Return on Invested Capital (ROIC) - 4 Reasons to Use ROIC to Pick Profitable Stocks

Return on invested capital (ROIC) is one tool that value investors use to determine whether or not a company has a sustainable advantage over its competitors. Some investors call this sustainable competitive advantage a "moat". Companies with a moat tend to dominate industry niches in which they operate, and the stock market tends to reward investors in these companies with higher stock prices as they grow within their market niche.

Return on Invested Capital (ROIC) = Net Operating Profit After Taxes (NOPAT) / Invested Capital
Return on invested capital is a good way to screen for companies that may have a moat, because it measures how efficiently a company uses its available money to create the profit it generates. If a company has a large return on the capital it invests, especially when compared to its competitors, it is probably because the company has a more efficient way of producing its goods or services, or it can charge prices that allow it to earn more profit margin than its competitors.

Here are 4 reasons that make return on invested capital an indicator you should use to screen for companies that may continue to achieve above average growth:

1) Management efficiency - ROIC shows how well a management team generates operating profits vs. the amount of money they use to generate those gains
2) Clarifies the Income Statement - Instead of just focusing on net income (the "E" in the P/E ratio), ROIC uses NOPAT instead, which removes items like investment income and interest expense (among others), which gives a much clearer picture of how much profit the company is actually generating as a result of its profit making operations
3) By using investment capital instead of just equity or assets (like return on equity (ROE) or return on assets (ROA)), return on investment capital uses deployed equity AND debt capital, and removes cash that is just sitting in a bank account collecting interest instead of generating returns via the company's operations
4) Companies with a high return on invested capital within their industry are generally leaders, or emerging leaders, within their market niche.

By using the ROIC formula shown above, you can prove what this article states with a quick visit to MSN money, and comparing the historic return on invested capital rankings of Google and Yahoo (you probably used one of these search engines to find this article). As you see the ROIC values for these two companies, and look at their relative stock price performance, you may find the results enlightening.

SOURCE
www.online-investing-secrets.com

Be a Wise Investor - Don't Gamble in Stock Market

As I was walking on the street today, I passed by an advertisement of an investment house. It stated "Be An Investor, Don't Be A Gambler." I could not agree more with this statement when it comes to money investment or trading in the stock market. You simply cannot have the gambling mindset if you like to make money in the stock market.

Many millionaires are born in the market simply not because they have very good skills or technique to forecast the market direction. The simple reason is that they have a trading plan to follow when they trade or invest in the stock market.

Don't Be A Gambler

"If you fail to plan, you plan to fail"

I sure many of us have heard about this statement. It apply for stock trading and investment as well. Many of us get into the stock market wishing to make BIG BIG money at the FASTEST and SHORTEST time. That's a gambler mindset. Imagine this, you heard your friends, or your relatives talking about a specific stock counter, how fast it grows and how it make money. I am sure you will start to feel a bit greedy and like to involve in the game. Then, you follow their suggestion, call up your broker and place an order. Good, the stock started to grow, but suddenly it crashed. You ended up holding on to the stock with huge paper loss.

Does that sound familiar to you? This is the mindset just that you are walking into the casino. You are betting that the market with 50-50 chance of winning. You are a follower and you make decision based on gossip, rumour or broadcast news. You are wishing simply that there is a day that the money pouring down from the sky and all lands into your garage.

Stop this day dreaming "Gambling" mindset. The only way you can be profitable in the stock market is to be a wise investor.

Be A Wise Investor

There is not free lunch in the world. It is the same in the stock market. No doubt that there are many people making millions in the stock market. But it simply did not happen by luck.

The single factor that distinguish between a good and bad investor is the willingness to learn.

If you are serious and want to be a millionaire in the stock market, you must be willing to learn. There are 2 main schools in stock market analysis. They are fundamental analysis or technical analysis. They both have pros and cons and none of them is perfect. However, start to pick up the skill by learning either technique will help you to analyse the market. These information about stock market trends or the stock valuation will help you to make an informed decision on what to buy or short.

This approach is a total contrast to placing order simply listening to your friends or relatives or even your brokers. Remember, they are not responsible for your money, only you are responsible for your own money. So, be a wise investor starting today!

SOURCE
www.investmoneylab.com

What is a Credit Bureau?

