USA stock market daily report by Millenium Traders (August 13, 2009, Thursday) 

After two months of gains retail sales reports show a drop of 0.1% in July compared to a gain of 0.8% in June, economists expected a rise by 0.6%. Sales excluding automobiles and auto parts reported an unexpected drop of 0.6% after a gain of 0.5% in June, economists were predicting a gain of 0.3%. Retail king "Wal-Mart" posted a surprising loss of 1.2% in second-quarter same store sales, however shares of Wal-Mart continued to gain, rising 88 cents per share for the quarter. Departments store sales fell 1.6%, including Target, who posted a decline of 0.6%, which is a little surprising after Macy's released they made profits in the second quarter "Consumers continued to maintain a tight hold on their wallets, worried about rising unemployment, falling home prices and tight credit," Steven Wood, president of Insight Economics, told Bloomberg News. "Overall economic activity will not fully revive until consumer spending rebounds." More bad news was reported when the Labor Department released that jobless claims rose by 4,000 to 558,000 week ending August 8th, experts expected claims to fall to 543,000. Although jobless claims reports were not so uplifting, the number of people continuing to collect benefits fell 141,000 to 6.2 million week ending August 1st to it's lowest level since April. 

  

Indian stock market daily morning report by Keynote Capitals (August 14, 2009, Friday) 

Discussions on new tax code, strong global cues and a strong recovery in industrial production helped the Sensex gain almost 500 points yesterday. The markets continued to strengthen after the announcements that Germany and France reported positive GDP. High beta real estate, banks and metals stocks led the rally, while recent outperformers IT and pharma stocks saw lackluster buying. Asian markets opened strong today as well. However, they are seen correcting on profit taking. We expect a positive opening for the Indian markets today following cues from the Asian markets. Weak monsoon may however impact the sentiment; traders and investors may try to book profits at higher levels, today being the last day of the week. Commerce and Industry Minister said that India's economy can achieve the same level of growth in FY10 seen a year earlier in spite of worsening dry conditions that threaten to dent its nascent recovery. He expects that the economy would achieve 6.7% growth. 

  

World stock markets daily report (August 14, 2009)

So when did the US market ever start caring about Europe where allegedly the recession is over. Odd that it sure doesn’t feel like a Renaissance on Main Street. US Retail sales (yes the US consumer is still approx 70% of the economy) were a total disaster, jobless claims jumped and foreclosures are a record high, but yet the market ended up because of “better than expected” earnings from Wal-Mart and legendary investor John Paulsen taking a stake in Bank of America and Regions Financial. Downright perverse. The decoupling of the market from the real economy seems to be at all time highs. The S&P500 closed up 0.7% to post a new cyclical high, led by the building materials and financial sectors. Commodities, especially the base metals, also traded positively, with the price action there continuing to diverge from that suggested by the likes of the Baltic Dry Freight Index (now down for 10 sessions in a row). 

HOT STOCK

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8/14/2009 †Company Name
Price
Change / %Change
ARCC
Ares Capital Corp
The investment company said it’s offering to sell 8 million shares and plans to use part of the money to pay debt.
9.22
-0.49 / -5.05%
BA
Boeing Co
The plane maker stopped production at a 787 Dreamliner facility in Italy that was making parts of the plane's fuselage, The Wall Street Journal reported. Its subcontractor, Alenia Aeronautic in Naples, stopped work two months ago after structural flaws were discovered at where the wing and the fuselage meet.
44.87
-1.75 / -3.75%
BKS
Barnes & Noble Inc
The largest U.S. bookstore chain was cut to “underperform” from “neutral” by Credit Suisse Group AG, which said the company’s decision to buy back Barnes & Noble College Booksellers Inc. increased risk and eliminated free cash.
20.87
-2.11 / -9.18%
GNW
Genworth Financial Inc
The life and mortgage insurer that failed to get a U.S. bailout was downgraded to “sell” from “hold” by Citigroup Inc., which cited “a very uncertain earnings outlook and capital position.”
8.28
-0.47 / -5.37%
GRRF
China GrenTech Corp Ltd
The wireless products and services company reported second- quarter profit of 8 cents a share, four times the average analyst estimate.
5.97
+1.91 / +47.04%
JCP
JC Penney Co Inc
The discount department store chain swung to a second-quarter loss of $1M, or break-even on a per-share basis, compared with a profit of $117M, or 52 cents a share, in the year-earlier period. Sales fell 7.9% to $3.94B and same-store sales dropped 9.5%.
31.29
-2.05 / -6.15%
JWN
Nordstrom Inc
The upscale department store operator’s second-quarter net income fell to $105M, or 48 cents a share, from $143M or 65 cents a share, in the year-ago period. Net sales for the quarter fell 6% to $2.14B as same-store sales fell 9.8% from a year ago.
27.87
-1.89 / -6.35%
TKTM
Ticketmaster Entertainment Inc
The ticket broker’s second-quarter profit fell to $6.9M, or 12 cents a share, from $23M, or 41 cents a share, in the year-ago period. Revenue fell to $355.1M from $382.4M.
8.92
-0.85 / -8.70%

US Markets
Actives
Gainers
Losers
Widely held
Dow 30
Aug 14 9:14am †
Change
%Change
Level
Dow
-13.00
-0.14%
9,321.00
NASDAQ
-16.75
-1.03%
1,615.00
S&P
-7.70
-0.76%
1,005.80
DJ Totl Mkt
-103.08
-0.99%
10,333.27
Russell 2000
-11.29
-1.96%
563.90
Philadelphia Semiconductor
-7.71
-2.55%
294.65
Dow Transports
-68.20
-1.81%
3,705.92
Dow Utilities
+0.71
+0.19%
373.07
NYSE Composite
-66.28
-1.00%
6,537.82
AMEX Composite
-16.33
-0.96%
1,686.85
Morningstar Index
-23.77
-0.95%
2,479.54
*10yr Note
-0.3300
-0.092%
3.558%
*NYMEX Crude Oil
-3.01
-4.46%
67.51
Gold
-7.80
-0.82%
948.70
Open Market Closed Pre-Market *as of previous close

Sepa orders DHA to stop new scheme development

KARACHI: The Sindh Environmental Protection Agency (Sepa) has asked the Defence Housing Authority not to create third party interests or to initiate any development work in it’s recently launched residential-cum-housing scheme without seeking environmental clearance from it first.

Sources in the provincial environmental watchdog said that the newly appointed Director-General of Sepa, Naeem A. Mughal, in an official letter, had informed the administrator of the DHA that the authority had so far not submitted any environmental impact assessment report to Sepa regarding the commencement of a major development project off the Superhighway, but started inviting applications from the general public, which was tantamount to violating the provisions of the Pakistan Environmental Protection Act, 1997.

They added that the DHA had been asked to submit its response to Sepa in writing by Aug 8, 2009, regarding the status of the project and also to refrain from initiating any development projects on the land without prior approval of an EIA report, which was supposed to be submitted long before the launching of any project.

