October, 2006-July, 2009 (Since Inception)
S&P500 -31.4%
BRK.A -9.7%
Collins Advisors, LLC. +4.6%
Portfolio

Annual
S&P -22.69%
BRK.A -18.64
Collins Advisors, LLC. -11%
Portfolio

Year To Date
S&P500 +7.20%
BRK.A -2.94%
Collins Advisors, LLC. +9.2
Portfolio

Optimistically…With the passing of 2008, so goes our Nation’s economic hardships.  It is a good time to take a look at some companies (while they are cheap) that may benefit from the change in administration in 2009. I do not give recommendations, however as a proud Buffaloian and Environmental Enthusiast; I’m highlighting a super green local publically traded company that saves the earth and also increased its earnings by 32% in 2008.

Company Profile

 Ecology & Environment (ticker, EEI) is located in Lancaster. Founded in 1970, E&E is one of the first “green” companies in the US.   The company provides environmental consulting worldwide. The services include environmental audits, impact assessments, environmental engineering, noise pollution evaluations, water pollution control, environmental infrastructure planning, air, water and groundwater monitoring.   The company also researches and implements innovative holistic solutions to complicated environmental and health issues.

Reasons to Buy

·        E&E has established itself globally by aligning with affiliates and subsidiaries around the world. Strategically, the company was able to expand their consulting services nationally and internationally; while maintaining cost-effective management, and keeping R&D in the WNY.

·        Obama has purposed tax incentives to companies that have green progressive environmental designs, as well as strategic goals to maintain a cleaner and healthier world.  Companies seeking those tax incentives will turn to companies like E&E for audits and consulting services.

·        Obama has also purposed tax incentives to small businesses.  E&E is currently a small cap company and will likely benefit from those incentives.

·        The current global trend is to become cleaner and more efficient.  Developing countries will soon be pressured to create cleaner and environmentally friendly manufacturing, and therefore will need to rely on the services E&E provides.
 

·        E&E has consistently increased its dividend since 1987. The dividend yield is currently at 4.4%.

·        Support your local economy and invest in something that makes you feel good!!!

Financials

Price $11.55

52 week high: 12.75

52 week low: 7.30

P/E: 17.30

Industry P/E: 22.53

Dividend Yield: 4.40%

Collins Advisors, LLC. has no affiliation with Ecology and Environment and has not been compensated for this recommendation.  Please be advised the purchase of any stock contains risk. Research this stock independently before purchase or contact your financial advisor.   Any questions please give me a call: 716-833-6338!

            Madoff received funds from clients and invested them in financial opportunities.  Most likely, in the beginning, he did this honorably, but sometime in the past he decided to scam his clients.  He was able to do that because his organization had one huge ethical flaw; his firm was both an investment advisory firm and a brokerage firm that held client assets.  In this way he could direct the firm holding the assets to send out false statements.  Clients were getting inaccurate information about their accounts. 

            To be sure that isn’t happening to you check your monthly statements.  Where do they come from?  Who sends them to you?  Is the firm that sends them reputable and trustworthy?  Can you contact them and ask about them?  All these questions will insure that there is separation between your advisor and the firm holding your assets.  You can ask your advisor for help, but you should check independently to insure you get clear and objective answers to these questions.

            There are other issues you can check into as long as you are in the sleuthing mode.  The following list includes some general safeguards that you should investigate:

-          What is the relationship between your advisor and the broker that executes your trades?  Sometimes your advisor will execute trades on your account.  That alone is not cause for undue alarm, but it does provide an opening for abuse of your account.  Brokerage fees have to be paid every time a trade is executed.  If your account does not get charged for trades then you have no worry about this non-separation of services.  However, if your account does pay brokerage fees, even deeply discounted fees, then there is an incentive for excessive numbers of trades to be made in your account because your advisor will made some money on each trade (this is how Madoff made money from his clients).  To check this, ask your advisor who makes the trades on your account.  If an independent firm performs the trades, ask your advisor how much they cost and who pays for them.  If your account is charged for the trades ask how much.  If there is separation between your advisor and the broker ask your advisor what the relationship between them is.  They should be independent; your advisor should not get any reimbursement from the broker (i.e. there should be no kickback).  Keep track of the number of trades in your account.  You should be on the alert for excessive numbers of trades and/or trades out of one stock and into another stock in the same industry.  If you notice such activity (sometimes there are good reasons to do this – end-of-the-year-tax-strategies, etc), question your advisor.

