Wedding Entertainment – How To Make Sure It’s Alright On The Night
Music is of huge importance at a wedding. It sets the tone for the day, influences the mood of the guests and enhances the atmosphere of the chosen venue. A choice of acoustic guitarist or harpist to entertain the guests during the signing of the register or whilst photos are being taken will say a lot about the couple. A choice of swing band or string quartet to play during the meal will have an effect on the vibe of the reception. And a choice of DJ or indie band for the evening entertainment will make a difference to how many people get on the dance floor, depending on the type of music the couple and guests are into.Of all the preparations for the big day, the wedding entertainment is one thing that can’t be rehearsed. Speeches can be practiced in front of willing family members. Dresses and suits can be tried on. Cakes and catering can be taste tested. All these practice-runs take place to minimise the chances of catastrophe on the most important day of the bride and groom’s life. But the music is very much dependent on the equipment working, the act turning up, and the music being enjoyable for as many people as possible. How can the bride and groom know whether their chosen wedding entertainment will be worth the money and add the finishing touch to both the service and the day and evening receptions? What can be done to maximise the chances of the wedding entertainment going smoothly on the big day?Using a reputable online wedding entertainment service with a range of quality acts to choose from will ensure that any music chosen for the wedding day is reliable and professional. A wedding entertainment website has a reputation to build and maintain and will expect any acts on their books to reflect this. Apart from the obvious benefit of providing a whole host of different entertainment to choose from, drawing together a lot of acts under one roof also makes life easier for the bride and groom. Rather than trawling separate websites or chasing up adverts in wedding magazines, on a wedding entertainment website it is easy to search by genre, budget, date and location, read customer reviews for all the acts, listen to audio demo clips, watch video clips, and get a general feel for the type of performance an act will give.Having narrowed down the choice to a few acts it is important to ask plenty of questions. A good act will understand what an important decision this is and will be prepared to answer questions and provide proof of the quality of their act. Consider asking about their experience, not only how long they’ve been playing as a band, but how long they’ve been playing for weddings. They may have some previous customer reviews that could be read, or even previous customers that could be contacted. Watch their video clips or listen to their audio demos, or perhaps even ask if it’s possible to see them live. This will give an idea of what to expect on the night. Don’t forget to ask about how long their set is and how many breaks they will require and for how long. Make sure they know where the venue is and have checked all their equipment works there with plenty of time to sort out any problems. And, without wanting to tempt fate, inquire about their cancellation policy or what happens if they are sick.With this last point in mind, checking that the wedding insurance policy covers the wedding entertainment is of vital importance. Of course, there can still be last minute calamities as there can with any aspect of a wedding day. Photographers can be sick, Cakes can be dropped. Rings can be lost. Wedding insurance should cover all the most important parts of the day, including wedding entertainment, in the event of a disaster. But hopefully with all the above advice put into place there should be no need to use it. With the right preparation, and choosing the right wedding entertainment, there should be total peace of mind that this is one area that will definitely be alright on the night.For more information about online wedding entertainment services try I Do Music Ltd.