In today's real estate market, it is more difficult than ever to qualify for a mortgage. With foreclosures on the rise, your credit score needs to be good, if not stellar, for lenders to say "yes". Still, most American's don't understand even the basics of a credit report or what exactly a credit bureau is. Even seasoned investors are confused on many of the details of how credit works.

This brings us to the most basic credit question of all. What exactly is a credit bureau? Quite simply, a credit bureau is a giant record keeper that stores information on almost every adult in the United States. Information includes addresses, employment and most importantly, payment history.

Some people think that when something on their credit report is inaccurate, the credit bureau is to blame. Many times, a lender will hear the statement "Equifax isn't reporting my car correctly". This isn't true! Your lender is the one reporting incorrectly.

The credit bureaus collect information, but they do not verify anything. What they report is simply the information that creditors supply them with. This means that a creditor can report anything to the credit bureau and it will appear on your report, regardless of whether it is accurate.

It is estimated that between 40 and 70% of credit reports contain errors. These errors can lead to increased interest rates, credit denial and even job denial.

Since without your involvement, your credit report is simply a large collection of unverified data, the federal government has numerous consumer protection laws in place. The most important of these to understand is that the only time the information in your credit bureau is verified is if you file a dispute with each of the three credit bureaus.

When this happens, the creditor has 30 days to prove to the credit bureau that the item is accurate. If they fail to verify the item as accurate within this time frame, the item is required by law to be removed from your credit report.

One of the most important keys to keeping your credit score up is consistent monitoring of your report. There are many great services to help make this easy, but the most important key is consumer knowledge and involvement.

SOURCE
www.financethedream.com

Finding Credit Partners

Whether you have lots of money or no money, if you truly want to build a real estate empire or build a business, eventually you are going to want to find business credit partners. A key point to keep in mind is that you need to find these partners before you actually need them. So, the question is, how do you find them?

Here are some strategies that may work for you:

· Put together a business plan. This plan will explain the nature of the business, what the funds will be used for, what each individual's responsibilities are and what the end plan for the business venture will be.

· Ask family and friends to be your partner. Before you can do this, however, you need to get someone in your family or a close friend with GREAT credit to add you as an "authorized user" or better a "secondary user" to their high-limit, long-history credit cards. Explain to them that this will not affect their ratings at all. Even ask them to cut up the card in your name once they receive it. You'll be surprised at how many points this can increase your score.

· Find local people to be your business credit partner. These people are going to want to meet you and see what you're about. Here again, this is why your business plan is so important.

· Use the local newspaper to advertise for partners.

· Once you have business credit for your own main business venture, you will want to acquire partners for your other business ventures and opportunities, such as investing in Real Estate.

Credit Repair Tips - You Need to Know These 3 Things Before You Make a Move

We all know that blemishes on one's credit report is the one thing that will put a halt to dreams and aspirations real fast. When this happens the best thing to do is go on offense. Don't sit back and just let this situation handle itself. Go on the offensive, take action, and take heed of these 3 crucial things to keep in mind when moving forward to correct this problem.

The first credit repair tip is for you to order your credit reports. Across the industry, this is almost unanimously agreed upon as the first step in your do-it-yourself arsenal. You'll need to know what you have to work on for the coming weeks and months to come. You'll need to know exactly what is adversely affecting your credit score, who's listing this information, and what their contact information is. Make sure to order all three credit reports as there may be differing information from one to the next. If your not familiar with the three major companies, you'll be dealing with TransUnion, Equifax, and Experian.

The second step you'll want to take is to take a fine tooth comb to these credit reports. What I'm trying to say here is that you'll likely find errors on the reports which display incorrect information. We as individuals and consumers have a responsibility to make sure that our own credit reports are displaying accurate information. There is very little to no verification process involved when these credit bureaus receive information regarding your accounts. Your creditor's words are somewhat treated as gold. This is where you'll come in providing balance to this unbalanced system they've got setup.

The third credit repair tip is to give credit where credit is due. If by chance you do have accounts that can be reported to the credit bureaus but for whatever reason aren't being reported, contact these companies and request that they be. You'll want to get credit for the on-time payments that your making on a monthly basis.

It's important to note that not all creditors will respond accordingly, but it's well worth the effort to make the request. If it has gotten to where your credit score and report are not allowing much in the way of approvals of additional credit cards and other cards that require credit, employ this process with your existing accounts and use these to help build up your credit rating. This will also decrease the amount of credit inquiries which can be adversely damaging to your score.

