Thursday, September 13, 2007

Baby Boomers - Build It With The Intention Of Selling It

Today, everyone talks about acquiring assets. For the past ten years, Real Estate has been the "golden child" of the asset game. When low interest rates combined with significant tax savings, Real Estate took a well deserved top position in the game. Unfortunately, the definition of an asset is too often overlooked. An asset is only an asset if it puts money into your pocket every month. In a world where interest rates could continue to climb, and Real Estate values are changing course, the number one asset contender is beginning to slip. So, some of the attention is beginning to shift to retirement accounts and small business ownership.

Retirement accounts are growing like no other time in history. It seems that the stock market has no choice but to respond by breaking new highs almost daily. Sure, there will be dips and corrections from time to time, but with all that cash flowing in each month, the trend is expected to continue in an upward trajectory. To the asset-starved public, this seems like the new Real Estate boom. No one can predict the future, but as they say, "History does tend to repeat itself." If all of your assets are in the stock market at the time of a significant correction, or worse, a crash, what then? Years of saving and watching assets grow could be minimized if history does indeed repeat itself.

Another trend that needs watching is the approaching retirement of the Baby Boom generation. After a short stint of travel and relaxation, many boomers will become bored. The siren of owning something will call out to them, offering another challenge to be conquered. The method they will choose is small independently owned businesses. This potential asset, I feel, will become the growing rage in the next ten years.

So, when is a small business an asset? A small business is only an asset when it puts money in your pocket every month or when it serves as a form of real estate when you sell it. Why is this important? It is important, because most small businesses are never started with the intention to be sold. The usual agenda is simply making some side money. That is a fundamental flaw in the plan. There are rules to selling a business, and you need to be conscious of them before you dive in.

Rule number one:

People buy proven systems--not a business built around the owner.

Rule number two:

People will pay a multiple of earnings--not "good will" or what you think your business is worth. They want to see the income not the income potential.

Rule number three:

Whenever possible, buy the building your business is in, because doing so serves a dual purpose. First, it allows you to sell the business without any complicated leases that have to be transferred. Second, if you sell the business but retain the real estate, it allows you to have an asset after the profit from the sale of the business is long forgotten.

Selling your business is both a science and an art. If you remember these rules, this road will be much easier to navigate.

Bob Scott specializes in coaching, solutions and systems for small business owners and is the author of the book, Small Business Pain. A devoted consultant and a dynamic speaker, Bob KNOWS how much you want to succeed, and he UNDERSTANDS how much you have at stake. He has experienced, first hand, how the weight of business reality and a lack of guidance can slowly crush the hope inside every single business owner. His WISDOM and INSIGHT can guide you over the many hurdles of small business so that you don't have to take the time to stop, brush yourself off and build up the courage to face the next hurdle. Bob see's your potential, and he helps you generate solutions and systems for your business. Perhaps the biggest small business secret that Bob will share with you would be: You don't have to build it alone! For more information about Bob Scott and his services, visit our website: or to schedule a complimentary consultation email Bob at

Taking the Path from Debt to Wealth

Look for the Source of Debt

You may be way over your head with unpaid bills and debt payments you just cant catch up with. It might be just the right time to look for the source of all the trouble. Its like looking for the source of bleeding and stopping it there. For some people it may be that credit card and the unplanned monthly purchases. For many, credit cards are a necessity, but if its causing you a lot of trouble, either forgo it altogether or keep it under lock and key for awhile.

Maxing Out on Debt Payment

When youve had an inventory on what debts you still owe, decide to just scrimp a little and maximize on your debt payments. There is nothing like trying to get rid of a terrible sore at the soonest possible time. If you have a little extra thats not for your savings account, then allocate it for advanced payments on some debts. Youll find that youll feel better psychologically if you're done paying debts earlier.

Redefine Your Goals

The best key to turn debt to wealth is to look at yourself and change both your attitude and your goals. While youre at it diligently paying for your debts, ask yourself what you want in life. Try asking too what it personally takes to get there. More than technical skill and knowledge, it takes confidence and discipline in yourself and the willingness to take risks. Build a new mental framework along these lines and proceed with redefining your goals. Tell yourself that you dont want to die impoverished or without anything to leave your kids and grandchildren. Tell yourself that you want to retire early or that even if your retiring at 60, you want to be able to provide well for your needs and wants at that age.

Start Saving and Investing

Of course, there is no other way to turn debt to wealth but to simply start saving and investing. Dabble with the stock exchange and try your hand at real estate and marketing. Aside from using your extra money to pay for debts, make sure that you allocate some of it for sound investments that will allow good quality passive income to come pouring in.

