Basic Training: Learn how to pick the best stocks, ETFs, and mutual funds

New Sites To Help You Make Better Investing Decisions
The Web, at least from an investing perspective, is undergoing a resurgence and dozens of new investing sites have surfaced in recent months. Here are some that I�ve found interesting.
Preferred Stocks For High Yields
Bank of America is offering �high yield� CDs at 3.3%. But, you could lock in 7.9% with BofA�s preferred shares. Bank of America isn�t your only option, you can find preferreds yielding up to 16%.

Dividend Stocks
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Profit No Matter Which Way Crude Prices Go?
Which way are crude prices headed? Some say up�others say down. Canadian royalty trust shareholders profit when energy prices rise, but still enjoy a good return when they don�t. Here�s how to find them.
Dividends Better Than Banks
Given the uncertain economy, it�s tempting to park your money in the bank. But with banks paying less than 3%, many investors are seeking another alternative. Here�s how to find relatively low-risk stocks paying better than banks.
Energy Pipelines: High Yields Plus Low Risk
Energy pipeline operators, organized as Master Limited Partnerships (MLPs) offer a combination of low risk and high yields, an ideal combination for this shaky economy. Here's how to find them.
How to Find the Best Dividend Stocks
Dividend stocks, if chosen carefully, have two advantages over other stocks. If the share price goes nowhere for a few months, you still collect the dividend, so you get paid to wait. Also, if the stock drops, the dividend yield to new investors rises, attracting more buyers. Here's how to find the best dividend stocks.
BDCs For High Dividends
It�s getting harder for dividend investors to find high dividend-yield stocks. But, several stocks in one category, Business Development Companies, are paying dividends equating to 7% to 8% yields.
Subprime Lending vs. REITs
Fallout from the subprime lending fiasco is pressuring all REIT share prices. Is this a buying opportunity? Here�s what REIT investors need to know.
Rural Telecoms Pay Big Dividends
If the market been a little too exciting for you lately, it may be time to consider something really boring, say, rural telephone companies. You won�t be bored after you check out their dividend yields.
Are REITs Right For You?
Over the five-years ending December 31, 2004, real estate investment trusts (REITs), returned 23%, on average, annually vs. the S&P 500�s 1% average annual loss. Here�s how to find the best REITs.

Finding and Evaluating High Dividend Stocks
Dividend paying stocks are getting more attention, and for good reason. Here�s how to find and evaluate high-yield dividend paying stocks.
the 15 Percent Strategy
If you do the math, you�ll find that 15 percent doubles your money in five years. Here�s a strategy that seeks stocks capable of returning 15 percent annually through a combination of stock dividends and capital appreciation.
Dogs of the Dow
Are you too busy to do the analysis required to select stocks for investment? How about a stock selection approach that requires less than one hour per year. This intriguing stock selection strategy called the Dow Dividend Approach, more popularly known as the Dogs of the Dow, has beaten the overall stock market substantially over the last 26 years.

Evaluating Financial Health
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Credit Risk Scorecard
Given the state of the credit markets, holders of stocks that rely on debt to finance growth could be in for some unpleasant surprises. Here's how to find out if your stocks are in that category.
Ignore the Experts - Figure It Out Yourself
Can anyone predict the market? Apparently not! But CXO gives you the information you need so you can figure out which way the market is likely to head on your own.
Bulletproof Stocks
It�s easy to get excited about a company�s growth story and forget the basics; such as does it have the financial strength to overcome the inevitable obstacles it�s bound to encounter. Dozens of companies have failed in recent years, leaving their shareholders with nothing. Fortunately, you don�t have to scrutinize financial statements to avoid such problems. Here's a simple checklist for pinpointing the financially strongest candidates.
Use Cash Flow to Spot Bankruptcy Candidates
We�ve heard a lot about accounting fraud, but recently bankrupt Consolidated Freightways simply ran out of cash to pay its bills. Here�s how you could have used cash flow to determine that Consolidated was risky business months before it filed bankruptcy..
How to Spot an Impending Bankruptcy
The Enron and Kmart bankruptcies demonstrate that we can�t depend on market analysts to keep us out of trouble. Yet, anyone with Internet access could have figured out that owning Enron and Kmart was risky business months before they finally folded. Here�s how.

