Journal and courier local editor phillip a. f1qrini Phone 420-523 1 Fax 420-5246 E-mail fiorinijcyahoo.com Journal and Courier online: www.jconline.com i 3 I rs i i i SEPTEf'CEH 17, 2051 1 What Is This Thing Called The Motley Fool? Remember Shakespeare? Remember As You Like It? In Elizabethan days, Fools were the only people who could get away with telling the truth to the King or Queen. The Motley Fool tells the truth about investing, and hopes you'll laugh all the way to the bank. The Motley Foo Our Mission: To Inform, to Amuse, and to Help You Make Money Buying Up Banks In 1995 1 became aware" that a lot of smaller banks were being bought "speculative" stocks. These are typically young, obscure and risky companies, many of which promise great things but have yet to prove themselves.
"Growth" stocks are growing faster than the market average. They usually don't pay any dividends, as they need their cash to continue growing. Their stock prices often go Kinds of Companies Here are some definitions of different terms you may have heard describing various companies and their stock. "Cyclical'' companies react strongly Eyeing the Eagle Fashion is a fickle business, but apparel retailer American Eagle (Nasdaq: AEOS) has produced solid returns for investors over the last five years. The company enjoyed robust results in its most recent quarter, as the mall magnet increased sales by 40 percent over the year-ago quarter, to $292.4 million.
Despite a slnmn in fh MiHwpcf out by larger banks. I was not a wealthy person or a gambler, but after discussing the observation with my wife, we decided to invest the minimum investment, $2,500, in to economic change. During recessions, people often put off major purchases such as cars and refrigerators. Thus, manufacturers of automobiles and large up and sometimes down quickly. Aggressive investors favor growth stocks.
Some examples: Microsoft, Oracle, EMC and eBay. (Railroad and telegraph businesses were growth companies Reverse Mortgages QIIow do reverse mortgages work, and do they make sense for most people? W.H., Panama City, Fla, A With a reverse mortgage, a homeowner receives a lump sum or regular payments, based on the equity of his or her home, usually to help fund retirement. There isn't space to explain it in great detail, but here are some things you should know: Reverse mortgages are not always a good deal. The points and fees charged on them can be fairly high, and their interest rates tend to be considerably higher than those for regular mortgages. The cash flow you can expect from a reverse mortgage is determined by your home's value, interest rates and your age.
Those who are 62 years old or older and who have little or no debt stand to benefit the most from reverse mortgages. Loan programs vary widely in what they offer and how much you'll get, so shopping around is critical. Retiring the debt usually means selling the home often upon the death of the borrower. The bottom line is that reverse mortgages are generally far from the best way to finance a retirement. Consider getting a home equity loan instead.
Alternatively, you might just sell your home, move to a less expensive dwelling, and invest and live off the difference. Learn more at www.hud.gov buyingrvrsmort.cfm, sales in its stores nnen longer than a vear rrew vi by 4.6 percent and if profits soared more Fidelity's Select Regional Banks Fund. That was one of the smartest investments that I have ever made. In 1999 1 decided that most of the buying out was done and sold the shares for $12,800. Dick Francies, Englewood, Fla.
The Fool Responds: Spotting trends and taking advantage of them before the rest of the investing world catches on is a terrific way to profit. Good for you, acting on your observation and not assuming that you had to be wealthy to invest. We advocate buying stock in solid, promising companies and aiming to hang on as long as they remain promising ideally for decades. But that doesn't mean that you can't take advantage of short-term opportunities when you spot them. Do you have an appliances are cyclical.
Companies less affected by the economy are "defensive." These include pharmaceutical firms. If you're taking heart medication, you're probably not going to stop because of an economic downturn. "Seasonal'' companies experience significantly different levels of business at various times of the year. Department stores, for example, see sales surge during the Christmas season. Swimming pool companies operate mainly in the summer.
"Blue chip" companies have been around a long time and are known for being solid, relatively safe investments. They're steady growers and usually pay dividends. At the other end of the spectrum are once but things change over time.) "Value" stocks are favored by investors looking to buy the proverbial "dollar for 50 cents." These firms tend to be temporarily out of favor, with depressed stock prices. "Income" stocks may not grow too quickly, but they pay fat dividends. They're sort of like bonds, which pay you interest Traditionally, utility companies have paid high dividends.
Today many real estate companies do. People in or near retirement, relying on dividends to supplement pensions or savings, often favor income stocks. Know that a company may fall into several of these categories. Learn these terms and concepts (and drop them in conversation), and you'll be the sawiest Fool on your block. than fivefold to $0.21 a share.
