If you know you can earn a comfortable amount of money by trading whilst you are at work and during your leisure time, why are you still waiting around? Try not to be be disheartened by the prospect of utilizing it during normally inconvenient hours, as it is not as difficult as it might look. To get rid of the headache of day-to-day trading, and make sure that you can get on with affairs that require more attention, forex trading software head and shoulders above the rest.

To earn a good living, experienced traders watch the various market trends cautiously and use the techniques that have been perfected through many years to identify the optimum deals. Most of their day is committed to guaranteeing that they obtain the most profit possible. Technology is, however, providing you with a less time consuming answer with forex auto trading software. It should be remembered that as efficient as forex auto trading is, beneficial results can only be gained if the user knows how to earn them – make a few exercise trades before starting to trade for real. That way you will be able to identify any essential modifications, and finalize your strategy before you start risking real money.

Whatever market you might need the forex auto trader system for, it has been designed to be easily customizable therefore making it simple to use. Your main area of effort is in picking out and typing in your preferences, and then you can allow the forex trader to operate on its own.

You should know about the following points. No system is guaranteed to be foolproof, so you may still suffer marginal profits or even losses. You can rely on it for implementing your requirements and needs rather than to personally watch out for market changes. Instead of praying that you have enough spare time to keep an eye on a lucrative trend, simply program the forex trader and return to your daily routine.

Bear in mind that it is not a “set it and forget it” system. So never forget to do regular checkups; your share results should speak for themselves. The forex auto trading system is ideal for helping you to easily manage your investments, but it should be stressed that it is not something that you should take for granted nor think it operates autonomously. If you’ve just entered this type of investing, do not charge in unprepared. Once you feel comfortable using the auto forex trader, however, you will never go back to conventional trading again.

A forex robot can only function as successfully as its owner will allow, however, so you should understand the following points. The Forex trader is programmed to only assist you in earning profits and minimize losses; it cannot protect and earn money for you all of the time. You can trust it for executing your demands rather than spending valuable time doing it yourself. You can trade when the market is hot, instead of waiting for when you’re available.

We recommend you keep an eye on its progress periodically, so that you are up to date with what is going on. A Forex automatic system can free you from the effort of earning your money on the exchange floor; but you still need to commit just a few minutes of your time to keep yourself aware and on the ball.

The Forex automatic trading system is ideal for helping you to manage your investments, but it should be stressed that it isn’t something that should be entered into without thought. Analyze the ins and outs of your current market, understand what’s done and how, and then set your Forex trader to follow your criteria. As long as it’s applied in the correct manner, the Forex automatic trader is perfect for trading, so why would you accept any lesser choice? Look into purchasing one today.

The fact that information appears on the Internet does not render additional credibility to the information. Be especially wary if the identity of the source is not identified.

Over the Internet, investors can purchase securities of a company directly from the company. Treat the online transaction as you would a regular investment, and make sure that the securities are registered or exempted under both federal and state law.

Alternatively, investors can trade securities through online brokers. Study and understand the terms, conditions and costs of these services, before you use them. Brokers must be licensed, and must be registered with the Securities Exchange Commission.

Finally, be very careful with information you gather from a “chat room.” It is in these “chat rooms” that persons posing as credible sources send out information to “pump” the price of a stock. Once the price of this stock has increased, they “dump,” or sell their stock at a great profit. These are called “pump and dump schemes.”

Steering Clear of Cyber fraud
The following steps, according to North American Securities Administrators Association (NASAA) and the Better Business Bureau (BBB) can help you keep on guard when you go online.

1. Do not expect to get rich quick – When evaluating an investment you have learned about online; exercise the same caution and deliberation that you would bring to any unfamiliar investment opportunity. The old rule “If it sounds too good to be true, it probably is” applies just as much to offers made in cyberspace as to those made through any other medium.

2. Download and print a hard copy of any online solicitation you are considering – This document may come in handy if problems develop later. Be sure to note the Internet address, date, and time of the offer.