Evaluating Stock Market Advice
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Why Investors Can't Make Money Following the Analysts
Can you make money following stock analysts� advice? The answer depends on who you are. For those with the big bucks such as hedge funds and other big players, the answer is yes. But it�s a different story for individual investors. Here�s why.
Pay Attention to Analysts - Just Don't Follow Their Advice
The analyst buy/sell ratings and earnings forecasts contain important information that could help you make money. But ignore their �buy/sell� ratings. Here are the details.
Guidance Predicts Share Price Direction
Until recently, when a firm reported earnings, its stock went up if earnings beat analysts� forecasts and down if they didn�t� But that was then. Now, the rules have changed. Here are the details.
When Sell Means Buy
An analyst�s rating downgrade usually drives a stock price down. But if the reason for the rating change was solely valuation, the downgrade could be a buying opportunity.
Watch Out for Ground Floor Opportunities
If you�re like me, you probably receive frequent e-mails from people you don�t know alerting you to opportunities to get in on the ground floor of exciting new businesses. Unfortunately, in many cases, it�s more about making money from selling stock to unsophisticated investors than about starting a groundbreaking new business.

Industries & Sectors
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Pick Hot Industries
Savvy investors know that your chances of making money depend more on selecting the right industry than it does on picking the right stock. Here�s how to spot hot industries.
Get the Industry Scoop
Many investment professionals consider keeping abreast of industry trends just as important as pouring over financial statements. It makes sense. Knowing that your candidate�s currently hot products are about to go out of fashion would surely influence your analysis. Here�s where to find the info.
Industry Timing Using Exchange-Traded Funds
Not everybody loses money in a weak market. Investors in the right industry can make money, even in rough markets, if they know when to get in, and when to get out. Here�s how to use Exchange-Traded Funds for industry timing.

Mutual Funds/Exchange-Traded-Funds (ETFs)
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Collect Foreign Money Market Rates
The last time that I checked, local money market and CD rates were running in the 3.0% to 3.5% range. That�s not much compared to the 12% or so you could collect in Brazil, India, or South Africa. Here are the details.
Make Money From Rising Commodity Prices
Soaring oil, corn, wheat and other commodity prices are squeezing consumers. But you don�t have to take it anymore. Thanks to exchange-traded-funds, you can make money from rising commodity prices.
Closed-End Funds Can Make You Money
Closed-end funds offer advantages over regular mutual funds, but most investors don�t know much about them. Here�s what you need to know.
PowerShares' ETF Results: Nothing to Shout About
A year-ago I described a new twist on exchange-traded-funds (ETFs) marketed by PowerShares Capital Management, which appeared to have an advantage over the competition. Last week, I checked on how the PowerShares funds have done over the past year. Unfortunately, so far, the results have been mixed.
Use Funds to Invest in Oil
If you believe that high oil prices have become a fact of life, this may be a good time to check out investing opportunities in the sector. Here are some ideas for doing it with mutual funds.
Do Managed Mutual Funds Outperform Index Funds?
Not necessarily, at least according to research I recently conducted on the topic. Here are the details.
Screening For Mutual Funds
Mutual funds offer advantages over owning individual stocks in this rough and tumble market. Here's how to use Morningstar's free mutual fund screener to find worthwhile mutual fund candidates.
How to Pick the Best Mutual Funds
The amount of data pertaining to a mutual fund's performance can be overwhelming. Not to worry! Here are a few simple rules for picking the best funds.
Power of Compounding
Probably the most important thing you need to know about building wealth is the power of making regular periodic investments and reinvesting rather than spending the profits. The results you�d get are astounding. Starting with nothing, you'd have a cool $1.7 million in 30 years if you just match the market's historical returns. Here's how.
Exchange-Traded Funds (ETFs)
Sophisticated investors such as hedge fund managers have recently adopted exchange-traded funds (ETFs) as their favorite investment vehicle. But there is no reason why individual investors can�t also exploit the benefits of ETFs. Here's what you need to know.
Beware of Fund Manager Changes
A mutual fund�s past performance gives us a good clue to the future. After all, if a fund manager has been a good stock picker in the past, he or she will probably continue to pick good stocks. But all bets are off if the fund changes managers. Here�s how do you find out about fund management changes and a passel of other worthwhile info.
Making Bond Investments Pay
The current stock market is driving many investors to look to bonds as an alternative. Here are some tips for finding and evaluating bond mutual funds.

