiva Kumar (Manager Information System, Velankani), these types of customers should better be approached when the product is in its embryonic stage. Once they acquire fat clients (FC) for their project, they won’t be interested in TC due to switch over cost. Here we need to market TC as a device which will not only reduce the total cost of ownership but also provide simple solution for all comfort requirements.* Less Techno Savvy with Medium Range Investment Capabilities: These types of customers don’t have their own IT department. They generally play safe and go for the fat client technology being used by other players in their segment. More over they consider their computing needs are minimal and don’t find IT investments much attractive. Here, we need to educate them about various advantage of server based computing and advantage of TC over FC. These types of firms should be approached for providing total solution.Market RedefinitionFrequently, as markets evolve, the fundamental definition of the market changes in ways which increasingly disqualify some competitors while providing opportunity for the others. The trend towards marketing “system” of products as opposed to individual piece of equipments provides many examples of this phenomenon. We will discuss this point with the help of Docutel case.Docutel: This manufacturer of automatic teller machine (ATM’s) supplied virtually all the ATM’s in US up to late 1974. In early 1975, Docutel found itself losing its market share to large computer companies such as Burroughs, Honeywell, and IBM as these manufacturers began to look at the banks’ total EFTS (Electronic Fund Transfer System) needs. They offered the bank a package of equipment representing a complete system of which the ATM was only a component. In essence their success can be attributed to the fact that they redefined the market in a way that increasingly appeared to disqualify Docutel as a potential supplier.ConclusionMarket redefinition is not only limited to the banking industry; similar trends are underway in scientific instrumentation (Steel, Cement, and Aluminium Industries), process control equipments (Siemens, Vesuvius and SMS redefined the market); the machine tool industry, office & household equipment (VXL is already a player) and electronic control gear as some of the other examples. In each case, manufacturers basing their approach on the marketing of individual hardware items are seeing their “strategic window” closing as computer systems producers move in to take advantage of emerging opportunities. HP has capitalized sufficient TC market by virtue of some aggressive M&A. In India companies like HCL Technologies and Satyam are planning to enter in TC market as a total solution provider. Wipro is also exploring opportunities in SME. We can expect Wipro to venture in this segment, in near future.As the competition grows SME’s are also becoming lean. Most of firms are following make-to-order philosophy of manufacturing. All these need free flow of materials, information and finances imperative. As the practices are changing, many new applications of networking technology have evolved. Here, we can see a scope for VXL being a consultancy provider and not a mere product manufacturer.References:* http://www.vxl.net* The Windows Embedded Family: An Integrated, Scalable Platform for Building Thin Client Devices(Microsoft)* Strategic Window: Derek F. Abell(Journal of Marketing)

Options as a Strategic Investment » Market

Trading Stock Options: Basic Option Trading Strategies and How to Use Them to Profit in Any Market [Paperback]

Creative Real Estate Investing for Flat and Down Markets – Beating the Bursting Bubble!

Investing in Stocks or Managed Futures â a Wise Decision?

Options Besides Stocks For Investing

Strategic Window in Dynamic Market

Investing in Stocks or Managed Futures â a Wise Decision?