3. Do not assume that an online computer service polices its investment bulletin boards – The vast majority of services take a “hands-off” approach to screening claims made in message postings, and even those that do minimal policing cannot possible keep up with the millions of messages posted each month. Remember, too, that anyone can set up a web site or advertise online, usually without any check on the legitimacy of their claims.

4. Never buy little known, thinly trade stocks strictly based on online hype – Low-volume stocks are the most susceptible to manipulation since their price can be moved through relatively small strategic trades. Even if a hyped stock starts to move up, proceed with caution – this may just be part of the overall manipulation scheme.

5. Be cautious about acting on the advice of individuals who hide their identity – The use of aliases on computer bulletin boards is intended to protect privacy, but con artists also can exploit it. People online may not be whom they claim. What may seem to be two or more different people talking up a stock may actually be a single individual with a personal interest in driving up its price through false information or baseless speculation. In addition, an impressive-looking website can be the product of a laptop computer on the other side of the world, far from the jurisdiction of U.S. law enforcement regulators.

6. Do not get taken in by claims of “inside information” such as pending news releases, contract announcements, and innovative new products – In cyberspace, practically anyone can say anything. Despite the abundance of “hot tips” littered across bulletin boards and discussion groups, it is extremely unlikely that genuine insider information will be publicly broadcasted on an investment bulletin board.

7. Be skeptical about claims that an online stock hypester has personally checked out an investment – One established tactic of investment schemers is to talk up companies, mining operations, and factories in remote corners of the country or the globe, where it can be impossible for the average investor to investigate or visit in person.

8. Take the time to investigate outside sources of information on any investment you learn about online – Check with a trusted financial adviser and always obtain written financial information, such as a prospectus, annual report, offering circular, and financial statements. Ask the online promoter where the firm is incorporated, and call the state’s Secretary of State or Commissioner of Securities to verify that information. Also, make sure that an investment opportunity and the person promoting it are properly registered with your state securities agency. In Hawaii, the agency to contact is the Business Registration Division of the Department of Commerce & Consumer Affairs.

9. If you think you have been duped, do not be embarrassed about complaining – Early action increases your chances of getting your money back and may prevent others from losing money. If you spot a potential online investment fraud, contact your state securities administrator, Better Business Bureau (808) 942-2355, or The Federal Trade Commission (415) 356-5270.

Larry Westfall is the owner www.pennystocks101.com

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It would be best to try your hand at the various forex trading methods so you will also become more familiar with how others in the business probably conduct their business. What’s unique about it is that it’s not a mechanical system nor an automatic trading program, also see more on Forex Trading Top Perfomes. When you are ready to make that final decision please visit there websites to find out for yourself. Also see more about Forex Trading Top Perfomes. Other online brokers use market makers for the execution of orders but still that will take time.

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Here are some tips that can help you get started:

If you are planning for a long-term investment, it may be wisest to go with stocks. History shows that stocks outperform other investing options over the long term. For example, from 1926 to 2004, the stock market had an average annual gain of 10.4%, compared with only 5.4% for bonds and even less for other forms of investing.

That said, stocks may not be such a good option for short-term investing. They tend to be more risky and can undergo severe losses. Unless you’re planning to keep your money there for a long time, you might not want to weather the stress of the stock market’s ups and downs. Overall, a company’s earnings are going to be the biggest player in a stock’s fluctuation.

If you’re willing to take a little bit of risk with your investing-or a lot-you probably will notice a bigger payoff. Stocks, for example, are a riskier investment than bonds. But again, stocks tend to bring in a much higher return. On the other hand, there is also the chance that your stock will dip and you may suffer a great loss. That’s all part of the game.

If you’re looking for a low-risk, surefire investment strategy, U.S. Treasury bonds may be the way to go. The government has a lot of power over these bonds. Because of this, investing in these bonds is generally considered risk-free. Keep in mind, however, that bonds don’t do so well when interest rates rise. Conversely, when interest rates go down, bond prices rise. This is particularly true with long-term bonds.

