Good, Bad, or indifferent at lest there doing something IMO



Cheers Buds \_/

A stop loss should take into consideration the market you are trading, your trading goals, your trading time frame and your risk level.

While this is how most traders learn about and use stop orders, there are some other ways that they can be used to help your trading. For instance, you can use a buy stop order to get into a long position. If the security has been trading in a channel, or is trading in a range between support and resistance, you can place a buy stop order just above the resistance or upper channel line. While the price continues to be constrained this has no effect, but if there should be a breakout to the upside, the buy stop order will become a market order to buy, and you will get in early on the new uptrend. Even though it may seem strange to wait for the price to go up before buying, if there is no breakout then you will have saved the cost of trading.

If you're looking at a possible short position, you would do the opposite. In this case, you would set a sell short stop order under the support level, and this would trigger if the price broke out to the downside. You can see that in practice it is very similar to the protective stop loss order, which would be placed under recent support to take you out of the position if your long trade was to fail. If you are trading short, then your protective stop would be a buy stop order above the entry price.

Still no update, what is going on with PMI?



Cheers Traders \_/

Making use of Stop Loss Orders

A stop loss order is by far one of the most popular order types used by traders to manage risk. Many traders and investors use stop loss techniques to put a cap on the absolute risk. Using this risk management technique, traders can specify the level of loss at which a trade is automatically closed.

Most traders have heard of stop orders, and it's usually recommended that you use them frequently to prevent runaway losses if your trade does not go in the direction you anticipate. They are commonly called stop loss orders in this function. A stop loss order simply consists of an order to close a position that is set at a price below or higher than the prevailing market price. What you do is to enter a stop order to sell just under the current market price, if you're taking a long position. If the price doesn't go up but instead goes down, when it hits the level you set in the stop order, the order becomes a market order to sell. Basically, here you are placing an order to sell at a price that you're willing to shut out your open position. If you're taking a short position, then the idea is the same with the stop order above the entry price.

Nobody can watch their trading positions on a 24 hours basis so it is important to make full use of all the different types of automated orders so you do not get caught out. Although this can be painful at the time, the disciplined use of stop loss orders helps overcome the natural tendency of investors and traders to stick with their losses in the hope of a turnaround.

Stock Splits

Traditionally viewed as a bullish signal, stock splits have established an almost cult following in the States. Often, it seems that the stock price afterwards a split is drawn back towards the original price, regardless of whether there was a split to create more shares or a reverse split (consolidation). Another reason for share prices to rise after a stock split is that demand increases, as more traders see the shares as affordable. A recent example of this is the split in Warren Buffetts company the 'B' shares in Berkshire Hathaway (BRK/B) were split 50 for 1 in early 2010, and many investors seem to have been impressed enough by this buying opportunity to force up demand and push the price up to around $80 each. Berkshire Hathaways other shares, which have never been split, the 'A' shares are still beyond the reach of many investors - they have traded up to $140,000 each!



More likely, is that stock splits exaggerate a current stock trend. If the price is reaching a level from which a stock split seems the right thing to do, then it must have enjoyed a prolonged uptrend. So a stock in a strong uptrend that splits its stock from say £30 to £3 for liquidity issues is very likely to re-list at above £3 after the split. However a stock that has reached a plateau and is now performing indifferently is less likely to outperform after the split. Of course stock splits do not in any way change the value of a company, just the public perception.

There are several phases to a stock split, and you need to understand them to know where to trade for the best returns. The most profitable time is before the announcement of the split, and you can only guess at this stage which companies are likely to consider splitting their shares. There are some Internet services and reports that claim to highlight likely candidates, or you can do your own research.

When the announcement comes, the share price often jumps, and may increase over the following days. To capture this move, you need to be quick on the draw. It helps if you have previously shortlisted possible candidates, and are ready to trade accordingly. It's important to move your stoploss, particularly if you entered the market before the announcement, as many stocks will tend to drift after the initial flush of enthusiasm. It takes a strong stock in a leading market sector to continue the climb.

You will normally see a run-up in price when the date for the split is coming near, and you can play this by keeping an eye on the stock so that you can jump in when you see this short-term trend starting. When the split actually occurs, the price usually climbs quickly. Investors who waited for the stock to split to what seemed an affordable level will now be buying in, increasing demand and pushing the price up.

The final price movement caused by the stock split is often a decline. The excitement of the split tends to make the new stock overbought, and inevitably there is some consolidation later. If you are so minded, it's quite possible to short sell the shares at this time, and profit from the pullback. This is a relatively low risk strategy after the increased demand has dissipated.

