Lack of Food Can Cause Bigger Stock Market Trading Risks

According to a recent behavioral finance study, stock market traders who are hungry take substantially greater trading risks. The individuals in the study ended up taking the least amount of risk after a big meal.

Stocks Going Ex Dividend the First Week of August

Here is our latest update on the stock trading technique called 'Buying Dividends'. 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. In flat or choppy markets, your have to be extremely careful.

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 Excel list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps over $500 million, and yields over 3%. Here are a few examples showing the stock symbol, the ex-dividend date and the yield.

Hudson City Bancorp, Inc. (HCBK) market cap: $6.6B ex div date: 8/3/2010 yield: 4.9%

Global Partners LP (GLP) market cap: $432.5M ex div date: 8/2/2010 yield: 7.8%

R.R. Donnelley & Sons Company (RRD) market cap: $3.5B ex div date: 8/3/2010 yield: 6.1%

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 the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com or WSNN.com.

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.

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 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.

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

Author does not own any of the above.

By Stockerblog.com

Top Brazil Stocks

Of the four BRIC countries, Brazil seems to be the country that is in the strongest shape and has the greatest potential, over Russia, India, and China. Here are some facts about Brazil:

1. Brazil is the fifth largest country in the world by both population and area

2. It has the ninth highest gross domestic product on a purchasing power parity basis, according to the International Monetary Fund.

3. It has the world's eighth largest economy at market exchange rates.

4. It is the largest economy in Latin America.

5. It is the largest producer of ethanol in the world, which comes from sugarcane.

6. The country's major exports include aircraft, automobiles, ethanol, electrical equipment, textiles, footwear, iron ore, steel, coffee, orange juice, soybeans and corned beef.

7. It is the world's tenth largest energy consumer.

8. Brazil is a major producer of energy from renewable sources, primarily hydroelectricity and ethanol.

So what Brazilian stocks should you invest in? One resource is the book I wrote Investing in Brazil Stocks: Get Rich from the South American Giant. Another way is to check out the list of Brazil stocks at WallStreetNewsNetwork.com. Here are some from the list.

If you are looking for a petrochemical company, there is Braskem S.A. (BAK), the largest thermoplastics producer in Brazil. The stock has a PE of 9 and a forward PE of 19.

With growth in the rebuilding of infrastructure, the demand for steel should increase, and should benefit Companhia Siderurgica Nacional (SID), the second largest Brazilian steel manufacturer. The stock has a PE of 16, a forward PE of 8, and a yield, based on historical payments, of 7%.

VAle (VALE) is the second largest mining company in the world and the largest logistics operator in Brazil. The stock has a PE of 26, a forward PE of 7, and a yield of 1.6%.

Banco Itau Holding Financeira S.A. (ITUB) is the second largest bank in Brazil, and also owns the investment company, Investimentos Itau. The stock has a PE of 16, and a forward PE of 12. It pays a small yield of 0.4%.

If you like beer, you'll love Companhia de Bebidas Das Americas (ABV) also known as AMBEV, which distributes beer, soft drinks sport drinks, and bottled water. The stock has a forward PE of 17.

CPFL Energia S.A. (CPL) is one of the largest electrical utilities in Brazil with a PE of 14, and a forward PE of 12. The yield is 6.7% based on historical dividend payments.

To see a list of all Brazilian stocks that trade in the US, check outWallStreetNewsNetwork.com or the book Investing in Stocks.

Author does not own any of the above. However, he wrote the above book.

By Stockerblog.com

Protect Your Portfolio with Bearish ETFs

Some investors have made some profits, want to hold on to their shares, but don't want to lose their gains if the market tanks. There are several ways of protecting a portfolio, including buying puts, shorting similar stocks, or just selling the stocks outright. However, there is an alternative, the bearish ETFs, also known as short ETFs.

An ETF or Exchange Traded Fund is structured to track various stock indices or the inverse of various stock indices. Most are traded on the American Stock Exchange. To get more bang for your buck, there are over 40 bearish ETFs that are leveraged, according to WallStreetNewsNetwork.com. These leveraged bearish ETFs cover numerous sectors, industries and sub-industries.

For example, if you own a lot of telecom stocks, you could by UltraShort Telecommunications ProShares (TLL) which was up 15.19% for the last three months. The ETF attempts to match twice the inverse of the daily performance of the Dow Jones U.S. Select Telecommunications index.

If you own a lot of mid-cap stocks, you could consider buying the Rydex Inverse 2x S&P MidCap 400 (RMS) which has a goal of matching the inverse daily performance of the Mid Cap 400 Index. The ETF is down 15% for the last three months.

