Here is a list of 10% Plus returns for all of you Blokes

[mrstein 0]

Once again with research and due dilligence you can find so MANY Great investments out-there its stupid.

 

Anyone with 250 grand plus can have it made in the shade........

 

Stein

 

(5.) 10%-PLUS PORTFOLIO

 

Our "10%-Plus Portfolio" includes a variety of high-reward investment ideas. To be considered for inclusion in this portfolio, a security must deliver an annual yield of at least 10% at the time it is added to the portfolio.

 

Security (Symbol) Date Added Price Added Dec. 20 Price Div. Yield Total Return Freq. Rating

Alpine Dynamic (ADVDX) 02/07/05 $12.89 $12.12 14.5% +25.1% Monthly Top Pick

Capstead Mort. Pref. (CMO-PB) 12/01/05 $12.30 $12.90 9.8% +27.0% Monthly Top Pick

B&G Foods (BGF) 04/26/06 $14.36 $17.64 9.7% +40.7% Quarterly Top Pick

Temp. Emerging Mkts (EMF) 05/22/06 $18.64 $22.04 17.3% +57.4% 2X/Year Top Pick

General Motors 7.5% (GMS) 06/12/06 $17.43 $16.85 11.1% +15.8% Quarterly Outperform

Centerplate (CVP) 09/25/06 $15.72 $10.01 15.6% -24.6% Monthly Sell

12% ELKS Celgene (EZC) 04/23/07 $10.25 $9.74 12.6% +1.0% 2X/Year Outperform

10.5% HITS Apple (APK) 04/23/07 $10.06 $10.12 10.4% +8.4% Quarterly Outperform

10% ELKS Best Buy (EBC) 04/23/07 $9.95 $10.45 10.1% +10.2% 2X/Year Outperform

Alpine Total Dynamic Div. (AOD) 05/21/07 $21.33 $16.89 12.8% -14.9% Monthly Market Perform

Nicholas-Applegate Convert. (NCV) 10/22/07 $13.58 $11.84 12.7% -11.0% Monthly Outperform

Ford Preferreds (F-PS) 10/22/07 $38.05 $33.57 9.7% -11.5% Quarterly Market Perform

Morgan Stanley E. Europe (RNE) 10/22/07 $41.30 $37.74 15.3% +16.7% 2X/Year Top Pick

12% STRIDES Apple (AVN) 11/12/07 $25.93 $27.06 11.1% +7.3% Quarterly Outperform

"Total % Return" figures include the impact of both capital gains AND the sum total of all dividends paid since the security was added to this portfolio, but do not assume reinvested dividends. Although we suggest you use our ratings system as a guide, for performance tracking purposes we give all securities equal weight in this portfolio. Visit this link to view a listing of all previously-closed "10%-Plus Portfolio" holdings.

 

 

Portfolio Updates:

 

Investor Relations / Dividend Reinvestment

 

Security Phone #

ADVDX 888-785-5578

CMO-PB 800-358-2323

CSE 800-370-9431

BGF 866-211-8151

EMF 800-342-5236

GMS 800-331-9922

CVP 864-598-8600

EZC 212-306-1659

APK 212-306-1659

EBC 212-306-1659

AOD 800-617-7616

NCV 800-285-4086

F-PS 313-322-3000

RNE 800-221-6726

AVN 212-306-1659

 

 

To contact a firm directly or to learn more about its Dividend Reinvestment Plan (if available), please use the phone numbers provided above.

 

B&G Foods (NYSE: BGF, $17.64) -- BGF is an Income Deposit Security (IDS) we featured as our "High-Yield Security of the Month" and added to our portfolio in the May 2006 issue of High-Yield Investing. An IDS is a stock/bond hybrid, which consists of one common share and, in BGF's case, a 12% bond due in 2016.

