Return on Investment (ROI)

Nowadays many companies work with the so-called Return on Investment system, with which they quote the profitability of their investments. For the first time this system was introduced by engineer Donaldson Brown in 1919. Thus, investors can quote a new acquisition’s duration with this well thought-out financial ratio system, until the developed costs will be again earned.

With other words we can say that the Return on Investment (ROI) is a financial ratio which explains the relationship of investment and profit, namely, the costs of an investment are set in relationship of the amount of the expected profit. The ROI indicates the proportion of the investment profit and also its value that will flow back from an investment.

The Return-on-Investment analysis is one of different methods of the investment valuation. Presently the ROI is one of most frequently used financial ratios. In the past years the ROI preserved by purchase decisions for computer systems and also by „Go”- and „NO-go”-decisions for measures of marketing, recruiting and of training. Moreover, the Return on investment kept from traditional investment decisions like the management of share depots and the use of risk capital.

The calculation of this financial ratio system proves to be quite simple. The quotient of the accounting income and the inserted capital is called Return on Investment (ROI). Therefore, investors can quote the financial success of an enterprise with this periodic system. However, a meaningful valuation is only possible if the result can be split-up because the ROI can be applied only to the overall picture and not to single investments.

As a result of the popularity of this system, nowadays there are various modern views of the long-proven systems which make possible a periodic, long-term or also a single investment calculation. Exactly in the today’s time, in which a misdirected investment can cause large income wastage, the Return on Investment can be very important as system. Many companies use it to get a clear overview of their financial situation and resources.

Another yield strategy which plays an important role in the ROI is Cash Flow Return on Investment (CFROI). This goal ratio can be formed within yearly planning. In this case the gross operating result/ EBIT (= Earnings Before Interest and Taxes) would be referred to the invested fortune (employed capital in the sense of totally assets).

This defines the Return on Investment as start of the ROI family tree. If investors add the budget of the annual writings-off now, thus the CFBIT (Cash Flow Before Interest and Taxes) develops. The CFROI, which is related to the same basis invested fortune, develops as financial oriented ratio more strongly.

An alternative is to discount interest on the future cash flow. In such a way designated CFROI corresponds to IRR (namely, Internal Rate of Return). Thus the question is which discount rate can develop, if investors make up the present value of the future cash flow and compare this CF with the invested fortune. On the other hand, the capital cost set (CCS) would stand and we can judge whether investors determine this CFROI equally or under the capital cost rate.

Our next question is, whether the employed capital needs to be formulated in the sense of total assets (or the company necessary assets”). Or whether it has to be balanced to the Working Capital by the circulating capital (these examples are often in American investment industry)? The outside capital which is free of interest is taken off (for example, commitments for supplies and achievements or pre-payments from customers).

In conclusion we mention that although the value can be investigated by means of the ROI that is managed by an investment, it should not serve as exclusive decision basis because the ROI does not permit statements about possible investment risks and about the dimension of income from matured investments.

Of course, this system has its disadvantages (like also every different one). The ROI does not take into consideration the nowadays important future-oriented developments and changes (for example, the purchase behaviour of customers or also demand and market saturation).

There is another example, namely, also the risk investments are not accounted at the stock exchange. As a result of this statement we can say finally that this system can have a very important meaning to evaluate investments and make correct decisions finally if we clarify the aspects of the future and the risk before in every detail.

source : hyip news

Hyip sites` security (SSL)

Many programs in the marketing haste, reach truly virtuosity. Some install one security facilities, others – another. AntiDDOS, AntiSPAM and the wntire heaps of other computer terms sound usual for investors already, they are often unknown to the wide circle of investors. Among the rest, SSL (secure socket layer) is used most often, it even exists on some cards of programs on some monitorings. And id the words referral and min/max is clear for many people, in this article we are going to talk about SSL and what it gives to investors.

