Ideally, investors try to buy a stock when the price has reached a support level (a level at which the price is as low as it will go) and sell the stock when it hits a resistance level (a level at which the price is as high as it will go). This is easier said than done. Most investors end up missing out on a continual rise by waiting for a stock to plummet first, or sell way to early by underestimating how high the price will go. In this article, we will focus on the two most popular strategies that you can use to invest without having to worry about market timing.

Dollar cost averaging (DCA) is an investing technique intended to reduce exposure to risk associated with making a single large purchase. According to this technique, shares of stock are purchased in a specific amount on a specified periodic basis (often monthly), regardless of current performance. The theory is that this will lead to greater returns overall, since smaller numbers of shares will be bought when the cost is high, while larger number of shares will be bought while the cost is low.

An example of DCA would be as follows: If I want to buy 1,200 shares of IBM stock using DCA, then I might decide to purchase 400 shares of IBM per month over the course of the next three months. Hypothetically, during month one, the price of IBM may be $105 per share, and then it might drop to $95 per share during month two, and then rise to $100 during month three. If I bought all 1,200 shares during month one, I would have cost me $105 per share. But, by spreading the purchase over a three month period, I managed to buy IBM at an average price of $100 per share.

The primary drawback of using DCA is that you may not be maximizing your overall return. If there is an indication that a certain stock is currently undervalued and might shoot up in price, you would actually make less money using DCA than if you had bought all the shares in the beginning before the price skyrocketed. So, it is not always a winning strategy to spread your purchases over a period of time.

Value averaging, also known as dollar value averaging (DVA), is a technique of adding to an investment portfolio to provide greater return than similar methods such as dollar cost averaging and random investment. With the method, investors contribute to their portfolios in such a way that the portfolio balance increases by a set amount, regardless of market fluctuations. As a result, in periods of market declines, the investor contributes more money, while in periods of market climbs, the investor contributes less.

Here is an example of DVA: I want to invest in Yahoo using DVA. For the sake of argument, we will say that Yahoo is currently $10 per share. I determine that the value of the amount I am going to invest over the course of 1 year will rise, on average, $1,000 each quarter as I make additional investments. If I use DVA, I invest $1,000 to start.

If, at the end of the first quarter, the share price has risen to $15 per share, that means that the value of my investment is now $1,500, which means I will only have to invest $500 at the start of the second quarter in order to bring the total amount of my investment for the first and second quarter to $2,000. So, I am investing less as the stock price increases.

Dollar value averaging usually works better than cost averaging because value averaging results in less money being invested as the stock price goes up, whereas with cost averaging you continue to invest the same number of dollars regardless of the share price. But, neither of these strategies are necessarily full-proof. Make sure you know something about the company you are going to invest in before you go forward.

By:Abhishek Agarwal

The key to success in an investment is to play it right: A rule familiar with every investor notable in his field. This includes primary knowledge of business, diplomacy and a meritorious demeanor.

Glancing at some of the innate tendencies of a successful investor, primarily, apart from possessing basic knowledge, he requires a businessman's insight and must be capable of drawing out appropriate programs and methods, propaganda and creating formidable allies. He must be able to handle grave situations when uncertainty arises.

In case you are faced with want for extra funds to support the increase in marketing and production, it isn't wise to turn to money lending services for credit as your returns will be used to pay off the debts leaving you at square one with neither loss nor gain. This is the stage at which an Initial Public Offering (IPO) proves effective and a good investor will be able to identify the solution.

An IPO is basically the company's first business venture with public investors involving selling the company's common shares with the idea of bringing in extra funds to support the company's growth. This method involves affiliation of investment banks as underwriters for the undertaking. The company plays the role of the issuer and will draw out a suitable scheme providing personal data involving the company's history, financial status, etc, which will be sent to the Securities and Exchange Commission for validation.

On earning the Commission's consent, the cost of these common shares are decided and are ready to be advertised among prospective buyers among the public.

The depreciation of the market does not originate around the US legislation, but during the IPO procedures. The demeanor of a successful investor is directly related to this. Business crimes have changed the face and procedures involved with IPO's and the defaulters never profit hanks to the unlawful methods they adopt to achieve success.

