[ed. note: Today we have another member of the Gumshoe fraternity of special columnists to introduce — to a select group that includes Myron Martin writing about junior mining stocks and Michael Jorrin sharing his “Doc Gumshoe” thoughts about health and medicine, we’re adding a blind squirrel. Jim Skelton, who modestly notes that “even a blind squirrel finds an acorn every now and again,” will bring a valuable perspective to the group — he won’t necessarily be a “stock picker,” but he knows this business in a way most of us never will. His first column will come up over the next week or two sometime, and we’re not sure yet whether his pieces will be free for all or restricted to the Irregulars… but without further ado, I’ll let him introduce himself to you here today]
This months adventure: “What’s Old May Become New Again”
Hello and greetings to all residents of Gumshoeland! My name is Jim Skelton, a/k/a “The Blind Squirrel”. I am coming to you from the beautiful Palm Beaches of South Florida, my home for the past 40 years. My purpose here? I will be writing from time to time with an eye toward providing you, the Gumshoe reader, some insight into aspects of the investment process itself, the investment firms that provide the platforms for your use, the products they put out, and the way Financial Advisors and clients interact for mutual benefit. Hopefully a mutual benefit, of course. I can promise you that much of what you’ll see and learn is going to be material that isn’t found anywhere else. Why be just another voice crying out in the wilderness, extolling the virtues or vices of yet another equity when there are already thousands of such cries for you to pick and choose among? No, there will be little if any of that. We’re going on a trip that will take,some very different roads. Roads that may lead you to a greater understanding of how all this works, either for or against you. But being another stock “guru?” Not this Blind Squirrel!
After following a Blog I got up and running on the Gumshoe site last August entitled “Stellar Biotechnologies – The Real Deal or Just More Tulips?”, Travis thought it might be a good idea to bring me onboard for a trial run to see if my experience in the financial world could be something of a value-added nature to have around. So here I am – and yes, I am pretty much as amazed as you might be to find this happening. Thanks, Travis – I appreciate your confidence. I’ll do my best not to disappoint!
To get this party started I need to tell you something of my life experience, qualifications, and how I wound up on these pages. These past 65 years have seen me wander down many and varied roads, the most signifigant of which was the 20 years I spent working as a Registered Financial Consultant with four of Wall Streets largest and most respected firms: Merrill Lynch (1984 – 1991), UBS PaineWebber (1991 – 1998), Prudential Securities (1998 – 2000), and Edward Jones & Co (2000 – 2003).
Prior to that career I was the CEO of my own small retail business dealing in ladies swim and resortwear. That got underway in 1972 and by 1978 I had five shops up and running – and me running to keep up. Many valuable lessons learned over the 12 years spent doing that. Starting a small business from scratch and working to make it successful is no small thing. And since I was truly a “small business”, that is code for saying the CEO also sweeps floors and cleans bathrooms when necessary.
Well, as I said, I did this from 1972 until 1984 when I found a new opportunity in the financial services sector. I was vetted by the good folks at Merrill Lynch, hired into their training program, and in June of ’84 took a seat at a bullpen desk in the downtown Ft. Lauderdale office, new series 8 license in hand and a ton of optimistic thoughts filing my head. Not a single doubt in my mind that I wouldn’t become a million doliar producer before the end of 1987, if not sooner. I picked up the phone and got busy “dialing for dollars” off a list of supposedly qualified investors I had bought for that purpose. And my real world education began.
There is no reason to get down into the weeds about my experiences and education with those firms at this point. There will be time and place for those “war stories” later. Just understand that I worked with hundreds of clients, helped manage tens of millions of dollars of portfolio assets, and went through some of the best of times in the market – the Great Bull of ’82 – ’99 for example, and the absolute worst – the Crash of October 1987.
In late 2002 I decided I needed to conclude this chapter of my life. Get out there while I was still (barely) young enough to interest an employer and find out what else I might be interested in and good at. So, I closed my Edward Jones office and on January 2nd, 2003, found myself intentionally unemployed and seeking new adventure. It was a career of exactly 20 years to the very day.
My first step was to get trained and licensed to become an industry-side Arbitrator for the SEC. You know – one of those people that sit as judge and jury when an individual investor brings suit against a (usually former) broker and/or his/her firm for some form of malfeasance, real or imagined. I served on a few cases over the next three years and got an entirely new view of what can and does go on between clients and their brokers. Sometimes the broker has been a very, very bad boy. And sometimes the client is just whining about things lost when they knew very well the possibility of that and the risks they took. Hearing their stories was an education that cannot be purchased.
