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 Can someone explain IRA's (retirement) to me in very simple terms?
10 points to the first person to explain in the simpelist terms. I tried to look it up on the internet but because I'm not familiar with banking terms I didn't unerstand what they were ...


 What is 10% of 3000$?
...


 Should I start 401K with a recession around the corner?
I recently become eligible to join 401K through my work for the first time. With a recession possibly looming around the corner and the Market not performing very well right now, what should I do? S...


 Whats your Favorite Dividen Stocks?
I'm looking into Dividend Stocks whats your Picks?...


 How can you tell if a GOLD COIN is fake?
...


 Best way to Invest $15,000.00?
I was given $15,000 as a gift and I was wondering what the best way to invest the money to make the most interest. All advice is appreciated!!
Additional Details
I would like to invest ...


 How low could the U.S. stock market go? Can it drop to 0?
Nov.12th 2008...Dow Jones is 8282.66...the Nasdaq is 1499.21...the S&P 500 is 852.30 as of this writing. Is it conceivable that these numbers could ever drop to zero? And if they did, what would ...


 What is Balance Sheet?
...


 First stock purchase?
hi i am looking to buy some stock for the first time by my self, i already have some stock that was purchased for me by some relatives when i was younger but this will be the first investment that i ...


 What country is the most desirable to consider for retirement?
...


 How can I invest in long term stock..?
I am not interested in day to day trading. What are good companies to invest it in if you are a poor man like me but would like to invest something.
How can I read the investment portfolio?
...


 I have no work in age of 62?
...


 How much interest is going to be if i invest 60 crore rs. ?
...


 The money you put in a Roth IRA is after tax. That money and all the money that grows is tax free or taxable?
When I take it out?
At what age can I start taking it out?

T...


 Why the stock market drop so much on last tuesday 27.02.07?
i want to know the reason why....


 I Need to Make $4,000 in the next two days.?
What can i do??????...


 Should I sell my mutual fund?
I started with $1600 and never made any interest. I've now lost over $500. I'm not desperate for the money, but I don't want it all blown away either....


 Has anyone bought any stock before from the stock market?
If so, can anyone tell me how I can purchase stock for an investment? =)...


 What would $10K be worth in 30 years in a mutual fund?
This is hard to explain, but I'll try, I really need some solid advice. :) -- Thanks in advance, by the way!

Background on me - 31 yo married mom of 4.

I recently left a ...


 Is it time to get back into the stock market?
i moved my 401k to cash when the DOW was around 14K. should i get back into it now? is it to early? ...



vivek s
How do we identify undervalued stocks ?
I would like to invest for long term in Indian stocks. I would like to know, how to identify undervalued stocks. is there any formula or procedure to find them
                     
 




muncie birder
Rating
I regret to say that I do not think that currently there are any undervalued Indian stocks. At least none that I am aware of. There might be some in a few months if the correction continues.

Steps to take:

Look at the projected growth rate of the company and the PE ratio at which it is selling. If the PE ratio is less than the projected growth rate, it might be undervalued.

Look at the balance sheet. How much debt vs equity does the company carry. If the debt is more than 1/2 the equity, the company may have problems.

Look at the sales figures for the company. Are sales increasing at a rate greater than or equal to the earnings growth rate?

Consider the industry that the company is in and compare it to other companies in the industry. Is its growth rate better than its competitors? Is is a leader in its industry sales and earnings wise?

Does the company pay a dividend? That adds to the stability of the price of the stock but it does nothing to determine if it is undervalued or not, but stocks that pay dividends are worth somewhat more relatively speaking than stocks that do not.

Are the executives overcompensated? Are they working for the company for for their own benefit?


mikeislegal2001
Rating
Hello,

to determine if a stock is undervalued,

find the cost of a company ex. IBM might be worth 1 billion

then take the outstanding shares and divide them into the companies worth in this case 1B

then look at the stock price on the open market, and if the stock listed as the current price of the company is lower than what I just explained, the stock is characterized as undervalued


jal
there are different strategies... depends.. the whole science or study of identifying undervalued stocks and investing in them is called Value investing, pioneered by Graham and Dodd. read the wikipedia article to know more. the article is: http://en.wikipedia.org/wiki/Value_investing


Jaleel Mohammed Jalaludeen
http://investingindians.blogspot.com


seriousddneeded
PSR Price to Sales Ratio

http://www.wallstraits.com/school/sage_valuation2.html

My stock of the year 2007 "PBLS " PSR is .005

Should be at $1.38 compared to TXI = PSR Comparison
Selling at .0175 because they have not filed in 10 years.
PBLS has recommitted to shareholders to file the form-10
in early 2007
http://www.pbls.biz/pressrelease_content.asp?prid=82


Dont be lazy
Do the research !!

Jockee


Naresh R
Rating
why go for stocks, try NIFTY. I too was trading stocks for long time but found that I had lost more by trading stocks. Actually stocks work well in bull market. I prefer to trade NIFTY than stocks. Please do not trade NIFTY by yourself as its bit risk by doing self-trade, try to get recommendations from good and reliable technical analyst. I have subscribed for www.Assuredgain.com 's recommendation.


Sang Suci
First, we need to understand that price doesn't equal value. Price is what we pay. Value is what you get. We call a stock is undervalued, among other reasons, when its value exceeds its price. Secondly, we need to understand that value is subjective while price is objective. Whether a stock worth $10 is expensive or not really depends on individuals judgement. How to assess value? Remember, value is what we get. If you thing you can get what you want by investing in a particular stock, all you need to do is to see if the price is reasonable. Just like when you go out to buy LCDs. You like the quality, and you look at the price. After that, you ask yourself 'is it worth it?'


tyates999
The only way to know if a stock is undervalued is to go into the future and see if the price is higher at some point. There's no magic valuation formula and if there was, everyone would use it and no stock would be over or under valued. The whole idea of an undervalued market goes against market efficiency, and if the market is inefficient, then why would you ever want to buy into it? An undervalued asset would stay undervalued forever.

However, you do want to buy value stocks, as defined by low book value. Value stocks do outperform growth stocks, just as small stocks outperform large stocks. This was established by Fama & French in the three factor model. You can exploit this through stock picking, but are better off using an index.


pinky
its performence in the past, the properitor or the head, distribution of dividends in the past, the sector,and the value of those sector, like that


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