According to DHA communications, the authority had started offering plots of various sizes, ranging from 200 to 2,000 square yards, for residential and commercial purposes in its proposed DHA City, spread over an area of about 12,000 acres of land having a four-kilometre frontage on the Superhighway, located in the proximity of the upcoming ‘Educational City’.

Environmental rules make it mandatory upon the owners and sponsors of projects like expressways, bypasses, major roads, housing schemes, bridges, water supply projects, oil and gas exploration projects, power plants, desalination plants, industrial waste treatment plants, industrial, chemical and manufacturing plants, commercialisation projects for roads and residential plots or installation of fuel stations to make sure that no environmental hazards are involved.

For the purpose, the environmental impact assessment is undertaken before allowing execution of such projects, and, according to the environment laws of the country, the relevant government agencies are required to thoroughly review a proposed project right from the time it launches it to when it finally becomes operational.

However, conservation activists have been observing that while agencies appear not as active as they should be, the higher authorities seem lacking in the will to make certain that no mega-project is allowed to be executed without undergoing such an assessment and getting clearance as per the environmental rules.

A source said that not too long ago Sepa was badly criticised for holding public hearings, as part of the EIA proceedings, for a steel plant and a flyover which was already under construction.

Sepa DG Mughal told Dawn that under new initiatives aimed at enforcement and increasing effectiveness of environmental laws and relevant organs, his agency had now decided to issue letters and notices to all concerned and executers of mega-projects and housing schemes, as these needed to be examined for their environmental and social impact and adaptation of mitigation measures right from the construction stage and during the operational phase of the projects.

‘My attention has been drawn to the DHA City project as well, and I feel that development of such a big city on virgin land involving the existing resources, human and wildlife, flora and fauna, hydrology, energy, natural drainage and rain encatchments and land use, needs to be minutely judged in line with the PEPA,’ Mr Mughal said, adding that he had asked the proponent in question to furnish an EIA report pertaining to the project at the earliest.

He said that he had gone through the DHA advertisements and other relevant information and sent a letter to the housing authority drawing its attention to the fact that it was required to fulfil all legal requirements as envisaged in Section 12 of the Pakistan Environmental Protection Act 1977 as well as relevant portions of the Pakistan Environmental Protection Agency Regulations, 2000.

Section 12 of Pepa states that no proponent of a project shall commence construction or operation unless he or she has filed with the federal/provincial agency an initial environmental examination or, where the project is likely to cause an adverse environmental effect, an environmental impact assessment has obtained from the federal/provincial approval in respect thereof.

Foreigners flock back to Karachi Stock Exchange

KARACHI: Foreigners are flocking back to the Pakistani equity market in search of value investing.

In the first two trading days this week, overseas investors were net buyers of Pakistani equity to the tune of $10 million. Figures released by the National Clearing Company of Pakistan (NCCPL) showed that on Tuesday offshore investors bought stocks worth $8.2 million (Rs669 million) and sold them valued at $1.28 (Rs104 million), resulting in net buy of $7 (Rs564 million). Net foreign buying on Monday stood at $ 2.6 million.

There is a visible change of heart on the part of foreign investors reflecting in the gathering momentum on portfolio investment.

For the previous two months (June-July), net foreign buying had aggregated to just about $18 million. But things were worst before.

Foreigners who scrambled for the exit door after the ‘freeze or floor’ was removed, stood out as net sellers of a huge $250 million worth of shares in the five months from January to May.

Mohammad Sohail at Topline Securities Pakistan says ‘net purchase of $18 million (for June, July) is relatively small considering huge inflows in other emerging markets, but the trend has provided some stability to local equities that posted a gain of 7.8pc in the outgoing month.’

Sajid Bhanji at Arif Habib Limited commented that there was possibly a change of perception towards country risk. Investors abroad were realising that Pakistan was after all, not going to go bust. The developments on the IMF funding front were encouraging and investors were entering the equity market to seek the first mover advantage.

He said that worldwide commodity play had started with oil prices pushing forward.
Sohail at Topline said that foreign portfolio investment in Pakistani capital market was steady but gradual, compared to the huge sums flowing in from US and Europe to all the emerging markets where bulls were already on the rampage.

‘A record net inflow was witnessed in emerging markets in the recent past led by China, India and Brazil. In the last two months, Mumbai Exchange saw an enviable inflow of $3.1 billion,’ says Sohail.

He said that in case things go through well with IMF in regard to the next tranche and going forward the country’s request for additional funding was given a patient hearing by the international lending agency, Pakistan stood a good chance of making back to the ‘emerging market MSCI index,’ from which it was downgraded to the less prominent MSCI ‘Frontier markets index.’

But in all that, there was one disconcerting element: The pressure on the Rupee. A stock broker said that some of his old foreign clients were reluctant to seek entry into the equity market until they were sure of the stability of the currency.

‘No one putting their money in dollars wants to make an incalculable loss,’ he said, but he offered comfort with the words: ‘Rupee will stabilise once the IMF funds flow in.’

He suggested that the undervalued, high yield stocks, could receive another boost, if the upcoming Monetary Policy Statement were to stipulate interest rate cuts in line with market expectations.

There have been no firm figures of total foreign portfolio investment in the country, but most brokers see a number rounding off to about $1 billion.

The influence of the off-shore equity investment in local market was thought to be growing, but some of old timers who have seen decades of entry and exit of ‘hot money’, are not much enthused.

‘Everything is subject to the whims of the foreign fund managers,’ says a stock broker. ‘The foreign portfolio investment exits as quickly as it enters,’ the broker commented and added: ‘It is good to see them flocking in, but when they migrate, all that they leave behind is a wasteland.’

Islamabad Stock Exchange Towers

The Islamabad Stock Exchange (ISE) was incorporated as a guarantee limited Company on 25th October, 1989 in Islamabad Capital territory of Pakistan with the main object of setting up of a trading and settlement infrastructure, information system, skilled resources, accessibility and a fair and orderly market place that ranks with the best in the world. The purpose for establishment of the stock exchange in Islamabad was to cater to the needs of less developed areas of the northern part of Pakistan.

The ISE Towers comprise twin 22 storey towers with unique and inspiring amenities, offer futuristically and aesthetically designed offices with panoramic views, is being constructed over a piece of land measuring 5600 square yards in the heart of Islamabad at Jinnah Avenue (Blue Area) which is the hub of all business and commercial activities in Islamabad. The building is facing 400 feet wide Jinnah Avenue on one side and has another entrance from 100 feet wide Nazimuddin Road, besides breathtaking scenic view of the Margalla Hills and the city from the building.

Stocks for the Gambler

If you are a person who loves to gamble consider buying casino and gaming industry stocks. As you know the "House" always wins. Some of the stocks are healthy investments because there is real estate and other merchandise involved. Instead of feeding your quarters into a machine think about investing in the company.

MGM Mirage has a huge presence in the casino, hotel and entertainment industry in Las Vegas. It also has hotels and casinos in Michigan, Mississippi, and Macau S.A.R. Recently MGM Mirage signed a long term strategic relationship agreement with Dubai World. The company is traded on the New York Stock Exchange under the ticker MGM. The stock sells in the price range of $83.