The following are examples of backsliding during the IPO process:

- AOL Time Warner was faced with losses during the free riding period of their IPO process causing them to introduce new ventures as compensation which differed from the signed agreement regarding the costs of the common shares.

- Enron faced more serious accusations on many of their executives involved in the IPO process for using unlawful tactics to gain profit like unrecorded alliances, bribes in exchange for international agreements and manipulation of the Texas and California energy markets. These Executives were sentenced by the court, exiled from their positions as investors. Anyone aspiring to become a notable investor must keep this in mind and play the market the way it should be instead of seeking alternative methods.

There's more to development than just financing and construction for a commercial real estate investor. Other factors that directly impact how your development projects work include "playing nice with the neighbors", which, when it comes to development, means being aware of zoning and other considerations when examining a parcel of land.

Zoning is the short hand term for "civic planning and development", the process by which your local municipality encourages (or discourages) patterns of growth, including residential, commercial, retail and industrial. Zoning ordinances are one of the most contentious political issues on the local level, and changes to zoning ordinances often times require campaigning that lasts for years. The reasoning for this is that the city has to represent the goodwill of everyone who lives there, and no matter how innocuous a zoning change proposal is, someone will find that it interferes with what they want to do with their parcel of land. The city will want to have an oar in the process, because land zoned for commercial, industrial or retail use generally merits a higher property tax rate (which drives most city funding) than residential or "yet to be determined" zoning.

Zoning impacts everything, and it even covers vacant lots (or, more specifically, it especially covers vacant lots). It is the primary tool for setting property tax rates, and will impact subdivision rights. Zoning will determine where road easements and utility hookups are laid out, and to what standards, and it's pretty much the blueprint the city has built for regulating its own growth. Because each city and county does its own zoning work, each one has idiosyncratic zoning regulations; don't assume that a zoning code means the same thing in each municipality. Always take the time to learn what the local zoning regulations are. As an added benefit, this gives you insight into the zoning process for the city you're in. If it's ever necessary, this will tell you how likely it is that you can get zoning regulations changed.

Beyond the zoning requirement, you also need to look at how your plot of land fits into the overall pattern of land usage. In order to develop a plot of land, you need to have legal ownership and legal access. Some plots of land are completely land locked, and different municipalities have different standards for what constitutes legal access. In more rural areas, a dirt road is enough; in others, you have to have an improved "all weather" road to maintain legal access.

You'll also want to triple check that your intended use of the land is permitted, and that the topography will work for what you intend to do with it. Is there adequate drainage, for instance? If there isn't, what directions can you landscape drainage to, and is that sort of work permitted by the land usage board? Before you break ground or move earth, check the county assessment records on the land, for what prior owners have built or had issues with, and hire an environmental expert to go over the plot carefully.

Is your plot zoned for the kinds of businesses and buildings you want to do, and are there any lingering environmental issues hanging over the plot? What sort of infrastructure hookups are available, such as sewer, water and utility connections? If you don't have a sewer hookup, can you use a septic tank? Is the land cheap because there's something that makes it unusable? These are all things to investigate before making your close offer on the parcel.

What existing structures exist there now? Are they useful to you? Will their foundations be something you can re-use if you have to tear them down, or will those have to go as well? For that matter, what kinds of structures are on neighboring plots? How are the neighboring plots zoned? These all impact what the value of the property is now, and how it'll change over time. Don't underestimate the effect of neighboring plots on the value of your real estate investment.

If you're going to be developing subdivisions as a commercial investor, look carefully into the local ordnances for them. As always, use the standard, common sense approach for making a real estate investment: Look at how much the land is worth now, decide if you're going to buy and hold, or buy and flip, and look at the long term demographic trends before you buy. For example, if you know a business is moving into that part of town, ask what kind of jobs they offer and at what pay scale, and consider investing in housing at the appropriate price points and rental levels.

Likewise, if you know a subdivision is going up, buying up the handful of plots within easy walking and driving distances zoned for retail and commercial use can quickly have those plots rise in value, because they're the logical places for people to shop, go to work, and take in leisure time activities. (This is the fundamental driver in the placement of strip malls and small movie theaters; the plots are sold in central hubs that have subdivisions and apartment housing zone around them, to become a focus for jobs, entertainment and shopping.)

