According to analysts, a deep value stock can be defined as something which is low priced in relation to the margin of safety the stock provides, to limit losses when a mistake is made. Lets get some insight into how to identify these stocks, what should be your ideal portfolio allocation and reasons behind their low valuations in the market.

SLEEPING GIANTS

They are like any other stock traded on the exchange, but there is no hypothetical understanding of them. A section of traders on the Bombay Stock Exchange even call these stocks as ‘sleeping giants’.

There are two ways in which you can identify a deep value stock.

First, what Benjamin Graham recommends for the defensive investors in his 1949 classic – that the stock price should not be more than 15 times its average earnings per share over the past three years and the overall PE of the portfolio should not be more than 13. Or

Second, the stock should be trading below its 10-year median PE. The other things to be kept in mind is to stick with companies that have a long history of consistent profit growth and steady dividend payouts and the fact that not every cheap stock would turn out to be a bargain. He believes that PSU banks like Oriental Bank of Commerce, which is trading at a PE of 5.6 with book value of Rs 240 for FY09, is a perfect example of a deep value stock. “In a growing economy like India, banks should do well as the GDP expands,” he reasons.

These stocks generally remain neglected by the stock markets. The best (or you may call it worst) part is that people know it’s a great story but still they don’t want to touch it. If one saw the real estate boom in India five years back and bought into Unitech, his portfolio returns would have multiplied phenomenally.

As far as portfolio allocations are concerned, analysts feel that an investor could invest 80% in growth stocks and 20% in value stocks (after keeping some cash balance or investments in fixed income instruments). In case of a pure deep value investor, that typically 80% the investment of investible funds should be in these stocks and 20% of the funds should be kept aside for fixed income instruments or cash balance. “However, a hybrid investor should follow a strategy in between the two. The basic principle followed is the Pareto’s principle – the 80/20 rule.

SOW TO REAP

Though opinions differ on an ideal investment horizon, most analysts agree that it should not be less than a year and which could extend up to three to five years to reap big dividends. The first thing an investor needs to do is to ask himself whether he is a speculator or an investor. “If he is a speculator, then there is no chance for him to stay in these stocks. If he is an investor, a time period of three to five years is what makes sense. However, if the stock does not give the required return even after holding for three years, there is something more than one ’s own understanding about the stock. In such a scenario, you could sell the stock and move to something else. However, if there are compelling reasons, you could continue holding the stock.

On why these stocks have ridiculously low valuations the market sometimes tends to overlook an industry. And usually these stocks are not popular with brokers. Apart from that, analysts explain that there could be reasons such as high transaction impact costs (small caps can have transaction impact costs as high as 30-50% ) and fear of uncertain events or adverse macro environment conditions such as rise in oil and interest rates, government policies, etc. You must also understand that fear always resides in the near term. And that’s why there is lower visibility of the future even though the broad picture remains intact in these cases.

UNPOLISHED GEMS

Here are some deep value stocks which experts feel have great potential

ONGC – The stock is in a sector which is very strategic in nature, has a history of good profitability and dividends and trading at ridiculous valuations.

MAHINDRA & MAHINDRA AND MARUTI – The industry is in a growth phase in India as opposed to a saturation phase in the western world – trading at a PE of around 10 for FY09

LIC HOUSING FINANCE – A company growing at 25-30% available at a PE of 7x for FY09 and EPS of Rs 55. Book value of the company in FY09 would be Rs 260 and ROE would be 20% (Assuming no dilution)

BIRLA CORPORATION AND INDIA CEMENTS – Trading at single digit price multiples for FY09. Overall infrastructure spending is close to $500bn in the 12th five year plan and that we are nowhere close to capacities that exist in China

HDIL – It is trading at a considerable discount. The infrastructure sector has strong revenue visibility, and growth opportunity in the target markets with possible value unlocking opportunity.

SBI - The stock is trading at single digit multiple for FY10E. Apart from holding largest land bank holdings, it has an x-factor too – human resource valuation

For further related articles refer to http://prajnacapital.blogspot.com

Laptops or Cell Phones for Personal Use

If you’re planning to buy a laptop or cell phone for personal use, you’ll probably want all the latest features at the lowest cost. A mobile phone will typically be priced anywhere from $300 to $4,500, depending on its features, style, brand name, etc. A laptop computer is usually priced according to the amount of memory or disc space available, key features, pre-installed programs and the brand name. Laptops are priced anywhere from $1,000 to $10,000.