TRADING UPTRENDS WITH CHARTS

General Appearance of the Chart
It is possible to trade a trending stock using purely the general appearance of the chart.

The strategy is to buy stocks whose chart is sloping upwards and to sell if the slope ever turns downwards.

The trend you buy into must be observable within your favored trading timeframe.



Concrete Buy and Sell Signals A common failing in beginning traders is a reluctance to sell stocks at a loss. If we allow beginning traders the luxury of exercizing discretion - as in trading the general appearance of the chart - it often leads to disaster.

As an beginning trader, you must set hard, objective buy and sell signals before you embark on any trade. If you want to trade using charts, the best way to do this is with trendlines.



Trend Lines
A trend line can be drawn when three peaks or troughs on a stock's chart all lie on the same straight line.

For uptrends, trendlines are drawn by connecting troughs - as shown above.

The trendline above was first drawn when points 1, 2 and 3 could be connected with a straight line. The stock's price graph has subsequently respected the trendline by touching it but not falling below it at points 4 and 5.

Most charts do not provide us with the opportunity of drawing perfect or near-perfect trendlines of the type shown here. It's advisable for beginning traders to restrict themselves to trading stocks for which they can draw perfect or near-perfect trendlines.

If you buy a stock that's trending upwards, the sell signal is obvious. You sell when the trend breaks - in other words when the stock's price closes below the trendline.

Shouldn’t that be the rule on every trade?



Cheers Buds \_/

The Battle of the Exit Strategies
Scaling Out vs. All or None

Simple concepts usually work best in trading - especially when it comes to Exits. However, keeping it simple doesn't exclude Exit plans with several features - so long as each aspect is designed to accomplish a goal.

For example, every Exit Strategy should do three things - minimize losses, maximize profits, and limit the amount of profit you give back. You can minimize losses with an initial "sell-all" stop that protects you if the trade moves in the wrong direction, maximize profits with a "sell-all" trailing stop that allows for normal price fluctuations, and avoid giving back too much profit by tightening the trailing stop when you reach a certain profit target.

While this three-pronged approach specifically addresses each objective, one widespread strategy used by many traders does just the opposite. The basic idea is to exit your position in several planned increments as opposed to exiting the entire position at one time. This strategy is sometimes referred to as "Scaling Out." Like the first example it uses multiple features. However, instead of meeting the three objectives of any good Exit plan, it works against them. Here's how.

Lets say you open a position with 600 shares. Under the Scale Out plan you might sell 1/3 of them when you reached the break-even point for the trade. Then you would sell another third when you made a specific profit such as $1000. Then you might hold on to the remaining shares until you have a $2000 profit, or keep the position even longer and let the price run way up.

Although the Scale Out method is commonly thought to reduce losses and increase profits, it has the unfortunate quality of producing big losses and little profits. This is due to a not-so-obvious characteristic - Reverse Position Sizing.

Position Sizing protects you by limiting the amount of shares held when you are the most vulnerable. This reduces the total amount of loss. On the other hand, the Scaling Out exit plan guarantees that you will have the most shares in your position when your risk of loss is highest. This trait will quickly increase your losses.

Not only does Scaling Out increase your losses, it insures that you have the fewest shares in your position when your point gains are the highest. Instead of "locking in profits" as it first appears, scaling out locks in larger losses than if you exited your entire position at one time.

Bottom Line: Though Scaling Out is popular among traders, the defects in this Exit Strategy cause hidden damage to trading accounts. Intuitively it seems to be a clever thing to do, yet when you take a closer look you can see that it is quite destructive.

By the way - don't feel bad if you use the Scale Out method - at least you have an Exit Strategy. That fact alone puts you in the top 20% of all traders. I confess that I believed in this method for a long time because it seemed to make sense.

Oh well, live and learn!

Your statement has the ring of Charlie Sheen! Lol... but really it is really starting to look like we have a chance here with PMI



Cheers Buds \_/

Here are nine simple rules for online trading success.

1) Trade With The Trend. You can't change the weather, but you can set your sails to take advantage of whichever direction the market wind is blowing. Trade what you see, regardless of what you'd like to see.

2) Buy Strength, Sell Weakness. Stocks trading at 52-week highs usually go higher. Stocks trading at 52-week lows usually go lower.