We`ll say frankly. Investing to programs, whose sites are SSL secured are more preferable than those having no such connection type. Now we`ll tell you in a few words, what SSL is and you will understand why.

Every time when you enter any site of a program, there`s an information exchange between your computer and server. Your computer sends a request (when you enter address in the field of the browser), and server sends the response. Everything is rather simple. Typical communication. And everything would be great if this communication would not be easily tapped. HOW? You may ask… very simply, very simply for the professional hacker, though every willing person is actually not able to tap anything he wants, though this is rather widespread, there`s even a special term for that - ``sniffer``.

As the e-commerce developed (online investment, whatever you may call it), there arouse a question of keeping the data transmitted. That`s because, if earlier you could be stolen the e-mail address, you enter in the browser field, then now you can be stolen… right. The number of your credit card, PIN, password, anything. Of course these data can be encrypted now, though they are more easily to be hacked than SSL.

SSL – is a special connection between your computer and server that goes not usually, when computer sends information, and server gives it back, the connection is encrypted. This protocol was designed by the Netscape company as well as the protocol that provides protection of the data between service protocols (such as HTTP, NNTP, FTP etc.) and transport protocols (TCP/IP).

Thanks to SSL all the messages you exchange with the server, where the site of the program is located, are encrypted. By the way, if you wish to check, whether the site of your program supports SSL you can even do it via Whois, usually this information is mentioned there. And of course, HTTPS – that`s exactly the SSL protected protocol.

Now, we`ll tell you some theory, so that you would remember forever what it's all about the SSL. First about the keys. There are public and private keys. Private keys are stored by the owners of the site – public ones are spread in public accordingly. So, encrypting usually goes like that: when you enter a site and your computer, requesting the information from the site, gets it in the form of encrypted private key.

When you first visit the site you usually get the message from the browser saying that you enter the secured area and you are offered to accept the certificate (``Certificate authority (CA)``)… here is the public key, spread by HYIP. If you enter the settings of your browser, you will see the keys received, the keys spread by the so-called Authority. By default your browser trusts particularly this group of Authority.

Geo Trust – is one of them. Now more often one may see the sign of Geo Trust on the pages of most HYIP. It says: Secured BY… and of you click this sign, you will see what key is the site equipped. By the way, one may see the following button: Secured BY RapidSSL… which means that site is secured by the 128 bit`s certificate of this company. The number of bits is the ``length`` of the key and the more bits there are, the more reliable key is. For instance, it`s not so hard to decrypt the 40 bit`s key.

The proof of ``communicating`` with the server in an encrypted way is for instance the following message from your browser: Security Warning: You have requested an encrypted page. The web site has identifies itself correctly, and information you see or enter on this page can’t easily be read by third party.

Why easily? That`s because, as a matter of fact, SSL key can be decrypted. Though very powerful engines are needed for that, not everyone has them, and they are rather expensive. Especially it depends what you are hunting for…

As you can see, SSL – is a very positive characteristic of a program. That`s why if there are two programs you can`t choose from and the only difference is SSL, think twice, whether you want to feel yourself quieter?

source : hyip news

Don’t trust hyip rumors… use them…

Every person is subject to one for all process, the process inseparable from our substance… the process of thinking. To think person needs to possess lots of information, which is used for analysis. But every person physically can’t have enough information to COMPREHEND everything that gets to the sphere of his interests. There are two ways out of this situation. The first one – to refuse thinking. The second one - THINK OUT the information missing… so rumors appear…

Of course, HYIP as the sphere of interests is rather engaging, cause it’s about making money. Making serious money. And it’s hard to think that person, being of sound mind may refuse to earn something. Speaking about information, as the constituent part of some thinking process – HYIP is simply INVALUABLE.

Why? That’s because information here means direct moneymaking. If you possess information, you can take a decision, draw a conclusion – whether you will lose or win (that’s the analysis we are talking about).

