http://www.articletrader.com/ Articles at ArticleTrader en-us http://www.articletrader.com/travel/destinations/discovering-el-yunque-rain-forest.html http://www.articletrader.com/travel/destinations/discovering-el-yunque-rain-forest.html Wed, 23 Jan 2008 00:00:00 -0600
El Yunque plays host to an abundant and diverse community of flora and fauna. There are about 240 species of native trees (23 of which are endemic to El Yunque), 50 species of orchids, 150 kinds of ferns, 68 bird species including the endangered Puerto Rican parrot, 11 species of bats, and eight types of lizards. The rain forest is also home to the tiny coqui frog, a singing tree frog that is native to the area. The frog population in El Yunque is one of the densest in the world. There are a few species of snakes as well in the area but it is very rare to find one. As a natural reserve, El Yunque is a protected area and hunting is prohibited.

El Yunque is named after the kind-hearted Indian spirit Yuquiyu which means Forest of Clouds. As the ancient story goes, Yuquiyu inhabits the highest mountain peak of the forest and protects the whole of Puerto Rico and its people. Taking after the gentle character of its guardian spirit, El Yunque Rain Forest also exhibits a cool, subtropical climate and a serene atmosphere.

It may be quiet in El Yunque but it's also very wet. This rain forest receives the highest amount of precipitation in all of the National Forests with up to 240 inches per year, amounting to over 100 billion gallons of rainwater. Rain showers only occur in short durations though and there are a lot of available shelters so there's no need to worry about getting completely drenched while on a nature hike.

The National Forest is divided into four according to the types of trees that grow in each area. The four distinct forests in El Yunque are Tabonuco Forest, Palo Colorado Forest, Bosque En Las Nube (Forest in the Clouds), and Palma Sierra Forest. Tabonuco Forest can be found at elevations of up to 2,000 feet. It is named after one of its most abundant trees, the Tabonuco, although other species such as Yagrumo, Guaraguao, Laurel Sabino, and several giant ferns can also be found there. Trees in Tabonuco Forest can grow up to 115-1125 feet tall.

The Palo Colorado Forest is located on a lower altitude at 1,970-2,950 feet. The Caimitillo, Caimitillo Verde, and Palo Colorado are the most numerous tree species here. The Palma Sierra Forest on the other hand is dominated by the Sierra Palm species. This forest is usually found at elevations of more than 1,958 feet. Located on the highest mountain tops is the aptly named Bosque En Las Nube or Forest in the Clouds. Towering at an altitude of 2,500 feet, this forest experiences stronger winds and greater amounts of water. The common tree species here, Némoco, Roble de Sierra, Limoncillo Guayabota, and Camasey, don't normally grow taller than 12 feet.

You don't have to go on a long grueling hike to enjoy the majestic sceneries of El Yunque. A beautiful waterfall can be visited less than a mile away from the paved paths of the forest. A good elevation that allows for a panoramic view of the topography can also be reached with just a few minutes walk. You also don't have to worry about dangerous animals lurking behind the lush foliage. Your greatest dangers would probably be pesky mosquitoes and slippery rocks so at least bring a mosquito repellant and wear shoes with good traction.




--
Kristien Wilkinson is an online writer and contributor to http://www.sanjuan.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/travel/destinations/exploring-old-san-juan.html http://www.articletrader.com/travel/destinations/exploring-old-san-juan.html Wed, 23 Jan 2008 00:00:00 -0600
The overwhelming Spanish influence seen in San Juan can be traced back to 1521, when it was established as a settlement of the Spanish empire. Over centuries, the city has seen ships of mercantilism and military dominance docking and departing on its shores, survived attacks from British troops in the late 1500s, lived through the bombings of US war machines during the Spanish-American War, and went on to become the industrialized metropolis that it is today.

