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Showing posts from March, 2007

The story of a margin call - example margin gearing

Margin gearing is a method u can use to gain more wealth rapidly if u use it wisely . I wanted to write a example for margin gearing in simple terms but i just found one on the net .Below is a example in its most simplest form which is refrenced from Ashleighs blogTime for a worked example: suppose I have no cash but I do have a some assets, and a margin loan with low gearing. Then I see Kick-ass Consolidated shares going for a good price, and giving (say) a dividend yield of about 5%. If I have to use cash - tough - I lose because I don’t have any. But if I buy using debt, I’ll pay about 8% interest on the borrowings. If I get a 5% dividend yield, fully franked, that is an equivalent interest rate of 7%. So the dividends are paying the debt for me, and the cost to me (to prevent the debt from rising) is the difference in interest rates: 1%. This is a pretty neat deal: If I can buy an asset, and use the cash flow from the asset to pay the debt used to buy it, then I only have t…

stock tip email or stock spam email ?

A recent regular email or spam i have been getting in my inbox ...do u get any such mail ??? havent had the time to check out if it s true or just trying to shoot that stock upwards by email ?

sending email addy ::


From :
ThePick isFlying! wrtawerahgkl@apowerntyc.com


function PI(a,b)
{
document.move._HMaction.value=a
document.move.tobox.value=b
document.move.submit()
}
function HM(l){G('/cgi-bin/HoTMaiL?'+l)}
function GM(l){G("/cgi-bin/getmsg?"+l)}
function MP(l){G(l+"&msg=A8DD3AAF-D24F-409A-978A-5E7CBD39D1FC&start=0&len=4092&curmbox=00000000%2d0000%2d0000%2d0000%2d000000000001&a=f897e82285b769aad66ecc1b6aa6bcc73b1e971b7b71c675c96dfa6dd6251db3")}
function S(t,a,b,c,d,e,f,g,h,i){G('/cgi-bin/'+t+'?msg='+a+'&start='+b+'&len='+c+'&mfs='+d+'&cmd='+h+'&lastmsgid='+e+'&msgread='+f+'&etype='+g+'&wo='+i)}
function DB(a)
{
frm.action="/cgi-bin/kill…
A recent regular email or spam i have been getting in my inbox ...do u get any such mail ??? havent had the time to check out if it s true or just trying to shoot that stock upwards by email ?

sending email addy ::


From :
ThePick isFlying! wrtawerahgkl@apowerntyc.com


function PI(a,b)
{
document.move._HMaction.value=a
document.move.tobox.value=b
document.move.submit()
}
function HM(l){G('/cgi-bin/HoTMaiL?'+l)}
function GM(l){G("/cgi-bin/getmsg?"+l)}
function MP(l){G(l+"&msg=A8DD3AAF-D24F-409A-978A-5E7CBD39D1FC&start=0&len=4092&curmbox=00000000%2d0000%2d0000%2d0000%2d000000000001&a=f897e82285b769aad66ecc1b6aa6bcc73b1e971b7b71c675c96dfa6dd6251db3")}
function S(t,a,b,c,d,e,f,g,h,i){G('/cgi-bin/'+t+'?msg='+a+'&start='+b+'&len='+c+'&mfs='+d+'&cmd='+h+'&lastmsgid='+e+'&msgread='+f+'&etype='+g+'&wo='+i)}
function DB(a)
{
frm.action="/cgi-bin/kill…

What is a cfd ? Cfd Guide and trading - Cfd Trading Example

What is a CFD?A CFD is simply an agreement to exchange the difference in value of a particular share between the time at which a contract is opened and the time at which it is closed. The Basics of a CFD TransactionDealing CFDs is almost exactly the same as using a traditional stockbroker to buy or sell shares, including the same dealing price (except the CFD brokers who offer commission free dealing which is discussed in detail here). Look at this example to see what we mean. Two traders, Trader A & B, both believe that HBOS Bank will rise over the next few days Trader A will do the trade through his regular stockbroker Trader B will use Contracts for Difference Trader A Uses A StockbrokerHe calls his stockbroker at 11am and asks the current market quote for HBOS The broker quotes him £7.49 - £7.50 He buys 1,000 shares at £7.50 and pays regular commissions and Stamp Duty (0.5%) Trader B Uses a CFD BrokerHe calls his CFD broker (see left hand margin for a list of CFD Brokers) also…

Warren Buffet Sucess formula from Berkshire Hathway

BERKSHIRE HATHAWAY INC.
To the Shareholders of Berkshire Hathaway Inc.:
Our gain in net worth during 2006 was $16.9 billion, which increased the per-share book value of
both our Class A and Class B stock by 18.4%. Over the last 42 years (that is, since present management
took over) book value has grown from $19 to $70,281, a rate of 21.4% compounded annually.*
We believe that $16.9 billion is a record for a one-year gain in net worth – more than has ever
been booked by any American business, leaving aside boosts that have occurred because of mergers (e.g.,
AOL’s purchase of Time Warner). Of course, Exxon Mobil and other companies earn far more than
Berkshire, but their earnings largely go to dividends and/or repurchases, rather than to building net worth.
All that said, a confession about our 2006 gain is in order. Our most important business,
insurance, benefited from a large dose of luck: Mother Nature, bless her heart, went on vacation. After
hammering us with hurricanes in 2004 and 2005 – s…

Austaralian share market game ( Dummy portfolio simulated stock game ) - Win cash $$

Citigroup and westpac are holding a Share market game and the winner recieve prizes . You get t o build a Portfolio with dummy money and if u do really good U stand the chance to get Yourself a real cash portfolioPlay the Game!Take a hypothetical $50,000, create your own virtual share portfolio and experience what it is like to invest in the sharemarket without spending a cent of your own money. Schools Sharemarket GameRegistrations open 19 February 2007Players must be Australian secondary school students (years 7-12) Total prize pool over $25,000 Trading period - 15 March to 24 May 2007 More about the gamePublic Sharemarket GameRegistrations open 5 March 2007Players must be Australian residents aged 18 years and over Total prize pool $15,500 including Westpac Broking share portfolio Trading period - 29 March to 5 July 2007 LoginSign up to play the Public GameSign up to play the Schools GameFor More details go here www.asx.com.au