3) Base Your Trading Decisions On Logic And Reason. Respect the power of your feelings to influence your behavior. Keep your emotions under control while trading.

4) Plan Every Trade. Trading blind is senseless. Know exactly what you will do if a stock goes up or down BEFORE you put money on the table.

5) Stick With An Online Trading Method You Have Confidence In. Realize that you don't have to be "right" on every trade. A few losers do not mean your trading system is defective.

6) Manage Online Trading Risk. Take small trading losses rather than let them become large losses. Never add to a losing position.

7) Keep A Trading Log. Even if you never use it for analyzing your trades, a journal provide a written reminder of your ability to stick with your trading plan. To boot, it's in your own handwriting, which can be pretty persuasive if self-doubt starts to creep in while you're in a trade.

8) Measure Your Results. You're trading online to make a profit. If your figures don't add up, stop putting money at risk until you know why your stock trading method isn't working.

9) Invest in your online trading education. The victory goes to the prepared, so prepare for success. Get good training and instruction. As the saying goes, "If you think education is expensive, try ignorance . . ."

Halt still T1

Check it here



Cheers Traders \_/

IMO if there going to let them go the time would be now! The longer they wait the greater possibility of default and the less likely anyone would invest the $$$ needed to keep PMI a float.



Cheers Buds \_/

PMI Group Seeks to Undo Regulator’s Seizure of Insurance Unit

The case is State of Arizona v. PMI Mortgage Insurance Co., CV2011-018944, Arizona Superior Court, Maricopa County, (Phoenix).

-- With assistance from Noah Buhayar in New York. Editors: Fred Strasser, Peter Blumberg

To contact the reporter on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.

Washington State here! cant just drive over there today! LOl...



Cheers Buds \_/

Did we find out what time there in court?



Cheers Buds \_/

I have my fingers crossed! never know, maybe the fed will give them a few billion to get the ball rolling again. Lol...



Cheers Buds and good luck today!

Split Announcements

A split announcement can be worded in various ways, and for the novice it may appear at first glance that the interpretation should be different. Let's take a look at the wording of two different announcements:

1. ABC, Inc. today declared a stock dividend of one share of Common Stock for each issued and outstanding share of Common Stock held by shareholders of record as of June 14, 2003. The stock dividend will increase the number of issued and outstanding shares of common stock of the Company from approximately 200 million to approximately 400 million. Certificates reflecting the stock dividend will be issued on or about June 30, 2003.


2. WYZ Company announced today that its directors have approved a two- for-one stock split. The company stated that on June 30, 2003, stockholders will receive two additional shares for every share they own on the record date of June 14, 2003.

Note first that ABC, Inc. announced a "dividend" vs. WYX Company's "split" announcement. Is there a difference? Absolutely not. Looking up the definition of a "dividend," we find that it is; 1) A number that is divided; or 2) A sum of money to be divided among shareholders. In ABC's announcement they are merely communicating that they will issue one share of outstanding stock for each that is held by a shareholder. The key is that there is no cash outlay compared to a "normal" cash dividend that is declared and paid.

Once you get past the terminology of "dividend" vs. "split," most announcements are relatively easy to interpret and these common elements are found:

Split Ratios

The majority of stock splits are 2-for-1 meaning that for every one share of stock owned, one additional share will be received with the result being that the shareholder will own two shares for every one share currently held. 2-for-1, 3-for-1, 3-for-2, and 5-for-4 are all popular split ratios; however, there is no limitation on the ratio. If a company wanted to execute a 50-for-1 ratio, they could. In the past, of all split ratios the 3-for-2 performed the best.

** A note on Reverse Stock Splits Although rare, every now and then you will see or hear of a reverse stock split. Investors generally view this negatively, as it is often a ploy to prop up the share price. Only on occasion is it done for a positive reason. In other words....avoid them!

Key Dates For Splitting Stocks

Split Record Date - This is probably the most confusing term within a split announcement. The reason for this is that many investors are used to associating this date with a "cash" dividend. To receive a "cash" dividend you must own the stock on the record date. In the case of a stock split, the record date is meaningless. This in itself can make the record date key since those that don't understand this may be scrambling to go out purchase the stock in hopes of taking part in the split.

Split Pay Date - This is the date that the stock dividend or split will be paid.