The city of San Juan has three major districts: Old San Juan, Beach and Resort area, and the outlying communities. The majority of antique monuments and landmarks however are concentrated on the Old San Juan neighborhood. Even the streets of Old San Juan speak of the Spanish colonial era. They are paved with cobbles of a blue stone cast from furnace slag called adoquine. These stones were brought to San Juan by Spanish ships. Over the years, moisture and exposure to elements gave adoquine its distinct color.

Old San Juan is home to numerous plazas, parks, museums, monuments, and historical buildings which would take a full day or two of walking tour to explore. Plaza de Armas (arms square) on San Jose street is the central plaza of Old San Juan. It features four statues, all of which are over one hundred years old, that represent the four seasons. It has also served as the main meeting place of locals and continues to be an interesting spot for visitors.

Plaza de San Jose is another popular meeting venue in Old San Juan. Its central monument is the statue of Juan Ponce de Leon, the first governor of Puerto Rico. The statue was made from British cannons which were captured during the British attacks in the 18th century. Another plaza with a prominent landmark is Plaza del Quinto Centenario (quincentennial square). Opened in 1992 as part of the 500th anniversary of Christopher Columbus' monumental exploration of the New World, the plaza highlights a 40-foot sculpture that represents the earthen and clay roots of American history. The sculpture, made of black granite and ceramics, is a creation of master Puerto Rican artist Jaime Suarez.

A visit to Old San Juan wouldn't be complete without seeing the city's formidable forts. Built in the 16th and 17 centuries, these fortresses took decades to complete but they were vital in the strengthening the city's defenses. El Morro stands out among all the forts in San Juan. It is the largest fortification in all of the Caribbean and has survived numerous attacks. The fort fell only once, during a land assault by British forces in 1598. El Morro, a construction marvel in itself, is laden with tunnels, dungeons, barracks, and ramps but the most prominent parts of this fortress are the circular sentry boxes called garitas. El Morro has been declared a National Historic Site by the National Park Service.

Complementing El Morro is Castillo de San Cristóbal, another masterfully constructed fortress towering at 150 feet and occupying an area of 27 acres. Recognized as one of the largest and strongest defenses in the region, San Cristobal Fort is made up of five independent structures which are connected by moat and tunnel. The fort is also a National Historic Site and a UNESCO World Heritage Site.

A tour in Old San Juan is one activity that visitors in Puerto Rico shouldn't miss. Seeing these landmarks provides not just a visual feast but a glimpse as well into the history and culture of this Caribbean archipelago.




--
Kristien Wilkinson is an online writer and contributor to http://www.sanjuan.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/food/going-on-a-food-trip-in-san-juan-puerto-rico.html http://www.articletrader.com/food/going-on-a-food-trip-in-san-juan-puerto-rico.html Wed, 23 Jan 2008 00:00:00 -0600
Comida criolla or creole food refers to the local cuisine in Puerto Rico. It's a melting pot (no pun intended) of traditional Taino food, Spanish culinary influence, and African cooking. Some of the most popular criolla dishes are lechon asado (roasted pork), adobo (seasoning made of vinegar, paprika, oil, garlin, and oregano), asopoa de pollo (stewed chicken), habichuelas (rice and red beans served with meat), and sofrito (a sauce made of cilantro onion, garlic, pepper, and other seasonings and spices). Criolla cooking also features several manners of cooking plantains. There's tostones which is mashed green plantains, platanos which slightly varies from tostones in cooking style, and mofongo which is a ball of crushed plantains mixed with meat or seafood that were fried and flavored with seasonings such garlic and tomato-based sauce.

Being nestled in the abundant waters of the Caribbean, Puerto Rico certainly cannot do without seafood cuisines. The tastiest seafood dishes can be found in the coastal cities. The Caribbean lobster is one of the premier catches in restaurants although the dolphinfish and red snapper are popular as well. The most well-known seafood specialty however would probably be the conch stuffed with tomato for a fritter or served with a ceviche salad.