How to Research & Analyze Stocks
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Avoid Big Losses By Checking Balance Sheet Red Flags
Crocs shareholders who ignored two balance sheet �red flags� saw $1,000 turn into $209. Here�s how you can avoid making the same mistake.
Finding Google
Most investors are looking for the next Google: stocks with rapidly growing earnings that will send their share prices through the roof. Here are 6 important rules for spotting hot growth candidates.
For Every Stock, There's a Season
Making money on a stock may be as much about when you buy as what you buy. Here's how to find the best time of the year to buy your favorite stock.
Death List = Risky Stocks
With the Dow hitting new highs almost daily, the market has been fun lately. Unfortunately, it�s easy to get caught up in the excitement and pay too much for stocks that have already seen their best days. Here�s how to identify stocks in that category.
When to Sell
You can find plenty of advice about when to buy stocks, but knowing when to sell is equally important. Here are my selling rules.
Stock Risk Score Sheet
Everybody knows that buying stocks involves risk, but some stocks are a lot riskier than others. Here�s a simple score sheet for evaluating the risk of stocks that you already hold or are considering buying.
Pick Stocks Like Warren Buffett
Many investors consider Warren Buffett to be a pretty good stockpicker. Here's how to find stocks that Buffett might like.
Brushing Up On Basics
Your mail tells me that new investors might not understand all of the terms that I use in these columns. So, here's an explanation of some of the stock market jargon I�ve been throwing at you. But experienced hands need not tune out. As usual, I�ve included enough of my own debatable opinions to make it interesting.
Selling Short Can Backfire
I get a lot of mail asking me to describe a strategy for picking short-selling candidates. That mail has gone unanswered. Now I�m going to tell you why.
Cramer Can Help You Make Money
Watching Jim Cramer's "Mad Money" TV show is like a visit to the loony bin. But Cramer can teach you how to be a better investor. Here's the best news: you don't have to watch him on TV.
Use Cash Flow to Spot Problems Early
Investors who bought Krispy Kreme Doughnuts at its August 2003 peak and never sold would have $150 worth of stock today for every $1,000 that they originally invested. But those savvy to analyzing cash flow had plenty of warning that something was amiss.
Survival of the Fittest
Survival of the fittest, the law of nature that says, "Only the strongest survive," is a principal that investors should apply to qualifying stock candidates. Here's how.
Get a Jump on the Big Players
Institutional players move your stock�s share price big time when they buy or sell. Knowing how they think will help you predict which way your stocks are likely to move next.
How to Detect Creative Accounting
Almost every day we�re hearing about how corporations have played fast and loose with accounting rules to hype their earnings. Here�s how to spot firms that rely on the nonrecurring trick to make expenses disappear
Two Easily Detected Red Flags
The last time I looked, shares of discount retailer �99 Cents Only Stores� were trading at $14 or so, down around 60%. But careful investors who heeded two simple �red flags� had plenty of time to get out with little or no loss. Here are the details.
Analyzing Stocks Just Got Easier
Good news for fundamentally inclined stock investors. Put away your green eyeshades, analyzing stocks just got easier.
Easier Way to Spot Accounting Red Flags
Stocks usually take a big hit when a company reports earnings below expectations. That�s why some investors go to great lengths to detect �red flags� warning of such events. But you don�t have to. Here�s an easier way.
Six Quick Growth Stock Checks
Don�t spend time analyzing stupid stocks. Here are six items you can check in a minute (no kidding) that will help you rule out bad ideas so you can spend your time researching worthwhile candidates.
How to Gauge Interest Rate Risk
Interest rates are likely to go up when the economy improves. Here�s how to gauge the risk to your stocks in a rising interest rate environment.
Picking the Industry Leader
In the stock market, it pays to bet on the leader. Here's how to pick the strongest player in an industry sector.
Focus on ROE Instead of Earnings
Investors would fare better by focusing on a firm's profitability rather than earnings per share when researching a stock. Why? Because as you'll soon see, one profitability measure, return on equity, can help you gauge a firm's earnings growth prospects.
How to Profit From Stock Buyback Announcements
You may be able to improve your stock returns by focusing on firms that are buying back their own shares. But be sure your companies are actually doing it rather than just talking about it. Here�s how to do the analysis.
How to Spot Takeover Targets
Even in this market, you usually make money if you are lucky enough to hold a stock when the underlying firm is bought out. Her are some ideas for spotting acquisition candidates.
New Rules for Valuing Stocks
Investors typically rely on P/E ratios to value stocks. Now valuation is even more important, but in many cases P/E isn�t meaningful because recent earnings, the �E� in P/E, are either depressed or non-existent. Here�s how to get around that problem along with two more ideas to help you evaluate stocks in this market.
How to Analyze a Company's Business Model
If you were buying a real business, you�d probably spend considerable time analyzing each prospect�s profit potential. Yet few investors spend much time analyzing the business models of the stocks that they purchase. They�d be better investors if they did. Here's how to get started.
How to Set Target Prices
Setting target prices is something that professional money managers almost always do, but individual investors almost never do. Most are not aware of the importance of setting target prices, nor how to go about doing it, even if they want to. Here�s a simple procedure for estimating target prices.
How to Spot Serial Acquirers
Acquisition-fueled growth is similar to a pyramid scheme. It works at first, but if you do the math, you�ll see that it has to fail. Here�s how to spot serial acquirers.
A New Look at Value Investing
I�ve recently had the occasion to talk to several value-style managers about their selection strategies. As a result, I have a new appreciation for the craft, and in fact, value investing makes a lot of sense to me. Here�s a rundown on what I�ve learned.
Get a Second Opinion
Even if you�ve done a thorough job of analyzing a stock, it pays to get a second opinion before you buy. Here are three sites ready and willing to give you their take on your picks.
Stock Scouter, a Powerful Stock Analysis Tool
Microsoft�s MSN Money's powerful free tool will help you analyze stock investment candidates. Here are the details.
Save Time -- Prequalify
Fundamental investing requires spending time gaining an understanding of a company�s business and its growth prospects. Here are some quick rules that I use to eliminate weak candidates before I do serious research.

