Learn

Hey! I am NOT a licensed commodities trader or stock broker or financial consultant or adviser or anything of the sort. I don't have a crystal ball either. However, I can add and multiply. Now, about BWMG, the stock I spoke about last week. Listen and learn. If you had purchased the 500,000 shares at the price I suggested, you would have made a profit of nearly $250.00 by early this morning. Your cost for the half million shares would have been $200 and those shares as of a few hours ago were valued at $450. Now, what bank would have paid you that amount of interest in two days? Buy low and sell high, as they say, and buy hundreds of thousands of shares.  Will BWMG go higher? You be the judge. It's not even at one tenth of a penny right now.  

Future Value

In 1977, the third wheel in Apple Computer, sold his stake in the company for $2,300.  He thought the business would fail.  However, by 1980, sales were already at $117 million dollars.  By the end of 2012, his share would have been worth $58 BILLION.  The man now lives a quiet life in Nevada and has stated he made the best decision he could with the information available at the time.  That is an excuse for his monumental mistake.  The truth is he simply didn't BELIEVE in the enterprise.  Jobs and Wozniak had to stick it out – it was their company.  If you don’t believe in your own work and your own words, find something else to believe in.  

BWMG stock

REMEMBER, I am NOT a licensed commodities trader or stock seller or certified financial adviser or anything of the sort. ONLY invest if you can afford to lose every penny you put in the stocks you buy, whether they are Microsoft or BWMG. The stock I have been pushing here (BWMG) is available at a very, very low price. It is so low that almost anyone can afford to buy 500,000 shares.  The price (as of 11:30 this morning EST) is holding steady at .0008 per share.  That's a good thing. Depending on which broker you deal with, 500,000 shares will set you back about $420 dollars. If the price were at 2 cents, it might be too risky for most of you since you would be shelling out $10,000 for the same number of shares (500,000) and that is a very long shot for spur-of-the-moment speculation. Most of you can't shell out $10,000 just for the sheer hell of it. HOWEVER, at .0008, BWMG is still too attractive to pass up, even for the very smallest investor. Good luck. 

Buy very LOW and sell very HIGH

Keep in mind I am not a licensed commodities trader or stock broker or financial adviser of any kind but this stuff is NOT rocket science. If you've heard it once you've heard it a million times: buy low and sell high. Right now, BWMG is at about the lowest point it can get, although yesterday it was even lower. If you have never purchased 1,000,000 shares of anything, NOW is the time. Remember, every penny you put into ANY stock in the stock market is money at extreme risk so play only if you can afford to lose it all. Right now, 1,000,000 shares of this particular stock will set you back about $850. BUT, if it goes up to even HALF a penny, you will have made $4,200 on your $850 investment. In order for it to do that, it must go up at the same rate it did in the last 24 hours - 50% per day. In ONE WEEK. What are the odds - only God knows. Pretty neat I think. 

How to make money

I am NOT a licensed commodities trader or stock broker or financial adviser or ANYTHING. However, I have managed to make a little money using common sense and some luck. If you follow financial news, you know that most people have made fortunes by leaps and bounds, not small increments - via capital gains, inheritances, stealing from their business partners, and that sort of thing. Once you've got a small pile of cash, you can invest some in compound interest accounts and just watch it grow. But you've got to make that first leap first. For instance, this very minute, right NOW, a stock with the stock symbol of BWMG is selling for .0005 per share. Let's say you decide to jump in and buy 500,000 shares. That will set you back $250 plus a very small commission. Let us then say the stock goes up to just .05 (five cents.) In that case, you will have made $250,000. In the past, this particular stock has gone as high as $1.90. The company owns patents but it's very short of cash. It is like a person who might have assets but very little liquidity. Without the liquidity, there is little it can do to market those assets. Will this stock (BWMG) go up again? That is the million dollar question. Good luck to you. 

Mexican Bonds

Why is it that so many people seem to be out there selling Mexican bonds when in effect they do not have them? Some of these bonds can be pretty pricy - upwards of 5 billion - and they make for good business if only people would be serious about them. If you have one of these or if you know someone who does, just look me up. We're buying.

Responsible

From an investment newsletter (Daily Wealth) by Dr. Steve Sjuggerud: “Government policy shouldn't be this hard or this disastrous. Most of the time, the right answers for government come if you just think about it as if it were your family or your own business. For example, if it were your own money, would you take a private plane 365 times in two years to commute to work? Or would you take all of your family's money and borrow as much money as humanly possible from other family members to buy a fleet of brand new Hummers – destined to fall in value? Whenever you get confused about what the government is up to, here's a little secret for you... Just take it back to the basics. Simply ask yourself this: If this were my family, or my business, would I spend my money this way? Why can't governments from the smallest municipality all the way to the new administration abide by that simple standard?” This is something to think about, no?