For downside protection of a general portfolio, you could take a look at the UltraShort S&P500 ProShares (SDS) ETF which was down 13.22% for the latest three months. It tries to achieve twice the inverse of the daily performance of the S&P 500 index.

For a list of over 40 leveraged bearish ETFs, go to WallStreetNewsNetwork.com. Jut be careful about investing in these, as they may not always perform the way they are supposed to. They are primarily designed for short term index tracking as opposed to long term tracking.

Author does not own any of the above.

By Stockerblog.com

Brazil Coffee at a 5 Year High: Time to Look at Coffee Stocks

Today, September 2010 coffee futures were up over 2% for the day. Brazil Arabica coffee is trading around a five year high. So will this high price adversely affect coffee companies? Will the coffee retailers be able to pass through higher prices to their customers? Here are some coffee companies worth investigating.

Caribou Coffee Company, Inc. (CBOU) is a Minnesota company operates gourmet coffeehouses throughout the United States. The stock has a PE of 36 and a forward PE of 18.4.

Growers Direct Coffee Company, Inc (GWDC.OB) sells coffee grown in Papua New Guinea, Jamaica, and Ethiopia. This is an extremely low cap stock.

Coffee Holding Co.Inc. (JVA) is a New York based wholesale coffee roaster and dealer. It has a P/E of 6.7 and pays a yield of 2.5%.

Green Mountain Coffee Roasters Inc. (GMCR) is one of the "bigger' coffee companies, having a market cap of over $3.8 billion. This Vermont company roasts, distributes, and sells coffee products in the Northeast. Their current P/E is 57, their forward PE is 28.8.

Peet's Coffee & Tea Inc. (PEET) is an Emeryville, California based company which roasts, retails, and markets roasted whole bean coffee throughout the United States. They have a forward P/E of 28, and a forward PE of 25.7.

Starbucks Corp. (SBUX) is a Seattle, Washington company which roasts and markets whole bean coffees through over 13,000 stores throughout the world. This is the third reporter of earnings tomorrow. Their P/E is 23 with a forward P/E of 17.5.

To see lists of stocks of other industries, check out the lists at WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com

If You Only Read One Economics Books this Summer, Read this Book

The book, Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions by Dan Ariely, is one of the most fascinating, interesting, and informative books on economics. He is able to blend economics and psychology into a great read.

If you think you know about economics already, you may be right to a certain extent. For example, basic supply and demand works at all prices down to a penny, but once you drop from a penny to free (or what he call in the book FREE!), then economics is turned upside down. For example, did you know that attorneys would rather work for free than be paid $30 an hour?

He explains how relativity and comparisons affect our financial decisions (and personal decisions such as dating). He also talks about how compensation of gifts versus cash bonuses can make a big difference, and how it can affect employee morale. In addition, he also covers how ownership can affect the perceived value of the asset, and how it can vary widely from the perceived value of the non-owner. Did you know that the more expensive a medicine is, the more likely you will receive a positive benefit, even if it is the same medicine?

The nice feature about this book is that all the lessons he offers in the book are backed up by scientific experiments, that he has performed! He goes into detail about the experiments, without making it boring. Ariely talks about how the control groups and the experimental groups are set up, and even gives examples of a couple of the human guinea pigs for each of the experiments and what they experienced, and why they experienced it.

After the experiments are over, he thinks about the 'what-if's', and then performs follow-on experiments, and he tells you about the follow-on studies.

For an economics / psychology book, it is amazing how it holds your attention. I like the fact that he doesn't just tell you what he thinks; everything is back up with experimentation. I highly recommend that you read Predictably Irrational, Revised and Expanded Edition.

Great Opportunities with Pink Sheet Stocks

Some investors believe that pink sheet stocks are just penny stocks and scams. Not true! Pink Sheet stocks shouldn't be dismissed out of hand as sometimes that is the only way to invest in many top quality foreign stocks. As a matter of fact, dozens of European companies have opted out of trading on the New York Stock Exchange and have decided to have their ADR's traded on over-the-counter, such a Bayer (BAYRY.PK), the company that makes the famous aspirin brand along with many other medical products.

Bayer formerly traded on the NYSE but decided it wasn't worth the hassle or expense, so they now trade on the Pink Sheets. The stock has a PE of 23.62, a forward PE of 10.41, and a price earnings growth ratio of 1.85.