Finding Stocks to Analyze (Screening, Tips, etc.)
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Please note: the Reuters stock screener mentioned in many of these articles is no longer available.
However, you can usually run the same screens using the free MSN Money Deluxe Screener.

Brazil is Hot!
An index of Brazil stocks traded on U.S. exchanges has gained 83% over the past 12-months compared to a 6% drop in the S&P 500. Here�s to invest in Brazil.
China Stocks
With the U.S. economy sputtering, many investors are turning their sights to China. And for good reason! China is experiencing unprecedented growth as it emerges from third-world status to a major economic power. Here�s how to find and research China stocks that are listed on U.S. exchanges.
Zacks' Offers Lots of Free Advice
Zack�s site offers many useful tools that will help you find good investment candidates. Here�s a rundown.
Stocks for a Strong Market
The market is usually strong from mid-October through year�s-end. Here�s a screen for finding stocks likely to do well, assuming that the market performs as expected.
Time to Look at Shipping Stocks
Given the uncertain outlook for the U.S. economy, this might be a good time to consider shipping stocks, that is, companies that operate ocean-going cargo vessels. Here's how.
Cash Rich Stocks: Rx For Credit Jitters
How to find cash rich stocks with no-debt and strong growth prospects, your best plays in this jittery credit market.
Interesting Drug Candidates
Pharmaceutical giant Pfizer�s recent problems got me thinking about generic drug makers as an alternative to the big guys. Unfortunately, my research found that generics were a bad idea. But, in the process, I discovered other interesting prospects in the drug field..
Little Book Beats the Market
The best selling stock market book these days is �The Little Book That Beats the Market.� The reason is no mystery. The book describes a simple formula that, according to its author, would have averaged a 31% annual return from 1988 through 2004. It�s worth a look.