Boyd Gaming Corp. may not be familiar to you, but the company has a large presence in Las Vegas. It owns and operates 11 properties in and around Las Vegas. It also acquired Coast Casinos in Louisiana and is a wholly owned subsidiary of Boyd Gaming Corp. The stock is sold on the New York Stock Exchange under the ticker BYD. The price is in the $40 range per share. Boyd Gaming Corp. is expected to make steady gains over the next three years.

WPT Enterprises, Inc is a company you may know what it produces but not necessarily that much about the company. WPT Enterprises, Inc produces the World Poker Tour and owns the rights to television broadcasting and products branded under the WPT Enterprises Inc name. It is a joint venture between some notables in the gaming industry and Lakes Entertainment Inc. It is a wholly owned subsidiary of Lakes Entertainment. WPT Enterprises, Inc. is traded on the NASDAQ exchange under the stock ticker WPTE. The stock sells in the $3.50 per share range, but who knows it may be a sure fire bet in the long term. There is a great deal of public interest in the World Poker Tour.

Harrah's Entertainment Inc. is a well known name in the hotel, casino, and resorts industry. It has been in existence for over 60 years. It may be one of the largest influences in Las Vegas business ventures. Recently it moved forward on its plan to build a world class sports arena on the Sunset Strip. Additionally Harrah's is involved in the development of a master development plan for Las Vegas. The stock is sold on the New York Stock Exchange under the symbol HET. The stock sells in the range of $85 per share. One thing for sure, Harrah's will be around for the long ride.

All of these stocks provide an avenue of investment for the gambler. The key is to watch the stocks and determine when you want to buy stocks. Timing is everything in this sector. In addition to casino and resort stocks there are some excellent technology stocks. This is the area of the gambling sector that supports the casinos in developing new technology for the gaming industry. The field of gaming technology is always on the move due to new innovations. Whether the casino is making big money or not, the need for new products is essential to attracting new customers.

Investing in Chinese Companies

China's economy has been soaring for some time. It is possible the growth potential is only at the starting point. During the years of its world seclusion. China as a country amassed trillions of dollars in its coffers. American companies that have relocated some of their operations to China has added even more capital to the China economy. The Chinese are wise investors and do not seem to make a bad deal in any of their financial transactions. China calls the shots in the deal making process.

This year in particular China is going through a massive infra structure and building phase within China to prepare for the 2008 Olympics. This factor has increased China's tremendous building phase in manufacturing aluminum, building trades and the railroad industry. In the area of communication China has stepped up its manufacturing and distribution of products. China also has plans to build a small economy car called the Chery Automobile.

For all the reasons mentioned above and the overall strength of the China economy this could be a good time to buy China stocks. The average American can purchase China stock on the New York Stock Exchange and NASDAQ Exchange. The other avenue available is the mutual fund or spider that is geared to Asian or China investments only. These funds do exist and are doing exceptionally well.

Specific China Stocks:

The need for raw materials and manufacturing of materials is a high priority for China. One particular shining star is Aluminum Corp China. It trades on the New York Stock Exchange under the stock ticker ACH. This is an $8.7 billion dollar market cap company. It has seen tremendous gains in the past two years. The growth spurt almost seems endless due to China's demand for aluminum and other metals. The stock is currently selling in the high $60 range. The major institutional holders are John Hancock Trust-Natural Resources, Allianz, Goldman Sachs and other prized investor funds.

In the technology areas Chinese companies have some interesting choices. The web company and software technology and mobile phone application company CDC Corp. is a low cost stock to watch. The stock sells under the stock ticker CHINA. It is currently a $6.40 stock that can easily make its mark at $11 and higher. The Olympic 2008 event in Beijing is expected to boost their technologies.

A great information and search engine company is Baidu. It trades under the stock ticker BIDU. For whatever reason the brains on Wall Street love this stock. It sells in the $200 plus range, but it rivals the likes of Google. It is a stock to watch.

Mutual Funds:

The investor looking to invest in China and Asian Markets should definitely consider the mutual funds offered by various family of funds. Nearly all of the large fund companies have a fund that is designed for for exposure to the growth in China. Alger China Growth, Thornburg Global Opportunities, Evergreen Opportunities Fund, American Funds, Oppenheimer and Allianz all have great funds with good returns.

If you are interested in China stocks discuss it with your advisor or ask one of the funds mentioned above to send you a prospectus.

Should The Stock Investor Subscribe to a Business Publication?

Should The Stock Investor Subscribe to a Business Publication?
In the world of stock investing, the more you know, the better you are. Most investors subscribe to at least one business journal and others subscribe to investor newsletters. The costs of subscriptions are reasonable compared to other specialized reading services. Many of the news journal also contain daily news stories and expert commentary. Most of the business news services and advisory newsletters are accessible on the Internet or in paper format.

Journals and Magazines:

The Wall Street Journal has been a familiar source of reliable stock market information for decades. It is owned by the Dow Jones family of business related publication. Dow Jones appears to headed for an acquisition by News Corporation with extensive a multi media entertainment holdings. The proposed merger should go through in the fourth quarter of 2007.

The Wall Street Journal has excellent stock market information. The format is easy to read and it is organized well for quick reference or for enjoyable reading about the stock market. The writers are exceptional with experience in the business world. There is a section to watch your own portfolio and to research company history and financial information that is easy to locate. It is a value at $79 for 54 weeks of reading either in paper or on-line. A subscriber can get both the on-line and paper version for a total of $99 for 52 weeks and some free weeks.

Barron's is another publication that is owned by Dow Jones & Company. This publication is sold as a separate subscription. It is a weekly magazine format that is foremost in quality research and in depth reporting about the U.S. Market and around the world. Barron's can be purchased on-line and in paper format.

Investor's Business Daily has similar content to the Wall Street Journal. It has a remarkably good analysis of daily stocks and a good on-line educational tutorial. The publication may be read on-line or on a paper format. The publication is $295 per year for the paper version or $235 for the on-line version.

Newsletters:

There are numerous financial newsletters available on-line and in paper format. Of the ones I have reviewed there are only two that I would recommend for their value in stock investing. The Morningstar Stock Reporter is a monthly publication that has great research on stocks. The information is easy to digest and the format is easy to read. The subscription is about $89 per year.

The Street dot com stock advisory is unique. It is produced by Jim Cramer who has decades of experience in investing in the ups, downs and in between times on the stock market. He has a charitable trust that he keeps tabs on and invests. Due to a variety of reasons he is not an active trader of hedge funds or other investments.

He is a financial whiz in the market who appears on TV and writes books. His famous book Mad Money is now a half-hour TV show. He answers questions posed by telephone callers to the show. He also provides stock analysis.

The Jim Cramer Street dot com stock analysis subscription allows the investor to trade along side with him. He sends out advisories on stocks by e-mail. He also allows the investor to see his portfolio. In addition for every subscription sold he sends the subscriber a free copy of his book. This advisory service is worth a free trial run and then decide if it is worth the cost of the subscription. Jim Cramer has made himself and a whole lot of people very rich.

What is the NASDAQ Exchange?