There can be a thousand other ways to turn debt to wealth but the real key is in you. Decide to take your life into your own hands and take action.

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Kuala Lumpur Stock Market Outlook - Forecast for the Day - 27 June 2007!

Profit-taking depressed local market. But Dow should stage rebound on Tuesday night.

Technically speaking:

1. As at Tuesdays close at 1366.99 the KLCI was lower by 10.14 points or 0.74%. Losers led gainers 648 to 286.

2. The lower close is a dampener especially after a breakout into new highs last Friday.

3. But as chartists one should expect the unexpected. In other words, if the KLCI should fall further to and violate its lower Bollinger band, one should consider exiting the market at 1348 or lower.

4. But until then, it is possible for the KLCI to stage a rebound.

5. Until the present circumstance, we would be cautious and not buy further.

6. We would wait-and-see and wait for a rebound before adding more positions.

7. Stocks-to-watch for today will, understandably be low. They are: LMCEMT and YTLCMT.

8. We were right about TRANMILE going down to hit the floor. We hope you have exited this stock as based on technical analysis it can make lower lows.

9. We observed that the local stock market moves in tandem with the strength of the ringgit. For the market to rally we would want to see a stronger ringgit. Right now the ringgit is weak.

CONCLUSION: Although it is too early to call a trend reversal, the local market has taken a beating from sellers as funds sell out for fear of further weakness from the U.S. markets. But the technical of the Dow do not seem to suggest that a market plunge is near. Instead we are seeing a Dow rebound. If so, we expect the KLCI to rebound in tandem.

Long-term Upside Targets:1492 (Target amended on 15/6/07).

Immediate downside targets: 1334/1291/1222

Fred Tam is the owner of and F1 Trader Online - Know when to enter & exit the markets.

Why Trade in the Forex Market?

The Foreign Exchange Market (FOREX) is three times larger than the total amount of the stocks and futures markets combined. It is becoming more and more popular.

Because there is neither physical location nor a central exchange for FOREX it can operate 24 hours, moving across the time zones from one financial center to another, from Monday to Friday.

There are great opportunities in the FOREX market because of the constant movements of the exchange rates. The currencies are always traded in pairs, and traders can make profits both when the prices go up and down. There is always good market trading opportunity for a FOREX trader in any economic outlook.

Everybody can learn how to trade in FOREX. Of course the importance of proper education and training before entering live trading cannot be overestimated. Without it the chance of success is almost zero. Fortunately everybody can practice with a demo account before entering live trading. The good thing about FOREX is that the amount of money someone needs to place a trade (known as "margin") is all that can be lost.

Of course, with the proper self-taught education traders will win more than they will lose, but everybody should know that despite the high leverage of FOREX trading (200:1 is possible, which means that when a trader puts up $1 the trading vendor will allow the trader to trade it as if the trader had $200), its still less risky than futures (commodities) trading. And when someone trades stocks he or she cant get this type of leverage. Margin is low and leverage is high, so there is possibility of big profits (but losses, too).

There are no commissions in FOREX. No exchange fees, no government fees, no brokerage fees and no clearing fees. There are no middlemen, too. Clients interact directly with the market.

Unlike in other markets it is possible to start trading with only $100 with a mini-account. The transaction cost is very low and the FOREX market is the most liquid, so the trader can enter or exit it in almost any condition.

Because of the FOREX markets liquidity and twenty 24 hours continuous trading, dangerous trading gaps and limit moves are eliminated. Orders are executed very quickly, without slippage. With a good research it is easy to find good brokers, who will automatically close some or all of open positions if the accounts equity falls below the level required to hold the positions. It is impossible to lose more than the amount of money in FOREX account.

Everybody can trade online from home. It is a great possibility for people who want to work from home, but dont like selling and marketing. All that is needed to start trading is a computer with Internet access and a proper training.

Because the FOREX market is so huge, there is no possibility of someone controlling the market price for a long time. There is no possibility of insider trading and the governments influence is very limited. Trading currencies is much simpler than stocks. There are only a few major currency pairs. No need to think which of thousands of stocks to trade.

There is no waiting for months like in futures market. Trades in FOREX rarely exceed two days.

The enormous marketplace of FOREX will grow bigger as more people are joining it every day.

To start learning more about FOREX visit:

The author is a currency trader and internet marketer. His website:

Bookkeeping Basics For Your Business

Many of small business owners would rather focus on making and selling their products than on keeping their books and records. However, bookkeeping is just as important as marketing and doing business. Many a great business ideas has failed due to a poor bookkeeping system. And ultimately, won't be keeping up if money going out is more than money that is coming in. Apart from business owners desire to stay in business, two other reasons why book keeping system is most important are:

1. Legal requirement.
2. Bookkeeping records are an excellent business management tool.

Good basic accounting system will provide useful information that will enable you to run your business proactively rather than reactively when it comes to important financial decisions.