If purchasing a mobile phone or laptop that’s on the high end of the price scale, you’re looking at a fairly large investment. You may not have the cash on-hand at the date of purchase. When buying a notebook computer for personal use, consider the total purchase price, the interest rates that are available at your lending institution, and the number of years you will finance. Laptops can decrease in value quickly because computers are always changing – there’s always a new feature or type of computer on the market. In reality, your notebook computer could become obsolete within a year or two!

The same is true for cell phones. They tend to become obsolete quickly as well. On the other hand, paying a little more for a cell phone you know will enjoy for many years to come may be worth financing a higher amount.

For personal use, it is recommended to finance your mobile phone or laptop only if necessary, and at the lowest interest rate possible. You may be able to take advantage of a personal loan at your local bank or credit union. Finance companies tend to be much higher in interest. If you must pay high interest, be sure to lessen your finance payment period. You’ll pay much less interest by financing for two years instead of three.

Laptops or Cell Phones for Business Use

When buying products for business, financing can be a good thing. Sometimes, paying $5,000 cash is possible, but not wise. If you have $5,000 on-hand, you could use part of it as a down payment for your notebook computer or mobile phone. The remainder can be used to do more promotions for your business, thus, increasing your profits. Also, the finance charges and depreciation value of the laptop may be a helpful tax write-off at the year’s end! So by financing, you may be able to increase business profits, buy your much-needed equipment, and save on taxes!

Before financing products such as laptops or mobile phones, speak with your accountant to find out if it’s the right decision for you. The time of year, cost, interest rate and other factors will ultimately determine if financing will benefit or hurt your business.

Products like mobile phones and laptop computers are very useful for individuals and businesses. Consider the tips above before buying a laptop or cell phone to make your investment worthwhile!

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Learn more about Financing Mobile Phones or Laptops

I am no expert in forex trading, however, a few months ago I decided to begin learning a thing or two about the subject and started trading by myself online. I did very well (or at least I thought so) because over the last few months I was getting a 6% return which is extremely good considering the lousy returns you get on a bank CD.

But since I was not investing millions at a time, I was making some good money but not as much as I wanted. That lead me to try one of those Hyips, something that thankfully went well from the beginning to the end, but never gave me peace of mind, so after a very good profit I decided I would leave it there and withdrew my money.

However, I still remained eager to place my money on something that would put it to work, so I decided to research a little bit about the so called trading robots. As you imagine, I found a lot of information about several forex systems and they all had the funniest names like assassin, killer, blade, you name it.

However, after going through many forums and reviews I narrowed down my search to a couple of systems:

• Forex Autopilot System; and
• Forex Killer

Both of these systems had a rather good name in the field, but I remained a bit undecided about which one would be best to try. I kept looking for information until landed on a website that reviewed three money making systems; two were about internet marketing and one of them was about forex (Forex Autopilot System). After reading the review I liked the fact that the system was not some guide you have to follow in order to achieve any given result, but it was actually a software that you would install in your computer and from there, it would start trading all by itself 24 hours per day.

I visited their website and read all that they had to say. After doing that I felt it was worth giving it a shot, because among other things they offered an 8 week money back guarantee, and this is the kind of thing that you have to see with you own eyes in order to make your own mind.

I downloaded the program, and I carefully read and followed all the instructions provided (which I advise you to do). I downloaded the trading platform from one of the recommended online brokers and inserted the program within the platform. Then I opened a paper money account and started testing the robot and went to bed (I let it running all night). Well by 9 a.m. when I woke up the little guy had made 6 trades for a profit of $120 with a paper money account of $3,000. I was very excited, but still I did not go crazy depositing real money; instead I waited and observed for another day.

During the day the little guy made 9 new trades for a $180. I was blown away and I kept thinking this is unbelievable, but still I let it run through the night again to see what happened. Well, by the next morning, the Forex Autopilot System had made another 6 trades for a $120 profits. That means that in just 2 days the little guy had pulled a profit of $420, that is a 14% return in 2 days!

Multiply that for about 240 business days of the year and we are talking about a 1680% yield per year! Of course, the creators of the Forex Autopilot System warn you that the little guy can have bad days, but overall it will deliver 96% winning trades.

After two days with paper money I decided it was time to go for the real thing and I deposited $500 for the Forex Autopilot System to managa. Well, I am about to finish my first 30 day period with real money managed by the Forex Autopilot System and the current balance in my trading account is $1200 and growing. The Forex Autopilot System has gotten all the trades right, and up to this date I have not seen the first loss.

