BooM Finance

Looking at Business Profits and Losses

2007-01-12T18:28:00.000-08:00

By: Adam J. Heist

You will be focusing on what your prospect worries about every single day. Frame your discussions around your understanding of these, and you become a “trusted advisor” rather than just a sales person. You can learn to analyze the data that you get just by reading through the company’s website. There you can get a really thorough financial breakdown, more thorough than in the 10-K report filed with the SEC.

Then when you meet with an executive, you can get the conversation to revolve around his specific challenges. “It looks like your penetration strategy has yielded solid results. How are you dealing with the challenges of your top line increasing 36 percent year over, while gross margins tighten?, instead of dealing with generalities. You force your mind to study a group of five or so metrics. In this case, you have the balance sheet. Break it down into five categories: the fixed assets, the net working capital, the long term debt, changes in goodwill and intangible assets and leverage. You can define leverage as the total assets divided by the total equity. The trend in top line growth is one thing they obviously want to see this trending up.

Most all CEO’s watch the sales numbers closely. The fact of the matter is many Wall Street analysts look for growth on the “top line” as much as they do on the bottom line. The trend in gross profit margin is a way to quickly see how the company is performing relative to its internal productivity and the market is to look at the gross profit dollars as a percentage of revenue, or gross margin. . Ideally, this trend should at least match the percentage increase in top line growth. You can also look at the operating profit margin to get a quick view of how the company is performing.

While the gross margin number tells us market conditions and the direct labor productivity of the company, the operating margin tells us the general overhead productivity of the company. Increasing interest expense puts an additional earnings debt on the company. Companies that incur debt to acquire businesses or invest in businesses need to make sure that these investments return more than the company’s cost of capital. Net margin needs to be analyzed within the confines of the entire business. If operating margins stay the same year over year, but net profit margin increase, something happened in between that needs to be analyzed.

Article Source: www.superfeature.com

Protect Yourself Against Identity Theft

2007-01-06T18:19:00.000-08:00

By: Jon Arnold

It seems like you can hardly watch the TV news or read the daily newspaper anymore without seeing a report of identity theft or seeing the topic of identity theft coming up as a very hot topic. Although identity theft is not a well-known type of crime, it is one of the fastest growing and insidious crimes in the world today.

Let’s look at a typical case of what happens with identity theft. Very simply, someone opens an account, like a Visa or MasterCard, or perhaps at a major department store, using YOUR name, YOUR social security number, YOUR date of birth. This is all information that supposedly, YOU would be the only one that would know, so it appears legitimate. The address is frequently not your address, but with the frequency that people move these days, a different address seldom throws up a red flag. Since you have good credit, the new account is approved, and the new credit card is mailed to “you” at the address provided on the application.

Now what happens? The thief may repeat the process and open 2-3 or even a dozen or more new accounts. Having the cards in hand, the thief goes out and charges those cards to the hilt, purchasing things like a plasma TV, a high-end computer system, top of the line digital camera, even a late model used car, and much more.

A couple of months down the road, you get a call from the collections department with American Express, Citibank Visa, your local department store, and sometimes even ALL of these. They want to know if there is a problem with your new account, since you have not made any payments to date. Huh? In the vast majority of cases, this is your first indication that you have been a victim of identity theft.

It is not a pretty picture. The lender is going to assume that you are just trying to fabricate a story so you can enjoy all the new toys you bought without having to pay for them. And most of those creditors will get fairly hostile with you, and in the meantime, they are more than happy to start reporting your huge delinquency to the credit bureaus so that your previously sterling credit rating starts going to the dogs in a hurry.

The good news is that the error can be resolved … eventually. But it is going to take months and even years to get your credit rating restored to where it was before, as well as a significant amount of your time and possibly even legal fees. You see, those lenders who approved “your” new account don’t want to take responsibility for merchandise that was purchased and will probably never be found again. The ONLY thing they have to allow them to track it down is your social security number and date of birth, so since that is the only thing they have, they hound you like a pit bull. Unfortunately, they also take the attitude of you being guilty until being presented with irrefutable proof that you are innocent and a victim of identity theft.

