The promise of getting rich quick never goes out of style. Whether it's the latest side-business scheme or the perfect penny-stock pitch, many people are vulnerable to questionable and risky strategies that hold even the possibility of producing great wealth.
Unfortunately, even legitimate and useful tools to help people with their investing are prone to misuse, and recently, options trading has gotten a lot more attention, becoming a focal point for ordinary investors and the discount brokers that serve them. Let's take a look at why trading options is somewhat controversial and why you shouldn't just dismiss options out of hand.
The search for more business
An recent article in the New York Times highlighted a trend among brokerage companies, observing that some major brokers are talking about the benefits of options on stocks, ETFs, and indexes. The article called out E*TRADE Financial (NASDAQ: ETFC ) , TD AMERITRADE (NYSE: AMTD ) , and Charles Schwab (NYSE: SCHW ) as advertising the rewards of options trading, noting that trading in options and other derivatives like futures contracts have made up an increasing part of brokerage firms' businesses. Indeed, those companies have deliberately sought to increase their exposure to options, with TD AMERITRADE's 2009 purchase of thinkorswim and Schwab's 2011 buyout of optionsXpress having greatly enhanced their ability to serve sophisticated investors.
10 Best Long Term Stocks To Invest In Right Now: Nicholas Financial Inc.(NICK)
Nicholas Financial, Inc., through its subsidiaries, operates as a specialized consumer finance company. The company engages in acquiring and servicing contracts for purchases of new and used automobiles and light trucks. It also makes direct loans and sells consumer-finance related products. In addition, the company engages in developing, marketing, supporting, and updating industry-specific computer application software for small businesses located primarily in the Southeast United States. As of April 5, 2011, it operated 56 branch locations in 14 Southeastern and Midwestern states. The company was founded in 1986 and is headquartered in Clearwater, Florida.
Advisors' Opinion:- [By Lauren Pollock]
Prospect Capital Corp.(PSEC) said it agreed to buy Nicholas Financial Inc.(NICK) in a stock deal valued at about $199 million that the investment firm expects will expand its presence in the car-loan industry. Prospect Capital is offering $16 a share for Nicholas, a 4.5% premium over Tuesday’s closing price. Nicholas Financial shares edged up 2.8% to $15.70 premarket.
10 Best Penny Stocks To Own Right Now: Alpha and Omega Semiconductor Limited(AOSL)
Alpha and Omega Semiconductor Limited engages in the design, development, and supply of a range of power semiconductors worldwide. The company offers power discrete product line comprising trench MOSFETs, electrostatic discharge, protected MOSFETs, and SRFETs; and power ICs. Its products are used in notebooks, netbooks, flat panel displays, mobile phone battery packs, set-top boxes, portable media players, and power supplies. The company sells its products to distributors. Alpha and Omega Semiconductor Limited is based in Hamilton, Bermuda.
Advisors' Opinion:- [By Tim Melvin]
This split among industry segments has created some value opportunities as those companies with high exposure to PCs are very cheap. And while the move towards smart phones and tablets may continue, the PC is not dead — demand will pick up along with the economy.
Alpha and Omega Semiconductor (AOSL)Alpha and Omega Semiconductor (AOSL) is a designer, developer and global supplier of a broad portfolio of power semiconductors. The portfolio of power semiconductors includes more than 1,400 products, and has grown rapidly with 195 new products introduced last year alone. Its semiconductors are used in a wide range of products, including things like personal computers, flat panel TVs, LED lighting, smart phones, and telecommunications equipment.
10 Best Penny Stocks To Own Right Now: Xinyuan Real Estate Co Ltd(XIN)
Xinyuan Real Estate Co. Ltd., together with its subsidiaries, engages in residential real estate development in China. The company?s residential projects comprise various residential buildings that include multi-layer apartment buildings, sub-high-rise apartment buildings, or high-rise apartment buildings; auxiliary services and amenities, such as retail outlets, leisure and health facilities, kindergartens, and schools; and small scale residential properties. It also offers property management and other real estate related services, such as landscaping and installing intercom systems. In addition, the company leases properties, including an elementary school, a basement, three clubhouses, five kindergartens, and parking facilities. As of December 31, 2010, it had 21 completed projects with a total gross floor area (GFA) of approximately 2,049,460 square meters and comprising a total of 23,324 units, as well as 8 projects under construction with a total GFA of 1,804,946 sq uare meters. It primarily operates in seven tier II cities, comprising Hefei, Jinan, Kunshan, Suzhou, Zhengzhou, Xuzhou, and Chengdu. The company was founded in 1997 and is headquartered in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Tim Brugger]
Having completed the repurchase of approximately $12.6 million of the $20 million share buyback program started last year, Xinjuan Real Estate's (NYSE: XIN ) board of directors has authorized the repurchase of an additional $60 million of outstanding stock, the company announced today.
- [By Benjamin Shepherd]
In the meantime though, I would avoid betting on a hard Chinese landing, a bet that has cost many investors dearly over the past few years. I would, however, avoid most of the leading Chinese real estate developers such as China Vanke (OTC: CVKEF) and Xinyuan Real Estate (NYSE: XIN) which are almost entirely dependent on the domestic markets.