This is by far the most impressive encounter I have had with any business opportunity or whatever you would like to call it. Forex Autopilot System really delivers a result you will only believe if you see it with your own eyes, and I strongly advise you do so. This is the kind of thing one usually rejects because it is too good to be true, but for once truth turned out to be as good as it sounds. Get your hands on this software, I personally guarantee you will not regret it.

You can find some very interesting information about the Forex Autopilot System at this site: http://www.specialonlinebusinessreviewauthority.com; their evaluation helped make my mind about this system.

Also I invite you to visit My Blog, as I am always posting updates about what I am doing to share with others my progress and help with any inquiries.

What do those people know that you do not know? It is simple. They have discovered an effective yet easy way to significantly increase their income and expand their bank accounts through the opportunities available with trading on the Foreign Exchange Market.

One thing you need to know right off the bat is that this trading system has really built up its reputation in the market and the field of Forex trading. It has a 92 percent successful trade rate, which pretty much tells you the results seen by most of the traders and investors who use it. Unlike many of its competitors, it does not promise that it will absolutely, without a doubt make you a millionaire or a billionaire. It does, however, promise that you will make money, and it certainly has the potential to make you millions of dollars over time (and not too much either), plus it gives you the tools and the knowledge necessary to help you do that.

You know those Forex Autopilot reviews that offer no negative points? This is not one of those. Quite simply, the Autopilot system cannot do absolutely everything for you. If you are a beginner in the Forex market, that is fine. But being a beginner is no excuse for not knowing what you are doing. You should familiarize yourself with the most basic money management and trading techniques, at the very least, before you start trading. The Autopilot gives you the opportunity to do this, on a comprehensive, real time trading demo.

CLICK HERE to find out why Forex Autopilot is the best automated forex trader on the market. Includes honest reviews and information on where to buy it.

Forex Autopilot Reviews

Hard money loans are very similar to bridge loans. Bridge loans typically have similar criteria for lending. They also have similar costs to the borrower. The primary difference between a hard money commercial loan and a bridge loan is that a bridge loan frequently refers to a commercial property or investment property that is in transition. The property may not fully qualify for traditional financing yet. Hard money commercial loans refer not only to asset-based loans with a high interest rate but also loans for a financial situation that is possible distressed. Examples of this include cases where someone is arrears on an existing mortgage or where bankruptcy and foreclosure proceedings are already in process.

Hard money mortgages, both commercial and residential, are made by private investors. They typically make loans only in their local areas. The credit score of the borrower is not important because the loan is secured by the value of the collateral property. The maximum loan to value ratio is 65-70%. This means that if a piece of property is worth $100,000, the lender would give the borrower $65,000 to $70,000. This low LTV (loan-to-value) ratio gives the lender added security in the event that the borrower cannot pay and the lender has to foreclose on the property.

Commercial hard money lender programs are similar to traditional hard money loans in terms of the LTV requirements and interest rates. A commercial hard money lender is typically a strong financial institution with the deposits and abilities to make discretionary decisions on loans that are non-conforming. These borrowers do not conform to the standards of Fannie Mae, Freddie Mac, or other residential conforming credit guidelines. Since it’s a commercial property in question, the loan does not generally conform to a standard commercial loan guideline either.

Traditional commercial hard money loans are very high risk and have a higher than average default rate. Just like in a normal commercial loan, when a property owner defaults on a commercial hard money loan, he or she can potentially lose the property to foreclosure.

For more information on hard money lending, please visit http://www.pitbullmortgageschool.com.

Joseph Devine

Personal bankruptcy cases that were filed in the first quarter of 2008 were nearly double what they were last year, and the situation is not going to improve in the foreseeable future.

Subprime loans are the most likely cause of the mortgage crisis. Subprime loans were marketed aggressively during the real estate boom between 2000 and late 2006. Subprime adjustable rate mortgages started with low teaser rates that almost anybody could qualify for and have adjusted upward to unmanageable levels for borrowers. It doesn’t take a rocket scientist to figure out that a family cannot make a mortgage payment that exceeds their net income. Selling the home isn’t an option, either, because the inflated value that they paid for the home has now adjusted downward.

There’s plenty of blame to go around. Aggressive predatory lenders were part of the cause of the mortgage crisis, but there are other factors as well. Real estate speculators saw a way to make a quick and easy buck. They bought properties at values that they knew were inflated and then sold them at prices that were even more inflated to people who under other circumstances would never have been approved for a mortgage and who should have known better than to walk into the trap.

