Saxo Bank Releases New Monthly Equity Research on Value Stocks in tradingfloor.com

Hellerup, Denmark (PRWEB) September 4, 2010

Saxo Bank, the specialist in online trading and investment, has launched a new monthly equity research publication entitled “Global Value Equity Strategy” focused on highlighting the most undervalued stocks from around the world. It will appear each month on the Equities section of http://www.tradingfloor.com.

The “Global Value Equity Strategy” will highlight a value portfolio on 30 of the most undervalued stocks from around the world according to a proprietary equity screening model. Each issue of the publication will included back testing results and performance evaluation of the live portfolio.

“One of the many advantages of such a value strategy is that the investment horizon is longer, usually one year or more, eliminating short-term volatility currently prevalent in equity markets,” said Christian Blaabjerg, chief equity strategist at Saxo Bank. “Equity related investment letters are widely distributed on the Internet nowadays. Few of them, however, focus on undervalued securities.”

The “Global Value Equity Strategy” report includes a brief introduction to value stocks, how to recognize them and why investing in them is likely to generate superior returns compared to widely used benchmarks. The phrases “growth stocks” and “value stocks” appear fairly often in financial reports and publications and the “Global Value Equity Strategy” explains that a growth stock is a company, often large and well-known, which has generated high and stable earnings growth over a longer period of time. Investors tend to value such stocks higher as they extrapolate historical growth into the future. The problem is that only few stocks are able to maintain such earnings growth for a long time and competition typically results in a slowdown, eroding margins and market share for growth companies. This seems to explain why they tend to be inferior investments.

In backtesting from the start of 2006, the Saxo Bank Global Value Equity Strategy outperformed its benchmark index by far in 15 out of 18 quarters, even when dividends are excluded.

About Saxo Bank

Saxo Bank is an online trading and investment specialist, enabling clients to trade Forex (http://www.saxobank.com/en/trading-products/forex/pages/forex-trading.aspx ), CFDs (http://www.saxobank.com/en/trading-products/cfds-stocks/pages/online-cfd-trading.aspx ), Stocks / Equities (http://www.saxobank.com/en/lp/equity/pages/equity.aspx?int_cmpid=a1192_Link_FrontPage ), Futures, Options and other derivatives via SaxoWebTrader and SaxoTrader, the leading online trading platforms. SaxoTrader is available directly through Saxo Bank or through one of the Bank’s global partners. White label is a significant business area for Saxo Bank, and involves customised and branding the Bank’s online trading platform for other financial institutions and brokers. Saxo Bank has more than 120 white label clients and boasts thousands of clients in over 180 countries. Saxo Bank is headquartered in Copenhagen with offices in Australia, China, the Czech Republic, France, Greece, Italy, Japan, the Netherlands, Singapore, Spain, Switzerland, UK, and the United Arab Emirates.

Media enquiries:

Kasper Elbjørn

Head of Group Public Relations

Saxo Bank

Saxo Bank Corporate Communications

Philip Heymans Allé 15

2900 Hellerup

Denmark

+45 3977 4300

http://www.tradingfloor.com

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Understanding Hard Money Loans by Hard Equity Financing

Commentary by Steve Jacobs and David Errante

NEW YORK / MIAMI, November 21st 2010

 

With the number of REO foreclosure properties on the rise and the decline in home values throughout the country, there are certainly good deals to be found if you are looking to purchase an investment property or two or refinance a default personal mortgage loan. The fact is not enough real estate professionals and investors are familiar with hard money loans.

 

No matter how good of a deal you can get on a property, obtaining & qualifying to purchase an investment property can be difficult under conventional lending as of today. Additionally, many conventional mortgage lenders have not only tightened their lending guidelines, but have simply done away with financing investment properties.

 

If you are planning on building a spec home, purchasing a property as an investment, or are even a real estate agent working with someone who would like to purchase a short sale or investment property, knowing what types of private financing are available and a general understanding of how private “hard money” financing works is a must.

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Hard money loans are generally used to purchase non owner-occupied investment properties or refinance owner occupied foreclosure bailouts. Hard money loans are also equity-based instead of credit and asset -based, so the borrower does not have to meet the same lending criteria, income ratios, and credit worthiness that they would have to meet under conventional lending guidelines.

 

Hard money deals are backed by private investor capital and are reviewed and approved on a case-by-case basis. Generally, if the borrower is interested in purchasing an investment property, the only real requirement is that the property truly is a good investment for everyone involved. So what signifies a good deal in the eyes of a hard money lender?

 

Here are some general guidelines hard money lenders follow:

 

- The total loan amount is no greater than 65% of the current, as-is value of the home. This is also referred to as the loan-to-value ratio or “LTV.”

- The borrower has a stake in the property rather it be their own cash they are investing or even other investment properties they are using as collateral to secure the loan. Most hard money lenders generally like to see that the borrower has at least 20% of their own cash invested in the project, not including closing costs.

- The lender must also hold “first position” on the property. This means that the hard money lender must hold the primary, 1st mortgage on the property. Hard money lenders will rarely lend a 2nd mortgage on a property unless there is other collateral involved.

- Another benefit to hard money loans is that often times the total interest and points for a portion of or the entire loan term are “rolled” into the loan amount and paid in advance at closing. This means that most borrowers will not have to worry about paying a monthly mortgage payment to the hard money lender for most, if not all of the loan.

- Hard money purchases can be closed in as little as 10 business days and financing is available for nearly any type of property. Many hard money lenders will finance everything from raw land, to single family rehab properties, to large commercial, hotel, and condo developments.