The NASDAQ Exchange is a limited liability company and a corporation that provides a means for traders to execute stock orders for stock brokers, institutional investors and on-line stock purchasers. The NASDAQ Exchange was formed in 1971 by the National Association of Securities Dealer to fill a need for reporting stocks that were not a good fit in the regular stock exchange. The NASDAQ reports on over the counter stocks for thousands of stocks not listed on the other exchanges. By the 1990s NASDAQ surpassed in terms of listings the AMEX Exchange.

In order to trade on the NASDAQ the trader and members must be certified and agree to the by laws of NASDAQ Inc. In 1999 NASDAQ merged with AMEX to form the NASDAQ-Amex Group. By 2000 the National Association of Securities Dealers sold their interest in NASDAQ to private investors. See: NASDAQ Corporate Filings.

NASDAQ operates similarly to all corporations, it has Articles of Incorporation, Corporate Officers, By Laws and holds meetings. The NASDAQ LLC. has a governing board and in turn has rules and regulations it operates under. Given the quasi-governmental status of NASDAQ the Securities and Exchange Commission has a role in making sure NASDAQ operates according to good practices and regulations. If a company engages in inside trading, fraudulent reporting of corporate earnings and assets or the many areas of bad practices governed by the Securities Act of 1934, the Commission can provide sanctions and remedies for these acts. Likewise, state attorney generals and the U.S. Attorney may bring actions in court to cease and desist these bad acts and also provide for criminal sanctions.


What notable stocks are traded on NASDAQ?

As an investor you may invest in NASDAQ, it is listed under the ticker QQQQ. The stock value goes up and down depending on the overall health of the NASDAQ Top 100 Trust Funds. Currently NASDAQ QQQ, traded under ticker QQQQ is priced at around $48 a share. It has a market capitalization of $19 billion dollars and over the past three years has a 11.56 percent return on investments. The top holdings in QQQQ are: Apple, Cisco, Comcast, Gilead Sciences, Google, Intel, Microsoft, Oracle, Qualcomm, and Research in Motion. A impressive group to be associated with in one stock. There are however, some stocks among the fund that are not as illustrious in their performance. The fund is weighted heavily in the hardware sector. The others sectors with a significant impact are software, business services, customer service and healthcare.

NASDAQ provides soup to nuts in investment opportunities:

NASDAQ offers literally thousands of opportunities to invest in individuals stocks, indexes, real estate investment trusts, options and other means to make an investment. The investor has an cornucopia of types of stocks choose among from semiconductors, energy, finance, components, retail, in all 3113 components make up NASDAQ. Each company listed must meet capitalization and reporting standards. The investor has the opportunity to review each quarters reported earnings and debts. A company is required to report any significant issues that may effect the investor and the company. There are news services and financial advisor services who actively stay in top of company news. All in all it is surprising why a company would even try to fool investors or governmental watch dogs.

NASDAQ notables:

Apple Inc. is the darling of NASDAQ. It trades under the stock ticker AAPL. If you have been living on a remote island somewhere in a cave, Apple is the designer, manufacturer and marketer of iMAC computers, software, iphones and through its subsidiaries a range of products that support Apple main line of products. In September, 2005 Apple shares were in the vicinity of $48. As of the close of business on August 31, Apple is worth in the range of $138 a share. The unique aspect of Apple is just when you think it has topped out and is dawdling it comes up with some surprise and it is off and running again. It is a darling because it has resilience and innovation.

Never to be forgotten is Miscrosoft. It trades under the stock ticker MSFT. What can you say about a company that brought information and technology to middle America, Africa, South America and the world. It is a stock that sells currently in the $28 range. It has controversy in all corners particularly with law suits challenging this grand daddy of the Internet, but it is a tried and true long performer. It is the company that people love and hate. If there is innovation out there, Microsoft will find it.

A personal favorite of mine is Intel. In part because it is a work horse in the technology sector and in part because I read and enjoyed Tom Wolfe's book on the company structure in Hooking Up. It was not a biography, but it did parallel the formation of this egalitarian work place. The stock sells in the range of $25 and sells under the ticker INTC.

Investing in Stocks Direct From the Company

There are companies that allow an investor to purchase stocks directly from the company. This is perfectly okay according to the Securities and Exchange Commission. These are called Direct Stock Plans. It is called a DSPP. The company may require that you already have stocks through employment with the company. It is not required in all companies.

The Direct Stock Plan operates differently than buying stock through a broker. There is no commission charged for these stock plans, but there can be a small fee. The other difference is that the company buys and sells the stock at a given time. The investor cannot sell or trade stocks at will. The investor may turn the stocks over to a broker to sell, but the broker cannot charge a commission. You may be charged a fee by the company. It depends on your agreement.

If you have a favorite company, like the Walt Disney Company, Coca Cola or other brand names in the United State you may be able to implement a Direct Stock Plan to purchase stocks on a regular basis. You can review the list of stocks in your local library or check out the company you are interested in by accessing the company web site.

Another method of investing direct in a company is by way of the Direct Dividend Reinvestment Plan. It is commonly called a DRIP. The good aspect of this type of plan is that instead of receiving the dividends you agree to reinvest the dividends in more stock in the company. It is a regular Direct Stock Plan with a reinvestment agreement. You may do the same reinvestment plan with your other stocks and mutual funds even if you have a broker.

The advantage is that if the company allows a private investor to purchase stocks directly this would allow you to set up a pay check withdrawal each pay period for the purposes of the stock plan. There are various advisory services that can assist you in locating companies that offer these direct stock purchase plan. I would suggest that you find companies you are interested in a make an inquiry with investor relations.

The advantage to contacting the individual company yourself is that it allows you to use your preferences and then do a small amount of leg work. The company representative will give you the necessary forms and provide you with individual advice on how to set up pay roll deduction. In turn you can contact your banking institution, employer human resources or bill payer and set up the account.

It will astound you the number of very good companies that will allow you to buy stocks direct
by setting up a plan. The range of possibilities include, utility companies, fast food stocks, entertainment and retail stocks.

If you have a solid company that has shown solid performance this may be a good option for investing.
The only thing you have to lose is your time. The time it takes in gathering the information has a big payoff. It will save you commission fees and provide you with a long term relationship with your favorite company.

Investing in the Oil Sector

There is advantages to investing in areas of the stock market that you know or have some personal experience with on a daily basis. Nearly everyone is effected in one way or another by the commodity oil. If you are an individual you take note of prices at the gas pump, heating bill and other uses of oil. If you are a business owner the price of oil is a factor in the operation of your business. For the purposes of this article the two areas that will be covered is oil & gas and oil service stocks. The first area oil & gas covers some of the big oil stocks whose names you may know. The second area is the oil service stocks that support and aid the extraction and distribution of oil.

Big Oil & Gas:

For all the rhetoric and interesting speculation about "green energy," and the alternative fuels like ethanol, biomass, and wind energy the present circumstances places the lion share of energy that moves the world in the lap of the oil industry. Names you not only hear about, but have been around in one shape or another for a century. Chevron, Exxon-Mobil, Conoco-Philips, British Petroleum, Royal Dutch Shell and Hess Corporation. These companies have an individual market capitalization of hundreds of billion of dollars, with the exception of Hess that has a mere 19 billion in market cap. It is hard to imagine a more solid group of stocks with as much clout as this elite club.

