My Free Online Business Management Center

Discriminatory Business Support and Stock Management in the Public Interest

2008-11-02T10:48:00.002+05:30

Most stock market players would like to forget October 2008. The month has certainly ended on a sad note for me. I deeply regret the news I found at the following link:

http://www.ft.com/cms/s/0/7b516942-a91d-11dd-a19a-000077b07658.html

Though energy from arable land is a matter of some debate, Brazil is dynamic proof of the benefits of bio-fuels.

The NYSE: VSE symbol is not as prominent as some of the most infamous ones from Wall Street, but VeraSun Energy is a truly spectacular company. The national and world benefits of energy security from the land cannot be over-stated. The Bush Presidency will be remembered in bipartisan manner for bending over backwards to bail-out prominent banks. It is a sad commentary of our times that a company such as VeraSun Energy has had to fend for itself when in distress.

There is no merit in idle speculation. Each of us can support stocks that represent worthwhile activities. We can also use our democratic rights to support corporations that represent our economic interests. Please help to bail-out VeraSun Energy. This company is one of a rare breed that helps us move away from exclusive and crippling dependencies on crude oil.

I have no financial interests in VeraSun Energy.

Dubai Dynasty Lessons for the Business Management and Stock Exchange Worlds

2008-11-01T21:44:00.003+05:30

Dubai is part of the Middle East, but stands apart from the rest of the region. The Dubai Dynasty has been in power for over 150 years. However, all accounts of the city-state and its surroundings are astounding in their celebrations of modernity.

The Dubai Financial Center is one of the most dynamic stock exchanges in the world. It is far from being the oldest, but the business culture of the Dubai Dynasty is an indelible part of history. How does the Dubai Dynasty manage such a becoming blend of the old and the new? I found an answer from oceans away. Here is a link to the secret of the business success of the Dubai Dynasty:

http://discussionleader.hbsp.com/kanter/2008/10/a-financial-turnaround-require.html?cm_mmc=npv-_-LISTSERV-_-OCT_2008-_-ORGDEV

The Dubai Dynasty is resolute in its practice of Islam. However, its approach to business is entirely secular. Islamic banking is very much in evidence throughout the sandy lands governed by the Dubai Dynasty. Yet there is no facet of cutting-edge business management technology that is not diligently followed in the governance of the Dubai Dynasty.

You can choose between a history of the Dubai Dynasty and the hallowed portals of the Harvard Business School. Your conclusions about the role of culture in managing business and picking stocks will be the same whichever route you take.

The Interactive Marketing Route to Business Recovery and Stock Price Management

2008-11-01T06:36:00.003+05:30

Wall Street Main Street trade-offs are popular pivots of present public pre-occupations. That is why not everyone will celebrate the new trend in lofty financial circles reported below:

http://www.bloomberg.com/apps/news?pid=20601087&sid=apYQpIAkblUc&refer=home

There are rays of sunshine between the dark clouds of discriminatory Washington largess for erring banks. Certainly flocks of folk threatened with foreclosures will welcome opportunities to remedy their finances. There is no word about rewards for citizens who have met loan deadlines, but there is evidence that the era of rapacious consumer banking is halted if not stopped for all time.

A business crisis makes most people inward-looking. It is natural to attend to the wolf at your door before trying to protect others. However, professionally-run enterprises will put pressing customer needs first. That is why I commend administrative pressures and executive actions to strengthen loan counseling procedures by discredited financial institutions. It makes sound business sense to look after the welfare of your customers. It is a durable if subtle axis on which to pick stocks for investment during the coming week. I predict improved times for the banks referred to in the link provided in this post. You can also make picks from other sectors and industries on the basis of Interactive Marketing improvements by corporations in distress.

Pick a Top Stock Wardrobe

2008-10-31T09:32:00.002+05:30

The Apparel/Accessories Industry can be a safe harbor during a recession. Children, sports people, and changing seasons drive elements of demand that are not discretionary. This is not to say that the entire industry enjoys uniform demand trends. It is a matter of picking stocks with clear differentiation. Take American Apparel Incorporated (AMEX: APP) for example. The company brand grows from strength to strength. It represents excellent value for young people who want to look fashionable on limited budgets. Branding goes beyond the physical attributes of clothing: the company takes fairly clear and strong positions on matters of social importance. Distribution is another key strength for this stock. The brand is available through conventional outlets and online as well. The company is focused on the home market of North America, but services demands from other continents with aplomb.

October 2008 is set to close with the stock price at less than a third of the 52-week high. The Price to Earnings Ratio is below 20. I have no financial interests in the matter, and recommend this stock for the coming week without qualification.

How to Manage Your Stock Portfolio in Uncertain Business Times

2008-10-30T08:20:00.002+05:30

Customer engagement is a panacea for the economic issues of today. This is a key difference between business management and academic economics. A healthy Quick Ratio makes nonsense of every credit crunch. Recession is history provided that you are adroit in giving customers what they want.

Consider Kraft Food Incorporated. The Forward Price to Earnings Ratio is well below 20. The Yield is 4.07. The Beta is just 0.5. The Payout Ratio has topped 65% over the past four quarters. Sales have grown by more than a fifth during the Most Recent Quarter. How can such stellar business performance be possible in a deadly mix of inflation and recession?

Take a look at the following link for an answer:

http://www.kraftfoods.com/kf/Pages/home.aspx

Here is a case for a whole new approach to the stock market. This is what the Private Equity guys have done for decades. Appraise the value of a stock on the basis of what it delivers for customers. Buttress the numbers and ratios with specifics of Interactive Marketing transactions. You will win no matter what the Fed says and does.

Separate Grain Stock from Chaff with a Business Management Filter

2008-10-29T08:33:00.002+05:30

Stock exchanges around the world smile today. Rallies are sharp. Doubts persist about whether stock price gains will endure. It is time to use business management concepts to make top stock picks.

Time is a primary factor in stock investment today. We simply do not know enough to make safe trading decisions as yet. Risks of short-term losses are as likely as any projected gains. However, the 12-month outlook is fairly certain. Basic Materials, and some industries of other sectors are set to rise as new governments take positions in Washington and in India as well. Brazil, China, Australia, and Russia are other major financial centers with stable and predictable futures.

All stocks are not equal. Business management separates corporations with excellent prospects for success from others that are over-leveraged. Unfortunately, retail investors in a stock market are not privy to business plans and their sensitivity analyses. However, we can review track records of past business performance and management statements as well. Independent retail audits of brand shares are also invaluable inputs to stock investment success.

Buy selected stocks before November 2008. You can look forward to handsome gains within the next 12 months. Post below or write to me to know more.

Clean Energy Lights Through The Stock Market Haze

2008-10-27T06:38:00.002+05:30

The Sun leads a nearly endless array of clean energy sources. The business implications are as impressive as the environmental ones. Technology is a powerful driver, because not everyone can make thin solar panels. It calls for business management skills as well, for there are many alternatives to harvest the world market potential for new energy forms.