To be safe, the best advice is to diversify your portfolio. If you practice investing in a number of different areas, you are least likely to lose it all. (Remember the Enron scandal? Don’t make that mistake!) Some investments will go up, others will go down. But at least you can be pretty sure you won’t lose it all. Chances are, with a little research, some self-education, and careful investing, you’ll build your savings substantially. Happy investing!

Jeff Lakie is the founder of Investing Information a website providing information on Investing.

The Foreign Exchange Market was established in 1971 when fixed currency exchanges were abolished. Currencies became valued at ‘floating’ rates determined by supply and demand. The FOREX grew steadily throughout the 1970’s, but with the technological advances of the 80’s FOREX expanded from trading levels of $70 billion a day to the current level of $1.5 trillion.

Who Trades in FOREX?

The FOREX is made up of about 5,000 trading institutions such as international banks, central government banks (such as the US Federal Reserve), and commercial companies and brokers for all types of foreign currency. There is no centralized location of FOREX; major trading centers are located in New York, Tokyo, London, Hong Kong, Singapore, Paris, and Frankfurt. All trading is done by telephone or Internet. Businesses use the market to buy and sell their products in other countries, but most of the activity on the FOREX is from currency traders who use it to generate profits from small movements in the market.

Even though there are many huge players in FOREX, it is accessible to the small investor thanks to recent changes in the regulations. Previously, there was a minimum transaction size and traders were required to meet strict financial requirements.

With the advent of Internet trading, regulations have been changed to allow large interbank units to be broken down into smaller lots. Each lot is worth about $100,000 and is accessible to the individual investor through ‘leverage’ loans extended for trading. Typically, lots can be controlled with a leverage of 100:1 meaning that US$1,000 will allow you to control a $100,000 currency exchange.

Advantages to Trading in FOREX

Liquidity – Because of the size of the Foreign Exchange Market, investments are extremely liquid. International banks are continuously providing bid and ask offers and the high number of transactions each day ensures there is always a buyer or a seller for any currency.

Accessibility – The market is open 24 hours a day, 5 days a week. The market opens Monday morning Australian time and closes Friday afternoon New York time. Trades can be done on the Internet from your home or office.

Open Market – Currency fluctuations are usually caused by changes in national economies. News about these changes is accessible to everyone at the same time–there can be no ‘insider trading’ in FOREX.

No Commission – Brokers earn money by setting a ’spread’–the difference between what a currency can be bought at and what it can be sold at.

How does it work?

Currencies are always traded in pairs: the US dollar against the Japanese yen, or the English pound against the euro. Every transaction involves selling one currency and buying another, so if an investor believes the euro will gain against the dollar, he will sell dollars and buy euros.

The potential for profit exists because there is always movement between currencies. Even small changes can result in substantial profits because of the large amount of money involved in each transaction. At the same time, it can be a relatively safe market for the individual investor. There are safeguards built in to protect both the broker and the investor, and a number of software tools exist to minimize loss.

Ron King is a full-time researcher, writer, and web developer. Visit FOREX4U to learn more about this fascinating investment medium.

Copyright 2005 Ron King. This article may be reprinted if the resource box is left intact.

A very important investment option available for those people who are looking for retirement savings is variable annuities. The companies offering variable annuities invest through the sale of annuities in stocks, bonds, real estate or money markets. These variable annuities offer deferral tax savings by using an insurance policy. The main benefit of this variable annuity is that any income like capital gains or the interest on the underlying investment amount is not subjected to tax.