10 Best Penny Stocks To Own Right Now: Kulicke and Soffa Industries Inc.(KLIC)
Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes, and power modules. It also services, maintains, repairs, and upgrades its equipment. The company operates in two segments, Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, heavy wire wedge bonders, stud bumpers, and die bonders. Its Ball bonders are used to connect very fine wires, primarily made of gold or copper, between the bond pads of the semiconductor device or die, and the leads on its package; Heavy wire wedge bonders are used in the power semiconductor and automotive power module markets; and Die bonders are used to attach a die to the substrate or lead frame, which will house the semiconductor device. This segment?s Stud bumpers mechanically apply bumps to die, while still in the wafer format, for some variants of the flip chip assembly process. The Expendable Tools segment manufactures and sells various expendable tools for a range of semiconductor packaging applications. Its products include capillaries, bonding wedges, and saw blades. The company?s customers primarily comprise semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, and automotive electronics suppliers in the United States and the Asia/Pacific region. Kulicke and Soffa Industries sells its products through manufacturers? representatives and distributors. The company was founded in 1951 and is headquartered in Singapore.
Advisors' Opinion:- [By Jake L'Ecuyer]
Equities Trading UP
Kulicke and Soffa Industries (NASDAQ: KLIC) shares shot up 8.95 percent to $13.76 after the company reported upbeat Q2 earnings and issued a strong Q3 revenue forecast. - [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, chip equipment maker Kulicke and Soffa Industries (NASDAQ: KLIC ) has earned a coveted five-star ranking.
10 Best Penny Stocks To Own Right Now: HopFed Bancorp Inc.(HFBC)
HopFed Bancorp, Inc. operates as the holding company for Heritage Bank that provides various banking products and services primarily in western Kentucky, and middle and western Tennessee. The company offers a range of deposit products, including demand deposits, time deposits, money market accounts, passbook savings accounts, individual retirement accounts, and certificates of deposit. Its loan portfolio comprises one-to-four family residential loans, multifamily residential loans, construction loans, nonresidential loans, commercial real estate loans, and land and land development loans, as well as loans secured by deposits, other consumer loans, and commercial loans. The company, through its subsidiary, Fall and Fall Insurance Agency, sells life and casualty insurance products to individuals and businesses. HopFed Bancorp offers its products and services through its branch offices located in Hopkinsville, Murray, Cadiz, Elkton, Fulton, Calvert City, and Benton, Kentucky; and in Clarksville, Pleasant View, Ashland City, Kingston Springs, and Erin, Tennessee. The company was founded in 1879 and is headquartered in Hopkinsville, Kentucky.
Advisors' Opinion:- [By Louis Navellier]
HopFed Bancorp (HFBC), at $85 million in market cap, operates 18 branches in middle Tennessee and Western Kentucky and can be thought of as poster child for what is going on in the small banking sector. An activist investor took a stake in the bank and opposed an ill-advised acquisition. Instead, he suggested HopFed management get its own house in order. Management went along and canceled the deal, instituted a stock buyback plan and doubled the dividend. HFBC was upgraded to an “A” back in May and still is a “strong buy” right now.
10 Best Penny Stocks To Own Right Now: UMH Properties Inc.(UMH)
UMH Properties, Inc. (UMH) is a real estate investment trust. The firm engages in the ownership and operation of manufactured home communities. It leases manufactured home spaces to private manufactured home owners, as well as leases homes to residents. The firm invests in the real estate markets of New York, New Jersey, Pennsylvania, Ohio, and Tennessee. In addition, it invests in debt and equity securities of REITs. United Mobile Homes was incorporated in 1968. The company was formerly known as United Mobile Homes, Inc. UMH Properties is based in Freehold, New Jersey.
Advisors' Opinion:- [By John Udovich]
Trailer parks may have a bad reputation, but Yahoo! Finance�� Breakout segment was recently touting trailer parks as a hot new investment area���meaning its time for retail investors who don�� want to invest in physical parks to start taking a closer look at trailer park stocks Equity Lifestyle Properties, Inc (NYSE: ELS), Sun Communities Inc (NYSE: SUI) and UMH Properties, Inc (NYSE: UMH). According to the segment, roughly 6% of Americans lived in trailer homes as of 2012 with the�supply of designated trailer parks being quite low because no one wants one in their backyard. Anthony Effinger, the author of another article about trailer parks for Bloomberg, was quoted as saying:
10 Best Penny Stocks To Own Right Now: Sirius XM Radio Inc.(SIRI)
Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered in Canada. The company also simulcasts music and selected non-music channels over the Internet; and offers applications to allow consumers to access its Internet services on mobile devices. As of December 31, 2010, it had 20,190,964 subscribers. In addition, the company designs, establishes specifications, sources or specifies parts and components, and manages various aspects of the logistics and production of satellite radios; licenses its technology to various electronics manufacturers to develop, manufacture, and distribute radios under various brands; and imports radios distri buted through its Websites. The company?s satellite radios are primarily distributed through automakers, retailers, and its Websites. Further, it provides music services for commercial establishments; a satellite television service to offer music channels as part of certain programming packages on the DISH Network satellite television service; music and comedy channels to mobile phone users through mobile phone carriers; Backseat TV, a service offering television content designed primarily for children in the backseat of vehicles; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and real-time traffic and weather services. The company was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. Sirius XM Radio Inc. was founded in 1990 and is headquartered in New York, New York.
Advisors' Opinion:- [By Lisa Levin]
Liberty Media (NASDAQ: LMCA) shares climbed 7.04% to $135.02. The volume of Liberty Media shares traded was 608% higher than normal. Liberty Media dropped its bid to buy SiriusXM (NASDAQ: SIRI). The company will reclassify common stock to create two groups.
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