Hydrogen fuel cells and clean coal are other abundant new sources of energy. Neither has entered the stock market arena as yet, but they could do so soon. Wind energy stocks are available, but geo-thermal and tidal energy forms await entrepreneurs. Brazil leads the world in producing fuels from crops, but competition for arable land will separate stock market winners from others in this domain.

Politics has much to do with the clean energy business. The U.S. divides OPEC in to two opposed camps. Fluctuations in crude oil prices affect investments in the nascent clean energy business. It is a heady brew that confuses the stock market investment opportunity. However, no portfolio should be without clean energy stock investments. Right picks can drive through the market uncertainties decisively and profitably.

Do you have clean energy stocks in your portfolio? I would love to swap ideas and leads. Post below or write to drsbanerji@gmail.com

Green Business Lights for Forestry and Wood Products Industry Stocks

2008-10-25T06:52:00.002+05:30

This part of the economy has lost 60% of its market capitalization during the past 12 months. We cannot do without the Forestry and Wood Products Industry. That is why October 2008 is such an opportune moment in stock exchange history to buy in to the natural wealth of earth.

Stock options are limited. Not many organizations that own large tracts of forests are listed in any stock market. However, it remains difficult to make top stock picks since environmental and social accounting is not mandatory. Usual financial reports are not adequate to appraise the business value of a corporation involved in Forestry and Wood Products. You have to get your boots on and finger-nails dirty. Does the company treat its effluent. Is the re-planting program robust? Are local communities equal partners in the value-addition?

Sustainability is a new and perhaps somewhat distasteful concept for some stock market veterans. However, people who work the earth have always lived by this credo. Green business comes to the fore in the Forestry and Wood Products Industry. Take your stock picks before the calendar turns to November 2008.

I have no stocks or financial interests in the matter.

Could a Boeing Strike Hit Your Business and Stocks?

2008-10-24T08:39:00.002+05:30

No one gains from a strike, except for a trade union. The populist image of vicarious bosses is exaggerated. Strikes have taken place in corporations with the most enlightened of management teams and owners. Here is a link to a matter with which I have had multiple personal experiences:

http://ia.rediff.com/news/jan/18datta.htm

You can never take labor for granted. Neither should Unions hold exclusive sway over opinion-forming by employees. There is no alternative to building a continual process of dialog and grievance-redress. Executives should not shy away from public accountability for their privileges.

A recession is a double-whammy in terms of a strike. The aviation industry is a case in point. Steep falls in demand mark 2008 for this significant part of the world economy. Aircraft manufacturers and airline companies have few choices other than to hand-out pink slips. Executives are caught in clefts of cash crunches and bludgeoning labor costs.

It could happen to you. A Boeing strike is a universal threat for any business, big or small, wherever it may be located. The Human Relations function has tried to distance itself from the heat and dust of a strike, by forming Industrial Relations lackeys under its tutelage. Do not fall for this subterfuge if you are a business owner or a CEO, for a Boeing strike could hit you this Monday morning.

Post below or write to me for an assessment of your labor relations. Take concrete steps starting now to carry your employees through the uncertainty of a world in economic turmoil.

The New Business Management and Stock Investment Models of Amazon.com

2008-10-23T07:20:00.002+05:30

Stock prices make for a desolate autumn 2008. That is in general terms. There are stocks which become ever better buys as prices head South.

Take Amazon.com for example. The October 2008 has fallen below half of the 52-week high. The Beta is 2.27. The management has cut guidance. What should stock investors do? Here are my five top reasons to recommend that you buy Amazon.com

1. The web-site is a winner. Take a look for yourself. You will find it hard to stop browsing. It is a Web 2.0 model with plenty of opportunities to express opinions. You could hardly ask for a better place to browse through books and shop for music.

2. The brand is entrenched rock-solid. Ask folks of all kinds. Amazon.com has an amazing top-of-the-mind recall percentage. It is the web site of choice for browsers all over the world. The share in the United States is remarkable.

3. The cost-structure of Amazon.com beats the book-shop format. The entire Retail (Specialty) Industry has suffered drastic Gross Margin reductions. However, Amazon.com has held on to its five-year record for this vital parameter through the looming recession. No one else is as protected against a negative economic cycle.

4. Amazon.com remains best-poised to leverage a demand upturn. It can add a nearly endless array of products and services to its present platter of books and music. It could be something as mundane as flowers, or a high-value item such as jewellery and handicrafts. I wish the management would diversify sidewards faster though.

5. Liquidity is not an issue with Amazon.com. The Quick Ratio stays below 1. Long-term Debt is less than a fifth of Equity. The Interest Coverage is over 70. Reputed institutions hold most of the stock. You can hardly do better.

Amazon.com is an example, but it is not unique. You can use your disposable cash to build a stock portfolio of extraordinary value during the current market phase. Start right away before others begin to push stock prices northwards.

Assisted Living as a Business Management Response to Stock Market Depression

2008-10-21T06:22:00.005+05:30

I feel sorry for my Prime Minister. Dr. Manmohan Singh functioned brilliantly under Mr. Narasimha Rao to pull India from the brink of national bankruptcy. He pledged our country's gold reserves to raise cash. He encouraged all stakeholders to revive economic growth. Diligent financial management was his Mantra. All this was many years ago.

Narasimha Rao is no more. Dr. Manmohan Singh is now at the helm of affairs. Has leadership weighed too heavily on his shoulders? He conceded yesterday that India must prepare for a reduction in the pace of economic growth. This is the difference between economics and business management. You can look for reasons to justify hopelessness, or you can deploy all resources to further aims.

Corrupt links between regulators and Wall Street have brought the United States to its financial knees. India is large and blessed. It need not hang-on to the skirts of this fading power as Europe so loves to do. That should not prevent anyone from taking leaves from the business management Mecca of the world.

Talk of recession in the United States is exaggerated and futile as well. It is more like the eclipse of dinosaurs on earth, even as new phyla took to the land and the sky. There are large swathes of business in the United States that flourish even as I write this post. Economists may not have heard of them, but then that may not be a bad thing.

Assisted Living is a thriving business in the United States. It is just what the doctor ordered for an ageing world. It is a better route to realty development than vacuous shopping malls. It is feasible to train most unemployed people, and to put them to work. Pricing and margins are sensitive issues, but that is why we need professional business managers.

Use Assisted Living to defeat the pessimism of stock market economists. Start an Assisted Living business. Invest in stocks of companies that are in this line of work. This is just one example. There are plenty of cash-generating opportunities if you know where to look. Put aside the newspapers and switch off TV as starts. Post below or write to me at drsbanerji@gmail.com instead.

Does Hocus-Pocus Business Management Threaten Your Stock Investment?

2008-10-20T03:21:00.004+05:30

Most stock prices have declined of late. Such an obvious statement hides some extraordinary business performance. The most vocal executives are not necessarily highly skilled. Many self-effacing and low-profile ones produce better cash flows than their celebrity cousins.

