Victory Investment

Archive for November, 2011

In the stock market it’s not unsual to see a stock go up more
than 15% in less than 5 minutes on a good momentum day. It could
seem that making money in the market is just a matter of buying
one of those fast moving stocks and riding them for profits. In
a way it is, but there is more to it.

The problem is, that if you don’t know what stocks to look for
and how to properly approach them and simply leave everyting to
luck, you could end up wasting money instead of making your
profits grow.

That’s why the most important aspect of momentum trading is the
knowledge FILTER you employ to make your buy and sell decisions.

There are many “fantastic” stock systems and trading strategies
outhere, but you need to test them in order to discover which
ones help you the most. That’s part of your homework as a
stocktrader. Test, test and test again.

Complicated stock trading strategies that rely on a “boat load”
of technical analysis indicators can make you slow, and being
slow when trading hot momentum stocks can be as dangerous as not
knowing what to do in the first place.

The worst thing that can happen to a beginner momentum trader is
to get information overload. It’s better to go step by step, and
test a practical stock trading strategy that can show you how to
focus on concrete ways to make money while picking SOLID hot
stock trading opportunities once at a time.

Fortunatly there are great sites on the web today that can show
you how to trade in a sharp and effective way. One of those
sites is Profitable Stock Market

http://www.ProfitableStockMarket.com

In the end, momentum trading is all about buying and selling
stocks according to your especific knowledge FILTER. Once you
master and follow your proven filter parameters like a clock,
you can expect to start making serious amounts of cash on a
consistent basis.

Find out how to do it with ease and simplicity at Profitable
Stock Market

http://www.ProfitableStockMarket.com

As a result of the recent “Great Recession,” many businesses are in danger of losing their bank loans. Loans can be pulled for a number of reasons but the most common are either poor financial performance by your business or your bank’s credit problems. A bank’s financial problems can also lead to its desire to take less risk and reduce your loan balances. Unfortunately, your bank will generally not tell you your loan will be “called,” or will not be renewed, until right before it takes action. It’s a little like when a bank fails and is taken over by the FDIC: we never hear about it until the Monday after the weekend when the takeover happened.

How can you assess if your business is being considered for termination? There are a few fundamental and relatively simple questions you can ask yourself to determine your risk of losing your small business loans.

Essentially, there are two categories of assessment when measuring the risk of losing your small business financing: the type of loans your company has and your company’s financial performance.

The type of bank loans your company are categorized below from riskiest, and currently least popular with the banks, to safest and most popular for the banks to hold.

Considered riskiest, and therefore least popular, is a combination of the following types of lending to one business from the same bank:

Real Estate: A commercial real estate term loan for your place of business Machinery and Equipment: A term loan on machinery and equipment used for your business Inventory: A revolving line of credit tied to your inventory balances Accounts Receivable: A revolving line of credit tied to your accounts receivable balances

If your business has all four of these types of loans in place, all from the same bank, you are at the greatest risk of losing all or part of your financing. Banks are reluctant now to make all of these types of loans to a single client. They would usually welcome the opportunity to get out of loans with this breadth of exposure.

As you eliminate loans on real estate through accounts receivable, your perceived risk to the bank declines. It is possible your bank will be happy to keep your credit in place with all these loans in place if your financial performance is as good as, or better than, it was last year. But a word off caution: if your bank has had unusually high loan losses, is financially weak, or has recently been taken over by another institution, it may call your loans even if your company is strong.

How was your company’s financial performance over the past twelve months? If there has been a decline in financial results or a drop in company asset values, you may be at risk of losing your small business loans.

The following financial problems are considered most damaging to your business’s prospects of keeping its bank loans:

Less accounts receivable and/or inventory assets than agreed as the “borrowing base” required for the revolving line of credit amount currently outstanding Insufficient trailing and projected cash flow to make debt service Net operating losses for the current reporting period A top-line sales decline from last year to this year Fixed-asset devaluation below the agreed loan-to-value ratio (i.e. your building is worth much less than when you got your bank loan on it)

If, after this brief assessment, it appears you are at moderate or great risk of having your bank loans pulled or not renewed, what should you do? The answer is “shop your loan,” or have a professional shop it for you.