Sorry for the scientific language, but otherwise you won’t understand that rumors may become both perfect assistant and vermin. HYIP sphere has become more than simple mathematics long time ago. Luck and skills, experience and knowledge, intuition and many other factors, which are not so easy to value, prevail here. So, be patient a little bit more.

So we are going to proceed from the fact you understand that rumors is a natural process, cause everyone wants to earn. And everyone has typical “excitement” and other phenomena in the process of making money, so it means that everyone is dragged into the turnover, where it’s impossible to live without rumors. Some rumors appear because of fear, others – from hopes and faith, third ones – because of simple scandal.

How can rumors be useful? The point is that rumors can hardly appear from nothing. Not talking about malicious or just rumors “to scam”, then rumor – is a spontaneous investors’ brood. Investor is scared, he’s afraid that this program will disappear soon.

He is inclined to hear it will disappear. He listens attentively to frivolousness and can hear nothing, and then suddenly he hears that on some forum some (!) customer mentioned something remotely (!) reminding the topic about his program.

Tense investor’s ear immediately transforms this information to the one he needs and… spreads it to all, willing to know it. Have you ever lain at night in a dark room, being alone in a big house? Have you ever listened to whether there’s someone going on your roof?

Any rustle on the kitchen was certainly a stamp of an elephant for you. What can we talk about, when all our attention is concentrated on MONEY? MONEY – this is the concentration of people’s cupidity, greed and bean counter.

But even taking all that into account we can hear a distant hint at the collapse, when it’s not even begun to show. Do you know why? Because there are perfect words of wise people “if cloth is thin, it may be torn”, person sees where it’s seen and person feels where it’s thin – as the result he starts to panic.

And hence, if you can hear at the right time where is the rumor from, what can it say, you can use it effectively. As soon as the problems with SYNCInvest and Prime Fund started, when Oneinvestment site went offline for the first time, there appeared rumors online, later on they transformed into the information about mysterious link between these resources.

And it was long before the collapse. If you could hear these signals, you could have saved the funds! And now, just for a second, think otherwise about these rumors. Was it the mass funds’ withdrawal from Prime Fund that became a destructive force that led to the following: on the fifth day of the crisis NOBODY could take a single penny from the system?

It’s also important to mention about commercial rumors. Dear readers, these rumors should be put to a separate category. They must be filtered out thoroughly and in case of finding some hostile mood – they must be taken away. Even scandal can often become a commercial measure, and then it’s called “black PR”, cause it’s aimed first of all at doing harm to the opponent on the market.

Rumors by themselves are not always harmless. The point is that rumors as a matter of fact are words a person wants to know. From the psychology science you can learn that person will not simply notice the information, he is interested in, so, he will pay no heed to the rumors as well, and if he hears them, so it is of a great interest to him, it means that info will be perceived! What does a good marketer need? Of course! It’s a probing!

We all want to earn with HYIP. We are told: there are rumors that it’s possible to earn with this program… can we forget the name of such a program? Hardly… rumors always influence as if being something confiding.

We don’t want to lose money in this program and we are told: you can lose money in this program. Of course we will immediately add it to our armory. That is the human substance! You just can’t imagine how much popular this service among PR specialists.

It’s important to have skills to listen to rumors and skills to cut short them. If you are not deliberate to use this information, you shouldn’t widespread it, without knowing its ultimate meaning and goal. Rumor – is a missile, launched absolutely accurately, having different effect.

Rumor man-generated can fade as fast as it broke out, rumor generated with evil emotions will hardly live as well, but if rumor is generated by the specialist, who calculates the impact technology, effect and consequences, the specialist, “delivering” rumor to the sphere needed can altogether expect “the big bang” or collapse or take-off.

And one should look where it has been originated, cause listening to rumors you will be in the know, who lost and where, where you can lose now, and where you can win, who wants to “kill” somebody. What programs are friends, and what are enemies. And the main thing: where the truth it, and where there is no… To do that you just need to LISTEN a little bit.

source : hyip news