All of the stocks mentioned above are involved in exploration, distribution and marketing of oil products around the world. Their influence and their financial worth allows them to invest in costly drilling, manufacturing and distribution of oil in all of its forms. While the rhetoric continues about building and providing alternative sources of energy. These companies presently support a significant percentage of the every day uses of energy. Some of the big oil companies even support blends of biomass fuels and ethanol as a compliment to their own primary purposes.

The cost of purchasing stock in this stock is relatively cheap when you consider the likes of Google selling for in excess of $500 per share. Still other intellectual property stocks on the market and conglomerates sell for in excess of $200 a share. The range of prices in Big Oil is between $61 to $89 per share. What you get is a stock that is capitalized with billions of dollars, has a management team that is beyond exceptional and an underlying product "oil" that is in short supply.

For the moral investor that blames Big Oil for the environmental mess, wars and other maladies the world faces the only American not to blame are the Amish with their horse and buggies. Still, the Amish may leave a smaller foot print, but we all have in one way or another impacted and contributed to the need Big Oil has satisfied and will continue to do so. At present there is small improvements everyone can do, but Big Oil's contribution to a strong economy, and living in a modern society is not going to be replaced any time soon.

The best bet for future stock growth and for pure investment is in oil & gas. Of the Big Oil stocks that are worth looking at Royal Dutch Shell and Conoco-Philips are the two that have some noteable room for short term growth. Another reason to consider Conoco-Philips is that George Soros recently took a position in this company. In investing it is good to follow the leaders. Review the institutional investors in all of the stocks mentioned above and make a decision on which company you think will be a good addition to your portfolio. If in time you make a huge gain take a portion of the profits and contribute to a fledgling "green energy" cooperative.

Oil Service Stocks:

The oil sector would not be complete without mentioning the drillers who get that precious commodity out of the ground, ocean bed or frozen tundra. The oil drilling stocks are rumored by some financial experts to be waning in appeal or topped out. In order to put this in perspective the long history of the oil drilling companies goes back a century. These tough minded riggers and engineers made the oil industry what it is today. The inventive engineers and scientists found astounding ways to detect and then extract oil from the most harsh environmental challenges. The oil drilling stocks are part and parcel of the oil industry.

Recently two of the biggest players in the drilling industry, Transocean Inc, (RIG) and Global Santa Fe Corp. (GSF) announced merger plans. Individually, RIG sells for around $70 per share and RIG in the neighborhood of $102. These companies are backed by billions of dollars and their institutional investors are stellar. Another drilling company of note is Diamond Drilling. This drilling stock is owned by Fidelity Funds, Vanguard Funds, Loews Corp. and Thornburg Investments to name just a few. The oil drilling stocks merit a good look and watch for buying opportunities if there are dips in the near future. In the alternative you can choose a mutual fund from one of the institutional investors mentioned in this piece that focuses on the oil sector.

This has been a brief overview of the oil sector. Review your investment objectives and seek the advice of licensed estate planner or stock broker. Company prospectives are available on-line and by mail.

Investing in Technology Stocks

The infra structure of technology has not quite reached puberty. The very best is yet to come. In particular I am referencing Internet technology and mobile access to the world wide market place of information and support system that enables total remote access. Additionally, the use of technology in the field of medicine, health care and other related services.

The list of products and services in the pipeline of small, medium and large companies is astounding.
Within the field of technology is the corner stone of all the products is security software and services. The talk on Wall Street is that technology stocks are ripe for investing in todays market. This piece of information is noteworthy, but having watched the exuberance of gross gains in the last decade go blow , not all technology stocks are the same.

The specific areas that appear in my opinion to be situated well for future growth are in health care related stocks, multi-media and graphic software, security software, networking and communication devices and specialized areas of electronics. There are other categories, but these areas of technology are poised for future gains in my opinion.

Health Care Related Stocks:

Imagine the future of delivering health care services. The physician practicing in a remote town in Alaska who can consult with a specialist located at John Hopkins Medical Center. In real time the rural doctor can send and receive vital radiological and metabolic tests and results. Imagine medical scientists, physicians and university medical centers consulting on their data enable mobile phone devices. Some of these technologies exist today, but the future is going to be fantastic.

In the small cap arena several health care delivery stocks are generating interest. Mediware Information Systems is a $7 stock that will likely double in the foreseeable future. It trades under the stock symbol MEDW on the NASDAQ stock exchange. This relatively small company has a huge presence in the hospital services area. MEDW has three components in its software applications all that aid hospitals and physicians to track and modify drug orders, blood management and perioperative functions. These tools are used extensively in the United States and their application is being applied in other countries including African nations.

Another interesting low cost health care information technology stock is HLTH Corp. it trades on the NASDAQ stock exchange under the ticker HLTH. The way most consumers recognize this health technology stock is by its subsidiary WebMD. HLTH Corp. is the data management behind WebMD. The company is diversified in that it has public services as well as private accounts for paid customers like Blue Cross Blue Shield. It also supports a payee and bill service for health care providers. The company is valued at 2.6 billion dollars and employs over 2200 employees. Its current price is $14.60 and the growth potential is solid.

Multi-Media & Graphic Stocks:

The name Konami may not be familiar to most people, but it is the underpinning to virtually all of the video games utilized on all platforms. Konami trades on the NASDAQ exchange under the ticker KNM. Its primary function is the development, distribution, publishing and marketing of video games around the world. It is based in Tokyo and has been virtually unscathed by fluctuations in the Tokyo Exchange.


Recently it announced the development of a mobile platform for its most popular games that will be available on September 8, 2007 through AT& T and other mobile phone carriers. The video game industry is only going to get better. The stock sells for approximately $24 a share. Another stock to watch is Electronic Arts that trades under the ticker ERTS.

There are various ways to invest in the technology area. Some brokerage houses do offer technology index funds that include a cross section of technology companies. The other method is simply to pick stocks from the technology sector that offer sustained growth, good value and potential for the future.

The Stock Market: The Greatest Show on Earth

The Stock Market is like a day at the horse races, the state fair, and the gorilla exhibit rolled into one event. Nearly each hour of each day with the exception of some holidays the Stock Market is open somewhere in the world.

The currency traders are the vampires of the Stock Market. Their work day begins in the wee hours of the night and ends often times at the break of dawn. The commodity traders check headlines all over the world in order to determine how the volatile futures market is going to play out for the day. If there is a natural disaster that impacts a commodity the commodity trader needs to take note. The commodity trader needs to factor in significant and sometimes obscure news events that may spur on or decrease the availability of a commodity. The commodity trader is a news junkie.

The greatest show on earth takes place on the trading floor. Orders come in and traders in the center stage often times called the pit place the orders in between collecting their thoughts and barking back to to the other performers. It is an amazing feat considering the onerous task at hand and the surrounding circumstances. On some days some traders would rather confront the ferocious lion than a day on the trading floor.