 

Since we added these shares at $14.36, the security has risen by $3.28 and has provided us six distributions of $0.427 or a total of $2.56. Together, the capital gains and distributions total $5.84, providing a total return of over +40% ($5.84/$14.36). In addition, BGF declared its regular year-end payout on November 13th. When that distribution is made, investors who have held since we featured the security in the May 2006 newsletter will have received returns of more than +44%, assuming the share price stays level.

 

BGF makes a variety of branded foods such as cereals, pickles, salsa, jams, and maple syrup. Its Polaner sugar-free preserves hold a 50% market share in the U.S., and the company recently completed an acquisition of iconic hot cereal brand Cream of Wheat.

 

BGF's share price peaked this year in the mid-$20s and has slid since that time. There are several possible reasons for the share price retreat:

 

First, BGF has been pressured with the overall market turmoil we have seen in the past few months. Second, commodity prices are pressuring profit margins, such as the rising cost of wheat. Margins on its maple syrup brand also have been affected by the rise in the Canadian dollar, since BGF's costs for the Canadian product increase as the local currency gains value against the U.S. dollar.

 

Finally, a key component of this IDS is a high-yield bond. These bonds generally trade lower when economic growth is projected to slow, as economists have been predicting since mid-2007.

 

In the mid-$17 range, BGF is currently yielding a hefty 9.7% ($1.70/$17.64). Despite a possible economic slowdown in 2008, the basic food products BGF produces should be minimally affected. Indeed, analysts are projecting that its earnings for 2008 will be $0.77 per IDS, a marginal increase from the $0.75 per IDS expected in 2007. With stable earnings, we expect BGF to maintain its dividend at current levels.

 

Action To Take ---> BGF continues to be a core position in our "10% Plus" Portfolio. The pullback in the share price gives investors who missed the opportunity when we first added BGF a chance to buy this IDS at an attractive price.

 

Centerplate Inc. (AMEX: CVP, $10.01) -- Shares of this concession-stand operator have come under pressure over the past few weeks, mainly due to a secondary offering of shares. Like BGF described above, CVP is an Income Deposit Security. It provides catering and other services to sports and entertainment centers across North America.

 

After some digging, we found that on December 12th, the company filed a 305-page supplemental prospectus with the Securities and Exchange Commission. The filing disclosed that 2.5 million shares -- or about 12% of the outstanding shares -- were being combined with a portion of a 13.5% bond. The resulting securities were being offered to the public at a fire-sale price of $11.00 per IDS.

 

The company said that the $28 million raised by floating these shares in the marketplace wouldn't be used for corporate purposes. Instead, the proceeds would go to the institutions that were selling their shares in exchange for the company's 13.5% notes, namely Blackstone (NYSE: BX) and GE Capital. CVP's management also will receive a portion of the proceeds, since they own interests in Blackstone.

 

While this secondary offering has depressed the share price, it has also put a floor on the price. Meanwhile, the monthly dividend appears secure. For the first nine months of 2007, sales have increased slightly and earnings before interest, taxes, depreciation, and amortization expenses (EBITDA) are steady.

 

Still, the low visibility related to this secondary offering is not atypical from Centerplate.

 

Action To Take ---> The shares are likely close to a bottom and income-oriented investors may consider holding CVP for its regular monthly income and capital gains potential. However, given the somewhat low visibility surrounding certain significant events, we are concerned that other surprises may arise that could impact the shares. As such, we plan to remove CVP from our portfolio on Friday, December 21st.

 

 

--------------------------------------------------------------------------------

 

Potential Additions:

Below you'll find an analysis of one or more investment ideas that we're now considering as possible new additions to our "10%-Plus Portfolio." We're following each of these investments closely and may add a few of them to this portfolio when their risk/reward profiles meet our stringent criteria.

 

Municipal Mortgage and Equity (NYSE: MMA, $15.83) -- "MuniMae" provides debt and equity financing for real estate developers. The company also owns a division that finances, owns, and operates renewable and energy-efficient projects.