Do not take a lax attitude about identity theft because it can happen to you, and I can guarantee that it is significantly less fun than a root canal. There are many steps you can take that will help guard you against identity theft, and you are highly encouraged to take those steps as soon as possible.

Article Source: www.superfeature.com

Mortgage Rates

2007-01-06T18:12:00.000-08:00

By: Joel J. Ohman

Trying to get an “apples to apples” mortgage rate comparison can often be quite a hassle. Traditionally, there are the face to face meetings with brokers and lenders, the endless combinations of points and fees to sort out, and the element of salesmanship that always comes into play when speaking with a commission based broker. All of those things are generally to be expected but that does not mean that you should rush blindly into any type of buying situation without doing your homework!

The Internet has simplified the mortgage shopping process. There are many sources of online information when looking to compare mortgage rates. A website will never be able to replace speaking with an independent mortgage broker that is knowledgeable about loan options in your area but spending the time to learn about mortgage loan options will definitely pay off dividends in the long run.

Although it may not be natural for many to haggle with a broker or lender; concessions are many times offered for those who are willing to fully utilize an independent mortgage broker that can shop multiple lenders. There are many niches and sub niches in the lending markets and it is not unusual for a lender to be very competitive in one niche and not at all competitive in another.

Whether you are looking for a new home purchase mortgage quote, a refinance mortgage quote, or a home equity mortgage loan quote make the price transparency of the Internet work to your favor. Let the top mortgage lenders compete for your business. Compare side by side mortgage quotes from top mortgage brokers in your area by utilizing an independent quote shopping service.

Article Source: www.superfeature.com

The 6 Best Times Of The Day To Trade A Stock

2006-12-16T02:01:00.000-08:00

1. Post-opening buying: Let's say a stock rises 5 percent or more during the opening and there's no news about it. Typically, the stock will fall off after 30 minutes of trading. Why? Market makers may be trying to open the stock at an artificially high price to sell off excess inventory they've acquired the day before. However, if the stock doesn't fall after 30 minutes of trading, it's liable to continue rising for the rest of the day. Tactic: Buy at 1/16 above the day's high after the opening. Set a stop at 1/16 below the day's low.

2. Post-opening selling: The opposite of the above strategy. When a stock opens lower on no news, it could be that sell orders from nervous investors have piled up since the close of trading the day' before. Sometimes market makers open the stock artificially low, to draw in more panic sellers. This allows them to accumulate shares, because market makers as a rule buy on price declines and sell on price increases. After 30 minutes, the stock usually recovers in price and normal trading begins. The market makers profit by selling the inventory they've accumulated at the lower price. However, if the stock continues to drift lower after 30 minutes, chances are it'll decline more during the course of the day. Tactic: Sell short at 1/16 below the low of the day; set a stop at 1/16 above the day's high.

3. Playing the spread: This one's really simple. Buy at 1/16 above the bid. Sell at 1/16 below the ask. The strategy works best with non-volatile stocks where the spread is at least 3/8 of a point. When successful, you make a quarter point per trade, or $250 on 1,000 shares. You can also short the spread by selling short at 1/16 below the ask and covering at 1/16 above the bid. Problem is, it's not always possible to get in and out at these levels. Market makers may easily spot what you're doing and adjust prices so they blow you out. Often day traders try this tactic several times during the day before they succeed.

4. Grinding: Another relatively simple tactic. Follow the message threads at, for instance, Silicon Investor for a particular stock. When everyone is screaming that the stock is going to make a move, jump in with the mob. Be content with an 1/8 or 1/4 point. Then get out before the rush.

5. Fading the market: With this contrarian strategy, you buy into weakness and sell into strength. That is, you buy stocks with small percentage declines relative to the market. You're hoping they'll gain when the market reverses. Hold off buying until the stock trades above its opening. Reason: Previous buyers of the stock will sell to prevent loss, thus driving the price down in the short term.

6. Shop the final hour: Stocks often ease off their highs of the day during the last hour of trading. Why? Because day traders and market makers seek to exit their positions and lock in profits. A price downturn often occurs during the last hour of trading as many seek to exit their positions. This downward momentum can create some lucrative short-selling opportunities.