In the background unseen by the crowds is the order makers. The select members of the stock exchanges that have the privilege of front row seats, but prefer the private box seats. The stock broker and mega buck investor who can shift the mood of the day by a single block of buys or sells. The strategic player who can play the upside and the down side of any news event or rumor and keeps the crowds coming back each day.

The stock analysts who determine based on graphs, moving averages and mathematical formulas the strategy for their investors. The analyst takes into account not only market news, but the probabilities of certain events impact on a unit or the entire market. The analyst is in many ways like the fortune teller at the circus with a crystal ball armed with a Hewlett-Packard hand calculator.

The show would not be complete without the critics. The clever and knowledgeable group of commentators and writers who explain or elaborate on the days events. It is similar to the play by play announcer at a Jai Alai game The ball sometimes travels faster than the words can be uttered from any human form of speech. This could explain why stock market commentators speak in fast forward fashion.

The Stock Market is the greatest show on earth and this can be explained by the very human trait of enjoying the art of the trade. It is the present day version of a day in the square with all of the smells, color and fanfare of a carnival where people communicate and come together to sell their wares. The Stock Market provides that ingredient of human existence that enjoys watching or participating in a good trade. .

What is the Reasoning Behind the Arbitration Agreement?

It is almost a universal practice to include an arbitration agreement when an investor opens a brokerage account or commodities, mutual fund account. An investor will find that in the process of signing up for a brokerage account there is a standard arbitration agreement contained in the packet of information. This article addresses some of the history of the stock brokerage arbitration agreement and the reasoning behind the agreement. Not all arbitration agreements are alike and therefore if you have any questions about the legality of the agreement you should contact a competent attorney in the field of securities arbitration agreements.

The reasoning behind the accepted practice of arbitrating disputes with your stock broker and mutual fund manager is the notion that arbitration can be handled privately, with a qualified expert arbitrator in a reasonable period of time. While it is not required an investor may file a simple letter complaint. The necessity of hiring an attorney to file the complaint. It may be advisable, but it is not necessary to hire an attorney. The rules and guidelines for arbitration are set forth on the New York Stock Exchange web site or may be requested by mail.

The history of the arbitration agreement in the United States stock exchange has a 200 year history. The Courts and Congress have uniformly favored the arbitration agreement signed when the account is opened. That is not to say that all arbitration agreements are flawless. Some arbitration agreements have been voided for various reasons.

The arbitration provides a forum for disagreements that may occur with the investor and the broker. Disputes may vary in severity, but the key is disclosure of pertinent facts known by the broker that negatively effected the investor. The other reasons are obvious mishandling of a clients funds, failure to act in accordance with the clients orders and fraud like conduct. All of these reasons and variations in between can occur and sometimes do occur in the relationship of client and broker.

There is a Director of Arbitration with the New York Stock Exchange who has the duty to provide the forum and implement rules that govern the arbitration of dispute. The Director has the duty to provide lists of arbitrators who are qualified to hear specific types of disputes. There are securities arbitrators and public interest arbitrators. The Director has the obligation to report to Congress any and all issues regarding the arbitration of disputes. It is designed to be a forum that is friendly to non-broker complainants.

For disputes involving less than $25,000 there is an expedited form of arbitration. For investor complainants over the age of 70 with health issues an expedited handling of disputes may be requested. According to testimony provided by the Director of Arbitration to Congress in 2005 the complaints from investors have increased since 2002. See: Karen Kupersmith, Director of Arbitration New York Stock Exchange to the Finance Committee of Congress, March 17, 2005.

Adjustments in staff and case management were suggested to keep the intent of the New York Stock Exchange vital and up to date for the protection of investors.
The New York Stock Exchange Arbitration has in the past years of 2003 and 2004 awarded the public over 70 and 80 percent of all claims presented. The rule of thumb that most arbitrators use is when applying whether information by a broker should be disclosed is: " If in doubt, disclose," according to Ms. Kupersmith.

The question of whether to sign an agreement to arbitrate is not germane because you will not get an account without the agreement. The question should be is the agreement to arbitrate you are being asked to sign legal and enforceable. That issue may require you to ask for an attorney consultant to review the arbitration agreement. A majority of well known brokerage houses have standard arbitration agreements.

Horror Stories:

There are some really nasty events that can occur between the holder and advisor of your money and you. In recent years, some down right fraud has occured. Some of the bad dealings required the FBI to uncover. Some examples would be a broker who is not licensed and sells bogus securities. Other schemes include churning accounts. The concept of churning means the broker buys and sells stocks on your account to get commission fees not for the benefit of your portfolio. Specious equities and other instruments are offered by a former member of the exchange that turn out to be bogus. All states have an Insurance and Securities Commissioner whose responsibility it is to regulate the activities of brokers and the products that are sold in your state.

If you believe you have a complaint or have concerns about an investment it is advisable to check with your Securities Commissioner or State Attorney General before you invest. It is much easier to avoid a bad investment than to have to undo one.

How To Pick A Stock Broker

The key to any relationship particularly when it comes to money is choosing someone you can trust. A stock broker is essentially your agent in charge of your money. The main role of a stock broker is to provide the investor with timely good advice on picking the right investment for you and your money.

A stock broker must be qualified to sell equities. In order to be certified the stock broker must be educated and pass state administered tests. Aside from the basic minimum qualifications a stock broker has a track record in his or her handling of stock portfolios.

A smart investor will ask the potential stock broker about his accounts for the past five years. Questions that require the stock broker candidate to discuss their investment strategy. What stock picks has he or she made that turned a profit. What stock picks did not show gains, but losses.
If the stock broker works for a brokerage house and most do, ask about the clients of the firm.

The stock broker is like any professional you would hire to perform a service. You are interviewing a candidate who will not only advise you on stocks and other investments, but someone who will take your personal welfare above all other considerations. Have a discussion with several candidates on the phone. The next step is to come up with a short list and have a personal meeting with the candidate stock broker.

There are regulations and government entities that regulate stock brokers in every state. There is arbitration remedies for damages you may incur if the stock broker has acted negligently in the handling of your account. These are bottom line safeguards. You want to pick someone who will never place you in that position.

In your selection process for a stock broker keep in mind the following points:

- A referral from a friend for a stock broker is useful, but not the final word.

- Hiring a friend that is a stock broker can be problematic if a disagreement occurs.

- From the first contact with the stock broker does he or she act attentive and return calls.

- Does the candidate stock broker ask you about your comfort level in investing.

- Does the candidate stock broker provide you with insight into his or her investment strategy.

- Does the candidate stock broker's investment strategy coincide with your ideas about investing.

- Ask the stock broker candidate to explain limit orders and other means of protecting your investment.

Is the candidate stock broker forthright in telling you of in-house stock portfolios. Many brokerage houses have baskets of stocks they promote under the firms name. How has the firm's stock package done over the past four quarters.

When the candidate stock broker is speaking to you does he or she gloss over information or do you get the impression it is a sales pitch. Every stock broker is a sales person, but there are limits in this field.

Finally, never make a decision on the spot. After your meeting face-to-face go home or back to your office and consider your choices. Pay particular attention to your gut reaction after you have left the meeting. Is this someone you trust to carry out your wishes and provide you with sound investment choices.