Insurance

Never underestimate the value of an insurance policy, whether it's for flying on a jet, or driving a car, or living quietly in a house. Look at what happened to all those Katrina people who had no insurance. The government had to step in to help them - helpless people are like borrowers who have nowhere to turn except other people who may be better off than they are. I remember the time my little sister got suddenly sick and my mom and dad had to take her to the hospital. He showed them an insurance policy but they couldn't accept it - it was a life insurance policy. Poor dad - he simply didn't know better. When I received a shipment from UPS that arrived in less than perfect condition, they were excellent about reimbursing me - the item was insured. Think about it - I know this woman will.

2009

From an investment advisory letter: By Tom Dyson: “President-elect Obama makes his inaugural presidential speech on January 20. This speech is going to determine the direction of the stock market for the rest of 2009. Sentiment is the reason this speech is so important. Right now, America is feeling pessimistic. People are worried about their jobs, their houses, and their finances. No one is spending money. To get the financial system working, the government needs you to start shopping again and it needs you to start making risky investments again. In other words, the government needs America to start feeling optimistic again. The financial system we use today is a simple confidence scheme... a Ponzi scheme. To survive and grow, our system needs a constantly increasing river of capital. As long as more capital enters the system than leaves it, the system functions. As soon as new capital shrinks, the whole system breaks down. Debt is the reason. As long as we can find new capital to cover the interest on our existing debts, the system works. When capital dries up and we can't make our payments, the system crashes. This is what happened to Wall Street in October. On January 20, in his inaugural speech, Obama is going to announce a gargantuan government spending plan, probably around $750 billion in size. Obama's plan will make the problem worse. Every dollar the government spends must come from the revenues it receives from taxing Americans. Essentially, Obama will borrow money from the future and spend it today on investments the free market is unwilling to make. This wasted money will hurt our economy for years to come.” There are a few things here that make sense. However, I feel that if you get something for your money, the money is not wasted – no way. The country will get infrastructure, different types of economic engines, and improved efficiencies, out of its investment. If the private sector won’t do it, then a government subsidy is the only way. Or, maybe the country can save for the next twenty years until it can pay cash for everything? I’m no financial guru, but my guess is that that’s not going to happen. Sorry.

Geiger counter

Do you believe this? “Right now, there are only 10 stocks worth trading. Just ten. out of 5,600 stocks. That's because the rules of money are changing. And the only companies worth looking at are the ones that are following the new rules. Investment Director Keith Fitz-Gerald knows the only 10 stocks you should invest in right now. He's developed a proprietary system that reveals their future price movements-right down to the penny - with a 95% accuracy rating. It's called The Geiger Index. Keith has spent more than 10 years perfecting this technique, and now he wants to share it with you. To find out how you can use it to your full advantage, take a look at the below report.” Baloney. If he knew that much, he would be Warren Buffet. He makes money selling the report, not buying stocks. PLEASE. The girl at left is saying something like "Convince me."

Too good to be true

By now, most of you have heard of Bernie Madoff - the big-time con man from New York. He was never an investor or fund manager - he was and is a thief. He's the guy who played a gigantic Ponzi scheme game against hundreds of investors - many of whom should have known better. It's like they say - greed and charm will get you every time. When it's too good to be true - it's too good to be true. Now is a little too late to be wanting to be safe. The building to the left is the lipstick building in New York, where Bernie had his offices. Impressive, no? That's why I always say, invest conservatively. Buy lots of stock now, but do it wisely. Where Madoff is concerned, there are no high hemlines - sorry.

Hemlines again

Again, I must say I told you so. I'm no guru when it comes to investing but you just have to know that when prices are low, that's the time to buy. The following is a quote from an investment advisory but I forget which one: "The stock market is presenting you with one of the great buying opportunities of your lifetime – perhaps the greatest. Stop trying to pick the bottom." That's what 41-year market veteran Steve Leuthold, of the Leuthold Group, just told his clients. "The most difficult decision is not what to buy," he says. "Just buy!" Leuthold is one of our favorites, primarily because he doesn't follow the crowd... even when it's to the detriment of his own business. For example, for much of the last decade, he's been bearish on stocks. Clients don't line up to give you money when you're bearish. But Steve launched the Leuthold Grizzly Fund in June 2000, near the top of the stock market bubble. The Grizzly Fund is up nearly 80% this year. He was right to be bearish this decade. As he told his clients, stocks lost as much over the last 10 years as they did from 1929 to 1939, which was "the worst 10-year performance in U.S. stock market history. " Also, if you must be certain, observe hemlines - they're not coming down so that means the stock market is gearing up for a spectacular rise. Need I say more???