Momentum Strategies Don't Get the Attention They Deserve
Despite their heavy use by hedge fund managers, TV pundits usually refer to momentum in a negative context, such as �the momentum crowd has driven the stock of XYZ up to outrageously overvalued levels.� But momentum strategies work. Here�s a rundown and a screen for finding momentum candidates.
Fast Growers Best For Slowing Economy
In a slowing economy, you�ll do best owning small-companies that are in the beginning stages of exploiting a new market opportunity. Here's how to find them.
Finding Stocks in the Value Bin
With so many stocks well off their historic highs, this is a good time to look for value-priced stocks. But cheap stocks have a nasty habit of getting cheaper. Here�s a strategy for finding value-priced stocks with the best turnaround prospects.
Dogs of the S&P
The Dogs of the Dow were all the rage back in the early 1990s. The stockpicking strategy sported a convincing market-beating track record, yet only required about an hour per year to pick the stocks. However the Dogs� strategy has some serious shortcomings as evidenced by its recent so-so performance. Here�s my idea for an improved Dogs of the S&P 500.
Get Free Stock Tips From Real Pros
You can spend serious money getting stock tips, but you can get them free from mutual fund managers. Here�s how.
Cornerstone Growth -- A Strategy For All Seasons
Are you unsure whether the market is heading up or down? Here's a stock picking strategy that, historically, at least, seems to produce remarkably steady long-term returns, in both strong and weak markets.
How to Pick Oil Stocks
Oil prices are flirting with all time highs, and oil company stocks, which generally move with oil prices, have outperformed the market this year. Nevertheless, investors should still consider buying oil stocks. Here�s why, and how to find the best stocks.
Famous Gurus Will Analyze Your Stocks
Wouldn�t it be great if you could get famous gurus such as Peter Lynch or Benjamin Graham to help you pick stocks? It turns out that you can, here�s how.
Favorite Web Pundits
Although, many sites now charge for access, there is still plenty of good investing advice available free for the asking if you know where to look. Here are some of my favorites.
Taking Screening to the Next Level
Portfolio123 is a new site with the goal of providing you with tools for creating automatically managed stock portfolios. It looks like it has succeeded. Here�s how it works.
Robot Stocks: Simple Strategy = Big Returns
Here�s a simple stock selection strategy that returned 63% in 2003, compared to the S&P 500�s 29%. What�s more, this strategy is no flash in the pan. It outperformed the S&P by at least 19 percentage points in each of the past five years.
How to Find the Best Busted-Growth Stocks
Investors looking for growth stocks will find few candidates using traditional strategies. Here�s how to pinpoint worthwhile candidates amongst the heap of busted growth stocks.
Benjamin Graham's Asset Value Strategy
Finding low-risk stocks should be priority number one in this market. Benjamin Graham described a strategy for identifying deep value, and in his view, low-risk candidates, in his book, �The Intelligent Investor,� published in 1949. Here�s a rundown.
Beat the Nasdaq With Less Risk
How would you like to beat the returns of the Nasdaq without the stomach-churning volatility? The PaceSetters Database has done just that since 1988. Here are the details.

Web Investing Resources
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Important New Investing Resources
Investing resources on the Web are multiplying and evolving in ways that few of us would have predicted. Here are some of the best.
Investing for Beginners
Is investing an undecipherable puzzle? Here are five sites where you can get up to speed on the basics of investing.
Four Good Sites
There is still plenty of free information on the Web that will help you make better investing decisions. Here are four worthwhile sites that I haven�t told you about before.
Free Stock Screeners Becoming Rare
Worthwhile free stock screeners are becoming scarce on the Web, as evidenced by Business Week�s recent shutdown of its user-friendly screeners. Here�s a rundown on the best of what�s left.
Best Investing Sites for 2007
Since we�re starting a new year, this is a good time to give you my take on some of the best investing sites for 2007.
Free Tips From S&P
S&P gives away plenty of money making stock market advice for free. Everything from profitable stock portfolios to industry outlooks. Here�s where to find it.
Yahoo's Powerful New Analysis Tools
Yahoo recently overhauled the way it presents stock data, and in the process has added three powerful new tools that will help you pick better stocks. Here are the details.

Predicting Stock Market Direction
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Sites For Predicting the Economy
Are we heading into a recession? You can find any answer you want by picking the right guru. That�s why it�s important to do your own research. Here�s where to start.
New Tool Spots Market Trends Early
New ETF performance reports available on at least two sites give you a way to easily spot market trends, whether they involve industries, types of stocks (e.g. value, growth, or large-cap), countries, or whatever. Before, only institutional investors with giant computer systems at their disposal could do such an analysis.
Which Way is the Market Headed?
What�s next for the stock market ? Here are my favorite gurus for predicting the future direction of the economy and the stock market.

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