But that role is just piecemeal, occasional work. I began to cast about, finding new opportunity as I went, adding to my experiences (and licenses) in the financial world. And some off-the-wall things mixed in just to keep things interesting. I went to work with an insurance agency that represented Blue Cross – Blue Shield and discovered the world of health insurance. Didn’t care for it. I moved on to Humana just as they, and others, were preparing to roll out that then-new government program we all know as the Part D Prescription Drug plan. And I was able to work with the annuity and supplemental health insurance plans they offered in the Senior markets as well. Interesting work, but not for me for various reasons. By then it was 2005 and I decided that Real Estate was my next stop, so I got licensed as a R/E agent and signed on as an independant contractor with a small regional firm. Bad timing, Within six months the bubble began to deflate and home sales dry up. So I leveraged that experience and came onboard with a Mortgage Brokerage firm in my area – another license in hand. And that, too, began its own implosion as refi apps and new home sales shrunk. It became harder and harder to find qualified applicants.
I even went to work for about 3 months as a sales rep for a large auto dealership, selling a new and exciting product just being introduced to the market – Hummers! That was actually my first venture away from financial firms, the Spring of 2003.That was a TON of fun but things changed rapidly at the dealership. Promises that had been made getting broken, changes in commission schedules seemingly on a daily basis, and the realization that a lot more people liked the idea of owing one of those beasts than could afford one. And the work hours. Geez, Louise .. I hardly got to see my wife at all. So I cut that loose, but never regretted it.
After all of this, in the summer of 2007 a personal event occured that took me totally out of the game for some four years.It was health related, and I would up losing my left leg and most of the use of my right. It cut short my ability to work, which led to other unhappy things unfolding in my life. All came to a head in 2011 and I began to recover that which had been lost and rebuild a life. And that is where I am today. I’ve seen great success, been brought low by unfortunate circumstance, and found a way out of the situations with a boatload of knowledge that I am pleased to share when appropriate. That’s what I plan to deliver to you over time so that you may learn a thing or two that will probably never be spoken of elsewhere. I hope you enjoy and benefit from it.
Lastly, I would be remiss if I didn’t remind you that all I write, as well as that of other contributors on Stock Gumshoe, is never to be construed as financial advice or recommendation of any particular idea, investment, or strategy. We are JOURNALISTS, not ADVISORS. There is a huge difference – just ask the regulators at the SEC. I will always disclose if I am long or short any stock I might mention and not trade in them for at least 72 hours after publication. I urge all readers to seek professional assistance from a registered Financial Advisor or CPA before taking action on any ideas you might find interesting as they could relate to your personal situation.
So, I’ll be back atcha soon with the first real edition of the Blind Squirrel Diaries. Until then, may all the acorns you uncover be free of wormholes.
Jim Skelton
The Blind Squirrel
DISCLAIMER: I am long Stellar Biotechnologies (SBOTF). I will not transact any trades in that position until this article has been released for at least 72 hours.
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What? You didn’t think of BS and it’s meaning years ago? tell me again how much you’ve learned over the years ! ok , just pulling your fuzzy little tail.
Mr. Skelton,
I am just like you, except that after I graduated from the University of Texas at Austin, School of Pharmacy, worked for HCA hospital for 3 years and the rest of the 33 years, I was a PJc, president and janitor and CPA of a small independent pharmacy. I had good 33 years be my own boss. Making good money, working 12 to 14 hours a day. I am 63 years old, I sold my business because of my legs. ( occupational disease ). I am selling NeriumAD age-defying creams, an independent brand partner for Neerium International.I enjoy it, I am still my own boss. I am a life time member of Stockgum Shoe. Save of lot of money because Travis’ Thinkalotor. Any Readers of this site like to buy NeriumAD creams for their sweet hearts? Here is my websit:
http://www.adtskin.nerium.com
Waiting for your next issue.
Good lucky.
Jack/Travis and fellow Gum Shoes,
I’m very new to investing. I was wondering if you have a preferred method and formula for finding out the intrinsic value of a company. I understand that it is arbitrary especially when it comes to the guesstimate of a company growth rates but I was hoping you can provide your insights. Thanks!
Tony, thanks for the reply. As someone new to investing, the best advice I can give you is this: tread lightly as you go. By that I mean pay careful attention to the outside influences that are everywhere in this fast-paced, internet-driven world. As you probably already know, there are literaly thousands of voices crying out to you every day to buy this or sell that, and for every opinion on one side of that discussion/argument there will be another equally insistent and compelling argument for doing the opposite.
I will not be making individual stock recommn=endations. Even if I had the urge, you have to understand that, as financial journalists, we are restricted BY LAW to refrain from any such activity. We are to provide commentary about situations, but absolutely not become “advisors” in any sense of the word.
What I can and intend to do is provide readers sorie of some of the client/broker situations I found myself in over the years and the outcome of those cases. Some will have a happy ending, some not. All have lessons enbedded in them about investor behaviour that can be valuable to learn, especially new investors such as yourself.