Most commercial banks are essentially the same when it comes to credit assessment and the types of loans they can make. In the current climate it is nearly impossible to find another bank to take over your loan if your current bank wants you to exit. So walking up and down the street to shop your loan will not be productive.

Where else can you turn? The answer is alternative lenders. These are primarily independent asset-based lenders and financial services arms of banks. Where do you find alternative lenders? Here lies the problem. In the small-business lending world, alternative lending is fragmented and difficult to navigate. There are many lenders and an abundance of financial products but few lenders that will make one loan on all the assets of your company, like you probably had with the bank. Usually, each alternative lender specializes in a certain asset class. They generally will not loan on other asset classes.

Additionally, the pricing for this alternative lending can range from extremely expensive to very reasonable and similar to your commercial bank pricing. These pricing variables are based on a risk assessment of the loan and the type of risk exposure these respective lenders specialize in. If you happen to pick the wrong group of lenders to shop your loan, you will be paying more than you deserve to pay at close.

You are also, of course, left with the problem of having three or four new lenders, each with different terms and pricing, lending on different collateral. This “circus” of lenders can definitely be coordinated to successfully replace the loans your bank has terminated, but it can be difficult, frustrating, and time-consuming for any small-business CEO or CFO. Finding the correct lenders, getting them to cooperate with complex legal documents such as subordination agreements, and then helping them to close simultaneously is challenging. Add to this the normal operational duties of your business, lack of experience in the sector, and an aggressive bank harassing you to get out, and the entire exercise can be exhausting.

A smart alternative is to spend time finding an advisor who knows what he or she is doing in the alternative lending space. You need someone who is familiar with the many lenders and who has experience negotiating and shopping loans to appropriately priced sources of capital. In the small-business world these are called advisors; in the mid- to large-business arena, they are called investment bankers.

There are a few true investment bankers in the small-business arena, such as our firm US Capital Partners, Inc. US Capital is both a lender and lead arranger or advisor on restructuring small-business debt. When it is cost effective, US Capital will bring in another lender for your loan, then provide additional capital from its own fund to “fill the gap” in required capital to take the bank out in the most cost-effective way.

When looking for a recapitalization advisor or small business investment banker, it is important to look for someone with recent experience in arranging or making loans similar in size to your requirement. Working with someone who has a track-record of larger deals may not be the best choice. The world of large-business or middle-market finance is very different to the world of small-business finance as far as lenders and structure are concerned. The chances are the advisor for larger businesses, although competent, will not be very familiar with the particular lenders in small business or even the common loan structures in this space. They will therefore take longer to get results, and those results may not be optimal.

The bottom line: If you choose to use an advisor to assist you with the financial restructuring of your company, consider someone who does, and has done, deals of your size.

If you would like to know more about how your business can secure the funding it needs, visit US Capital Partners at http://www.uscapitalpartners.net or call (415) 882-7160.

With the internet such a huge part of our daily lives, many investors have access to a wide range of instant investment information.

Whether you’re into stocks, bonds, mutual funds, futures or options, there are tons of electronic investment newsletters offering to turn your small stake into a giant fortune. All you need to do is subscribe and watch your portfolio soar.

Yeah, right!

As a practicing investment advisor specializing in no load mutual funds, I have received my share of e-mails from disillusioned subscribers wanting to know how to better evaluate newsletter services.

While there are no absolutes, I can give you a few pointers that might help you make a better decision:

1. Stay away from the most obvious hype. Ads promising to turn your ,000 into million in 2 years by buying this incredible stock or hot commodity are not promoting investing — they are selling gambling. Follow the “If it sounds too good to be true, it usually is” rule.

2. Most mutual fund newsletters won’t make those outlandish claims, but some of them are still pushing the truth as far as they can. So try to get a free issue or two to examine. If you can’t get a sample, check if they have a trial period? How about a money back guarantee? If not, pay with your credit card. These days you’re pretty well protected by this payment method even if the newsletter doesn’t offer a satisfaction guarantee.

3. Consider the editor as well as the disclaimer notes. Is he or she only publishing a newsletter? Or is he also an investment advisor with a practice?