All of this starts out with due diligence paid at your local city or county planning office, and finding out what plots are owned by whom, with what access, and zoned for which purposes. The city has put a lot of effort into planning it's growth, and as a commercial real estate investor, you should make the time to take advantage of it.

by A. Bohart

Tax free municipal bonds are an alternative investment for those looking to diversify their investment holdings in a tax-free manner, but they may not be right for everyone. There are several things to consider when making the decision on whether or not to invest in these. Let's take a look at some of those considerations.

First, let's take a look at just what a tax-free municipal bond, or MUNI for short, is. A MUNI is a bond issued by a city, state, or county government to finance some new taxpayer-financed project. These projects could include things like highway improvements, new schools, and new libraries. The income received from these bonds are always free from Federal income tax, and may be free from state income tax as well, provided the investor resides in the same state as the source of the bonds.

How do you know if MUNI's are right for you? The short answer is, the higher your income tax bracket, the more benefit you will receive from a tax-free bond. If you were to compare a taxable bond with a tax-free MUNI, then you would divide the tax free yield of the bond by 1 - your income tax bracket. For instance, if your MUNI is a 5% yield bond and your income tax bracket were 15%, then you would divide 5 by .85 to get an equivalent yield of 5.88%. So, an equivalent taxable bond would need to yield 5.88% to enjoy the same income benefit as the tax-free bond.

Another motivation for investing in tax free municipal bonds lies completely outside of the financial arena, and that is the desire to help support local projects. By investing in your city's projects, you can support your local economy and overall community. The income derived from the bonds can be the icing on the cake in this particular instance!

A final thing to consider when deciding on whether or not to invest in any particular tax-free MUNI is the financial solvency of the issuing entity. In general terms, financial analysts recommend that the issuing party should have the following minimum characteristics:

1. The population of the entity should be at least 10,000
2. The entity should have a diverse economy with many sources of income - No one company towns here.
3. The entity should have a long history of prompt interest payments on it's bonds.

Any bonds that fall short of these minimum criteria should, for the most part, be considered far too risky for the average investor's portfolio.

As with any investment, careful consideration and research should be done before making the final decision to invest. Tax-free municipal bonds can be a great way to earn some non-taxable income, provided you do your homework. So, are tax-free MUNI's right for you?

by John Bougearel

Monday December 10 2007 John Bougearel www.successfultradingtips.com

New Frontier Energy - Summary The company is accelerating shareholder value primarily by rapidly building its proven and probable reserves, rapidly increasing production. The foundation for rapid future growth for many years to come is now in place and set to commence in 2008.

NFEI Profile NFEI is an oil and gas exploration company out of Denver with interests in three properties, 34,500 acres in the Slater Dome Field, 4,000 acres in the Flattops Prospect, and 29,000 in the Focus Ranch Federal Unit. All are located near the Colorado and Wyoming border in the Sand Wash Basin. NFEI is focusing on expanding their CBM gas production at Slater Dome. NFEI is the operator of the Slater Dome field with a 66% working interest. To date, as of November 2, 2007, there are 17 wells that have been drilled, with two more to be completed by the end of 2007. The company also owns a majority interest in an 18 mile gas gathering line that delivers gas from Slater Dome to the Questar transportation hub.

NFEI Management Management has extensive O&G experience, a successful track record cultivating institutional shareholders, and raising $28 million to fund development. Raising capital has not proved to be an obstacle for the company.

Proven Reserve Report at Slater Dome Field �" Feb 2007 1. 12 BCF �" estimated total proved reserves net to NFEI with 47 locations 2. 17 BCF �" estimated probable resources net to NFEI with 53 locations 3. 301 BCF estimated possible resources net to NFEI with 531 locations 4. 330 BCF �" total proved, probably and possible resources net to NFEI with 631 locations

Project Potential at Slater Dome Could Exceed 600+ Wells in 15 Yrs The company believes there is a large drilling inventory of 600 + wells at Slater dome over 15 years @ 15-20 wells per year. The gathering line has excess capacity already in place.

