thanks for the Motley info. There are many of these guru’s (that is another one) around that are selling information which a lot of it is crap. I tried one, called gamechanger, Yareds game changers. A lot of stories about walmart, apple, microsoft, Rim but no solid analysis on the future picture. They completely missed hedging the weak US dollar against other currencies, only recommended American stocks, They listed a stock CHIPOTLE as a must buy, really cheap they said, market advantage was excellent mexican food at a resonable price, lots of chain stores.. the next Macdonalds.. it will be great..buy at under $95. the next day or 2 days later it was on their loser list.. must sell.. it was tumbling quick, from 98 to 94 to 92.. 90 and then the tomatoe samonella poisoning happen in california happened, probably around $75 today. They missed the commodity risk, and the weak consumer support, very very poor analysis. the recommendation was based upon performance when Macdonalds did own them. The current management is not Macdonalds as they sold them, realizing, health foods was the next trend in restaurants, not mexican food, another miss by GameChangers.
Like many of these services their analysis is skimpy, sensationalistic and nothing that can’t be found anywhere on the internet or in a good financial paper.
Solid investing is built on high return dividends with companies with solid balance sheets, good market share and excellent management. Dont believe me however, google “the highest dividend companies” and you will find the wall street studies done over a 30 year period. Those are the facts Jack!
I dont need 30 percent appreciation on a stock that is volatile. I much prefer a 8 to 10% dividend, slower long term growth of 5% as a minimum giving me an annual return of 13 to 15% on dividend reinvestment. The stock is not suspectible to every political bit of bad news, holds steady thru the bad times..does subprime mortgage ring a bell?? and does very nicely in the good times. A $300,000 portfolio setup this way generates $30,000 in income or about $2400 per month and another $15,000 in growth minimum in one year. Not bad in my books.. Leave it alone for 5 years.. and see what its worth then after taking the dividends and reinvesting them in more stock. So take all these astounding growth rate stocks, the wild capital gains.. and quite frankly .. stuff them. They are in the short term a great way to lose as people panic when prices drop or they play the short term game and sell quick on a profit, but when the stock doesnt go up or when it tanks a bit, they are forced to hold it, reasoning it will come back, while in reality it keeps going down as it has no solid financial reason to appreciate.. and oh..it doesnt pay a dividend. so you lose and lose.
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here is my examples of not sleeping good at night
Google – P/e ratio – ridiculously high, no dividend, from $700 to $450 in 6 months, US earnings tanked, Asia saved their bacon last quarter that few predicted. Do you want to be exposed to the politics of china? india? $70,000 for a hundred shares and you can lose half of that in 6 months. Their growth rate is an exponential curve and not sustainable. First time they report a bad quarter.. watch out!

take $70,000, lets take a stock Permain Basin Royal Trust (NYSE: PBT) 1 year performance, $14 to $27 last month to about high $23. so about 75 to 80% growth. Every month you received a $.20 dividend per share.
so take $70K (5,000 shares) x 1.75 growth rate, about $122,500 in market value. Dividend was $.10 per month per share @ $14 or 8.5%, at $23.75 it is $.20/month or 10.5% which buys another 50 shares per year. Guess what.. it wont drop.. the markets wont let a stock paying a dividend of %10 do that. pretty boring stuff… but, i sleep good at night.

Apple – announces their new product, stock tanks $15 per share, no dividend, P/e ratio 35:1, good company, STeve Job is good but, reward your shareholders!!! what is there to stop this stock from going to $100 per share? If they lose one percent market share to Nokia or Rim.. just watch! nothing. A decent dividend would reward the shareholder and make the price sustainable or be a hedge if they are losing market share and prevent a drop of 40% in one week.