Split Execution Date - This date is not often found in a split announcement, but it will always be the first trading day following the "split pay date." For example, if the pay date is on a Friday, then you can expect to see the affect of the split when the market opens on the following Monday. On this date the stock price will be adjusted and you should see the additional shares in your brokerage account. Brokerages can vary as to when they will reflect additional split shares in your account. Some will reflect it immediately on the execution date and others will wait several days until the actual certificates are received.

wouldnt it be "Your Deep" ???? Lol....



Cheers Buds \_/

Ken baby whats up? I'm not even going to ask about LKEN. Just wondering about you!



Cheers Buds \_/

QSII

11/07/2011 Closed down today 1.76% to end at $39.11

Not sure? and yes KEEP UP THE SCURRYING !!! Lol...



Want so bad for this to trade again! Cheers Buds \_/

(This story has been posted on The Wall Street Journal Online's Deal Journal
blog at http://blogs.wsj.com/deals.)


By Shira Ovide

By Nick Timiraos

A closely followed hedge fund manager known for correctly betting on the
housing market's collapse four years ago purchased a small stake in the
nation's largest mortgage insurance company in a bet that the housing market
has neared bottom.

J. Kyle Bass, portfolio manager at Dallas-based Hayman Capital Management LP,
bought the 4.9% stake in MGIC Investment Corp, according to federal filings. He
said on Monday the bet reflected his view that the housing market's losses had
largely been absorbed. "You can see that the pig has moved through the python
in terms of U.S. housing losses," he said.

Shares of MGIC are about 10.2% higher in Monday afternoon trading, to $2.82.

The mortgage insurance industry has faced severe stress in recent months as
firms are forced to pay out amid rising losses on loans they insured during the
housing boom. Arizona insurance regulators took over the principal mortgage
insurance subsidiary of PMI Group Inc. last month and put restrictions on its
claims payments.

"Everyone paints the [mortgage insurance companies] with a broad brush that
since they took PMI ... they're all going to go the way of the Dodo, " said Mr.
Bass., who spoke at AmeriCatalyst 2011, a housing-industry conference.

Unlike PMI, he said MGIC has a "pretty big positive equity position," and he
said its shares could rise above Monday's opening price of $2.58 per share even
if the firm is forced by regulators to stop writing new policies. "We think
they'll be one of ... the last ones standing," he said. "We're in it for the
long haul."

Mr. Bass said his fund would have bought a bigger stake if doing so wouldn't
trigger a provision that would have limited a tax benefit for MGIC.

Fannie Mae and Freddie Mac require loans with less than 20% down payments to
have some type of credit enhancement, typically mortgage insurance. When homes
are sold through foreclosure, the insurer takes the first loss.

Mortgage insurers have absorbed billions of dollars of losses and two firms
have stopped writing policies this year. The surviving firms have raised prices
and tightened standards, but the weak economy, stubbornly high unemployment,
and declining home prices have hindered a broader recovery for the industry.

Mr. Bass said that while the housing market was still around two to three
years from firmly "bottoming out," he said any future price declines would be
quite modest. "I don't anticipate a huge decline," he said.

In an earnings conference call last month, MGIC's chief executive, Curt
Culver, said the company's home state regulator in Wisconsin had consulted with
independent experts who determined that even in a "stress scenario" the company
would have enough capital to pay its claims.

-For continuously updated news from The Wall Street Journal, see WSJ.com at
http://wsj.com.


(END) Dow Jones Newswires

11-07-11 1506ET

Copyright (c) 2011 Dow Jones & Company, Inc.

15:06 110711

How To Draft A Perfect Trading Plan
This 8-step approach to planning paves the way to profitable stock trading.

When it comes to trading stocks, it's not about how hard you work. It's about knowing the right things to do, and putting that knowledge to work. Making money in the stock market isn't so hard when you apply a simple skill essential to converting the power of knowledge into profits ... planning!

"Plan Your Trade and Trade Your Plan" is a mantra you should print out and frame for your wall. Why? Because stock traders who carefully plan have a much better chance of making money than those who don't. In fact, the simple act of drafting a plan can significantly increase the odds that your trade will be profitable.

A successful trading plan doesn't have to be complicated. Many traders draft their trading plans in a notebook or on index cards, while others use word processors and spreadsheets. Regardless of the method you choose, every trading plan must include certain components to be effective.

1. Choose Your Style
Before drafting a plan of action, traders will want to decide what style of trading they prefer. A broad generalization of "buy and sell stocks" doesn't work - the criteria needs to be specific. Successful traders make money in different ways, but each has a well-defined method. On the other hand, a losing trader's plan is always vague and ambiguous. In trading, it pays to be precise, so decide what you like to do and build your plan around that style.