Corporate Milestones 1. Developed Slater Dome from prospect into a core producing asset with 12 BCF proven reserves to NFEI’s interest as of Feb 28, 2007 2. Constructed an 18 mile gathering line from Slater Dome Field to the Questar tap in Baggs WY in June 2005. 3. Became Operator of Slater Dome Field in 06 and doubled their working interest to 66%. 4. Achieved a 400% increase from 250,000 cubic feet per day in 2006 to over 1,000,000 or 1 mcf per day in 2007 in the Slater Dome Field’s gas production after completing the 2007 workover program in the first half of 2007. The company expects to achieve another 300% increase to 3 mcf per day in production from these existing wells when a permit granting additional compression is received in Feb 2008. 5. The 2007 drilling program includes 8 new wells, four of which will be connected to the pipeline by year end 2007. Initial production from these new wells is expected to begin in January 2008. 6. Doubled proved reserves every year since establishing production in 2005. With the eight new wells drilled in 2007, the company believes total proven reserves will double again to 24 BCF by Feb 2008.

Summary of Capital Structure 1. 9.78m shares of common stock outstanding 2. 24.92 million shares of Series B&C convertible preferred stock 3. 34.7 million shares total outstanding fully diluted after effect of preferred equity conversion. 4. Fully diluted, shareholder equity based on the recent $1.19 closing price in early November 2007 gives NFEI a $41.3 million market capitalization

NFEI’s Intrinsic Value based on the Industry’s Valuation Calculation shows its Current Stock Price around $1.20 to be significantly undervalued 1. 2007-08 24 BCF Proven Reserves in the ground at $2.50 MCF = $60 million 2. Gathering line and system $5 million 3. Acreage position = $40 million 4. Total = $105 million 5. Fully Diluted common shares before warrants $34.7 million. 6. Pro Forma Value per common share before warrants = $3.02

Other Company Facts 1. Long Term Life Expectancy of producing wells range 20-25 years 2. Current producing wells in the Slater Dome Field are producing 1 mcf per day at Slater Dome, and NFEI expects to be triple or quadruple that to 3 to 4 million cubic feet per day by February 2008 when the permit is granted for additional compression. 3. The Rockies Express 1st phase pipeline from Wamsutter WY to Mexico MO is expected to be completed in January 2008 4. The Rockies Express 2nd phase pipeline from Mexico MO to Clarington OH is expected to be completed in January 2009

Balance Sheet as of Aug 31 2007 Cash stood at $7.4 million. Total current assets stood at $9,069,857. Total Current Liabilities were $2,540,113 Total Current Assets to Total Current Liabilities = 3.56

Revenues minus Operating Expenses for Six Months Ending August 31 Total operation revenues 290,384 Total operating expenses 3.321 m Loss from operations (3.03m)

6 Months Revenues in First Six Months of FY Feb 2008 Ending Aug 31 2007 Revenues for the six months ended August 31, 2007 were $290,384 compared with $129,376 for the six months ended August 31, 2006, an increase of $161,008 or 124.45%.

Estimated Production Increases for the first six months of FY Feb 2009 NFEI is producing 1 mcf/day in the Slater Dome field from its existing 6 producing wells. Production from those six wells is expected to increase 300% or 400% to 3 mcf or 4 mcf by February 2008 when the permit for additional compression is granted according to CEO Paul Laird. Investors should recognize that this increase in production resulting from permit granting additional compression is a forward looking estimate based on assumptions that the company believes are reasonable (see company’s Nov 8 2007 powerpoint presentation.)

CEO Paul Laird suggests actual daily production figures in the first half of the new fiscal year could surprise on the upside based on the new production that will be coming online from 6 new wells derived from the 2007 drilling programs. But, since “we just don’t know” until we get the gas actually into the pipeline from the 2007 drilling program what additional production might be realized, Paul is refraining from making any forward looking production estimates resulting from the 2007 drilling program.

Extrapolating Six Month Revenue Projections for first half of the New FY Ending Feb 09 Extrapolating forward what role this increase in production resulting from the additional compression will have on revenues in the first 6 months of the new FY ending in Feb 09 can be done using a conservative estimate of the average forward price/mcf that NFEI will receive each day from the Questar Hub.