SOURCE
www.eliminate-credit-card-debt-today.com

5 Guides For Effective Credit Maintenance and Repair

A good rating doesn't just come merely by dreaming about it. It takes some measure of consistency and focus on some guidelines. A good number of consumers have jerked up their scores using some effective tips, though it requires strict adherence on your part for good results.

• If you have got negative accounts on your credit report, waste no time in deleting them. In getting rid of negative accounts, pay immediate attention to the recent ones. The point behind this is that new accounts are more impactful than old ones; therefore new negative accounts are more damaging than old ones.

• Make it a habit to settle debts before you seek fresh loans. When applying for new credit, exercise patience as you do not want to rush into seeking out funds after an old one has just expired or has just been settled.

• Close cards that you are no longer using.

• Discuss with a family member on registering you as an additional cardholder on his/her card.

• Always get something in return when settling a collector. You should let the collector know that you are willing to pay him the money he requests if he will delete the collection account placed on your file as a result of the debt. This way, you will be removing a negative account from your file and at the same time adding some points to your total score.
You can also pick one of two options that will clean-off negative items from your credit report and also improve the way you are rated by the bureaus.

SOURCE
www.bad-credit-repair-tips.com

UK Resident Non Dom and How the New Tax Laws Affect You

Domicile and residence are complex issues. Normally a person will acquire the domicile of their father. This is known as a domicile of origin and may be different from a person's country of birth.

It is possible to obtain a domicile of choice. In simple terms this is brought about as a result of changing the country considered to be their permanent home. Despite the changes to the tax law from 6 April 2008 most people who are resident in the UK are likely to benefit if they can persuade HMRC that they are non UK domicile.

Even where a person is non UK domicile they are deemed for inheritance tax (IHT) to be UK domiciled if they have been resident for 17 out of the last 20 years.

In very simple terms HMRC will regard a visitor to the UK as UK resident if they come to the UK with the intention of settling permanently or for a considerable time. Certainly if they spend more than 182 days in a tax year or failing that make frequent and substantial visits they will be treated as UK resident. What are considered frequent and substantial is normally considered to be an average of 90 days or more per year over a 4 year period.

The tax consequences

A UK resident and UK domicile is subject to UK tax on income and gains wherever they arise in the world.

As far as IHT is concerned a UK domicile pays IHT on worldwide assets. A non UK domicile is subject only to IHT on assets located within the UK. Where one spouse has a UK domicile, the other a foreign domicile there is a particularly nasty tax trap in that the normal spouse exemption is restricted.

Up until 6 April 2008 a UK resident non domicile individual had a favorable treatment in that they had to pay UK tax on overseas income and gains only to the extent that they were remitted to the UK.

From 6 April 2008 where a non domicile has been resident for 7 of the last 10 tax years they can keep this favorable treatment only by paying a £30,000 annual charge. In other words if they don't pay the £30,000 they have to pay tax on all income and gains wherever in the world they arise. If resident for less than this time they can adopt this remittance basis only by sacrificing their UK personal allowances. This is subject to a £2,000 de minims limit.

It must be borne in mind that in any case any amounts actually remitted are subject to tax.

SOURCE
paulguilfoyleaca.com

Credit Repair - Best Credit Repair Tips to Get You Started in Days and Not Years

No matter how many important steps you take to make sure your credit is the best it can be, you may discover your credit rating slips below desirable levels. For some, this is a huge cause for alarm. A poor credit rating will come with a number of problems such as the inability to achieve future financing. However, there is really no reason to become too alarmed over such a situation. It is quite possible to repair a credit rating as long as the right steps are taken to fix the problems. This can be accomplished through the use of credit repair service.

First and foremost, it is important to be aware of the many scams out there offering to repair your credit. Actually, it is more important to avoid them rather than to just merely be aware of them! While there are legitimate credit repair companies, there are also repair services that operate in a less than honest fashion. These services will usually make bold promises they cannot deliver on and often charge huge fees. That is why it is best to perform a little consumer research into any credit repair service prior to engaging in any business dealings with them.