-          Are all fees you pay on your account disclosed in a clear manner?  Your financial advisor is a service firm and deserves to get paid for the service they provide.  They must charge fees.  So must the brokerage firm and firm holding your assets.  All these people provide services and need to get paid.  You should be advised of the amounts you pay them.  Be sure the amounts are disclosed.  Some firms net their fees into the price of any trade on your account and it is not easy to determine the total fees you are charged.  Ask about them!  Check to see if the fees are reasonable.  There are firms that charge unreasonable fees (more than 2% is really high), but some of those firms promise better returns for the higher fees they charge – look at point four for more on that issue.  You should check you fees in relations to the assets managed.  If you are charged a fee per dollar managed the more assets you have under management the more fees you pay.  A good advisor will lower such fees as they manage more of your assets. 

-          Who holds your assets?  This is the question discussed above in the first part of the article.  In recap, check your monthly statements and be sure the firm that sends them to you exists, is solvent and honorable, and is independent from your financial advisor.

-          Does your account always provide a positive return that beats the market?  Madoff’s firm did!  And his clients felt very smug about selecting such a great advisor.  But no one, and I mean no one, can beat the market with positive returns all the time!  Nobel prize winners in economics have started investment management firms and gone bankrupt.  Remember, no one beats the market all the time!   If your advisor tells you they do they are lying.  A good financial advisor should check your level of risk preference periodically and if you decide on a higher level you should beat the market often but you should also expect to have times that you suffer losses.  If you choose a lower level of risk you will not have as good returns in the good times but your losses should be less in bad times.  There is a balance and you should understand that and be sure you and your advisor are both aware of your comfort level and then that you not expect unreasonable performances for the risk levels you have chosen – in good or bad times.

So, how does one gracefully swing the delicate balance when your dearest Momma is also the Boss?

The first key is easy.

1. Leave the Family Politics at the Dinner Table: Remember when the couple on “Mad About You” had a daughter, and named her Mabel, for Mothers Always Brings Everlasting Love? It may be true but every lady has issues with her Mother (its all part and parcel of growing and growing and growing up).  However, these issues should never come out in the middle of business meeting; even short quips create unnecessary tension around the office.  Any personal issues must be handled at another time.  Tempted for one little quip – Just remember all that the boss lady has done for you, and what you were like as a teenager. 
   
   
2. Separate: As an employee your dedication is to the business, not the family.  Each decision must be made to grow the company assets.  Sometimes these decisions are difficult especially during slowing business cycles.  However compromising good business for the good of the family will create more problems in the long-term than the smaller issues that may arise.
   
   

Then remember, your mother is no dumb bunny.  She wouldn’t have hired you if she didn’t think you would be an asset and make strong contributions.  So prove her right.

1. Be Assertive: Yes, mother knows all…… but that does not mean that you do not have something to contribute. Make sure you assert your great ideas.  Research your ideas to ensure a solid foundation. This is not only beneficial for “the boss”; it is beneficial for the company. Who doesn’t like ROI, and when you’re working for your parent, they get a triple bottom line kind of thrill.

1. Be Innovative: You bring youth and vibrancy into a company…while people become successful in their jobs, many times their skills become stagnant.  As the younger partner, it is your responsibility to lead the way…maintain innovation and change in relation to technology trends, and environmental changes within your industry.  

1. Be Supportive: In the business world everyone needs positive reinforcement. It may be awkward to think your parent would need a pat on the back for a job well done, but its probably true.  As their colleague, it is very important to congratulate, support and praise, they need the reinforcement just as much as you do! 

If it was all fun, they (she) wouldn’t pay you, so yes there will be times when it won’t be a mutual lovefest.  There are keys to dealing with those situations also.

1. Listen: It is easy to “tune out” Momma when the lectures begin “I’ve had years of practice”.  Your parent/boss is the expert, they have years more experience and “know how” then you….disregarding their advice may not only create a stressful work environment, it may negatively effect the company. And remember all those times as a kid when you wished you’d followed her advice (like that boyfriend during college.

1. Maintain Clear and Detailed Goals and Lines:  Although you are involved in a family business- you are an independent individual…Momma raised you no other way!!  Don’t forget this. Establish a clear and detailed plan of setting and reaching goals to set quantitative steps in your career. Just because this is the same person cares whether you get your car checked regularly for safety reasons doesn’t mean she gets to remind you about this in the office. That final draft of the RFP due tomorrow, yes; the car no.

1. Take the Criticism:  “Uhg….She nags you about getting your oil changed and now the TPS report. Geese, she’s everywhere.”  You never have to get your oil changed “because she said so”……however the TPS reports must be completed. Remember, it’s now your bottom line too.  The better your company does, the better your bonus/raise.
   
   

The best thing to do is to remember that this woman’s first instinct is to nurture and nature you.  She wants you to succeed as much, if not more, than you do.  So take a deep breath, and enjoy the experience that few women get to have – to spend time learning even more from our mothers, and be old enough to appreciate what she has to say, who she is and all she’s done.

http://www.prosperitymediaco.com/Lifestyle/HowTo/recession.html