Here you go: He has a site here on SI;;;"the trading desk"
Hello everyone. I just wanted to drop a note to say hi and wish everyone a Happy Holiday.
The market has been quite volatile recently with a noticable bearish tone having its way with the
bulls. Nonetheless, the US economy remains healthly and appears to be ready to conclude another
strong year. With a few exceptions, corporate earnings have been positive with sustainable growth
rates being maintained.
Yet, the market has faced its first bear slide in almost ten years. Many large cap, high quality
companies are trading much off their year highs. The worst performing sector over the past few
weeks has been the technology sector. Japan/Asian fears have created far more sellers than
buyers of technology stocks as well as stocks in other sectors. Unlike the technology correction in
1995 and in 1996, this retreat has been more prolonged and has a more substantial reason for its
retreat.
Nonetheless, the market often goes to significant extremes. It does this in bullish and in bearish
modes. On good news the market becomes overly optimistic taking stocks to unreasonable heights
and on bad news, severly punishes the offending company. A reasoned analysis might try to
calculate the net effect of the "Asian Contasian" on corporate earnings and then correct the stock
by some multiple of that number. We would not be so naive to say that the correction would be
equal to the impact since the market is known to go to extremes. As well, we would never be so
naive as to consider the market reasoned and rational.
In times of turmoil, there are a great number of investment opportunities that show themselves.
Specific prospects vary depending on your cash position, your risk tolerances, your time frame, your
financial objectives, your current allocations, your current holdings, as well as many of the traditional
investment factors. Generally speaking, we recommend the following:
1. Stick with high quality companies with good management and strong balance sheets. These
companies are best able to weather these storms and when the dust settles should recapture their
favor.
2. Avoid high flying companies with little in the way of earnings or other assets. In a raging bull
market, such lofty PE ratios are buoyed and supported by the strength of the overall market and the
simple future prospects of the company. Yet, as a market turns bearish, investors reconsider
whether this is a company they truly want to own. Over the past few months, many of these high
flying stocks have taken their thumps and are trading at what some may consider a reasonable
valuation. I have heard many say "After all, xycz company was trading at 64 and is now 42, it must
be a buy." My response might be that zycz never should have been trading at 64 and at 42 it is still
trading at three times the pe of its peer group andmuch above historic levels. As well, zycz has no
earnings to speak of and is highly leveraged. " Becareful and scrutinize your account for such
minefields.
3. Be sure your assets are properly allocated. I have received a number of distressing emails and
other calls recently with investors distraught at their exposure to a few sectors and the lack of cash
in the portfolio. Speak to you financial adviser or give us a call to discuss what changes could be
made to your allocation to better protect yourself in the event of a more significant and prolonged
market downturn. Proper allocation should also ensure your ability to take advantage of
opportunities as they present themselves.
4. Do your research and homework on stocks and mutual funds now so that when a dramatic, if
any, situation occurs, you will generally know your course of action. There is no person who rings a
bell when we reach the bottom, whereever it might be.
5. If you can not stomach the market's gyrations and simply do not have a feel for market timing, do
one of a few things: a) work with a trader/brokerage firm that can provide this hand-holding and
guidance or c)develop a disciplined dollar-cost averaging program for your stocks and mutual funds.
Overall, my feeling is that the market has taken a decided bearish tone. Investors, clients of ours
are truly concerned about their investments and their portfolios. Nonetheless, it is important to
understand that corrections such as these are inevitable. That we had not had one for xx years did
not indicate that we were less likely to have one but more likely. As well, such corrections are
healthy as they bring stock and security prices back to reasonable levels, it eradicates excesses,
and provides a more solid footing to move forward.
I hope all is well and we wish you and your family a Happy Thanksgiving. If there is anything we
can ever provide, please feel free to let us know.
Regards,
Steve Goldman
Options, Sales Principal
Head Trader
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Yamner & Co., Inc.
Members American Stock Exchange, NASD, SIPC
33-00 Broadway
Fair Lawn, New Jersey 07410
(800) 221 5676 (201) 791-4449 (201) 475-9370 fax
yamner.com email: accounts@yamner.com
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Thank you for your interest in Yamner & Co., Inc.
Yamner & Co., Inc. is discount brokerage firm that has
served the financial community for more than twenty years.
We pride ourselves on the strong relationships we develop
with our clients. We do not make markets or act as
principals in any of our clients' stock transactions.
Avoiding these inherent conflicts of interest, we are better
able to represent our clients' best interests and help them
achieve their financial goals. We offer discount commissions
and still provide a full range of high quality brokerage
services.
While Yamner & Co., Inc. is fully committed to the latest in
Wall Street technology yet we still feel the best method for
receiving and confirming client's orders is over the telephone.
Clients using our 800 number are routed directly to our
trading desk where a trader or other executive can
answer your questions and handle your order immediately.
On market orders we can give you a execution report while
you wait on the phone. Our traders work your orders for
your benefit. We will call you back immediately after
the execution for those orders we are unable to execute
immediately. Any price improvements that can be realized
are realized by you and not some firm account. Most other
Wall Street firms trade for their own accounts, where price
improvements are mainly realized by the firm, not the client.
Our committment to our clients' best interestes is the
reason for our firms twenty years of success.
Yamner & Co., Inc. services a broad range of clients with
accounts of every size. We service individual investors
and traders as well as money managers and financial
institutions.
By offering a unique combination of discount commissions,
high quality brokerage and execution services, market
experience and a committment to your best interests, Yamner
& Co., Inc. can help you achieve your financial goals.
Please feel free to contact us about opening a new
account. By phone, (800) 221 - 5676, or by email,
accounts@yamner.com.
Best Wishes,
Steven Paul Goldman
Yamner & Co., Inc.
Principal, Options and Sales
Attorney at Law |