It is true that nearly all macro-economic indicators are depressing. However, our concerns are with individual stocks, unless someone is a Head of State. That is why we can continue to garner wealth in the midst of a hostile environment. Steering clear of vagueness and irrelevance is the need of the hour. Focus on numbers rather than on qualitative assertions about what others should do. Here are my five favorite quantitative indicators to top stock picks during the week starting today:

1. The Forward Price to Earnings Ratio, backed by a consistent track record of meeting guidance,

2. Improvements in valid customer satisfaction survey findings.

3. Unequivocal guarantees about working capital valuations.

4. Gross Margins that nudge ever upwards.

5. Restructured operating costs, with deep cuts in the fixed ones.

Do not accept excuses about these inputs not being in the public domain. Insist on verified answers to these five questions. Take your cash away from people who hide crucial facts under mounds of jargon. I am available to help with your stock picks and business development as well.

Microarrays for Business Success and Top Stock Picks

2008-10-19T08:16:00.003+05:30

Microarrays divide the world in to three parts. The first does not know what microarrays are. The second does, but lacks business management and stock investing skills. The third appreciates both microarrays and business. This is a Mantra for stock market success. Microarrays are not alone. All business involves technology. Technology is academic science as long as it does not serve society by generating wealth. A technological route can take investors above market turbulence.

Microarrays have already changed the face of health care. Diagnostic facilities are entirely different from the days when your physician was in medical school. Microarrays are vital in the fight against biological terrorism, and in the cause of food safety. Microarrays have decades of dividends in their folds because the business applications are nearly without limit. Human ignorance about the business potentials of microarrays is a colossal pity. It is also an immediate advantage for the discerning stock investor in the turbulence of Autumn 2008.

The pharmaceutical industry keeps Gross Margins of microarrays under tight wraps. Diagnostic laboratories are happy to follow suit. It is a mug's game for microarray costing is most sensitive to consumption volumes. Honest and capable regulators can change all that, but what is the use of wishful thinking? The action point is to use microarrays to start dynamic new enterprises. It is also a God-send opportunity for stock investment during the coming week.

Post below or write to me at drsbanerji@gmail.com to know more.

Tight-Credit Business Management Drives Stock Value

2008-10-18T09:07:00.003+05:30

Equity makes executives complacent. A cash-crunch is better than any crash diet. Stocks gain while managers writhe in pain. Put the world liquidity crisis to work on your investment portfolio. Buy stocks of corporations that are conservative in leverage, which have Gross Margins many multiples of interest costs, which sell on rigid credit terms, and which excel in just-in-time inventories.

My personal learning curve with liquidity crises has been hard indeed. I had to take lessons in 'Finance for Non-Finance Executives' because I once used liberal credit to generate market and brand shares. I recoil with horror at memories of starting each working day juggling cash flows with my colleagues. However, that set of learning has never left my side. I now view all credit lines with suspicion. I support companies that are mean with cash, even though they are not lean with respect to this resource by any means.

Write to me at drsbanerji@gmail.com or post below if you would like top stock picks based on excellence in cash-flow management.

Business Management and Stock Investment Lessons from google earnings

2008-10-17T05:42:00.002+05:30

It is not simply a matter of good news in the midst of a recession gloom. Google earnings show a path through the uncertainty of the world economy. Build on e-commerce if you are a small business owner. Invest in innovative marketers if you are a stock exchange type.

Google introduces new products and features nearly every quarter. The company listens to all its customer groups, from the British Queen to isolated communities in remote areas, The corporation remains alert and nimble, its gargantuan success notwithstanding.

A vexed matter is that not all e-commerce ventures succeed. There are countless web sites that few people visit, for every one that is an enduring success. My tentative conclusion is that the second word is more important than the first one in the term 'Internet Marketing'.

It may be that an outward-looking perspective can produce better business performance. Put internal objectives on back-burners. Provide whatever target customers want, as long as it is legal, ethical, and profitable.

Flexibility seems to be another market imperative. Technology certainly evolves. Competitor-moves cannot be controlled. Customers are notoriously fickle. The water-logic of de Bono could have more than just creativity benefits.

I have decided to spend some time reflecting on google earnings this week-end. It may help my business and stock investment advice as well.

Budget Your Business Through the Stock Market Haze

2008-10-16T09:24:00.004+05:30

The stock market seems to be awfully confused. It is up one day only to crash the next. No country seems to be beyond the mayhem. Retail stock investors and small business people are pitiful victims. Wall Street has Washington. Regulators all over the world are at the beck and calls of big business. All main street gets are mouthfuls of nice-sounding words.

You are not alone. It does not matter if you are a novice at stock market trading. Your tiny business can grow regardless of what the TV anchors may say about the economy as a whole. How can you beat the general trend? Stay with this page to climb business rankings. Find ideas to take your business to a whole new plane. Remember that you can always post below or send me an email at drsbanerji@gmail.com for custom advice and help.

Let us take a first step today. Start using a Budget to steer course through stormy market waters. Do you have a Budget or know how to make one? Share your planning process with others, and take a look at mine as well. A budget process can be fun and useful at the same time.

The first part of a budget is to scan the environment. You need to take stock of your customers and where your business is headed. You have to project what could happen in future, and prepare for it from now. The future is never certain, hence a budget has to deal with ranges rather than with single and definitive numbers.

Environment scanning involves consultations with domain experts. These people are often academicians, working on technologies that could succeed tomorrow. Researchers, teachers, and authorities in the fields that affect your business are best placed when it comes to making educated guesses about everything that the future holds.

A budget is also a great place to state objectives. These are not vague desiires, but wholesome descriptions of what a business should achieve. Budget objectives should cover market shares and profitability targets as well. Objectives are not limited to crass commercial considerations. Objectives about image and social responsibilities are just as important as those for growth and profits.

Finally, a profit and loss statement is not enough for a budget. You need assumptions, activity targets, and contingency plans if something goes wrong. A budget serves as a life-raft when a business encounters choppy waters as we find in the stock market of today.

I would love to make a budget with you, and learn how you budget at the same time. Let's get started.

A Day for Reflection

2008-10-15T05:46:00.002+05:30

I dedicate today to my treasured memories of Heinz Imhof. I am fortunate to have worked under his able leadership. Many of the ideas put forward in this web log have roots in my personal experiences of working with Heinz Imhof. He was able to steer complex global operations through difficult times. He laid the foundations for wealth from which I continue to benefit to this day. I salute his memory, and will strive to express the principles for which he stood.

A Healthy and Nutritious Stock to Keep Your Finances Well

2008-10-13T17:45:00.003+05:30

I must confess to personal bias in recommending immediate investment in Nestle stocks. I use many brands of this company, and respect its methods of governance. However, my recommendation does have five professional supports.

