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Lonesome P
For example a stock sells for $2.00 a share but has a book value of $5.00 a share. Does that mean, if the company is healthy, the stock is undervalued and should be bought?
Answer
Some people consider that important. The market is ignoring this fact. Perhaps there's something else going on that reflects the low price. A big lawsuit, problems with their product or service, competitors taking away market share etc.
A better question would be:
Should a new investor be looking at penny stocks (stocks under $5)?
The answer to that would be:
After about 3-5 years of very successful investing experience.
Some people consider that important. The market is ignoring this fact. Perhaps there's something else going on that reflects the low price. A big lawsuit, problems with their product or service, competitors taking away market share etc.
A better question would be:
Should a new investor be looking at penny stocks (stocks under $5)?
The answer to that would be:
After about 3-5 years of very successful investing experience.
Find the financial statements for a publicly traded company, and examine its financial statements?
Brad
Find the financial statements for a publicly traded company, and examine its financial statements from the perspective of a potential investor. Find or prepare the price/earnings ratio, the dividend payout ratio, the dividend yield, book value, and earnings per share, and identify whether you would consider this company a good investment, with regard to your personal investment objectives. Explain why you would/would not invest in this company
Answer
Go to the internet. Open a search engine. Type in "financial statement" and the name of a publicly traded company you want to review. Do analysis.
Go to the internet. Open a search engine. Type in "financial statement" and the name of a publicly traded company you want to review. Do analysis.
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