The book, Show the Value of What You Do, is for the owners of small and medium size businesses, managers, and various professionals.
It is written by Patricia Pulliam Phillips and and Jack J. Phillips, the co-founders of the ROI Institute.
The book covers what can b done to show the value of projects, and provide a Return on Investment, no matter what kind of project it is.
Numerous real life examples are included, along with Next Steps at the end of each chapter.
My favorite chapter was Chapter 6: What Is It Worth? Analyze the Data, because it shows that almost any project can be converted to monetary measurements.
Some of you may know Gisele Bundchen as the famous Brazilian supermodel. Some of you may know Gisele as the wife of American football player Tom Brady. Some of you may know her as both.
However, What Gisele should be known for is her intelligence, her beauty, and her business acumen. As a matter of fact, back in 2007 when the U.S. dollar was weak, she refused US dollars for some of her contracts and requested Euros instead.
Back in 2007, I created the Gisele Bündchen Stock Index, which tracked the stocks that Gisele was connected to, primarily as a spokesperson or actress. The article can still be found in our Stockerblog predecessor website.
I tracked her stock index against the Dow Jones Industrial Average since then, and over the years, the Gisele stock index has continued to outperform, which you can see in the chart below. Her index even held up better than the Dow during the 2008 stock market crash.
Data Source: Yahoo! Finance: Historical Prices
Most stock market investors and stock traders today prefer to look at the S&P 500 as opposed to the Dow, as it more reflects the stock market as a whole.
So here is the Gisele index versus the S&P 500.
Data Source: Yahoo! Finance: Historical Prices
The following companies were included in the current index with information regarding Gisele’s connection. Over the years, a couple stocks were dropped due to lack of trading data for non-US companies, and added due to additional celeb endorsements.
LVMH Moët Hennessy Louis Vuitton S.A. (LVMUY) owns several companies that Gisele was the spokesperson for, including Louis Vuitton (a luxury French fashion company), Givenchy ( French retailer of clothing, accessories, perfumes and cosmetics), Guerlain (the oldest perfume house in the world), and Céline (a French ready-to-wear and leather luxury goods brand). Since 2007, the stock has increased by 733%.
She was also the advertising campaign face for Ralph Lauren Corp. (RL). That stock has gone up 27% since 2007.
Gisele was the celebrity endorser for Vivo Participacoes S.A. (VIV), the largest mobile phone service provider in Brazil and in South America. The stock has actually dropped 9% since 2007.
She starred in the comedy, Taxi, in her movie debut, and The Devil Wears Prada , both produced by 20th Century Fox, formerly a division of News Corp. (NWS) at the time the Gisele Index was created. The stock, which was actually involved in a spinoff and skews the return, is down 31% since that time.
For Disney (DIS) she was a celebrity endorser and appeared in the ‘Year of a Million Dreams’ celebration photoshoot. Disney has moved up 241% since 2007.
Gisele was a spokesperson for Procter & Gamble (PG), increased Pantene’s sales in Brazil by 40% during her celebrity endorsement. The stock has had a solid return of 230%.
Finally, she was the spokesperson for the Volkswagon (VLKAY) TV commercials. The stock has had a superior return of 748% since 2007.
Based on the above stocks in the portfolio, the Gisele Index has increased by 215.89%, versus 134.44% for the Dow and 156.79% for the S&P 500.
There is one other stock that Gisele was involved with. She appeared on the Apple (AAPL) ‘Get a Mac’ advertisements to promote the new line of Macintosh’s.
Over the years, I have left Apple out of the index because the return on it was so gargantuan, I thought it would really skew the returns and the charts.
Do you know how much Apple has increased since 2007? The stock has gone up by 5,663%!!!
Here are the charts for the Gisele Index which INCLUDES Apple.
Data Source: Yahoo! Finance: Historical Prices
Data Source: Yahoo! Finance: Historical Prices
By including Apple in the index, the return is boosted to 284%, compared to the 216% without it.
Maybe some of these stocks might look attractive to you at the right price. At some point they should become fashionable, and may continue to outperform.
Prices are beginning of year first trading day close, adjusted for splits, dividends, and capital gains distributions.The Gisele Index is a price-weighted index, similar to the Dow Jones Industrial Average.
The following is a short list of some of the many stocks going ex dividend during the next month.
The following is a short list of some of the many stocks going ex dividend during the next month.
Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.
This technique generally works in bull markets and flat or choppy markets, but during bear markets, you may want to consider avoiding this strategy. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until on or after the ex date.
The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million. Some of the stocks have yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and the annual yield.
Cisco Systems, Inc. (CSCO)
10/4/2022
0.38
3.51%
Intuit Inc. (INTU)
10/6/2022
0.78
0.74%
Foot Locker, Inc. (FL)
10/13/2022
0.40
4.09%
Lowe’s Companies, Inc. (LOW)
10/18/2022
1.05
2.15%
Colgate-Palmolive Company (CL)
10/20/2022
0.47
2.48%
Krispy Kreme, Inc. (DNUT)
10/25/2022
0.035
1.15%
Texas Instruments Incorporated (TXN)
10/28/2022
1.24
3.00%
Bank Of Montreal (BMO)
10/31/2022
1.059
4.46%
The entire list of over 100 ex-dividend stocks will be emailed to all subscribers next week. If you are not a subscriber, you can sign up at the signup box below. Don’t miss out. Remember, it’s free!