Why would that last point matter? I may be biased, but I believe that you get far better advice from a writer who also is in the trenches every day investing their own as well as their clients’ portfolios. They would have far better insights as to what works and what doesn’t than someone who has the theory down but no practical experience.

4. Look at the investment recommendations. Are they suggesting you buy into a certain orientation such as mid cap, small cap or large value? Or are they picking specific investments based on a variety of technical indicators?

In my no-load mutual fund practice I use specific recommendations, even for my free newsletter subscribers. They are first based on my trend tracking indicator giving us the green light and secondarily on the selection of mutual funds based on momentum analysis.

The more specific the recommendations, the better, because that allows you to follow along either just on paper (which you should do at first) or with your actual portfolio.

5. Are they recommending when to sell a mutual fund either because of gains or to limit your losses? This to me is the most important issue. If there is no plan in place for getting out, how will you ever know when to sell? This has been the greatest downfall of most publishers (and investors!) since the bear market of 2000 — not selling even if market conditions dictate it would be in your best interest to do so.

The advice of most newsletter services can make you money in bull markets. However, with the continuation of the bear market still a distinct possibility, be sure to look at any newsletter’s investment advice record since 2000.

For many people investing is an emotional issue. The pendulum swings between fear of loss and greed for greater returns. If a complete methodology for buying and selling is offered in a newsletter, such as one I advocate, be sure that it fits your emotional make up.

There is no sense in following an investment approach, which may have merits, if it means sleepless nights for you. You won’t stick with it for the long term — and long-term investing is essential for making your portfolio grow and prosper.

So, the bottom line is to look for a newsletter that:

* does not promise the moon,

* has a track record through up and down markets, and

* recommends an approach that not only is compatible for your investment style but also has an exit strategy so you can capitalize on your gains — in the bank, not only on paper.

Following these guidelines may not make you rich, but it will help you avoid some bad advice.

Selling and buying stocks is a craft you should work on very careful.

In my last article on buying stock at discount, I demonstrated the power of Knowing your craft with option trading.

At this time you are in a position with long stock, and you are wishing to sell.

before we start we need to level up the knowledge with all the readers.

  Option – is a contract that the buyer has the right but not the obligation to exercise.Basically we will discuss the stock options.

  Call option – The buyer of this contract has the right but not the obligation to  Buy the stock from the seller (writer) of this option.

Call at the money: the exercise price is equal or close to the stock Price it the market, Lets say if the stock price is .6 then the at the money strike will be 35.

Time to expiration- this is the time left for this contract to exist. At this time, ether you exercise or receive money if your option is in the money it has an intrinsic value. in the money : if the stock traded at 40 and your call options strike is 35, it meens your option is 5 dollars in the money and you can exercise your option and get the stock worth at the price of 35. Or you can sell the option before the experation the receive the money difference. 

Call  option price rise when the stock rise.

Basic behavior of the option pricing, when the stock goes down the price of the option is inflated (implied volatility rises). It means that in addition of the rise in intrinsic value of the option, It also inflated because of the uncertainty. however, there some times a behavior is that when the stock rise the IV rise too, it happens when the market do not agree with the stock rise and bet against it.

F5 networks inc.

From what we see is tha this companies stoke rises and it IV rises also,its insinuating that the market do not agree to its movement.

and because of tese redings you have decieded to sell the stock.

one way to sell is in the market for the price its trading now (June24,2008)at : .27.

the other way is to

Call at the money strike:30 experation at end of Jul trads at: .35.

It meens, if you get exercised you will sell the stock at the price of 30$ and add the permiune.

if you calculate the premiume in percentage points you will see about 4.5% added to your gain already you have from the stock.

and if you will not get exercised still you will get to keep the premiume.

this strategy is called covered call.

You should not be afraid to ,

free stock picking

Eurodollars Flow into the U.S. Through Triple Net Lease Investments

Germans becoming “landlords” for U.S. firms through passive real estate investments.

