Tuesday, March 24, 2015

The Best Way to Invest in Samsung

One company that investors would like to invest in, but is very difficult to do, is Samsung, considered to be the largest technology company in the world. Its products are used by Apple (AAPL), Nokia (NOK), and Sony (SNE). The stock trades at 11.8 times trailing earnings.

If your broker has access to a German exchange, you can buy Samsung Electronics (SSU.DE) or through the London Exchange, you can also buy Samsung (BC94.L).

However, most Americans don't have this access. So another option is buying the Samsung (SSLNF) over-the-counter on the Pink Sheets. The problem with this is that it is very illiquid, with only about 500 shares traded per day on average.

However, there is one other way to get in on the Samsung stock. You can buy shares of the Korea Fund (KF), which owns a huge amount of Samsung, making up almost 20% of the portfolio. This closed end fund also owns several other Korean companies, such as Hyundai (HYMTF). So you also get some diversification, plus some liquidity.

You get one other bonus. The Korea Funds trades at a 10.5% discount to net asset value. The fund uses no leverage and has a price to earnings ratio of 4.5.

If you like interesting stocks list this, check out the free stock lists at WallStreetNewsNetwork.com.

Disclosure: Author owns AAPL.

By Stockerblog.com

Stocks Going Ex Dividend the Fifth Week of March

Here is our latest update on the stock trading technique called 'Buying Dividends,' also commonly referred to as 'Dividend Capture.' This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets, and can work in flat or choppy markets, but you need to avoid the technique during bear markets.

In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, and the yield.

Maiden Holdings Ltd. MHLD 3/30/2015 3.6%
Republic Services RSG 3/30/2015 2.6%
Corrections Corp of Amercia CXW 3/31/2015 5.3%
DCT Inndustrial Trust  REIT DCT 3/31/2015 3.1%
Fifth Street Senior Floating Rate FSFR 3/31/2015 10.9%
Sysco Corp SYY 3/31/2015 3.0%
Domtar Corp UFS 3/31/2015 3.7%

The additional ex-dividend stocks can be found at wsnn.com. (If you have been to the website before, and the latest link doesn't show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at WallStreetNewsNetwork.com or WSNN.com. Most of the lists are free. 
Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Monthly Dividend Stock List

Record date: the day when you must be on the company's books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Book now available: Buying Dividends Revised and Expanded

Book now available: Stock Market Trivia Makes a Great Gift!

Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written.

Sunday, March 22, 2015

Top Rare Earth Stocks

"The Prius has 25 pounds of rare earths in it." ~ 60 Minutes

If you watched 60 Minutes tonight, you would have learned that rare earth elements are used in iPhones, magnets, thermostats, televisions, turbines, batteries, luminescent materials, lasers, medical equipment, and numerous other areas. These rare earths, also known as rare earth metals, rare earth minerals or rare earth elements, have caught the attention of investors.

Although they are relatively abundant, these elements are difficult to mine because of their dispersion and and rarely found in a concentrated form. These rare metals group consists of Scandium, Yttrium, Lanthanum, Cerium, Praseodymium, Neodymium, Promethium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, and Lutetium.

Lithium and manganese are sometimes referred to as rare earth metals due to their rarity, but technically, they are not part of the rare earth element family. The simplest way to invest in these elements is b y purchasing stocks involved in the mining of rare earth metals, more than 25 of which have been turned up by WallStreetNewsNetwork.com.  Keep in mind that many of these have low market caps and are therefore very speculative.

One example is Rare Element Resources Ltd. (REE) is a Lakewood, Colorado based $27 million market cap company which explores and develops rare earth mineral and gold properties. It owns the Bear Lodge Property in Wyoming, which has one of the largest disseminated rare-earth element deposits in North America, according to the US Geological Survey. Resources at the company's Whitetail Ridge project includes U. S. Department of Energy critical rare earth elements Europium, Terbium, Dysprosium, and Yttrium, along with other elements Gadolinium, Holmium, Erbium, Thulium, Ytterbium, and Lutetium. The company, which trades on the New York Stock Exchange, has no debt and 21 cents in cash per share. For the latest reported quarter, the company had negative earnings of 29 cents per share.

The company that was mentioned on 60 Minutes was Molycorp, Inc. (MCP), based in Greenwood Village, Colorado, mines and distributes rare earth and rare metal materials, including lanthanum, cerium, neodymium, praseodymium, and yttrium, along with heavy rare earth concentrates, including samarium, europium, gadolinium, terbium, dysprosium. Its primary mine is the Molycorp Mountain Pass mine in San Bernardino County, California. The company has $1.57 billion in debt, and over $211 million in cash, with 76 cents in cash per share. The company reported a $2.70 loss per share for the latest quarter.

A diversified way to invest in rare earth stocks is with the Market Vectors Rare Earths/Strategic Metals Exchange Traded Fund (REMX). This ETF has a goal of tracking the performance of the Market Vectors® Global Rare Earth/Strategic Metals Index. It has price to earnings ratio of 14 with a dividend yield of 1.5%.

For a free list of rare earth metals stocks, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com. This site also has a list of lithium stocks, which technically are not rare earth stocks, but are often included in the same investment industry.

Disclosure: Author did not own any of the above at the time the article was written.

By Stockerblog.com

Saturday, March 21, 2015

How to Get Wells Fargo Bank to Pay You 6% on Your Money

Do you have an account at Wells Fargo Bank, or one of the other major banks? If you have a savings account, you are earning 0.01%. That is not one percent, it's not one tenth of a percent. It is one one hundredth of a percent! And this is being paid on what the bank calls its High Yield Savings account.

Of course, you can boost your yield all the way up to 0.50%; that's a half a percent. But you have to tie up your money for 58 months, which is almost five years.

So what are your other options? You can buy the Wells Fargo (WFC) stock, which pays a yield of 2.5%. But if you want a really high yield, you should consider the Wells Fargo 7.50% Non-Cumulative Perpetual Convertible Series L Preferred Stock (WFC-PL). The stock, which currently sells for $1,207 a share, pays $75 per share per year, giving it a current yield of 6.2%.

This preferred stock also has an upside kicker. It is convertible into 6.38 shares, which means that if the common stock rises above 189 per share, the preferred shares will move up above its current price. Obviously, the common stock is way below that price at 56 per share, but it is a benefit.

One other advantage that the preferred stock has over the common shares is that if the company goes out of business, the preferred shareholders are paid off before the common shareholders.

Here are the risks. First, the preferred stock isn't very liquid, with a trading volume of only five or six thousand shares a day. Second, and much more important, is the interest rate risk. When interest rates go up, the preferred stock will drop. If you are willing to accept the risk, this may be an investment option for you. If you like interesting stocks like this, check out the many free stock lists at WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above when the article was written.

By Stockerblog.com

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