Monday, March 18, 2013

Personal Use of Business Aircraft

On March 11, 2013, IRS released changes to the entertainment use of business aircraft, available at NBAA

Under the Act, the difference between the actual cost of personal entertainment flights provided for “specified individuals” and the amount included as income for the individual (based on SIFL or Fair Market Valuation), is disallowed as a deduction to the corporation.

"IRS did make changes dealing with the treatment of depreciation and interest expenses. The final rules provide that, in the case of a taxpayer making the election to use the straight line depreciation method for purposes of the disallowance calculation, the disallowed depreciation in any year will not exceed the allowable depreciation for such year. Also, interest is now included in the costs subject to disallowance if the underlying debt is secured by or allocable to an aircraft used to provide entertainment flights."

NBAA Personal Use of Business Aircraft Handbook

Stock Momentum Analysis Education

Several stock momentum tools are easily available to stock watchers:

1. Stockrover -shows "relative strength" -latest momentum leaders from among 8,000 most liquid securities on NA exchanges.

2. IBD's CAN SLIM (7 Criterias) and IBD's "Tool Chest" based on IBD's SmartSelect® Ratings which are:

•Composite Rating rolls all of the other IBD SmartSelect® Ratings mentioned below into one useful measure, making it your single most useful fundamental and technical gauge. This rating also factors in where a stock's share price stands in relation to its 52-week high. And it gives more weight to the stock's EPS and Relative Price Strength ratings. Ratings range from 1 to 99, with 99 being the best.
Stocks rated 80 or higher are in the top 20% of the overall market.

•Earnings Per Share Rating (EPS) compares a company's recent quarterly and annual earnings to those of other publicly traded firms. Specifically, it looks at the past two quarters and the past three to five years of profit growth. That makes it easier to assess a firm's short- and long-term earnings growth. EPS Ratings range from 1 to 99, with 99 being the best.

•Relative Price Strength Rating (RS) compares a stock's price change during the past 12 months to the price moves of other stocks. It gives extra weighting to a stock's price performance during the past three months. RS Ratings range from 1 to 99, with 99 being the best.

•Sales + Profit Margin + ROE Rating (SMR®) combines a company's recent sales growth, profit margins and return on equity, then compares them to other publicly traded companies. It's also known as the SMR® Rating. SMR® Ratings range from A to E, with A being the best.

•Accumulation/Distribution Rating (ACC/DIS RTG®) tracks the level of buying (accumulation) and selling (distribution), based on daily price and volume changes. It's one of the best ways to spot stocks of interest to big, institutional investors. Accumulation/Distribution Ratings range from A+ to E, with A+ being the best. An A Rating indicates heavy buying; an E indicates heavy selling.

•Industry Group Relative Price Strength Rating compares the six-month price performance for a stock's industry group with that of IBD's 197 other industry groups. Runs from A to E, with A being the best.