investing question

Discussion in 'Community Discussion' started by FredAkbar, May 28, 2008.

  1. FredAkbar macrumors 6502a

    FredAkbar

    Joined:
    Jan 18, 2003
    Location:
    Santa Barbara, CA
    #1
    Hi guys...is anyone here familiar with high-risk, short-term investments in companies like Winmark Corp (winmarknotes.com) and Sten Corp (stennotes.com), as well as Oxford Capital Partners (ocplimited.co.uk)? I can't really find anything online...basically the high interest rates look appealing, but the investments aren't insured and to be honest I don't really understand how they work. I'm currently in college (it's all paid for on a full scholarship) making $1000-2000 per month at a job. I've been looking around lately for good CD deals and putting $1000 here and there, etc., generally 3-4% interest. Are these higher-risk/yield securities worth looking into or is it well-known that people can often lose their money in these things?
     
  2. jb60606 macrumors 6502a

    Joined:
    Jan 27, 2008
    Location:
    Chicago
    #2
    you didn't get those out of a newsletter of some sort (or some random recommendation from an unknown/unverified source), did you?

    I know Sten corp was a recent "pump & dump" stock. I don't know anything about the other two without looking them up, but if they're micro-cap (Penny stock/Pink sheets), stay away from them unless you have money to lose.

    If you just starting out - don't look for proverbial "home-run" stocks... you'll be sorry. Invest in stable companies with room to grow or mutual funds.

    It's generally a somewhat dangerous time to be investing, unless you know what you're doing, you're extremely patient, and can stomach short-term loss and an extremely volatile market. I do this for a living, and I'm almost afraid to make any recommendations in what instruments to start with, but I could recommend a little reading material:
     
  3. FredAkbar thread starter macrumors 6502a

    FredAkbar

    Joined:
    Jan 18, 2003
    Location:
    Santa Barbara, CA
    #3
    Yeah that's kind of what I figured. Just to clarify, when I talk about investing with these companies, I mean buying their investment products, not buying stock in them. I don't really want to get into the stock market (other than my 2 shares of Apple :)) as I'm not too familiar with it and it's rather volatile.

    For example, from stennotes.com:

    "STEN's primary business is funding purchases of used cars and trucks by credit challenged retail buyers from independent “buy here/pay here” sales lots in Arizona. This business and the company's other businesses are described in more detail on the Company page and in the prospectus.

    A renewable unsecured subordinated note is a promise by STEN to pay principal and interest to the holder when due."

    These are the comanies that come up in Google's sponsored links for high interest rates.
     
  4. jb60606 macrumors 6502a

    Joined:
    Jan 27, 2008
    Location:
    Chicago
    #4

    Ahh - sorry, I misunderstood.
     

Share This Page