But first a little background on the lack of infrastructure that has been up until now suppressing Rocky Mountain natural gas prices and the new “Rockies Express Pipeline” (REX) coming on line in January 2008 that will allow natural gas prices recognized by nat gas producers in the Rockies to rise.

The New Rockies Express (REX) Presently there is no natural gas pipeline going further East from the Rockies beyond Cheyenne Wyoming. This lack of infrastructure has been the primary problem in the Rockies suppressing natural gas prices in 2007 well below that of the nationally recognized Henry Hub prices. Therefore, revenues recognized by Rocky Mountain natural gas producers (including NFEI) in 2007 have been adversely affected by this situation.

That all changes in January 2008, when the new Rockies Express pipeline (REX) begins delivering natural gas from Wamsutter WY East all the way to Mexico MO. The following year in 2009, the Rockies Express Pipeline (REX) will extend as far as Clarington Ohio. This event will move Rocky Mountain natural gas pricing closer to the higher Henry Hub pricing in 2008 and so NFEI expects to realize a higher price per mcf in the first half of the upcoming FY than in the previous year. Kinder Morgan, Conoco Phillops and Sempra Pipelines have all teamed up to

“build one of the largest natural gas pipelines ever constructed in North America. The 1,678-mile Rockies Express (REX) project will provide valuable infrastructure allowing producers in the Rocky Mountain region to realize full value for their commodity by giving them the ability to deliver natural gas to attractive markets in the Midwest and eastern parts of the country.

The initial 136-mile segment of the pipeline from the Meeker Hub in Rio Blanco County, Colo., to the Wamsutter Hub in Sweetwater County WY, [was] completed for service in February 2006. Construction on the 191-mile portion from Wamsutter to the Cheyenne Hub in Weld County, CO., began in July 2006 and placed in service on February 14, 2007. The 713-mile REX-West segment of the pipeline, which runs from the Cheyenne Hub to Audrain County, MO., was authorized by FERC April 19, 2007 and is projected to be in service by January 2008" �" Kinder Morgan

The REX PIPELINE

Rocky Mountain Infrastructure and Natural Gas Pricing - 2007 vs 2008

On November 2 2007, the 12 month average forward price indication on Natural Gas prices at the Questar Hub (where their company’s Slater Dome Gathering line delivers to) was $6.85 based on figures abstracted from the Questar Pricing Index.

To calculate potential revenues recognized in 2008, rather than using the 12 month forward $6.85/mcf average price for the Questar Hub, again CEO Paul Laird suggests using a more conservative $5.50/mcf to estimate forward revenues in the first half of their new FY ending Feb 2009.

Assuming the conservative production estimate of 3mcf/day is recognized at an average $5.50/mcf. 1 mcf/day at $5.50 = $5500/day x 3mcf = $16,500/day x 182 days (one half year) = $3,003,000 divided by their 53.3% net working interest in the Slater Dome field = $1,600,599. Total six month revenues in the first half of their new fiscal year could increase 550% from the first 6 month revenues in the previous fiscal year.

This potential increase in revenues to $1.6 million will go a long way towards eliminating the $3.03 million loss from operations in the first half of FY 2008 ending August 31st 2007. And, as pointed out above, revenue surprises could be to the upside from possible further increases in natural gas production. With a current market cap of $11 million priced at $1.15, NFEI’s trailing Price to Sales multiple is approximately 37 undiluted. NFEI’s estimated forward P/S multiple fully diluted is close to 10 at the current stock price.

Business Plan for Upcoming FY ending Feb 2009 NFEI’s plan of operations for the twelve months call for them to drill up to 4 more wells at Slater Dome Field and to drill two wells at the Flattops Prospect in the summer/fall of 2008.

NFEI also plans to test the Niobrara and Frontier formations in the Focus Ranch Federal 12-1 well in the Unit. Also, they intend to acquire acreage in the Denver Julesberg Basin and attempt to obtain a promoted or carried working interest as well as a prospect fee. Additionally, they plan to evaluate opportunities to acquire interests in other oil and gas properties.