Article Source: www.superfeature.com

Five Reasons to Consider a Remortgage

2006-12-02T06:06:00.000-08:00

By: Nicholas Hunt

Gone are the days when we took out a mortgage and stuck with it for life, until the debt had been completely repaid. The remortgage market is big business these days, and taking a look at the options available could considerably improve your finances. What are some of the reasons for considering switching your mortgage?

1) Get a better deal: Are you sure that your current mortgage is the best one you can get? The market is very competitive and mortgage providers are desperate to attract new business, usually by offering special deals to people who switch their mortgage over to them. As well as aiming for a lower interest rate and lower monthly repayments, remortgaging could net you other benefits such as cash back, free home insurance, or other valuable extras depending on the deal.

2) Lock in a low rate: Interest rates are at historic lows, even taking into account the recent rise. Many experts are predicting that rates will begin to rise again over the next few months and years, leading to more expensive mortgages. By replacing your variable rate mortgage with one that has a rate fixed for a few years, you can protect yourself against future rises in the interest rate.

3) Release equity: As house prices have gone through the roof over the last decade or so, many people find that they are sitting on a large amount of equity in their home - the difference between how much their house is worth and what the outstanding mortgage balance is. Taking out a remortgage that will pay off your current mortgage and also give you some extra funds is an effective way of unlocking some of this stored wealth, providing you with the funds you need for home improvements, a holiday or wedding, or any other large expense. It is often cheaper to raise the money with a remortgage than by, for example, taking out a personal loan.

4) Debt consolidation: It's well known that the public as a whole are in debt to a level never seen before, with easy access to relatively cheap credit providing the temptation to 'live now and pay later'. Nonetheless, the money has to be repaid at some time, and credit cards and the like aren't an ideal way of obtaining long term credit. Taking out a remortgage large enough to cover both your mortgage and your other debts will simplify your finances, leaving you with a single monthly repayment to make, which will usually be for a smaller amount than your total repayments at the moment.

5) Change your mortgage type: People's circumstances change over time, and what might have been an ideal mortgage a few years ago when you took it out might not be the most suitable for your current needs. Maybe you want to switch from an interest-only mortgage to a capital repayment one, or you might want to take advantage of some of the more recent features of mortgages such as flexible payments or offsetting - a remortgage can give you the chance to get a deal more in tune with your current circumstances.

Bearing all the above in mind, a remortgage might seem like an ideal way forward for restructuring your finances. It's important to remember though that the decision to remortgage is not to be taken lightly, as you could potentially be putting your home at risk if you get it wrong, and so it's essential to seek the advice of a properly qualified mortgage advisor if you are in any doubt.

Article Source: http://www.superfeature.com

Mortgage Advisor Jobs

2006-12-02T05:58:00.000-08:00

By: Joseph Kocsis

We all aspire to the nice things in life but rarely do we find the ideal job that gives us job satisfaction. Before deciding on any career, you have to identify your strengths and weaknesses and decide on what career path you want to follow. Having decided that you would like to pursue the mortgage advisor career, you need exposure. The more potential employers that you can meet and talk to, the better the chance of finding that mortgage advisor job.

The mortgage market is a recession proof business, as when times are good and consumer confidence is high, people tend to borrow for cars, holidays, home improvements and many other things. Then, when consumer spending has peaked and the economy slows down, many people experience difficulty repaying their debts and meeting their other financial commitments. In such circumstances, it is often necessary for them to consolidate their debts into one lower monthly repayment by remortgaging. Remortgaging clients, debt consolidation, raising capital for home improvements, financing the purchase of holiday homes are all solutions that a mortgage advisor will be able to provide and it will keep them very busy in times of recession.

* Are you intent on being successful?
* Are you determined to become a high earner?
* Would you like to be in charge of your own destiny?
* Do you think that you would enjoy helping people with their finances?

Most mortgage advisors working for banks, building societies and estate agents work on a salary plus a bonus system and the employer keeps the bulk of the commission income generated from the sale of mortgages and insurances. The packages on offer to the employed UK mortgage advisor can range from a minimum of £15,000 pa plus car and bonuses, to £35,000 pa plus car and bonuses, dependent upon what part of the country you work in.

The self-employed mortgage advisor however can determine his/her own income but this can depend on a number of factors.