 

As a master limited partnership (MLP), MuniMae passes along most of its taxable income to shareholders. It has increased its dividend in 43 consecutive quarters, typically in small increments. In the past 12 months, the dividend payouts rose about +3.5%, not bad considering the disruptions in the credit markets. For the last four quarters MMA paid $2.079. At current prices that provides a highly attractive yield of 13.1% ($2.079/$15.83).

 

Moreover, most of this yield is tax-advantaged. About 75% of MuniMae's income comes from tax-exempt municipal bond interest income, which is passed on to shareholders. That translates into a taxable-equivalent yield of about 16.5% if you're in the 25% federal tax bracket. Also, as a master limited partnership, MMA's dividend can be taxed for "unrelated business income" in a way that makes it unsuitable for tax-deferred accounts.

 

MMA has approximately $18 billion under management and interests in 3,000 multi-family properties across the U.S. Income comes from a variety of sources. For one, it is the country's largest syndicator of affordable housing tax credits. That is, the lender buys tax credits from developers of low-income housing and then packages and sells them to corporations. MMA earns fees for organizing and managing these credits.

 

MMA also invests in tax-free municipal bonds used to build multi-family housing, particularly for low-income families. Finally, it writes and services loans that fund commercial property development. A recent focus is the financing, owning, and operating of renewable energy building projects.

 

In this environment it is important to say what MuniMae does not do. The company is not involved in residential mortgages and has no subprime exposure.

 

A major cloud overhanging MMA -- one which has helped drive its share price down nearly -50% in 2007 -- is that it is involved in a long and costly restatement of its financial results going back to 2002. The firm's CFO position has been a revolving door: it has had three chief financial officers in three years, and the restatements are not expected to be available until February 2008.

 

In addition to the financial statement uncertainty, MMA likely has been tarred and feathered due to investors thinking it has exposure to subprime -- a misconception.

 

When MMA recently released third-quarter results, it noted that its dividend payout for 2007 may exceed 100% of the company's net cash for operations from 2007. Part of this problem may be caused by paying a small army of over 70 consultants to complete the financial restatements.

 

In the absence of reliable financials, an investor must guess at MMA's financial position. Information unavailable to investors, however, is known to its bankers. MMA's lenders would likely order MMA to cut its distributions to shareholders if it were running into financial hot water. Instead, MMA has, as we pointed out, kept raising its distributions, suggesting the company is in adequate financial shape.

 

Based on the latest financial statements available, the stock is inexpensive. It is selling at a price-to-book-value ratio of about 0.9 times, meaning that an investor is buying the company for $0.90 on the dollar.

 

Action To Take ---> MMA's financial restatements should be completed by February. When those are made public, we may consider adding the stock to our "10%-Plus" Portfolio. Aggressive investors may wish to jump the gun and capture the hefty yield, with the stock trading at levels last seen in the late 1990s.

 

 

 

(6.) DIVIDEND OPTIMIZER PORTFOLIO

 

In our "Dividend Optimizer Portfolio," we focus on high-quality, stable investment ideas with annual yields at least 3X greater than the S&P 500 at the time they are added to the portfolio. We initially identified most of these investments using our proprietary Dividend Optimizer Model, which looks for safe, stable investment ideas with above-average income potential.

 

Security (Symbol) Date Added Price Added Dec. 20 Price Div. Yield Total Return Freq. Rating

 

Real Estate

DJ Real Estate (IYR) 09/13/04 $54.42 $66.75 4.8% +37.4% Quarterly Outperform

DWS RREEF Real Estate (SRQ) 11/29/04 $21.73 $17.35 19.9% +24.4% Quarterly Outperform

