Til Debt Do Us Part...

URB - Social 

The new conversation line may go a little something like this, "So How Much Debt Do You Have?".  This might follow: (1) Are You Married, (2) Do You Have Kids, and (3) What Do You Do?

All are common conversation starters when chatting up the future Mr. or Mrs. Right.  I have always been called 'mechanical' but I always held onto the need to ask or discuss the financial health of your significant other just like we discuss other serious topics: such as health, kids, and marriage.  I held onto to this useful tip when a alum came back to campus and oddly enough ended with that as one of his life lessons.  Its a touchy subject but consider talking to your significant other about debt just like you bring up conversations on kids and marriage. So I found it shocking to listen to a radio segment that was reporting on this very subject of debt and relationships.

Here is an excerpt from NPR's segment and call, "Call Me Maybe When Your School Loan is Paid In Full:

"The increasing debt load of college graduates has affected young people's lives in untold ways, from career choices to living arrangements. Now add another impact on a key part of young adult life: dating and marriage.

Rachel Bingham, an art teacher in Portland, Maine, learned this a few years back, when a guy broke it off after four months of a budding relationship. Among other reasons, he cited her $80,000 in student loan debt.

"He said it scared him," she recalls, "that it really made him anxious. And he just did not want to take on my responsibility."

Included is a link to the full article: Debt Caused My Break Up

Next time, I'll share the lesson learned from a Toyota's executive on the beginnings of the Lexus concept. 

Investing for Growth or Is It a Slowdown?...

URB - Economics

I barely lasted through a board meeting that proves my building morale is in a recession maybe a depression.  The arguing gave me the impression I was watching Congress debate about taxes or healthcare. :)

Speaking of Congress! While they talk about it often, it seems like things are only done about the economy in spurts or bursts. When it gets really bad, you and I get loud enough, Congress hears our anger and they throw us a bone or two and then get back to fighting about real issues...I guess.  It's interesting the topic is never 100% about the economy.  I would like to finally write a post about whether I definitively think the economy is growing or slowing down.  Its pretty hard to tell and as you know I constantly keep my ear to da streets to get a pulse from the people.  The real people that are trying to make ends meet day to day, rather than just arguing.  There are many mixed signals out there...and I see positive signs from improving housing trends to people starting to switch jobs.  But then there are the constant reminders of high unemployment, rising grocery bills, foreclosures, city governments struggles, and the federal budget problem which confirm that the coast is not clear.

Build Your Own Case Study: Barnes and Noble (BKS)

I am good with numbers but unfortunately I am behind the 8 ball this year when it comes to posting my thoughts.  I've kept busy doing a lot of research to maintain a thoughtful blog.  Based on feedback you'll notice some changes to the site. First, many people will be happy to know that we've responded to your calls for any easy way to know what stocks I'm interested in. I developed a quarterly 'Subscription Service' to highlight long-term value stocks.  I continue to appreciate the feedback and the questions and we will definitely explore posts about socials issues, retirement, and life/wellness in the future.  They'll probably have some sort of financial bend to them so I won't stray to far away from the roots.

I want to talk about how to invest and why we all can do it.  I was just relaxing after taking in a couple of "Mad Men" episodes on Netflix and noted that I should revisit some of my old writings.  I flashed back to my thoughts earlier in the year in the posting "Companies Watch". I wrote the following about Barnes and Noble (BKS):

Barnes and Noble – I am a sucker for stocks on the decline and Barnes and Noble is showing up on my radar. The other day is dropped roughly 20% on news that they were changing their future outlook lower.  That is never good and investors let them have it.  BKS even mentioned making changes such as spinning of their NOOK business.

Price: $11.65 

If you noticed on January 12th, I brought BKS to your attention because it was a large company that's going through some tough times.  These companies can be good investments if you keep a level head and strong stomach.  I want to show you how I built a case study and how you can build yours. 

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Things to Do:

1. Identify stocks that are need further analysis and write their pros and cons down.

2. Determine if the price is right by looking for discounts or mismatches in the prices.

3. Figure out what the price will be in future...think long term.  

4. Research the company to find out what and who supports your view of this stocks. This could range from charts, to investors to new articles.

 5. Stick to your guns and only buy the stock when the price is right.

6. Key a watchful eye out for strategic events that could tell you to buy more or sell the stock.

See how it might work, case study for BKS:

1. BKS 

Pros: Borders is gone, Nook/readers are hot right now

Cons: Amazon, decline in readership

2. See price above: $11.65

3. ?? My initial thoughts was say $20

4. Saw some good articles on e-readers and a few tough ones on book sales

5. I didn't buy BKS but after the huge drop I like the thought of purchasing some shares

6. Followed the story and saw these events as positive:

- Barry Rosenstein runs  JANA Partners which disclosed roughly a 7 million share position in BKS.  BKS was up big (around 18%) and rumors have already started to rise about will he force them to split the company up. 

- Microsoft invests in the Nook e-reader

- An investor who started off negative has has a change of heart. See Whitney Tilson