sharemarket guru tells us his secrets

  1. bbm
    2,264 Posts.
    Can you believe some of the rubbish they put on TV these days!

    Have a look at this guys 4 points to buying in to companies and the one's he gave as's the funniest contradiction I've ever heard.

    At least the hairdresser is happy.

    From Today Tonight

    Sharemarket secrets

    REPORTER: Nicolas Boot
    BROADCAST DATE: July 23, 2003

    At 28 Phillip Shamieh has become a money-making machine in the ever-changing stockmarket. This financial guru has the Midas touch. Wealth Creator magazine has just voted him one of the top-10 share market experts in Australia.

    He's made millions and says mums and dads don't need hundreds of thousands of dollars to make big profits.

    "You don't need a lot of money to get good advice, you simply need a proven and defined investment strategy," he said.

    Hairdresser Charlie Rizk is one of Mr Shamieh's success stories.

    It was his tip to buy shares in Funtastic, which holds the rights to the hit movie The Hulk and its spin-off merchandising.

    When Mr Rizk bought the shares they were selling at 69c but in 14 months the stock has more than doubled to $1.50 and he couldn't be happier.

    "I haven't made an obscene amount of money but when you put in $200 and you get $400 back from nowhere, to me that's brilliant," he said.

    If you bought $1,000 worth of Funtastic shares when they were selling at 69c they would now be worth more than $2,174, a profit of $117 per cent.

    Other cheaper stocks selling under $1 when Mr Shamieh first recommended them included Clover Corporation, whose stocks have increased in four months from 37c to close today at 63c.

    Another stock he has been recommending is Epitan, an emerging biotech company that has the worldwide rights to a drug which helps you tan without being out in the sun.

    In three months Epitan's stock has increased 76 per cent, from 17c to 30c a share.

    Seven's finance expert David Koch says while smaller companies can offer big returns to investors they're often a stockmarket punt.

    "They can be an opportunity or a big risk depending on whether you have the right information and whether you have spent the right amount of time researching them yourself," he said.

    On the other hand, Richard White, a cautious investor, has bought solely into blue-chip companies instead of smaller, more volatile companies.

    Currently he has $250,000 invested in News Corp shares making him a monthly bonanza.

    "In dollar terms somewhere between $10,000 and $80,000 per month," he said.

    Mr White sells call options against his shares, which basically means he'll sell the stock at a certain price.

    "I was apprehensive to start off with because with anything that's unknown there is worry there," he said.

    "By doing a course you can progress into the market and make a significant income."

    With that in mind, here are some tips if you want to dabble in more risky stocks.

    Mr Shamieh suggests buying into companies:

    With a good proven management;
    With a good client base;
    With an earnings track record;
    That pay good dividends.

    And finally, he says you must seek good advice and be aware of the risks.
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