Landing the right job takes some homework

Like it or not, many Americans are looking for work these
days. It can be a frustrating process, but the tips below
can help.

Motley Fool

Universal Press Syndicate The Spokesman Review

•Look for a good fit, not just any job. Think about what
you like to do, what you’re good at, and what kinds of jobs
and employers would match well. This might seem like a
luxury when you really just need a salary again, but you
might be able to land a more fitting job more easily, as your
genuine interest and skills will earn you extra points.

•Do your homework. Employers will likely interview a
bunch of people for a job. They probably won’t be too
impressed with those who don’t have a good grasp of what
the company actually does, its industry and competitors,
and its strategy and challenges.

•Focus on people and connections as much as on your
resume. Understand that job listings in the classifieds are
not your best route. Talk to people you know (and the
people they know) about where they work, and feel out
any possible fits for yourself. Ask contacts to put in a
good word for you when you apply to various companies.

•To get the job, do the job. If at all possible, demonstrate to
the company that you have what they want. If you’re a
salesperson, demonstrate how you would sell the
company’s product. If you’re a marketer or strategic
planner, outline how you would tackle one or more
company initiatives. If you’re a Web designer, ask for a
small project with which to show your skills and turn it
around quickly. If the manager can imagine you in the
position, you’ll have a leg up on your competition.

For more tips and resources, read "Ask the Headhunter:
Reinventing the Interview to Win the Job" by Nick A.
Corcodilos (Plume, $14.95). Online, visit
http://www.wetfeet.com, http://www.asktheheadhunter.com,
http://www.monster.com, http://www.hotjobs.com,
http://www.careerbuilder.com, http://www.careerewards.com and
http://www.headhunter.net.

Also, be sure to check out the Web sites of companies
you’re interested in. They’ll often post job listings there.
Good luck!

Ask the Fool

Q: What benefit does a company whose stock is sold
derive from the sale of the stock? The buyer’s money does
not go to the company, with the exception of an IPO. Why
is it bad news for the company when its stock price falls?
— Larry, via e-mail

A: You’re right. Companies get their money from shares of
stock when they first sell the shares to the public. Once
the shares are "out there," they trade between investors.

When you buy shares of Apple Computer, for instance,
through your brokerage, you’ll be buying the shares from
an investor who wants to sell them. (It’s kind of like
baseball cards. The companies that print them get their
money when the cards are sold, and after that they’re
traded between owners, with their value rising or falling.)

Still, share prices matter to companies. If Apple’s stock
price falls significantly, so will its total market value. A
competitor might look into buying the company,
whether Apple likes that or not. Also, low prices limit a
firm’s flexibility. When Apple’s price is high, if it tries to
buy another company with its stock, that acquisition will
require fewer shares. And if Apple wants to issue a few
more new shares to generate more money, it will get
more for each share when the price is high.

Q: I’m interested in day trading. Where should I start?
— M.B., St. Augustine, Fla.

A: Yikes! We advise even veteran investors against day
trading. Studies suggest that at least 90 percent of them
lose all their money. All new investors, before plunking
any money anywhere, should first spend a lot of time
reading, asking questions, and learning. Try some
books by Peter Lynch and John Rothchild.

My dumbest investment

In 1986, at the encouragement of my now ex-broker, I
bought 200 shares of stock in a department store. It
filed for Chapter 11 bankruptcy protection in 1988, so
I wrote off my loss.

In 1996, I was notified of a class-action lawsuit, and I
signed on to participate. In 1997, the law firm involved
sent me a check — for 99 cents — as my part of the
settlement. I later included the check in my regular
deposits and received a notice from my bank that the
lawsuit fund’s account was closed and the bank was
charging me a $2 handling fee. — Leon Sell, via e-mail

The Fool responds: How frustrating! Class-action
lawsuits against companies whose stocks have plunged
are common these days. Sadly, most of the money is
made by the lawyers. Those of us who owned up to a
few hundred shares often won’t end up with much more
than $5 or $20. Still, as long as the check clears, money
is money.

The Fool’s take

Over the past 20 years, the amount Americans have
paid for medications has increased by more than 15
percent annually, on average, to an estimated $117
billion in 2001. This far outpaces GNP, which has
increased, on average, less than 4 percent per year.

Government-set price controls are appealing, but
remember that profit is a powerful motivator for drug
companies, which spend enormous sums on research
and development.

Limiting their profits on successful drugs may not be
ideal and could limit innovations. Drug companies as a
group have net margins four times that of the average
Fortune 500 company, according to the Kaiser Family
Foundation. The companies point to the high cost of
drug development, but per a Kaiser study, research and
development expenses make up only 14 percent of total
drug company revenues, less than both net profits (18
percent) and marketing expenses (16 percent).

If drug companies ignore the problems inherent with
existing pricing structures, a backlash may be inevitable.
This would hurt the companies, would impede their
incentives to develop new therapies, and would
ultimately harm the public as the opportunity cost of
drug development becomes too high. Investors
interested in drug companies should keep an eye on
drug-pricing developments.

Send questions for Ask the Fool, Dumbest (or
Smartest) Investments (up to 100 words) to
[email protected]

http://www.spokesmanreview.com/news-story.asp?date=042603&ID=s1341731&cat=section.business