Here’s a thought for you. Since you are seeking guidance, spend some time on the Stock Gumshoe website exploring the section where others comment on the various newsletter services available and their experience in following the authors advice. Since these comments come from actual subscribers to the service and not the owner/publisher/writer, I think you can have a high level of confidence that what you read isn’t just hype. You may in time find a letter that is affordable for you and provides some solid guidance and picks. But beware – EVERY NEWSLETTER OUT THERE claims to have found the magic bullet and will lead you to riches. Don’t, please don’t, fall for that no matter how good the marketing and compelling the case thay make. Good advisors are rare. Great ones near non-existient.
But most of all, no matter what your level of understanding at this point is, you need to be constantaly READING. Just read, my friend. You may not understand all the acronyms, ratios, and other such stuff, but by immersion through reading that understanding will come. And BTW, when you get the chance, ask questions. Lots of questions. Nobody is born understanding all this stuff, all had to learn from the ground up. If somebody blows you off because you might ask a simplistic question, forget them. Not worth your time or concern.
And amybe, jst maybe .. dare I say this in a community such as we have here .. just maybe you sould at least go to a full service brokerage firm and interview a couple FA’s to see if they can work with you at least forr now. Don’t just take what is placed in front of you, though. I suggest people sit and discuss what they are looking for with at least three FA’s, maybe from different firms, before deciding on who you could work with. Don’t think of this as them interviewing you for acceptance. It is you who will be doing the “hiring” so it is YOU who needs to ask the important questions. In fact, I’ll be doing a full-blown column on this very thing in the next couple months. Maybe hold off until you read that before going in to talk. Your call.
So welcome aboard the Blind Squirrels train with his band of travelling nuts. Become one of them and relax, enjoy the ride!
Yo Blind Squirrel
Sounds good man. Cool background. I will look forward to your… hmmm… postulations and associated interlocution.
Warm Regards
George B aka “Interlocutor”
JIM: Sage advice; “you need to be constantly READING.” all the wisdom of the ages is recorded in books. I developed a passion for knowledge, gleaned from books early as a child, and it has never diminished. What I have found however, is that listening to the common media, or what I call the “establishment” (TV and newspapers) will frequently mislead you because it is designed by government to influence public opinion to bring it into line with government control of your life. The one thing not taught in government schools at any level is the ability to be a “critical thinker” so your advice to “ask lots of questions” is bang on.
Myron:
Yep .. ya gotta READ. Anything and everything. Then do one more thing. Think. Talk about stuff that schools today don’t teach! Socrates and Plato are spinning in graves. But wait .. maybe I’m wrong. Seem a lot of young folks actually do think sometimes. Problem is, they think about Miley Cyrus and Justin Beber, and such. Wanna be like those fine examples of what a success is. Sheeesh!
You posted another reply somewhere but I’ll answer that here, too.
No, I’ve never posted on Pinnacle. My only other published writings were on a slightly different subject: Harleys, and riding all over this beautiful land of ours in the saddle, finding new places and people and discovering the REAL America that is out there away from the Interstates and urban centers. I miss that so much I can’t say (the riding and the extended trips on the road). Don’t get me started ..
And I appreciate your thoughts on buy and hold vs. profit trading as well. We are pretty much in sync on that, too. I have core portfolios that don’t change much unless a serious event occurs to warrant a sale. But I also have two portfolios that hold what I call “agressive growth” and “High risk speculation” stocks. Those I will trade anytime a signifigant change in outlook occurs or a outsized move up happens. Trees don’t grow to the sky – at least not overnight. So yeah, I’ll move in and out. Did a fair amount of that with the stock I started the blog about, Stellar Biotechnologies and it worked out fine. I’m totally out of SBOTF but plan to re-enter at a price I think represents an opportune moment. But not today.
One other thing I’m curious about that not many folks may even know what I mean. I have a “bug-out bag” on the ready constantly. It contains, among other things, certain assets that I’d need in a calamity, natural or man-made. Only I know what is in it and only one other person knows where to find it in case I’m done in. Military taught me the value of having that 24/7 ready to go. Do you keep something similar – or or you willing to say? No, I’m not one of those survivalists you see on TV, but I am ready in a minimal fashion. Just in case. Have I said too much?
May I call you Jim? I would be most grateful to be counted among traveling “nuts “.
As to Bug-outbag I fervently agree that everyone needs to plan to survive 72 hrs
without any help.Also always carry sturdy shoes when traveling by auto & also water
in frequently replaced bottles. You may have to walk away from clogged freeway. Make
plan known to family so contact may be re-established. Is good to have contact in
different state to call family (by landline) in your city. When systems go down, Cell phones are 1st to go in panic. If there is nuke “incident” anywhere, likely panic in all cities for fear of 2nd incident will change U.S. life in ways we cannot imagine. All we need is word ‘radio-active’ & IED to spread. Don’t count on any system working.
Welcome back old friend. I too have been ‘lurking’ 😉 Don’t want to comment publicly about the recent turmoil but good to see you’re still around. RV