Educate yourself and become a better investor

I wanted to revisit some of the basic things I've written on in past postings and remind you of some of the important things we should never forget when investing. First and foremost and I cant say it enough, be really comfortable with losing all of your investment, as investing is a risk. I believe if we set our stop loss limits and stick to preset gain percentages in our minds though, the likely hood of losing everything on one play gets taken out right off the bat. Remember, I'd rather you give me a 30% gain on my investment 3 days a week rather than waiting for that all elusive triple digit gainer.

 The second point I want to make is unlike other promoters and Investment relations and marketing companies I do not think you are stupid. I think that lacking education is not stupidity it is just having less info which by the way is the purpose of my blog. What I want to achieve here is 2 things: First I want to educate you and Second I want to be able to help you see through all of the crap that's put out there in the investment world for what it really is just plain crapola.

If I put a ticker on my blog it is only and i mean ONLY because I have thoroughly done the due diligence on the company and have presented it to you in a way not to convince you to buy the stock, but to show you the investment opportunity available if you like what you see. I will also put in the possible set backs I see in the company as it is very easy to shine up a turd and leave out pertinent information in an effort to make the company look good. Only fully reporting SEC compliant companies will make my list. NO DOGS ALLOWED.

My new site http://stockpycks-com.blogspot.com/ is designed to help help companies that cant afford big awareness campaigns get the word out in an affordable manner, and my other site http://www.stockpycks.com is designed for you the investor to get information about the companies, learn about practices and protocols and most importantly as YOUR DUE DILIGENCE tool.

Now, many people have asked me why I will not charge for member access to that site and the answer is pretty simple. I am the same as you with just a little more information. I want you to have as much information as you can get without having to pay for it. Soon I will have free level 2 on it as well as a tweet tracker of all of the most tweeted stocks. And.... I wont fill it up with tons of ads. Sure I may need a few to cover maintenance stuff but I want it to be something that would attract me: an information rich site that I can use to research companies and connect with other like minded people interested learning and continuing to learn more about the world of investing.

Thats it for now, Ill have more tomorrow as I know Ive neglected this poor blog but have a renewed dedication to it and more importantly YOU

Who chased and got trapped in this P&D?

Here is a chart for a typical "pump & dump" "gap and trap" that was posted all over forums 12/29/11. 

It closed the day before at 0.0026, gapped to .04 (+1438%) and dropped in the first hour.  Yes she may have closed up 361% but who chased and who got trapped?  There was no news and has not had any since April, 2011. 

Her website is lacking in information big time and this is listed in her quarterly report

"No Active Market. Although the Company’s shares are listed on the Pink Sheets listing service, the Company believes that the public trading price may be an inaccurate representation of the value of the Company because there is little or no trading volume in the Company’s shares and no analysts or NASD market makers actively follow the Company."

http://www.londonpacificgroup.com/

Does that put up a red flag?  Yes she has assets and revs but why has this not been actively trading?

Here is another red flag for me:  company profile reads; London Pacific & Partners, Inc. is an international private equity and corporate finance investor and advisor focused on the transformation of undervalued and growth companies in the healthcare, hospitality, and financial services sectors.

I stay away from companies that have words like "focused" and companies that target undervalued companies.  Makes me think they are looking for shell's to hide things in.  

I also Google'd the CEO:  His experience is all over the place and does not even state LDPP as his primary business.

Kenneth I. Denos
Director and Secretary

EQS
Equus Total Return, Inc.
Houston , TX
Sector: FINANCIAL / Diversified Investments
Officer since January 2005

43 Years Old
Kenneth I. Denos, Deputy Executive Chairman of London Pacific & Partners, Inc. since August 2009. President of the Fund from December 2007 to June 2009; CEO of the Fund from August 2007 to June 2009; Executive Vice President and Secretary of the Fund from June 2005 until August 2007; Executive Vice President of Equus Capital Administration Company, Inc. from June 2005 to May 2008; CEO and President of Equus Capital Administration Company, Inc. from May 2008 to June 2009; Executive Vice President of Moore Clayton Capital Advisors, Inc from June 2005 to May 2008; CEO and President of Moore Clayton Capital Advisors, Inc from May 2008 to June 2009; Mr. Denos has served as CEO of MCC Global NV since May 2006 and as a director and Executive Vice President of Moore, Clayton & Co., Inc. since January 2001. From November 2005 until May 2006, Mr. Denos served as the Non-Executive Chairman of Ridgecrest Healthcare Group, Inc. From February 2005 to February 2006, he served as a director and General Counsel of MCC Energy plc (now Tersus Energy plc). From April 1999 until August 2007, he has also served as Chairman and CEO of SportsNuts, Inc. (sports marketing company). Since March 2007, Mr. Denos has served as a non-executive director of Secure Netwerks, Inc., an information technology hardware and software reseller. Since January 2000, he has served as President of Kenneth I. Denos, P.C. Since March 2009 he has served as CEO and Chairman of Acadia Group, Inc.
http://people.forbes.com/profile/kenneth-i-denos/70767

