Stealth Wealth Are you under the radar?

2008 Goals
-Continue to contribute 6% of my income to my 401k

-Get my Emergency Fund to $3k

-Save $4K for engagement ring

-Stretch Goal: Start a dividend portfolio with at least $3k

-Pay $100 per month on Sallie Mae Student Loan

-increase EPS to $1.00

-Reach a book value per share to -$1.00 by year end

-Reach and maintain a profit margin of 50% (if a merger occurs this will not be possible, but there is a merger in the works :D)

-Increase Revenue to $22k for ‘08 (This is a rough estimation.  I’m not sure how much the pay for the new position will be.)

This past year was my first year working a full-time job. It’s exciting to have my first full year of highlights, which will serve as a benchmark for 2008 numbers.

I have a goal of having a profit margin of 50% or better, but I do not see that being achieved until the 2nd quarter of ‘08. Due to paying off my auto loan, another consumer loan, and medical bills the profit margin for ‘07 ended up being 38.55%

I had $18,835.79 in revenues for the year, which I think is decent considering I started in a position that is pretty much the very bottom in the company.

Qtrly earnings growth is up almost 20% because I charged most of my day to day expenses to my credit card, which cut expenses.

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.

Monday I sold all of my holdings in my portfolio.  Monday was the last day to sell shares for the 2007 tax year.  I took around a $800 realized loss from the sale.  For the year my realized losses are around $300 with gains earlier this year.

I have 3 reasons for selling.

1. I didn’t see the companies I had holdings in picking up until at earliest the last half of 2008.
2. It was better to sell Monday because my losses would offset my gains.  I wouldn’t owe any taxes for my capital gains since I didn’t have any.  If I had waited to sell in 2008 I don’t think shares would have gone up so there wouldn’t have been anymore money from the sale.  On top of waiting and selling in ‘08 I would have had to pay about $175 in capital gains taxes for ‘07 capital gains.
3. I decided that I need more cash for an Emergency fund, which is the whole reason for even selling the shares at all.

Since selling on Monday, shares of Coldwater Creek have fallen almost 14% and shares of the company I work for fell about 5%.  Those are loses I don’t have to worry about making up.  Next time I start investing I’m going to make sure I have a good emergency fund built up and then I’m going to make sure that I invest in dividend stocks with money that I will not need in the near future.

I’ll be posting my financial statements up on Sunday evening or Monday night.

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)

We have ended the 3rd quarter here at “Stealth Wealth Inc.” and I’m excited to post last quarters numbers. You can some of the stats on the right side bar. Last quarter I had a profit margin of 50.91%, which means I was able to save a little bit more than $1 out of every $2 I had as income. Revenue totaled $4702.07, which was higher that I expected thanks to gifts I received along with some realized gains on the sale of Coldwater Creek stock. My total cash is somewhat disappointing because I need a bigger fund in case of an emergency. You can expect this to grow 4-fold by the end of next quarter. One of my goals is to have total cash per share up to $0.25 by the end of next quarter. Any questions on any of the numbers? Are they easy to understand?

Stock Price will be coming later…still working on how I’m going to do that.

I will be releasing a full highlights release later this week. Also will start putting the highlights of each month into the financial highlights tab.

I’ve decided to look at myself as a company and try to run my finances as if I were a business.  You can call the company Stealth Wealth Family Inc. Here are some financial highlights for “the company”. It is dated September 9th, but I will do this every quarter if not every month. This is just a test highlight so that is why it is dated the 9th. I will be adding a few more ratios to the list later. My profit margin for year-to-date is 34.63%, which I think is a decent a number.

Key notes

1. Issued 10,000 all to myself.
2. A P/E ratio of 10 is constant forever to calculate share price.
3. Share price was calculated by the following calculation: 10x$.443 = $4.43; P/E=10 and EPS=$.443
4. The total market cap. for Stealth Wealth Inc. is $44,300 (10,000 shares multiplied by $4.43 share price.
5. Book Value per share is Asset-Liabilities divided by 10,000 shares ($-2.36)
6. I hope to fill in the growth sections in the future.