NFEI believes that the plan of operations for the next twelve months will require capital of approximately $2,000,000. To the extent that additional opportunities present themselves to the Company, the Company may require additional sources of capital to participate in these opportunities. We expect that working capital requirements will be funded through a combination of our existing funds, cash flow from operations and issuance of equity and debt securities. Liquidity and Capital Resources NFEI’s working capital requirements are expected to increase in line with the growth of the business. The company believes their capital requirements will continue to be met with additional issuance of equity or debt securities as well as traditional bank financing

Advantages Investors Seek in Unconventional Resource Plays 1. Repeatable low risk development drilling 2. Low development costs - $0.29 to $.60/MCF 3. High probability of success = 95% 4. Long term productive wells 20 - 25 years 5. Predictable annual production & reserve growth 6. Field size typically grows over time - 10’s Bcf to Tcf’s

Technical Outlook

Technical Outlook on Stock Price

* bearish price trend since peaking at $3.25 in Sept 05 * Bearish price momentum indicator bottomed in October 2006 * Price momentum indicator almost turned bullish a year later in October 2007 * Volume accumulation indicator turned positive since June 2007

Technical Summary Bearish price momentum bottomed in October 2006. Price bottomed 4 months later in Feb 2007. Since Feb 2007, price has been range bound and compressed. Price compression will at some point lead to a price breakout. Volume precedes price and is a leading indicator. Volume characteristics turned positive in 2H 2007. Presumably price will turn positive in 1H 2008.

Forward looking statements pertaining to revenue projections for the first six months of the new fiscal year ending August 31 2008 are my own and not that of the company. Those projections are based solely on the new infrastructure that REX will provide natural gas producers in the Rockies and on the permit granting additional compression for the existing producing wells. Other contributing factors may cause actual revenues to fall short of or exceed this projection.

Follow up reports on this company will be done when the Feb 2008 Reserves Statement is released in March and again after the 10-Q reports for the three months ending May 31 2008 and six months ending August 31st 2008 are filed in July and October respectively.

I own shares in this company.

Sources:

CEO Paul Laird

10-Q Filing October 9 2007

http://nfeinc.com/

http://nfeinc.com/pdf/NFEI_inv_presentation11-08-07.pdf

http://www.kindermorgan.com/business/gas_pipelines/rockies_express/

by Jeffrey Voudrie, CFP

The Federal Reserve cut interest rates again yesterday and will be likely to do so again in six weeks. Yields on 5-year Certificates of Deposit are down to around 4.25% and falling. On top of that, the mortgage meltdown has hindered the performance of the entire stock market. If you are retired and need your investments to generate income you don't have to settle for these paltry rates and dismal returns. Read on to learn how you can get rates that are double that!

I have written several articles on various types of investments that can generate a dependable income stream that is far higher than that paid by certificates of deposit. I've talked about income deposit securities, closed-end funds, regional telephone companies and Canadian income trusts in previous articles (you can find them at www.guardingyourwealth.com). Keep in mind that these types of investments aren't guaranteed by the government and their share value will fluctuate from day to day.

Closed-end funds make attractive income-oriented investments. Think of a closed-end fund as a pool of underlying investments. Those underlying investments can be U.S. corporate bonds, foreign bonds or even stocks. Something unique to closed-end funds is that they don't always trade at the same price as the underlying value of what they own.

For instance, a closed-end bond fund may own a pool of bonds that, if sold that day, would be worth $10 per share. Those shares don't always trade at $10. They can trade above or below that price at a premium or a discount to the fair market value of what it owns. Currently, high-quality closed-end funds that previously were trading at a premium are now trading at a discount. Some have discounts of 10% or more.

One reason why I particularly find select closed-end funds attractive is because the share price has been declining much faster than the value of the underlying securities. To me, this is an indication that the decline is a result of investor panic, not the underlying fundamentals of the fund. The yields on attractive closed-end funds have increased 2-3% with many yielding in the 9-10% range.

I also like the stocks of select regional telephone companies. Studies have been done that show how stocks paying dividends tend to out-perform those that don't over longer periods of time. That's because companies that pay dividends tend to be older and are in industries where their cash flow is more dependable.