Another retirement benefit is annuity income during an entire life period, which is called annuitization. When the claimant dies, the beneficiary receives the balance left in the account. Moreover, the holder of the variable annuity has the guaranteed payment of the full principal amount upon death to the extent of insurance portion covered by the account. This is in spite of the lower market value at that particular point in time. However if the annuity holder receives the payment upon death, then it may not be beneficial if the investment was planned for retirement

Annuities retirement plans like TIAA-CREF offer lifetime incomes that can be paid to both the annuitant and the annuity partner, if it is two-life annuity. The annuitant has the benefit of systematic cash withdrawals during the annuity period. The annuity holder can annuitize a portion of the accumulated amount to have some regular income and can switch over to a lifetime income option later on. If the annuitant wishes to exchange the annuity (cashing the retirement annuities), it is advisable not to dispose of it, as it is purely retirement benefit oriented. If an annuitant decides to exchange the annuity, a brokers or insurance agents should be contacted to get a complete idea about the financial consequences of the exchange.

Cash For Annuities provides detailed information about cash for annuities, annuity brokers, annuity buyers, annuity payments and more. Cash For Annuities is the sister site of Senior Settlements Info.

Energizer’s acquisition of Schick was a steal. In 2003, the company bought Schick – Wilkinson Sword from Pfizer (PFE) for just under $1 billion. In 2005, Schick contributed just under $120 million in profit. This figure does not properly allocate certain shared costs to Schick; but, it does include depreciation expense in excess of maintenance cap ex. Therefore, I believe $125 million is a good estimate of the true economic benefit provided by Schick in 2005. Over the next few years, further margin improvements are likely at Schick; because, between product launches, fewer razors and more blades will be sold. Energizer’s cost of capital for the Schick acquisition was very low. Most of the purchase price has been refinanced as fixed debt carrying an interest rate of less than 5%.

Over the next thirty years, Energizer will become primarily a razor business and primarily an international business. When looking at Energizer today, this fact is difficult to see; however, it is an important truth. Here, I disagree with many other commentators on Energizer’s business. They are far more optimistic about the battery business and far more pessimistic about the razor blade business than I am. We both have access to the same information, so why the disagreement?

I believe Energizer’s highly profitable battery business will slowly wither away. It will remain in some form. Even decades from now, there will still be Energizer batteries sold all over the world. But, how many will be alkaline batteries?

A lot of analysts note that Energizer is particularly well positioned in the markets for lithium and rechargeable batteries, and therefore believe a transition to such batteries would not necessarily spell doom for the little pink bunny. Energizer’s sales of these products has recently been growing at a 20% clip. With so many personal entertainment devices finding their way into consumers’ hands (and under their Christmas tress), it looks like Energizer has a wonderful growth opportunity to exploit.

Unfortunately, that’s not how I see it. Energizer will look to grow its sales of lithium batteries – as it should. But, don’t let the flashy growth fool you. There are two parts to the value equation: growth and profitability.

In the long run, lithium batteries are unlikely to be anywhere near as profitable as alkaline batteries. They are more durable and less visible. This is a deadly combination for the likes of Energizer and Duracell. A battery that is bought by the manufacturer rather than the consumer is not something these companies look forward to. There is very little price competition in alkaline batteries. Energizer’s brand name and its distribution system is the key to its ability to charge high prices on alkaline batteries. Those advantages are mitigated in the market for lithium batteries.

Alkaline batteries won’t be going the way of the Dodo anytime soon. It’s important to note alkaline battery sales have not yet decreased by volume. This is as true in the U.S. as it is overseas. In fact, unit sales of alkaline batteries have consistently increased over the past few years.

This fact has been obscured by changes in the retail business. More and more customers are buying batteries in bulk. Some analysts have expressed concern. They believe this means brand loyalty is eroding. Despite being generally pessimistic about the battery business, I disagree with that sentiment.

Brand loyalty is not eroding. More people are shopping at retailers that sell in bulk. Therefore, more people are buying larger packages of batteries. There is no evidence to suggest there is a trend toward cheaper, less prominent brands. In fact, there is no real evidence to support the idea that consumers actually want larger packages of batteries.

It’s clear they want to shop at the stores that sell larger packages of batteries, but that isn’t necessarily the same thing. Most consumers would be happy to buy batteries in smaller packages. That’s exactly what they’d be doing, if they weren’t shopping at superstores and the like. Consumers have not suddenly taken to buying their batteries via in – depth comparison shopping. Falling unit prices in the battery business have been caused by changes in retail methods, not changes in consumer tastes.

