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Andrew Gordon
Andrew Gordon is an editorial contributor for Early To Rise Investor’s Edition. He has 20 years of experience working in infrastructure and environmental projects around the world. When he wasn't traveling, he taught marketing and finance courses at the state university of Maryland.
Mr. Gordon has authored several books for McGraw Hill and other publishing companies on energy markets, global countertrade practices and the hot growth sectors of China and Russia.
He is also a top-rated speaker at financial conferences.
Read Andrew Gordon's previous newsletter articles below:
De-coupling lives again, but I wouldn’t bet the farm on it. Remember when it made the rounds over a year ago? The idea was that even if the U.S. economy caught pneumonia, the rest of the world would at worst get a bad cough. It was argued that Europe and China were much less reliant on the U.S. economy than ever before. And China, with its massive import needs, would also keep economies from Brazil to Australia humming.
Their profits are up. Their write-downs are lower. The government is riding shotgun for them. And the worst is over. The banks are back, right? Goldman Sachs, JP Morgan, Bank of America, Wells Fargo, and even Citigroup all reported profits for the first quarter of 2009. But a closer look under the hood reveals some “creative accounting”…
The earning season is drawing to an end. But even before it began, we already knew that a lot of companies were in big trouble. Their dividends told us.
When investigating companies to invest in, I look at several margins - gross, operating, pre-tax, and net profit margin. But I focus on operating margin. Operating margin is the difference between how much you make and how much you spend to operate the business. If the “making” is at least 15 percent higher than the “spending,” I’m interested.
The PEG ratio compares a stock’s price (as measured by the price-to-earnings ratio or P/E) with its earnings growth. When used correctly, PEG can help you find great companies.
Two things will define 2009 for the U.S. One is the huge $787 billion economic stimulus package featuring “smart grids,” roads, and bridges. The other is the winding down of the war in Iraq.
Auto companies are in horrible shape. Will GM survive? Has Toyota seen its best days? Is Ford’s funk temporary or permanent? You should stay away from them. But why not invest in the next big technology the auto companies will need? All of them have plans to introduce or step up the production of battery-driven cars beginning around 2011-12.
From rags to riches. Redemption. An exciting story. A happy ending. These are things that make good movies, not good stocks.
Were you tempted to buy Bank of America, GM, or GE? Or wannabe giant-killer American Micro Devices that had Intel on the ropes for a few shining months?
Professional investors got taken to the cleaners by the former head of NASDAQ, hedge fund manager and scam artist Bernie Madoff. They should have known better. But before you point fingers at these supposedly sophisticated investors who lost billions to a cheat, ask yourself this: Do you do even the minimum due diligence before you invest in a fund? (I don’t care who told you about it. Trust no one except yourself.)
Your next big investing dilemma is right around the corner. Should you - can you – take advantage of the next big stock market pop?
By Andrew Gordon | Mon, Jun 15, 2009
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