Bay Harbor Islands, FLORIDA (October 18,2007) –Triple-Net (NNN) investment opportunities in U.S. markets are attracting the attention — and funds — of German banks, REITs and investors, reports Horn Capital Realty, Inc. of Bay Harbor Islands, Florida.

“These conservative types of passive real estate investment can be more rewarding than typical real estate ownership because they require virtually no management,” says Jonathan S. Horn, President, who has personally handled over 0 million in triple netlease sales, sale-leaseback financing, build-to-suit development and debt and equity placements throughout the United States.

“The rate of return and benefits from investing in a triple net (NNN) investment can be greater than your typical real estate investment, without taking into consideration any tax issues,” said Horn. His firm has dealt with such large national tenants as Blockbuster Entertainment, Eckerd Drug, Kmart, Home Depot, Wild Oats markets, Taco Bell, Wal-Mart and Walgreen Drug Stores.

A triple net lease (NNN) transactions is typically described as a free-standing facility occupied by a single-tenant on a long-term triple-net lease. A NNN can be described as a bond-like investment encompassed by real estate. A NNN can be structured in three ways:

1. Sale-leaseback financing is structured through the sale of a property owned by a tenant who sells it to an investment group and leases it back on a long-term lease.

2. The sale of an existing NNN property leased to a tenant owned by a third party investor.

3. Build-to-Suit. A developer enters into a long-term agreement with a corporate tenant and then sells the transaction upon completion of the development or before.

A triple-net lease is typically between 10 to 25 years. The tenant pays a negotiated annual rent equal to 6% to 10% of the contracted sale price. Most often that rate is credit-driven. In other words, tenants with investment grade ratings pay a lower rate because they are perceived as less risky, while non-investment grade tenants typically pay a considerably higher rate. This is similar to corporate bonds.

A triple-net lease property frees the investor/landlord from any property responsibility. The tenant agrees to pay all costs associated with the property use and occupancy, including real estate taxes, insurance, improvements, on-site property management and maintenance.

Page 2 – NNN Investments

As an example, Horn is currently negotiating a sale-leaseback transaction between a group of German investors and a U.S. retailer, offering 6 single-tenant properties valued at million US each, or million US total. Since the company has earned a high credit rating, the investors have agreed to a flat rental payment of 6.4% for the entire lease term, which equates to a predictable return of ,920,000 US annually to the investors. With a NNN lease, the U.S. retailer will be responsible for all expenses, including taxes, insurance, management, general and structural repairs, maintenance and improvements.

National Real Estate Investor, a leading U.S. trade press magazine has reported, “The sale-leaseback industry has restructured the ownership of trillions of dollars worth of the nation’s (U.S.) corporate real estate assets, and the trend seems to be continuing.” Another respected publication, Institutional Investor, stated: “The triple-net lease offers a long-term lease with the guarantee of steady cash flow and practically no risk.”

Primary Investor Benefits

“The investor, whether it be a bank, a trust, a real estate investment trust (REIT) or an individual, earns an 6% to 10% yield on the annual lease and usually benefits from a conservative 2% to 5% annual (compounded) appreciation on the property’s value. Due to the annual depreciation allowance on the building, an equal portion of the annual yield also is sheltered from Federal income taxes,” Horn explained.

“For overseas investors, there is the security of both the tenant and the real estate, and there is minimal risk with investment grade tenants, as well as an opportunity for even higher annual cash returns from below investment grade tenants.” he added. “The investor owns the

property with zero on-site management responsibilities while enjoying an annual high interest cash return on a passive investment. These are bond-type investments with excellent ‘coupon clipper’-type of returns.”

Triple Net Lease transactions generally require a long-term investment of million US to 0 million US or more. Such investments are available for all types of existing or build-to-

Page 3 – Sale/Leaseback & NNN Investments

suit real estate, including service centers, fast food establishments, industrial and health care facilities, office and educational buildings, distribution warehouses and retail stores.

At any time, the investor/landlord can cash-out, often with a profit, by selling the property. When the lease term expires, the investor has numerous options: a) Hold the property,; b) allow it to further appreciate in market value; c) lease it again at a higher rate to the original tenant or a new tenant., or d) sell it to a developer to be renovated for a higher use.