These telephone companies have a steady, stable and growing cash flow. Think about it. Every month you pay your phone and cable bill. Things would have to get pretty bad before people allow their phone and cable to be shut off. Recent market fears have even caused the price of these stalwarts to decline. That means you can now get yields close to 10%--or even higher.

Canadian Trusts are popular among those seeking higher dividend yields. These investments are out of favor due to changes in Canadian tax laws. Those laws don't take effect until 2011 though, and even then will only have a limited impact on certain trusts. Yet the share prices of all of the trusts have declined as much as those trusts that are adversely affected. That means that high quality trusts with healthy and growing underlying businesses are paying unbelievable yields.

A company that prints telephone directories is now yielding over 7.5% and has already increased their dividend this year. There are trusts in the oil and gas sector that have shown they can weather the stress of low natural gas prices. Some are paying over 10%--some even 15%---and still they are only paying out 70-80% of the money they have available for dividends.

The key with all investments like these is to own several of them to reduce your risk. The prices will fluctuate. The prospects of individual companies can change. That's why I use groups of these in my clients, portfolios. For instance, my growth stock portfolio may utilize 10-15 different positions like those mentioned here.

So while everyone else is in a panic and rushing for the exits, I am using this opportunity to pick up investments that will give my clients a steady and growing source of income for years to come.

Finding good stocks that are able to survive stock market crash is really tough. However, these simple financial ratios can help you to discover these tough stocks. The stocks are so tough, that will only grow stronger after the recession.

Earnings per Employee

You can calculate the staff productivity by dividing the total earnings by the number of staffs. As different industries have different ratios, you should compare staffs' ability to bring value to the company in the same field. Compare yourself a bank with $12k profits per staff with another bank of $98k profits per staff, I bet you can notice the difference.

Good employees maintain the business operation, but great workers will sustain the business growth. And in stock investing, earnings growth does matter, especially during recession. Though times never last, but tough people do.

Return on Asset

ROA can be calculated by dividing the net profits by the number of assets that the company owns. It indicates how efficient the management is in turning the assets into profits. Compare with other stocks on how they do is something you should consider. Lower ROA can be attributed to not having enough expertise to manage the assets or not having the right assets in the first place.

During stock market crash, companies with the lowest return on asset (ROA) are prone to be acquired by stronger companies. Unfortunately, not all low ROA stocks hold the value they want in the eye of larger companies. Therefore, better avoid this type of stocks.

Liquidity Ratio

Liquidity ratio measures if the stock is able to meet the short term obligations. It can be calculated as current or quick ratio. Either way, it is about the liquid asset over its current liabilities. This ratio is critical during recession as the interest rate will increase substantially that time. Although Federal Reserve maintains the interest rate recently, there is no guarantee it will be the same in 2008.

Recently, I noticed some good companies holding substantial liquid assets like never before. This indicates the stocks are preparing themselves of any possibilities of higher interest rates next year, or having enough cash to buy profitable asset at cheaper price in 2008.

Either there is market crash, recession or economic depression in 2008, make sure you get ready yourself. Market crash can be bad to some, but offer great opportunities to smart investors. So, make sure you are one of them.

About the Author

By now you've seen the Chevron commercial touting their research and investment in alternative energy, including geothermal power. And even though a major oil company is just now expressing its interest, the black sheep of the renewables world is one Green Chip accepted long ago.

Geothermal , unlike wind, solar, and biofuels, rarely gets a piece of the limelight. And that's something I've not been able to figure out.

After all, it's an emission-free power source that's not affected by the shifting availability of sunshine and wind. That means geothermal is capable of being a base load power source, like coal- and natural gas-fired plants.

And as such, it's become price competitive with traditional sources of power in many areas, including the Southwestern US.

It's for all those reasons that we've been extremely bullish on geothermal stocks from the outset, boasting three geothermal plays in the current Green Chip portfolio.

Geothermal Stocks and Steam-Powered Profits

With oil having touched $92.22, renewable energy sources are looking increasingly promising. But even when oil was relatively cheap these geothermal stocks were still making their rise.

Now, with oil on the verge of $100, these plays are only going to go higher. Let's have a look.

