 How important do you really think business news and reports are when investing in stocks? |
| Does it seem like just a game. Some times news is bad but good and good is bad for stocks. If your short selling anyway, which most are, does it really matter things like "business news?&... |
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 I recently got burnt on a call that did not exercise because there was not enough time. How much time should |
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 Which company is the best to start an IRA with? |
More specifically, a Roth IRA.
I need to find out if there's a difference in the various companies that offer IRA's. I assume it depends on where the money will be invested once ... |
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 I bought stock in a oil drilling company and at $8.95 and now the stock is down to $5.50? |
| What should I do? the obvious is to sell, but I heard that when stock go down that means that automatically your investment firm is able to accumilate more shares...which mean you own more shares but ... |
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 What is a money market account and is it a good way to invest money? |
| looking for a good solid way to invest money with the best return ... |
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 Forex Market. Can a regular income be made? |
I was hoping that someone could help me out. I am wanting to trade in the Forex market but am wondering a couple of things:
1. Is there a "school" that I could go to that would ... |
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 How do you know when a stock will start the next day upwards or downwards? |
| I want to know if a stock is going to perform well in the early hours when the stock market opens. I notice that stocks don't start the day with the same price the end the day before.... |
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 I want to invest in shares, i have opened a trading acct if i want to invest what is that i need to look for? |
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 Should I sell all my domestic stocks right now and keep the international stuff? |
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 What to invest in.? |
| Is there anything that you can invest in with $300. What is the best choice? the stock market or another alternative. Should I try to get more money? any info is greatly ... |
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 How can one start investing? |
| I've really been thinking about investing in stocks but the only thing is I don't know where to start or what to invest in! is there like a "investing for Dummies".... |
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 How to invest? |
| i need to know how to invest in the stock market wisley. so i can grow up with enough money to support my kids and their kids and their kids and so on. help me understand how to invest.... |
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 Contributing to a 401K? |
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 Penny Stocks? |
Anyone know any good penny stocks to invest in???
Additional Details
If you had to invest in a penny stock, which would it be???... |
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amour | How do analyst rate a stock? |
in present and in the long run? |
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Kevin R
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I have always done my own research.
I use various econometric models, financial accounting formulas, earnings, balance sheets, WW Web, but really it often comes down to good management. I'm an ok stock picker, I'm an excellent money manager.
With all that said, the good ones find management teams and business professionals and invest in those. A good product comes around every once in awhile too. They crunch numbers religiously too.
It's really a gut feeling often for me. The numbers can lie, because of GAAP, generally accepted accounting principles.
For me at present, I use past and present earnings and sales trying to project into the future with patents, copy writes, and competition. For the future I let volatility provide the energy, i try to watch the companies. Financial predictions out more than two years are worthless in a year. So you gotta keep updating the present. |
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Yancy C
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They generally look at things like book value, price to earnings ratios, and potential for growth, as well as any economic factors that affect the industry.
Historically, negative analayst ratings have been much more accurate, as they tend to point out specific problems. Positive ratings tend to speak in generalities. There is also a lot of pressure from Brokerage houses to keep a positive outlook on things in general!
At least that's the theory, or perhaps they just throw darts. In the next bull run, my dog picks better stocks than the average analyst. |
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accendotraders
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This is an excellent question. There are multiple ways to evaluate a stock. Whether you are a long term vs. short term investors, most stock analysis breaks two into two camps: fundamental vs. technical analysis. Fundamental Analysis deals with the measurable interest value of a company. While technical analysis is an examination of the behavior patterns of a stock and those who trade that stock.
Either way, you need to learn all you can about the stock market. Learn all you can about both analysis strategies and then develop a trade plan for your investment goals. A trade plan describes where you are, where you want to go and how you will get there. As a part of that plan, you'll develop rules and conditions which will be your trade plan in action. This is where you analyze a stock.
A good trade is one entered and exited based upon rules and conditions -regardless of the outcome. Developing rules helps to eliminate the emotions of trading (which is where the big money is lost).
As a technical analysis fan, I believe in using technical indicators like: Moving Averages, Support and Resistance, Bollinger Bands, RSI, MACD and Stochastics (among a couple others). Learn how to use them as confirmation in conjunction and you'll be on your way. |
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vatanchoco
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Two approaches.
First, the "fundamental" approach which is an in-depth study of the listed stock. Such study includes the world market for the product, domestic market, internal processes (organization, production including technological risks, and finance) and winds up with stock price predictions over a given horizon, based on operational projections. Stocks which meet internal investment criteria can then be classified as investment grade.
Second, the "technical" approach which is a study of the price movements over time. This basically refers to the various monitoring technics on price and volume movements. It is basically a tool for "timing" of purchase and divestment. It is used more by "speculators" who go in and out of the market on a regular basis.
I believe that the failure of the market now ss due largely to the proliferation of "technical" players rather than the "fundamental" approach. |
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realtime1931@att.net
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Answer: With a crystal ball and an Ouija Board. Anyone who predicts the future does so with the disclaimer "past performace is no guarantee of the future."
Caveat Emptor. If your analyst is also a Stock Broker, I can assure you his advice is designed to get you to buy or sell (it doesn't matter which). He gets paid when you trade. He is a salesman.
regards,
Texian |
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Michael T
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Analysts recommendations are not worth the paper it is written on.
Wall street firms rate most companies a buy so that they will get new business from those companies (M&A, new stock issues, etc.). Without a buy rating, new business will go to other firms.
In 2000, most hi-tech stocks were rated a buy by wall street firms but after the crash, thousands of those went under. |
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brad
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If you look back on analysts buy, hold, or sell calls, they're usually just as wrong as the general market. Sadly, they do move the stock for a time being with their released call and change. Never listen to a hack like jim Cramer with your hard earned cash. They're just entertainers on tv. |
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The High Arch Analyst
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I'm a financial analyst. My method involves first reading the foot notes to the financial statements and reading the management discussion and analysis for the last few years. I do this to get some background and establish what is driving the firms sales and expenses and establish adjustments I will need to make to the firms financial statements to make them comparable to other firms in the industry.
I will them build preliminary model that forecasts the firms results for five years. Some guys do ten, it really just depends on the analysis. Doing a basic DCF to determine the fair value of equity is different than doing a full LBO model to determine the range in price that a deal is feasible.
After I have prepared the preliminary model, I will read other guys research to see how far off I am from them. I will also listen to the last few earnings calls, do more research and further tweak my model until I feel like I have something that reflects the economic reality of the firm. My boss and I will go over the model together and discuss the facts further. Sometimes we agree sometime we don't. Since I'm the junior analyst and he's the senior analyst I might have to change some of my variables if he insists.
Last comes the write up where I articulate my research, expected price (which is never a single number but a range of numbers) and state my recommendation. Of course nobody gives two shits about my research since I'm just a junior guy. Nevertheless, maybe someone will cut and paste a paragraph of one of my reports or use my model as a template for their own model that will actually be used to make an investment decision.
Since I'm not a sell side analyst. Our work does not go to retail clients or other institutional managers. Our stuff goes to in house managers who use it in conjunction with sell side research to make decisions. As a result we have a little more leeway to be objective since we don't have brokerage and/or investment banking relationships to worry about. Naturally our earnings forecast as well as our estimates of intrinsic value can be significantly different than what is reported on the mainstream media.
Anyhow that's my method. If your interested where I learned how to model check out Factset Dealmaven. It's where everyone who didn't have a formal training program learns to model. Wall Street Prep is good too I heard.
Best of luck to you. |
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