Often, you can take many steps on your own to repair credit and this process is not as complicated as some assume. The first step is to acquire a copy of your credit report. The three major credit reporting agencies are required by law to provide you with a free copy of your credit report once every 12 months if you request this information. Requesting this info is always the first step because it will present you with any and all of the negative information that may be undermining your credit rating.

Upon receiving this information, it is necessary to ensure all information on the report is accurate. If there is negative information on the report that is not correct, it becomes necessary to file a notice with the entity that placed the inaccurate information. While no company you have done business with can be compelled to remove accurate information, inaccurate info can be removed. You simply need to prove to the credit bureau the info is inaccurate if the reporting entity refuses to remove it.

It is also important to do what is needed to raise your credit rating. Often, there are many simple steps that can be followed to ensure this process. Paying all your bills on time is definitely a "must" when looking to repair credit. Keeping a healthy balance of available credit is also important as well. Then, there are a few other steps that can be taken to boost your ratings up that should be enacted upon.

Making more frequent payments can boost your credit rating over time since it shows you are a reliable payer. Avoiding making excessive applications for credit cards also helps ensure your credit rating does not amass negative points. And, certainly, never get into a situation where you are receiving past due notices. All of these points are simple, basic, and effective. That is why they are also recommended strategies to follow. In short, they can help repair your credit and keep it from continually sliding downwards.

SOURCE
eliminate-credit-card-debt-today.com

Jack Beach Properties Allow You to Own a Little Piece of Paradise

Enjoy a Home Away From Home in Costa Rica

Located in Costa Rica is a beautiful beach where the surf lifestyle is certainly embraced. The mix of the sand and sun paired with the laid back mindset of the people who relax there makes Jaco Beach one of the most beautiful and serene places on earth. If you love vacationing at the ocean, have a passion for surfing, or you’re just looking for an amazing place to invest in beach rental property, Jaco Beach is an absolutely perfect option.

Jaco beach properties allow their owners to "own a little piece of paradise". These reasonably priced Jaco Beach rental homes allow you to not only have a convenient place to stay once you fall in love with this amazing town, but you’ll be able to explore all of the diverse and exciting features of Costa Rica. From lush tropical jungles to relaxing lagoons, your visit will be even more unique every time you take a trip.

Real estate in Jaco is becoming increasingly more popular. Since the beach itself isn’t exploited like many other Costa Rican cities, you’ll receive a more laid back and peaceful stay. If you haven’t visited Jaco before, taking a trip to check out the property available there can ultimately seal the deal for you. Jaco Beach rental property varies depending on the needs of the buyer, so you can find the perfect option for you. Whether you’re looking for a larger home to accommodate a big group or a secluded Jaco beachfront house for you and your husband or wife to share – you can find a reasonably priced solution. Instead of settling for a busy beach town property, take the time to see what Jaco Beach can offer you. A vacation is a time to de-stress. Let Costa Rica show you what true relaxation can be.

Investing in Jaco Beach real estate will not only be something you can utilize now, but your trip to this serene beach town can ultimately turn into something you and your family will cherish for years to come. These Jaco Beach properties turn into so much more than just a place to stay while in town for the people who invest in them. These beautiful, convenient, and decadent properties will provide you and yours with memories to last a lifetime. Until you’ve experienced all that Jaco Beach, Costa Rica can offer – you’ll never know just how amazing your vacations can be.

SOURCE
www.jacorealty.com

Understand How to Make Money Without Money Today

This is such a broad subject of how to make money without money that it warrants some thinking right at the beginning. You really need to take an inside look at yourself and your skill set. You need to find out what you can offer people. I know it seems old hat to write down your strengths but this is really the most crucial point of the whole matter.

You need to know yourself what you can offer to people. Understanding how to make money without money depends on how you view yourself.

If you are in a situation where you need money right away will be directly correspondent on how resourceful you can be.

This is not an easy task to sit down and evaluate yourself. In fact it can be one of the hardest tasks you have yet to accomplish. Either you're not used to doing something like this or you just want to get to work. Whatever the case may be you need to take stock of yourself and really know yourself before showing people what you can offer them.

What practical skills do you have? Inventory this down and you can probably find some offshoots of what type services you would be able to offer people. In fact if you can identify what skills you have you can just Google that information and find out what is related to that skill.

You can find anything online, even offshoots from a skill set that you have. From cleaning to writing, anything and everything is up for negotiation and a lot of people need this type of work done for them.

