Sentences with phrase «value traps -lsb-»

In part III of the interview the gurus discuss how to avoid value traps.

Companies with high dividend yields can potentially offer very strong returns, but they can also lead to value traps and dividend implosions.

when to exit a position to limit your losses — or in other words, get out of value traps and protect your capital from market crashes

This helps us eliminate the so called «Value traps» from the portfolio.

I know, we've all tumbled into the sack with a few Ben Graham - type value traps, seduced by that logic.

However, you want to make sure that you avoid value traps, which could mean the company -LSB-...]

It's not perfect, and it's still a work in process, but anchoring estimates of intrinsic value on the earnings power of company assets (relative to a required rate of return, which I set at an exacting 10 %) helps avoid value traps.

Unlike value stocks, these value traps do not have true potential to give good returns to their investors and that's why their price keeps on declining for a continued period of time.

If yes, then you might already have met with - Value traps.

The value traps are those stocks which are «not» cheap because the market has not realized their true potential or because of some temporary setbacks.

A big debt is an actual trigger for the most deadly value traps.

The actual goal of a value investor is to avoid value traps.

On the other hand, value traps are those stocks that are trading at a low valuation because of long - term or permanent setbacks (factors).

Value traps — for purposes of investing — are defined as: «situations in which shareholder value exists but is never realized in the form of market appreciation in stock price to roughly equate with intrinsic value, dividends or legitimate share repurchases.»

As we mentioned above, this can be a telltale sign of a value traps.

These companies can often be «value traps» — wherein shareholder value is under - realized (or never realized) because the incentives of management / majority owners are not in alignment with minority shareholders.

So if you're smart just focus on learning how to differentiate the lemons (value traps) from peaches (the hidden gem or the quintessential mispriced bet).

After reviewing these potential value traps with BAMM, we can better determine if taking a long position is a good idea or not.

It is here that you will find evidence of «value traps.»

Perhaps I should briefly cover why these value traps must be so closely scrutinized.

Finally, to avoid value traps, the methodology screens out the worst performers by excluding the bottom 5 % of securities with negative one - year price performance.

Some of the measures that lead you into value traps are statistical.

Value traps are stocks that appear cheap on all the relevant metrics but the investors could still lose money as there are some fundamental issues with either the company or the industry.

Speaking at the Value Investing Conference, Jim Chanos, President of the Kynikos Associate and a noted short in the market listed 5 different sectors and 5 representative stocks as value traps.

The problem with magic formula companies is that too many of the stocks in the top 50 are value traps whose business models aren't sustainable, and are on the list when the past 12 months is a poor predictor of future returns.

They may all turn out to be losers, but I think we need to consider Greenblatt's assertion in the article that you reference (Adding Your Two Cents May Cost a Lot Over the Long Term) that investors systematically avoid buying many of the biggest winners because they look like losers / value traps.

Many are value traps — companies that are cheap, and will be cheap for some time.

I don't think we can categorically declare that these stocks are value traps until we give them time to work their way out of the screen one way or another (i.e. they're too expensive because the stock price is up, or the fundamentals are destroyed).

Enabled by modern technology, investors can now enhance a pure value strategy by using momentum to improve timing, measuring quality to avoid value traps, and diversifying active bets into less efficiently priced small stocks.

That might reflect Andrew Foster's long - ago observer that emerging markets were mostly value traps, where corporate, legal and regulatory structures didn't allow value to be unlocked.

September 2006 by Wayne Thorp AAII's Value on the Move screens seek value - oriented stocks but attempt to avoid typical value traps by adding criteria for earnings growth and relative strength.

Do you ever feel like sometimes investing for dividends can lead to value traps.

We only want to buy the stocks of companies that are real value investments, not value traps.

«I'm trying to buy companies that are young in their life cycle, not old value traps,» portfolio manager Frank Jennings said in an Oppenheimer - produced video.

Value traps are hard to really decipher because you can't predict the future.

For our advice on how to identify real value and avoid misleading indicators, read How to avoid «value traps».

Inexpensive stocks are generally desirable, providing they do not represent value traps.

In our Investing in Asia blog series, we lamented the lack of activism in Asian markets and highlighted this as one of the reasons for the large number of «value traps» in those markets.

Changing industry conditions, secular shifts in technology, and management miscalculations can lead to value traps.

Overcoming value traps One way to overcome value traps may be to combine the value and momentum factors.

As a result, I fell into a wide variety of «value traps» where I didn't see that the company was «cheap for a reason.»

The contention is whether these net current asset value stocks will perform as they have in other countries, or whether they are destined to remain net current asset value bargains, the classic «value traps.»

[Assuming I'm not sitting on a bunch of value traps, of course...]

I'd rather look back in 30 years and accept that I occasionally paid full price for my BMO shares, than look back at a host of value traps I plowed by BMO dividends into because I was «sure they are going to come back.»

Some stocks are value traps and even if they're relatively cheap, there might not be any catalyst for recovery.

Sometimes high yielding stocks are value traps and this strategy tries to get rid of these stocks in 2 ways.

The goal is to avoid value traps and only invest in real value stocks.

A strategy favoring high B / P companies may favor less profitable companies, increasing investor exposure to «value traps» — those companies that look cheap on their way to zero!

I think it's easy to avoid value traps.

At Euclidean, we have always referenced this data in context of the challenges that value strategies face given that there have been (and will continue to be) high profile investments that turned out to be value traps.