The strength of the major brands was evidenced last year when Energizer raised battery prices and Duracell followed suit. For the most part, Energizer has not been hurt by rising materials costs, because it has simply raised prices. Many investors haven’t really noticed the rise in materials costs, because these costs haven’t affected Energizer’s bottom line. Energizer’s pricing power has made this blissful ignorance possible. True, Energizer’s battery business doesn’t have as much pricing power as its razor business; however, it still has far more pricing power than the vast majority of American businesses.

Energizer’s battery business will produce a ton of free cash flow for years to come. The company will likely remain in the battery business even after alkaline batteries account for a much smaller part of the market. As a result, the profitability of Energizer’s battery business will decline.

This won’t happen today or tomorrow. There are still tons of products that are far too cheap to take more expensive, more durable batteries. There are also opportunities for Energizer to gain market share in developing countries (who will likely be moving away from super cheap carbon zinc batteries). The combined distribution infrastructure of Energizer and Schick will help both businesses gain market share overseas. But, there is far less opportunity for growth in the battery business than there is in the razor business.

An investor should value Energizer Holdings’ battery component as a no growth business. This isn’t quite as bad as it sounds. First of all, the battery business is not truly a no growth business. Both unit sales and dollar sales have increased in the recent past. Whatever growth does occur will add value to Energizer, because the battery business will continue to earn a very good return on incremental capital.

Unfortunately, the trend of rising unit sales of alkaline batteries will not last forever. Some alkaline batteries will be replaced by rechargeable and lithium batteries. Energizer will be hurt by such replacements. Even if the company does establish a strong position in the lithium battery market, its pricing power will be far less than it is in alkaline batteries.

It is important to note that the total volume sales of batteries, taken in the aggregate, will still grow. Although some rechargeable and lithium batteries will replace alkaline batteries, other rechargeable and lithium batteries will be used in completely new products.

Even thirty years from now, it is hard to imagine a world with lower unit sales of batteries than the levels of 2005. However, it is the mix of those batteries sales that will ultimately determine Energizer’s profitability. I am far less optimistic than most about the profitability of that mix.

There is a very real risk that selling lithium batteries will prove to be an inherently less profitable business. Most analysts have not yet addressed this issue. I can not say whether their silence on this matter is caused by a lack of concern or by a lack of interest. Regardless, I believe such silence is dangerous, because the future profitability of the battery business is an important part of any valuation of Energizer Holdings.

Increased durability and reduced visibility generally lead to lower brand awareness, less customer stickiness, and greater price competition. Therefore, the economics of the alkaline battery business and the lithium battery business are not as similar as they first appear to be. It may be sometime before the economics of the lithium battery business become clear.

In the mean time, investors would be best advised to view any migration from alkaline batteries to lithium batteries as a net negative for Energizer Holdings. Shareholders will want to follow this trend closely; however, it may be several years before a full understanding of the economics of the nascent lithium battery business is possible.

Energizer’s future growth will come from its razor business – especially international sales of its Schick products. In the recent past, the razor and blade business hasn’t experienced tremendous growth. This has lead analysts and investors to overlook the great long term growth potential in this business. Schick is a very strong international brand supported by Energizer’s already established worldwide distribution infrastructure.

Over the next thirty years, the worldwide razor business will become even less fragmented. Gillette and Schick will make large gains in their share of total unit volume, and even larger gains in their share of total sales dollars. Their brands already have worldwide reach. In the long run, far greater penetration is inevitable. There are no other similarly positioned competitors. No one will be able to compete with their distribution infrastructure, their R&D, and their advertising.

The razor business will be dominated by near continuous new product launches for a very long time to come. Don’t be fooled by those who downplay any increase in sales at Energizer or Gillette that is the result of a new product launch. Getting consumers to trade up for pricier models will be the real engine of growth in the razor business.