Financial performance is the first reason to pick Nestle stocks. The holding company has an excellent model of simultaneously loose and tight controls on its subsidiaries throughout the world. All Nestle companies are profitable, managed conservatively, and have established enviable records of flying above market turbulence. You can look forward to dividends as reliably as the maturity of a bond, by holding Nestle stock.

Trust is my second reason. It is a hallmark of Nestle, and permeates the organization from the CEO down to the very limits of the organization. Nestle has detailed guidelines for senior executives, observes zero-tolerance for malfeasance, and does not wait for regulators to find defects in batches of production.

I love brands. They are the most stable of assets, though most investors do not include them in their analyses. Nestle has a famous stable of brands. Almost all new Nestle launches are successful. Nestle brand ranks are fortresses. Nestle is dynamic and evolves its brands to keep pace with new customer preferences.

Clever clustering is part of the Nestle brand Mantra. The company is able to address the needs of a diverse set of urban demographic groups. It relates closely to varied cultures from its idyllic Swiss base. Segmentation success makes Nestle stocks calm ports in all kinds of financial storms.

Finally, Nestle stock investments are possible in all key country exchanges. You can invest in the Group company at Zurich, buy an ADR in the United States, or take ownership of subsidiaries in the country of your choice.

I hold no Nestle stocks and have no financial links to the company. This should set your mind at rest about any hidden agenda I may have in recommending the stock to you.

I have other stocks like Nestle to suggest for your portfolio. Post below or write to me at drsbanerji@gmail.com to get top picks.

Pole position on stock market columbus day

2008-10-13T08:04:00.001+05:30

Columbus polarizes the Americas. Columbus day is observed depending upon which calendar system you use. Most of us know it as October 12. Years like 2008 are pesky for they try and steal well-deserved holidays from our overworked weeks. Take a break today (13th) to put such calendars in their places, but stock market columbus day can cease no world trading. Shanghai, Mumbai, and Dubai are open, so you can afford to lose no profitable trades.

Chavez in Venezuela likes Columbus as much as he does Bush. Caracas crowds remember Columbus without affection. They even celebrate the destruction of one of his memorials. Perhaps Columbus is a hero for you. You may harbor some doubts about his pillaging ways but decide not to rock any boat of stability in your life. Either way, do not ignore stock market Columbus day for it is certainly a watershed for your financial investments.

Stock market columbus day is a symbol of the battles between Wall Street and main street. Perhaps all stock trading is that way. You either abrogate indigenous resources for selfish ends, or join a reservation for the impoverished. I hope you are not the superstitious type, for you can afford no stock trading break this 13th. There will be no better day soon for you to shed all stocks on wrong sides of the bail-out divide. Use this Mantra throughout the stock trading week that has started-in the influential Far East-if not as yet in your town. It will soon be town for the bulls to stir, but this week is strictly to shore-up King Cash. Jump ship on stock market columbus day, or writhe in regret all week.

Post below or write to me at drsbanerji@gmail.com for ER attention to your stock portfolio.

Economic Terrorism and Your Stocks

2008-10-11T23:23:00.002+05:30

Economic terrorism can work by stealth. Powerful states use fancy terminology to disguise their economic terrorism moves. Thus, nations of white Caucasians use the term ‘sanctions’ to justify the hardships to which they subject peoples of countries they do not like. The Russians do not bother with words, and simply shut off heating gas for pesky neighbors at the height of winter.

The United States has been paranoid about economic terrorism in the past. The Japanese were stopped from buying sick steel mills. Even a President could not convince the nation that there was nothing suspicious about letting the cunning folk of Dubai run U.S. ports. Times have changed.

IBM made no attempts to hide its surrender of a laptop business to the Chinese. Citibank has had no hesitation in using an executive of exotic origin to borrow on bended knees from oil-rich sovereign funds. Close bonds between the White House and princely usurpers of power in the Middle East have kept most oil money from threatening democratic wealth creation.

There have always been links between funds and ideologies. We are fortunate that there have been no confrontations between block stock owners and the establishment until now. Sheikhs who own large tracts of London have left 10 Downing Street well alone. The Jews are at the other extreme. Their collective influence is so blatant and pervasive that we dare not question it. We need not either, for Israel threatens no one’s stock portfolio.

Russia has begun to offer possible leads to future economic terrorism all entities that would like to threaten the present uni-polar world order dispensation. The implications of Iceland seeking Moscow’s help to stave off economic disaster have earth-shaking implications. No lame-duck President has bothered to challenge this disturbing development. What if our enemies become our masters through stock market doors?

Economic terrorism is a real and present threat to your stock portfolio. It is high time to shed all stocks with large holdings of distressed financial institutions. Industries such as Aerospace & Defense deserve more of our funds, because sovereign wealth funds cannot get controls of them. The same strategy applies to all corporations with roles in homeland security.

Is your stock portfolio free of economic terrorism threats? Post below or write to me at drsbanerji@gmail.com if you need help to improve your financial security.

A Business Management Prescription for GM Stock Prices

2008-10-10T19:23:00.002+05:30

GM stock prices of late have given nightmares to investors everywhere. The corporation has lost 90% of its peak market capitalization during the last 12 months. News wires furiously deny talk of bankruptcy. Company executives are focused on getting their shares of the bail-out plan from Washington. They are way off-mark in my opinion.

GM stock prices could happen to anyone. Companies all over the world have faced similar situations in the past. Consider the following case:

http://www.domain-b.com/companies/companies_r/rallis_india/20040207_agrochemicals.html

I must confess to bias in selecting this example. I have worked under the turn-around genius in this case, albeit for different employers. Dr. Sohoni is my business Guru. I continue to watch his adroit moves in wonder. More to the point, as you may be concerned, is that the 'Sohoni-approach' can resuscitate GM stock prices.

Here is my Mantra for the imbroglio of GM stock prices:

1. Sell marginally-productive assets to corporations that can use them better.

2. Hive-off high value technology development assets in to autonomous entities, free of inherited cost structures.

3. Ignore traditions and conventions in cutting operating costs to the bone.

4. Stop cash-loss operations yesterday.

5. Communicate like Winston Churchill, inspiring people to give their blood and other vital fluids for a greater cause.

That is all there is to it. Post below or write to me at drsbanerji@gmail.com if your business threatens to go the way of GM stock prices.

The Prime Stock Investment Opportunity of Alternative Energy

2008-10-09T19:20:00.001+05:30

The Sun, wind, tides, hydrogen, hardy crops, microbes, and natural heat under the surface of the earth, support life without limits. Mother Earth provides all our energy needs. Crude oil and nuclear energy, after which we so hanker, are far from the only sources for electricity, locomotion, and related needs of modern living.

Alternative Energy is also an effective answer to meeting the stock exchange challenge of today. The United States, Canada, and Brazil lead the world in creating new wealth through Alternative Energy stocks. Traditional financial reporting does poor justice to the values of some corporations in Alternative Energy. True values of technologies and land have never been easy to establish. Stock investors need new methods to make top picks. Evidence Based Management, Delfi Analysis, and Balanced Scorecards are three appropriate business management techniques for judicious stock investments in Alternative Energy.

