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Learning From Peter Lynch – Part III




Peter Lynch’s “One Up On Wall Street” talk comprehensively about what kind of stocks one should pick. In general, Peter believes that bigger companies tend to make smaller move and vice versa. Therefore, in spotting what he called a ‘ten bagger’, or stock that has risen ten times in value, it will occur more likely in smaller company with market capitalization of say less than $ 10 Billion.

Peter Lynch also divided companies based on six general categories, which has their own unique characteristics. Based on these six categories, investors will be able to know the reason why they invest in such companies and consequently the return expected on each kind of companies. The six general categories are: slow growers, stalwarts, fast growers, cyclicals, asset plays and turnarounds.

Slow growers – As the name implies, this is the type of companies that grow slowly, barely above the nation’s Gross Domestic Product. Slow grower exists for two reasons. First, they expand rapidly during their early years and had saturated the market or second, they did not make the most of their chances. The book names utilities as slow growers. During the 1950-1970 period however, they are fast growers. As electricity consumption increased (folks installed air conditions, electric heater, refrigerators etc.), power consumption rose and hence their growth rates. That does not happen anymore. Thus, a company inevitably will become a slow grower. A fast grower of the past will be tomorrow’s slow growers. Example of industries in this category include: railroad, aluminum, steel, chemicals, soft drink.

Stalwarts – These are not fast grower and yet they grow faster than the slow grower. Most stalwarts are huge companies with huge production of cash flow. Due to their enormous size, stalwarts won’t move much and Peter always try to take a profit whenever it has run up 30-50% in value in a short period of time. Some stalwarts include: Procter & Gamble, General Electric, Bristol Myers and Kellogg.

Fast Growers – The name says it all. These categories are for companies which has high growth rates. This is where the potential of the ten baggers lie. Other five categories will not give you as much chance of finding your next ten baggers. Fast Growers does not necessarily be in the fast growing industry. It can be growing fast in a slow growth industry. For example: WalMart in the stodgy retail industry, Marriott in the 2% growth hotel business, Anheuser-Busch in a slow growing beer market or Taco Bell in a not-so-fast fast food industry. There is however, plenty of risk in investing in fast growers. The trick is figuring out how much to pay for them and when they will stop growing because eventually, the party comes to an end.

Cyclicals – Not all companies can profit consistently all the time at every occasions. Generally, cyclicals profit rise and fall in regularly predictable fashion, most often moving in tandem with the economy. Businesses that can be considered cyclicals are : airlines, autos, defense companies or even chip industries. For defense companies, it is cyclical not with respect with the economy but rather with the policy of the white house. For chip industries, it is cyclical with the computer upgrade cycle. Timing is everything in cyclicals. Contrary to other categories, Peter avoids cyclicals trading at a low P/E which generally means that the cycle is currently at its peak. While this rule of thumb does not work 100%, it works pretty well to avoid picking cyclical companies that fall even lower.

Turnarounds – These are high risk high reward preposition. Generally, there are specific problems plaguing the company. Further, if the company fails to fix this particular mess, it will probably end up in bankruptcy court. Despite this, there are several appealing reasons for investing in a turnaround. One, of course, is the reward. Once the problem is fixed and solved, the stock price will rise sharply to trade in line with what its peers valuation are. The other beneficial factor of investing in a turnaround is that it is least likely affected by the general market condition. Market goes up, turnaround may stay down and vice versa. A recent example of a turnaround might be involving Altria (MO) in early 2000s. Facing hundreds of billions of lawsuit from smokers, the stock price sank so low that you can buy it at 5 times earnings and 10% dividend yield. Altria also owned a stable Kraft and Miller subsidiary (which was later sold). Turnaround investors will see if the lawsuit problem can be solved, then investing in Altria will be rewarded handsomely. Sure enough, lawsuit problems diminish and its stock price has increased four fold since then. Of course, turnarounds do not always turn around successfully. K-Mart bankruptcy is another past example.