Use Your Cupboard As A Stock Picker

There are experts in the field of making predictions on stock performance. Another expert in the field of some stocks may be you the consumer. Think about it, you pick products that for various reasons are your favorites. Your kitchen cupboard or shopping basket may be a very good prediction on the long term performance of the company stock.

Company brand products did not become staples in most homes because of clever packaging and cute commercials. The brands we as consumers rely on are on shopping list because the particular product is tried and true to its word. The household purchaser can make or break a product. The true clout of the American consumer is not to be underestimated in the Stock Market.

On a larger scale, you as the consumer may have a grocery store that over the years you may find carried all the products mentioned above. The convenience of a grocery store that carries all of your favorite items save you time and money in traveling around. The success of Wal-Mart, Target and other big box stores is the convenience of one stop shopping. The prices for brand names in the big box stores are good. Other personal favorites in shopping venues may include Safeway, Albertson's and Kroger. All of these companies are listed on the stock exchange.

In the brand name product area you may need to look on the packaging to determine the name of the company to find the stock. Some favorites like Clorox, Johnson & Johnson, and others are listed under the familiar company name. Due to mergers and acquisitions many name brand products have become subsidiaries or subsumed in a larger company's product line. All you need to do is check out the references on the label or customer service information that is located somewhere on the product.

The idea of you as the consumer being the best stock picker extends to larger items. You spent some time looking for an automobile, washing machine, refrigerator and like items. You chose a particular brand for a reason. The factors could be value, reliability or your past experiences. The reason could be a combination of all factors mentioned above. Value your decision process and consider investing in the company that produces the product.

A cautionary note is that even the best company may have a down year. The reasons could be management changes, and other economic pressures. The product is still good, but the internal structure of the company needs a quick fix. In these circumstances make a decision whether you want to weather the storm or wait until the company gets its act together. Sometimes the stormy days of a company can be a buying opportunity.

In conclusion your cupboard or your shopping cart may be a good indicator of the stocks you should consider choosing. The other good aspect of investing using your cupboard is personal satisfaction. As a consumer you have the dual role of being an investor in your product. It is a good feeling to put your dollars into growth instead of simple consumption.

Investing in Utilities

There was a time in our recent history that investing in utility stocks was like opening up a pass book savings account. Today, the investor needs to be more cognizant of the companies compliance with various regulations and their current stance on applying new and efficient technology. The increase in demand and a need for power plants and distribution has placed a burden on the utilities sector.

Some utility companies employ a combination of energy producing resources. Some rely on coal, hydro electrical plants and the occasional nuclear plant. Many rely on their natural gas reserves and electricity contracts with their producers to provide power to their customers. In effect the utility is a reseller of power sources.

Investing in Public Utility Companies:

Some good work horse utility companies are on the stock market. In seeking out the security of a public utility stock you may be interested in dividends. For some investors the utility is a relatively secure method of investing for the long term and part of a retirement plan.

One example of a good utility stock is American Electric Power Company. It trades on the NYSE under the stock ticker AEP. This is a public utility holding company that transmits, generates and distributes power to a variety of utility companies. Some of these utility companies are cooperatives, municipal power companies and smaller utility companies.

AEG is a 17.7 billion dollar market cap company. It has been a consistent performer for over 30 years and its major institutional investors read like a who's who on Wall Street. It is better than 93 percent of all stocks listed on the S& P 500. The stock is a consistent performer and sells in the range of $40 to $51 for the last year. In November, 2006 the price was in the high $30 range, but has moved to the $40 ranges in recent months. It consistently issues a small dividend. It currently sells for $44.48 a share and should rise to its first target of $49 with ease.

There are other holding companies that may be of interest to the investor with a desire to invest in utilities. Duke Power that trades under the stock ticker DUK is a multi billion dollar company. Another l00 year old company is Constellation Energy Group in Baltimore, Maryland. The significant aspect of investing in power companies is whether the company is in compliance with various regulations pertaining to clean air and water. The cost to update facilities is costly. Most of the major players in power have already commenced updating their facilities.

Investing in Diversified Utility Companies:

There are some very good diversified utility companies that are consistent performers. Wisconsin Power & Electric trades on the NYSE as WEP. This company is a consistent performer and recently provide a large credit to its customers. It has a 5.9 billion market capitalization. The company is owned by some of the biggest funds in the country. It sells for $44 and has a mean target of $50.

Two other good good diversified utility companies are Integrys Energy Group stock ticker TEG and Alliant Energy that trades under the ticker LNT. There is a price difference in the companies, but both utilities are multi-billion dollar companies. Both have a blue ribbon groups of institutional investors.

All of the utility companies listed require some analysis to determine if the company fits your investment portfolio. The utility sector has some pressure due to world wide considerations and the demand of end users. The key is if the company is poised for future growth by enhancing its infrastructure and distribution methods.

What is the Dow Jones Industrial Average?

The Dow Jones Industrial Average (DJIA), is the top 30 Blue Chip stock whose performance is averaged each day of trading on the stock market. The components of the Dow Jones Industrial Average reads like a who is who in the stock market.

Currently, the top 30 stocks are doing quite well on the stock market. Due to the small number of stocks that make up the DJIA all it takes it a few of the stocks to take a dive and the overall average can take a dip. It is good to analyze the sectors that make up the components of the Dow Jones Industrial Average.

Direct consumer contact stocks in Dow Jones Industrial Average:

It should be no surprise to most people that Wal-Mart Stores Inc is a component of the Dow Jones Industrial Average. Over the past three years the price of Wal-Mart had a price adjustment due to various management decisions. The $52 to $58 per share days of 2005 has seen a drop to $43 in 2007. This stock is expected to reach the $52 range again in the foreseeable future.

Another solid past performer Home Depot is trying to make a rebound from concerns about the housing market. Recently, Home Depot has seen some return to the range where it should be trading. It closed recently in the $38 range and should see some improvements to the mid $40 range.

McDonald's Company is also on the road to recovery after a slump in 2005. Their healthy diet adjustments have improved the overall out look on the stock. It is currently trading at the high $40 range and should easily go higher.

Walt Disney Company is a stock with many hats. It is known for resorts and films, but it has a huge international presence in all types of communications and media outlets. The product line is extensive. It has numerous media outlets, including but not limited to ESPN, The History Channel and television stations. The stock is a value stock currently selling in the range of $33.

Technology stocks in the Dow Jones Industrial Average:

Microsoft Corporation,United Technologies, Hewlett-Packard, Verizon Communications, International Business Machines, AT&T and Intel Corp. round out the influence of technology influence on the Dow Jones Industrial Average. .

At this point an investor recognizes that if a sector is down for the day this will effect the overall Dow Jones Industrial average.

Large Multi-National stocks in the Dow Jones Industrial Average:

This category takes into account basic materials, drugs, machinery, autos and big cap companies that have a major influence on the Dow Jones Industrial Average.

