The Bull Hunters Guide

Hello Fellow Bullhunters

Have you ever wondered what it really is to own a share.  Is it just a piece of paper from your stock broker informing you that you purchased x amount of shares for x amount of dollars and that this piece of paper has your name (or trust name) at the top claiming you to be the proud owner. 

Last time we discussed how the value of a stock is determined and today I am continuing with another excerpt from The Bull Hunters Guide to the US Stock Market.  This eBook is available for free download here or enter your details on the form at the right of this page.  We will be discussing what really is a share and what it means when you have ownership of that share.

This is a popular myth but a myth nonetheless.  Shares of stock really do represent fractional ownership of a company.  If you own a share of Wal-Mart you have a claim to its $2.56 of EPS.  You and your fellow shareholders ultimately control the company.  If the company goes bankrupt you have a residual claim on its assets - which means that it will have to sell all of its equipment and distribute the proceeds first to its debtors and then to you.

Better yet if the share price of a company sinks unreasonbly low another company can simply buy all the shares.  If there were a company big enough to take over Wal-Mart it would have a literal (as opposed to theoretical) claim on all of its earnings - meaning money in the bank.  If Wal-Mart’s share price fell from $50 to $25 but it still had $2.56 EPS then it is possible another company would attempt to buy it out.  Of course in order to convince Wal-Marts current shareholders the takeover company would have to offer a premium to the current share price.  The very fact that this could happen acts as a price support for Wal-Marts shares keeping them from falling too low.

We can see from this excerpt that if you are the owner of any shares in any company on any stock market then you own a fraction of that company.   I dare say that some of you may not have even thought about it that way before.  It’s good to discover what it means and why as having this insight can help us choose the companys that we would like to trade with.  Especially in the renting share strategy which does require you to own some shares in order to be able to rent them.

Until I see you again happy reading

Angela Recchia
Graduate Support
Universal Wealth Creation © 2004 - 2007

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Hello Fellow Bullhunters

Let’s look at another excerpt from the Bullhunters Guide to get you a little more acquainted with the material.

If you could purchase a security such as a stock or bond, that would pay you a guaranteed $1000 a year for thirty years, how much would you pay for it.   Clearly, you would pay at least $1000, since you would make your money back after only one year.   Just as obviously, you wouldn’t pay $30,000 or more, because it wouldn’t make sense to pay $30,000 just to receive it back in $1000 increments over the next three decades.  So the vaue of our imaginary security is between $1000 and $30,000. 

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3 years ago, I was inspired by my future mentor Jamie McIntyre, when he said he worked 3 weeks then had 1 week off.  The purpose is that (besides needing the rest) the recharging and relaxation of the 1 week holiday gives him the most inspiration and insight for new ideas and concepts to grow his business and investments. 

I was very inspired by this, and although I didn’t set it as a goal to achieve, it has ingrained itself into my subconscious mind and has lingered until now.  2 weeks ago, I unleashed the holiday beast!  From now on its 1 week off every month.  How will this work, some people will be asking?  How can you just “not attend” to your stock market investments, property portfolio or internet sites?  Won’t you need the cashflow for that week?

Well, that sounds like the questions I would have asked 3 years ago.  Something I have come to realise is this:  When you are doing what you are passionate about, it’s like having time off anyway.  So the first 3 weeks are very enjoyable to start with.  I work with the internet, helping people build a millionaire mindset, creating cashflow strategies, playing with trading systems, looking at potential investment properties, the list goes on… meanwhile, I’m building emotional intelligence.  By now I’m sure you understand the importance of both emotional and financial intelligence.  They are the key to growth and building wealth.

This is what I’m likely to do on my week off and how I will manage my investment cashflow:

Travel to destinations of my dreams, including goals I’ve set 3 years ago.  When I did the 21st Century Academy Homestudy program, one of my goals was to take my 2 sons to every continent in the world by 2017.  I’ve realised since that this goal will be achieved in the next 4 – 5 years.

Spend time at home on my 20 acre riverside property in Western Australia.  This is where I want to spend the rest of my days although my intention is to own many properties throughout Australia and the world.

Access to internet means I can oversee stock market investments almost anywhere in the world.  This is hardly a chore as I enjoy my investment strategies and spending a few minutes a day looking at them doesn’t phase me at all.

Most stock market investment strategies I use are very low key and low maintenance.  In the beginning, I used a more aggressive approach because I needed a higher investment return on my money.  Now the cashflow is there, the rate of return isn’t as important anymore.  Of course, that removes a lot of potential stress in the investment as you could imagine.  $10,000 isn’t as much money to me now as it was 2 or 3 years ago.

I actually make a fraction more every month from my investments (with less effort) than I did in December 2005 when I finally replaced my income and fired my boss.  Other cashflow generators have enabled me to make money at a higher rate while still maintaining a low key, low maintenance investment profile.

So the bottom line is that I am now able to start enjoying life at a higher rate and still grow my investment portfolio while having a growing cashflow as well.  All this has happened in 3 short years.  I hope you can take some of this onboard, inspiring you to take action and break away from the things you don’t want in life.  Now is the time to move towards the grand goals and dreams that inspire you.