I believe it is a sustainable business model. Long term economic and demographic trends are favorable to such a model. As segments of overseas populations become more prosperous, increased spending on pricey, branded consumer products is sure to follow.

The two major competitors’ brands and their new products have a strong hold over men. It is likely their grip will only tighten. For a man, there is an important psychology attachment to his razor. A man’s experience with his razor is regular and ritualistic. He also uses very few other personal care products of any consequence. Therefore, he is likely to develop the kind of relationship with his trusted razor that will make him a super sticky customer.

This psychological attachment to a razor is not as strong for women. However, both Schick and Gillette are working to increase customer stickiness among women. So far, their efforts seem to be fairly productive. If successful, high end razor sales to women will provide an even greater source of growth for both businesses, because they are coming off a much lower base.

Societal trends in much of the world will also favor high growth among sales to women for this sort of pricey, branded personal care product. As a result, the strong international brands of these two razor companies should become even more valuable in the years to come – and those brands can not be replicated.

Schick is a true franchise. This fact often goes unnoticed, because Schick’s market share is dwarfed by Gillette’s. Both companies will grow their share of the international market, but Schick may very well grow its share more rapidly. There is nothing particularly surprising about this. Schick is starting from a smaller base, and is, in many ways comparable to Gillette.

What real advantages does Gillette have over Schick?

True, Gillette has a greater market share, but where is the actionable advantage in that? Can’t Schick achieve similar economies of scale at each of its production facilities? Doesn’t Schick posses a similar distribution system (largely provided by Energizer)? Doesn’t Schick have at least some brand recognition in most of the same countries as Gillette? Won’t Schick be able to match Gillette’s spending in both promotion and innovation?

Simply put, what can Gillette do that Schick can’t? Or, what can Gillette do better or more cheaply than Schick can?

One could argue Gillette’s absorption by Proctor & Gamble (PG) gives it some superiority in distribution, advertising, and R&D. But, whatever advantages exist in these areas are slim. There is no evidence Gillette has an advantage in new product development over Schick. True, no one can match Proctor & Gamble’s distribution system or its economies in advertising; but, Energizer comes awfully close. The combined Energizer Holdings has great enough resources to make Gillette’s advantages in these areas little more than academic. Once a company enjoys these advantages on the scale of an Energizer or Gillette, what real difference do they make?

Gillette’s competitive advantages over Schick are greatly exaggerated. Schick will not wrest control of the razor market from Gillette. But, that isn’t the important question. The important question is this: will Schick grow its international business profitably for many years to come? The answer to that question is an emphatic yes.

In fact, while I concede the fact that Gillette is a tough competitor and a first rate business, I believe the probabilities favor faster long term growth at Schick than at Gillette. The combination of the razor business and the battery business makes sense. Schick will continue to benefit from this combination.

More importantly, being the second player in a business like razors isn’t a bad racket. Look at the records of other companies who found themselves in the same situation. An investor would be just as foolish to dismiss an investment in Energizer on account of Gillette’s dominant position in the razor business as he would have been to dismiss an investment in Pepsi (PEP) on account of Coke’s (KO) dominant position in the cola business. As an investor, you aren’t looking for the biggest business – you’re looking for the best bargain.

Energizer’s management is shrewd and shareholder oriented. I have to refute the claims I have heard (reported in several places) that Energizer’s management has been anything less than superb in its stewardship of the owners’ capital. There are several complaints; none of them have any merit.

The most frequent complaint is that Energizer doesn’t hold quarterly conference calls. Good for them. If you’re part owner in a battery and razor blade business in which a quarterly conference call is necessary, you’re in the wrong battery and razor blade business. Energizer’s disclosures are absolutely first rate. Management just chooses to make those disclosures on paper. Anyway, the conference call is really more of an issue for analysts than it is for shareholders – and Energizer has no obligation to pander to analysts.