3 Basic Principles of Natural Health Care
Natural health can be maintained and retained if we follow some basic principles of natural health care. These basic principles of natural health care are not difficult or cumbersome to follow but they require a strong will power. These simple principles of natural health care must be adopted before our body looses its healthy status. If we can’t follow these common principles of natural health care now, then it won’t be possible in future especially when some serious illness strikes us.Our modern lifestyle is today the biggest enemy of our health and wellness. Today we have developed a social structure which is unhealthy not only for the society but also for natural health of our body and mind. Three common well-known principles of natural health care are given below which are seldom followed in today’s modern life. These 3 simple looking natural health care principles are actually very powerful and can be responsible for a number of health problems which we may not be aware of.1. Making A Natural Sleeping Pattern for Health Care and Wellness: Sleeping as per the law of nature can have a number of positive effects on our health and wellness. Clock of our body system (or microprocessor) is naturally configured to nature’s clock i.e. at night our body tends to rest or sleep and during the day after sunrise our body is automatically configured to work. Today our unhealthy lifestyle tends to artificially reconfigure this natural clock within the body. Our modern habits of un-natural sleeping patterns are responsible for disturbed sleeps or sleeping disorders to a great extent.2. Avoid Un-natural and Unhealthy Eating Patterns for Health and Wellness: Our eating habits have also changed with time. I’ll not be discussing poor nutrition and poor and unhealthy quality of food that we eat today, in this article. Today we eat food without a natural urge or appetite for eating, we eat because we want to eat or its time to eat or because we need to provide some nutrition/fuel to our body. Even if the quality of food that we eat is best and organically produced, requirement of our body today in modern lifestyle are not same as they used to be. Today eating more doesn’t mean getting healthier but just opposite is true for health and wellness.Today we fill our body engine (body system) with fuel(food/meal) at the time when it isn’t asking for and the fuel that we provide our body system with isn’t the right fuel for its health and wellness. Its like feeding a petrol engine with coal. Thanks God, that our body isn’t an ordinary man made machine but a wonder machine by nature.3. Unnatural Over-protection and Over-comfort Keeps Natural Health Care System at Bay : Today we protect ourself not only from natural but also from society and social activities un-naturally. We exceed our comfort levels from natural to un-natural, the level of comfort that we enjoy today is actually un-comfortable for our body system to work in. This healthy looking and good feeling over-protection has led to under-protection of our natural body system. We are forcing our body to work in dual mode sometimes naturally when we move outside our over-protection cover and un-naturally when we stay within our over-protected comfort zone. This may look lighter but it has a serious consequence on natural health care system within our body. Today our body begs to leave dependence on its natural resistance power and seek modern medical help which gives right treatment not only to our body but also to the soul actually responsible for this under-protected over-protection.These were three basic principles of natural health care, that I’ve discussed here to show how we have ourself willingly compromised simple principles of natural health care to complex lifestyle of risked natural health and wellness.
Purchasing Affordable Health Care Insurance
There are a number of health care insurance providers around you, and the number is still rising. That is why, you, as the primary consumer of such products, are given a vast array of offers, products and rates for medical insurance. Because the economic situation around the world is very upsetting, it would be practical to insure your health, and of course, purchase an affordable medical insurance policy.Almost all governments around the world require employees to be covered by health care insurance policies. Most of these governments also offer subsidies to their constituents who apply for health insurances. Just like any other forms of insurances, medical insurances will also require the applicant to pay premiums, which can be in monthly, quarterly or annual terms, depending on the applicant’s spending power.Securing Affordable Health Care Insurance Is A MustMore people feel that securing affordable health care insurance is a must nowadays, but alas, they also find the task very ardent, tedious and sometimes stressful. The wide options in the market can sometimes lead to further pressure. Everyone wants to save on medical insurance premiums so the ability to find low-cost medical insurance deal would be a great advantage for anyone.Finding an affordable health care insurance does not require great talents. The name of the game would be reliability, resourcefulness and an innate skill to shop and compare prices. Patience would be required. The following is an easy and simple guideline on how you, the budget-conscious buyer of medical care insurance, could successfully secure and buy a low-cost health care insurance policy.• Talk to or ask your trusted health insurance agent or broker. People have their own jobs, and they become experts in their job fields. That is why agents are to be considered experts in medical care insurance policies, it is their job.• Visit the nearest health insurance provider’s office and ask for their rates or quotes. Just make sure that you would get premium rates or quotes from two or more insurers. This way, you could be able to compare prices and pick the cheapest offering.• Visit medical insurance companies’ Websites. This way, you would be able to save on transportation costs and your time would not be wasted. Through online inquiries, you could also easily compare health insurance rates and practically easily select the low-cost health insurance policy you have been looking for.• Check on government health offices and seek advice on discounts and subsidies provided by the government for citizens’ health insurances. Governments’ primary goal is to oversee and protect constituents’ welfare so it follows that they have flexible health insurances to people.You could also seek recommendations, referrals and advice from your friends and peers about their experiences in buying affordable health care insurance policies. Learn from their mistakes and follow their successful practices. Low-cost health insurances are, indeed, must-have nowadays. Health is wealth, but sometimes the inevitable comes. It is better to be prepared for possibilities than be left helpless and empty-handed when health situations come.