To further promote criolla cuisine to travelers, the government has created the Mesones Gastronomicos program. In this project, the 30 participating restaurants throughout the island will all serve traditional Puerto Rican fare. It doesn't mean though that you can only taste authentic criolla cooking in these dining places. Smaller restaurants that offer native cuisines abound in San Juan and the rest of Puerto Rico.

Other upscale restaurants specialize in what is called the Nuevo Latino cuisine, a culinary style similar to criolla but predominantly uses fruits, fish, and tubers as main ingredients with tropical marinades and dark rum sauces as primary flavors. Most ingredients in Nuevo Latino cooking are locally sourced so as to maximize the fresh flavors of the produce. Restaurants serving this cuisine are mostly found in San Juan and other bigger cities of Puerto Rico. Tourists who crave for international cuisines won't be disappointed as well. There are a lot of dining areas in San Juan that serve Italian, French, Arabian, Mexican, American, German, and Latin American dishes.

Along with the sumptuous food, another major part of Puerto Rican food is the beverage. This Caribbean island is also known for its strong drinks, its national beverage being the rum. There are about 20 different varieties of rum here. Puerto Rican coffee also packs a strong punch. It can be served as espresso, sweetened or with milk which is known as cafe con leche. If you're looking for a milder drink, you can try coco frio which is served on a chilled coconut and a selection of fresh fruit juices.

Budget meals in Puerto Rico usually range from $5 to $15 while higher end dining can go up to $35. Upscale restaurants often require a dress code such as collared shirts for men and stylish apparel for women while the most expensive dining venues are usually black tie. Making a reservation is recommended especially from mid-November to April when tourists are usually flocking to Puerto Rico.




--
Kristien Wilkinson is an online writer and contributor to http://www.sanjuan.com


Source: http://www.articletrader.com ]]> http://www.articletrader.com/travel/beaches-and-water-sports-in-san-juan-puerto-rico.html http://www.articletrader.com/travel/beaches-and-water-sports-in-san-juan-puerto-rico.html Wed, 23 Jan 2008 00:00:00 -0600
In San Juan, Puerto Rico, there's so much room for beach adventures. For one, the tropical climate is on your side. The average annual temperature is 82 F (28 C) and it almost never goes below 64 F or above 97 F. With a great weather, it's almost impossible not to enjoy San Juan's clear waters and white sand.

Isla Verde is the premier beach destination in San Juan. Stretching for miles along the city coastline, Isla Verde Beach lies in front of numerous luxury hotels, condominiums, restaurants, clubs, guesthouses, upscale apartments, parks, and even a cemetery.

Although you can still read or take a nap here, this beach is not your ideal location if you're looking for a tranquil and deserted getaway. There's not much crowd on weekdays but people come in droves during the weekends and Isla Verde becomes a hub of water activities. The surf is good enough for body surfing or you can venture further into the sea with parasailing, jetskiing, and water skiing. Nearby sports shops offer equipment for rent. Beachfront hotels and resorts in Isla Verde also feature various facilities for water sports.

Fishing is another popular water sport in San Juan. Most anglers here practice the catch-and-release system though so the farthest you can get for a souvenir catch is a picture of the fish. A common style here is deep sea fishing. The most abundant species in these parts of the Caribbean are allison tuna, sailfish, wahoo, and mackerel. Thanks to the island's tropical climate, fishing is good all year you have more chances of catching tuna, dolphin, wahoo, sailfish and other species during the months of October to early March.

San Juan has a lot of marine charters that offer a half-day or full day fishing trip. Boats often range from 32-50 feet and can take in about six passengers along with two to four fishing crew. Deep water is close to shore so you can usually start fishing within half an hour of leaving port. A half-day tour package can cost $480-$500, a six-hour trip ranges from $650-$700, and a whole day of fishing costs anywhere from $850 to $1,000. These fees are already inclusive of fishing equipment, beverages, and services of captain and mate.

For those who would rather stay out of deep waters but still want a great fishing experience, light tackle fishing in the bays and lagoons is a good alternative. There are marine charters as well that offer smaller boats, around 16-18 feet, for a half-day or full day trip.

