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Cheap Stocks
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ten4one
Master |
22-Dec-2006 13:14
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Cheap or expensive is relatively a very subjective term similar to rich and poor. You maybe poor in one country and rich in another in comparision. Likewise, the pxs of stocks maybe cheap compare to some and maybe expensive otherwise. Therefore, to be fair to the stock concerned, it has to be an apple2apple comparision - it is very time consuming to do so! I don't believe there is such a thing as 'cheap' stocks. If so, The Market must surely be a Fool not to spot it. If The Market didn't spot it, there must be a reason and that reason is good enough to 'kill' that stock. Thus, even with all the good fundamentals, a 'cheap' stock will still remain as cheap or even cheaper if The Market shows no interest. Therefore if you've spotted one and if you've the guts and patience to buy and wait for The Market to agree with your judgement... voila! you've got yourself a REAL GEM! cheers! |
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iPunter
Supreme |
22-Dec-2006 13:03
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It is common sense that if the big boys want to play a stock, they won't choose a "koyak" stock in the first place.... :) |
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Novocaine
Veteran |
22-Dec-2006 12:55
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If u ask me I would say Electrotech and Global Testing are good undervalued companies with P/BV around 1 and with upcoming expected cyclical tech uptrend they are worthwhile considering..utac is another.. |
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Novocaine
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22-Dec-2006 12:53
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IMHO agood undervalued stock will be one which is preferably cash rich and has great growth potential and proven earnings with excellent management..so choose wisely.. |
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Novocaine
Veteran |
22-Dec-2006 12:52
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but to choose good undervalued stocks u have to look at the fundamentals too..ie PE ratio amongst many to put briefly.. |
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Novocaine
Veteran |
22-Dec-2006 12:50
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undervalued stocks are priced below their NAV or book price to put it crudely..there are of coz other definitions ie with respect to growth etc etc.. |
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Novocaine
Veteran |
22-Dec-2006 12:49
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theres a difference between cheap and undervalued..mebe undervalued is better understood.. |
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Livermore
Master |
22-Dec-2006 12:43
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FerroChina and CHT are cheap stocks |
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winall
Member |
22-Dec-2006 12:20
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ok, thanks. so how abt china haida n starcruise? |
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shplayer
Elite |
22-Dec-2006 12:18
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winall, I think one of the biggest fallacy of new investors is their perception that the lower the stock price, the cheaper it is. Perhaps you should consider looking at the "Value" of the stock. In this, you need to consider things like NAV (Net Asset Value) per share, EPS (Earnings per share) against the share price.......amongst other things. Hence, if you compare:
to a stock that is
Whilst the latter ($10.00 stock) is more 'expensive', but don't you think is is a better 'Value' stock than the 5cts stock? For me, I would rather invest in the $10.00 stock than the 5cts stock. Think about it. |
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winall
Member |
22-Dec-2006 12:01
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thanks for the advice. i m a noobie. whats ta fa, etc? becos my budget is low n wanna try buying stocks |
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tanglinboy
Elite |
22-Dec-2006 09:18
Yells: "hello!" |
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Agree... somehow it seems that I always seem to lose money when I buy penny stocks. |
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iPunter
Supreme |
22-Dec-2006 07:29
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Cheap stocks (ie. penny stocks) can actually be more dangerous than higher price stocks because of the invariable leverage involved when you buy many more lots (thus making it no more 'cheap') than you otherwise would. Because of this, small price swings up or down are magnified accordingly and you stand to lose more drastically if the swing is against you. The lower the price of a stock the greater is such built in 'leverage'. |
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rogue_trader
Master |
22-Dec-2006 03:27
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Hi winall, any time frame to hold or sell and what is your "budget" like? And do you prefer TA, FA or GA? |
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awchyeong
Member |
22-Dec-2006 01:24
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Hi winall, if u are a beginer, please do not attract by the cheap stock. unless u hv an expert TA or FA person to guide u.otherwise changes of money loss or lock up by the cheap stock is high. |
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winall
Member |
22-Dec-2006 00:18
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hey, got any cheap stocks to recommend? any opinion on china haida n starcruise? |
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