Jones Pays
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While numbers tell one tale, looking for other details in quarterly reports -- like changing upper management -- can give an alternate view of the inner workings of a firm, said Jorge Hoffmann, an investment representative with Edward Jones in Rockledge.
"Oftentimes, when there is a management change, it's because there are problems," he said.
It also would behoove an investor to look at industry trends when choosing a stock, Hoffmann said.
For instance, he said Edward Jones is not suggesting buying any companies in communications because, right now, consumers are clambering after the best deal in the midst of a "price war" that is cutting profits.
"We also don't like transportation now -- trains, airlines and cars -- because the earnings are not consistent, very cyclical," Hoffmann said.
I know he didn't just say that, you can't make it up.
Interesting post.
I wasn't aware UBS and Citigroup had information on their websites regarding revenuew sharing.
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Chamber forum Tuesday01.28.05 - The Sonoma Valley Chamber of Commerce's upcoming Tuesday, Feb. 1, breakfast forum will feature inspirational speaker Craig MacFarlane and newly elected City Councilmember Joanne Sanders, who will discuss local job trends.
Sanders is the president and founder of Bolt Staffing Services, an employment agency with three offices in Northern California. The company specializes in accounting placement services. Inc. magazine recently ranked Bolt Staffing Services among the top 500 fastest-growing private companies in the nation.
MacFarlane, who has been blind since age 2, developed an inner vision that has driven him to amazing achievements. He is a former competitive wrestler and the 1983 winner of the National Blind Downhill Skiing Medal. MacFarlane also excels at waterskiing, golf, track and field, horseback riding and ice skating; he is an accomplished musician and published author. In recent months, he has been visiting Edward Jones communities throughout North America. His Sonoma appearance is being hosted by Gary Scott, local Edward Jones representative.
The forum will run from 7:30 to 9:30 a.m. at the Lodge at Sonoma. Registration is $20 for chamber members, or $25 for the general public, and includes breakfast. For reservations, call 996-1033.
"Good...Good....Good...Good Vibrationsssssss! Roll out the Road Show!
Where do I start....well, use your own punch lines. I personally like the coal mine paragraph. 20,000 views or bust!
SOUTHERN ILLINOISANS AT WORK: BROKER THERE FOR HIS CLIENTS' NEEDS
Thomas Bubanovich, an investment representative with Edward D. Jones in Johnston City, checks stock prices on the computer in his office.
CHUCK NOVARA / THE SOUTHERN
BY CALEB HALETHE SOUTHERN
Name: Thomas Bubanovich
Occupation: Investment representative for Edward D. Jones in Johnston City
How long in position: Bubanovich said he has been with the company almost five years.
General duties: "I try to learn what a client's investing goals are, then use our myriad resources to meet those needs," Bubanovich said.
Special equipment used on the job: "We have a computer and a couple of programs to do analysis with," Bubanovich said. Otherwise, he said, he generally uses nothing more special than a pencil and paper.
Dress code: "We try to look nice," Bubanovich said. "Most of the days I wear a shirt and tie."
Hours: Bubanovich typically works from 8 a.m. to 5 p.m. Mondays through Fridays, but he also works by appointment. "Basically, if a client needs to see me, I'm there for them," he said.
Other work experience: Bubanovich is a retired coal mining engineer. He also taught courses in economics at Southern Illinois University Carbondale while getting his MBA.
Education background: Bubanovich has an MBA from SIUC.
Was the job his original plan in life? After being let go from the coal mines in 1997, Bubanovich said he was led toward the Edward D. Jones firm from his own rigorous investment experience. He applied for a job online and was hired one week later. "I didn't know quite what I was getting into, but I'm glad I did it," he said.
What he likes best about the job: "We can bring value to people's lives; that is my favorite thing," Bubanovich said.
What he would change about the work: "I wish we had more higher-paying interest bonds to offer people," he said.
Life lessons learned on the job: "I don't know if the job has taught me any lessons, because I've always been a pretty disciplined investor," Bubanovich said, but he added a person is never to young to begin planning for his or her financial needs later in life.
Would he recommend the job to another person? "I would recommend it to people if they wanted to help people and not just wanting to make money," Bubanovich said.
Everyone has something interesting about their jobs. SOUTHERN ILLINOISANS AT WORK is a weekly business feature that highlights local people working in and around the community. If you have a suggestion for a job profile, contact Caleb Hale at (618)351-5090 or email him at [email protected]. Profiles are free of charge.