Equity Res. (EQR) 12/03/04 $34.78 $36.02 5.1% +19.1% Quarterly Outperform

Vornado (VNO) 02/28/05 $68.70 $85.63 4.0% +39.7% Quarterly Outperform

Macq./First Trust (MFD) 10/14/05 $21.35 $22.92 7.4% +33.5% Quarterly Outperform

ING Clarion Gl. (IGR) 05/10/06 $18.54 $13.62 23.6% -3.8% Monthly Outperform

Medical Prop. (MPW) 07/10/06 $11.54 $10.01 10.8% +0.7% Quarterly Outperform

Ares Cap. (ARCC) 09/25/06 $17.00 $14.77 11.2% -0.4% Quarterly Market Perform

SuperTel Hosp (SPPR) 01/19/07 $6.58 $6.14 8.1% -1.2% Quarterly Outperform

 

--------------------------------------------------------------------------------

 

Bonds/Preferreds

Great A&P 9.375% (GAJ) 12/01/05 $24.95 $24.95 9.4% +18.6% Quarterly Outperform

Zweig Total Return (ZTR) 11/27/06 $5.50 $4.43 11.4% -9.5% Monthly Market Perform

ING Prime Rate (PPR) 07/23/07 $7.04 $6.20 9.2% -8.6% Monthly Market Perform

 

--------------------------------------------------------------------------------

 

Equity Funds

Adams Exp. (ADX) 12/27/05 $12.64 $13.45 7.7% +21.7% Quarterly Outperform

E.V. Tax Adv. (EVT) 03/20/06 $23.75 $26.78 6.8% +25.0% Monthly Outperform

Claymore/Zacks Yield (CVY) 10/23/06 $25.70 $23.26 5.7% -4.4% Quarterly Top Pick

 

--------------------------------------------------------------------------------

 

Business Development

American Cap. (ACAS) 07/01/05 $36.20 $33.28 12.0% +15.8% Quarterly Outperform

Gramercy Cap. (GKK) 12/01/05 $23.66 $25.58 9.9% +26.6% Quarterly Outperform

Allied Capital (ALD) 02/12/07 $28.51 $22.53 12.8% -11.7% Quarterly Market Perform

 

--------------------------------------------------------------------------------

 

Master Limited Partnerships

Magellan Mid. (MMP) 09/15/05 $33.96 $43.25 6.0% +43.0% Quarterly Top Pick

Enterprise Products (EPD) 02/20/07 $29.88 $29.92 6.6% +5.0% Quarterly Top Pick

NuStar LP (NS) 02/20/07 $62.26 $52.40 7.5% -11.3% Quarterly Outperform

 

--------------------------------------------------------------------------------

 

Common Stock & ADRs

Bank of Amer. (BAC) 07/11/05 $45.17 $41.41 6.2% 3.9% Quarterly Market Perform

Ship Finance (SFL) 03/26/07 $27.61 $27.69 7.9% 6.3% Quarterly Outperform

"Total % Return" figures include the impact of both capital gains AND the sum total of all dividends paid since the security was added to this portfolio, but do not assume reinvested dividends. Although we suggest you use our ratings system as a guide, for performance tracking purposes we give all securities equal weight in this portfolio. Visit this link to view a listing of all previously-closed "Dividend Optimizer Portfolio" holdings.

 

 

Portfolio Updates:

 

Investor Relations / Dividend Reinvestment

 

Security Phone #

IYR 800-474-2737

SRQ 800-621-1048

EQR 888-879-6356

VNO 866-668-6550

MFD 800-988-5891

IGR 888-711-4272

MPW 205-969-3755

ARCC 310-201-4200

SPPR 402-371-2520

GAJ 201-571-8192

ZTR 800-272-2700

PPR 800-992-0180

ADX 800-432-8224

EVT 800-225-6265

CVY 800-345-7999

ACAS 301-951-6122

GKK 212-297-1000

ALD 202-721-6100

MMP 877-934-6571

EPD 713-381-6500

NS 210-345-2000

BAC 704-386-5681

SFL 441-295-6935

 

 

To contact a firm directly or to learn more about its Dividend Reinvestment Plan (if available), please use the phone numbers provided above.