· How skilled are they?
· Do they arrange insurances?
· Do they and can they charge a broker fee?

For the right person the job of a mortgage advisor can be extremely satisfying and for the successful once the world is their oyster as the opportunities are endless. Let your imagination run away with itself and picture the nice house, the quality car, the white sands on holiday and the clothes that you have always dreamed of.

For the inexperienced individuals who cannot expose themselves to the potential employers there is help available. Employment agencies, referral systems and inside knowledge are all areas that will help the determined mortgage advisor job seeker.

As the Marketing director of Money Marketing Limited a UK company that trains budding mortgage advisors to CeMAP standards and beyond, we have established a number of UK contacts with potential employers and employment agencies to help our CeMAP training delegates to find mortgage advisor jobs within the UK mortgage market.

If you would like help with locating the ideal mortgage advisor job, we have access to over 1400 mortgage advisor jobs in the UK. Visit our website at http://www.mortgage-advisor-jobs.co.uk or contact Helen on 01254 686111 for more information about mortgage advisor jobs

Article Source: http://www.superfeature.com

How To Save Money On Your Mortgage

2006-12-02T05:51:00.000-08:00

By: Joe Kenny

For most people, purchasing a home is one of the biggest investments they will ever make. Buying a house or apartment usually involves a lot of money, especially if it is mortgaged. The key to saving money on your mortgage lies in getting the best available one for yourself. Although that may sound like an obvious solution, essentially it is about utilizing available avenues that will help you save quite a lot of money, especially if you make your monthly payments on time. While everyone wants to pay off their mortgage as soon as possible, it requires considerable amount of planning to transform wishes into reality.

Ways to save money on your mortgage:

There are several methods to help you save money on your mortgage:

Seller financing: This allows you to pay the amount directly to the seller over a period of time, rather than borrowing money and paying all of it at once. It enables you to negotiate a better rate of interest, and avoid the numerous administrative fees charged by lending institutions. Moreover, it saves you from the frightful mortgage insurance. It also provides you with a secure source of income and returns, without having to pay capital gains tax. The seller holds the house as a collateral that can be taken back, if the buyer defaults.

Debt Consolidation: When you reimburse your mortgage, you often pay off a number of unsecured debts such as credit cards, charge cards, personal loans and the like. The rates of interest on home loans are relatively lower than those on unsecured debts. Therefore, debt consolidation would help you to bring down your monthly payments. In other words, you would be paying an interest rate that applies to home loans on all your unsecured debts.

Bi-weekly payments: This enables you to make your mortgage payments at a faster rate. You do this by paying half of the monthly payments every two weeks. Hence, you will have paid 13 monthly payments by the end of the year, instead of 12. Thus, by using this method, you could save a lot of money on the interest of your mortgage.

Refinancing: It is one of the best ways to save money on your mortgage. It not only helps you reduce the term of the loan, but saves a lot on the interest, and even lets you get back your home sooner. You should opt for getting a loan at a fixed rate, which would protect you from having to make very high monthly payments because of increased interest rates, provided you have an adjustable rate of mortgage. Refinancing would prove to be the best available option to get a better mortgage, especially if the value of your home has increased since you bought it.

Pay off the interest as soon as possible: It might prove to be advantageous to pay off the interest or principal, comparatively sooner than what you would have, in the normal course. This depends upon the mortgage you have, your financial strength, and the rate of interest.

Fixed mortgage: This is the safest way to save money on your mortgage. With a fixed rate of interest, you will always know the status of your monthly payment. Hence, there would be no scope for uncertainties, and even if the interest rate drops, you can easily refinance to a lower rate of mortgage.

Since paying off the mortgage is one of the necessities of life for most people, you need to opt for ways that ease the burden. It is important not to take the published interest rates of a mortgage lender as the final word. Gather information on all the available rates of interest, and various mortgage features, from lenders in your area. Assess the pros and cons of each, and decide on the one that meets your requirements. You should be able to negotiate the interest rates effectively, and not hesitate asking for better terms. Therefore, keeping the above-mentioned methods in mind, you will be able to save a considerable amount of money on your mortgage.

Article Source: http://www.superfeature.com