Bankruptcy Prediction

From a popular investor newsletter: "This Friday, Dec. 12th, the next stage of the financial crisis will begin. That's when one of America's biggest businesses (they operate in 44 states), will undoubtedly declare bankruptcy. How can I be so sure it will happen on Friday, December 12th? Two words: Un-payable debt. You see, the company I'm talking about, which is the 2nd biggest in its industry, and is headquartered in Chicago, has until Friday, December 12th at midnight to pay back a $900 MILLION loan. In the current market, this amount of debt is lethal. The company is currently paying over $1 billion per year in interest expenses to finance their debt—that's MORE THAN THEIR OPERATING INCOME. (That's like having a mortgage payment that's bigger than your entire paycheck.) There is absolutely no way the company can make this $900 million payment or raise this kind of money." Unfortunately, we are never told who it is although I remember reading a financial report a few days ago regarding this company, I don't remember who it was. It deals in commodities. In honor of black Friday, a black violin.

Diamonds

From an investor newsletter – I don’t remember which one: “Russian stocks can make great speculations... The country holds the world's largest reserves of natural gas. It's the world's second-largest oil producer. It has huge amounts of diamonds, timber, gold, and base metals. So when commodities are rising, Russia is "en vogue." But the Russian government is as crooked as a dog's hind leg. One minute, a Russian company has billions in assets... the next, the government takes them. This corruption leads to lightning-fast market declines. We're in "lightning-fast decline" mode in Russia right now. Investors are scared the government will attack more companies. We advise them to be scared of further weakness in the commodity markets. If oil corrects down to $90, this new downtrend will get much worse.”

Well, well, well. Oil has actually corrected to $45. Isn't that amazing? That's not the Russian flag, by the way. It's the official flag of Mexico. One of these days, Mexico might discover diamond and gold mines somewhere - it already has timber, metals, oil, and gas - then it will be even with Russia.

Hemlines and the Economy 2

As I have said before - if you want to know what the economy is up to, look at hemlines. This woman and her husband are taking a nice stroll - they are not worried about deflation and neither should you. Here is an article (which I condensed) taken from an investor advisory newsletter. I'm posting it because I agree with what it says, although most economists don't. By Martin Hutchinson: "The U.S. Producer Price Index (PPI) and Consumer Price Index (CPI) both fell in October. Those declines – combined with sharp downward spirals in worldwide stock and commodity prices – have caused many analysts, and even central bankers, to worry that we are on the brink of deflation.
Such concerns may be warranted in the short-term. But in the long run, deflation won’t be the challenge we face.
Thanks to an overly aggressive central bank, and more than $1.5 trillion in U.S. Treasury Department bailout programs – as well as other factors related to the ongoing global financial crisis – inflation will be the problem that ultimately bedevils us.
As long as oil and commodity prices drop, the PPI and CPI indices, which include oil and commodity prices, also will fall. Such a decline, however, does not constitute deflation; it is simply a one-time price adjustment. This is particularly true if most of the commodity-price declines are simply a reversal of excessive increases that had occurred over the previous year. That’s essentially what we’ve been seeing here. However, the deflation believers currently have an additional argument: With output in the United States plunging, and the stock market down around 50% from its October 2007 peak, there are very few pressures pushing prices upward. ... this, however, will not turn into deflation, unless the recession is exceptionally prolonged. Currently, output and employment are dropping very sharply, as is the stock market. This cannot continue for more than a few months – the latest being perhaps late spring of the New Year. As output declines, forces pushing it towards recovery will become stronger and equilibrium will appear." If you can buy 100,000 shares of any safe, conservative stock, do so, while the price is still low.

Ken Fisher

Ken Fisher has written a book - it's titled The Ten Roads to Riches. Here they are:

1. Start a successful business—the richest road! 2. Become the CEO of an existing firm and juice it—a very mechanical function. 3. Hitch to a successful visionary’s wagon and ride along—it’s high value-added. 4. Turn celebrity into wealth—or wealth into celebrity and then more wealth! 5. Marry well—really, really well. 6. Steal it, legally—no guns necessary! 7. Capitalize on other people’s money (OPM)—where most of the mega-rich are. 8. Invent an endless future revenue stream—even if you’re not an inventor! 9. Trump the land barons by monetizing unrealized real estate wealth! 10. Go down the Road More Travelled—save hard, invest well—forever!

Good luck.

Listen to me

The instability in the stock market is being caused by nothing but fear and the instability and unreliablity of investors themselves. Listen to me now - buy cheap stocks and hold on to them. Period. Don't sell, don't move, don't panic, don't run, don't cry, don't collect $200 - nothing. Stay still and everything will be fine. The stock market is not for babies to begin with. If you're going to be selling at the first hint of lower earnings, play Monopoly instead. You'll make more money there.