Exploit the current stock market and financial crisis to make hay from Alternative Energy stocks. Post below or write to me at drsbanerji@gmail.com to take this idea further.

How You Can Have a Cool Hand at the Tiller

2008-10-08T18:15:00.003+05:30

I love the expression. It is succinct for the stormy seas of today's financial world. Who knows whether the Feds have coordinated their actions across national boundaries, or simply running around like headless chickens? I would not like to take a chance with your stock portfolio. This is why I recommend the following actions for the rest of this trading week:

1. Focus on your cash flow. Cut back on expenses wherever you can. Adopt a Kaizen approach, valuing every penny-or paisa, if you will. Look for additional revenue lines. I have made a suggestion yesterday, and can drum up more ideas just for you. Sell non-productive assets and put the money in bonds of conservative government bodies. Build inventories of essential food, medical, and energy supplies at advantageous prices. Put all big-ticket expenditure on hold, and that includes discretionary spending on vacations. Build a cash corpus to deal with unforeseen exigencies.

2. Buy valuable stocks if you have money left over after step one above. Look for corporations with brands, technologies, realty, and reliable track records of paying dividends quarter after quarter. Post below or write to me at drsbanerji@gmail.com if you need help to find such stocks.

A cool hand at the tiller will not attempt too much at once. It will not waffle either. Above all, you have to Walk the Talk with an honest heart.

Meals on Wheels as a New Business Idea

2008-10-07T19:09:00.002+05:30

Permissions from local regulators are nuisances, but meals on wheels are enterprises that almost anyone can start immediately. Generation of additional cash is the universal need of the hour. You need no bail-out to start a meals on wheels business. We have grown up on pictures of children selling lemonade in summer. This is a time to take the meals on wheels issue more seriously.

This is not the only route to starting a small enterprise. Each of us can use existing infrastructure and resources to generate new income. Politicians and economists may debate on whether recession looms, but ordinary folk need cash injections right now. We can no longer afford full-time home makers, except for maternity reasons. Put the entire adult family to work. It need not be a chore. Meals on wheels can be fun, and make you popular as well.

Post below or write to me at drsbanerji@gmail.com if you would like a string of meals on wheels ideas to start new lines of income.

Make Keating Economics Work for Your Business and Stock Portfolio

2008-10-06T19:52:00.004+05:30

The Keating Five are vilified to the point of discrimination. There is no way of knowing all cases in which legislators are unduly influenced by business interests. Bureaucrats are not above reproach either. Law-makers cannot function without extraneous influences. It is a part of the information explosion. You can either make Keating Economics work for you, or become a victim of a democratic process.

How can small business owners influence legislators in honest and transparent ways? Here is a link to an answer I like:

http://www.kycage.org/TalkingTips.html

Large corporations use trade associations and business events to further their points of view. It does not matter if you lack material resources. You can still make your imperative known, and put your perspective across. Stock values and business performance depend on legislation. Professional credit appraisal and management are prime needs of the hour. It is high time to adopt the Basel norms.

Post below or write to me at drsbanerji@gmail.com to know more.

How to Stop a National Debt Clock

2008-10-05T19:53:00.002+05:30

Runaway budgetary deficits cut across ideologies. Nations as far apart as Zimbabwe and the United States suffer from it in significant measures. Sanctions may accentuate the crisis in a particular country, but the effects are as debilitating for people burdened with security concerns around the world, and with unbridled free enterprise as well.

A national debt clock never stops clicking. 'Spend now and make the next generation pay' is the heady Mantra under which dictators, democrats, and republicans seem to operate. You do not have to lie back and take it. Most democracies allow you to invest funds abroad. It is a special strength of the United States. Consider the material at the following link:

http://www.dallasnews.com/sharedcontent/dws/bus/scottburns/columns/2007/stories/DN-burns_20bus.ART.State.Edition1.2b9e535.html

The best way to stop a national debt clock is to invest in organizations that have substantial business interests in countries with professionally-managed economies. Post below or write to me at drsbanerji@gmail.com for tips on stocks that can insulate you from a ticking national debt clock threat.

Free Online Aptitude Test for Business Management and Stock Investing

2008-10-05T07:59:00.002+05:30

Use the Internet for profit rather than for information alone. Put the medium to work on your competence. Business management and stock investing are top ideas for self-improvement using the World Wide Web at any place and time that suits you.

How will you keep track of your progress? What if you spend time on the Internet, and have nothing to show for it later? Benchmark your business acumen and investing skills before you start out. Repeat the tests every month. Keep records of your mental journeys.

Aptitude is not static. Highly accomplished individuals may become irrelevant in time, while dark horses emerge from the shadows. The turbulent world economy of today is an enabling breeding ground for new competencies. You can improve on-the-job performance, or build a valuable stock portfolio, and even do both.

How do you see 2008 until now? Can you list at least one new skill that you have learned over the past nine months? Turn a new leaf today if you are not satisfied with your answer to such a question.

Post below or write to drsbanerji@gmail.com if you would like a free online aptitude test to start this autumn on a winning note.

Rocket Above Stock Market Turbulence Next Week

2008-10-04T06:13:00.002+05:30

Who knows what Monday October 06 2008 will bring? Will stock markets swallow the bailout bill? What if the world thinks of this Bush administration parting gift as Americans did of the $600 checks last Spring?

Why take chances when you have sure-shot stock options? Look for industries with excellent prospects, and pick stocks at bargain prices. There are plenty of discount offers around if only you know where to look. Consider geo-thermal energy. There is plenty to go around beneath the surface of the earth. It is clean, and promotes security as well. Sure, you need capital to bring it to the surface, and to make electricity out of it, but you get more for your tax dollars than the childish ideas Bush and company have.

Nevada and Oregon lead the world in discovering geo-thermal wealth. British Columbia, with its typical sustainability zeal is a major player as well. Geo-thermal resources have been found in far-flung places such as Guatemala and Guatemala. Many countries that hanker after crude oil and uranium imports probably sit on untold resources under their very feet.

American stock markets are replete with excellent geo-thermal energy stocks. Post below or write to me at drsbanerji@gmail.com for free tips to find them.

Evidence Based Business Management Reasons to Buy this Sunk Stock

2008-10-03T06:10:00.005+05:30

I love Metalico Incorporated (AMEX: MEA). Recycling is just what the doctor ordered for the economy. Metalico has facilities in the most durable industrial realty in the world. A Beta of 2.18 has pushed the Price to Earnings Ratio to an incredible 7.32. The stock market thinks poorly of the stock, which is now available very close to its 52-week low of $4.90. It is a text-book case of evidence based stock investment.