Volkswagen AG (VLKAY.PK) is the German car manufacturer which has the Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda and Volkswagen Commercial Vehicles brands. The stock has a P/E ratio of 25.89, a forward PE of 10.11, and a PEG of 0.85.

Roche Holding Ltd. (RHHBY.PK), the Swiss pharmaceutical company, has a PE of 16.05, a forward PE of 9.89, and a PEG of 1.14.

Please note, the stock symbols for these stocks use the .PK extension for certain sites such as Yahoo Finance. You can get an Excel list of the top Pink Sheet stocks, which you can download and sort, at WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com

Top Yielding Stocks Under $5 a share

Many investors think that the perfect stock is one that sells for a low price and pays a high yield. It may be hard to believe but there are actually several stocks, including closed end funds, that sell for less than $5 a share and pay a dividend, with a dozen paying yields greater than 1.25%.

WallStreetNewsNetwork.com just posted a list of high yield stocks selling for around $5 or less, with yields ranging from 0.4% to 11.5%. Just remember that the yields are based on historical payments, and the dividends can be adjusted, reduced, or terminated at any time.

21st Century Holding Co. (TCHC) is an insurance underwriting and claims processing company which yields 6.3%. The stock recently traded at 3.79.

Qwest Communications International Inc. (Q), a telecom company, yields 5.7%. The stock trades at less than $6 per share.

Electro-Sensors Inc. (ELSE), which makes and sells industrial production monitoring and process control systems, has a yield of 3.5% with a trading price of 4.25.

For the full list of high yield stocks trading for less than $5, which can be downloaded and sorted, go to WallStreetNewsNetwork.com.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

Highest Yielding Real Estate Investment Trusts

One of the best ways of speculating on real estate is through the use of Real Estate Investment Trusts, more commonly known as REITs. These investments pass through almost all their income to avoid double taxation, which is what most regular corporations are subject to. The REITs have several advantages over owning real estate directly.

First, REITs are very liquid, unlike owning property directly. If you need to get your money out, you can sell it and get your money in a couple days. Second, you can receive an income through dividends. Third, dividends can be received quarterly or even monthly for some REITs, just like rental income checks. Fourth, you don't have to worry about making sure the insurance, property tax, and other expenses are paid. Fifth, you won't get a call at two o'clock in the morning about a leaking toilet. And last but not least, you don't have to deal with evictions.

Although there are hundreds of REITs to choose from, you need to be cautious about which one you choose, especially the debt level. In terms of specialties, you can choose REITs that invest in apartment, commercial, industrial, government building, medical buildings, mortgages, and many other sub-categories.

WallStreetNewsNetwork.com has just come up with a list of over a dozen of the highest yielding Real Estate Investment Trusts. Yields range from 3.2% to over 20%, but I would recommend avoiding any REITS yielding above 7% as I don't believe those high yields are sustainable.

One example, is National Health Investors Inc. (NHI) which pays a decent yield of 6% and has a price to earnings ratio of 16.4%. The REIT invests in health care properties, mainly those involved in the long-term care industry. The company has been paid quarterly dividends since 1992.

Another high yield REIT is LTC Properties, Inc. (LTC) which sports a yield of 6.5% and sports a PE of 20.9 This is another long-term care real estate investment trust. This is a REIT that pays monthly dividends, and the dividend track record dates back to 1992 also.

Public Storage (PSA) offers a yield of 3.3%, and has a PE ratio of 32.8. This REIT has a different approach to the REITs described above, as it owns and operates self-storage facilities in the United States and Europe. The company has a long track record, with monthly dividends paid since 1988.

To see the entire list of high yield REITs, go to WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com

Top Yielding Canada Stocks

Canada didn't suffer as much as the United States did during the housing crisis. It also wasn't affected as much as the States during the financial crisis. As a matter of fact, the return on the S&P 500 over the last five years is negative, whereas the iShares MSCI Canada Index (EWC) is up about 40%.

For income investors, high income Canada stocks are a good way to diversify out of US dividend stocks. Just remember that income on Canada stocks is subject to Canadian withholding tax. WallStreetNewsNetwork.com has just published a list of top yielding Canadian stocks, 15 of which yield more than 2.5%. Here are some examples:

TransCanada Corp. (TRP) is a Calgary based oil and gas pipeline company which yields 4.4%.

Royal Bank of Canada (RY) is one of Canada's major banks. This Toronto, Ontario based company yields 3.8%.

Rogers Communications Inc. (RCI), a Toronto based communications and media company, yields 3.5%.

To see a list of over 15 high yield Canada stocks, which can be downloaded, sorted, changed, and added to, go to WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com