Scuba diving and snorkeling are must-do activities as well in Puerto Rico. The visibility is at least 60 to 75 feet in areas nearer to the beach but it can be up to 100 feet offshore. Diving sites in San Juan feature awe-inspiring marine diversity and picturesque geographical formations. Other impressive dive sites are 50 miles west of Mayaguez, near Desecheo Island off Rincon, off Mona Island, and off Culebra and Vieques. There's no reason to panic even if you're a newbie in diving. Some hotels and resorts offer diving lessons for beginners. As for snorkeling, the shallow reefs in San Juan are more than enough to dazzle you with awesome underwater scenery. A good snorkeling location is in the bay marina near the Caribe Hilton hotel.




--
Kristien Wilkinson is an online writer and contributor to http://www.sanjuan.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/health/medicine/steering-clear-of-medication-mistakes.html http://www.articletrader.com/health/medicine/steering-clear-of-medication-mistakes.html Wed, 23 Jan 2008 00:00:00 -0600
According to the Institute of Medicine, about 1.5 million people in the United States alone are harmed by medication errors. However, the prevention of drug mistakes is fairly simple and often merely requires a good dose of common sense.

Taking various drugs with adverse interactions is one of the more common and dangerous medication errors. Drug-to-drug interaction happens when two or more drugs react with each other and produce unexpected and harmful side effects. Medicines may also react with certain foods and beverages like alcohol. Tylenol (acetaminophen) mixed with alcohol has adverse effects on the liver while the antibiotic metronidazole, when taken with alcohol, can cause nausea, vomiting, stomachache, flushing, and headache. Some drugs may also not go well with existing medical disorders. For example, using a nasal decongestant when you have high blood pressure could worsen your condition.

To avoid drug interactions, it's best to talk to your doctor or pharmacist and let them know about all the medications, supplements, and herbal remedies you're taking as well as any medical conditions you may have. Take the time as well to read the label or package insert of the drug. It tells you what the drug is for, how to take it, its active ingredient, the potential side effects of taking it, and the risks of its interaction with other substances.

Another common medication mistake is getting the wrong prescription from the pharmacy. This is not always your fault, of course, but you can take certain precautions to prevent it from happening. This error happens sometimes because the pharmacist is not able to decipher your doctor's handwriting or the drug may have a similar name with another medicine. To avoid this, you can ask your doctor to include in the prescription pad what the drug is for. At other times, the error could be caused by simple mishandling: you were handed someone else's medicines. To make sure you got the right prescription, always check your medications before leaving the pharmacy.

Non-compliance on proper drug intake is another recurring medication problem. There are instances when people just fail to read drug labels or pay attention to the doctor's instruction. Thus, they're practically clueless on when, how, and for how long to take their medicines. Not taking your medications as directed significantly affects the effectiveness of your treatment. You may also suffer from further negative effects if you take more than the prescribed dose. To prevent this problem, make sure that you understand the prescription clearly before you even leave the doctor's office. Post the prescription note on your medicine cabinet or in a place where you can easily review it when you take your medicines.

A big part of avoiding medication errors is having the right information so it's always helpful to read relevant medical sources. Preventing these mistakes doesn't have to be as complicated as brain surgery, but at times, it could be just as important.




--
Kristien Wilkinson is an online writer and contributor to http://www.getcheapdrugs.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/health/medicine/the-lowdown-on-drug-ads.html http://www.articletrader.com/health/medicine/the-lowdown-on-drug-ads.html Wed, 23 Jan 2008 00:00:00 -0600
DTCA refers to the promotion of prescription drugs via mainstream media. Though prescription drugs by definition can only be obtained through a doctor's order or medical prescription, a rule amendment has allowed pharmaceutical companies to advertise these medications directly to the public.