Green Chip got in on Ormat Technologies (NYSE: ORA) all the way back in January 2005, shortly after the IPO. below...

We got in at $16.28 a share, and our readers are now sitting on gains of over 200%.

And, of course, you all know about US Geothermal (OTCBB: UGTH), one of the true darlings of the Green Chip portfolio. We alerted our readers to get into this stock back in July 2006, when the price stood at a mere $.80.

Why are Early Investors Flocking to This Spot?

A region in Minnesota holds the largest precious and base metals formation in the entire world. This represents the biggest mining investment opportunity of this decade. Go here to find out more information on the two tiny North American companies that plan on extracting these metals.

Find out how to seize this great investment opportunity

Now, with the stock holding in the high threes, Green Chip subscribers have attained gains of over 380%!

Plus, with coverage recently initiated on this stock by Pacific Growth Equities, we're confident US Geothermal will continue its climb.

We've also seen good gains from Raser Technologies (NYSE: RZ). Although this company was late to the geothermal game, our readers have seen a 90% increase in this stock over the past twelve months.

Just this week, the company announced plans to begin drilling a geothermal production well in central Utah's Escalante Desert for use in another 10 MW binary-cycle geothermal power plant. It will be the first geothermal power facility built in Utah in over 15 years, and should serve not only for electricity generation, but to power the stock higher as well.

Another geothermal stock we're looking at is Nevada Geothermal (OTCBB: NGLPF). While it's not in the Green Chip portfolio, it has been featured for gains in our Alternative Energy Trader.

The company has been announcing great performance test from their properties and estimates it can produce up to 200 megawatts of power from the land it currently holds. The Street has been responding positively to this company lately, and at such a low price, this stock certainly has plenty of room to grow.

Geothermal Stocks Haven't Played Out, So Don't Fret Just Yet

You may have seen quite a few geothermal plays that have already made significant gains. But don't worry, there are still plenty to come.

As the world continues to exploit all possible alternative options to produce power, geothermal will certainly emerge as one of the clear winners. And as long as there are profits to be made, Green Chip will continue recommending winning geothermal stocks to its readers.

In fact, we have our eyes on a few up-and-coming geothermal companies right now.

Be sure not to miss the next round of geothermal stock gains. As you've just seen, the three geothermal companies in our portfolio have already netted gains of 200%, 380%, and 90%, respectively.

Until next time, Nick

http://www.greenchipstocks.com/articles/geothermal-stocks-investing/168

DOW Directions: 12-11-07 December 10th, 2007 by Uncle Steve DOW Directions 12-11-07 (Tuesday): A Daily Technical Analytical View of Stocks, Furtures, Eminis and Forex for online and day traders.

DIA (Dow ETF): Fed Firestorm! Here comes da cut, here comes da cut!

The Dow closed up over +100 points on Monday. After plowing through the 50% retracement level, then pausing on Friday to catch its breath, the market surged once again. In fact, the StoRSI, our momentum oscillator, has now moved back over its trigger level and has stayed there for the past three sessions. Strong markets can float a momentum oscillator, above the normal trigger, for extended periods of time.

The direction of the T8, our exponential moving average and trend definer, continues to point up…with an attitude. The trend was down for 30 trading days, prior to the last two weeks. Rallies back to the T8 are opportunities to BUY the market. Remember, as the market starts to climb: the steeper the angle of the T8, the further this market can rally. This is a market in its early bull stages. Take advantage of the first retracement to the T8. I hate to repeat myself, but the above paragraph is worth reminding us these very important reminders.

Monday’s big strong white candle is a sign of a strong market in a strong uptrend. What we must be monitoring for is a significant candle that has a high probability of stopping direction. As soon as I see that candle, I will issue the caution in a loud announcement.

***Volatility Alert: During the third week in July, volatility returned to the major stock indices. For approximately four years, the markets have had low to very low volatility. This significant change has ushered in swings of 100, 200 & 300+ points, sometimes on a day-to-day basis. Stock indices tend to be either volatile, or not, for three to five years at a time. Expect continued volatility. This volatility cycle is in its early stages and we continue to believe it is here to stay.

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