 

CPFL Energia S.A. (NYSE: CPL $56.66) -- We've been watching CPFL since August, when we first highlighted it in High-Yield Investing. We like the way the stock has continued to rise, seemingly oblivious to the adverse market conditions that have pressured other high-yield stocks.

 

CPFL is the largest electrical power distributor in Brazil, with 5.9 million customers and a 27% market share of the country's power distribution. The company is focused on the states of Sao Paulo and Rio Grande do Sul, where Brazilian economic growth has been particularly dynamic.

 

Management's policy is to pay out a minimum of 50% of earnings. It does this in two semi-annual payments typically made in the spring and summer. Since March 2007, dividends of $2.2044 and $2.8442 amount to $5.05, giving CFPL a robust yield of 8.9% ($5.05/$56.66).

 

Although some investors may associate Brazil with high economic risk, for the last several years the country has been a paragon of stability. With the current year almost complete, GDP growth in 2007 is an estimated +4.7%, and economists are projecting +4%-plus growth for the rest of the decade. At the same time, inflation is contained to about the 4% level, with a target of 4.5% set through 2009.

 

In addition to bringing additional generating capacity on stream through internal expansion, CPFL has also grown through acquisitions, taking out several former competitors in the last two years.

 

These acquisitions have powered the company's sales and earnings. Net income grew +37.5% between 2005 and 2006. For the first nine months of 2007, earnings jumped an additional +20% as sales rose nearly +13%.

 

Going forward, the company targets placing nearly 2,000 MegaWatts (MW) of generating capacity on stream by 2010, nearly double current levels. Despite rapid expansion, CPFL still has a healthy balance sheet. The debt-to-equity ratio, for example, is 1.10, down significantly from 2003 when it was 1.34. CPFL should also be able to power earnings higher through customer growth, expanded capacity, and rate increases tied to inflation.

 

As with any foreign security, there is currency risk in CPFL's shares. If the U.S. dollar were to strengthen against the Brazilian real, returns would be negatively affected. So far, however, currency exchange has worked in investors' favor, with the U.S. shares up more than +30% in 2007 compared to the stock's rise of roughly +20% on the Brazilian market.

 

Action To Take ---> Given CFPL's strong yield and growth prospects, we plan to add the stock to our "Dividend Optimizer" Portfolio at the opening of trading on Friday, December 21st.

 

 

--------------------------------------------------------------------------------

 

Potential Additions:

Below you'll find an analysis of one or more investment ideas that we're now considering as possible new additions to our "Dividend Optimizer Portfolio." We're following each of these investments closely and may add a few of them to this portfolio when their risk/reward profiles meet our stringent criteria.

 

Merrill Lynch 6.0518% Index Plus (AMEX: IPB, $20.06; CUSIP: 45408V203) -- These preferred shares are backed by 15 long-term investment grade corporate bonds, as well as U.S. Treasuries.

 

IPB pays a dividend of $1.513 with two semi-annual payouts on June 20 and December 20th. Although the original yield was approximately 6.05% of the $25 per share issue price, the shares today carry a 7.5% yield on their market price ($1.51/$20.06). That compares very favorably to the investment grade corporate bonds and Treasuries currently paying less than 5%.

 

The shares don't mature until May 2033 and can't be called before then. At maturity, holders receive back the full par value of $25 per share.

 

When the shares were issued in December 2003, about half of the corporate bonds backing these shares were rated "A-" or higher by credit rating agency Standard & Poor's ("A3" or higher by Moody's). About 40% were between "BBB-" ("Baa3" by Moodys) and "A-," and the balance were risk-free Treasuries.

 

Corporations in which the trust invested include Boeing (NYSE: BA), Time Warner (NYSE: TWX), and Valero (NYSE: VLO). However, funds were also placed in the bonds of financial stalwarts such as Citigroup (NYSE: C), which have come under pressure because of the recent credit crunch. As such, some of these ratings may have changed. Still, unless the current credit crunch worsens in the extreme, the majority of the trust's portfolio should be secure.