Meanwhile, both political parties and both houses of Congress debate the issue – and debate the issue, and debate it some more. There is no real resolution for the problem in sight. The solution – whatever it is, and whenever it comes – needs to help consumers without rewarding predatory lenders or real estate speculators. It’s a tall order. Don’t hold your breath.

Milos Pesic is a Debt Management consultant who runs a highly popular and comprehensive Debt Consolidation web site. For more articles and resources on debt management, debt consolidation programs, free debt counseling and much more visit his site at:

=> http://debtpaid.info/

The statement which records the transactions at one place relating to a particular subject is known as account. The book which contains all the accounts is known as ledger and the procedure of writing up the accounts is known as posting.

The ledger is the most important book of account and is the destination of the entries made in the Journal or Sub-divided Journals. It is a collection of all the three types of accounts –Personal, Real and Nominal. If you are faced with questions like:

- How much a particular customer owes you?

- What is the amount payable by you to anyone of your suppliers?

- What is the amount of goods purchased by you during specific period ?

- How much sales you have affected during, say, last three months?

- What has been your expenditure on, say, labor during the period?

Then the quicker and easier way of ascertaining the relevant information is to turn to your ledger, find out the balance of the Customer’s A/c or Supplier’s A/c or Purchases A/c or Sales A/c or Wages A/c.

How to write Ledger

In ledger we maintain accounts. Each account is allotted one or more pages depending upon the requirement. Ledger is usually ruled in anyone of the following two alternatives. First alternative is followed in those cases where balance is required to be ascertained after every transaction e.g. Banks.

Second alternative is followed in those cases where balance is required to be ascertained only periodically, say after a month or quarterly. In your study of book-keeping and accountancy T- shape accounts will be used (alternative-two).

The transactions are entered in the ledger accounts in order of dates. Every entry must be dated which must be shown in the column meant for date. This is the first column on the left of each side of the account.

Record the relevant amount on the left-hand side of the account which, according to the journal is to be debited and record the amount on the right-hand side of the account which, as per journal, is to be credited (use ‘amount columns’ for this purpose). In ledger account each entry on the debit (left-hand) side commences with the word “To” and one the credit (right- hand) side with the word “By”. In the ‘particulars column’ reference is made to the other account involved for providing cross reference. In the ‘folio column’ would be entered the page of the journal (or page of the relevant sub-divided journal) from which entry has been posted and in the folio column of journal, the page number of the ledger is written on which the relevant account appears.

Following the above procedure of recording the entries in the ledger will in fact amount to this The account receiving the benefit in shape of cash or goods will receive the debits and the account imparting i.e. giving away the benefit will receive the credits.

The author is an engineering graduate, B.E.(Hons), and is managing his own software development firm, HiTech Computer Services, that mainly deals in accounting, billing and inventory control software for traders, industries, business houses, hotels, hospitals, medical stores, newspapers, magazines, petrol pumps, automobile dealers, commodity brokers and other business segments, website and web application deveopment for business. The software are available both for intranet and internet. These software are available for download from the website:

Evaluation version accounting software download is available at http://www.hitech-on-web.com/p10.asp

Copy of the article and full Financial Accounting Primer or Tutorial is available at http://www.hitech-on-web.com/Accounting_Ledger.asp

Visit HiTech Computer Services at http://www.hitech-on-web.com/

Simple conditions that a lender puts forth before approving a quick cash loan are:

• You should be of 18 years old or above

• You should be fully employed

• You are earning more than £1000 on a monthly basis

You can start your loan process as quickly as within a single day. BY enclosing few required details online you can start of the simple process. Take the stress out in times of financial crisis, by opting for instant cash finance. Meet your immediate financial needs such as medical bills, electricity bills, telephone bills, credit card bills, grocery bills, tuition fees, and car bills etc. The amount that you can borrow varies in accordance with the ability to repay, individual specific requirements amid other factors.

You can procure the cash only by enclosing the details of your permanent employee code and valid bank account number. Your poor credit is not a hindrance, in getting approved for instant cash finance. Have no more worries about your bad credit history.

Easily avail quick loans at user friendly terms and conditions. Make the competitive rate of interest yours today all depending upon the particulars. The repayment options are designed keeping just your urgent requirements in mind. What’s more, this option is also open to the borrowers who do not have the security pledging capacity. No more tension, if there’s no collateral to pledge.

Kirthy Shetty, Expert Author, Platinum status

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