Horn Capital Realty, known as one of the most experienced, efficient and cost-effective facilitators, specifically focuses on sale-leaseback financing and NNN transactions. The company is currently working with several very large American firms seeking financing for their properties.

For more information about triple net lease or for more related subjects about NNN please review this webpage http://www.triplenetleasefor1031.com

With all the hype regarding gold and investments, it would be hard to see why you should invest in them. They are, as they say, practically immune to inflation, have charts and statistics to back up the claims that their value is increasing and the list goes on and on. But basically, is Gold all that it is said to be? Millions and millions of investors are opting to invest majority of their stocks or diversifying most of their portfolio through gold investments and gold companies. They believe that this will protect their money from inflation, and still, pay dividends in a few years to come. Yes, gold has been successful for the last couple of years or even a decade, but, have you really thought any reasons why to invest in gold?

Well, here are a few reasons why, you should do so:

First. Remember, gold is a speculative investment. Back in 1980, gold would have sold in the market for 0 an ounce. Pretty modest. Right? Well, not quite so. If you happen to have the time, look at any proven charts of gold’s progress during the past three decades. It will surely surprise you. Gold, from 1980 until only as recent as 2003, sold only for 0-0 an ounce, which means that you’re investment during the 1980s would take at least 20 years to yield some profit, whereas you could’ve gained at least a decent amount of profit if you had invested it in real estate and stocks.
Yes, I do keep in mind that all kinds of investments are somewhat speculative. However, real estate, stocks, high-tech or any other kind of investments, except for gold and precious metal investments are easier to predict. That’s because they have a proven formula, and that’s the law of supply-and-demand, whereas there has been no such definite proof for a winning formula to predict gold’s movement in the market. Plus, add in the fact that gold will only give you profit when you sell them, whereas stocks and real estate will pay dividends and rents on a regular basis.
Given that you invested in 2003, you would clearly rake in some profit by 2004, 2005 and even up until now. However, what happens if ever you invest in it again and it turns out to be one huge flop? Remember, people can only speculate on what is the next “in” thing in the market. For the past decades, real estate, stocks and investments in the field of technology were speculated to yield profit. What happened? Due to the bandwagon effect, people never really raked in profit due to that, and some even lost their money due to their investments. Remember, do not always but into what these speculators say. Do your own share of research about the market, its movement and the economy.
Yes. I do know that I’m not an economist, and I can’t even point out with even 50% accuracy what will happen to the market. I, however, have the power of research with me. Remember, gold isn’t the only investment that will do well during times of inflation. Most of the time, even stocks and real estate provide assurance during those tough stretches. For example, ever since the U.S government went on to spend lots of cash for their plans to save the economy and for other expenditures, stock prices as well as gold have increased. Paying attention to the market, and what happens to the market, will help you manage your investments carefully.

Blindly giving money over to someone to start a business is an exceedingly risky endeavor. After all, most businesses, nearly right after the website is put up and quickly following an unsuccessful trade show to two, go bust.

After all is said and done, most of the time, the money would have been better spent via a charitable donation or two. This is why angel investors require a significant return on their investment and, rightfully so. Upon giving money to any start-up company, as an investor, there are certain attributes that you should look for in the company and the people who are starting the company.

Although aligning these attributes does not guarantee success, it does guarantee a higher success rate. Below, you as a potential investor, will find some corporate attributes or basic factors that any angel investor should consider prior to inking the contract and writing that “start-up” check.

If you don’t know the person who is starting the business that you are going to invest in, don’t pull the trigger. This is regardless of how enticing and cutting edge the idea sounds. Even a third party recommendation can be shaky as you still don’t know the personality and business traits of the 3rd party individual.

As a business owner and silent investor who is handing money over, firmly understand that a trusting, cohesive relationship must be formed almost immediately or, more likely than not, the company will not work out. Remember, business investing should be fun and monetarily rewarding, not argumentative and stressful.

When it comes to fraudulent behavior, friends and family are a lot less risky (that is, unless your name is Madoff) and you won’t have to spend time and money having your accountant look over the books on a weekly basis. A lack of trust can spread too quickly between yourself and the owner of the company. Also, the moment any trust is broken, you’re in for a psychologically hard ride as it is hard to regain trust between the two disagreeing parties.