 

Because of weak conditions in the housing market and the danger of recession, the Federal Reserve is widely expected to continue lowering interest rates. That rate decline should put a floor under the price of these preferreds and perhaps allow for price appreciation.

 

This stock is thinly traded, and investors may want to buy in small lots over several days to avoid large price movements. Since payouts are considered bond-like interest payments, they are taxed at the ordinary income tax rate of up to 35% and are therefore best held in a tax-deferred IRA type of account.

 

Action To Take ---> With a high-quality rating of "A3" by credit rating agency Moody's, IPB offers investors a safe yield of 7.5% in a declining interest rate environment. The issue is suitable for low to moderate risk investors.

[Eneukman 1]

A word of caution here.

 

A high yield is GENERALLY (though not always) a sign of higher risk. Get independent financial advice before investing in anything

 

Alan

[JONPAT 222]

Thanks for posting this. It was very interesting reading. I will watch the IPB, maybe a great buy because of Merrill Lynch news today.

[MrMango 672]

A word of caution here.

 

A high yield is GENERALLY (though not always) a sign of higher risk. Get independent financial advice before investing in anything

 

Alan

I'll second that. I noticed that he included bonds from General Motors and Ford - Now theirs a thoughtful choice. Both are on the verge of Bankruptcy, and generally, bonds are the last to be paid off.

 

After summarily reading the post, there was nothing mentioned about risk.

 

You can have a 3,600 percent return if you put your money on the roulette wheel (assuming your number hits)

[pattayachip 0]

mr stein interesting reading as usuall,can you maybe down the road give us a breakdown and your thoughts on immediate annuities,happy hollidays sir

[fd2084 0]

You can have a 3,600 percent return if you put your money on the roulette wheel (assuming your number hits)

Risk in roulette? You just don't know how to play, check out this thread for a foolproof system on how to beat it:

 

http://www.pattayatalk.com/forums/index.php?showtopic=17745

 

Or pm member Canadian_verbal_kint for details.

[lostinpattaya 0]

Risk in roulette? You just don't know how to play, check out this thread for a foolproof system on how to beat it:

 

http://www.pattayatalk.com/forums/index.php?showtopic=17745

 

Or pm member Canadian_verbal_kint for details.

Can anyone who believes that they have a winning system at roulette please pm me.I will be only too happy to act as the bank and to let them win as much as they like off me.

[MrMango 672]

Can anyone who believes that they have a winning system at roulette please pm me.I will be only too happy to act as the bank and to let them win as much as they like off me.

Come on guys - I was just pointing out that the OP ignored the risk factor, and you can get great returns if you bet on a high risk, long shot like roulette.

 

The Stock market is just like a casino - You pony up your money, and take your chances.

[js007 795]

Of course there's risk. Lots of it. The US banking system is on the verge of implosion. It's not just the subprime mortgages. The damage has spread to the larger mortgage market as well. The debt bubble is about to burst. In any event, the last thing I'd buy into right now is a bond fund of any sort. Just a word or warning.

 

J

[MrMango 672]

Of course there's risk. Lots of it. The US banking system is on the verge of implosion. It's not just the subprime mortgages. The damage has spread to the larger mortgage market as well. The debt bubble is about to burst. In any event, the last thing I'd buy into right now is a bond fund of any sort. Just a word or warning.

 

J

Not just the U.S. - In fact Europe looks like it is far worse shape - Check out this site for details.

 

http://www.telegraph.co.uk/money/main.jhtm...cccrisis123.xml

[Greg_B 306]

So how did you miss MCD and HCSG...?

 

Or a little risk with GG...?