Until next time, I wish you Universal Success

Sean Rasmussen
The Bullhunters Stockmarket Guide
Universal Wealth Creation © 2004 - 2007

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Learning about the US Stock Market or any market for that matter takes time and this handy eBook is here as a reference of how companies come to be listed on the US Stock Market and how the market operates and what makes it tick. The Bullhunters Guide to the US Stock Market is available to download here now.

Over the next few weeks I will be taking excerpts from the Bullhunter eBook so we can break it down a little and get to know it better.

We should all know that no one person owns Wal-Mart (WMT) or any company for that matter which is listed on the stock exchange.  From the eBook…

The Walton family, famous for having five of America’s ten richest people amongst its ranks, does not own Wal-Mart either. Even Sam Walton the legendary founder of the world’s largest private employer did not own Wal-Mart for the final few decades of his life. At least not entirely.

Wal-Mart is a Public Corporation owned by its shareholders. A public corporation is a company whose stock is traded on one of the major exchanges, the NASDAQ, the OTCBB or the Pink Sheets.

The vast majority of public corporations are required to register with the SEC which is the Securities and Exchange Commission. This is the governmental body charged with maintaining and regulating the financial markets in America.

So unlike Mr Fenders corner store or Bob’s chain of supermarkets (fictional entities not listed on the stock exchange), you can be an owner of Wal-Mart too. All you need is a brokerage account and enough money to purchase one share. Currently trading at just below $50USD.

Sam Walton was known as a man who never took chances and was regarded as a leader rather than a follower. He grew up during the depression and it seemed that he was always fighting an uphill battle which did not perturb him at all.

He was a man of vision and when he first incorporated Wal-Mart, it was because the growth was happening very quickly and he could not expand unless he took investors on.  This was the birth of the Wal-Mart company on the US Stock Market.

We have previously talked about Sean Rasmussen from Universal Wealth Creation who generously wrote and made this guide available as a free download for us getting a second eBook instalment from The Bullhunters Guide out so come on in and show him some support and patience as he is busily gathering information to put it together. I for one cannot wait to read about being a Sharelord ® and renting shares.  Can you…

Angela Recchia
Graduate Support
Universal Wealth Creation © 2004 - 2007

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5.45am Tuesday morning, I jumped in the 4WD with my 2 sons and drove to Streaky bay in South Australia.  We made it as far as Caiguna on the Nullarbor Plain, approx 1300km down the road.  Another 1000km was left to drive the next day.  Last time I made this trek was 12 months ago and I have quite fond memories of my stock market experience at the time. It was the best dollar return I’ve had for less than 1 week trading with options.

Let me share it with you…

It was May 2006 and I was driving to SA for the first leg of the “I Fired My Boss” 2006 tour.  When leaving Bunbury, I located 4 high probability trades to place.  They where bought calls on NCM, BHP, NWS and a 4th one I cannot recall.  All trades where placed on the ASX, australian stock market and to a total value of circa $9,000.

I placed the trades, jumped in the car and proceeded to drive across one of the longest road streches in the world.  When I reached a place called Madura Pass, I called my broker (Angus Knight) and asked where the market was at.  The response was “up 100 points” or something to that effect.  At this point my interpretation of the charts, over the phone, didn’t require me to take any action. 

Action would mean:

Taking a trading profit, or..

Making a donation to the market (taking a trading loss)

Imagine the onlookers faces as my wife, Cherie and I did an Irish jig with the kids on the middle of the Nullarbor.  At this stage we had made approx $5,000 and all we had been doing was drive across our beatiful country.   Imagine the carefree attitude I had when filling the fueltank at 1.85 per litre:

Cool! Petrol is expensive.  That means my shares have gone up!

The next day we arrived at Streaky Bay. It was Friday afternoon. The market was closing in 1 hour and I hopped on a computer to check the market again.  My trades had gone up from $9000 to $24,000 in only a few days.  I applied a fast bout of Technical Analysis and determined that now was a good time to cash in some trading profits.  $15,000 profit in a handful of days: Thank you for coming!

This years cashflow trades for the trip?

Well.  Besides my longer term trades, I’m doing no options trading right now.  No renting shares. No writing puts. Last year I was chasing a dollar and cashflow. This time, I didn’t even think about placing any trades as I was pre occupied with other stuff.  However, I can tell you this much: 

As much as it was a fantastic experience and a real good story to tell, making $15,000 in less than a week, it is an even better experience not needing the money and not even caring about placing trades for a quick profit. 

For those of you that know me, you know how well my websites are going.  Even though I make more out of the stockmarket than I ever did in a JOB, the internet puts it all to shame.  It’s a great life and I’m loving every moment of it. It’s where my passion is.

Now, in the tradition of Jamie McIntyre of 21st Century Academy, I’m modelling his attitude of having one week off every 4 weeks. I started with this trip to SA.  Some time away will help me further develop my Emotional Intelligence and some wealth strategies.  Imagine how many MP3’s you can listen to in a 46 hour driving round trip of the Nullarbor Plain?

The kids didn’t have to put up with Financial Intelligence tapes.  They watched DVD’s all the way and I didn’t get one:  Are We There Yet?

Until next time, I wish you Universal Success

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2007

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