Stealth Wealth Are you under the radar?

I was negative $1,355.28 for January. It looks pretty bad and it is bad, but not as bad as it looks. I paid almost $2,500 toward one of my credit cards when my 0% expired, which I was expecting. I also paid close to $400 toward my medical bills. This makes 2 straight months of running with a negative net income. In February I should be running back in the positive with my tax refund coming.  I did buy a $600 camera, but in my opinion that is an investment.

Net worth decreased by 1.58% for the month.  In February my ESPP payment purchased about $3,000 worth of shares.  $1,000 of that was a match from the company, so my net worth will go up by at least $1k.

Starting in February I’ll be back on track with my finances.  My goal is to transfer $500 to savings each month.

December was the first month of 2007 where we had a negative net income for a month. Net income for the quarter was still able to grow by over $400 compared to Q3 because of the credit card payments being so low for the quarter.

Total income was down due to a realized loss. Excluding the realized loss there was pretty decent growth for the quarter. Expenses grew as I continued to receive medical bills and pay them off. I will have medical bills completely paid off in January or February. Credit card payments are way down for the quarter, but I will pay my credit card off in January, so this will sky rocket and look bad, but it won’t be as bad as it looks.

Net worth increased by 0.75% for the month which is awful. Starting in January I’ll go back to paying a little more on my student loans.  I expect assets to grow pretty good during January since I’ll be getting a 50% match on my ESPP, which equates to $1k.

The following are financial highlights for the trailing twelve months (ttm).

Profit margin is at 45.18%, which is pretty good, but I would like to reach 50%. To achieve this I’ll need to work on some cost cutting measures for next year.

I’m going to keep up with ROA, but I’m not using the correct formula which is Net Income divided by Assets. When I use the correct formula I come up with over 100% because my Net income is almost the same as my assets and I don’t see that as a clear reading on how my $8k in assets perform. I’m using Net Income from investments divided by Assets to get the 5.66% you see below. This will probably decrease in the future because I will continue to put into my 401k, which is included in the assets, but I won’t have any income from my 401k. The only way to receive net income on investments is to sell stock and receive a realized gain or receiving dividends.

In quarterly earnings growth I compared Q2 to Q3 (2 previous quarters). It is such a high percentage because I paid my jeep off in Q2 and left me with low net income compared to Q3.

I readjusted the P/E ratio to 20 because of the growth I plan to have in ‘08. Market cap of Stealth Wealth Inc. is $173,138.20 with a share price of $17.31

Key notes

1. Issued 10,000 all to myself.
2. A P/E ratio of 20 is constant forever to calculate share price.
3. Share price was calculated by the following calculation: 20x$.87 = $17.31; P/E=20 and EPS=$.87
4. The total market cap. for Stealth Wealth Inc. is $173,138.20 (10,000 shares multiplied by $17.31 share price.
5. Book Value per share is Asset-Liabilities divided by 10,000 shares ($-2.10)

I got some big help this month from my Christmas bonus :D  Also I got an extra $227 in realized gains from the sale of my holdings in Middlby.  Next month I’m looking to have over $10 in dividends from my money market fund.

My net worth for the month went up 6.30% thanks to the 2 reasons mentioned in the first sentence of this post.  I was able to sock away over $2,100 into my savings this month, which makes me feel better about my emergency fund.  I don’t have a set limit yet for what I want my EF to be, but I will set that $ amount sometime this month when I’m setting 2008 goals.  Liabilities increased because I have not been paying anything on my credit card, but it will be paid off in January with money from my EF.  It feels good to see the growth but I know that this isn’t going to happen every month.

In October I started having to pay some on my hospital bills. I know most of you are tired of hearing me talk about my hospital bills so I won’t mention them too much. Net Income for the month was $1,044.94, this number is somewhat inflated due to the fact that I only paid $24 on my credit card. I have 0% interest so I move left over money into my savings account. Also this month there was a 3 week paycheck which helped by about $225.

NetWorth only increased $190.33 for the month. Credit card balance shot up while my savings also shot up. My Coldwater Creek holdings decreased by almost 30%. I’m actually kinda shocked my networth actually grew.

My income is back to normal this month. (July was a 3 week pay period and Aug. was birthday money listed under Misc. cash.) My credit card expenses will be the minimum payment until January after September because I’ll be putting that money into savings to make about $10-$20 in interest.

Under misc. is where went to a Braves game with my girlfriend and I also bought a bucket of dough from somebody selling it for their school. Over all I think I had a pretty good quarter. Next month I will have a 3 week paycheck.

My networth increased by 2.36% over the previous month. Assets increased 5.15%. I’m not paying any interest on any of my credit cards though. In October or November I will start paying some hospital bills as they come in.

This month I have birthday money that I’ve deposited along with reimbursement from a trip I made for work. That is where my Misc. Income came from. I’m surprised that my total income was this high. Credit cards is higher because I had a $200 prescription. I had 2 tithe checks go through this month. Overall I think I had a pretty good month.

My networth increased by 3.77% over the previous month. Assets increased a good 20%, but debt increased due to credit card debt. I’m not paying any interest on any of my credit cards though. I need to work on paying off my higher interest student loan soon. Probably beginning in January. I should build my emergency fund up for now.