Are you a beginning investor?

Are you a beginning investor or do you want to review the basic principles to stock investing? Vershire Research is an independent stock market research firm that focuses on analyzing American companies. Its goal is to do research accurately and that shows in its results. Vershire Research is one of the best stock research sites available for fundamental investors.

Vershire believes no other form of analysis is as reliable, effective and incisive, as fundamental analysis. Its website is designed for all those who feel the same. Its goal is to make its website the best research site for all those who want to study and invest in stocks based on no-nonsense, rock-solid, fundamental analysis.

Vershire is one of the few research firms that beat the market in terms of risk and in terms of return. It achieves this difficult task because it has a preference for dividend-paying stocks and relies on time-tested financial statement analysis.

If you like to crunch numbers, succeed in the market in terms of return as well as risk, invest using forthright principles, and utilize the incredible power of compound return, then Vershire is absolutely perfect for you.

Are you a beginning investor?

What To Do With Your Energy Stock Investments

About two years after the panic of 2008-2009, the price of oil (i.e. West Texas Intermediate crude oil) eventually recovered to a little over $100 per barrel. But since June of 2014, it has plummeted and it is currently selling at slightly under $ 50 per barrel. This fall has pushed down the prices of energy stocks, earnings, and dividends. This has compelled many investors to think over what they should now do with their energy investments and where to find the best oil stocks. Consequently, it is very instructive to understand the basics of oil and the oil industry.

Oil is incredibly difficult, time-consuming and costly to find. But once it’s found, it costs practically nothing to pump it from the ground. The price of any good or service that has huge fixed costs but low marginal costs is going to tend to be erratic.

Despite this, when the price of oil is trading near the low end of its price spectrum, there is no shortage of pessimists who believe this state of affairs will continue forever. They ignore the fact that the same forces that pushed oil to swing so dramatically in one direction will eventually make it swing dramatically in the other direction.

We are not saying the price of oil will make a roaring comeback any time soon. In fact, (despite the fact that oil is a “finite” resource) we believe the long-term price of oil will trend downward slightly. Furthermore, we still cannot find many individual oil companies that we like unabashedly.

But we are saying we are more sanguine about what is happening in the oil industry now than we were a few years ago. And these things always take years (not months) to sort out. It is always helpful to keep long-term fundamental principles in mind. And the most important fundamental principle about oil (and energy in general) that we would like individuals to keep in mind is the following.

Oil and energy are the backbone of development. Until a viable, cheap alternative is found, their demand will never end. And when a viable alternative energy is found, the best players in the oil industry will probably find it or at least assist in bringing it to market.

Therefore, you need not bail out of energy stocks. If you haven’t sold them yet, you probably should not sell them now. And keep an eye out for those very good energy stocks that get punished undeservedly just because they are in an industry that is currently out of favor. And if you would like to see the specific oil stocks we are highest on, go to our Best-Stocks-to-Buy-Now page.

What To Do With Your Energy Stock Investments

Some Important Investment Rules for Stock Market Investors

Have you seen someone around you making good returns form his investment in the stock market? Have you been inspired by him to invest like him and make more money? If yes, here are some important rules of stock market investing that you need to understand and keep in mind before entering the market as an investor.

Do not be greedy. Bulls and Bears make money, while pigs are slaughtered.

This is a quite famous saying in the stock market. What it means is that excessive greed is a bad thing, and investors should devise a sensible and realistic investment plan.

Do not invest in something that you do not understand.

How can you invest in the stock of a company about which you know little or nothing? If you are making an investment just because you have seen the price of that company’s shares growing, you are making a big mistake. By chance, you may make a profit from these investments in the short term, but you will fail in long term.

Do not be influenced by hype.

A smart decision is never based upon hype; rather it is always based on facts. Never be influenced by hype in the market. Spend time on the best stock research sites; they are a treasure of valuable information regarding the stock market. The best ones will help you avoid market hysteria and make sensible decisions.

Keep your investment plan flexible.

Do not devise an investment plan that is unable to take on tough market situations and that does not have any room for any kind of modification or improvement as per the demand of the time. Your investment plan must be very flexible, and prepared keeping not only the present but also the past and future into account.

Diversify your investment.

It is hard to make a great deal of money quickly when you diversify. Consequently, it is incredible how many individuals buy just a few stocks in an attempt to “make some real money.” This is a mistake.

Putting all your money in just a few investments is always considered a bad thing by the best and most successful market experts. Most of them advise investors to diversify their investments.

Taking care of these points will help you in making the right investment decisions. So, memorize them and keep them in mind while stock investing.

Some Important Investment Rules for Stock Market Investors

Identifying the Best Cheap Stocks to Buy Now

Identifying the best cheap stocks to buy now usually means identifying the best value stocks. And the best and simplest way to identify the best value stocks is with the earnings yield.

The earnings yield is a close cousin of the more popular price-to-earnings (P/E) ratio. The earnings yield is simply the inverse of the P/E ratio. It is earnings divided by price, E/P.

The earnings yield is superior to the P/E ratio because (unlike the P/E ratio), if earnings are ever negative or zero, it will not give an undefined reading. Unlike the P/E ratio, the earnings yield is linear by nature, and as a result, it does not give misleadingly high or low numbers.

Furthermore, to generate the earnings yield, instead of using the earnings attributed to the equity, it is usually best to use the earnings attributed to the entire company (i.e. operating earnings) and then divide this number by the value of the entire company (i.e. the enterprise value).

This “enterprise-value-based earnings yield” gives a more accurate and impartial reading of the price of the entire company. And it even gives a more accurate reading of the price of the stock. If you would like to learn how, go to “How to Invest in Stocks” page.

To see more information on the best cheap stocks to buy now and the best value stocks, click the link below.

Best Cheap Stocks to Buy Now

Identifying the Best Cheap Stocks to Buy Now