Stock Ratings Now Available

Although I overwhelmingly recommend index funds and index ETFs, a few customers hold individual stocks (as do I) that need analysis on an ongoing basis. That analysis is available to customers of Compton Advisors, LLC in rating form.

Our ratings are two-part recommendations, the first, what to do if you do not own the stock (or if you are considering adding to your position), the second, what to do if you currently own the stock. Of course, any recommendation must be evaluated in light of your goals and other circumstances.

Buy/Hold - Given to issues with attractive valuations lacking 'red flags' that would indicate a wait-and-see approach.

Wait/Hold - Given to issues with valuations high enough warrant holding, but not attractive enough to buy. May also include issues that would otherwise be Buy/Hold, but due to capital structure, financial ratios or other 'red flags' cannot be recommended as such.

Wait/Sell - Given to issues which are overvalued, have erratic earnings, or exhibit a dividend policy indicative of underperformance.

Wait/Short - Significant chance of bankruptcy.

We hope to be adding analysis reports for selected issues in the future, but for now only ratings are available. To receive a current copy, contact john@comptonadvisors.com.

How SIPC Insurance Works

With the recent news surrounding E*Trade Financial, it may be time to take a look at how your holding with brokerage firms are protected.

Authorized by Congress in 1970, the SIPC was created to protect investors from fraud and theft by failed brokerage firm. Unlike the FDIC, the SIPC does not protect you from market losses, but rather works to return customer's cash and securities missing from customer's accounts in the event of a failure.

Let me point out that E*Trade is no fly-by-night firm and even if they were to fail, odds are the customer accounts would be handled without the need for SIPC involvement.

Coverage is $500,000 per account ($100,000 cash). For full details see: http://www.sipc.org/how/brochure.cfm