Asset Plays – This is the type of companies that normally own a hidden asset that is not obviously listed on its balance sheet. All assets should be listed on the balance sheet, of course. But Asset play company often times do not list its asset at market value. For example, the value of real estate holding which is depreciated under the current accounting rule. Meanwhile, the land itself most likely will be worth more than its purchase price. Also, company that has huge tax-loss carryforward qualifies as asset plays.

That’s it. All the six categories of stocks according to Peter Lynch. Hope that didn’t put you into deep sleep. As boring as it sounds, this will be a valuable lesson that will make your investing journey a lot more exciting and worthwhile.


Source by Hari Wibowo

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iPhone Application Development – Earn Money Through iPhone App Store




The Internet Revolution! I’m sure you read and heard a lot about it and so I won’t list the myriad ways in which it has changed everything. Professionals capable of working independently and creatively have benefited the most from the ubiquity of the internet.

There are so many ways I which you can showcase your talent to the world (or hawk your wares): you can write a novella, self-publish it over Amazon, and if people like it, you will mint money; you can post a funny video over YouTube (or start you own ‘Channel’), and using nothing more than your skills and ingenuity, find fame and fortune; or you can use your iPhone application development skills, sell your app(s) in the Apple App Store, and buy that yacht you’d always wanted!

Over 2 billion apps are downloaded from the iPhone App Store every year, and as the sales of iPhones continues to rise and more people start using iPhone, the demand for iPhone apps will increase. iPhone apps are constantly making the news and they are one of the prime reasons for the success of iPhones. Experts predicts that 3G smartphones which offer all the facilities of internet will replace PCs and laptops, and apps are the things that make it easier for the users to use their smartphones in lieu of computers: the market for apps is huge, and it will only grow further over time.

Do you have creativity, talent and innovative ideas? There are school students out there who are making serious money developing iPhone apps and selling them using the iPhone app store. Do you think you have the app idea of the decade? You don’t necessarily have to have a scientific and technical mind to gain success at iPhone application development: all you need is an idea and the ability to transform it into reality.

The best thing is that there are a number of free tutorials and SDKs available on the Internet; you can use download them for free and learn how to develop apps for iPhone apps. You might need t invest some time to study how to develop the best apps, and then how to market them over the net, but thereafter your creative ideas will take you far.

Even if you are not good at logic and math and programming is just not for you, you can still take help from professionals and pay iPhone developers to develop an app based on your idea. If your idea is really good, you could convince them to work for royalty from the sales of the app. And if your idea is really good and you are sure that the app based on your idea is going to sell like hot cakes, its best to pay the developer upfront and have complete control over all the profits on your iPhone app!

Once the app is ready, you just need to follow the simple guidelines on the iPhone app development store and list your app on the list of available apps. But there are millions of apps on the iPhone app store, and so you will need to do things to get publicity for your apps: get a website in the name of the app, try and make someone do a piece about in a magazine, keep your fingers crossed, and wait for the world to wake up to the proof of your genius!


Source by Vatsal M

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What Can I Use Bitcoins For?




Practically, almost any product or service that can be bought with dollars or other currencies can also be bought with bitcoins. On the other hand, the high volatility of bitcoins is a huge risk for some people that might want to use this cryptocurrency, but they are afraid about price differences. Even so, the characteristics of bitcoins make them perfect for internet payments:

1. Fast transactions

A bitcoin transaction is processed in 10-15 minutes. In case of a bank transfer, it might take hours or even days for the money to get from one account to the other. Some might say that PayPal or other ewallets are even faster. It is true, but there are other aspects that ewallets can’t give: privacy and smaller commissions.

2. Privacy

When you send bitcoins to a partner over the internet, the transaction will be registered in a blockchain. The list of transactions is public, and it can be verified on specialized websites. Only the identification number, the sum and the time are recorded. There is no way for somebody to find out from where the bitcoins come, and where they go. This is characteristic of bitcoins attracted many people. Well, some of those are interested about it because they can buy illegal goods with those, but the majority of bitcoin users are people that want to buy legal items and services, but which don’t want to disclose their identity. Porn and gambling websites might be immoral, but they are not illegal, so people that want to subscribe for those services can safely pay in bitcoins on the websites that accept this currency, knowing that their reputation will not be affected.