If you are into writing then I can offer you a free report that will give you some tips that will help you immensely with a learning curve in knowing what to write. If you like to write but don't know how to write fast then there is an opportunity for you to check out a popular website.

Writing articles are no cost and submitting them to article directories is also no cost. So why not take a chance and check out what this is all about. Learning how to make money without money doesn't have to be complex in this day and age.

To learn how to make money without money is not hard to implement. If you are into article writing or even want to know more about how article writing can help you make money then you have a chance to find out how. You have a chance to take a peek and learn how a lot of people are making money with essentially no money of their own.

SOURCE
www.howtowriteoutlinereports.com

Commercial Real Estate Financing: Who Controls the Third Party Reports?

Well, this weekend marked the official end of the 2008 NFL season with the NFC defeating the AFC in the Pro Bowl in Hawaii. NOW what am I going to do on Sundays??? I guess I’ll have to find some useful things to occupy my time … like tennis, martial arts, biking, skiing … It is going to be HARD until the end of summer, but I’ll think of SOMETHING. I can always fund some commercial loans, which is our specialty! I’ve heard that even Fannie Mae and Freddie Mac are limiting cash out now … to ZERO dollars. Which make sense, since they are losing money faster than the Fed can print it. We still have some portfolio sources for multifamily. If you have a scenario, give us a call!

Commercial Financing Tip

Who Controls The Third Party Reports? In light of recent “events” in the mortgage markets, it comes as no surprise that lenders are changing how they handle third party reports. After the S&L meltdown in the late 1980s, FDIC insured lenders were required to order appraisals and not accept borrower or broker provided ones. Eventually, most lenders followed suit.

Now that requirement has been extended to all third party reports, particularly Environmental Phase 1 & 2 reports. New EPA guidelines and rules are making it harder to avoid liability in environmentally “challenged” properties where it can be shown that the lender did not exercise proper “due diligence” with regard to its environmental investigation. Save your money for third party reports until you have applied for a loan, otherwise you will be ordering your reports twice.

Countrywide Loan Modifications - Easier Than Ever

Countrywide loan modifications are not impossible to get anymore. After the merger with Bank of America, Countrywide was forced to change their criteria and open up their doors to more modifications. And after the new government modification plan under Obama, Countrywide has become one of the easier lenders to acquire a modification from. But just because countrywide loan modifications have become easier to receive does not mean they are a walk in the park.

Before you do anything else, ensure that you are clear on their modification requirements. A quick call to the loss mitigation department can clear up any misunderstandings you may have and for you to get a good idea of what they're looking for in a applicant.

You can also call the loss mitigation department to find out what kind of programs countrywide loan modifications can come in. Finding out the requirements and programs they offer is an important part of being approved and can change the way you handle the modification altogether.

Next, decide how you would like to approach Countrywide about a modification. You can either approach them directly or go through a loan modification attorney or specialist.

Only take the task on yourself if you are skilled in negotiating, know how to fill out the forms the way they would like, and are sure you fit into the requirements. The majority of people who apply on their own do not succeed because they make some sort of mistake on the application forms or on the hardship letter they are to send in with the application.

There are two choices for outside assistance: Attorneys or workers through the FHA. Both are trained to assist homeowners to get loan modifications, but the help from the FHA is free. While almost anyone would choose the free alternative to a paid service, it's worth noting that in most cases there are waiting periods to get assistance from these professionals. A specialized attorney or company would not have this wait.

The hardship letter is a critical factor in getting countrywide loan modifications. Some homeowners do entirely forget the letter, which is means for instant disqualification. The letter cannot be too drawn out or whiny, but must be very convincing for your case of financial hardship. If you decide to work through a professional service, they will assist you in writing the letter.

Getting countrywide loan modifications takes the same amount of time and effort as any other lender. And if you choose to go about it yourself but are denied, consider a consultation from a professional to see if you fit into the requirements, and if so have them work on it with you.

SOURCE
homeloanmodifications101.com

Five Ways to Rebuild Credit With Credit Cards

If you want to rebuild credit, you can do so with the right credit cards. After applying for a card, you can develop habits that will help increase your score. Once you have a better rating, you'll find more financial opportunities. Here are five ways to rebuild credit and improve your future.