Many of business still operate using checkbook and receipts. Its more efficient to go with an automated system, and there are now many bookkeeping software packages on the market. Most of the account software systems dont require CPA to operate and interpret it. Most of the windows account software is very user friendly.

Most business use one of the two basic accounting methods in their bookkeeping systems: Cash basis and accrual basis. Cash basis is the simplest one between the two and is used for small business. Income is recorded when it is received, and expenses are reported when they are actually paid. From tax point it is sometimes advantageous for a new business to use the cash basis accounting.

With accrual method, income and expenses are recorded as they occur, regardless of whether or not cash actually changed hands. Credit sales are excellent examples of this. How to decide which book keeping system should use? Auditor is best source to do that. The accrual method is required if your business sales exceed $5 million and your business is structured as corporation. Business with inventory must use this method. This is highly recommended for any business that sells on credit, as it more accurately matches income and expenses during a given period. Where as cash basis is may be appropriate for a small, cash basis business or a small service company.

Accounting system has the following key components:

1. Chart of accounts.
2. General Ledger.
3. Accounts receivable.
4. Inventory.
5. Fixed asset management.
6. Accounts Payable.
7. Payroll.

This is the first article in the series of articles which explains the need for bookkeeping for any business to run effectively. This article explained the basic of accounts, Account system components.

Second article explains Account key component definitions. What is cost of accounting? As a manager of business what precautions should be taken to avoid employee theft?

More details on:

  • General Ledger entries.
  • Accounts payable and Sample
  • Accounts receivable and sample.
  • Requirements from IRS on bookkeeping.
Third Article describes in detail about creating financial statements [Income statement, Balance sheet, Cash-flow statement. Cashflow statement analysis] with samples. Stay tuned for the 2nd and 3rd Article in the coming weeks.

S.V Bharath Reddy , is one of the founders of The Cashflow Crunchers, a web site for Investors and Smallbusiness to share investing tips and other information. For more articles, tips, and free online calculators, please visit

South Wyoming's Best Uranium Discovery?

In yesterdays conversation with Dr. Robert Rich, we determined he had the credentials and industry knowledge to provide Yellowcake Mining (YCKM) with credibility in the uranium space, But, what about the geology? Many juniors have skated onto the radar by using a big name to attract investors. Too often, the propertys geology is lacking the factors which would lead to actual uranium mining. Often, the industry-celebrity name is barely familiar with the companys property.

To our surprise, Dr. Rich was intimately familiar with Yellowcake Minings Juniper Ridge property in southern Wyoming. I had looked at Juniper Ridge in the late 1970s and early 1980s when it was owned by Urangesellschaft (UG), a German company, he told us. At the time there were still fresh open cuts from previous open pit mining there. There was a bit of uranium produced during the last market cycle of uranium, but I was impressed with the potential for it to become a much bigger operation. And then I didnt hear anything about it for over twenty years.

Juniper Ridge Bigger Than We Thought

He explained some of the production costs and geology, describing Juniper Ridge. I think there was a feasibility study that gave favorable results when the market was around $40/pound, Dr. Rich said. Its mineralization is in pods. When I was there before, it looked like I was in a giant prairie dog village.

What kind of mining would take place at Juniper Ridge, then? I think thats one of the reasons why people hope it will be ISR-amenable, Rich answered. Maybe you put a well field on each of the pods and get out what you can at a low production and low processing cost. Because of the propertys history, Dr. Rich wouldnt rule out conventional mining. We have 2,000 drill holes which need to be re-analyzed.

So we spoke with David Frank, the Strathmore Minerals geologist who has been analyzing about one-half of those drill holes on behalf of joint-venture partner Yellowcake Mining. Were getting above average, reasonably good grades, Frank told us. Im not disappointed. Frank scrolled through data during our telephone interview, citing some of the exceptional holes: 0.2, 0.3 and 0.5.

Some are in the percents, Strathmore Minerals (STHJF) president David Miller told us. According to the industry, Juniper Ridge was the best discovery made in southern Wyoming. It was the only one with significant uranium mineralization in the Browns Park Formation. The formation encompasses northeastern Utah, northwestern Colorado, and south-central Wyoming. It is a slightly younger formation than the Wind River or Wasatch formations, said Miller, who was recently announced as director of Yellowcake Mining. This is another tertiary age sandstone formation in Wyoming which contains substantial uranium mineralization.

Miller rated this formation third in the state. He explained the Wind Rivers formation, with Gas Hills and Shirley Basin, was Wyomings most prolific uranium producer, followed by the Wasatch formation, which includes Powder River and the Red Desert.