2. Commit To Your Trading Rules
The best plans always include a set of solid rules that never get broken. These same rules should also address how real-time decisions will be made when managing your stock positions. Your judgment will improve as you gain experience, so it's good to allow some flexibility in less critical areas of your plan. At the same time, maintain strict rules in the more sensitive parts of your plan - such as Risk Control.

3. Determine Your Time Frame
The type of trading you prefer usually defines the time frame. Short term traders who enjoy a fast paced style won't find much action in weekly or monthly time frames, while less active traders generally find that the extremely short time horizons require too much time at the computer. Decide which style best suits your personality, and then select the corresponding time frame. It's usually a good idea to start by spending a few minutes each day. Begin by managing the trades using daily charts, then see if you want to shorten or lengthen the time frame. The RightLine Report offers a variety of stocks in different time frames. Due to the way these stocks are selected and the type of exit strategy used, most of the picks will work for traders who plan to hold positions anywhere from a few hours to a few weeks.

4. Locate The Best Stocks to Trade
Choose a method to determine which stocks to trade. If you are experienced in the markets you probably already have a number of ideas and sources. They are based on an assortment of trading strategies and tactics that take advantage of predictable market behaviors.

You may also want to develop your own new methods for locating stocks. The RightLine educational section on our website at www.RightLine.net presents numerous market concepts to help traders understand the nature of price movement, identify trends in every time frame, and choose the tools needed to capture profits.

5. Determine Entry Points
This can be a challenge, for there are almost as many different ways to determine entries, as there are stocks. Again, in an effort to make it easier for our subscribers, the Right Line Report presents specific entry points for every stock in each issue. The exact level to buy or sell short is based on a wide range of technical factors used by our analysts to reduce risk and optimize the potential gain. If you choose to select your own entry points, we provide a large assortment of articles to assist you in developing your own personal methods.

6. Use An Intelligent Method to Select the Number of Shares to Trade
Very few traders and investors realize the importance of balanced "Position Sizing." Most make the mistake of ignoring the size of their trading account when taking on new positions. As a result, many unknowingly join the ranks of high-risk over-traders, and soon find themselves in big trouble. Don't worry, it's easy to avoid when you have the RightLine Risk Manager to help! This simple tool is free to subscribers, but if you prefer to do the math yourself, here are the basics:

"Never risk more than 2% of your trading capital in a single trade or more than 6% of your capital at a time. For example, if you have $100,000 in your trading account, the most you should be willing to risk is $2,000. Before buying a stock, review the chart to locate the best place to put a stop loss order. If you determine that the stock requires 5-points to keep you in the trade while it is trending up, the maximum number of shares that you can afford is 400. ($2,000 maximum risk divided by 5-points = 400 shares.)"

You can see that although doing the calculation isn't terribly hard, the Risk Manager makes the job a whole lot easier!

7. Determine Your Exit Strategy
After you've entered a position in a stock and it starts moving, then what? Traders have a lot of different choices when it comes to exiting trades, and the method used can make a world of difference. Some traders routinely use "trailing" stops as their exit strategy of choice, while others choose to exit when the stock hits a certain price, or breaks through a support level, or approaches a resistance level. Other traders will choose to exit based on intra-day swings or expected news releases. When choosing an exit strategy, remember to plan not only for the upside, but the downside too. The exit strategy is one of the most important parts of any trading plan, and it is fundamental for traders to select an exit plan before entering a trade.

8. Manage Risk With Stops
You may already know, but a "stop" is an order to buy at a price above or sell at a price below the current market price. Stops, or stop orders, are used to protect our capital and lock in profits. Placing stops is easy, but locating the best place to put them can be quite challenging. To assist traders with stop placement, every stock entry in the RightLine Report includes a suggested stop level. And of course, we offer plenty of help on our website for anyone who wants to learn more about managing risk with stops.

Understanding why Company's Split Their Shares


Usually, companies authorize stock splits in the hope that cheaper shares will lead to increased investor interest. A company may also authorize a split in a move to increase liquidity, reduce volatility and broaden its shareholder base, thereby diminishing the chances of a hostile takeover.

A stock split increases the amount of shares that exist, but does not change the value of an investor's holdings or the market value of the company. For instance, one share worth $100 becomes two shares worth $50 each in a 2-for-1 stock split. Splits can occur in any combination: 2-for-1, 3-for-2, 5-for-3, etc.