3. Smaller commissions

The average commission is 0.002 BTC for a transaction. It is significantly smaller compared with the PayPal or banking commissions. Moreover, you are not even obliged to pay it. By paying a commission, you “reserve” the computational power of a pool (or at least a part of it), to process your transaction faster. You even have the possibility not to pay the commission. In this case, you might need to wait two or even three days for your transaction to be processed. If you are not in a hurry, this might be the perfect opportunity to make money transactions with zero costs.

Of course, there are also disadvantages for using bitcoins, such as the possibility to lose them. If somebody steals your bitcoins, or if you delete the wallet files, it is impossible to recover those. As long as the bitcoin is not regulated, there is no central organism for arbitrage between divergent parts. In other words, you can’t complain if you lose or you are robbed by your bitcoins, simply because there is nobody to complain to.


Source by Stanculescu Mihai Bogdan

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Things You Should Know About Bitcoin Black




What is Bitcoin Black?

Bitcoin Black is basically the cryptocurrency of the people, by the people for the people. It will be adopted for use as a peer 2 peer payment system which gives the power back to the people.

If we talk about Bitcoin, Bitcoin has failed at this, real value comes from real use of the ecosystem and empowering people. Bitcoin transactions are slow and expensive, and it can be said that Bitcoin is somewhat centralized. Bitcoin takes power of people because it is heavily manipulated and through cycles that discourage participants from cryptocurrency in general.

People buy bitcoin to get rich, not to be involved in the ecosystem. The one percent elite takes advantage of bitcoin and creates discouragement, strategically increasing the price and attracting entry for the dream of wealth and dumping coins for their benefit. In fear of adoption. Bitcoin is completely controlled, pumped and manipulated at will, for many different reasons.

Bitcoin Black is focusing on solving these problems as the coin is a cryptocurrency with a fair distribution Airdropped to 1 Million wallets prior to IEO which all funds will go to community groups voted by the community to move the project forward with focus on fair distribution, mass adoption, usability, education, ease of access, simplicity and community.

The goal is to make it a real decentralized autonomous network giving back power to the people. He does not belong to a group, but belongs to many branches of the community.

Distribution of Coins

Bitcoin Black is aim to have airdrop to at least 1 million wallets initially with not more than 0.5% of supply owned by 1 founding member making it truly decentralized cryptocurrency.

The project have a pre-sale of 2.5% of total supply which is almost 900 Million coins.

If we take a take a look at the IEO, 7.2 billion IEO coins will be allocated to several community foundations that will help the community move the project forward in the future.

Counterpart funds for manipulation (around 5%). Part used for the stability control fund to eliminate the possibility of early manipulation at low volume and maintain currency stability.

Finally, the rewards for introducing the application will be 14.4 billion coins.

Introduction of 30 million members with an increase in the rate of new users. A method of bringing the coin into every schoolyard / university / workplace and community.

Total Supply

A maximum supply is 36 billion coins.


3.6 billion coins to be claimed by members who help share Airdrop.

Simple social sharing platform in one click. Share a social message that provides an introduction to encrypted video and the app download link that will allow your friends to download it. Currently the platform is active and functioning well.


The best innovation is the Fee free transactions. You can send bitcoin black to anyone free of charge. The transactions are Instant and you can send money as easily as sending an message.

The wallets are easily accessible and very simple to use.


Bitcoin black have a fair mass distributed currency with supply spread widely that it will create less volatility by synchronized pumps and dumps and lead to a more stable price. Bitcoin black is going to be the next bitcoin. You can register for the airdrop by clicking here. I wish someone back in 2008 would have included me on the Bitcoin airdrop. Bitcoin Black will be life changing and we want to tell this to as many as possible.


Source by Mark West

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