Posted on Jun 13, 2016
What do you look for in a company before investing?
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P/E ratio, Dividend Yield, Intrinsic Value.
I personally look at a company and see their main sources of income.. For example, GoPro... Was the stock to have at their IPO, but their source of income was dependent off of one product that is shatter resistant... I also look for steady monthly cash flows (REIT's), consumables (Oil, Water, Food) and cutting edge (Alphabet"Google")
I personally look at a company and see their main sources of income.. For example, GoPro... Was the stock to have at their IPO, but their source of income was dependent off of one product that is shatter resistant... I also look for steady monthly cash flows (REIT's), consumables (Oil, Water, Food) and cutting edge (Alphabet"Google")
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Posted >1 y ago
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Innovative products, market penetration, overhead to production ratio.
Your GoPro example had the latter two, but they will be a victim of their own success unless they come up with something new.
In my opinion, the best bet for an owner of that stock is to hope that the company is purchased by another company, giving a fine premium on share price, Their earnings have almost certainly peaked.
Your GoPro example had the latter two, but they will be a victim of their own success unless they come up with something new.
In my opinion, the best bet for an owner of that stock is to hope that the company is purchased by another company, giving a fine premium on share price, Their earnings have almost certainly peaked.
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It is best to look at the ownership,management, and the numbers. You want to make sure that there is growth. If they are a new company, then it is better to look at the team and their experience as well as their business plan (executive summary).
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LTC Yinon Weiss
I used to do a fair amount of trading. I learned I wasn't better than the market at it (which is not surprising), so now I just invest in ETFs and commodities.
If I find that a company is undervalued due to an emotional news response that is not material to their core business, I would consider buying it at that point to capture the upside of a temporarily depressed stock, but that's not really investing, that's still trading.
If I find that a company is undervalued due to an emotional news response that is not material to their core business, I would consider buying it at that point to capture the upside of a temporarily depressed stock, but that's not really investing, that's still trading.
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I ran into a similar issue, underperforming the market with trades... I usually traded naked calls/puts unlevereged and would make decent daily returns, but commissions ate everything away.
And I do the same with any qualitative news within the company and dips below the fair value
And I do the same with any qualitative news within the company and dips below the fair value
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Apple, majority of their sales come from 1 product, their phone. People will eventually get tired of the same recycled candybar phone that hasn't been changed aesthetically since it's launch in 2007. From that, I will then look at it's current price per share and get into the technicals
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