By Angela Harmantas
What factors do you consider before buying a certain stock? Today on SmallCapPower we’ve got Fabrice Taylor, a leading investment expert and publisher of The President’s Club, sharing his expertise at buying and selling stocks. Also, we dive deeper into the issue of companies paying dividends when they’re losing cash – here’s what you need to know today:
Fabrice Taylor has had a long and esteemed career analyzing and picking stocks, so I’m excited to share some of his insights into the world of small cap stock investing. In a new video today, Taylor tells us how the stock market’s turbulence may affect small cap stocks, what factors he considers before buying a particular stock, and the toughest investment lesson he’s ever learned. He also shares the names of a few companies he’s closely following right now and warns of Greece-type situation spreading to three vulnerable European economies. For more of Fabrice’s insights be sure to check out his newsletter The President’s Club.
Should a company still pay out a dividend even when it’s operating at a loss? We talked about the attractiveness of dividend payers in a previous Before the Bell, but as I said at the time, dividends are not always the answer. Take today’s investment idea as an example, where we list 5 companies who are likely to reduce or stop paying dividends altogether. Unsurprisingly, they are all closely connected to the resource sector. What do you think about the above question? Do you still want to see companies paying a dividend if they’re not making a profit? I’ll be posing the question to some of our experts in the future as well, so watch out for the answer.
In international news, the world’s leading finance ministers are meeting in Turkey this week ahead of a G20 summit where China’s slowing economy will no doubt be a main topic of discussion. Also, Euro zone business activity grew at its fastest pace in four years helped by strong Italian and German performances, the news is muted by the fact that it is still only a modest amount of growth overall. We’ll see if the ECB makes any changes to the interest rate in a meeting Thursday afternoon – if they do, it should come as a surprise.
Do you have a burning question you’d like answered by an investment expert or analyst? Let me know and I can post the answer here in the blog. Contact me by email at angela@smallcappower.com or on Twitter: @aharmantas.
