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I am a Registered Financial Advisor with over 20+ years in the securities industry. I am also a Registered Public Accountant with Accreditation in Accountancy and Tax Advisory from the National Society of Accountants. I also hold several securities licenses having worked for some of the best... More
My company:
UCS Investment Co dba Maduro Capital
My blog:
All Things ETF
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  • Stocks on our Buy List: QEP Resources, Inc
    We like QEP Resources, Inc. very much because it has performed well over the last 12 months and it’s in an industry that we love to invest in.
    We started accumulating this stock in July of 2010 at $34-36 per share and have not been disappointed with its performance. However, the stock has recently been downgraded by Goldman Sachs to Neutral with a price target of $49 even though Standard and Poors has a Buy rating on the stock with a target price of $52 per share.
     
    I still like the stock especially since our clients received an Average Total Return on Investment (NYSE:ROI) of 29%, but I have sold most of the position from our client portfolios. I believe that there are better opportunities elsewhere in the oil and gas industry but we might get back into the stock in the near future. This stock is a solid performer, which makes it a good addition for investors that are looking for stable, solid growth.
     
    Call now at 1-877-788-1732 and to open your PLT account at Plouthus.com
    and receive a $150 off any financial plan which can go towards analyzing your current portfolio for risky investments that are not making you any money and robbing you of your hard earned retirement dollars.
     
     
    By Rick Walter
    UCS Investment Co.
    Aug 01 9:43 PM | Link | Comment!
  • Taking Stock of your Rates of Return (ROI)

    Calculating an investment rate of return (ROI) is an important step in helping you manage your investments. A rate of return or return on investment is the gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost. Gains on investments are considered to be any income received from the security plus realized capital gains. For example if you bot 10 shares of XLE at $75 per share, the initial cost is $750, and if you sold those same 10 shares at $85 per share, the rate of return is 13.3% ($85-$75/$75)on your investment. Calculating an investment ROI or rate of return is a simple and useful starting point in considering any investment. However, this simple calculation differs according to investment type or class.
    For example, if Ivan Boesky invested $5000 in some real estate and sold it 10 years later for $25,000. The ROI on his real estate purchase is: 400% ($25K – $5K)/ $5K.

    However Martha Stuart invested $5000 in a biotechnology stock and sold it 1 year later for $12,000. Stewart’s ROI on this investment is 140% ($12K-$5K) /$5K.

    However, keeping it all in perspective, ROI's can be skewed in favor of a particular class of investment, and of course in the above example, the 140% in 12 months gives a better investment return because the time frame is shorter. Which brings me to the point of this article. Lets take two real world examples of three completely different types of investments:

    A Gold ETF
    Bot Spder Gld shares at $66.28 on May 14, 2007
    Sold Spder Gld Shares at $145.63 on May 13, 2011
    It's ROI is 120% ($145.63-$66.28)/66.28 over 3 years. 

    GE stock
    Bot GE at $37.58 on May 14, 2007
    Sold GE at $19.89 on May13, 2011
    It's ROI is -47% ($19.89-$37.58)/$37.58 over 3 years.

    Mutual Fund
    Fidelity Advisor Leveraged Company Stock Fund
    Bot FLSCX at $36.96 on May 14, 2007
    Sold FLSCX at $35.31 on May 13, 2011
    It's ROI is 4% ($36.96- $35.31)/35.31 over 3 years

    Which investment would you invest in today? I am suggesting that being able to do these simple calculations can help you manage your investments efficiently. Remember that ROI is a historical measure, meaning it calculates all the past returns. An investment can do very well in the past and still falter in the future. For example, many stocks can yield ROI's of 200-500% during their growth stage and then fall down to the single digits as they mature.

    If you invested late based on the historical ROI, you will be disappointed. Projected or expected ROI's on an unproven (new) investment are even more uncertain with no data to back it up. In addition, ROI does not account for the compounding effect of time. To get that rate of return you would need to calculate the Compound Annual Growth Rate, a more complex formulae that takes into consideration time and gives you a better rate of return number, because it also includes calculating interest, dividends and the capital gains. Also, rates of return on mutual funds are calculated differently due to new SEC rule making on how funds publish total returns and fund yields.
    We offer complete professional financial plans that can help you build and allocate a portfolio of investments that calculates current and projected rates of returns based on your correct risk profile. Call to speak with an advisor at 1-877-788-1732 or when you call just ask for Rick.

    By UCS Investment Co. 

    May 24 5:49 PM | Link | Comment!
  • Taking Stock of Your Risk Tolerance

    In the latest unemployment numbers, the US Bureau of Labor Statistics reported that Nonfarm payroll employment rose by 244,000 in April and the unemployment rate edged up to 9.0 percent. Although the economy created 244,000 thousand jobs, the unemployment rate still increased. However, the recent numbers still gave the markets a nice boost on Friday, May 6, 2011.

    However the day before, Thursday April 5th, there was this massive stampede of investors out of commodities, sending many benchmark indices and the respective funds and stocks that are pegged to these indexes down to levels not seen since 2008. This brings me to the issue in this article- determining your risk tolerance.

    Accurately determining your risk tolerance is one of the most important steps that you can make in managing and building your investment portfolio over time. Determining your risk tolerance helps you avoid the nervousness and feelings of dread that you may feel when the overall market takes a nose dive, normally caused by the stampeding herd of investors trying to exit a particular investment. It’s nice to take a flyer every once in awhile, but a long-term disciplined approached tailored to your specific risk profile is the only way to go.

    What is Risk Tolerance? Risk tolerance is the amount of risk that an investor is comfortable taking, or the degree of uncertainty that an investor is able to handle. Risk tolerance often varies with age, income and financial goals. However, there is also another component to risk, namely "risk capacity". Risk capacity, unlike tolerance, is the amount of risk that the investor "must" take in order to reach his/her financial goals. These two concepts should be carefully considered before you invest.

    The first step in determining your risk tolerance and your capacity for risk is first determining how much money you need and the time frame you have left for reaching your income goals. Starting with a financial plan is also important. A good financial plan is a sure way to start and can help you achieve your financial goals more accurately and safely. Be honest with yourself, does it bother you when you here the news on how much the markets closed down? Will it bother you if your account with treasury bonds, “the safest investments on the planets”, lose value, because they will, if interest rates increases; sometimes, just because you have safe guaranteed investments does not mean that there are no risks involved.

    Of course, if you still can’t figure out where you stand, diversification is a simple step in helping you reduce your overall investment risks. Diversification is a strategy that minimizes overall portfolio risks. If your risk tolerance is not where it should be in relation to the positions that you own in your portfolio we can help. We offer professional financial plans that can help you build and allocate a portfolio of investments based on your correct risk tolerances or profile. Please call to speak with an advisor at 1-877-788-1732 or when you call just ask for Rick.


     

    Here are three web links that takes you to pages with short risk assessments and calculators. I am not endorsing any but I find them interesting.

    Link: www.calcxml.com/do/inv08- Calcxml
    Link: www.kiplinger.com/tools/riskfind.html- Kiplinger
    Link: moneycentral.msn.com/investor/calcs/n_ri... - MSN-MoneyCentral

    So the next time a segment of the market takes a dive, you won't feel like diving with it also.


     

    By Rick Walter, RIA



    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    May 10 10:31 AM | Link | Comment!
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