Because stock splits have no impact on the fundamentals of a company, the interest garnered by stock splits is generally considered strictly psychological. A stock split technically doesn't mean a thing, but investors prefer to buy a stock at $30, rather than $60.

Years ago, that reason was more substantive. Brokers were once fined for purchasing "odd lots" -- less than 100 shares -- of a certain stock and splits enabled smaller investors to buy "round lots" they previously may have been unable to afford. Now, those penalties have long been eliminated.

Meanwhile, some research does seem to indicate a positive correlation between stock splits and stock prices.

A study of the performance of 2,750 companies from 1975 to 1990 conducted by Rice University professor David Ikenberry found that shares climbed, on average, about 3.4 percent in the days immediately following a stock split.

More significantly, the study found that over a three year period, shares that were split outperformed comparable issues by about 8 percentage points the following year, almost 9 percentage points the second year, and 12 percentage points the third year.

Those figures indicate some long-term investment significance can be gleaned from stock splits. Stock splits in and of themselves have no redeeming economic value, but they do contain information. That is, companies don't just randomly split their shares. They tend to do it when they are optimistic about where the company is headed.

In addition, the strong performance of the stocks that split could be related to the fact that companies which split tend to be among the fastest growing firms to begin with.

So what is an investor to do? The key is to see a stock split as a tip-off and then seek out additional clues. For one, make sure the company that is splitting has "honorable" intentions. Companies that have major stock incentive plans, for example, may use stock splits to bolster their management's compensation packages. Others may be trying to raise funds to pay off debt.

In addition, if a stock price has been fairly flat in the month preceding the split or is just generally low -- below $45 -- proceed with caution. Stagnant or low earnings and growth rates are other warning signs.

I think they are way better plays if they split the other way IMO



Cheers Buds \_/

European worries still ongoing, markets still total kayos, let’s see what QSII does Monday post split.

11/04/2011 closed @ $39.81

Today?

And that is a good thing IMO Lol...



Cheers Buds \_/

(This story has been posted on The Wall Street Journal Online's Developments
Blog at http://blogs.wsj.com/developments.)


By Alan Zibel

Influential housing and banking industry lobbying groups are clashing on
Capitol Hill over whether to restore higher limits on the size of
government-backed mortgage loans.

The lobbying battle pits real-estate agents against mortgage insurers -- and
even has banking groups on opposite sides. It comes as House and Senate
negotiators prepare in the coming weeks to negotiate the details of a bill to
fund several federal agencies through next September.

Senate lawmakers want the final spending bill to include a measure lifting
the loan limits, which fell to $625,500 on Oct. 1 in expensive markets such as
New York and San Francisco from $729,750. Under the Senate's version of the
bill, the higher limits would be restored until the end of 2013.

Powerful Republican lawmakers in the House favor keeping those limits at
their current levels. Other Republicans, however, including several from
California and New York, want to raise them.

The debate highlights a key question about whether the main goal of housing
policy: Is the best to support the weak sector or at least do no harm to it?
Or, should the top priority be reducing the federal government's footprint in
the $10.4 trillion U.S. mortgage market, given that the federal government
stands behind more than nine in 10 new loans?

The loan limits vary by location, based on local home prices in a particular
area. They have fallen to as low as $271,050 in some areas for loans backed by
the Federal Housing Administration, which guarantees loans with down payments
as low as 3.5%. Limits for loans backed by Fannie Mae and Freddie Mac can fall
to as low as $417,000.

The National Association of Realtors has been the leading group marshalling
forces to get the loan limits restored. Its allies include groups representing
title agents, credit unions, home builders and mortgage bankers. The Realtors
group is a big player on Capitol Hill, having spent $17.6 million on lobbying
last year, according to the Center for Responsive Politics.

Ron Phipps, the trade group's president and a Realtor from Warwick, R.I.,
said in an interview Friday that he is hearing from agents around the country
who are concerned about the drop in loan limits.

The change, he said, has reduced the amount of money potential home buyers
can borrow in nearly 660 counties in 42 states. That has forced home buyers to
look for cheaper homes or drop out of the market entirely. The biggest impact
on the housing market has been in the lower price ranges, rather than in cities
with high housing costs, Mr. Phipps said.

The Realtors have won many battles on Capitol Hill and don't expect this one
to be different. "We look to prevail and we expect to prevail," Mr. Phipps
said. "We are working diligently to relay the message for American home buyers
and home owners in a big way."