Chief Operating Officer, General Counsel, and Director
MCC Global NV
Executive Vice President, General Counsel, Secretary, and Director
Moore, Clayton & Co., Investment Arm
Former General Counsel
Tersus Energy PLC
Deputy Executive Chairman
London Pacific & Partners, Inc.
Director
HealthSPAC, LLC
1999-2007
Former Chief Executive Officer, Principal Financial Officer, Principal Accounting Officer, General Counsel, Secretary and Director
FuelStream, Inc.
2001-N/A
Former Secretary and Director
Synerteck Inc.
2004-2005
General Counsel
Healthcare Enterprise Group
2004-Present
Director
Secure Netwerks, Inc.
2008-Present
Secretary, Director, Director of MCCA and Director of Moore Clayton & Co Inc
Equus Total Return, Inc.
2011-Present
Director
Scorpex, Inc.

http://investing.businessweek.com

I personally want a CEO concentrating on the company I am investing in.

Too many red flags from the get go, too many red flags for me to put my hard earned money here.  I will be watching her today and see where she goes.  My money goes on the big flush! Ill let you know tomorrow if this turd floated or if it just went down the drain with the other turds

What to do when the Stock Market is closed... Due Diligence!

Here we are after a long weekend and you find yourself with another day without knowing what to do when the stock market is closed... Work on Mastering DUE DILIGENCE.  This is a huge subject, so today I will concentrate on some basics. Keep in mind what expectations you have and what percentage you want to profit on a stock.  Always have a plan and stick to it, so Get a pen and piece of paper out and keep notes.

Look at the stock chart first to see if there is potential gains.  Does she have a volume trend, does it look like its been front loaded?  What are here daily averages compared to what she did last Friday. Look to see what the stocks support and resistance is.  If you are in doubt and just learning you can find helpful hints on http://www.ddmachine.com/ until you find your niche.  Everyone has there own opinion on stock chart reading and eventually you will have you own.  At this point if you find she is worthy to continue you can.  This can be your jump off point and decide whether or not to waste anymore time on the company.

Go to http://www.otcmarkets.com/home and check out the information listed there.  Remember it is not always updated so Google for more info.  Check out her website for product market potential, the stocks financials, news, quotes, charts, and even insider trader on this site.  Read EVERYTHING!  It is your money, so make it work in your favor.  Familiarize yourself with the stocks latest 10Q or 10K.  Start at the top and look through everything.  Here is a list to help you get started.

Is she Compliant with sec filings? Is she up to date?

Read her financials (this is basic, eventually you will learn to understand more)

- Is there an unambiguous and complete explanation of the revenue streams?

- How good are the cash flows?

does she have cost of goods?

does she have revenues?

- How accurate is the valuation of their assets?

- Are there any hidden liabilities?

- Are there any irregularities in the financial statements?

- What is the company’s history with financial compliance?

- What have the auditors said about the company figures over the last few years?

- Have authorities conducted any tax related investigations into the company’s finances?

- How reliable are the financial projections?

- Have terms and duration of the overdraft and other credit facilities been disclosed and is there any risk to those facilities continuing?

- Have all articles of incorporation, tax registration certificates, board meeting minutes, shareholding records etc been provided?

- Are there any pending legal cases or threats of action (and has potential damage been quantified)?

merger’s?

This will take some time to master, so be patient.

This is my favorite part of due diligence, Google the CEO!  Finding the dirt on some can be very interesting and you will find they have many webs to weave.

That should keep you busy until next time.  I will continue to write on this subject, so stay tuned!  Have a great reading day and be prepared for the markets to open tomorrow.


In the business world, the rearview mirror is always clearer than the windshield.
Warren Buffett

Financial Reports

One of the very first things I do when I pick a stock symbol is look for the company's financial reports. Are they current in their filings? I like to use http://www.otcmarkets.com/stock/fofu/quote to get most of that information. While reading financial reports can be tedious, it is very necessary in order to find out the transparency of a company. Most publicly traded companies use SEC form 10Q to report their financial earnings or losses. What a company's financial condition plays a big part in whether I invest in it or not. I have seen traders just look to see if the company is current and never look in the report to see whats actually in there. Big mistake. Alot of times shell companies are current on their filings but have no revenues or actual products and the only place to find that out is in their "current" SEC 10 Q form. So, I urge you to be careful and take the time to read everything in those reports. Debt and liability that is not readily advertised to investors is often buried inside those financial reports. Even a polished piece of garbage stock (a company with a nice gleaming newsletter or press release), can be revealed to not be a good investment when you dig a little deeper. Tomorrow Ill talk about finding out who runs these companies and why it is important when you are trading their stock. Enjoy your Sunday. GO TEBOW