There are three basic kinds of DTC advertisements, the most common of which is the product-claim ad. This type features the name of the drug and the condition it is meant to treat. The Food and Drug Authority requires that it should also present a balanced information on the drug's benefits and risks and provide an avenue for getting further information such as a toll-free number.

A reminder ad on the other hand only mentions the name of the drug and other minimal information such as dosage or cost. It doesn't provide an explanation on the medication's use, effectiveness, and benefits. Reminder ads are also not required to present the drug's risks.

The third type is the help-seeking ad. This kind of advertisement is intended to raise more awareness about a certain medical condition and to let the public know that there are available treatments for it. The ad doesn't mention a specific medication nor is it obligated to present risk information.

So far, there are only two developed countries which allow direct-to-consumer advertising: the US and New Zealand. The European Commission once proposed to allow DTC ads for medication treatments of AIDS, asthma, and diabetes but it was rejected by both the European Parliament and the European Council. Public health groups in Europe are still skeptical that drug companies can provide unbiased information on medical issues.

Proponents of DTC advertising contend that drug ads are helpful means to educate the public of potential medical conditions and encourage them to talk to their doctors. This could lead to earlier detection of diseases and possible avoidance of costly and more complicated treatments. DTC ads are also said to help remove the taboo of diseases which are rarely discussed in the open.

Meanwhile DTCA critics say that these ads are a big factor in encouraging people to resort to medications even when their conditions do not warrant the use of drugs. They further point out that drug ads often highlight the benefits while understating the risks. DTC advertising is also accused of promoting casual and unnecessary intake of medications.

In the US, the Food and Drug Administration oversees the advertising of prescription drugs. For those that violate FDA regulations, the agency issues untitled and warning letters which ask for the withdrawal of the ads. Untitled letters are usually sent to companies that commit first time offenses or less serious violations while warnings are given to recurring violators. The latter also request for corrective advertisements to counter or balance the misleading ads which were earlier released.




--
Kristien Wilkinson is an online writer and contributor to http://www.getcheapdrugs.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/health/medicine/customized-drugs.html http://www.articletrader.com/health/medicine/customized-drugs.html Wed, 23 Jan 2008 00:00:00 -0600
In the earlier days of medicine, drug compounds were often derived from crude substances like opium, chrysanthemum, foxglove, and Nux Vomica. The process itself was not as sophisticated as well. For instance, Foxglove's effectiveness was determined by measuring the quantity needed to kill a cat. The activity of chrysanthemum on the other hand was measured by the number of flies that were killed over a specific time period while exposed to the substance.

The unnecessary demise of cats and flies were dispensed with when pharmaceutical studies progressed in the 19th and 20th century. In the 1930s and 1940s, about 60 percent of medications were still compounded. It was only in the mid-1900s that mass production of drugs went underway. Today, drug compounding is still practiced by specialized pharmacies but the process makes up only around 1 percent of the total output of medications.

Compounding is done nowadays mainly to meet the needs of specific patients when an Food and Drug Administration-approved drug can't fit the prescription. For individuals who are allergic to certain dyes or preservatives, medications without these non-active ingredients are prepared for them. Compounded drugs are also produced for children who are unable to swallow pills, need lower dosages, or simply can't take bad-tasting medications. Compounding is also done when a certain drug is temporarily unavailable from the manufacturers or is not produced commercially.

Although drug compounding has its uses, the process also carries a number of risks. For one, it is not under FDA oversight which means that the quality control is not as stringent as the production process of FDA-approved drugs. The mixing or alteration of ingredients could result in reduced effectiveness or contamination, making it harmful to the patient.

A severe case of drug compounding gone wrong involved the deaths of three patients. The fatalities were caused by contaminated solutions which were used to paralyze the heart during an open-heart surgery. In another incident, two people were blinded and several others suffered from eye damage when a compounded solution used in a cataract surgery was contaminated with bacteria.

