Thomas Law Group L.L.P

Barron's 10 Favorite Stocks for 2011

Wed, 12 Jan 2011 13:56:31 -0500

Barron's 10 Favorite Stocks for 2011

Recognizing risks as they come to the fore may help you make...

Mon, 10 Jan 2011 15:25:33 -0500

Recognizing risks as they come to the fore may help you make mid-course corrections in 2011 and beyond.

-Andrew Tanzer (Kiplinger)

uncertain times almost always offer some opportunities

Mon, 10 Jan 2011 14:47:45 -0500

-Reshma Kapadia & Russell Pearlman

Today, basically, on Wall Street, the big money is made by...

Fri, 07 Jan 2011 17:44:39 -0500

Today, basically, on Wall Street, the big money is made by taking risks.
- Bernard Madoff

Many people are anxious to begin investing, however they are not sure exactly how the stock market works, there are many options out there with various benefits and risks. One must take to account exactly what they are investing their hard earned money into and understand the risk they take once they enter the stock market.

Fri, 07 Jan 2011 17:44:00 -0500

-Valeh Aboonour

"I don’t throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every..."

Fri, 07 Jan 2011 17:40:24 -0500

“I don’t throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought.”

- Gordon Gekko

"What is the definition of insanity. It is doing the same thing over and over and expecting a..."

Fri, 07 Jan 2011 17:38:27 -0500

“What is the definition of insanity. It is doing the same thing over and over and expecting a different result. By that standard, most of us are insane. But not at the same time.”

- Jake Moore (Wall Street Money Never Sleeps)

NY TIMES: Can you hear a bubble bursting? The head of a unit at Goldman Sachs "decided the Facebook deal was not suitable for his clients, in part owing to the high valuation and to a mismatch with his investment criteria. The $450 million investment values the Web company at $50 billion. After Goldman’s deal, some industry experts cautioned that Facebook’s growth would need to accelerate rapidly over the next couple of years to justify such a steep price — a risk with many brand-name technology upstarts."

Fri, 07 Jan 2011 17:38:23 -0500

NY TIMES: Can you hear a bubble bursting? The head of a unit at Goldman Sachs "decided the Facebook deal was not suitable for his clients, in part owing to the high valuation and to a mismatch with his investment criteria. The $450 million investment values the Web company at $50 billion. After Goldman’s deal, some industry experts cautioned that Facebook’s growth would need to accelerate rapidly over the next couple of years to justify such a steep price — a risk with many brand-name technology upstarts.":

inothernews:

I guess that, as a layperson, I’m seeing for the first time one of the major reasons Facebook won’t go public: because going the traditional route — via IPO — there is NO WAY IN HELL Facebook is worth $50 billion. No way.

"The richest one percent of this country owns half our country’s wealth, five trillion dollars...."

Fri, 07 Jan 2011 17:28:05 -0500

““The richest one percent of this country owns half our country’s wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It’s bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you’re not naive enough to think we’re living in a democracy, are you buddy? It’s the free market. And you’re a part of it. You’ve got that killer instinct. Stick around pal, I’ve still got a lot to teach you.””

- Gordon Gekko

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Fri, 07 Jan 2011 17:22:06 -0500

"The market might have rallied in late 2010, but many individual investors missed the party...."

Fri, 07 Jan 2011 17:12:30 -0500

““The market might have rallied in late 2010, but many individual investors missed the party. Fortunately, the stocks of several large companies remain cheap””

- Reshman Kapadia and Russel Pearlman

"Once in disrepute, secret warfare is now embraced even by the Obama administration to fight..."

Fri, 07 Jan 2011 17:08:40 -0500

““Once in disrepute, secret warfare is now embraced even by the Obama administration to fight terrorism and weapons proliferation””

- The Wall Street Journal, Max Boot

3 Steps to Successful Stock Market Investing

Fri, 07 Jan 2011 17:04:20 -0500

Friday, January 7, 2011

Stock Investing for Profit Stock picking is a very complicated process and investors have different approaches. However, it is wise to follow general steps to minimize the risk of your investments. This article will outline these basic steps for picking high performance stocks. Are You a Long or Short Term Investor?

Step 1— Pick Your Market Investment Strategy.

Decide on the time frame and the general strategy of your stock market investment. This step is very important because it will dictate the type of stocks you buy. Suppose you decide to be a long term investor, you would want to find stocks that have sustainable competitive advantages in the market along with stable growth. The key for finding these stocks is by looking at the historical performance of each stock over the past decades and do a simple business S.W.O.T. (Strength-weakness-opportunity-threat) analysis on the company. If on the other hand you decide to be a short term investor in the market, you would like to adhere to one of the following strategies:

a. Momentum Trading. This strategy looks for stocks that increase in both price and volume over the recent past. Most technical analyses support this Market trading strategy. My advice on this strategy is to look for stocks that have demonstrated stable and smooth rises in their prices. The idea is that when the stocks are not volatile, you can simply ride the up-trend until the trend breaks.

b. Contrarian Strategy. This strategy looks for over-reactions in the stock market. Research shows that the stock market is not always efficient, which means prices do not always accurately represent the values of the stocks. When a company announces bad news, people panic and price often drops below the stock’s fair value [i.e. it is cheap]. To decide whether a stock over-reacted to a piece of news, you should look at the possibility of recovery from the impact of the bad news. For example, if the stock drops 20% after the company loses a legal case that has no permanent damage to the business’s brand and product, you can be confident that the market over-reacted. My advice on this strategy is to find a list of stocks that have recent drops in prices, analyze the potential for a reversal (through candlestick analysis). If the stocks demonstrate candlestick reversal patterns, I would go through the recent news to analyze the causes of the recent price drops to determine the existence of over-sold opportunities. [Most people make the mistake of buying when prices are high and selling when they are low this method allows you to invest in the stock market when prices are low and sell when stock prices are high. — editor]

Step 2. Research Individual Stock Market Selections

Conduct market research that gives you a selection of stocks that is consistent to your investment time frame and strategy. There are numerous stock screeners on the web that can help you find the right Stock Market investments to fit your needs.

Step 3. Diversify Your Stock Portfolio

Once you have a list of stocks to buy, you need to diversify them in a way that gives the greatest reward/risk ratio. One way to do this is to conduct a Markowitz analysis for your portfolio. This type of market analysis will give you the proportions of money you should allocate to each stock. This step is crucial because diversification is one of the free-lunches in the investment world. These three steps should get you started in your quest to consistently make money in the stock market. They will deepen your knowledge about the financial markets, and will provide you with a sense of confidence that helps you to make better trading decisions for your stock market investment portfolio.

-Zheng Fang

Buy low and sell high

Fri, 07 Jan 2011 16:59:26 -0500

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Thu, 06 Jan 2011 17:13:23 -0500

"think there is an absolute place for market investments. But they should never be the basis of..."

Thu, 06 Jan 2011 17:05:55 -0500

“think there is an absolute place for market investments. But they should never be the basis of one’s retirement. They should be an additional piece on top of a basic, secure, guaranteed retirement benefit.”

- Barbara Boxer

Top 10 Investing Tips for 2011

Thu, 06 Jan 2011 17:02:54 -0500

Top 10 Investing Tips for 2011