Dividend Definitions
Declaration date: the day that the company declares that there is going to be an upcoming dividend.
Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.
Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.
Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.
Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.
Disclosure: Author did not own any of the above at the time the article was written; affiliate links are on this page.
Yesterday, the Dow Jones Industrial Average tanked by around 1200 points, the biggest drop since June 2020. The technology stocks were heavily hit.
This may create a buying opportunity for tech stocks that are heavily shorted.
Do short squeeze stocks actually go up?
On August 22, 2022, I posted an article about meme related short squeeze stocks, and pointed out Bed Bath and Beyond (BBBY) after it had its big run-up. In exactly one week after the article was posted, the stock jumped by more than 43%.
Another stock that was described was Intercept Pharmaceuticals, Inc. (ICPT), which increased by almost 5% in just two days.
The stock with the biggest short ratio (days to cover), at 14.3, was Heron Therapeutics, Inc. (HRTX). It rose by 9.5% in three days.
When you short a stock, it means that your goal is to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares, then buy back those shares at a hopefully lower price so that those shares can be returned. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.
Short sellers can be profitable, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in right away to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any good news can trigger the short squeeze.
Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:
Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.
Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.
Short Percentage Increase ~ This is the percentage increase in in the number of short sellers from the previous month.
The following are some heavily shorted tech stock that may be worth considering.
Company
Symbol
Short % of Float
Short % Change
Short Interest Ratio
Asana, Inc.
ASAN
20.59%
15%
4.3
Avaya Holdings Corp.
AVYA
33.68%
57%
1.5
Ebix, Inc.
EBIX
24.67%
-1%
11.2
iRobot Corporation
IRBT
25.60%
10%
7
The first stock on the list, Asana (ASAN), a San Francisco based work management software company, has over 20% of its float shorted, an increase of 15% over last month. This is considered a daily substantial amount.
The short interest ratio is 4.3, which means that it would take the short sellers more that four days to cover their position, based on recent average volume.
The Massachusetts based robot maker iRobot (IRBT) is even more heavily shorted with in excess of 25% of the float shorted. It will take seven days for the short sellers to cover their positions.
Just keep in mind that just because a stock has good earnings ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.
Disclosure: Author didn’t own any of the above at the time the article was written.
Do you remember what the FAANG stocks are, or were? MAGA is the New FAANG.
by Fred Fuld III
Do you remember what the FAANG stocks are, or were?
Facebook (FB) (META), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google (GOOG) (GOOGL).
Jim Cramer created the FANG acronym back in 2013 for Facebook, Amazon, Netflix, and Google, because he said that these tech stocks were “totally dominant in their markets“.
However, in 2017, he added Apple due to its growth, adding an extra A to the acronym, changing it to FAANG.
Yet, several changes have taken place since then. First, Facebook has changed its name to Meta,along with its symbol, so the letter M has to be used in the acronym.
Second, Netflix is not really a tech stock. It is actually considered an entertainment company in the communications services sector. Plus, many investors no longer consider it a growth stock if you look at the return over the last few years.
Just in the last twelve months, Netflix has dropped over 61%. If you had bought the stock at the beginning of 2018 and held it, you would have barely broken even. If you had bought in in 2019, 2020, or 2021, and held it, you would have a good size loss.
Finally, even though Google changed its name to Alphabet, nobody calls it that, and the company is still keeping the same stock ticker symbols beginning with the letter G.
So that gives us Meta, Amazon, Google, and Apple as the leading tech stocks.
Warren Buffett is the most famous investor in the world. Check out his high yield stocks.
by Fred Fuld III
Warren Buffett, the CEO of Berkshire Hathaway (BRKA) (BRKB), is the most well known investor in the world.
He is also not only one of the wealthiest investors, he is also the seventh wealthiest person in the world, according to Forbes, sporting a net worth of $96.7 billion.
Many investors like to follow in Buffett’s footsteps in terms of investments, in order to match his outstanding returns.
Yet, some of Buffett’s stocks don’t pay dividends, such as Amazon (AMZN), and if you are an income investor, you might want to choose the top dividend paying stocks of Berkshire Hathaway.
At the top of the list is Kraft Heinz (KHC), which pays a dividend of $1.60 per year and currency has a very favorable yield of 4.28%. The stock trades at 13.5 times forward earnings and even sells at a discount to book value with a Price to Book ratio of 0.94.
In second place is U. S. Bancorp (USB), which pays a high yield of 4.01%, with a $1.84 dividend rate. The stock has a very reasonable forward price to earnings ratio of 8.91%.
Next is Chevron (CVX) yields 3.60%, paying out $5.68 per year, payable quarterly. The forward P/E ratio is a solid 9.37.
HP Inc. (HPQ) is another one of Buffett’s holdings paying over 3%, with a yield of 3.55%. The stock trades at an extremely low 6.43 times forward earnings.
Finally, Bank of New York Mellon (BK) has a yield of 3.44%. The forward P/E is a solid 8.66. This is another Berkshire company that sells below book value with a price/book ratio of 0.92.
Maybe some of Buffett’s dividend paying stocks can help make you rich.