 

 

MCD = McDonalds

HCSG= Health Care Service Group

GG= Goldcorp

 

These are stocks listed in the USA markets

Edited December 26, 2007 by Greg_B

[captcraig2 120]

Hmm....I sure wish I knew what foreign language you are speaking!

[Owen` 2]

Sigh.

 

I will put a few moments into reading this and reply further. For now, without having read it, I will just . . . sigh.

[Tengotodo 52]

Sigh.

 

I will put a few moments into reading this and reply further. For now, without having read it, I will just . . . sigh.

 

 

Go get 'em Owen

[touristman 1]

Sigh.

 

I will put a few moments into reading this and reply further. For now, without having read it, I will just . . . sigh.

 

kick some serious ass Owen !

[Owen` 2]

Okay, let's take a step back here and think about, of all things, human nature. The OP posted on Christmas Eve. It is a time of year when there is a lot of score keeping that gets started. There are very few days left until the outright end of the year and what exists the 24th is probably going to exist the 31st. So people embark on their own agendas as regards money at the end of the year.

 

Before I start in on some of the specifics in play here, let's re-examine how human nature works with regard to the markets. The phrasing for markets and investments is usually wrong. On a big down day there is talk of "sellers vastly outnumbered buyers today and drove equity prices down." Well, that is wrong. That did not happen. Sellers did not likely outnumber buyers. They were simply more urgent. As many shares were bought as sold that day. Buyers may not have been fewer, but they were certainly less urgent.

 

Prices move with urgency, not totals. If you have 100% knowledge of the future and KNOW that some particular item is going to greatly increase in price, then you will be willing to pay a bit more than its current price this moment in order to get in before that future arrives. Your urgency is high. And You Drive That Price Up A Little With That Urgency.

 

This is why there can never be a foolproof system for markets. If there is a system that always works, then everyone will use it, buy quickly and urgently and have their urgency drive up the price so that the next people arriving and using that system are going to discover the price so high that there is no gain to be had. It fails -- meaning that system Does Not Always Work. This is always true. There can be no perpetually winning system. It can't exist. The problem is not that it does not always work; it is that it cannot always work.

 

Now then, let's examine some text from the OP:

 

Our "10%-Plus Portfolio"

<--- and who is "our"? Imperial we?

 

Below you'll find an analysis of one or more investment ideas that we're now considering as

Ahh, more we talk. How very nice of "them" to list items they have not yet listed so that people can imagine themselves in before the crowd.

 

As best I can tell this is a paste from some subscription-paid investment advisory service. It has been well understood for about . . . oh, 50 years . . . that subscribers to investment advisories seek the same thing they get from magazine subscriptions: Entertainment.

 

I am going to just pick out a random item from the list and examine it. I may even agree with the information provided. It won't matter. It won't matter because of the inevitable reality from the text above;

 

American Cap. (ACAS) 07/01/05 $36.20 $33.28 12.0% +15.8% Quarterly Outperform

 

Never heard of them, particularly. But here is what I find. This is a closed end fund that invests in debt, i.e., bonds. The price for this fund is $33.16/share at the close of markets today, Dec 28. It has fallen in price from Jan 1, 2007 about 28% (from $45/share). Since dividend yields are price dependent, that means the 12% dividend advertised was 9% on 1 January. To pay 12% on $33 that means they pay out $3.96/share per year in dividends. Given that the price has fallen this year by $11, the market has not been impressed with that.

 

This company pays that dividend from the proceeds of helping small businesses grow (or get bought). This means their dividend is entirely dependent on economic conditions perpetually making businesses grow and get sold. Nothing is perpetual. Another bothersome thing is this company is somewhat complex. It is the sort of company understood best by its management. If you look at recent insider buys . . . there are few. The current management of the company is not clamoring to get aboard this train. In fact the largest transaction recently was an outright sale by the Chief Operating Officer. Why might that be? Perhaps he sees more 28% losses coming.