The list of noteworthy stocks are: 3m Corp., Alcoa, Boeing Co., Caterpillar Co., E. I. Du pont de Nemours and Company, Exxon-Mobil Corp. General Electric Company, General Motors, Honeywell International Co., Johnson & Johnson, Merck & Company, Pfizer Inc., The Coca-Cola Company, and Procter & Gamble Company and lastly big tobacco, Altria Group Inc. .

It is hard to imagine a more stellar group of major players with such influence on the world economy and influence. A mixed bag indeed, but there common thread is there gargantuan influence on the Dow Jones Industrial Average. All of the low to medium priced stocks may be purchased individually or in a mutual fund or index fund.

Financial Stocks in the Dow Jones Industrial Average:

This last group has a significant influence in the financial world. It may have some exposure to current angst in the stock market, but some are well positioned for any rocky road. The most stellar include, American International Group Inc. (AIG), American Express Company, JP Morgan & Chase & Company, and Citigroup Inc.

This groups influence on the overall Dow Jones Industrial Average is obvious. Some of the ripple effect of concerns about commercial paper and the real estate mortgage market may influence this groups effect. It will depend on whether the concerns should expand to the commercial real estate market and the extent of the defaults and foreclosures.

These are the top 30 components that make up the Dow Jones Industrial Average. As you can see the overall rise and fall of small percentages in this market indicator requires a closer look at the components and sectors.

What is the Dow Jones Industrial Average?

The Dow Jones Industrial Average (DJIA), is the top 30 Blue Chip stock whose performance is averaged each day of trading on the stock market. The components of the Dow Jones Industrial Average reads like a who is who in the stock market.

Currently, the top 30 stocks are doing quite well on the stock market. Due to the small number of stocks that make up the DJIA all it takes it a few of the stocks to take a dive and the overall average can take a dip. It is good to analyze the sectors that make up the components of the Dow Jones Industrial Average.

Direct consumer contact stocks in Dow Jones Industrial Average:

It should be no surprise to most people that Wal-Mart Stores Inc is a component of the Dow Jones Industrial Average. Over the past three years the price of Wal-Mart had a price adjustment due to various management decisions. The $52 to $58 per share days of 2005 has seen a drop to $43 in 2007. This stock is expected to reach the $52 range again in the foreseeable future.

Another solid past performer Home Depot is trying to make a rebound from concerns about the housing market. Recently, Home Depot has seen some return to the range where it should be trading. It closed recently in the $38 range and should see some improvements to the mid $40 range.

McDonald's Company is also on the road to recovery after a slump in 2005. Their healthy diet adjustments have improved the overall out look on the stock. It is currently trading at the high $40 range and should easily go higher.

Walt Disney Company is a stock with many hats. It is known for resorts and films, but it has a huge international presence in all types of communications and media outlets. The product line is extensive. It has numerous media outlets, including but not limited to ESPN, The History Channel and television stations. The stock is a value stock currently selling in the range of $33.

Technology stocks in the Dow Jones Industrial Average:

Microsoft Corporation,United Technologies, Hewlett-Packard, Verizon Communications, International Business Machines, AT&T and Intel Corp. round out the influence of technology influence on the Dow Jones Industrial Average. .

At this point an investor recognizes that if a sector is down for the day this will effect the overall Dow Jones Industrial average.

Large Multi-National stocks in the Dow Jones Industrial Average:

This category takes into account basic materials, drugs, machinery, autos and big cap companies that have a major influence on the Dow Jones Industrial Average.

The list of noteworthy stocks are: 3m Corp., Alcoa, Boeing Co., Caterpillar Co., E. I. Du pont de Nemours and Company, Exxon-Mobil Corp. General Electric Company, General Motors, Honeywell International Co., Johnson & Johnson, Merck & Company, Pfizer Inc., The Coca-Cola Company, and Procter & Gamble Company and lastly big tobacco, Altria Group Inc. .

It is hard to imagine a more stellar group of major players with such influence on the world economy and influence. A mixed bag indeed, but there common thread is there gargantuan influence on the Dow Jones Industrial Average. All of the low to medium priced stocks may be purchased individually or in a mutual fund or index fund.

Financial Stocks in the Dow Jones Industrial Average:

This last group has a significant influence in the financial world. It may have some exposure to current angst in the stock market, but some are well positioned for any rocky road. The most stellar include, American International Group Inc. (AIG), American Express Company, JP Morgan & Chase & Company, and Citigroup Inc.

This groups influence on the overall Dow Jones Industrial Average is obvious. Some of the ripple effect of concerns about commercial paper and the real estate mortgage market may influence this groups effect. It will depend on whether the concerns should expand to the commercial real estate market and the extent of the defaults and foreclosures.

These are the top 30 components that make up the Dow Jones Industrial Average. As you can see the overall rise and fall of small percentages in this market indicator requires a closer look at the components and sectors.

What is a REIT?

The acronym for a real estate investment trust is a REIT. According to the National Institute of Real Estate Investment Trusts 190 Re Its are currently registered with the SEC and trade on one or more of the New York Stock Exchanges. There are over 900 REITS that are privately held companies.

The advantage to the investor in the REIT is the source of income it provides. Specifically, due to the structure of the REIT it does not accrue corporate tax, instead it returns all of the taxable income to investors. The investor receives a 1099 form for tax purposes and it is therefore taxed like additional income.

The REIT can be designed to fit almost any scenario available in the real property world. It can play the upside and the downside and provide hybrid type coverage. Primarily the REIT is composed of commercial property including shopping malls, apartment complexes and income producing property. It also is packaged with residential real estate of a particular type.

The influence of the REIT has seen increased interests to investors for providing income and a compliment to their portfolio of stocks and bonds. Because of the intricacies of the real estate market and commercial property in particular the investor should consult with a qualified REIT broker or investment advisor. Lists of REITs are available through Morningstar or may be reviewed on-line at the National Institute of Real Estate Investment Trusts.

Troubled waters can be avoided:

The current Summer and Fall 2007 concerns about real estate mortgages and a slow down in some United States real estate markets does not mean the REIT investment is in jeopardy.
There are certain REITS in the United States that are hybrids that afford the investor with security in good times and troubling areas of the market.

It should also be remembered that REITs are available for nearly all of the world real estate markets. In many parts of the world, China, Asia, Europe and Dubai the real estate market in both commercial and residential income property is sizzling. There is stability in these parts of the world for some hefty returns for investors.

Purpose:

The overall purpose of the REIT envisioned by the U.S. Congress was to provide a means for investors and in turn the developers of real estate to mutually benefit from growth. It places the average investor in a position of being a big player with the benefit of a share of the profits. A small investment in a REIT can enhance a portfolio of stocks and bonds. Each investment dollar goes into enhancing or creating the availability of funds for building realty.

Due to the nature of the REIT, it must be organized and structured according to strict guidelines. The SEC guidelines apply to those REITS public traded on the New York Stock Exchange and governs those REITS listed with the exchange. Privately held REITS must comply with IRS standards and other state and federal laws pertaining to trusts.

The REIT is an investment that any investor should consider and review the merits with a trusted financial planner with the expertise in the REIT market world wide.

karachi Stock Exchange

Introduction:
To be a leading financial institution, offering efficient, fair and transparent securities market in the region and enjoying full confidence of the investors.