In 1997, the pharmacy compounding law was passed, thereby establishing limits in legitimate compounding. The law requires that compounded medications must be specifically prescribed to an identified patient and the medication used in the process must be an FDA-approved drug or listed as an acceptable substance for compounding. Drugs which were previously declared as ineffective or unsafe and substances which are difficult to compound should not used for compounding, the law says.

To ensure safety in taking compounded medications, consumers are advised to check with the pharmacist if he or she is familiar with the compounding process of the particular drug that they need. Consumers must also be aware of the proper usage and storage of compounded drugs.




--
Kristien Wilkinson is an online writer and contributor to http://www.getcheapdrugs.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/investing/the-perks-and-perils-of-investing-abroad.html http://www.articletrader.com/finance/investing/the-perks-and-perils-of-investing-abroad.html Wed, 14 Nov 2007 00:00:00 -0600
Like any other investment venture, investing abroad has its own set of benefits and risks. They key is to consider the pros and cons and evaluate if this fits your risk tolerance as an investor. Most investors who venture beyond their home countries are high net worth individuals who have a fund surplus after investing in local stocks, bonds, mutual funds, real estate, etc. Buying foreign shares is not limited to rich investors though. You can start with just $500 and build from there if you later decide that international stock markets suit your portfolio.

One advantage of foreign stock markets is the low correlation they may have with your local market. This means that when the local market is down, the foreign market may be up. In today's globalized economy, that may not always be the case since markets tend to move in sync. For instance, the stock markets of developing countries that depend on the United States for imports and exports are significantly affected by movements in the US markets. However, studies have shown that in the long term, foreign markets are fairly independent of each other.

Another benefit of investing abroad is your exposure to rapidly developing industries that may not available in your own country. If you are an investor in the US market for instance, you're missing out on the top makers of steel and electronic appliances which are not based in the US. Analysts also say that emerging stock markets in China, southern Europe, and southeast Asia have a faster growth rate than the established markets in the US and United Kingdom.

A serious risk, of course, is the political and economic upheavals that foreign countries may experience which could lead to a damaging crash in the stock markets. The differences in market regulations and standards could also be a difficulty especially when it comes to evaluating foreign companies.

Another risk of international investment is the volatility of exchange rate movements. If the foreign currency falls in value, then your investment return also suffers despite the gains your stocks may have made in the market. Countries which devalue their currencies are also dangerous pitfalls for foreign investors. You could incur losses practically overnight.

The massive growth potential of emerging markets has been mentioned earlier but with this faster growth rate comes higher risks. Stock markets in developing countries are generally more volatile than the mature markets of more developed economies. If you would rather be on safer ground, then invest in stock markets of more stable countries.

Investing in depositary receipts (DRs) is one way of accessing foreign markets while minimizing the risks. DRs are financial securities issued by foreign companies which are traded on your local market. These companies release financial reports that conform to the Securities and Exchange Commission regulations of your home country, thus making it easier for you to evaluate them. Although DRs are traded like local stocks, they still generally adhere to the behavior of the foreign shares they represent.

Investing in international markets may have its own pros and cons but it is still a viable addition to your stock portfolio.

--
Kristien Wilkinson is an online writer and contributor to http://www.tradingstocks.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/investing/in-search-of-the-perfect-stockbroker.html http://www.articletrader.com/finance/investing/in-search-of-the-perfect-stockbroker.html Tue, 13 Nov 2007 00:00:00 -0600
Stockbrokers can be classified into two types: the regular brokers and the broker-resellers. Regular brokers work for a brokerage firm and deal directly with investors while broker-resellers act as an intermediary between the investor and a larger broker or firm. The general opinion is that regular brokers are more reputable than broker-resellers since the latter may not have taken or passed all the necessary licensing examinations in order to qualify as a standard broker. This doesn't mean you should avoid all broker-resellers at all costs; you just have to be more careful in choosing resellers you'll be dealing with.

