Sentences with phrase «of the value trap stocks»

Not exact matches

And cracks have begun to appear north of the 49th parallel; GMP Securities analyst Michael Urlocker downgraded Research In Motion on April 21, saying it «risked becoming a value trap — a stock that looks cheap but isn't because its prospects are diminishing.»

If so, it will be because we overestimated the cashflows that they can generate, not because we blindly walked into a trap of buying every stock trading at a low multiple of book value.

We believe our methodology helps identify the most attractive stocks at the best time to consider buying, helping to avoid value traps and lagging performance due to the opportunity cost of holding a stock with great potential but at an inopportune time.

Value investor Guy Spier writes: «I try to avoid walking into the trap of making statements about any stocks that we currently own, since the situation might later change or I might discover that I was wrong.

If so, it will be because we overestimated the cashflows that they can generate, not because we blindly walked into a trap of buying every stock trading at a low multiple of book value.

Finally, our experience is that by encapsulating typical market behavior in our approach, a far richer array of stock recommendations can be captured, for example «the exception to the rule» in the case of value traps.

In deciding how much of each stock to own, a focus on business Quality (as measured by profitability, stability and financial strength) helps us to maximise our exposure to those stocks which are both attractively valued and good quality and to avoid «value traps».

These are excellent examples of the challenges in value investing — a stock could be defined as under - valued for a good reason, and may remain so for a significant period of time, perhaps years or forever if the company has experienced a permanent and material change in operations (a «value trap»).

Benjamin Graham, the father of value investing, found the biggest risk of buying bargains was purchasing low quality stocks or value traps.

I don't think the Value Trap really has any validity for the Third Avenue portfolio of value common stValue Trap really has any validity for the Third Avenue portfolio of value common stvalue common stocks.

The unofficial definition of a «value trap» is a cheap stock that is stuck around the current price.

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

I shared my stock analyses of Credicorp in Taking Stock in BAP, Whirlpool in Taking Stock in WHR and discussed my pick for the Ultimate Value stock analyses of Credicorp in Taking Stock in BAP, Whirlpool in Taking Stock in WHR and discussed my pick for the Ultimate Value Stock in BAP, Whirlpool in Taking Stock in WHR and discussed my pick for the Ultimate Value Stock in WHR and discussed my pick for the Ultimate Value Trap.

Notes through April 18, 2006 Revisiting P / E10, Revisiting P / E10: Dividends, NFB Closed, Links Repaired, The Big Project, Calculator D, Long - Term Stock Returns, My Most Recent Articles, Dividend Calculators A and B, Dividend Growth Sensitivity Study, Three Powerful Advantages of Dividend Strategies, Calculator H, CTVR Calculator A, Dividends and Constant Terminal Value Rates, HCTVR Calculator A, May 2006 Highlights, Investment Traps, Variable Terminal Value Rate Calculator A, Variable Terminal Value Rate Calculator B, Why People Ignore Valuations, Latching Calculators, Latched Threshold Survey, Investing for Dummy — The Six «Must Know» Rules, Early Success with Latch and Hold, Continued Success with Latch and Hold, Adding Constraints to Latch and Hold, Time To Catch Up Calculator Notes through June 12, 2006

The concept of value investing is certainly not new to investors, nor is the notion of a value trap (when the stock price takes a dive and it looks like a better value).

Revisiting P / E10, Revisiting P / E10: Dividends, NFB Closed, Links Repaired, The Big Project, Calculator D, Long - Term Stock Returns, My Most Recent Articles, Dividend Calculators A and B, Dividend Growth Sensitivity Study, Three Powerful Advantages of Dividend Strategies, Calculator H, CTVR Calculator A, Dividends and Constant Terminal Value Rates, HCTVR Calculator A, May 2006 Highlights, Investment Traps, Variable Terminal Value Rate Calculator A, Variable Terminal Value Rate Calculator B, Why People Ignore Valuations, Latching Calculators, Latched Threshold Survey, Investing for Dummy — The Six «Must Know» Rules, Early Success with Latch and Hold, Continued Success with Latch and Hold, Adding Constraints to Latch and Hold, Time To Catch Up Calculator Notes through June 12, 2006 The Lower Latch and Hold Threshold, Additional Constraints with Latch and Hold, Current Research I: Latch and Hold, Dividend Investors, The Accumulation Stage, Idiot Switching, Latch and Hold Spreadsheet A, Typical Values of P / E10, Growth with Switching, Special Note about Mean Reversion, No New Discovery This Time, Looking a Little Bit Harder, The Stock - Return Predictor, Calculator I. Notes starting June 13, 2006.

Of course, nothing is set in stone in the stock market and value stocks can quickly become value trap stocks.

This is because the value factor can screen for stocks that are attractively priced, while the momentum factor looks for stocks that have recently demonstrated strong risk - adjusted returns, which may help reduce the probability of buying into a value trap.

This is because value stocks showing poor momentum can be removed from a portfolio (depending on when it reconstitutes), reducing the chances of continuing to hold a value trap.

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

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).

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.

Yes, a catalyst (perhaps an activist investor) can definitely add new momentum to a stock, or might even arrest a decline into a value trap... Piotroski, Altman & Lakonishok are introduced here also, and are a nice prep for: Part 4, which covers Risk, Diversification & Margin of Safety.

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 tValue 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 tvalue traps.

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.&rValue 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.&rvalue 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.&rvalue, dividends or legitimate share repurchases.»

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

Although these value trap stocks might be trading at a low valuation compared to its past valuation or market, however, the chances of these stocks bouncing back to their historical valuation are quite low.

If the earnings and cash flow of a company are consistently declining for past few couples of years, then the stock might be a value trap.

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.

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.

And I'm rather amused to see Hot Tuna mentioned as a value trap — coincidentally, a stock so pathetic it inspired me to write about it a couple of times..!

Such an approach, without closer stock - by - stock analysis, could lead to a «value trap» — a strategy that erroneously favors stocks with low multiples, but which continue to underperform nonetheless, often because earnings fall short of expectations.