SECONDMARKET’S Are Options For Investors


secondmarkets SECONDMARKETSAlthough some astute investors are unaware of the name, SecondMarket’s is the largest player in the alternative investment space. The company has been under scrutiny from regulators. Although SecondMarket’s is limited to “wealthy investors”, the SEC has been concerned with the lack of volume and transparency in these types of transactions.

However, SecondMarket’s does fill a void. They enable employees of sought after private companies to sell their shares to qualified buyers, while their company is private, and before there is an IPO. Now what is wrong with that ? I thought we were in a free market.

For instance, let’s assume an accredited investor wanted to position himself in Facebook or Twitter before they IPO. Why shouldn’t that buyer be able to pay able to pay a fee to purchase shares from sellers who are mostly employees or ex-employees (Who will also pay a fee) who may want to cash out and buy a new home, or pay for a child’s education, or even just simply retire ?

SECONDMARKET’S Investments Soar


Now after reading a recent report from SecondMarket’s they seem to be on the right path. The third quarter generated over $167 million in transactions
,which was up 75% from Q3 from the prior year.

Keep in mind that this trend may increase once more qualified investors actually become aware that they actually have access to Pre-IPO companies that were formerly predominantly reserved for VC type investors.

Speaking of VC, SecondMarket’s also just received $15 million from a venture fund and the company is now valued at $200 million.

So if you are interested in following the VC game and are looking for activity and prices on some of the up and coming, sought after private companies, check out SecondMarket’s website for some quality information.

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Socially Responsible Investments Gaining Momentum


socially responsible investments SOCIALLY RESPONSIBLE INVESTMENTSWith the recent Wall St protests, going on, socially responsible investments might start becoming a topic that is discussed by some in the near future.

The goal of many socially responsible investments is to basically match their own personal values with the vision and mission of a publicly traded company.

To make the picture a little clearer, when purchasing individual equities, some socially responsible investors who lean to the political left, stay away from nuclear stocks for instance. While many socially responsible investors who have more right wing views might steer away from investments that specialize in stem cell research.

In other words socially responsible investments can fit investors of any political persuasion, depending on your view of the world.

Investors can also invest in socially responsible companies through mutual funds, if they are not comfortable buying individual equities.

The purpose of this entry is not to debate the pros and cons of socially responsible investments. We are just trying to guide you on a few points.

Socially Reaponsible Investments Have Fewer Lawsuits


For instance those who run these types of mutual funds have a screening process and often lean left because of the future prospects involving green technologies. They stay away from gun and tobacco stocks and companies that are more prone to having environmental issues like chemical and nuclear related names.

The returns of some socially responsible mutual funds are up for debate. Advocates of socially responsible investing often point out that there is usually a larger chance for lawsuits in less socially responsible companies. While skeptics point out that companies that favor values over growth, often miss opportunities which can hurt profitability.

Just keep in mind that we are nearing an election year and the country is becoming more polarized than ever,so stay tuned for some individual highlights on socially responsible investments.

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FINDING A FULL SERVICE STOCKBROKER Takes Patience


finding a full service stockbroker1 FINDING A FULL SERVICE STOCKBROKERFinding a full service stockbroker not an easy decision, especially in this day and age of “at your fingertips” information. Don’t get me wrong, Finding a full service stockbroker is still useful to some, but there are many factors to consider.

CAN YOU MAKE YOUR OWN DECISIONS ? I think this is the most important aspect of weighing full service versus discount. Ask yourself this question. Do you have the time and knowledge to read research, articles and charts ? If the answer is yes, then you should seriously consider working with a discount broker with at least your non-essential funds. If you are fairly astute there is no reason to pay the increased rate of commission.

DO YOU MATCH WITH YOUR BROKER ? Some stockbrokers specialize in equities and others focus on bonds or mutual funds. Their is also a completely different breed of financial advisor who steers his clients towards managed money in exchange for a fee. The key for the client is to not try to ask for stock advice from a broker who buys mainly mutual funds or vice versa. Finding a full service stockbroker is more than the firm the he or she represents or the sales presentation that is given. Both the broker and client need to be on common ground.

FINDING A FULL SERVICE STOCKBROKER Involves Research


ASK FOR REFERENCES ? For some reason clients rarely do this. Think about it this way, you are finding a full service stockbroker, he isn’t picking you. Ask for a few different clients to call, and if the broker is worth their salt, the names will be provided. While references shouldn’t be the sole factor in your decision making process, at least this way, you will have a feel for how the broker operates.