Regular brokers are further divided into two kinds: the full-service brokers and the discount brokers. If you want a more extensive array of services which includes financial advice, research and analysis, retirement planning, and investment tips, then a full-service broker is the one for you. These services will cost you a lot though; full-service firms charge higher commissions and fees than discount brokers. If you have the time and resources to do your own research on the stock market and you feel that you are fully capable of making intelligent investment decisions, then a discount broker should be enough to work for you. They simply execute your trades with no added frills and charge less than a full service brokerage.

In choosing a broker, it's better not to be content with any random person a brokerage firm assigns to you. Personally review his credentials. Choose someone with four to five years of experience and ask for a list of clients that you can contact for references. Check with regulation authorities if there have been complaints against him.

You also want a broker who doesn't have too many clients particularly if you decide to be an active trader. If your broker is too busy handling 300 other clients, you may often end up talking to a call center representative. There are instances, of course, when your concern can just as adequately be handled by a call center so don't abruptly close your account just because your broker wasn't able to answer all your calls. The point is, your broker should have sufficient time and focus to take care of your portfolio. However, if you're perfectly comfortable executing trades on your computer without having to talk to a human being, then you can pick out an online discount broker and execute your trading on the internet. Just make sure that the online broker has a competent customer service department to address your problems and concerns.

Finally, read the brokerage contract carefully and pay attention to the fine print. If the advertised fees seem to good to be true, look out for hidden costs or interests. Don't be afraid to ask questions especially if there's any part of the contract that's not clear to you. Remember, you're already taking on a considerable amount of risk by investing in stocks. You at least deserve to have a decent level of security in doing business with your broker.

--
Kristien Wilkinson is an online writer and contributor to http://www.tradingstocks.com

Source: http://www.articletrader.com ]]> http://www.articletrader.com/finance/investing/investing-in-micro-cap-companies.html http://www.articletrader.com/finance/investing/investing-in-micro-cap-companies.html Tue, 13 Nov 2007 00:00:00 -0600
For the stout-hearted and adventurous investor though who can handle much higher risks, micro cap companies are worth looking into. Micro caps, also known as penny stocks, have market capitalizations of $50 million to $300 million although some companies can have as low as $6 million in tangible assets. They often trade for less than $5 per share but this range fluctuates depending on market performance. Penny stocks could outperform large and small cap stocks by as much as three percent. Because of their low stock prices, these stocks are quite attractive to retail and novice investors.

Micro cap stocks are traded on the Over-the-Counter Bulletin Board. While companies listed in the major exchanges need to meet minimum requirements such as net assets and number of shareholders, penny stocks are not subjected to any listing standards. The Securities and Exchange Commission requires micro cap companies to file financial reports except for those with less than $10 million in assets. These are helpful sources of information for investors although the accuracy and timeliness of the reports could at times be disputed.

Micro cap stocks are generally not covered by mainstream media and analysts which makes it difficult to obtain information about these companies. Investors must then do their own research. Relevant factors to look into are the 52-week high/low trading range, the price/earnings multiple, and the net profit and cash flow. Note also if the company files its financial statements on time and on a regular basis.

Most companies in the micro cap range aren't raking in major earnings yet and may take a long while to do so. The key is to study a company's business model and to be aware of any potentially marketable product or technological innovation that it plans to launch into the market.

Investing in micro caps requires a lot of effort in research and patience in waiting for the company to develop. Penny stocks have relatively low liquidity and as such, cannot be sold quickly to minimize losses should things go wrong. A lot of micro cap companies also tend to have short life spans and could fold up anytime.

The market of penny stocks is also teeming with fraudsters who illegally profit from unsuspecting investors. Unscrupulous brokers would buy stocks from a micro cap company at very low prices and re-sell them with an outrageous mark-up. Some micro cap promoters also create hype about a certain company to start a buying frenzy and increase the stock price. The overvalued stocks would eventually plunge back to its penny price once the hype is over and consequently wipe out the investors' money.



--
Kristien Wilkinson is an online writer and contributor to http://www.tradingstocks.com

Source: http://www.articletrader.com ]]>