The company’s annual report is a good model for others to emulate. It reports comprehensive income within the income statement, instead of opting for a separate disclosure. This should be standard practice. Several footnotes in the report lead to tables instead of long lists of numbers in tiny print. This should be a standard reporting practice as well.

Energizer breaks its business down into three common sense business segments: North American Battery, International Battery, and Razors and Blades. It reports all items for these segments in the body of the report. This means cash flow and balance sheet items are provided right next to income items. That allows anyone with third grade math skills to calculate returns for each business segment and to judge each unit on its cash flows instead of relying solely on the income statement.

Within the body of the report, the company breaks down sales across all business segments by geography. This means, with just a little subtraction, one can break each unit (batteries and razors) down into North American and International sales. Battery sales are also divided into three common sense product categories: alkaline batteries, carbon zinc batteries, and other batteries. This is another really useful disclosure.

The company even volunteers exact estimates on event – driven sales of batteries (e.g., hurricanes) and benefits from the timing of production at certain plants. In both cases, the information is provided so the reader can lower his estimate of normalized earnings, not raise it.

Very few companies will prominently mention how an unusual number of hurricanes helped them, or how the same volume of output in the next calendar year would not result in equally high earnings. Energizer volunteers both pieces of information without resorting to the use of footnotes.

The one crucial fact that isn’t explicitly provided is the sales mix between razors and blades within Schick. That would be a nice touch. Energizer isn’t alone in not providing this breakdown. Most public companies in refill/repair businesses don’t provide this particular detail, despite its great economic importance.

Energizer’s share repurchases enhanced shareholder value. A lot of analysts would rather see a dividend. They’re wrong. Once a company starts paying a dividend, it effectively promises to keep doing so. On Wall Street, cutting a dividend is viewed as a mortal sin. Healthy companies just don’t do it. Even unhealthy companies go to ridiculous lengths to maintain regular dividend payments (e.g., GM). By not paying a dividend, Energizer maintains its flexibility. It can make an acquisition, it can buyback stock, or it can pay down debt. In this way, the company is able to put its capital to the best possible use.

To date, that’s exactly what it has done. All share repurchases were made at discounts to intrinsic value. The acquisition of Schick is a rare example of a large corporate acquisition that was well worth the price. In both cases, the money borrowed was cheap.

Of course, it remains to be seen if Energizer will continue to put its capital to the best possible use, or whether low interest rates and a low stock price were just happy coincidences and Energizer will continue to borrow heavily and buy back stock regardless of its cost of capital and the stock’s discount to intrinsic value. Past actions and statements from management lead me to believe Energizer will continue to allocate capital wisely – but, one can never be sure of management’s intentions.

Energizer has proven to be more shareholder oriented than most companies, not less. So, ignore the occasional uneducated complaints made about Energizer’s corporate governance. Energizer’s actions prove the company’s commitment to enhancing shareholder value. Those actions back up the words with which the annual report begins:

“Going forward, we are focused on two clearly defined financial objectives – to generate consistent annual earnings per share growth and to maximize free cash flow. We fully intend to achieve those objectives by successfully executing our ongoing business strategies – investing in our brands for future growth, using cash flow to acquire operating earnings and opportunistically repurchasing our shares.”

While I believe Energizer is a suitable investment on qualitative grounds, every investment decision ultimately comes down to price. At a steep discount to its intrinsic value, Energizer Holdings would make an excellent long term holding. So, what is its intrinsic value?

Energizer is worth at least $7.5 billion. The company’s current enterprise value is about $5 billion. So, at today’s price, the margin of safety is not much greater than 33%. I consider this to be an insufficient margin of safety. As an individual investor, not restricted by having a large amount of money to invest, there is no reason to accept a margin of safety of less than 50%, if you are willing to hold a concentrated portfolio. Of course, if you want to be widely diversified across 30 or more stocks at all times, you will often have to accept a margin of safety of less than 50%. For such widely diversified investors, Energizer provides an attractive investment opportunity at the current price.

Of course, estimates of intrinsic value will differ from person to person. That’s normal. In this case, the two key (and potentially controversial) assumptions are the decline of the battery business and the growth of the razor business.

