AAII - West Suburban Sub-Group in Naperville, IL . . . Newsletter & Information Blog

Friday, January 21, 2005

News That You Can Use!

As a follow-up to last evening's meeting, I am pleased to inform you that we now have a featured speaker promised from the CBOE who will speak to us about "Beginning With Options" - and this will be at our meeting on April 21st!

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Many thanks to member Erik Berg for suggesting the "Dividend Discount Model" Web site which you will find listed in our "Links" section under "Dow Dividends."

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For those of you who invest in Mutual Funds but may have missed the recent Lipper Quarterly Mutual Fund Guide in Barron's, there is available now the latest issue of Forbes magazine (January 31, 2005) which incorporates Forbes' "2005 Fund Guide" that rates 1,000 funds.

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Ever wonder whether or not you or some member of your family might be able to lay claim to some "long lost" funds?... Well just in case you do harbor such thoughts, there is a place on the Internet where you can search for such items as lost bank accounts and/or CDs; lost stocks, bonds and mutual funds; uncashed checks and wages; even lost utility deposits. The place I speak of is a database established by the National Association of Unclaimed Property Administrators. This site is absolutely free, and you can access it from our list of "Links" where it appears as "NAUPA."

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And finally, we read in Business Week magazine (12/27/04 - page 74) where it is suggested that the stock market will very likely be led during 2005, by companies that have consistent earnings growth, as well as strong balance sheets with a healthy cash flow and low debt. The reasoning here is the fact that cash-rich companies are more likely to outperform cash-poor companies due to a climate of rising interest rates. Since weaker companies need fresh capital in order to stay in business, but the rising interest rates make capital more expensive, this in turn will have the effect of dampening their earnings. And what may also prove to be true this year is that companies with strong cash flow and solid earnings tend to raise their dividends, which adds extra appeal to all investors!

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