Submitted by: Janet Schlarbaum

Author: RENITA DUBEY

The working capital in a firm generally arises out of four basic factors like sales volume,technological changes,seasonal , cyclical changes and policies of the firm.The strenghth of the firm is dependent on the working capital as discussed earlier but this working capital is inteslf dependent on the level of sales volume of the firm.The firm requires current assets to support and maintain operational or functional activities.By current assets we mean the assets which can be converted readily into cash say within a year such as receivables,inventories and liquid cash.If the level of sales is stable and towards growth the level of cash,receivables and stock will also be on the high.

               However,with the increase in the working capital as a result of high sales volume this pattern is referred to a working capital management because in order to produce or manufacture additionally or increase the overall sales target,more amount of working capital is required by the firm which is possible only when the mannagement of working capital is prudent and effective whereas in case of declining sales reduction in the allocation of working capital will be prudent way to manage every business operation.Technological changes too has an impact on the management of working capital because as the production process changes or the line of business changes ,all this an an effect on the working capital requirements which in turn gets affected.Apart from this the policies of the firm too affects the pattern of working capital management. Seasonal and cyclical fluctuations,recession too adversely affects the sales pattern or functionalibilty of the firm.

                 Working capital management requires examination of maturity composition or liquidity of firms assets as it involves funadamental decisions  on the firms liquidity and maturity composition of its debts therefore a trade off between profitabilty and risk inflences these decisions.In a nut shell the management of working capital proceeds with the aim of achieving three goals :

1. Adequate liquidity
2. Minimization of risks
3. Contributing to maximising firm’s value

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Submitted by: Janet Schlarbaum

Author: Stephen Bigalow

Over the past five years of unstable markets, investors have learned some valuable lessons; some of these lessons were pleasant, some of them painful. After such a long period of stock volatility, media frenzy and other hysterics, investors should understand some things about unstable markets better.

Panic trading – Very little is ever accomplished when spurred on by greed and fear; both can be deadly to a portfolio, but this is especially true of fear. If you have followed a trading plan up to this point, don’t abandon it now. If you are following your plan, you will have diversified your investments, created stop loss strategies and done sufficient research to stay confident with your investment, even in an unstable market.

Establishing an investment level – Remember in an unstable market (or even in a stable one) that the money you invest is called “risk premium”. It is called that because it is the cost of doing business (or the premium) in the stock market; you are risking this money in hopes of making much more. Before making a single trade, you should decide how much to invest based on the idea of how much you can afford to lose.

Understand the market’s rise and fall – You won’t always be able to figure out why an unstable market moves like it does. Even those investors who make money investing in stock realize that the market can do crazy things. The recent fall in the China stock market happened with good reason; the market was up over 100 percent from the year before and speculation was at a fever pitch. In spite of this, there was no reason for the very best stocks on the Dow and S&P 500 to fall as well. This was simply a case of panic selling. If you are doing your fundamental analysis and stock charting, you will know if an unstable market is looking at a significant downturn and you can make wise decisions.

Know when to sell – Or maybe when NOT to sell. See an unstable market heading into a rough period? If you are confident with your fundamental and technical analysis you don’t need the cash in your hands, don’t sell. In fact, if you find some undervalued stocks in the process, maybe you should consider buying. While the economy of scale if vastly different, ask yourself if Warren Buffet is selling. If you’re not overextended, you might have the opportunity to pick up good stocks at value prices.

Suppose the downturn in this unstable market leads to a recession. In spite of Alan Greenspan’s recent comments, this is not a likely event anytime soon but for the sake of argument, let’s suppose there is one. In the past two decades, recessions have tended to be very short term in nature. As the economy moves toward a recession, the stock prices fall and this unstable market creates the opportunity to make some of your best stock picks. The simple cliché “buy low, sell high” actually has some truth to it; it is difficult to make much money when a bull market is pushing up prices.

Know where to get your information

It’s always reaffirming when the analyst on TV agrees with your theory about an unstable market but what does it buy you? If that $75,000 per year talking head were such an amazing expert on stock market advice, he would be making $250,000 per year as the lead investor from some brokerage house. It doesn’t take a crystal ball, just sticking with good, solid technical analysis and steady stock charting will give you far more solid information and a better sense of direction in an unstable market than someone on TV.

Diversify your portfolio

A healthy indicator of your stock holdings in an unstable market is if you have a diversified stock portfolio. If you hold equal investments in twenty different stocks and one goes under, what do you have? You would have a portfolio that is worth 95 percent of the original. Portfolio diversification prevents widespread destruction in your portfolio, even when the market is unstable.

Conclusion

An unstable market can still be a source of great wealth, if the investor is wise and sticks to his or her plan. Unstable markets move in a way that creates opportunities for smart investors.

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Submitted by: Janet Schlarbaum

Author: Sacha Tarkovsky

There is an investment secret that has made many of the world’s wealthiest investor’s huge capital gains.

It has out performed shares, mutual funds unit trusts and property, with lower volatility and has out performed many so called higher risk investments such as managed futures and currencies.

This simple investment secret for capital growth is open to all and only needs a minimum investment of around $10,000.

So, what is it? Read on …

It’s, investing in land

If you have never considered land, its time to start, it really is the investment secret that has made astute investors worldwide fortunes.

It’s now affordable for smaller investors and there are many specialist companies catering for inexperienced investors who can give all the advice and help you need to turn your investment into long term capital gains potential.

As Donald Trump said:

“I just love real estate. It’s tangible, it’s solid, and it’s beautiful.”

Howard Hughes was another who took advantage of this investment secret and made big gains, buying underdeveloped land in California, which is now worth billions.

You don’t have to be rich to invest in land either, anyone investing in mutual funds, unit trusts or shares should consider it as a portfolio diversification.

A recent newspaper article featured an investor who turned just a 1,000 investment into 3.5 million in just 11 years!

Now, you may not do as well as this investor but land represents a fantastic opportunity for those who know how to buy in the right location.

So where should you buy land?

The investment secret of investors worldwide is to buy land in the UK for capital growth.

Why?

Quite simply, it is one of the most densely populated countries in the world, has a rising population and a huge shortage of affordable housing.

This means land in the RIGHT location is in short supply.

Buying in the right location

To maximize this investment secret you need to buy in the right location.

Once the land is granted planning permission to build houses, investors will see a big capital gain on the land and can sell at a profit.

920% average gains!

The AVERAGE capital gain on UK land has been a staggering 920% over the last 20 years.

This is far in excess of shares unit trusts or mutual funds and many leveraged investments. Even better this investment has featured low volatility.

Keep in mind this is the AVERAGE and astute investors with good plot location have made far bigger gains.

Limited downside

The downside is limited as well. Even if a land investment does not appreciate much in value it’s unlikely to fall in value much either. As over the longer term land prices tend to rise in value anyway.

Mark Twain once said:

“Buy land their not making it any more”

That’s good advice! As you can see this investment secret is essentially easy to understand and is open to all investors.

Liquidity buy back options

If you need your money quickly, many land companies offer a solid buy back option for the land purchased, so you can cash in your investment at anytime.

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