Archive for the ‘Finance’ category

Cruise Stocks : a Risk vs. Reward Analysis

February 19th, 2012

Cruise Stocks : a Risk vs. Reward Analysis PhotoInvestors know that oil prices and terrorism, two things that really can’t be controlled, have a large influence on the stock market. Many investors avoid airline stocks for this reason. They can’t control one of their biggest expenses (fuel) and an act of terrorism can seriously damage the industry.

Why are cruise stocks any better? Rising fuel costs and Hurricane Katrina led to lower stock prices for companies like Carnival Corp. and Royal Caribbean Cruises Ltd. These two cruise lines account for about 75 percent of the cruise industry, worldwide.

When George Allen Smith IV, from Connecticut, vanished while on a Royal Caribbean cruise, the industry received a lot of negative publicity.

Certainly, there are many negatives for cruise stocks, but some investors are bullish. First, there is no direct indication that the vanishing honeymooner from Connecticut has hurt ticket prices. Valuations on these stocks also look good.

Carnival Corp. trades at 16 times estimated 2006 earnings; its historic range is 10 to 30 times earnings. Royal Caribbean trades at 14 times estimated 2006 earnings; its historic range is 5 to 24 times earnings. Growth potential is strong as only 4 percent of Americans have ever taken a cruise.

When considering cruise stocks, remember the risks. A sharp rise in fuel prices or another terrorist attack would likely have a negative impact on cruise stocks. In my opinion the risk outweighs the possible reward as I don’t expect cruise lines to significantly outperform the broader market.

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Understanding the Forex Trading System

February 2nd, 2012

Understanding the Forex Trading System PhotoThe forex trading system involves buying and selling foreign currency. Unlike the stock market there is no fixed market for the forex trading system. A good and effective forex trading system allows the traders to transact easily and provide more chances to increase the earnings.  Forex, foreign exchange market, is a market place where a currency of one country is sold for another country’s currency for some profit. Currencies are traded in pares, like, US Dollar and Japanese Yen or US Dollar and Euro.

Foreign exchange tradings are a great money making opportunity for those who know their way around, for newbie it’s a dream world where they either fall hard, sail well or fly high, its not easy to be a successful trader in the forex trading system., it’s a mix of luck and experience that must work to find success. There are a lot of companies and individuals over the internet and offline willing to help you earn money from the forex trading system but only a handful of these are true and can actually help.

Nowadays most of the calculations are done by easy to use software that need minimum input from the user. You will need help initially, and may take some time for you to get to know the forex trading system. The high degree off leverage can sweep you either way, in the forex trading system one has to assess the risk for self, think of the chance one may have individually or with the help of a broker and/ or signal provider one may have and the amount which one can safely risk without putting yourself into financial trouble. It’s a law of nature, where there’s potential to earn there’ potential to loose so just be prepared before you dive in.

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DONORS IN FOREX TRADING