Archive for the ‘Uncategorized’ Category

Gross Margin as Business Efficiency Indicator

Gross margin is one of several profit margin measures. It is the amount of contribution to the business after paying for the costs that it incurs for producing its products and/or services.
Basically,
Gross Margin = (Revenue – Cost of Goods Sold)/Revenue
Cost of goods sold includes variable and fixed costs directly linked to the product, such as [...]

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Increase in interest rates affect stock price?

Basically the stock market tends to decline on news of rate increases.
When a country raises the interest rate for its currency, we would expect that currency to gain in value relative to other currencies. This is because an increase in a currency’s interest rate makes it more valuable to hold as an investment, due to [...]

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What is Price Earnings Ratio (PER)

The Price Earnings Ratio (PER) is a measure uses in valuing both the stock market as a whole and individual stocks.
PER is calculated as the ratio of a company’s share price to its earnings per-share. The value is the same whether the calculation is done for the whole company or on a per-share basis.
PER = [...]

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Earnings Per Share – EPS

Earnings per Share allows us to compare different companies’ power to make money. It is the portion of a company’s profit allocated to each outstanding share of common stock. A positive trend of EPS shows that the company is finding more ways to make more money.
Earnings per Share can be calculated by subtracting the dividends [...]

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Outstanding Shares

Outstanding shares is used to calculate many metrics, including market capitalization and earnings per share (EPS). A corporation’s market capitalization is figured by multiplying its outstanding shares by the market price of one share.
Shares that is held by the public and can be freely bought and sold by public investors are called the [...]

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What is stock

A stock or share is not a symbol on a computer screen or newspaper. Stock is ownership in a company. This means that a private company decided to allow the public to be part owners of the firm and sold shares of ownership through a stock offering. If a company has one million shares of [...]

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Learn Stock Investing through Modeling Warren Buffett

Warrent Buffett is the person I admire and respect. Not only he is my learning model in investment, but also my learning model for charity work. He donated billions of dollars to the charity so far!
In case you never heard about Warrent Buffett, following is an article that is related to this richest man in [...]

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Avoid Timing the Market, use Dollar cost Averaging strategy

It is extremely difficult to time the market.
Any financial market in the world experiences both bad and good times. Never expect the market will go up forever and go down forever. It is impossible. Never believe in predictions
Instead of spending the time to predict when the bottom of the market will take place [...]

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Looking for tips on how to salvage investment

Many people have lost much of their hard earned money in this financial crisis.
More and more people are looking for tips and guidance in overcoming the current financial crisis. Many are searching for information on the timing of the end of this bear market and figure out what to do with their money. The true [...]

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Financial Freedom contribute to Option for retirement

Once I asked one of my friends what is his purpose for achieving financial freedom. He told me that he want to have the option for retirement.
That is it!
Like many of my friends, I like the job I am working now. I like the colleagues and friends in my company. Even though one day I [...]

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