Mortgage insurers, however, are pressing to maintain the current limits.
Those companies allow borrowers to take out mortgages with down payments of
less than 20%. Borrowers pay premiums and the mortgage insurers absorb some of
the cost when borrowers default. The industry has lost market share to the FHA
after the housing bust, and is struggling with losses from defaults and
foreclosures. A large mortgage insurer, PMI Group Inc., was taken over by
regulators last month.

The Mortgage Insurance Companies of America, which spent $4.1 million on
lobbying last year, argues that restoring the higher loan limits would prevent
private investment from returning to the U.S. housing market, a goal of both
Democrats and Republicans.

Lifting the loan limits, the group argues, will push borrowers back into
FHA-backed loans, with taxpayers holding 100% of the risk. And of course, doing
so would hurt mortgage insurers' ability to compete for business.

"This is a very small rollback," in loan limits, said Teresa Bryce Bazemore,
president of Radian Group Inc.'s mortgage-insurance business and president of
the industry trade group. Even after the decline in loan limits, "given the
fact that home prices have fallen, most borrowers would still qualify for an
FHA loan," she said.

Banking groups are divided on the loan-limit issue. While the Mortgage
Bankers Association favors raising the loan limits, the American Bankers
Association is opposed to such a move.

"Higher loan limits have done little to increase demand or prevent home
prices from falling," wrote Floyd Stoner, the American Bankers Association's
top lobbyist, in a letter to lawmakers this week. "Private capital must return
to housing finance if we are ever going to reform the system and take the
taxpayer off the hook for the guarantee of virtually every mortgage made."

-For continuously updated news from The Wall Street Journal, see WSJ.com at
http://wsj.com.


(END) Dow Jones Newswires

11-04-11 1706ET

Copyright (c) 2011 Dow Jones & Company, Inc.

17:06 110411

--Real-estate agents, mortgage insurers at odds in loan-limit fight

--Capitol Hill battle is clash of powerful interest groups

--Lawmakers to decide whether to prop up feeble housing market or withdraw
federal support

By Alan Zibel
Of DOW JONES NEWSWIRES


WASHINGTON (Dow Jones)--Influential housing and banking industry lobbying
groups are clashing on Capitol Hill over whether to restore higher limits on
the size of government-backed mortgage loans.

The lobbying battle pits real-estate agents against mortgage insurers and
even has banking groups on opposite sides. It comes as House and Senate
negotiators prepare in the coming weeks to negotiate the details of a bill to
fund several federal agencies through next September.

Senate lawmakers want the final bill to include a measure lifting the loan
limits, which fell to $625,500 on Oct. 1 in expensive markets such as New York
and San Francisco from $729,750. Under the Senate's version of the bill, the
higher limits would be restored until the end of 2013.

Powerful Republican lawmakers in the House favor keeping those limits at
their current levels. Other Republicans, however, including several from
California and New York, want to raise them.

The debate highlights a key question about whether the main goal of housing
policy should be to support the weak sector or at least do no harm to it.
Others, including many Republicans, argue that the top priority should be
reducing the federal government's footprint in the $10.4 trillion U.S. mortgage
market, given that the federal government stands behind more than nine in 10
new loans.

The loan limits vary by location, based on local home prices in a particular
area. They have fallen to as low as $271,050 in some areas for loans backed by
the Federal Housing Administration, which guarantees loans with down payments
as low as 3.5%. Limits for loans backed by Fannie Mae (FNMA) and Freddie Mac
(FMCC) can fall to as low as $417,000.

The National Association of Realtors is the leading group marshalling forces
to get the loan limits restored. Its allies include groups representing title
agents, credit unions, home builders and mortgage bankers. The Realtors group
is a big player on Capitol Hill, having spent $17.6 million on lobbying last
year, according to the Center for Responsive Politics.

Ron Phipps, the trade group's president and a Realtor from Warwick, R.I.,
said in an interview Friday that he is hearing from agents around the country
who are concerned about the drop in loan limits.

The change, he said, has reduced the amount of money potential home buyers
can borrow in nearly 660 counties in 42 states. That has forced home buyers to
look for cheaper homes or drop out of the market entirely. The change is having
the biggest impact in lower price ranges, rather than in high-cost areas, he
said.

"We look to prevail and we expect to prevail," Phipps said. "We are working
diligently to relay the message for American home buyers and home owners in a
big way."

Mortgage insurers, however, are pressing to maintain the current limits.
Those companies allow borrowers to take out mortgages with down payments of
less than 20%.