Much of business management and stock investing is based on exaggeration and bias. Sadly, people in respectable positions of influence and authority resort to these tricks most. Small investors and business owners get carried away as a result. It need not be so. Everyone can take business and stock investment decisions systematically and based on relevant facts. There are other stocks such as MEA that you can pick for profits. Evidence Based Management works for small business just as well.

Post below or write to me at drsbanerji@gmail.com to know more.

IRS.GOV Holds the Key for the Senate Bailout Vote

2008-10-02T05:43:00.003+05:30

The US Senate is in session as I post this. The senate bailout vote will do as much for the economy as the Fed's repeated interest rate deductions have achieved over the past 12 months.

Debates on the financial mess will continue even after the senate bailout vote. It cannot end until true main-street concerns have been met. It is a time for new ideas. A great place for them is at http://www.irs.gov/

IRS.GOV is the best way to separate main street from Wall Street. Here are my ideas for selective bailout of the deserving:

1. Suspend foreclosures of modest residences of single-home families. Use the $700 billion to purchase book debts of the poor.

2. Strengthen bankruptcy infrastructure so that Wall Street can apply for and undergo due process quicker.

3. Replace the Fed. Get skilled professionals of integrity. Outsource to the Prime Minister of India if no one in the United States qualifies.

4. Leverage the U.S. strategic oil serve, Iraqi oil reserves, and the Bush equation with the Saudi King to force OPEC below $50 a barrel.

5. Extend the main street bailout to health insurance as well.

Post below if you disagree or if you would like to know more.

Business Charge of the Stock Brigade

2008-10-01T07:14:00.002+05:30

I turn to NASDAQ: BWLD on checking the morning news. You should do this as well to stay sane during these crazy times.

Bail-out blame will get us nowhere. The trick is to isolate your precious investments from Paulson and Company.

Buffalo Wild Wings is the brand to remember when you are hungry. It works for dividends just as well as for your stomach. October 2008 opens with the stock price at well over double the 52-week low. The Earnings per Share are a solid 1.25. Let me tell you why this stock will continue to rise, no matter what they do in Washington:

Firstly, the brand is positioned just right. It is neither casual dining that does not show you in good light, nor priced like fine dining. Value for money is just what U.S. diners need at this time.

Secondly, these guys have got their math right. What have they done in the face of a realty crisis? They have bought over franchises in Las Vegas. This is precisely the kind of IRR injection your stock portfolio needs.

Sadly, I am a poor Indian and have nearly no dollars. That should work for you, because you can rest assured that I have no hidden axes to grind in recommending great stocks to bail you out of the financial mess of the Bush.

Besides, I am an incorrigible vegetarian and have no desire to sample any buffalo wings.

The Mark-to-Market Mantra

2008-09-30T10:09:00.002+05:30

Replacement accounting is as old as the financial hills. Realistic asset valuation is one of the first things an honest auditor or credit rater will question. These are also means of corruption. Dishonest and inept regulators will mark-to-market their personal portfolios, even as they turn blind official eyes to the savings of the citizens they are sworn to serve.

Mark-to-market works both ways. You can use the regulatory shield to hide enormous assets from acquisitive eyes. This is the route favored by the Washington elite which builds nest-eggs for retirement while enjoying the vast powers of office. Brands are typical examples of assets that are not reported on financial statements. Land is another basis of manipulation: you can get away with any valuation you like. Greenspan is an authority on this. He not only predicted the housing melt-down, but is a consultant for cronies who have made top-dollars out of the mess.

Join the powerful since you cannot beat 'em. Use brands and under-stated land values to make a killing out of the current stock market misery. Use retail audits and 10-Q submissions to achieve this. You can also use your hands and feet and generate primary data.

Write to me at drsbanerji@gmail.com or post below if you need top stock picks based on the Mark-to-Market Mantra.

How to Dodge the Tab for the Bail Out Bill

2008-09-29T03:26:00.002+05:30

The world is both global and unipolar. That means we all feel ill when the United States wheezes. The Emergency Economic Stabilization Act of 2008 divides all of us in to two camps: the fortunate few who will benefit, and the masses that will foot the bill. Where do you stand?

Washington's bail out plan has Wall Street pulling unseen strings. It is an 'us versus them' thing. Large banks have proved that trust is for the birds. It is up to each of us to build investment portfolios for retirement that can weather all storms. Here are 5 top leads to a bail out plan that works for you:

1. Invest in the domestic economies of the BRIC block.

2. Buy stocks of companies with mines

3. Invest in corporations with brands at low and multiple price points

4. Support organizations that use environmental conservation as a competition lever

5. Add biotechnology and nanotechnology to your stock portfolio

Do you need help to make this bail out plan work? Just write to me at drsbanerji@gmail.com

A Stock to Treasure

2008-09-28T06:41:00.002+05:30

The NASDAQ trading symbol is sure to catch your eye. However, there is more than a name to draw attention to this wonderful stock. Converted Organics Incorporated turns organic waste in to cash. This is exactly the kind of thing we need to climb out of the current Financial Sector morass. Politicians may spend interminable hours chewing the cud on Capitol Hill, but you can gain most by investing in the right stocks.

The management has acquired appropriate technology for organic waste conversion. This converts avoidable cash outflows in to valuable assets. The company also has long-term lease options in places such as Rhode Island. This makes the late-September 2008 stock price of around $6 a rare bargain. It is an opportunity to grab without delay.

Write to me at drsbanerji@gmail.com or post below for more leads to stocks such as COIN.

Debate Time and Petticoal Mirror Stock Investing

2008-09-27T06:41:00.002+05:30

Debate time will not be the useful fun. It is hard to enjoy sparring between Presidential candidates at a time of such financial distress. We can be reasonably certain that Wall Street will get its bail-out in substantial form. However, all we have with respect to jobs, incomes, and homes, are strings of banal statements, and apprantly good intentions.

This is not to say that debate time has to be wasteful/ The trick is to listen intently for what is not said, and the non-verbal communication. Everyone can put best feet forward for the cameras, but it is what goes on behind the hidden portions of podiums that tells the whole story. This is what we learn from the expletives of President Bush, recorded when he thought that no microphones were around to pick up his verbal habits.

The Petticoat mirror has followed hemlines to extinction. Liberated ladies no longer need these aids to check on appendages of modesty and decent upbringing. However, the unscrupulous will continue to use convex optics to steal furtive glances at what most women still like to hide. Fortunately, there are no sanctions against using petticoat mirror concepts in business management and stock investing. Indeed, using markers to detect business issues that executives like to hide, is the crux of top stock investing strategy.

The current economic imbroglio could have been avoided if figurative petticoat mirrors had been used. It would have been apparent that auditors had become parties to valuing assets fictitiously. Similarly, hectic derivative activity could have been reviewed to realize that purchased debts were worthless. I have written about excessive leverage in an earlier post, and even a novice stock investor can uncover this fundamental financial tort.