HOW MUCH MONEY DOES HE MANAGE ? This is another question that slips through the cracks when finding a full service stockbroker. There are two ways to look at this. It is not neccessarily good to work with a broker who has $500 million under management, but it’s also not wise to give your life savings to someone who is inexperienced and freshly out of a training program. You may get limited attention from the more established super broker and literally too much from the one with only a few clients and limited assets in his book of business.

Check back for additional tips on finding a full service stockbroker next week.

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INSIDER TRADING is Legal


insider trading1 INSIDER TRADINGDue to legal issues, the term Insider Trading may confuse some. Many astute investors often confuse Inside Information with Insider Trading and the term we are touching on today is completely legal, and has to do with management buying or selling their own company’s stock in a legal fashion.

HOW DOES INSIDER TRADING WORK? A company insider can legally trade his own company’s stock. There are layers of legitimate regulation that provide a safeguard to abuse. Executives, and members of the board can buy or sell stock in their own company providing they disclose the transaction and facilitate the trade within allowed time frames. The SEC is the ruling body in regards to insider trading and activity. Stock options also fall under their jurisdiction.

INSIDER TRADING Can Benefit Investors


HOW CAN INVESTORS BENEFIT? The theory behind insider trading is pretty simple. Look at it this way. Would you listen if a buddy of yours was on the BOD of a NYSE company and told you that he legally just purchased shares a week or two ago ? Of course you would. You would probably also take notice if that same insider just told you that he dumped his entire position. Just keep in mind that due to advances in technology this information is readily available if you are willing to do the leg work or perhaps pay a few dollars for a service.

DOES THE STRATEGY WORK? As you probably know, all investment strategies have both benefits and flaws, there are no guarantees in the markets. However, following insider trading might be best used to validate a position that you are already in. Let’s say that you own 1000 shares of XYZ at $10 and it’s now trading at $4. Let’s also assume that the CEO of XYZ just stepped in and purchased 750000 shares of XYZ at $4.31 in the open market. Now, that’s obviously a sign of confidence from management, but only use Insider Trading as a guide, not gospel.

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Lows of 2008 and 2009 are not Forgotten


lows of 2008 and 2009 Lows of 2008 and 2009Today, we are coming to you with an entry that focuses on the lows of 2008 and 2009. Those miserable days seem to be eerily familiar right now, but money was made by value orientated longs who looked at the value of the company and not the charts or current market conditions.

Now many of our PSE followers know that we try to provide color on technical analysis, but if the market capitulates, you have the throw technicals out the window. Lows of 2008 and 2009 still remain.

In a nutshell, capitulation basically happens when investors panic and sell equities and rotate to cash, CD’s or bonds. In other words, the retail investor has thrown in the towel, and institutions are liquidating to meet redemption’s. Smart money types like Warren Buffet often profit when this happens, not only because of his infinite wisdom, but Buffet has an extended time horizon on his long positions as well.

Some technicians are looking for a break of 1100 on the S&P 500 on heavy volume for the capitulation signal. It almost happened today, but the market seemed to stabilize. Don’t think for one minute that the talking heads won’t be throwing around the “Black Monday” term tomorrow if the market remains weak. While we are not in the business of picking bottoms in the broader indexes, we think it’s wise to build a list of quality names just in case a drop happens. It is wise to remember the lows of 2008 and 2009.

Lows of 2008 and 2009 Still Linger


All to often investors lose all rationale when the market is killed and don’t focus on taking advantage of somebody else’s weakness. There were several bargains back during the lows of 2008 and 2009 and a select few retail investors made massive percentage gains buying the dip. The only requirements then were knowledge, staying power, liquidity and patience.

Here are some names that are not only quality trading stocks, but solid companies as well. These stocks could potentially retest their lows of 2008 and 2009. Below are some names and their absolute lows during the 2008-2009 periods:

Ingersoll Rand (IR:NYSE) 11.46
Goldman Sachs (GS:NYSE) 47.41
Bank of America (BAC:NYSE) 2.83
Apple Computer (AAPL:NASDAQ) 78.19
JP Morgan (JPM:NYSE) 14.96
Exxon Mobil (XOM:NYSE) 56.51
Sprint Nextel (S:NYSE) 1.35
Microsoft (MSFT:NASDAQ) 14.87
Potash (POT:NYSE) 15.84
Newmont Mining (NEM:NYSE) 21.17

For now, keep these prices from the lows of 2008 and 2009 handy on a just in case basis.

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