I am new to all of this, but what can you do to determine whether a stock is under valued?. And what is valuable when you dig into a companies spread sheet.
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How to find a stocks real value?
- Thread starter MoneyMaker
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Quote from MoneyMaker:
I am new to all of this, but what can you do to determine whether a stock is under valued?. And what is valuable when you dig into a companies spread sheet.
Just watch the price action, thats the real value at any given time. Watch the charts and volumes thats all you need to know.
The classic method is to post some catch phrases on Yahoo and extrapolate a price to see what others say.
"Ummnnm, even without a short squeeze this stock should be traidn at 30x 2008 earnings which is about $95 - $105."
This method should earn you plenty of stars/recs with "atta boys" and "booyahs" on the side and give you excuse to buy the car you've been dreaming of.
"Ummnnm, even without a short squeeze this stock should be traidn at 30x 2008 earnings which is about $95 - $105."
This method should earn you plenty of stars/recs with "atta boys" and "booyahs" on the side and give you excuse to buy the car you've been dreaming of.
Is there something you look for to determine if a stock is undervalued?
It is undervalued right before an analyst is told to pump it up.
Does that apply to long term investing to, like what mr. buffett looks for?
Ok to clear up what i am asking is this, what techinques are used inorder to find the intrinsic value of securities in hopes of finding investments that are worth more then the current market value.
In a bull market, stocks tend to go up.
Everything you need to know is in the price action.
http://masteroftheuniverse.wordpress.com/
Everything you need to know is in the price action.
http://masteroftheuniverse.wordpress.com/
It follows that, in dealing with undervalued securities, the analyst is likely to become greatly interested in specific corporate developments, and therefore in proper corporate policies. And from being interested in corporate policies, he may pass over into being critical of wrong policies and actively agitating to bring about correct policies -- all of which he considers to be in the stockholdersâ interests. For it is true that in a fairly large percentage of cases the undervaluation in the market can be removed by proper action by or in the corporation.
Consequently, by insensible stages of reasoning, the specialist in undervalued securities finds himself turning into that abomination of Wall Street known as a disgruntled stockholder.
I want to say a word about disgruntled stockholders. The trouble with stockholders, in my humble opinion, is that not enough of them are disgruntled. And one of the great troubles with Wall Street is that it cannot distinguish between a mere troublemaker or âstrike-suitorâ in corporation affairs and a stockholder with a legitimate complaint which deserves attention from his management and from his fellow stockholders.
Cont. on link..
http://www.wiley.com/legacy/products/subject/finance/bgraham/benlec1.html
Consequently, by insensible stages of reasoning, the specialist in undervalued securities finds himself turning into that abomination of Wall Street known as a disgruntled stockholder.
I want to say a word about disgruntled stockholders. The trouble with stockholders, in my humble opinion, is that not enough of them are disgruntled. And one of the great troubles with Wall Street is that it cannot distinguish between a mere troublemaker or âstrike-suitorâ in corporation affairs and a stockholder with a legitimate complaint which deserves attention from his management and from his fellow stockholders.
Cont. on link..
http://www.wiley.com/legacy/products/subject/finance/bgraham/benlec1.html