align="center">
src="http://www.betterinvesting.org/MailResources/images/stockcentralgazette
.gif?utm_source=lyris&utm_campaign=gazette0110&utm_medium=email&utm_term=log
o">
THE SAGE ADVICE EDITION
|
22 January 2010
TAKE A DEEP BREATH . . . AND LET HISTORY REPEAT ITSELF
SC Member Recalls Nicholson's Sage Advice
"My resolution for 2010 is to remember George Nicholson's observation and stay cool when others are losing their heads," SC Member Bob Adams shares in the href="http://www.stockcentral.com/community/tabid/143/view/topic/postid/7677 /forumid/10/tpage/1/Default.aspx#7688?utm_source=lyris&utm_campaign=gazette0
110&utm_medium=email&utm_term=village">Village Green section of the Forum.
"Even though 2009 was a good year for my portfolio, the thought still conjures up a picture of my portfolio not beating the market averages the year before: 2008," he writes. "The reason I bring up 2008 is that I read one of (BI founder) George Nicholson's writings not long ago, where he pointed out that in bear markets, growth stocks go down faster and farther than market averages. Whew! That made me feel a lot better on December 31, 2008.
"He also said growth stocks rise faster and farther than the market average in a bull market. And guess what? My portfolio did much better than the market in 2009. Looking back over the years, I find his admonition true during each recession, and the following bull market."
What's your take? Does reviewing the stock market's past track record help you to remain calm in the midst of a market storm? Sign in and chime in!
On to this week's
headlines . . .
src="http://www.betterinvesting.org/MailResources/images/sbux.gif">
COFFEE COMEBACK?
Are Consumers Warming Up to $4 Brews?
In your reporter's continuing quest to dig beyond the headlines, she noted with great interest the recent reports of a rise in the sales of high-end coffee drinks. It seems the consensus among the news media is that consumers are once again willing to dig deep into their pockets to satiate their desire for that prized CafĂ© Mocha or Cappuccino that had been stifled amid recessionary concerns. What could this revelation mean to Starbucks investors — past, present, and perhaps future? Your diligent reporter tracked down sage investor and SC Member Danny Matthews to find out.
"Our club used to own SBUX; it was always priced to perfection," Danny divulged to your inquiring reporter earlier this week. "When the family, metaphorically speaking, started having their finances come up short, the first thing to go was $4 cups of coffee. I personally am just as well off with a Folgers or Maxwell House cup; some aren't. So much for my twist on drinking habits."
"The things that SBUX has been doing are positive in my eyes," he continued."Closing non-productive sites, slowing growth of stores, including international sites. I believe this was one of those 'buy on the hype and sell on the news' stocks. It has already gone up 300 percent from its March 09 lows of $8 and change to $23 today.
"Current P/E of 44 makes this coffee too strong for me as an investor. I think that this stock will be an all right performer in the future, but in the back of my mind there will always be that thought, will more and more people tire of gulping down an extra $4 a day for a cup of Joe? If you bought one SBUX cup every day for work, say 250 days per annum, that's $1,000 a year. What would other investors do with that extra $1,000 per year?"
Don't leave Danny — or any of your other investing cohorts —
hanging. Just what would you do with an extra $1,000 a year? Chime in
on the href="http://www.stockcentral.com/community/tabid/143/view/topics/forumid/17 7/Default.aspx?utm_source=lyris&utm_campaign=gazette0110&utm_medium=email&ut
m_term=starbucks">SC Starbucks Forum.
BETTER THAN LETTERMAN'S TOP 10
Investor Advisory Service Ranks Among Elite
Speaking of fans, it seems that the href="http://www.iclub.com/products/ias.asp?utm_source=lyris&utm_campaign=ga
zette0110&utm_medium=email&utm_term=ias">Investor Advisory
Service has racked up its share. The
IAS was named to the most elite 2010
Investment Newsletter Honor Roll in the December 2009 issue of the
Hulbert Financial Digest, the highly regarded publication that tracks the performance of U.S. stock and mutual fund newsletters. What's
more, only 12 percent of the newsletters tracked by the Digest
qualified, leading your reporter to declare that sometimes, being in
rare company has its advantages.
As the IAS was reluctant to toot its own horn, your reporter decided to do the honors. It seems that the
Investor Advisory Service is among the just nine equity and mutual fund newsletters included on the 2010 list.
Other highlights of this most esteemed accomplishment:
- To be included on the Honor Roll, newsletters must show
above-average performance, on a risk-adjusted basis, in both up and down
markets over the past decade.
- This is the first year that the IAS has been
eligible for inclusion since Hulbert began tracking the Service in
1998.
- Of the fund and equity newsletters named to the 2010 Investment
Newsletter Honor Roll, the IAS is ranked
third in "Grade in Up Markets" and third in "Gain of Domestic Equity
Portfolios," since June 30, 1998.
Even better, StockCentral subscribers are eligible for a deep discount on
subscriptions to the Investor Advisory Service.
See the href="http://www.stockcentral.com/home/discounts/tabid/173/Default.aspx?utm_ source=lyris&utm_campaign=gazette0110&utm_medium=email&utm_term=discount">St
ockCentral Subscriber Discounts Page for further details.
IT'S A DONE DEAL!
Final Federal Printer Released; Special Pricing Extended!
Your reporter has just received the official nod: ICLUBcentral has released
the FINAL forms for the href="http://www.iclub.com/?utm_source=lyris&utm_campaign=gazette0110&utm_me
dium=email&utm_term=forms">2009 Federal Club Tax Printer software for both Club Accounting 3.2 and myiclub. These forms are not only approved by the IRS, but can be used to prepare and submit your club's Federal tax returns.
Meanwhile, in other developing news, the final forms for supported State returns are still in development, and soon to be released. Until then, your diligent reporter has learned, State Tax Printer software will continue to include only the unofficial DRAFT forms.
Club Accounting 3.2 Tax Printers can be href="http://www.iclub.com/store/tp3.aspx?utm_source=lyris&utm_campaign=gaze
tte0110&utm_medium=email&utm_term=purchased">purchased as either an online download or as a pressed CD. Tax Printers for myiclub will be
accessible under the Taxes tab on your myiclub.com website following href="http://www.iclub.com/store/tponline.aspx?utm_source=lyris&utm_campaign
=gazette0110&utm_medium=email&utm_term=purchase">purchase.
Don't wait! href="http://www.iclub.com?utm_source=lyris&utm_campaign=gazette0110&utm_med
ium=email&utm_term=dontwait">Purchase or download your Club Tax Printers today
— and take advantage of the href="http://www.iclub.com/store/tp3.aspx?utm_source=lyris&utm_campaign=gaze
tte0110&utm_medium=email&utm_term=taxdiscount">discounted price to boot!
TODAY'S ENTIRELY RELEVANT QUOTATION
"You get ideas for investment from other members of the club. You observe the pitfalls in investments as well as the rewards. More astute investors, even though they are well-trained, always get good ideas from their investment club associates and the matters discussed by them."
—
the late George Nicholson, Jr., founder, BetterInvesting, Inc.
|