Borrowers pay premiums and the mortgage insurers absorb some of the cost when
borrowers default. The industry has lost market share to the FHA after the
housing bust, and is struggling with losses from defaults and foreclosures.

The Mortgage Insurance Companies of America, which spent $4.1 million on
lobbying last year, argues that restoring the higher loan limits would prevent
private investment from returning to the U.S. housing market, a goal of both
Democrats and Republicans.

Lifting the loan limits, the group argues, will push borrowers back into
FHA-backed loans, with taxpayers holding 100% of the risk.

"This is a very small rollback," in loan limits, said Teresa Bryce Bazemore,
president of Radian Group Inc.'s (RDN) mortgage-insurance business and
president of the industry trade group. Even after the decline in loan limits,
"given the fact that home prices have fallen, most borrowers would still
qualify for an FHA loan," she said.

Banking groups are divided on the issue. While the Mortgage Bankers
Association favors raising the loan limits, the American Bankers Association is
opposed to such a move.

"Higher loan limits have done little to increase demand or prevent home
prices from falling," wrote Floyd Stoner, American Bankers Association's top
lobbyist, in a letter to lawmakers this week. "Private capital must return to
housing finance if we are ever going to reform the system and take the taxpayer
off the hook for the guarantee of virtually every mortgage made."


-By Alan Zibel, Dow Jones Newswires; 202-862-9263; alan.zibel@dowjones.com

(END) Dow Jones Newswires

11-04-11 1616ET

Copyright (c) 2011 Dow Jones & Company, Inc.

16:16 110411

Most traders view stock splits as high potential trading opportunities. They consider splits a positive progression in value and goodwill for companies and their investors. Corporate executives use stock splits as marketing and investor relation tools. They know that stock splits make shareholders feel better and engender a sense of greater wealth.

Critics would argue that a stock split is a non-event. They're convinced that a split is simply an accounting function with no relationship to stock performance. In fact, they think investors are "foolish" to believe there is any money to made from something as unimportant as a stock split. So who's right?

A 1996 study by David Ikenberry of Rice University measured the short and long-term performance of stock splits. His research included all the 1,275 companies whose stock split 2-for-1 between 1975 and 1990. Mr. Ikenberry compared the split stocks to a control group of stocks for similar-sized companies in similar sectors that had not split. His results were startling. The split stock group performed 8% better than the control group after one year, and 16% better after three years.

In August 2003 Mr.Ikenberry - now Chairman of the Finance Department at the University of Illinois at Urbana-Champaign - updated the stock split study. This time he looked at companies from 1990 to 1997. Using a similar methodology that included 2-for-1, 3-for-1 and 4-for-1 stock splits, he found the results were essentially the same. Shares of split stocks on average outperformed the market by 8% the following year and 12% over the next three years.

This looks like good news Buds! Lets see what hits the wire this weekend and monday.



Cheers \_/

SUNOCO LOGISTICS SXL DEC 05 3-for-1

I will do it! LOl... you find them and post to your board and I will help draw interest into the play!



Cheers

Have you put anything up on other boards about SXL? If not I will put up a few to draw interest to your board here at SXL



Cheers

Not to be off topic on this busy SXL board but do you have a dedicated oil and gas picks board? Somewhere we can talk freely about taking full advantage of this industry? Lol… I would like to play way more of these stocks with you, There GREAT! Lol…



Cheers

I really like this play to! You mostly play oil stocks? This is my first, I like the split calendar myself but SXL looks like the gift that keeps on giving IMO Great PE, div, and it's going 3 to 1

(Side Note: stocks that keep making new highs usually continue to make new highs!)

Now it sounds to me that if they dump there refineries they will be $$$, you can correct me if I'm wrong but that is what my DD has given me! Lol...



Cheers Buds \_/ and Happy Friday!

I'm with you buds! I hope they pull this out for all of us and well the USA in general for that matter but I did know this was a high risk play when I got in and put the power to it as such.

As for my home I put down 35% in 2008 and now it is worth what I owe on it! Where is the justice in that? Lol... but the guns I got in the same year are doubled in value! Lol...

So in my opinion life just isn’t fair, I guess if I wanted fair I should have gone to Puyallup, I hear they have a good one there! Lol...


Cheers buds \_/ and happy trading!

I am sure there is a gag order from the state of AZ regarding PR’s for PMI



Cheers Buds \_/

What else can we do but wait?



Cheers Buds \_/