Sunday, October 23, 2011

Private Equity Financing Is Available for Major Expansion Projects

Finding funding for a major business expansion can seem like a daunting task to even the most experienced management. For this reason, it's always advisable to seek private equity financing through a professional fund raiser.The main reason, of course, is that a professional has a ready list of potential funders that are most likely to be interested in your project. There are plenty of other reasons too, and these reasons specifically address your business needs.
· Reduces the time it takes to find, negotiate and close the financing deal
· Able to identify specific private equity funders with sufficient capital
· Can provide invaluable assistance throughout the entire project so that you are never floundering at any stage of the negotiation process
· Able to provide critical information about expectations of particular funders so funding request can be targeted
· Saves your business money and time by handling many of the tasks you would have to pay high priced management to handle
· Has in-depth knowledge of funding marketplace
A professional that specializes in locating funding for major business projects can search for private equity funding while also assessing other potential funding sources. For example, your business project may be eligible for business loans or venture capital. There may be angel investors interested in funding a phase of your project. It should be clear by now that locating funding is a complex process that involves much more than preparing a business plan. The process includes multiple steps that reconcile your business needs with the marketing of the project in a way that makes the project appealing to investors.

Sunday, October 9, 2011

How to Invest using Relative Strength

Relative strength or relative weakness is assessing how strong or weak a stock is compared to something else, whether it be against the market, other stocks in the same sector, or other stocks in general. Using relative strength or weakness has been around for a long time and there are many traders who make a considerable living trading only this approach.

In terms of relative strength to the market, you want to long stocks that are stronger than the market and short stocks that are weaker than the market. When you are looking at sectors or industries, you want to long the strongest stocks within that sector or industry and short the weakest ones. You can also see how different sectors or industries are acting to see which ones are leading the market and which ones are lagging. You can then long stocks from the sectors or industries are leading the market and short stocks from the ones that are lagging.

You want to compare the way the different stocks and the market are performing in terms of percentage change from the open so that you don’t get lured into thinking that stocks that gapped up or down are stronger or weaker than they really are. Look for stocks that are outperforming or underperforming the market by a good margin. There is more momentum in the trend of a stock and moves that are not as big in the pullbacks or corrections in stocks that are stronger or weaker than the market and are showing signs of interest from institutions.

Stocks that are up on days when the market is selling off have relative strength. These are the stocks that you should be long on. And vice versa, stocks that are down on days when the market is having a big up days have relative weakness and these are the stocks that you should be short. By implementing this approach, you will vastly improve your trading.

How to Invest using Relative Strength