1. Check your score.

You may have a general idea of whether or not you have good credit, but do you know exactly where you stand? Most lenders and banks use a number, known as a credit score, to help them decide whether or not to approve card applications. If you're not sure what your score is, find out now. And if the number does not seem right to you, look to see if there are any errors in your credit report.

2. Apply for the right card.

A portion of your credit rating is based on how many accounts you have open, so applying for a credit card can be a step toward raising your score. As you look for a card, think about what type of credit you currently have. Then find an option that fits your needs. Once you get approved for it, you're ready to take the next step.

3. Make small purchases.

When the credit card arrives in your mailbox, take a planned approach toward using it. You might consider using it to buy a very small item, in the range of $15 to $30. After making the purchase, set aside the money you'll need to pay it off. Then, when the bill arrives, you'll be ready to pay the full balance.

Repeat this process a few times, or until you feel comfortable using the card and paying off the balance right away. In doing so, you'll build solid credit habits. You'll also start to see your credit score rise after a steady flow of on-time payments.


4. Build slowly.

Once you're able to make small, regular purchases, you can start thinking about moving on. You could try a bigger purchase, but before you do, think about how you will pay it back. Then make the purchase, and keep paying your bills on time.

If you're able to, pay more than the minimum amount due each month. Better yet, try to keep the balance on your account at zero by paying the full amount on the bill every time. If you have trouble remembering when the payment is due, set up a reminder system. Mark the date on your calendar or sign up to have email reminders sent to you a few days before the due date. All of these habits will help build your score over time.

5. Keep it under control.

As you increase the activity on your credit card, remember to keep your spending in check. Find out what the limit is on the card, and don't spend more than 30 percent of it. Let's say your limit is $10,000. You'll want to keep the total amount of your purchases under $3,000. By doing this, lenders will see that you use your credit wisely and don't get carried away. In time, your score will rise. When that happens, you'll be able to apply for more types of credit cards.

SOURCE
www.creditcardcity.com

Savings Account - Blessing in Disguise

Money is one such thing which has the power to satisfy the expectations of the people. In other words, this factor defines the life style and the status of the people. But, it is also necessary for the people to churn out maximum benefits from the available options. It is quite a difficult task for the people to limit their expenses and to save a significant amount of money under any circumstances. To solve out this unnecessary issue the banking sector is also striving hard to sprout numerous arms to help the valued customers in varied ways. The most important offer can be referred to the savings accounts which can help the people to save huge amounts of money at ease. In this high tech age, saving money in such a manner can prove to be fruitful in varied ways. However, you must know that saving account and children saving account are different in certain points. Even though both these accounts share certain similarities the crux of the matter is quite different.


Actually, the saving account can help you to reap benefits in the form of interest rates. As a matter of fact, this account refers to that type of account where you can deposit any amount of money any time without any tension. The deposited money can be kept there for long period of time to reap huge benefits. However, that does not mean you cannot withdraw money. In fact, you can take out money any time and that too without any hassles. Now, kids also need financial support due to some reasons or the other. Viewing this necessity, the children saving account has been devised. These accounts would reasonably help your kids to enjoy financial future at ease. Furthermore, the flexibility of withdrawing money any time and anywhere would offer your children the liberty to access any amount of cash any time. Moreover, numerous banks these days are offering lucrative schemes for opening such accounts. Thus, you must search for the best rates so that few restrictions and high gains would welcome you with open arms.

Now, it is quite important to know, what would be the minimum age barrier of the kids to open such children saving account. In this account also the Indian banks are extending helping hands whole heartedly. Almost all the banks don’t have the age limits or the minimum age bar which would restrict the people to get indulged into it. Most importantly, these accounts can be opened even in zero balance. Such attractive accounts actually create a cushion which can offer security and and comfort for our children. Now, in order to lay hands into the best offers the World Wide Web can prove to be the best platform which would offer you the latest updates regarding such accounts offered by banks. Though factors such as terms and conditions, rates of interest and flexible withdrawal etc., would differ among the top notch banks, it would depend upon you as to which product would reap the best benefits and ensure financial security for your children.

Initially, the parents are required to invest money into their children’s saving account so that the mounting cost of their education can be borne without any hassles. Quite interestingly, whenever your kid needs urgent cash he/she can access the required amount instantly and that too without any penalty.