[quote:39e10a5dad="HappyHarry"]Sounds decent. Sounds like they're trying to move from government control to going public. Check out the numbers when they release them. Might be worth a look.[/quote:39e10a5dad] sure will do but just out of curiosity what kind i of numbers i should be looking for... can u give me some examples ...
Sales numbers and sales trends. For example: last 5 years of sales. Does it show and upward trend? And: profit. Again do they make profit? Is it increasing?
ahhh ic ic basically any value that would give it an upward trend or growth possibility. chahine
Definitely. The surest thing that raises the price of stocks is the earnings. Always try to find a stock with a track record of increasing earnings. Ultimately that is what pulls a stock price up. An example: say GE always sells for a 25 P/E ratio and it has for 50 years. This is a pretty reliable guide. If they announce that they are going to have 1.00 in earnings per share for the year, the stock would sell for $25. You buy it at $25. It turns out that they have some unexpected results and come in ahead of schedule by 25% and announce that year end earnings will be $1.25 per share. You can almost be guaranteed that the stock will now be trading for $31.25! Earnings are ultimately the only thing that ever push stock prices upward in the long term. In the short term, speculation and euphoria can drive a stock up, but they come back down to reality hard when the earnings aren't there.
ic ic that example of GE definitely makes sense nice i see some buffett like thinking application in there..like using the earning as a measuring stick.i like his technique... he is very smart at that age when 24 to start thinking at that level.no wonder he is number 2 world richest.... chahine
That's why these crappy penny stocks you keep finding aren't too good: they don't have any earnings :)
i do agree with u but if i look at other stocks that with higher price... i do not have a purchasing power to really make my portfolio value increase.. so i have to find lower price stocks to increase the funding to be able to really play in long term stocks such as kkd, chs, cyd and many more.... chahine
Let me illustrate a point which might blow your mind. You have $300. You buy 100 shares of a $3 stock. It goes up 10 per cent. You now have $330. You have $300. You buy one share of a $300 stock. It goes up 10 per cent. You now have $330.
yeh i do agree on that happyharry... sounds rational... chahine
Thanks. I enjoy being called rational! It beats the alternative :)
When the capital is low, people get too obsessed with price per share. Per centage gain is what matters most.
a little article i stumbled upon what do u guys think http://english.peopledaily.com.cn/200310/28/eng20031028_127029.shtml chahine
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