S&P 500 Rallies As U.S. Dollar Pulls Back Towards Weekly Lows
Key Insights
The strong pullback in the U.S. dollar provided significant support to stocks.
Treasury yields have pulled back after touching new highs, which served as an additional positive catalyst for S&P 500.
A move above 3730 will push S&P 500 towards the resistance level at 3760.
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Pfizer Rallies After Announcing A Huge Price Hike For Its COVID-19 Vaccines
S&P 500 is currently trying to settle above 3730 as traders’ appetite for risk is growing. The U.S. dollar has recently gained strong downside momentum as the BoJ intervened to stop the rally in USD/JPY. Weaker U.S. dollar is bullish for stocks as it increases profits of multinational companies and makes U.S. equities cheaper for foreign investors.
The leading oil services company Schlumberger is up by 9% after beating analyst estimates on both earnings and revenue. Schlumberger’s peers Baker Hughes and Halliburton have also enjoyed strong support today.
Vaccine makers Pfizer and Moderna gained strong upside momentum after Pfizer announced that it will raise the price of its coronavirus vaccine to $110 – $130 per shot.
Biggest losers today include Verizon and Twitter. Verizon is down by 5% despite beating analyst estimates on both earnings and revenue. Subscriber numbers missed estimates, and traders pushed the stock to multi-year lows.
Twitter stock moved towards the $50 level as the U.S. may conduct a security review of Musk’s purchase of the company.
From a big picture point of view, today’s rebound is broad, and most market segments are moving higher. Treasury yields have started to move lower after testing new highs, providing additional support to S&P 500. It looks that some traders are ready to bet that Fed will be less hawkish than previously expected.
S&P 500 Tests Resistance At 3730
S&P 500 has recently managed to get above the 20 EMA and is trying to settle above the resistance at 3730. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If S&P 500 manages to settle above 3730, it will head towards the next resistance level at 3760. A successful test of this level will push S&P 500 towards the next resistance at October highs at 3805. The 50 EMA is located in the nearby, so S&P 500 will likely face strong resistance above the 3800 level.
On the support side, the previous resistance at 3700 will likely serve as the first support level for S&P 500. In case S&P 500 declines below this level, it will move towards the next support level at 3675. A move below 3675 will push S&P 500 towards the support at 3640.
SPDN: An Inexpensive Way To Profit When The S&P 500 Falls
Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio
By Rob Isbitts
Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.
The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.
SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.
Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.
Proprietary ETF Grades
Offense/Defense: Defense
Segment: Inverse Equity
Sub-Segment: Inverse S&P 500
Correlation (vs. S&P 500): Very High (inverse)
Expected Volatility (vs. S&P 500): Similar (but opposite)
Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.
Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.
Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.
Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.
Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.
Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy
Long-Term Rating (next 12 months): Buy
Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.
ETF Investment Opinion
SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.
S&P 500 Biotech Giant Vertex Leads 5 Stocks Showing Strength
Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).
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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.
Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.
Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.
Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.
Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.
Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.
Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.
Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.
The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.
In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.
In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.
Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.
Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.
The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.
Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.
The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).
In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.
S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.
CRISPR Stocks: Will Concerns Over Risk Inhibit Gene-Editing Cures?
Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.
Cardinal Health stock’s relative strength line has also been trending up for months.
The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.
Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.
S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.
Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.
Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.
Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.
Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.
Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.
The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.
How Millett Grew Steel Dynamics From A Three Employee Business
STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.
Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.
GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.
The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.
On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.
Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.
During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.
Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.
IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.