Use debate time to improve your skills at making profitable stock picks. Learn to sniff out points of discomfiture, and realize that an Achilles heel may lie beneath that part of the surface. A particular candidate may try and dodge debate time altogether, while a more pushy one may prefer to smile and bluster a way through every weak spot. It is the same with quarterly events at which executives and Boards meet with stock owners.

Fortunately, the last lap of 2008 debate time and a reporting season will coincide. Use the confluence to your advantage, or write to drsbanerji@gmail.com if you need a financial concierge to get stock skeletons out of your retirement portfolio.

What If You Were Responsible for JP Morgan Chase Business and Stocks?

2008-09-26T08:39:00.002+05:30

The JP Morgan Chase & Co stock seems to be a rare gem of a Financial Sector stock. The September 25 2008 stock price crossed $43. The price was well under $30 not so long ago. The Price to Earnings Ratio remains comfortably below 15. The Forward Price to Earnings Ratio is slated to fall below 11. What distinguishes this stock, and are investors right in their support of the iconic Money Center Bank?

Purchase of a peer in distress seems to have triggered contrary stock price movement. Is the JP Morgan Chase & Co management right in its appraisal of the Washington Mutual business? I do not think so.

JP Morgan Chase & Co has earned less than 1% on Average Assets during the last one year. Who can be sure how much the assets may be worth in reality? What if the Fed selectively bails out competitors who take more profitable risks? The Payout Ratio of JP Morgan Chase & Co is more than twice the norm for its industry. This raises questions about the long-term commitment of the management.

I can point you to stocks with better sensitivity profiles to their Forward Price to Earnings Ratios. Do not follow the stock market herd. Write to me at drsbanerji@gmail.com to know more.

Business Management and Stock Investment in a Bush Economy

2008-09-25T09:10:00.002+05:30

The Laws of a Jungle serve the mighty. Might is Right and Cash is King. The Ruler has control over shared resources, and can even conjure virtual ones. The Bush bailout is selective, and by all accounts, deliberately so. Click to another page if you are a part of Wall Street. Stay on this page if you have no connections with the Fed.

Small, independent, and ignored eco-systems are part of any jungle. Large carnivores are most prominent in their naked lust, but there are many small critters that carry on business as usual. The Regional Banks industry is a top example of this phenomenon. Many unsung heroes of the blighted Financial Sector in the United States. Allies of this once-great nation may hang on to every word that Washington utters, but the real action is at Ground Zero in the hinterland.

We have similar situations in many industries and countries as well. A macro part of the economy languishes in mis-management, while individual stocks continue to perform on par. The reverse may also be true. It appears that Freakanomics works for the stock market just as it does to understand sumo wrestling and the profits from growing opium in Afghanistan.

The good news is that you can continue to rake in the moolah even as politicians, bureaucrats, and their ilk continue to struggle with the monster of unbridled and corrupt capitalism. It is simply a matter of diligent Business Management. Get back to the basics of evaluating the worth of an enterprise. Craft strategies based on facts not dromology.

Write to me for effective ways to shore up your business in trying times, or to build a valuable stock portfolio. You can also post below.

The Nicolas Sarkozy Way of Business Management

2008-09-24T07:19:00.002+05:30

I must confess to confusion over the following link:

http://www.eubusiness.com/news-eu/1222182157.67

Does Nicolas Sarkozy wish to suggest that business is not regulated? Every financial institution, including the ones on Wall Street, are audited at least once a year. Each corporation has a governing Board. All management teams report to their stock owners once a quarter.

The Basel norms for prudent banking and investment have been around for years. The United States stands out for refusing to comply with professional safeguards for banks.

What will a new world summit achieve? I think it is better to merely ask regulators to do their jobs. This is important for stock markets, because each exchange has its own regulatory mechanism. NASDAQ stands out for being ruthless in de-listing corporations that do not meet regulatory norms. It is different from the NYSE in this respect.

A first step that all of us can take is to switch our investments to stock exchanges that are professionally managed. The stock market is an adequate model of the 'regulated capitalism' that Nicolas Sarkozy would like to reinvent.

You can build a resilient portfolio of valuable stocks regardless of what happens in Washington and Wall Street. You can enjoy dividends that beat the bank rate, liquidity when you need it, and overall, financial security. Business Management has all the prescriptions you need. Write to me at drsbanerji@gmail.com or post below if you would like my help in building a portfolio of top stocks.

Take a Cue from Amazon.com to Avoid the Stock Market Crisis Backlash

2008-09-23T10:26:00.002+05:30

Who does not want the stock market nightmare to end? Well, contrary investors may not delight at widespread misery of other stock market players, but it is certainly time for them to make judicious purchases of the best stocks. Forward Price to Earnings Ratios are not widely known, but professional business analyses will show that the best stocks are now available as nearly incredible bargains.

Business modeling holds the key. As Presidential hopefuls love to say, it is 'time for change'. Business organizations that have spent the best part of a decade hobnobbing with the powers-that-be in Washington, are on their way out with the present incumbent of the White House-Thank God! New kids-on-the block are about to take over the center-stages of all stock exchanges. It is time for a new financial order, which favors customer value and most productive uses of all resources.

Write to me at drsbanerji@gmail.com or post below for a detailed exposition on why the pioneer in online business is such a helpful clue. Amazon.com is a gold standard for all corporations that wish to sail in to the waters of the new Millennium with their pennants flying. Amazon.com is just one example. There are plenty of other top stock picks out there.

You just need to know where to look, but hurry before everyone gets wise.

Contain the Truth to Build a Valuable Stock and Investment Portfolio

2008-09-22T09:50:00.003+05:30

'Dog eat dog' works best in stock investment and retirement financial planning. It is wrong to pour blame on Dick Cheney alone for his Halliburton shenanigans. Most of Washington and Wall Street do the same things when it comes to personal financial worth over the interests of the rest of us.

Private enterprise in the financial world is mostly about how to contain the truth. Both buyer and seller of stock or any security cannot be right: one party to every stock market transaction, with notable exceptions of exchanges, analysts, and brokers, has got the numbers wrong. It is either time to buy or to sell, it cannot be both.

'Join 'em if you cannot beat 'em' is not just a hackneyed adage. Either work the system to your benefit, or lie back and get victimized. This is the essential difference between Lehmann and AIG.

I envy those who are close to the administration. They can take all the risks they like, and use public funds and unlimited budgetary deficits for bail-outs. The rest of us have to work diligently and daily to built financial portfolios to see dependants through lives in retirement.

Do your financial advisers and the sources of information on which you depend 'contain the truth'. Post below of write to me at drsbanerji@gmail.com if you have reliable ways to play the stock market, or if you want leads, free of hidden agendas and motives, to top stocks on which you can bank for financial security and freedom.

Business Relevance for Top Stock Picks

2008-09-20T21:16:00.003+05:30

Customers are not responsibilities of sales personnel alone. Everyone from the Chief Executive down to the bottom of the organization must be focused on meeting customer needs.