 

You can see this data here:

http://www.smartmoney.com/eqsnaps/index.cf...amp;symbol=ACAS

 

The point is . . . 80% of professional money managers under perform the market indices each year. They are paid by people whose money was entrusted to them. If those people had not entrusted that money to them and merely bought an index fund (a fund that is not managed; it is invested in the market index like the S&P or the FTSE), they would have achieved better performance -- and not paid anyone to achieve it. Given that this is so, the odds are against you when you think you have found one of the magical 20% who will outperform the market next year. Oh, and don't forget, it is generally a different 20% each year.

 

So, I don't know the agenda of the OP. Always useful to remember the old investment advisory marketing story. A fledgling advisor needed to build his clientelle. So he took a list of possible customers and divided it in half. He sent the two halves two sets of advice, 180 degrees different from each other. Then after truth became clear, he divided the "correct" group in half and repeated the procedure. After 3-4 iterations of this, he sent the group to whom he had sent "correct" advice 4 consecutive times an offer to continue his advisories in return for a yearly subscription. His sales rate on that mailing was far better than a shotgun mailing from the original group.

 

Welcome to the world of investment advice marketing.

Edited December 28, 2007 by Owen`

[®ob 1]

and im still lost....Maybe thats why im always skint

[MrMango 672]

Owen - A well researched and written retort. I would have simply have stated that the OP was full of Bullshit.

[nidnoyham 30]

I'm a mug punter.

 

My latest " bottom fishing" bet is REG.L ( Regency Hotels ) they are well down for some reason. Last week there was some large buys of the shares, which are at their lowest price for years.

 

Looks a good bet to me, but what do I know ?

Edited December 29, 2007 by nidnoyham

[Eneukman 1]

I'm a mug punter.

 

My latest " bottom fishing" bet is REG.L ( Regency Hotels ) they are well down for some reason. Last week there was some large buys of the shares, which are at their lowest price for years.

 

Looks a good bet to me, but what do I know ?

 

I did a search on Investors' Chronicle web-site for Regency Hotels but drew a blank. I did, however, come up with Regent Inns where the recommendation after a profit warning earlier this month was a very firm "Sell". Whilst a take-over bid may be made, they compared holding the shares to catching a falling knife.

 

Alan

[nidnoyham 30]

I did a search on Investors' Chronicle web-site for Regency Hotels but drew a blank. I did, however, come up with Regent Inns where the recommendation after a profit warning earlier this month was a very firm "Sell". Whilst a take-over bid may be made, they compared holding the shares to catching a falling knife.

 

Alan

 

Regent Inns- that's the one. I celebrated Brentford's win with a bottle of Fullers Golden Pride (8.6%) followed by a wee Grouse or two.

My thinking was a bit fuzzy.

 

I am not holding these, I bought at 22p down from about 80p. this is the lowest sp for 3 1/2 years. I thought, sod it' buy a few quids worth- "He who dares Rodney....."

 

When I was a butcher, we had a saying. " Never stop a dying wife, never catch a falling knife ! "

 

Strange thing, on the 6th/7th of the month, millions of shares were bought by two investment companies.

 

Another share I hold ASP.L -Ascribe, an I.T outfit for Health Care, had 10,000,000 shares bought by Barclay's Bank and a Pension Fund on the same day, 6th Dec. Maybe it's a trading day ?

 

 

I use iii website for info and trading, I don't know if it's good or bad, I have only used the one.

Edited December 30, 2007 by nidnoyham

[WeezinGeezer 2]

Think I'll stay with my own long portfolio. 18+% beats your piddling 10%

[fd2084 0]

Welcome to the world of investment advice marketing.

Yeah, but that guaranteed roulette system is the real deal, right?

[MrMango 672]

Yeah, but that guaranteed roulette system is the real deal, right?

There is NO guaranteed roulette systems...

 

Yeah, but that guaranteed roulette system is the real deal, right?

There is NO guaranteed roulette systems...