magazine archive

magazine archive


Forget non-farm payrolls, you need to focus on PMIs instead

Thursday 21 Feb 2019

Every so often a piece of economic data comes along which causes stock markets to have a major wobble. Among economic releases, by far the most widely anticipated are the US non-farm payrolls and the US manufacturing purchasing managers’ index or PMI. Non-farm payrolls are simply the number of...

Explaining stop losses and how they work

Thursday 24 Jan 2019

The risk of loss is a reality for all investors so using a stop loss to sell shares if they fall to a certain price sounds like an ideal solution, but the reality can be different. Stop losses send an alert to a stockbroker when a share hits a certain price and instructs them to sell the shares on...

Decoding bond proxies and explaining the risks you need to watch out for

Thursday 18 Oct 2018

Sometimes financial terms can seem intimidating to the uninitiated. Take bond proxies, for example. There are several different definitions of this term, which has become increasingly popular in recent years, but essentially these are companies which are seen as ‘defensive’ thanks to a reliable...

Create your own simple share price target

Thursday 13 Sep 2018

Investors buy shares in the hope they rise over time and create value. The question is, by how much should a share rise, and over what timeframe, to qualify as a successful investment? For some investors earning a 10% return in six months would be a decent result. Others may have more aggressive...

Cracking the performance code

Thursday 06 Sep 2018

Among the prime considerations when selecting a fund or investment trust for portfolio inclusion – and remember there’s a bewildering array of options available – is the small matter of performance. Even a casual observer of the investment scene will have come across the well-worn phrase ‘past...

Geared for growth: how to use ‘gearing’ as a debt check tool

Thursday 23 Aug 2018

When most people think about debt they usually see it as something to avoid. Personal loans, credit cards bills and often hefty interest charges will typically spring to mind. It is often the same with investors. Companies with large debts have a nasty habit of coming a cropper, as Carillion...

What is free cash flow and why is it so important?

Thursday 16 Aug 2018

Free cash flow is important to investors because it shows how much actual cash a company has at its disposal. This may sound like a simple point, but it is one which should rank extremely highly on an investor’s ‘need to know’ list. When a company needs to service its debts, pay dividends or invest...

Understanding the impact of share overhangs

Thursday 09 Aug 2018

A share overhang is when a company has a large amount of shares in the hands of perhaps one or two holders which, if they were suddenly released on to the market, would ultimately flood it and dampen the share price. There could be various reasons for a share overhang, it could be a founder looking...

Why KPIs are an essential tool to decoding a company’s performance

Thursday 02 Aug 2018

Firms operating in different industries have their own yardsticks for performance, beyond the usual metrics like pre-tax profit, revenue and cash flow. These key performance indicators or KPIs for short can help you spot positive or negative trends before they show up in the P&L or balance...

The A to Z of fund share classes

Thursday 12 Jul 2018

Investors can often find it difficult to find the right fund out of thousands at the best of times, but have you ever wondered what the various letters attached to individual collectives mean? For investors looking for a good deal, these letters are important and can determine whether you end up...