Do you have an MBA,idiot? I’m not sure what the point of showing us this article was, but I can assure you that I would rather give my 500,000 to Caleb than to a snot nosed, sarcastic, never-works-but-sits-online -all-day arsehole like you. I think Mr and Mrs medium sized investor agree with me too.
It is amazing the amount of time 6 people can spend posting lies and half truths about the company that will have nothing to do with their cheating ways. So how much in bonds do you have in that wrap fee account?
I like the comment regarding the pencil and paper being his primary weapon of choice. I guess he forgot to mention the ICA chart.
Jealous Jonestown:
Pronunciation: 'je-l&s
Function: adjective
Etymology: Middle English jelous, from Old French, from (assumed) Vulgar Latin zelosus, from Late Latin zelus zeal – more at ZEAL
Definition:
hostile toward a rival or one believed to enjoy an ADVANTAGE
- jeal·ous·ly adverb
- jeal·ous·ness noun
______________________________________________
The grass is still GREENER where you water it!
Thanks for the english, french and latin lesson. I do appreciate it. I would say my comments are more toward one believed to enjoy an advantage as a rival would not be close to accurate.
After being let go from the coal mines in 1997, Bubanovich said he was led toward the Edward D. Jones firm from his own rigorous investment experience.
MBA...... Mining, Bowling & A couple of programs.... that should about do it.
Jonestown envy,
Yes, therefore this MBA must be a terrible person.
Get over it, move on…
Do you just hate your life? Do you have any friends? Wife left you? There are hotlines you can call for these type of depression problems.
Edward D. Jones & Co., a nationwide brokerage firm that caters largely to individual investors has agreed to settle SEC charges and pay a $75 million fine, according to a report in the Wall Street Journal (Dec. 20). The firm settled charges that it marketed mutual funds to its customers as among the "best" choices available to investors without disclosing that the funds paid the firm a fee to be included on the list--a fact that any reasonable investor would--or at least should--consider quite important in making a decision about what assets to purchase. The settlement is part of a continuing effort by the SEC to police conflicts of interest on Wall Street, and another example that sometimes the difference between a broker and a used car salesman can be quite small. (ph)
December 20, 2004 in Civil Enforcement, Securities | Permalink
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CommentsA lot more on this kind of stuff coming soon!
George ("Wall Street Mole")
Posted by: George Smiley | December 30, 2004 04:19 PM
I complained to the SEC on June of 2004 about being steered into funds by Edward Jones. The SEC forwarded the complaint to Edward Jones compliance Dept., and they basically whitewashed it, and told me where to go.
So what's happening now couldn't have been more appropriate or just. I hope they get treated by regulators and the state Atty Generals the way they treated the public!!
Posted by: Arnold Herschkowitz | January 14, 2005 06:05 PM
The guy gets fired from the coal mines after it is on the verge of shutting down. Jones hires him because they feel he has an in on the 401K rollover business. He comes out firing out of the gates by getting rollovers from the miners with 30+ years in the business. He allocates all of the proceeds into American Funds and that is why he only needs the pencil and paper. Sound about right?
A couple definitions according to Webster:
envy
Pronunciation: 'en-vE
A PAINFUL or resentful awareness of an ADVANTAGE enjoyed by another joined with a desire to possess the same advantage.
jealous
Pronunciation: 'je-l&s
Hostile toward a rival or one believed to enjoy an ADVANTAGE.
______________________________________________
The grass is still GREENER where you water it!
By Chuck Jaffe, MarketWatch
Last Update: 12:01 AM ET Jan. 30, 2005
BOSTON (MarketWatch) -- Fund investors were promised good medicine to combat the industry's problems.
