Rogue Investor

Rogue Investing Report Issue 1

Hi. I want to personally thank you for purchasing my product, Rogue Investor. Look around and I think you will agree that we have entered an era where it is very difficult to trust financial professionals. Now, more than ever, it is clear that you need to take responsibility for your own financial success. I hope the information contained in Rogue Investor will help you make sound financial decisions on your own.

As a reward for doing business with us, and to better serve you, I am sending you free of charge this monthly investing report. Because this is the first issue of the Rogue Investing Report, I welcome your feedback so I can better serve you in the future. 

Thank you,

Bryan Rundell
bryan@rogueinvestor.com
 

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ROGUE INVESTING REPORT
Take control of your financial future!
Issue #1: March 12, 2002
Publisher: Mind Like Water, Inc.
http://www.rogueinvestor.com 
newsletter@rogueinvestor.com 

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Table of Contents
1. Feature Article: What is the Spread?
2. Company Profile: Hospitality Trust Corporation (HPT)
3. Tip of the Month
4. Questions and Answers

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Feature Article: What is the Spread?
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In theory, the price you can potentially buy or sell a stock for at any moment should be the same. In practice, however, they are different. This difference in the buying and selling price of a stock represents the commission that you pay to the market makers for the transaction to happen, and is called the spread. Think of it as the tip you leave for the financial service rendered. This commission is different than the typically fixed commission you pay to your brokerage firm.

Generally, the more volatile the stock price and the market is, the larger the spread. Several years ago, Nasdaq was sued for letting spreads on stocks get too large. To rectify investor concerns, most stock exchanges are moving to a system where stock prices are tracked in dollars and cents, not fractions. However, it is still common to find companies with a spread of several dollars or more, especially on Nasdaq.

The verdict: A small difference between the buying and selling price of a security is normal. A large difference between the buying and selling price of a security is not normal, and usually disappears after volatility decreases. 

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Company Profile: Hospitality Trust Corporation (HPT)
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Real estate investment trusts, or REITs for short, are a largely undiscovered financial safe haven for patient investors. REITs represent pools of real estate investments that were created so individual investors could participate in owning real estate properties with minimal capital. REITs typically concentrate their investments in apartments, shopping centers, office buildings, hotels or other commercial property. Because REITs have to pay out 95 percent of their income every year to shareholders, REITs typically have high dividend yields (7 to 10 percent is common) and limited volatility. HPT is a REIT that owns a chain of hotels. HPT has low debt, a good dividend yield and a consistently favorable operating history. I have owned HPT for several years, and the management team seems savvy at operating the company and buying new properties.

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Tip of the Month
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Your best plan of action is to be very patient when buying or selling a stock, and to make sure the spread is small before you act.

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Questions and Answers
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What is your biggest financial frustration? 

We'll share some of your answers in next month's issue.

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Disclaimer: There are no guarantees in investing. I make no assurances regarding the investment information presented in the Rogue Investing Report.

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http://www.mindlikewater.com 

 

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