While impressive, the results were in line with analysts' heightened expectations. In a troubled retail sector, American Eagle has been a survivor. Wall Street has taken notice: The stock price has quadrupled since fetching as little as $7.88 a share last summer. After flying high this past year, it seems as if the Eagle has landed, though. In the current late-summer quarter that includes the critical back-to-school shopping season, the retailer is expecting to grow earnings by only 10 percent to 15 percent.
Analysts were expecting a 20 percent jump in bottom-line profits. Long term, American Eagle has room to grow. It has about 600 namesake locations and another 110 BluenotesThriftys stores in Canada. Its lifestyle clothing has been a hit with young casual consumers. While apparel companies make for volatile stocks, American Eagle is worth a closer look.
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plus By Anne D'lnnocenzio The Associated Press NEW YORK American consumers broke away from their television sets and headed back to stores over the weekend, but their respite from blanket coverage of the terrorist attacks brought little relief to the nation's cash registers. Not wanting to indulge themselves when the nation is in mourning, shoppers spent mainly on and patriotic items like flags FREE Nationwide Long Distance Calling FREE Digital Phone Call447-1177 fice returns were about 42 percent higher at than the same time last year, $54.1 million compared to $37.8 million. In part, that reflected this year's costlier ticket prices. While theaters were relatively empty on Friday, as many people watched news coverage of the terror attacks in New York and Washington, or participated in a day of remembrance, "on Saturday, a lot of people pushed back out to go to the movies," said Rob Friedman, vice chairman of Para-mount's motion picture group. Associated Press LOS ANGELES Americans returned to movie theaters in large numbers this weekend, and new films pushed box office earnings well ahead of the same weekend last year, according to industry estimates Sunday.
The Keanu Reeves drama Hardball, about an inner-city Little League team, opened at No. 1 with $10.1 million. That nearly equaled the swashbuckling adventure The Musketeer, which debuted in the top spot last weekend with $10.7 million. Overall, the weekend box of CELLULAR CONSULTANTS. INC Steady spending by consumers has been one of the weakening economy's few supports in recent months.
But with Americans showing increasing signs of nervousness, a blow to their confidence from Tuesday's attacks could undermine chances for an economic rebound. That couldn't happen at a worse time for retailers, who see September as a kick-off point for holiday spending. Kurt Barnard, president of Retail Trend Report, based in Mont-clair, N. said holiday sales, forecast to be up only a modest 2.5 percent to 3 percent, could now be down from last year. But he cautioned, "Lots of things could change holiday prospects for the worse and for the better." Meanwhile, shoppers in New York were still trying to grapple with the devastation of their city.
Major stores like Saks Fifth Avenue and Lord Taylor stripped their merchandise from street windows. Saturday afternoon, crowds were thin at many stores like mid-town's Gap and FAO Schwarz. Macy's and Bloomingdale's were packed with stranded tourists and residents, but many were just getting away from the news. Store Hours: M-F 9am-7pm Authored Agent of Xcingular 2423 S. Earl Ave.
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Free Umimrted Nights A weekends are from tOpm to Monday through Frtday and all day Saturday and Sunday and are available Free tor length ot oontraot signed on select service plane, only. Unamrted Nights weekends may be tsrmmassd after initial tarm ot the servtca contract. Expires WJOAn. and New York memorabilia and refrained from discretionary items like apparel and DVD players. That left merchants with weaker sales from the previous weekend, though not as bad as feared.
The biggest exception was, predictably, New York, where residents are still shellshocked over the devastation of the financial district and a death toll that could reach, 5,000. Also hard hit were major cities like Atlanta and Los Angeles, where analysts said consumers are jittery about the threat of terrorist attacks in their own backyard. "I don't see much shopping to make consumers feel better," said C. Britt Beemer, chairman of Charleston, S.C.-based America's Research Group, which surveyed It's tihtiti life. Sunday's Homes Real Estate Journal fc Courier has the best real estate deals.
Beemer said shoppers in smaller markets those with fewer than 200,000 people were further removed from the terrorist attacks and more fixated on the "big-picture" economy issues and the state of the stock market, which reopens today. The big question, he said, is how military action plays out and the impact on already-shaky consumer confidence. 5,000 consumers and 65 national retailers over the weekend. "Consumers are stunned, and it is going to take them a few weeks to get back to normal." Beemer estimated that sales were down by 50 percent in New York, and anywhere from 30 percent to 50 percent in large cities like Atlanta and Los Angeles. Smaller cities saw declines of 20 percent, he said.
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