Blog | Choose Stocks Wisely

Some Q & A (Part I)

Since my book, “Choose Stocks Wisely: A Formula That Produced Amazing Returns,” was released in early October, I’ve received a number of e-mails from readers. Some of these e-mails have included questions about different issues and I’ve attempted to answer each question received. One person, Al, who wrote me recently, suggested that I share some of the questions and answers I receive. I thought it was a great suggestion and am doing just that through this post, and several posts which will follow in coming weeks.

Arthur and John observed that my Finviz screen provided in the book presently only reveals a few stocks which pass the screen and are left to evaluate using my Adjusted Floor Price Scorecard. Arthur was pondering relaxing some of my criteria in order to reveal more stock candidates. John wonders if we are in a period of excessive risk-taking in the market, thus leaving fewer and fewer low-priced stocks.

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December 9th, 2013|Balance Sheet, bear market, bull market, stock screen|2 Comments

Choose Stocks Wisely Seminar

I will teach a seminar later this month on how I use the balance sheet to assess risk when evaluating potential individual stock investments. At the end of this post, you can click on the link to read more and see video footage. Thanks to community media for helping promote the event. WTOK TV is the source of the coverage included in the link below the post.

The first part of the seminar will provide a conceptual presentation of the balance sheet relative to its vital role in risk assessment. The second part will include both practical application at the computer and a question and answer time. Teaching is a passion for me and I hope to do more seminars of this nature in the future. Thanks to Mississippi State University, Meridian for hosting this event.

http://www.wtok.com/home/headlines/MSU-Meridian-Seminar-Focuses-on-Investing-234666191.html

December 5th, 2013|Balance Sheet, In The News|2 Comments

Have a Wonderful Thanksgiving!

We thank God for all our family and friends, including our church family at Highland Baptist Church. We are thankful to live in a nation where we enjoy freedoms, and are indebted to those who serve in our military to keep us safe and to protect our freedoms.

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November 27th, 2013|Uncategorized|0 Comments

Investing In Individual Stocks Is Not For Everyone

This may seem an odd post given that my book, “Choose Stocks Wisely: A Formula That Produced Amazing Returns,” is about how to lower the risk when choosing individual stocks to buy. Yet, investing in stocks is certainly not something for everyone.

Many people today are just getting by, financially, and are not at a place in life to have discretionary resources to invest in stocks. There are others who have money to invest but don’t want to own stocks or other investments that could decline in value. They simply want to avoid any investment that puts principal at risk. Yes, there are good reasons why investing money into individual stocks is not for everybody.

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November 22nd, 2013|Balance Sheet, Buying, Investing, stewardship|0 Comments

Crediting One’s Account

Equity represents wealth. On a corporate balance sheet there is an account called Stockholders’ Equity and it represents the wealth of all company stockholders that has been accumulated across the life of the business.

When we hear the phrase that our account has been credited, we see that as a good thing. It represents an expression that our worth has been increased. In the practice of accounting, a corporation’s Stockholders’ Equity account on its balance sheet is increased when we book a credit to that account. Further, the Stockholders’ Equity account represents an amount that belongs to all company stockholders proportionate to the number of shares held by each owner. Shareholders increase in equity, or wealth, when their collective account, namely Stockholders’ Equity, is credited through an accounting book-keeping entry.

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November 17th, 2013|Balance Sheet, Equity, faith, God|0 Comments

God Knows What He Is Doing In Our Lives

In Proverbs 3: 5-6, we are admonished to “Trust in the LORD with all your heart, and lean not on your own understanding; In all your ways acknowledge Him, and He shall direct your paths.” NKJV, Bible

Let me share how I arrived at this time and place where I’m posting to a blog on a website about a book I’ve written on how to choose stocks wisely. I earned my first car by age 17 from mowing lawns…..lots of them. Planning to start a lawn business for my career after I finished high school, I had no desire to go to college. Manicuring a yard, then stepping back and looking at the finished job was remarkably satisfying. The yard business never happened after high school, though.

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November 8th, 2013|Uncategorized|5 Comments

Buying Stocks Near Tangible Net Asset Value

My book, “Choose Stocks Wisely: A Formula That Produced Amazing Returns,” communicates in step-by-step fashion the usefulness of the balance sheet to finding a buying price on a common stock. As stated before, a share of stock is a share of company equity. Equity is found only on the balance sheet.

Also found only on the balance sheet are a company’s assets (resources) and its liabilities (obligations). The excess of the assets over the liabilities is equal to the equity of the company. Since equity is equal to the residual after subtracting liabilities from assets, equity is also referred to as “net assets.”

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November 3rd, 2013|Balance Sheet, Buying, Equity, net tangible assets, Stock|4 Comments

Book Signing at Mississippi State University, Meridian

I hosted a book signing for my new book “Choose Stocks Wisely: A Formula that Produced Amazing Returns” on Tuesday evening, October 29, 2013 at MSU Meridian. It was a very good time and I was able to sign a lot of books. I’m tremendously grateful for the support of MSU Meridian and for my community! Check out the link to an article and short video that was done by WTOK TV of Meridian; a sincere thanks to WTOK. My lovely wife and two daughters joined me at the signing table. It was a privilege to sign books for a lot of dear friends. I’ve attached one picture of signing a book for Mayor Percy Bland, mayor of Meridian.

http://www.wtok.com/home/headlines/MSU-Meridian-Professor-Holds-Book-Signing-229809461.html

October 31st, 2013|In The News|5 Comments

Investing in Times Like These

I was speaking at a civic club the other day about my book, “Choose Stocks Wisely: A Formula That Produced Amazing Returns.” During the Q and A time, I received a question that I’ve received before. The question probed at what my thoughts are toward investing in stocks amidst a backdrop of great financial uncertainty in our nation today.

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October 26th, 2013|faith, Investing, Stock|1 Comment

Is Investing in Stocks Gambling?

Observing the investing behavior of my parents while I was growing up, I came to think that investing in anything other than a certificate of deposit (CD) was too risky. In fact, during my youthful years, I embraced the notion that people who invested in the stock market were gambling.

Later on, it occurred to me that all publicly-traded corporations are owned my stockholders. If the corporations had no stockholders, there would be no corporations. This would mean the absence of jobs and collapse of the economy. Well, if investing in stocks is actually gambling, it would not take long before corporations would cease to exist because there would be fewer and fewer people who would be willing to gamble away their hard-earned money.

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October 19th, 2013|Gambling, Investing, stewardship, Stock|0 Comments