Thus, it’s best to keep it directly in the family or with close ties a.k.a. people whom you consider to be family. A gauge that I believe proves to be accurate is what I call the “Wedding Gauge.” If the person was at your wedding, the odds of corporate theft significantly decrease. This is not only because the person has some loyalty to you, but if they were to also act in a dishonest manner, the majority of the people whom they know, would find out.

Needless to say, this type of potential embarrassment is a huge deterrent for the party who would possess to power to steal from the corporation (at least one would hope so). All investors should go into a new business investment clear headed and with a sense of excitement. Most know that things would never get to a point such as the aforementioned, but it’s risk management defined and it is necessary.

Upon funding a business, don’t give money to just anybody; this is regardless of your relationship. If you want to be hands-off regarding the company, you should always bet on the hitter who is already has a batting average of.290 rather than the eager kid who is still in the minor leagues.

When it comes to opening a business, many people fail because they, although they believe they are, are not ready for all the responsibilities that opening a company from the ground-up entails. It is a lot of hard work, and as someone willingly giving up money, past results should be heavily weighed into your decision as to with whom to start the business.

The concept of “clean tech” is a response to the projected population growth on the planet, which is estimated to be 2.3 billion people by the 2050. The theory is that clean tech companies, which address environmental sustainability as part of their overall business strategy for profitability, will be the model that successful companies will have to use in order address the increasing demand for food, clothing, shelter and other scarce resources that will only increase as incomes rise across the globe.

Where “green tech” evolved in the 1970s from government controls intended to mitigate the effects of manufacturing and agricultural pollutants on the environment, “clean tech” is built into the business model from the very beginning. Green tech has traditionally always seen as an expensive, but required, drain on a company’s profits. Clean tech is built into the business strategy as an acknowledgement that resource scarcity and pollution exist and must be addressed when planning profitable strategies. It is a long the same lines as when a business incorporates the cost of paying office rent or the cost of purchasing manufacturing materials into its overall budget.

Also, there are some products which are included in green funds which would never be included in a clean fund, such as ethanol. Where an alternative energy fund would include a company which produces ethanol in its fund because ethanol is considered to be an alternative to petroleum based fuels, a clean tech fund would not include an ethanol-producing company in its portfolio because of it’s net carbon effect. Ethanol production requires so much petroleum based fuel in order to grow the corn and process it, that there is negligible positive effect on the environment for using it.

Green tech Exchange Traded Funds (ETFs) tend to focus narrowly on a single business sector, like energy, manufacturing or recycling. As a result, green energy Exchange Traded Funds can be extremely volatile and sensitive to fluctuations in the price of oil. Clean tech ETFs have not been so volatile (although, in fairness, they have only been around since the Clean Tech Index was created in 2006, so there is not a long history to track). Clean tech companies exist across a broader range of business sectors like agriculture, manufacturing, transportation and new materials. As a result, clean tech Exchange Traded Funds have seen a more stable performance, comparable to the returns from the S&P 500 Index.

All investors prefer to invest in a diversified and balanced way, whereby the funds are spread out rather than being concentrated in one basket alone. Present day investments range over stocks, shares, mutual funds, insurances, pension plans and most importantly into estates and properties. Allocation of funds is governed by a number of parameters like taxes, goals and preferences.

Is real estate a good investment? The rich seem to think so! Without a doubt most high net worth individuals put their money into real estate. This is either in the country where they reside or “offshore” in places where they like to holiday or let it out to holidayers. Places which feature and fall into the popularly opted for locations are Hawaii being close to the US, or in the Balerean Islands in close proximity to Spain and such other places.

Why do high net worth individuals invest in real estate? Today most families love to holiday at sea resorts or in the mountains and other places of interest. So buying property in such places is ideal for letting out during peak seasons when the place is crowded with tourists. Out of season is the time then when the place is available for you to holiday or get-away.

The category of residential and commercial properties falls within real estate investments, and are available in most areas, dependent on where you would like to invest. Many high net worth individuals invest in resorts and hotels as well. The various offshore companies and brokers can inform you on real estate available and how the taxation laws work.