Shoe Repairs And Several Other Things When I Was 7
Shoe Repairs And Several Other Things When I Was 7
My Dad repaired most of our shoes believe it or not, I can hardly believe it myself now. With 7 pairs of shoes always needing repairs I think he was quite clever to learn how to “Keep us in shoe Leather” to coin a phrase!
He bought several different sizes of cast iron cobbler’s “lasts”. Last, the old English “Laest” meaning footprint. Lasts were holding devices shaped like a human foot. I have no idea where he would have bought the shoe leather. Only that it was a beautiful creamy, shiny colour and the smell was lovely.
But I do remember our shoes turned upside down on and fitted into these lasts, my Dad cutting the leather around the shape of the shoe, and then hammering nails, into the leather shape. Sometimes we’d feel one or 2 of those nails poking through the insides of our shoes, but our dad always fixed it.
Hiking and Swimming Galas
Dad was a very outdoorsy type, unlike my mother, who was probably too busy indoors. She also enjoyed the peace and quiet when he took us off for the day!
Anyway, he often took us hiking in the mountains where we’d have a picnic of sandwiches and flasks of tea. And more often than not we went by steam train.
We loved poking our heads out of the window until our eyes hurt like mad from a blast of soot blowing back from the engine. But sore, bloodshot eyes never dampened our enthusiasm.
Dad was an avid swimmer and water polo player, and he used to take us to swimming galas, as they were called back then. He often took part in these galas. And again we always travelled by steam train.
Rowing Over To Ireland’s Eye
That’s what we did back then, we had to go by rowboat, the only way to get to Ireland’s eye, which is 15 minutes from mainland Howth. From there we could see Malahide, Lambay Island and Howth Head of course. These days you can take a Round Trip Cruise on a small cruise ship!
But we thoroughly enjoyed rowing and once there we couldn’t wait to climb the rocks, and have a swim. We picnicked and watched the friendly seals doing their thing and showing off.
Not to mention all kinds of birdlife including the Puffin.The Martello Tower was also interesting but a bit dangerous to attempt entering. I’m getting lost in the past as I write, and have to drag myself back to the present.
Fun Outings with The camera Club
Dad was also a very keen amateur photographer, and was a member of a camera Club. There were many Sunday photography outings and along with us came other kids of the members of the club.
And we always had great fun while the adults busied themselves taking photos of everything and anything, it seemed to us. Dad was so serious about his photography that he set up a dark room where he developed and printed his photographs.
All black and white at the time. He and his camera club entered many of their favourites in exhibitions throughout Europe. I’m quite proud to say that many cups and medals were won by Dad. They have been shared amongst all his grandchildren which I find quite special.
He liked taking portraits of us kids too, mostly when we were in a state of untidiness, usually during play. Dad always preferred the natural look of messy hair and clothes in the photos of his children.
US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 1.14%. While S&P 500 was trading at 3,701.66, up by 0.98% and Nasdaq Composite 10,690.60 was also up by 0.71 per cent
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US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. Source: Reuters
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 345.25 points or1.14 per cent. While S&P 500 was trading at 3,701.66, up by 35.88 points or 0.98 per cent and Nasdaq Composite 10,690.60 was also up 75.75 points or 0.71 per cent. A Reuters report said that today’s strength was on the back of a report which said the Federal Reserve will likely debate on signaling plans for a smaller interest rate hike in December, reversing declines set off by social media firms after Snap Inc’s ad warning.
Source: Comex
Nasdaq Top Gainers and Losers
Source: Nasdaq
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. The BSE Sensex ended at 59,307.15, up by 104.25 points or 0.18 per cent from the Thursday closing level. Meanwhile, the Nifty50 index closed at 17,590.00, higher by 26.05 points or 0.15 per cent. In the 30-share Sensex, 13 stocks gained while the remaining 17 ended on the losing side. In the 50-stock Nifty50, 21 stocks advanced while 29 declined.
Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?
There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.
In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.
But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.
Different Types of Financing
One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.
Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.
But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.
Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.
Alternative Financing Solutions
But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:
1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.
2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.
3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.
In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:
It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.
A Precious Commodity
Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).
Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.
Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?