But increasingly the cures of "transparency" and "disclosure" turn out to be placebos, and investors just got the latest example. As part of settlements with federal regulators, brokerage firms like Edward D. Jones & Co. and Morgan Stanley (MWD: news, chart, profile) had to disclose revenue-sharing deals they made with big fund companies. In addition, fund companies are beginning to disclose how these deals work too, although the information is buried in the "statement of additional information," the second part of a prospectus that shareholders only receive if they go searching for it. Revenue-sharing fees are legal, so long as the arrangements are properly disclosed. Regulators have an issue with brokerage firms that create "preferred" lists without revealing that the brokerage firm earns extra compensation whenever an investor moves money into the favored funds. Think of it like paying for shelf space in a grocery store, where the maker of cereal or spaghetti gives the grocer a little incentive for getting the best placement on the racks, the spots seen by the most customers. Edward Jones posted its revenue sharing disclosure on the firm's web site on Jan. 13, noting that it earned $82.4 million in revenue-sharing dollars during the first 11 months of 2004 from its seven "preferred" fund companies, American, Federated, Goldman Sachs, Hartford, Lord Abbett, Putnam and Van Kampen. Technically, that money was incidental to shareholders, rather than coming directly from the customer's pocket. The way revenue-sharing deals work, if a customer deposits $10,000, the fund company takes a part of its management fee and turns it over to the brokerage as a bonus. The consumer does not directly pay anything extra, although in an industry with the big profit margins of the fund world, you know at least some of the cost trickles down eventually. In the case of Edward Jones, nearly 60 percent of the money the company earned selling fund and annuity products in 2003 came from revenue-sharing deals. More than 95 percent of the firm's fund shares historically have been into the preferred fund companies. The biggest payment came from the American funds, which actually had the lowest fees; that's a good sign, showing that brokers were not necessarily out to enrich the mother ship by pushing investors into lesser fund families. In fact, it's clear that many Edward Jones brokers -- often in one-person offices -- were unaware of the way the deals worked, and stuck with the preferred list mostly because those were the only issues for which Jones sponsored educational briefings. That practice of limited briefings has stopped. But because the disclosure doesn't make it entirely clear exactly how each revenue-sharing deal works, there is little to be drawn from looking at the numbers. There's no way to say that clients who were steered to a firm paying a big incentive were done any form of injustice. So you get disclosure, but don't know what to do with it, and it doesn't help you make any sort of investment decision. That's not real help, it's a placebo. Morgan Stanley, by the way, apparently felt the revenue tallies added so little to the process that it didn't actually disclose them on its web site, instead making a statement that describes how revenue sharing works and who it has agreements with. Fund firms aren't giving much more data in their disclosures, and since investors almost never actually call for the statement of additional information, the filings are just another meaningless sugar pill. Of course, regulators hope to give the information more muscle when they require "point-of-sale" disclosures, where brokers and planners will have to tell a customer at the time of a purchase just where all the dollars are going. Assuming the new disclosures become mandatory, they will make people aware of the issue. It still won't change anything. Cerulli Associates, a Boston research firm, did a recent study showing that "preferred" investments get as much as 10 times the flow of funds not on a brokerage house's list. Disclosure won't change that. It's as if the company making the spaghetti put a label on the box saying that 5 cents from every dollar went to pay for better display on the shelves. If there's nothing to indicate that money comes directly from the consumer's pocket -- and in point-of-sale disclosures, nothing will say that revenue sharing increases the customer's out-of-pocket cost -- buying habits won't change. "It's a red flag that says 'Oh, you investor, be aware that there are special deals being made here,'" says Geoff Bobroff, an industry consultant. "But there is no way an ordinary consumer can figure out what this translates to. If they don't see that they are directly paying more -- and that's not in there -- they can't draw any real conclusions from this." bpd, here's a new word for you na·ive or na·ïve (n-v, nä-) also na·if or na·ïf (n-f, nä)
Chuck Jaffe is a senior MarketWatch columnist. His work appears in dozens of U.S. newspapers. His MoneyLife with Chuck Jaffe radio show airs daily from 10am to noon ET on AM-1060 WBIX in Boston and can be heard live online at http://www.wbix.com.
adj.
n.
Wringing your hands and hoping EJ goes down the tubes isn't going to make it happen. There have been 10-12 ex-Jones brokers who have been predicting the apocalypse for Jones for 2 years now, and yet the accounts keep going up, the revenue keeps increasing , the number of IRs is moving up. It simply isn't going to happen. Go back to your desks, go to work and shut the hell up for once.
[quote=Bill Fakkland]
Wringing your hands and hoping EJ goes down the tubes isn't going to make it happen. There have been 10-12 ex-Jones brokers who have been predicting the apocalypse for Jones for 2 years now, and yet the accounts keep going up, the revenue keeps increasing , the number of IRs is moving up. It simply isn't going to happen. Go back to your desks, go to work and shut the hell up for once.
[/quote]
Bill you are one funny person, you're always coming up with great comic relief. Keep up the good work and keep an eye out for what's in the best interest of your clients, your family and yourself. Eventually you'll make the correct choice.
No Lance, it’s not the capital base. Its the fact that you’re an idiot with an axe to grind. Oh my, THEY LIED TO THE SEC!!! Is that your next line? Jones is no more likely to go “under” than Morgan Stanley or any of the others. The churn rate at Jones is less than half the industry average. Most of their clients have recovered from 2001-02 and are pretty happy these days. Its only morons like you that perpetuate the myth that the sky is falling. Shouldn’t you get on the phone to generate some commission to pay the lease on your ugly Infiniti SUV ? You really make me sick.