Customers are internal as well. Staff functions should view their line colleagues as people they must serve. Modern organizations also see higher levels of managers as responsible for meeting performance needs of their subordinates.

Not all customers are consumers. Sellers and regulators are important categories of customers. Sustained business performance demands that their needs are understood and met. How can stock investors discern the customer-orientation of a corporation?

One answer may lie in business relevance. How vital are the products and services of a company? Pharmaceutical companies with their life-saving drugs are top examples of enterprises that deliver steady stock investment returns through undeniable social relevance. It is easy to criticize these companies for their rapacious pricing, but the truth is that we cannot do without them.

It is in this light that I would like to recommend Neogen Corporation (NASDAQ: NEOG) for your stock portfolio. What can be more important than keeping our food supplies free of pathogens? The company is debt-free. Its Gross Margin has topped 50% over the last five years. Sales have grown steadily by more than 16% during this period. There is virtually unlimited scope for the company to expand globally.

Post below or write to drsbanerji@gmail.com for more stock picks to embellish your investment portfolio.

Which Nanotechnology Stock is Best for You?

2008-09-19T20:31:00.002+05:30

Words can be misleading. Nanotechnology is a typical example that plagues stock investors most particularly. Most people in the stock exchange ring hear this term but are ashamed to admit that they do not understand its full meaning. However, no one can argue that it will shape industry in the years to come. Every portfolio needs nanotechnology stocks. Corporations that do not embrace nanotechnology will decline, and hence investors need to be wary on this front as well.

Nanotechnology originates from different streams. This recognition holds the key to profitable stock investment in the sector. Blue-sky research is typical of academic institutions. This is all very well for knowledge, but can it make money? Investment in unproven technologies is a major barrier to success in picking top nanotechnology stocks.

Alphabet rounds are variations of putting money in to risky nanotechnologies. Some researchers are also canny entrepreneurs. Others lack business management skills. That is why leading lights of the academic world do not always succeed when they step in to a business ring. Angel investing sounds nice but it can put your savings to severe risks.

Nanotechnology in the Research and Development functions of established and professionally-run organizations is your best route to stock investment. This genre of corporation has a global vision, and the muscles bring cutting-edge technologies to market. The Delphi technique is a useful adjunct to stock investment in nanotechnology.

Post below or write to drsbanerji@gmail.com if you would like leads to some of the best stocks in nanotechnology. Add weight and value to your portfolio through nanotechnology.

A Stock to Treasure for Generations

2008-09-18T15:00:00.002+05:30

Some of the best stock investments transcend generations. History is replete with such instances. You buy something nearly worthless today, but it becomes a precious heirloom over time. Most families that have inherited dream portfolios may not even know how little the assets were worth when they were first acquired.

Trans-generational wealth creation can happen by chance, but it can also be planned. It is a matter of using your domain expertise to find exponential growth opportunities. Here is an example of a penny stock that I believe will be worth fortunes tomorrow:

Cord Blood America Incorporated (OTC: CBAI)

Post below or write to me at drsbanerji@gmail.com for more leads of this genre. I do not hold CBAI stocks or have any association with the corporation.

Why the AIG Bailout is Misplaced

2008-09-17T18:08:00.002+05:30

Ordinary citizens need protection before highly-paid executives and wealthy owners of blocks of stocks.

The priority in the AIG debacle is to rescue folk who have insured their families with this corporation. Washington should lose no time in issuing unequivocal assurances in this regard.

People who have invested in AIG stocks should review their portfolios. It is best to switch over to bonds if financial appraisal is not your cup of tea.

Finding new corporate owners for AIG is not government business. Strangely, this is all the Fed seems to be able to do.

AIG is not the last corporation to approach utter business failure. That is why we must assert our rights, and set priorities between various entities that have provided the inept AIG management with precious resources.

I invite your comments. Please post below.

How to Survive the AIG Crisis

2008-09-16T19:09:00.002+05:30

Risk management is like faith in God. We resort to it readily when in trouble, but tend to look askance when the going is good.

AIG could have used professional business management methods to steer clear of trouble. This may have resulted in some pedestrian quarters, but it would have left stock holders on high ground today.

The AIG story can happen to any of us. It is a consequence of disregarding serious risks because they are improbable. Here is a link to a quantitative approach:

http://www.sciam.com/article.cfm?id=multifractals-explain-wall-street&sc=DD_20080916

An AIG-type crisis can also result from negligence. Fortunately, cash-strapped corporations are easy to pull out of trouble, provided that their assets are sound. Diligent regulation also helps.

AIG is a sound stock. The corporation is in trouble because of bad management. It is a rare opportunity for honest and capable executives to prove their skills.

Post below or write to me at drsbanerji@gmail.com if you would like to know more about why the AIG stock remains valuable, what can be done to bail it out, and how you can avoid falling in to a cesspool of excess leverage.

Leverage Lehman Lessons for Your Stock Portolio

2008-09-16T07:05:00.003+05:30

Exaggeration plagues the stock market world. Business channels on television are the worst culprits. They vacillate between uncalled-for praise of stocks on the up, and present pictures of doomsday at the slightest hiccup.

The investment bank crisis in the United States is neither a business management nor an investment matter in reality. Major sections of the world economy are stable and growing. There are scores of regional banks and savings & loan operations that remain unaffected by the whole sub-prime drama.

A corporation can perform satisfactorily in the midst of an economic crisis. Another may flounder even in a general upswing. Stock investment has never been a matter of following any herd. Rational analysis and objective review of facts are watchwords.

Risk management makes the difference between anticipation and hindsight in the stock exchange arena. Investment banking as a profession has adequate procedures to prevent bankruptcies. The Basel norms, prepared by professional bankers, are designed for this very purpose. The famous Wall Street names that hog headlines of shame today are the ones that have obstinately refused to follow the Basel norms.

You can use risk management methods to build a resilient stock portfolio. Keep those dividend checks coming in even as the rest of the world weeps. Stay liquid and prepared to meet every adverse event. Financial utopia cannot be reached in a day, but it is never too late to start.

Post below or write to me at drsbanerji@gmail.com if you would like to take this further.

Stock Quotes and the Stock Market Crash

2008-09-16T06:50:00.002+05:30

It is natural to want a doctor more when you feel unwell than when it is time for a routine medical examination.

Strangely, you do not find many reassurances from economists, regulators, and business management schools on the stock market crash. Is this not when we all want to escape the Lehmann debris?

My advice for today is to buy bargain stocks, Forget about the crash because it is not controllable in your individual hands. Do not fret about where the bottom is. No one can know for sure. Focus on dividend records. Pick stocks that have histories of steady dividends, and buy the ones with the best Forward P/E Ratios.

You might lose notionally in the short-term with such an approach, but the chances of handsome gains in the long-term are bright.

Post below or write to drsbanerji@gmail.com if you would like recommendations on individual stocks. I specialize in North American stock markets.