Historically, Juniper Ridge was the site of 12 small open pit mines. UG nearly brought the property into production in the early 1980s. There were pit designs and it was reportedly permitted. Machinery was ready to break ground. UG had given the project the green light, when the bottom fell out of the uranium market. Later, the Italian company, AGIP bought, hoping for a turnaround in the uranium price. The uranium price drought lasted longer than expected, and it passed through to other hands.

As the uranium price appeared to be heading higher, Strathmore Minerals acquired the property. In mid March, Yellowcake Mining optioned an 80-percent interest in the property, which it will earn by spending $8 million over a five-year period to develop Juniper Ridge. As part of the transaction, Yellowcake issued nine million shares to Strathmore.

Strathmore corporate secretary Bob Hemmerling told us, This is part of our corporate strategy to monetize our non-core assets so that we can advance our flagship projects. Others we spoke with confirmed this was likely to become an economic uranium mining operation.

We are too early days, but I would feel pretty confident in a $60 to $70 (uranium price) market of not having any problem bringing it on-line and making money, Dr. Rich informed us. I think it has potential to become a medium-size producer maybe a couple million pounds a year. The mineralization is not all that deep.

Juniper Ridge is a near surface deposit with uranium mineralization starting at the surface and running a few hundred feet to depth. The deposit was discovered by picking up surface rocks with a Geiger counter, said David Frank. It might be mined by a combination of open pit for the shallow mineralization and ISR for uranium at depth. Possibly by heap leaching piles of ore, Rich said. Or if you went underground, you could heap leach and inflate like heap leaching in place. This was done once at New Lake Mines in Canadas Elliot Lake region.

Miller pointed out, We expect to drill the property, for permitting purposes, in 2007. It was under development to become an open-pit mine, before it was put on stand by by UG. Data compilation is ongoing to analyze more than 2,000 holes previously drilled.

Near-Term Uranium Production in Wyomings Gas Hills

Its a real action property, Strathmores John DeJoia told us from the companys Santa Fe, New Mexico permitting office. Developing it will bring a lot of new applications to the ISR (in situ recovery) uranium industry. DeJoia is intimately familiar with the prospects at Sky because he had evaluated the propertys potential during the last uranium cycle. Its a fairly straightforward ISR mining project, DeJoia added. Sky will be easy drilling because of the formation.

Located in Fremont County near Lander and Riverton, Wyoming (near Strathmores U.S. headquarters), the Sky property is a relatively small uranium deposit about one million pounds U3O8. Why bother with something this small? Its an ideal ISR property to introduce new technologies, DeJoia said. Uranium mined at Sky would be processed through a small, inexpensive plant. It would be modular and portable with new technologies, he added. DeJoia explained this could become a new development for existing remote ion exchange technology.

This may signal a bigger property development. I think it will be developed in conjunction with other properties in the area, DeJoia speculated. An April 10th news release announced it would be the first of Strathmores properties to begin data collection for permitting purposes. Strathmore has several other Wyoming projects listed on the companys website.

At first we thought the Sky property was a throwaway, like other properties tossed like doggie biscuits by the higher market cap uranium juniors to barking new uranium junior entrants. We talked permeability with David Miller about Sky. The Sky property has about eight-fold the permeability of Christensen Ranch, Miller confided. He would know, because he was chief geologist at this ISR uranium operation for four years. Christensen Ranch had 300 millidarcy; Sky has 2500 millidarcy, Miller said.

Millidarcy is used to measure the permeability of a uranium roll front deposit. The higher the darcy (1.0 or greater shows good promise), the more permeable the deposit. This unit of measurement is widely used in petroleum engineering and geology. We discussed the importance of permeability in our basic ISR series.

This may explain why both companies are excited by joint developments in Wyoming. Geologically, both Strathmore Minerals property assets have greater prospectivity than we first thought. These present the significant opportunity Dr. Robert Rich explained to us in Part One of this series.

And what about the hundreds of pesky juniors which have sprung up to rape the uninformed investor? I think that probably half the juniors are just opportunistic, Dr. Rich told us. Thats the nature of entrepreneurial activitylooking for the next horse to ride, like the pony express. Rich further explained, You wear out one, you get on the other. I think there are so many companies that probably had gold in their name prior to them having uranium in their name. When the next thing comes along, whether its nickel or whatever, theyll change the company name and do something different.

COPYRIGHT 2007 by StockInterview, Inc. ALL RIGHTS RESERVED.

James Finch contributes to and other publications. His focus on the uranium mining and nuclear fuel sector resulted in the widely popular Investing in the Great Uranium Bull Market, which is now available on and on