Investing in real estate with mortgage facility helps save taxes legally. Most of the brokers and financial advisors offer their customers personalized and comprehensive advice on matters of real estate. They also arrange for local finances in cases of investing abroad. Investors are taking advantage of the low borrowing rates to finance direct investments in commercial and residential properties.

The good thing about locating and identifying real estate abroad and even locally today is that it is becoming easier and easier. All you have to do is access the information over the net. However, in the case of high net worth individuals, you do not have to do it yourself. You only have to tell your broker or investor and the job is done. The broker will do all the research and may even check out the property to give complete information on the property to his client, i.e. the net worth individual. He will save you the time and effort of running property to property, which is to be done only after he has short-listed the ones nearest to your requirements.

The broker takes on the responsibility of reviewing the various financial models and the current interest rates on mortgage taken by banks and insurance companies.

Real estate investments are on the rise for the simple reason there is an increase in the number of high net worth individuals all over the world. High net worth individuals have major global or national investment advisors handling their asset management portfolios.

Right lets look at standard – base level asset management & banking position – the sort of thing the very best graduate candidates can expect as their first banking job in Jersey. To understand the role of financial analysis and just what analysts do you need to understand the deal cycle of the corporate finance team. By deals we could be talking about follow on offerings, exclusive payments, IPO’s, company mergers or even asset purchases. These all start with the initial pitch to the corporate entity – usually in competition with other banks. This is often referred to as the “beauty parade”. Here senior bankers will present just what the bank can do to assist the company and offer their initial analysis of the potential transaction.

One of the key tools employed by the senior bankers is the “pitch book”. These days this is usually a PowerPoint presentation in soft and hard copy that describes the qualifications of the bank and detailed analysis of the existing marketplace. More often than not it also includes a valuation of the potential client, their proposed new entity and any other metrics that will illustrate the skills of the corporate banking department. Should the company like what it hears and want to pursue this transaction then it will use the bank to execute it on their behalf. Sometimes these can happen quickly – on other occasions they have been known to take years. A successful corporate banking division will have several deals on the go at any one time.

The Junior Analyst quite often starts their Jersey banking careers by helping but these “pitch books” together. Should a Jersey based Junior Analyst show strong skills and gain the confidence of the senior bankers they can expect at some point to accompany them to assist in executing one of these deals.

This sounds simple enough but there is a lot to a Junior Analysts Jersey job. The first point that should be made is the level of drive and commitment that will be expected from you. In this, probably your first private banking job in Jersey you will work very hard – rising at the crack of dawn and ending long after dark. Much of your weekend will be filled with catching up on training and knowledge you need but have no time to study for in the week! Expect to work a real world week of around eighty hours!

Your day to day duties will revolve around the preparation of a series of analysis. The first and easiest to explain is “Comps” or comparable companies’ analysis. This is a way to value companies and publicly traded organizations. By using this methodology to create your analysis you can structure intricate and complex financials and create a real world snapshot of how value is created in a market segment or industrial sector. The second major area that you will be asked to create analysis around in this Jersey banking job is discounted profit analysis or DCF for short. The DCF is a key component of the pitch book as it needs you to build financial models for the target company, working out its weighted cost of capital and using it to discount certain cash flows so being able to ascertain its real value.

Further sorts of research you might be asked to create include precedent purchases analyses and leveraged buyout products (LBO?s to their fans). The key thing to remember is to triple check your work, ensuring there are no errors that can be seen in the pitch book.

Most Jersey based banks have first rate training programs and have a series of mentoring and guide analysis templates the budding junior analyst can use. It is a steep learning curve but one that can lead to a very rewarding career in banking as the best senior bankers need a detailed understanding of analysis and how to deploy it. What better way to learn this than having actually worked in preparing the analysis for a pitch book.

So all in all the role of a Junior Analyst is an excellent way to get into private banking in Jersey. Just be aware you will have to pull the odd all nighter to survive the first few months’ hard slog, but always keep the bigger picture in mind. There is no better way to build a career in banking by starting at this sort of banking job in Jersey.