To give you some idea of the importance of these assumptions, I came up with an estimate based on the worst case scenario of a relatively rapid decline in the battery business as well as an estimate based on the best case scenario of strong, sustained growth in the razor business. The worst case scenario yielded an intrinsic value of $5.25 billion; the best case scenario yielded an intrinsic value of $12 billion. Both of these estimates are within the realm of possibility. In neither case did I make any obviously unreasonable assumptions.

For instance, a very rapid decline in the battery business would yield a much lower intrinsic value than $5.25 billion. However, I do not believe such a rapid decline is a reasonable assumption.

On the other side of the scales, very strong growth in the razor business would yield an intrinsic value much higher than $12 billion. I believe such growth is unlikely, unless there is some catalyst I am unaware of. If you believe there will be sustained, strong growth in the demand for high priced razors among large populations overseas, $12 billion becomes a low end estimate. Personally, I believe $12 billion is very much a high end estimate.

I always try to err on the side of caution. So, I’m sticking with $7.5 billion as my best conservative intrinsic value estimate for Energizer Holdings.

Geoff Gannon writes a daily value investing blog and produces a twice weekly (half hour) value investing podcast at =>http://www.gannononinvesting.com

Maybe you’ve asked yourself or others the same question. To be quite honest, without a way of narrowing down the choices, it can be a daunting task. Luckily, if you’ve done your homework and you’ve learned everything you can about the business through our home study course – you can have success in any county you settle on.

Step #1 – Do you want to invest in tax liens or tax deeds?

By now you should know the difference between tax liens and tax deeds. You may have already made up your mind as to which you prefer. If you like the idea of owning real property and being creative with your sales then tax deeds are probably for you. If you would prefer to sit back and just wait for your guaranteed returns then tax liens are for you. You make the choice. Here is a tool that gives you a quick picture of all the states: http://www.wealthfusion.com/taxlienmap.html

Step #2 – Start with the states closest to you

It’s usually a good idea to start your investing close to home where you are most familiar. Pick 3 states closest to you and research the state rules for the auctions. When I say research, I mean that I want you to become the expert! Find out all the ins and outs of the state regulations and then pick the state that is most appealing to you.

Step #3 – Now call every county!

This is the fun part. You need to call every single county in the state and find out all the details of the auctions, when they hold their auctions, how many properties on the auction, how many people attended the auction etc…

Finally – Plan your trip and go!!

Brad Olstad
http://www.FreeTaxLienSecrets.com

http://www.BradOlstad.com

An investment portfolio should be spread, like the saying preaches; don’t put all your eggs in one basket.
But for different people this means different things. First you must be aware of your risk profile. If you like to take more risks, the investments in your portfolio could be less diverse. You might concentrate more on one particular instrument (option, stock). Still, you may take more risks than necessary.
A mutual fund investor could spread its portfolio with only a few investment funds. The active trader could spread its investments over a short (trading) period.

The first thing we learn from this is that a so-called balanced portfolio is relative to the profile of the investor. Less untrue is the fact that in the investment game, there appear to be rules that are universal. If you have only some experience you know that you should ‘never’ build-up in one day your complete portfolio, but rather buy parts over time.

Then you have your portfolio. Now how do you know if it is balanced? There are more ways of checking this. One way is very simple and helpful. Again you need to check your preferences. We all know our preferences, but they are not that explicitly communicated. If you are a single, stand-alone investor you do not need to share your preferences with others. It is about your portfolio and you are free to make your moves. This changes when you are managing a team (of investors).

Then the question. What is more difficult to manage? Something you favour or something you are not eagerly doing?

With this answer you can check — the balance of — your portfolio.
If you are only following the easy part and leaving the difficult decisions for what they are, you know you’ve got a problem.

© 2006 Hans Bool

Hans Bool is the founder of Astor White a traditional management consulting company that offers online management advice. Astor Online solves issues in hours what normally would take days.
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